U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
[X] Quarterly Report Pursuant To Section 13 Or 15(d) Of The Securities
Exchange Act Of 1934
For the quarterly period ended FEBRUARY 28, 2005
[ ] Transition Report Under Section 13 Or 15(D) Of The Securities
Exchange Act Of 1934
Commission File Number 000-50298
INTEGRATED SECURITIES TECHNOLOGIES, INC.
----------------------------------------
(Name of small business issuer in its charter)
NEVADA 98-0376008
------ ----------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
SUITE 1500, 885 WEST GEORGIA STREET
VANCOUVER, B.C., CANADA V6C 3E8
---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
(604) 728-3004
-------------------------
Issuer's telephone number
Check whether the issuer (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 [ ]
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 17,331,141 shares of Common Stock
with a par value of $0.001 per share outstanding as of June 7, 2005
Transitional Small Business Disclosure Format (check one): Yes [ ] NO [X]
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
INTEGRATED SECURITIES TECHNOLOGIES, INC.
(AN EXPLORATION STAGE COMPANY)
BALANCE SHEET
FEBRUARY 28, 2005
(UNAUDITED)
ASSETS
Total assets: $ -
=================
LIABILITIES AND STOCKHOLDERS' EQUITY
Total liabilities $ -
Commitments -
Stockholders' equity:
Common stock, par value $.001, 200,000,000 shares
authorized; 17,331,141 shares issued and outstanding 17,331
Paid in capital 330,360
Other comprehensive loss (16)
Deficit accumulated during the exploration stage (347,675)
-----------------
Total stockholders' equity -
-----------------
Total liabilities and stockholders' equity $ -
=================
INTEGRATED SECURITIES TECHNOLOGIES, INC.
(AN EXPLORATION STAGE COMPANY)
STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED FEBRUARY 28, 2005 AND 2004, AND
PERIOD FROM APRIL 12, 2002 (INCEPTION) THROUGH FEBRUARY 28, 2005
(UNAUDITED)
Three Months Ended Six Months Ended Inception
through
2005 2004 2005 2004 2005
----------- ------------ ----------- ------------ ----------
OPERATING EXPENSES $ - $ 5,339 $ - $ 7,036 $ 347,765
----------- ------------ ----------- ------------ ----------
NET LOSS $ - $ (5,339) $ - $ (7,036) $(347,765)
=========== ============ =========== ============ ==========
BASIC AND DILUTED NET
LOSS PER COMMON SHARE $ - $ (0.00) $ - $ (0.00)
=========== ============ =========== ============
WEIGHTED AVERAGE SHARES
OUTSTANDING 17,331,141 34,828,200 17,311,141 34,828,200
=========== ============ =========== ============
INTEGRATED SECURITIES TECHNOLOGIES, INC.
(AN EXPLORATION STAGE COMPANY)
STATEMENTS OF CASH FLOW
SIX MONTHS ENDED FEBRUARY 28, 2005 AND 2004, AND
PERIOD FROM APRIL 12, 2002 (INCEPTION) THROUGH FEBRUARY 28, 2005
(UNAUDITED)
Inception
through
2005 2004 2005
----- -------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ - $(7,036) $(347,675)
Adjustments to reconcile net loss to net
cash used in operating activities:
Changes in:
Prepaid expense - (67) 10,929
Accounts payable - 1,812 8,062
----- -------- ----------
Net cash used in operating activities - (5,291) (328,684)
----- -------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Shareholder advances - 4,517
Issuance of common stock for cash - - 328,700
----- -------- ----------
Net cash provided by financing activities - 4,517 328,700
----- -------- ----------
EFFECT OF EXCHANGE RATE ON CASH - (16)
----- -------- ----------
NET CHANGE IN CASH - (774) -
CASH AND CASH EQUIVALENTS, beginning of period - 1,014 -
----- -------- ----------
CASH AND CASH EQUIVALENTS, end of period $ - $ 240 $ -
===== ======== ==========
INTEGRATED SECURITIES TECHNOLOGIES, INC.
(AN EXPLORATION STAGE COMPANY)
FEBRUARY 28, 2005
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited interim financial statements of Integrated Securities
Technologies, Inc. ("Integrated") 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
Integrated's Annual Report 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 the 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 fiscal 2004 as reported in the 10-KSB have been
omitted.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
FORWARD-LOOKING STATEMENTS
The information in this Quarterly Report on Form 10-QSB/A 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. These forward-looking statements involve risks and uncertainties,
including statements regarding Integrated's capital needs, business plans and
expectations. Such forward-looking statements involve risks and uncertainties
regarding the market price of natural resources, availability of funds,
government regulations, common share prices, operating costs, capital costs and
other factors. Forward-looking statements are made, without limitation, in
relation to operating plans, property exploration and development, availability
of funds and operating costs. Any statements contained herein that are not
statements of historical facts may be deemed to be forward-looking statements.
In some cases, you can identify forward-looking statements by terminology such
as "may", "will", "should", "expect", "plan", "intend", "anticipate", "believe",
"estimate", "predict", "potential" or "continue", the negative of such terms or
other comparable terminology. Actual events or results may differ materially. In
evaluating these statements, you should consider various factors, including the
risks outlined below, and, from time to time, in other reports Integrated files
with the SEC, including Integrated's Annual Report on Form 10-KSB for the year
ended August 31, 2004. These factors may cause Integrated's actual results to
differ materially from any forward-looking statement. Integrated disclaims any
obligation to publicly update these statements, or disclose any difference
between its actual results and those reflected in these statements. The
information constitutes forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Given these uncertainties,
readers are cautioned not to place undue reliance on such forward-looking
statements.
OVERVIEW
We were incorporated on April 12, 2002, under the laws of the State of Nevada.
We are an exploration stage company engaged in the acquisition and exploration
of mineral properties. We own four mineral claims that we refer to as the Saucy
mineral claims and six mineral claims that we refer to as the Salsa mineral
claims. The Saucy and Salsa mineral claims are located adjacent to each other
in the Province of British Columbia, Canada. Both the Saucy and the Salsa
mineral claims are held in the name of our wholly owned subsidiary, Iguana
Explorations Inc. Further exploration of these mineral claims is required
before a final determination as to their viability can be made. No commercially
viable mineral deposit may exist on our mineral claims. Our plan of operations
is to carry out exploration work on these claims in order to ascertain whether
they possess deposits of gold, copper or silver. We can provide no assurance
that our mineral claims contain a mineral deposit until appropriate exploratory
work is done and an evaluation based on that work concludes further work
programs are justified. At this time, we have no known reserves on our mineral
claims.
GEOLOGY OF THE MINERAL CLAIMS
We engaged Mr. W.G. Timmins to prepare a geological evaluation report on the
Saucy mineral claims. Mr. Timmins is a consulting geologist and registered
professional engineer in the Geological Section of the Association of
Professional Engineers and Geoscientists of British Columbia. Mr. Timmins has
practiced in his profession for 39 years and been a registered professional
engineer since 1969.
Mr. Timmins recommended a two-stage exploration program for the Saucy mineral
claims to determine whether there are mineral deposits of gold, silver or copper
on those claims: Stage 1 consisting of reconnaissance geology and sampling at an
estimated cost of $5,000; and Stage 2 consisting of trenching, sampling,
prospecting and mapping at an estimated cost of $10,000.
We completed Stage 1 in 2002 and Mr. Timmins recommended proceeding to Stage 2,
which was completed in November of 2003.
We received a report from Mr. Timmins dated December 10, 2003 reporting on
completion of Stage 2 of the program. Mr. Timmins reported that the main
mineral vein on the Saucy claims narrowed in width and had decreasing gold
values. Mr. Timmins advised that it is normal for this type of quartz vein to
exhibit pinching and swelling with variable gold values. Based on the work on
the Saucy claims and on information contained in previously reported work on
ground adjacent to the Saucy claims, Mr. Timmins reported that the vein
structure on the Saucy claims may extend into a wider vein on the adjacent areas
which reportedly carry significant gold values. Based on that conclusion, Mr.
Timmins recommended that we acquire the Salsa claims. Mr. Timmins also
recommended that we conduct a work program on the Salsa mineral claims
consisting of blasting, sampling, prospecting, geological mapping and assays at
an estimated cost of $10,000.
PLAN OF OPERATIONS
Our business plan is to follow the recommendations of our consulting geologist
and proceed with completion of the work program recommended for the Salsa
mineral claims at an estimated cost of $7,000.
We anticipate that we will incur $15,000 in operating expenses over the next
twelve months. Operating expenses will include mineral claims renewal and
professional legal and accounting expenses associated with being a reporting
issuer under the Securities Exchange Act of 1934.
Our total expenditures over the next twelve months are anticipated to be
approximately $22,000. Our present cash reserves are not sufficient for us to
carry out our plan of operations without additional financing. Our directors
have made an oral commitment to loan us the necessary funds to complete our
business plan, however they are under no obligation to do so. We do not have
any other financing arrangements in place and there is no assurance that we will
be able to secure the necessary financing.
In the next twelve months, we do not plan to make any purchases or sales of
significant equipment, nor do we plan to make any significant changes in our
number of employees.
RESULTS OF OPERATIONS FOR PERIOD ENDING FEBRUARY 28, 2005
We did not earn any revenues during the period ending February 28, 205. We do
not anticipate earning revenues until such time as we enter into commercial
production of our mineral properties. We are presently in the exploration stage
of our business and we can provide no assurance that we will discover
commercially exploitable levels of mineral resources on our properties, or if
such deposits are discovered, that we will enter into further substantial
exploration programs.
We incurred no operating expenses for the three and six months ended February
28, 2005 compared to $5,339 and $7,036 for the three and six months ended
February 29, 2004. The 2004 expenses are primarily professional fees. We
anticipate our operating expenses will increase as we undertake our plan of
operations. The increase will be attributable to our beginning of the
geological exploration program on the Salsa mineral claims and the professional
fees to be incurred in complying with the reporting requirements under the
Securities Exchange Act of 1934.
LIQUIDITY AND CAPITAL RESOURCES
We have no cash or working capital as of February 28, 2005. We estimate the
geological exploration program will cost approximately $7,000. Our working
capital is insufficient to pay for the costs of our exploration programs. Our
directors have made an oral commitment to provide adequate funding to enable us
to complete the exploration programs. However, our directors are under no legal
obligation to do so.
We have not attained profitable operations and are dependent upon obtaining
financing to pursue any extensive exploration activities. For these reasons,
there is substantial doubt that we will be able to continue as a going concern.
ITEM 3. CONTROLS AND PROCEDURES.
Integrated has adopted and implemented internal disclosure controls and
procedures designed to provide reasonable assurance that all reportable
information will be recorded, processed, summarized and reported within the time
period specified in the SEC's rules and forms. Under the supervision and with
the participation of Integrated's management, including Integrated's Chief
Executive Officer and Chief Financial Officer, Integrated has evaluated the
effectiveness of the design and operation of its disclosure controls and
procedures pursuant to Exchange Act Rule 13a-15(e) as of the end of the fiscal
quarter covered by this report. Based on that evaluation, the Chief Executive
Officer and Chief Financial Officer have concluded that these disclosure
controls and procedures are effective. There were no changes in Integrated's
internal controls or in other factors during or since the end of the fiscal
quarter covered by this report that have had a material effect or are reasonably
likely to have a material effect on internal controls subsequent to the end of
the fiscal quarter covered by this report.
ITEM 6. REPORTS ON FORM 8-K.
We did not file any Current Reports on Form 8-K during our fiscal quarter ended
February 28, 2005.
SIGNATURES
In accordance with the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Integrated Securities Technologies, Inc.
Date: June 7, 2005
By: /s/ Randy White
---------------
Randy White
President and Director