<PAGE>
Securities and Exchange Commission
Washington, DC 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 September 30, 2000 Commission File No. 2-91651-D
Peacock Financial
Corporation
Colorado 87-0410039
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) Number)
2531 San Jacinto Street
San Jacinto, CA 92583
(Address and zip code of principal executive offices)
(909) 652-3885
(Registrant's telephone number, including area code)
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 [_] NO
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
Common Stock 53,541,330 Shares Outstanding
$0.001 par Value as of September 30, 2000
<PAGE>
PEACOCK FINANCIAL CORPORATION
REPORT ON FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
TABLE OF CONTENTS
-----------------------------------------------------------------------------------------------------
Page
Number
------
<S> <C>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
. CONSOLIDATED BALANCE SHEETS AS OF
SEPTEMBER 30, 2000, AND DECEMBER 31, 1999 3 & 4
. CONSOLIDATED STATEMENTS OF
OPERATIONS FOR THE NINE MONTHS
AND THREE MONTHS ENDED
SEPTEMBER 30, 2000 AND 1999 5
. CONSOLIDATED STATEMENTS
OF CHANGES IN STOCKHOLDERS' EQUITY
AS OF SEPTEMBER 30, 2000 6 - 8
. CONSOLIDATED STATEMENTS
OF CASH FLOWS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 2000 9 & 10
. NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS 11
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS
OF OPERATION 12 - 16
PART II. OTHER INFORMATION AND SIGNATURES 17
</TABLE>
2
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PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
ASSETS
------
September 30, December 31,
----------------------------------
2000 1999
---- ----
CURRENT ASSETS (Unaudited)
Cash and cash equivalents 19,119 190,581
Due from related party 41,625 37,696
Developer fees receivable 13,774 46,828
Interest receivable 5,319 8,102
Credit line receivable 670,034 --
Accounts receivable 13,200 --
Notes receivable - related parties 172,505
91,007
Notes receivable 588,054 102,800
---------- ----------
Total Current Assets 1,523,630 477,014
---------- ----------
FIXED ASSETS 234,403 5,962
---------- ----------
OTHER ASSETS
Development costs 1,216,036 1,216,036
Investments in limited partnerships 1,131,945 1,131,945
Other investments 1,681,538 742,233
Other assets 277,102 6,151
---------- ----------
Total Other Assets 4,306,621 3,096,365
---------- ----------
TOTAL ASSETS $6,064,654 $3,579,341
========== ==========
3
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PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
<TABLE>
<CAPTION>
September 30, December 31,
------------------------------
2000 1999
---- ----
CURRENT LIABILITIES (Unaudited)
<S> <C> <C>
Accounts payable $ 675,540 $ 159,272
Other current liabilities 167,927 174,668
Notes payable - current portion 829,682 623,204
Due to related parties 125,000 25,398
------------ ------------
Total Current Liabilities 1,798,149 982,542
------------ ------------
LONG-TERM DEBT
Notes payable - long term 500,000 500,000
------------ ------------
Total Liabilities 2,298,149 1,482,542
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock: 10,000,000 shares authorized at $0.01
par value; 554,300 and 670,300 shares issued and
outstanding, respectively 5,543 6,703
Common stock: 250,000,000 shares authorized at
$0.001 par value; 53,541,330 and 37,810,508 shares
issued and outstanding, respectively 53,541 37,810
Additional paid-in capital 10,286,683 5,457,569
Subscriptions receivable (276,055) (327,055)
Treasury stock (22,194)
Accumulated deficit (6,281,013) (3,078,228)
------------ ------------
Total Stockholders' Equity 3,766,505 2,096,799
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 6,064,654 $ 3,579,341
============ ============
</TABLE>
4
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PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
For 9 Months Ended For 3 Months Ended
----------------------------------------------------
September 30, September 30, Sept 30, Sept 30,
2000 1999 2000 1999
------------- ------------- ------------ -----------
<S> <C> <C> <C> <C>
REVENUES
Property management and administration income $ 1,525 $ 2,755 $ - $ 385
Investment banking income 779,961 600,000 - -
Gain on investment 68,459 19,849
Other income 70,979 20,121 15,800 16,297
Other income - Sports 138,146 51,821
Other income - Internet 134,695 25,095
------------- ------------- ------------ -----------
Total Revenues 1,193,765 622,876 112,565 16,682
------------- ------------- ------------ -----------
EXPENSES
General and administrative 1,585,483 466,953 621,171 144,053
General and administrative - Sports 1,930,558 818,827
General and administrative - Internet 723,419 236,742
Depreciation and amortization 28,827 2,735 14,249 -
------------- ------------- ------------ -----------
Total Expenses 4,268,287 469,688 1,690,989 144,053
------------- ------------- ------------ -----------
INCOME (LOSS) FROM CONTINUING OPERATIONS (3,074,522) 153,188 (1,578,424) (127,371)
------------- ------------- ------------ -----------
OTHER INCOME (EXPENSE)
Loss on investments 45,000 -
Interest income 10,335 7,556 2,710 7,556
Interest expense (65,241) (99,951) (11,617) (29,676)
Other expense (1,600) (800) (800) 800
------------- ------------- ------------ -----------
Total Other Income (Expense) (56,506) (47,395) (8,907) (21,320)
------------- ------------- ------------ -----------
NET INCOME (LOSS) $ (3,131,028) $ 105,793 $ (1,587,331) $ 148,691)
============= ============= ============ ===========
EARNINGS (LOSS) PER SHARE $ (0.06) $ 0.01 $ (0.03) $ (.01)
============= ============= ============ ===========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 53,179,405 31,756,963 51,802,230 32,066,796
============= ============= ============ ===========
</TABLE>
5
<PAGE>
PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity
<TABLE>
<CAPTION>
Additional
Preferred Stock Common Stock Paid-in Subscriptions Accumulated
----------------------- ---------------------------
Shares Amount Shares Amount Capital Receivable Deficit
--------- ----------------------------------------- ----------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1997 672,300 $ 6,723 11,763,797 $ 11,764 $2,335,379 $ $( 852,055)
Common stock issued
for cash 1,609,413 1,609 217,456
Common stock issued
for services 3,108,040 3,108 599,967
Common stock issued on
conversation of debentures 1,559,834 1,560 104,033
Common stock issued for
investments and licensing
rights 2,420,000 2,420 257,580
Common stock issued under
failed financing package 289,286 289 28,639
Accrued dividends (23,172)
Net income (loss) for the
year ended
December 31, 1998 (1,533,436)
--------- ----------- ----------- ------------- ----------- ------------- -------------
Balance,
December 31, 1998 672,300 $ 6,723 20,750,370 $ 20,750 $ 3,519,882 $ ______ $ 2,385,491)
--------- ----------- ----------- ------------- ----------- ------------- -------------
</TABLE>
6
<PAGE>
PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity (continued)
<TABLE>
<CAPTION>
Additional
Preferred Stock Common Stock Paid-in Subscriptions Accumulated
---------------------- ---------------------------
Shares Amount Shares Amount Capital Receivable Deficit
--------- ------- ----------- --------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1998 672,300 $ 6,723 20,750,370 $ 20,750 $ 3,519,882 $ ($2,385,491)
Common stock
issued for cash 4,008,007 14,008 1,787,118 (443,500)
Common stock issued
for services 759,571 760 161,040
Common stock issued on
conversion of debentures 1,070,560 1,070 58,346
Common stock issued for
investments 1,250,000 1,250 123,750
Common stock issued in
conversion of preferred
stock (2,000) (20) 2,000 2 1,998
Common stock canceled (30,000) (30) (5,779)
Cash received on
subscriptions receivable 116,445
Accrued dividends (23,172)
Dividends paid (165,614)
Net income (loss) for
the year ended
December 31, 1999 --------- ------- ----------- --------- ----------- ------------- (692,737)
-----------
Balance,
December 31, 1999 670,300 $ 6,703 37,810,508 $ 37,810 $ 5,457,569 ($327,055) $(3,078,228)
==================================================================================================
</TABLE>
7
<PAGE>
PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity (Continued)
<TABLE>
<CAPTION>
Additional
Preferred Stock Common Stock Paid-in Subscriptions Accumulated
-------------------------- -------------------
Shares Amount Shares Amount Capital Receivable Deficit
------------- ----------- ---------- ------------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance,
December 31, 1999 670,300 $ 6,703 37,810,508 $ 37,810 $ 5,457,569 ($327,055) $(3,078,228)
Common stock issued
for cash (unaudited) 13,905,711 13,906 4,454,391 (148,000)
Common stock issued for
interest (unaudited) 6,207 6 6,201
Common stock issued in
conversion of preferred stock
(unaudited) (116,000) (1,160) 116,000 116 1,044
Common stock issued for
services 1,200,000 1,200 214,800
Common stock issued for
debt (unaudited) 202,904 203 20,087
Cash received on
subscriptions receivable
(unaudited) 199,000
Common stock issued
for investments (unaudited) 300,000 300 149,700
Reduction in value of
Treasury stock (71,757)
Accrued dividends (unaudited) (17,109)
Net income (loss) for
the period ended
September 30, 2000 (unaudited) (3,131,028)
------------- ----------- ---------- ------------ ----------- ----------- -----------
Balance,
September 30, 2000 (unaudited) 554,300 $ 5,543 53,541,330 $ 53,541 $10,286,683 $ (276,055) $(6,281,013)
============= =========== ========== ============ =========== =========== ===========
</TABLE>
8
<PAGE>
PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
For the 9 Months Ended
----------------------------
September 30 September 30
2000 1999
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $(3,131,028) $ 105,793
Adjustments to reconcile net income (loss) to net
cash (used) by operating activities:
Stock issued for services 216,000
Depreciation and amortization 28,827 2,735
Gain on investment (68,459)
Changes in operating assets and liabilities:
(Increase) decrease in accounts and notes
receivable (1,132,651) (203,244)
(Increase) decrease in accounts
receivable - related parties (85,427) 7,744
(Increase) decrease in other assets (270,951) (720,680)
Increase (decrease) in accounts payable 516,268 (550)
Increase (decrease) in other liabilities 2,647 (20,924)
----------- ---------
Net Cash Used by Operating Activities (3,924,774) (829,126)
----------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Construction in process
Purchase of investments (720,846) -
Purchase of property and equipment (257,268) 364,170
----------- ---------
Net Cash Used by Investing Activities (978,114) 364,170
----------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Due to shareholders 99,602 (5,860)
Repayment of notes payable (313,022) (330,738)
Proceeds from notes payable 519,500 (134,205)
Repurchase of stock (93,951)
Cash rec'd on subscriptions receivable 51,000
Proceeds from stock offerings 4,468,297 999,969
----------- ---------
Net Cash Provided by Financing Activities $ 4,731,426 529,166
----------- ---------
</TABLE>
9
<PAGE>
PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows(Continued)
<TABLE>
<CAPTION>
For the 9 Months Ended
-----------------------
September 30 September 30
2000 1999
--------- --------
<S> <C> <C>
NET INCREASE (DECREASE) IN CASH $(171,462) $ (7,145)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 190,581 14,777
--------- --------
CASH AND CASH EQUIVALENTS AT END
OF PERIOD $ 19,119 $ 7,632
========= ========
SUPPLEMENTAL DISCLOSURE OF
NON-CASH ACTIVITIES
Common stock issued on conversion of debentures & interest $ 26,497 $ -
Common stock issued for services $ 168,000 $470,275
Common stock issued for investments $ 150,000 $ -
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION
Interest paid, net of amount capitalized $ 28,885 $ 25,999
Income taxes paid $ $
</TABLE>
10
<PAGE>
PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000 and DECEMBER 31, 1999
1. The interim financial statements are prepared pursuant to the requirements
for reporting on Form 10-QSB. The December 31, 1999 balance sheet data was
derived from audited financial statements but does not include all
disclosures required by generally accepted accounting principles. The
interim financial statements and notes thereto should be read in conjunction
with the financial statements and footnotes thereto included in the
Company's report on Form 10-KSB for the year ended December 31, 1999. In the
opinion of management, the interim financial statements reflect all
adjustments of a normal recurring nature necessary for a fair statement of
the results for the interim periods presented.
11
<PAGE>
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This Form 10-QSB contains forward looking statements within the meaning of
section 27A of the Securities Act of 1933 and section 21E of the Securities
Exchange Act of 1934. The Company's actual results could differ materially from
those set forth in the forward looking statements.
MANAGEMENT DISCUSSION
Peacock Financial Corporation (Company) is a venture capital fund that makes
direct investments in and provides management services to emerging businesses.
The Company manages its investments through three wholly owned subsidiaries and
intends on expanding its investment portfolio. The Company has in the past, and
may again in the future, raise capital specifically for the purpose of making an
investment that the Company believes is attractive.
The Company's three wholly owned subsidiaries are Peacock Real Estate
Development Corporation, DOTCOM Ventures, LLC and Peacock Sports, Inc. Each of
these subsidiaries manages a portfolio of investments as follows:
Peacock Real Estate Development Corporation
-------------------------------------------
1. Riverside Park Apartments - The Company formed a limited partnership in
June 1992 and acquired two apartment buildings for $3,350,000 to be
repaired, developed and managed. During the year ending 1992, the Company
reduced its interest to 1% and has remained a general partner with a 1%
interest, receiving a property management fee.
2. Canyon Shadows Apartments - The Company acquired a 120-unit apartment
complex in April 1995 for $875,000. The Company received a $975,000 loan
that converts to a grant from the City of Riverside for the purpose of
acquisition and rehabilitation, and in 1996, the Company was awarded
$2,200,000 in Federal Tax Credits for the project. In December 1996, the
project was sold to a tax credit partnership in which the Company retains a
$905,000 capital account, as well as a 1% interest as the general partner,
for which it receives a management fee and 80% of the project cash flow.
3. St. Michel, LLC - In 1995, the Company formed a limited liability company
to acquire a 63-lot residential subdivision in the San Jacinto Valley, In
March 1996, the limited liability company acquired an additional 110-lot
subdivision also in the San Jacinto Valley. The Company retains a 50%
ownership in the limited liability company and has recently signed a joint
venture agreement to build homes on these existing lots.
4. Rancho San Jacinto Development - In 1987, the Company formed a limited
partnership to acquire and develop approximately 500 acres in San Jacinto,
California. The partnership currently owns approximately 285 residential
lots, 30 acres of commercially zoned property and 11 acres zoned for high
density senior apartments all within the master planned community of Rancho
San Jacinto. The Company retains a 15% ownership position and has recently
entered into certain joint venture agreements to build out these
properties.
12
<PAGE>
5. Vir-Tek Company - The Company currently owns 49% of Vir-Tek, a minority
disabled veteran engineering and contracting firm, formed to take advantage
of recently passed federal legislation (H.R. 1568) requiring 3%
participation on all programs and projects funded by federal dollars. Vir-
Tek provides environmental management, facility and operations management,
mapping and information management, engineering services, project
management, and waste management. The Company emphasizes teamwork in
industrial, and engineering problems. Vir-Tek has served commercial,
industrial, and residential construction developers as well as concerns of
city, county, and federal agencies.
In addition to the above, PDC has an agreement with the Milwaukee-based company,
The Stadium Game, LLC (TSG), which is engaged in the business of the finance and
development of venue projects through a consortium of industry leaders in the
areas of design architecture, construction, facility management and fixed-income
fund management. PDC assists TSG in identifying stadium, arena, recreational
and entertainment facility development opportunities in the Western United
states, providing TSG with initial project due diligence for target projects,
and providing written development objectives for the owner(s), citing how these
objectives fit the TSG consortium development process. This fits perfectly with
PDC's 23 years of management experience to help position TSG in numerous
projects with major regional impact in the Western United States.
DOTCOM Ventures, LLC
--------------------
1. Solutions Media, Inc. - is an Internet and convergence technology firm
headquartered in San Diego and an equity holder of SpinRecords.com. SMI
researches and develops viable interactive applications for the consumer
market. Peacock Financial is a major shareholder of SMI and received its
financial investment back in its entirety, retaining 800,000 shares.
2. Desert Winds Entertainment Corporation - is a traditional entertainment
production company that has unique content geared toward the Gen X and Gen
Y markets. In December, Peacock Financial entered into an agreement with
Desert Winds Entertainment (OTCBB:DESW) to form a digital entertainment
division called Desert Digital Network (DESTV.NET) as a first step into the
area of digital broadcasting. Peacock invested $75,000 in convertible debt
as $.20 a share. Peacock has since converted this note into 379,868 free
trading shares and has subsequently liquidated these shares in the market.
3. iNetPartners, Inc. - Peacock Financial holds a 51 percent interest in
iNetPartners, Inc., which focuses on the development of Internet e-commerce
applications for both the net and used automotive markets and is currently
developing iNetmotors.com, a regionally based automobile e-commerce Website
to provide Internet automobile shoppers easy access to dealer inventories
with detailed pictures and prices online within the shopper's immediate
area. More than 80 percent of pre-owned and new vehicles are purchased
within 20 to 35 miles of where the buyer lives or works, and 90 percent of
all buyers want to inspect and test-drive the vehicle before purchase. In
June, the Company announced a shareholder of record date of June 30 for
distribution of a portion of shares to its shareholders, and the shares
have subsequently been distributed.
4. 1/st/ Miracle Group, Inc. - The Company invested $300,000 in convertible
debt financing and
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subsequently converted its investment into free trading shares at $.01 per
share. 1st Miracle Group, Inc. (OTCBB:MVEE) is a Canadian based movie
production company with 5 films currently in distribution and several new
films in production. The Company is in continuing discussions with 1st
Miracle Group, Inc., to enter into a consulting contract to expand its
internet capabilities. The Company has since converted this note into 30
million free-trading shares and has subsequently liquidated these shares in
the market.
5. Bizness Soup Talk Radio - In June, the Company acquired a 70% interest in
Bizness Soup Talk Radio, a nationally syndicated broadcast network.
Bizness Soup was founded in 1996 and has a presence in 20 major markets.
This investment represents the next stage of the Company's expanding
communications network, and will be one of the many revenue-driven
components for the Company's media/communications network that will include
both traditional and online radio, television and print.
6. Bio-Friendly Corporation - In May, the Company signed a contract to purchase
625,000 shares of common stock at 40 cents a share of Bio-Friendly
Corporation, a fuel technology company, that has a combustion catalyst which
dramatically reduces the emissions produced by any system which burns fuel
of any kind, while greatly reducing the amount of fuel consumed.
Peacock Sports, Inc.
--------------------
1. San Diego Soccer Development Corporation (SDSDC) - The Company currently
owns approximately 1,650,000 shares of SDSDC, the only publicly traded
soccer franchise in the United States. In addition to SDSDC's ownership of
the San Diego Flash, an A-League franchise, SDSDC entered into a binding
contract to acquire Peacock's franchises in Orange County, the Bay Area,
and Riverside County, as part of its long-term strategy to become a soccer
holding company with multiple franchises including a professional farm
system, a soccer academy and soccer specific stadiums.
2. Orange County Soccer Development Corporation - The Company owns 85% of
OCSDC, the A-League soccer franchise known as the Orange County Waves. At
the end of June, OCSDC entered into a binding contract to be acquired by
SDSDC for $1.5 million in cash and stock.
3. Bay Area Soccer Development Corporation - The Company owns 80% of BASDC,
the A-League soccer franchise known as the Bay Area Seals. At the end of
June, BASDC entered into a binding contract to be acquired by SDSDC for
$1.5 million in cash and stock.
4. Riverside County Soccer Development Corporation - The Company owns 53% of
RCSDC, a D-3 League soccer franchise known as the Riverside Elite. This
franchise serves as a farm system for the three A-League franchises in San
Diego, Orange County and the Bay Area. At the end of June, RCSDC entered
into a binding contract to be acquired by SDSDC for $500,000 in cash and
stock.
5. Las Vegas Soccer Development Corporation - The Company is a 25% equity
founding shareholder in the LVSDC (the Strikers), which was established to
acquire an A-League
14
<PAGE>
soccer sports franchise for the Las Vegas market. It is the Company's
intention to launch this franchise in the 2002 season.
ANALYSIS OF FINANCIAL CONDITION
The first quarter of 2000 marked the emergence of the Company as a true venture
capital fund, registered with the SEC as a Business Development Corporation.
The second and third quarters continues to show steady growth through the
incubation and financial support of the Company's investment portfolio.
The Company's auditors removed the Going Concern statement in their 1999 audited
financial statement that is a statement of objective confidence regarding the
Company's current structure and capital position.
Management believes that the key to a successful fund is the ability to produce
ongoing revenues and profits from operating subsidiaries that will allow for an
orderly due diligence process when investing in start up or emerging growth
companies.
The Company has subsequently formed three operating subsidiaries that are
strategically positioned to produce both revenue and profits. The Company will
continue to actively seek emerging growth opportunities that meet its stated
investment criteria and will continue its capital raising efforts to fund these
carefully selected investment opportunities.
Results of Operations - Three months ended September 30, 2000, compared to the
three months ended September 30, 1999.
The Company is a registered Business Development Corporation under the
Investment Act of 1940. As such, the Company acts as a holding company for the
purpose of raising capital and investing in real estate through a wholly owned
subsidiary and into emerging growth companies that meet certain investment
criteria which includes the possibility of taking the targeted company public at
a later stage.
The Company expects to raise additional capital for its real estate operations
in the San Jacinto Valley, (California) where a $3 billion recreational
reservoir is nearing completion and to continue to seek out investment
opportunities in high tech emerging growth companies.
Revenues. Revenues for the three months ended September 30, 2000, increased by
$95,883 or 575% to $112,655 from $16,682 for the three months ended September
30, 1999. This increase resulted from gains in investment banking services, as
well as revenues generated from the sports and internet divisions.
Expenses. Total expenses for the three months ended September 30, 2000,
increased by $1,546,936 or 1,074% to $1,690,989 from $144,053 for the three
months ended September 30, 1999. General and administrative expenses for the
three months ended September 30, 2000, increased by $1,532,687 or 1,064% to
$1,676,740 from $144,053 for the three months September 30, 1999. These
increases resulted from the administrative and operating costs associated with
consolidating the financial
15
<PAGE>
statements of the portfolio companies in which the Company has a majority or
greater interest.
Results of Operations - Nine months ended September 30, 2000, compared to the
nine months ended September 30, 1999.
In the first three quarters, the Company raised over $5 million in capital which
was used for working capital, debt reduction and investments
Revenues. Revenues for the nine months ended September 30, 2000, increased by
$570,889 or 92% to $1,193,765 from $622,876 for the nine months ended September
30, 1999. This increase resulted from gains in investment banking services, as
well as revenues generated from the sports and internet divisions.
Expenses. Total expenses for the nine months ended September 30, 2000,
increased by $3,798,599 or 809% to $4,268,287 from $469,688 for the nine months
ended September 30, 1999. This increase resulted from the administrative and
operating costs associated with consolidating the financial statements of the
portfolio companies in which the Company has a majority or greater interest.
Changes in Financial Condition, Liquidity and Capital Resource.
For the nine months ended September 30, 2000, the Company funded its operations
and capital requirements partially with its own working capital and partially
with proceeds from stock offerings. As of September 30, 2000, the Company had
cash of $19,119.
16
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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.
PEACOCK FINANCIAL CORPORATION
November 15, 2000 /s/ Steven R. Peacock
------------------ ---------------------
Date Steven R. Peacock
President and Chief Executive Officer
November 15, 2000 /s/ Lisa L. Martinez
----------------- --------------------
Date Lisa L. Martinez
Corporate Secretary
17
