SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2000
Commission file number 000-30563
DELTA MUTUAL, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 14-1818394
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
335 Garden Street, Suite 4, Hoboken, New Jersey 07030
(Address of principal executive offices (zip code)
(201) 653-7384
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the last 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
Indicate the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date.
Class Outstanding at
June 30, 2000
Common Stock, par value $0.001 557,000
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ITEM 1. FINANCIAL STATEMENTS
Delta Mutual, Inc. - A Development Stage Company
Balance Sheets
June 30,2000 December 31,1999
(Unaudited)
Assets
Cash $1,724 $5,383
------- -------
Total Assets $1,724 $5,383
======= =======
Liabilities and Shareholders' Equity
Accrued Liabilities $3,400 $2,700
Accrued Interest - 14
------- -------
Liabilities 3,400 2,714
------- -------
Shareholders' Equity
Loan from Shareholder - 4,950
Common Stock, Par Value $0.0001,
20,000,000 Shares Authorized;
557,000 and 485,000 Shares Issued
and Outstanding at June 30 and
December 31, 2000, respectively 56 49
Paid In Capital 10,694 3,502
Deficit Accumulated During The
Development Stage (12,426) (5,831)
------- -------
Shareholders' Equity (1,676) 2,669
------- -------
Total Liabilities and Shareholders'
Equity $1,724 $5,383
======= =======
See Accompanying Notes to Financial Statements
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Delta Mutual, Inc. - A Development Stage Company
Statements of Loss (Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
For the Period For the For the For the
Since Inception Six Months Three Three
(November 17, Ended Months Months
1999) to June June 30, Ended June Ended March
30, 2000 2000 30, 2000 31, 2000
Revenue $ - $ - $ - $ -
Expenses
Legal and Accounting Services 9,590 5,397 1,897 3,500
Other Corporate Expenses 2,546 972 486 486
Interest 50 36 6 30
Taxes 240 190 - 190
-------- ------- ------- -------
12,426 6,595 2,389 4,206
-------- ------- ------- -------
(Loss) for period $ (12,426) $ (6,595) $ (2,389) $ (4,206)
======== ======= ======= =======
Average shares of Common Stock 509,750 513,286 550,333 485,667
======== ======= ======= =======
(Loss) per Common Share $ (0.02) $ (0.01) $ (0.00) $ (0.01)
======== ======= ======= =======
</TABLE>
See Accompanying Notes to Financial Statements
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Delta Mutual, Inc. - A Development Stage Company
Statements of Cash Flows (Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
(Uses) / Sources of Cash
For the Period For the For the For the
Since Inception Six Months Three Three
(November 17, Ended Months Months
1999) to June June 30, Ended June Ended March
30, 2000 2000 30, 2000 31, 2000
Operating Cash Flow
(Loss) for period $ (12,426) $ (6,595) $ (2,389) $ (4,206)
Less- Interest Accrued 50 36 6 30
Less- Accrued Liabilities 3,400 700 210 490
-------- ------- ------- -------
Net Cash Used By Operations (8,976) (5,859) (2,173) (3,686)
-------- ------- ------- -------
Financing
Sale of Common Stock 10,750 7,200 7,000 200
Loan from Shareholder 4,950 - -
Repayment to Shareholder (4,950) (4,950) (4,950)
-------- ------- ------- -------
Net Cash From Financing 10,750 2,250 2,050 200
-------- ------- ------- -------
Increase / (Decrease) In Cash 1,774 (3,609) (123) (3,486)
Cash - Beginning - 5,383 1,897 5,383
-------- ------- ------- -------
Cash - Ending $ 1,774 $ 1,774 $ 1,774 $ 1,897
Cash Paid for Interest $ 50 $ 50 $ 50 $ -
======== ======= ======= =======
Cash Paid for Income Taxes $ - $ - $ - $ -
======== ======= ======= =======
</TABLE>
See Accompanying Notes to Financial Statements
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Delta Mutual, Inc. - A Development Stage Company
Statement of Shareholders' Equity
from Inception (November 17, 1999) to June 30, 2000 (Unaudited)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Loan From Number of Common Paid In
Shareholder Shares Stock Capital Deficit Total
Balance at Inception
(Mid-November, 1999) - - - - - -
Sale of Common Stock - 485,000 $ 49 $ 3,502 $ - $ 3,550
Loan from Shareholder $ 4,950 - - - - 4,950
Deficit for the period
from Inception to
December 31, 1999 - - - - (5,831) (5,831)
------ ------- ---- ------- ------ -------
Balance at
December 31, 1999 4,950 485,000 49 3,502 (5,831) 2,669
------ ------- ---- ------- ------ -------
Sale of Common Stock - 2,000 - 200 - 200
Deficit for the period
from January 1 to
March 31, 2000 - - - - (4,206) (4,206)
------ ------- ---- ------- ------ -------
Balance at
March 31, 2000 4,950 487,000 49 3,702 (10,037) (1,337)
------ ------- ---- ------- ------ -------
Sale of Common Stock 70,000 7 6,993 7,000
Repayment of
Shareholder Loan (4,950) (4,950)
Deficit for the
period from April 1
to June 30, 2000 (2,389) (2,389)
------ ------- ---- ------- ------ -------
Balance at
June 30, 2000 $ - 557,000 $ 56 $ 10,695 $(12,426) $ (1,676)
====== ======= ==== ======= ====== =======
</TABLE>
See Accompanying Notes to Financial Statements
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Delta Mutual, Inc. - A Development Stage Company
Notes to Financial Statements
from Inception (November 17, 1999) to June 30, 2000 (Unaudited)
Note 1 - Organization and Summary of Significant Accounting Policies
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles ("GAAP") for
interim financial information and Item 310(b) of Regulation SB. They do
not include all of the information and footnotes required by GAAP for
complete financial statements. In the opinion of management, all
adjustments (consisting only of normal recurring adjustments)
considered necessary for a fair presentation have been included. The
results of operations for the periods presented are not necessarily
indicative of the results to be expected for the full year. For further
information, refer to the financial statements of the Company as of
December 31, 1999 and for the period since inception (November 17,1999)
then ended, including notes thereto included in the Company's Form 10-
SB, as amended.
Organization:
The Company was incorporated in the State of Delaware on November 17,
1999.
Development Stage Operations:
The Company is in its start-up phase and has no operating history. From
inception to June 30, 2000, the Company has not recognized any revenue;
also, the Company has not capitalized any costs associated with its
start-up.
Income Taxes:
The Company has not recognized any provision for the tax benefits
associated with its loss from inception to June 30, 2000. Such loss may
be carried forward for tax-return purposes. However, the Company is
unable to predict the nature, timing and extent of near-term
profitability; accordingly the Company presently intends to recognize
such carryforward benefits when realized.
Note 2 - Development Stage Operations
The Company is in its start-up phase and has no operating history. The
Company's business is subject to most of the risks inherent in the
establishment of a new business enterprise. The likelihood of success
of the Company must be considered in light of the expenses,
difficulties, delays and unanticipated challenges encountered in
connection with the formation of a new business, raising operating and
development capital, and the marketing of a new product.
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The Company presently does not have sufficient liquid assets to finance
its anticipated funding needs and obligations. If fundraising
activities are not successfully completed, the Company may not be able
to meet its obligations as they become due and, accordingly, may not be
able to continue its business operations as presently anticipated.
Note 3 - Common Stock
The Company has a single class of Common Stock with a par value of
$0.0001 per June 30, 2000, 557,000 shares were issued and outstanding.
The president of the Company was issued 300,000 shares in November of
1999.
Since inception, the Company issued shares of its stock to investors
for cash as follows:
Number of
Date of Issue Shares Amount
November, 1999 450,000 $50
December, 1999 35,000 3,500
March, 2000 2,000 200
April, 2000 50,000 5,000
May, 2000 20,000 2,000
---------- ----------
557,000 $10,750
========== ==========
Such shares were issued without registration in reliance on exemptions
in federal securities laws, including, in part, an exemption that
permits issuance of stock up to $1 million without registration of the
securities.
Note 4 - Related Party Transactions
As described in Note 3, the president of the Company was issued 300,000
shares in November of 1999. The secretary of the Company was issued
150,000 shares of in November of 1999.
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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Company has registered its common stock on a Form 10-SB registration
statement filed pursuant to the Securities Exchange Act of 1934 (the
"Exchange Act") and Rule 12(g) thereof. The Company files with the
Securities and Exchange Commission periodic reports under Rule
13(a) of the Exchange Act, including quarterly reports on Form 10-QSB and
annual reports Form 10-KSB.
The Company is in the initial stages of startup and is exploring the
feasibility of raising sufficient capital to implement its business plan. The
Company has been in the development stage since inception (November 17, 1999).
The Company has, and will continue to have until it raises sufficient amounts,
limited capital with which to commence operational activities. At the present
time, the Company has not commenced operations or any activities beyond the
planning stage; furthermore, the Company is unable to predict at the present
time when its initial startup stage will be complete and it will be able to
commence any operational activities.
The Company has incurred only nominal accrued expenses, without revenues to
date.
Until the Company completes its business planning and commences acquiring the
assets and resources necessary to execute its business plan, it will continue
to have limited needs for additional funding. Thusfar, expenses of its audit,
legal and professional requirements, have been and continue to be met by the
proceeds from the sale of stock to initial investors. No significant cash or
funds are expected to be required for the Company to complete its business
planning. The Registrant enjoys the non-exclusive use of office,
telecommunication and incidental supplies of stationary, provided by its
Officers.
The following language is found in the notes of the Company's financial
statements at December 31, 1999 (such statements being included in a previously
filed Form 10SB):
"Note 2 - Development Stage Operations
The Company is in its start-up phase and has no operating history. The Com-
pany's business is subject to most of the risks inherent in the establishment
of a new business enterprise. The likelihood of success of the Company must
be considered in light of the expenses, difficulties, delays and unanticipated
challenges encountered in connection with the formation of a new business,
raising operating and development capital, and the marketing of a new product.
The Company presently does not have sufficient liquid assets to finance its
anticipated funding needs and obligations. If fundraising activities are not
successfully completed, the Company may not be able to meet its obligations as
they become due and, accordingly, may not be able to continue its business
operations as presently anticipated.."
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COMPUTER SYSTEMS REDESIGNED FOR YEAR 2000
Many existing computer programs use only two digits to identify a year in
such program's date field. These programs were designed and developed
without consideration of the impact of the change in century for which four
digits will be required to accurately report the date. If not corrected,
many computer applications could fail or create erroneous results by or
following the year 2000 ("Year 2000 Problem"). Many of the computer programs
containing such date language problems have not been corrected by the
companies or governments operating such programs. The Company does not have
operations and does not maintain computer systems. However, it is
impossible to predict what computer programs will be affected, the impact any
such computer disruption will have on other industries or commerce or the
severity or duration of a computer disruption.
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are no legal proceedings against the Company and the Company is unaware
of such proceedings contemplated against it.
ITEM 2. CHANGES IN SECURITIES
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibits
There were no exhibits, subsequent to those presented in Form 10SB12G (as
amended), filed by the Company during the quarter. Exhibit 27 - Financial Data
Schedule (for the quarter ended June 30, 2000) is appended to this filing
Reports on Form 8-K
There have been no reports on Form 8-K filed by the Company during the quarter
(or since inception).
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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.
DELTA MUTUAL, INC.
By: /s/ James Platek
James Platek - President and Chief Executive Officer
/s/ Bonnie Cunningham
Bonnie Cunningham - Secretary and Treasurer
Dated: August 9, 2000
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[PERIOD-TYPE] 3-MOS
[FISCAL-YEAR-END] DEC-31-2000
[PERIOD-END] JUN-30-2000
[CASH] 1,724
[SECURITIES] 0
[RECEIVABLES] 0
[ALLOWANCES] 0
[INVENTORY] 0
[CURRENT-ASSETS] 0
[PP&E] 0
[DEPRECIATION] 0
[TOTAL-ASSETS] 0
[CURRENT-LIABILITIES] 3,400
[BONDS] 0
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[COMMON] 56
[OTHER-SE] (1,732)
[TOTAL-LIABILITY-AND-EQUITY] 1,724
[SALES] 0
[TOTAL-REVENUES] 0
[CGS] 0
[TOTAL-COSTS] 0
[OTHER-EXPENSES] 2,359
[LOSS-PROVISION] 0
[INTEREST-EXPENSE] 30
[INCOME-PRETAX] (2,389)
[INCOME-TAX] 0
[INCOME-CONTINUING] 0
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] (2,389)
[EPS-BASIC] (.00)
[EPS-DILUTED] (.00)
11
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