<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1997 Commission file number 33-13627
SARKIS CAPITAL, INC.
Delaware 75-2168244
(State or other jurisdiction of (I.R.S. Employer I.D.#)
incorporation or organization)
421 E. Airport Freeway, Irving, Texas 75062
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (214)-255-5533
- --------------------------------------------------------------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for 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 ( )
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at June 30, 1997
(Common stock, $0.01 par value) 1,500,000
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SARKIS CAPITAL, INC.
INDEX
PAGE NUMBER
PART I FINANCIAL INFORMATION
Balance Sheet - June 30, 1997 and
June 30, 1996 1
Statement of Loss - Three months ended June 30,
1997 and June 30, 1996 - Period March 18, 1987
(date of inception) to June 30, 1997 2
Statement of Cash Flow - June 30, 1997 and
June 30, 1996 3
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>
SAARKIS CAPITAL, INC.
PART I - FINANCIAL INFORMATION
BALANCE SHEET
ASSETS
<TABLE>
<CAPTION>
June 30, 1997 June 30, 1996
Unaudited Unaudited
<S> <C> <C>
Current assets:
Cash $ 538 $ 132
Other Assets:
Organization costs (less accumulated
amortization of $15,385 in 1993 and
$15,385 in 1993 $ -0- $ -0-
_________ _________
$ 538 $ 132
_________ _________
_________ _________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Due to shareholder $ 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) (30,818) (30,468)
________ _______
( 6,818) ( 6,468)
Total Liabilities $ 538 $ 132
________ _______
________ _______
</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
June 30, 1997 to June 30, 1996
(Unaudited) June 30, 1997 (Unaudited)
<S> <C> <C> <C>
REVENUES $ -0- $ -0- $ -0-
EXPENSES:
Selling, general and
administrative 10,635 31,970 300
________ ________ ______
Operating gain (loss) (10,635) (31,970) (300)
________ ________ ______
Other income:
Interest income 130 1,158 2
________ ________ ______
Net gain (loss) $ (10,505) $ (30,812) $ (298)
________ ________ ______
________ ________ ______
Gain (loss) per common share $ .00 $ (.02) $ .00
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
<PAGE>
SARKIS CAPITAL, INC.
STATEMENT OF CASH FLOW
<TABLE>
<CAPTION>
June 30 June 30
1997 1996
(Unaudited) (Unaudited)
<S> <C> <C>
Cash beginning balance $ 2,591 $ -0-
Net profit (loss) (10,505) (30,468)
Items using no funds outlay
Amortization-organization (11,283) -0-
_______ _______
Total from operations (21,788) (30,468)
_______ _______
Other sources (uses) of funds
Organization costs 15,385 -0-
Accounts payable 4,350 6,600
Common stock -0- 15,000
Capital contributed -0- 9,000
_______ _______
Total source (use) of funds 19,735 30,600
_______ _______
Net increase (decrease) in cash (2,053) 132
_______ _______
Cash ending balance $ 538 $ 132
_______ _______
</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 June 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 June 30, 1997, the Company has been in the
development stage and did not receive any operating revenues. During this
period, expenses consisted of Bank Service Fees and Franchise Filing Fees,
and combined with interest received on money market funds the Company had a
net loss of $(10,505). The total operating advances through this quarter of
$4,350 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, 1998. An additional operating
advance may be required during the fiscal year.
5
<PAGE>
SARKIS CAPITAL, INC.
PART II - OTHER INFORMATION
Item 5. Exhibits and Reports on Form 8-K
None.
6
<PAGE>
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: July 31, 1997 By: Sarkis J. Kechejian, M.D.
Sarkis J. Kechejian, M.D.
President, Director and
Treasurer
7
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<MULTIPLIER> 1
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> MAR-31-1997 MAR-31-1996
<PERIOD-START> APR-01-1997 APR-01-1996
<PERIOD-END> JUN-30-1997 JUN-30-1996
<CASH> 538 132
<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> 538 132
<CURRENT-LIABILITIES> 7,350 6,600
<BONDS> 0 0
0 0
0 0
<COMMON> 15,000 15,000
<OTHER-SE> (21,818) (21,468)
<TOTAL-LIABILITY-AND-EQUITY> 538 132
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 10,635 300
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (10,635) (300)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 130 2
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (10,505) (298)
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
