<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, 1999.
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, 1999.
Transitional Small Business Disclosure Format:
Yes No X .
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PART I . FINANCIAL INFORMATION
JILCO INDUSTRIES, INC.
BALANCE SHEETS - OCTOBER 31, 1999 AND JULY 31, 1999
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
October 31, July 31,
1999 1999
----------- ---------
<S> <C> <C>
CURRENT ASSETS
Cash $ 2,593 $ 889
--------- ---------
TOTAL CURRENT ASSETS $ 2,593 $ 889
========= =========
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable $ 7,499 $ 7,499
Notes payable to shareholder 53,250 53,250
Note payable 63,500 57,500
Accrued interest 70,007 67,545
Other accrued expenses 800 --
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Total current liabilities 195,056 185,794
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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 (942,413) (934,855)
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Total shareholders' deficit (192,463) (184,905)
--------- ---------
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 2,593 $ 889
========= =========
</TABLE>
See Notes to Financial Statements.
1
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JILCO INDUSTRIES, INC.
STATEMENTS OF LOSS AND DEFICIT
THREE MONTHS ENDED OCTOBER 31, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
--------- ---------
<S> <C> <C>
EXPENSES
Professional fees $ 3,449 $ 2,212
Interest expense 2,462 2,232
Printer fees 827 --
Sundry 20 27
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Total expenses 6,758 4,471
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LOSS BEFORE PROVISION FOR INCOME TAXES (6,758) (4,471)
PROVISION FOR INCOME TAXES 800 800
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NET LOSS (7,558) (5,271)
ACCUMULATED DEFICIT, BEGINNING OF YEAR (934,855) (908,173)
--------- ---------
ACCUMULATED DEFICIT, END OF YEAR $(942,413) $(913,444)
========= =========
BASIC LOSS PER SHARE $ (0.02) $ (0.01)
========= =========
DILUTED LOSS PER SHARE $ (0.02) $ (0.01)
========= =========
WEIGHTED-AVERAGE SHARES OUTSTANDING 449,991 449,991
========= =========
</TABLE>
See Notes to Financial Statements.
2
<PAGE> 4
JILCO INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED OCTOBER 31, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
1999 1998
------- -------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(7,558) $(5,271)
Increase in accrued interest 2,462 2,232
Increase in other accrued expenses 800 800
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Net cash used in operating activities (4,296) (2,239)
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable 6,000 2,000
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Net cash provided by financing activities 6,000 2,000
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Net increase (decrease) in cash 1,704 (239)
CASH, BEGINNING OF YEAR 889 2,049
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CASH, END OF YEAR $ 2,593 $ 1,810
======= =======
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
INTEREST PAID $ -- $ --
======= =======
INCOME TAXES PAID $ -- $ --
======= =======
</TABLE>
See Notes to Financial Statements.
3
<PAGE> 5
JILCO INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED OCTOBER 31, 1999 AND 1998
(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.
Fair Value of Financial Instruments
For certain of the Company's financial instruments including cash 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 and terms offered
to the Company for notes payable of similar maturities are
substantially the same.
Cash and Cash Equivalents
For purpose of reporting cash flows, the Company includes cash on
deposit, cash on hand, and financial instruments purchased with an
original maturity of three months or less to be cash equivalents.
Interim Financial Information
The interim financial statements reflect all adjustments (which include
only the normal recurring adjustments) necessary for a fair
presentation of financial position, results of operations, and cash
flows for such periods. The results of operations for the interim
period are not necessarily indicative of the results that may be
expected for the entire year or any other future periods.
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.
Income Taxes
The Company utilizes SFAS No. 109, "Accounting for Income Taxes," which
requires the recognition of deferred tax assets and liabilities for the
expected future tax consequences of events that have been included in
the financial statements or tax returns. Under this method, deferred
income taxes are recognized for the tax consequences in future years of
differences between the tax bases of assets and liabilities and their
financial reporting amounts at each period end based on enacted tax
laws and statutory tax rates applicable to the periods in which the
differences are expected to affect taxable income. Valuation allowances
are established, when necessary, to reduce deferred tax assets to the
amount expected to be realized. The provision for income taxes
represents the tax payable for the period and the change during the
period in deferred tax assets and liabilities.
4
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JILCO INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED OCTOBER 31, 1999 AND 1998
(UNAUDITED)
NOTE 2 - LOSS PER SHARE
The Company calculates basic loss per share using the weighted-average
number of shares outstanding for the period. Diluted loss per share
includes both the weighted-average number of shares and any common
share equivalents such as options or warrants in the calculation. As
the Company had no common share equivalents outstanding during any
periods presented, basic and diluted loss per share are the same.
NOTE 3 - NOTES PAYABLE TO SHAREHOLDER
Notes payable to shareholder at October 31 consisted of the following:
<TABLE>
<CAPTION>
1999 1998
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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
------- -------
TOTAL $53,250 $53,250
======= =======
</TABLE>
NOTE 4 - NOTE PAYABLE
The note payable is 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 5 of Part II are applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit No. Description
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<S> <C>
27 Financial Data Schedule
</TABLE>
(b) Reports on Form 8-K
No materially important events occurred during the quarterly
period that would require filing of Form 8-K.
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: December 14, 1999 /s/ Martha J. Kretzmer
-----------------------------------------
Martha J. Kretzmer,
President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-1999
<PERIOD-START> AUG-01-1999
<PERIOD-END> OCT-31-1999
<CASH> 2,593
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,593
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 195,056
<BONDS> 0
0
0
<COMMON> 749,950
<OTHER-SE> (942,413)
<TOTAL-LIABILITY-AND-EQUITY> 2,593
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6,758
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (6,758)
<INCOME-TAX> 800
<INCOME-CONTINUING> (7,558)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,558)
<EPS-BASIC> (0.02)
<EPS-DILUTED> (0.02)
</TABLE>
