FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
Of the Securities Exchange Act of 1934
For Quarter Ended June 30, 1999
Commission File Number 0-14047
CARDINAL INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
MASSACHUSETTS 04-2392188
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6975 SOUTH UNION PARK DRIVE #600
SALT LAKE CITY, UTAH 84047
(Address of principal executive offices)
Registrant's telephone number
including area code (801) 256-9600
489 Sullivan Avenue, South Windsor CT 06074
Former Address, if changed since last report
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 such shorter period that the
registrant was required to file such reports)
Yes X No
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
5,798,697
(Number of shares of common
stock the registrant had
outstanding as of September 20, 1999)
PART 1
ITEM 1 - FINANCIAL STATEMENTS
The condensed financial statements included herein have been prepared by
the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that the
disclosures are adequate to make the information presented not misleading.
In the opinion of the Company, all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position of
the Company as of June 30, 1999 and the results of its operations and changes
in its financial position from March 31, 1999 through June 30, 1999 have been
made. The results of its operations for such interim period is not
necessarily indicative of the results to be expected for the entire year.
Cardinal Industries, Inc.
Balance Sheet
ASSETS
June 30, December 31,
1999 1998
(unaudited)
CURRENT ASSETS
Notes receivable-related party $ 150,000 $ 150,000
Interest receivable 3,750 -
TOTAL ASSETS $ 153,750 $ 150,000
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 300 $ 300
Notes Payable 39,000 39,000
Interest Payable 3,905 2,925
Total Current Liabilities 43,205 42,225
STOCKHOLDERS' EQUITY
Common Stock 10,000,000 shares
authorized at $.05 par value;
5,798,697 shares issued and outstanding 289,935 289,935
Capital in Excess of Par Value 791,165 791,165
Accumulated Deficit During Development Stage (970,555) (973,325)
Total Stockholders' Equity 110,545 107,775
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 153,750 150,000
Cardinal Industries, Inc.
Statements of Operations
(unaudited)
For the Three For the Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
REVENUE $ 1,875 $ - $ 3,750 $ -
EXPENSES
Interest 490 490 980 980
Dues and Fees - - - -
Total Expenses 490 490 980 980
NET INCOME
(LOSS) -
Before Taxes 1,385 $ (490) 2,770 $ (980)
Taxes - - - -
INCOME (LOSS) 1,385 (490) 2,770 $ (980)
Loss Per Common
Share - - - -
Average
Outstanding
Shares 5,798,697 2,798,697 5,798,697 2,798,697
Cardinal Industries, Inc.
Statements of Cash Flows
(unaudited)
For the Six For the Six
Months Ended Months Ended
June 30, June 30,
1999 1998
CASH FLOWS FROM
OPERATING ACTIVITIES
Net Income (Loss) $ 2,770 $ (980)
Increase (Decrease)
in Accounts Payable/Interest
Payable 980 (980)
Interest receivable (3,750) -
- -
CASH FLOWS FROM
INVESTING ACTIVITIES - -
- -
CASH FLOWS FROM
FINANCING ACTIVITIES - -
- -
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS - -
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF PERIOD - -
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ - $ -
CASH PAID DURING THE PERIOD FOR:
Interest $ - $ -
Income Taxes (Including
Interest & Penalties) $ - -
Cardinal Industries, Inc.
Notes to the Financial Statements
June 30, 1999
NOTE 1 - INTERIM FINANCIAL STATEMENTS
Management has elected to omit all of the disclosures for the interim
financial statements ended June 30, 1999 but has made all the necessary
adjustments to present an accurate financial statements for the six months
presented.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources. The Registrant had approximately $110,545
as operating capital at June 30, 1999, compared to $(40,955) for the same
period last year. The Registrant intends to raise additional funds as needed
through private placements with accredited and sophisticated investors.
Results of Operation. Due to the lack of operations during the quarter
ended June 30, 1999, the registrant had net income of $1,385, compared to net
loss of $(490) for the same period last year. The registrant had net income
of $2,770 for the six months ended June 30, 1999, compared to $(980) for the
same period last year.
Plan of Operations. The Company is currently in the process of looking
for business opportunities to acquire or merge with. There is no guarantee
that management will be successful in finding such an opportunity. The
Company is also in the process of bringing all of its periodic reports current
for filing with the Securities and Exchange Commission. During this process,
the Company intends to raise operational capital through private placements.
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
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 authorized officer.
Dated September 20, 1999
Cardinal Industries, Inc.
/s/ Robert Kropf
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