UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10QSB
(X) Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended SEPTEMBER 30, 1999
( ) Transition report pursuant of Section 13 or 15(d) of the Securities
Exchange Act of 1939 for the transition period ____ to______
COMMISSION FILE NUMBER 000-1084047
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INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
------------------------------------------
(Exact name of registrant as specified in its charter)
California 95-4691878
- ---------------------------------- ----------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
827 State Street, Suite 26, Santa Barbara, CA 95682 Telephone 805 899 1299
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices, including Registrant's zip code
and telephone number)
NONE
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Former name, former address and former fiscal year, if changed
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
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The number of shares of the registrant's common stock as of September 30, 1999:
17,910,120 shares.
Transitional Small Business Disclosure Format (check one): Yes No X
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TABLE OF CONTENTS
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
(a) Balance Sheet
(b) Statement of Operations
(c) Statement of Changes in Financial Position
(d) Statement of Shareholders' Equity
(e) Notes to Financial Statements
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations
Item 3. Risks
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults On Senior Securities
Item 4. Submission of Items to a Vote
Item 5. Other Information
Item 6
(a) Exhibits
(b) Reports on Form 8K
SIGNATURES
FINANCIAL DATA SCHEDULE
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(a development stage company)
BALANCE SHEET
AS OF SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
(unaudited)
September 30, 1999 December 31, 1998
------------------ -----------------
ASSETS
Current assets
Cash $ 1,000 $ 1,000
----------------- -----------------
Total current assets $ 1,000 $ 1,000
----------------- -----------------
Total assets $ 1,000 $ 1,000
================= =================
LIABILITIES AND SHAREHOLDERS' EQUITY
Shareholders' equity
Common stock (no par value)
20,000,000 shares authorized
September 30, 1999 - 1,077,100
issued; December 31, 1998
1,077,100 issued
$ 2,084 $ 2,019
Paid in capital 16,825 16,825
Deficit accumulated during
development stage (17,893) ( 17,502)
-------- --------
Total shareholders' equity $ 400 $ 9
Total liabilities and
shareholders' equity $ 1,000 $ 1,000
================ ================
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
AND THE NINE MONTHS ENDED SEPTEMBER 30, 1998
AND FOR THE PERIOD FROM INCEPTION MAY 27, 1998 TO SEPTEMBER 30, 1998
(unaudited)
From inception
Nine months ended Nine months ended Nine months ended May 27 to
September 30, 1999 September 30, 1998 September 30, 1999 September 30, 1998
------------------ ------------------ ------------------- -----------------
Sales $ -0- $ -0- $ -0- $ -0-
------------------ ------------------ ------------------- ------------------
Total income: $ -0- $ -0- $ -0- $ -0-
Expenses
Administrative (391) $ (17,502) $ (391) $ (17,502)
------------------ ------------------ ------------------- ------------------
Total expenses (391) $ (17,502) $ (391) $ (17,502)
Loss from operations (391) $ (17,502) $ (391) $ (17,502)
------------------ ------------------ ------------------- ------------------
Net loss $ (391) $ (17,502) $ (391) $ (17,502)
================== ================== =================== ==================
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(a development stage company)
STATEMENT OF CHANGES IN FINANCIAL POSITION
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
AND THE PERIOD FROM INCEPTION MAY 27 TO SEPTEMBER 30, 1998
(unaudited)
From inception
Nine months ended May 27 to
September 30, 1999 September 30, 1998
------------------ ------------------
Funds provided from (used for)operations
Net (loss) during development stage $ ( 391) $ (17,502)
Accounts payable 391 600
Stocks issued for services - 15,702
Funds provided by (used for) operating activities - 237
Funds provided from (used for) financing activities
Proceeds from sale of stock 2,200 -
------------------ ------------------
Net funds provided from (used for) all activities 7,500 $ 215,012
Cash balance at beginning of year 1,000 -
------------------ ------------------
Cash balance at end of period $ 1,000 $ 1,000
================== ==================
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(a development stage company)
STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
(unaudited)
Common stock
-------------------------------------------
Number
of shares Amount Deficiency
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Balance December 31, 1998 1,077,100 17,902 ( 17,502)
Net (loss) during development stage (17,983)
---------- ------ ----------
Balance September 30, 1999 1,077,100 17,902 (391)
============ ========= =============
INNOVATIVE SOFTWARE TECHNOLOGIES, INC.
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
(unaudited)
1. GENERAL
The financial statements have been prepared by management without audit and
should be read in conjunction with the financial statements and notes thereto
for the year 1998. The Company is still in the development stage and the results
of interim periods are not indicative of the results for the year. The
accompanying financial statements reflect, in the opinion of management, all
adjustments necessary for the fair presentation of the interim financial
statements. In the opinion of management, all such adjustments are of a normal
and recurring nature.
The Company has been in the development stage since inception. The Company's
activities have consisted of developing its plan of operations.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. The Company uses the accrual method of accounting.
B. Revenues and directly related expenses are recognized in the period when
the goods are shipped to the customers.
C. The Company considers all short term, highly liquid investments that are
readily convertible, within three months, to known amounts as cash equivalents.
The Company currently has no cash equivalents.
D. Primary Earnings Per Share amounts are based on the weighted average number
of shares outstanding at the dates of the financial statements. Fully Diluted
Earnings Per Shares shall be shown on stock options and other convertible issues
that may be exercised within ten years of the financial statement dates.
E. Depreciation: The cost of property and equipment is depreciated over the
estimated useful lives of the related assets. The cost of leasehold improvements
is depreciated (amortized) over the lesser of the length of the related assets
or the estimated lives of the assets. Depreciation is computed on the
straight-line method for reporting purposes and for tax purposes.
F. Estimates: The preparation of the financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
3. OTHER MATTERS
AMENDMENT TO ARTICLES OF INCORPORATION: The Company originally issued 1,077,000
common shares of stock, when the Company was acting as its own transfer agent.
However, the Company's new transfer agent refused to recognize the issue of
77,000 of the 1,077,000 common shares of stock, due to the fact that the
Company's articles of incorporation had not been amended to provide for an
increase in capital. On March 1, 1999, the Company amended its articles of
incorporation to authorize capital of 20,000,000 common shares. Since the filing
of this amendment was delayed, this resulted in a a difference between the
shares outstanding on December 31, 1998 as shown on the official share register
of the transfer agent and the Company's audited financial statements.
SUBSEQUENT EVENTS: On November 26, 1999, the Company effected an 8-1 forward
split of its common shares of stock, resulting in outstanding shares of
17,910,120.
PART I. FINANCIAL INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
THIS ANALYSIS CONTAINS FORWARD-LOOKING COMMENTS WHICH ARE BASED ON CURRENT
INFORMATION. ACTUAL RESULTS IN THE FUTURE MAY DIFFER MATERIALLY.
The Company is engaged in the business of providing sales of computer related
software and related services. The Company has not yet commenced operations,
but is in the process of developing its web site at www.innovative-software.net.
PART II. OTHER INFORMATION
Item 1. Legal proceedings NONE
Item 2. Changes in securities and use of proceeds NONE
Item 3. Defaults on senior securities NONE
Item 4. Submission of items to a vote NONE
Item 5. Other information NONE
Item 6.
a) Exhibits NONE
b) Reports on 8K NONE
SIGNATURES
In accordance with the requirements of the Securities and Exchange Act of 1934,
the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Innovative Software Technologies, Inc.
Dated: December 17, 1999 By: /s/ Jeffrey Volpe
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Jeffrey Volpe, President
Dated: December 17, 1999 By: /s/ Agata Gotova
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Agata Gotova, Chief Financial Officer
[TYPE]EX-27
<SEQUENCE>2
[DESCRIPTION]FINANCIAL DATA SCHEDULE
[TEXT]
[ARTICLE] 5
[MULTIPLIER] 1
[PERIOD-TYPE] 9-MOS
[FISCAL-YEAR-END] DEC-31-1999
[PERIOD-START] JAN-01-1999
[PERIOD-END] SEP-30-1999
[CASH] 0
[SECURITIES] 0
[RECEIVABLES] 0
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 1000
[PP&E] 1000
[DEPRECIATION] 0
[TOTAL-ASSETS] 1000
[CURRENT-LIABILITIES] 1000
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 2084
[OTHER-SE] (17983)
[TOTAL-LIABILITY-AND-EQUITY] 1000
[SALES] 0
[TOTAL-REVENUES] 0
[CGS] 0
[TOTAL-COSTS] 0
[OTHER-EXPENSES] 0
[LOSS-PROVISION] (391)
[INTEREST-EXPENSE] 0
[INCOME-PRETAX] (391)
[INCOME-TAX] 0
[INCOME-CONTINUING] (391)
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (391)
[EPS-BASIC] (.00)
[EPS-DILUTED] (.00)