FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20548
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15D OF THE SECURITIES
EXCHANGE ACT OF 1934
For The Quarterly Period Ended March 31, 1999
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15D OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________to___________
Commission File Number -- 0-10926
TECFIN CORPORATION
Exact name of registrant as specified in its charter)
Delaware 11-2552239
(State or other Jurisdiction (IRS Employer Identification Number)
of Incorporation or Organization )
107 Northern Boulevard, Great Neck, New York 11021
(Address of principal offices) (Zip Code)
(516) 829-3774
(Registrant's Telephone Number including area code)
Indicate by checkmark 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 such filing requirements for the past 90 days.
Yes __X____ No _______
The number of shares outstanding of each of the issuer's classes of common
shares, as of May 15, 1999 was 64,205,721 shares of Common stock
$.0001 par value per share, excluding 285,000 shares held in treasury.
Part I - FINANCIAL INFORMATION
Item l Financial Statements
<TABLE>
<CAPTION>
TECFIN CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF NET ASSETS-
LIQUIDATION BASIS
ASSETS
MARCH 31, DECEMBER 31,
1999 1998
(Unaudited) (Audited)
<S> <C> <C>
Cash and cash equivalent $ 10,747 $ 11,672
Demand note receivable-related party 169,280 164,350
--------- ---------
Total assets $180,027 $176,022
======== =========
LIABILITIES
Liabilities:
Income taxes payable 145 145
Accrued expenses and other current
liabilities 20,962 20,962
-------- --------
Total liabilities 21,107 21,107
-------- --------
Net assets $158,920 $154,915
======== ========
</TABLE>
See Notes to Consolidated Financial Statements
<TABLE>
<CAPTION>
TECFIN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN NET ASSETS
LIQUIDATION BASIS
For the Three Months
Ended March 3l,
----------------------------
1999 1998
------------ ------------
<S> <C> <C>
Net assets as of Jan l, $154,915 $147,294
-------- --------
Sales and operating
revenues 4,930 3,038
-------- --------
Cost and expenses:
Selling, general and
administrative 925 1,040
-------- --------
925 1,040
-------- --------
Income before
provision for
income taxes 4,005 1,998
Provision for taxes - -
-------- --------
Net income 4,005 1,998
-------- --------
Net assets as of March 31 $158,920 $149,202
======== ========
Weighed average number of
shares outstanding (A) (A)
======== ========
Earnings per share (note2)
Income per common share $ - $ -
======== ========
</TABLE>
(A) - 64,205,771 shares outstanding in all periods
See Notes To Consolidated Financial Statements
3
<TABLE>
<CAPTION>
TECFIN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
LIQUIDATION BASIS
For Three
Months Ended Additional Total
March 31, Common Paid-in Accumulated Treasury Shareholders
1999 Stock Capital Deficit Stock Equity
------------- -------\\tab ---------\\tab ----------- --------
<S> <C> <C> <C> <C> <C>
Balance at
Jan l, 1999 $6,449 $1,079,170 ($943,529) ($2,775) $154,915
Net income 4,005 4,005
------ ---------- ---------- -------- --------
Balance
3/31/99 $6,449 $1,079,170 ($939,524) ($2,775) $158,920
For Three
Months Ended
March 31,
1998
------------
Jan 1, 1998 $6,449 $1,079,170 ($935,550) ($2,775) $147,294
Net income 1,998 1,998
------- ----------- ---------- -------- -------
Balance
3/31/98 $6,449 $1,079,170 ($933,552) ($2,775) $135,908
====== ========== ========== ======== ========
</TABLE>
See Notes To Consolidated Financial Statements
4
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Basis of Condensed Information
In the opinion of the Company, the accompanying unaudited
condensed financial statements contain all adjustments, consisting
only of normal recurring accruals, necessary to present fairly the
consolidated statement of net assets of the Company and its subsidiaries as
of March 31, 1999, the consolidatd statements of changes in net assets and
changes in stockholders' equity for each of the three months ended March 31,
1999 and 1998. The financial statements have been prepared on the
assumption of the liquidation basis of accounting.
The results of operations for the three months ended March 31,
1999 are not necessarily indicative of the results to be expected for the
full year.
Certain information and note disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. The condensed
financial statements should be read in conjunction with the financial
statements and notes thereto included in the Company's Form 10-KSB
Annual Report for its fiscal year ended December 31, 1998.
Balance sheet at December 31, 1998 contained in this report has been
derived from the Company's auditd consolidated balance sheet included in
such Form 10-KSB.
Note 2 - Earnings per share
Primary income per share is based on the weighted average number
of shares outstanding during each period.
Note 3 - Related parties transactions
In November 1991, the Company loaned $200,000 to an affiliated
Company which are demand notes bearing interest at 10%. An additional
$100,000 was loaned in June 1994 with interest at 8%. Through March 31,
1997, $158,499 has been repaid. At March 31,1997, the notes were sold,
assigned and transferred to Apple Chevrolet, Inc, a corporation owned by
Messrs. S H and J Wallick. In consideration Apple Chevrolet issued a
demand promissory note in the principal sum of $141,501 bearing interest
at 8.75%.
5
Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN
OF OPERATION
RESULTS OF OPERATIONS
The Company had no significant operations for the three months
ended March 31, 1999.
Analysis of Revenue and Expenses is as follows:
<TABLE>
<CAPTION> Three Months Ended March 31,
1999 1998
<S> <C> <C>
Interest and other income $4,930 $3,038
===== =======
Expenses:
Other 925 1,040
------ -------
Total expenses 925 1,040
======= =======
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES
The Company is in a limited liquidity and capital resources
position. Such position is principally due to the defaults appertaining to
(i) two substantial equipment leases which defaults took place in 1990 and
1991; and (ii) the default in the sub-lease of the premises 275 Northern
Boulevard, Great Neck, N.Y.
The lack of new business in fiscal 1998 and 1997 and three months
ended March 31, 1999 and cash flows results in such periods were additional
adverse factors that contributed to the Company's present liquidity and
capital resources position; the substantial improvement of which positions
are presently substantially dependent upon the realization by the Company of
monies owing to it from the defaulting parties concerned as well as upon
the ability of the Company to generate new and profitable business
The Company presently does not have any specific plans in mind
which would materially change favorably either(i) its short term or long
term liquidity (i.e., ability to generate adequate amounts of cash to meet
its needs for cash ) or (ii) its capital resources position (i.e., source of
funds). Furthermore, there are no trends or events known to Management that
will result in, or that are reasonably likely to result in, the Company's
liquidity increasing in any material way in the foreseeable future.
The present limited liquidity and capital resources position of the
Company will necessarily adversely affect: the financial condition of the
Company; its ability to enter into new lease financing and brokerage
arrangements, which line of business has been the Company's principal source
of revenues since 1986; its prospects for the future; and its ability to con
tinue in existence.
While Management believes that the Company will be able to
continue in existence during the twelve month period ending December 31,
1999, there can be no assurance that the Company will be able to generate
sufficient cash to remain in existence thereafter.
6
PART II - OTHER INFORMATION
Item 6 - EXHIBITS AND REPORTS ON FORM 8K
(b) No reports on Form 8K were filed during the quarter for
which this report is filed.
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant has
duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
TECFIN CORPORATION
SANDERS H. WALLICK
by:
Sanders H. Wallick
Sanders H. Wallick
Chairman and Chief Executive Officer
SANDERS H. WALLICK
Sanders H. Wallick
Sanders H. Wallick
Acting Treasurer and Chief Financial
and Accounting Officer
DATED: MAY 15, 1999
7
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3MOS
<FISCAL-YEAR-END> DEC 31, 1999
<PERIOD-END> MAR 31, 1999
<CASH> 10,747
<RECEIVABLES> 169,280
<CURRENT-ASSETS> 180,027
<TOTAL-ASSETS> 180,027
<CURRENT-LIABILITIES> 21,107
<COMMON> 1,000
<OTHER-SE> 157,920
<TOTAL-LIABILITY-AND-EQUITY> 180,027
<SALES> 4,930
<TOTAL-REVENUES> 4,930
<CGS>
<OTHER-EXPENSES> 925
<INCOME-PRETAX> 4,005
<INCOME-TAX> 0
<INCOME-CONTINUING> 4,005
<NET-INCOME> 4,005
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
