FORM 10 QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] Quarterly report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 2002
Or
[ ] Transition report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period____________to_______________
Commission file number 0-27175
ADVANCE TECHNOLOGIES, INC.
(Exact name or registrant as specified in its charter)
Nevada 95-4755369
(State or other jurisdiction (I.R.S. Employer
Incorporation or organization) Identification No.)
716 Yarmouth Rd Suite 215
Palos Verdes Estates, CA 90274
(Address of principal executive offices)
Registrant's telephone number, including area code: (310) 265-7776
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 that the registrant was Required to file
such reports), and (2) has shorter period been subject to Such filing
requirements for the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO ISSUES INVOLVED IN BANKRUPTCY.
Indicate by check whether the registrant has filed all documents And reports
required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities Under a plan confirmed by a
court.
Yes [ ] 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.
As of June 30, 2002, approximately 12,446,467 shares of the Registrant's Common
Stock, $0.001 par value were outstanding.
As of June 30, 2002, approximately 43,630,557 shares of the Registrant's Class A
Preferred Non-voting Stock par value $0.001 were outstanding.
ITEM 1. FINANCIAL STATEMENTS
ADVANCE TECHNOLOGIES, INC.
(A Development Stage Company)
Consolidated Financial Statements
June 30, 2002
Chisholm & Associates, CPA
PO Box 540216
North Salt Lake, UT 84054
Tel: (801) 292-8756
ADVANCE TECHNOLOGIES, INC.
(a Development Stage Company)
Consolidated Balance Sheets
ASSETS
June 30, September 30,
2002 2001
-----------------------------
(Unaudited)
Current Assets
Cash $ 103 $ 3,515
-----------------------------
Total Current Assets 103 3,515
-----------------------------
Property & Equipment, Net 21,402 26,835
-----------------------------
Total Assets $ 21,505 $ 30,350
=============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accrued Interest $ 20,702 $ 13,007
Note Payable - Officer 40,300 28,300
Advance Royalties 25,000 25,000
-----------------------------
Total Current Liabilities 86,002 66,307
-----------------------------
Long Term Liabilities
Line of Credit 85,500 85,500
-----------------------------
Total Long Term Liabilities 85,500 85,500
-----------------------------
Total Liabilities 171,502 151,807
-----------------------------
Stockholders' Equity
Preferred Stock, Series A Authorized 100,000,000 Shares of $.001
Par Value, Issued and Outstanding 43,630,557 and 50,204,102
shares, respectively 43,631 50,204
Common Stock, Authorized 100,000,000 Shares of $.001 Par Value,
Issued and Outstanding 12,446,467 and 2,572,923 shares, respectively 12,446 2,573
Additional Paid in Capital 449,796 446,496
Deficit Accumulated During the Development Stage (655,870) (620,730)
-----------------------------
Total Stockholders' Equity (149,997) (121,457)
-----------------------------
Total Liabilities and Stockholders' Equity $ 21,505 $ 30,350
=============================
ADVANCE TECHNOLOGIES, INC.
(a Development Stage Company)
Consolidated Statements of Operations
(Unaudited)
For the three For the nine From inception on
months ended months ended October 1, 1985
June 30, June 30, thru June 30,
------------------------ ---------------------- 2002
2002 2001 2002 2001
----------- ---------- ---------- ---------- ---------------
Revenues $ 5,563 $ - $ 23,010 $ 3,000 $ 53,995
Operating Expenses
Research & Development - - - - 72,750
General & Administrative 8,533 4,420 35,855 63,750 639,114
----------- ---------- ---------- ---------- ---------------
Total Operating Expenses 8,533 4,420 35,855 63,750 711,864
----------- ---------- ---------- ---------- ---------------
Operating Income (Loss) (2,970) (4,420) (12,845) (60,750) (657,869)
----------- ---------- ---------- ---------- ---------------
Other Income (Expense)
Miscellaneous Income - - - - 98,000
Interest Expense (5,535) - (15,695) - (28,702)
----------- ---------- ---------- ---------- ---------------
Total Other Income (Expense) (5,535) - (15,695) - 69,298
----------- ---------- ---------- ---------- ---------------
Net Income (Loss) $ (8,505) $ (4,420) $ (28,540) $ (60,750) $ (588,571)
=========== ========== ========== ========== ===============
Net Income (Loss) Per Share $ (0.00) $ (0.00) $ (0.00) $ (0.02) $ (0.72)
=========== ========== ========== ========== ===============
Weighted Average Shares Outstanding 12,396,535 2,572,923 8,649,842 2,572,923 815,812
----------- ---------- ---------- ---------- ---------------
Advance Technologies, Inc.
(a Development Stage Company)
Consolidated Statements of Cash Flows
(Unaudited)
From inception
inception on
For the nine months ended October 1, 1985
June 30, thru
----------------------------------------- June 30,
2002
2002 2001
----------------------------------------------------------
Cash Flows from Operating Activities
Net Income (Loss) $ (28,540) $ (60,750) $ (588,571)
Adjustments to Reconcile Net Loss to Net Cash
Provided by Operations:
Depreciation & Amortization 5,433 7,000 27,098
Stock Issued for Services - - 399,775
Organization Costs - - 11,331
Decrease in Prepaids - - 14,680
Change in Assets and Liabilities
Increase in Deferred Income - - -
Increase (Decrease) in Accounts Payable & Accrued Expenses 7,695 (37,107) 20,704
----------------------------------------------------------
Net Cash Provided(Used) by Operating Activities (15,412) (90,857) (114,983)
----------------------------------------------------------
Cash Flows from Investing Activities
Investment in Subsidiary - - 286
Purchase of Equipment - (10,000) (36,000)
----------------------------------------------------------
Net Cash Provided (Used) by Investing Activities - (10,000) (35,714)
----------------------------------------------------------
Cash Flows from Financing Activities
Proceeds from Joint Venture - 98,000 -
Payments for Officer Loan - (10,000) (33,200)
Proceeds from Officer Loan 12,000 - 73,500
Proceeds from Line of Credit - 11,265 85,500
Proceeds from Issuance of Stock - - 25,000
----------------------------------------------------------
Net Cash Provided(Used) by Financing Activities 12,000 99,265 150,800
----------------------------------------------------------
Increase (Decrease) in Cash (3,412) (1,592) 103
----------------------------------------------------------
Cash and Cash Equivalents at Beginning of Period 3,515 1,646 -
----------------------------------------------------------
Cash and Cash Equivalents at End of Period $ 103 $ 54 $ 103
==========================================================
Cash Paid For:
Interest $ 8,000 $ - $ 8,000
==========================================================
Income Taxes $ - $ - $ -
==========================================================
ADVANCE TECHNOLOGIES, INC.
(A Development Stage Company)
Notes to the Consolidated Financial Statements
June 30, 2002
GENERAL
Advance Technologies, Inc.(the Company) has elected to omit substantially all
footnotes to the financial statements for the three and nine months ended June
30, 2002 since there have been no material changes (other than indicated in
other footnotes) to the information previously reported by the Company in their
Annual Report filed on Form 10-KSB for the fiscal year ended September 30, 2001.
UNAUDITED INFORMATION
The information furnished herein was taken from the books and records of the
Company without audit. However, such information reflects all adjustments which
are, in the opinion of management, necessary to properly reflect the results of
the interim period presented. The information presented is not necessarily
indicative of the results from operations expected for the full fiscal year.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS AND PLAN OF OPERATIONS
Advance Technologies Inc. ("AVTX") is a developer of infrared (IR) Enhanced
Vision technology and commercial solutions. The Company has a worldwide license
from Hughes Aircraft Company, Los Angeles, California, which includes a patent
for an infrared Enhanced Vision System. Advance Technologies licenses and
develops applied infrared enhanced vision solutions for use in diverse
industries including aviation, recreational vehicles, commercial trucking,
marine, security and fire fighting applications.
ENHANCED VISION SYSTEM ACTIVITIES
AVTX's Enhance Vision System, our first project; has entered production
following its certification last year from the Federal Aviation Administration.
Advance Technologies benefits through our license agreement with Kollsman Inc.
whereby AVTX achieves royalties that increase in time. Initial EVS systems have
been delivered to Gulfstream Aerospace Company, and Gulfstream, in turn, has
completed initial deliveries to its customers. As of this filing, Kollsman has
not yet provided AVTX an official schedule of its planned EVS production. AVTX
will provide guidance based upon production commitments and delivery schedules
between Gulfstream Aerospace Company and Kollsman Inc. as this information
becomes available.
Last quarter, AVTX and Kollsman had discussed collaboration on an Advanced EVS
incorporating AVTX's proprietary technology, which is not included as or a part
of the current production EVS. A process was initiated in which Kollsman would
provide AVTX with certain hardware items to support AVTX's development
activities for the Advanced EVS. As of June 30, this program has not progressed
further.
AVTX and Telesis Technologies signed an EVS agreement, which designates Telesis
Technologies as our EVS representative for Far East opportunities. This
agreement gives Telesis the right to present limited information on EVS and on
the benefits that EVS can provide to civil aviation.
Advance Technologies, Inc. also continues its development phase with several
projects moving forward at a pace dictated by market conditions, technical
innovations and market factors.
NITEAGLETM
Telesis Technologies has provided to AVTX a second preproduction NITEAGLETM
System, Advance Technologies' proprietary infrared system for recreational
vehicles, for our market evaluation and market development activities.
Demonstrations and marketing presentations have been conducted in accordance
with our plan. The evaluation effort has continued with many discussions with
potential partners.
SPECTRUM 9000, MEDICAL EQUIPMENT
AVTX continues to provide export license support under a time & service
reimbursement agreement with Telesis Technologies. Telesis has announced no
plans for introduction of the Spectrum 9000 into the US market.
HONEYWELL TECHNOLOGY LICENSE
Honeywell International has provided AVTX initial terms for a "field
application" and/or "market use" of their Micro-bolometer technology. The terms
and conditions are under evaluation by AVTX and our business partner Telesis
Technologies.
OTHER IR ACTIVITIES
Advance Technologies Inc. continues development activities on new Infrared
systems for commercial markets. These projects cannot be forecast with any
degree of certainty, and all strategic partnerships or business arrangements
remain confidential until such time as formal announcements are appropriate
without compromising the development plan and/or the application marketplace.
CAPITAL RESOURCES
No commitment for capital resources has been made during this reporting period.
FINANCIAL ANALYSIS
The results on the operation represent projects of likely future events that
cannot be guaranteed. Therefore, the financial analysis does not include
projects, and no quantitative assessment has been provided based upon the future
discussion of potential events in Section 3.
The Company has received revenue pursuant to an agent agreement with, that
allows the Company to receive fixed monthly service fees, and to bill for
additional services provided. The Company records revenues when the services are
performed.
The Company is entitled to reimbursement for various expenses associated with
the development of its night vision technology pursuant to the joint venture
agreement with Telesis Technologies. These reimbursements are recorded as
miscellaneous income when received.
No material changes have been provided; therefore impact of unforeseeable events
cannot be assessed.
Present financial plans are adequate to meet our cash flow needs with our
current project schedule.
ITEM 6. EXHIBITS
99.1 Certification pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
SIGNATURES
Pursuant to the requirement 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: August 13, 2002 Advance Technologies, Inc.
(Registrant)
By: /s/ Gary E. Ball
Gary E. Ball
President and Director