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 MARCH 31, 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 March 31, 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
March 31, December 31,
1998 1997
___________ ___________
CURRENT ASSETS:
Cash $ 1,335 $ 1,810
___________ ___________
Total Current Assets 1,335 1,810
___________ ___________
OTHER ASSETS:
Organization costs, net - -
___________ ___________
$ 1,335 $ 1,810
________________________
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 4,970 $ 4,970
Accounts payable to a related party 6,920 6,620
________________________
Total Current Liabilities 11,890 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 (83,522) (82,747)
________________________
Total Stockholders' Deficit (10,555) (9,780)
________________________
$ 1,335 $ 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 From Inception
Months Ended on June 17,
March 31, 1986 Through
__________________________March 31,
1998 1997 1998
_________________________________
INTEREST INCOME $ 15 $ 31 $ 7,182
______________________________
EXPENSES:
General and administration 790 762 16,373
Amortization - - 160
Professional fees - 2,050 56,654
Travel expense - - 17,517
______________________________
TOTAL EXPENSES 790 2,812 90,704
______________________________
LOSS BEFORE INCOME TAXES (775) (2,781) (83,522)
INCOME TAX EXPENSE - - -
______________________________
NET LOSS (775) (2,781) (83,522)
______________________________
LOSS PER SHARE $(.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 Three From Inception
Months Ended on June 17,
March 31, 1986 Through
____________________________March 31,
1998 1997 1998
_________________________________
CASH FLOWS TO OPERATING ACTIVITIES:
Net (loss) $(775) $ (2,781) $ (83,522
______________________________
Adjustments to reconcile net income to
net cash used by operating activities:
Amortization expense - - 160
Changes in assets and liabilities:
Accounts payable - 2,050 4,970
______________________________
- 2,050 5,130
______________________________
Net Cash Flows to Operating Activities (775) (731) (78,392
______________________________
CASH FLOWS TO INVESTING ACTIVITIES:
Organization costs - - (160)
Investment in subsidiary - - (30,000)
Increase in related party payable 300 300 6,920
______________________________
Net Cash Flows from (to) Financing
Activities 300 300 (23,240
______________________________
CASH FLOWS FROM (TO) FINANCING ACTIVITIES:
Proceeds from initial issuance of common stock - - 15,000
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 (475) 1,569 1,335
CASH AT BEGINNING OF PERIOD 1,810 2,475 -
______________________________
CASH AT END OF PERIOD $1,335 $4,044 $1,335
______________________________
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 March
31, 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 March 31, 1998 are not necessarily
indicative of the operating results for the full year.
NOTE 2
Commencing January 1, 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 months ended March 31, 1998 and 1997,
the Company incurred expenses under the agreement of $300. 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
March 31, 1998, the company owed to the individual $6,920.
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 March 31, 1998 the Company's assets consist primarily of cash from
the issuance of common stock. The Company has no other resources. The
Company has incurred losses since inception and has expended all of its
working capital. Management is proposing to raise additional funds
through loans and/or through sales of its common stock or through a
proposed acquisition of another company by issuing common stock. There
is no assurance the Company will be successful in raising this
additional capital. 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> MAR-31-1998
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0
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</TABLE>
