-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DFBVvtroDEPD+bQXAJe+qOgfVYfDEu5n5Ar851Pz6WXPzqWuRUNwPVVCSIoLfAnO /eVzwpVCUFMmosl/oRzX4w== 0001004522-96-000035.txt : 19960816 0001004522-96-000035.hdr.sgml : 19960816 ACCESSION NUMBER: 0001004522-96-000035 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960815 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MPM TECHNOLOGIES INC CENTRAL INDEX KEY: 0000799268 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 810436060 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-14910 FILM NUMBER: 96616152 BUSINESS ADDRESS: STREET 1: 222 W MISSION AVE STREET 2: STE 30 CITY: SPOKANE STATE: WA ZIP: 99201 BUSINESS PHONE: 5093263443 MAIL ADDRESS: STREET 1: 908 N HOWARD SUITE 100 STREET 2: 908 N HOWARD SUITE 100 CITY: SPOKANE STATE: WA ZIP: 99201 FORMER COMPANY: FORMER CONFORMED NAME: MONTANA PRECISION MINING LTD DATE OF NAME CHANGE: 19920703 10QSB 1 FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended: June 30, 1996 Commission File Number: 0-14910 MPM TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Washington 81-0436060 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 222 West Mission, Suite 30 Spokane, Wa 99201-2347 (Address of principal (Zip Code) executive offices) Registrant's telephone number, including area code: (509) 326-3443 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. (X) Yes ( ) No As of August 15, 1996, the registrant had outstanding 13,022,376 shares of common stock which is the registrant's only class of stock. This Report contains 19 pages. PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Financial Statements Follow on the Next Page Page 2 of 19 MPM TECHNOLOGIES, INC. AND SUBSIDIARIES (a Development Stage Company) Spokane, Washington Financial Statements June 30, 1996 And December 31, 1995 Page 3 of 19
MPM TECHNOLOGIES, INC. Consolidated Balance Sheet As AND SUBSIDIARIES Of June 30, 1996 And December (a Development Stage Company) 31, 1995 Spokane, Washington UNAUDITED ASSETS June December 30, 1996 31, 1995 ------------ ------------ CURRENT ASSETS: Cash (Note 2) $ 160,286 $ 138,675 Prepaid Insurance 3,046 6,094 Receivables 21,861 25,440 ------------ ------------ Total Current Assets 185,193 170,209 ------------ ------------ PROPERTY, PLANT, & EQUIPMENT (Note 2): Land 70,000 70,000 Mining Claims (Note 3) 48,600 48,600 Mining Leases (Note 3) 5,437 5,437 Buildings 133,005 133,005 Mill Machinery 289,063 289,063 Vehicles & Equipment 117,633 114,115 Leasehold Improvements -0- -0- Software 3,258 3,258 ------------ ------------ Total Property, Plant & Equipment 666,996 663,478 Less Accumulated Depreciation And Amortization (337,588) (332,117) ------------ ------------ Net Property, Plant, & Equipment 329,408 331,361 ------------ ------------ OTHER ASSETS: Deferred Exploration and Development Costs (Note 1) 1,195,465 1,195,466 Note Receivable 275,000 275,000 Licenses, Net of Amortization of $5,913 and $5,344 Respectively (Note 2) 28,175 28,745 Advance Minimum Royalties (Note 2) 50,750 50,750 Mineralized Material in Place (Note 3) 10 10 ------------ ------------ Total Other Assets 1,549,400 1,549,971 ------------ ------------ TOTAL ASSETS $ 2,064,001 $ 2,051,541 ============ ============
The Accompanying Notes Are An Integral Part Of These Financial Statements Page 4 of 19
MPM TECHNOLOGIES, INC. Consolidated Balance Sheet As AND SUBSIDIARIES Of June 30, 1996 And December (a Development Stage Company) 31, 1995 (Continued) Spokane, Washington UNAUDITED LIABILITIES AND STOCKHOLDERS' EQUITY June December 30, 1996 31, 1995 ------------ ------------ CURRENT LIABILITIES: Accounts Payable $ 14,355 $ 14,356 Notes Payable (Note 4) 629,960 533,951 Notes Payable to Related Parties (Note 4) 314,766 314,765 Interest Payable - Related Parties (Note 4) 129,997 129,997 Interest Payable 506 -0- ------------ ------------ Total Current Liabilities 1,089,584 993,069 ------------ ------------ LONG-TERM DEBT: (Net of Current Portion) Notes Payable -0- -0- ------------ ------------ Total Long-Term Debt -0- -0- ------------ ------------ Total Liabilities 1,089,584 993,069 ------------ ------------ MINORITY INTEREST (Note 6): Minority Interest in Consolidated Entities (705,367) (687,185) ------------ ------------ COMMITTMENTS (Note 7) STOCKHOLDERS' EQUITY: Common Stock, $0.001 Par Value, 50,000,000 Shares Authorized, 12,876,481 Shares, and 12,842,176 Shares Outstanding June 30, 1996, and December 31, 1995, Respectively (Notes 6 & 8) 12,876 12,842 Additional Paid-in Capital 6,080,757 5,998,967 Deficit Accumulated During The Exploration and Development Stage (4,413,849) (4,266,152) ------------ ------------ Total Stockholders' Equity 1,679,784 1,745,657 ------------ ------------ TOTAL LIABILITIES, MINORITY INTEREST, AND STOCKHOLDERS' EQUITY $ 2,064,001 $ 2,051,541 ============ ============
The Accompanying Notes Are An Integral Part Of These Financial Statements Page 5 of 19
MPM TECHNOLOGIES, INC. Consolidated Statement Of Income AND SUBSIDIARIES (Loss) For The Quarters Ended (a Development Stage Company) June 30, 1996 And 1995, The Six Spokane, Washington Months Periods Ended June 30, 1996 And 1995, And From Inception (May 1, 1983) To Date UNAUDITED Quarter Ended Six Months Ended Inception June 30, June 30, To 1996 1995 1996 1995 Date ----------------------------------- ---------- ------------ REVENUE: Management Fees-Related Party $ -0- $ -0- $ -0- $ -0- $ 77,000 Gain on Sale of Equipment -0- -0- -0- -0- 200,147 --------- ------------- ----------- ---------- ------------ Total Revenues -0- -0- -0- -0- 277,147 --------- ------------- ----------- ---------- ------------ EXPENSES: Bank Charges 27 12 27 20 2,771 Contract Services 4,795 18,000 22,795 36,000 1,317,919 Depreciation and Amortization 2,940 3,100 6,040 6,200 528,392 Donations 250 -0- 250 -0- 250 Dues and Subscriptions 288 280 288 280 38,647 Employee Benefits -0- -0- -0- -0- 3,704 Equipment Rentals -0- -0- -0- -0- 24,056 Exploration & Development -0- -0- -0- -0- 132,829 Freight -0- -0- -0- -0- 10,553 Insurance 3,047 -0- 5,923 2,876 133,698 Legal and Accounting 23,345 13,307 33,550 20,431 337,320 Licenses, Taxes, and Fees 36,320 (3,821) 40,660 263 187,928 Mine Lease Expense 3,600 -0- 3,600 -0- 3,600 Miscellaneous (3,000) 847 -0- 5,167 112,133 Office Expense and Postage 4,941 7,489 7,657 9,734 184,373 Professional Services (8,900) 17,033 18,000 29,933 1,018,546 Public Relations and Finders Fee -0- -0- -0- -0- 72,763 Rent - Office 2,000 -0- 3,140 -0- 167,078 Repairs and Maintenance -0- -0- -0- -0- 51,658 Research and Development -0- -0- -0- -0- 447,111 Reimbursed Expenses (10,833) (8,474) (20,721) (11,103) (468,873) Telephone and Utilities 473 469 847 1,135 55,639 Transfer Fees and Costs 451 464 819 1,280 36,933 Travel and Entertainment 9,891 1,953 16,251 4,004 250,283 Watchman 1,080 550 1,380 950 32,012 --------- ------------- ----------- ---------- ------------ Total Expenses 70,715 51,209 140,506 107,170 4,681,323 --------- ------------- ----------- ---------- ------------ INCOME (LOSS) BEFORE NON-OPERATING ITEMS (70,715) (51,209) (140,506) (107,170) (4,404,176) --------- ------------- ----------- ---------- ------------ NON-OPERATING INCOME (EXPENSE): Interest Income 965 66 1,494 291 34,786 Interest (Expense) (13,377) (18,536) (26,867) (37,199) (1,059,538) Forgiveness of Debt By Related Parties -0- -0- -0- -0- 101,509 Gain On Sale of Securities -0- -0- -0- -0- 6,160 Other -0- -0- -0- -0- 42,965 --------- ------------- ----------- ---------- ------------ Total Non-Operating Income (Loss) (12,412) (18,470) (25,373) (36,908) (874,118) --------- ------------- ----------- ---------- ------------ INCOME (LOSS) BEFORE TAXES AND SUBSIDIARY LOSS (83,127) (69,679) (165,879) (144,078) (5,278,294) Minority Interest In Subsidiary Loss 9,643 9,887 18,182 17,297 877,629 Equity in Loss of Unconsolidated Subsidiary -0- -0- -0- -0- (12,416) Income Taxes -0- -0- -0- -0- (768) --------- ------------- ----------- ---------- ------------ NET INCOME (LOSS) $(73,484) $ (59,792) $(147,697) $(126,781) $(4,413,849) ========= ============= =========== ========== ============ NET INCOME (LOSS) PER SHARE (Note2) $ (0.01) $ (0.01) $ (0.01) $ (0.02) ========= ============= =========== ========== ============
The Accompanying Notes Are An Integral Part Of These Financial Statements Page 6 of 19
MPM TECHNOLOGIES, INC. Consolidated Statement Of AND SUBSIDIARIES Stockholders' Equity For The (a Development Stage Company) Period From Inception (May 1, Spokane, Washington 1983) To June 30, 1996 UNAUDITED Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploratory Shares Amount Capital Shares Amount Stage Total ----------- ----------- ----------- ---------- ---------- ------------ ------------ Balances, May 1, 1983 -0- $ -0- $ -0- -0- $ -0- $ -0- $ -0- Stock Issued for Cash, July 1983, $0.01 Per Share 400,000 4,000 -0- -0- -0- -0- 4,000 Stock Issued for Mining Claims and Leases, April 1985 and January 1986, $0.015 Per Share 30,130,328 471,397 -0- -0- -0- -0- 471,397 4:1 Reverse Stock Split (Note 1) (22,897,746) -0- -0- -0- -0- -0- -0- Change From No-Par To $0.001 Par -0- (467,764) 467,764 -0- -0- -0- -0- ----------- ----------- ----------- ---------- ---------- ------------ ------------ Balances, December 31, 1983 7,632,582 7,633 467,764 -0- -0- -0- 475,397 Stock Issued for Cash, March 1984, $0.08 Per Share 937,500 938 74,062 -0- -0- -0- 75,000 Costs of Offering -0- -0- (9,081) -0- -0- -0- (9,081) Net Income -0- -0- -0- -0- -0- 4,349 4,349 ----------- ----------- ----------- ---------- ---------- ------------ ------------ Balances, December 31, 1984 8,570,082 8,571 532,745 -0- -0- 4,349 545,665 Net (Loss) -0- -0- -0- -0- -0- (115,602) (115,602) ----------- ----------- ----------- ---------- ---------- ------------ ------------ Balances, December 31, 1985 8,570,082 8,571 532,745 -0- -0- (111,253) 430,063 Stock Issued for Cash, July 1986, $0.60 Per Share 705,211 705 422,415 -0- -0- -0- 423,120 Costs of Offering -0- -0- (9,848) -0- -0- -0- (9,848) Stock Issued for Cash December 1986: $0.60 per Share 166,667 167 99,833 -0- -0- -0- 100,000 $1.00 per Share 100,000 100 99,900 -0- -0- -0- 100,000 Net (Loss) -0- -0- -0- -0- -0- (133,173) (133,173) ----------- ----------- ----------- ---------- ---------- ------------ ------------ Balances, December 31, 1986 9,541,960 9,543 1,145,045 -0- -0- (244,426) 910,162 Prior Period Adjust- ment (Note 9) -0- -0- -0- -0- -0- (12,416) (12,416) ----------- ----------- ----------- ---------- ---------- ------------ ------------ Balances, December 31, 1986 as Restated 9,541,960 9,543 1,145,045 -0- -0- (256,842) 897,746
(Continued) The Accompanying Notes Are An Integral Part Of These Financial Statements Page 7 of 19
MPM TECHNOLOGIES, INC. Consolidated Statement Of AND SUBSIDIARIES Stockholders' Equity For The (a Development Stage Company) Period From Inception (May 1, Spokane, Washington 1983) To June 30, 1996 (Continued) Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploratory Shares Amount Capital Shares Amount Stage Total ----------- ----------- ----------- ---------- ---------- ------------- ------------- Balances, December 31, 1986 as Restated 9,541,960 9,543 1,145,045 -0- -0- (256,842) 897,746 Stock Issued for: Services,February 1987, $0.60 per Share 21,784 22 13,048 -0- -0- -0- 13,070 Services, March 1987, $0.60 per Share 6,660 6 3,990 -0- -0- -0- 3,996 Cash, April-Sept 1987, $1.40 per Share 576,123 576 805,999 -0- -0- -0- 806,575 Services, June 1987 $1.40 per Share 3,699 4 5,175 -0- -0- -0- 5,179 Buildings, Land, Equipment, Mining Leases, July 1987, $1.06 per Share 761,548 762 809,151 -0- -0- -0- 809,913 Increased Partnership Interest, October 1, 1987, $0.10 per Share (Note 2) 269,167 269 (45,367) -0- -0- -0- (45,098) Treasury Stock Acquired -0- -0- -0- (237,900) -0- -0- -0- Net (Loss) -0- -0- -0- -0- -0- (301,868) (301,868) ----------- ----------- ----------- ---------- ---------- ------------- ------------- Balances, December 31, 1987 11,180,941 $ 11,182 $ 2,737,041 (237,900) $ -0- $ (558,710) $ 2,189,513 Stock Issued for Services, February 1988, $1.40 per share 683 1 955 -0- -0- -0- 956 September 1988, $1.50 per share 200 -0- 300 -0- -0- -0- 300 Sale of Treasury Stock -0- -0- 1,272 20,000 -0- -0- 1,272 Net (Loss) -0- -0- -0- -0- -0- (446,594) (446,594) ----------- ----------- ----------- ---------- ---------- ------------- ------------- Balances, December 31, 1988 11,181,824 11,183 2,739,568 (217,900) -0- (1,005,304) 1,745,447 Stock Issued for: Assets, Sept 1989 $0.90 per share 1,000 1 899 -0- -0- -0- 900 Operating Expenses, May-Dec 1989 8,200 8 6,647 -0- -0- -0- 6,655 Net (Loss) -0- -0- -0- -0- -0- (549,042) (549,042) ----------- ----------- ----------- ---------- ---------- ------------- ------------- Balances, December 31, 1989 11,191,024 11,192 2,747,114 (217,900) -0- (1,554,346) 1,203,960
(Continued) The Accompanying Notes Are An Integral Part Of These Financial Statements Page 8 of 19
MPM TECHNOLOGIES, INC. Consolidated Statement Of AND SUBSIDIARIES Stockholders' Equity For The (a Development Stage Company) Period From Inception (May 1, Spokane, Washington 1983) To June 30, 1996 (Continued) Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploratory Shares Amount Capital Shares Amount Stage Total ----------- ---------- ----------- ---------- ---------- ------------- ------------- Balances, December 31, 1989 11,191,024 $ 11,192 $ 2,747,114 (217,900) $ -0- $(1,554,346) $1,203,960 Stock Issued for: Services -0- -0- 1,000 -0- -0- -0- Operating Expenses, Jan. 1990 $0.47 200 -0- 94 -0- -0- -0- 94 June 1990 $0.81 27,231 27 22,098 -0- -0- -0- 22,125 Oct. 1990 $1.25 5,000 5 6,245 -0- -0- -0- 6,250 Patents Oct. 1990 $1.25 8,000 8 9,992 -0- -0- -0 10,000 Cash 4th Quarter $1.25 per share 188,456 189 235,319 -0- -0- -0- 235,508 Net (Loss) -0- -0- -0- -0- -0- (515,868) (515,868) ----------- ---------- ----------- ---------- ---------- ------------- ------------- Balances, December 31, 1990 11,419,911 11,421 3,020,862 (216,900) -0- (2,070,214) 962,069 Stock Issued for: Cash 1st Quarter 16,500 16 20,609 -0- -0- -0- 20,625 Operating Expenses, Sept. 1991 $1.00 1,000 1 999 -0- -0- -0- 1,000 Oct. 1991 $0.905 10,000 10 9,040 -0- -0- -0- 9,050 Recision of Treasury Stock 2nd Quarter -0- -0- -0- 216,900 -0- -0- -0- Contributed Capital From Directors -0- -0- 208,036 -0- -0- -0- 208,036 Net (Loss) -0- -0- -0- -0- -0- (383,578) (383,578) ----------- ---------- ----------- ---------- ---------- ------------- ------------- Balances, December 31, 1991 11,447,411 11,448 3,259,546 -0- -0- (2,453,792) 817,202 Stock Issued For: Reduction of Debt 50,262 50 26,338 -0- -0- -0- 26,388 3rd Quarter Cash 4th Quarter 40,000 40 3,960 -0- -0- -0- 4,000 Exercise of 1990 Option 435,912 436 (436) -0- -0- -0- -0- Options Granted For Services -0- -0- 533,975 -0- -0- -0- 533,975 Contributed Capital From Directors -0- -0- 467,290 -0- -0- -0- 467,290 Net (Loss) -0- -0- -0- -0- -0- (817,804) (817,804) ----------- ---------- ----------- ---------- ---------- ------------- ------------- Balances, Dec. 31, 1992 11,973,585 11,974 4,290,673 -0- -0- (3,271,596) 1,031,051 Stock Issued for: Cash 1st Qtr. $0.10 90,000 90 8,910 -0- -0- -0- 9,000 2nd Qtr. $1.25 1,000 1 1,249 -0- -0- -0- 1,250 3rd Qtr $0.10 10,000 10 990 -0- -0- -0- 1,000 Operating Expenses 10,000 10 12,690 -0- -0- -0- 12,700 Exercise of 1990 Options 2,000 2 (2) -0- -0- -0- -0- Contributed Capital From Directors -0- -0- 816,124 -0- -0- -0- 816,124 Contributed Capital Other -0- -0- 1,250 -0- -0- -0- 1,250 Net (Loss) -0- -0- -0- -0- -0- (495,513) (495,513) ----------- ---------- ----------- ---------- ---------- ------------- ------------- Balances, December 31, 1993 12,086,585 12,087 5,131,884 -0- -0- (3,767,109) 1,376,862 ----------- ---------- ----------- ---------- ---------- ------------- -------------
(Continued) The Accompanying Notes Are An Integral Part Of These Financial Statements Page 9 of 19
MPM TECHNOLOGIES, INC. Consolidated Statement Of AND SUBSIDIARIES Stockholders' Equity For The (a Development Stage Company) Period From Inception (May 1, Spokane, Washington 1983) To June 30, 1996 (Continued) Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploratory Shares Amount Capital Shares Amount Stage Total ----------- ----------- ------------ ----------- ---------- ------------- ------------- Balances, December 31, 1993 12,086,585 $ 12,087 $ 5,131,884 -0- -0- $(3,767,109) $ 1,376,862 Stock Issued For: Cash $0.97 50,000 50 48,550 -0- -0- -0- 48,600 $0.88 30,000 30 26,430 -0- -0- -0- 26,460 $0.97 65,574 66 63,574 -0- -0- -0- 63,640 Operating Expenses 12,800 13 39,987 -0- -0- -0- 40,000 Prepaid Expenses 12,800 13 39,987 -0- -0- -0- 40,000 Reduction of Debt 8,380 8 29,992 -0- -0- -0- 30,000 Operating Expenses 9,120 9 32,706 -0- -0- -0- 32,715 Options 110,000 110 10,890 -0- -0- -0- 11,000 Contributed Capital From Directors -0- -0- 176,108 -0- -0- -0- 176,108 Net (Loss) -0- -0- -0- -0- -0- (227,991) (227,991) ----------- ----------- ------------ ----------- ---------- ------------- ------------- Balances, December 31, 1994 12,385,259 12,386 5,600,108 -0- -0- (3,995,100) 1,617,394 ----------- ----------- ------------ ----------- ---------- ------------- ------------- Contributed Capital From Directors -0- -0- 190,752 -0- -0- -0- 190,752 Stock Issued for: Cash July $0.97 82,580 83 79,917 -0- -0- -0- 80,000 Sept $0.87 115,077 115 99,885 -0- -0- -0- 100,000 Oct $0.95 159,260 159 151,804 -0- -0- -0- 151,963 Investment in NuPower 100,000 100 (119,349) -0- -0- -0- (119,249) Stock Registration Fees -0- -0- (4,151) -0- -0- -0- (4,151) Net (Loss) -0- -0- -0- -0- -0- (271,052) (271,052) ----------- ----------- ------------ ----------- ---------- ------------- ------------- Balances, December 31, 1995 12,842,176 12,843 5,998,966 -0- -0- (4,266,152) 1,745,657 ----------- ----------- ------------ ----------- ---------- ------------- ------------- Contributed Capital From Directors -0- -0- 57,824 -0- -0- -0- 57,824 Stock Issued For: Reduction of Debt 34,305 33 24,967 -0- -0- -0- 25,000 Stock Registration Fees -0- -0- (1,000) -0- -0- -0- (1,000) Net (Loss) 6 Months Ended June 30, 1996 -0- -0- -0- -0- -0- (147,697) (147,697) ----------- ----------- ------------ ----------- ---------- ------------- ------------- Balances, June 30, 1996 12,876,481 $ 12,876 $ 6,080,757 $ -0- $ -0- $(4,413,849) $1,679,784 =========== =========== ============ ========== ========== ============= -------------
The Accompanying Notes Are An Integral Part Of These Financial Statements Page 10 of 19
MPM TECHNOLOGIES, INC. Consolidated Statement Of Cash Flows AND SUBSIDIARIES For The Six Month Periods Ended June (a Development Stage Company) 30, 1996 And 1995 And From Inception Spokane, Washington (May 1, 1983) To Date UNAUDITED Six Months Ended Inception June 30, To 1996 1995 Date ----------- ---------- -------------- NET CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (147,697) $(126,781) $ (4,413,849) Noncash Expenses, Revenues, Losses, and Gains Included in Income: Depreciation and Amortization 5,472 6,200 535,069 Forgiveness of Debt -0- -0- (101,509) Minority (18,182) (17,297) (865,211) Loss(Gain) on Sale of Equipment -0- -0- (199,220) Stock Granted for Operating Expenses -0- -0- 154,090 Stock Issued for Services -0- -0- 533,975 Accrued Interest Payable Converted to Debt 1,014 -0- 57,645 Net (Increase)/Decrease in: Accounts Receivable 3,579 (552) (9,759) Prepaid Insurance 3,048 -0- (3,045) Stock For Prepaid Expenses -0- -0- 40,000 Net Increase/(Decrease) in: Accounts Payable -0- (6,000) 17,330 Interest Payable 506 (6,571) 130,503 ----------- ---------- -------------- Net Cash Flows from Operating Activities (152,260) (151,001) (4,123,981) ----------- ---------- -------------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to: Mining Claims -0- -0- (10,728) Deferred Exploration and Development Costs -0- -0- (485,000) Property, Plant and Equipment (3,518) -0- (302,973) Mining Leases -0- -0- (5,330) Leasehold Improvements -0- -0- (9,357) Patents and Licenses 570 (194) (72,286) Deposits and Advance Minimum Royalties -0- (44) (52,591) Partnership Investment -0- -0- 90,749 Organization Costs -0- -0- (1,296) Proceeds from: Sale of Equipment -0- -0- 296,876 Redemption of Bonds and Deposits -0- -0- 4,933 Loans Made -0- -0- (395,456) Less Repayments -0- -0- 108,354 ----------- ---------- -------------- Net Cash Used by Investing Activities (2,949) (238) (834,105) ----------- ---------- --------------
(Continued) The Accompanying Notes Are An Integral Part of These Financial Statements Page 11 of 19
MPM TECHNOLOGIES, INC. Consolidated Statement Of Cash Flows AND SUBSIDIARIES For The Six Month Periods Ended June (a Development Stage Company) 30, 1996 And 1995 And From Inception Spokane, Washington (May 1, 1983) To Date (continued) Six Months Ended Inception June 30, To 1996 1995 Date ------------ ------------- --------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds of Short-Term Debt 175,000 69,651 2,458,112 Payments to Settle Debt (80,005) (98,883) (1,689,992) Issuance of Long-Term Debt -0- -0- 288,184 Sale of Treasury Stock -0- -0- 1,272 Contributed Capital 57,824 115,576 1,917,384 Issuance of Common Stock 24,000 -0- 2,143,412 ----------- ------------- --------------- Net Cash Provided by Financing Activities 176,819 86,344 5,118,372 ----------- ------------- --------------- Net Increase/(Decrease) in Cash 21,611 (64,895) 160,286 Beginning Cash Balance 138,675 102,322 -0- ----------- ------------- --------------- Ending Cash Balance $ 160,286 $ 37,427 $ 160,286 =========== ============= ===============
The Accompanying Notes Are An Integral Part of These Financial Statements Page 12 of 19 MPM TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS AND SUBSIDIARIES (a Development Stage Company) Spokane, Washington NOTE 1 - UNAUDITED FINANCIAL STATEMENTS These financial statements should be read in conjunction with the audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 1995. Since certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting standards have been omitted pursuant to the rules and regulations of the Securities and Exchange Commission, these financial statements specifically incorporate by reference the footnotes to the consolidated financial statements of the Company as of December 31, 1995. In the opinion of management, these unaudited interim financial statements reflect all adjustments necessary for a fair presentation of the financial position and results of operations and cash flows of the Company. Such adjustments consisted only of those of a normal recurring nature. Results of operations for the period ended June 30, 1996 should not necessarily be taken as indicative of the results of operations that may be expected for the entire year 1996. (The Remainder of This Page Intentionally Left Blank) Page 13 of 19 PART 1 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (a) Review of Operations MINING The Company owns or controls 45 patented and unpatented lode claims amounting to approximately 750 acres in the heart of the historical Emery Mining District, Powell County, Montana. The 45 claims include: eight patented claims, and sixteen unpatented claims owned by the Company and eight patented claims and thirteen unpatented claims leased by the Company. To date the Company has expended over $1.3 million on exploration and development, lease payments and claims. Additionally, over $532,000 has been expended by the Company on buildings, mill machinery, vehicles and equipment. Management is currently negotiating with several mining companies for a joint venture to further explore and develop the properties. WASTE-TO-ENERGY During the Second Quarter of 1996, the Company's venture partner USF Smogless moved forward with permitting, site evaluation and selection pursuant to the agreement entered with a consortium of European companies during the First Quarter of 1996. The agreement calls for utilization of the Skygas technology along with USF Smogless' proprietary Flotherm technology for the destruction of selected wastes and for the creating of fuel gas. The project is estimated to be in excess of $10 million of capital investment. The Company is currently in negotiations for other Skygas installations in Taiwan, South Korea, Thailand, China and Europe. The Skygas process is a two reactor system (primary and secondary) for the disposal of carbonaceous wastes by converting these wastes into a clean burning medium BTU fuel gas. In March of 1990, NuPower, a Montana general partnership, in which NuPower, Inc., a wholly owned subsidiary of MPM Technologies, Inc., owns a 58.21% interest, entered into an agreement with Smogless S.p.A., Milan, Italy, and Xytel Technologies, Inc., of Mt. Prospect, IL, for the purpose of commercializing the Skygas process. Smogless agreed to finance, engineer, build, test and operate a commercial demonstration facility. Xytel agreed to handle all promotional work, public relations, advertising and marketing of the process. During 1994, Smogless was purchased by United States Filter Corp. (NYSE: USF) and renamed USF Smogless. During the First Quarter of 1996, Xytel announced it had changed its name to Unitel Technologies, Inc. Percentage of interest in the Skygas Venture is as follows: NuPower -70%; USF Smogless - 15%; and Unitel Technologies, Inc. - 15%. (b) Liquidity During the Second Quarter of 1996, the sole source of revenue was from nominal interest on bank accounts. Funds for operations were provided by cash reserves, reimbursement of expenses from Unitel Technologies and USF Smogless and from the sale of company stock. During the Second Quarter, the Company entered into a Subordinated Convertible Term Note Agreement with Chesterton Trading Limited of London, England. The agreement allows Chesterton to convert $200,000 USD into common shares of the Company at a price per share dependent upon the price of the shares as reported on Nasdaq Stock Market during a five day period prior to conversion. The note has a term of three years and bears interest at 5% per annum. Additionally, the agreement entitles Chesterton to purchase up to 100,000 shares of common Page 14 of 19 stock from the company at $1.00 per share. (c) Capital Resources The Company utilized funds received primarily for general operational expenses. Minimal activity was spent by the Company on the mining properties during the Second Quarter of 1996. Management is negotiating with various mining companies for a joint venture which would reduce mining expenses. Management believes that further development costs relating to the Skygas process will be minimal due to the venture now in place. QUARTER ENDED 6/30/96 COMPARED TO QUARTER ENDED 6/30/95 Results of Operations 1996 1995 Inc/(Dec) % of Change --------- ----------- ----------- ----------- Working Capital (Deficit) (904,391) (1,071,846) (167,455) 15.6 Total Operating Expenses 70,715 51,209 19,506 38.1 Interest Expenses 13,377 18,536 (5,159) (27.8) Contract Services 4,795 18,000 (13,205) (73.4) Insurance 3,047 -0- 3,047 100.0 Legal and Accounting 23,345 13,307 10,038 75.4 Office and Postage 4,941 7,489 (2,548) (34.0) Reimbursed Expenses 10,833 8,474 2,359 27.8 Travel and Entertainment 9,891 1,953 7,938 406.5 Net Income (Loss) (73,484) (59,792) (13,692) (22.9) Page 15 of 19 PART II ITEM 1. LEGAL PROCEEDINGS The Company knows of no litigation present, threatened or contemplated or unsatisfied judgement against the Company, its officers or directors or any proceedings in which the Company, its officers or directors are a party. ITEM 2. CHANGES IN SECURITIES The rights of the holders of the Company's securities have not been modified nor have the rights evidenced by the securities been limited or qualified by the issuance or modification of any other class of securities. ITEM 3. DEFAULTS UPON SENIOR SECURITIES There are no senior securities issued by the Company. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There was no submission of matters to a vote of security holders during the Second Quarter of 1996. ITEM 5. OTHER INFORMATION There is no other information to report under this item. Page 16 of 19 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits Required by Item 601 of Regulation S-K Reference Form Exhibit Number 10-Q Page Number 1.1 Plan of acquisition, reorganization, arrangement, liquidation or succession N/A 2.1 Instruments defining the rights of security holders - Filed as Exhibit 3 to Form 10 Registration Statement No. 0-14910 and incorporated herein by reference. N/A 3.1 Statement re: Computation of Earnings per share N/A 4.1 Letter re: Unaudited Financial Statements N/A 5.1 Letter re: Change in Accounting Principle N/A 6.1 Previously unfiled documents N/A 7.1 Report furnished to Security Holders N/A 8.1 Published report regarding matters submitted to vote of security holders N/A 9.1 Consent of Experts and Counsel N/A 10.1 Powers of Attorney N/A 11.1 Additional Exhibits N/A 27 Financial Data Schedule EX-27 b)Reports on Form 8-K On April 11, 1996, the Company announced it had received notification from independent auditor Robert Moe & Associates, P.S., that they would not be able to audit the Company's December 31, 1995, financial statement. A letter from Robert Moe & Associates, P.S., to the Company dated April 10, 1996, and one to the SEC dated April 11, 1996, declared that they were not aware of any information or facts that would impair the integrity of management of MPM Technologies, Inc., and that they have no disagreements with management to accounting principles, auditing procedures or similarly significant matters. The letter goes on to state that the reason for the change of auditors is that their firm has had a reduction and reassignment in staff. On May 8, 1996, the Company filed an 8-K/A, amending the 8-K filed on April 11, 1996. The Company stated that reports for years ended 1993 and 1994 by Robert Moe & Associates, P.S., independent auditor for the Company, did not contain an adverse opinion or disclaimer of opinion or modified as to uncertainty, audit scope, or accounting principles. In addition, during the Company's two most recent fiscal years and subsequent interim period proceeding dismissal by Robert Moe & Associates, P.S., there were no disagreements with Page 17 of 19 the former accountant on any matter of accounting principles or practices, financial statements disclosure, or auditing scope or procedures, which disagreements if not resolved to the satisfaction of the former accountant, would have caused it to make reference to the subject matter of the disagreements in connection with its reports. Page 18 of 19 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. MPM TECHNOLOGIES, INC. 8/14/96 /s/Robert D. Little - ----------------- ------------------------------ (Date) Robert D. Little Secretary Page 19 of 19 EX-27 2
5 6-MOS DEC-31-1996 JUN-30-1996 160286 0 0 0 0 185193 666996 337588 2064001 1089584 0 0 0 12876 1666908 2064001 0 0 0 0 140506 0 26867 (165879) 0 (147697) 0 0 0 (147697) (.01) (.01)
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