<PAGE>
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 quarterly period ended September 30, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from _________ to __________
Commission file number 33-13627
SARKIS CAPITAL, INC.
(Exact name of small business issuer as specified in its charter)
Delaware 75-2168244
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) No.)
421 E. Airport Freeway, Irving, Texas 75062
(Address of principal executive office)
(972-255-5533)
(Issuer's telephone number)
_______________________________________________________________________________
(Former name, former address and former fiscal year,
if changed since last year)
Check whether issuer (1) 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 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: At September 30, 1997, 1,500,000
shares of common stock, $0.01 par value, were outstanding.
Transitional Small Business Disclosure Format (Check one):
Yes No X
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SARKIS CAPITAL, INC.
INDEX
PAGE NUMBER
PART I FINANCIAL INFORMATION
Balance Sheet - September 30, 1997 and
September 30, 1996 1
Statement of Loss - Three months ended
September 30, 1997 - Period March 18, 1987
(date of inception) to September 30, 1997 2
Statement of Cash Flow - September 30, 1997 3
and September 30, 1996
Notes to Financial Statements 4
Management's Discussion and Analysis of
Financial Condition and Results of
Operation 5
PART II OTHER INFORMATION
Item 5. Exhibits and Reports on Form 8-K 6
SIGNATURES 7
<PAGE>
SARKIS CAPITAL, INC.
PART I - FINANCIAL INFORMATION
BALANCE SHEET
ASSETS
<TABLE>
<CAPTION>
September 30 September 30
1997 1996
Unaudited Unaudited
<S> <C> <C>
Current assets:
Cash $ 455 $ 97
Total current assets $ 455 $ 97
Other Assets:
Organization costs (less accumulated -0- -0-
amortization of $15,385 in 1993 and
and 1994
$ 455 $ 97
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 7,350 $ 6,600
Notes Payable -0- -0-
Total current liabilities $ 7,350 $ 6,600
Stockholders' Equity:
Preferred stock-par value of $0.01
per share; authorized 1,000,000 shares;
issued and outstanding -0- -0-
Common stock-par value of $0.01 per
share; authorized 20,000,000, issued
1,500,000 15,000 15,000
Additional paid-in capital 9,000 9,000
Net income (loss) (30,895) (30,503)
(6,895) ( 6,503)
$ 455 $ 97
</TABLE>
The accompanying notes are an integral part of these financial statements
1
<PAGE>
SARKIS CAPITAL, INC.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For period March
Three Months 18, 1987 (date Three months
ended of inception) ended
Sep 30, 1997 to Sep 30, 1996
(Unaudited) Sep 30, 1997 (Unaudited)
<S> <C> <C> <C>
REVENUES $ -0- $ -0- $ -0-
EXPENSES:
Operating, selling,
general and administrative 84 32,020 36
Operating gain (loss) (84) (32,020) (36)
Other income: -0- 1,125 1
Interest income
Net gain (loss) $ (84) $ (30,895) $ (35)
Gain (loss) per common share $ -0- $ (.02) $ -0-
Weighted average number of
shares outstanding $1,500,000 $ 1,500,000 $1,500,000
</TABLE>
The accompanying notes are an integral part of the financial statements.
2
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SARKIS CAPITAL, INC.
STATEMENT OF CASH FLOW
<TABLE>
<CAPTION>
September 30, September 30,
1997 1996
(Unaudited) (Unaudited)
<S> <C> <C>
Cash beginning balance $ -0- $ -0-
Net profit (loss) (30,895) (30,503)
Items using no funds outlay
Amortization-organization 15,385 15,385
Total from operations (15,510) (15,118)
Other sources (uses) of funds
Accounts payable 7,350 6,600
Notes payable -0- -0-
Organization costs (15,385) (15,385)
Common stock 15,000 15,000
Capital contributed 9,000 9,000
Total source (use) of funds 15,965 15,215
Net increase (decrease) in cash 455 97
Cash ending balance $ 455 $ 97
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
SARKIS CAPITAL, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1. Basis of Presentation
The financial information included herein is unaudited, and
reflects all adjustments which are, in the opinion of management,
necessary for a fair statement of results.
The results of operations for the quarter ended September 30, 1997
are not necessarily indicative of the results expected for a full year.
4
<PAGE>
SARKIS CAPITAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATION
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial
condition and operation results for the period included in the
accompanying financial statements.
Results of Operation and Financial Condition
For the quarter ended September 30, 1997, the Company has been in
the development stage and did not receive any operating revenues.
During this period, expenses consisted of operating costs, and combined
with interest received on money market funds the Company had a net loss
of $84. The Company has received total operating advances through this
quarter of $7,100 which are to be repaid to S. J. Kechejian, M.D. when
the Company merges with another company.
Management believes that Sarkis Capital's cash on hand and
interest earnings thereon may not be sufficient to meet cash
requirements through the remainder of the fiscal year ending March 31,
1997. An additional operating advance may be required during the
fiscal year.
5
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SARKIS CAPITAL, INC.
PART II - OTHER INFORMATION
Item 5. Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed during this quarter.
6
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SIGNATURES
Pursuant to the requirements of the Section 13 or 15 (d) 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.
DATED: November 1, 1997 By: Sarkis J. Kechejian, M.D.
Sarkis J. Kechejian, M.D.
Chairman and Chief
Executive Officer
DATED: November 1, 1997 By: Sarkis J. Kechejian, M.D.
Sarkis J. Kechejian, M.D.
President, Treasurer,
Principal Financial and
Accounting Officer
7
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> MAR-31-1997 MAR-31-1996
<PERIOD-START> JUL-01-1997 JUL-01-1996
<PERIOD-END> SEP-30-1997 SEP-30-1996
<CASH> 455 97
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 0 0
<PP&E> 0 0
<DEPRECIATION> 0 0
<TOTAL-ASSETS> 455 97
<CURRENT-LIABILITIES> 7350 6600
<BONDS> 0 0
0 0
0 0
<COMMON> 15000 15000
<OTHER-SE> (21895) (21,503)
<TOTAL-LIABILITY-AND-EQUITY> 455 97
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 0 0
<OTHER-EXPENSES> 84 36
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (84) (36)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (84) (36)
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
