-----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, V+RP1ymrZ29jmTpSJ8bqAXbunl+eCfWnk3CnQApiuf52F4tejgdACSsBS5qtoBLK SGtC/wNkA4pDjc9ro+XiWQ== 0001004522-96-000037.txt : 19961121 0001004522-96-000037.hdr.sgml : 19961121 ACCESSION NUMBER: 0001004522-96-000037 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961119 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: 96669060 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 EXCANGE COMMISSION Washington, D.C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended: September 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, Ste 30 Spokane, WA 99201-2261 - ------------------------- --------------------- (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 November 14, 1996, the registrant had outstanding 12,926,481 shares of common stock which is the registrant's only class of stock . PART 1 - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Financial Statements Follow on the Next Page MPM TECHNOLOGIES, INC. AND SUBSIDIARIES (A Development Stage Company) Spokane, Washington Financial Statements September 30, 1996, And December 31, 1995
MPM TECHNOLOGIES, INC. Consolidated Balance Sheet As Of AND SUBSIDIARIES September 30, 1996, And December (A Development Stage Company) 31, 1995 Spokane, Washington UNAUDITED ASSETS SEPTEMBER DECEMBER 30, 1996 31, 1995 ------------- ------------ CURRENT ASSETS: Cash (Note 2) $ 121,355 $ 138,675 Prepaid Insurance 1,523 6,094 Receivables 31,594 25,440 ------------- ------------ Total Current Assets 154,472 170,209 ------------- ------------ 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 (341,237) (332,117) And Amortization ------------- ------------ Net Property, Plant & Equipment 325,759 331,361 ------------- ------------ OTHER ASSETS: Deferred Exploration And 1,195,465 1,195,466 Development (Note 1) Note Receivable 275,000 275,000 Licenses, Net Of Amortization Of $6,247 and $5,344 Respectively (Note 2) 27,841 28,745 Advance Minimum Royalties(Note 2) 50,750 50,750 Mineralized Material In Place 10 10 (Note 3) ------------- ------------ Total Other Assets 1,549,066 1,549,971 ------------- ------------ TOTAL ASSETS $ 2,029,297 $ 2,051,541 ============= ============
MPM TECHNOLOGIES, INC. Consolidated Balance Sheet As Of AND SUBSIDIARIES September 30, 1996, And December (A Development Stage Company) 31, 1995 (Continued) Spokane, Washington UNAUDITED LIABILITIES AND STOCKHOLDERS' EQUITY SEPTEMBER DECEMBER 30, 1996 31, 1995 --------------- -------------- CURRENT LIABILITIES: Accounts Payable $ 14,356 $ 14,356 Notes Payable (Note 4) 700,991 533,951 Notes Payable To Related Parties 314,765 314,765 (Note 4) Interest Payable -Related Parties 129,997 129,997 (Note 4) Interest Payable 3,063 0 --------------- -------------- Total Current Liabilities 1,163,172 993,069 --------------- -------------- LONG-TERM DEBT (Net Of Current Portion): Notes Payable 0 0 --------------- -------------- Total Long-Term Debt 0 0 --------------- -------------- Total Liabilities 1,163,172 993,069 --------------- -------------- MINORITY INTEREST (Note 6): Minority Interest In Consolidated (712,382) (687,185) Entities --------------- -------------- COMMITMENTS (Note 7) STOCKHOLDERS' EQUITY: Common Stock, $0.001 Par Value, 50,000,000 Shares Authorized, 12,926,481 Shares, And 12,842,176 Shares Outstanding September, 30, 1996, And December 31, 1995, Respectively (Notes 6 & 8) 12,926 12,842 Additional Paid-In Capital 6,082,409 5,998,967 Deficit Accumulated During The Exploration And Development Stage (4,516,828) (4,266,152) --------------- -------------- Total Stockholders' Equity 1,578,507 1,745,657 --------------- -------------- TOTAL LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY $ 2,029,297 $ 2,051,541 =============== ==============
MPM TECHNOLOGIES, INC. Consolidated Statement Of Income (Loss) AND SUBSIDIARIES For The Quarters Ended September 30, (A Development Stage Company) 1996 And 1995, The Nine Months Periods Spokane, Washington Ended September 30, 1996 And 1995, And From Inception (May 1, 1983) To Date UNAUDITED Quarter Ended Nine Months Ended Inception September 30 September 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 10 15 37 35 2,781 Contract Services (18,605) 18,000 4,190 54,000 1,299,314 Depreciation And Amortization 3,983 3,099 10,023 9,299 532,375 Donations 0 0 250 0 250 Dues And Subscriptions 55 100 343 380 38,702 Employee Benefits 0 0 0 0 3,704 Equipment Rentals 0 0 0 0 24,056 Exploration And Development 0 0 0 0 132,829 Freight 0 0 0 0 10,553 Insurance 4,399 8,700 10,322 11,576 138,097 Legal And Accounting 44,205 3,511 77,755 23,942 381,525 Licenses, Taxes And Fees 18,273 4,374 58,933 4,637 206,201 Mine Lease Expense 3,150 0 6,750 0 6,750 Miscellaneous 0 3,116 0 8,283 112,133 Office Expense And Postage 11,898 7,197 19,555 16,931 196,270 Professional Services 27,065 26,218 45,065 56,151 1,045,611 Public Relations And Finders Fee 0 0 0 0 72,763 Rent - Office 1,875 0 5,015 0 168,953 Rent - Equipment 615 0 615 0 615 Repairs And Maintenance 0 607 0 607 51,658 Research And Development 0 0 0 0 447,111 Reimbursed Expenses (9,733) (7,880) (30,454) (18,983) (478,606) Telephone And Utilities 584 481 1,431 1,616 56,223 Transfer Fees And Costs 769 2,472 1,588 3,752 37,702 Travel And Entertainment 7,039 3,815 23,290 7,819 257,323 Watchman 1,375 300 2,755 1,250 33,387 ------------- ------------ ------------- ------------- -------------- Total Expenses 96,957 74,125 237,463 181,295 4,778,280 ------------- ------------ ------------- ------------- -------------- INCOME (LOSS) BEFORE NON-OPERATING ITEMS (96,957) (74,125) (237,463) (181,295) (4,501,133) ------------- ------------ ------------- ------------- -------------- NON-OPERATING INCOME (EXPENSES): Interest Income 925 214 2,419 505 35,711 Interest (Expense) (13,962) (16,179) (40,829) (53,378) (1,073,500) 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) (13,037) (15,965) (38,410) (52,873) (887,155) ------------- ------------ ------------- ------------- -------------- INCOME (LOSS) BEFORE TAXES AND SUBSIDIARY LOSS (109,994) (90,090) (275,873) (234,168) (5,388,288) Minority Interest In Subsidiary Loss 7,015 6,225 25,197 23,522 884,644 Equity In Loss Of Unconsolidated Subsidiary 0 0 0 0 (12,416) Income Taxes 0 0 0 0 (768) ------------- ------------ ------------- ------------- -------------- NET INCOME (LOSS) $ (102,979) $ (83,865) $ (250,676) $ (210,646) $ (4,516,828) ============= ============ ============= ============= ============== NET INCOME (LOSS) PER SHARE (Note 2) $ (0.01) $ (0.01) $ (0.02) $ (0.02) ============= ============ ============= ============= ==============
.
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 September 30, 1996 (Continued) UNAUDITED Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploration 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 ------------- ------------ ------------- -------- --------- ------------ -------------
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 September 30, 1996 (Continued) UNAUDITED Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploration 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, Feb 1988, $1.40 Per Share 683 1 955 0 0 0 956 Services, Sept 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 ---------- ----------- ------------- ------------ --------- -------------- --------------
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 September 30, 1996 (Continued) UNAUDITED Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploration Shares Amount Capital Shares Amount Stage Total ---------- ----------- ------------- ------------ --------- -------------- -------------- Balances, December 31, 1989 As Restated 11,191,024 $ 11,192 $ 2,747,114 (217,900) $ 0 $ (1,554,346) $ 1,203,960 Stock Issued For: Services 0 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 3rd Quarter 50,262 50 26,338 0 0 0 26,388 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, December 31, 1992 11,973,585 $ 11,974 $ 4,290,673 0 $ 0 $ (3,271,596) $ 1,031,051 ---------- ----------- ------------- ------------ --------- -------------- --------------
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 September 30, 1996 (Continued) UNAUDITED Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploration Shares Amount Capital Shares Amount Stage Total ---------- ----------- ------------- --------- --------- -------------- -------------- Balances, December 31, 1992 As Restated 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 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 ---------- ----------- ------------- --------- --------- -------------- --------------
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 September 30, 1996 (Continued) UNAUDITED Deficit Accumulated Additional During Common Stock Paid-In Treasury Stock Exploration Shares Amount Capital Shares Amount Stage Total ----------- ----------- ------------- --------- --------- ------------- -------------- Balances, December 31, 1994 As Restated 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: 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 Exercise Of 1990 Options 50,000 50 4,950 0 0 0 5,000 Contributed Capital From Directors 0 0 55,526 0 0 0 55,526 Stock Issued For: Reduction Of Debt 34,305 33 24,967 0 0 0 25,000 Stock Registration Fees 0 0 (2,000) 0 0 0 (2,000) Net (Loss) 9 Months Ended Sept 30, 1996 0 0 0 0 0 (250,676) (250,676) ----------- ----------- ------------- --------- --------- ------------- -------------- Balances, September 30, 1996 12,926,481 $ 12,926 $ 6,082,409 0 $ 0 $ (4,516,828) $ 1,578,507 =========== =========== ============= ========= ========= ============= ==============
MPM TECHNOLOGIES, INC. Consolidated Statement Of Cash Flows AND SUBSIDIARIES For The Nine Month Periods Ended (A Development Stage Company) September 30, 1996 And 1995, And Spokane, Washington From Inception (May 1, 1983 To Date UNAUDITED Nine Months Ended Inception September 30 To 1996 1995 Date ------------ ------------ -------------- NET CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (250,676) $ (210,646) $ (4,516,828) Noncash Expenses, Revenues, Losses And Gains Included In Income: Depreciation And Amortization 9,120 9,299 538,717 Forgiveness Of Debt 0 0 (101,509) Minority (25,197) (23,522) (872,226) 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 (6,154) (8,433) (19,492) Prepaid Insurance 4,571 0 (1,522) Stock For Prepaid Expenses 0 0 40,000 Net Increase/(Decrease In: Accounts Payable 0 (6,000) 17,330 Interest Payable 3,063 (6,571) 133,060 ------------ ------------ -------------- Net Cash Flows From Operating Activities (264,259) (245,873) (4,235,980) ------------ ------------ -------------- 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) (3,500) (299,455) Mining Leases 0 0 (8,848) Leasehold Improvements 0 0 (9,357) Patents And Licenses 904 (259) (71,952) Deposits And Advance Minimum Royalties 0 0 (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 $ (2,614) $ (3,759) $ (833,771) ------------ ------------ --------------
MPM TECHNOLOGIES, INC. Consolidated Statement Cash Flows AND SUBSIDIARIES For The Nine Month Period Ended (A Development Stage Company) September 30, 1996 And 1995, And Spokane, Washington From Inception (May 1, 1983) To Date (Continued) UNAUDITED Nine Months Ended Inception September 30 To 1996 1995 Date ------------ ------------ -------------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds Of Short-Term Debt $ 275,000 $ 69,651 $ 2,558,112 Payments To Settle Debt (108,973) (169,889) (1,718,960) Issuance Of Long-Term Debt 0 0 288,184 Sale of Treasury Stock 0 0 1,272 Contributed Capital 83,442 187,115 1,943,002 Issuance Of Common Stock 84 180,000 2,119,496 ------------ ------------ -------------- Net Cash Provided By Financing Activities 249,553 266,877 5,191,106 ------------ ------------ -------------- Net Increase/(Decrease) In Cash (17,320) 17,245 121,355 Beginning Cash Balance 138,675 102,322 0 ------------ ------------ -------------- Ending Cash Balance $ 121,355 $ 119,567 $ 121,355 ============ ============ ==============
MPM TECHNOLOGIES, INC. NOTES TO FINANCIAL STATEMENTS AND SUBSIDIARIES (A Development Stage Company) Spokane, Washington NOTE 1 - UNAUDITIED FINANCIAL STATEMENTS These financial statements should be read in conjunction with the audited financial statements included in the Annual Report on Form 10-KSB 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 September 30, 1996, should not necessarily be taken as indicative of the results of operations that my be expected for the entire year 1996. (The Remainder of This Page Intentionally Left Blank) PART I 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 Third 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 creation of fuel gas. The project is estimated to be in excess of $10 million of capital investment. On August 1, 1996, the Company announced USF Smogless had signed a cooperation agreement with Tecnoparco Valbasento to install in the Pisticci Scalo area (Matera, Italy) a Skygas system for the gasification of organic materials. The Company is currently in negotiations for Skygas installations in Taiwan, South Korea, Thailand, China, Europe and North America. 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 1995, 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 Third 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. (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 Third 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 9/30/96 COMPARED TO QUARTER ENDED 9/30/95 Results of Operations 1996 1995 Inc/(Dec) % of Change ----------- ---------- ---------- ----------- Working Capital (Deficit) (1,008,700) (910,819) (97,881) ( 10.7) Total Operating Expenses 96,957 74,125 22,832 30.8 Interest Expenses 13,962 16,179 ( 2,217) ( 13.7) Contract Services ( 18,605) 18,000 (36,605) ( 203.4) Insurance 4,399 8,700 ( 4,301) ( 49.4) Legal and Accounting 44,205 3,511 40,694 1,159.0 Office and Postage 11,898 7,197 4,701 65.3 Reimbursed Expenses 9,733 7,880 1,853 23.5 Travel and Entertainment 7,039 3,815 3,224 84.5 Net Income (Loss) ( 102,979) ( 83,865) (19,114) ( 22.8) PART II ITEM 1. LEGAL PROCEEDING The Company knows of no litigation present, threatened or contemplated or unsatisfied judgment 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 The Annual Meeting of the Stockholders of the Company was held on September 9, 1996, with the following results: 1. Election of Directors Myron Katz For: 9,919,486 Withhold: 79,420 Daniel D. Smozanek For: 9,920,486 Withhold: 78,420 2. To approve the appointment of Terrence J. Dunne, CPA, PS, as independent auditors for the corporation for 1996. For: 9,914,136 Against: 70,450 Abstain: 14,320 The total voted shares, 9,998,906, represents 76.78% of the common stock outstanding. At record date July 26, 1996, the stock outstanding was 13,022,376. ITEM 5. OTHER INFORMATION There is no other information to report under this item. 8-K Filings - ----------- There were no 8-K filings during the Third Quarter of 1996. 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. 11/13/1996 /s/Robert D. Little --------------------- ------------------------- (Date) Robert D. Little Secretary EX-27 2
5 9-MOS DEC-31-1996 SEP-30-1996 121355 0 0 0 0 154472 666996 341237 2029297 1163172 0 0 0 12926 1565581 2029297 0 0 0 0 237463 0 40829 (275873) 0 (250676) 0 0 0 (250676) (.02) (.02)
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