<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-QSB
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934 for the Quarterly Period Ended October 31, 1997.
Commission file number 0-6649
Jilco Industries, Inc.
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(Exact name of small business issuer as specified in its charter)
California 95-2075885
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
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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(Issuer's telephone number)
Not Applicable
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(Former name, former address and former fiscal year, if changed since last
report)
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 X No.
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449,991 shares of the issuer's common stock, no par value, are outstanding as of
October 31, 1997.
Transitional Small Business Disclosure Format:
Yes No X .
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PART I. FINANCIAL INFORMATION
JILCO INDUSTRIES, INC.
BALANCE SHEETS - OCTOBER 31, 1997 AND JULY 31, 1997
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
October 31, July 31,
1997 1997
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<S> <C> <C>
CURRENT ASSETS
Cash $ 1,602 $ 976
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TOTAL CURRENT ASSETS $ 1,602 $ 976
========== ==========
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES
Note payable to shareholder (Note 3) $ 53,250 $ 53,250
Note payable (Note 4) 12,000 5,000
Accrued expenses 53,366 51,144
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Total current liabilities 118,616 109,394
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SHAREHOLDERS' DEFICIT
Common stock, no par value
1,500,000 shares authorized
449,991 shares issued and outstanding 749,950 749,950
Accumulated deficit (866,964) (858,368)
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Total shareholders' deficit (117,014) (108,418)
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TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 1,602 $ 976
========== ==========
</TABLE>
See Notes to Financial Statements.
2
<PAGE> 3
JILCO INDUSTRIES, INC.
STATEMENTS OF LOSS AND DEFICIT
THREE MONTHS ENDED OCTOBER 31, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
1997 1996
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<S> <C> <C>
EXPENSES
General and administrative $ 7,796 $ 1,310
State franchise tax 800 800
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Total expenses 8,596 2,110
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NET LOSS (8,596) (2,110)
ACCUMULATED DEFICIT, BEGINNING OF PERIOD (858,368) (849,736)
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ACCUMULATED DEFICIT, END OF PERIOD $(866,964) $(851,846)
========= =========
LOSS PER SHARE (NOTE 2) $ (0.02) $ 0.00
========= =========
</TABLE>
See Notes to Financial Statements.
3
<PAGE> 4
JILCO INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED OCTOBER 31, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
1997 1996
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (8,596) $ (2,110)
Increase in accounts payable and accrued expenses 2,222 1,292
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Net cash used in operating activities (6,374) (818)
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable 7,000 1,000
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Net cash provided by financing activities 7,000 1,000
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Net increase in cash 626 182
CASH, BEGINNING OF PERIOD 976 370
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CASH, END OF PERIOD $ 1,602 $ 552
========= =========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
INTEREST PAID $ -- $ --
========= =========
INCOME TAXES PAID $ -- $ 800
========= =========
</TABLE>
See Notes to Financial Statements.
4
<PAGE> 5
JILCO INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED OCTOBER 31, 1997 AND 1996
(UNAUDITED)
NOTE 1 - THE COMPANY
Jilco Industries, Inc. (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.
Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make 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. Accordingly,
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.
NOTE 3 - NOTES PAYABLE TO SHAREHOLDER
Notes payable to shareholder consisted of the following:
<TABLE>
<CAPTION>
October 31, July 31,
1997 1997
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<S> <C> <C>
Revolving note payable, interest accrues at 9%
per annum. Principal and accrued interest
are due on demand $ 40,000 $ 40,000
Revolving note payable, interest accrues at 11%
per annum. Principal and accrued interest
are due on demand 8,250 8,250
Revolving note payable, interest accrues at 10%
per annum. Principal and accrued interest
are due on demand $ 5,000 $ 5,000
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TOTAL $ 53,250 $ 53,250
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</TABLE>
NOTE 4 - NOTE PAYABLE
The note payable is a revolving demand note due on demand. Interest
accrues at 8% per annum and is payable on December 31 of each year.
5
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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 and to
comply with the periodic reporting requirements of the Exchange Act.
PART II. OTHER INFORMATION
None of Items 1 through 6 of Part II are applicable.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
JILCO INDUSTRIES, INC.
Date: February 24, 1998 /s/ Martha J. Kretzmer
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Martha J. Kretzmer,
President
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF JILCO INDUSTRIES FOR THE QUARTER ENDED OCTOBER 31, 1997
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-1998
<PERIOD-END> OCT-31-1997
<CASH> 1,602
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,602
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,602
<CURRENT-LIABILITIES> 118,616
<BONDS> 0
0
0
<COMMON> 749,950
<OTHER-SE> (866,964)
<TOTAL-LIABILITY-AND-EQUITY> 1,602
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 8,596
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (8,596)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,596)
<EPS-PRIMARY> (0.02)
<EPS-DILUTED> (0.02)
</TABLE>
