SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [Fee Required]
For the Fiscal Year Ended December 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [No Fee Required]
For the transition period from _________ to _________ .
Commission File Number 0-10893
ABF ENERGY CORP.
----------------
(Name of small business issuer in its charter)
Delaware 13-3007167
------------------------------- --------------------------
(State or other jurisdiction of (IRS Employer I.D. Number)
incorporation or organization)
120 Charlotte Place, Englewood Cliffs, NJ 07632
---------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Issuer's Telephone Number (201) 568-1554
Securities registered under Section 12(b) of the Exchange Act:
Title of each class Name of each exchange on which registered
None None
- --------------------------------- -----------------------------------------
Securities registered under Section 12(g) of the Exchange Act:
Common Stock, $.00005 par value
---------------------------------
(Title of class)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ X ]
Issuer's revenues for its most recent fiscal year. $13,500 .
-----------
As of March 18, 1997, 132,695,000 shares of the issuer's common stock was
outstanding.
As of such date, the aggregate market value of the common stock held by
non-affiliates was approximately -0-.
DOCUMENTS INCORPORATED BY REFERENCE
No documents have been incorporated by reference.
<PAGE>
PART I
Item 1. Business
ABF Energy Corp. (The "Company") was incorporated under the laws of the
State of Delaware on June 29, 1981 to engage in oil and gas exploration,
acquisition and development of oil and gas properties and the sale of oil and
gas, if any, produced by these efforts. The Company is the successor to a New
York corporation bearing the identical name organized on December 3, 1979 and
merged into the Company on July 1, 1981. A wholly owned subsidiary, ABF Capital
Corp., ("Capital") was incorporated under the laws of the State of Delaware on
October 26, 1982 for the purpose of acquiring interests and leases, and acting
as a drilling contractor. In addition, Capital owns 80% of the shares of Dry
Transfer Decor Inc., a Delaware corporation which, in turn, is the successor to
a New Jersey corporation having the same name which had been organized in 1978.
During 1985, Dry Transfer issued a license for $75,000 and the assumption of
certain liabilities by a third party. In addition, it is to receive a royalty on
sales under the license agreement.
The Company has discontinued active operations of its 80% owned
subsidiary, Dry Transfer Decor, Inc. and does not expect to resume operations
thereof, but has licensed a third party to sell the product under a royalty
agreement. The licensee went out of business and no royalties have been
received.
Since 1986, the Company's oil and gas business has generally been
inactive.
Currently, management is attempting to locate a suitable acquisition or
merger candidate to enhance shareholder value.
Item 2. Properties
The Company utilizes office space at 120 Charlotte Place, Englewood
Cliffs, New Jersey leased by another company which allows the registrant use of
the facility at no cost as part of their agreement.
Item 3. Legal Proceedings
None.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of the Company's shareholders
through the solicitation of proxies, or otherwise, during the year ended
December 31, 1996.
<PAGE>
PART II
Item 5. Market for Common Equity and Related Stockholder Matters
No established trading market in the Company's common stock existed
during the two years ended December 31, 1996.
The Company has never declared or paid any cash dividend on its Common
Stock and does not expect to declare or pay any such dividend in the foreseeable
future.
Item 6. Management's Discussion and Analysis
Results of Operations
The Company's operations during 1996 and 1995 consisted solely of
collecting minimum royalty payments due to the Company. Royalty income for 1996
and 1995 was $13,500 and $38,813, respectively. General operating expenses of
the Company totaled $36,464 in 1996 as compare to $38,891 in 1995. As a result,
the Company reported losses from operations of $22,964 and $78 in 1996 and 1995,
respectively.
The Company does not anticipate realizing any significant revenues or
conducting any material operations unless and until the Company consummates an
acquisition or merger with an operating business at which time the Company's
operating results are expected to reflect those of the business acquired or
merged with. Until such time, the Company expects to incur certain ongoing
expenses in connection with its search for a suitable merger or acquisition
candidate.
Liquidity and Capital Resources
The Company at December 31, 1996 had $1,317 in assets and liabilities
consisting of certain accrued expenses and loans payable totaling $22,789.
Impact of Inflation
Inflation has not been a major factor in the Company's business since
inception. There can be no assurances that this will continue if and when the
Company completes an acquisition or merger.
Item 7. Financial Statements
Index to Consolidated Financial Statements
Page
------
Independent Auditors' Report F-2
Consolidated Balance Sheets F-3
Consolidated Statements of Operations F-4
Consolidated Statement of Changes in Stockholders' Equity F-5
Consolidated Statements of Cash Flows F-6
Notes to Consolidated Financial Statements F-7-8
<PAGE>
Item 8. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
On January 7, 1997, the Company retained Feldman Radin & Co., P.C. as its
independent auditors.
PART III
Item 9. Directors, Executive Officers, Promoters and Control Persons,
Compliance With Section 16(a) of the Exchange Act
The Directors, officers and key executives of the Company are set forth
in the following table. The terms of Directors are for one year or until their
successors are elected and qualify.
Served as
Name and Address Age Director Since Position
- ------------------ ---- --------------- -------------------------------
Adolph Weissman (1) 68 1979 Chairman of Board and President
Fred J. Miller (1) 54 1979 Secretary and Director
(1) Parents and Founders of the Company as that term is defined under the
Securities Act of 1933, as amended.
Item 10. Executive Compensation
The Company has paid no compensation to its current President during
the preceding three years.
Item 11. Security Ownership of Certain Beneficial Owners and Management
The following table sets forth, as of March 18, 1997 the number of
shares of the Company's Common Stock beneficially owned, or as to which there
was a right to acquire beneficial ownership within 60 days, by each beneficial
owner known to own more than five percent of the Company's Common Stock, by each
director, each executive officer and all directors, nominees for director and
all executive officers, directors and nominees for director as a group.
<TABLE>
<S> <C> <C> <C>
Name and Address of Amount and Nature Title of Percent
Beneficial Owner of Beneficial Ownership(1) Class of Class
- ------------------- --------------------------- -------- --------
Adolph Weissman 28,841,340 Common 18.9%
Fred J. Miller 25,700,000 Common 16.8%
Officers and Directors
as a group (2 persons) 54,541,340 Common 35.7%
</TABLE>
(1) Unless noted otherwise, all shares indicated as beneficially owned are held
of record by, and the right to vote and transfer such shares lies with the
person indicated.
<PAGE>
Item 12. Certain Relationships and Related Transactions
During 1996, Adolph Weissman loaned the Company $14,974. Such loan is
non-interest bearing and is repayable on demand.
Item 13. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
<PAGE>
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
ABF ENERGY CORP.
By: /S/ ADOLPH WEISSMAN Dated: 4/15/97
------------------------------------ ----------------------
Adolph Weissman
Chairman of the Board and President
By: /S/ FRED J. MILLER Dated: 4/15/97
------------------------------------ ----------------------
Fred J. Miller
Director and Secretary
In accordance with the Exchange Act, this report has been signed below
by the following persons on behalf of the registrant and in the capacities and
on the dates indicated.
By: /S/ ADOLPH WEISSMAN
----------------------------------------------------
Adolph Weissman, Chairman of the Board and President
Date: 4/15/97
------------------
By: /S/ FRED J. MILLER
------------------------------------------------
Fred J. Miller, Secretary and Treasurer
Date: 4/15/97
------------------
<PAGE>
ABF ENERGY CORP. AND SUBSIDIARY
INDEX TO FINANCIAL STATEMENTS
Page
Auditors report on financial statements F - 2
Balance sheet as of December 31, 1996 F - 3
Statements of operations for the years ended December 31,
1996 and 1995 F - 4
Statements of changes in stockholders' equity for the years
ended December 31, 1996 and 1995 F - 5
Statements of cash flows for the years ended December 31,
1996 and 1995 F - 6
Notes to financial statements F - 7
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
of ABF Energy Corp. and Subsidiary
Englewood Cliffs, NJ
We have audited the accompanying balance sheet of ABF Energy Corp. and
Subsidiary as of December 31, 1996 and the related statements of operations,
stockholders' equity and cash flows for each of the years ended December 31,
1996 and 1995. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, the financial position of ABF Energy Corp. and Subsidiary as of December
31, 1996 and the results of its operations and its cash flows for the years
ended December 31, 1996 and 1995 in conformity with generally accepted
accounting principles.
By / S / FELDMAN RADIN & CO., P.C.
-----------------------------------
Feldman Radin & Co., P.C.
Certified Public Accountants
New York, New York
January 28, 1997
F - 2
<PAGE>
ABF ENERGY CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1996
<TABLE>
<CAPTION>
ASSETS
<S> <C>
CURRENT ASSETS:
Cash $ 1,317
-----------------
TOTAL CURRENT ASSETS $ 1,317
=================
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 315
Loans payable 22,474
-----------------
TOTAL CURRENT LIABILITIES 22,789
STOCKHOLDERS' DEFICIT:
Common stock, $.00005 par value,
authorized 200,000,000 shares: 152,175,000 issued 7,609
Paid-in capital 1,770,693
Accumulated deficit (1,798,800)
Treasury stock, at cost, 19,480,000 shares (974)
-----------------
TOTAL STOCKHOLDERS' DEFICIT (21,472)
-----------------
$ 1,317
=================
</TABLE>
See notes to financial statements
F - 3
<PAGE>
ABF ENERGY CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
For the Years Ended
December 31,
----------------------------------------
1996 1995
----------------- -----------------
<S> <C> <C>
REVENUES:
Royalties $ 13,500 $ 38,813
EXPENSES:
General and administrative 36,464 38,891
----------------- -----------------
NET LOSS $ (22,964) $ (78)
================= =================
NET LOSS PER SHARE $ (0.00) $ (0.00)
================= =================
WEIGHTED AVERAGE SHARES OUTSTANDING 132,695,000 132,695,000
================= =================
</TABLE>
See notes to financial statements
F - 4
<PAGE>
ABF ENERGY CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Common Stock
------------------------- Paid-In Accumulated Treasury Stock Stockholders'
Shares Amount Capital Deficit Shares Cost Equity
------------ ----------- ------------- ------------- ------------ ----------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE - December 31, 1994 152,175,000 $ 7,609 $ 1,770,693 $ (1,775,758) 19,480,000 $ (974) $ 1,570
Net loss (78) (78)
------------ ----------- ------------- ------------- ------------ ----------- -------------
BALANCE - December 31, 1995 152,175,000 7,609 1,770,693 (1,775,836) 19,480,000 (974) 1,492
Net loss (22,964) (22,964)
------------ ----------- ------------- ------------- ------------ ----------- -------------
BALANCE - December 31, 1996 152,175,000 $ 7,609 $ 1,770,693 $ (1,798,800) 19,480,000 $ (974) $ (21,472)
============ =========== ============= ============= ============ =========== =============
</TABLE>
See notes to financial statements.
F - 5
<PAGE>
ABF ENERGY CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
For the Years Ended
December 31,
----------------------------------------
1996 1995
----------------- -----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net profit/(loss) $ (22,964) $ (78)
Changes in assets:
Increase (decrease) in accounts payable 315 -
----------------- -----------------
NET CASH PROVIDED FROM OPERATING ACTIVITIES (22,649) (78)
----------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in loans payable 22,474 -
----------------- -----------------
NET INCREASE (DECREASE) IN CASH (175) (78)
CASH AT BEGINNING OF YEAR 1,492 1,570
----------------- -----------------
CASH AT END OF YEAR $ 1,317 $ 1,492
================= =================
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during the year for:
Interest $ - $ -
================= =================
Taxes $ 3,175 $ -
================= =================
</TABLE>
See notes to financial statements.
F - 6
<PAGE>
ABF ENERGY CORP. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company was formed for the purpose of engaging in oil and gas exploration,
the acquisition and development of oil and gas properties, and the sale of oil
and gas produced by these efforts. The Company has also organized, sold and
operated and acted as a General Partner in oil and gas limited partnerships. The
Company discontinued all of its operations during 1985.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Net loss per share - Net loss per share is computed based upon the
average of shares outstanding during the respective periods.
(b) Principles of Consolidation - The financial statements include the
accounts of the Company and its wholly-owned subsidiary, ABF Capital
Corp.("Capital"). All significant intercompany transactions have been
eliminated.
2. INCOME TAXES
The Company accounts for income taxes under Statement of Financial
Accounting Standards No. 109, Accounting for Income Taxes ("SFAS No.
109"). SFAS No. 109 requires the recognition of deferred tax assets and
liabilities for both the expected impact of differences between the
financial statements and tax basis of assets and liabilities, and for
the expected future tax benefit to be derived from tax loss and tax
credit carryforwards. SFAS No. 109 additionally requires the
establishment of a valuation allowance to reflect the likelihood of
realization of deferred tax assets. At December 31, 1996, the Company
had net deferred tax assets of $630,000. The Company has recorded a
valuation allowance for the full amount of the net deferred tax assets.
The following table illustrates the source and status of the Company's
major deferred tax assets and (liabilities):
Net operating loss carryforward $ 630,000
Valuation allowance (630,000)
Net deferred tax asset recorded $ -
F - 7
<PAGE>
The Company has net operating loss carryforwards for tax purposes
totaling $1,800,000 at December 31, 1996 expiring in the year 2002.
Substantially all of the carryforwards are subject to limitations on
annual utilization because there are "equity structure shifts" or
"owner shifts" involving 5% stockholders (as these terms are defined in
Section 382 of the Internal Revenue Code), which have resulted in a
more than 50% change in ownership.
3. LOANS PAYABLE
Loans payable consist of $14,974 due to stockholder and $7,500 due to
an unrelated party, both of which are non-interest bearing advances and
are payable on demand.
4. ROYALTY INCOME
In 1982 Capital entered into sub-lease and drilling agreements with two
Limited Partnerships. Under the sub-lease agreements the Company was
entitled to minimum annual royalty payments. The collections of
approximately $6,000,000 of the minimum royalties were due in 1994 and
were backed by liability assumption agreements signed by the Limited
Partners. Revenues from minimum annual royalty agreements are recorded
upon receipt. As of December 31, 1996, $143,502 of royalties have been
collected.
F - 8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> Year
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<CASH> 1,317
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,317
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,317
<CURRENT-LIABILITIES> 22,789
<BONDS> 0
0
0
<COMMON> 7,609
<OTHER-SE> (29,081)
<TOTAL-LIABILITY-AND-EQUITY> 1,317
<SALES> 13,500
<TOTAL-REVENUES> 13,500
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 36,464
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (22,964)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (22,964)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
