FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1999
Commission file number: 0-25810
ZEDIK ENTERPRISES, INC.
-----------------------
(Name of Small Business Issuer in its charter)
Colorado 84-1504371
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
26 West Dry Creek Circle, Suite 600
Littleton, Colorado 80120
-------------------------
(Address of principal executive offices)
(Zip Code)
(303) 794-9450
--------------
(Issuer's telephone number, including area code)
Indicate by check mark whether the Issuer (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 periods 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 CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common Stock, No Par Value, 976,200 shares as of June 30, 1999.
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
ZEDIK ENTERPRISES, INC.
(A Development Stage Company)
UNAUDITED CONDENSED BALANCE SHEET
JUNE 30, 1999
ASSETS
------
Current Assets:
Cash and cash equivalents $ 609
--------
Total Assets $ 609
========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
Current Liabilities:
Account payable - trade $ 2,500
Notes payable - stockholders 7,200
Accrued interest - stockholders 303
--------
Total Current Liabilities 10,003
--------
Stockholders' Equity (Deficit):
Preferred stock: no par value, 10,000,000
shares authorized, none issued or outstanding --
Common stock: no par value, 25,000,000 shares
authorized, 976,200 shares issued and outstanding 2,602
Deficit accumulated during the development stage (11,996)
--------
Total Stockholders' Equity (Deficit) (9,394)
--------
Total Liabilities and Stockholders' Equity (Deficit) $ 609
========
See notes to unaudited condensed
financial statements.
-1-
<PAGE>
<TABLE>
<CAPTION>
ZEDIK ENTERPRISES, INC.
(A Development Stage Company)
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1999 AND 1998 AND
FOR THE PERIOD FROM FEBRUARY 23, 1996 (DATE OF INCEPTION)
TO JUNE 30, 1999
Three Months Ended Six Months Ended
June 30, June 30, Inception to
---------------- ----------------- June 30,
1999 1998 1999 1998 1999
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $ -- $ -- $ -- $ -- $ --
Operating expenses 2,566 11 9,125 23 11,693
--------- --------- --------- --------- ---------
Loss From Operations (2,566) (11) (9,125) (23) (11,693)
--------- --------- --------- --------- ---------
Other Income (Expense):
Interest expense - stockholders (217) -- (303) -- (303)
--------- --------- --------- --------- ---------
Total Other Income (Expense) (217) -- (303) -- (303)
--------- --------- --------- --------- ---------
Net Loss $ (2,783) $ (11) $ (9,428) $ (23) $ (11,996)
========= ========= ========= ========= =========
Net loss per share of common stock:
Basic $ -- $ -- $ (.01) $ -- $ (.01)
========= ========= ========= ========= =========
Diluted $ -- $ -- $ (.01) $ -- $ (.01)
========= ========= ========= ========= =========
Weighted average number of common
shares outstanding:
Basic 976,200 976,200 976,200 976,200 972,814
Diluted 976,200 976,200 976,200 976,200 972,814
See notes to unaudited condensed
financial statements.
-2-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ZEDIK ENTERPRISES, INC.
(A Development Stage Company)
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 1999 AND 1998 AND
FOR THE PERIOD FROM FEBRUARY 23, 1996 (DATE OF INCEPTION)
TO JUNE 30, 1999
Six Months Ended
June 30, Inception to
--------------- June 30,
1999 1998 1999
---- ---- ----
Cash Flows From Operating Activities:
<S> <C> <C> <C>
Net loss $ (9,428) $ (23) $(11,996)
Adjustments to reconcile net loss to net cash
(used) by operating activities:
Expense from issuance of common stock -- -- 812
Changes in liabilities:
Increase in accounts payable-trade 2,500 -- 2,500
Increase in accrued interest 303 -- 303
-------- -------- --------
Net Cash (Used) By Operating Activities (6,625) (23) (8,381)
-------- -------- --------
Cash Flows From Financing Activities:
Proceeds from stockholders loans 7,200 -- 7,200
Issuance of common stock -- -- 1,790
-------- -------- --------
Net Cash Provided By Financing Activities 7,200 -- 8,990
-------- -------- --------
Net Increase (Decrease) in Cash and Cash Equivalents 575 (23) 609
Cash and Cash Equivalents at Beginning of Period 34 81 --
-------- -------- --------
Cash and Cash Equivalents at End of Period $ 609 $ 58 $ 609
======== ======== ========
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest $ -- $ -- $ --
Income taxes $ -- $ -- $ --
See notes to unaudited condensed
financial statements.
-3-
</TABLE>
<PAGE>
ZEDIK ENTERPRISES, INC.
(A Development Stage Company)
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
Basis of Presentation
- ---------------------
The accompanying financial information of the Company is prepared in accordance
with the rules prescribed for filing condensed interim financial statements and,
accordingly, does not include all disclosures that may be necessary for complete
financial statements prepared in accordance with generally accepted accounting
principles. The disclosures presented are sufficient, in management's opinion,
to make the interim information presented not misleading. All adjustments,
consisting of normal recurring adjustments, which are necessary so as to make
the interim information not misleading, have been made. Results of operations
for the six months ended June 30, 1999 are not necessarily indicative of results
of operations that may be expected for the year ending December 31, 1999. It is
recommended that this financial information be read with the complete financial
statements included in the Company's Form 10-SB previously filed with the
Securities and Exchange Commission.
Per Share Information
- ---------------------
As of December 31, 1997, the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 128, "Earnings Per Share," which specifies the method of
computation, presentation and disclosure for earnings per share. SFAS No. 128
requires the presentation of two earnings per share amounts, basic and diluted.
Basic earnings per share is calculated using the average number of common shares
outstanding. Diluted earnings per share is computed on the basis of the average
number of common shares outstanding plus the dilutive effect of outstanding
stock options using the "treasury stock" method.
The basic and diluted earnings per share are the same because the Company did
not have any outstanding stock options during the periods presented.
-4-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Company seeks merger candidates with on-going operations. As of June
30, 1999, the Company had not identified any such candidates.
Results of Operations
- ---------------------
Three Months Ended June 30, 1999 vs. Three Months Ended June 30, 1998.
No operating revenues were generated during the three months ended June 30,
1999 and 1998. Operating expenses increased by $2,555 to $2,566 for the three
months ended June 30, 1999 compared to $11 for the three months ended June 30,
1998. The increase in operating expenses resulted from professional fees
incurred in connection with filing a Form 10-SB. The Company's net loss
increased to $2,783 for the three months ended June 30, 1999 compared to $11 for
the three months ended June 30, 1998.
Six Months Ended June 30, 1999 vs. Six Months Ended June 30, 1998.
No operating revenues were generated during the six months ended June 30,
1999 and 1998. Operating expenses increased by $9,102 to $9,125 for the six
months ended June 30, 1999 compared to $23 for the six months ended June 30,
1998. The increase in operating expenses resulted from professional fees
incurred in connection with filing Form 10-SB. The Company's net loss increased
to $9,428 for the six months ended June 30, 1999 compared to $23 for the six
months ended June 30, 1998.
Liquidity and Capital Resources
- -------------------------------
In February and March 1999, stockholders loaned $7,200 to the Company. The
loans bear interest at 12% and are payable upon demand. The Company had a
working capital deficiency of $9,394 at June 30, 1999.
The Company does not have sufficient funds to continue its operating
activities. Future operating activities are expected to be funded by loans from
major stockholders.
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
Reports on Form 8-K: During the three months covered by this report, the Company
filed no reports on Form 8-K.
5
<PAGE>
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 thereto duly authorized.
Date: July 30, 1999 Zedik Enterprises, Inc.
-----------------------
(Registrant)
/s/ Earnest Mathis, Jr.
-----------------------
Earnest Mathis, Jr.
President
/s/ Gary J. McAdam
------------------
Gary J. McAdam
Treasurer
(Principal Accounting Officer)
and Secretary
6
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 609
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 609
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 609
<CURRENT-LIABILITIES> 10,003
<BONDS> 0
0
0
<COMMON> 2,602
<OTHER-SE> (11,996)
<TOTAL-LIABILITY-AND-EQUITY> 609
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 9,125
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 303
<INCOME-PRETAX> (9,428)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,428)
<EPS-BASIC> (.01)
<EPS-DILUTED> (.01)
</TABLE>
