<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 December 31, 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 December 31, 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 - December 31, 1998 and
December 31, 1997 1
Statement of Loss - Three months ended
December 31, 1998 - Period March 18, 1987
(date of inception) to December 31, 1998 2
Statement of Cash Flow - For period 3
March 18, 1987 (date of inception) to
December 31, 1998 and for period
March 18, 1987 (date of inception) to
December 31, 1997
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
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SARKIS CAPITAL, INC.
PART I - FINANCIAL INFORMATION
BALANCE SHEET
ASSETS
<TABLE>
<CAPTION>
December 31 December 31
1998 1997
Unaudited Unaudited
<S> <C> <C>
Current assets:
Cash $ 473 $ 411
Total current assets $ 473 $ 411
$ 473 $ 411
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 7,850 $ 7,350
Notes Payable -0- -0-
Total current liabilities $ 7,850 $ 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) ( 31,377) (30,532)
( 7,377) (6,532)
$ 473 $ 68
</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
Dec 30, 1998 to Dec 30, 1997
(Unaudited) Dec 30, 1998 (Unaudited)
<S> <C> <C> <C>
REVENUES $ -0- $ -0- $ -0-
EXPENSES:
Operating, selling,
general and administrative 48 32,535 44
Operating gain (loss) (48) (32,535) (44)
Other income: -0- 1,158 -0-
Interest income
Net gain (loss) $ (48) $ (31,377) $ (44)
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
<PAGE>
SARKIS CAPITAL, INC.
STATEMENT OF CASH FLOW
<TABLE>
<CAPTION>
December 30, December 30,
1998 1997
(Unaudited) (Unaudited)
<S> <C> <C>
Cash beginning balance $ -0- $ -0-
Net profit (loss) (31,377) (30,939)
Items using no funds outlay
Amortization-organization 15,385 15,385
Total from operations (15,992) (15,554)
Other sources (uses) of funds
Accounts payable 7,850 7,350
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 16,465 15,965
Net increase (decrease) in cash 473 411
Cash ending balance $ 473 $ 411
</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 December 31, 1998 are not
necessarily indicative of the results expected for a full year.
4
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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 December 31, 1998, the Company has been in the
development stage and did not receive any operating revenues. During this
period, expenses consisted of bank service charges, making the Company have
a net loss of $48. The Company has received total operating advances
through this quarter of $7,850 from Sarkis J. Kechejian, M.D. which are to
be repaid 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
No reports on Form 8-K were filed during this quarter.
6
<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.
DATED: January 31, 1998 By: Sarkis J. Kechejian, M.D.
Sarkis J. Kechejian, M.D.
Chairman and Chief
Executive Officer
DATED: January 31, 1998 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-31-1998 MAR-31-1997
<PERIOD-START> OCT-01-1998 OCT-01-1997
<PERIOD-END> DEC-31-1998 DEC-31-1997
<CASH> 473 411
<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> 473 411
<CURRENT-LIABILITIES> 7,850 7,350
<BONDS> 0 0
0 0
0 0
<COMMON> 15,000 15,000
<OTHER-SE> (22,377) (21,939)
<TOTAL-LIABILITY-AND-EQUITY> 473 411
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 48 44
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> (48) (44)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (48) (44)
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
</TABLE>
