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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(X) Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the quarterly period ended June 30, 1998
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( ) Transition Report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the transition period from __________ to ___________
Commission File Number 2-98014-D
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FIRST COLONIAL VENTURES, LTD.
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(Exact name of small business issuer as specified in its charter)
Utah 87-0421903
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(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
3830 DEL AMO BOULEVARD, TORRANCE, CA 90503
(Address of principal executive offices)
Issuer's telephone number, including area code: (310) 642-0200
Check whether issuer (1) has filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 30 days.
Yes ____ No X
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State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:
Common stock: $.001 par value 13,496,182 shares outstanding at December 31, 1999
Transitional Small Business Disclosure Format: Yes____ No X
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Documents incorporated by reference: None
Total sequentially numbered pages in this document: 7
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
FIRST COLONIAL VENTURES. LTD.
BALANCE SHEETS
(Unaudited) (Audited)
June 30 December 31
1998 1997
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ASSETS
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Investments at fair value $ 296,000 $ 200,000
Cash 1,296 689
Other assets 15,609 12,680
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$ 312,905 $ 213,369
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LIABILITIES AND NET CAPITAL DEFICIENCY
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Liabilities:
Notes payable $ 529,453 $ 517,428
Accounts payable and accrued liabilities 725,688 538,174
Related party debt 175,192 65,611
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Total liabilities 1,430,333 1,121,212
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Net Capital Deficiency:
Common stock ($.001 par value; 500,000,000
shares authorized; 11,646,183 outstanding) 14,716 11,646
Preferred stock (no par value; 10,000,000
shares authorized; none outstanding) -- --
Additional paid-in capital 9,773,935 9,508,554
Accumulated deficit:
Pre-BDC (deficit) (3,508,063) (3,508,063)
Accumulated net investment (loss) (3,082,147) (2,604,112)
Accumulated net unrealized (loss) (4,315,869) (4,315,869)
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Net capital deficiency $ 312,905 $ 213,369
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FIRST COLONIAL VENTURES, LTD.
STATEMENTS OF OPERATIONS
For The Three Months Ended
(Unaudited) (Unaudited)
June 30 June 30
1998 1997
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Management fee income $ 45,000 $ --
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Operating expenses:
General & administrative 130,946 70,511
Depreciation 932 1,580
Interest 1,154 7,540
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Total operating expenses 133,032 79,631
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Loss before net loss on investments
and provision for income tax (88,032) (79,631)
Realized loss on investments (156,321) --
Provision for income tax -- --
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Net loss $(244,353) $(79,631)
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Net loss per share $ (.02) $ ( .01)
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FIRST COLONIAL VENTURES, LTD.
STATEMENTS OF OPERATIONS
For The Six Months Ended
(Unaudited) (Unaudited)
June 30 June 30
1998 1997
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Management fee income $ 90,000 $ --
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Operating expenses:
General & administrative 258,361 142,597
Depreciation 1,864 3,160
Interest 14,057 14,728
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Total operating expenses 274,282 160,485
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Loss before net loss on investments
and provision for income tax (184,282) (160,485)
Realized loss on investments (292,953) --
Provision for income tax (800) (800)
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Net loss $(478,035) $(161,485)
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Net loss per share $ (.02) $ ( .02)
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FIRST COLONIAL VENTURES, LTD.
STATEMENT OF CASH FLOW
For The Six Months Ended June 30, 1998
Cash flows from operating activities:
Net loss $(478,035)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation 1,864
Decrease in accounts payable and accrued liabilities 187,514
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Net cash (used) in operating activities (288,657)
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Cash flows from investing activities:
Advances to STS Communications (96,000)
Purchase of equipment (4,793)
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Net cash (used) in investing activities (100,793)
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Cash flows from financing activities:
Additional paid-in capital 265,381
Borrowing from related parties 109,581
Common stock issued 3,070
Interest added to note payable 12,025
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Net cash from financing activities 390,057
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Net increase in cash 607
Cash - December 31, 1997 689
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Cash - June 30, 1998 $ 1,296
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FIRST COLONIAL VENTURES, LTD.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - COMMENTS
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First Colonial Ventures, Ltd. ("FCVL" or "Company") was incorporated under
the laws of the State of Utah on March 25, 1985, for the purpose of acquiring
interests in various business opportunities.
On January 10, 1995, FCVL elected to become an Investment Company pursuant
to the Investment Company Act of 1940. On June 27, 1995, FCVL elected to become
a "Business Development Company" (BDC), as that term is defined in the Small
Business Investment Incentive Act of 1980, which Act is an amendment to the
Investment Company Act of 1940. The election resulted in FCVL becoming a
specialized type of investment company. Consistent with this change in type of
business entity, the Company changed its method of financial reporting and
valuation of investments from cost to fair value.
The financial statements include only the accounts of FCVL because,
pursuant to industry practice, an investee of a business development company is
not consolidated unless such investee is a small business investment company or
a wholly-owned business development company. The consolidated financial
statements for 1994 and prior included the accounts of FCVL and its wholly-owned
subsidiaries.
The accompanying financial statements are unaudited, but in the opinion of
the management of the Registrant, contain all adjustments, consisting of only
normal recurring accruals, necessary to present fairly the financial position at
June 30, 1998, the results of operations for the three and six months ended June
30, 1998, and the changes in cash flows for the six months ended June 30, 1998.
Certain information and footnote disclosures normally included in financial
statements that have been prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to the rules and
regulations of the Securities and Exchange Commission, although management of
the Registrant believes that the information presented therein is not
misleading. For further information, refer to the financial statements and
footnotes thereto included in the Registrant's Annual Report on Form 10-KSB for
the year ended December 31, 1998, as filed with the Securities and Exchange
Commission.
The results of operations for the six months ended June 30, 1998, are not
necessarily indicative of the results of operations to be expected for the full
year ending December 31, 1998.
NOTE 3 - RELATED PARTY DEBT:
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Related party debt owing to Contemporary Resources, Inc. increased by
$109,581 during the six months ended June 30, 1998 due to working capital needed
by Acclaim Studios.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Financial Condition - June 30, 1998
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The Registrant's investments at June 30 were substantially the same as
at December 31, 1997, with the exception of advances to STS Communications, a
Television production company. Overall, liabilities increased due to the
inability of the Company to obtain working capital to finance losses at Acclaim
Studios.
Results of Operations - Three and Six Months Ended June 30, 1998
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The Registrant's net loss for the three months and six months ended June
30, 1998 were substantially greater than the losses for the same periods in the
prior year due to increased administrative expenses associated with operating
the Acclaim businesses and due to the write-off as realized losses of all
advances made to Acclaim.
SIGNATURES
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In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
FIRST COLONIAL VENTURES, LTD.
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(Registrant)
March 28, 2000 By: /s/ Murray W. Goldenberg
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Murray W. Goldenberg
President
(Chief Executive, Financial
and Accounting Officer)
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