SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1998
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 No. 1-12293
NATURAL WAY TECHNOLOGIES, INC.
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(Exact name of small business issuer as specified in its charter)
Nevada 87-0394313
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(State or other jurisdiction of (IRS Employer Identification No)
incorporation or organization)
Rm. 2211-2215, Science and Technology Building, No. 1001
Shangbuzhong Road, Fution District Shenzhen, PRC
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(Address of principal executive offices)
011-07-55-369-9588
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(Issuer's telephone number)
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(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 No X
As of February 1, 2000, 3,500,000 shares of Common Stock of the issuer were
outstanding.
NATURAL WAY TECHNOLOGIES, INC.
INDEX
Page
Number
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets - September 30, 1998 and
December 31, 1997............................................3
Consolidated Statements of Operations - For the three
month and nine month periods ended September 30, 1998
and 1997.....................................................4
Consolidated Statements of Cash Flows - For the nine
month periods ended September 30, 1998 and 1997..............5
Notes to Consolidated Financial Statements...................6
Item 2.Management's Discussion and Analysis of Financial Condition
and Results of Operations......................................6
PART II - OTHER INFORMATION...............................................7
SIGNATURES................................................................8
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NATURAL WAY TECHNOLOGIES, INC. AND SUBSIDIARIES
Balance Sheets
Amounts expressed in United States Dollars
(000)
September 30, December 31,
1998 1997
------------ -----------
ASSETS
Total assets - -
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Total liabilities - -
============ ===========
Common stock, par value US$0.001; issued and
outstanding - 3,500,000 shares as of December 31,
1997 and September 30, 1998 3 3
Additional paid in capital 5,929 5,929
Accumulated deficit (5,932) (5,932)
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Stockholders' equity 0 0
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Total liabilities and stockholders' equity - -
============ ===========
See accompanying notes to condensed consolidated financial statements
3
NATURAL WAY TECHNOLOGIES, INC. AND SUBSIDIARIES
Statements of Operations
Amounts Expressed in United States Dollars
(000)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- --------------------
1998 1997 1998 1997*
------ ------ ------ ------
Revenues $ 0 $ 0 $ 0 $ 0
------- -------- ------ -------
Expenses:
Foreign currency gain 0 0 0 (3)
------- -------- ------ -------
Net income $ 0 $ 0 $ 0 $ 3
======= ======== ====== =======
(Loss) per share $ 0 $ 0 $ 0 $ 0
======= ======== ====== =======
Weighted average share
outstanding 3,500,000 10,500,000 3,500,000 10,500,000
========= ========== ========= ==========
* Restated to give retroactive effect to the Termination Agreement
See accompanying notes to condensed consolidated financial statements
4
NATURAL WAY TECHNOLOGIES, INC. AND SUBSIDIARIES
Statements of Cash Flows
Amounts Expressed in United States Dollars
(000)
Nine Months Ended
September 30,
1998 1997*
------ -------
Cash flows from operating activities:
Net income $ 0 $ 3
Adjustments to reconcile net loss to cash used
in operating activities:
Decrease in accrued expenses 0 (2)
------- -------
Net cash provided by (used in) operating activities 0
1
------- -------
Cash flows from investing activities:
Effect of translation adjustments 0 (3)
------- -------
Net cash (used in) investing activities 0 (3)
------- -------
Cash flows from financing activities:
Diminution of cash due to disposal of subsidiary 0 (1,204)
Net cash provided by financing activities 0 (1,204)
------- -------
Net increase (decrease) in cash (1,206)
Cash at beginning of period 0 1,206
------- -------
Cash at end of period $ 0 $ 0
======= =======
* Restated to give retroactive effect to the Termination Agreement
See accompanying notes to condensed consolidated financial statements
5
NATURAL WAY TECHNOLOGIES, INC.
Notes to Financial Statements
September 30, 1998
1. INTERIM FINANCIAL PRESENTATION
The interim financial statements are prepared pursuant to the requirements
for reporting on Form 10-QSB. The December 31, 1997 balance sheet data was
derived from audited financial statements but does not include all
disclosures required by generally accepted accounting principles. The
interim financial statements and notes thereto should be read in
conjunction with the financial statements and notes included in the
Company's Form 10-KSB for the year ended December 31, 1997. In the opinion
of management, the interim financial statements reflect all adjustments of
a normal recurring nature necessary for a fair statement of the results for
the interim periods presented.
2. Currency Presentation and Foreign Currency Translation
The Company's financial information is presented in U.S. dollars. The
translation of the financial statements of foreign subsidiaries into United
States dollars is performed for balance sheet accounts using closing
exchange rates in effect at the balance sheet date and for revenue and
expense accounts using an average exchange rate during each reporting
period. The gains or losses resulting from translation are included in
shareholders' equity separately as cumulative translation adjustments.
6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Material Changes in Results of Operations
The Company reported no revenues for the three month or nine months ended
September 30, 1998 or 1997. However, the Company had a foreign currency gain of
$3,000 for the nine months ended September 30, 1997. The Company had no expenses
for either the three months or nine months ended September 30, 1998 or 1997. The
1997 figures were adjusted to give retroactive effect to the Termination
Agreement which ended the Company's affiliation with China Medical Development
Ltd. retroactive to January 1, 1997.
Although the Company has no assets or operations, the Company believes that
it will be able to find a suitable candidate with which to merge or acquire.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
1. 27.1 Financial Data Schedule
b) Reports on Form 8-K
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
NATURAL WAY TECHNOLOGIES, INC.
Date: February 9, 2000 By: /s/ Yiu Yat On
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Yiu Yat On, President and Principal
Executive Officer
Date: February 9, 2000 By: /s/ Ma Ding Jie
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Ma Ding Jie, Treasurer and Principal
Financial Officer