<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------------
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
--------------------------------
For Quarter Ended April 30, 1989 Commission File No. 0-6649
Jilco Industries, Inc.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
California 95-2075885
- ------------------------------------------------------------------------------
(State of other jurisdiction or (I.R.S. Employer No.)
incorporation of organization)
P. O. Box 10539, Beverly Hills, California 90213
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(310) 274-1986
- --------------------------------------------------------------------------------
(Registrant's Telephone Number, including area code)
Not Applicable
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changes 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 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 .
--------- ---------
<PAGE> 2
PART I. FINANCIAL INFORMATION
JILCO INDUSTRIES, INC.
BALANCE SHEET - APRIL 30, 1989 AND 1988
(Unaudited)
<TABLE>
<CAPTION>
ASSETS
1989 1988
--------- ---------
<S> <C> <C>
Current Assets:
Cash $ 2,285 $ 94
--------- ---------
$ 2,285 $ 94
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY DEFICIENCY
Current liabilities:
Note payable to shareholder
(Note 3) $ 45,000 $ 39,925
Accrued expenses $ 12,023 $ 8,060
========= =========
Total current liabilities $ 57,023 $ 47,985
--------- ---------
Shareholders' equity deficiency:
Common stock, no par:
1,500,000 shares authorized;
449,991 shares issued and
outstanding $ 749,950 $ 749,950
Deficit (804,688) (797,841)
--------- ---------
Total (54,738) (47,891)
--------- ---------
$ 2,285 $ 94
========= =========
</TABLE>
See Notes to Financial Statements
- 2 -
<PAGE> 3
JILCO INDUSTRIES, INC.
STATEMENT OF LOSS AND DEFICIT
NINE MONTHS ENDED APRIL 30, 1989 AND 1988
(Unaudited)
<TABLE>
<CAPTION>
1989 1988
--------- ---------
<S> <C> <C>
Expenses:
General and Administrative $ 5,145 $ 4,225
State Franchise Tax 405 200
--------- ---------
Net Loss $ $5,550) $ (4,425)
Deficit, beginning of year $(799,138) $(793,416)
--------- ---------
Deficit, end of period $(803,662) $(797,841)
========= =========
Loss per share (Note 2) $ 0.01 $ 0.01
========= =========
THREE MONTHS ENDED APRIL 30, 1989 AND 1988
Expenses:
General and Administrative ($ 1,026) ($ 1,193)
Net Loss $ 1,026 $ 1,193
--------- ---------
Loss per share $-0- $-0-
</TABLE>
- 3 -
<PAGE> 4
JILCO INDUSTRIES, INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
NINE MONTHS ENDED APRIL 30, 1989 AND 1988
(Unaudited)
<TABLE>
<CAPTION>
1989 1988
-------- --------
Source of funds:
<S> <C> <C>
Net loss $ (5,550) $ (4,425)
Working capital used in
operations $ (5,550) $ (4,425)
======== ========
Application of funds:
Decrease in working capital $ (5,550) $ (4,425)
======== ========
Summary of net change in working capital:
Increase (decrease) in current assets:
Cash $ 403 $ (871)
-------- --------
Increase (decrease) in current liabilities:
Accrued expenses $ 2,878 $ 1,554
Note Payable to Shareholder $ 3,075 $ 34,925
Advance payable $ -0- $(32,925)
-------- --------
$ 5,953 $ 3,554
Decrease in working capital: $ (5,550) $ (4,425)
======== ========
</TABLE>
See Notes to Financial Statements
- 4 -
<PAGE> 5
JILCO INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
NINE MONTHS ENDED APRIL 30, 1989 AND 1988
(Unaudited)
NOTE 1 - THE COMPANY
The Company has been inactive since April 2, 1968 when it was discharged from
bankruptcy under its previous name of Sportways, Inc. The expenses the Company
has incurred represent those necessary to keep the Company in good standing in
its state of residence.
Fair Value of Financial Instruments
The Company measures its financial assets and liabilities in accordance with
generally accepted accounting principles. For certain of the Company's financial
instruments, including cash, accounts payable, and accrued expenses, the
carrying amounts approximate fair value due to their short maturities. The
amounts shown as notes payable also approximate fair value because current
interest rates offered to the Company for notes payable of similar maturities
are substantially the same.
Estimates
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements, as well as the reported amounts of expenses during the reporting
period. Actual results could differ from those estimates.
NOTE 2 - LOSS PER SHARE
All per share computations are based on 449,991 shares outstanding. There are no
common stock equivalents.
- 5 -
<PAGE> 6
NOTE 3 - NOTES PAYABLE TO SHAREHOLDER
Notes payable to shareholder consist of the following:
<TABLE>
<CAPTION>
1996 1995 1994 1993 1992 1991 1990 1989
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Revolving note
payable (A) $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000 $40,000
Revolving note
payable (B) 8,250 8,250 8,250 5,250 4,250 2,000 1,000 -0-
Term note
payable (C) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
------- ------- ------- ------- ------- ------- ------- -------
TOTAL $53,250 $53,250 $53,250 $50,250 $49,250 $47,000 $46,000 $45,000
------- ------- ------- ------- ------- ------- ------- -------
</TABLE>
(A) Accrued interest at 9% per annum. Principal and accrued interest due on
demand.
(B) Accrued interest at 11% per annum. Principal and accrued interest due on
demand.
(C) Accrued interest at 10% per annum. Principal and accrued interest due on
demand.
- 6 -
<PAGE> 7
JILCO INDUSTRIES, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Registrant has not conducted any business operations during the last
five (5) fiscal years, except that during the above fiscal years it has incurred
expenses necessary to keep its good standing in its state of residence.
PART II. OTHER INFORMATION
None of Items 1 through 6 of Part II are applicable.
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.
JILCO INDUSTRIES, INC.
By: /s/ Martha J. Kretzmer
--------------------------------------
Martha J. Kretzmer
President
Date: August 7, 1997
- 7 -
