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
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
1,300,786 shares of common stock par value $.001 -
September 30, 1995
<TABLE>
<CAPTION>
CAPLAN CORPORATION
Balance Sheets
(Unaudited)
September 30, June 30,
ASSETS 1995 1995
- --------------------------------- ------------- -------------
<S> <C> <C>
Current Assets:
Cash and temporary cash investments $118,536 $117,156
Accounts receivable - trade 2,798 3,826
Accounts receivable - affiliate 1,879 2,176
Current portion of note receivable 1,064 1,575
Accrued interest receivable 0 86
------- -------
Total current assets 124,277 124,819
------- -------
Property and Equipment:
Oil and Gas properties
(successful efforts method) 591,555 591,555
Less - Accumulated depletion, depre-
ciation & amortization & valuation
allowances (581,162) 580,450
------- -------
Net property and equipment 10,393 11,105
------- -------
Note receivable - net of current
portion 15,844 15,844
------- -------
Total Assets $150,514 $151,768
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current Liabilities:
Accounts Payable and accrued
liabilities $5,790 $6,746
Accounts payable - affiliate 1,250 4,190
------- ------
Total current liabilities 7,040 10,936
------- ------
Stockholders' Equity:
Preferred stock, $.001 par value,
10,000,000 shares authorized;
1,500,000 shares issued and
outstanding 1,500 1,500
Common stock, $.001 par value,
100,000,000 shares authorized;
1,300,786 and 1,300,784 shares
issued and outstanding, respec-
tively 1,300 1,300
Additional paid-in capital 1,387,149 1,387,149
Accumulated deficit (1,246,475) (1,249,117)
--------- ---------
Total stockholders' equity 143,474 140,832
--------- ---------
Total liabilities and stock-
holders' equity $150,514 $151,768
========= =========
<FN>
See accompanying notes to financial statements
</FN>
</TABLE>
<TABLE>
<CAPTION>
CAPLAN CORPORATION
Statements of Operations
(Unaudited)
Three Months Three Months
Ended Ended
September 30, September 30,
1995 1994
------------ ------------
<S> <C> <C>
Revenues:
Oil and gas sales $12,976 $9,904
Interest & other income 1,236 839
Distributions from limited
partnership 0 5,000
------ -------
Total revenues 14,212 15,743
------ -------
Costs & Expenses:
Production expenses 7,299 6,699
Depletion, depreciation and
amortization & valuation provision 712 2,013
General & administrative expenses 3,560 14,095
------ ------
Total costs and expenses 11,571 22,807
------ ------
Net Income (Loss) 2,641 (7,064)
====== ======
Weighted average number of common
shares outstanding 1,300,786 1,300,786
========= =========
Net Income (Loss) Per Common Share $ .01 $ (.01)
======== ========
<FN>
See accompanying notes to financial statements
</FN>
</TABLE>
<TABLE>
<CAPTION>
CAPLAN CORPORATION
Statements of Cash Flows
(Unaudited)
Three Months Three
Months
Ended Ended
September 30, September
30,
1995 1994
------------
- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from oil & gas sales $14,301
$9,309
Interest received 1,322
872
Note collection - principal 511
352
Cash paid for production, exploration
and operating expenses (14,754)
(11,937)
-------
- -------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 1,380
(1,404)
-------
- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Cash paid for property & equipment 0
0
-------
- -------
NET CASH PROVIDED BY INVESTING ACTIVITIES 0
0
-------
- -------
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 1,380
(1,404)
-------
- -------
CASH & CASH EQUIVALENTS, BEGINNING
OF PERIOD 117,156
78,009
-------
- -------
CASH AND CASH EQUIVALENTS, END OF PERIOD 118,536
76,605
=======
=======
<FN>
See accompanying notes to financial statements
</FN>
</TABLE>
<TABLE>
<CAPTION>
CAPLAN CORPORATION
Statements of Cash Flows (continued)
(Unaudited)
Three Months Three
Months
Ended Ended
September 30, September
30,
1995 1994
------------
- ------------
<S> <C> <C>
RECONCILIATION OF NET INCOME (LOSS)
TO NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES
Net income (loss) $2,641
$(7,064)
-------
- --------
Adjustments to net income:
Depletion, depreciation & amortization
and valuation provisions 712
2,013
Distribution from limited partnership 0
(5,000)
Changes in assets and liabilities:
Decrease (increase) in accounts receivable 1922
(210)
Increase (decrease) in accounts payable (3,895)
8,857
------
- -------
1,261
5,660
------
- -------
Net cash provided by (used in) operating
activities 1,380
(1,404)
======
======
SCHEDULE OF NONCASH INVESTING AND
FINANCING ACTIVITIES $0.00
$0.00
=======
=======
<FN>
See accompanying notes to financial statements
</FN>
</TABLE>
CAPLAN CORPORATION
Notes to Financial Statements
September 30, 1995
(Unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
- ------------------------------------------------
General
- -------
The financial statements, management's discussion and these notes
to financial statements are condensed and should be read in
conjunction with the financial statements and notes thereto
included in the Company's annual report to shareholders and Form
10-K for the year ended June 30, 1995.
The financial information contained herein is unaudited but, in
the opinion of the management of Caplan Corporation, includes all
adjustments necessary to a fair presentation of the results of
operations for the periods indicated. The results for the three
month periods ended September 30, 1995 and 1994, are not
necessarily indicative of the results to be expected for the full
year.
The accompanying unaudited condensed financial statements have
been prepared in accordance with the instructions for Form 10-Q
and therefore do not include all information necessary for a fair
presentation of financial position and results of operations in
conformity with generally accepted accounting principles.
Organization
- ------------
Caplan Corporation (the Company) was incorporated under the laws
of the State of Delaware on July 5, 1983 for the purpose of
participating in oil and gas activities in the United States. In
June, 1987, the stockholders approved a three-to-one reverse
split of the issued and outstanding shares of the Company's
common stock and warrants. As a result of the reverse stock
split, the number of issued and outstanding shares decreased to
1,300,786 while the par value of each share remained $.001.
Presentation
- ------------
The financial statements include the accounts of the Company and
a 20% limited partnership interest in Fairmont Natural Gas
Pipeline, Ltd. accounted for using the cost method for the year
ended June 30, 1994. The 20% limited partnership interest in
Fairmont Natural Gas Pipeline, ltd. was sold during the year
ended June 30, 1995.
Property and Equipment
- ----------------------
The Company follows the "successful-efforts" method of accounting
for its oil and gas properties. Under this method of accounting,
all property acquisitions costs and costs to drill and equip
exploratory wells are capitalized when incurred, pending
determination of whether the well has resulted in the discovery
of proved reserves. The costs of drilling and equipping any
exploratory wells which do not find proved reserves, net of any
salvage value, are charged to expense. The costs of development
wells are capitalized, whether the well is productive or
nonproductive. The acquisition costs of unproved properties are
assessed at least annually for impairment of value, and if such
impairment is indicated, a loss is recognized by providing a
valuation allowance. Geological and geophysical costs and the
costs of carrying and retaining undeveloped properties (including
delay rentals) are expensed as incurred.
Depletion and depreciation are computed separately on each
individual property. Proved leasehold costs are deleted on the
unit-of-production method over the estimated total proved
reserves of the individual properties. Completed well costs are
depreciated on the unit-of-production method over the estimated
proved developed reserves of the individual properties.
Depreciation of furniture, fixtures and automobiles if provided
using the straight-line method over their estimated useful lives.
Maintenance and repairs are charged to expense when incurred, and
renewals and betterments are capitalized. When a property is
retired, sold or otherwise disposed of, the related costs and
accumulated depletion and depreciation are removed from the
accounts, and any gain or loss realized on the disposition is
recognized.
Cash Equivalents
- ----------------
For purposes of the Statement of Cash Flows, cash equivalents
include all highly liquid investments with original maturities of
three months or less.
Income (Loss) Per Common Share and Other
- ----------------------------------------
Income (Loss) per share has been computed based on the weighted
average number of shares outstanding at the end of each month in
the period. Common stock equivalents have not been included in
the computation as their effect would decrease the loss per
share.
Certain amounts previously reported have been reclassified to
conform with current classifications.
CAPLAN CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Liquidity and Capital Resources
- -------------------------------
The Company's liquidity position increased from June 30, 1995 to
September 30, 1995 resulting primarily from a decrease in
accounts payable and an increase in cash during the first
quarter.
The reserves the Company has discovered or acquired provide a
base upon which the Company could borrow funds should the need
arise. However, current economic condition in the oil and gas
industry have caused financial institutions to severely restrict
borrowing of this nature and as such could limit the amount of
outside financing the Company could obtain in this fashion. The
Company's current cash flow is sufficient to continue existing
operations and allow for marginal investment in additional oil
and gas wells. Major acquisitions of any nature will require
private funding through stock placement or financing.
Results of Operations
- ---------------------
Revenue from oil and gas sales for the three month period ended
September 30, 1995 increased 30% as compared with the same period
ended in the prior year. This is the result of a 38% increase in
the net equivalent barrels of production sold which is offset by
a 5% decrease in the net equivalent price per barrel.
Interest income decreased 27% during the three month period ended
September 30, 1995 as compared with the same period ended in the
prior year. This decrease is the result of interest earned from
the note receivable acquired during the prior year declining as
the note is collected.
Production expense for the current quarter increased 9% as
compared to the same period ended in the prior year. The
increase is attributed primarily to increased operating costs
incurred.
General and administrative expenses decreased 75% during the
three month period ended September 30, 1995 as compared with the
same period in the prior year. In general there were decreases
in legal, audit and printing costs regarding general and
administrative expenses.
Depletion, depreciation and amortization and valuation expense
(DD&A) decreased 64% during the three month period ended
September 30, 1995 in relation to the same period last year.
The information furnished herein reflects all adjustments
(consisting only of normal recurring accruals) necessary to a
fair statement of the results of the interim period.
- -----------------------------------------------------------------
- ----------
PART II. OTHER INFORMATION
- -----------------------------------------------------------------
- ----------
Item 6. Exhibits and Reports on Form 8-K.
- -----------------------------------------
(b) During the quarter ended September 30, 1995, the Company did
not file any report on Form 8-K.
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
CAPLAN CORPORATION
(Registrant)
10/18/95 Ronnie Hinze, President
Date (Signature)
