[As adopted in Release No. 34-32231, April 28, 1993, 58 F.R. 26509]
U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from to
Commission file number 0-27580
Hi, Tiger International, Inc.
(Exact name of small business issuer as
specified in its charter)
Utah 87-0378021
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
350 West 300 South, Salt Lake City, UT 84101
(Address of principal executive offices)
(801) 322-1221
Issuer's telephone number
Not Applicable
(Former name, former address and former fiscal year, if changed
since last report.)
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
No X
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the
Exchange Act after the distribution of securities under a plan
confirmed by a court. Yes
No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the
issuer's classes of common equity, as of thelatest practical date:
March 31, 1996 2,317,300
Transitional Small Business Disclosure Format (check
one). Yes ; No
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
HI, TIGER INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND MARCH 31, 1996
(Unaudited)
ASSETS 03/31/96 09/30/95
Current Assets
Cash $ 7,158 $ 17,267
Note Receivable - Related Party - 46,000
Interest Receivable - 9,310
Accounts Receivable(Net of Allowance
for Doubtful Accounts of $2,739) 20,493 19,336
Total Current Assets 27,651 91,913
Fixed Assets
Equipment 129,594 115,642
Equipment Lease 10,730 10,730
Furniture & Fixtures 6,866 6,866
Less Accumulated Depreciation (55,004) (30,237)
Total Fixed Assets 92,186 103,001
Total Assets $ 119,837 $ 194,914
The accompanying notes are an integral part of these
financial statements.<PAGE>
HI, TIGER INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND MARCH 31, 1996
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY 03/31/96 09/30/95
Current Liabilities
Accounts Payable, Trade $ 56,949 $ 44,980
Interest Payable - 41,892
Accrued Liabilities 6,030 8,494
Lease Obligation - Current Portion 5,531 4,620
Notes Payable - Related Party - 26,900
Other Payable - Related Party 75,000 75,000
Total Current Liabilities 143,510 201,886
Long Term Liabilities
Lease Obligation - Long Term Portion - 2,884
Total Liabilities 143,510 204,770
Minority Interest 14,420 16,184
Stockholder' Equity
Common Stock (Par Value $.001),
50,000,000 share authorized,
2,317,300 and 2,292,300 shares
issued and outstanding March 31, 1996
and September 30, 1995, respectively 2,317 2,292
Paid in Capital in Excess of Par 434,745 410,270
Retained Deficit (475,155) (438,602)
Total Stockholders' Equity (38,093) (26,040)
Total Liabilities and
Stockholders' Equity $ 119,837 $ 194,914
The accompanying notes are an integral part of these financial
statements
HI, TIGER INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
For The For The For The For The
3 Months 3 Months 6 Months 6 Months
Ended Ended Ended Ended
03/31/96 03/31/95 03/31/96 03/31/95
REVENUES
Sales $ 69,057 $ 18,840 $ 132,541 $ 18,840
Cost of Sales 19,778 3,513 32,878 3,513
Gross Margin 49,279 15,327 99,663 15,327
EXPENSES
General &
Administrative 73,601 28,092 134,519 29,986
Bad Debt Expense 262 415 1,786 415
Total Expenses 73,863 28,507 136,305 30,401
Other Income (Expense)
Interest Income 1,022 223 1,196 1,511
Misc. Income 811 - 867 -
Interest Expense (1,177) (1,576) (3,737) (3,316)
Net Other
Income (Expense) 656 (1,353) (1,674) (1,805)
Minority Income 1,750 1,936 1,764 1,936
Net Income (Loss) $ (22,178) $ (12,597) $ (36,552) $ (14,943)
Earnings (Loss)
Per Common Share $ (0.01) $ (0.02) $ (0.02) $ (0.02)
Weighted Average
Shares Outstanding 2,294,955 2,237,300 2,293,614 2,104,882
The accompanying notes are an integral part of these
financial statements.
HI, TIGER INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
For The For The
6 Months 6 Months
Ended Ended
03/31/96 03/31/95
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (36,552) $ (14,943)
Adjustments Used to Reconcile
Net Loss to Net Cash
Minority Income (1,764) (1,936)
Provided by (Used In)
Operating Activities:
Compensation Expense from
Stock Options - -
(Increase) Decrease in
Accounts Receivable (1,157) (1,500)
(Increase) Decrease in
Interest Receivable 9,309 (1,511)
Increase (Decrease) in Payables 9,505 948
Increase (Decrease) in
Interest Payable (41,892) 3,315
Depreciation and amortization 24,767 8,537
Net Adjustments (1,232) 7,853
Net Cash Used in Operating Activities (37,784) (7,090)
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of Equipment (13,952) (1,222)
Net Cash Used in Investing Activities (13,952) (1,222)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds From Capital Stock Issued 24,500 -
Proceeds From Loans 46,000 -
Proceeds From Borrowings on Notes Payable - 2,500
Cash Payments on Notes Payable (26,900) -
Cash payments on Capital Leases (1,973) -
Net Cash Provided by Financing Activities 41,627 2,500
Net Increase (Decrease) in Cash and
Cash Equivalents (10,109) (5,812)
Cash and Cash Equivalents at Beginning
of Period 17,267 11,210
Cash and Cash Equivalents at End
of Period $ 7,158 $ 5,398
HI, TIGER INTERNATIONAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
For The For The
6 Months 6 Months
Ended Ended
03/31/96 03/31/95
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION:
Interest $ 45,077 $ -
Income Taxes $ 200 $ 200
The accompanying notes are an integral part of these
financial statements.
HI, TIGER INTERNATIONAL, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED MARCH 31, 1996
(Unaudited)
1. Interim Reporting
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles and with Form 10-QSB requirements. Accordingly, they do
not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments
considered necessary for a fair presentation have been included.
Operating results for the six month period ended March 31, 1996,
are not necessarily indicative of the results that may be expected
for the year ended September 30, 1996. For further information,
refer to the financial statements and footnotes thereto included in
the Company's annual report on Form 10-SB for the year ended
September 30, 1995.
Item 2. Management's Discussion and Analysis or Plan of Operation.
General
The following discusses the financial position and results of
operations of the Company and its consolidated subsidiary, The
Friendly Net (a Utah Limited Liability Company), which have been
combined and accounted for as a reorganization of ownership
interest among related parties as if it were a "pooling of
interests."
Liquidity and Capital Resources
The Company requires working capital principally to fund its
current operations and accounts receivable. Generally the Company
has adequate funds for its activities, from time to time in the
past the Company has relied on short-term borrowings and the
issuance of restricted common stock to fund current operations.
There are no formal commitments from banks or other lending sources
for lines of credit or similar short-term borrowings, but the
Company has been able to borrow any additional working capital that
has been required. From time to time in the past, required
short-term borrowings have been obtained from a principal
shareholder or other related entities. It is anticipated that the
current operations will expand and the funds generated will exceed
the Company's working capital requirements for the foreseeable
future and that it will no longer seek loans from
principal shareholders.
The increase in liquidity and capital resources during the
past two years reflects the increases attributable to the
acquisition of The Friendly Net and the partial year of operations.
The Company generates and uses cash flows through three activities:
operating, investing, and financing. During the six months ended
March 31, 1996, operating activities used cash of $38,000 as
compared to net cash used of $7,000 for the six months ended March
31, 1995. The increase in cash used by operating activities in
1996 compared to 1995 is due principally to the payment of interest
payable of $45,000 of which $41,892 was from accumulations from
prior years.
Cash flows used in investing activities for the six months
ended March 31, 1996 is due to the acquisition of $14,000 of
computer equipment for The Friendly Net Operations as compared to
$1,000 for March 31, 1995.
Financing activities provided $42,000 for the six months
ended March 31, 1996 and $3,000 for March 31, 1995. The increase
in cash flow from financing activities in 1996 is the net result of
collecting loans of $46,000, paying off notes of $27,000, payments
on lease obligations of $2,000 and the proceeds from the sale of
restricted stock of $25,000.
Management believes that the Company's current cash and funds
available will be sufficient to meet capital requirements and short
term and long term working capital needs in the fiscal year ending
September 30, 1996 and beyond, unless a significant acquisition
or expansion is undertaken. The Company is constantly searching
for potential acquisitions and/or expansion opportunities.
However, there are no arrangements or ongoing negotiations for any
acquisition or expansion.
Results of Operations
As of March 31, 1996, the Company's have only been in
operations since January 1995. The revenues and gross margins for
the fiscal year ended September 30, 1995 are not necessarily
indicative of the results that may be expected for a full year.
During the preceding year (fiscal 1995), customers with repeat
business accounted for a majority of the revenues generated.
Although the Company's subsidiary has performed work for
it's customers with repeat business, there is no assurance that
such customers will maintain or increase the level of volume of
business of the Company. Since the acquisition of The Friendly
Net, general and administrative expenses have increased more than
the gross margin generated by the operations resulting in a loss
from operations of $37,000 for the six months ended March 31, 1996
compared to $15,000 loss in the six months ended March 31, 1995.
For the six months ended March 31, 1996 the increased general and
administrative expenses was a result of increased activity in the
search for potential acquisition and the expenses resulting from
staffing and training personnel for the operations of The Friendly
Net, while the volume of revenues generated had not reached a point
where the gross margin generated was sufficient to offset the cost
of the initial start-up expenses. General and Administrative costs
are expected to remain fairly stable; although there may be some
increases in technical support personnel costs as the customer base
grows.
Inflation and Regulation
The Company's operations have not been, and in the near term
are not expected to be, materially affected by inflation or
changing prices. The Company encounters competition from a variety
of firms offering Internet services in its market area. Many
of these firms have long standing customer relationships and are
well-staffed and well financed. The Company believes that
competition in the Internet service industry is based on
competitive pricing, although the ability, reputation and technical
support of a concern is also significant. The Company does not
believe that any recently enacted or presently pending proposed
legislation will have a material adverse effect on its results of
operations.
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
The Company did not file a report on Form 8-K during the six
months ended March
31, 1996.
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.
Hi, Tiger International, Inc.
(Registrant)
DATE: May 14, 1996 By: /s/
Paul G. Begum,
President
(Principal financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET OF HI, TIGER INTERNATIONAL, INC. AS OF MARCH 31, 1996 AND THE RELATED
STATEMENTS OF OPERATIONS AND CASH FLOWS FOR THE SIX MONTHS THEN ENDED AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001005974
<NAME> HI TIGER INTERNATIONAL INC
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