U.S. 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 quarterly period ended December 31, 1995
Commission File Number: 0-09482
MYSTIQUE DEVELOPMENTS, INC.
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(Exact name of small business issuer as specified in its charter)
Wyoming 83-0246080
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(State of other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1975 East Otero Lane, Littleton, Colorado 80122
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(Address of principal executive offices including zip code)
(303)797-2385
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(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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___
As of May 22, 1996, 550,076 shares of common stock, $.001 par value per share,
were outstanding.
Transitional Small Business Disclosure Format (check one): Yes___ No X
MYSTIQUE DEVELOPMENTS, INC.
INDEX
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets as of December 31, 1995
and June 30, 1995 3
Statement of Operations for the Three Months
Ended December 31, 1995 and 1994 4
Statement of Operations for the Six Months
Ended December 31, 1995 and 1994 5
Statement of Cash Flows for the Six
Months Ended December 31, 1995 and 1994 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II. OTHER INFORMATION 9
Signatures 10
MYSTIQUE DEVELOPMENTS, INC.
BALANCE SHEET
December 31, 1995 June 30, 1995
ASSETS
Current Assets:
Cash $ 18,007 $ 27,537
Accounts receivable-trade 510,805 4,160
Accounts receivable-related parties -- 5,000
Total current assets 528,812 36,697
Other assets:
Other 523 523
523 523
Property and equipment, at cost using
successful efforts method, net 255,545 266,945
TOTAL ASSETS $ 784,880 $ 304,165
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 731 $ 8,988
Total current liabilities 731 8,988
Stockholders' Equity
Common stock, $.01 par value: author-
ized 75,000,000 shares; 550,076
shares issued and outstanding 5,500 5,500
Additional paid-in capital 1,866,868 1,866,868
Accumulated deficit (1,088,219) (1,577,191)
Total Stockholders' Equity 784,149 295,177
TOTAL LIABILITIES AND STOCK-
HOLDERS' EQUITY $ 784,880 $ 304,165
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The accompanying notes are an integral part of the financial statements.
MYSTIQUE DEVELOPMENTS, INC.
STATEMENT OF OPERATIONS
Three Months Ended December 31,
1995 1994
Revenues:
Oil and gas sales $ 25,100 $ 15,286
Management fees 500,450 1,050
Interest and other income 85 2,148
Total revenues 525,635 18,484
Expenses:
Production 9,330 21,618
General and administrative 499 1,530
Depletion and depreciation
and amortization 6,000 5,100
Total expenses 15,829 28,248
Net Income (Loss) $ 509,806 $ (9,764)
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Net Income per share $ .93 $ (.02)
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Weighted average shares
outstanding 550,000 550,000
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The accompanying notes are an integral part of the financial statements.
MYSTIQUE DEVELOPMENTS, INC.
STATEMENT OF OPERATIONS
Six Months Ended December 31,
1995 1994
Revenues:
Oil and gas sales $ 42,685 $ 44,189
Management fees 501,500 14,600
Interest and other income 220 2,210
Total revenues 544,405 60,999
Expenses:
Production 28,340 36,055
General and administrative 15,693 14,879
Depletion and depreciation
and amortization 11,400 10,200
Total expenses 55,433 61,134
Net Income (Loss) $ 488,972 $ ( 135)
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Net Income per share $ .89 $ -0-
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Weighted average shares
outstanding 550,000 550,000
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The accompanying notes are an integral part of the financial statements.
MYSTIQUE DEVELOPMENTS, INC.
STATEMENT OF CASH FLOWS
Six Months Ended December 31,
1995 1994
Cash provided by (used in)
operations:
Net Income (loss) $488,972 $( 135)
Adjustments:
Depletion, depreciation and
amortization 11,400 10,200
(Increase) decrease in accounts
receivable (501,645) 42,457
Increase (decrease) in accounts
payable (8,257) (5,286)
Revenues exchanged for assets -- (44,016)
Cash provided by (used in)
operations ( 9,530) 3,220
Net increase (decrease) in cash ( 9,530) 3,220
Cash, beginning of period 27,537 10,453
Cash, end of period $ 18,007 $13,673
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The accompanying notes are an integral part of the financial statements.
MYSTIQUE DEVELOPMENTS, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES
PROPERTY AND EQUIPMENT. The Company uses the successful efforts method of
accounting for oil and gas producing activities. Under this method, the costs
of unsuccessful exploratory wells, delay rentals, and dry hole con-tributions
are expensed as incurred. Lease acquisition costs and costs of drilling and
equipping productive exploratory wells and all development wells are
capitalized.
Depreciation and depletion of producing properties and equipment is computed
by the unit-of-production method using management estimates or independent
engineer's estimates of unrecovered proved producing oil and gas reserves.
The total capitalized costs for individual proved oil and gas properties is
limited to the estimated future net revenues from production of proved
reserves. A recoverability test "ceiling test" of proved properties is
performed on an undiscounted basis, net of income taxes, on a well by well
basis. An impairment amount equal to all costs above ceiling is charged to
operations during the period. Other equipment is depreciated by use of
accelerated methods using estimated asset lives of 3 to 7 years. When assets
are retired or otherwise disposed of, the cost and accumulated depletion,
depreciation or impairment are removed from the accounts and any resulting
gain or loss is reflected in operations in the period realized.
INCOME TAXES. The Company uses the liability method of accounting for income
taxes. Under the liability method, income taxes are recorded for future
events at tax rates in effect when the balances are expected to be settled.
EARNINGS (LOSS) PER COMMON SHARE. The earnings (loss) per share is based on
the weighted-average number of shares of common stock outstanding.
CASH AND CASH EQUIVALENTS. For purposes of the statement of cash flows, the
Company considers all highly liquid debt instruments purchased with a maturity
of three months or less to be cash equivalents.
2. ADJUSTMENTS
In the opinion of the Company, the accompanying unaudited financial statements
contain all adjustments (consisting of normal recurring accruals only)
necessary to present fairly, the Balance Sheet as of December 31, 1995, and
the Statement of Operations for the six months then ended and Statement of
Cash Flows for the six months then ended.
3. ADDITIONAL DETAILS
For additional details of the Company's financial condition, refer to the
notes to the Company's annual financial statements for the year ended June 30,
1995, filed in the Company's Form 10-KSB annual report.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Cash used $9,530 in operations for the six months ended December 31, 1995,
compared to providing $3,220 in the six months ended December 31, 1994. The
increase in the use of cash is due principally to the reduction in accounts
payable.
All of the Company's properties are held by production and thus there is no
requirement to drill and expend capital. Management's primary objective is
the merger with or acquisition of other small independent natural resource
companies and the acquisition of interests in proven oil and gas properties in
exchange for cash and shares of the Company's common stock.
The Company has no commitments to spend specific funds.
The Company's long-term potential will continue to depend on many outside
factors beyond its control, such as the demand for oil and natural gas, the
price of oil and gas, the cost of operations, the general economic climate and
the Company's ability to raise additional capital to achieve its objectives.
RESULTS OF OPERATIONS
Revenues for the three months ended December 31, 1995, increased $507,151 from
the comparable period in the previous year. This increase is caused by an
increase in oil sales of $9,814 due to increased production and an increase in
management fees of $499,400 due to significant consulting services provided in
1995.
Expenses for the three months ended December 31, 1995, decreased $12,419 from
the comparable period in the previous year. This decrease is due to lower
lease operating costs of $12,288 due to more efficient production operations
and a decrease in general and administrative expenses of $1,031 due to reduced
administrative activities.
EFFECT OF CHANGES IN PRICES
Changes in prices during the past few years have been a significant factor in
the oil and gas industry. The price received for the oil and gas produced by
the Company has fluctuated significantly during the period. Changes in the
price that the Company receives for its oil and gas is set by market forces
beyond the Company's control as well as governmental intervention.
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None.
Item 2. CHANGES IN SECURITIES
None.
Item 3. DEFAULTS UPON 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.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
MYSTIQUE DEVELOPMENTS, INC.
By:/s/ Dennis R. Staal
Dennis R. Staal, President, Chief
Executive officer and Chief
Financial and Accounting Officer
Date: May 22, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheets and statements of operations found on pages 3, 4 and 5 of the
Company's Form 10-QSB for the year to date, and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> DEC-31-1995
<CASH> 18,007
<SECURITIES> 0
<RECEIVABLES> 510,805
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 528,812
<PP&E> 255,545
<DEPRECIATION> 0
<TOTAL-ASSETS> 784,880
<CURRENT-LIABILITIES> 731
<BONDS> 0
<COMMON> 5,500
0
0
<OTHER-SE> 778,649
<TOTAL-LIABILITY-AND-EQUITY> 784,880
<SALES> 42,685
<TOTAL-REVENUES> 544,405
<CGS> 28,340
<TOTAL-COSTS> 28,340
<OTHER-EXPENSES> 27,093
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 488,972
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 488,972
<EPS-PRIMARY> .89
<EPS-DILUTED> 0
</TABLE>
