U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/AMENDED
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Three Months Ended: June 30, 1998
[ X ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from: to:
Commission file Number 0-14039
AMERICAN GENERAL VENTURES, INC.
-------------------------------
(Exact Name of Registrant as Specified in its Charter)
NEVADA 11-2712721
(State or Other Jurisdiction of I.R.S. Employer
Incorporated or Organization) Identification No.
3650 Austin Bluffs Parkway-Suite 138
Colorado Springs, Colorado
(Address of Principal Executive Offices)
(719) 548-1616 (Registrant's Telephone Number)
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 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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Check mark whether the issuer has filed all documents and reports required to be
filed by Sections 2, 12, or 15 (d) of the Securities Exchange Act after the
distribution of securities under a plan confirmed by a court. Yes__ No__
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each issuer's classes of common
stock, as of the latest practicable date.
Common Stock $.001 par value, 11,288,268
- ----------------------------- ----------
(title of class) (Shares outstanding at June 30, 1998)
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AMERICAN GENERAL VENTURES, INC.
FORM 10-QSB
FOR THREE MONTHS ENDED June 30, 1998
INDEX
PART I - FINANCIAL INFORMATION
ITEM 1 - Financial Statements PAGE
Balance Sheet as of June 30, 1998 & June 30,1997 3
Income Statements for quarters ending 4
June 30, 1998 & 1997
Statement of Cash Flows for three months ended
June 30, 1998 & 1997 5
ITEM 2 - Management Discussion and Analysis 6
PART II - OTHER INFORMATION
ITEMS 1-5 7
SIGNATURE PAGE 8
2
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AMERICAN GENERAL VENTURES, INC
CONSOLIDATED BALANCE SHEET
JUNE 30, 1998 & JUNE 30, 1997 (UNAUDITED)
ASSETS 6-30-98 6-30-97
- ------ ------- -------
Current Assets:
Cash 2,395 3,038
Marketable Securities -0- -0-
Accounts Receivable 14,653 73,880
Inventory 151,870 295,783
Other Current Assets -0- -0-
---------- ----------
Total Current Assets 168,918 372,701
Net Prop,Plant,Equip 34,918 70,118
Other Assets 21,389 24,971
---------- ----------
Total Assets 225,225 467,790
========== ==========
LIABILITIES and STOCKHOLDERS' EQUITY
Current Liabilities:
Notes Payable-Officer 18,052 -0-
Accounts Payable 258,528 290,931
Other Current Liabilities 89,140 142,722
---------- ----------
Total Current Liabilities 365,720 433,653
Long Term Liabilities:
Notes Payable-Officer -0- 573,834
Long Term Debt 35,495 35,495
---------- ----------
Total Liabilities 401,215 1,042,982
Stockholders' Equity:
Common Stock 11,288 9,300
Paid in Capital 2,562,856 1,711,999
Accumulated Deficit (2,750,134) (2,296,491)
---------- ----------
Shareholder's Deficit (175,990) (575,192)
---------- ----------
Total Liabilities &
shareholder's deficit 225,225 467,790
========== ==========
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AMERICAN GENERAL VENTURES, INC.
CONSOLIDATED INCOME STATEMENT
QTRS ENDING JUNE 30, 1998 & 1997
(UNAUDITED)
2ND QTR 2ND QTR
1998 1997
---- ----
REVENUES 120,318 310,727
Cost and Expenses:
Cost of Sales 111,918 245,143
Sell & General Admin 51,299 97,591
Interest -0- -0-
----------- -----------
Total Cost & Expenses 163,217 342,734
----------- -----------
Net Income (Loss) Before Taxes (42,899) (32,007)
Income Tax Expense -0- -0-
Net Income (Loss) (42,899) (32,007)
Net Income Per Common Share .00 .00
Weighted Average Common Shares
Outstanding 11,288,268 9,300,000
=========== ===========
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AMERICAN GENERAL VENTURES, INC.
CONSOLIDATED CASH FLOW
FOR THREE MONTHS ENDING JUNE 30, 1998 & 1997
(UNAUDITED)
1998 1997
---- ----
Cash Flow from Operating Activities
Net Income (Loss) (42,899) (32,007)
Adjustments to Reconcile Net Income
to Net Cash:
Depreciation and Goodwill 1,939 -0-
Inc (Dec) in Accounts Receivable 13,039 57,621
Inc (Dec) in Inventory 23,005 (55,572)
Inc (Dec) in Other Assets -0- -0-
Inc (Dec) in Accounts Payable 35,733 96,637
Inc (Dec) in Other Accrued Liab (20,637) 8,767
-------- --------
Net Cash Provided by (Used In)
Operating Activities 10,180 75,446
Cash Flow from Investing Activities:
Inc (Dec) in Marketable Sec -0- -0-
Plant and Equipment (29)
-------- --------
Net Cash Provided by (Used in)
Investing Activities -0- (29)
Cash Flow from Financing Activities:
Inc (Dec) in Notes Payable -0- -0-
Inc (Dec) in Notes Pay-Walker (169,478) (64,481)
Inc (Dec) in Long Term Debt 21,278 -0-
Inc (Dec) in Common Stock 589 -0-
Inc (Dec) in Paid in Capital 110,723 -0-
-------- --------
Net Cash Provided by (Used in)
Financing Activities (36,888) (64,481)
-------- --------
Inc (Dec) in Cash (26,708) 10,936
Cash (Beginning) 29,103 (7,898)
Cash (Ending) 2,395 3,038
5
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AMERICAN GENERAL VENTURES, INC.
FORM 10-QSB
FOR THE THREE MONTHS ENDED JUNE, 1998
ITEM 2 - MANAGEMENT DISCUSSION AND ANALYSIS
Results of Operations
During the period from April 1, 1998 through June 30, 1998 the Company revenues
were $310,727 compared to $423,365 for the same period in 1997. The decrease in
revenues was due to decreased orders for computers and accessories from Wal-Mart
Stores, Inc. taken by the Company's subsidiary ACI Micro Systems, Inc. ACI has
reduced its sales with Wal-Mart retail stores since it was issued a second
vendor number from Wal-Mart Online. The Company plans to emphasize selling its
product through Wal-Mart's World Wide Web Page and de-emphasize its sales in
Wal-Mart retail stores. The Company experienced considerable losses because of
its 'guaranteed sale' provision with the retail stores. Many Wal-Mart stores
ordered more computers than they were able sell and consequently returned the
unsold systems. The online sales are sold before they are shipped and reduces
the quaranteed sale problem.
The Company presently offers seven preconfigured computer systems on Wal-Mart's
web page and expects to have a "build your own desktop and laptop computer"
online in October 1998. The build your own computer has been very successful
with Dell Computers and Gateway 2000. The Company expects that by partnering
with Wal-Mart it will capture a percentage of Dell's and Gateway's market share.
Wal-Mart Online has featured the Company's computers on its "home" page.
Wal-Mart Online used one of the Company's computers to celebrate it 1st
anniversary by selling it below cost for a period of two weeks. The Company was
listed in the top five vendors in revenues for Wal-Mart Online.
In addition to selling its computers online, the Company will continue to sell
to Wal-Mart stores but without a guaranteed sale. The most recent vendor
agreement from Wal-Mart removed the guaranteed sale provision.
The Company is seeking additional avenues for selling its computers. The Company
is in discussions with a national educational Internet company who has expressed
interest in purchasing its computers for work stations in the classroom. Its
products are also listed on shopping malls of several other web pages.
The Company has an agreement with Prodigy to load its Prodigy Internet software
on each computer sold. If the purchaser of the computer decides to continue with
Prodigy services after the 30 free trial, Prodigy will pay the Company a bounty.
Prodigy has expressed interest in selling the Company's computers through
Prodigy's shopping network.
Working Capital and Capital Resources
Working capital at June 30, 1998 (current assets less current liabilities)
totaled ($196,802) compared to $273,772 at June 30, 1997. The decrease in
working capital was due to a decrease in accounts receivable and inventory.
The Company has implemented several means to raise short term capital. The
Company expects to receive sufficient resources to meet its capital
requirements.
6
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PART II OTHER INFORMATION
Item 1 Legal Proceedings
The Company knows of no litigation pending, threatened or contemplated, or
unsatisfied judgments against the Company, nor any proceedings to which the
Company is a party that will adversely affect the Company.
Item 2 Changes in Securities - 589,425 common shares were issued this quarter.
Item 3 Defaults Upon Senior Securities - None
Item 4 Submission of Matters to a Vote of Securities Holders - None
Item 5 Other Information - None
Item 6 Exhibits and Reports on Form 8-K - None
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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.
AMERICAN GENERAL VENTURES, INC.
By: /s/ Steven H. Walker
---------------------------------
President/CEO
Date: January 6, 1999
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