FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Quarterly Period Ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ____________to ____________
Commission File Number: 0-8149
SOUTHWEST CAPITAL CORPORATION
(Exact name of small business issuer in its charter)
New Mexico 85-0169650
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1650 University NE, Suite 100, Albuquerque, NM 87102
(Address of principal executive offices) (Zip Code)
505-884-7161
Issuer's telephone number, including area code
Not Applicable
(Former names, former address and former fiscal year, if changed since last
report)
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 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 issuer's common stock, par value $1.00
per share, at July 10,1996 was 1,568,791 shares.
Transitional Small Business Format (check one) Yes [ ] No [XX]
PART I
Item 1. Financial Statements
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEET
UNAUDITED
June 30,
1996
----
ASSETS
CURRENT ASSETS
Cash and Interest Bearing Deposits ..................... $ 1,163
-----------
$ 1,163
===========
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accrued Expenses ....................................... $ 2,110
Accounts Payable ....................................... 286
-----------
Total current liabilities ......................... 2,396
NOTES PAYABLE TO RELATED PARTIES ............................ 10,000
SHAREHOLDER'S DEFICIT
Common Stock, no par value; authorized,
10,000,000 shares; issued and outstanding,
1,568,791 shares ....................................... 1,568,791
Preferred stock - no par value; authorized,
3,000,000 shares; issued and outstanding,
none
Additional paid-in capital ............................. 1,659,054
Accumulated deficit .................................... (3,239,078)
-----------
$ 1,163
===========
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
Six Months Six Months
Ended Ended
June 30 June 30
1996 1995
---- ----
REVENUES
Interest Income ........................... $ 0 $ 74
----------- -----------
0 74
----------- -----------
EXPENSES
General and Administrative ................ 6,087 9,292
Interest .................................. 499 0
----------- -----------
6,586 9,292
----------- -----------
NET LOSS ............................. $ (6,586) $ (9,218)
=========== ===========
Net loss per common share ...................... $ (.004) $ (.006)
Weighted average common shares outstanding ..... 1,568,791 1,568,791
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
Three Months Three Months
Ended Ended
June 30 June 30
1996 1995
---- ----
REVENUES
Interest Income ........................... $ 0 $ 11
----------- -----------
0 11
----------- -----------
EXPENSES
General and Administrative ................ 5,158 7,526
Interest .................................. 250 0
----------- -----------
5,408 7,526
----------- -----------
NET LOSS ............................. $ (5,408) $ (7,515)
=========== ===========
Net loss per common share ...................... $ (.003) $ (.005)
Weighted average common shares outstanding ..... 1,568,791 1,568,791
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
Six Months Six Months
Ended Ended
June 30 June 30
1996 1995
---- ----
OPERATING ACTIVITIES
Net Income (Loss) from
Operations ......................... $ (6,586) $ (9,218)
Change in Operating Assets
and Liabilities .................... (11,744) (8,195)
-------- --------
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES ...................... (5,158) (1,023)
DECREASE IN CASH ............................. (5,158) (1,023)
Cash at Beginning of Period .................. 6,321 11,801
-------- --------
CASH AT END OF PERIOD ........................ $ 1,163 $ 10,778
======== ========
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1996
UNAUDITED
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated balance sheet as of June 30, 1996 and the consolidated
statements of operations and cash flows for the six month period ended June 30,
1996 and 1995 have been prepared by the Company without audit. In the opinion of
management, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position as of June 30, 1996 and the
results of operations and cash flows for the six month period ended June 30,
1996 and 1995 have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these consolidated
financial statements be read in conjunction with the consolidated financial
statements and notes thereto included in the Registrant's December 31, 1995
filing on Securities & Exchange Commission Form 10-KSB. The results of
operations for the periods ended June 30, 1996 and 1995 are not necessarily
indicative of the operating results for the full year.
EARNINGS (LOSS) PER SHARE
Earnings (loss) per share are computed using the weighted number of common
shares outstanding of 1,568,791 for the three and six month periods ended June
30, 1996 and 1995, respectively.
NOTES PAYABLE TO RELATED PARTIES
Notes payable to related parties are comprised of two $5,000 uncollateralized
notes bearing interest at 10%, due to two individuals who are officers,
directors and shareholders. The notes have no specified payment terms but are
not callable until after December 31, 1996.
Item 2. Management's Discussion and analysis of Financial Condition and Results
of Operations
The following is Management's discussion and analysis of the financial condition
and results of operations of the Company during the quarter ended June 30, 1996.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Liquidity, as discussed herein, refers to the Company's ability to generate
adequate amounts of cash to meet its needs.
At June 30, 1996, the Company has cash of $1,164 and liabilities of $12,396.
The Company is presently without income and its future is dependent upon the
Company's obtaining monies, through borrowings or through the sale of equities,
to acquire or develop new business interests. Management continues to seek out
opportunities to improve the Company's financial position. There is no assurance
that the Company, however, will be successful in raising new capital or securing
a new business.
RESULTS OF OPERATIONS
- ---------------------
The Company's net loss of $6,586 for the period ended June 30, 1996 represents
the excess of expense over revenue for the period.
Operations for the quarter ended June 30, 1996 generated no income compared with
$74 for the quarter ended June 30, 1995. Total operating expenses for the
quarter ended June 30, 1996 were $6,586 including accrued interest compared with
$9,292 for the quarter ended June 30, 1995.
As the Company has incurred substantial operating losses in the past and has
significant net operating loss carry forwards, no provision for income taxes was
required for the quarters ended June 30, 1996 and 1995.
PART II
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
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
SOUTHWEST CAPITAL CORPORATION
BY: Laurence S. Zipkin
-----------------------------
Laurence S. Zipkin, President
BY: Alan R. Geiwitz
------------------------------------
Alan R. Geiwitz, Assistant Secretary
DATE: July 10, 1996
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1659054
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