UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549.
FORM 10-Q
Fiscal Quarter: September 30, 1999. Commission File # 0-12493.
THE VIOLA GROUP, INC.
(Exact name of registrant as specified in its charter).
New York 13-3134389.
State of Incorporation X 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, $0.01 par value
Title of Class
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed bv Section 13 or 15(d) of be Securities
Exchange Act of 1934 during the preceding 12 months or for such shorter
period that the registrants was requfred to file such reports and (2)
has been subject to such filing requirements of the past 90 days.
YES___X__. NO____.
As of November 17, 1999, The Viola group, Inc. had 2,000,000
shares of common stock outstanding.
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE VIOLA GROUP
Financial Statements
with
Accountant's Review Report
for the
Periods Ending September 30, 1999 and 1998
<PAGE>
Scrudato & Co.
Certified Public Accountants
7 Valley Drive
Califon, New Jersey 07830
(800) 882-8808
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 September 30, 1999 and 1998 and the related
statements of income, and retained deficit for the three 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 or 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
exarnined 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.
/s/ SCRUDATO & Co.
___________________
SCRUDATO & Co.
November 15,1999
The Viola Group, Inc.
Balance Sheet
September 30, 1999 and 1998
and June 30, 1999
<TABLE>
<CAPTION>
<S> <C> <C> <C>
9/30/99 9/30/98 6/30/99
Assets:
Cash $1,105 $2,026 $1,105
Total $1,105 $2,026 $1,105
Liabilities:
Income Taxes $6,800 $6,800 $6,800
Total LIabilites $6,800 $6,800 $6,800
Stockholder's 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 (373,318) (372,397) (373,318)
(5,295) (4,374) (5,295)
Less: Treasury stock, at cost 400 400 400
Total Stockholders' Deficit (5.695) (4.774) (5.695)
Total liabilities & shareholders' defict $1,105 $2,026 $1,105
"See accompanying accountants' report"
The Viola Group. Inc.
Statment of Operations and Retained Deficit
For the periods ended September 30, 1999 and 1998
and the year ended June 30, 1999
7/1-9/30/99 7/1-9/30/99 7/1/98-6/30/99
Sales(net) $0 $0 $500
Cost of Sales
Beginning Inventory 0 0 0
Purchases 0 0 0
Wages 0 0 0
Payroll Taxes 0 0 0
Rent 0 0 0
Utilities 0 0 0
Other Direct Costs 0 0 0
Ending Inventory 0 0 0
_____ _____ _____
Total Cost of Sales 0 0 0
_____ _____ _____
Gross Profit 0 0 0
_____ _____ _____
General Administration
Telephone 0 0 971
Insurance 0 0 0
Office 0 179 679
Employee Benefits 0 0 0
Professional Fees 0 0 0
Consultants 0 0 0
Registration Expense (Income) 0 0 0
Total General 0 179 1000
Other Expenses (Income)
Discontinued Operations (Note 1) 0 0 0
Interest Expense 0 0 0
_____ _____ _____
Total Other Expenses 0 0 0
_____ _____ _____
Net lncome 0 (179) (1,100)
Retained Deficit, Beginning (373,315) (372,218) (371,218)
Retained Deficit, Ending (5,373,318) (537,397) (5,373,338)
Dividends per share $0 $0 $0
Loss per Share $0 $0 $0
"See accompanying accountants' report"
The Viola Group. Inc.
Statment of Cash Flow
For the three months ended September 30, 1999 and 1998
and the year ended June 30, 1999
7/1-9/30/99 7/1-9/30/99 7/1/98-6/30/99
Cash Flows from Operating
Activities:
Net Income (Loss) 0 ($179) ($1,lOO)
Adjustments to reconcile
net income to cash
provided by ( )
operating activities
Changes in operating assets
and liabilities:
Accounts Receivable 0 0 0
Inventory 0 0 0
Deferred Expenses 0 0 0
Accounts Payable - Tax Liability 0 0 0
Notes Payable 0 0 0
----- ----- -----
Net cash provided by
(used in) operating activities
Contributed Capital-payment of
tax liability 0 0 0
Cash flows from liquidation
of assets 0 0 0
----- ----- -----
Net increase
(decrease) in cash 0 (179) (1,1O0)
Cash Beginning 1,105 2,205 2,205
Cash Ending 1,105 2,025 1,105
</TABLE>
"See accompanying accountants' report"
The Viola Group. Inc.
Statment of Operations and Retained Deficit
For the periods ended September 30, 1999 and 1998
and the year ended 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 sate 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.
Nnte 2 Tax Liabilities
As of June 8, 1998 the president of the company, Mr. Arthur Viola had
paid off $15,491 of tax liabilties and had 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 established.
THE VIOLA GROUP
10-Q QUARTERLY FOR QUARTER ENDED SEPTEMBER 30, 1999.
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Registrant did not conduct any operation during this quarter.
Management continues to search for means of engaging in active operation
by merger or acquisition. Although financial resources at hand or inadequate
for a significant orottisition hv cash, such resources appear adequate for
antidpated administrative costs.
PART II - OTHER INFORMATION
ITEM 1. 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. No changes in securities issued occurred during the quarter.
ITEM 3. No changes in registered securites were made during the quarter.
ITEM 4. No senior securities were issued in the quarter concerned.
ITEM 5. No special stockholder meetings were held during the quarter.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) EXHIBITS
None
(b) REPORTS ON FORM 8-K
None
Pursuant to the requirements of the Securities Exchange Act of 1934,
The Registrant has duly caused this report to be siqned by the duly
authorized officer shown below:
/s/ Arthur D. Viola
---------------------
Arthur D. Viola
President & Treasurer
<TABLE> <S> <C>
<ARTICLE>5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM THE COMPANY'S
BALANCE SHEET AND STATEMENT
OF OPERATIONS FOR PERIOD ENDED Sept-30-1999.
</LEGEND>
<MULTIPLIER>1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 1,105
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,105
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,105
<CURRENT-LIABILITIES> 6,800
<BONDS> 0
0
0
<COMMON> 5,000
<OTHER-SE> (373,318)
<TOTAL-LIABILITY-AND-EQUITY> 1,105
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
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<EXTRAORDINARY> 0
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<EPS-BASIC> (5.695)
<EPS-DILUTED> (5.695)
</TABLE>
