U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File No. 2-76219-NY
New Environmental Technologies Corporation
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(Name of Small Business Issuer in its Charter)
NEVADA 11-2609717
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(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
9005 Cobble Canyon Lane
Sandy, Utah 84093
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(Address of Principal Executive Offices)
Issuer's Telephone Number: (801) 942-0555
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Sections 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.
(1) Yes X No (2) Yes X No
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APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the Registrant's classes
of common stock, as of the latest practicable date:
June 30, 2002
2,620,326
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
The Financial Statements of the Registrant required to be filed with
this 10-QSB Quarterly Report were prepared by management, and commence on the
following page, together with Related Notes. In the opinion of management,
the Financial Statements fairly present the financial condition of the
Registrant.
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
FINANCIAL STATEMENTS
June 30, 2002 and December 31, 2001
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Balance Sheets
ASSETS
June 30, December 31,
2002 2001
(Unaudited)
CURRENT ASSETS
Cash $ - $ -
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TOTAL ASSETS $ - $ -
========= ============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 36,807 $ 34,591
Accounts payable - related party 21,584 18,992
Accrued interest payable - related party 3,119 2,308
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Total Liabilities 61,510 55,891
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STOCKHOLDERS' EQUITY (DEFICIT)
Common stock authorized 100,000,000 shares at
$0.001 par value; 2,620,326 shares issued and outstanding 2,620
2,620
Additional paid-in capital 150,692 150,692
Deficit accumulated during the development
stage (214,822) (209,203)
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Total Stockholders' Equity (Deficit) (61,510) (55,891)
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TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ - $ -
========= =========
The accompanying notes are an integral part of these financial statements.
2
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Operations
(Unaudited)
>From
Inception on
For the For the January 7,
Three Months Ended Six Months Ended 1982 Through
June 30, June 30, June 30,
2002 2001 2002 2001 2002
REVENUES $ - $ - $ - $ - $ -
EXPENSES 1,586 661 5,619 8,892 214,822
NET LOSS $ (1,586) $ (661) $ (5,619) $(8,892) $(214,822)
LOSS PER SHARE
OF COMMON STOCK $ (0.00) $ (0.00) $ (0.00) $ (0.00)
WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING
OUTSTANDING 2,620,326 2,620,326 2,620,326 2,620,326
The accompanying notes are an integral part of these financial statements.
3
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
Balance, December 31, 2000 2,620,326 $2,620 $150,692 $(189,742)
Net loss for the year
ended December 31, 2001 - - - (19,461)
Balance, December 31, 2001 2,620,326 2,620 150,692 (209,203)
Net loss for the six
months ended June 30, 2002
(unaudited) - - - (5,619)
Balance, June 30, 2002
(unaudited) 2,620,326 $ 2,620 $ 150,692 $(214,822)
The accompanying notes are an integral part of these financial statements.
4
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
>From
Inception on
For the January 7,
Six Months Ended 1982 Through
June 30, June 30,
2002 2001 2002
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss $ (5,619) $ (8,892) $(214,822)
Adjustments to reconcile net loss to
net cash used by operating activities:
Stock issued for services - - 2,538
Changes in operating assets and
liabilities:
Increase (decrease) in accounts payable 2,216
Increase (decrease) in accounts payable
- related party and accrued interest 3,403 8,882 61,511
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Net Cash Used by Operating
Activities - (10) (150,773)
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CASH FLOWS FROM INVESTING
ACTIVITIES: - - -
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Issuance of common stock for cash - - 150,773
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Net Cash Provided by Financing
Activities - - 150,773
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NET INCREASE (DECREASE)
IN CASH - (10) -
CASH AT BEGINNING OF PERIOD - 10 -
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CASH AT END OF PERIOD $ - $ - $ -
========= ========== =========
CASH PAID FOR:
Interest $ - $ - $ -
Income taxes $ - $ - $ -
SCHEDULE OF NON CASH FINANCING
ACTIVITIES
Stock issued for services $ - $ - $ 2,538
The accompanying notes are an integral part of these financial statements.
5
NEW ENVIRONMENTAL TECHNOLOGIES CORPORATION
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2002 and December 31, 2000
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION
The accompanying unaudited condensed financial statements have been
prepared by the Company 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 accounting principles generally accepted in the United
States of America have been condensed or omitted in accordance with such
rules and regulations. The information furnished in the interim
condensed financial statements include normal recurring adjustments and
reflects all adjustments, which, in the opinion of management, are
necessary for a fair presentation of such financial statements.
Although management believes the disclosures and information presented
are adequate to make the information not misleading, it is suggested
that these interim condensed financial statements be read in conjunction
with the Company's most recent audited financial statements and notes
thereto included in its February 1, 2002 Annual Report on Form 10-KSB.
Operating results for the six months ended June 30, 2002 are not
necessarily indicative of the results that may be expected for the year
ending December 31, 2002.
NOTE 2 - GOING CONCERN
The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern which contemplates
the realization of assets and liquidation of liabilities in the normal
course of business. The Company has not yet established an ongoing
source of revenues sufficient to cover its operating costs and allow it
to continue as a going concern. The ability of the Company to continue
as a going concern is dependent on the Company obtaining adequate
capital to fund operating losses until it becomes profitable. If the
Company is unable to obtain adequate capital, it could be forced to
cease operations.
In order to continue as a going concern, develop a reliable source of
revenues, and achieve a profitable level of operations the Company will
need, among other things, additional capital resources. Management's
plans to continue as a going concern include raising additional capital
through sales of common stock. However, management cannot provide any
assurances that the Company will be successful in accomplishing any of
its plans.
The ability of the Company to continue as a going concern is dependent
upon its ability to successfully accomplish the plans described in the
preceding paragraph and eventually secure other sources of financing and
attain profitable operations. The accompanying financial statements do
not include any adjustments that might be necessary if the Company is
unable to continue as a going concern.
6
Item 2. Management's Discussion and Analysis or Plan of Operation.
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Plan of Operation.
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The Company has not engaged in any material operations since the
calendar year ended December 31, 1985, or during the quarterly period ended
June 30, 2002.
The Company's plan of operation for the next 12 months is to:(i)
consider guidelines of industries in which the Company may have an interest;
(ii) adopt a business plan regarding engaging in business in any selected
industry; and (iii) to commence such operations through funding and/or the
acquisition of a "going concern" engaged in any industry selected.
During the next 12 months, the Company's only foreseeable cash
requirements will relate to maintaining the Company in good standing or the
payment of expenses associated with reviewing or investigating any potential
industries as a business venture, which the Company expects to pay from its
cash resources or loans from makers of management.
Results of Operations.
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During the quarterly period ended June 30, 2002, the Company
had no business operations. During this period, the Company received total
revenues of $0 and had a net loss of $1,586, as compared to the quarterly
period ended June 30, 2001, when the Company received total revenues of
$0 and had a net loss of $661.
For the six months ended June 30, 2002, the Company received total
revenues of $0 and had a net loss of $5,619, as compared to the six months
ended June 30, 2001, when the Company received total revenues of $0 and had a
net loss of $8,892.
Liquidity.
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At June 30, 2002, the Company had $0 in current assets, with
total current liabilities of $61,510. Total stockholders' equity was
($61,510).
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
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None; not applicable.
Item 2. Changes in Securities.
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None; not applicable.
Item 3. Defaults Upon Senior Securities.
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None; not applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
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None; not applicable.
Item 5. Other Information.
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None; not applicable.
Item 6. Exhibits and Reports on Form 8-K.
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(a) Exhibits.
None.
(b) Reports on Form 8-K.
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 there unto duly authorized.
New Environmental Technologies Corporation
Date: 7/15/02 By/s/David S. Merrell
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David C. Merrell
Director and President
Date: 7/15/02 By/S/Corie Merrell
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Corie Merrell
Secretary and Treasurer