UNITED STATES
SECURITES AND EXHCANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2003
Commission File Number: 33-22142
REDOX TECHNOLOGY CORPORATION
Delaware 55-681106
(State of Incorporation) (I.R.S. Employer
Identification No.)
3828 West Davis
Suite 308-356
Conroe, Texas 77304
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or (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 ( )
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
Common stock, as of the latest practicable date.
CLASS NUMBER OF SHARES OUTSTANDING ON:
September 30, 2003
Common Stock
Par value $0.00005 per share 66,810,879
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS OF REDOX TECHNOLOGY CORPORATION (Hereinafter
referred to as Registrant or Company)
Registrant prepared the accompanying financial statements from its own books and
records. In management's opinion, these financial statements present fairly in
all material respects Registrant's financial condition and changes therein as of
September 30, 2003, and the results of operations and cash flows for the period,
in conformity with generally accepted accounting principles.
REDOX TECHNOLOGY CORPORATION
(A Development Stage Company)
BALANCE SHEET
As of September 30, 2003 and December 31, 2002
September 30 December 31,
2003 2002
Total Assets $ -0- $ -0-
----------- ------------
LIABILITIES AND STOCKHOLDERS EQUITY
LIABILITIES
Accounts Payable $ 145,943 $ 139,045
Accrued Expenses 199,658 73,558
Due To Related Party
15,000 15,000
Note Payable To Founder 514,694 511,119
----------- ------------
Total Liabilities $ 875,295 $ 738,722
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Commitments
STOCKHOLDERS' DEFICIT
Convertible preferred stock, $.001 par, 10,000,000
shares authorized, no shares outstanding
Common stock, $ .00005 par, 100,000,000 shares
authorized, 66,810,879 and 59,395,945
shares outstanding, respectively $ 3,341 $ 3,187
Additional paid in capital 4,198,289 4,049,518
Deficit accumulated during the development stage (5,076,925) (4,791,427)
----------- ------------
Total Stockholders' Deficit (875,295) (738,722)
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Total Liabilities and stockholders deficit $ 0 $ 0
=========== ============
REDOX TECHNOLOGY CORPORATION
(A Development Stage Company)
Statement of Expenses
Three and Nine Months ended September 30, 2003, and 2002, and
Period from April 9, 1993 (Inception) Through September 30, 2003
Three Months Ended Nine Months Ended Inception
September 30, September 30, Through
2,003 2002 2003 2002 2003
------------------- -------------------- ------------
General &
administrative
- paid in cash $ 779 $74,412 $153,896 $155,703 $ 1,864,318
- paid in stock 93,000 59,499 93,000 322,573 2,896,594
Research and development - - - 49,083 115,965
Interest Expense 13,046 12,772 38,602 17,031 134,166
Depreciation - 1,859 - 5,577 53,959
Impairment Expense - - - - 11,923
Net Loss (106,825) $(148,542) $(285,498) $(549,967) $(5,076,925)
Basic and diluted
loss per common
share $0.00 $0.00 $0.00 $0.01
Weighted average
common shares
outstanding 66,810,879 62,404,172 65,351,635 61,217,791
REDOX TECHNOLOGY CORPORATION
(A Development Stage Company)
Statement of Cash Flows
Nine Months Ended September 30, 2003 and 2002 and
Period from April 9, 1993 (Inception) Through September 30, 2003
Inception
Through
2003 2002 2003
----------- ----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $ (285,498) $ (549,967) $ (5,076,925)
Adjustments to reconcile net loss
to cash used by operating activities: 3,000 - 125,500
Stock issued for lawsuit - - 1,500
Stock issued for patent - - 2,769,594
Stock issued for services 90,000 322,573 53,959
Depreciation - 5,577 11,923
Impairment - - -
Changes in: - - -
Deposits - - -
Accounts Payable 6,899 23,143 145,944
Accrued expenses 169,849 60,780 309,162
NET CASH USED IN OPERATING ACTIVITIES (15,750) (137,894) (1,659,343)
----------- ----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES - - (65,882)
Purchase of fixed assets
CASH FLOWS FROM FINANCING ACTIVITIES
Sales of common stock - - 120,350
Contributions to capital by founder 12,175 127,611 1,586,300
Advances by related party 3,575 10,000 18,575
NET CASH PROVIDED BY FINANCING ACTIVITIES 15,750 137,611 1,725,225
----------- ----------- ------------
NET CHANGE IN CASH - (283) -
CASH AT BEGINNING OF PERIOD - 305 -
CASH AT END OF PERIOD $ - 22 -
NONCASH ACTIVITIES:
Shares issued for accrued salary 43,749
Paid in Capital converted
into note to founder $1,591,831
Note to founder exchanged (1,146,467)
REDOX TECHNOLOGY CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
(Uuaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited interim financial statements of Redox Technology
Corporation ("Redox"), have been prepared in accordance with accounting
principles generally accepted in the United Sates and the rules of the
Securities and Exchange Commission ("SEC"), and should be read in conjunction
with the audited financial statements and notes thereto contained in Redox's
Annual Report filed with the SEC on Form 10-KSB. In the opinion of management,
all adjustments, consisting of normal recurring adjustments, necessary for a
fair presentation of financial position and the results of operations for the
interim periods presented have been reflected herein. The results of operations
for interim are not necessarily indicative of the results to be expected for the
full year. Notes to the financial statements which would substantially duplicate
the disclosure contained in the audited financial statements for 2002 as
reported in the 10-KSB have been omitted.
NOTE 2 - COMMON STOCK
In the nine months ending September 30, 2003, Redox issued 1,800,000 shares of
common stock to three consultants for services valued at $90,000.
In the nine months ending September 30, 2003, Redox issued 100,000 shares of
common stock valued at $3,000 to settle a lawsuit.
In the nine months ending September 30, 2003, Redox issued 1,166,640 shares of
common stock for $43,749 of accrued salary.
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS
As previously reported this corporation is in a development stage and has not
yet conducted any business so as to become an income producing entity. We
continue to utilize capital borrowed from our principal shareholder.
RESULTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO
NINE MONTHS ENDED SEPTEMBER 30, 2002
LIQUIDITY AND CAPITAL RESOURCES
There was no revenue from sales and ancillary income for the quarters ended
September 30, 2003 and September 30, 2002. The Company is a development stage of
business.
Operating expense were $549,967 six months ended September 30, 2002 and they
were $285,498 for the six months ended September 30, 2003. Operating expenses
primarily include General and Administrative costs.
General and administrative expenses for the nine months ended September 30, 2003
were $246,896 and were $478,276 for the nine months ended September 30, 2002.
Cash flows financing activities for the third quarter of 2003 is totaled $15,750
from $137,611 for the corresponding period of 2002. This decrease is due to the
lack of contributions made during the first, second and third quarters of 2003
by the Company's founder, Richard Szymanski, who, for family medical reasons,
has been unable to fulfill his represented obligation to provide necessary
financing through 2006.
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS NONE
ITEM 2. CHANGES IN SECURITIES NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES NONE
ITEM 4. SUBMISSION OF MATTERS TO VOTE
OF SECURITY HOLDERS NONE
ITEM 5. OTHER INFORMATION NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) 31.1 Certification pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 96 of the Sarbanes-Oxley Act of 2002
Chief Officer (filed herewith).
31.2 Certification pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 306 of the Sarbanes--Oxley Act of 2002--
Chief Financial Officer (filed herewith).
32.1 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed
herewith)
32.2 Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed
herewith)
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ReDOX TECHNOLOGY CORPORATION
(Registrant)
DATE: November 19, 2003 /S/ RICHARD A. SZYMANSKI
-----------------------
Richard A. Szymanski
President/Director