SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549.
FORM 10-Q.
Fiscal Quarter: December 31, 1999. Commission File #0 - 12493.
THE VIOLA GROUP, INC.
(Exact name of registrant as specified in its charter).
New York
State of Incorporation 13-3134389.
IRS Employer ID. Number
1653 Haight Avenue, Bronx, New York 10461-1503.
(Address of Principal Executive Offices) (Zip Code).
Registrant's Telephone number with area code: (718) 409-6599
Securities filed pursuant to Section 12(g) of the Act:
Common, $.01 par value
Title of Class
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 registrants was required to file such reports and (2) has
been subject to such filing requirements of the past 90 days. YES____X__.
NO________.
As of February 10, 2000, The Viola Group, Inc. had 2,000,000
shares of common stock outstanding.
THE VIOLA GROUP, INC.
10-Q QUARTERLY FOR QUARTER ENDED December 31, 1999.
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
The Viola Group, Inc.
1653 Haight Avenue
Bronx, New York 10461-1503
We have reviewed the accompanying balance sheet of the Viola
Group, Inc. as of December 31, 1999 and 1998 and the related statements
of income, and retained deficit for the three and six months then
ended in accordance with standards established by the American
Institute of Certified Public Accountants. All information included in
these financial statements is the representation of the management of
The Viola Group, Inc.
A review consists primarily of inquires of company personnel
and analytical procedures applied to the financial data. It is
substantially less in scope than an audit in accordance with generally
accepted auditing standards, the objective of which is the expression
of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the accompanying financial
statements in order for them to be in conformity with generally accepted
accounting principles.
The financial statements for the year ended June 30, 1999
were examined by us and we expressed an unqualified opinion on them
in my report dated August 4, 1999, but we have not performed any
auditing procedures since that date.
SCRUDATO & CO.
February 8, 1999
The Viola Group, Inc.
Balance Sheet
December 31, 1999 and 1998
and June 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C>
12/31/99 12/31/98 06/30/99
Assets:
Cash $1,296 $2,116 $1,105
Total Assets $1,296 $2,116 $1,105
Liabilities:
Income Taxes $6,800 $6,800 $6,800
Total Liabilities 6,800 6,800 6,800
Stockholders' Deficit:
Common Stock, par
value $ .01 per share
authorized 2,000,000
shares, issued and
outstanding 2,000,000
shares 5,000 5,000 5,000
Contributed Capital 363,023 363,023 363,023
Retained Deficit (373,127) (372,307) (373,318)
(5,104) (4,284) (5,295)
Less: Treasury stock,
at cost 400 400 400
Total Stockholders'
Deficit (5,504) (4,684) (5,695)
Total liabilities
& stockholders' deficit $1,296 $2,116 $1,105
</TABLE>
"See accompanying accountants' report"
The Viola Group, Inc.
Statement of Operations and Retained Deficit
For the three and six months ended December 31, 1999 and 1998
and year ended June 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
10/1-12/31/99 7/1-12/31/99 7/1-12/31/98 7/1/98-6/30/99
Sales (net) $2,000 $2,000 $500 $500
Cost of Sales
Beginning Inventory 0 0 0 0
Purchases 0 0 0 0
Wages 0 0 0 0
Payroll Taxes 0 0 0 0
Rent 0 0 0 0
Utilities 0 0 0 0
Other Direct Costs 0 0 0 0
Ending Inventory 0 0 0 0
Total Cost of Sales 0 0 0 0
Gross Profit 2,000 2,000 500 500
General and Administrative
Telephone 89 89 0 921
Insurance 0 0 0 0
Office 220 220 589 679
Computer Expense 1,500 1,500 0 0
Employee Benefits 0 0 0 0
Professional Fees 0 0 0 0
Consultants 0 0 0 0
Registration expense 0 0 0 0
Total General 1,809 1,809 589 1,600
Other Expenses (Income)
Discontinued Operations
(Note 1) 0 0 0 0
Interest Expense 0 0 0 0
Total Other Expenses 0 0 0 0
Net Income(Loss) 191 191 (89) (1,100)
Retained Deficit,
Beginning (373,318) (373,318) (372,218) (372,218)
Retained Deficit,
Ending ($373,127) ($373,127) ($372,307) ($373,318)
Dividends per share $0 $0 $0 $0
Loss per Share $0.00 $0.00 $0.00 $0.00
</TABLE>
"See accompanying accountants' report"
The Viola Group, Inc.
Statement of Cash Flow
For the three and six months ended December 31, 1999 and 1998
and year ended June 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
10/1-12/31/99 7/1-12/31/99 7/1-12/31/98 7/1/97-6/30/99
Cash Flows
from Operating
Activities:
Net Income (Loss) $191 $191 ($89) ($1,100)
Adjustments to reconcile
net income to cash
provided by (used in)
Operating activities:
Changes in operating assets
and liabilities:
Accounts Receivable 0 0 0 0
Inventory 0 0 0 0
Deferred Expenses 0 0 0 0
Accounts Payable -
Tax Liability 0 0 0 0
Notes Payable 0 0 0 0
Net cash provided by
(used in) operating activities
Contributed Capital-payment
of tax liability 0 0 0 0
Cash flows from liquidation
of assets 0 0 0 0
Net increase
(decrease) in cash 191 191 (89) (1,100)
Cash, Beginning 1,105 1,105 2,205 2,205
Cash, Ending $1,296 $1,296 $2,116 $1,105
</TABLE>
"See accompanying accountants' report"
The Viola Group, Inc.
Notes to Financial Statements
For the periods ended December 31, 1999 and 1998
and June 30, 1999
Note 1: Summary of Significant Accounting Policies
Summary of the Company's significant accounting policies is described below.
General Information
The Viola Group, Inc. was organized under the laws of the
state of New York on
October 14, 1982. It's initial line of business was
Corporate Financial Consulting including the creation of turnkey
leveraged buyouts. Also through the initial sale of common stock,
the company participated in several of its own leveraged buyouts.
Since April 1, 1998 the company has restarted operations
in its initial line of business.
Income Taxes
The company shows no tax accrual or deferred income taxes
due to a net operating loss of $ 373,551 as of July 1, 1998 which
can be used to offset future federal taxable income.
Note 2: Tax Liabilities
As of June 8, 1998 the president of the company,
Mr. Arthur Viola has paid off $ 15,491 of tax liabilities and
has elected to treat these payments as permanent contributions
to the corporation. The balance of $ 6,800 represents minimum tax
payments due to the State of New York for inactive periods between
1989 and the present. The company is currently negotiating penalties
and interest on the prior tax liabilities previously determined
by federal and state taxing authorities to be an additional
$ 21,115. This is currently not reflected in the liabilities as
reported on the balance sheet until an adjusted amount can be reasonably
estimated.
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
Registrant, through the services of its
President, Arthur D. Viola, performed a Corporate Financial Consulting
assignment during this quarter. The assignment produced revenues of $2,000
for the registrant, and a net profit of $191. Management continues to
search for means of engaging in expanded active operations by merger or
acquisition. Although financial resources at hand are inadequate for a
significant acquisition by cash, such resources appear adequate for
anticipated administrative costs.
ITEM 3. DISCLOSURES OF MARKET RISK
NONE
PART II-OTHER INFORMATION
ITEM 1-LEGAL PROCEEDINGS
The Company has not been informed that any legal proceedings were
commenced against it during the quarter concerned. Nor were any legal
actions commenced by the Company.
ITEM 2-CHANGES IN SECURITIES
No changes in securities issued occurred during the Quarter.
No changes in registered securities were made during the Quarter.
ITEM 3- SENIOR SECURITIES
No senior securities were issued in the Quarter concerned.
ITEM 4- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No special stockholder meetings were held during the quarter.
ITEM 5-OTHER INFORMATION
None
ITEM 6- EXHIBITS THIS REPORT:
Exhibit 27- FINANCIAL DATA SUMMARY
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, The
Registrant has duly caused this Report to be signed by the duly authorized
officer shown below:
/s/ Arthur D. Viola, M. B. A.
President & Treasurer.
<TABLE> <S> <C>
<ARTICLE>5
<LEGEND>
THIS SCHEDULE CONTAINS QTR. SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE COMPANY'S
BALANCE SHEET AND STATEMENT
OF OPERATIONS FOR PERIOD ENDED Dec 31.1999
</LEGEND>
<MULTIPLIER>1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> OCT-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 1,296
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,296
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,296
<CURRENT-LIABILITIES> 6,800
<BONDS> 0
0
0
<COMMON> 5,000
<OTHER-SE> (373,127)
<TOTAL-LIABILITY-AND-EQUITY> 1,296
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-BASIC> (5.504)
<EPS-DILUTED> (5.504)
</TABLE>
