Manually Executed
As filed with the United States Securities and Exchange
Commission
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the second quarter ended March 31, 1999 Commission File
Number 0-9071
E.T. CAPITAL, INC.
(Exact name of registrant as specified in its charter)
Colorado
74-2026624
(State of incorporation) (I.R.S. Employer
Identification No.)
3525 South Tamarac Drive, Suite 320, Denver, CO
80237
(Address of principal executive offices) (Zip
Code)
Registrant's telephone number including area code:
(604)925-0534
Securities registered pursuant to Section 12(b) of the Act:
None
Securities registered pursuant to Section 12(g) of the Act:
Title of each class Name of each exchange on which
registered
Common Stock, $0.01 par value NASDAQ OTC (Electronic Bulletin
Board)
Stock Symbol: ETCP
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 all
such filing requirements for the past 90 days.
Yes X No
As of March 31, 1999 there were 58,787,216 shares of Common
Stock, $0.01 par
value, outstanding.
Documents incorporated by reference: None
Item 1.
INDEX
Page of
Report
PART I FINANCIAL INFORMATION
Item 1. Financial Statements:
Unaudited Consolidated Balance Sheets:
As at March 31st ,1999 and 1998.....................1.
Unaudited Consolidated Statement of Operations:
For the six months ended March 31st, 1999 and
1998...............................................2.
Unaudited Consolidated Statement of Cash Flow:
For the six months ended March 31st, 1999 and
1998...............................................3.
Unaudited Statement of Stockholders' Equity:
As at March 31st, 1999..............................4.
Item 2. Management's Discussion and Analysis of:
Financial Condition and Results of Operations.......5.
PART II OTHER INFORMATION
Other Information...................................6.
Signatures ....................................7.
E.T. CAPITAL, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
(Unaudited)
ASSETS
March 31, March 31,
1998 1999
CURRENT ASSETS:
Cash on Hand$ 0$ 50,327
FIXED ASSETS:
Equipment534,886534,886
Less accumulated
depreciation (534,885) (534,886)
Net Fixed Assets
(Note 1) 1$ 0
OTHER ASSETS:
Rights' Title, net of
amortization11
Product Development
Expenditures 243,841 182,882
Total Other Assets 243,842 182,883
TOTAL ASSETS$ 243,843$ 233,210
E.T. CAPITAL, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, March 31,
1998 1999
CURRENT LIABILITIES:
Accounts Payable $107,577 120,207
LONG-TERM LIABILITIES:
Debenture Payable, 258,518 630,868
Bearer
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value
10,000,000,000 shares
authorized, 58,787,216
shares issued and
outstanding 4,516,079 4,516,079
Paid-In-Capital in excess
of par value 20,069,86920,069,869
(Deficit) Accumulated during
the Development Stage (24,708,200) ( 25,103,813)
TOTAL STOCKHOLDERS' EQUITY ( 122,252) (
517,865)
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 243,843 $ 233,210)
E.T. CAPITAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
(Unaudited)
For the 6 mos.For the 6 mos.
Ended Ended
March 31, 1998March 31, 1999
REVENUES$ 0 $ 0
GENERAL AND
ADMINISTRATIVE EXPENSES:
Auto Expenses,
gas and repairs 6,000 6,000
Consulting Fees 72,890 0
Rent Expense 25,200 25,200
Telephone Expense 18,000 18,000
Travel and Promotions 90,000 90,000
TOTAL GENERAL AND
ADMINISTRATIVE EXPENSES 212,090 139,200
OTHER EXPENSES
Interest Expense 8,193 27,035
NET (LOSS)$ 220,283$ 166,235
NET (LOSS) per share $ .004 $ .003
E.T. CAPITAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOW
(Unaudited)
For the 6 mos.For the 6 mos.
EndedEnded
March 31, 1998 March 31, 1999
Net Cash Flows From Operating
Activities:
Net (Loss)$ (220,283)$ (166,235)
Adjustments to Reconcile
Net (Loss) to Cash (Loss)
From Operating Activities: 0 0
Sub-total (220,283) (166,235)
Increase (decrease) in
Debenture payable,
Xanthos Management Corp. 220,283 166,235
INCREASE (DECREASE) IN CASH00
CASH BEGINNING OF PERIOD 0 50,327
CASH, END OF THE PERIOD$ 0$ 50,327
E.T. CAPITAL, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
Common
Class Stock Additional
DevelopmentStockholders
$0.01 Par ValuePaid-In StageEquity
Shares AmountCapital(Deficit)(Deficit)
Balances,
September 30,
199658,787,216$4,516,079$18,429,869$(23,341,645)$ (395,697)
Issue
1,500,000,000
shares @ $0.234
on October 1,
1996 1,500,000,00015,000,000335,000,000 0
3,500,000,000
Cancellation of
1,500,000,000
shares @ $0.234
on February 15,
19971,500,000,00015,000,000335,000,000 0
3,500,000,000
Sale of 8,000,000
shares @$0.15
Sept. 21, 1997 0 0 1,640,000 0 1,640,000
Net (Loss) for the
year ended
Sept. 30, 1997 0 0 0 (1,146,273) (1,146,273)
Balances,
Sept. 30, 1997 58,787,216$4,516,079$20,069,869$(24,487,918)$
98,030
Net (Loss) for the
year ended
Sept. 30, 1998 0 0 0 (449,660) (449,660)
Balances
September 30,
1998 58,787,216 $4,516,079$20,069,869$ (24,937,578)$
(351,630)
Net (Loss) for
the 6 months
ended March 31,
1999 0 0 0 (166,235) (166,235)
Balances
March 31, 1999 58,787,216 $4,516,079$20,069,869$
(25,103,813)$
(517,865)
Note 1:
Whereas the Company's independent Auditor has depreciated
equipment on an
accelerated basis, the equipment is still operating well and will
continue to
do so for several years.
Management's Discussion and Analysis
of
Financial Condition and Results of Operations
Results of Operations
March 31, 1999 v. March 31, 1998
Overall
The Company's entry into the "not-for-profit" fund raising
using 1 900
"pay-per-call" telephone numbers is continuing as outlined in the
Company
business plan. With political election campaign reform being in
the forefront
of both the Congress and the Senate, the Company is ready to
conclude
agreements for the use of the company's two political 1 900
numbers, 1 900
'DEMOCRAT" and 1 900 "REPUBLICAN". These numbers could raise
hundreds of
millions of dollars for both the Democratic and Republican
candidates and
parties and, at the same time, the Company could earn substantial
revenues
from each number.
Until the Company develops a positive cash flow from its
operations, the
development stage of the Company will continue to rely on Xanthos
Management
Corporation to finance the Company's ongoing overhead under the
terms of the
bearer debenture it holds. (See notes to September 30, 1998 Audit
as filed and
as part of the September 30,1998 10K, (Note 3, " As the
Corporation was unable
to meet its financial obligations as they became due, one of the
major
shareholders of the Company, Xanthos Management Corporation,
offered to pay
the obligations of behalf of the Company and to make payments as
required,
such payments secured by and subject to the terms of a debenture
duly filed
and registered with the Secretary of State for the State of
Colorado" from the
Company's Audited Financial Statements as of September 30, 1998
reflects the
current status of the Company.)) Cash assets at the close of the
second
quarter were $$50,327 as compared to $0 at March 31, 1997; fixed
assets were
written down to $1 at March 31, 1998 and wee the same at March
31, 1999. The
Rights and associated product development expenditures (subject
to the
amortization schedule set forth in the Financial Statements) were
$1 at March
31, 1999 compared to $1 at March 31, 1998.
The Company is continuing in its attempts to acquire and
finance the
Paraguayan hydrocarbon concessions. In late 1997 and early 1998,
the Asian
economic crisis adversely affected the world price of
hydrocarbons, however,
activity in this field has historically been cyclical and the
Company
considers that in 1999 this crisis has already been discounted
and should not
adversely affect ongoing negotiations. During the fiscal year,
the Company
and its counsel have taken the position that individuals,
corporations and/or
financial institutions that either profited from or participated
in the
Private Placement through Barclay's Bank to finance the
Paraguayan hydrocarbon
concessions should compensate the Company for the unauthorized
use of its
securities and for breach of the original contractual
arrangements to the
Company's detriment. The Company's lawyers are investigating the
Company's
remedies as a result of these transactions and are confident that
the Company
will be successful.
Extraordinary Items
Subsequent to the end of the second quarter dated March 31,
1999, the
Company signed a letter of intent to acquire all of the
outstanding shares of
Resort Magic Vacations, Inc. of Las Vegas, Nevada. Resort Magic
is a licensed
timeshare sales company with ongoing projects in Hawaii and
Nevada. E.T.
Capital and Resort Magic have agreed to introduce secondary
selling and
auctioning of timeshare properties and other properties through
the Internet.
The Company has reserved the internet domain name
"ubuyauctions.com" and will
prepare the web page for the introduction of the timeshare
product. This web
site will be accessible by anyone in the world. There are many
millions of
timeshare units around the world, and many to the owners would
like to sell or
trade the ownership of their properties. Until now, there has
been no
facility to list or to dispose of the units.
Liquidity and Capital Resources
At March 31, 1999, the Company had cash assets of $50,327
and total
assets of $233,210, compared with no cash assets and total assets
of $243,843
at March 31, 1998. The Company is not aware of any known trends,
demands,
commitments, events or uncertainties that will result in or that
are
reasonably likely to result in the Company's liquidity increasing
or
decreasing in any material way.
Capital Resources and Expenditure
There were no significant capital expenditures made by the
Company during
the quarter ended March 31, 1999. Management of the Company
knows of no
material trends, favorable or unfavorable, with respect to the
Company's
capital resources.
Inflation
The results of the Company's operations have not been
significantly
affected by inflation during the quarter ended March 31, 1999.
Other Information
Part II. Other Information
Items 1, 2, 3, 4, 5, and 6 are not applicable and have been
omitted.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities
Exchange Act of 1934, the Registrant as duly caused this report
to be signed
on its behalf by the undersigned, duly authorized.
Dated: April 15, 1999
E.T. CAPITAL, INC. (the "Company")
By: /s/ Sidney B. Fowlds
Chairman of Board of Directors
Pursuant to the requirements of the Securities Exchange Act
of 1934, this
report has been signed below by the following persons on behalf
of the Company
and in the capacities and on the dates indicated.
Date: April 15, 1999/s/ Sidney B. Fowlds
Director
Date: April 15, 1999 /s/ John Johnston
Director
Date: April 15, 1999/s/ Robert Miller
Director
