##### Table of Contents



---

---

SECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

FORM 10-QSB

Quarterly Report Under Section 13 or 15 (d) of
Securities Exchange Act of 1934

For Period ended June 30, 2001
Commission File Number 0-30923

AMERICAN TOY VENDING, INC.

---

(Exact name of registrant as specified in its charter)


|                         |  |                                     
|------------------------ |  | ------------------------------------
|NEVADA                   |  | 88-0455326                          
|                         |  |                                     
|(State of Incorporation) |  | (I.R.S. Employer Identification No.)

13640 WHITE ROCK STATION ROAD, POWAY, CA 92064

---

(Address of Principal Executive Offices) (Zip Code)


(619) 692-2406

---

(Registrants telephone number, including area code)


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 [   ]

Indicate the number of shares outstanding of each of the issuers classes of
common stock at the latest practicable date.

As of June 30, 2001, the registrant had 10,985,000 shares of common stock,
$.001 par value, issued and outstanding.



---

---





---

TABLE OF CONTENTS



|                             |  |                         |  |  |  |  |  | 
|---------------------------- |  | ----------------------- |  |  |  |  |  | 
|                             |  | BALANCE SHEETS         
|                             |  | INCOME STATEMENTS      
|                             |  | STATEMENT OF CASH FLOWS
|                             |  | NOTES                  
|PART I FINANCIAL INFORMATION
|PART II OTHER INFORMATION   
|SIGNATURES                  



---



##### Table of Contents





AMERICAN TOY VENDING, INC.
(a Development Stage Company)








BALANCE SHEETS


ASSETS

|                                            |                                                |                                                                                 |     |             |        |         |       |         |        | 
|------------------------------------------- | ---------------------------------------------- | ------------------------------------------------------------------------------- | --- | ----------- | ------ | ------- | ----- | ------- | ------ | 
|                                            |                                                |                                                                                 |     | JUNE 30     |        | SEPT 30
|                                            |                                                |                                                                                 |     | 2001        |        | 2000   
|                                            |                                                |                                                                                 |     |             |        |        
|                                            |                                                |                                                                                 |     | (Unaudited) |        |         |       |        
|CURRENT ASSETS
CASH (on hand & in the bank) |                                                |                                                                                 | 508 |             |        |         | 1,295 |        
|                                            |                                                |                                                                                 |     |             |        |         |       |        
|TOTAL CURRENT ASSETS                        |                                                |                                                                                 | 508 |             |        |         | 1,295 |        
|                                            |                                                |                                                                                 |     |             |        |         |       |        
|TOTAL ASSETS                                |                                                |                                                                                 | 508 |             |        |         | 1,295 |        
|                                            |                                                |                                                                                 |     |             |        |         |       |        
|LIABILITIES AND STOCKHOLDERS EQUITY       
|                                           
|                                           
|                                           
|                                           
|CURRENT LIABILITIES                         |                                                |                                                                                 | 0   |             |        |         | 0     |        
|                                            |                                                |                                                                                 |     |             |        |         |       |        
|TOTAL CURRENT LIABILITIES                   |                                                |                                                                                 | 0   |             |        |         | 0     |        
|                                           
|                                           
|                                           
|                                           
|STOCKHOLDERS EQUITY                        |                                                |                                                                                 |     |             |        |         |       |        
|                                           
|                                           
|                                           
|                                           
|                                            | COMMON STOCK                                   |                                                                                 |     |             |        |         |       |         |       
|                                           
|                                           
|                                           
|                                           
|                                            |                                                | Par Value $0.001, 50,000,000 shares
authorized, 10,985,000 issued &
outstanding |     |             | 10,985 |         |       |         | 10,985 | 
|                                           
|                                           
|                                           
|                                           
|                                            | PAID IN CAPITAL                                |                                                                                 |     | 5,915       |        |         |       | 5,915   |       
|                                           
|                                           
|                                           
|                                           
|                                            | (DEFICIT) ACCUMULATED
DURING DEVELOPMENT STAGE |                                                                                 |     | -16,392     |        |         |       | -15,605 |       
|                                            |                                                |                                                                                 |     |             |        |         |       |        
|TOTAL STOCKHOLDERS EQUITY                  |                                                |                                                                                 | 508 |             |        |         | 1,295 |        
|                                            |                                                |                                                                                 |     |             |        |         |       |        
|TOTAL LIAB & STOCKHOLDERS EQUITY           |                                                |                                                                                 | 508 |             |        |         | 1,295 |        
|                                            |                                                |                                                                                 |     |             |        |         |       |        

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





---



##### Table of Contents



FINANCIAL STATEMENTS (continued)

AMERICAN TOY VENDING, INC.
(a Development Stage Company)







INCOME STATEMENTS


(Unaudited) 3/10/19993 Months
        
        3 Months
        
        9 Months
        
        9 Months
        
        (Inception)Ended
        
        Ended
        
        Ended
        
        Ended
        
        to6/30/01
        
        6/30/00
        
        6/30/01
        
        6/30/00
        
        6/30/01REVENUE
        
        
        0
        
        
        
        0
        
        
        
        0
        
        
        
        0
        
        
        
        0TOTAL REVENUE
        
        
        0
        
        
        
        0
        
        
        
        0
        
        
        
        0
        
        
        
        0OPERATING EXPENSESMANAGEMENT FEES
        
        
        0
        
        
        
        0
        
        
        
        0
        
        
        
        0
        
        
        
        10,000GENERAL, SELLING & ADMINISTRATIVE
        
        
        94
        
        
        
        0
        
        
        
        787
        
        
        
        0
        
        
        
        6,392TOTAL OPERATING EXPENSES
        
        
        94
        
        
        
        0
        
        
        
        787
        
        
        
        0
        
        
        
        16,392NET (LOSS)
        
        
        -94
        
        
        
        0
        
        
        
        -787
        
        
        
        0
        
        
        
        -16,392NET (LOSS) PER SHARE
        
        
        0.0000
        
        
        
        0.0000
        
        
        
        0.0000
        
        
        
        0.0000
        
        
        
        0.0000WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
        
        
        10,985,000
        
        
        
        10,985,000
        
        
        
        10,985,000
        
        
        
        10,985,000
        
        
        
        10,985,000 
 
 STATEMENT OF CASH FLOWS


(Unaudited)


|                                                                       |                    |  |           |      |           |  |             |   |  |  |           |         | 
|---------------------------------------------------------------------- | ------------------ |  | --------- | ---- | --------- |  | ----------- | - |  |  | --------- | ------- | 
|                                                                       |                    |  |           |      |           |  |             |   |  |  | 3/10/1999
|                                                                       |                    |  | 9 Months  |      | 9 Months  |  | (Inception)
|                                                                       |                    |  | Ended     |      | Ended     |  | to         
|                                                                       |                    |  | 6/30/2001 |      | 6/30/2000 |  | 6/30/01    
|                                                                       |                    |  |           |      |           |  |            
|CASH FLOWS FROM OPERATING ACTIVITIES                                  
|                                                                       | NET LOSS           |  |           | -787 |           |  |             | 0 |  |  |           | -16,392 | 
|                                                                      
|                                                                      
|                                                                      
|                                                                      
|ADJ TO RECONCILE NET LOSS TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
|                                                                       | ISSUE COMMON STOCK |  |           | 0    |           |  |             | 0 |  |  |           | 10,000  | 
|                                                                       |                    |  |           |      |           |  |             |   |  |  |           |         | 
|NET CASH USED IN OPERATING ACTIVITIES                                  |                    |  | -787      |      |           |  | 0           |   |  |  | -6,392    |        
|                                                                      
|                                                                      
|                                                                      
|                                                                      
|CASH FLOWS FROM INVESTING ACTIVITIES                                   |                    |  | 0         |      |           |  | 0           |   |  |  | 0         |        
|                                                                      
|                                                                      
|                                                                      
|                                                                      
|CASH FLOWS FROM FINANCING ACTIVITIES                                   |                    |  | 0         |      |           |  | 0           |   |  |  | 0         |        
|                                                                       |                    |  |           |      |           |  |             |   |  |  |           |         | 
|NET INCREASE (DECREASE)                                                |                    |  | -787      |      |           |  | 0           |   |  |  | -6,392    |        
|                                                                      
|                                                                      
|                                                                      
|                                                                      
|CASH BEGINNING OF PERIOD                                               |                    |  | 1,295     |      |           |  | 6,900       |   |  |  | 6,900     |        
|                                                                       |                    |  |           |      |           |  |             |   |  |  |           |         | 
|CASH END OF PERIOD                                                     |                    |  | 508       |      |           |  | 6,900       |   |  |  | 508       |        

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






---



##### Table of Contents



AMERICAN TOY VENDING, INC.
(a Development Stage Company)








NOTES


Note 1. Basis of Presentation

The consolidated interim financial statements included herein, presented in
accordance with United States generally accepted accounting principles and
stated in US dollars, have been prepared by the Company, without audit,
pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosure normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed and omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring
adjustments, which, in the opinion of management are necessary for fair
presentation of the information contained therein. It is suggested that these
consolidated interim financial statements be read in conjunction with the
financial statements of the Company for the year ended September 30, 2000 and
notes thereto included in the Companys 10-KSB annual report. The Company
follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim periods are not indicative of annual
results.

Note 2. Going concern

These consolidated financial statements have been prepared in accordance with
generally accepted accounting principles applicable to a going concern which
contemplates the realization of assets and the satisfaction of liabilities and
commitments in the normal course of business. As of June 30, 2001 the Company
has not recognized revenue to date and has accumulated operating losses of
approximately $16,000 since inception. The Companys ability to continue as a
going concern is contingent upon the successful completion of additional
financing arrangements and its ability to achieve and maintain profitable
operations. Management plans to raise equity capital to finance the operating
and capital requirements of the Company. Amounts raised will be used to
further development of the Companys products, to provide financing for
marketing and promotion, to secure additional property and equipment, and for
other working capital purposes. While the Company is expending its best
efforts to achieve the above plans, there is no assurance that any such
activity will generate funds that will be available for operations.

These conditions raise substantial doubt about the Companys ability to
continue as a going concern. These financial statements do not include any
adjustments that might arise from this uncertainty.

Note 3. Related party transactions

The Company does not lease or rent any property. Office services are provided
without charge by a director. Such costs are immaterial to the financial
statements and, accordingly, have not been reflected therein. The officers and
directors of the Company are involved in other business activities and may, in
the future, become involved in other business opportunities. If a specific
business opportunity becomes available, such persons may face a conflict in
selecting between the Company and their other business interests. The Company
has not formulated a policy for the resolution of such conflicts.





---



##### Table of Contents









PART I   FINANCIAL INFORMATION

Managements Plan of Operations

The Company maintains a cash balance sufficient to sustain corporate operations
until such time as Management can raise the funding necessary to advance its
business plan. The losses of $6392 through June 2001 were due to operating
expenses including licenses and fees, accounting and audit fees and office
expenses. Sales of the Companys equity securities have allowed the Company to
maintain a positive cash flow balance.

The Companys two year business plan encompasses the following steps to
implement its computer-controlled skill crane game business plan: after raising
capital of $5,000,000 during the first six months, the Company intends to order
500 skill cranes with the Companys new communications system from the
manufacturer at a cost of $950,000, and begin securing space for its smart
skill cranes in New York, Florida, and California. During months seven through
twelve, in order to operate its smart skill crane sites, the Company intends to
expend $500,000 for inventory, $50,000 for set-up and maintenance of the
Companys web site, $200,000 for advertising, $90,000 for three regional
managers, $300,000 for thirty route drivers, $25,000 for two office clerical
employees, $80,000 for purchase of computers and fixed assets, and $175,000 for
rent and other operating expenses.

Management has made initial progress in implementing its business plan by
setting-up its first web page smartcrane.net, filing for copyright protection
of its copyrightable skill crane control communications software, and plans to
expand its web site in the fourth quarter of 2001.

The Company will only be able to continue to advance its business plan after it
receives capital funding through the sale of equity securities. After raising
capital, Management intends to hire employees, rent commercial space in San
Diego, purchase equipment, and begin development of its skill crane machine
operations. The Company intends to use its equity capital to fund the
Companys business plan during the next twelve months as cash flow from sales
is not estimated to begin until year two of its business plan. The Company
will face considerable risk in each of its business plan steps, such as
difficulty of hiring competent personnel within its budget, longer than
anticipated deployment of its skill crane machines at suitable sites, and a
shortfall of funding due to the Companys inability to raise capital in the
equity securities market. If no funding is received during the next twelve
months, the Company will be forced to rely on its existing cash in the bank and
funds loaned by the directors and officers. The Companys officers and
directors have no formal commitments or arrangements to advance or loan funds
to the Company. In such a restricted cash flow scenario, the Company would be
unable to complete its business plan steps, and would, instead, delay all cash
intensive activities. Without necessary cash flow, the Company may be dormant
during the next twelve months, or until such time as necessary funds could be
raised in the equity securities market.





---



##### Table of Contents









PART II   OTHER INFORMATION

|           |  |                                                                                              
|---------- |  | ---------------------------------------------------------------------------------------------
|ITEM 1     |  | Not applicable.                                                                              
|          
|ITEMS 2-4: |  | Not applicable                                                                               
|          
|ITEM 5:    |  | Information required in lieu of Form 8-K: None                                               
|          
|ITEM 6:    |  | Exhibits and Reports on 8-K:a). Change in Certifying Accountant Form 8-K filed April 12, 2001











SIGNATURES

---



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

|                     |  |                                                                          
|-------------------- |  | -------------------------------------------------------------------------
|                     |  | American Toy Vending, Inc.                                               
|                    
|                    
|Dated: July 25, 2001 |  | /s/   Alastair Knott
Alastair Knott
President and Chief Executive Officer