SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended Commission File Number
- ----------------- ----------------------
August 31, 2001 000-33031
WORLD ENVIROTECH, INC.
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(Exact name of registrant as specified in its charter)
Colorado 84-1263981
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(State of incorporation) (I.R.S. Employer
Identification No.)
7293 S. Sherman Street, Littleton, CO 80122
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: none
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 the filing
requirements for at least the past 90 days.
Yes X No
----- ------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
10,805,400 common shares as of August 31, 2001
WORLD ENVIROTECH, INC.
Financial Statements
For the Six Month Period Ended August 31, 2001
(Unaudited)
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
Michael Johnson & Co. LLC
9175 E. Kenyon Ave., #100
Denver, CO 80237
(303) 796-0099
FAX (303) 796-0137
REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT
To the Board of Directors
World Envirotech, Inc.
Denver, Colorado
We have reviewed the accompanying balance sheet of World Envirotech, Inc. as of
August 31, 2001 and the related statements of operations for the three month and
six month period ended August 31, 2001 and 2000, and the cash flows for the six
months ended August 31, 2001 and 2000 included in the accompanying Securities
and Exchange Commission Form 10-QSB for the period ended August 31, 2001. 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 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 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 February 28, 2001, and the related statements
of operations, stockholders' equity and cash flows for the year then ended (not
presented herein). In our report dated April 20, 2001, we expressed an
unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying balance sheet as of August 31, 2001 is
fairly stated in all material respects in relation to the balance sheet from
which it has been derived.
/s/ Michael Johnson & Co., LLC.
Michael Johnson & Co., LLC.
Denver, Colorado
November 13, 2001
F-1
WORLD ENVIROTECH, INC.
BALANCE SHEETS
(Unaudited)
August 31, February 28,
2001 2001
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ASSETS:
Current Assets:
Cash $ 2,093 $ 2,244
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TOTAL ASSETS $ 2,093 $ 2,244
=============== =============
LIABILITIES AND STOCKHOLDERS' DEFICIT:
Current Liabilities:
Advances from shareholders $ 3,800 $ 3,800
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TOTAL CURRENT LIABILITIES 3,800 3,800
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Stockholders' Deficit:
Common stock, no par value, 10,000,000
shares authorized, 10,805,400 issued and
respectively 114,307 114,307
Retained deficit (116,014) (115,863)
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Total Stockholders' Deficit (1,707) (1,556)
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TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 2,093 $ 2,244
=============== =============
See accountant's review report.
F-2
WORLD ENVIROTECH, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
March 16, 1994
For the Three Months Ended For the Six Months Ended (Inception) to
August 31, August 31, August 31,
2001 2000 2001 2000 2001
-------- -------- -------- -------- --------------
INCOME $ - $ - $ - $ - $ -
OPERATING EXPENSES:
General and administrative - - 151 - 116,014
--------------- --------------- --------------- --------------- --------------
- - 151 - 116,014
--------------- --------------- --------------- --------------- --------------
Net Loss from Operations - - (151) - (116,014)
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Other Income and Expenses:
Interest income - - - - -
Interest expense - - - - -
--------------- --------------- --------------- --------------- --------------
- - - - -
--------------- --------------- --------------- --------------- --------------
Net Loss $ - $ - $ (151) $ - $ (116,014)
=============== =============== =============== =============== ==============
Weighted average number of
shares outstanding 10,805,400 10,805,400 10,805,400 10,805,400
Loss per common share $ - $ - $ (0.0001) $ -
=============== =============== =============== ===============
See accountant's review report.
F-3
WORLD ENVIROTECH, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
Common Stock Retained
Shares Amount Deficit Totals
---------- ---------- ------------ ----------
Balance - February 28, 1993 - $ - $ - $-
Issuance of stock for cash 46,800 46,800 46,800
Issuance of stock for services 10,701,100 10,007 - 10,007
Net loss for year - - (119,927) (119,927)
---------------- ------------- ---------------- ---------------
Balance - February 28, 1994 10,747,900 56,807 (119,927) (63,120)
---------------- ------------- ---------------- ---------------
Issuance of stock for cash 57,500 57,500 - 57,500
Net income for year - - 5,620 5,620
---------------- ------------- ---------------- ---------------
Balance - February 28, 1995 10,805,400 114,307 (114,307) -
---------------- ------------- ---------------- ---------------
Net loss for year - - - -
---------------- ------------- ---------------- ---------------
Balance - February 28, 1996 10,805,400 114,307 (114,307) -
---------------- ------------- ---------------- ---------------
Net loss for year - - - -
---------------- ------------- ---------------- ---------------
Balance - February 28, 1997 10,805,400 114,307 (114,307) -
---------------- ------------- ---------------- ---------------
Net loss for year - - - -
---------------- ------------- ---------------- ---------------
Balance - February 28, 1998 10,805,400 114,307 (114,307) -
---------------- ------------- ---------------- ---------------
Net loss for year - - - -
---------------- ------------- ---------------- ---------------
Balance - February 28, 1999 10,805,400 114,307 (114,307) -
---------------- ------------- ---------------- ---------------
Net loss for year - - - -
---------------- ------------- ---------------- ---------------
Balance - February 28, 2000 10,805,400 114,307 (114,307) -
---------------- ------------- ---------------- ---------------
Net loss for year - - (1,556) (1,556)
---------------- ------------- ---------------- ---------------
Balance - February 28, 2001 10,805,400 114,307 (115,863) (1,556)
---------------- ------------- ---------------- ---------------
Net loss for period - - (151) (151)
---------------- ------------- ---------------- ---------------
Balance - August 31, 2001 10,805,400 $114,307 $ (116,014) $ (1,707)
================ ============= ================ ===============
See accountant's review report.
F-4
WORLD ENVIROTECH, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Indirect Method
March 16,1994
For the Six Months Ended Inception to
August 31, August 31,
2001 2000 2001
-------- -------- -------------
Cash Flows From Operating Activities:
Net (Loss) $ (151) $ - $ (116,014)
Adjustments to reconcile net loss to net cash
used in operating activities:
Stock issued for services - - 10,007
Loss of assets - - -
Changes in assets and liabilities:
Increase in Accounts Payables - - -
Increase in Accounts Receivable - - -
------------- -------------- ----------------
- - 10,007
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Net Cash Used in Operating Activities (151) - (106,007)
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Cash Flow From Financing Activities:
Issuance of common stock - - 104,300
Advances from stockholders - - 3,800
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Net Cash Provided By Financing Activities - - 108,100
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Increase (Decrease) in Cash (151) - 2,093
Cash and Cash Equivalents - Beginning of period 2,244 - -
------------- -------------- ----------------
Cash and Cash Equivalents - End of period $ 2,093 $ - $ 2,093
============= ============== ================
Supplemental Cash Flow Information:
Interest paid $ - $ - $ -
============= ============== ================
Taxes paid $ - $ - $ -
============= ============== ================
See accountant's review report.
F-5
WORLD ENVIROTECH, INC.
NOTES TO FINANCIAL STATEMENTS
1. Presentation of Interim Information
In the opinion of the management of World Envirotech, Inc., the
accompanying unaudited financial statements include all normal adjustments
considered necessary to present fairly the financial position as of August
31, 2001, and the results of operations for the three months and six months
ended August 31, 2001 and 2000, and cash flows for the six months ended
August 31, 2001 and 2000. Interim results are not necessarily indicative of
results for a full year.
The financial statements and notes are presented as permitted by Form
10-QSB, and do not contain certain information included in the Company's
audited financial statements and notes for the fiscal year ended February
28, 2001.
F-6
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS FOR THE SIX MONTH PERIOD ENDED AUGUST 31, 2001
The Company had no income in the six month period ended August 31, 2001 or 2000
and incurred no expenses for 2001 and 2000. The loss for the six month period
for 2001 was ($151) and in 2000 it was $0. The loss per share was less than
($.01) in the period in 2001 and none in 2000.
RESULTS OF OPERATIONS FOR THE QUARTER ENDED AUGUST 31, 2001 COMPARED TO
QUARTER ENDED AUGUST 31, 2000
The Company had no revenues in the quarter in 2001 or 2000. The Company incurred
no expenses in the quarter in 2001 $0 in 2000. The loss for the quarter was ($0)
in 2001 and 2000. The Company had a no loss per share in 2001 and in 2000.
LIQUIDITY AND CAPITAL RESOURCES
The Company does not have capital sufficient to meet the Company's cash needs,
including the costs of compliance with the continuing reporting requirements of
the Securities and Exchange Act of 1934. The Company will have to seek loans or
equity placements to cover such cash needs. In the event the Company is able to
complete a business combination during this period, lack of its existing capital
may be a sufficient impediment to prevent it from accomplishing the goal of
completing a business combination. There is no assurance, however, that without
funds it will ultimately allow registrant to complete a business combination.
Once a business combination is completed, the Company's needs for additional
financing are likely to increase substantially.
Irrespective of whether the Company's cash assets prove to be inadequate to meet
the Company's operational needs, the Company might seek to compensate providers
of services by issuances of stock in lieu of cash.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULT UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
Appointment of New Directors and Resignation of Directors
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Reports on Form 8-K were made for the period for which
this report is filed. None.
SIGNATURES
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.
Date: November ____, 2001
WORLD ENVIROTECH, INC.
/s/ Carl Urich
-----------------------------
Carl Urich, President