SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15 (d) of
Securities Exchange Act of 1934
For Period ended June 30, 2001
Commission File Number 0-30923
AMERICAN TOY VENDING, INC.
| NEVADA | 88-0455326 | |
| (State of Incorporation) | (I.R.S. Employer Identification No.) |
13640 WHITE ROCK STATION ROAD, POWAY, CA 92064
(619) 692-2406
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer’s classes of common stock at the latest practicable date.
As of June 30, 2001, the registrant had 10,985,000 shares of common stock, $.001 par value, issued and outstanding.
| BALANCE SHEETS | ||||||||
| INCOME STATEMENTS | ||||||||
| STATEMENT OF CASH FLOWS | ||||||||
| NOTES | ||||||||
| PART I FINANCIAL INFORMATION | ||||||||
| PART II OTHER INFORMATION | ||||||||
| SIGNATURES | ||||||||
ASSETS
| JUNE 30 | SEPT 30 | |||||||||
| 2001 | 2000 | |||||||||
| (Unaudited) | ||||||||||
| CURRENT ASSETS CASH (on hand & in the bank) | 508 | 1,295 | ||||||||
| TOTAL CURRENT ASSETS | 508 | 1,295 | ||||||||
| TOTAL ASSETS | 508 | 1,295 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| CURRENT LIABILITIES | 0 | 0 | ||||||||
| TOTAL CURRENT LIABILITIES | 0 | 0 | ||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||
| COMMON STOCK | ||||||||||
| Par Value $0.001, 50,000,000 shares authorized, 10,985,000 issued & outstanding | 10,985 | 10,985 | ||||||||
| PAID IN CAPITAL | 5,915 | 5,915 | ||||||||
| (DEFICIT) ACCUMULATED DURING DEVELOPMENT STAGE | -16,392 | -15,605 | ||||||||
| TOTAL STOCKHOLDERS’ EQUITY | 508 | 1,295 | ||||||||
| TOTAL LIAB & STOCKHOLDERS’ EQUITY | 508 | 1,295 | ||||||||
The accompanying notes are an integral part of these financial statements.
FINANCIAL STATEMENTS (continued)
AMERICAN TOY VENDING, INC.
(a Development Stage Company)
| 3/10/1999 | |||||||||||||||||||||
| 3 Months | 3 Months | 9 Months | 9 Months | (Inception) | |||||||||||||||||
| Ended | Ended | Ended | Ended | to | |||||||||||||||||
| 6/30/01 | 6/30/00 | 6/30/01 | 6/30/00 | 6/30/01 | |||||||||||||||||
| REVENUE | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
| TOTAL REVENUE | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||
| MANAGEMENT FEES | 0 | 0 | 0 | 0 | 10,000 | ||||||||||||||||
| GENERAL, SELLING & ADMINISTRATIVE | 94 | 0 | 787 | 0 | 6,392 | ||||||||||||||||
| TOTAL OPERATING EXPENSES | 94 | 0 | 787 | 0 | 16,392 | ||||||||||||||||
| NET (LOSS) | -94 | 0 | -787 | 0 | -16,392 | ||||||||||||||||
| NET (LOSS) PER SHARE | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | ||||||||||||||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | 10,985,000 | 10,985,000 | 10,985,000 | 10,985,000 | 10,985,000 | ||||||||||||||||
STATEMENT OF CASH FLOWS
| 3/10/1999 | |||||||||||||
| 9 Months | 9 Months | (Inception) | |||||||||||
| Ended | Ended | to | |||||||||||
| 6/30/2001 | 6/30/2000 | 6/30/01 | |||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||
| NET LOSS | -787 | 0 | -16,392 | ||||||||||
| ADJ TO RECONCILE NET LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES | |||||||||||||
| ISSUE COMMON STOCK | 0 | 0 | 10,000 | ||||||||||
| NET CASH USED IN OPERATING ACTIVITIES | -787 | 0 | -6,392 | ||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | 0 | 0 | 0 | ||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | 0 | 0 | 0 | ||||||||||
| NET INCREASE (DECREASE) | -787 | 0 | -6,392 | ||||||||||
| CASH BEGINNING OF PERIOD | 1,295 | 6,900 | 6,900 | ||||||||||
| CASH END OF PERIOD | 508 | 6,900 | 508 | ||||||||||
The accompanying notes are an integral part of these financial statements.
Note 1. Basis of Presentation
The consolidated interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed and omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.
These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management are necessary for fair presentation of the information contained therein. It is suggested that these consolidated interim financial statements be read in conjunction with the financial statements of the Company for the year ended September 30, 2000 and notes thereto included in the Company’s 10-KSB annual report. The Company follows the same accounting policies in the preparation of interim reports.
Results of operations for the interim periods are not indicative of annual results.
Note 2. Going concern
These consolidated financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of June 30, 2001 the Company has not recognized revenue to date and has accumulated operating losses of approximately $16,000 since inception. The Company’s ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable operations. Management plans to raise equity capital to finance the operating and capital requirements of the Company. Amounts raised will be used to further development of the Company’s products, to provide financing for marketing and promotion, to secure additional property and equipment, and for other working capital purposes. While the Company is expending its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.
Note 3. Related party transactions
The Company does not lease or rent any property. Office services are provided without charge by a director. Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein. The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.
PART I FINANCIAL INFORMATION
Management’s Plan of Operations
The Company maintains a cash balance sufficient to sustain corporate operations until such time as Management can raise the funding necessary to advance its business plan. The losses of $6392 through June 2001 were due to operating expenses including licenses and fees, accounting and audit fees and office expenses. Sales of the Company’s equity securities have allowed the Company to maintain a positive cash flow balance.
The Company’s two year business plan encompasses the following steps to implement its computer-controlled skill crane game business plan: after raising capital of $5,000,000 during the first six months, the Company intends to order 500 skill cranes with the Company’s new communications system from the manufacturer at a cost of $950,000, and begin securing space for its smart skill cranes in New York, Florida, and California. During months seven through twelve, in order to operate its smart skill crane sites, the Company intends to expend $500,000 for inventory, $50,000 for set-up and maintenance of the Company’s web site, $200,000 for advertising, $90,000 for three regional managers, $300,000 for thirty route drivers, $25,000 for two office clerical employees, $80,000 for purchase of computers and fixed assets, and $175,000 for rent and other operating expenses.
Management has made initial progress in implementing its business plan by setting-up its first web page “smartcrane.net”, filing for copyright protection of its copyrightable skill crane control communications software, and plans to expand its web site in the fourth quarter of 2001.
The Company will only be able to continue to advance its business plan after it receives capital funding through the sale of equity securities. After raising capital, Management intends to hire employees, rent commercial space in San Diego, purchase equipment, and begin development of its skill crane machine operations. The Company intends to use its equity capital to fund the Company’s business plan during the next twelve months as cash flow from sales is not estimated to begin until year two of its business plan. The Company will face considerable risk in each of its business plan steps, such as difficulty of hiring competent personnel within its budget, longer than anticipated deployment of its skill crane machines at suitable sites, and a shortfall of funding due to the Company’s inability to raise capital in the equity securities market. If no funding is received during the next twelve months, the Company will be forced to rely on its existing cash in the bank and funds loaned by the directors and officers. The Company’s officers and directors have no formal commitments or arrangements to advance or loan funds to the Company. In such a restricted cash flow scenario, the Company would be unable to complete its business plan steps, and would, instead, delay all cash intensive activities. Without necessary cash flow, the Company may be dormant during the next twelve months, or until such time as necessary funds could be raised in the equity securities market.
PART II OTHER INFORMATION
| ITEM 1 | Not applicable. | |
| ITEMS 2-4: | Not applicable | |
| ITEM 5: | Information required in lieu of Form 8-K: None | |
| ITEM 6: | Exhibits and Reports on 8-K: a). Change in Certifying Accountant Form 8-K filed April 12, 2001 |
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| American Toy Vending, Inc. | ||
| Dated: July 25, 2001 | /s/ Alastair Knott Alastair Knott President and Chief Executive Officer |
