<PAGE> 1
- - -----------------------------------------------------------------
- - -----------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
----------------------------------
FORM 10-QSB
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from:
------------------------------
Commission file number 0-24977
------------------------------
MIZAR ENERGY COMPANY
(Exact name of Registrant as specified in its charter.)
COLORADO 33-0231238
(State of other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
5459 South Iris Street
Littleton, Colorado 80123
(Address of principal executive offices, including zip code.)
(303) 932-9998
Registrant's telephone number, including area code.
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities 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 [ ]
The number of shares outstanding of the Registrant's Common Stock, no
par value per share, at September 30, 1999 was 1,430,700 shares.
- - -----------------------------------------------------------------
- - -----------------------------------------------------------------
<PAGE> 2
PART I
ITEM 1. FINANCIAL STATEMENTS.
Mizar Energy Company
(A Development Stage Company)
BALANCE SHEET
September 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
ASSETS
<S> <C>
CURRENT ASSETS
Cash $ 5,583
----------
$ 5,583
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Reserve for reclamation cost 3,500
Accounts payable 585
----------
4,085
Stockholders' Equity
Preferred stock, 10,000,000 shares authorized
no par value; none issued and outstanding
Common stock, 25,000,000 shares authorized,
no par value; 1,430,700 shares issued and
outstanding 44,869
Accumulated deficit (43,371)
----------
Total Stockholders' Equity 1,498
----------
Total Liabilities and
Stockholders' Equity $ 5,583
==========
</TABLE>
1
<PAGE> 3
Mizar Energy Company
(A Development Stage Company)
STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 1999 and 1998
and For the Period From Inception (December 11, 1996) as a
Development Stage Company to September 30, 1999
<TABLE>
<CAPTION>
From
inception of
Three Three Nine Nine Development
Months Months Months Months Stage
1999 1998 1999 1998 09/30/99
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ - $ -
EXPENSES
Lease operating
costs - 500 - 2,780 8,162
General and
administrative 902 4,239 4,830 7,532 17,333
Impairment of
oil and gas
properties - - - - 17,876
------- -------- -------- --------- ---------
902 4,739 4,830 10,312 43,371
NET LOSS $ (902) $ (4,739) $ (4,830) $ (10,312) $ (43,371)
====== ======== ======== ========= =========
</TABLE>
2
<PAGE> 4
Mizar Energy Company
(A Development Stage Company)
STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 1999 and 1998
and For the Period From Inception (December 11, 1996) as a
Development Stage Company to September 30, 1999
<TABLE>
<CAPTION>
From Inception
of Development
Stage Company to
1999 1998 September 30, 1999
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATIONS
Net loss $ (4,830) $ (10,312) $ (43,371)
Adjustments to reconcile net
loss to net cash used by
operating activities:
Amortization - 67 446
Impairment of oil
and gas properties - - 17,876
Increase in organization
costs - - (446)
Increase in accounts
payable 585 - 585
-------- --------- ---------
Net cash used by operating
activities (4,245) (10,245) (24,910)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of oil
and gas properties - - (17,876)
Sale of oil and gas
properties - 3,126 3,500
-------- --------- ---------
Net cash provided (used) by
investing activities - 3,126 (14,376)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related
parties - - 10,423
Repayments to related parties - (5,000) (10,423)
Issuance of common stock - 26,600 60,700
Deferred offering costs - - (15,831)
-------- --------- ---------
Net cash provided by financing
activities - 21,600 44,869
-------- --------- ---------
NET INCREASE (DECREASE)
IN CASH (4,245) 14,481 5,583
CASH, beginning of period 9,828 4,057 -
-------- --------- ---------
CASH, end of period $ 5,583 $ 18,538 $ 5,583
======== ========= =========
</TABLE>
3
<PAGE> 5
Mizar Energy Company
NOTES TO FINANCIAL STATEMENT
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Business
Mizar Energy Company (the "Company") was incorporated in the state of
Colorado on December 11, 1996 and had no previous operations. The
Company plans to be engaged in the business of acquiring, developing
and operating oil and gas properties. The Company is currently in the
development stage.
Oil and Gas Properties
In 1997, the Company acquired oil and gas mineral leases. In April
1998, the Company sold its working interest in these leases for an
overriding royalty interest. The Company retained the rights to the
surface equipment in this transaction. On December 31, 1997, the
Company adjusted its investment in the royalty interest to its net
realizable value.
Private Stock Offering
In June 1998, the Company completed a private offering of its common
stock. Under terms of the offering, the Company issued 30,700 shares at
$1.00 per share. After offering costs of $15,831, net proceeds to the
Company amounted to $14,869.
Commitments and Contingencies
In 1999, the Company's underlying interest in oil and gas property
expired. In connection with this interest, the Company could, if the
assignee of the underlying interest fails to payreclaimation costs of
the expired interest in the oil and gas properties, be obligated to pay
these costs. The Company has estimated and reserved $3,500 to pay the
reclamation costs if its assignee fails to pay these costs.
4
<PAGE> 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
Plan of Operation
The following discussion should be read in conjunction with the
consolidated financial statements and notes thereto.
The Company is considered to be in the development stage as
defined in Statement of Financial Accounting Standards No. 7. There
have been no operations since incorporation.
The Company's future proposed plan calls for it to consider and
acquire oil and gas leases for acquisition or development.
The Company believes it can satisfy is cash requirements for the
next twelve months as it relates to its current administrative and
start-up costs. Although it is anticipated that the Company may
require additional funding over the next twelve months to acquire
and/or develop future oil and gas properties.
The Company's future proposed plans call for it to consider
several factors in choosing additional properties for acquisition and
development. First, the Company considers those regions in which one
or more of its management or other technical personal have field of
experience. The Company's initial acquisition is located in Kansas.
The Company anticipates acquiring additional leases in Colorado. At
the present time the Company has not targeted any additional oil and
gas leases for acquisition. The Company intends to acquire the oil and
gas leases from other existing oil companies that are brought to the
attention of Company's management.
The Company owns the surface equipment from its initial oil and
gas acquisition in Kansas. To date the Company has sold one pumping
unit for $3,500 in cash. The remaining equipment is currently for
sale.
The Company is a development stage company and currently has no
employees other than its Officers and Directors. Management of the
Company expects to hire additional employees as needed.
Liquidity and Capital Resources.
The Company sold 1,400,000 shares of its Common Stock to officers
and directors for $30,000 in cash. The Company also completed an
offering of 30,700 shares in June 1998 for $30,700 in cash. A portion
of the foregoing was used for organizational matters and the purchase
of one oil and gas lease. The Company has no operating history. The
Company has approximately $5,500 in cash as of September 30, 1999,
which the Company intends to use for working capital and to purchase
additional oil and gas leases.
<PAGE> 7
PART II.
Item 6. Exhibits and Reports on Form 8-K.
(a) Reports on Form 8-K
No reports were filed on Form 8-K during the quarter ended
September 30, 1999.
(b) Exhibits.
EXHIBIT INDEX
Exhibit
No. Description.
27 Financial Data Schedule
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.
Dated this 12th day of November, 1999.
MIZAR ENERGY COMPANY
(the "Registrant")
BY: /s/ Philip J. Davis
Philip J. Davis
President, Treasurer and member of
the Board of Directors
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Statement of Financial Condition at September 30, 1999 (Unaudited) and the
Statement of Income for the nine months ended September 30, 1999 (Unaudited)
and is qualified in entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 5,583
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,583
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 4,085
<BONDS> 0
0
0
<COMMON> 44,869
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 5,583
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,830
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,830)
<EPS-BASIC> (0.003)
<EPS-DILUTED> (0.003)
</TABLE>
