SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Annual Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the Quarter Ended Commission File No.
April 30, 1999 0-5304
CUSTOMER SPORTS, INC.
------------------------
(Exact name of registrant as specified in its charter)
UTAH 87-0282745
- ------------------------------- --------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1023 Reliance Way Del Mar, California 92014
---------------------------------------------
(Address of Principal Executive Offices)
Registrant's telephone number including area code:(619) 481-2400
Former name, former address, and former fiscal
year end, if changed since last report.
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 in the past 90 days:
Yes X No
-------- --------
Indicate the number of shares outstanding for each of the issuer's
classes of Common Stock as of the last practical date:
Common Stock, Par Value $.01 Per Share, 19,866,253 Shares Outstanding at
April 30, 1999.
CUSTOMER SPORTS, INC.
TABLE OF CONTENTS
PART I FINANCIAL STATEMENTS
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Balance Sheets. . . . . . . . . . . . . . . . . . . . . . .3
Statement of Operations . . . . . . . . . . . . . . . . . .4
Statement of Cash Flows . . . . . . . . . . . . . . . . . .5
Note to Financial Statements. . . . . . . . . . . . . . . .6
ITEM 2 MANAGEMENT DISCUSSION AND FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
PART II OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . .7
SIGNATURES . . . . . . . . . . . . . . . . . . . . .8
Customer Sports, Inc.
Balance Sheet
April 30, 1999 Unaudited and July 31, 1998
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
ASSETS
Current Assets
- --------------
Cash $ 16,208 $ 20,927
Receivables 2,732 2,732
Inventory -0- 7,218
----------- -----------
Total Current Assets 18,940 30,877
Other Assets
- ------------
License -0- 10,000
Refundable Deposit 3,000 3,000
Equipment - Net 1,335 3,150
Oil & Gas Properties
(Successful Efforts Method) 732,901 732,901
Less Accumulated Depreciation ( 722,994) ( 719,102)
----------- -----------
Total Other Assets 14,242 29,949
----------- -----------
TOTAL ASSETS $ 33,182 $ 60,826
=========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY
----------------------------------
Current Liabilities
- -------------------
Accounts Payable & Accrued Expenses $ 133,509 $ 117,920
Notes Payable 237,513 237,513
----------- -----------
Total Current Liabilities 371,022 355,433
Long Term Liabilities
- ---------------------
Notes Payable 163,377 157,377
Stockholders' Equity
- --------------------
Capital Stock, 50,000,000 Shares at $0.01
Par Value; 19,866,253 & 20,866,253
Shares Issued & Outstanding Restated 198,660 208,660
Paid In Capital 6,750,383 6,750,383
Deficit in Retained Earnings (7,450,260) ( 7,411,027)
----------- -----------
Total Stockholders' Equity ( 501,217) 451,984)
----------- -----------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 33,182 $ 60,826
=========== ===========
</TABLE>
See Accompanying Notes
3
Customer Sports, Inc.
Statements of Operations (Unaudited)
For the Three Months Period Ended April 30, 1999 & 1998
& the Nine Months Ended April 30, 1999 & 1998
<TABLE>
<CAPTION>
For the Three For the Nine
Months Ended Months Ended
April April April April
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues
- --------
Golf Sales & Fees $ 53,281 $ 3,798 $ 152,681 $ 28,115
---------- ---------- ---------- ----------
Total Revenues 53,281 3,798 152,681 28,115
Cost of Expenses
- ----------------
Cost of Golf Sales 7,218 22,049 11,000 24,514
---------- ---------- ---------- ----------
Gross Profit 46,063 ( 18,251) 141,681 3,601
Operating Expenses
- ------------------
General & Administrative Expenses 52,487 93,157 193,587 186,771
Depreciation & Amortization 796 4,576 5,707 17,652
---------- ---------- ---------- ----------
Total Cost & Expenses 53,283 97,733 199,294 204,423
Profit or (Loss) from Operations ( 7,220) ( 115,984) ( 57,613) ( 200,822)
---------- ---------- ---------- ----------
Other Income (Expenses)
- -----------------------
Oil & Gas Revenues 329 7,090 8,070 28,281
Rental Income 10,000 -0- 10,000 -0-
Lease Operating Expenses
Delayed Rentals, Royalties,
& Taxes - Oil Well ( 975) ( 1,302) 309 ( 10,488)
Oil Well Improvement -0- ( 25,000) -0- ( 75,000)
Gain on Sale of Asset -0- -0- -0- 2,550
---------- ---------- ---------- ----------
Total Other Income (Loss) 9,354 ( 19,212) 18,379 ( 54,657)
---------- ---------- ---------- ----------
Net Income Loss $ 2,134 ($135,196) ($ 39,234) ($255,479)
========== ========== ========== ==========
Net Loss Per Share of
Common Stock $ 0.00 ($ .01) ( 0.00) ($ .02)
Weighted Average Number
Of Shares Outstanding
During Period 19,866,253 16,250,956 19,866,253 16,250,956
</TABLE>
See Accompanying Notes
4
Customer Sports, Inc.
Statement of Cash Flows Unaudited
April 30, 1999 & 1998
<TABLE>
<CAPTION>
1999 1998
---------- ----------
<S> <C> <C>
Cash Flows from Operating Expenses
- ----------------------------------
Net (Loss) from Operations ($ 39,234) ($255,479)
Adjustments to Reconcile Net Loss to
Net Cash Provided by Operating Activities
Rounding 1 -0-
Write Off Oil Wells -0- 75,000
Depreciation 5,707 17,652
Non Cash Expenses -0- 53,894
Changes in Operating Assets & Liabilities
(Increase) Decrease in Inventory 7,218 -0-
Increase (Decrease) in Accounts Payable 15,589 52,911
---------- ----------
Net Cash Provided (Used) by
Operating Expenses ( 10,719) ( 56,022)
Cash Flows from Investing Activities -0- -0-
- ------------------------------------ ---------- ----------
Net Cash Provided (Used) by
Investing Activities -0- -0-
Cash Flows from Financing Activities
- ------------------------------------
Sale of Common Shares -0- 6,375
Payment on Notes Payable -0- ( 12,000)
Increase in Notes Payable 6,000 76,500
Contributed Capital -0- 500
---------- ----------
Net Cash Provided (Used) by
Financing Activities 6,000 71,375
---------- ----------
Increase (Decrease) in Cash 4,719 15,353
Cash at Beginning of Period 20,927 234
---------- ----------
Cash at End of Period $ 16,208 $ 15,587
========== ==========
</TABLE>
See Accompanying Notes
5
Customer Sports, Inc.
ITEM 1.
Summarized Financial Information (Continued)
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
APRIL 30, 1999
NOTE #1 - BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10Q and Rule
10-01 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,
adjustments (consisting or normal recurring accruals) considered necessary
for a fair presentation have been included. Operating results for the three
and nine months periods ending April 30, 1999 are not necessarily indicative
of the results that may be expected for the year ended July 31, 1999. For
further information, refer to the financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the year ended July
31, 1998.
ITEM 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operation
Operating revenue for the quarter ended April 30, 1999 were $63,610 compared
to $10,888 for the quarter ended April 30, 1998. Total expenses for the
quarter ending April 30, 1999 were $54,258 compared to $124,035 for the same
period ended April 30, 1998.
Total revenues for the nine month period ended April 30, 1999 were $171,060
compared to $56,396 for the same period ended April 30, 1998. Total
expenses for the nine months period ending April 30, 1999 were $199,294
compared to $289,911 for the same period ended April 30, 1998.
During the period, the Registrant wrote down the valuation of its remaining
wells. Presently the wells are being carried for less than $50,000.
During the period, based upon prior votes of the Board, Registrant issued
11,487,540 shares of common stock
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
The Registrant has initiated an arbitration proceeding against the
Lessor of its facility in Orange County, California. The Registrant believes
it will prevail in this matter.
Item 2. Changes in the Rights of the Registrant's Security HoldersNone
Item 3. Defaults by the Company on its Senior Securities
Registrant issued 1,027,500 shares of common stock to one class of
convertible debt holders and 780,000 shares to holder of other debt as
payment in kind.
Item 4. Results of Votes of Security Holders . . . . . . . . . None
Item 5. Other Information. . . . . . . . . . . . . . . . . . . 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 thereunto duly authorized.
Customer Sports, Inc. (Registrant)
October 20, 1999 /S/ Edmund J. Irvine
Date:---------------- By: --------------------------
October 20, 1999 Edmund J. Irvine, Jr.
President
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000051853
<NAME> CUSTOMER SPORTS, INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> FEB-01-1999
<PERIOD-END> APR-30-1999
<CASH> 16,208
<SECURITIES> 0
<RECEIVABLES> 2,732
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 18,940
<PP&E> 750,109
<DEPRECIATION> 738,867
<TOTAL-ASSETS> 33,182
<CURRENT-LIABILITIES> 371,022
<BONDS> 0
0
0
<COMMON> 198,660
<OTHER-SE> (699,877)
<TOTAL-LIABILITY-AND-EQUITY> 33,182
<SALES> 152,681
<TOTAL-REVENUES> 171,060
<CGS> 11,000
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 199,294
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 29,880
<INCOME-PRETAX> (39,234)
<INCOME-TAX> 0
<INCOME-CONTINUING> (39,234)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (39,234)
<EPS-BASIC> (.00)
<EPS-DILUTED> 0
</TABLE>
