[DESCRIPTION] COVER PAGE
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year beginning January 1, 1997 and ending December 31, 1997
Commission file number: 0-2664
INVESTORS FINANCE, INC.
( Exact name of small business issuer as specified in its charter)
___________________
Hawaii 99-0112763
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
50 South Beretania Street, Honolulu, Hawaii 96813
(Address of principal executive offices) (Zip Code)
Issuer's telephone number: (808) 533-7437
___________________
Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:
Common Stock, no par value
(Title of class)
<PAGE>
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 the past 90 days.
Yes [ ] No[ x ]
Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B contained in this form, and no disclosure will be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [ x ]
Issuer's revenues for its most recent fiscal year: $213,407
Aggregate market value of the issuer's common stock held by non-affiliates
as of December 31, 1997: $482,089
Number of shares outstanding of the issuer's common stock as of
December 31, 1997: 1,252,246.
DOCUMENTS INCORPORATED BY REFERENCE: None
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [ X ]
<PAGE>
PART I
Item 1. Description of Business
General
Investors Finance, Inc. (the "Company") is a Hawaii corporation engaged in the
business of mortgage brokerage and real estate, commercial, and consumer loans.
Total loan volume decreased to $307,385 on December 31, 1997 compared to
$542,931 for December 31, 1996. Total mortgage brokerage commissions for 1997
were $149,563 compared to $187,035 for 1996.
The Company's executive offices are located at 50 South Beretania St.,
Honolulu HI 96813. The Company's phone number is (808) 533-7437.
Development of Business
The Company was organized under the laws of the State of Hawaii on September 15,
1960.
Business
Management believes the consolidation of the business operations and focusing
on the resale of mortgage loans provides the shareholders with much lower costs
regarding legal and regulatory expenses.
Principal Products and Services
The principal services of the Company are the origination and resale of
Residential and Commercial mortgages. The Company continues to make
"in house" loans as funds are available.
Competition
The Mortgage originating business in the State of Hawaii is very competitive.
There are a number of Competitors within the state with substantial operating
histories and financial reserves. Management believes the Company can be
profitable by controlling expenses and operating with a low overhead.
Government Approvals and Regulations
The products and services provided by the Company are not subject to government
approval. The Company is operating as an Industrial Loan Company and is
regulated by the State of Hawaii, Commissioner of Financial Institutions.
<PAGE>
Directors, Executive officers and Significant Employees
<TABLE>
<CAPTION>
NAME AGE POSITION
<S> <C> <C>
Wade Richardson 56 President & Secretary, Director
Daniel Jeffers 43 Vice President & Treasurer, Director
Data Processing Consultant
Karen Oani 43 Vice-President, Office Manager
</TABLE>
Directors and Officers received no remuneration for services during 1997 with
the exception of Ms. Oani, who received $24,260 as salary.
PART II
ITEM 1. Market Price and Dividends on the Company's Equity
and other Shareholder Matters.
Market Information
There has been only limited trading activity in the Company's common stock
during 1997. The following table sets forth quotes obtained from Abel Behnke
Corporation and listed in the Pacific Business News.
<TABLE>
<CAPTION>
Quarter Ended Bid Price
<S> <C>
March 31, 1997 6.5 cents
June 30, 1997 12.0 cents
October 31, 1997 6.5 cents
December 31, 1997 6.5 cents
</TABLE>
<PAGE>
Holders
The number of record holders of the Company's common stock as of
December 31, 1997 was approximately 1,027.
Dividends
The Company has not paid dividends with respect to its common stock, and does
not intend to pay dividends in the foreseeable future. it is the present
intention of management to utilize all available funds for the development of
the Company's business.
Item 2. Legal Proceedings
To management's knowledge, the Company is not a party to any material pending
legal proceedings and is not aware of any material threatened legal proceedings.
Further, to the knowledge of management, no director, officer, affiliate or
record or beneficial owner of more than 5% of the common voting stock of the
Company is a party adverse to the Company or has a material adverse interest
to the Company in any proceeding.
Item 4. Submissions of Matters to a Vote of Security Holders.
No matter was submitted to a vote of the security holders during the fourth
quarter ended December 31, 1997.
Item 5. Reports on Form 8-K.
The company has insufficient funds available for audited financials.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 19,711
<SECURITIES> 0
<RECEIVABLES> 404,611
<ALLOWANCES> 36,718
<INVENTORY> 0
<CURRENT-ASSETS> 387,604
<PP&E> 592,138
<DEPRECIATION> 325,329
<TOTAL-ASSETS> 660,678
<CURRENT-LIABILITIES> 171,600
<BONDS> 0
0
0
<COMMON> 1,223,702
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 660,678
<SALES> 213,407
<TOTAL-REVENUES> 213,407
<CGS> 0
<TOTAL-COSTS> 273,428
<OTHER-EXPENSES> 1,865
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,184
<INCOME-PRETAX> (61,886)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (61,886)
<EPS-PRIMARY> (.049)
<EPS-DILUTED> (.049)
</TABLE>
