<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 September 30, 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
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(Exact name of small business issuer in its charter)
New Mexico 85-0169650
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1650 University NE, Suite 5-100, Albuquerque, New Mexico 87102
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(Address of principal executive offices) (Zip Code)
505-884-7161
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Registrant's telephone number, including area code
Not Applicable
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(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 no par value common stock,
at November 10, 1999 was 1,568,791 shares.
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1999
(unaudited)
ASSETS
CURRENT ASSET
Cash $ 2,270
==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable $ 397
Accrued liabilities 9,427
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Total current liabilities 9,824
NOTES PAYABLE TO RELATED PARTIES 35,879
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 (3,271,278)
----------
(43,433)
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$ 2,270
==========
The accompanying notes are an integral part of this statement.
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30,
(unaudited)
1999 1998
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EXPENSES
General and Administrative $ 2,835 $ 2,606
Interest 844 592
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NET LOSS $ (3,679) $ (3,198)
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Basic and diluted net loss per common
share $ (-) $ (-)
=========== ===========
Weighted average common shares outstanding 1,568,791 1,568,791
=========== ===========
The accompanying notes are an integral part of these statements.
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
NINE MONTHS ENDED SEPTEMBER 30,
(unaudited)
1999 1998
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EXPENSES
General and administrative $ 5,879 $ 5,206
Interest 2,321 1,190
----------- -----------
NET LOSS $ (8,200) $ (6,396)
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Basic and diluted net loss per common share $ (-) $ (-)
=========== ===========
Weighted average common shares outstanding 1,568,791 1,568,791
=========== ===========
The accompanying notes are an integral part of these statements.
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30,
(unaudited)
1999 1998
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Increase (Decrease) in Cash
Cash flows from operating activities
Net loss $ (8,200) $ (6,396)
Adjustments to reconcile net loss to net
cash used in operating activities
Changes in operating assets and
liabilities
Increase in accounts payable and
accrued liabilities 960 1,190
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Net cash used in operating
activities (7,240) (5,206)
Cash flows from financing activities
Proceeds from notes payable 6,379 2,500
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NET DECREASE IN CASH (861) (2,706)
Cash at beginning of period 3,131 2,837
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Cash at end of period $ 2,270 $ 131
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The accompanying notes are an integral part of these statements.
SOUTHWEST CAPITAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
(unaudited)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
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The accompanying consolidated balance sheet as of September 30, 1999 and the
consolidated statements of operations and cash flows for the periods ended
September 30, 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 periods ended September 30, 1999 and
1998 have been included. The results of operations for the periods ended
September 30, 1999 and 1998 are not necessarily indicative of the operating
results for the full year.
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.
LOSS PER SHARE:
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Loss per share is computed using the weighted average number of common shares
outstanding of 1,568,791 for the periods ended September 30, 1999 and 1998.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES:
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Liquidity, as discussed herein, refers to the Company's ability to generate
adequate amounts of cash to meet its needs. At September 30, 1999, the Company
had cash of $2,270 and liabilities of $45,703. The Company is presently without
significant income and its future is dependent upon the Company obtaining
monies, through borrowings or through the sale of equities, to acquire or
develop new business interests. There is no assurance that the Company will be
successful in raising new capital or securing a new business.
RESULTS OF OPERATIONS:
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The Company's net loss of $3,679 for the quarter ended September 30, 1999 and
$8,200 for the nine months ended September 30, 1999 represents general and
administrative and interest expenses. Such losses did not differ significantly
from the comparable period losses in 1998. Operations for these periods
generated no revenues.
As the Company has incurred substantial operating losses in the past and has
significant net operating loss carryforwards, no provision for income taxes was
required for the periods ended September 30, 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.
YEAR 2000 ISSUE:
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Because of limited operations of the Company, Year 2000 issues are minimal. The
Company's financial institutions and professional service providers have
provided notification that they are Year 2000 compliant. The personal computer
and software which the Company utilizes is deemed Year 2000 compliant.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company has no material market risk associated with interest rates, foreign
currency exchange rates or commodity prices.
PART II. OTHER INFORMATION
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 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
Chief Accounting Officer
DATE: November 10, 1999
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<EPS-BASIC> (0.00)
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