SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 2001 Commission file number 2-29987
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UPWARD TECHNOLOGY CORPORATION
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NEW YORK 11-1714403
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
301 CITY AVENUE BALA CYNWYD, PA 19004
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 610-667-8225
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Former name, former address and former fiscal year, 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 and (2) has been subject to such filing requirements for
the past 90 days.
X Yes No
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Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the close of the period covered by this report.
Class: COMMON, PAR VALUE $.02 PER SHARE
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OUTSTANDING at March 31, 2001 8,100,000
UPWARD TECHNOLOGY CORPORATION
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QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
MARCH 31, 2001
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INDEX
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Part I - Financial Information (unaudited):
Condensed balance sheet as of
March 31, 2001 and December 31,2000 2
Condensed statement of operations
for the three-month periods ended
March 31, 2001 and 2000 3
Condensed statement of cash flows
for the three-month periods ended
March 31, 2001 and 2000 4
Notes to condensed financial statements 5
Report of independent accountants 6
Management's discussion and analysis of the
financial condition and results of operations 7
Part II - Other Information
Item 1. Legal Proceedings 8
Item 2. Changes in Securities 8
Item 3. Defaults Upon Senior Securities 8
Item 4. Submission of Matters to a Vote of Security Holders 8
Item 5. Other Information 8
Item 6. Exhibits and Reports on Form 8-K 8
Signature 9
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UPWARD TECHNOLOGY CORPORATION
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CONDENSED BALANCE SHEET
(unaudited)
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MARCH 31, DECEMBER 31,
2001 2000
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ASSETS
Cash and cash equivalents $ 183 $ 191
Due from affiliate 191,993 189,210
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$ 192,176 $ 189,401
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LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Accrued expenses $ 4,171 $ 346
Due to shareholders 5,930 5,930
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10,101 6,276
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Shareholders' equity:
Common stock, $.02 par value; 24,000,000 shares
authorized, 8,100,000 shares issued
and outstanding 162,000 162,000
Additional paid-in capital 1,983,208 1,983,208
Accumulated deficit (1,963,133) (1,962,083)
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Net shareholders' equity 182,075 183,125
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$ 192,176 $ 189,401
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See accompanying notes to condensed financial statements.
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UPWARD TECHNOLOGY CORPORATION
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CONDENSED STATEMENT OF OPERATIONS
(unaudited)
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THREE MONTHS ENDED
MARCH 31,
2001 2000
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Revenue, interest income $ 2,784 $ 2,067
General and administrative expenses 3,834 925
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Net income (loss) $ (1,050) $ 1,142
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Net income (loss) per share, basic and diluted $ -- $ --
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Weighted average number of outstanding
shares for basic and diluted 8,100,000 8,100,000
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See accompanying notes to condensed financial statements.
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UPWARD TECHNOLOGY CORPORATION
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CONDENSED STATEMENT OF CASH FLOWS
(unaudited)
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THREE MONTHS ENDED
MARCH 31,
2001 2000
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INCREASE (DECREASE) IN CASH
Cash flows from operating activities:
Net income (loss) ($ 1,050) $ 1,142
Accrued interest income (2,783) --
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Increase (decrease) in accrued expenses 3,825 ( 249)
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Net cash provided by (used in) operating activities (8) 893
Cash and cash equivalents at beginning of period 191 200,938
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Cash and cash equivalents at end of period $ 183 $ 201,831
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See accompanying notes to condensed financial statements.
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UPWARD TECHNOLOGY CORPORATION
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NOTES TO CONDENSED FINANCIAL STATEMENTS
(unaudited)
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1. In the opinion of management, the accompanying unaudited condensed
financial statements contain all adjustments necessary to present
fairly the financial position as of March 31, 2001 and the results of
operations on cash flows for the three-month periods ended March 31,
2001 and 2000. The results of operations for the three-month periods
ended March 31, 2001 are not necessarily indicative of the results to
be expected for the full year.
2. Margolis & Company P.C., the Company's auditors, has performed a
limited review of the financial information included herein. Their
report on such review accompanies this filing.
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REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors
Upward Technology, Inc.
Bala Cynwyd, PA
We have reviewed the accompanying condensed balance sheet of Upward Technology,
Inc. as of March 31, 2001 and the related condensed statements of operations and
cash flows for the three- month periods ended March 31, 2001 and 2000. These
financial statements are the responsibility of the Company's management.
We conducted our reviews in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical procedures to
financial data and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an audit conducted 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 reviews, we are not aware of any material modifications that should
be made to the accompanying condensed financial statements for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the balance sheet as of December 31, 2000 and the related statements
of operations, shareholders' equity, and cash flows for the year then ended (not
presented herein); and in our report dated March 12, 2001, we expressed an
unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying condensed balance sheet as of December
31, 2000 is fairly stated, in all material respects, in relation to the balance
sheet from which it has been derived.
Certified Public Accountants
Bala Cynwyd, Pennsylvania
May 14, 2001
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UPWARD TECHNOLOGY CORPORATION
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
(unaudited)
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General
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In May, 1989, the Company suspended all operations except for necessary
administrative matters and ceased to be an operating company. As such, for the
three months ended March 31, 2001 and 2000, the Company had no revenues from
operations. Given the virtual suspension of the Company's operations, except for
necessary administrative matters, the Company's officers have waived further
compensation.
Results of Operations
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During the three months ended March 31, 2001, the Company earned interest of
$2,784 as compared to $2,067 of interest earned in the three months ended March
31, 2000, an increase of $717. During the three months ended March 31, 2001, the
Company incurred general and administrative expenses of $3,834, an increase of
$2,909 as compared with the three months ended March 31, 2000 expenses of $925.
Liquidity and Capital Resources
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During the three months ended March 31, 2001, the Company satisfied its working
capital needs from cash on hand at the beginning of the year and cash generated
from interest income during the period. As of March 31, 2001, the Company had
working capital of $182,075. This working capital is expected to provide the
Company with sufficient capital while it seeks a merger, acquisition or other
arrangement by and between the Company and a viable operating entity, although
there is no assurance that this will occur.
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UPWARD TECHNOLOGY CORPORATION
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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
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UPWARD TECHNOLOGY CORPORATION
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SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
UPWARD TECHNOLOGY
CORPORATION
/s/Albert M. Zlotnick
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Albert M. Zlotnick, President and
Chief Executive Officer
Date: May 15, 2001
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