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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
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: 001-01337
CIMARRON-GRANDVIEW GROUP, INC.
(Exact name of registrant as specified in its charter)
State of Washington 91-0239195
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
601 West Main Avenue, Suite 714
Spokane, Washington 99201-0677
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code) 509-455-9077
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 at least the past
90 days. Yes (X) No ( )
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date 16,863,076
Transitional Small Business Disclosure Format (check one): Yes ( ) No (X)
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CIMARRON-GRANDVIEW GROUP, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
PART I. - FINANCIAL INFORMATION
Item 1 Financial Information
CIMARRON-GRANDVIEW GROUP, INC.
BALANCE SHEET
SEPTEMBER 30, 1998 (UNAUDITED)
<TABLE>
ASSETS
CURRENT ASSETS:
<S> <C>
Cash and cash equivalents:
Cash in bank $ 13,999
Certificate of deposit 127,695
Temporary cash investments 4,108
-------------
Total current assets 145,802
SECURITIES 10,755
MINING PROPERTIES 3,911
-------------
$ 160,468
=============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 767
STOCKHOLDERS' EQUITY:
Common stock--50,000,000 shares,
no par value, authorized;
16,862,792 shares issued and outstanding $ 693,949
Note receivable, stock purchase (6,000)
Accumulated other comprehensive income:
Unrealized loss, marketable securities (26,756)
Retained earnings (deficit) (501,492)
-------------
Total stockholders' equity 159,701
-------------
$ 160,468
=============
</TABLE>
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CIMARRON-GRANDVIEW GROUP, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
CIMARRON-GRANDVIEW GROUP, INC.
STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
Nine Months Ended Year to date ended
September 30, September 30,
-------------------------- --------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCOME:
Dividend and interest income $ 1,957 $ 180 $ 3,153 $ 525
------------ ------------ ------------ ------------
EXPENSES:
Directors' fees - - 150 -
Professional fees 151 20 6,438 9,053
Office expense 412 334 1,285 1,216
Taxes, licenses, and fees 50 55 1,303 925
------------ ------------ ------------ ------------
613 409 9,176 11,194
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE OTHER
INCOME 1,344 (229) (6,023) (10,669)
OTHER INCOME:
Gain on sale of investment - - 24,487 68
------------ ------------ ------------ ------------
NET INCOME (LOSS) $ 1,344 $ (229) $ 18,464 $ (10,601)
============ ============ ============ ============
BASIC INCOME PER SHARE $ NIL $ NIL $ NIL $ NIL
============ ============ ============ ============
</TABLE>
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CIMARRON-GRANDVIEW GROUP, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
CIMARRON-GRANDVIEW GROUP, INC.
STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
Nine Months Ended
September 30,
---------------------------------
1999 1998
---------------- --------------
<S> <C> <C>
INCREASE (DECREASE) IN CASH
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 18,464 $ (10,601)
Adjustments to reconcile net income
(loss) to net cash used in operations:
Gain on sale of securities - (68)
Gain on sale of mining properties (24,487) -
Decrease in:
Accounts payable (1,500) -
---------------- --------------
Net cash used in operating activities (7,523) (10,669)
---------------- --------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of securities 24,487 13,718
---------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of stock for services 150 -
Proceeds from sale of common stock 100,000 -
---------------- --------------
Net cash provided by financing activities 100,150 -
---------------- --------------
NET INCREASE IN CASH 117,114 3,049
CASH, BEGINNING OF PERIOD 28,688 8,297
---------------- --------------
CASH, END OF PERIOD $ 145,802 $ 11,346
================ ==============
</TABLE>
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CIMARRON-GRANDVIEW GROUP, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
CIMARRON-GRANDVIEW GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION:
The financial statements included herein have been prepared by
Cimarron-Grandview Group, Inc. (the Company), without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission (the SEC).
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted pursuant to such SEC rules and regulations. In the opinion of
management of the Company, the foregoing statements contain all adjustments
necessary to present fairly the financial position of the Company as of
September 30, 1999, and its results of operations for the three month period
ended September 30, 1999 and 1998, and its cash flows for the three month period
ended September 30, 1999 and 1998. The interim results reflected in the
foregoing financial statements are not considered indicative of the results
expected for the full fiscal year.
NOTE 2 - RECENT DEVELOPMENTS:
In January 1999, the Company sold approximately 34 acres of surface and mineral
rights located in northern Stevens County for $25,000 cash.
In February 1999, 400,000 shares of Company stock was issued and exercised by
Company directors. The exercised price is $.005 per share, payable by a
one-year nonrecourse promissory note bearing interest at 8 percent per annum.
Also, the Company issued restricted stock grants (50,000) each to three
directors for services.
In March 1999, the Company sold 8,431,538 shares of its common stock for
$100,000.
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CIMARRON-GRANDVIEW GROUP, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Registrant has no revenues from operations. It's only income has been
derived from interest.
The Registrant's plan of operation for the next twelve months will consist of
attempting to acquire an interest in a business opportunity. Due to the
Registrant's limited assets and its inability to raise additional financing due
to the lack of a market for its Common Stock, it is anticipated that any such
acquisition would be a "reverse take-over" accomplished through a merger or
share exchange. In such event, the Registrant's existing shareholders would
likely become minority shareholders in the surviving entity. The Registrant is
not currently evaluating any specific acquisition opportunities.
The Company does not currently have any employees and anticipates utilizing the
services of consultants to accomplish its plan of operation. The Company
currently has sufficient resources to meet its financial obligations for the
next twelve months.
PART II OTHER INFORMATION
ITEM 5. OTHER INFORMATION
Year 2000 Issues
Throughout the information technology industry, the use of two-digit fields was
common practice in the design of hardware, systems software, proprietary
applications and system interfaces. The Year 2000 problem is pervasive and
complex. The issue is whether computer systems will properly recognize date
sensitive information when the year changes to 2000. Systems that do not
properly recognize such information could generate erroneous data or cause a
system to fail.
The Company recognizes the need to ensure its operations will not be adversely
impacted by Year 2000 software failures and has assessed Year 2000 risks. This
assessment includes the identification of necessary changes to computer hardware
and software applications that will attempt to ensure availability and integrity
of the Company's information systems and the reliability of its financial and
operational systems.
The Company has reviewed its financial, information and operational systems in
order to identify those products, services or systems that are not Year 2000
compliant. As a result of this review, the Company has modified or replaced
certain information and operational systems so they will be Year 2000 compliant.
These modifications and replacements are being, and will continue to be, made in
conjunction with the Company's overall systems initiatives. The total cost of
these Year 2000 compliance activities is not anticipated to be material to the
Company's financial position or its results of operations.
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CIMARRON-GRANDVIEW GROUP, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1999
Based on available information, the Company does not believe any material
exposure to significant business interruption exists as a result of Year 2000
compliance issues. These costs and the timing in which the Company plans to
complete its Year 2000 modifications are based on management's best estimates.
However, there can be no assurance that the Company will timely identify and
remediate all significant Year 2000 problems, that remedial efforts will not
involve significant time and expense, or that such problems will not have a
material adverse effect on the Company's business, results of operations or
financial position.
The Company also faces risk to the extent that its borrowers, vendors, service
providers and others with whom the Company transacts business may not comply
with Year 2000 requirements. The Company has not, to date, made any assessment
of the Year 2000 risks associated with these third party associations to
determine the extent to which the Company is vulnerable to these third parties
failure to remediate their own Year 2000 issues. In the event any such third
parties are not Year 2000 compliant, the Company's results of operations could
be materially adversely affected.
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.
Cimarron-Grandview Group, Inc.
By: /s/ Gregory B. Lipsker Date: November 10, 1999
Gregory B. Lipsker, President
By: /s/ Eunice R. Campbell Date: November 10, 1999
Eunice R. Campbell, Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the Balance
Sheets for CIMARRON-GRANDVIEW GROUP, INC. at September 30,1999, the Statements
of Income for the year ended September 30, 1999, and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 145,802
<SECURITIES> 10,755
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 156,557
<PP&E> 3,911
<DEPRECIATION> 0
<TOTAL-ASSETS> 160,468
<CURRENT-LIABILITIES> 767
<BONDS> 0
0
0
<COMMON> 693,949
<OTHER-SE> (533,481)
<TOTAL-LIABILITY-AND-EQUITY> 160,468
<SALES> 0
<TOTAL-REVENUES> 27,640
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 9,176
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 18,464
<INCOME-TAX> 0
<INCOME-CONTINUING> 18,464
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18,646
<EPS-BASIC> 0.00
<EPS-DILUTED> 0.00
</TABLE>
