SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2005
OR
|X| TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT OF 1934
From the transition period from ___________ to ____________.
Commission File Number 0-29935
MICRO BIO-MEDICAL WASTE SYSTEMS, INC.
(Exact name of small business issuer as specified in its charter)
Nevada 33-0677140
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
20700 Ventura Blvd., #227, Woodland Hills, California 91364
(Address of principal executive offices)
(818) 227-9494
(Issuer's telephone number)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the past
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past
90 days:
Yes: |X| No: |_|
As of May 18, 2005 there were 4,824,465 shares of Common Stock of the issuer
outstanding.
Micro Bio-Medical Waste Systems, Inc.
BALANCE SHEET
March 31, 2005
(unaudited)
ASSETS
Assets
Advance - related party $ 20,000
===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable and accrued expenses $ 164,925
Accounts payable - related party 31,886
Advances - related party 45,520
-----------
Total current liabilities 242,331
-----------
STOCKHOLDERS' DEFICIT:
Common stock, $.001 par value, 500,000,000 shares
authorized, 4,824,465 shares issued and outstanding 4,824
Additional paid in capital 2,626,646
Accumulated deficit (2,853,801)
-----------
Total Stockholders' Deficit (222,331)
-----------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 20,000
===========
Micro Bio-Medical Waste Systems, Inc.
STATEMENTS OF OPERATIONS
Three Months Ended March 31, 2005 and 2004
(unaudited)
2005 2004
-------------- --------------
Costs and Expenses:
General and administrative $ -- $ 23,181
-------------- --------------
Net loss $ -- $ (23,181)
============== ==============
Net loss per share:
Net loss basic and diluted $ (0.00) $ (0.00)
============== ==============
Weighted average shares outstanding:
Basic and diluted 4,824,465 4,394,133
============== ==============
Micro Bio-Medical Waste Systems, Inc.
STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 2005 and 2004
(unaudited)
2005 2004
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ -- $ (23,181)
Adjustments to reconcile net deficit to cash used
by operating activities:
Net change in:
Accounts payable and accrued expenses -- 356
---------- ----------
CASH FLOWS USED IN OPERATING ACTIVITIES -- (22,825)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Advance to a related party -- (20,000)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances-related party -- 45,520
---------- ----------
NET DECREASE IN CASH -- 2,695
Cash, beginning of period -- --
---------- ----------
Cash, end of period $ -- $ 2,695
========== ==========
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid -- --
Income taxes paid -- --
Micro Bio-Medical Waste Systems, Inc.
NOTES TO FINANCIAL STATEMENTS
(unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited interim financial statements of Micro Bio-Medical
Waste Systems, Inc. have been prepared in accordance with accounting principles
generally accepted in the United States of America and the rules of the
Securities and Exchange Commission ("SEC"), and should be read in conjunction
with the audited financial statements and notes thereto contained in the
Company's registration statement filed with the SEC on Form 10-KSB. In the
opinion of management, all adjustments, consisting of normal recurring
adjustments, necessary for a fair presentation of financial position and the
results of operations for the interim periods presented have been reflected
herein. The results of operations for interim periods are not necessarily
indicative of the results to be expected for the full year. Notes to the
financial statements which would substantially duplicate the disclosure
contained in the audited financial statements for the most recent fiscal year
end December 31, 2004 as reported in Form 10-KSB, have been omitted.
NOTE 2 - ADVANCES RECEIVABLE - RELATED PARTY
Micro Bio-Medical has advanced $20,000 to a related party. The advance is due on
demand.
NOTE 3 - ADVANCES - RELATED PARTY
Micro Bio-Medical has received advances from one shareholder totaling $45,520.
The advances are unsecured and are due upon demand.
NOTE 4 - COMMON STOCK
The board of directors approved a 20 for 1 stock split in January 2004. All
stock information is shown post split on these financial statements.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
This report contains forward looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended and Section 21E of the Securities
Exchange Act of 1934, as amended. The Company's actual results could differ
materially from those set forth on the forward looking statements as a result of
the risks set forth in the Company's filings with the Securities and Exchange
Commission, general economic conditions, and changes in the assumptions used in
making such forward looking statements.
GENERAL
Micro Bio-Medical Waste Systems, Inc. formerly known as 20/20 Networks, Inc.
(the "Company") was incorporated on August 31, 1995 as "Visioneering
Corporation" under the laws of the State of Nevada, to engage in any lawful
corporate undertaking, including, but not limited to, selected mergers and
acquisitions.
In December, 2003, the Company entered into an Agreement with its majority
shareholder, Crown Partners, Inc. ("Crown") to acquire Crown's wholly owned
subsidiary, Sanitec Services of Hawaii, Inc. The Company is obligated to pay
Crown the sum of $550,000 and issue five percent of its common stock to Crown.
The $550,000 was due within 60 days of the agreement but the Company has been
unable to pay the sum owing, so that the transaction with Crown has not been
closed. As part of the transaction with Crown, the Company changed its name to
"Micro Bio-Medical Waste Systems, Inc." and approved a twenty-for-one forward
stock split which was implemented in January, 2004.
Once the Company is able to pay Crown the money it owing to it, the Company will
assume management and control of Crown's Hawaiian operations. The Company
anticipates engaging in the medical waste disposal business and other related
business ventures.
The Company presently shares office space provided to it at no cost by a
shareholder of the Company.
As of March 31, 2005, the Company had no employees.
RESULTS OF OPERATIONS
For the three month periods ended March 31, 2005 and 2004, the Company had no
revenues. The Company's expenses for the three months ended March 31, 2005 were
approximately $0, representing general and administrative expenses. The Company
recorded a net loss of $0 for the period ended March 31, 2005. The Company's
expenses for the three months ended March 31, 2004 were $23,181 representing
general and administrative costs. The Company recorded a net loss of ($23,181)
for the period. The net loss per share was $0.00 for the period ended March 31,
2005 compared to a net loss of $0.00 per share for the period ended March 31,
2004.
For the three months ended March 31, 2005, the Company had no assets other than
an advance receivable from a related party. At December 31, 2004, the Company
had no assets other than an advance receivable from a related party. The
Company's current liabilities for the three months ended March 31, 2005 were
approximately $242,000 compared to liabilities of approximately $242,000 for the
year ended December 31, 2004. Shareholders' deficit for the three months ended
March 31, 2005 was approximately $242,000 compared to total shareholders'
deficit of $242,000 for the year ended December 31, 2004.
The Company anticipates that until a business combination is completed with an
acquisition candidate or its completes its transaction with Crown, it will not
generate revenues and may operate at a loss after completing a business
combination, depending upon the performance of the acquired business.
The Company will attempt to carry out its business plan as discussed above. The
Company cannot predict to what extent its lack of liquidity and capital
resources will hinder its business plan prior to the consummation of a business
combination.
LIQUIDITY AND CAPITAL RESOURCES
Since inception, the Company has experienced no significant change in liquidity
or capital resources or stockholders equity other than the receipts of proceeds
from offerings of its capital stock. The Company received $250,000 from an
offering conducted under Rule 504 of Regulation D in 1999. The Company also
raised approximately $158,000 from the issuance of 7,200,000 shares of the
Company's common stock prior to 1997. In 1997, the Company raised an additional
$345,000 from the sale of its common stock. The Company's balance sheet as of
March 31, 2005 reflects no assets and limited liabilities. Further, there exist
no agreements or understandings with regard to loan agreements by or with the
Officers, Directors, principals, affiliates or shareholders of the Company.
The Company is currently working to raise the funds necessary to pay Crown so
that the proposed acquisition of the Hawaiian medical waste business can be
completed, providing the Company with a source of revenue. The Company has thus
far been unsuccessful in locating and raising the necessary capital and cannot
predict how much more of an extension Crown will give it to pay the funds owing
before seeking to terminate the proposed transaction with the Company.
The Company will attempt to carry out its plan of business and hopes to raise
the capital to complete the Crown transaction as soon as possible. The Company
cannot predict to what extent its lack of liquidity and capital resources will
hinder its business plan.
NEED FOR ADDITIONAL FINANCING
The Company's existing capital is not sufficient to meet the Company's cash
needs, including the costs of compliance with the continuing reporting
requirements of the Securities Exchange Act of 1934, as amended. Once a business
combination is completed, the Company's need for additional financing will
increase substantially.
No commitments to provide additional funds have been made by management or other
stockholders. Accordingly, there can be no assurance that any funds will be
available to the Company to allow it to cover its expenses.
The Company might seek to compensate providers of services by issuing common
stock in lieu of cash.
DESCRIPTION OF PROPERTIES
The Company presently shares office space provided by a shareholder at no cost
to the Company.
EMPLOYEES
As of March 31, 2005, the Company had no employees.
ITEM 3. CONTROLS AND PROCEDURES
We maintain controls and procedures designed to ensure that information required
to be disclosed in the reports that we file or submit under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported within the
time periods specified in the rules and forms of the Securities and Exchange
Commission. Based upon their evaluation of those controls and procedures
performed as of the end of the period covered by this report, our chief
executive officer and principal financial officer concluded that our disclosure
controls and procedures were adequate.
There were no significant changes in the Company's internal controls or in other
factors that could significantly affect these controls subsequent to the date of
their evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
PART II
Items No. 1, 2, 3, 4 and 5 - Not Applicable.
Item No. 6 - Exhibits and Reports on Form 8-K
(a) No reports on Form 8-K were filed during the quarter ended March 31, 2005.
(b) Exhibits
None
SIGNATURES
In accordance with 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.
MICRO BIO-MEDICAL WASTE SYSTEMS, INC.
By /s/ Charles Smith
-----------------------------------------
Charles Smith, CEO, CFO
Date: May 31, 2005