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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934.
For the quarter ended December 31, 2003 Commission file number 0-16734
C.E.C. INDUSTRIES CORP.
(Exact name of registrant as specified in its charter)
Nevada 87-0217252
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
136 Arbor Way
Henderson, Nevada 89074
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (702) 768-2960
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.
Yes X No _____
As of December 31, 2003, there were 56,874,707 shares of common stock
outstanding.
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheet as of March 31, 2003 and December 31, 2003 3-4
Statement of Operations for the Quarters
ended December 31, 2002 and 2003 5
Statement of Cash Flows for the Quarters ended
December 31, 2002 and 2003 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operation 7
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 8
Item 2. Changes in Securities 8
Item 3. Defaults by the Company upon its Senior Securities 8
Item 4. Submission of Matter to a Vote of Security Holders 8
Item 5. Other Information 8
Item 6. Exhibits and Reports of Form 8-K 8
SIGNATURES 8
Page Two
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
C.E.C. Industries Corp.
(A Development Stage Company)
BALANCE SHEET
AS AT
December 31, 2003 and March 31, 2003
December 31, 2003 March 31, 2003
ASSETS
CURRENT ASSETS
Cash 4,905.00 495.00
Security Deposits 400.00
----------- -----------
Total Current Assets 5,305.00 495.00
OTHER ASSETS
Technology Rights 240,000.00
Oil & Gas Interests 116,415.00 116,415.00
----------- -----------
TOTAL OTHER ASSETS 356,415.00 116,415.00
TOTAL ASSETS $361,720.00 $116,910.00
----------- -----------
----------- -----------
-UNAUDITED-
See accompanying notes to financial statements
Page Three
C.E.C. Industries Corp.
(A Development Stage Company)
BALANCE SHEET
AS AT
December 31, 2003 and March 31, 2003
LIABILITIES & EQUITY
December 31, 2003 March 31, 2003
CURRENT LIABILITIES
Accounts Payable $782,745.00 $774,336.00
Judgement 207,306.00 207,306.00
Notes Payable 150,000.00
------------- -----------
Total Current Liabilities $1,140,051.00 $981,642.00
------------- ------------
Total Current Liabilities 976,952.00 976,952.00
------------- ------------
------------- ------------
EQUITY
Common Stock-100,000,000, common stock
par value .001 authorized.
Issued and outstanding at March 31, 2003 2,095,555.00 2,072,990.00
34,309,707 shares; issued and 7,374,570.00 6,366,230.00
outstanding at December 31, 2003,
56,874,707 shares.
Retained earnings or (Deficit accumulated
during development stage) (10,248,456.00) (9,303,952.00)
------------- ------------
Total Stockholders' Equity (778,331.00) (864,732.00)
------------- ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $361,720.00 $116,910.00
------------- ------------
------------- ------------
-UNAUDITED-
See accompanying notes to financial statements
Page Four
C.E.C. Industries Corp.
(A Development Stage Company)
STATEMENT OF OPERATIONS
FOR THE QUARTERS ENDED
December 31, 2003 and December 31, 2002
December 31, 2003 December 31, 2002
REVENUE
Revenue 160.00 0.00
COSTS AND EXPENSES
General and Administrative 30,685.00 45.00
Consulting 730,905.00 0.00
Marketing Expenses 122,754.00 0.00
Total Costs and Expenses 884,344.00 45.00
----------- -----------
Net Income or (Loss) (884,184.00) (45.00)
----------- -----------
----------- -----------
Weighted average number of common
shares outstanding 41,555,818 408,318
Net Loss
Per Share nil nil
-UNAUDITED-
See accompanying notes to financial statements
Page Five
C.E.C. Industries Corp.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
FOR PERIOD
FOR THE QUARTERS ENDED
December 31, 2003 and December 31, 2002
CASH FLOWS FROM OPERATING ACTIVITIES
December 31, 2003 December 31, 2002
Net Income or (Loss) (884,184.00) (45.00)
Adjustments to Reconcile Net Income to
Net Cash Provided
Non cash expenses due to stock issues 730,695.00 0.00
(Increase) Decrease in Prepaid Expenses (400.00 0.00
Increase/(Decrease) in Current Liabilities 8,409.00 0.00
------------ ------------
Net Cash provided by Operating Activities (145,480.00) (45.00)
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash provided from Investing Activities 150,000.00 0.00
------------ ------------
150,000.00 0.00
CASH FLOWS FROM FINANCING ACTIVITIES
Net Cash provided by Financing Activities 0.00 0.00
------------ ------------
0.00 0.00
Balance at beginning of period 385.00 386.00
Net Increase (Decrease) in cash 4,520.00 (45.00)
Balance at end of period 4,905.00 341.00
Supplementary Information 0.00 0.00
Interest paid 110.00 45.00
Taxes paid 0.00 0.00
-UNAUDITED-
See accompanying notes to financial statements
Page Six
C.E.C. INDUSTRIES CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Statement of Information Furnished
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-Q instructions and in the opinion of
management contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of
December 31, 2003 the results of operation for the nine months ended
December 31, 2003 and 2002 and the cash flows for the nine months ended
December 31, 2003 and 2002. These results have been determined on the basis
of generally accepted accounting principles and practices and applied
consistently with those used in the preparation of the Company's 2002 Annual
Report on Form 10-K.
Certain information and footnote disclosures normally included in financial
statements presented in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that the
accompanying consolidated financial statement be read in conjunction with the
financial statements and notes thereto incorporated by reference in the
Company's 2002 Annual Report on Form 10-K.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Royalty income for the quarter ended December 31, 2003 was $0 compared to
royalty income for the quarter ended December 31, 2002 of $382. Sales from
paycards, a new business segment, were $160 for the quarter ended
December 31, 2003.
Selling, General and Administrative Expenses increased from $45 in 2002 to
$30,685 in 2003. The increase is attributed to the acquisition of PayCard
Solutions, Inc. Consulting expenses were $0 in 2002 and were $730,905 in 2003.
This is attributed to the acquisition of PayCard Solutions, Inc.
Page Seven
C.E.C. INDUSTRIES CORP.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults by the company upon its Senior Securities
None
Item 4. Submission of Matter to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports of Form 8-K
The company filed two 8-K's during this period. One filing reported
a change in the company's auditor. The other filing reported the acquisition
of PayCard Solutions, Inc., a firm that specializes in the electronic payment
solutions market.
C.E.C. INDUSTRIES CORP.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
C.E.C. INDUSTRIES CORP.
By: /s/ Brian Dvorak Dated: February 19, 2004
---------------------
Brian Dvorak, President