UNITED STATES
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
For the Quarter ended September 30, 1999
or
( ) Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act oft 1934
For the transition period from _____________ to ______________
Commission File Number: 0-8536
THE NEW PARAHO CORPORATION
(Exact name of registrant as specified in its charter)
Colorado 84-1034362
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
5387 Manhattan Circle, #104, Boulder, CO 80303-4219
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (303) 543-8900
__________________________________________________________________
(Former name, former address and former fiscal year, if changed
since last report.)
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 Exchange Act of 1934 during the preceding twelve 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.
(x) Yes ( ) No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
50,772,982 shares of $.01 par value common stock as of September
30, 1999.
Transitional Small Business Disclosure Format (check one):
Yes ( ) No(x)
1 of 9 pages
PART I: FINANCIAL INFORMATION
Item 1. Financial Statements.
THE NEW PARAHO CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
ASSETS September 30, June 30,
1999 1999
(Unaudited)
____________ ___________
Current Assets:
<S> <C> <C>
Cash $ 30,216 $ 60,746
Accounts Receivable 11,000 11,000
Prepaid Expenses and other 6,821 9,771
Total Current Assets 48,037 81,517
Supplies 12,044 12,044
Plant, Furniture and Equipment,
at cost (net of accumulated
depreciation) 614 614
Mineral Properties 40,525 40,525
Patent, at cost (net of
accumulated amortization) 27,790 28,489
Other Assets 27,000 27,000
Total Assets $ 156,010 $ 190,189
</TABLE>
-Continued on the following page-
-2-
THE NEW PARAHO CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
-Continued from previous page-
<TABLE>
LIABILITIES AND SHAREHOLDERS' EQUITY September 30, June 30,
1999 1999
(Unaudited) __________
Current Liabilities:
<S> <C> <C>
Accounts Payable $ 18,469 $ 22,753
Accrued Liabilities 3,486 2,324
Reclamation Liability 100,000 100,000
Total Current Liabilities 121,955 125,077
Long Term Liabilities:
Note Payable (Note 3) 865,596 865,596
Shareholder's Equity:
Common Stock - $.01 par value,
authorized - 75,000,000 shares;
issued - 50,980,400; outstanding -
50,772,982 507,730 507,730
Par value of common stock issued in
excess of the fair market value of
assets acquired (352,648) (352,648)
Accumulated deficit (986,623) (955,566)
Total Shareholders' Equity (831,541) (800,484)
$156,010 $190,189
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
-3-
THE NEW PARAHO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
Three Months Three Months
Ended Ended
September 30, September 30,
1999 1998
<S> <C> <C>
REVENUES:
Interest Income $ 463 $ 393
Other 600 1,125
TOTAL REVENUES 1,063 1,518
COSTS AND EXPENSES:
Asphalt Research
General & Admin. 32,120 36,844
TOTAL COSTS & EXPENSES 32,120 36,844
NET INCOME (LOSS) ($31,057) $(35,326)
INCOME (LOSS) PER SHARE ($0.00) $(0.00)
Weighted average
shares outstanding 50,772,982 50,772,982
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
-4-
THE NEW PARAHO CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
Three Months Three Months
Ended Ended
September 30, September 30,
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net Loss ($31,057) $ (35,326)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization 699 4,380
Change in operating assets and liabilities:
Change in receivables - -
Change in inventory - -
Change in prepaid expenses and other assets 2,950 1,681
Change in accounts payable (4,284) 2,833
Change in accrued liabilities 1,162 1,064
Net cash used in operating activities (30,530) (25,368)
Cash flows from investing activities:
Net cash used by investing activities - -
Cash flows from financing activities:
Net cash provided (used) by financing
activities - -
Net decrease in cash (30,530) (25,368)
Cash at beginning of year 60,746 29,594
Cash at end of quarter $ 30,216 $ 4,226
</TABLE>
The accompanying notes are an integral part
of these consolidated financial statements.
-5-
<PAGE>
THE NEW PARAHO CORPORATION AND SUBSIDIARIES NOTES
NOTE 1 - MANAGEMENT REPRESENTATION
In the opinion of management, the accompanying unaudited
financial statements contain all adjustments (consisting of normal
recurring adjustments) necessary to present fairly the financial
position as of September 30, 1999 and the results of operations and
cash flows for the periods presented. The results of operations
for the three month period ended September 30, 1999 are not
necessarily indicative of the results to be expected for the full
year. The June 30, 1999 balance sheet presented in this report is
derived from the June 30, 1999 audited financial statements but
does not include all disclosures required by generally accepted
accounting principles.
Certain information and footnote disclosures normally required
by generally accepted accounting principles have been condensed or
omitted. It is suggested that these condensed financial statements
be read in conjunction with the financial statements and notes
thereto included in the Company's June 30, 1999 audited report in
Form 10-K, filed with the Securities and Exchange Commission.
NOTE 2 - DEBT
On May 1, 1994, the Company's line of credit from the Tell
Ertl Family Trust was increased to $5,500,000 and in May 1999, the
note was amended to reflect a maturity date of July 1, 2000.
Effective July 1, 1995, the Company was relieved and discharged of
all obligations to pay accrued interest on the line. In addition,
the line shall no longer accrue interest as of July 1, 1995. The
terms of the note provide that the Trust reserves the right to
approve activities and budgets of the Company during the term of
the promissory note. The balance of the note at September 30, 1999
was $865,596.
-6-
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation.
LIQUIDITY AND CAPITAL RESOURCES
The Company realized a decrease in working capital of $30,358
during the three months ended September 30, 1999. Funds were
primarily provided by income from the rental of its Rifle facility.
On August 29, 1989 the Company signed an unsecured promissory
note with the Tell Ertl Family Trust. The principal amount of this
note was increased to a total of $5,500,000 on May 1, 1994. As of
September 30, 1998, the Company owed $865,596 to the Trust. The
funds were used to cover the cost of operating expenses and asphalt
research and development. On December 18, 1996, the Company
executed an assignment of its interest in the note receivable from
The Oil Shale Company to the Trust in partial repayment of this
note. The Company does not expect to be able to pay the balance
remaining on this note when it becomes due.
The Company's three principal objectives include
commercialization of an oil shale derived asphalt binder, licensing
the Paraho technology, and research and development. However, at
the present time , in light of its inability to obtain commercial
financing, the Company is maintaining a minimal level of activity.
At this level, costs and expenses of $32,120 were incurred in the
three months ended September 30, 1999.
Possible future sources of cash include revenues from the
sales of SOMAT. Additional future sources of cash may include
revenues from the performance of engineering services, or from the
use of the Company's pilot plant retort facility. Management
presently does not expect that significant revenues from these
sources will be obtained.
RESULTS OF OPERATIONS
Quarter ended September 30, 1999
Revenues of $1,063 for the quarter ended September 30, 1999,
consisting primarily of office rental, were slightly less than the
amount recognized in the same quarter of the previous year.
Expenses of $32,120 for the quarter ended September 30, 1999
were also less than the same quarter in the previous year.
-7-
<PAGE>
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.
None.
-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.
THE NEW PARAHO CORPORATION
(Registrant)
11/12/99 /s/ Joseph L. Fox
Date Joseph L. Fox, President
11/12/99 /s/ Anne Morgan Smith
Date Anne Morgan Smith, Controller
-9-
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> SEP-30-1999
<CASH> 30216
<SECURITIES> 0
<RECEIVABLES> 11000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 48037
<PP&E> 315169
<DEPRECIATION> (314555)
<TOTAL-ASSETS> 156010
<CURRENT-LIABILITIES> 121955
<BONDS> 865596
0
0
<COMMON> 155082
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 156010
<SALES> 0
<TOTAL-REVENUES> 1063
<CGS> 0
<TOTAL-COSTS> 32120
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (31057)
<INCOME-TAX> 0
<INCOME-CONTINUING> (31057)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (31057)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
