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, 1998
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: (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 X No ___.
Common Stock outstanding at June 30, 1998 - 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
June 30, December 31,
1998 1997
___________ ___________
CURRENT ASSETS:
Cash $ 2,854 $ 1,810
___________ ___________
Total Current Assets 2,854 1,810
___________ ___________
OTHER ASSETS:
Organization costs, net - -
_________ _________
$ 2,854 $ 1,810
_________ _________
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,220 $ 4,970
Accounts payable to a related party 10,220 6,620
_________ _________
Total Current Liabilities 14,440 11,590
_________ _________
STOCKHOLDERS' EQUITY:
Common stock 25,925 25,925
Capital in excess of par value 47,042 47,042
Deficit accumulated during the development stage (84,553) (82,747)
_________ _________
Total Stockholders' Deficit (8,462) (9,780)
_________ _________
$ 2,854 $ 1,810
_________ _________
The accompanying notes are an integral part of
these financial statements.
NOTE: The balance sheet at December 31, 1997 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,
1998 1997 1998 1997 1998
_______________________________________________________
INTEREST INCOME $ 19 $ 35 $ 34 $ 66 $ 7,201
_______________________________________________________
EXPENSES:
General administrative 300 550 1,091 1,313 16,674
Amortization - - - - 160
Professional fees 750 - 750 2,050 57,403
Travel expense - - - - 17,517
_______________________________________________________
TOTAL EXPENSES 1,050 550 1,841 3,363 91,754
_______________________________________________________
NET LOSS (1,031) (515) (1,807) (3,297) (84,553)
_______________________________________________________
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,
1998 1997 1998
_________________________________
CASH FLOWS TO OPERATING ACTIVITIES:
Net (loss) $(1,807) $(3,297) $(84,554)
______________________________
Adjustments to reconcile net income to
net cash used by operating activities:
Amortization expense - - 160
Changes in assets and liabilities:
Accounts payable (749) 2,300 4,221
______________________________
(749) 2,300 4,381
______________________________
Net Cash Flows to Operating Activities (2,556) (997) (80,173)
______________________________
CASH FLOWS TO INVESTING ACTIVITIES:
Organization costs - - (160)
Investment in subsidiary - - (30,000)
Increase in related party payable 3,600 600 10,220
______________________________
Net Cash Flows from (to) Financing
Activities 3,600 600 (19,940)
______________________________
CASH FLOWS FROM (TO) FINANCING ACTIVITIES:
Proceeds from initial issuance of common stock - - 15,000
Net proceeds from common stock issuance - 2,000 96,377
Stock offering costs - - (8,410)
______________________________
Net Cash Flows from (to) Financing
Activities - 2,000 102,967
______________________________
NET INCREASE (DECREASE) IN CASH 1,044 1,603 2,854
CASH AT BEGINNING OF PERIOD 1,810 2,475 -
______________________________
CASH AT END OF PERIOD $ 2,854 $ 4,078 $ 2,854
______________________________
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,
1998 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, 1997 audited financial statements. The results of
operations for the period ended June 30, 1998 are not necessarily
indicative of the operating results for the full year.
NOTE 2
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,
1998 and 1997, 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, 1998, the company owed to the
individual $7,220.
The majority shareholder (who is also an officer and a director of the
Company) advanced the Company $3,000 during the current quarter. The
officer has agreed to accept unregistered common stock in exchange for
the debt at $.001 per share.
NOTE 3
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, 1998 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 8, 1999
Robert W. Mann
President
/s/ Gary B. Peterson Date: March 8, 1999
Gary B. Peterson
Secretary/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MAXI GROUP, INC. AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
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<PERIOD-END> JUN-30-1998
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