U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED December 31, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE TRANSITION PERIOD FROM TO
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Commission file number 0-11043
ORION FINANCIAL, LTD.
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(Exact name of small business issuer as specified in its charter)
Colorado 84-0858679
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
80 N. Hoyt Street
Lakewood, Colorado 80226
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(Address of principal executive offices)
(303) 238-0937
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(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 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]
The number of shares outstanding of the Issuer's Common Stock, no par value
common stock, as of September 30, 1997, was 4,641,522.
Transitional small business disclosure format:
Yes [ ] No [X]
9 Total Pages
1
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ORION FINANCIAL, LTD.
FORM 10-QSB FOR THE QUARTER ENDED December 31, 1997
INDEX
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SECTION PAGE
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PART I - FINANCIAL INFORMATION*
Balance Sheets - December 31, 1997 & June 30, 1997 3
Statements of Operations - For the three months ended December 31, 1997 & 1996 4
Statements of Operations - For the six months ended December 31, 1997 & 1996 5
Statements of Cash Flow - For the six months ended December 31, 1997 and 1996 6
Notes to the Financial Statements 7
Management's Discussion and Analysis or Plan of Operations 8
PART II - OTHER INFORMATION
Signatures 9
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* The accompanying financial statements are not covered by an Independent
Certified Public Accountant's Report.
2
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<CAPTION>
Orion Financial, Ltd.
Balance Sheets
Assets December 31, June 30, 1997
1997 (Unaudited)
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<S> <C> <C>
Current Assets
Cash ............................................... $ 173,712 $ 203,041
Short term investments ............................. 0 0
Deposits ........................................... 0 0
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Total Current Assets ......................... 173,712 203,041
Total Assets ....................................... $ 173,712 $ 203,041
=========== ===========
Liabilities & Equity
Current Liabilities
Accounts Payable & Accrued Expenses ................ $ 0 $ 8,923
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Equity
Common Stock ....................................... 371,322 371,322
Additional Paid in Capital ......................... 4,639,182 4,639,182
Accumulated Deficit ................................ (4,836,792) (4,816,386)
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Total Equity ................................. 173,712 194,118
Total Liabilities & Equity ......................... $ 173,712 $ 203,041
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3
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<TABLE>
<CAPTION>
Orion Financial, Ltd.
Statement of Operations
(Unaudited)
Three Months Ended
December 31,
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1997 1996
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<S> <C> <C>
Interest Income ................................... $ 1,434 $ 5,344
Misccellaneous Income ............................. 0 0
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Total Income ...................................... 1,434 5,344
Accounting & Legal Expenses ....................... (4,465) (2,510)
Bad Debts ......................................... 0 0
Compensation Expenses ............................. (3,000) (3,000)
Miscellaneous Expenses ............................ (2,352) (1,246)
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Net Income (Loss) ................................. $ (8,383) $ (1,412)
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Net Income (Loss) per Share ....................... $ 0.00 $ 0.00
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Weighted Average Shares Outstanding................ 4,641,522 4,641,522
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4
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<TABLE>
<CAPTION>
Orion Financial, Ltd.
Statement of Operations
(Unaudited)
Six Months Ended
December 31,
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1997 1996
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<S> <C> <C>
Interest Income ................................... $ 3,173 $ 5,626
Miscellaneous Income .............................. 119 0
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Total Income ...................................... 3,292 5,626
Accounting & Legal Expenses ....................... (4,465) (2,510)
Bad Debts ......................................... (10,000) 0
Compensation Expenses ............................. (6,000) (6,000)
Miscellaneous Expenses ............................ (3,234) (2,180)
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Net Income (Loss) ................................. $ (20,407) $ (5,064)
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Net Income (Loss) per Share ....................... $ 0.00 $ 0.00
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Weighted Average Shares Outstanding................ 4,641,522 4,641,522
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<TABLE>
<CAPTION>
Orion Financial, Ltd.
Statement of Cash Flows
(Unaudited)
Six Months Ended
December 31,
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1997 1996
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<S> <C> <C>
Cash Flow from operating activities:
Net income (loss) ............................................. $ (20,407) $ (5,064)
Adjustments to reconcile net loss to net cash
provided (used) by operating activities:
Changes in assets and liabilities:
Accounts Payable .................................................... (8,923) (176)
Accrued Liabilities ................................................. 0 0
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Net cash provided (used) by operating activities .............. (29,330) (5,240)
Increase (decrease) in cash and cash equivalents .................... (29,330) (5,240)
Cash and cash equivalents, beginning of period ...................... 203,041 222,076
========= =========
Cash and cash equivalents, end of period ............................ $ 173,711 $ 216,836
========= =========
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6
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ORION FINANCIAL, LTD.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. GENERAL:
Orion Financial, Ltd. (the "Company"), has elected to substantially omit
all footnotes to the Financial Statements for the six months ended
December 31, 1997, since there have been no material changes to the
information previously reported by the Company in its annual report filed
on Form 10-K, for the year ended June 30, 1997.
2. UNAUDITED INFORMATION:
The information herein was taken from the books and records of the Company
without audit. However, such information reflects all adjustments which
are, in the opinion of management, necessary in order to make the
financial statements not misleading. The information presented is not
necessarily indicative of the results from operations expected for the
full fiscal year.
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ORION FINANCIAL, LTD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR
PLAN OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Orion Financial, Ltd. (the "Company") had working capital at December 31, 1997,
of approximately $173,712, which should be sufficient for the Company to fund
its obligations for the next 18 to 24 months provided the Company does not enter
into a business combination that provides the Company with business operations.
The Company's minimal cash position limits the Company in its future direction
because it does not have the ability to raise additional funds through
borrowings or equity offerings given its lack of business operations. The long
term survivability of the Company depends on whether or not the Company is able
to enter into a business combination that would provide the Company with
successful business operations.
The Company has no material commitments for capital expenditures.
RESULTS OF OPERATIONS
The Company had no significant operations during the fiscal quarter. Revenue
consists solely of interest income on the remaining cash on hand. Expenses are
generally related to the payment of professional fees in the preparation of
filings pursuant to the Securities Exchange Act of 1934, as amended, minimal
compensation to the Company's President, and one time write off of $10,000 bad
debt. This bad debt charge is the unsuccessful results of an attempt to attract
a merger candidate.
The Company is continually reviewing business combination proposals in an
ongoing effort to combine the Company with an organization which has successful
operations.
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SIGNATURES
In accordance with the requirements of the Securities Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Orion Financial, Ltd.
Dated December 12, 1998 /s/ Dean H. Boedeker
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Dean H. Boedeker
President and Principal Financial Officer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> DEC-31-1997
<CASH> 173,712
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 173,712
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 173,712
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 371,322
<OTHER-SE> (197,610)
<TOTAL-LIABILITY-AND-EQUITY> 173,712
<SALES> 0
<TOTAL-REVENUES> 3,292
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 23,699
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (20,407)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (20,407)
<EPS-PRIMARY> (0.004)
<EPS-DILUTED> 0
</TABLE>
