SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal quarter ended March 31, 1997
Commission File No. 0-9297
CRONUS CORPORATION
a NEVADA corporation
36-388074
(I.R.S. Employer Identification Number)
7660 E. BROADWAY #210, TUCSON, ARIZONA 85710
Registrant's telephone number, including area code (520)
885-1220
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 receding
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.
[X] Yes [ ] No
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest
practicable date.
Class Outstanding as of June 1, 1998
$.001 PAR VALUE 21,414,816 SHARES
COMMON STOCK
DOCUMENTS INCORPORATED BY REFERENCE:
1. Audited Financial Statements for the years ended
December 31, 1997 and 1996, dated June 10, 1998. 1997 10-
KSB filed June 15, 1998.
PART 1
ITEM 1. Financial Statements
J. Dennis Bartlett, P.C.
Certified Public Accountant
2421 E. 6th Street
Tucson, Arizona 85716
Cronus Corporation
Tucson, Arizona
I have compiled the accompanying balance sheet of Cronus
Corporation (a Nevada corporation) as of March 31, 1998, and
the related consolidated statement of income for the three
months then ended in accordance with standards established
by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of
financial statements information that is the representation
of management. I have not audited or reviewed the
accompanying financial statements and, accordingly, do not
express an opinion or any other form of assurance on them.
Management has elected to omit substantially all of the
disclosures and the statement of cash flows required by
generally accepted accounting principles. If the omitted
disclosures and statement of cash flows were included with
the financial statements, they might influence the user's
conclusions about the Company's financial position,
results of operations, and cash flows. Accordingly, these
financial statements are not designed for those who are not
informed about such matters.
/s/
J. Dennis Bartlett, P.C.
March 31, 1998
J. Dennis Bartlett, P.C.
Certified Public Accountant
2421 E. 6th Street
Tucson, Arizona 85716
We hereby consent to the inclusion of our report dated March
31, 1998, in the quarter report of Cronus Corporation on
Form 10-QSB for the period ended March 31, 1998.
/s/
J. Dennis Bartlett, P.C.
Tucson, Arizona
March 31, 1998
CRONUS CORPORATION
Balance Sheet
As of March 31, 1998
ASSETS
Current Assets
Accounts receivable $ 1,926
Prepaid expenses 156,250
Total Current Assets $ 158,176
Fixed Assets
Computer equipment 3,071
Office equipment/furniture 5,342
Less: accumulated depreciation (3,062)
Acquisition costs 17
Operation costs 600
Other property & prospects 750
ATP 594 600,000
ATP 636 35,000
Bayou Pierre 222,929
Cholla Tank 21,122
El Tule 9,778
Goat Ranch Draw 4,020
Grayhawk Option 7,997
Little Colorado 9,541
Manuel Seep 26,902
Meteor Crater 2,728
Oso Draw 30,961
Red Dog 37,458
Wittman 1,280
Total Fixed Assets 1,016,434
Other Assets
Deposits 1,802
Investments 1,180,890
Total Other Assets 1,182,692
TOTAL ASSETS 2,357,302
LIABILITIES & SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 186,230
Note payable bank 30
Loans payable 781,477
Accrued expenses 437,373
Payroll taxes payable 3,603
TOTAL LIABILITIES, ALL CURRENT 1,408,713
STOCKHOLDERS' EQUITY
Capital Stock 670,284
Additional paid in capital 1,967,417
Treasury stock (250)
Retained Earnings (1,545,149)
Net income year to date (143,713)
TOTAL STOCKHOLDERS' EQUITY 948,589
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 2,357,302
CRONUS CORPORATION
Profit and Loss
January through March 1998
INCOME
Bayou Pierre - Gas $ 6,621
OPERATING EXPENSES
Automobile expense 131
Bank charges 158
Bonus 7,400
Contributions 200
Dues & subscriptions 813
Equipment rental 355
Fees 1,380
Licenses & permits 55
Maintenance expense 1,874
Office 1,609
Operating expense 34,274
Payroll 68,500
Payroll taxes 2,383
Postage & delivery 1,169
Professional fees 11,967
Proxy 85
Rent 2,574
Royalties 6,321
Supplies 2,078
Telephone 1,615
Travel & entertainment 4,413
Utilities 205
Web site hosting fee 775
Total Expense 150,334
Net Income (143,713)
Please see Audited Financial Statements and Notes for the
years ended December 31, 1998 and 1997, dated June 10, 1998,
filed as an exhibit to the Company's 1997 10-KSB on June 15,
1998.
ITEM 2. Management's Discussion and Analysis or Plan of
Operation.
Disclosure Regarding Forward-Looking Statements.
This report on Form 10-KSQ includes "forward-looking
statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"),
and Section 21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"). All statements other than
statements of historical facts included in this report,
including, without limitation, statements under
"Management's Discussion and Analysis or Plan of
Operations" regarding the Company's financial position,
reserve quantities and net present values, business
strategy, plans and objectives of management of the
Company for future operations and capital expenditures, are
forward-looking statements and the assumptions upon which
such forward-looking statements are based are believed to be
reasonable. The Company can give no assurance that such
expectations and assumptions will prove to have been
correct. Reserve estimates of oil and gas properties are
generally different from the quantities of oil and natural
gas that are ultimately recovered or found. This is
particularly true for estimates applied to exploratory
prospects. Additionally, any statements contained in this
report regarding forward-looking statements are subject to
various known and unknown risks, uncertainties and
contingencies, many of which are beyond the control of the
Company. Such things may cause actual results, performance,
achievements or expectations to differ materially from the
anticipated results, performance, achievements or
expectations. Factors that may affect such forward-looking
statements include, but are not limited to, the Company's
ability to generate additional capital, risks inherent in
oil and gas acquisitions, exploration, drilling, development
and production, price volatility of oil and gas,
competition, shortages of equipment, services and supplies,
government regulation, environmental matters, financial
condition of the other companies participating in the
exploration, development and production of oil and gas
programs and other matters. All written and oral forward-
looking statements attributable to the Company or persons
acting on its behalf subsequent to the date of this report
are expressly qualified in their entirety by this
disclosure.
As described more fully below, management expects to receive
significant income from PetroSun oil and gas leases in
Louisiana during 1998. During this quarter, the Company
acquired Strategic Consulting & Administration, Inc. ("SCI")
and Triple J Resources, Pty., Ltd. ("Triple J"). SCI is the
designated recipient of an Authority To Prospect (ATP 636P)
in Queensland, Australia, while Triple J holds ATP 594P,
also in Queensland.
The Company is currently in the process of acquiring Rancho
El Laurel, S.A., a Costa Rican company whose primary asset
is ownership of 5,000 acres of hardwood forest in Costa
Rica. The Company anticipates closing this acquisition by
the end of August, 1998.
As can be seen in the financial statements, the Company has
incurred losses from operations and has deficits in working
capital. The Company earned minimal income from its first
quarter operations do to the ongoing rehab of the Shut-in
wells in Louisiana, however, it expects to receive
significant income in the next quarter from those oil and
gas leases. The company has five drilling projects funded
for the next two quarters and expects to raise additional
funding as needed. The drilling projects are further
explained below. There can be no assurance that a cash flow
will be generated or that funding will be raised. The
Company currently has no commitments for any type of
funding, and there is no assurance that the Company will be
able to obtain any such financing or that such financing, if
obtainable, will be on terms necessary to enable the Company
to operate profitably.
Future Business Strategy and Operations.
The Company's ongoing business strategy is to create and
expand its reserve base and cash flow primarily through the
following:
1. Raising significant capital to conduct assessments of
the economical feasibility of extracting minerals from its
properties, and to take advantage of leading edge
technologies such as pulse plasma secondary recovery and 3-D
seismic exploration projects.
2. Position itself with strategic sources of capital and
partners that can react to opportunities in the mining and
oil and gas business when they present themselves.
3. Developing alliances with major mineral and oil and gas
finders that have been trained by the major oil and mineral
companies.
4. Participate in projects that have opportunities
involving relatively small amounts of capital that could
potentially generate significant rates of return. These
projects include areas with large field potentials in
Northern Arizona, New Mexico, Louisiana and
Queensland, Australia.
5. Implementing the Company's investment strategy to
carefully consider, analyze, and exploit the potential value
of the Company's existing assets to increase the rate of
return to its shareholders.
6. Reinvesting future operating cash flows into development
of drilling and recompletion activities.
7. Acquiring properties that build upon and enhance the
Company's existing asset base.
8. Developing a long term track record regarding stock
price performance and a reasonable rate of return to the
shareholder.
The Company recognizes that the ability to implement its
business strategies is largely dependent on the ability to
increase operating cash flows by raising additional debt or
equity capital to fund future drilling and developmental
activities. Management believes that it will be necessary
to raise additional equity or debt capital to overcome
the Company's undercapitalization.
The steps the Company intends to take to assess the
feasibility of its current projects are described below.
There can be no assurance that the Company will be able to
place such oil and gas assets into production or to conclude
such feasibility assessments, or that if it is able to do
so, that it will be able to engage in oil and gas and/or
mining operations profitably.
OIL AND GAS PLAN OF OPERATIONS
The Company's primary objective will be to place the oil and
gas assets of its subsidiary into production. PetroSun
controls oil and gas leases on approximately 2,200 acres of
land in Louisiana referred to as Bayou Pierre Project. The
leases contain 17 proven developed oil and gas wells. These
wells have been shut-in since the late 1980's due to the
then low price of oil, so it will be necessary to change the
pumps on the pumping wells and conduct related maintenance
work that is normal for this type operation. Currently, 5
of the wells have been rehabilitated and placed into
production. The Company estimates that the cost to complete
the rehabilitation of the wells to be $60,000. The leases
also contain an additional 105 proven undeveloped
locations which the Company plans to drill if economically
feasible.
Drilling Projects
Louisiana:
PetroSun has joint ventured with Vector Horizontal Inc. and
Tiger Exploration & Production Inc. to drill a horizontal
Nacatoch gas well (William Prince #20) on the Bayou Pierre
lease. The drilling is anticipated to begin in July 1998.
The drilling cost have been funded for this project. Also,
PetroSun has Joint Ventured with Tedan and Tiger Exploration
& Production Incorporated to drill a Paluxy / Glen Rose test
well (William Prince #21) on the Bayou Pierre Lease. The
drilling is anticipated to begin in August 1998. The
drilling cost have been funded for this project.
New Mexico:
On October 22, 1997, PetroSun the acquired the Red Dog
Prospect located in McKinley County, New Mexico, covering
1,921.18 acres. The Red Dog Prospect is situated on a
northeast - southwest trending anticlinal fold on the Chaco
Slope of the San Juan Basin. Seismic data indicates a
feature in the Entrada formation that has been interpreted
as a reflection from an oil-water contact. In a homogenous
sandstone such as the Entrada a 30 foot oil column is needed
before an oil-water contact can be detected. Analysis of
satellite imagery confirmed that there is micro-seepage to
the surface. The hydrocarbon reflectance covers
approximately 1420 acres. The Entrada has excellent
reservoir quality, with an average porosity of 23.6% and an
average permeability of 315 millidarcies. On 40 acre
spacing, recoverable reserves are estimated to be 456,800
barrels of oil for a well with 30 feet of pay and a water
drive recovery of 35%. The secondary objectives of the Red
Dog Prospect include the Dakota at 3,300 feet and the Mancos
at 2,900 feet. PetroSun anticipates drilling the initial
test well in the Entrada by the end of July, 1998. PetroSun
has joint ventured with industry partners to raise the funds
for this prospect.
PetroSun acquired the Cholla Tank Prospect located in
McKinley County, New Mexico on November 22, 1997. The
Cholla Prospect is situated on a northeast - southwest
trending anticlinal fold on the Chaco Slope of the San Juan
Basin.
Seismic data indicates a feature in the Entrada formation
that has been interpreted as a reflection from an oil-water
contact. In a homogenous sandstone such as the Entrada a
30 foot oil column is needed before an oil-water contact can
be detected. Analysis of satellite imagery confirmed that
there is microseepage to the surface. The Entrada has
excellent reservoir quality, with an average porosity of
23.6% and an average permeability of 315 millidarcies. On
40 acre spacing, recoverable reserves are estimated to be
456,800 barrels of oil for a well with 30 feet of pay and a
water drive recovery of 35%. The secondary objectives of
the Cholla Prospect include the Dakota at 3,300 feet and the
Mancos at 2,900 feet. PetroSun is currently in the process
of surveying and permitting the initial test well and
anticipates drilling to commence by the end of August, 1998
with funding from industry partners. The Cholla Tank
Prospect is a direct offset to PetroSun's Red Dog Prospect.
Australia:
Triple JJJ Resources Pty., Ltd.
On February 14, 1998, the Company entered into a letter
agreement to acquire all the outstanding shares of Triple
"J" Resources Pty., LTD. ("JJJ"). JJJ is the holder of ATP
594P, a 375,000 acre oil and gas concession located in
Queensland, Australia within the oil and gas producing
region of the Eromanga basin. JJJ has a farmout agreement
with Icon Oil, NL by which Icon agreed to drill the first
test well on ATP 594P, and to thereafter provide 50% of the
costs of any additional wells in return for half of the
Company's interest in ATP 594P.
On April 16, 1998, Cronus announced the completion of
drilling on the first well on ATP 594P, the Taylor Franks
No. 1 well in the Eromanga Basin of east-central Australia.
The well reached a total depth of 2,643 meters with gas
shows from 2,520 to 2,643 meters. Two drill stem tests were
performed in the Toolachee and Patchawarra formations in the
Permian section. The tests indicated gas flow rates of
approximately 30,000 cubic feet per day with no water.
The results of this first well indicate good structure and
the presence of gas in this province. The flow results and
penetration rate confirmed a tight reservoir and lack of
sufficient porosity at this location, thus the well was
plugged. While proving that there is gas on this
concession, the next step is to drill a confirmation well in
the same zone that has greater porosity and provides
commercially viable flow rates to capitalize on this find.
Cronus and Icon Oil NL have determining a second location
for the next well and anticipates the well to be spudded in
September 1998 on the concession. The cost to the Company
to drill the next well is approximately $300,000.
Strategic Consulting and Administration, Inc.
On October 17, 1997, the Company entered into an agreement
to acquire all the outstanding shares of Strategic
Consulting and Administration, Inc. ("SCI"). SCI is the
designated company to receive ATP 636P, a 640,000 acre oil
and gas concession located in Queensland, Australia within
the oil and gas producing region of the Eromanga basin. SCI
cannot receive the Authority To Prospect until the issues
surrounding the Native Title Claims Act have been resolved
by the parliament of Queensland, Australia.
With the establishment of commercial production on any
prospect, further development wells will be drilled during
the balance of 1998.
Although the Company is currently pursuing prospects within
the project areas described above, and has budgeted to drill
the number of wells set forth, there can be no assurance
that these prospects will be drilled at all or within the
expected time frame. In particular, budgeted wells that are
based upon statistical results of drilling activities in
other project areas are subject to greater uncertainties
than wells for which drillsites have been identified. The
final determination with respect to the drilling of any
identified drillsites or budgeted wells will be dependent on
a number of factors, including (i) the results of
exploration efforts and the acquisition, review and analysis
of the seismic data, (ii) the availability of sufficient
capital resources by the Company and the other participants
for the drilling of The prospects, (iii) the approval of the
prospects by other participants after additional data has
been compiled, (iv) the economic and industry conditions at
the time of drilling, including prevailing and anticipated
prices for oil and natural gas and the availability of
drilling rigs and crews, (v) the financial resources and
results of the Company and (vi) the availability of leases
on reasonable terms and permitting for the prospect. There
can be no assurance that these projects can be successfully
developed or that the identified drillsites or budgeted
wells discussed will, if drilled, encounter reservoirs of
commercially productive oil or natural gas.
The success of the Company will be materially dependent upon
the success of its exploratory drilling program.
Exploratory drilling involves numerous risks, including the
risk that no commercially productive oil or natural gas
reservoirs will be encountered. The cost of drilling,
completing and operating wells is often uncertain, and
drilling operations may be curtailed, delayed or canceled as
a result of a variety of factors, including unexpected
drilling conditions, pressure or irregularities in
formations, equipment failures or accidents, adverse weather
conditions, compliance with governmental requirements and
shortages or delays in the availability of drilling rigs
and the delivery of equipment. Although the Company
believes that its use of available data and other advanced
technologies should increase the probability of success of
its exploratory wells and should reduce average finding
costs, exploratory drilling remains a speculative activity.
Even when fully utilized and properly interpreted, seismic
data and other advanced technologies only assist
geoscientists in identifying subsurface structures and do
not enable the interpreter to know whether hydrocarbons are
in fact present in such structures. In addition, the use of
seismic data and other advanced technologies requires
greater predrilling expenditures than traditional drilling
strategies and the Company could incur losses as a result of
such expenditures. The Company's future drilling activities
may not be successful, and if unsuccessful, such failure
will have a material adverse effect on the Company's results
of operations and financial condition. There can be no
assurance that the Company's overall drilling success rate
or its drilling success rate for activity within a
particular project area will not decline. The Company may
choose not to acquire option and lease rights prior to
acquiring seismic data and, in many cases, the Company may
identify a prospect or drilling location before seeking
option or lease rights in the prospect or location.
Although the Company has identified or budgeted for numerous
drilling prospects, there can be no assurance that such
prospects will ever be drilled (or drilled within the
scheduled or budgeted time frame) or that oil or natural gas
will be produced from any such prospects or any other
prospects. In addition, prospects may initially be
identified through a number of methods, some of which do not
include interpretation of seismic data. Wells that are
currently included in the Company's capital budget may be
based upon statistical results of drilling activities in
other project areas that the Company believes are
geologically similar, rather than on analysis of seismic or
other data. Actual drilling and results are likely to vary
from such statistical results and such variance may be
material. Similarly, the Company's drilling schedule may
vary from its capital budget because of future
uncertainties, including those described elsewhere.
MINING
The Company intends to asses the feasibility of potential
future mining projects, involving the Gila Gold Placer
mining claims.
Gila Association Placer Mine Project.
Gila Gold Placer Project:
The Company plans to verify and confirm the existence,
extend and grade of placer gold located at the Gila Gold
Placer claims. First, it intends to asses the presence and
tenor of placer gold as described in engineering reports of
past exploration efforts. Next, the Company will analyze
the economic viability of such deposit by determining
optimal production rate and stripping-sorting ratios,
defining a mining and reclamation technique, generating a
flow sheet, and isolating processing, mining, capital,
reclamation and general overhead cost factors.
The Company plans to conduct a seismic survey consisting of
a 5-line, 25' spacing, 9000 lineal foot, segmented survey.
This survey will be complimented with computer
enhanced calculations, storage, retrieval and printout
capabilities. This survey will provide definitions of the
alluvial-bedrock contact. From this information, cross-
sectional views will be generated to define ore reserve
volume, assist in mine planning and describe mining
technique.
The Company also plans to conduct a bulk sampling, intended
to ascertain the following: value recoverable per cubic
yard, concentrating ratio, concentrating technique, and
general ground conditions and boulder contact, nature of
interbeds, slope stability, reject swell and nature of
backfill material. The Company estimates the costs of the
assessment to that point to be $75,000. The accumulation of
data from this sampling project will provide the baseline to
confirm ore reserves and feasibility of the mining project.
Due to the current prices of gold, this project has been
placed on hold until such time as gold prices warrant
continuation of this project.
Moapa Project
The Company entered into a joint venture project with Temple
Summit Financial Projects, Inc. ("TSFP") whereby TSFP will
contribute approximately 1,200 acres of mining claims in
Moapa County, Nevada (the "TSFP Moapa Claims"). The Company
engaged with TSFP in a multi-phase project to test the TSFP
Moapa Claims area. The Company is in the process of
reviewing and confirming the results of testing the
analytical procedure and determination of the economic
viability of the project.
Financial Requirements and Source of Funds.
The Company is currently rehabilitating the shut-in oil and
gas wells by setting compressors and pumps which will allow
PetroSun, to put its revenue producing assets in Louisiana
into production starting in October, 1997. Based on
historical production rates, the Company believes that
PetroSun's oil and gas production in Louisiana should
produce net revenues sufficient to cover basic operating
expenses of the Company of $250,000 through its exploratory
period for the next six months.
Thereafter, the Company believes it will need to raise at
least $1,500,000 in order to conduct testing and drilling of
its oil and gas properties, and to conduct testing of the
Moapa Project, the Gila Gold Placer Project, and the Black
Diamond Project. Such funds may be sought through the
issuance of additional shares of the Company's Common Stock
or other equity securities, through debt financing, or
through various arrangements, including joint ventures
and/or mergers, with third parties. However, the
Company currently has no commitments for any type of
funding, and there is no assurance that the Company will be
able to obtain any such financing or that such financing, if
obtainable, will be on terms necessary to enable the Company
to operate profitably. If the Company is unsuccessful in
completing a private type placement, or if additional funds
are necessary either before or after such a transaction, it
is uncertain at this time what actions the Company will
take. Possibilities include other debt or equity financings
or the sale of existing assets.
Competition - Oil and Gas
The oil and gas industry is highly competitive in all
phases. The Company will encounter strong competition from
other independent oil and gas companies in acquiring
economically desirable prospects as well as in marketing
production therefrom and obtaining external financing.
Substantially all of the Company's competitors have
financial resources, personnel resources, and facilities
substantially greater than those of the Company.
Competition - Mining
There is considerable competition for mining prospects on
federal lands. Costs of exploration, testing and mining,
milling, transportation, labor and other costs have risen
dramatically. These costs would be a factor in determining
whether the discovery of minerals, if any, would be
commercial or not, and could render a discovery
unprofitable, even if made.
In addition to the uncertainty surrounding the eventual
development of commercial mineralization on the Company's
properties, the success of any mining operation which
might be conducted is dependent upon the price of minerals
on the domestic and world markets, which is subject to
fluctuations, in part as a result of actions by central
banks and government policies.
PART II
ITEM 1. Legal Proceedings.
From time to time the Company is a party to various legal
proceedings arising in the ordinary course of business. The
Company is not currently a party to any litigation that
it believes could have a material adverse effect on the
financial position of the Company.
ITEM 2. Changes in Securities.
None
ITEM 3. Defaults Upon Senior Securities.
None
ITEM 4. Submission of Matters to a Vote of Security
Holders.
The following items were submitted to shareholder vote
pursuant to the Company's proxy statement dated January 9,
1998, and voted on at the shareholders meeting held on
February 5, 1998.
1. Elect as directors the following seven individuals
nominated by the Board of Directors to serve until the next
annual meeting of shareholders and until their respective
successors shall have been duly elected and qualified or
until they shall earlier resign or be removed from office.
To Withhold Authority for any individual nominee, strike a
line through the name below:
Mr. Jonathan Roberts.
FOR AGAINST ABSTAIN
9,266,247 100,000 53,796
Mr. Kevin M. Sherlock.
FOR AGAINST ABSTAIN
9,266,142 100,000 53,796
Mr. George Hennessey.
FOR AGAINST ABSTAIN
9,266,142 100,000 53,796
Mr. Gordon M. LeBlanc, Jr.
FOR AGAINST ABSTAIN
9,266,142 100,000 53,796
Mr. J. Dennis Bartlett.
FOR AGAINST ABSTAIN
9,266,142 100,000 53,796
Mr. Jim Karten.
FOR AGAINST ABSTAIN
9,266,142 100,000 53,796
Mr. Thomas J. Nieman.
FOR AGAINST ABSTAIN
9,266,142 100,000 53,796
The above nominees were elected directors. Mr. James Elder
received 532,000 votes and, therefore, was not elected as a
director.
2. Adopt the Stock Option Plan set forth in form and
substance as Exhibit A to the Proxy Statement for the annual
meeting:
FOR AGAINST ABSTAIN
9,069,147 82,551 16,246
The Stock Option Plan was therefore adopted.
3. Ratify the selection of Addison Roberts & Ludwig, P.C.
as the independent Certified Public Accountants of the
Company for the fiscal year 1997:
FOR AGAINST ABSTAIN
9,293,143 94,000 15,746
The Ratification of Addison Roberts & Ludwig, P.C. as
independent Certified Public Accountants for the Company
passed.
4. Grant Mr. Roberts the Authority to act in his discretion
with respect to such other and further business as may
properly come before the meeting:
FOR AGAINST ABSTAIN
553,692 115,101 16,996
The following shareholder proposals were submitted to
shareholder vote at the shareholders meeting held on
February 5, 1998.
"In order to clarify the exact composition of the board of
directors, and in order to be able to attract and retain the
highest qualified executives and board of director
members, the following proposals are made to amend the
articles of incorporation of Cronus."
1. ARTICLE FIVE. [Directors]. The affairs of the
corporation shall be governed by a Board of Directors of
three (3) or more persons. All decisions of the Board must
have majority consent of the Directors.
FOR AGAINST ABSTAIN
9,270,692 0 0
2. ARTICLE TWELVE. [Indemnification]. The Corporation
shall indemnify any person who incurs expenses or
liabilities by reason of the fact that he or she is or was
an officer, director or employee of the Corporation or is or
was serving at the request of the Corporation as a director,
officer or employee of another corporation, partnership,
joint venture, trust or other enterprise. This
indemnification shall be mandatory in all circumstances in
which indemnification is permitted by law.
FOR AGAINST ABSTAIN
9,270,692 0 0
3. ARTICLE THIRTEEN. [Limitation of Liability]. To the
fullest extent permitted by Law, as it exists or may
hereinafter be amended, a director of the Corporation shall
not be liable to the Corporation or its stockholders for
monetary damages for any action taken or any failure to take
any action as a director. No repeal, amendment or
modification of this article, whether direct or indirect,
shall eliminate or reduce its effect with respect to any act
or omission of a director of the Corporation occurring prior
to such repeal, amendment or modification.
FOR AGAINST ABSTAIN
9,270,692 0 0
"Proposal to ratify the articles of incorporation of Cronus
Corporation as so amended."
FOR AGAINST ABSTAIN
9,270,692 0 0
The above shareholder resolutions all passed.
ITEM 5. Other Information
None
ITEM 6. Exhibits and Reports on Form 8-K.
During the first quarter of 1998 ending on March 31, 1997,
no form 8-K reports were
filed.
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.
CRONUS CORPORATION
DATE: June 15, 1998 By:
__/s/_________________
Jonathan Roberts,
President and Director
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S UNAUDITED QUARTERLY FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 1,926
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 158,176
<PP&E> 2,196,064
<DEPRECIATION> 3,062
<TOTAL-ASSETS> 2,357,302
<CURRENT-LIABILITIES> 1,408,713
<BONDS> 0
0
0
<COMMON> 18,552
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,357,302
<SALES> 0
<TOTAL-REVENUES> 6,621
<CGS> 0
<TOTAL-COSTS> 150,334
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (143,713)
<EPS-PRIMARY> (.007)
<EPS-DILUTED> (.007)
</TABLE>
