Form: 10QSB

Optional form for quarterly and transition reports of small business issuers

November 8, 2000

Documents

10QSB: Optional form for quarterly and transition reports of small business issuers

Published on November 8, 2000




U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-QSB

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2000

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No. 025908

SICLONE INDUSTRIES, INC.
(Exact name of small business issuer as specified in its charter)

Nevada 87-0429748
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)

6269 Jamestown Court, Salt Lake City, Utah 84121
(Address of principal executive offices)

801-566-6627
(Issuer's telephone number)

Not Applicable
(Former name, address and fiscal year, if changed since last report)

Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months
(or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past
90 days. Yes [ X] No [ ]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:

Check whether the registrant has filed all documents and reports required to
be filed by Sections 12, 13, or 15(d) of the Exchange Act subsequent to the
distribution of securities under a plan confirmed by a court.
Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

State the number of shares outstanding of each of the issuer's classes of
common equity, as of September 30, 2000: 23,810,000 shares of common stock.

Transitional Small Business Format: Yes [ ] No [ X ]
FORM 10-QSB
SICLONE INDUSTRIES, INC.

INDEX
Page
PART I. Financial Information

Item I. Financial Statements (unaudited) 3

Balance Sheets - September 30, 2000 4
(unaudited) and December 31, 1999

Statements of Operations (unaudited) for 5
the Three and Nine Months Ended September
30, 2000 and 1999, and for the Period
from November 1, 1985 (Inception) to
September 30, 2000

Statements of Cash Flows (unaudited) for 6
the Three and Nine Months Ended September
30, 2000 and 1999, and from the Period
from November 1, 1985 (Inception) to
September 30, 2000

Notes to Consolidated Financial 7
Statements

Item 2. Management's Discussion and
Analysis of Financial Condition 9

PART II. Other Information

Item 6. Exhibits and Reports on Form 8-K 10

Signatures 11

(Inapplicable items have been omitted)



2



PART I.
Financial Information

Item 1. Financial Statements (unaudited)

In the opinion of management, the accompanying unaudited financial statements
included in this Form 10-QSB reflect all adjustments (consisting only of
normal recurring accruals) necessary for a fair presentation of the results
of operations for the periods presented. The results of operations for the
periods presented are not necessarily indicative of the results to be
expected for the full year.



3

SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Balance Sheets


ASSETS

September 30, December 31,
2000 1999
(Unaudited)
CURRENT ASSETS

Cash $542 $178

Total Current Assets 542 178

TOTAL ASSETS $542 $178


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable $ 1,303 $280
Accounts payable - related party (Note 2) 8,700 5,000

Total Liabilities 10,003 5,280

STOCKHOLDERS' EQUITY (DEFICIT)

Preferred stock: 5,000,000 shares authorized at
$0.001 par value; -0- shares issued and outstanding - -
Common stock: 30,000,000 shares authorized
at $0.001 par value; 23,810,000 shares issued and
outstanding 23,810 23,810
Additional paid-in capital 583,693 583,693
Deficit accumulated during the development stage(616,964) (612,605)

Total Stockholders' Equity (Deficit) (9,461) (5,102)

TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $542 $178


4


SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Statements of Operations
(Unaudited)



From
Inception on
For the For the November 1,
Nine Months Ended Three Months Ended 1985 Through
September 30, September30, September 30,
2000 1999 2000 1999 2000

REVENUES $- $- $- $- $-

EXPENSES (4,359) (6,304) (1,640) (1,632) (21,461)

LOSS FROM DISCONTINUED
OPERATIONS - - - - (595,503)

NET LOSS $(4,359) $(6,304) $(1,640) $(1,632) $(616,964)

BASIC LOSS PER SHARE $(0.00) $(0.00) $(0.00) $(0.00)


5
SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)



From
Inception on
November 1,
For the Nine Months Ended For the Three Months Ended September 30,
September 30, September 30, 2000
2000 1999 2000 1999

OPERATING ACTIVITIES:
Net loss $(4,359) $(6,304) $(1,640) $(1,632) $(616,964)
Adjustments to reconcile
net loss to net cash (used)
by operating activities: - - - - 50
Shares issued for services
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable
and accounts payable - related party
4,723 3,960 1,303 1,320 10,003

Net Cash Provided (Used) by
Operating Activities 364 (2,344) (337) (312) (606,911)

INVESTING ACTIVITIES: - - - - -

FINANCING ACTIVITIES:

Additional capital contributed
- - - - 10,180
Stock offering costs - - - - (18,678 )
Issuance of common stock - - - - 615,951

Net Cash Provided by
Financing Activities - - - - 607,453

INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 364 (2,344) (337) (312) 542

CASH AT BEGINNING OF
PERIOD 178 4,241 879 2,209 _

CASH AT END OF PERIOD $542 $1,897 $ 542 $1,897 $542

CASH PAID FOR
Interest $- $ $ $ $ -
Income taxes $- $ $ $ $ -

6

SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Organization

The Company was incorporated in the State of Delaware on
November 1, 1985 under the name McKinnely Investments,
Inc. In November 1986, the Company changed its name to
Acculine Industries, Incorporated and in May 1988 to
Siclone Industries, Inc.

The Company was incorporated for the purpose of providing
a vehicle, which could be used to raise capital and seek
business opportunities.

b. Accounting Method

The Company's financial statements are prepared using the
accrual method of accounting. The Company has elected a
calendar year end.

c. Cash and Cash Equivalents

Cash equivalents include short-term, highly liquid
investments with maturities of three months or less at
the time of acquisition.

d. Basic Loss Per Share

The computations of basic loss per share of common stock
are based on the weighted average number of shares
outstanding during the period.


Forthe For the
Nine Months Ended Three Months Ended
September 30, September 30,
2000 1999 2000 1999
Numerator - incom
(loss) $(4,359) $(6,304) $(1,640) $(1,632)

Denominator - weighted
average number of
shares outstanding
23,810,000 23,810,000 23,810,000 23,810,000

Basic loss per share
$(0.00) $(0.00) $(0.00) $(0.00)

7

SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

e. Provision for Taxes

The Company has net operating loss carryforwards totaling
approximately $617,000 that may be offset against future
taxable income through 2020. No tax benefit has been
reported in the financial statements, because the Company
believes there is a 50% or greater chance the loss
carryforwards will expire unused. Accordingly, the
potential tax benefits of the loss carryforwards are
offset by a valuation allowance of the same amount.

f. Use of Estimates

The preparation of financial statements in conformity
with generally accepted accounting principles requires
management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts
of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

g. Unaudited Financial Statements

The accompanying unaudited financial statements include
all of the adjustments which, in the opinion of
management, are necessary for a fair presentation. Such
adjustments are of a normal recurring nature.

NOTE 2 - RELATED PARTY TRANSACTIONS

During 1993, the Company's president purchased 1,000,000
shares of common stock for $1,000. During 1995, the
Company's president purchased an additional 11,000,000
shares of common stock for $11,000.

During 1999 and 2000, the Company=s president loaned
$5,000 and $3,700, respectively, to cover operating
expenses. The amount is non-interest bearing and due on
demand.

NOTE 3 - GOING CONCERN

The Company's financial statements are prepared using
generally accepted accounting principles applicable to a
going concern which contemplates the realization of
assets and liquidation of liabilities in the normal
course of business. However, the Company has little cash
and has experienced losses from inception. Without
realization of additional adequate financing, it would be
unlikely for the Company to pursue and realize its
objectives. The Company intends to seek a merger with an
existing operating company.
8

Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION OR PLAN OF OPERATION

Forward-Looking Statement Notice

When used in this report, the words "may," "will," "expect,"
"anticipate," "continue," "estimate," "project," "intend," and
similar expressions are intended to identify forward-looking
statements within the meaning of Section 27a of the Securities
Act of 1933 and Section 21e of the Securities Exchange Act of
1934 regarding events, conditions, and financial trends that may
affect the Company's future plans of operations, business
strategy, operating results, and financial position. Persons
reviewing this report are cautioned that any forward-looking
statements are not guarantees of future performance and are
subject to risks and uncertainties and that actual results may
differ materially from those included within the forward-looking
statements as a result of various factors. Such factors are
discussed under the "Item 6. Management's Discussion and
Analysis of Financial Condition or Plan of Operations," and also
include general economic factors and conditions that may directly
or indirectly impact the Company's financial condition or results
of operations.

Three Month periods Ended September 30, 2000 and 1999

The Company had no revenue from continuing operations for the
three-month period ended September 30, 2000 and 1999.

General and administrative expenses for the three month periods
ended September 30, 2000 and 1999, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs. These expenses were $1,640 and $1,632 for
the three-month periods ended September 30, 2000 and 1999,
respectively.

As a result of the foregoing factors, the Company realized a net
loss of $1,640 for the three months ended September 30, 2000, as
compared to a net loss of $1,632 for the same period in 1999.

Nine Month periods Ended September 30, 2000 and 1999

The Company had no revenue from continuing operations for the
nine-month period ended September 30, 2000 and 1999.

General and administrative expenses for the nine month period
ended September 30, 2000 and 1999, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs. These expenses were $4,359 and $6,304 for
the nine month periods ended September 30, 2000 and 1999,
respectively.

As a result of the foregoing factors, the Company realized a net
loss of $4,359 for the nine months ended September 30, 2000, as
compared to a net loss of $6,304 for the same period in 1999.

Liquidity and Capital Resources

At September 30, 2000, the Company had working capital of
approximately $542, as compared to a working capital of
approximately $178 at December 31, 1999.

Management believes that the Company has sufficient cash and
short-term investments to meet the anticipated needs of the
Company's operations through at least the next 12 months.
However, there can be no assurances to that effect, as the
Company has no significant revenues and the Company's need for
capital may change dramatically if it acquires an interest in a
business opportunity during that period. The Company's current
operating plan is to (i) handle the administrative and reporting
requirements of a pubic company, and (ii) search for potential
businesses, products, technologies and companies for acquisition.
At present, the Company has no understandings, commitments or
agreements with respect to the acquisition of any business
venture, and there can be no assurance that the Company will
identify a business venture suitable for acquisition I the
future. Further, there can be no assurance that the Company
would be successful in consummating any acquisition on favorable
terms or that it will be able to profitably manage any business
venture it acquires.
9

PART II. OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K.

Reports on Form 8-K: No reports on Form 8-K were filed by the
Company during the quarter ended September 30, 2000.

Exhibits: Included only with the electronic filing of this report
is the Financial Data Schedule for the nine month period ended
September 30, 2000 (Exhibit ref. No. 27).
10

SIGNATURES

In accordance with the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned thereunto
duly authorized.

SICLONE INDUSTRIES, INC.


Date:11/6/2000
By:/s /Bradley S. Shepherd ________
Bradley S. Shepherd,
President, Secretary and Treasurer

11