<PAGE>
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, 1999
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
principalexecutive 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 May 10, 1999 was 1,568,791 shares.
<PAGE>
PART I
Item 1. FINANCIAL STATEMENTS
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEET
MARCH 31, 1999
UNAUDITED
ASSETS
CURRENT ASSET
Cash $ 1,171
==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts Payable
Accrued liabilities $ 3,442
6,888
----------
Total current liabilities 10,330
NOTES PAYABLE TO RELATED PARTIES 29,500
SHAREHOLDERS' DEFICIT
Common Stock, no par value; authorized,
10,000,000 shares;issued and outstanding,
1,568,791 shares 1,568,791
Additional paid-in capital 1,659,054
Accumulated Deficit (3,266,504)
----------
(35,659)
----------
$ 1,171
==========
The accompanying notes are an integral part of these statements.
<PAGE>
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
Three Three
Months Ended Months Ended
March 31, March 31,
1999 1998
EXPENSES
General and Administrative 2,699 5,206
Interest 727 1,190
----------- -----------
NET LOSS $ (3,426) $ (6,396)
=========== ===========
Net loss per common share $ (-) $ (-)
========== ===========
Weighted average common shares outstanding 1,568,791 1,568,791
========== ===========
SOUTHWEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
Three Three
Months Ended Months Ended
March 31, March 31,
1999 1998
OPERATING ACTIVITIES
Net Loss from
Operations $ (3,426) $ (6,396)
Change in Operating Assets and Liabilities 1,466 3,690
---------- ----------
NET CASH USED IN
OPERATING ACTIVITIES (1,960) (2,706)
CASH AT THE BEGINNING OF PERIOD 3,131 2,837
----------- -----------
CASH AT END OF PERIOD $ 1,171 $ 131
=========== ===========
The accompanying notes are an integral part of these statements.
<PAGE>
SOUTHWEST CAPITAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999
UNAUDITED
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
- ------------------------------------------
The consolidated balance sheet as of March 31, 1999 and the consolidated
statements of operations for the three month periods ended March 31, 1999 and
1998 and consolidated statements of cash flows for the three month periods ended
March 31, 1999 and 1998 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 as of and for the three months ended March 31, 1999
and 1998. 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,
1998 filing on Form 10-KSB. The results of operations for the periods ended
March 31, 1999 and 1998 are not necessarily indicative of the operating results
for the full year.
LOSS PER SHARE:
- -------------------------
Loss per share is computed using the weighted average number of common shares
outstanding of 1,568,791 for the three month periods ended March 31, 1999 and
1998.
<PAGE>
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, 1999.
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, 1999, the Company had
cash of $ 1,171 and liabilities of $10,330. 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
continue to seek out opportunities to improve the Company's financial position.
There is no assurance that the Company will be successful in raising new capital
or securing a new business.
RESULTS OF OPERATIONS:
- ---------------------
The Company's net loss of $ 3,426 for the quarter ended March 31, 1999
represents operating expenses. Operations for the quarters ended March 31, 1999
generated no revenues. As the Company has incurred substantial operating losses
in the past and has significant net operating loss carrying forwards, no
provision for income taxes was required for the quarters ended March 31, 1999
and 1998 . A valuation allowance 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
<PAGE>
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/Alan Geiwitz
BY:__________________________
Alan Geiwitz, Secretary and
Cheif Accounting Officer
DATE: May 14, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 1171
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1171
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1171
<CURRENT-LIABILITIES> (10,330)
<BONDS> 0
0
0
<COMMON> 1568791
<OTHER-SE> (1605965)
<TOTAL-LIABILITY-AND-EQUITY> 1171
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 2699
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 727
<INCOME-PRETAX> (3426)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3426)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3426)
<EPS-PRIMARY> (0.002)
<EPS-DILUTED> (0.002)
</TABLE>
