SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For quarterly period ended March 31, 2004
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: 001-15777
Unitrend, Inc.
(Exact name of registrant as specified in its charter)
Nevada 34-1904923
(State or other jurisdiction (I.R.S. employer
of incorporation or organization) identification number)
4665 West Bancroft St.
Toledo, Ohio 43615
(Address of principal executive offices, including zip code)
(419) 536-2090
(Registrant's telephone number, including area code)
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 [ ]
Number of shares of registrant's common stock outstanding as of March 31, 2004:
70,390,770
UNITREND, INC. AND SUBSIDIARY
FORM 10-QSB
QUARTER ENDED MARCH 31, 2004
Table of Contents
PART I FINANCIAL INFORMATION Page
Item 1. Condensed Financial Statements
Condensed Balance Sheets at March 31, 2004 And December 31, 2003.. 4
Condensed Statements of Operations for the three months
ended March 31, 2004, 2003 and for the period from September
27, 1994 (date of inception) to March 31, 2004.................... 5
Condensed Statements of Cash Flows for the three months ended
March 31, 2004, 2003 and for the period from September 27,
1994 (date of inception) to March 31, 2004........................ 6
Statements of Stockholders' Equity for the three months ended
March 31, 2004 and for the years ended December 31, 2003, 2002
and 2001.......................................................... 7
Notes to Condensed Financial Statements......................... 8-9
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations....................................... 9-11
PART II OTHER INFORMATION
Item 1. Legal Proceedings............................................... 11
Item 2. Changes In Securities And Use Of Proceeds....................... 11
Item 3. Defaults Upon Senior Securities................................. 11
Item 4. Submission Of Matters To A Vote Of Security Holders............. 12
Item 5. Other Information............................................... 12
Item 6. Exhibit......................................................... 12
Signatures...................................................... 12
This quarterly report on Form 10-QSB is for the three months ended March 31,2004
This quarterly report modifies and supersedes documents filed prior to this
quarterly report. The Securities and Exchange Commission (SEC) allows us to
"incorporate by reference" information that we file with them, which means that
we can disclose important information to you by referring you directly to those
documents. Information incorporated by reference is considered to be part of
this quarterly report. In addition, information that we file with the SEC in
the future will automatically update and supersede information contained in this
quarterly report. In this quarterly report, "Unitrend," "we," "us" and "our"
refer to Unitrend, Inc.
You should carefully review the information contained in this quarterly report
and in other reports or documents that we file from time to time with the SEC.
In this quarterly report, we state our beliefs of future events and of our
future financial performance. In some cases, you can identify those so-called
"forward-looking statements" by words such as "may," "will," "should," "expects"
"plans," "anticipates," "believes," "estimates," "predicts," "potential," or
"continue" or the negative of those words and other comparable words. You should
be aware that those statements are only our predictions. Actual events or
results may differ materially. In evaluating those statements, you should
specifically consider various factors, including the risks outlined below.
Those factors may cause our actual results to differ materially from any of our
forward-looking statements.
Part I. Financial Information
Item I. Condensed Financial Statements
UNITREND, INC.
(A Development Stage Company)
BALANCE SHEETS
ASSETS
(unaudited) (unaudited)
March 31, 2004 December 31,2003
---------------- ----------------
CURRENT ASSETS
Cash $ 2,197 $ 3,178
Inventory - Finished goods 10,638 10,651
---------------- ----------------
Total current assets 12,835 13,829
PROPERTY AND EQUIPMENT, at cost
Land 67,485 67,485
Building and improvements 351,168 351,168
Furniture and fixtures 65,496 65,496
Computer equipment 151,055 151,055
Computer software 46,719 46,719
Automobiles 15,937 15,937
Tooling and dies under construction 1,535,757 1,507,157
---------------- ----------------
2,233,617 2,205,017
Less accumulated depreciation (298,952) (294,261)
---------------- ----------------
Net property and equipment 1,934,665 1,910,756
---------------- ----------------
OTHER ASSETS
Patent licensing costs,
net of accumulated amortization 22,298 22,827
---------------- ----------------
TOTAL ASSETS $ 1,969,798 $ 1,947,412
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITES
Accounts payable $ 688,786 $ 623,626
Current portion of note payable 180,497 185,330
Accrued expenses 1,128,771 1,172,433
---------------- ----------------
Total current liabilities 1,998,054 1,981,390
---------------- ----------------
NOTES PAYABLE - RELATED PARTIES - -
---------------- ----------------
STOCKHOLDERS' EQUITY
Common stock, no par value 3,805,098 3,795,598
Additional paid-in capital 8,738,514 8,601,683
Deficit accumulated in the development stage
(12,571,869) (12,431,259)
---------------- ----------------
Total stockholders' equity (28,256) (33,978)
---------------- ----------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 1,969,798 $ 1,947,412
================ ================
UNITREND, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS (UNAUDITED)
(unaudited)
(unaudited) (unaudited) September 27, 1994
Three Months Ended Three Months Ended (Date of Inception)
March 31, 2004 March 31, 2003 to March 31, 2004
---------------- ---------------- ----------------
Sales $ 32 $ - $ 719
Cost of Sales (156) - (1,167)
---------------- ---------------- ----------------
Gross Loss (124) - (448)
Research and development expenses - (24,000) (566,515)
Selling, general and administrative expenses (136,707) (58,434) (11,668,617)
---------------- ---------------- ----------------
Operating loss (136,831) (82,434) (12,235,580)
Interest income - - 1,546
Interest expense (3,779) (6,307) (313,867)
---------------- ---------------- ----------------
Net loss before cumulative effect of change
in accounting principle (140,610) (88,741) (12,547,901)
Cumulative effect of change in accounting principle - - (23,968)
---------------- ---------------- ----------------
Net loss $ (140,610) $ (88,741) $ (12,571,869)
================ ================ ================
Basic and diluted loss per share:
Before cumulative effect of change in
accounting principle $ (0.00) $ (0.00) $ (0.18)
Cumulative effect of change in
accounting principle - - -
---------------- ---------------- ----------------
Net loss $ (0.00) $ (0.00) $ (0.18)
================ ================ ================
Weighted average shares outstanding used to
compute basic and diluted loss per share 70,390,770 70,371,770 68,080,703
================ ================ ================
UNITREND, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(unaudited)
(unaudited) (unaudited) September 27, 1994
Three Months Ended Three Months Ended (Date Of Inception)
March 31, 2004 March 31, 2003 to March 31, 2004
---------------- ---------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (140,610) $ (88,741) $ (12,571,869)
---------------- ---------------- ----------------
Adjustments to reconcile net loss to
net cash used in operating activities:
Change in accounting principle - - 23,968
Options issued for services - - 5,326,989
Depreciation & amortization 5,220 5,885 339,597
Loss on disposal of property
and equipment - - 12,893
Bad debt - - 42,157
Accrued interest income - - (3,091)
Common stock issued for services - - 10,000
Increase in operating assets:
Inventory 13 - (10,638)
Increase (decrease) in operating liabilities:
Accounts payable 65,160 4,151 688,786
Accrued expenses (43,662) 38,908 1,344,461
---------------- ---------------- ----------------
Total adjustments 26,731 48,944 7,775,122
---------------- ---------------- ----------------
Net cash used in operating activities (113,879) (39,797) (4,796,747)
---------------- ---------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES
Payment for patent licensing costs - - (31,723)
Purchase of property and equipment (28,600) - (2,277,022)
Proceeds from sale of property and
equipment - - 10,941
Loans to related parties - - (18,191)
Loans to other entities - - (23,916)
Repayment from employee - - 3,041
Payment of organizational cost - - (30,168)
---------------- ---------------- ----------------
Net cash provided by (used in )
investing activities (28,600) - (2,367,038)
---------------- ---------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of loan costs - - (5,448)
Loans from stockholder 136,832 41,720 3,229,021
Proceeds from note payable - - 290,000
Payment on note payable (4,833) (1,903) (109,503)
Proceeds from sale of common stock
and exercise of stock options 9,500 - 2,629,063
Payments for stock recissions - - (134,170)
Sale of stock subject to recission
for cash - - 1,267,020
---------------- ---------------- ----------------
Net cash provided by financing
activities 141,499 39,817 7,165,983
---------------- ---------------- ----------------
Net increase (decrease) in cash (981) 20 2,197
Cash - beginning of period 3,178 52 -
---------------- ---------------- ----------------
Cash - end of period $ 2,197 $ 72 $ 2,197
================ ================ ================
SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION:
Cash paid during the period
Interest $ 3,779 $ 2,097 $ 170,392
SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES:
The President/Majority Stockholder forgave debt of $136,832 during the
period ended March 31, 2004.
UNITREND, INC.
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the Three Months Ended March 31, 2004
And For the Year Ended December 31, 2003, 2002 and 2001
(unaudited)
Deficit
Accumulated
Common Stock Additional During the
---------------- Paid-in Development
Shares Amount Capital Stage Total
---------- ---------- ---------- ------------- ----------
BALANCE -
DECEMBER 31, 2000 69,895,580 3,557,503 8,023,695 (10,667,395) 913,803
Net loss - 2001 - - - (431,989) (431,989)
---------- ---------- ---------- ------------- -----------
BALANCE -
DECEMBER 31, 2001 69,895,580 3,557,503 8,023,695 (11,099,384) 481,814
Majority stockholder
exercised options
at $0.50 per share
on January 22, 2002 476,190 238,095 - - 238,095
Net loss - 2002 - - - (1,050,937) (1,050,937)
---------- ---------- ---------- ------------- -----------
BALANCE -
DECEMBER 31, 2002 70,371,770 3,795,598 8,023,695 (12,150,321) (331,028)
Majority stockholder
forgives loans and
accrued salary on
December 31, 2003 - - 577,988 - 577,988
Net loss - 2003 - - - (280,938) (280,938)
---------- ---------- ---------- ------------- -----------
BALANCE -
DECEMBER 31, 2003 70,371,770 3,795,598 8,601,683 (12,431,259) (33,978)
Exercise of options
at $0.50 per share
on January 14,2004 19,000 9,500 9,500
Majority stockholder
forgives loans on
March 31, 2004 136,832 136,832
Net loss for the
period ended March
31, 2004 - - - (140,610) (140,610)
---------- ---------- ---------- ------------- -----------
BALANCE -
MARCH 31, 2004 70,390,770 $3,805,098 $8,738,514 $(12,571,869) $ (28,257)
========== ========== ========== ============= ===========
UNITREND, INC.
FORM 10-Q SB
QUARTER ENDED MARCH 31, 2004
NOTES TO CONDENSED FINANCIAL STATEMENTS (unaudited)
BASIS OF PRESENTATION
The condensed financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. However, the Company believes that the disclosures are adequate
to make the information presented not misleading.
The unaudited condensed financial statements included herein reflect all
adjustments (which include only normal, recurring adjustments) that are, in the
opinion of management, necessary to state fairly the results for the three month
period ended March 31, 2004. The results for the three month period ended March
31, 2004 are not necessarily indicative of the results expected for the full
fiscal year.
NATURE AND SCOPE OF BUSINESS
Unitrend, Inc. (the Company) a Nevada corporation as of January, 1999, formerly
an Ohio corporation, is a development stage company formed to produce computer
enclosures, power supplies and related products for a national market. The
Company was incorporated on April 11, 1996 as Versa Case, Inc. On May 15, 1996,
the Company changed its name to Unitrend, Inc. The Company's operations to date
have consisted primarily of incidental sales of computer components while the
Company personnel have concentrated on the development of its products. To
date, the Company has been issued seven United States patents with three patent
applications pending. The VersaCase patent alone was valued at $9,478,000 by
Robinwood Consulting, an independent firm experienced in the valuation of
intellectual property. Generally accepted accounting principles do not allow us
to record this valuation on the balance sheets, we can only account for the
direct costs involved in obtaining a patent. We also have six registered
trademarks and service marks. As of March 31, 2004, expenses incurred have
been primarily for administrative support, tooling and product development of
the enclosures and power supplies that will ultimately be sold and tooling,
product development and inventory of the wire management systems that are
currently being sold, which has resulted in an accumulated deficit in the
development stage of approximately $12,572,000.
On April 16, 1998, the Company formed Osborne Manufacturing, Inc. (OMI) to
produce the Company's products. In 2002, OMI was dissolved because management
determined that it could save time and money by entering into a contract with
New Product Innovations, Inc. (NPI) to provide turnkey manufacturing of its
product line. NPI is a joint venture between General Electric (GE) and Fitch,
Inc. NPI along with Fitch will complete product development, obtain agency
approvals, engage in product positioning and manufacturing development.
The Company merged with Server Systems Technology, Inc. (SSTI) effective
December 15, 1998. SSTI was the predecessor to the Company and was formed
September 27, 1994. It owns several patents that are key to the Company's
products, but otherwise has ceased its development stage operations when the
Company was formed in April, 1996. SSTI is a related party to the Company since
the two entities have common stockholders.
In early 2003, research and development began on the Cablety wire management
system. Designs were finalized and a tool was built to produce the Cablety.
Production of the Cablety began late in the fourth quarter of 2003 and the
Cablety was made available for sale over our new e-commerce site. We had no
significant sales, but anticipate sales to increase as we move forward and
concentrate on our marketing effort of our products. We hope to finalize any
design changes to the VersaCase and Stable power supply in mid 2004 and intend
to produce these two products later in 2004.
On March 1, 2004, Unitrend entered into a contract with Titan Technologies, an
established national sales and marketing group, to market and sell the Cablety,
VersaCase, Stable power supply and any future products developed by Unitrend.
The first product for sale is the Cablety and it will soon be marketed through
various channels including, but not limited to, value added re-sellers (VARs),
original equipment manufacturers (OEMs) and Internet sales. We will modify our
distribution plans as demanded by the markets we serve in order to maximize
efficiency throughout all channels of distribution. In March 2004, R & R
Plastics began building a high volume production tool for the Cablety with new
industrial/military "Safety Wire" capabilities molded into it. In April 2004,
Unitrend along with a representative from Titan Technologies participated in
RetailVision Spring 2004. RetailVision Spring 2004 is a trade show that allows
the manufacturer to sit face to face with potential retailers and distributors
in the computer industry. The Company presented to representatives that
comprise approximately 90% of the computer industry's manufacturers and/or
distributors. A positive result of this show is the marketing agreement signed
with TigerDirect.com, an online retailer that carries the world's largest
selection of computer components. We are currently awaiting word of similar
agreements with other entities.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles require management to make estimates and assumptions
that affect the reported amounts of assets and liabilities, disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting periods.
Actual results could differ from these estimates.
RELATED PARTY PAYABLE
In the past, there were unsecured notes payable to the President/majority
stockholder, including interest at prime on the first business day of the year,
payable in ten equal installments after the Company is profitable for one year.
As of March 31, 2004 and December 31, 2003, the outstanding balance of the note
payable to the President/majority stockholder was zero. On March 31, 2004, our
President/majority stockholder forgave loans to the Company of $136,832. He
also forgave debt of $432,240, accrued interest of $22,280 and accrued salary of
$199,352 during the year ended December 31, 2003. On March 31, 2000, our
President/majority stockholder forgave loans to the Company of $2,171,854 and
accrued interest of $69,942. The forgiveness was accounted for as contributed
capital.
NEW ACCOUNTING PRONOUNCEMENTS
None
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
RESULTS OF OPERATIONS - FIRST THREE MONTHS OF 2004 COMPARED TO FIRST THREE
MONTHS OF 2003
We had no significant revenues in the first three months of 2004 or in the first
three months of 2003. In the fourth quarter 2003, we began to produce and sell
the Cablety wire management system. Revenues were modest during the first
quarter of 2004 because the Company had not completed the development of its
marketing program. This program will include, but not be limited to, trade and
consumer advertising, public relations and trade shows. We anticipate not being
classified as a development stage enterprise sometime during 2004.
We had an operating loss of $136,831 during the three months ended March 31,
2004 as compared to an operating loss of $82,434 during the three months ended
March 31, 2003, an increase of 66%. As discussed below, this operating loss
increased primarily because of selling, general and administrative expenses.
The Company had zero in research and development expenses during the three
months ended March 31, 2004 as compared to $24,000 for the three months ended
March 31, 2003. We believe that research and development expenses will increase
as we go forward due to the contract entered into with New Product Innovations,
Inc. (NPI) to provide turnkey manufacturing of our product line. NPI along with
Fitch, Inc. will complete product development, obtain agency approvals, engage
in product positioning and manufacturing development. We anticipate this
spending to continue to increase as we continue to produce the Cablety, our
first product that was made available to the market in the fourth quarter of
2003 and for the final product development and production of the Stable power
supply and VersaCase. There was $28,600 spent on tooling during the first three
months of 2004 and nothing spent on tooling and dies during the first three
months of 2003, we anticipate this to continue to increase as we move forward.
Selling, general and administrative expenses increased to $136,707 during the
three months ended March 31, 2004 as compared to $58,434 during the three months
ended March 31, 2003, an increase of 134%. The increase in selling, general and
administrative expenses was due primarily to increases in professional fees,
trade show expense and stock registration expense of approximately $23,300,
$15,900 and $11,100 during the three months ended March 31, 2004 as compared to
the three months ended March 31, 2003. Our professional fees increased
significantly during the first three months of 2004 compared to the first three
months of 2003 because of an increase in use of our outside attorneys for patent
related matters, reviewing contracts and general legal work. The Company
experienced the increase in trade show expense because of the fees associated
with the 2004 RetailVision trade show as compared to a trade show expense of
zero in the same time period last year. For 2004, the State of Nevada
significantly increased yearly stock registration fees, which greatly impacted
our stock registration expense for the first three months of 2004 as compared to
the first three months of 2003. There were no significant decreases in other
selling, general and administrative expenses during the three months ended March
31, 2004 as compared to the three months ended March 31, 2003.
There were no stock options granted to non-employees during the three months
ended March 31, 2004 or during the three months ended March 31, 2003.
Accounts payable increased to $688,786 for the three months ended March 31, 2004
compared to $623,626 at years end December 31, 2003. Accrued payroll and
related taxes increased to $775,636 at March 31, 2004 as compared to $749,310 as
years end December 31, 2003, respectively. The Company notified its employees
on January 1, 2001 that due to its financial condition, payment of wages would
cease for an undetermined amount of time and employees could remain, if they
should choose to, on a voluntary basis. In 2002, the Company decided that
payroll expense would resume and has accrued wages since then. Our interest
expense for the three months ended March 31, 2004 was $3,779 as compared to
$6,307 from the same time period last year. This expense decreased due to Mr.
Jelinger forgiving loans made to the Company.
LIQUIDITY AND CAPITAL RESOURCES
The Company has financed its operations since inception primarily through public
and private sales of equity securities, as well as through loans from its
President/majority stockholder, Conrad A.H. Jelinger. As of March 31, 2004, the
Company's cash totaled $2,197. Loans from Mr. Jelinger during the three months
ended March 31, 2004 totaled $136,832. He forgave these loans on March 31,
2004. The President/majority stockholder forgave debt of $432,240, accrued
interest of $22,280 and accrued salary of $199,352 during the year ended
December 31, 2003. On March 31, 2000, our President/majority stockholder
forgave loans to the Company of $2,171,854 and accrued interest of $69,942. This
was accounted for as contributed capital.
Primary uses of cash for the three months ended March 31, 2004 included $113,879
for the Company's operations and working capital requirements. For the three
months ended March 31, 2004, primary uses of cash for the Company's investing
requirements totaled $28,600 due to the launch of a high volume tool to be used
in the production of the Cablety wire management system.
Our future capital requirements will depend upon numerous factors, including the
amount of revenues generated from operations, the cost of our sales and
marketing activities and the progress of our research and development
activities, none of which can be predicted with certainty. In December, 2000,
the Company filed an SB-2 registration statement with the Securities and
Exchange Commission to register 4,000,000 shares of common stock, at $10.00 per
share in a "Best Efforts" offering. The filing was declared effective on
December 28, 2000. The purpose of the offering was to raise sufficient funds to
enable the Company to commence manufacturing of its VersaCase product.
Ultimately, the Company did not receive sufficient subscriptions to enable to
commence manufacturing operations and the offering terminated with all funds
returned to subscribers. Currently, the Company plans to raise sufficient funds
through the advancement of monies by its founder. While funds advanced and
raised from the founder may enable the Company to continue product development
and commence out-source manufacturing, we cannot be certain that the founder
will continue to fund our capital needs. Consequently, we may seek additional
funding during the next 24 months through a post effective amendment to the SB-2
registration statement. There can be no assurance that any additional financing
will be available on acceptable terms, if required. Moreover, if additional
financing is not available, we could be required to reduce or suspend our
operations, seek an acquisition partner or sell securities on terms that may be
highly dilutive or otherwise disadvantageous to existing investors, or investors
purchasing stock offered in the anticipated secondary offering. In the event
that neither of the capital-raising mechanisms described above result in timely
usable proceeds to the Company, we may have a serious shortfall of working
capital. We have experienced in the past, and may continue to experience,
operational difficulties and delays in product development due to working
capital constraints. Any such difficulties or delays could have a material
adverse effect on our business, financial condition and results of operations.
OUTLOOK
The outlook section contains a number of forward-looking statements, all of
which are based on current expectations. Actual results may differ materially.
Our growth strategy is built around five imperatives: maintaining technological
leadership; increasing market share; acquiring other business entities;
leveraging strategic relationships; and the recruiting and retaining of key
personnel.
MAINTAINING TECHNOLOGICAL LEADERSHIP. The cutting edge of our effort to achieve
technological leadership is to establish a standard for open architecture and
modularity in the computer enclosure industry. Other components, accessories,
and products are in various stages of development. They will be supported by an
aggressive research and development budget.
INCREASING MARKET SHARE. Our entry into the market is estimated at a modest
level to allow us to grow at a reasonable pace. However, we make no
representations or guarantees that we will be able to manage the growth of our
business. The Cablety was introduced to the market in the fourth quarter of
2003 and we experienced modest sales. We anticipate sales to grow as we move
forward into 2004. Once VersaCase is introduced, we expect that there will be
significant interest across a number of market segments. The VersaCase is
unparalleled in its versatile application as a PC or server enclosure. The ease
of access and scalability will provide numerous benefits to routine and
mission-critical users that will propel and increase market share.
ACQUIRING OTHER BUSINESS ENTITIES. In order to expand our technological and
market capabilities, we may consider the pursuit of other companies. Such
acquisitions may include core and non-core entities. A core entity may be a
research and development group, and a non-core firm could be one that might
enhance our production process.
LEVERAGING STRATEGIC RELATIONSHIPS. We intend to leverage our relationship
with companies that complement our mission. For instance, the uniqueness of
Cablety, Stable and VersaCase technology will create opportunities for us to
establish strong relationships with key distributors. These distributors will
be able to offer their clients a product that is very competitive and
distinctive. We have been approached by distributors to consider a channel
relationship or exclusive position with them. While we must maintain a broader
market focus, we may selectively enter into agreements that would enhance market
credibility and penetration.
RECRUITING AND RETAINING OF KEY PERSONNEL. An entrepreneurial spirit that was
based in creativity, risk and reward drove the birth of this company. We intend
to maintain this quality by offering competitive salary and incentive
compensation. Our overriding human resources philosophy is to build a corporate
culture that supports the success of each employee, as well as the company.
Part II. Other Information
Item 1. Legal Proceedings
None
Item 2. Changes In Securities And Use Of Proceeds
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission Of Matters To A Vote Of Security Holders
Not Applicable
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) List of Exhibits
99. Additional Exhibits
Exhibit 99.1 Certification Under Section 906 of Sarbanes-Oxley Act
of 2002
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Unitrend,
Inc. has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
UNITREND, INC.
Dated: May 14, 2004 By: /S/ CONRAD A.H. JELINGER:
_________________________
Conrad A.H. Jelinger
Chief Executive Officer,
Interim Chief Financial Officer
and President