UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10QSB
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(X) Quarterly report pursuant to Section, 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended March 31, 2001.
( ) Transition report pursuant of Section 13 or 15 (d) of the Securities
Exchange Act of 1939 for the transition period to
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COMMISSION FILE NUMBER 000-1084047
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INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
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(Exact name of registrant as specified in its charter)
California 95-4691878
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(State or other jurisdiction of IRS EMPLOYER ID NO.
incorporation or organization)
112 Northwest Parkway, Riverside, MO 64150; 816-584-8030
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(Address of Principal Executive Offices, including Registrant's zip code and
telephone number)
NONE
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Former name, former address and former fiscal year, if changed
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
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The number of shares of the registrant's common stock as of March 31, 2001:
1,453,117 shares.
Transitional Small Business Disclosure format (check one): Yes No X
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1
TABLE OF CONTENTS
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
(a) Balance Sheet
(b) Statement of Operations
(c) Statement of Changes in Financial Position
(d) Statement of Shareholders' Equity
(e) Notes to Financial Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations
Item 3. Risks
OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Defaults On Senior Securities
Item 4. Submission of Items to a Vote
Item 5. Other Information
Item 6
(a) Exhibits
(b) Reports on Form 8K
SIGNATURES
2
PART I. FINANCIAL INFORMATION
INNOVATIVE SOFTWARE TECHNOLOGIES, INC
(A Development Stage Company)
Balance Sheet
March 31, December 31,
2001 2000
(Unaudited)
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ASSETS
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Current Assets:
Cash $ -- $ 400
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Total Current Assets -- 400
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TOTAL ASSETS $ -- $ 400
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Stockholders'. Equity:
Common stock, par value of 3.001 per share, par value of
$.0003 after
3 to 1 stock split; authorized-20 million, shares;
issued and outstanding 1,453,117 and 1,436,440 respectively $ 484 $ 479
Capital in excess of par value of stock 17,826 17,814
Deficit accumulated during the development stage (18,310) (17,893)
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Total Stockholders' Equity -- 400
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ -- $ 400
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3
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(A Development Stage Company)
Statement of Operations
For the three months ended March 31; 2001 and 2000
For the period May 27, 1998 (inception) through March 31, 2001
(Unaudited)
Cumulative
March March During
31, 31, Development
2000 2001 Stage
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INCOME
Sales $ 0 $ 0 $ 0
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Total Income 0 0 0
EXPENSES
General and administrative 417 391 18,310
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Total expenses 417 391 18,310
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NET LOSS $ (417) $ (391) (18,310)
========= ========= =========
Basic loan per common shares $ (0.00) $ (0.00) --
========= ========= =========
Weighted average shares outstanding 1,453,117 1,453,117 --
========= ========= =========
4
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(A Development Stage Enterprise)
Statement of Stockholders' Equity
For the period May 27, 1998 (inception) through March 31, 2001)
Deficit
Accumulated
Number Common Additional During
of Stock Paid-In- Development
Shares at Par Value Capital Stage Total
---------- ---------- ---------- ---------- ----------
Stocks issued for cash 102,100 $ 102 $ 2,098 -- 2,200
Stocks issued for services 975,000 975 14,727 -- 15,702
Net loss - December 31, 1998 -- -- -- $ (17,502) $ (17,502)
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Balance at DecembEr 31, 1998 1,077,100 1,077 16,825 (17,502) 400
Retroactive adjustment for
8 to I stock split November 26, 1999 8,072,220 67 324 -- 391
Balance at Decernber31, 1999 9,149,320 1,144 17,149 (17,502) 791
Net loss - December 31, 1999 -- -- -- (391) (391)
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Balance at December 31, 1999 9,149,320 1,144 17,149 (17,893) 400
Stocks retired June 30,2000 (4,840,000 (605) 605 -- --
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Balance at December 31, 2000 4,309,320 539 17,754 (17,893) 400
Retroactive adjustment for 3 to 1 reverse
stock split - February 2001 (2,872,880) (60) 60 -- --
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8alance at January 1, 2001 1,436,440 479 17,814 (17,893) 400
Stocks issued services 16,617 5 12 -- 17
Net loss - March 31, 2001 -- -- -- (417) (417)
Balance at March 31, 2001 1,453,117 $ 484 317,826 $ (18,310) $ --
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5
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(A Development Stage Company)
Statement of Cash Flows
For the three months ended March 31; 2001 and 2000
For the period May 27, 1998 (inception) through March 31, 2001
(Unaudited)
Cumulative
March March During
31, 31, Development
2000 2001 Stage
--------- --------- ---------
CASH FLOWS FRONT OPERATING ACTIVITIES
Net loss $ (417) $ (391) $(18,310)
Adjustments to reconcile net loss to
net cash provided by operating activities;
Stocks issued for services 17 -- 15,719
Depreciation & amorization -- -- --
Prepaid expenses -- -- --
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NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES (400) (391) (2,591)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of fixed assets -- -- --
Exclusive license rights
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NET CASH PROVIDED (USED) BY INVESTING -- -- --
ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stocks -- -- 2,591
NET CASH PROVIDED (USED) BY FINANCING -- -- 2,591
ACTIVITIES
INCREASE IN CASH (400) (391) --
BEGINNING CASH 400 791 --
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ENDING CASH $ -- $ 400 $ --
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NON CASH DISCLOSURE
7,800,000 shares issued for services $ 17 $ -- $ 16,719
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Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
THIS ANALYSIS CONTAINS FORWARD-LOOKING COMMENTS WHICH ARE BASED ON CURRENT
INFORMATION- ACTUAL RESULTS IN THE FUTURE MAY DIFFER MATERIALLY.
Results of Operations
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The Company is engaged in the business of providing sales of computer related
software and related services. The Company has only commenced operations on its
web site at www.software-software-software.com.
Three months ended March 31, 2001 compared to three months ended March 31, 2000
The Company has generated no income since its inception, so a comparison of the
two periods is not meaningful.
Liquidity and Capital Resources
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At March 31, 2001, the Company had a working capital surplus of $0, compared to
a working capital surplus of $400 as of December 31, 2000. The difference is
believed by management to be unremarkable. At March 31, 2001, the company has an
accumulated deficit since inception of $(18,310).
Net cash used in operating activities was $400 for the three months ended March
31, 2001, compared with $391, used during the same period last year. The
difference is thought by management to be unremarkable.
The company does not anticipate that it will have any problems in meeting its
obligations for continuing fixed expenses, materials procurement or operating
labor.
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PART II. OTHER INFORMATION
Item 1. Legal proceedings NONE
Item 2. Changes in securities acid use of proceeds NONE
Item 3. Defaults on senior securities NONE
Item 4. Submission of items to a vote NONE
Item 5. Other information
Item 6.
a) Exhibits NONE
b) Reports on 8K April 25, 2001
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SIGNATURES
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In accordance with the requirements of the Securities and Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Innovative Software Technologies, Inc.
Dated: May 11, 2001 By: /s/ Douglas Hackett
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Douglas Hackett, President
Dated: May 11, 2001 By:
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Chief Financial officer