SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the quarter year ended
December 31, 1996 and 1995
Commission File No. 2-85845-D
______________________________________________________________________________
SILVERTHORNE PRODUCTION COMPANY
(Exact name of Registrant as specified in its charter)
COLORADO 84-0189377
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
708 Margarita Ave, Coronado, CA 92118 (619) 522-0010
(Current address of principal executive office) (Registrant s telephone
No. with area code)
Indicate by check mark whether 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
Registrant was required to file such reports, and (2) has been subject to
such filing requirements for the past 90 days.
[x] Yes [ ] No
The number of shares outstanding of each class of Registrant s classes
of Common Stock ($.001 par value)as of end of period covered by report was:
December 31, 1995: 3,580,047
December 31, 1996: 3,505,047
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS.
Financial Statements (unaudited) for quarter year ended December 31, 1996
and December 31, 1995, attached and incorporated herein by reference. (See
following pages)
SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
BALANCE SHEET -- December 31, 1996 & 1995
Unaudited Audited Unaudited Audited
Dec 31 June 30 Dec 31 June 30
1996 1996 1995 1995
ASSETS ---- ---- ---- ----
CURRENT ASSETS:
Cash $ 0 $ 0 $ 0 $ 138
Treasure State Pipeline 0 300,000 300,000 300,000
Deferred feasibility costs 0 0 107,999 107,999
------- -------- -------- --------
$ 0 $300,000 $407,999 $408,137
======== ======== ======== ========
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES:
Notes Payable $22,000 $ 22,000 $ 72,000 $ 72,000
Accrued interest 9,409 8,245 12,323 11,732
Bank Overdraft 2 9 10 0
Accounts Payable 73,951 65,369 66,472 57,890
------- -------- -------- --------
$105,362 $ 95,623 $146,158 $141,622
________ ________ ________ ________
SHAREHOLDERS EQUITY
(DEFICIENCY)
Common Stock, par value
$.001; authorized 50,000,000
shares; 3,580,047 shares
issued & outstanding: $ 3,505 $ 3,580 $ 3,580 $ 3,580
Additional paid-in capital 607,332 907,257 907,257 907,257
-------- -------- -------- --------
Retained earnings deficit:
From regular operations ( 617,286) ( 617,286) (617,286) ( 617,286)
Accumulated: developmental
stage ( 99,321) ( 89,174) ( 36,357) ( 27,036)
-------- -------- ------- -------
( 716,607) ( 706,460) (648,996) ( 644,322)
________ ________ ________ ________
TOTAL SHAREHOLDERS EQUITY $ 194,230 $ 204,377 $260,351 $266,515
________ ________ ________ ________
TOTAL LIABILITIES
AND SHAREHOLDERS EQUITY $ 0 $ 300,000 $407,999 $408,137
========= ======== ======== ========
The accompanying notes are an integral part of the financial statements.
SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
STATEMENT OF OPERATIONS -- December 31, 1996 & 1995
Unaudited Unaudited Unaudited
6 months ended 6 months ended 6 months ended
Dec 31, 1996 Dec 31, 1995 Dec 31, 1994
REVENUES: $ 0 $ 0 $ 0
Decrease in accrued interest 0 0 0
________ ________ ________
EXPENSES: 10,147 4,526 6,888
NET INCOME (LOSS) $( 10,147) $( 4,526) $( 6,888)
======== ======== ========
NET (LOSS) PER COMMON SHARE $ .0029 $ .0013 $ .0019
========= ========= =========
COMMON SHARES OUTSTANDING 3,505,047 3,580,047 3,580,047
========= ========= =========
The accompanying notes are an integral part of the financial statements.
SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
CASH FLOW STATEMENT -- December 31, 1996 & 1995
Unaudited Unaudited Unaudited
6 months ended 6 months ended 6 months ended
Dec 31, 1996 Dec 31, 1995 Dec 31, 1995
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (loss) $( 10,147) $( 4,526) $( 6,888)
Increase (decrease) in
accounts payable 8,582 3,347 4,077
Increase in accrued interest 1,164 1,179 2,820
---------- ------------ ----------
Net cash flows from operation$( 401) $ 0 $( 21)
________ ________ ________
CASH FLOWS FROM FINANCING
ACTIVITIES:
Paid in capital $ 0 $ 0 $ 0
Increase in notes payable 0 0 0
-------- -------- --------
Net cash flows from financing$ 0 $ 0 $ 0
________ ________ ________
CASH FLOWS F0R INVESTMENT
ACTIVITIES:
Purchase of fixed assets $ 0 $ 0 $ 0
Deferred feasibility costs 0 0 0
-------- -------- --------
Net cash flows for
investments $ 0 $ 0 $ 0
________ ________ ________
NET INCREASE IN CASH AND
CASH EQUIVALENT $( 401) $ 0 $ 0
Cash at beginning of period 399 ( 10) 9
-------- -------- --------
Cash at end of period $( 2) $( 10) $( 12)
======== ======== ========
The accompanying notes are an integral part of the financial statements.
SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIT) --December 31,
1996 & 1995
Total
Additional shareholders
-------Common Stock----- paid-in Accumulated equity
Shares Amount capital deficit (deficiency)
------ ------ ------- ------- ------------
BALANCES,
June 30,
1995 #3,580,047 $ 3,580 $907,257 $(644,322) $ 266,515
NET INCOME
(LOSS) from
Developmental
Stage: Dec 31,
1995 ( 4,564) ( 4,564)
---------- -------- -------- --------- ---------
BALANCES,
Dec 31, 1995 #3,580,047 $ 3,580 $907,257 $(648,886) $ 261,951
======== ======== ========= ========= ========
BALANCES,
June 30,
1996 #3,505,047 $ 3,505 $907,257 $( 706,640) $ 204,377
NET INCOME
(LOSS) from
Developmental
Stage: Dec 31,
1996 ( 10,147) ( 0,147)
Redemption/
reversal ( 75,000) ( 75) ( 299,925)
-------- ------ ------- ------- ------
BALANCES,
Dec 31,
1996 #3,505,047 $ 3,550 $ 607,332 $ ( 716,607) $ 194,230
======== ======== ========= ========= ========
The accompanying notes are an integral part of the financial statements.
NOTES TO FINANCIAL STATEMENTS -- December 31, 1996 and 1995,
The accounting policies followed by Company are set forth in the notes to
the Company s audited financial statements in the Form 10-K Report filed for
the year ended June 30, 1996 and June 30, 1995, which is incorporated by
reference. Such policies have been continued without change. Also, refer to
those notes for details of the Company s financial condition, results of
operations and cash flows. All material items in those note have not changed.
In the opinion of management, the accompanying interim financial
statements contain all adjustments necessary to present fairly the Company s
financial position as of December 31, 1996 and December 31, 1995, and the
results of it operations and cash flows for the three month period ended.
Item 2. MANAGEMENT S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION.
As of March 31, 1989, the Company had returned to a developmental stage
company. The Company s financial condition did not change materially during
the quarter covered by this report.
Liquidity. The Company s liquidity did not change materially during
the quarter year covered by this report. Company had no material liquid
assets at the beginning nor at the ending.
Capital Resources. The Company had no commitments for any capital
expenditures nor increases in capital resources during the quarter year
covered by this report. November 20, 1996, Company reversed a prior
transaction whereby Company re-conveyed the Treasure State Pipeline asset in
exchange for redemption of 75,000 shares of Company common stock
Results of Operation. The Company has not had any business operations
during the quarter year covered by this report. The Company s pursuit of
business operations through acquisition by stock exchange or merger has not
materialized. No mergers are being negotiated.
PART II - OTHER INFORMATION
Item 3. EXHIBITS AND REPORTS ON FORM 8-K.
Company received certain property known as Treasure State Pipeline,
located in Toole County, Montana, an asset booked and valued at $300,000.
This transaction was completed January 7, 1992 in exchange for 75,000 shares
of Company common stock. The pipeline did not generate income for
Company. Attempts to sell the pipeline did not materialize. November 20,
1996, parties to the original transaction consummated an agreement whereby
the 75,000 shares of Company common stock was redeemed in exchange for
re-conveyance of the pipeline.
Former Company President/Director, David M. Anderson resigned as
officer and director as of November 20, 1996. D.L. Jackson ascended from
Vice President to President/CEO. By Action In Lieu of Special Meeting of
Board of Directors, November 20, 1996, P.A. Jackson was appointed director
to fill said vacant directorship. D.L. Jackson will continue as General Legal
Counsel for Company.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
officers, undersigned, thereunto duly authorized.
SILVERTHORNE PRODUCTION COMPANY
Dated: 3/14/98 /s/ D. L. Jackson
By: ______________________________________
D.L. Jackson, President, Chief Executive Officer and
Director
Dated: 3/14/98 /s/ T. M. Jackson
By: ______________________________________
T.M. Jackson, Secretary and Director
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<LEGEND>
This schecdule contains summary financial information
extracted from form 10-Q for this period ended
December 31, 1997 and is qualified in its entirety
by reference to such form 10-Q.
</LEGEND>
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<PERIOD-TYPE> 6-MOS
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<PERIOD-END> DEC-31-1996
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