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.
January 31, 1999 0-5304
CUSTOMER SPORTS, INC.
-----------------------
(Exact Name of Registrant)
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 January 31, 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
January 31, 1999 Unaudited & July 31, 1998
<TABLE>
<CAPTION>
January July
31, 1999 31, 1998
------------ ------------
<S> <C> <C>
ASSETS
------
Current Assets
- --------------
Cash $ -0- $ 20,927
Receivables (Note #3) 2,732 2,732
Inventory 7,218 7,218
------------ ------------
Total Current Assets 9,950 30,877
Other Assets
- ------------
Prepaid Advertising Promotional Services
and Banking Services -0- 10,000
Refundable Deposit 3,000 3,000
Equipment - Net 1,939 3,150
Oil & Gas Properties
(Successful Efforts Method) 732,901 732,901
Less Accumulated Depreciation ( 722,803) ( 719,102)
Total Other Assets 15,037 29,949
------------ ------------
TOTAL ASSETS $ 24,987 $ 60,826
============ ============
LIABILITIES & STOCKHOLDERS' EQUITY
----------------------------------
Current Liabilities
- -------------------
Cash in Bank Overdraft $ 136 $ -0-
Accounts Payable & Accrued Expenses 127,313 117,920
Notes Payable (Note #5) 237,513 237,513
------------ ------------
Total Current Liabilities 364,962 355,433
Long Term Liabilities
- ---------------------
Notes Payable (Note #5) 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 and Outstanding Restated 198,663 208,660
Paid In Capital 6,750,380 6,750,383
Deficit in Retained Earnings (7,452,395) ( 7,411,027)
------------ ------------
Total Stockholders' Equity ( 503,352) ( 451,984)
------------ ------------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 24,987 $ 60,826
=========== ===========
</TABLE>
See Accompanying Notes
3
Customer Sports, Inc.
Statement of Operations (Unaudited)
For the Three Months Period Ended January 31, 1999 & 1998
and the Six Months Ended January 31, 1999 & 1998
<TABLE>
<CAPTION>
For the Three For the Six
Months Ended Months Ended
January January January January
31, 1999 31, 1998 31, 1999 31, 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues
- --------
Golf Sales & Fees $ 60,297 $ 8,825 $ 99,400 $ 24,317
---------- ---------- ---------- ----------
Total Revenues 60,297 8,825 99,400 24,317
Cost & Expenses
- ---------------
Cost of Golf Sales -0- 1,050 3,782 2,465
---------- ---------- ---------- ----------
Gross Profit 60,297 7,775 95,618 21,852
Operating Expenses
- ------------------
General & Administrative
Expenses 71,752 34,384 139,815 93,613
Depreciation & Amortization 2,199 7,587 4,911 13,076
---------- ---------- ---------- ----------
Total Cost & Expenses 73,951 41,971 144,726 106,689
---------- ---------- ---------- ----------
Loss from Operations ( 13,654) ( 34,196) ( 49,108) ( 84,837)
- --------------------
Other Income (Expenses)
- -----------------------
Gain on Sale of Assets -0- -0- -0- 2,550
Oil & Gas Revenues 2,748 12,470 7,741 21,190
Lease Operating Expenses
Delayed Rentals, Royalties,
& Taxes - Oil Well -0- ( 5,514) -0- ( 9,186)
Oil Well Impairment -0- ( 25,000) -0- ( 50,000)
---------- ---------- ---------- ----------
Total Other Income (Loss) 2,748 ( 18,044) 7,741 ( 35,446)
---------- ---------- ---------- ----------
Net Loss ($ 10,906) ($ 52,240) ($ 41,367) ($120,283)
========== ========== ========= ==========
Net Loss Per Share of
Common Stock ($ .00) ($ .01) ($ .00) ($ .01)
Weighted Average Number
Of Shares Outstanding
During Period 19,866,253 15,384,290 19,866,253 15,384,290
</TABLE>
See Accompanying Notes
4
Customer Sports, Inc.
Statement of Cash Flows (Unaudited)
For the Six Month Period Ending January 31, 1999 & 1998
<TABLE>
<CAPTION>
Six Month Period Ending
January January
31, 1999 31, 1998
---------- ----------
<S> <C> <C>
Operating Expenses
- ------------------
Net (Loss) from Operations ($ 41,367) ($120,283)
Adjustments to Reconcile Net Income (Loss)
to Net Cash Provided by Operating Activities:
Depreciation 4,911 13,076
Write Off of Oil Well Impairment -0- 50,000
Non Cash Stock Issued for Services -0- 16,750
Changes in Operating Assets & Liabilities
Increase (Decrease) in Accounts Payable 9,393 23,274
---------- ----------
Net Cash Provided (Used) by Operating Activities ( 27,063) ( 17,183)
Cash Flows From Investing Activities -0- -0-
- ------------------------------------ ---------- ----------
Net Cash Provided (Used) by Investing Activities -0- -0-
Cash Flows from Financing Activities
- ------------------------------------
Increase in Notes Payable 6,000 13,000
Sale of Common Shares -0- 6,375
Payment on Notes Payment -0- ( 3,000)
Increase in Cash in Bank Overdraft -0- 274
Contributed Capital -0- 500
---------- ----------
Net Cash Provided (Used) by Financing Activities 6,000 17,149
---------- ----------
Increase (Decrease) in Cash ( 21,063) ( 34)
Cash at Beginning of Period 20,927 234
---------- ----------
Cash at End of Period ($ 136) $ 200
========== ==========
Disclosures from Operating Activities
Interest $ 18,393 $ 23,274
Taxes -0- -0-
</TABLE>
See Accountant's Report Accompanying Notes
5
Customer Sports, Inc.
Notes to Financial Statements (Unaudited)
ITEM I
NOTE #1 - Basis of Presentation
- -------------------------------
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounnting principles for
interim financial information and with the instructions to Form 10-Q and
Rule 10-01 for 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 (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three months ending January 31, 1999 are not necessarily
indicative of the results that may be expected for the year ending January
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 II
Management's Discussion and Analysis of Financial Condition and Results of
Operation
- ---------------------------------------------------------------------------
Total operating revenues for the quarter ended January 31, 1999 were
$63,045 compared to $21,295 for the quarter ended January 31, 1998.
Total operating expenses for the quarter ended January 31, 1999 were
$73,951 compared to $72,485 for the quarter ended January 31, 1998 due to
expenses related to establishment of the Company's golf business.
Oil and gas revenues continued their orderly decline during the period and
Registrant wrote down the value of the oil and gas holdings by an
additional $25,000.
The Company settled its dispute with Peralta Sports via arbitration for
$12,000 vs. $22,000 sought by Peralta. The amount was personally
guaranteed by the President, Mr. Edmund J. Irvinve, Jr.
6
PART II
OTHER INFORMATION
Item 1 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . .None
Item 2 Changes in the Rights of the
Company's Security Holders . . . . . . . . . . . . . . . . .None
Item 3 Defaults by the Company on its Senior Securities . . . . . .None
Item 4 Results of Votes of Security Holders . . . . . . . . . . . .None
Item 5 Other Information. . . . . . . . . . . . . . . . . . . . . .None
Item 6 Exhibits and Reports on Form 8-K . . . . . . . . . . . . . .None
7
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 Jr.
Date:---------------- By:-----------------------------------
October 20, 1999 Edmund J. Irvine, Jr.
President
8
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<ARTICLE> 5
<CIK> 0000051853
<NAME> CUSTOMER SPORTS, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-START> NOV-01-1998
<PERIOD-END> JAN-31-1999
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 2,732
<ALLOWANCES> 0
<INVENTORY> 7,218
<CURRENT-ASSETS> 9,950
<PP&E> 750,109
<DEPRECIATION> 738,072
<TOTAL-ASSETS> 24,987
<CURRENT-LIABILITIES> 364,962
<BONDS> 0
0
0
<COMMON> 198,663
<OTHER-SE> (702,015)
<TOTAL-LIABILITY-AND-EQUITY> 24,987
<SALES> 99,400
<TOTAL-REVENUES> 107,141
<CGS> 3,782
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 144,726
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 18,393
<INCOME-PRETAX> (41,367)
<INCOME-TAX> 0
<INCOME-CONTINUING> (41,367)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (41,356)
<EPS-BASIC> (.00)
<EPS-DILUTED> 0
</TABLE>
