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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended December 31, 1998
Commission file number 001-03323
NEW HILARITY MINING COMPANY
(Exact name of registrant as specified in its charter)
IDAHO 82-0183199
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
601 W. Main Ave. Suite 814
Spokane, Washington
(Address of principal executive offices)
99201-3915
(Zip Code)
(509) 462-0315
(Registrant's Telephone Number, Including Area Code)
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 (X) No ( )
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of December 31, 1998: 7,989,560
****************************************************************************
Document Page 1 of 10
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PART I
ITEM 1 Statement of Financial Position as of December 31, 1998
and March 31, 1998
Statement of Operations for the Three and Nine Month
Periods Ended December 31, 1998 and December 31, 1997
Statement of Changes in Stockholders' Equity
for the Three Month Periods Ended December 31, 1998 and
December 31, 1997
Statement of Cash Flows for the Three and Nine Month
Periods Ended December 31, 1998 and December 31,1997
Notes to Financial Statements as of December 31, 1998
Document Page 2 of 10
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NEW HILARITY MINING COMPANY
Statement of Financial Position as of
December 31,1998 and March 31, 1998
<TABLE>
December 31, March 31,
1998 1998
_____________ _____________
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 55,895 $ -
Marketable securities, net of
allowance for unrealized loss
of $32,141 - 2,143
Prepaid expenses 15,992 -
Deferred tax asset - 4,821
_____________ _____________
TOTAL ASSETS $ 71,887 6,964
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Advances from shareholder S - $ 6,513
Advances from officer - 3,176
Accrued expenses 2,500 2,500
_____________ _____________
Total Current Liabilites 2,500 12,189
_____________ _____________
STOCKHOLDERS' EQUITY
Common stock, $.10 par value; 15,000,000
shares authorized, 7,989,560 shares
outstanding as of December 31, 1998
and 3,750,000 shares outstanding as
of March 31, 1998 798,956 375,000
Discount on common stock (251,584) -
Additional paid-in capital - 66,383
Accumulated deficit (477,985) (446,608)
_____________ _____________
Total Stockholders' Equity 69,387 (5,225)
_____________ _____________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 71,887 $ 6,964
============= =============
</TABLE>
Prepared by Management
The accompanying notes are an integral part of these financial statements.
Document Page 3 of 10
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NEW HILARITY MINING COMPANY
Statement of Operations for the Three and Nine Month Periods
Ended December 31, 1998 and December 31, 1997
<TABLE>
Three Month Periods Nine Month Periods
____________________________ ____________________________
December 31, December 31, December 31, December 31,
1998 1997 1998 1997
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ -
_____________ _____________ _____________ _____________
OPERATING EXPENSES 9,664 155 24,685 2,046
_____________ _____________ _____________ _____________
(LOSS FROM OPERATIONS) (9,664) (155) (24,685) (2,046)
OTHER INCOME (LOSS)
Loss on marketable
securities (2,043) - (2,043) -
Interest income 172 - 172 -
_____________ _____________ _____________ _____________
Total Other
Income (Loss) (1,871) - (1,871) -
_____________ _____________ _____________ _____________
(LOSS) BEFORE
PROVISION FOR
INCOME TAXES (11,535) (155) (26,556) (2,046)
_____________ _____________ _____________ _____________
PROVISION FOR INCOME
TAXES 4,821 - 4,821 -
_____________ _____________ _____________ _____________
NET (LOSS) (16,356) (155) (31,377) (2,046)
============= ============= ============= =============
NET (LOSS) PER SHARE $ (0.003) $ (NIL) $ (0.005) $ (NIL)
============= ============= ============= =============
</TABLE>
Prepared by Management
The accompanying notes are an integral part of these financial statements.
Document Page 4 of 10
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NEW HILARITY MINING COMPANY
Statement of Changes in Stockholders' Equity for
The Three Month Periods Ended December 31, 1998
And December 31, 1997
<TABLE>
Discount
Common Stock on Additional Accumu-
______________________ Common Paid-in lated
Shares Amount Stock Capital Deficit Total
__________ __________ __________ __________ __________ __________
<S> <C> <C> <C> <C> <C> <C>
Balances as
of Sept. 30,
1997 3,750,000 $ 375,000 $ - $ 66,383 $(443,778) $ (2,395)
Net (Loss) - - - - (155) (155)
__________ __________ __________ __________ __________ __________
Balances as
of Dec. 31,
1997 3,750,000 $ 375,000 $ - $ 66,383 $(443,933) $ (2,550)
========== ========== ========== ========== ========== ==========
Balances as
of Sept. 30,
1998 5,489,560 $ 548,956 $ (64,084) $ - $(461,629) $ 23,243
Common stock
issued for
cash at
$.025 per
share 2,500,000 250,000 (187,500) - - 62,500
Net (Loss) - - - - (16,356) (16,356)
__________ __________ __________ __________ __________ __________
Balances at
Sept. 30,
1998 7,989,560 $ 798,956 $(251,584) $ - $(477,985) $ 69,387
========== ========== ========== ========== ========== ==========
</TABLE>
Prepared by Mangement
The accompanying notes are an integral part of these financial statements.
Document Page 5 of 10
<PAGE>
NEW HILARITY MINING COMPANY
Statement of Cash Flows for the Three and Nine Month Periods
Ended December 31, 1998 and December 31, 1997
<TABLE>
Three Month Periods Nine Month Periods
____________________________ ____________________________
December 31, December 31, December 31, December 31,
1998 1997 1998 1997
_____________ _____________ _____________ _____________
<S> <C> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES
Net (Loss) $ (16,356) (155) (31,377) (2,046)
Add items not
requiring the use
cash: Issuance of
common stock for
expenses - - 12,128 -
Loss on marketable
securities 2,043 - 2,043 -
Decrease in
deferred tax asset 4,821 - 4,821 -
Decrease in prepaid
expenses 5,680 - 5,680 -
(Decrease) in accounts
payable (1,785) - - -
Increase (Decrease) in
advances from
officers (1,140) 155 - 2,046
_____________ _____________ _____________ _____________
Net Cash Used
From Operating
Activities (6,737) - (6,705) -
_____________ _____________ _____________ _____________
CASH FLOWS FROM
INVESTING ACTIVITIES
Proceeds from sale
of marketable
securities 100 - 100 -
_____________ _____________ _____________ _____________
CASH FLOWS FROM
FINANCING ACTIVITIES
Proceeds from sale
of common stock 62,500 - 62,500 -
_____________ _____________ _____________ _____________
NET INCREASE IN CASH 55,863 - 55,895 -
CASH AT BEGINNING OF
PERIOD 32 - - -
_____________ _____________ _____________ _____________
CASH AT END OF PERIOD $ 55,895 $ - $ 55,895 $ -
============= ============= ============= =============
</TABLE>
Prepared by Management
The accompanying notes are an integral part of these financial statements.
Document Page 6 of 10
<PAGE>
NEW HILARITY MINING COMPANY
Notes to Financial Statements
as of December 31, 1998
(Unaudited)
The financial statements of New Hilarity Mining Company included herein,
have been prepared without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission. Although certain information
normally included in financial statements prepared in accordance with
generally accepted accounting principles has been condensed or omitted,
New Hilarity Mining Company believes that the disclosures are adequate
to make the information presented not misleading. These financial
statements should be read in conjunction with the financial statements
and notes thereto included in New Hilarity Mining Company's annual report
on Form 10-K for the fiscal year ended March 31, 1998.
The financial statements included herein reflect all normal recurring
adjustments that, in the opinion of management, are necessary for a fair
presentation. The results for interim periods are not necessarily
indicative of trends or of results to be expected for a full year.
Document Page 7 of 10
<PAGE>
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
The Company sold its 857,100 shares of United Mines, Inc. common stock for
$100, realizing a loss of $2,043. The Board of Directors searched for a
buyer for these securities for about six months, hoping for a sale in the
vicinity of $2,000 to $3,000. When no buyer could be found within that price
range, the Board decided to sell the securities for $100. During October and
November of 1998, the Company sold 2,500,000 shares of it's common stock at
$ .025 per share to several accredited investors from the State of Washington
under a Regulation D, 506 private placement. The Company has no specific
purpose for these funds other than for general working capital requirements.
During December, 1998, the Company hired a contractor to remove waste rock
from a creek, which was the result of limited exploration mining activities
several decades ago. This work is anticipated to cost about $2,500, and when
completed, should totally satisfy any possible inquiries from any government
agency.
The Company incurred normal operating expenses during the quarter ended
December 31, 1998 of $9,664, after the sale of marketable securities, recorded
a reversal of a deferred tax asset ($4,821), which resulted in a provision
for income taxes (an income tax benefit had been recorded previously).
The Company has considered how the year 2000 issues (Y2K problem) may affect
its operations. First, the Company is relatively inactive, and therefore does
not keep any of its accounting records on the computer. Second, the Company
has discussed this issue with its independent stock transfer agent, and the
agent represented that they are ready for the year 2000. In short, the year
2000 issue would not have a material effect on the Company's business, results
of operations or financial condition.
Document Page 8 of 10
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PART II
ITEM 1 LEGAL PROCEEDINGS
NONE
ITEM 2 CHANGES IN SECURITIES
The company issued 2,500,000 shares of common stock for cash.
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
NONE
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5 OTHER INFORMATION
NONE
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
NONE
Document Page 9 of 10
<PAGE>
****************************************************************************
SIGNATURES
****************************************************************************
Pursuant to the requirements of Section 13 of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
New Hilarity Mining Company
(Registrant)
January 13, 1998 /s/ Terry Dunne
Dated:______________________ By: __________________________
Terry Dunne,
President
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following person on behalf of
the registrant and in the capacity and on the date indicated.
January 13, 1998 /s/ Terry Dunne
Dated:______________________ By: __________________________
Terry Dunne,
President
Document Page 10 of 10
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
NEW HILARITY MINING COMPANY
This schedule contains summary financial information extracted from the
Statement of Financial Condition at December 31, 1998 (Unaudited) and
the Statement of Income for the Three Month Period ended December 31,
1998 (Unaudited) and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Mar-31-1998
<PERIOD-END> Dec-31-1998
<CASH> 55,895
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 71,887
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 71,887
<CURRENT-LIABILITIES> 2,500
<BONDS> 0
0
0
<COMMON> 798,956
<OTHER-SE> (729,569)
<TOTAL-LIABILITY-AND-EQUITY> 69,387
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 9,664
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (11,535)
<INCOME-TAX> 4,821
<INCOME-CONTINUING> (16,356)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (16,356)
<EPS-PRIMARY> (0.003)
<EPS-DILUTED> (0.003)
</TABLE>
