FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
Of the Securities Exchange Act of 1934
For Quarter Ended March 31, 2000
Commission File Number 33-30743
PIERCE INTERNATIONAL DISCOVERY, INC.
(Exact name of registrant as specified in its charter)
NEVADA 84-1121360
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6975 SOUTH UNION PARK CENTER, STE 600
SALT LAKE CITY UT 84047
(Address of principal executive offices)
Registrant's telephone number
including area code (801) 256-9600
Former Address, if changed since last report
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 such shorter period that the
registrant was required to file such reports)
Yes X No
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
26,003,008
(Number of shares of common
stock the registrant had
outstanding as of May 5, 2000)
PART 1
ITEM 1 - FINANCIAL STATEMENTS
The condensed financial statements included herein have been prepared by
the Company, pursuant to the rules and regulations of the Securities and
Exchange Commission.
In the opinion of the Company, all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position of
the Company as of March 31, 2000 and the results of its operations and changes
in its financial position from June 30, 1999 through March 31, 2000 have been
made. The results of its operations for such interim period is not
necessarily indicative of the results to be expected for the entire year.
To the Board of Directors
Pierce International Discovery, Inc.
Salt Lake City, Utah
We have reviewed the accompanying balance sheet of Pierce International
Discovery, Inc. as of March 31, 2000, and the related statements of income,
stockholders' equity, and cash flows for the three months then ended, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants. All
information included in these financial statements is the representation of
the management of Pierce International Discovery , Inc.
A review consists principally of inquiries of Company personnel and analytical
procedures applied to financial data. It is substantially less in scope than
an audit in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements in order for them to
be in conformity with generally accepted accounting principles.
The accompanying balance sheet as of June 30, 1999 was audited by us and we
expressed an unqualified opinion on it in our report dated January 21, 2000.
The accompanying statements of operations and cash flows for the three month
and nine month period ended March 31, 1999 and the six month period from July
1, 1999 to December 31,1999 were not audited by us and, accordingly, we do not
express an opinion on them.
Crouch, Bierwolf & Chisholm
Salt Lake City, Utah
May 2, 2000
PIERCE INTERNATIONAL DISCOVERY, INC.
Balance Sheets
ASSETS
March 31, June 30,
2000 1999
(Reviewed) (Audited)
TOTAL ASSETS $ - $ -
STOCKHOLDERS' EQUITY
Preferred Stock, 10,000,000 shares authorized,
no par value; 0 shares issued and outstanding - -
Common Stock 750,000,000 shares authorized,
no par value; 26,003,008 shares issued and outstanding
1,295,367 1,295,367
Accumulated deficit (1,295,367) (1,295,367)
Total Stockholders' Equity - -
TOTAL STOCKHOLDERS' EQUITY $ - $ -
PIERCE INTERNATIONAL DISCOVERY, INC.
Statements of Operations
For the Three Forthe Nine
Months Ended Months Ended
March 31, March 31,
2000 1999 2000 1999
(Reviewed)(Unaudited)(Unaudited) (Unaudited)
REVENUE $ - $ - $ - $-
EXPENSES - 2,500 - 8,725
NET LOSS-before
other income - (2,500) - (8,725)
OTHER INCOME-(loss)
Net gain (loss) from transfer
of assets for payment of
liabilities - - - -
INCOME (LOSS) $ - $ (2,500) $- $ (8,725)
Gain (Loss) Per
Common Share
Basic
loss before other income $ - $ - $- $-
Other income - - - -
Net income - - - -
Average Outstanding
Shares
Basic 26,003,008 1,003,008 26,003,008 1,003,008
PIERCE INTERNATIONAL DISCOVERY, INC.
Statement of Stockholders' Equity
March 31, 2000
Common Stock Accumulated
Shares Amount Deficit
Balance June 30, 1998 (Audited) 108,865 $ 1,039,962 $(1,261,642)
Issuance of common shares for payment of debt
at $.003 - related party - August 28, 1998 894,143 215,180 -
Contribution to capital - 15,225 -
Issuance of common shares for services
at $.001 per share 25,000,000 25,000 -
Net operating loss for the period ended
June 30, 1999 - - (33,725)
Balance June 30, 1999 (Audited) 26,003,008
1,295,367 (1,295,367)
Net operating loss, March 31,2000 - - -
Balance March 31, 2000 (Unaudited) 26,003,008 $
1,295,367 $ (1,295,367)
PIERCE INTERNATIONAL DISCOVERY, INC.
Statements of Cash Flows
For the Three and Nine months ended March 31, 2000 and 1999
(unaudited)
For the Three For the Nine
Months Ended Months Ended
March 31, March 31,
2000 1999 2000 1999
CASH FLOWS FROM
OPERATING ACTIVITIES
Net Profit (loss) $ - $(2,500) $ - $(8,725)
Adjustments to reconcile
net loss to cash provided
by operating activities
Depreciation - - - -
Common shares issued
for services - - - -
Profit (loss) on transfer of
assets for payment of debt - - - -
Changes in accounts payable - 2,500 - 8,725
Net used in operations - - - -
CASH FLOWS FROM
INVESTING ACTIVITIES
Proceeds from sale of assets - - - -
CASH FLOWS FROM
FINANCING ACTIVITIES
Issuance of common shares
for payment of debt - - - -
Proceeds from issuance
of common stock - - - -
Net Increase (Decrease)
In Cash - - - -
Cash at beginning of period - - - -
Cash at end of period $ - $ - $ - $ -
SCHEDULE OF NONCASH INVESTING AND
FINANCING ACTIVITIES:
Cash Paid For:
Interest $ - $ - $ - $ -
Taxes $ - $ - $ - $ -
PIERCE INTERNATIONAL DISCOVERY, INC.
Notes to the Financial Statements
NOTE 1 - ORGANIZATION
The Company was incorporated under the laws of the state of Colorado on
April 19, 1989 with authorized common stock of 750,000,000 shares with no par
value and preferred stock of 0,000,000 shares with no par value.
The Company has been engaged in the business of seeking mineral leases
for potential development and had acquired interests in several mineral
properties including leases in Colorado and mining properties in Mexico.
The leases in Colorado were acquired from related parties by the
issuance of 3,000,000 common shares and a note payable for $3,600,000. In
March 1997 the leases were returned to the former owner's, due to a default by
the Company, with mutual releases of all claims, which resulted in a loss to
the Company of $434,918.
After the acquisition of the Mexico properties the Company entered into
a contract with other parties to provide funds to develop the properties.
In 1996 the Company started a legal action resulting from a default in the
terms of the development contract. In July the legal action was settled, and
by mutual agreement the Mexico properties were transferred and all claims were
released which resulted in a gain to the Company of $254,171.
The Company has been inactive since the transfer of its remaining assets.
In 1999, the Company created, and later merged with, a Nevada
subsidiary. The Company is now a Nevada Corporation.
NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
The Company recognizes income and expenses based on the accrual method
of accounting.
Income Taxes
At June 30, 1999, the Company had a net operating loss carryforward of
over $1,000,000. The tax benefit from the carryforward have been fully offset
by a valuation reserve because the use of the future tax benefit is
undeterminable since the Company has no operations. The loss carryforward
expires starting in the years 2000 through 2013.
Earning (loss) Per Share
Earnings (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding using the treasury stock method
in accordance with FASB statement
No. 128.
PIERCE INTERNATIONAL DISCOVERY, INC.
Notes to the Financial Statements
NOTE 2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Estimates and Assumptions
Management uses estimates and assumptions in preparing financial
statements in accordance with generally accepted accounting principles.
Those estimates and assumptions affect the reported amounts of the assets and
liabilities, the disclosure of contingent assets and liabilities, and the
reported revenues and expenses. Actual results could vary from the
estimates that were assumed in preparing these financial statements.
NOTE 3 - REVERSE STOCK SPLIT / SUBSEQUENT EVENTS
In 1999, the Company affected a 1 for 1,000 stock split, with no
shareholders of record being reversed below 100 shares
ITEM 2 - PLAN OF OPERATION
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources. The Registrant had approximately $0 as
operating capital at March 31,2000. The Registrant intends to raise additional
funds as needed through private placements with accredited and sophisticated
investors.
Results of Operation. Due to the lack of operations during the quarter
ended March 31, 2000, the registrant had no net income, compared to net loss
of $(2,500) for the same period last year. The registrant had no net income
for the nine months ended March 31, 2000, compared to net loss of $(8,725)
for the same period last year.
Plan of Operations. The Company is currently in the process of looking
for business opportunities to acquire or merge with. There is no guarantee
that management will be successful in finding such an opportunity. The
Company is also in the process of bringing all of its periodic reports current
for filing with the Securities and Exchange Commission. During this process,
the Company intends to raise operational capital through private placements.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings. None
Item 2. Changes in Securities. None
Item 3. Defaults Upon Senior Securities. None
Item 4. Submission of Matters to a Vote of Security Holders. None
Item 5. Other Information. None
Item 6. Exhibits and Reports on Form 8-K. None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, this report has been signed below by the following persons on behalf
of the Registrant and in the capacities and on the dates indicated:
PIERCE INTERNATIONAL DISCOVERY, INC.
Date: May 5, 2000 /s/
Lionel L. Drage, President and Director
We hereby consent to the use of our review report of Pierce International
Discovery, Inc. dated May 2, 2000 for the period ended March 31, 2000 in the
Form 10Q Report for the period then ended.
s/s Crouch, Bierwolf & Chisholm
Salt Lake City, UT