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, 1998.
[ ] 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, 1998.
Class B, common stock, par value $.01 per share, 150,000 shares outstanding as
of December 31, 1998.
<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, 1998 and
August 31, 1998 3
Statements of operations for the three months
ended November 30, 1998 and 1997 and period
from September 1, 1995 (inception) to
November 30, 1998 4
Statements of stockholders' equity for the three
months ended November 30, 1998 5
Statements of cash flows for the three months
ended November 30, 1998 and 1997 and period
from September 1, 1995 (inception) to
November 30, 1998 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,
1998 1998
----------------------------------------------------------------------------------------------------
(Unaudited) (Audited)
<S> <C> <C>
Assets
Cash $ 691 $ 1,079
Cash held in escrow 324 324
Investment in treasury securities held in escrow 8,557,526 8,408,801
Deferred merger costs 215,000 105,000
- -----------------------------------------------------------------------------------------------------
$ 8,773,541 $ 8,515,204
=====================================================================================================
Liabilities and Stockholders' Equity
Liabilities:
Accrued expenses $ 350,027 $ 174,496
- -----------------------------------------------------------------------------------------------------
Commitments
Common stock subject to possible conversion, 160,000
shares at redemption value 1,711,570 1,681,825
- -----------------------------------------------------------------------------------------------------
Stockholders' equity:
Convertible preferred stock, $.01 par value - shares
authorized 1,000,000; outstanding none; subscribed
94; liquidation value - $9,400 1 1
Subscription receivable (100) (100)
Class A common stock, $.01 par value - shares
authorized 10,000,000; outstanding 906,000 9,060 9,060
Class B common stock, $.01 par value - shares
authorized 250,000;issued and outstanding 150,000 1,500 1,500
Additional paid-in capital 6,586,948 6,586,948
Earnings (deficit) accumulated during the development
stage 114,535 61,474
- -----------------------------------------------------------------------------------------------------
Total stockholders' equity 6,711,944 6,658,883
- -----------------------------------------------------------------------------------------------------
$ 8,773,541 $ 8,515,204
=====================================================================================================
</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
September 1,
Three months ended 1995
November 30, (inception) to
---------------------------- November 30,
1998 1997 1998
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Interest income $ 148,750 $ 105,000 $ 560,143
General and administrative expenses and debt costs 40,944 (11,000) (244,038)
Income taxes 25,000 -- 90,000
- ------------------------------------------------------------------------------------------------------------------
Net income $ 82,806 $ 94,000 $ 226,105
==================================================================================================================
Net income per common share $ .08 $ .09
==================================================================================================================
Weighted average common shares outstanding 1,056,000 1,056,000
==================================================================================================================
</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>
Class A Class B
--------------------- -----------------------
Preferred Stock Common stock Common stock
-------------------- Subscription --------------------- -----------------------
Shares Amount receivable Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, August 31, 1997
(Audited) 94 $1 $(9,400) 906,000 $9,060 150,000 $1,500
Subscription paid -- -- 9,300 -- -- -- --
Net income -- -- -- -- -- -- --
Accretion to redemption value of
common stock -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Balance August 30, 1998 (Audited) 94 1 (100) 906,000 9,060 150,000 1,500
Net income -- -- -- -- --
Accretion to redemption value of
common stock -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, November 30, 1998
(Unaudited) 94 $1 $(100) 906,000 $9,060 150,000 $1,500
====================================================================================================================================
<CAPTION>
Earnings
(deficit)
accumulated Total
Additional during the stockholders'
paid-in development equity
capital stage (deficit)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
Balance, August 31, 1997
(Audited) $6,586,948 $(70,005) $6,518,104
Subscription paid -- 9,300
Net income -- 213,304 213,304
Accretion to redemption value of
common stock -- (81,825) (81,825)
- ---------------------------------------------------------------------------------------
Balance August 30, 1998 (Audited) 6,586,948 61,474 6,658,883
Net income 82,806 82,806
Accretion to redemption value of
common stock (29,745) (29,745)
- ---------------------------------------------------------------------------------------
Balance, November 30, 1998
(Unaudited) $6,586,948 $114,535 $6,711,944
=======================================================================================
</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 November 30,
1998 1997 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 82,806 $ 94,000 $ 226,105
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 -- -- 35,000
Changes in assets and liabilities:
Accrued expenses 175,531 (49,332) 111,928
Interest receivable on investments (106,725) (105,000) (230,280)
- ------------------------------------------------------------------------------------------------------------------------------------
Net cash provided by (used in) operating
activities 151,612 (60,332) 152,553
- ------------------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Purchase of treasury securities in escrow (6,520,000) -- (25,154,198)
Sale of treasury securities in escrow 6,478,000 -- 16,973,375
Increase in cash held in escrow -- -- 1,352
- ------------------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (42,000) -- (8,179,471)
- ------------------------------------------------------------------------------------------------------------------------------------
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
Merger costs -- -- (215,000)
Debt (110,000) -- (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 (110,000) (90,700) 8,027,609
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash (388) (151,032) 691
Cash, beginning of period 1,079 400,535 --
- ------------------------------------------------------------------------------------------------------------------------------------
Cash, end of period $ 691 $ 249,503 $ 691
====================================================================================================================================
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, 1998.
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.
On August 18, 1998, the Company, Moto Guzzi Corp., a Delaware corporation
("Guzzi Corp."), and for certain provisions, Trident Rowan Group, Inc., a
Maryland corporation ("TRG"), entered into a definitive Agreement and Plan of
Merger and Reorganization, as amended ("Merger Agreement"), pursuant to which
Guzzi Corp. would merge with and into NAAC, with NAAC being the surviving
corporation ("Merger"). TRG and its partially-owned subsidiary, O.A.M. S.p.A.,
together own all the outstanding common stock of Guzzi Corp. Guzzi Corp., is a
leading Italian manufacturer, marketer and distributor of performance and luxury
motorcycles and motorcycle parts, marketed under the "Moto Guzzi(R)" brand name.
The Merger will be treated as a reverse acquisition of the Company by Guzzi
Corp. In a reverse acquisition, the shareholders of NAAC will own, after the
Merger, less than 50% of the post-Merger shares. The shareholders of Guzzi Corp.
will receive approximately 76.4% of the post-Merger shares of the Company,
excluding any shares of the Company's Class A common stock issuable upon
exercise of any options or warrants, and Guzzi Corp., therefore, will be the
accounting acquirer. The cost of the acquisition of the Company will be based on
the fair value of the Company's assets and liabilities as of the date of the
Merger (which amounts approximate book value). The Company anticipates
completing the merger by February 1, 1999. The Merger is subject to shareholder
approval and certain other conditions.
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 19, 1999 North Atlantic Acquisition Corp.
---------------------------------
(Registrant)
By: /s/ David J. Mitchell
----------------------------
David J. Mitchell
Chairman of the Board and
Chief Executive Officer
10
