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 March 31, 1998
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 5-100, Albuquerque, NM 87102
(Address of principal executive offices) (Zip Code)
505-884-7161
Registrant'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 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
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, par value $1.00 per share, at March 31, 1998 was
1,568,791 shares.
PART I
Item 1. FINANCIAL STATEMENTS
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEET
UNAUDITED
<TABLE>
<CAPTION>
<S> <C>
March 31,
1998
ASSETS
CURRENT ASSETS
$ 2,305
__________
2,305
==========
LIABILITIES AND SHAREHOLDERSO EQUITY
CURRENT LIABILITIES
Accrued Expenses $ 4,078
Accounts Payable 2,703
__________
Total current liabilities 6,781
NOTES PAYABLE TO RELATED PARTIES 24,000
SHAREHOLDERS EQUITY
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
(3,256,321)
___________
Accumulated Deficit ( 28,476)
___________
$ 2,305
===========
</TABLE>
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31 March 31
1998 1997
<S> <C> <C>
REVENUES
Interest Income $ 0 $ 0
__________ _________
0 0
EXPENSES
General and Administrative 532 1,120
Interest 592 395
__________ __________
NET LOSS $ (1,124) $ (1,515)
=========== ==========
Net loss per common share $ (0000) $ (0000)
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
</TABLE>
<TABLE>
<CAPTION>
Three Months Three Months
Ended Ended
March 31, March 31,
1998 1997
<S> <C> <C>
OPERATING ACTIVITIES
Net Income (Loss) from
Operations $ (1,124) $ (1,515)
Change in Operating Assets and Liabilities (592) (394)
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES (532) (1,119)
DECREASE IN CASH
AND INTEREST-BEARING DEPOSITS (532) (1,119)
CASH AT THE BEGINNING OF PERIOD 2,837 5,204
_________ _________
CASH AT END OF PERIOD $ 2,305 $ 4,085
========= =========
</TABLE>
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1998
UNAUDITED
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated balance sheet as of March 31, 1998
the consolidated statements of operations for the three
month periods ended March 31, 1998 and 1997 and the
consolidated statements of cash flows for the three
month periods then ended 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, results of operations and cash flows at March
31, 1998 and 1997, and for the periods presented 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, 1996 filing on Securities &
Exchange Commission Form 10-KSB. The results of
operations for the periods ended March 31, 1998 and
1997 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 month periods ended March 31,
1998 and 1997, respectively. Weighted average number
of shares is calculated as follows for the three months
ended March 31, 1998.
<TABLE>
Outstanding Number Weighted Average
of Shares of Shares
Date (Unchanged) (Unchanged)
_____ __________________ ________________
<S> <C> <C>
January 1, - March 31, 1998 1,568,791 1,568,791
================== ================
</TABLE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is Management's discussions and analysis
of the financial condition and results of operations of
the Company during the quarter ended March 31, 1998.
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 March 31, 1998, the Company had cash of $2,305
and liabilities of $30,781.
The Company is presently without significant 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.
On March 23, 1995, Messrs. George W. Rhodes, Chairman
of the Board and James T. McWilliams Vice President
sold approximately 87.5% of their stock holdings to a
group of investors from Minneapolis, Minnesota. On
that same day, both men and Sara V. Rhodes, company
Secretary resigned all positions held by them with the
Company. The new management will 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 $1,124 for the period ended
March 31, 1998 represents the excess of expense over
revenue for the period.
Operations for the quarter ended March 31, 1998
generated no income Total operating expenses for the
quarter ended March 31, 1998 were $1,124.
As the Company has incurred substantial operating
losses in the past and has significant net operating
loss carrying forward, no provision for income taxes
was required for the quarter ended March 31, 1998. A
valuation allowence has been provided for all deferred
tax assets since it is more likely than not that the
tax assets will not be realized.
PART II
Item 1. The Registrant has been subject to the
following judgements:
None
Item 2. Changes In Securities
None
Item 3. Defaults In 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
Pursuant to the requirements of Section 13, or 15(d) 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.
SOUTHWEST CAPITAL CORPORATION
s/Laurence S. Zipkin
BY:__________________________
Laurence S. Zipkin, President
s/Nasser J. kazeminy
BY:__________________________
Nasser J. Kazeminy, Secretary
and Cheif Accounting Officer
DATE: May 15, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1998
<CASH> 2305
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2305
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2305
<CURRENT-LIABILITIES> 6781
<BONDS> 0
0
0
<COMMON> 1568791
<OTHER-SE> (1573439)
<TOTAL-LIABILITY-AND-EQUITY> 6781
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4078
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 592
<INCOME-PRETAX> (1124)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1124)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1124)
<EPS-PRIMARY> (000)
<EPS-DILUTED> (000)
</TABLE>