U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________
FORM 10-QSB
_____________________
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 33-8070-LA
_____________________
MAXI GROUP, INC.
-----------------------------------------------------------
(Name of Small Business Issuer as specified in its charter)
Nevada 87-0420448
------------------------------- ----------------
(State of other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
737 Westholme Avenue, Los Angeles, California 90024
----------------------------------------------------
(Address of principal executive offices)
Registrant's telephone no., including area code: (213) 470-3650
No Change
---------------------------------------------------------------
Former name, former address, and former fiscal year, if changed
since last report.
Securities registered pursuant to Section 12(b) of the Exchange Act: None
Securities registered pursuant to Section 12(g) of the Exchange Act: None
Check whether the Issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act 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 _X_ No ___.
Common Stock outstanding at June 30, 1996 - 21,925,000 shares of $.001
par value Common Stock.
<PAGE>
PART I FINANCIAL INFORMATION
ITEM 1 Financial Statements
MAXI GROUP, INC.
[A Development Stage Company]
CONDENSED BALANCE SHEETS
[Unaudited]
ASSETS
June 30, December 31,
1996 1995
----------- -----------
CURRENT ASSETS:
Cash $ 2,349 $ 3,043
----------- -----------
Total Current Assets 2,349 3,043
----------- -----------
OTHER ASSETS:
Organization costs, net - -
----------- -----------
$ 2,349 $ 3,043
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,220 $ 8,440
Payable to officer 4,820 -
----------- -----------
Total Current Liabilities 9,040 8,440
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 21,925 21,925
Capital in excess of par value 47,042 47,042
Deficit accumulated during the
development stage (75,658) (74,364)
----------- -----------
Total Stockholders' Equity (6,691) (5,397)
----------- -----------
$ 2,349 $ 3,043
=========== ===========
The accompanying notes are an integral part of
these financial statements.
NOTE: The balance sheet at December 31, 1995 has been taken from the
audited financial statements at that date.
<PAGE>
MAXI GROUP, INC.
[A Development Stage Company]
STATEMENTS OF OPERATIONS
[Unaudited]
For the Three For the Six From Inception
Months Ended Months Ended on June 17,
June 30, June 30, 1986 Through
--------------------------------------- June 30,
1996 1995 1996 1995 1996
--------- --------- --------- --------- ----------
INTEREST INCOME $ 16 $ 40 $ 41 $ 97 $ 7,020
--------- --------- --------- --------- ----------
EXPENSES:
General and
administrative 635 - 1,335 454 12,767
Amortization - - - - 160
Professional fees - 516 - 3,010 52,234
Travel expense - - - - 17,517
--------- --------- --------- --------- ----------
TOTAL EXPENSES 635 516 1,335 3,464 82,678
--------- --------- --------- --------- ----------
NET LOSS (619) (476) (1,294) (3,367) (75,658)
========= ========= ========= ========= ==========
LOSS PER SHARE $ (.00) $ (.00) $ (.00) $ (.00) $ (.01)
========= ========= ========= ========= ==========
The accompanying notes are an integral part of
these financial statements.
<PAGE>
MAXI GROUP, INC.
[A Development Stage Company]
STATEMENTS OF CASH FLOWS
[Unaudited]
For the Six From Inception
Months Ended on June 17,
June 30, 1986 Through
-------------------- June 30,
1996 1995 1996
----------- ----------- -----------
Cash Flows to Operating Activities:
Net (loss) $ (1,294) $ (3,367) $ (75,658)
----------- ----------- -----------
Adjustments to reconcile net
income to net cash used by
operating activities:
Amortization expense - - 160
Changes in assets and
liabilities:
Accounts payable (4,220) 304 4,220
Payable to officer 4,820 - 4,820
----------- ----------- -----------
600 304 9,200
----------- ----------- -----------
Net Cash Flows to Operating
Activities (694) (3,063) (66,458)
----------- ----------- -----------
Cash Flows to Investing Activities:
Organization costs - - (160)
Investment in subsidiary - - (30,000)
----------- ----------- -----------
Net Cash Flows from (to)
Financing Activities - - (30,160)
----------- ----------- -----------
Cash Flows from (to) Financing
Activities:
Proceeds from common stock issuance - - 141,237
Stock offering costs - - (42,270)
----------- ----------- -----------
Net Cash Flows from (to)
Financing Activities - - 98,967
----------- ----------- -----------
Net Increase (Decrease) in Cash (694) (3,063) 2,349
Cash at Beginning of Period 3,043 6,426 -
----------- ----------- -----------
Cash at End of Period $ 2,349 $ 3,363 $ 2,349
=========== =========== ===========
The accompanying notes are an integral part of
these financial statements.
<PAGE>
MAXI GROUP, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the
Company without audit. In the opinion of management, all
adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of
operations and cash flows at June 30, 1996 and for all periods
presented have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these condensed financial statements be read
in conjunction with the financial statements and notes thereto
included in the Company's December 31, 1995 audited financial
statements. The results of operations for the period ended June
30, 1996 are not necessarily indicative of the operating results
for the full year.
NOTE 2 - RELATED PARTY TRANSACTIONS
Commencing January, 1996, the Company agreed to pay $100 per
month to a shareholder, officer and director of the Company
for accounting and office expenses. For the three and six
month periods ended June 30, 1996, the Company incurred
expenses under the agreement of $300 and $600. At January 1,
1996, the Company owed $8,440 to an accounting firm whose
managing partner was an officer and director of the Company.
On January 1, 1996 the officer terminated his employment with
the accounting firm and at the time of termination agreed to
accept one-half of the outstanding obligation, with the
balance to be paid to the accounting firm. At June 30, 1996,
the company owed to the individual $4,820. For the three and
six month periods ended June 30, 1995, the Company incurred
professional fees of $760 and $3,254 to the accounting firm
mentioned above and as of June 30, 1995, owed the firm
$7,655.
NOTE 3 - COMMON STOCK ISSUANCE
The initial issuance of the Company's common stock occurred in
June, 1986. During April, 1988, the Company completed the sale
of 2,155,000 shares of its previously authorized but unissued
common stock. The offering was registered with the Securities
and Exchange Commission on form S-18, in accordance with the
Securities Act of 1933. The stock was sold at an offering price
of $.05 per share. Proceeds, net of offering costs amounted to
$65,480. The proceeds were deposited in an interest bearing
account.
During the year ended December 31, 1993, the Company issued an
additional 18,270,000 shares of restricted common stock to the
Company's president in exchange for $18,270.
<PAGE>
MAXI GROUP, INC.
[A Development Stage Company]
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
NOTE 4 - GOING CONCERN
The accompanying financial statements have been prepared in
conformity with generally accepted accounting principles which
contemplate continuation of the Company as a going concern.
However, the Company has incurred losses since inception and has
expended all of its working capital and has not yet been
successful in establishing profitable operations. These factors
raise substantial doubt about the ability of the Company to
continue as a going concern. In this regard, management is
proposing to raise additional funds through loans and/or through
additional sales of its common stock or through a proposed
acquisition of another company by issuing common stock. There is
no assurance that the Company will be successful in raising this
additional capital. The financial statements do not include any
adjustments that might result form the outcome of these
uncertainties.
<PAGE>
MAXI GROUP, INC.
PART I FINANCIAL INFORMATION
ITEM 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations.
The Company was incorporated June 17, 1986 for the purpose of
investing in any and all types of assets, properties, and
businesses. The Company has completed a public stock offering
with 2,155,000 shares being sold. The gross proceeds of the
public offering amounted to $107,750 and offering costs of
$42,270 were offset against the proceeds. The offering was
registered on Form S-18 with the Securities and Exchange
Commission. During 1994 the Company completed a private
placement of 18,270,000 shares of common stock for proceeds of
$18,270. The Company's only business activity, to date, has been
its formation, the registration of its securities and the
preliminary investigation of potential investments and
acquisitions.
Liquidity and Capital Resources
At June 30, 1996 the Company's assets consist primarily of cash
from the issuance of common stock. The Company has no other
resources. At present, the Company is engaged in the search for
potential investments or acquisitions of private companies.
Management believes that any acquisition will be made by issuing
shares of the Company's unissued common stock. The Company's
liquidity, capital resources and financial statements will be
significantly different subsequent to the consummation of any
acquisition.
Results of Operations
The Company's only operation to date has been the preliminary
investigation of potential acquisitions.
<PAGE>
MAXI GROUP, INC.
PART II OTHER INFORMATION
ITEM 1 Legal Proceedings
None
ITEM 2 Changes in Securities
None
ITEM 3 Defaults on Senior Securities
None
ITEM 4 Submission of Matters to a Vote of Security Holders
None
ITEM 5 Other Matters
None
ITEM 6 Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None
<PAGE>
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.
MAXI GROUP, INC.
/s/ Robert W. Mann Date: January 15, 1997
- ---------------------------- -------------------------
Robert W. Mann
President
/s/ Gary B. Peterson Date: January 15, 1997
- ---------------------------- -------------------------
Gary B. Peterson
Secretary/Treasurer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MAXI GROUP,
INC. JUNE 30, 1996 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 2,349
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<RECEIVABLES> 0
<ALLOWANCES> 0
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<CURRENT-ASSETS> 2,349
<PP&E> 0
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<CURRENT-LIABILITIES> 9,040
<BONDS> 0
0
0
<COMMON> 21,925
<OTHER-SE> (28,616)
<TOTAL-LIABILITY-AND-EQUITY> 2,349
<SALES> 0
<TOTAL-REVENUES> 41
<CGS> 0
<TOTAL-COSTS> 1,335
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
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<INCOME-PRETAX> (1,294)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,294)
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<NET-INCOME> (1,294)
<EPS-PRIMARY> (.00)
<EPS-DILUTED> (.00)
</TABLE>
