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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
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For Quarter Ended January 31, 1996 Commission File No. 0-6649
JILCO INDUSTRIES, INC.
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(Exact name of registrant as specified in its charter)
California 95-2075885
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(State of other jurisdiction or (I.R.S. Employer No.)
Incorporation of organization)
P. O. Box 10539, Beverly Hills, California 90213
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(Address of principal executive offices) Zip Code)
(310) 274-1986
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(Registrant's Telephone Number, including area code)
Not Applicable
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(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.
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PART I. FINANCIAL INFORMATION
JILCO INDUSTRIES, INC.
BALANCE SHEET - JANUARY 31, 1996 AND 1995
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
1996 1995
--------- ---------
<S> <C> <C>
Current Assets:
Cash $ 459 $ 337
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$ 459 $ 337
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY DEFICIENCY
Current liabilities:
Note payable to shareholder
(Note 3) $ 53,250 $ 53,250
Note payable (Note 4) $ 1,000 $-0-
Accrued expenses $ 43,400 $ 38,362
========= =========
Total current liabilities $ 97,650 $ 91,612
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Shareholders' equity deficiency:
Common stock, no par:
1,500,000 shares authorized;
449,991 shares issued and
outstanding $ 749,950 $ 749,950
Deficit (847,141) (841,225)
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Total (97,191) (91,275)
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$ 459 $ 337
========= =========
</TABLE>
See Notes to Financial Statements
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JILCO INDUSTRIES, INC.
STATEMENT OF LOSS AND DEFICIT
SIX MONTHS ENDED JANUARY 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
--------- ---------
<S> <C> <C>
Expenses:
General and Administrative $ 2,538 $ 2,570
State Franchise Tax 800 800
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Net Loss $ (3,338) $ (3,370)
Deficit, beginning of year $(843,803) $(837,855)
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Deficit, end of period $ 847,141 $ 841,225
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Loss per share (Note 2) $ 0.00 $ 0.00
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THREE MONTHS ENDED JANUARY 31, 1996 AND 1995
Expenses:
General and Administrative $ (1,270) $ (1,285)
Franchise Tax $ 800 $ 800
Net Loss $ 2,070 $ 2,085
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Loss per share $ -0- $ -0-
</TABLE>
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JILCO INDUSTRIES, INC.
STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JANUARY 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net loss $(3,338) $(3,370)
Increase (decrease) in accounts
payable and accrued expenses $ 2,502 $ 2,534
======= =======
Net cash used in operating activities $ (836) $ (836)
======= =======
Cash flows from financing activities
Proceeds from notes payable
to shareholder, net $ 1,000 $ -0-
======= =======
Net cash provided by financing activities $ 1,000 $ -0-
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Net increase (decrease) in cash $ 164 $ (836)
======= =======
Cash -- beginning of period $ 295 $ 1,173
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Cash -- end of period $ 459 $ 337
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Supplemental cash flow information
Interest paid $ -0- $ -0-
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Taxes paid $ 800 $ 800
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</TABLE>
See Notes to Financial Statements
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JILCO INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
SIX MONTHS ENDED JANUARY 31, 1996 AND 1995
(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.
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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.
NOTE 4 - NOTE PAYABLE
Revolving demand note due on demand or December 31, 1997. Interest accrues
at 8% per annum and is payable on December 31 of each year.
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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
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Martha J. Kretzmer
President
Date: August 7, 1997
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