<DOCUMENT>
<TYPE>10QSB
<SEQUENCE>1
<FILENAME>q12004.txt
<DESCRIPTION>FORM 10-QSB FOR QUARTER ENDED MARCH 31, 2004
<TEXT>
SECURITIES AND EXCHANGE 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: Commission File Number
March 31, 2004 0 - 9574
--------------------------
UNITED SYSTEMS TECHNOLOGY, INC.
Iowa 42-1102759
(State of Incorporation) (I.R.S. Employer
Identification Number)
1850 Crown Road, Suite 1109
Dallas, Texas 75234
(972) 402-8600
(Address of principal executive offices and telephone number)
--------------------------
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 ______
As of March 31, 2004 there were 56,178,663 shares of the registrant's
Common Stock, par value $0.10 per share, outstanding.
<PAGE>
UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES
INDEX TO FORM 10-QSB
PART I - FINANCIAL INFORMATION (UNAUDITED) PAGE
------------------------------------------ ----
Item 1. Consolidated Financial Statements
Balance Sheets 3
Statements of Income 4
Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis or
Plan of Operation 9
Item 3. Controls and Procedures 11
PART II - OTHER INFORMATION 12
---------------------------
---------------------------------------------------------
These consolidated financial statements should be read in conjunction with
the notes to the consolidated financial statements which are included in the
annual report on Form 10-KSB for the fiscal year ended December 31, 2003.
2
<PAGE>
United Systems Technology, Inc. and Subsidiary
Consolidated Balance Sheets
<TABLE>
<S> <C> <C>
March 31,
2004 December 31,
(Unaudited) 2003
=========== ===========
Current Assets
Cash and cash equivalents $ 1,562,318 $ 2,608,485
Trade accounts receivable, less allowance
for doubtful accounts of $34,500 at
March 31, 2004 and December 31, 2003 321,869 1,047,206
--------- ---------
Total current assets 1,884,187 3,655,691
--------- ---------
Property and equipment, net 200,627 209,594
Goodwill, net 483,842 483,842
Purchased software, net 523,766 580,038
Deposits and other 17,940 22,914
--------- ---------
1,226,175 1,296,388
--------- ---------
Total assets $ 3,110,362 $ 4,952,079
========= =========
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable $ 55,415 $ 32,721
Accrued payroll 78,221 198,435
Other accrued expenses 47,712 164,156
Deferred revenue 1,342,597 1,553,563
--------- ---------
Total current liabilities 1,523,945 1,948,875
Commitments and contingencies - -
Stockholders' Equity
Preferred stock, convertible, voting,
cumulative, par value $.10 per share;
authorized 5,000,000 shares; issued and
outstanding, 500,000 shares of Series B
and 300,000 shares of Series E, aggregate
liquidating preference of $800,000
($1.00 per share)at December 31, 2003 - 80,000
Common stock, par value $.10 per share;
authorized 100,000,000 shares; issued
and outstanding 56,178,663 at
March 31, 2004 and December 31, 2003 5,617,866 5,617,866
Additional paid-in capital 2,105,554 2,825,554
Accumulated deficit (6,457,644) (5,873,928)
Currency translation adjustments 320,641 353,712
--------- ---------
Total stockholders' equity 1,586,417 3,003,204
--------- ---------
Total liabilities and stockholders' equity $ 3,110,362 $ 4,952,079
========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
United Systems Technology, Inc. and Subsidiary
Consolidated Statements of Income
(Unaudited)
<TABLE>
<S> <C> <C>
Three Months Ended
March 31,
2004 2003
=========== ===========
Revenue
Software packages $ 154,338 $ 107,234
Installation, training and customer support 108,402 167,165
Maintenance 558,699 546,622
Equipment and supplies sales 140,923 94,858
Other 565 172
--------- ---------
962,927 916,051
--------- ---------
Costs and expenses
Salaries 478,346 479,685
Other general, administrative and selling
expense 190,798 209,960
Depreciation and amortization 69,127 59,390
Commissions 17,021 13,435
Cost of equipment and supplies sold 97,860 56,431
--------- ---------
853,152 818,901
--------- ---------
Income from operations 109,775 97,150
--------- ---------
Nonoperating income
Interest income 6,509 11,920
--------- ---------
6,509 11,920
--------- ---------
Net income 116,284 109,070
Preferred stock dividend requirements - (13,810)
--------- ---------
Income available for common stockholders $ 116,284 $ 95,260
========= =========
Net income per common share
- basic and diluted $ NIL $ NIL
========= =========
Weighted average number of common
shares outstanding
Basic 56,178,633 56,178,633
========== ==========
Diluted 59,857,234 58,324,496
========== ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
United Systems Technology, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Three Months Ended March 31,
(Unaudited)
<TABLE>
<S> <C> <C>
2004 2003
=========== ===========
Cash flows from operating activities:
Net income $ 116,284 $ 109,070
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 69,127 59,390
Change in operating assets and liabilities,
net of effect of acquisitions:
Accounts receivable 714,725 761,129
Deposits and other 4,928 (20,525)
Accounts payable 20,460 (7,508)
Accrued expenses (234,383) (341,324)
Deferred revenue (200,135) (238,541)
--------- ---------
Net cash provided by operating activities 491,006 321,691
--------- ---------
Cash flows from investing activities:
Property and equipment additions (9,625) (32,451)
--------- ---------
Net cash used in investing activities (9,625) (32,451)
--------- ---------
Cash flows from financing activities:
Redemption of preferred stock (1,500,000) -
--------- ---------
Net cash used in investing activities (1,500,000) -
--------- ---------
Effect of exchange rate changes on cash (27,548) 105,226
--------- ---------
Increase (decrease) in cash and cash
equivalents (1,046,167) 394,466
Cash and cash equivalents, beginning of period 2,608,485 1,800,798
--------- ---------
Cash and cash equivalents, end of period $ 1,562,318 $ 2,195,264
========= =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES
Notes To Consolidated Financial Statements
(Unaudited)
Note 1. Basis of Presentation:
In the opinion of management, the accompanying unaudited consolidated
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the consolidated financial position of
United Systems Technology, Inc. (the "Company") as of March 31, 2004 and the
results of operations and cash flows of the Company for the three months ended
March 31, 2004 and 2003. The consolidated results of operations for the three
months ended March 31, 2004 are not necessarily indicative of the results to be
expected for the full year.
The Company recognizes software revenue in accordance with SOP 97-2,
Software Revenue Recognition, as amended by SOP 98-9, Modification of SOP 97-2,
Software Revenue Recognition, with Respect to Certain Transactions. Under these
guidelines, the Company recognizes revenue on transactions where persuasive
evidence of an arrangement exists, title has transferred, product payment is not
contingent upon performance of installation or service obligations, the price is
fixed or determinable and payment is reasonably assured. Revenue from
installation, training and customer support is deferred and recognized in the
period in which the services are provided. Revenue from contracts to maintain
computer software products is deferred and recognized over the term of the
contracts. The Company does not have revenue arrangements with multiple
deliverables.
Note 2. Preferred Stock:
On January 27, 2004, the Company redeemed the outstanding Series B and
Series E preferred stock, including all cumulative undeclared and unpaid
dividends, for a total price of $1,500,000. The 500,000 shares of Series B
preferred stock were issued in October 1988 and had a par value of $1.00 per
share. As of January 27, 2004 the Series B preferred stock had cumulative
undeclared and unpaid dividends of $536,390. The 300,000 shares of Series E
preferred stock were issued in June 1991 and had a par value of $1.00 per share.
As of January 27, 2004 the Series E preferred stock had cumulative undeclared
and unpaid dividends of $265,290. Both series of preferred stock accrued
dividends at a rate of $.07 per share per annum.
6
<PAGE>
UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES
Notes To Consolidated Financial Statements
(Unaudited)
Note 3. Earnings Per Share:
The following table sets forth the computation of basic and diluted
earnings per share:
<TABLE>
<S> <C> <C>
Three Months Ended
March 31,
2004 2003
---- ----
Income allocable to
common stockholders $ 116,284 $ 95,260
Weighted average
shares outstanding - basic 56,178,663 56,178,663
Effect of dilutive stock
options and warrants 3,678,571 2,145,833
---------- ----------
Weighted average shares
outstanding - diluted 59,857,234 58,324,496
========== ==========
Income per common
share - basic $ NIL $ NIL
=== ===
Income per common
share - diluted $ NIL $ NIL
=== ===
</TABLE>
In 2003, the assumed conversion of the Company's convertible preferred
stock was excluded from the computation of diluted income per share because its
effect would be antidilutive. In 2004 and 2003, warrants to purchase 75,000
shares of the Company's common stock were excluded from the computation of
diluted income per share because the effect would be antidilutive
Note 4. Comprehensive Income:
Comprehensive income is as follows:
<TABLE>
<S> <C> <C>
Three Months Ended
March 31,
2004 2003
---- ----
Net income $116,284 $109,070
Currency translation
adjustments (33,071) 105,226
------- -------
Comprehensive income $ 83,213 $214,296
------- -------
</TABLE>
7
<PAGE>
UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES
Notes To Consolidated Financial Statements
(Unaudited)
Note 5. Stock-Based Compensation
The Company has two stock-based employee compensation plans and applies APB
Opinion 25, Accounting for Stock Issued to Employees - Related Interpretations
in accounting for these plans. The following table illustrates the effect on net
income and earnings per share if the Company had applied the fair value
recognition provisions for FASB Statement 123, Accounting for Stock-Based
Compensation, using the assumptions described below.
<TABLE>
<S> <C> <C>
Three Months Ended
March 31,
2004 2003
---- ----
Income allocable to
common stockholders $116,284 $ 95,260
Deduct: Total stock-based
employee compensation
expense determined
under fair market value
based method, net of
related tax effects 30,950 30,950
------ ------
Pro forma net income $ 85,334 $ 64,310
====== ======
Earnings per share:
Basic and diluted - as reported $ NIL $ NIL
Basic and diluted - pro forma $ NIL $ NIL
</TABLE>
Note 6. Income Taxes
The Company has not provided for income taxes during the three months ended
March 31, 2004 due to the utilization of available loss carryforwards that have
offset any taxable income generated. Sufficient uncertainty exists with respect
to the utilization of our deferred tax assets and we have provided a full
valuation allowance on our net deferred tax assets. At December 31, 2003, the
Company has United States net operating loss carryforwards of approximately
$858,000 and Canadian net operating loss carryforwards of approximately
$350,000. These carryforwards expire from 2008 through 2011.
8
<PAGE>
UNITED SYSTEMS TECHNOLOGY, INC. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operation
Results of Operations
The Company derives its revenue from the licensing of its software
packages, installation, training and custom modifications, maintenance
agreements and equipment sales and commissions. Results of operations for the
three months ended March 31, 2004 include revenues of $962,927 and net income of
$116,284 as compared to revenues of $916,051 and net income of $109,070 for the
same period in 2003.
The Company has completed the development of several new software products,
which enhances the competitiveness of its comprehensive software offering. These
products are marketed under the asyst(R) brand name, were developed as Windows
applications to "look and work like Microsoft Office", and include a Fund
Accounting product line, a Utility Billing product line, a General Government
product line and a Public Safety product line. The Fund Accounting product line
includes General Ledger, Budget XLence, Report XLence, Accounts Payable,
Accounts Receivable, Purchase Orders, Cash Receipts, Payroll and Fixed Assets
modules. The Utility Billing product line includes Utility Billing, Service
Orders, Meter Reader Interface, Bank Drafts and Budget Billing modules. The
General Government product line includes Master and Land Directories, Business
and Animal Licenses, Code Enforcement, Building Permits and Property Tax
modules. The Public Safety product line includes Master Name Index, Calls for
Service, Offense Reports, Citations, State Interface, Computer Aided Dispatch,
Jail Management, Alarm Billing and UCR Reports modules. The Company is currently
developing additional modules for its asyst(R) product line to add to its
existing asyst(R) offerings including additions to its asyst(R) Dealer
Management product line. The asyst(R) Dealer Management product line will
includes the core asyst(R) accounting modules and will have the additional
functionality of point of sale, inventory, repair orders, finance and insurance
and fiche interface.
Three Month Period Ended March 31, 2004
The Company's total revenue increased from $916,051 during the first
quarter in 2003 to $962,927 in 2004. Software license fees increased 44% from
$107,234 in 2003 to $154,338 in 2004. This increase resulted from higher sales
of its asyst(R) product line to new accounts in 2004. Installation and training
revenue, which does not necessarily change in direct correlation with the
licensing of the Company's software products, decreased 35% from $167,165 in
2003 to $108,402 in 2004 due, in part, to a decrease in services provided to its
Canadian customer base in 2004. Maintenance revenue remained relatively constant
in 2004 at $558,699 as compared to $546,622 for the same period in 2003.
Maintenance revenue from the asyst(R) product line increased in 2004 but was
offset by a decrease in revenue from several older product lines. Equipment and
supplies sales increased 49% from $94,858 in 2003 to $140,923 in 2004 as a
result of higher volume of equipment sold in conjunction with software license
fees and increase supply sales to customers.
9
<PAGE>
Total costs and expenses increased 4% from $818,901 in 2003 to $853,152 in
2004. Salary expense remained constant from 2003 to 2004. Other general,
administrative and selling expenses decreased 9% from $209,960 in 2003 to
$190,798 in 2004, due in part, to a decrease in telephone related expense in
2004 as compared to a higher than normal amount in 2003 while the company
transitioned to a new system. Depreciation and amortization expense increased
16% from $59,390 in 2003 to $69,127 in 2004 due to increased expense related to
the purchase of equipment. Commission expense increased 27% from $13,435 in 2003
to $17,021 in 2004 due to an increase in revenue from which commissions are
earned. Cost of equipment and supplies sold increased 73% from $56,431 in 2003
to $97,860 in 2004 as a result of an increase in the volume of computer
equipment and supplies sold.
Liquidity and Capital Resources
The Company had net cash provided from operating activities of $491,006
during the three months ended March 31, 2004, as compared to net cash provided
by operations of $321,691 for the same period in 2003. Net cash of $9,625 was
utilized in 2004 for capital acquisitions. On January 27, 2004, the Company
redeemed the outstanding Series B and Series E preferred stock, including all
accrued and unpaid dividends, for a total price of $1,500,000
Management believes that its ability to generate positive cash flows from
operations, in addition to its existing cash balances, will be adequate to meet
its working capital requirements in the next 12 months.
Forward-Looking Statements
This report contains forward-looking statements, other than historical
facts, which reflect the view of Company's management with respect to future
events. Such forward-looking statements are based on assumptions made by and
information currently available to the Company's management. Although management
believes that the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove to have
been correct. Important factors that could cause actual results to differ
materially from such expectations include, without limitation, the ability of
the Company i) to generate levels of revenue and adequate cash flows from its
operations to support and maintain its current cost structure and ii) to develop
and deliver products that are competitive, accepted by its markets and are not
rendered obsolete by changing technology. The forward-looking statements
contained herein reflect the current views of the Company's management with
respect to future events and are subject to these factors and other risks,
uncertainties and assumptions relating to the operations, results of operations
and financial position of the Company. The Company assumes no obligation to
update the forward-looking statements or to update the reasons actual results
could differ from those contemplated by such forward-looking statements.
10
<PAGE>
Item 3. Controls and Procedures
As of the end of the period covered by this report, the Company carried out
an evaluation, under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the design and operation of the Company's
disclosure controls and procedures pursuant to Exchange Act Rule 13a-14. Based
upon that evaluation, the Company's Chief Executive Officer and Chief Financial
Officer have concluded that the Company's disclosure controls and procedures are
effective in timely alerting them to material information relating to the
Company (including its consolidated subsidiaries) required to be included in the
Company's periodic SEC filings. The Company has not made any significant changes
to its disclosure controls and procedures or in other factors that could
significantly affect its disclosure controls and procedures subsequent to the
date of the evaluation described above.
11
<PAGE>
Part II - Other Information
The Company is proposing an amendment to its Articles of Incorporation to
reduce the par value of its Common Stock from $.10 per share to $.01 per share
at the 2004 Annual Meeting of Shareholders.
Item 1. Legal Proceedings
The Company at various times has been a defendant in certain legal actions,
which arose out of the normal course of business. In the opinion of management,
none of these actions are expected to have a material effect on the consolidated
results of operations or financial position of the Company.
Item 2. Change In Securities
Not Applicable
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits 31.1 Principal Executive Officer Certification pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 Principal Financial Officer Certification pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 Principal Executive Officer Certification pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 Principal Financial Officer Certification pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002
(b) The Company filed an 8-K dated January 27, 2004 related to the
redemption of the outstanding Series B and Series E preferred stock.
.
12
<PAGE>
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.
United Systems Technology, Inc.
Date: May 13, 2004 By: /s/ Thomas E. Gibbs
---------------------
Thomas E. Gibbs, President
and Chairman of the Board
(Principal Executive Officer)
Date: May 13, 2004 By: /s/ Randall L. McGee
----------------------
Randall L. McGee, Secretary
and Treasurer
(Principal Financial and
Accounting Officer)
13
<PAGE>
EXHIBIT 31.1
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
I, Thomas E. Gibbs, Chief Executive Officer of United Systems Technology, Inc.
("registrant"), certify that:
1. I have reviewed this quarterly report on Form 10-QSB of the registrant;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered
by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we
have:
a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and procedures as of the
end of the period covered by this quarterly report based on such
evaluation; and
c) disclosed in this report any change in the registrant's internal control
over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent function):
a) all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control over financial reporting.
Dated: May 13, 2004 By: /s/ Thomas E. Gibbs
-------------------
Thomas E. Gibbs
President and Chief Executive Officer
<PAGE>
EXHIBIT 31.2
CERTIFICATION OF CHIEF FINANCIAL OFFICER
I, Randall L. McGee, Chief Financial Officer of United Systems Technology, Inc.
("registrant"), certify that:
1. I have reviewed this quarterly report on Form 10-QSB of the registrant;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to
make the statements made, in light of the circumstances under which such
statements were made, not misleading with respect to the period covered by
this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and we
have:
a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others
within those entities, particularly during the period in which this
quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this quarterly report our conclusions about
the effectiveness of the disclosure controls and procedures as of the
end of the period covered by this quarterly report based on such
evaluation; and
c) disclosed in this report any change in the registrant's internal control
over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
5. The registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to the
registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent function):
a) all significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to
record, process, summarize and report financial information; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal
control over financial reporting.
Dated: May 13, 2004 By: /s/ Randall L. McGee
---------------------
Randall L. McGee
Vice President and Chief Financial Officer
<PAGE>
Exhibit 32.1
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
This certification is furnished solely pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 and accompanies the Quarterly Report of United
Systems Technology, Inc. (the "Company") on Form 10-QSB for the period ended
March 31, 2004 (the "Report"). I, Thomas E. Gibbs, Principal Executive Officer
of the Company, hereby certify that, to the best of my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
2. The information contained in the Report fairly presents, in all material
respect, the financial condition and results of the operations of the
Company.
Date: May 13, 2004 By: /s/ Thomas E. Gibbs
---------------------
Thomas E. Gibbs, President
and Chairman of the Board
(Principal Executive Officer)
<PAGE>
Exhibit 32.2
CERTIFICATION PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
(18 U.S.C. SECTION 1350)
This certification is furnished solely pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 and accompanies the Quarterly Report of United
Systems Technology, Inc. (the "Company") on Form 10-QSB for the period ended
March 31, 2004 (the "Report"). I, Randall L. McGee, Principal Financial and
Accounting Officer of the Company, hereby certify that, to the best of my
knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
2. The information contained in the Report fairly presents, in all material
respect, the financial condition and results of the operations of the
Company.
Date: May 13, 2004 By: /s/ Randall L. McGee
----------------------
Randall L. McGee, Secretary
and Treasurer
(Principal Financial and Accounting
Officer)
<PAGE>
</TEXT>
</DOCUMENT>