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FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 2000
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 0-10893
ABF ENERGY CORP.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 13-3007167
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State or other jurisdiction of I.R.S. Employer
incorporation or organization Identification No.
2 Winthrop Lane, Scarsdale, New York 10583
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(Address of Principal Executive Office) (Zip Code)
914-725-5474
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(Registrant's telephone number including area code)
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 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
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The number of shares of registrant's Common Stock, $.00005 par value,
outstanding as of May 8, 2000 was 132,729,800 shares.
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ABF ENERGY CORP. AND SUBSIDIARY
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INDEX
Page
Number
PART I - FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Balance Sheet - March 31, 2000 ..................... 1
Consolidated Statement of Operations - For the Three Months Ended
March 31, 2000 .................................................. 2
Consolidated Statement of Cash Flows - For the Three Months Ended
March 31, 2000 .................................................. 3
Notes to Financial Statements ................................... 4
Item 2. Management's Discussion and Analysis ............................ 5
PART II - OTHER INFORMATION ................................................ 6
SIGNATURES ................................................................. 7
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PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
ABF ENERGY CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(Unaudited)
March 31,
2000
-----------
ASSETS
CURRENT ASSETS:
Cash ....................................................... $ 4,830
Marketable securities ...................................... 80,710
Loan receivable ............................................ 13,250
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TOTAL CURRENT ASSETS ................................... 98,790
EQUIPMENT ....................................................... 22,680
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$ 121,470
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses ...................... $ 10,273
Current portion of loan payable ............................ 5,086
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TOTAL CURRENT LIABILITIES .............................. 15,359
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LOAN PAYABLE .................................................... 19,680
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STOCKHOLDERS' EQUITY
Common stock, $.00005 par value,
authorized 200,000,000 shares: 152,209,800 issued .......... 7,609
Paid-in capital ............................................ 1,770,693
Treasury stock; at cost, 19,480,000 shares ................. (974)
Accumulated deficit ........................................ (1,690,897)
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TOTAL STOCKHOLDERS' EQUITY .... 86,431
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$ 121,470
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See notes to financial statements.
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ABF ENERGY CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
-----------------------------------
2000 1999
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REVENUES:
Royalties ...................... $ 3,144 $ 86,641
EXPENSES:
General and administrative ..... 20,441 38,560
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INCOME BEFORE OTHER INCOME (EXPENSES) (17,297) 48,081
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OTHER INCOME (EXPENSES):
Dividend income ................ 660 --
Interest expense ............... (314) --
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346 --
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NET EARNINGS (LOSS) ................. $ (16,951) $ 48,081
============= =============
NET EARNINGS (LOSS) PER SHARE ....... $ -- $ --
============= =============
WEIGHTED AVERAGE SHARES OUTSTANDING . 132,729,800 132,729,800
============= =============
See notes to financial statements.
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ABF ENERGY CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
------------------------------
2000 1999
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) ...................... $ (16,951) $ 48,081
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation .................. 2,346 --
Changes in assets:
Decrease in loan receivable .......... (1,000) --
Decrease in accounts payable ......... 101 (245)
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CASH PROVIDED BY (USED IN) OPERATIONS ......... (15,504) 47,836
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in marketable securities ........ 14,340 --
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14,340 --
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CASH FLOWS FROM FINANCIAL ACTIVITIES:
Payment of loan payable .................. (1,248) --
--------- ---------
(1,248) --
--------- ---------
NET DECREASE IN CASH .......................... (2,412) 47,836
CASH - BEGINNING OF PERIOD .................... 7,242 55,395
--------- ---------
CASH - END OF PERIOD .......................... $ 4,830 $ 103,231
========= =========
See notes to financial statements.
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ABF ENERGY CORP. AND SUBSIDIARY
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NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
of ABF Energy Corp. (the "Company") have been prepared in accordance
with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments considered necessary for a fair presentation (consisting of
normal recurring accruals) have been included. The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Operating results for the three month period ended March 31, 2000 are
not necessarily indicative of the results that may be expected for the
year ending December 31, 2000. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-KSB for the year ended December 31,
1999.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
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AND RESULTS OF OPERATIONS
-------------------------
Results of Operations
The Company's operations during the three months ended March 31, 2000 consisted
solely of collecting minimum royalty payments due to the Company. Royalty income
for the three months ended March 31, 2000 were $3,144 compared to $86,641 for
the three months ended March 31, 1999. General and operating expenses of the
Company totaled $20,441 for the three months ended March 31, 2000 and $38,560
for the three months ended March 31, 1999. As a result, the Company reported a
loss from operations of $17,297 for the three months ended March 31, 2000
compared to income from operations of $48,081 for the comparable 1999 period.
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 March 31, 2000, had $121,470 in assets. Liabilities consisting
of certain accrued expenses totaled $35,039.
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.
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PART II - Other Information
Item 6. Exhibit and Reports on form 8-K
A. Exhibits
None.
B. Report on Form 8-K
None.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
ABF ENERGY CORP. AND SUBSIDIARY
By: /s/ Adolph Weissman Dated: 05/10/00
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Adolph Weissman
Chairman of the Board and President
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<PAGE>
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