Nevada
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03-7392107
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
Number)
|
|
|
30
West Gude Drive, Rockville, Maryland
|
20850
|
(Address
of principal executive offices)
|
(Zip/Postal
Code)
|
|
|
(301)
728-8774
|
|
(Telephone
Number)
|
PART
I FINANCIAL INFORMATION
|
|
Item
1 Financial Statements
|
4
|
Consolidated Balance Sheet |
4
|
Consolidated Statements of Operations |
5
|
Consolidated Statements of Cash Flows |
6
|
Notes to Financial Statements |
7
|
7
|
|
|
|
Item 3 Controls and Procedures |
7
|
PART
II OTHER INFORMATION
|
|
|
|
Item
1 Legal Proceedings
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11
|
|
|
11
|
|
|
|
11
|
|
|
|
11
|
|
|
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Item
5 Other Information
|
11
|
|
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11
|
|
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12
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CONSOLIDATED
BALANCE SHEET
|
||||
March
31, 2005
|
||||
(unaudited)
|
||||
ASSETS
|
||||
Current
Assets:
|
||||
Restricted
Cash
|
$
|
45,518
|
||
Accounts
Receivable
|
14,093
|
|||
Other
Current Assets
|
||||
Total
current assets
|
59,611
|
|||
Equipment,
net
|
7,071
|
|||
Customer
base
|
35,417
|
|||
Total
assets
|
$
|
102,099
|
||
LIABILITIES
AND STOCKHOLDERS’ DEFECIT
|
||||
Current
Liabilities
|
||||
Convertible
note payable to stockholder
|
$
|
192,146
|
||
Convertible
note payable
|
3,000
|
|||
Accounts
Payable
|
253,248
|
|||
Accrued
expenses
|
60,242
|
|||
Total
current liabilities
|
508,636
|
|||
Commitments
and contingencies
|
||||
Stockholders'
Deficit
|
||||
Convertible
preferred stock, $.001 par value, 5,000,000
shares authorized, 911,553 shares issued
and outstanding
|
911
|
|||
Common
stock, $.001 par value, 100,000,000 shares
authorized, 1,290,206 shares issued and
outstanding
|
1,290
|
|||
Paid
in capital
|
22,635,788
|
|||
Retained
deficit
|
(23,044,526
|
)
|
||
Total
stockholders' deficit
|
(406,537 | ) | ||
Total
liabilities and stockholders' deficit
|
$
|
102,099
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|||||||
March
31, 2005
|
|||||||
(unaudited)
|
|||||||
|
Three
Months Ended March
31
|
||||||
2005
|
2004
|
||||||
Sales
|
$
|
52,375
|
$
|
117,540
|
|||
Cost
of Sales
|
11,332
|
82,691
|
|||||
Selling,
general and administrative expenses
|
77,170
|
290,274
|
|||||
Depreciation
|
115
|
12,698
|
|||||
Amortization
|
3,125
|
11,458
|
|||||
Bad
Debts
|
-
|
-
|
|||||
Income
(loss) from operations
|
(39,367
|
)
|
(279,581
|
)
|
|||
Interest
Expense
|
0
|
2,888
|
|||||
Net
income (loss)
|
$
|
(39,367
|
)
|
$
|
(282,469
|
)
|
|
Basic
and diluted income (loss) per share:
|
$
|
(0.09
|
)
|
$
|
(1.65
|
)
|
|
Weighted
Average Shares Outstanding
|
40,706,190
|
31,139,524
|
CONSOLIDATED
STATEMENTS CASH FLOWS
|
|||||||
March
31, 2005
|
|||||||
(unaudited)
|
|||||||
|
|||||||
Three
Months Ended March
31, 2005
|
|||||||
Cash
Flows Used in Operating Activities
|
2005
|
2004
|
|||||
Net
Income (Loss)
|
$
|
(39,367
|
)
|
$
|
(282,469
|
)
|
|
Adjustments
to reconcile net income (loss) to
|
|||||||
net
cash used in operating activities:
|
|||||||
Depreciation
and amortization
|
3,240
|
6,549
|
|||||
Stock
option expense
|
-
|
220,000
|
|||||
|
|||||||
Change
in:
|
|||||||
Accounts
Receivable
|
-
|
19,283
|
|||||
Other
Current Assets
|
(5,740
|
)
|
-
|
||||
Accounts
Payable
|
27,687
|
6,922
|
|||||
Trade
Accounts Receivable
|
554
|
20,925
|
|||||
Net
Cash Used In Operating Activities
|
(69,000
|
)
|
(47,356
|
)
|
|||
Cash
Flows Used In Investing Activities
|
|||||||
Purchases
of customer base
|
-
|
|
(50,000
|
)
|
|||
Cash
Flows Provided By Financing Activities
|
|||||||
Proceeds
from shareholder note payable
|
-
|
-
|
|||||
Exercise
of stock options
|
100,000
|
100,000
|
|||||
Payments
on note payable
|
(2,644
|
)
|
(2,644
|
)
|
|||
Net
cash from financing activities
|
-
|
97,356
|
|||||
Net
Change in Cash
|
-
|
-
|
|||||
Cash
- beginning of year
|
-
|
-
|
|||||
Cash
- End of Quarter
|
-
|
-
|
List
of Exhibits
|
|
31.1
|
|
31.2
|
Certifications
of CFO pursuant to Section
302 (Included in exhibit 31.1)
|
32.1
|
|
32.2
|
Section
1350 Certifications of CEO (Included in
exhibit 32.1)
|
WorldTeq Group International, Inc. | ||
|
|
|
By: | /s/ Jeff Lieberman | |
Jeff
Lieberman
Chief
Executive Officer, President,
Treasurer,
and Chairman
of the Board
|
|
|
|
Date: June 15, 2005 | By: | /s/ Jeff Lieberman |
Jeff
Lieberman
Chief
Executive Officer, President,
Treasurer,
and Chairman of the
Board
|