<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 June 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
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1650 University NE, Suite 5-100, Albuquerque, NM 87102
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(Address of principal executive offices) (Zip Code)
505-884-7161
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 August 16, 1999 was 1,568,791 shares.
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PART I
Item 1. FINANCIAL STATEMENTS
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEET
June 30, 1999
UNAUDITED
ASSETS
CURRENT ASSET
Cash $ 2,726
==========
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable
Accrued liabilities $ 397
8,583
----------
Total current liabilities 8,980
NOTES PAYABLE TO RELATED PARTIES 33,500
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 (3,267,599)
----------
(39,754)
----------
$ 2,726
==========
The accompanying notes are an integral part of this statement.
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SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
Three Three
Months Ended Months Ended
June 30, June 30,
1999 1998
EXPENSES
General and Administrative 345 1,181
Interest 750 598
----------- ------------
NET LOSS $ (1,095) $ (1,779)
=========== ============
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.
<PAGE>
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
Six Six
Months Ended Months Ended
June 30, June 30,
1999 1998
EXPENSES
General and administrative 3,044 1,713
Interest 1,477 1,190
----------- -----------
NET LOSS $ (4,521) $ (2,903)
=========== ===========
Basic and diluted net loss per common share $ (-) $ (-)
=========== ===========
Weighted average common shares outstanding 1,568,791 1,568,791
=========== ===========
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
Six Six
Months Ended Months Ended
June 30, June 30,
1999 1998
---- ----
Increase (Decrease) in Cash
Cash flows from operating activities
Net loss $ (4,405) $ (2,903)
Adjustments to reconcile net loss to net
cash used in operating activities
Changes in operating assets and
liabilities
Increase in accounts payable and
accured liabilities 116 1,190
--------- ---------
Net cash used in operating
activities (5,206) (1,713)
Cash flows from financing activities
Proceeds from notes payable 4,000 0
--------- ---------
NET DECREASE IN CASH (405) (1,713)
Cash at beginning of period 3,131 4,550
--------- ---------
Cash at end of period $ 2,726 $ 2,837
========= =========
The accompanying notes are an integral part of these statements.
<PAGE>
SOUTHWEST CAPITAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1999
UNAUDITED
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
- ------------------------------------------
The accompaying consolidated balance sheet as of June 30, 1999 and the
consolidated statements of operations and cash flows for the periods ended June
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 June 30, 1999 and 1998
have been included. 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 June
30, 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 periods ended June 30, 1999 and 1998.
<PAGE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
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, 1999, the Company had cash of $ 2,726 and liabilities of $42,480.
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:
- ---------------------
The Company's net loss of $ 1,095 for the quarter ended June 30, 1999 and $4,521
for the six months ended June 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 carrying forwards, no provision for income taxes
was required for the periods ended June 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
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 Registrant utilizes is deemed Year 2000 compliant.
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 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: August 16, 1999
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0
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<OTHER-EXPENSES> 3044
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<INTEREST-EXPENSE> 1477
<INCOME-PRETAX> (4521)
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<NET-INCOME> (4521)
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