10QSB 1 innovative10qsb.txt 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 March 31, 2001. ( ) 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 ---------------------------------- INNOVATIVE SOFTWARE TECHNOLOGIES, INC. ----------------------------------------------------- (Exact name of registrant as specified in its charter) California 95-4691878 ------------------------------ ------------------- (State or other jurisdiction of IRS EMPLOYER ID NO. incorporation or organization) 112 Northwest Parkway, Riverside, MO 64150; 816-584-8030 -------------------------------------------------------------------------------- (Address of Principal Executive Offices, including Registrant's zip code and telephone number) NONE -------------------------------------------------------------- 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 ----- ----- The number of shares of the registrant's common stock as of March 31, 2001: 1,453,117 shares. Transitional Small Business Disclosure format (check one): Yes No X --- --- 1 TABLE OF CONTENTS ----------------- 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 OTHER INFORMATION Item 1. Legal Proceedings Item 2. Changes in Securities and Use of Proceeds 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 2 PART I. FINANCIAL INFORMATION
INNOVATIVE SOFTWARE TECHNOLOGIES, INC (A Development Stage Company) Balance Sheet March 31, December 31, 2001 2000 (Unaudited) -------- -------- ASSETS ------ Current Assets: Cash $ -- $ 400 -------- -------- Total Current Assets -- 400 -------- -------- TOTAL ASSETS $ -- $ 400 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Stockholders'. Equity: Common stock, par value of 3.001 per share, par value of $.0003 after 3 to 1 stock split; authorized-20 million, shares; issued and outstanding 1,453,117 and 1,436,440 respectively $ 484 $ 479 Capital in excess of par value of stock 17,826 17,814 Deficit accumulated during the development stage (18,310) (17,893) -------- -------- Total Stockholders' Equity -- 400 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ -- $ 400 ======== ========
3 INNOVATIVE SOFTWARE TECHNOLOGIES, INC. (A Development Stage Company) Statement of Operations For the three months ended March 31; 2001 and 2000 For the period May 27, 1998 (inception) through March 31, 2001 (Unaudited) Cumulative March March During 31, 31, Development 2000 2001 Stage --------- --------- --------- INCOME Sales $ 0 $ 0 $ 0 --------- --------- --------- Total Income 0 0 0 EXPENSES General and administrative 417 391 18,310 --------- --------- --------- Total expenses 417 391 18,310 --------- --------- --------- NET LOSS $ (417) $ (391) (18,310) ========= ========= ========= Basic loan per common shares $ (0.00) $ (0.00) -- ========= ========= ========= Weighted average shares outstanding 1,453,117 1,453,117 -- ========= ========= ========= 4
INNOVATIVE SOFTWARE TECHNOLOGIES, INC. (A Development Stage Enterprise) Statement of Stockholders' Equity For the period May 27, 1998 (inception) through March 31, 2001) Deficit Accumulated Number Common Additional During of Stock Paid-In- Development Shares at Par Value Capital Stage Total ---------- ---------- ---------- ---------- ---------- Stocks issued for cash 102,100 $ 102 $ 2,098 -- 2,200 Stocks issued for services 975,000 975 14,727 -- 15,702 Net loss - December 31, 1998 -- -- -- $ (17,502) $ (17,502) ---------- ---------- ---------- ---------- ---------- Balance at DecembEr 31, 1998 1,077,100 1,077 16,825 (17,502) 400 Retroactive adjustment for 8 to I stock split November 26, 1999 8,072,220 67 324 -- 391 Balance at Decernber31, 1999 9,149,320 1,144 17,149 (17,502) 791 Net loss - December 31, 1999 -- -- -- (391) (391) ---------- ---------- ---------- ---------- ---------- Balance at December 31, 1999 9,149,320 1,144 17,149 (17,893) 400 Stocks retired June 30,2000 (4,840,000 (605) 605 -- -- ---------- ---------- ---------- ---------- ---------- Balance at December 31, 2000 4,309,320 539 17,754 (17,893) 400 Retroactive adjustment for 3 to 1 reverse stock split - February 2001 (2,872,880) (60) 60 -- -- ---------- ---------- ---------- ---------- ---------- 8alance at January 1, 2001 1,436,440 479 17,814 (17,893) 400 Stocks issued services 16,617 5 12 -- 17 Net loss - March 31, 2001 -- -- -- (417) (417) Balance at March 31, 2001 1,453,117 $ 484 317,826 $ (18,310) $ -- ========== ========== ========== ========== ==========
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INNOVATIVE SOFTWARE TECHNOLOGIES, INC. (A Development Stage Company) Statement of Cash Flows For the three months ended March 31; 2001 and 2000 For the period May 27, 1998 (inception) through March 31, 2001 (Unaudited) Cumulative March March During 31, 31, Development 2000 2001 Stage --------- --------- --------- CASH FLOWS FRONT OPERATING ACTIVITIES Net loss $ (417) $ (391) $(18,310) Adjustments to reconcile net loss to net cash provided by operating activities; Stocks issued for services 17 -- 15,719 Depreciation & amorization -- -- -- Prepaid expenses -- -- -- --------- --------- --------- NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (400) (391) (2,591) CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of fixed assets -- -- -- Exclusive license rights --------- --------- --------- NET CASH PROVIDED (USED) BY INVESTING -- -- -- ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Issuance of common stocks -- -- 2,591 NET CASH PROVIDED (USED) BY FINANCING -- -- 2,591 ACTIVITIES INCREASE IN CASH (400) (391) -- BEGINNING CASH 400 791 -- --------- --------- --------- ENDING CASH $ -- $ 400 $ -- --------- --------- --------- NON CASH DISCLOSURE 7,800,000 shares issued for services $ 17 $ -- $ 16,719
6 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. Results of Operations --------------------- The Company is engaged in the business of providing sales of computer related software and related services. The Company has only commenced operations on its web site at www.software-software-software.com. Three months ended March 31, 2001 compared to three months ended March 31, 2000 The Company has generated no income since its inception, so a comparison of the two periods is not meaningful. Liquidity and Capital Resources ------------------------------- At March 31, 2001, the Company had a working capital surplus of $0, compared to a working capital surplus of $400 as of December 31, 2000. The difference is believed by management to be unremarkable. At March 31, 2001, the company has an accumulated deficit since inception of $(18,310). Net cash used in operating activities was $400 for the three months ended March 31, 2001, compared with $391, used during the same period last year. The difference is thought by management to be unremarkable. The company does not anticipate that it will have any problems in meeting its obligations for continuing fixed expenses, materials procurement or operating labor. 7 PART II. OTHER INFORMATION Item 1. Legal proceedings NONE Item 2. Changes in securities acid use of proceeds NONE Item 3. Defaults on senior securities NONE Item 4. Submission of items to a vote NONE Item 5. Other information Item 6. a) Exhibits NONE b) Reports on 8K April 25, 2001 8 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: May 11, 2001 By: /s/ Douglas Hackett ------------------------------ Douglas Hackett, President Dated: May 11, 2001 By: ------------------------------ Chief Financial officer