SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of event reported): December 18, 2000.
WESTERN MEDIA GROUP CORPORATION
(Exact name of registrant as specified in its charter)
Commission File No. 2-71164
Minnesota 41-1311718
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11900 Wayzata Blvd., Suite 100
Hopkins, MN 55305
(Address of principal executive (Zip Code)
offices)
Registrant's Telephone Number: (612)-546-1332
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
<PAGE>
ITEM 5. OTHER INFORMATION
Western Media Group Corporation ("Company") previously filed
annual reports on Form 10-KSB for the years ended December 31,
1999, 1998, and 1997. The Company believes the form of the
financial statements included in these filings complies with
applicable requirements of generally accepted accounting
principles with respect to the presentation of stockholder
equity. Nevertheless, the Company is refilling the financial
statements with formal statements of stockholders' equity so that
the information is presented in a more customary form. Enclosed
are the audited financial statements of the Company for the years
ended December 31 1999 and 1998, and December 31, 1998 and 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, as amended, the Registrant has duly caused this report
to be signed on its behalf by the undersigned hereunto duly
authorized.
Western Media Group
Corporation
DATED: December 18, 2000 By: /s/ Patrick L. Riggs, President
2
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1999 AND 1998
AND PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1999
3
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1999 AND 1998
AND PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1999
TABLE OF CONTENTS
Page
Independent Auditors' Report F-1
Financial Statements:
Balance Sheets F-2
Statements of Operations F-3
Statements of Stockholders' Equity (Deficit) F-4
Statements of Cash Flows F-5
Notes to Financial Statements F-6
4
<PAGE>
Callahan, Johnston & Associates, LLC
Certified Public Accountants and Consultants
INDEPENDENT AUDITORS' REPORT
Stockholders and Board of Directors
Western Media Group Corporation
(A Development Stage Company)
Minneapolis, Minnesota
We have audited the accompanying balance sheets of Western Media
Group Corporation as of December 31, 1999 and 1998, and the
related statements of operations, stockholders' equity (deficit),
and cash flows for the years then ended and the period from
reentrance into development stage (August 1, 1991) to December
31, 1999. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatements. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Western Media Group Corporation as of December 31, 1999 and
1998 and the results of operations and cash flows for the years
then ended and the period from reentrance into development stage
(August 1, 1991) to December 31, 1999, in conformity with
generally accepted accounting principles.
As described in Note 2 to the financial statements, the ultimate
recoverability of investments in the development stage and
continuance of the Company as a going concern is dependent on
future profitable operations, which presently cannot be
determined.
/s/ Callahan, Johnston & Associates, LLC
CALLAHAN, JOHNSTON & ASSOCIATES, LLC
Minneapolis, Minnesota
June 8, 2000
7850 Metro Parkway, Suite 207, Minneapolis, MN 55425
Telephone: (952)858-7207 Fax: (952)858-7202
Email: [email protected]
F-1
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
BALANCE SHEETS
December 31,
1999 1998
ASSETS
Total current assets and total assets $ - $ -
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 87,149 $ 87,149
Note payable and accrued interest -
related party 18,681 18,681
Amount due to officer 22,710 22,710
Total current liabilities 128,540 128,540
Stockholders' equity (deficit):
Common stock: $.01 par value; 25,000,000
shares authorized; issued and outstanding
11,993,100 shares 119,931 119,931
Additional paid-in capital 737,314 737,314
Accumulated deficit (943,064) (943,064)
Deficit accumulated during development stage (42,721) (42,721)
Total stockholders' equity (deficit) (128,540) (128,540)
Total liabilities and
Stockholders' equity (deficit) $ - $ -
The accompanying notes are an integral part of
these financial statements.
F-2
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
STATEMENTS OF OPERATIONS
Period From
August 1, 1991
Years Ended December 31, December 31,
1999 1998 1999
Revenues $ - $ - $ -
Administrative expenses - - (42,721)
Income tax expense (benefit) - - -
Net income (loss) - - (42,721)
Other comprehensive income (loss) - - -
Comprehensive income (loss) $ - $ - $ (42,721)
Basic earnings (loss) per share $ - $ - $ -
Weighted average number of
shares outstanding 11,993,100 11,993,100 11,993,100
The accompanying notes are an integral part of
these financial statements.
F-3
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Additional During
Number of Paid-In Accumulated Development
Shares Amount Capital Deficit Stage Total
<S> <C> <C> <C> <C> <C> <C>
Reentrance into development
stage (August 1, 1991) 11,993,100 $ 119,931 $ 737,314 $(943,064) $ - $ (85,819)
Net loss: August 1, 1991
to December 31, 1991 - - - - - -
Net income (loss) - 1992 - - - - (42,721) (42,721)
Net income (loss) - 1993 - - - - - -
Net income (loss) - 1994 - - - - - -
Net income (loss) - 1995 - - - - - -
Net income (loss) - 1996 - - - - - -
Net income (loss) - 1997 - - - - - -
December 31, 1997 11,993,100 119,931 737,314 (943,064) (42,721) (128,540)
Net income (loss) - - - - - -
December 31, 1998 11,993,100 119,931 737,314 (943,064) (42,721) (128,540)
Net income (loss) - - - - - -
December 31, 1999 11,993,100 $ 119,931 $ 737,314 $(943,064) $(42,721) $(128,540)
</TALBE>
The accompanying notes are an integral part of
these financial statements.
F-4
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
Increase (Decrease) In Cash
Period From
August 1, 1991
Years Ended December 31, December 31,
1999 1998 1999
Cash flows from operating activities:
Net income (loss) $ - $ - $ (42,721)
Adjustments to reconcile net income
(loss) to cash flows from
operating activities:
Bad debt expense - - 24,910
Accounts payable and other
current liabilities - - (6,377)
Cash flows from operating activities - - (24,188)
Cash flows from financing activities:
Proceeds from due to officer - - 22,710
Cash flows from investing activities - - -
Increase (decrease) in cash - - (1,478)
Cash:
Beginning of year - - 1,478
End of year $ - $ - $ -
Supplemental cash flow information:
Interest paid $ - $ - $ -
Income taxes paid $ - $ - $ -
Summary of non cash activity:
None.
The accompanying notes are an integral part of
these financial statements.
F-5
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1999 AND 1998
AND THE PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
The Company was incorporated on July 26, 1977, under the laws of
the State of Minnesota. On November 17, 1988, the Company
changed its name to Western Media Group Corporation. Formerly
the Company was known as Ionic Controls, Inc.
On July 31, 1991, the Company sold substantially all of its
operations, KXDC-AM and FM in Monterey, California for
$1,100,000. Proceeds from this sale were assigned to the
Company's chief executive officer in settlement of $5,156,139
owed to this individual. The Company recorded a gain on debt
forgiveness of $4,056,139 on this transaction as reported in its
September 30, 1991 Form 10-Q.
The Company's only remaining operations at that date were 100%
working interests in two oil leases in Bugai - Guadolupe County,
Texas owned through the Company's wholly-owned subsidiary, Ionic
Energy Corporation. These leases were without value and the
Company ultimately abandoned these interests in 1992. The
Company further allowed Ionic Energy Corporation to be
statutorially dissolved on August 1, 1997.
The Company currently has no operations.
Risks, Estimates and Uncertainties
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements
and reported amounts of revenues and expenses during the
reporting period.
(Continued)
F-6
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1999 AND 1998
AND THE PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Earnings Per Share
The Company implemented FASB 128: Earnings Per Share. FASB 128
replaces the presentation of primary EPS with basic EPS. Basic
EPS excludes dilution and is computed by dividing net income by
the weighted-average number of common shares outstanding for the
year. Diluted EPS reflects the potential dilution from stock
options and warrants and is computed using the treasury stock
method. Under the treasury stock method stock options are
assumed to have been exercised at the beginning of the period if
the exercise price exceeds the average market price during the
period. The computation of diluted EPS does not assume
conversion or exercise of securities that would have an
antidilutive effect on earnings per share.
There are not outstanding stock options or warrants.
Income Taxes
The Company accounts for income taxes in accordance with
Statement of Financial Accounting Standards No. 109, "Accounting
for Income Taxes" which requires the use of the "liability
method" of accounting for income taxes.
The Company's net operating loss carryforwards are fully allowed
for due to questions regarding the Company's ability to utilize
these losses before they expire.
Deferred tax asset relating to net operating
loss carryforwards $ 340,000
Valuation allowance (340,000)
Net deferred tax asset $ -
(Continued)
F-7
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1999 AND 1998
AND THE PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income Taxes (Continued)
At December 31, 1999, the Company has carryforwards as follows:
Federal State
2007 $1,137,000 $ 12,000
NOTE 2 - DEVELOPMENT STAGE COMPANY
On July 31, 1991, the Company sold substantially all of its
operations and reentered the development stage. Since that date
the Company has devoted the majority of its efforts to:
maintenance of the corporate status; raising capital; and the
search for a merger candidate.
The Company is fully dependent upon the support of certain
stockholder(s) for the maintenance of its corporate status and to
provide all working capital support for the Company. These
stockholder(s) intend to continue to fund necessary expenses to
sustain the Company. The Company is presently seeking a merger
candidate and feels it will be successful in finding such a
candidate.
Failure of the Company to find a merger candidate and achieve
profitable operations or the failure of its stockholder(s) to
fund necessary expenses of the Company could result in the
Company being unable to continue as a going concern. No estimate
can be made of the range of loss that is reasonably possible
should the Company be unsuccessful.
(Continued)
F-8
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1999 AND 1998
AND THE PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1999
NOTE 3 - SUBSEQUENT EVENTS
Note Payable and Accrued Interest - Related party /
Amount Due to Officer
These obligations were settled March 16, 2000 for $20,000 (
$10,000 in cash; 1,000,000 shares of common stock with a stated
value of $10,000) resulting in $21,391 in debt forgiveness.
Accounts Payable
Subsequent to year end the $87,149 in accounts payable were
settled for $22,500 resulting in debt forgiveness of $64,649.
Stock Issuance
On March 16, 2000, the Company approved the issuance of
12,000,000 shares of common stock at $.003 a share. These
monies were collected in 2000.
F-9
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
AND PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1998
F-10
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
AND PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1998
TABLE OF CONTENTS
Page
Independent Auditors' Report F-12
Financial Statements:
Balance Sheets F-13
Statements of Operations F-14
Statements of Stockholders' Equity (Deficit) F-15
Statements of Cash Flows F-16
Notes to Financial Statements F-17
F-11
<PAGE>
Callahan, Johnston & Associates, LLC
Certified Public Accountants and Consultants
INDEPENDENT AUDITORS' REPORT
Stockholders and Board of Directors
Western Media Group Corporation
(A Development Stage Company)
Minneapolis, Minnesota
We have audited the accompanying balance sheets of Western Media
Group Corporation as of December 31, 1998 and 1997, and the
related statements of operations, stockholders' equity (deficit),
and cash flows for the years then ended and the period from
reentrance into development stage (August 1, 1991) to December
31, 1998. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether
the financial statements are free of material misstatements. An
audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above
present fairly, in all material respects, the financial position
of Western Media Group Corporation as of December 31, 1998 and
1997 and the results of operations and cash flows for the years
then ended and the period from reentrance into development stage
(August 1, 1991) to December 31, 1998, in conformity with
generally accepted accounting principles.
As described in Note 2 to the financial statements, the ultimate
recoverability of investments in the development stage and
continuance of the Company as a going concern is dependent on
future profitable operations, which presently cannot be
determined.
/s/ Callahan, Johnston & Associates, LLC
CALLAHAN, JOHNSTON & ASSOCIATES, LLC
Minneapolis, Minnesota
June 8, 2000
7850 Metro Parkway, Suite 207, Minneapolis, MN 55425
Telephone: (952)858-7207 Fax: (952)858-7202
Email: [email protected]
F-12
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
BALANCE SHEETS
December 31,
1998 1997
ASSETS
Total current assets and total assets $ - $ -
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ 87,149 $ 87,149
Note payable and accrued interest -
related party 18,681 18,681
Amount due to officer 22,710 22,710
Total current liabilities 128,540 128,540
Stockholders' equity (deficit):
Common stock: $.01 par value; 25,000,000
shares authorized; issued and outstanding
11,993,100 shares 119,931 119,931
Additional paid-in capital 737,314 737,314
Accumulated deficit (943,064) (943,064)
Deficit accumulated during development stage (42,721) (42,721)
Total stockholders' equity (deficit) (128,540) (128,540)
Total liabilities and
Stockholders' equity (deficit) $ - $ -
The accompanying notes are an integral part of
these financial statements.
F-13
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
STATEMENTS OF OPERATIONS
Period From
August 1, 1991
Years Ended December 31, December 31,
1998 1997 1998
Revenues $ - $ - $ -
Administrative expenses - - (42,721)
Income tax expense (benefit) - - -
Net income (loss) - - (42,721)
Other comprehensive income (loss) - - -
Comprehensive income (loss) $ - $ - $(42,721)
Basic earnings (loss) per share $ - $ - $ -
Weighted average number of
shares outstanding 11,993,100 11,993,100 11,993,100
</TABLE>
The accompanying notes are an integral part of
these financial statements.
F-14
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
Deficit
Accumulated
Common Stock Additional During
Number of Paid-In Accumulated Development
Shares Amount Capital Deficit Stage Total
<S> <C> <C> <C> <C> <C> <C>
Reentrance into
development stage
(August 1, 1991) 11,993,100 $ 119,931 $ 737,314 $(943,064) $ - $ (85,819)
Net loss: August 1, 1991
to December 31, 1991 - - - - - -
Net income (loss) - 1992 - - - - (42,721) (42,721)
Net income (loss) - 1993 - - - - - -
Net income (loss) - 1994 - - - - - -
Net income (loss) - 1995 - - - - - -
Net income (loss) - 1996 - - - - - -
December 31, 199 11,993,100 119,931 737,314 (943,064) (42,721) (128,540)
Net income (loss) - - - - - -
December 31, 1997 11,993,100 119,931 737,314 (943,064) (42,721) (128,540)
Net income (loss) - - - - - -
December 31, 1998 11,993,100 $ 119,931 $ 737,314 $(943,064) $ (42,721) $(128,540)
</TABLE>
The accompanying notes are an integral part of
these financial statements.
F-15
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
Increase (Decrease) In Cash
Period From
August 1, 1991
Years Ended December 31, December 31,
1998 1997 1998
Cash flows from operating activities:
Net income (loss) $ - $ - $ (42,721)
Adjustments to reconcile net income
(loss) to cash flows from
operating activities:
Bad debt expense - - 24,910
Accounts payable and other
current liabilities - - (6,377)
Cash flows from operating activities - - (24,188)
Cash flows from financing activities:
Proceeds from due to officer - - 22,710
Cash flows from investing activities - - -
Increase (decrease) in cash - - (1,478)
Cash:
Beginning of year - - 1,478
End of year $ - $ - $ -
Supplemental cash flow information:
Interest paid $ - $ - $ -
Income taxes paid $ - $ - $ -
Summary of non cash activity:
None.
The accompanying notes are an integral part of
these financial statements.
F-16
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
AND PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1998
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business
The Company was incorporated on July 26, 1977, under the laws of
the State of Minnesota. On November 17, 1988, the Company
changed its name to Western Media Group Corporation. Formerly
the Company was known as Ionic Controls, Inc.
On July 31, 1991, the Company sold substantially all of its
operations, KXDC-AM and FM in Monterey, California for
$1,100,000. Proceeds from this sale were assigned to the
Company's chief executive officer in settlement of $5,156,139
owed to this individual. The Company recorded a gain on debt
forgiveness of $4,056,139 on this transaction as reported in its
September 30, 1991 Form 10-Q.
The Company's only remaining operations at that date were 100%
working interests in two oil leases in Bugai - Guadolupe County,
Texas owned through the Company's wholly-owned subsidiary, Ionic
Energy Corporation. These leases were without value and the
Company ultimately abandoned these interests in 1992. The
Company further allowed Ionic Energy Corporation to be
statutorially dissolved on August 1, 1997.
The Company currently has no operations.
Risks, Estimates and Uncertainties
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements
and reported amounts of revenues and expenses during the
reporting period.
(Continued)
F-17
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
AND PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1998
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Earnings Per Share
The Company implemented FASB 128: Earnings Per Share. FASB 128
replaces the presentation of primary EPS with basic EPS. Basic
EPS excludes dilution and is computed by dividing net income by
the weighted-average number of common shares outstanding for the
year. Diluted EPS reflects the potential dilution from stock
options and warrants and is computed using the treasury stock
method. Under the treasury stock method stock options are
assumed to have been exercised at the beginning of the period if
the exercise price exceeds the average market price during the
period. The computation of diluted EPS does not assume
conversion or exercise of securities that would have an
antidilutive effect on earnings per share.
There are not outstanding stock options or warrants.
Income Taxes
The Company accounts for income taxes in accordance with
Statement of Financial Accounting Standards No. 109, "Accounting
for Income Taxes" which requires the use of the "liability
method" of accounting for income taxes.
The Company's net operating loss carryforwards are fully allowed
for due to questions regarding the Company's ability to utilize
these losses before they expire.
Deferred tax asset relating to net operating
loss carryforwards $ 340,000
Valuation allowance (340,000)
Net deferred tax asset $ -
(Continued)
F-18
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
AND PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1998
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Income Taxes (Continued)
At December 31, 1998, the Company has carryforwards as follows:
Federal State
2007 $1,137,000 $ 12,000
NOTE 2 - DEVELOPMENT STAGE COMPANY
On July 31, 1991, the Company sold substantially all of its
operations and reentered the development stage. Since that date
the Company has devoted the majority of its efforts to:
maintenance of the corporate status; raising capital; and the
search for a merger candidate.
The Company is fully dependent upon the support of certain
stockholder(s) for the maintenance of its corporate status and to
provide all working capital support for the Company. These
stockholder(s) intend to continue to fund necessary expenses to
sustain the Company. The Company is presently seeking a merger
candidate and feels it will be successful in finding such a
candidate.
Failure of the Company to find a merger candidate and achieve
profitable operations or the failure of its stockholder(s) to
fund necessary expenses of the Company could result in the
Company being unable to continue as a going concern. No estimate
can be made of the range of loss that is reasonably possible
should the Company be unsuccessful.
(Continued)
F-19
<PAGE>
WESTERN MEDIA GROUP CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
AND PERIOD FROM REENTRANCE INTO
DEVELOPMENT STAGE
(AUGUST 1, 1991) TO DECEMBER 31, 1998
NOTE 3 - SUBSEQUENT EVENTS
Note Payable and Accrued Interest - Related party /
Amount Due to Officer
These obligations were settled March 16, 2000 for $20,000 (
$10,000 in cash; 1,000,000 shares of common stock with a stated
value of $10,000) resulting in $21,391 in debt forgiveness.
Accounts Payable
Subsequent to year end the $87,149 in accounts payable were
settled for $22,500 resulting in debt forgiveness of $64,649.
Stock Issuance
On March 16, 2000, the Company approved the issuance of
12,000,000 shares of common stock at $.003 a share. These
monies were collected in 2000.
F-20
<PAGE>
