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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended June 30, 1998
Commission file Number 0-8730
AMERICAN INDUSTRIES, LTD.
(Registrant)
Nevada 88-119436
(State of Incorporation) (I.R.S. Employer
Identification No.)
Bank of America Center 89109
101 Convention Center Drive (Zip Code)
Suite 1212
Las Vegas Nevada
(Address of Principal Executive Offices)
Bank of America Center
101 Convention Center Drive
Suite 845
Las Vegas, Nevada 89109 (previous address)
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, and (2) has been subject to such
filing requirements for the past 90 days.
Yes _x_ No ___
As of June 30, 1998, there were 20,006,586 shares of common stock
outstanding.
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Financial statements are attached at the end of the 10-Q.
Item 2. Management's Discussion and Analysis of Financial condition and
Operating Results
Results of Operations-Quarter Ended
During the quarter the Company had no income. The company's former President,
Mr. Zack Monroe, passed away on July 25, 1997. Since the illness and death of
Mr. Monroe, the Company's income stream was negatively affected.
General administrative expenses decreased from the previous year's quarter.
These expenses represent bare bones administrative costs.
Liquidity and Capital Resources
As mentioned above, the Company has no income. The Company's newly elected
Chief Executive Officer, George Balis, is in the process of identifying the
income sources. The lack of income production has put the Company into a
negative cash flow position. Currently, any shortfall in the company's
administrative and operating expenses are beig paid by George Balis and
Mary Kinn, two shareholders. The investments listed on the balance sheet
are not liquid and will provide no immediate relief from the negative cash
flow. Mr. Balis is working on hiring new staff and revitalizing the revenue
stream. His efforts are being hampered by shortage of operating capital and,
therefore, there are no assurances that Mr. Balis' efforts will prove
successful.
The remainder of this page is intentionally blank.
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SIGNATURE
Pursuant to the requirements of the Securites and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunder duly authorized.
AMERICAN INDUSTRIES, LTD.
Registrant
_________________________
/SS/ George Balis, President
(Chief Accounting Officer)
Date: August 12, 1998
The remainder of this page is intentionally blank.
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AMERICAN INDUSTRIES, LTD.
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited)
as of June 30, 1998 and March 31, 1998
<TABLE>
<CAPTION>
6/30/98 3/31/98
<S> <C> <C>
ASSETS
Cash 195 13,826
______ ______
Total Current Assets 195 13,826
Equipment - -
Investments 61,084,822 61,084,822
__________ __________
Total Assets 61,085,017 61,098,648
__________ __________
__________ __________
LIABILITIES
Accounts Payable 37,455 37,455
___________ __________
Total Current Liabilities 37,455 37,455
___________ __________
STOCKHOLDERS' EQUITY
Authorized 50,000,000 shares 2,000,659 2,000,659
20,006,586 shares outstanding
par value $.10
Paid in Capital 60,042,884 60,042,884
Retained Earnings (loss) (995,981) (982,350)
__________ __________
Total Stockholders' Equity 61,047,562 61,061,193
__________ __________
Total Liabilities and
Stockholders' Equity 61,085,017 61,098,648
__________ __________
__________ __________
</TABLE>
[FN]
The above statement is unaudited and is prepared by management
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<TABLE>
AMERICAN INDUSTRIES, LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
for the three months ended June 30, 1998 and 1997
<CAPTION>
3 mth 6 mth
ended ended
6/30/98 6/30/97
<S> <C> <C>
Revenue
Revenue from Contracts and Services
Total Revenue - -
_________ _______
Expenses
General and Administrative
Expenses 13,631 16,428
_________ _______
Total Expenses 13,631 16,428
Net Income (Loss) before Taxes (13,631) (16,428)
Provision for Income Taxes - -
_________ _______
Net Income (Loss) (13,631) (16,428)
_________ _______
_________ _______
Earnings per Common Share a a
_________ _______
Weighted Average Number
of Shares Outstanding 20,006,146 20,006,150
__________ __________
</TABLE>
a less than $.01
[FN]
The above statement is unaudited and is prepared by management
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AMERICAN INDUSTRIES, LTD.
Consolidated Statements of Stockholders' Equity
(Unaudited)
For the three years ended June 30, 1998
<TABLE>
<S> <C> <C> <C> <C> <C>
Common Stock Paid in Retained Total
Stock Amount Capital Earnings
Balance June 30 1995 20,000,000 2,000,000 59,950,115 (679,817) 61,270,298
Common Stock Sold 2,395 240 8,660 8,990
Retained Earnings (loss) (157,080) (157,080)
Balance June 30, 1996 20,002,395 2,000,240 59,958,775 (837,897) 61,122,118
Common Stock 3,750 375 74,625 75,000
Retained Earnings (Loss) (42,004) (42,004)
Balance June 30, 1997 20,006,145 2,000,615 60,033,400 (878,901) 61,155,114
Common Stock 441 44 9,484 9,528
Retained Earnings (Loss) (103,449) (103,449)
Balance June 30, 1998 20,006,586 2,000,659 60,042,884 (982,350) 61,061,093
Retained Earnings (Loss) (13,631) (13,631)
Balance June 30, 1998 20,006,586 2,000,659 60,042,884 (995,981) 61,047,562
</TABLE>
[FN]
The accompanying notes are an integral part of these financial statements.
</PAGE>
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<TABLE>
AMERICAN INDUSTRIES, LTD.
CONSOLIDATED STATEMENTS OF CASH FLOW
(unaudited)
for the three months ended June 30, 1998 and 1997
<S> <C> <C>
3 mths 3 mths
ended ended
6/30/98 6/30/97
Cash Provided By Operations
Net Income (Loss) (13,631) (16,428)
Change in Payables 5,000
________ ______
Net Cash from Operations (13,631) (11,428)
________ ______
Investing Activities
Decrease in Investments - -
________ _______
Cash Used in Investing - -
________ _______
Financing Activities - -
________ _______
Cash From Financing - -
________ ________
Net Change in Cash (13,631) (11,428)
Beginning Cash Balance 13,826 23,050
_________ ________
Ending Cash Balance 195 11,622
__________ ________
</TABLE>
[FN]
The above statement is unaudited and is prepared by management
</PAGE>
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AMERICAN INDUSTRIES, LTD.
NOTES TO FINANCIAL STATEMENTS
Note 1 The Company and Summary of Significant Accounting Policies
The Company is a holding company organized under the laws of Nevada in 1919.
The Company`s subsidiary, Global Technologies S.A. was organized as a European
Company under the laws of the Grand Duche of Luxembourg. The consolidated
financial statements have been prepared in conformity with generally accepted
accounting principles applicable in the United States of America and are
stated in United States dollars. The Company's former president, Zack Monroe,
died on July 25, 1997. This has caused the services of the Company to be
halted. Mr. George Balis, the then Vice President, was subsequently elected
as President and has been trying to arrange the continuation of the company.
Principals of Consolidation
The consolidated financial statements include the accounts of the company and
its subsidiary. All significant intercompany accounts and transactions have
been eliminated.
Investments in other companies where ownership is less than 20 % are carried on
the balance sheet using the cost method of accounting.
Earnings Per Share
Earnings per share is computed on the weighted average number of shares
outstanding during the year.
Note 2 Acquisitions
Global Technologies S.A. under acquisition agreement became a subsidiary of the
company. Initially the authorized capital of the Luxembourg company was 500,000
shares of stock at 1000 Francs (LUF) per share, 120,000 shares are issued and
outstanding, fully paid and non assessable, with capital reserve in gem
investments. By decision of a meeting of shareholders held December 29, 1995
the par value of Global Technologies S.A. has been reduced to 250 LUF per
share, 120,000 shares are still issued and outstanding, fully paid and non-
assessable. The decision to reduce the authorized capital was made to reduce
taxes and other expenses in Luxembourg. Global Technologies S.A. operates
under the status of a holding company under Luxembourg Law with the use
of financial assets with historical perpetual value operating in
conformity with the Grand Duche of Luxembourg Decree of December 17, 1938.
Global Technologies S.A. registered as a professional business, Financial
Investment, International Mergers, International Acquisitions, International
Portfolio Management as set forth in notes to financial statements
contained herein.
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Note 3 Investments
Investments Gems
The Company has listed under Investments investment quality gems, (emeralds,
sapphires and rubies). These stones are uncut. Uncut gems do not fluctuate in
value like the cut stones do because of daily market conditions. Their value is
more constant. These gems are owned by the Company's wholly owned subsidiary,
Global Technologies.The Company purchased Global Technologies in 1993. The
historic basis of the gemstone on the books of Global was carried over for the
basis of the gemstones once the merger was effected. Purchase accounting
was utilized in this merger. Notwithstanding that purchase accounting was
utilized as directed by GAAP, the gemstones were not given a step up in basis.
That is because their historic basis was approximate to their fair market value
at the time of the merger. The gemstones were also appraised. Periodically
the gems are reappraised to assure management that the value placed on this
investment is correct. Most recently, an appraisal was completed by Mr. Marco
Vesters, Certified Gemmologist, member of The Gemmological Association of Great
Britain, license number D-7127.
The gems are physically located in a bank vault in Las Vegas, Nevada. The
Company's subsidiary Global Technologies plans to utilize these assets to
establish a relationship with a correspondent bank in Europe. With
this relationship Global plans to issue letters of credit and other
services for European companies.
Note 4 Accounts Payable
The accounts payable represent professional fees and other general and
administrative expenses that were paid by the President and board members on
behalf of the Company.
Jun 1998 Mar 1998
Account payable $37,455 $37,455
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Note 5 Provision for Income Taxes
The provision for income taxes is the total of the current taxes payable and
the net of the change in the deferred income taxes. Provision is made for
deferred income taxes where differences exist between the period in which
transactions affect current taxable income and the period in which they enter
into the determination of net income in the financial statements.
Change in Deferred Tax plus Valuation Account 0
Current Taxes Payable 0
Provision for Income Taxes 0
Note 6 Leases
The Company has a three year lease with its offices in Las Vegas, NV for
$6,000 per year.
1998 1999
Office Lease 6,000 6,000
The Company has an office in Europe paid on a month to month basis.
Note 7 Dependency on President
The current President has been largely responsible for the existence of the
Company for the last several months. He has worked to rid the Company of
investments and programs that were not profitable. he has infused monies and
sought out loans from other principals to pay the Company's administrative
expenses. He is also active in pursuing a suitable merger candidate. Without
his abilities the Company would have a difficult time continuing in existence.
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