UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND
EXCHANGE ACT OF 1934
For the quarterly period ended November 30, 1997.
[ ] TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES AND
EXCHANGE ACT OF 1934
For the transition period from __________________ to __________________
Commission file number 000-22813
North Atlantic Acquisition Corp.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
13-3853272
(I.R.S. Employer Identification No.)
5 East 59th Street, 3rd. Floor, New York, New York 10022
(Address of principal executive offices - Zip code)
Registrant's telephone number, including area code: (212) 486-4444
________________________________________________________________________________
Former name, former address and former fiscal year, if changes since last
report.
Indicate by checkmark 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 [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by checkmark whether the registrant has filed all documents and reports
required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding
of each of the issuer's classes of common stock, as of the latest practicable
date.
Class A, common stock, par value $.01 per share, 906,000 shares outstanding as
of December 31, 1997.
Class B, common stock, par value $.01 per share, 150,000 shares outstanding as
of December 31, 1997.
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Index
================================================================================
Part I - Financial Information
Item 1. Financial Statements:
Balance sheets as of November 30, 1997 and
August 31, 1997 3
Statements of operations for the three months
ended November 30, 1997 and 1996 and period
from September 1, 1995 (inception) to
November 30, 1997 4
Statements of stockholders' equity for the three
months ended November 30, 1997 5
Statements of cash flows for the three months
ended November 30, 1997 and 1996 and period from
September 1, 1995 (inception) to
November 30, 1997 6
Notes to financial statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Part II - Other Information
Item 1. Legal Proceedings 9
Item 2. Changes in Securities 9
Item 3. Defaults Upon Senior Securities 9
Item 4. Submission of Matters to a Vote of Security Holders 9
Item 5. Other Information 9
Item 6. Exhibits and Reports on Form 8-K 9
Signatures 10
2
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Part 1. Financial Information
Item 1. Financial Statements
Balance Sheets
================================================================================
<TABLE>
<CAPTION>
November 30, August 31,
1997 1997
- ------------------------------------------------------------------------------------------------------------------------------------
(Unaudited) (Audited)
<S> <C> <C>
Assets
Cash $ 249,503 $ 400,535
Cash held in escrow 1,676 1,676
Investment in treasury securities held in escrow 8,103,324 7,998,324
- ------------------------------------------------------------------------------------------------------------------------------------
$8,354,503 $8,400,535
====================================================================================================================================
Liabilities and Stockholders' Equity
Liabilities:
Accrued expenses $ 133,099 $ 182,431
Notes payable -- 100,000
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 133,099 282,431
- ------------------------------------------------------------------------------------------------------------------------------------
Commitments
Common stock subject to possible conversion, 160,000 shares at redemption value 1,600,000 1,600,000
- ------------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity:
Convertible preferred stock, $.01 par value - shares authorized 1,000,000; 93 1
outstanding none; subscribed 94; liquidation value - $9,400
Subscription receivable (100) (9,400)
Class A common stock, $.01 par value - shares authorized 10,000,000; outstanding 9,060 9,060
906,000
Class B common stock, $.01 par value - shares authorized 250,000; issued and 1,500 1,500
outstanding 150,000
Additional paid-in capital 6,586,856 6,586,948
Earnings (deficit) accumulated during the development stage 23,995 (70,005)
- ------------------------------------------------------------------------------------------------------------------------------------
Total stockholders' equity 6,621,404 6,518,104
- ------------------------------------------------------------------------------------------------------------------------------------
$8,354,503 $8,400,535
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Item 1. Financial Statements
Statements of Operations
(Unaudited)
================================================================================
<TABLE>
<CAPTION>
Period from
Three months ended November 30, September 1, 1995
---------------------------------------------- (inception) to
1997 1996 November 30, 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest income $ 105,000 $ -- $105,000
General and administrative expenses
and debt costs (11,000) (2,431) (81,005)
- ------------------------------------------------------------------------------------------------------------------------------------
Net income (loss) $ 94,000 $ (2,431) $ 23,995
====================================================================================================================================
Net income (loss) per common share $ .09 $ (.02)
====================================================================================================================================
Weighted average common shares outstanding 1,056,000 106,000
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Item 1. Financial Statements
Statements of Stockholders' Equity
================================================================================
<TABLE>
<CAPTION>
Earnings
Class A Class B (deficit)
----------------- ---------------- accumulated
Preferred stock Common stock Common stock Additional during the Total
--------------- Subscription ----------------- ---------------- paid-in development stockholders'
Shares Amount receivable Shares Amount Shares Amount capital stage equity
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance, August 31, 1996 94 1 $(9,400) 106,000 $1,060 -- $ -- $ 61,939 $(31,085) $ 22,515
Net loss -- -- -- -- -- -- -- -- (38,920) (38,920)
Sale of common stock, net -- -- -- 800,000 8,000 150,000 1,500 8,125,009 -- 8,134,509
Reclassification to
redeemable
common stock -- -- -- -- -- -- -- (1,600,000) -- (1,600,000)
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, August 31, 1997
(Audited) 94 1 (9,400) 906,000 9,060 150,000 1,500 6,586,948 (70,005) 6,518,104
Subscription paid -- 92 9,300 -- -- -- -- (92) -- 9,300
Net income -- -- -- -- -- -- -- -- 94,000 94,000
====================================================================================================================================
Balance, November 30, 94 $93 $ (100) 906,000 $9,060 150,000 $1,500 $6,586,856 $ 23,995 $6,621,404
1997 (Unaudited)
====================================================================================================================================
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Item 1. Financial Statements
Statements of Cash Flows
(Unaudited)
================================================================================
<TABLE>
<CAPTION>
Period from
Three months ended November 30, September 1, 1995
--------------------------------- (inception) to
1997 1996 November 30, 1997
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 94,000 $ (2,431) $ 23,995
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating
activities:
Amortization of deferred debt costs -- -- 9,800
Amortization of discount on notes payable -- 2,431 35,000
Changes in assets and liabilities:
Accrued expenses (49,332) -- (105,000)
Interest receivable on investments (105,000) -- 43,099
- ---------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in)
operating activities (60,332) -- 6,894
- ---------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Purchase of treasury securities in escrow -- -- (7,998,324)
Increase in cash held in escrow -- -- (1,676)
- ---------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities -- -- (8,000,000)
- ---------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from sale of common stock, net -- -- 8,188,109
Subscription paid 9,300 -- 9,300
Deferred costs:
Registration -- -- 90,000
Debt -- -- (9,800)
Repayment of notes payable (100,000) -- (100,000)
Proceeds from issuance of notes payable -- -- 65,000
- ---------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in)
financing activities (90,700) -- 8,242,609
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash (151,032) -- 249,503
Cash, beginning of period 400,535 25,734 --
- ---------------------------------------------------------------------------------------------------------------------
Cash, end of period $249,503 $ 25,734 $ 249,503
=====================================================================================================================
Supplemental disclosures for cash flow information:
Cash paid for:
Interest $ -- $ -- $ --
Taxes -- -- --
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
In fiscal 1996, the Company received a note for subscribed preferred stock
amounting to $9,400, which is a noncash financing activity.
In fiscal 1996, the Company has recorded a $90,000 liability relating to a
license agreement, which is a noncash financing activity.
================================================================================
See accompanying notes to financial statements.
6
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Item 1. Financial Statements
Notes to Financial Statements
================================================================================
1. Basis of Presentation The financial statements are presented in
accordance with the requirements of Form 10-Q and
Regulation 210 of S-X and consequently do not
include all of the disclosures normally made in an
annual Form 10-K filing. Accordingly, the
financial statements included herein should be
reviewed in conjunction with the financial
statements and footnotes therein included within
the Company's Annual Report on Form 10-K for the
year ended August 31, 1997.
The financial information has been prepared in
accordance with the Company's customary accounting
practices and has not been audited. In the opinion
of management, the information presents all
adjustments necessary for a fair statement of
interim results. All such adjustments are of a
normal and recurring nature. The foregoing interim
results are not necessarily indicative of the
results of operations to be expected for a full
year.
2. Investments The Company has invested the majority of the
proceeds from the initial public offering in
United States Treasury Bills. These treasury
bills, which were purchased at a discount, are
presented at their accreted cost, which
approximates its market value.
7
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
================================================================================
North Atlantic Acquisition Corp. (the "Company") is a "blank check" or "blind
pool" company which was formed on August 9, 1995 to serve as a vehicle to effect
a merger, exchange of capital stock, asset acquisition or other business
combination (a "Business Combination") with an operating business (a "Target
Business"). The business objective of the Company is to effect a Business
Combination with a Target Business which the Company believes has significant
growth potential. To date, the Company has not effected a Business Combination.
On August 27, 1997 (the "Closing Date"), the Company sold 800,000 units
("Units") in the Offering and 150,000 shares of Class B exchangeable common
stock. Each Unit consists of one share of the Company's Class A common stock and
one Class A redeemable common stock purchase warrant ("Class A Warrant"). Each
Class A Warrant entitles the holder to purchase from the Company one share of
common stock at an exercise price of $9.00; each Class B stock entitles the
holder to receive two Units in exchange 90 days after the date of a Business
Combination. On the Closing Date, the Registrant received net proceeds of
approximately $8,100,000 (the "Net Proceeds"), after giving effect to the
payment of all underwriting discounts, the underwriters' nonaccountable expense
allowance and offering expenses. Pursuant to the terms of the Offering,
approximately $8 million of the Net Proceeds, representing an amount equal to
the gross proceeds from the sale of the Units, was placed in escrow with the
Chase Manhattan Bank, N.A., subject to release in accordance with the terms of
the Offering. These Net Proceeds have been invested in United States Treasury
Bills and a Treasury Note.
8
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Part II - Other Information
================================================================================
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
None
9
<PAGE>
North Atlantic Acquisition Corp.
(formerly Orion Acquisition Corp. I)
(a corporation in the development stage)
Part II - Other Information
================================================================================
SIGNATURES
Pursuant to the requirements 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.
Date: January 14, 1998 North Atlantic Acquisition Corp.
-------------------------------------
(Registrant)
By: /s/ David J. Mitchell
---------------------------------
David J. Mitchell
Chairman of the Board and
Chief Executive Officer
10
