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U.S. 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 quarterly period ended December 31, 1998
Commission File Number: 2-85845-D
Silverthorne Production Company
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(Exact name of Registrant as specified in its charter)
Colorado 84-0189377
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(State of other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
16053 Via Viajera, Rancho Santa Fe, California 92091
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(Address of principal executive offices including zip code)
(619) 759-9123
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(Registrant's telephone number)
Indicated 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
As of December 31, 1998, 15,757,047 shares of common stock, $.001 par value,
were outstanding.
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INDEX
PAGE
NUMBER
Part I. Financial Information
Item I. Financial Statements 3
Balance Sheet as of December 31, 1998
(Unaudited) and June 30, 1998 (Audited) 3
Statement of Operations for Three Months
ended December 31, 1998 and 1997 (Unaudited)
and Six Months ended December 31, 1998 and
December 31, 1997 (Unaudited) 4
Statement of Cash Flows for Six Months
ended December 31, 1998 and 1997 (Unaudited) 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of
Operations 7
Part II. Other Information 8
Item 1. Legal Proceedings 8
Item 2. Changes in Securities 8
Item 3. Defaults upon Senior Securities 8
Item 4. Submission of Matters to a Vote of Security
Holders 8
Item 5. Other Information 8
Item 6. Exhibits and Reports on Form 8-K 8
Signatures 9
2
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SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
BALANCE SHEETS
Unaudited Audited
Dec. 31, 1998 June 30, 1998
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ASSETS
CURRENT ASSETS:
Cash $ 0 $ 0
--------- ---------
$ 0 $ 0
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts Payable 8,552 7,018
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$ 8,552 $ 7,018
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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
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Retained earnings deficit:
From regular operations (617,286) (617,286)
Accumulated: developmental stage (155,253) (153,719)
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TOTAL SHAREHOLDERS' EQUITY $( 8,552) $( 7,018)
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 0 $ 0
========= =========
The accompanying notes are an integral part of the financial statements.
3
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SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
STATEMENTS OF OPERATIONS
Unaudited Unaudited Unaudited Unaudited
3 months ended 3 months ended 6 months ended 6 months ended
Dec. 31, 1998 Dec. 31, 1997 Dec. 31, 1998 Dec. 31, 1997
-------------- -------------- -------------- --------------
REVENUES:
Miscellaneous
income $ 0 $ 0 $ 0 $ 0
---------- --------- ---------- ---------
EXPENSES: $ 226 $ 1,582 $ 1,534 $ 2,933
---------- --------- ---------- ---------
NET INCOME
(LOSS) $( 226) $( 1,582) $( 1,534) $( 2,933)
========== ========= ========== =========
NET (LOSS) PER
COMMON SHARE $( .0000) $( .0006) $( .0000) $( .0009)
---------- --------- ---------- ---------
COMMON SHARES
OUTSTANDING 15,757,047 3,505,047 15,757,047 3,505,047
========== ========= ========== =========
The accompanying notes are an integral part of the financial statements.
4
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SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
(A Developmental Stage Company)
CASH FLOWS STATEMENT
Unaudited Unaudited
6 months ended 6 months ended
Dec. 31, 1998 Dec. 31, 1997
-------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $(1,534) $(2,948)
Increase (decrease) in accounts payable 1,534 1,555
Increase in accrued interest 0 1,378
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Net cash flows from operations $ 0 $( 15)
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CASH FLOWS FROM FINANCING ACTIVITIES: $ 0 $ 0
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Net cash flows from financing $ 0 $ 0
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CASH FLOWS FROM INVESTING ACTIVITIES: $ 0 $ 0
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Net cash flows from investing
activities $ 0 $ 0
------- -------
NET INCREASE IN CASH AND CASH EQUIVALENTS $ 0 $( 15)
Cash at beginning of period 0 (1)
------- -------
Cash at end of period $ 0 $( 14)
======= =======
The accompanying notes are an integral part of the financial statements.
5
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SILVERTHORNE PRODUCTION COMPANY
Unaudited - compiled by management
NOTES TO FINANCIAL STATEMENTS -- December 31, 1998
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, 1998, 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 (including normal recurring adjustments)
necessary to present fairly the Company's financial position as of December
31, 1998, and the results of operations and cash flows for the periods
presented.
6
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ITEM 2. MANAGEMENT S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION.
The Company has been a developmental stage company since 1989. The
Company's financial condition did not change materially during the quarter
covered by this report.
The Company generated no revenues during the quarter ended December 31,
1998, and management does not anticipate any revenues until following the
conclusion of a merger or acquisition, if any, as contemplated by the
Company's business plan.
The Company has no capital. The Company anticipates operational costs
will be limited until such time as significant evaluation work is undertaken
regarding prospective mergers or acquisitions.
At December 31, 1998, the Company had no material commitments for capital
expenditures.
YEAR 2000 COMPLIANCE
The Company is aware of the issues associated with the programming code
in existing computer systems as the year 2000 approaches. The Company has
assessed these issues as they relate to the Company, and since the Company
currently has no operating business and does not use any computers, and since
it has no customers or suppliers, it does not believe that there are any
material year 2000 issues to disclose in this Report.
7
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 2. CHANGES IN SECURITIES
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None.
8
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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.
SILVERTHORNE PRODUCTION COMPANY
Dated: January 11, 1999 By:/s/ David L. Jackson
David L. Jackson, President, Chief
Executive Officer and Director
Dated: January 11, 1999 By:/s/ P. A. Jackson
P.A. Jackson, Secretary and Director
9
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet and statements of operations found on pages 3 and 4 of the
Company's Form 10-Q for the year to date, and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> DEC-31-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 8,552
<BONDS> 0
0
0
<COMMON> 15,757
<OTHER-SE> (24,309)
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,534
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> (1,534)
<INCOME-CONTINUING> 0
<DISCONTINUED> (1,534)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,534)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>