EMC ENERGIES, INC. FIRST QUARTER 10QSB
U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1998
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File No. 0-5391
EMC ENERGIES, INC.
(Name of Small Business Issuer in its Charter)
WYOMING 83-0210365
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
4685 S. HIGHLAND DR, SUITE 202
SALT LAKE CITY, UT 84117
(Address of Principal Executive Offices)
Issuer's Telephone Number: (801)274-1011
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by Sections 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 such filing requirements for the past 90 days.
(1) Yes No X (2) Yes X No
---- ---- ---- ----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS
None; not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of
shares outstanding of each of the Registrant's classes of common stock,
as of the latest practicable date:
September 30, 1998
Common Voting Stock
2,423,358
September 30, 1998
Preferred Stock
-0-
PART I - FINANCIAL INFORMATION
Item 1.Financial Statements.
The Financial Statements of the Registrant required to be filed with
this 10-QSB Quarterly Report were prepared by management and
commence on the following page, together with related Notes. In the opinion
of management, the Financial Statements fairly present the financial
condition of the Registrant.
<TABLE>
EMC ENERGIES, INC.
BALANCE SHEET
September 30, 1998 and June 30, 1998
(Unaudited)
<CAPTION>
ASSETS
9/30/98 6/30/98
<S> <C> <C>
Current Assets:
Cash $ 3,385 $ 3,894
Marketable Securities 28,525 28,525
Other Investments 1,575 1,575
_______ _______
Total Current Assets 33,485 33,994
Property & Equipment, net 2,500 10,500
------ ------
TOTAL ASSETS $ 35,985 $ 44,494
====== ======
LIABILITIES & STOCKHOLDERS' DEFICIT
Current Liabilities $ 0 $ O
_______ ________
Total Current Liabilities 0 0
Stockholders' Equity
Common stock, $.25 par value;
authorized 10,000,000 shares;
issued and outstanding 2,423,358 605,840 605,840
Additional Paid-in Capital 821,311 821,311
Accumulated Deficit (1,087,869) (1,079,360)
Accumulated Other Comprehensive
Income (Loss) (10,770) (10,770)
_________ _________
328,512 337,021
Less cost of treasury stock (292,527) (292,527)
_________ _________
Total Stockholders' Equity 35,985 44,494
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 35,985 $ 44,494
======== ========
</TABLE>
See accompanying notes to financial statements.
<TABLE>
EMC ENERGIES, INC.
STATEMENTS OF OPERATIONS
For the Three Month Periods Ended September 30, 1998 and 1997
(Unaudited)
<CAPTION>
Three Months Three Months
Ended Ended
9/30/98 9/30/97
<S> <C> <C>
REVENUE $ 0 $ 0
General and Administrative Expenses 509 1,135
Asset Impairment Charge 8,000 0
----- -----
Net Loss from Operations (8,509) (1,135)
Other Income/Expense
Interest Expense 0 0
------ -----
Total Other Income/Expense 0 0
Net Loss Before Taxes (8,509) (1,135)
Income Taxes 0 0
------ ------
Net Loss $ (8,509) $(1,135)
====== ======
Loss Per Share $ (.003) $(.0005)
====== ======
Weighted Average
Shares Outstanding 2,423,358 2,423,358
</TABLE>
See accompanying notes to the financial statements.
<TABLE>
EMC ENERGIES, INC.
STATEMENT OF STOCKHOLDERS' DEFICIT
FOR THE QUARTER ENDED SEPTEMBER 30, 1998
<CAPTION>
Accum.
Common Stock Add'l Accum- Other Treasury Stock
Shares Amount Paid-in ulated Comprehens. Shares Amount
Issued Paid Capital Deficit Losses Issued Paid Total
-------- ------ ------- --------- ------- ------- -------
- -----
<S><C> <C> <C> <C> <C> <C> <C> <C>
Balance,
June 30,1998
2,423,358 $605,840 $821,311 $(1,079,360)$(10,770)353,386 $(292,527)$44,494
Net Loss
for the
Period Ended
September 30, 1998 (8,509) (8,509)
_________ _______ _______ _________ ______ _______ _______ _______
Balance, September 30, 1998
2,423,358 $605,840 $821,311 $(1,087,869)$(10,770)353,386 $(292,527)$35,985
========= ======== ======== =========== ======== ======= ========= ========
</TABLE>
See accompanying notes to the financial statements.
<TABLE>
EMC ENERGIES, INC.
STATEMENTS OF CASH FLOWS
For the Three Month Periods Ended September 30, 1998 and 1997
(Unaudited)
<CAPTION>
Three Months Three Months
Ended Ended
9/30/98 9/30/97
<S> <C> <C>
Cash Flows Provided By/Used For
Operating Activities
Net Loss $ (8,509) $ (1,135)
Adjustments to reconcile
net loss to net cash provided by/
used in operating activities:
Changes in assets & liabilities 0 0
Asset impairment charge 8,000 0
----- -----
Net Cash Provided By/Used
for Operating Activities (509) 0
Cash Flows Provided By/Used for
Financing Activities
Principal increase in notes payable 0 0
Investment by shareholder 0 0
----- -----
Net Cash Provided By Financing
Activities 0 0
----- -----
Net Decrease in Cash (509) (1,135)
Beginning Cash Balance 3,894 3,056
----- -----
Ending Cash Balance $3,385 $1,921
===== =====
Supplemental Disclosure
Interest paid $ 0 $ 0
===== =====
Income taxes paid $ 0 $ 0
===== =====
</TABLE>
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and Article 10 of Regulation S-X. Accordingly, they do
not include all of the information and footnotes required for complete
financial statements. In the opinion of management, all adjustments
necessary for a fair presentation of the results for the interim periods
presented have been included.
These results have been determined on the basis of generally accepted
accounting principles and practices applied consistently with those used in
the preparation of the Company's audited Financial Statements for the year
ended June 30, 1998.
NOTE 2 - PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
September 30, June 30,
1998 1998
------------- ----------
Land $ 10,500 $ 10,500
Proved Leasehold 250 250
Well equipment 670 670
----------- ---------
Less accumulated depletion & impairment 8,920 920
----------- ---------
$ 2,500 $ 10,500
=========== =========
NOTE 3 - STOCKHOLDERS' EQUITY
The Company has adopted SFAS 130 which requires presentation of comprehensive
income (net income plus all other changes in net assets from non owner
sources) and its components in the financial statements. The Company has
changed the format of its statements of stockholders' equity (deficit) to
present comprehensive income. Accumulated other comprehensive income or loss
shown in the statements of stockholders' equity at September 30, 1998 and June
30, 1998, is solely comprised of the accumulated change in unrealized gains
and losses on marketable securities.
NOTE 4 - RELATED PARTY TRANSACTIONS
During the period ended September 30, 1998 and the year ended June 30, 1998
the Company paid an Officer and Director $257 and $551 respectively for
services rendered to the Company.
NOTE 5 - MARKETABLE SECURITIES AND OTHER INVESTMENTS
Marketable Securities are carried on the balance sheet at their Fair value as
shown below.
September 30, June 30,
1998 1998
------------ ----------
Cost $ 39,295 $ 39,295
Unrealized loss 10,770 10,770
------- -------
Market value $ 28,525 $ 28,525
======= =======
Item 2.Management's Discussion and Analysis or Plan of Operation. Plan of
Operation.
The Company has not engaged in any material operations in the period ending
September 30, 1998, or since on or before June 30, 1990. The Company intends
to continue to seek out the acquisition of assets, property or businesses that
may be beneficial to the Company and its stockholders. The Company's
foreseeable cash requirements during the next 12 months will relate to
maintaining the Company in good standing, keeping its reports "current" with
the Securities and Exchange Commission, and costs related to locating and
reorganizing with a going-concern merger candidate. Management anticipates
that the Company will have to raise or borrow additional funds during the next
12 months to this end.
Results of Operations. The Company has had no operations since June 1990.
During the quarterly period covered by this Report, the Company received no
revenue and incurred nominal expenses. At September 30, 1998, the Company had
$35,985 in assets and no liabilities.
The Company had a net loss for the three months ended September 30, 1998
of $(8,509) compared to a net loss of $(1,135) for the same period last year.
The Company has a net operating loss carryforward of $(1,087,869) since
inception.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None; not applicable.
Item 2. Changes in Securities.
None; not applicable.
Item 3. Defaults Upon Senior Securities.
None; not applicable.
Item 4. Submission of matters to a Vote of Security Holders.
None; not applicable
Item 5. Other Information.
None; not applicable
Item 6. Exhibits and Reports on Form 8-K.
Exhibit Number Description
- - -------------- -----------
(27) Financial Date Schedule.
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.
EMC ENERGIES, INC.
Date: 12-3-99 By /S/Thomas Galles
President and Director
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 3,385
<SECURITIES> 28,525
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 33,485
<PP&E> 2,500
<DEPRECIATION> 0
<TOTAL-ASSETS> 35,985
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 605,840
<OTHER-SE> (277,328)
<TOTAL-LIABILITY-AND-EQUITY> 35,985
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 8,509
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (8,509)
<INCOME-TAX> 0
<INCOME-CONTINUING> (8,509)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,509)
<EPS-BASIC> (.003)
<EPS-DILUTED> (.003)
</TABLE>
