UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
(X) Quarterly Report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934 For the quarterly period ended October 31, 2000
OR
( ) Transition Report pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934.
For the transition period from __________ to __________
Commission File Number: 0-28514
TREASURY INTERNATIONAL, INC.
(Name of Small Business Issuer in Its Charter)
Delaware 98-0160284
--------------------------- ---------------------
(State or Other Jurisdiction of Incorporation (IRS Employer Identification No.)
or Organization)
1081 King St., E 2nd Floor
Kitchener, Ontario N2G 2N1
-------------------------- --------
(Address of Principal Executive Offices) (Zip Code)
------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15 (d) of the Exchange Act during the past 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
------- -------
1
As of October 31, 2000, 92,196,677 shares of the registrant's common
stock were outstanding.
The aggregate market value of the voting stock held by non-affiliates
computed by reference to the price at which the stock was sold, or the average
bid and asked prices of such stock, as of October 31, 2000 was $4,003,445.
Shares of Common Stock held by each executive officer and directors and by each
persons who beneficially owns more than 5% of the outstanding Common Stock have
been excluded in that such persons may under certain circumstances be deemed to
be affiliates. This determination of executive officer or affiliate status is
not necessarily a conclusive determination for other purposes.
2
PART I Financial Information
- --------------------------------
ITEM 1. Financial Statements
Bromberg & Associate
1183 Finch Ave. West, Suite 305
--------------------------- Toronto, Ontario M3J 2G2
Phone: (416) 663-7521
CHARTERED ACCOUNTANTS Fax: (416) 663-1546
ACCOUNTANTS' REVIEW REPORT
Board of Directors and Shareholders
Treasury International, Inc.
We have reviewed the accompanying interim consolidated balance sheet of
Treasury International, Inc. as at October 31, 2000, and the interim
consolidated statements of operations, and cash flows for the period 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 interim consolidated financial statements is the
representation of management of Treasury International, 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 audited 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 interim consolidated financial
statements in order for them to be in conformity with generally accepted
accounting principles.
BROMBERG & ASSOCIATE
CHARTERED ACCOUNTANTS
TORONTO, CANADA
January 19, 2001
3
TREASURY INTERNATIONAL, INC.
INTERIM CONSOLIDATED BALANCE SHEET
AS AT OCTOBER 31, 2000
(UNAUDITED)
ASSETS
October 31, 2000 January 31, 2000
CURRENT
Accounts receivable $ 156,350 $ 60,050
Due from Wexcap Group, LLC 3,000 3,000
Marketable Securities (Note 7) 330,625 -
Sundry assets 21,922 2,607
---------------- ---------------
511,897 65,657
Promissory Note Receivable (Note 3) - 2,649,398
Goodwill (Notes 2b & 4) 174,549 381,929
Capital Assets (Notes 2d &6) 30,882 14,925
Long Term Investments (Note 7) 66,417 -
---------------- ---------------
$ 783,745 $ 3,111,909
================ ===============
LIABILITIES
CURRENT
Bank Indebtedness $ 65,979 $ 56,547
Accounts payable and accrued liabilities 216,807 153,839
Current portion of long-term debt (Note 8) 328,568 197,344
---------------- ---------------
611,354 407,730
Deferred Gain on Sale of Subsidiary (Note 9) - 1,961,231
Loans from Officers & Directors 250,244 43,772
Long Term Debt (Note 8) 477,003 45,903
---------------- ---------------
$ 1,338,601 $ 2,458,636
================ ===============
4
SHAREHOLDERS' EQUITY
SHARE CAPITAL October 31, 2000 January 31, 2000
Authorized
100,000,000 common shares at $.0001
Issued
92,196,677 common shares (Note 9) 9,219 9,510
Contributed surplus (Note 10) 4,751,814 4,896,694
Deficit (5,445,078) (4,252,931)
Accumulated Other Income (Note 7) 129,189 -
------------------ --------------
(554,856) 653,273
------------------ --------------
Total Liabilities & Shareholders Equity $ 783,745 $ 3,111,909
================== ==============
5
TREASURY INTERNATIONAL, INC.
INTERIM CONSOLIDATED STATEMENT OF DEFICIT
NINE MONTH PERIOD ENDED OCTOBER 31, 2000
(UNAUDITED)
October 31, 2000 October 31,1999
Balance, Beginning of Period ($ 4,252,939) ($ 3,719,559)
Net (Income) Loss for the Period (1,192,147) (323,569)
----------------------- ---------------------
Balance, End of Period ($ 5,445,086) ($ 4,043,128)
----------------------- ---------------------
6
TREASURY INTERNATIONAL, INC.
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
NINE MONTHS ENDED OCTOBER 31, 2000
(UNAUDITED)
October 31,2000 October 31,1999
REVENUE
Operations $ 253,210 $ 205,092
Management Fee Income - 33,333
Interest and Penalty Income (Note 3) - 455,321
--------------- ---------------
TOTAL INCOME 253,210 693,946
--------------- ---------------
COST OF GOODS SOLD 196,280 170,045
--------------- ---------------
GROSS PROFIT 56,930 523,901
--------------- ---------------
EXPENSES
General and Administrative 282,354 289,922
Software Development 241,090 82,632
--------------- ---------------
TOTAL OPERATING EXPENSES 523,444 372,554
--------------- ---------------
INCOME (LOSS) from Operations (466,514) 151,347
before undernoted items --------------- ---------------
Writedown of Note Receivable (Note 4) 688,167 -
Bad Debt Expense (Note 3) - 455,321
Amortization (Notes 5, 6) 17,068 11,001
Financing Cost 20,398 8,594
--------------- ---------------
725,633 474,916
--------------- ---------------
NET (LOSS) from Continuing Operations ($ 1,192,147) ($ 323,569)
Other Income, principally unrealized 129,189 -
gains on Securities
Available for Sale (Note 7) --------------- ---------------
NET (LOSS) ($1,062,958) ($ 323,569)
=============== ===============
Income (Loss) per Share (0.011) (0.003)
--------------- ---------------
Weighted Average Number of 91,930,100 92,200,296
Common Shares Outstanding =============== ===============
7
TREASURY INTERNATIONAL, INC.
INTERIM CONSOLIDATED STATEMENT OF
CHANGES IN SHAREHOLDERS' EQUITY
FOR THE NINE MONTH PERIOD ENDED OCTOBER 31, 2000
(UNAUDITED)
COMMON PAID-IN CONTRIBUTED
SHARES CAPITAL SURPLUS
------------ ---------- ------------
Balance-January 31, 2000 95,101,777 $ 9,510 $ 4,896,694
Issued 323,900 shares of common stock 323,900 32 35,597
at $0.11 per share under the Company's
Employee Benefit Plan Registration
Statement of February 25, 1998.
Issued 171,000 shares of common 171,000 17 34,183
stock in consideration for the
reduction of Notes Payable by $34,200.
Returned 3,200,000 shares of common (3,200,000) (320) (199,680)
stock to the company from its
subsidiary Pioneer Media Group
(Compelis Corporation).
Returned & cancelled 600,000 shares (600,000) (60) (54,940)
of common stock for cash
consideration of $55,000
Issued 400,000 shares of common stock 400,000 40 39,960
at $0.10 per share under the Company's
Employee Benefit Plan Registration
Statement of February 25, 1998.
----------- -------- -----------
Balance- Ocotber 31, 2000 92,196,677 $ 9,219 $ 4,751,814
=========== ======== ===========
8
TREASURY INTERNATIONAL, INC.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
NINE MONTH PERIOD ENDED OCTOBER 31, 2000
(UNAUDITED)
October 31, 2000 October 31, 1999
Cash flows from operating activities
Net (loss) ($ 1,192,147) ($ 323,569)
Adjustment for Non-Cash Items 588,167 (850,000)
Amortization 17,068 11,001
(Increase) decrease in accounts receivable (96,300) 795,731
Increase in amount due from Wexcap Group - (3,000)
(Increase) decrease in sundry assets (19,315) 15
Increase in accounts payable 62,968 100,597
------------ -------------
Net cash used for operating activities (639,559) (269,225)
------------ -------------
Cash flows from financing activities
Loans Payable 206,472 -
Promissory note receivable 100,000 10,000
Notes payable 562,324 284,009
Proceeds on issue of common shares (145,171) 316,000
------------ -------------
Cash provided by financing activities 723,625 610,009
------------ -------------
Cash flows from investing activities
Long Term Investments (267,853) -
Goodwill 200,000 (396,809)
Purchase of capital assets (25,645) (7,744)
------------ -------------
Cash used for investing activities (93,498) (404,553)
------------ -------------
Increase in bank indebtedness (9,432) (63,769)
Bank balance (indebtedness), beginning of period (56,547) 19,956
------------ -------------
Bank indebtedness, end of period ($ 65,979) $ 43,813
------------ -------------
9
TREASURY INTERNATIONAL, INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT OCTOBER 31, 2000
1. Nature of business
Treasury International, Inc., through its wholly owned
subsidiaries, Compelis Corporation and Retailport.com, Inc., is
involved in the development of business to business E-Commerce,
Web-enabled database publishing and Internet Portal development.
2. Summary of significant accounting policies
a) Basis of consolidation
These consolidated financial statements include the accounts of the
company and the revenues and expenses of Compelis Corporation, its
wholly owned subsidiary.
b) Goodwill
The goodwill arises on the purchase of common shares of Compelis
Corporation. Amortization is provided on a straight-line basis over a
twenty-year period. During the period, the goodwill amount was reduced
by $200,000 as a result of the cancellation of 3,200,000 shares related
to the purchase of Compelis Corporation (formerly Pioneer Media Group).
c) Research and development costs
The research and development costs relate to the work done in
developing an e-commerce software package and an Internet point of sale
package, together with database development. These costs are written
off as incurred and shown as software development expense in the
statement of operations.
d) Capital assets
Capital assets are recorded at cost less accumulated amortization.
Amortization is provided as follows:
Office equipment - 20% diminishing balance
Computer equipment - 30 % diminishing balance
Leasehold improvements - term of lease
e) Revenue Recognition
Revenue is recognized when customers are invoiced for products shipped
by the company.
f) Income per share
Income per share is calculated based on the weighted average number of
shares outstanding during the period.
g) General
These financial statements have been prepared in accordance with United
States generally accepted accounting principles (GAAP), as they relate
to these financial statements.
10
3. Accounts Receivable
Accounts Receivable consist of the following:
Trade Accounts Receivable $ 156,350
Interest Receivable on Promissory Note $ 602,481
---------
$ 758,831
Less: Allowance for Doubtful Account $ 602,481
---------
Accounts Receivable $ 156,350
---------
4. Promissory Note Receivable
The promissory note receivable was received from the purchaser of
the company's former subsidiary, Mega Blow Mouldings Limited on
November 30, 1998. The Note and the interest due are both in default.
Promissory Note Receivable $ 2,649,398
Less: Writedown of Note Receivable $ 2,649,398
-----------
Balance $ -
-----------
5. Goodwill
October 31, 2000 January 31, 2000
------------------------------------------- ---------------------
Accumulated Net book
Cost Amortization value Net book value
---------- -------------- ----------- ---------------------
$ 196,809 $ 22,260 $ 174,549 $ 381,929
========== ============== =========== =====================
A charge for goodwill was incurred in this fiscal year as a result
of the acquisition of Compelis Corporation (formerly Pioneer Media
Group) in May 1999. At the time of the acquisition Compelis owned 3.2
million shares of Treasury common stock. These shares were subsequently
returned to the Company and cancelled. Goodwill was recorded for this
acquisition as $396,809. The current market value of the Companies
stock was $0.625 per share. Therefore an adjustment to Goodwill of
$200,000 was recorded in this year to account for this action.
6. Capital Assets
October 31, 2000 January 31, 2000
-------------------------------- ------------------
Accumulated Net book Net book
Cost Amortization value value
-------- ------------ ----------- ------------------
Office equipment $ 21,715 $ 14,601 $ 7,114 $ 8,320
Computer equipment 43,594 19,826 23,768 6,483
Leasehold improvements 1,407 1,407 - 122
-------- ------------ ---------- ------------------
$ 66,716 $ 35,834 $ 30,882 $ 14,925
======== ============ ========== ==================
11
7. Securities Available for Sale
During the period the Company purchased equity securities in other
Corporations that management considers to be strategic or synergistic
to the Company's growth. The Securities Available for Sale are recorded
at their fair market value for this reporting period (October 31,
2000).
Reported Fair Value
Issuer Market Cost Gain (Loss) (@10/31/00)
-----------------------------------------------------------------------------
American Sports History Inc. OTC BB $130,486 $129,514 $260,000
Wall Street Financial Corporation OTC BB $70,950 ($ 325) $ 70,625
-----------------------------------
$201,436 $129,189 $330,625
-----------------------------------
Subsequent Event
As of January 18, 2001 the current market value of these
securities is $129,700. This would result in an unrealized loss of
$71,736 as of the reporting date.
8. Notes payable
The notes payable consist of the following:
Due Date Principal Amount Interest Rate
Current $ 328,568 12% - 15%
July 20, 2005 $ 477,003 12%
----------------
Total $ 805,571
----------------
9. Deferred Gain resulting from the Sale of Subsidiary ("Mega Blow Mouldings
Ltd.")
Net Gain on Sale of Subsidiary $ 2,811,231
Less: Adjustment to Sale Price of Mega Blow $ 850,000
Less: Allowance for Deferred Gain $ 1,961,231 $ 2,811,231
----------- -----------
$ -
-----------
10. Stock Options
a) Options to purchase common shares have been issued under the
Employee Benefit Plan Registration Statement, registered February
25, 1998, to officers and key employees of the company and its
subsidiary. Options outstanding at October 31, 2000 are as
follows:
Year Granted Expiry Date Price Range No. of Shares
-----------------------------------------------------------------------
November 1, 2000 October 31, 2001 $ 0.11 85,000
November 1, 2001 October 31, 2002 $ 0.11 410,000
-----------------------------------------------------------------------
Total Outstanding 495,000
---------------
12
b) As at October 31, 2000, 400,000 warrants were issued and exercised
at a price of $0.10 per share, 1,097,500 warrants were issued and
exercised at a price of $0.11 per share and 7,500 warrants were
issued and exercised at a price of $0.16 per share, for each
warrant owned. These warrants covered in this plan are exercisable
over a 3 year period and expire in November 2002.
11. Contributed surplus
Contributed surplus represents the premium paid on the issuance of
common shares.
12. Income taxes
As at October 31, 2000 the company had a net operating loss
carryover of approximately $6,261,958 expiring in various years through
2015.
13
ITEM 2. Management's Discussion and Analysis or Plan of Operation
This Quarterly Report on Form 10-QSB for the quarterly period ended
October 31, 2000 contains "forward-looking" statements within the meaning of the
Federal securities laws. These forward-looking statements include, among others,
statements concerning the Company's expectations regarding business
opportunities and market trends, competition, sales trends, the availability of
debt and equity capital to fund the Company's capital requirements, and other
statements of expectations, beliefs, future plans and strategies, anticipated
events or trends, and similar expressions concerning matters that are not
historical facts. The forward-looking statements in this Quarterly Report on
Form 10-QSB for the quarterly period ended October 31, 2000 are subject to risks
and uncertainties that could cause actual results to differ materially from
those results expressed in or implied by the statements contained herein.
Overview
- --------
Treasury International, Inc. (the "Company") is a holding company whose
objective is to create shareholder value by acquiring and/or developing
operations and proprietary assets that generate sustainable revenues and which
yield long-term growth potential. The Company's operations are located primarily
in North America.
During the next few years, the Company expects to continue to implement
its development strategy. The Company's development strategy includes acquiring
operations and assets that meet the following objectives: (i) allow the Company
to gain strategic position, (ii) improve asset productivity, and (iii) improve
growth potential in both emerging technologies and key targeted vertical market
sectors. To increase market share, the Company may also attempt to acquire or
seek alliances with key competitors and other companies that may have important
products and synergies with the Company's existing operations and products.
The Company's new management team has revised both the Company's
restructuring plans and the Company's operations. New management believes the
Company is now positioned to realize significant growth in both revenue and
market share within its operating entities.
The purchase of Pioneer Media Group in May 1999 (now known as Compelis
Corporation) allowed the Company to reorient its business focus through entry
into the growing Internet E-commerce and E-business field. In conjunction with
the acquisition of Pioneer Media Group, the Company also reacquired 3,200,000
shares of its common stock owned by Pioneer Media Group prior to the
transaction, which resulted in a reduction to goodwill of $200,000. Management
believes that the acquisition of these new software assets will allow the
Company to generate revenues from new sources. As the core of the Company's
Internet strategy, management also believes that these assets will represent
significant opportunities for development.
The Company's current business is the design, development and delivery
of internet-based enterprise management and communication solutions for
organizations with less than 500 employees and sales of less than $100,000,000.
The Company's products facilitate the sharing of business-critical information
between employees, trading partners and customers to streamline processes, to
14
encourage knowledge transfer and to build competitive advantage. The Company's
operations include Compelis Corporation, Retailport.com, Inc. and Webco-ops.com,
Inc. The Company also owns the following suite of proprietary software assets
and activities known as the Active Business Solutions: ActiveRMS,
ActiveCommerce, ActiveCatalog, ActiveCD, ActiveDataBank, ActiveHost and
ActiveDesign.
In May 2000, the Company released its core family of Internet-based
software solutions, consisting of ActiveRMS for retailers and ActiveCommerce for
manufacturing and distribution markets. Both ActiveRMS and ActiveCommerce employ
Microsoft Commercial Internet System (MCIS), Microsoft SQL Server 7.0 and run on
the Windows NT computing platform. The Company's products are based on industry
and Web standards, including SQL, Site Server, ASP, HTML, PDF, Java and ActiveX.
The Company's former subsidiary, Mega Blow Mouldings Limited ("Mega
Blow"), was acquired on October 30, 1996 for $$2,863,182, consisting of
$1,361,302 of cash and $1,501,880 of debentures. Subsequently, Mega Blow was
sold effective November 30, 1998 for $4,250,000, consisting of a $250,000 cash
deposit, a $4,000,000 promissory note, and an $850,000 promissory note. On
November 7, 1999, the $4,000,000 promissory note was reduced by a credit against
the debentures of $1,394,266 (principal of $1,240,602 and accrued interest of
$153,664). The Company currently holds a promissory note with an outstanding
principal balance of $2,649,398, which is currently in default, as a result of
which the Company did not recognize any related interest income during the nine
months ended October 31, 2000. During the fiscal year ended January 31, 2000,
the note receivable resulting from the sale of Mega Blow was restructured by
eliminating the $850,000 note receivable against deferred gain.
The financial statements included herein as of October 31, 2000 and for
the nine months ended October 31, 2000 and 1999 have been restated from those
previously filed with the United States Securities and Exchange Commission in
the Company's Quarterly Report on Form 10-QSB for the quarterly period ended
October 31, 2000, to recognize charges to operations for uncollectible accounts
receivable relating to the Mega Blow promissory note and for deferred research
and development costs, to reduce amortization expense and other income, and to
recognize a reduction in deferred gain on sale of Mega Blow.
Nine Months Ended October 31, 2000 and 1999
- -------------------------------------------
The Company's results of operations for the nine months ended October
31, 2000 include approximately six months of operations of Compelis Corporation
(formerly Pioneer Media Group), which was acquired effective May 7, 1999.
Revenues from operations for the nine months ended October 31, 2000
were $253,210, as compared to $205,092 for the nine months ended October 31,
1999, an increase of $48,118 or 23.5%.
Management fees of $33,333 were charged to Mega Blow during the nine
months ended October 31, 1999. Interest income of $455,321 resulted from
extension agreements signed with the purchasers of Mega Blow relating to the
$4,000,000 promissory note. Since no interest payment has been received, and the
promissory note and related accrued interest are in default, a bad debt expense
has been recorded to write-off the accrued interest of $455,321 at October 31,
1999.
15
Cost of goods sold was $196,280 or 77.5% of operating revenues for the
nine months ended October 31, 2000, as compared to $170,045 or 82.9% of
operating revenues for the nine months ended October 31, 1999.
General and administrative expenses decreased to $282,354 for the nine
months ended October 31, 2000, as compared to $289,922 for the nine months ended
October 31, 1999. General and administrative costs include the normal costs
associated with the ongoing operations and administration of a public company.
Software development costs were $242,090 for the nine months ended
October 31, 2000, as compared to $82,632 for the nine months ended October 31,
1999, reflecting increased expenditures to enhance the functional aspects of the
Company's software products. The Company's ability to develop and market new
products and product enhancements in a timely manner is subject to various
factors, including the availability of qualified personnel, the ability to solve
technical issues, and the availability of adequate financial resources to
support such efforts, as well as other factors outside the control of the
Company. There can be no assurances that the Company will be successful in
developing and marketing new products and product enhancements.
The Company recorded a write-down of note receivable of $688,167 to
reflect the default on the Mega Blow promissory note during the nine months
ended October 31, 2000.
As a result of the foregoing factors, the Company recorded a loss of
$1,192,147 for the nine months ended October 31, 2000, as compared to a loss of
$323,569 for the nine months ended October 31, 1999.
The Company recorded unrealized gains on securities of $129,189 for the
nine months ended October 31, 2000.
The net gain of $2,811,231 originally due from the sale of Mega Blow at
January 31, 1999, reduced by $850,000 to $1,961,231 at January 31, 2000, was
offset against the note receivable balance of $1,961,231 at October 31, 2000 as
a result of the note receivable being in default.
Liquidity and Capital Resources
- -------------------------------
During the nine months ended October 31, 2000 and 1999, the primary
sources of liquidity for the Company were from the sale of common stock,
borrowings under loans and notes payable, and funds generated from the sale of
Mega Blow.
Operating. During the nine months ended October 31, 2000 and 1999, the
Company's operations utilized cash resources of $639,559 and $269,225,
respectively. As of October 31, 2000, the Company's net working capital
deficiency was ($99,457), as compared to ($342,073) at January 31, 2000,
respectively, reflecting current ratios of .84:1 and .16:1, respectively. The
reduction in the net working capital deficiency at October 31, 2000 as compared
to January 31, 2000 was in part a result of the increase in marketable
securities of $330,625.
16
Financing. During the nine months ended October 31, 2000 and 1999, net
proceeds (disbursements) with respect to the issuance (repurchase) of common
stock was ($145,171) and $316,000, respectively.
At January 31, 2000 and October 31, 2000, the Company owed $56,547 and
$65,979, respectively, to Royal Bank of Canada under a $67,000 operating line of
credit.
Loans and notes payable increased by $868,796 during the nine months
ended October 31, 2000, including loans from officers and directors of $206,472.
During the nine months ended October 31, 2000, the Company made
$267,853 of long-term investments.
The Company believes, based on its currently proposed plans and
assumptions relating to its existing assets, that its projected cash flows from
operations, combined with borrowings and/or the sale of common stock or assets,
will be sufficient to meet its operating and financing requirements through
January 31, 2001. However, depending on the Company's rate of growth and results
of operations, the Company may seek to raise additional debt or equity capital
through public or private financings, increasing its current lending facilities,
or through project-specific financings. There can be no assurances that the
Company will be successful in raising any required capital on a timely basis
and/or under acceptable terms and conditions, and the Company's inability to do
so may impair its ability to implement its business plan.
Recent Accounting Pronouncements
- --------------------------------
In June 1998, the Financial Accounting Standards Board issued Statement
No. 133, "Accounting for Derivative Instruments and Hedging Activities" ("SFAS
No. 133"), which, as amended, is effective for financial statements for all
fiscal quarters of all fiscal years beginning after June 15, 2000. SFAS No. 133
standardizes the accounting for derivative instruments, including certain
derivative instruments embedded in other contracts, by requiring that an entity
recognize those items as assets or liabilities in the statement of financial
position and measure them at fair value. SFAS No. 133 also addresses the
accounting for hedging activities. The Company will adopt SFAS No. 133 for its
fiscal year beginning February 1, 2001. The Company currently does not have any
derivative instruments nor is it engaged in any hedging activities, thus the
Company does not believe that implementation of SFAS No. 133 will have a
material effect on its financial statement presentation and disclosures.
In December 1999, the Staff of the Securities and Exchange Commission
issued Staff Accounting Bulletin No. 101, "Revenue Recognition in Financial
Statements" ("SAB No. 101"). SAB No. 101, as amended by SAB No. 101A and SAB No.
101B, is effective no later than the fourth fiscal quarter of fiscal years
beginning after December 15, 1999. SAB No. 101 provides the Staff's views in
applying generally accepted accounting principles to selected revenue
recognition issues. The Company believes that it currently complies with the
accounting and disclosures provisions described in SAB No. 101. Accordingly, the
Company does not believe that implementation of SAB No. 101 will have a material
effect on its financial statement presentation and disclosures.
17
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K. None
18
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.
TREASURY INTERNATIONAL, INC.
Dated: January 19, 2001 By ___________________________________________
Dale Doner, President
Dated: January 19, 2001 By ___________________________________________
Marlin Doner, Chief Financial Officer
19