Part I
QUEST PRODUCTS CORPORATION
FINANCIAL STATEMENTS (Unaudited)
September 30, 1998
Financial Statements
----
Balance Sheet
Statements of Operations
Statement of Shareholders' (Deficit)
Statements of Cash Flows
Notes to Financial Statements
Management's Discussion and Analysis
Other Information
Signatures
QUEST PRODUCTS CORPORATION
Balance Sheet
September 30, 1998
(Unaudited)
Assets
Current Assets
Cash $ 643
Accounts receivable - net of allowance for
doubtful accounts of $1,000 54,843
Inventory 124,184
Prepaid expenses 1,496
--------
181,166
Furniture and Equipment - at cost - net of accumulated
depreciation of $21,371 27,044
Patents - at cost - net of accumulated amortization
of $12,093 37,342
Security Deposits 4,137
--------
$249,689
========
See notes to financial statements.
QUEST PRODUCTS CORPORATION
Balance Sheet
September 30, 1998
(Unaudited)
Liabilities and Shareholders' (Deficit)
Current Liabilities
1992 convertible debentures - including accrued
interest of $6,650 $ 16,650
Shareholder's loan 187,938
Accounts payable 576,466
Accrued officer and director's compensation 386,493
Loans from directors 33,952
Accrued expenses 35,508
-----------
1,237,007
-----------
Shareholders' (Deficit)
Series A Convertible Preferred Stock -
par value $.001 - authorized 600,000 shares -
no shares issued and outstanding
Series B Convertible Preferred Stock -
par value $.001 - authorized 5,000,000 shares -
no shares issued and outstanding
Common Stock - par value $.00003 -
authorized 200,000,000 shares -
155,912,985 shares issued and outstanding 4,677
Capital in excess of par 3,506,075
Accumulated (deficit) (4,498,070)
-----------
(987,318)
-----------
$ 249,689
===========
See notes to financial statements.
QUEST PRODUCTS CORPORATION
Statements of Operations
(Unaudited)
For the Nine Months Ended
September 30,
------------------------------------------
1998 1997
------------- -------------
Sales - net $ 454,278 $ 281,084
Cost of Sales 88,998 111,042
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365,280 170,042
------------- -------------
Selling Expenses 259,352 59,899
General and Administrative Expenses 419,419 364,695
------------- -------------
678,771 424,594
------------- -------------
(Loss) Before Other Income (Expenses) (313,491) (254,552)
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Other Income (Expenses)
Interest income 22 3,953
Interest (expense) (12,486) (28,945)
Settlement of trade payable claim -- 61,000
------------- -------------
(12,464) 36,008
------------- -------------
Net (Loss) $ (325,955) $ (218,544)
============= =============
(Loss) Per Share $ NIL $ NIL
============= =============
Weighted Average Number of Shares
Outstanding (to nearest 1,000,000) 155,000,000 110,000,000
============= =============
See notes to financial statements.
QUEST PRODUCTS CORPORATION
Statements of Operations
(Unaudited)
For the Quarter Ended
September 30,
------------------------------------------
1998 1997
------------- -------------
Sales - net $ 117,330 $ 94,843
Cost of Sales 15,749 38,273
------------- -------------
101,581 56,570
------------- -------------
Selling Expenses 63,302 13,960
General and Administrative Expenses 138,509 70,005
------------- -------------
201,811 83,965
------------- -------------
(Loss) Before Other Income (Expenses) (100,230) (27,395)
------------- -------------
Other Income (Expenses)
Interest income 7 217
Interest (expense) (4,162) (5,641)
------------- -------------
(4,155) (5,424)
------------- -------------
Net (Loss) $ (104,385) $ (32,819)
============= =============
(Loss) Per Share $ NIL $ NIL
============= =============
Weighted Average Number of Shares
Outstanding (to nearest 1,000,000) 155,000,000 113,000,000
============= =============
See notes to financial statements.
QUEST PRODUCTS CORPORATION
Statement of Shareholders' (Deficit)
For the Nine Months Ended September 30, 1998
(Unaudited)
Number of
Common Stock Amount Capital in
Shares $.00003 Excess of Accumulated
(Post-Split) Par Value Par Value Deficit
----------- ----------- ----------- -----------
Balance - December 31, 1997 138,083,713 $ 4,142 $ 3,360,410 ($4,172,115)
Proceeds from sale of stock 17,829,272 535 145,665 --
Net (Loss) -- -- -- (325,955)
----------- ----------- ----------- -----------
Balance - September 30, 1998
155,912,985 $ 4,677 $ 3,506,075 ($4,498,070)
=========== =========== =========== ===========
See notes to financial statements.
QUEST PRODUCTS CORPORATION
Statements of Cash Flows Page 1 of 2
(Unaudited)
For the Nine Months Ended
September 30,
-------------------------------
1998 1997
--------- ---------
Cash Flows from Operating Activities
Net (loss) $(325,955) $(218,544)
Adjustments to reconcile net (loss) to net cash
(used for) operating activities:
Depreciation and amortization 4,347 4,215
Expenses paid through the issuance of
restricted common stock -- 108,750
Accrued interest 12,486 15,541
(Increase) decrease in:
Accounts receivable (52,131) (6,171)
Inventories (55,723) 46,485
Advances to Automotive Marketing, Inc. -- (85,909)
Deferred preoperating and developmental costs -- (17,987)
Increase (decrease) in:
Notes payable - vendor -- (20,940)
Accounts payable (7,512) (82,311)
Accrued officers' and directors' compensation 243,000 27,500
Taxes payable -- 90
Loans from directors and officers (1,863) 1,246
Accrued expenses 10,206 (47,952)
--------- ---------
(173,145) (275,987)
--------- ---------
Cash Flows from Investing Activities
Acquisition of equipment -- (5,500)
Patent payments -- (2,435)
--------- ---------
-- (7,935)
--------- ---------
Cash Flows from Financing Activities
Proceeds from sale of common stock 146,200 60,000
Conversion/proceeds on senior subordinated debentures -- (10,000)
--------- ---------
146,200 50,000
--------- ---------
Net Decrease in Cash (26,945) (233,922)
Cash - beginning 27,588 260,372
--------- ---------
Cash - end $ 643 $ 26,450
========= =========
See notes to financial statements. |
