-----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, P581f5YBYAFnBwqWp5dzUgHNk+UClhz2SKOzHXtlBmvmlYaa7I3ywPRdfP8j2yc6 Wb475HcLqtCbRlduXvokgg== 0001004522-97-000062.txt : 19970514 0001004522-97-000062.hdr.sgml : 19970514 ACCESSION NUMBER: 0001004522-97-000062 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970513 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: 97602218 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: March 31, 1997 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 April 23, 1997, the registrant had outstanding 14,966,831 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 March 31, 1997 and December 31, 1996
MPM TECHNOLOGIES, INC. Consolidated Statement of Financial AND SUBSIDIARIES Position as of March 31, 1997 and (A Development Stage Company) December 31, 1996 UNAUDITED ASSETS March December 31, 1997 31, 1996 --------------- -------------- CURRENT ASSETS Cash (Note 2) $ 130,286 $ 40,566 Receivables 5,506 37,017 Prepaid insurance 6,696 1,438 --------------- -------------- Total current assets 142,488 79,021 --------------- -------------- PROPERTY, PLANT AND EQUIPMENT (NOTE 2) Land 70,000 70,000 Mining claims (Note 3) 48,600 48,600 Mining leases (Notes 3 and 7) 5,437 5,437 Buildings 133,005 133,005 Mill machinery 289,063 289,063 Vehicles and equipment 117,630 117,630 Software 3,258 3,258 --------------- -------------- Total property, plant and equipment 666,993 666,993 Less accumulated depreciation 433,177 422,167 --------------- -------------- Net property, plant and equipment 233,816 244,826 --------------- -------------- OTHER ASSETS Deferred exploration and development costs (Note 1) 1,195,466 1,195,466 Investment (Note 1) 1,200,000 1,200,000 Notes receivable 275,000 275,000 Licenses, net of accumulated amortization of $4,846 and $4,595, respectively (Note 2) 29,243 29,494 Advance minimum royalties (Note 2) 50,750 50,750 Mineralized material in place (Note 3) 10 10 --------------- -------------- Total other assets 2,750,469 2,750,720 --------------- -------------- TOTAL ASSETS $ 3,126,773 $ 3,074,567 =============== ==============
The accompanying notes are an integral part of these financial statements.
MPM TECHNOLOGIES, INC. Consolidated Statement of Financial AND SUBSIDIARIES Position as of March 31, 1997 and (A Development Stage Company) December 31, 1996 UNAUDITED LIABILITIES AND STOCKHOLDERS' EQUITY March December 31, 1997 31, 1996 ---------------- --------------- CURRENT LIABILITIES Accounts payable $ -0- $ 963 Interest payable - other 439 5,859 Interest payable - related parties (Note 4) 129,997 129,997 Notes payable - other (Note 4) 635,116 570,234 Notes payable - related parties (Note 4) 314,765 314,765 ---------------- --------------- Total current liabilities 1,080,317 1,021,818 ---------------- --------------- MINORITY INTEREST (NOTES 2 and 6) Minority interest in consolidated entities (728,570) (718,888) ---------------- --------------- COMMITMENTS (NOTE 7) STOCKHOLDERS' EQUITY Common stock, $.001 par value, 50,000,000 shares authorized, 14,851,624 shares and 14,399,773 shares outstanding March 31, 1997, and December 31, 1996, respectively (Notes 1, 6 and 8) 14,851 14,399 Additional paid-in capital 7,517,545 7,417,996 Accumulated deficit during the development stage (4,757,370) (4,660,758) ---------------- --------------- Total stockholders' equity 2,775,026 2,771,637 ---------------- --------------- TOTAL LIABILITIES, MINORITY INTEREST AND STOCKHOLDERS' EQUITY $ 3,126,773 $ 3,074,567 ================ ================
The accompanying notes are an integral part of these financial statements.
MPM TECHNOLOGIES, INC. Consolidated Statement of Operations for the Quarters AND SUBSIDIARIES Ended March 31, 1997 and 1996 and Cumulative (A Development Stage Company) Amounts from Inception (May 1, 1983) Through March 31, 1997 UNAUDITED Quarter Ended March 31, Cumulative 1997 1996 Amounts ------------ ------------ -------------- REVENUES Management fees - related party $ -0- $ -0- $ 77,000 Sales of equipment 200,147 ------------ ------------ -------------- Total revenues -0- -0- 277,147 ------------ ------------ -------------- SELLING, GENERAL AND ADMINISTRATIVE EXPENSES Bank service fees 10 2,791 Contract labor 18,000 1,297,314 Depreciation and amortization 11,261 3,100 622,915 Dues and subscriptions 30 38,914 Employee benefits 3,704 Equipment rental 24,056 Exploration 132,829 Freight 10,553 Insurance 3,258 2,876 141,441 Professional services 28,856 37,104 1,496,848 Licenses, taxes and other fees 22,035 4,340 248,307 Office 3,331 2,716 203,478 Public relations 74,168 Rent - office 1,540 1,140 172,373 Repairs and maintenance 53,397 Research and development 447,111 Telephone and utilities 723 374 57,613 Transfer and registration fees 12,364 368 54,854 Travel and entertainment 10,215 6,361 269,822 Watchman 300 300 34,137 Miscellaneous 3,105 3,000 124,172 Reimbursed expenses (3,680) (9,888) (502,064) ------------ ------------ -------------- Total expenses 93,348 69,791 5,008,733 ------------ ------------ -------------- (LOSS) BEFORE NON-OPERATING ITEMS (93,348) (69,791) (4,731,586) ------------ ------------ -------------- NON-OPERATING INCOME (EXPENSE) Interest income 691 529 37,015 Interest expense (13,637) (13,490) (1,101,081) Forgiveness of debt by related parties 101,509 Gain on sale of securities 6,160 Other income 42,965 ------------ ------------ -------------- Total non-operating income (expense) (12,946) (12,961) (913,432) ------------ ------------ -------------- (LOSS) BEFORE INCOME TAXES AND SUBSIDIARY LOSS (106,294) (82,752) (5,645,018) ------------ ------------ -------------- INCOME TAXES AND SUBSIDIARY LOSS Income taxes (768) Minority interest in subsidiary loss (income) 9,682 8,539 900,832 Equity in loss of unconsolidated subsidiary (12,416) ------------ ------------ -------------- Total income taxes and subsidiary loss (income) 9,682 8,539 887,648 ------------ ------------ -------------- NET (LOSS) $ (96,612) $ (74,213) $ (4,757,370) ============ ============ ============== NET (LOSS) PER SHARE (NOTE 2) $ (.01) $ (.01) $ (.32) ============ ============ ==============
The accompanying notes are an integral part of these financial statements.
MPM TECHNOLOGIES, INC. Consolidated Statement of Changes in Stockholders' AND SUBSIDIARIES Equity for the Period from Inception (May 1, 1983) (A Development Stage Company) Through March 31, 1997 UNAUDITED Accumulated Deficit Additional During the Common Stock Paid-In Development Shares Amount Capital Stage Totals ------------- ------------- ----------- ----------- ------------ Balances, May 1, 1983 -0- $ -0- $ -0- $ -0- $ -0- Stock issued for cash, July 1983, $.01 per share 400,000 4,000 4,000 Stock issued for mining claims and leases, at $.015 per share 30,130,328 471,397 471,397 4:1 Reverse stock split (22,897,746) Change from no-par to $.001 par (467,764) 467,764 ------------- ------------- ----------- ----------- ------------ Balances, December 31, 1983 7,632,582 7,633 467,764 -0- 475,397 Stock issued for cash, March 1984, $.08 per share 937,500 938 74,062 75,000 Cost of offering (9,081) (9,081) Net income 4,349 4,349 ------------- ------------- ----------- ----------- ------------ Balances, December 31, 1984 8,570,082 8,571 532,745 4,349 545,665 Net (loss) (115,602) (115,602) ------------- ------------- ----------- ----------- ------------ Balances, December 31, 1985 8,570,082 8,571 532,745 (111,253) 430,063 Stock issued for cash, July 1986, $.60 per share 705,211 705 422,415 423,120 Costs of offering (9,848) (9,848) Stock issued for cash, December 1986: $.60 per share 166,667 167 99,833 100,000 $1.00 per share 100,000 100 99,900 100,000 Net (loss) (133,173) (133,173) ------------- ------------- ----------- ----------- ------------ Balances, December 31, 1986 9,541,960 9,543 1,145,045 (244,426) 910,162 Prior period adjustment (12,416) (12,416) ------------- ------------- ----------- ----------- ------------ Balances, December 31, 1986 as restated 9,541,960 9,543 1,145,045 (256,842) 897,746
The accompanying notes are an integral part of these financial statements.
MPM TECHNOLOGIES, INC. Consolidated Statement of Changes in Stockholders' AND SUBSIDIARIES Equity for the Period from Inception (May 1, 1983) (A Development Stage Company) Through March 31, 1997 UNAUDITED Accumulated Deficit Additional During the Common Stock Paid-In Treasury Stock Development Shares Amount Capital Shares Amount Stage Totals ------------ --------- ------------ ---------- ------- ------------- ------------- 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, $.60 per share 21,784 22 13,048 13,070 Services, March 1987, $.60 per share 6,660 6 3,990 3,996 Cash, April-September 1987, $1.40 per share 576,123 576 805,999 806,575 Services, June 1987, $1.40 per share 3,699 4 5,175 5,179 Buildings, land, equipment, mining leases, July 1987, $1.06 per share 761,548 762 809,151 809,913 Increased partnership interest, October 1, 1987, $.10 per share (Note 2) 269,167 269 (45,367) (45,098) Treasury stock acquired (237,900) Net (loss) (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 1 955 956 September 1988, $1.50 per share 200 300 300 Sales of treasury stock 1,272 20,000 1,272 Net (loss) (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 September 1989, $.90 per share 1,000 1 899 900 Operating expenses May-December 1989 8,200 8 6,647 6,655 Net (loss) (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
The accompanying notes are an integral part of these financial statements.
MPM TECHNOLOGIES, INC. Consolidated Statement of Changes in Stockholders' AND SUBSIDIARIES Equity for the Period from Inception (May 1, 1983) (A Development Stage Company) Through March 31, 1997 UNAUDITED Accumulated Deficit Additional During the Common Stock Paid-In Treasury Stock Development Shares Amount Capital Shares Amount Stage Totals ------------ --------- ------------ ---------- ------- ------------- ------------- 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 1,000 Operating expenses at $.047 per share 200 94 94 at $.81 per share 27,231 27 22,098 22,125 at $1.25 per share 5,000 5 6,245 6,250 Patents, October 1990, $1.25 per share 8,000 8 9,992 10,000 Cash, 4th Quarter, $1.25 per share 188,456 189 235,319 235,508 Net (loss) (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 20,625 Operating expenses September 1991, $1.00 per share 1,000 1 999 1,000 October 1991, $.905 per share 10,000 10 9,040 9,050 Recision of Treasury Stock, 2nd Quarter 216,900 Contributed capital from directors 208,036 208,036 Net (loss) (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 26,388 Cash, 4th Quarter 40,000 40 3,960 4,000 Exercise of 1990 option 435,912 436 (436) Options granted for services 533,975 533,975 Contributed capital from directors 467,290 467,290 Net (loss) (817,804) (817,804) ------------ --------- ------------ ---------- ------- ------------- ------------- Balances, December 31, 1992 11,973,585 11,974 4,290,673 -0- -0- (3,271,596) 1,031,051
The accompanying notes are an integral part of these financial statements.
MPM TECHNOLOGIES, INC. Consolidated Statement of Changes in Stockholders' AND SUBSIDIARIES Equity for the Period from Inception (May 1, 1983) (A Development Stage Company) Through March 31, 1997 UNAUDITED Accumulated Deficit Additional During the Common Stock Paid-In Development Shares Amount Capital Stage Totals ------------ --------- ------------ ------------ ------------ Balances, December 31, 1992 11,973,585 $ 11,974 $ 4,290,673 $(3,271,596) $ 1,031,051 Stock issued for: Cash at $.10 per share 90,000 90 8,910 9,000 at $1.25 per share 1,000 1 1,249 1,250 at $.10 per share 10,000 10 990 1,000 Operating expenses 10,000 10 12,690 12,700 Exercise of 1990 options 2,000 2 (2) Contributed capital from directors 816,124 816,124 Contributed capital - other 1,250 1,250 Net (loss) (495,513) (495,513) ------------ --------- ------------ ------------ ------------ Balances, December 31, 1993 12,086,585 12,087 5,131,884 (3,767,109) 1,376,862 Stock issued for: Cash at $.97 per share 50,000 50 48,550 48,600 at $.88 per share 30,000 30 26,430 26,460 at $.97 per share 65,574 66 63,574 63,640 Operating expenses 12,800 13 39,987 40,000 Prepaid expenses 12,800 13 39,987 40,000 Reduction of debt 8,380 8 29,992 30,000 Operating expenses 9,120 9 32,706 32,715 Options 110,000 110 10,890 11,000 Contributed capital from directors 176,108 176,108 Net (loss) (227,991) (227,991) ------------ --------- ------------ ------------ ------------ Balances, December 31, 1994 12,385,259 12,386 5,600,108 (3,995,100) 1,617,394 Contributed capital from directors 190,752 190,752 Stock issued for: Cash at $.97 per share 82,580 83 79,917 80,000 at $.87 per share 115,077 115 99,885 100,000 at $.95 per share 159,260 159 151,804 151,963 Investment in NuPower 100,000 100 (119,349) (119,249) Stock registration fees (4,151) (4,151) Net (loss) (271,052) (271,052) ------------ --------- ------------ ------------ ------------ Balances, December 31, 1995 12,842,176 12,843 5,998,966 (4,266,152) 1,745,657
The accompanying notes are an integral part of these financial statements.
MPM TECHNOLOGIES, INC. Consolidated Statement of Changes in Stockholders' AND SUBSIDIARIES Equity for the Period from Inception (May 1, 1983) (A Development Stage Company) Through March 31, 1997 UNAUDITED Accumulated Deficit Additional During the Common Stock Paid-In Development Shares Amount Capital Stage Totals ------------ --------- ------------ ------------- ------------ Balances, December 31, 1995 12,842,176 $ 12,843 $ 5,998,966 $ (4,266,152) $ 1,745,657 Common stock issued for services at $.375 per share 34,000 34 20,026 20,060 Cash contributed to additional paid-in capital 55,528 55,528 Notes payable converted to common stock at $.729 per share 34,305 34 24,964 24,998 Common stock options exercised for cash at $.10 per share 50,000 50 4,950 5,000 Notes payable converted to common stock at $.646 per share 61,895 62 39,938 40,000 Notes payable converted to common stock at $.454 per share 110,193 110 49,890 50,000 Notes payable converted to common stock at $.372 per share 67,204 67 24,933 25,000 Common stock issued for 15% of a development stage company (Note 1) 1,200,000 1,200 1,198,800 1,200,000 Contributed capital from directors Net (loss) (394,606) (394,606) ------------ --------- ------------ ------------- ------------ Balances, December 31, 1996 14,399,773 14,400 7,417,995 (4,660,758) 2,771,637 Notes payable converted to common stock at $.236 per share 105,764 105 24,895 25,000 Notes payable converted to common stock at $.217 per share 230,880 231 49,769 50,000 Notes payable converted to common stock at $.217 per share 115,207 115 24,885 25,000 Contributed capital from directors Net (loss) (96,612) (96,612) ------------ --------- ------------ ------------- ------------ Balances, March 31, 1997 14,851,624 $ 14,851 $ 7,517,544 $ (4,757,370) $ 2,775,025 ============ ========= ============ ============= ============
The accompanying notes are an integral part of these financial statements.
MPM TECHNOLOGIES, INC. Consolidated Statement of Cash Flows for the Quarters Ended AND SUBSIDIARIES March 31, 1997, and 1996 and Cumulative Amounts from (A Development Stage Company) Inception (May 1, 1983) Through March 31, 1997 UNAUDITED Quarter Ended March 31 Cumulative 1997 1996 Amounts ----------- ----------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES Net (loss) $ (96,612) $ (74,213) $ (4,757,370) Add items not requiring the use of cash: Depreciation and amortization 11,261 3,100 632,001 Forgiveness of debt (101,509) Minority interest (9,682) (8,539) (888,414) Loss (gain) on sale of equipment (199,220) Stock granted for operating expenses 174,150 Stock options issued for services 533,975 Accrued interest payable converted to debt 56,631 Net (increase)/decrease in: Accounts receivable 31,511 (3,888) 6,596 Prepaid insurance (5,258) (6,695) Stock issued for prepaid expenses 40,000 Net increase/(decrease) in: Accounts payable (963) 2,000 2,974 Interest payable (5,420) 3,872 130,436 ----------- ----------- ------------- NET CASH FLOWS PROVIDED FROM OPERATING ACTIVITIES (75,163) (77,668) (4,376,445) ----------- ----------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES (Additions)/reductions: Mining claims (10,728) Deferred exploration and development costs (485,000) Property, plant and equipment (302,970) Mining leases (5,330) Leasehold improvements (9,357) Patents and licenses (72,856) Advance minimum royalties (23) (52,591) Partnership investment 90,749 Organization costs (1,296) Proceeds from: Sale of equipment 296,876 Redemption of bonds and deposits 3,091 Loans made (395,456) Less repayments 108,354 ----------- ----------- ------------- NET CASH FLOWS PROVIDED (USED) FROM INVESTING ACTIVITIES - (23) (836,514) ----------- ----------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES Proceeds of short term debt 200,000 2,483,112 Payments to settle debt (35,117) (36,406) (1,768,823) Issuance of long term debt 588,184 Sale of treasury stock 1,272 Contributed capital 1,920,038 Issuance of common stock 2,119,462 ----------- ----------- ------------- NET CASH FLOWS PROVIDED FROM FINANCING ACTIVITIES 164,883 (36,406) 5,343,245 ----------- ----------- ------------- NET INCREASE (DECREASE) IN CASH 89,720 (114,097) 130,286 CASH AT BEGINNING OF YEAR 40,566 136,744 ----------- ----------- ------------- CASH AT END OF YEAR $ 130,286 $ 22,647 $ 130,286 =========== =========== =============
The accompanying notes are an integral part of these financial statements. 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, 1996. 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, 1996. 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 March 31, 1997, should not necessarily be taken as indicative of the results of operations that my be expected for the entire year 1997. (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 500 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 First Quarter of 1997, 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. 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. In December, 1996, the Company announced it had purchased Unitel's 15% interest in the Skygas Venture for 1.2 million shares of common stock. Percentage of interest in the Skygas Venture is as follows: NuPower - 70%; MPM Technologies, Inc. - 15%; and USF Smogless - 15%. b) Liquidity During the First Quarter of 1997, the sole source of revenue was from nominal interest on bank accounts. Funds for operations were provided by cash reserves, reimbursement of expenses from 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 First Quarter of 1997. 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 3/31/97 COMPARED TO QUARTER ENDED 3/31/96 Results of Operations 1997 1996 Inc/(Dec) % of Change Working Capital (Deficit) (937,829) (900,099) (37,730) (4.2) Total Operating Expenses 93,348 69,791 23,557 33.8 Interest Expenses 13,637 13,490 147 1.1 Contract Services 18,000 (18,000) (100.0) Insurance 3,258 2,876 382 13.3 Legal and Accounting 8,760 10,204 (1,444) (14.2) Office and Postage 3,331 2,716 615 22.6 Reimbursed Expenses 3,680 9,888 (6,208) (62.8) Travel and Entertainment 10,215 6,361 3,854 60.6 Net Income (Loss) (96,612) (76,213) (22,399) (30.2) 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 No matters were submitted to a vote of the security holders during the First Quarter of 1997. Item 5. Other Information 8-K Filings On January 13, 1997, the Company announced that it is in compliance with the alternative to the minimum bid of $1.00 required by NASDAQ. As of December 31, 1996, the Market Value of the Public Float being $4,704,603 and Capital and Surplus being $2,832,968. The increase in Capital and Surplus is attributed to the purchase of 15% interest in the Skygas Venture for 1,200,000 shares of common stock valued at $1,200,000. 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. 5/9/97 /s/Robert D. Little - --------------------------- ----------------------------- (Date) Robert D. Little Secretary EX-27 2
5 3-MOS DEC-31-1997 MAR-31-1997 130286 0 0 0 0 142488 666993 433177 3126773 1080317 0 0 0 14851 2760175 3126773 0 0 0 0 93348 0 13637 (96612) 0 (96612) 0 0 0 (96612) (.01) (.01)
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