<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 June 30, 1998
[ ] 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 June 30, 1998, 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 - June 30, 1998 and
June 30, 1997 1
Statement of Loss - Three months ended June 30,
1998 and June 30, 1997 - Period March 18, 1987
(date of inception) to June 30, 1998 2
Statement of Cash Flow - June 30, 1998 and
June 30, 1997 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>
SARKIS CAPITAL, INC.
PART I - FINANCIAL INFORMATION
BALANCE SHEET
ASSETS
<TABLE>
<CAPTION>
June 30, 1998 June 30, 1997
Unaudited Unaudited
<S> <C> <C>
Current assets:
Cash $ 68 $ 538
Other Assets:
Organization costs (less accumulated
amortization of $15,385 in 1993 and
$15,385 in 1993 $ -0- $ -0-
$ 68 $ 538
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Due to shareholder $ 7,350 $ 7,350
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) (31,282) (30,818)
( 7,282) ( 6,818)
Total Liabilities $ 68 $ 538
</TABLE>
The accompanying notes are an integral part of these financial statements
1
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SARKIS CAPITAL, INC.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For period March
Three Months 18, 1987 (date Three months
ended of inception) ended
June 30, 1998 to June 30, 1997
(Unaudited) June 30, 1998 (Unaudited)
<S> <C> <C> <C>
REVENUES $ -0- $ -0- $ -0-
EXPENSES:
Selling, general and
administrative 59 32,440 10,635
Operating gain (loss) (59) (32,440) (10,635)
Other income: -0- 1,158 130
Interest income
Net gain (loss) $ (59) $ (31,282) $ (10,505)
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
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SARKIS CAPITAL, INC.
STATEMENT OF CASH FLOW
<TABLE>
<CAPTION>
June 30 June 30
1998 1997
(Unaudited) (Unaudited)
<S> <C> <C>
Cash beginning balance $ -0- $ 2,591
Net profit (loss) (31,282) (10,505)
Items using no funds outlay
Amortization-organization -0- (11,283)
Total from operations (31,282) (21,788)
Other sources (uses) of funds
Organization costs -0- 15,385
Accounts payable 7,350 4,350
Common stock 15,000 -0-
Capital contributed 9,000 -0-
Total source (use) of funds 31,350 19,735
Net increase (decrease) in cash 68 (2,053)
Cash ending balance $ 68 $ 538
</TABLE>
The accompanying notes are an integral part of these financial statements.
3
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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, 1998 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, 1998, 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 $(59). The total operating advances through this quarter of
$5,250 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, 1999. 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
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, 1998 By: Sarkis J. Kechejian, M.D.
Sarkis J. Kechejian, M.D.
President, Director and
Treasurer
7
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> MAR-31-1998 MAR-31-1997
<PERIOD-START> APR-01-1998 APR-01-1997
<PERIOD-END> JUN-30-1998 JUN-30-1997
<CASH> 68 538
<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> 68 538
<CURRENT-LIABILITIES> 7,350 7,350
<BONDS> 0 0
0 0
0 0
<COMMON> 15,000 15,000
<OTHER-SE> (22,282) (21,818)
<TOTAL-LIABILITY-AND-EQUITY> 68 538
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 59 10,635
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (59) (10,635)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 0 130
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (59) (10,505)
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
