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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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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 March 31, 1999.
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from:
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Commission file number 0-24977
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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 March 31, 1999 was 1,430,700 shares.
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<PAGE> 2
PART I
ITEM 1. FINANCIAL STATEMENTS.
MIZAR ENERGY COMPANY
(A Development Stage Company)
BALANCE SHEET
March 31, 1999 (Unaudited)
<TABLE>
ASSETS
<S> <S>
CURRENT ASSETS
Cash $ 9,826
---------
$ 9,826
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Reserve for reclamation cost $ 3,500
Accounts payable 3,774
---------
7,274
STOCKHOLDERS' EQUITY
Preferred stock, 10,000,000 shares
authorized, no par value; none
issued and outstanding -
Common stock, 25,00,000 shares
authorized, no par value;
1,430,700 shares issued and
outstanding 44,869
Accumulated deficit (42,317)
---------
Total Stockholders' Equity 2,552
---------
$ 9,826
=========
</TABLE>
<PAGE> 3
MIZAR ENERGY COMPANY
(A Development Stage Company)
STATEMENT OF OPERATIONS
For the Three Months Ended March 31, 1999 and 1998
and For the Period From Inception (December 11, 1996) as a
Development Stage Company to March 31, 1999
<TABLE>
<CAPTION>
From Inception
of Development
Three Months Three Months Stage to
1999 1998 March 31, 1999
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
REVENUES $ - $ - $ -
EXPENSES
Lease operating costs - 2,932 8,162
General and
administrative 3,776 333 16,279
Impairment of oil and
gas properties - - 17,876
-------- -------- ---------
3,776 3,265 42,317
NET LOSS $ (3,776) $ (3,265) $ (42,317)
======== ======== =========
</TABLE>
<PAGE> 4
MIZAR ENERGY COMPANY
(A Development Stage Company)
STATEMENT OF CASH FLOWS
For the Three Months Ended March 31, 1999 and 1998
and For the Period From Inception (December 11, 1996) as a
Development Stage Company to March 31, 1999
<TABLE>
<CAPTION>
From Inception
of Development
Stage to
1999 1998 March 31, 1999
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATIONS
Net loss $ (3,776) $ (3,265) $ (42,317)
Adjustment to reconcile
net loss to net cash
used by operating
activities:
Amortization - 22 446
Impairment of oil and
gas properties - - 17,876
Increase in organization
costs - - (446)
Increase in accounts
payable 3,774 - 3,774
-------- -------- ---------
Net cash used by
operating activities (2) (3,243) (20,667)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchase of oil and
gas properties - - (17,876)
Sale of oil and gas
properties - - 3,500
--------- -------- ---------
Net cash provided (used
by investing activities (14,376)
CASH FLOWS FROM FINANCING
ACTIVITIES
Advances from related
parties - - 10,423
Repayments to related
parties - - (10,423)
Issuance of common stock - - 60,700
Deferred offering costs - - (15,831)
--------- -------- ---------
Net cash provided by
financing activities - - 44,869
--------- -------- ---------
NET INCREASE (DECREASE)
IN CASH (2) (3,243) 9,826
CASH, beginning of period 9,828 4,057 -
-------- -------- ---------
CASH, end of period $ 9,826 $ 814 $ 9,826
======== ======== =========
</TABLE>
<PAGE> 5
MIZAR ENERGY Company
NOTES TO FINANCIAL STATEMENTS
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 pay reclaimation 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
reclaimation costs if its assignee fails to pay these costs.
<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 $19,000 in cash as of September 30, 1998,
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) Exhibits
EXHIBIT INDEX
Exhibit
No. Description.
27 Financial Data Schedule
(b) Reports on Form 8-K
No reports were filed on Form 8-K during the quarter ended March
31, 1999.
<PAGE> 8
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 14th day of May, 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
Consolidated Statement of Financial Condition at March 31, 1999 (Unaudited)
and the Consolidated Statement of Income for the three months ended March
31, 1999 (Unaudited) and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 9,826
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,826
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 9,826
<CURRENT-LIABILITIES> 7,274
<BONDS> 0
0
0
<COMMON> 44,869
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 9,826
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,776
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,776)
<EPS-PRIMARY> 0.002
<EPS-DILUTED> 0.002
</TABLE>
