U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-QSB
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[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 33-8070-LA
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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: (310) 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
___ No ___.
Common Stock outstanding at September 30, 1997 - 25,925,000 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
September 30, December 31,
1997 1996
----------- -----------
CURRENT ASSETS:
Cash $ 1,794 $ 2,475
----------- -----------
Total Current Assets 1,794 2,475
----------- -----------
OTHER ASSETS:
Organization costs, net - -
----------- -----------
$ 1,794 $ 2,475
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,220 $ 4,220
Accounts payable to related party 6,320 5,420
----------- -----------
Total Current Liabilities 10,540 9,640
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock 25,925 23,925
Capital in excess of par value 47,042 47,042
Deficit accumulated during the development stage (81,713) (78,132)
----------- -----------
Total Stockholders' Deficit (8,746) (7,165)
----------- -----------
$ 1,794 $ 2,475
=========== ===========
The accompanying notes are an integral part of these
financial statements.
NOTE: The balance sheet at December 31, 1996 has been taken from the
audited financial statements at that date.
<PAGE>
MAXI GROUP, INC.
[A Development Stage Company]
STATEMENTS OF OPERATIONS
[Unaudited]
<TABLE>
<S> <C> <C> <C> <C> <C>
For the Three For the Nine From Inception
Months Ended Months Ended on June 17,
September 30, September 30, 1986 Through
__________________________________________________September 30,
1997 1996 1997 1996 1997
---------------------- -------------------- -------------
INTEREST INCOME $ 16 $ 24 $ 82 $ 65 $ 7,151
---------------------- -------------------- -------------
EXPENSES:
General and adminstrative 300 540 1,613 1,875 15,283
Amortization - - - - 160
Professional fees - 1,200 2,050 1,200 55,904
Travel expense - - - - 17,517
---------------------- -------------------- -------------
300 1,740 3,663 3,075 88,864
---------------------- -------------------- -------------
NET LOSS (284) (1,716) (3,581) (3,010) (81,713)
====================== ==================== =============
LOSS PER SHARE $ (.00) $ (.00) $ (.00) $ (.00) $ (.01)
====================== ==================== =============
</TABLE>
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 Nine From Inception
Months Ended on June 17,
September 30, 1986 Through
____________________________September 30,
1997 1996 1997
---------- ---------- -------------
Cash Flows to Operating Activities:
Net (loss) $ (3,581) $ (3,010) $ (81,713)
---------- ---------- -------------
Adjustments to reconcile net income
to net cash used by operating
activities:
Amortization expense - - 160
Changes in assets and liabilities:
Accounts payable - - 4,220
---------- ---------- -------------
- - 4,380
---------- ---------- -------------
Net Cash Flows to Operating
Activities (3,581) (3,010) (77,333)
---------- ---------- -------------
Cash Flows to Investing Activities:
Organization costs - - (160)
Investment in subsidiary - - (30,000)
Increase in related party payable 900 900 6,320
---------- ---------- -------------
Net Cash Flows from (to)
Financing Activities - - (23,840)
---------- ---------- -------------
Cash Flows from (to) Financing Activities:
Proceeds from initial issuance of
common stock - - 15,000
Proceeds from common stock issuance 2,000 2,000 96,377
Stock offering costs - - (8,410)
---------- ---------- -------------
Net Cash Flows from (to)
Financing Activities 2,000 2,000 102,967
---------- ---------- -------------
Net Increase (Decrease) in Cash (681) (110) 1,794
Cash at Beginning of Period 2,475 3,043 -
---------- ---------- -------------
Cash at End of Period $ 1,794 $ 2,933 $ 1,794
========== ========== =============
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 September 30, 1997 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, 1996
audited financial statements. The results of operations for the period ended
September 30, 1997 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 nine month periods ended September 30, 1997 and
1996, the Company incurred expenses under the agreement of $300 and $900. 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 September 30, 1997, the company
owed to the individual $6,320.
NOTE 3 -- 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 1996 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 September 30, 1997 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
None
(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: March 16, 1998
- --------------------------------------- -------------------
Robert W. Mann
President
/s/ Gary B. Peterson Date: March 16, 1998
- --------------------------------------- -------------------
Secretary/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM MAXIGROUP,
INC. SEPTEMBER 30, 1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,794
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,794
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,794
<CURRENT-LIABILITIES> 10,540
<BONDS> 0
0
0
<COMMON> 25,925
<OTHER-SE> (34,671)
<TOTAL-LIABILITY-AND-EQUITY> 1,794
<SALES> 0
<TOTAL-REVENUES> 82
<CGS> 0
<TOTAL-COSTS> 3,663
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,581)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,581)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,581)
<EPS-PRIMARY> (.00)
<EPS-DILUTED> (.00)
</TABLE>
