Form: 10QSB

Optional form for quarterly and transition reports of small business issuers

August 13, 2001

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

Published on August 13, 2001




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 June 30, 2001

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

For the transition period from to

Commission File Number 000-25809

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 June 30, 2001: 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

Condensed Balance Sheets - June 30, 2001 4
(unaudited) and December 31, 2000

Condensed Statements of Operations 5
(unaudited) for the Six Months Ended June
30, 2001 and 2000, and for the Period
from November 1, 1985 (Inception) to June
30, 2001

Statement of Stockholders Equity 6
(Deficit)

Statements of Cash Flows (unaudited) for 10
the Six Months Ended June 30, 2001 and
2000, and from the Period from November
1, 1985 (Inception) to June 30, 2001

Notes to Consolidated Financial 11
Statements

Item 2. Management's Discussion and 12
Analysis of Financial Condition

PART II. Other Information

Item 6. Exhibits and Reports on Form 8-K 13

Signatures 13

(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

June 30, December 31,
2001 2000
(Unaudited)
CURRENT ASSETS

Cash $ 325 $ 740

Total Current Assets 325 740

TOTAL ASSETS $ 325 $ 740


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

Accounts payable $ 584 $ 1,093
Accounts payable - related party 12,700 10,200

Total Liabilities 13,284 11,293

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 (620,462) (618,056)

Total Stockholders' Equity (Deficit) (12,959) (10,553)

TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 325 $ 740

4

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



From
Inception on
November 1,
For the For the 1985 Through
Six Months Ended Three Months Ended June 30,
2001 2000 2001 2000 2001

REVENUES $ - $ - $ - $ - $ -

EXPENSES (2,406) (2,719) (741) (1,089) (24,959)

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

NET LOSS $ (2,406) $ (2,719) $ (741) $ (1,089) $(620,462)

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


5


SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)


Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage

Balance,
November 1, 1985 - $ - $ - $ -

Issuance of 500,000 shares
of common stock to Officers
and Directors for cash on
November 1, 1985 at
$0.02 per share 500,000 500 9,500 -

Cancellation of 140,000
shares on February 7, 1986 (140,000) (140) 140 -

Cancellation of 300,000 shares
on October 1, 1986 (300,000) (300) 300 -

Issuance of 1,000,000 shares
of common stock to the public
offered March 26, 1986 at
$0.10 per share 1,000,000 1,000 99,000 -

Deferred offering costs
offset against additional
paid-in capital - - (18,678) -

Issuance of 10,700,000
shares of common stock
October 10, 1986 at $0.05
per share 10,700,000 10,700 483,251

Issuance of 50,000 shares
for promotional services at
$0.001 per share 50,000 50 - -

Accumulated losses from
formation on November 1, 1985
through December 31, 1987 - - - (502,196)

Balance,
December 31, 1987 11,810,000 $ 11,810 $ 573,513 $ (502,196)


6

SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit) (Continued)


Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage

Balance,
December 31, 1987 11,810,000 $ 11,810 $ 573,513 $ (502,196)

Net loss for the year ended
December 31, 1988 - - - (92,783)

Balance,
December 31, 1988 11,810,000 11,810 573,513 (594,979)

Cash contributed to additional
paid-in capital - - 10,180 -

Net loss for the year ended
December 31, 1989 - - - (524)

Balance,
December 31, 1989 11,810,000 11,810 583,693 (595,503)

Net loss for the year ended
December 31, 1990 - - - -

Balance,
December 31, 1990 11,810,000 11,810 583,693 (595,503)

Net loss for the year ended
December 31, 1991 - - - (758)

Balance,
December 31, 1991 11,810,000 $ 11,810 $ 583,693 $ (596,261)


7

SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit) (Continued)


Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage

Balance,
December 31, 1991 11,810,000 $ 11,810 $ 583,693 $ (596,261)

Net loss for the year ended
December 31, 1992 - - - (651)

Balance,
December 31, 1992 11,810,000 11,810 583,693 (596,912)

Issuance of 1,000,000 shares
of common stock to officer for
cash June 7, 1993 at $0.001
per share 1,000,000 1,000 - -

Net loss for the year ended
December 31, 1993 - - - (2,513)

Balance,
December 31, 1993 12,810,000 12,810 583,693 (599,425)

Net loss for the year ended
December 31, 1994 - - - -

Balance,
December 31, 1994 12,810,000 12,810 583,693 (599,425)

Issuance of 11,000,000 shares
of common stock to officer for
cash at $0.001 per share 11,000,000 11,000 - -

Net loss for the year ended
December 31, 1995 - - - (438)

Balance,
December 31, 1995 23,810,000 $ 23,810 $ 583,693 $ (599,863)


8

SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit) (Continued)


Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage

Balance,
December 31, 1995 23,810,000 $ 23,810 $ 583,693 $ (599,863)

Net loss for the year ended
December 31, 1996 - - - (1,256)

Balance,
December 31, 1996 23,810,000 23,810 583,693 (601,119)

Net loss for the year ended
December 31, 1997 - - - (1,373)

Balance,
December 31, 1997 23,810,000 23,810 583,693 (602,492)

Net loss for the year ended
December 31, 1998 - - - (770)

Balance,
December 31, 1998 23,810,000 23,810 583,693 (603,262)

Net loss for the year ended
December 31, 1999 - - - (9,343)

Balance,
December 31, 1999 23,810,000 23,810 583,693 (612,605)

Net loss for the year ended
December 31, 2000 - - - (5,451)

Balance, December 31, 2000 23,810,000 23,810 583,693 (618,056)

Net loss for the six months
ended June 30, 2001
(unaudited) - - - (2,406)

Balance, June 30, 2001
(unaudited) 23,810,000 $ 23,810 $ 583,693 $ (620,462)


9

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


From
Inception on
November 1,
For the Six Months Ended 1985 through
June 30, June 30,
2001 2000 2001

OPERATING ACTIVITIES:

Net loss $ (2,406) $ (2,719) $ (620,462)
Adjustments to reconcile net loss to net
cash (used) by operating activities:
Shares issued for services - - 50
Changes in operating assets and liabilities:
Increase in accounts payable and
accounts payable - related party 1,991 3,420 13,284

Net Cash Provided (Used) by
Operating Activities (415) 701 (607,128)

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 (415) 701 325

CASH AT BEGINNING OF
PERIOD 740 178 -

CASH AT END OF PERIOD $ 325 $ 879 $ 325

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


10


The accompanying notes are an integral part of these financial statements.

SICLONE INDUSTRIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2001 and December 31, 2000

NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION

The accompanying unaudited condensed consolidated
financial statements have been prepared by the Company
pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and
footnote disclosures normally included in financial
statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted in
accordance with such rules and regulations. The
information furnished in the interim condensed
consolidated financial statements include normal
recurring adjustments and reflects all adjustments,
which, in the opinion of management, are necessary for a
fair presentation of such financial statements. Although
management believes the disclosures and information
presented are adequate to make the information not
misleading, it is suggested that these interim condensed
consolidated financial statements be read in conjunction
with the Company's most recent audited financial
statements and notes thereto included in its December 31,
2000 Annual Report on Form 10-KSB. Operating results for
the six months ended June 30, 2001 are not necessarily
indicative of the results that may be expected for the
year ending December 31, 2001.

NOTE 2 - 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. In the interim, an officer
of the Company has committed to meeting its operating
expenses.

11

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.

Six Month periods Ended June 30, 2000 and 1999

The Company had no revenue from continuing operations for the six-
month periods ended June 30, 2001 and 2000.

General and administrative expenses for the six month periods
ended June 30, 2001 and 2000, consisted of general corporate
administration, legal and professional expenses, and accounting
and auditing costs. These expenses were $2,406 and $2,719 for
the six-month periods ended June 30, 2001 and 2000, respectively.

As a result of the foregoing factors, the Company realized a net
loss of $2,406 for the six months ended June 30, 2001, as
compared to a net loss of $2,719 for the same period in 2000.

Liquidity and Capital Resources

At June 30, 2001, the Company had cash on hand of $325 compared
to $740 at December 31, 2000. The Company has accounts payable
in the amount of $13,284 for the period ending June 30, 2001 and
$11,293 at December 31, 2000.

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 may accept
loans from officers, seek equity financing or other debt
financing arrangements if necessary. 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.

12



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 June 30, 2001.

Exhibits: None

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: August 10, 2001 By: /s/ Bradley S. Shepherd
Bradley S. Shepherd,
President, Secretary and Treasurer

13