SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the quarter ended September 30, 1998
Commission File No. 2-85845-D
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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)
16053 Via Viajera, Rancho Santa Fe, CA 92091 (619) 759-9123
(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:
September 30, 1998: 15,757,047
PART I - FINANCIAL INFORMATION
------------------------------
ITEM 1. FINANCIAL STATEMENTS.
- ------- --------------------
Financial Statements (unaudited) for quarter year ended September 30, 1998,
attached nd incorporated herein by reference. (See following pages)
<PAGE>
<TABLE>
<CAPTION>
SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
BALANCE SHEET -- September 30, 1998
Unaudited Audited
Sept. 30, 1998 June 30, 1998
-------------- -------------
ASSETS
- ------
<S> <C> <C>
CURRENT ASSETS:
Cash $ 0 $ 0
--------- ---------
$ 0 $ 0
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Accounts Payable 8,326 7,018
--------- --------
$ 8,326 $ 7,018
--------- ---------
SHAREHOLDERS' EQUITY (DEFICIENCY)
Common Stock: par value $.001
authorized 50,000,000 shares; issued
and outstanding: 15,757,047 shares $ 15,757 $ 15,757
Additional paid-in capital 748,230 748,230
--------- ---------
Retained earnings deficit:
From regular operations (617,286) (617,286)
Accumulated: developmental stage (155,027) (153,719)
--------- ---------
TOTAL SHAREHOLDERS' EQUITY $( 8,326) $( 7,018)
--------- ---------
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $ 0 $ 0
========= =========
The accompanying notes are an integral part of the financial statements.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
STATEMENT OF OPERATIONS -- September 30, 1998
Unaudited Unaudited
3 months ended 3 months ended
Sept. 30, 1998 Sept. 30, 1997
-------------- --------------
<S> <C> <C>
REVENUES: Miscellaneous income $ 0 $ 0
---------- ---------
EXPENSES: $ 1,308 $ 1,351
---------- ---------
NET INCOME (LOSS) $( 1,308) $( 1,351)
========== =========
NET (LOSS) PER COMMON SHARE $( .0000) $( .0004)
---------- ---------
COMMON SHARES OUTSTANDING 15,757,047 3,505,047
========== =========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-3-
<PAGE>
<TABLE>
<CAPTION>
SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
CASH FLOW STATEMENT -- September 30, 1998
Unaudited Unaudited
3 months ended 3 months ended
Sept. 30, 1998 Sept. 30, 1997
-------------- --------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $(1,308) $(1,378)
Increase (decrease) in accounts payable 1,308 677
Increase in accrued interest 0 674
------- -------
Net cash flows from operation $ 0 $( 27)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES: $ 0 $ 0
------- -------
Net cash flows from financing $ 0 $ 0
------- -------
CASH FLOWS F0R INVESTMENT ACTIVITIES: $ 0 $ 0
------- -------
Net cash flows for investments $ 0 $ 0
------- -------
NET INCREASE IN CASH AND CASH EQUIVALENT $ 0 $( 27)
Cash at beginning of period 0 26
------- -------
Cash at end of period $ 0 $( 1)
======= =======
</TABLE>
The accompanying notes are an integral part of the financial statements.
-4-
<PAGE>
<TABLE>
<CAPTION>
SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
STATEMENTS OF SHAREHOLDERSO EQUITY (DEFICIT) -- September 30, 1998
Total
Common Stock Additional shareholders'
------------------------ paid-in Accumulated equity
Shares Amount capital deficit (deficiency)
----------- ------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C>
BALANCES, June 30, 1998 #15,757,047 $15,757 $748,230 $(771,005) $(7,018)
NET INCOME (LOSS) from
Developmental Stage: Sept. 30, 1998 ( 1,308) (1,308)
----------- ------- -------- --------- -------
BALANCES, Sept. 30, 1997 #15,757,047 $15,757 $748,230 $(772,313) $(8,326)
=========== ======= ======== ========= =======
</TABLE>
The accompanying notes are an integral part of the financial statements.
NOTES TO FINANCIAL STATEMENTS -- September 30, 1998
The accounting policies followed by Company are set forth in the notes to
the CompanyOs audited financial statements in the Form 10-K Report filed for the
year ended June 30, 1998, which is incorporated by reference. Such policies have
been continued without change. Also, refer to those notes for details of the
CompanyOs 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 CompanyOs financial
position as of September 30, 1998, and the results of it operations and cash
flows for the three month period ended.
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<PAGE>
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 CompanyOs 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.
RESULTS OF OPERATION. The Company has not had any business operations
during the quarter year covered by this report. The CompanyOs pursuit of
business operations through acquisition by stock exchange or merger has not
materialized. No mergers are being negoitated.
PART II - OTHER INFORMATION
---------------------------
ITEM 3. EXHIBITS AND REPORTS ON FORM 8-K.
- ------- ---------------------------------
Exhibits:
--------
Exhibit 27 - Financial Data Schedule
Form 8-K:
--------
None.
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: October 2, 1998 By: /s/ David L. Jackson
---------------------------------------
David L. Jackson, President, Chief
Executive Officer and Director
Dated: October 2, 1998 By: /s/ T.M. Jackson
---------------------------------------
T. M Jackson, Secretary and Director
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
REGISTRANT'S FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED
IN ITS ENTIRETY TO SUCH FORM 10-Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> SEP-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 8,326
<BONDS> 0
0
0
<COMMON> 15,757
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,308
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,308)
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
