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, 2000
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, 2000.
<PAGE>
PART I. FINANCIAL INFORMATION.
Item 1. Financial Statements.
ZEDIK ENTERPRISES, INC.
(A Development Stage Company)
UNAUDITED CONDENSED BALANCE SHEET
JUNE 30, 2000
ASSETS
------
Current Assets:
Cash and cash equivalents $ 4,557
--------
Total Assets $ 4,557
========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
Current Liabilities:
Account payable - trade $ 4,950
Notes payable - stockholders 24,300
Accrued interest - stockholders 2,035
--------
Total Current Liabilities 31,285
--------
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 (29,330)
--------
Total Stockholders' Equity (Deficit) (26,728)
--------
Total Liabilities and Stockholders' Equity (Deficit) $ 4,557
========
See notes to unaudited condensed
financial statements.
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<TABLE>
<CAPTION>
ZEDIK ENTERPRISES, INC.
(A Development Stage Company)
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999 AND
FOR THE PERIOD FROM FEBRUARY 23, 1996 (DATE OF INCEPTION)
TO JUNE 30, 2000
Three Months Ended Six Months Ended
June 30, June 30, Inception to
----------- ----------- June 30,
2000 1999 2000 1999 2000
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Revenue $ -- $ -- $ -- $ -- $ --
Operating expenses 2,924 2,566 9,267 9,125 27,295
--------- --------- --------- --------- ---------
Loss From Operations (2,924) (2,566) (9,267) (9,125) (27,295)
--------- --------- --------- --------- ---------
Other Income (Expense):
Interest expense - stockholders (599) (217) (1,040) (303) (2,035)
--------- --------- --------- --------- ---------
Total Other Income (Expense) (599) (217) (1,040) (303) (2,035)
--------- --------- --------- --------- ---------
Net Loss $ (3,523) $ (2,783) $ (10,307) $ (9,428) $ (29,330)
========= ========= ========= ========= =========
Net loss per share of common stock:
Basic $ -- $ -- $ (.01) $ (.01) $ (.03)
========= ========= ========= ========= =========
Diluted $ -- $ -- $ (.01) $ (.01) $ (.03)
========= ========= ========= ========= =========
Weighted average number of common
shares outstanding:
Basic 976,200 976,200 976,200 976,200 973,594
Diluted 976,200 976,200 976,200 976,200 973,594
See notes to unaudited
condensed financial statements.
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</TABLE>
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<TABLE>
<CAPTION>
ZEDIK ENTERPRISES, INC.
(A Development Stage Company)
UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999 AND
FOR THE PERIOD FROM FEBRUARY 23, 1996 (DATE OF INCEPTION)
TO JUNE 30, 2000
Six Months Ended
June 30, Inception to
-------- June 30,
2000 1999 2000
---- ---- ----
<S> <C> <C> <C>
Cash Flows From Operating Activities:
Net loss $(10,307) $ (9,428) $(29,330)
Adjustments to reconcile net loss to net cash
(used) by operating activities:
Expense from issuance of common stock -- -- 812
Changes in liabilities:
Accounts payable 2,450 2,500 4,950
Accrued interest 1,040 303 2,035
-------- -------- --------
Net Cash (Used) By Operating Activities (6,817) (6,625) (21,533)
-------- -------- --------
Cash Flows From Financing Activities:
Proceeds from stockholders loans 9,600 7,200 24,300
Issuance of common stock -- -- 1,790
-------- -------- --------
Net Cash Provided By Financing Activities 9,600 7,200 26,090
-------- -------- --------
Net Increase in Cash and Cash Equivalents 2,783 575 4,557
Cash and Cash Equivalents at Beginning of Period 1,774 34 --
-------- -------- --------
Cash and Cash Equivalents at End of Period $ 4,557 $ 609 $ 4,557
======== ======== ========
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest $ -- $ -- $ --
Income taxes $ -- $ -- $ --
See notes to unaudited
condensed financial statements.
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</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, 2000 are not necessarily indicative of results
of operations that may be expected for the year ending December 31, 2000. It is
recommended that this financial information be read with the complete financial
statements included in the Company's Annual Report on Form 10-KSB for the year
ended December 31, 1999 previously filed with the Securities and Exchange
Commission.
Per Share Information
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.
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Item 2. Management's Discussion And Analysis or Plan of Operation.
The Company seeks merger candidates with ongoing operations. As of June 30,
2000, the Company had not identified any such candidates.
Results of Operations.
----------------------
Three Months Ended June 30, 2000, vs. Three Months Ended June 30, 1999.
No operating revenues were generated during the three months ended June 30,
2000 and 1999. Operating expenses increased by $358 to $2,924 for the three
months ended June 30, 2000, compared to $2,566 for the three months ended June
30, 1999. The Company's net loss increased to $3,523 for the three months ended
June 30, 2000, compared to $2,783 for the three months ended June 30, 1999.
Six Months Ended June 30, 2000, vs. Six Months Ended June 30, 1999.
No operating revenues were generated during the six months ended June 30,
2000 and 1999. Operating expenses increased by $142 to $9,267 for the six months
ended June 30, 2000, compared to $9,125 for the six months ended June 30, 1999.
The Company's net loss increased to $10,307 for the six months ended June 30,
2000, compared to $9,428 for the six months ended June 30, 1999.
Liquidity and Capital Resources.
--------------------------------
As of June 30, 2000, stockholders have loaned $24,300 to the Company. The
loans bear interest at 12% and are payable on demand. The Company had a working
capital deficiency of $26,728 as of June 30, 2000.
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.
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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.
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: August 7, 2000 ZEDIK ENTERPRISES, INC.
(Registrant)
/s/ Earnest Mathis, Jr.
-----------------------
Earnest Mathis, Jr.
Chief Executive Officer, Chief Financial
Officer (Principal Accounting Officer),
Secretary and Director
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