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Previous: PENN TREATY AMERICAN CORP, S-4, 1996-05-14 |
Next: DATRONIC EQUIPMENT INCOME FUND XVI L P, 10-Q, 1996-05-14 |
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
--------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 0-17345
W-J International, Ltd.
(Formerly Wetjet International, Inc.)
(Exact name of small business issuer as specified in its charter)
Delaware 41-1578316
(State of other jurisdiction (I.R.S. Employer
of organization) Identification No.)
23 Washburne Avenue
Paynesville, Minnesota 56362
(Address of principal executive offices)
612-243-3311
(Registrant's telephone number, including area code)
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 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
At May 10, 1996, 12,214,632 shares of registrant's common stock (par value,
$.01) were outstanding.
Transitional Small Business Disclosure Format: Yes No X
<PAGE>
W-J International, Ltd.
Balance Sheet
<TABLE>
<CAPTION>
March 31, September 30,
1996 1995
(Unaudited) (Audited)
ASSETS
<S> <C> <C>
Current Assets:
Cash $326,324 $338,358
------- -------
Total current assets 326,324 338,358
------- -------
Property and equipment:
Land 30,648 30,648
Buildings 374,266 374,266
------- -------
404,914 404,914
------- -------
Less: accumulated depreciation (93,733) (86,137)
------ -------
Net property and equipment 311,181 318,777
------ -------
Total Assets $637,505 $657,135
====== =======
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt $177,998 $172,862
Operations borrowing 2,624 2,624
Accounts payable - Trade 0 0
Accrued expenses 93,565 85,248
Due to related parties 27,323 53,941
Notes payable - related parties 14,956 20,264
------ ------
Total current liabilities 316,466 334,939
------- -------
Long-term debt, net of current portion 80,483 96,045
------ ------
Stockholders equity:
Common stock, $.01 par value, 20,000,000 shares authorized, 122,146 122,146
12,214,632 shares issued and outstanding 2,274,840 2,274,840
Additional paid-in capital (2,156,430) (2,170,835)
--------- ---------
Accumulated deficit
Total stockholders equity 240,556 226,151
------- -------
Total liabilities and stockholders equity $637,505 $657,135
======= =======
</TABLE>
See notes to financial statements
<PAGE>
W-J International, Ltd.
Statements of operations
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
1996 1995 1996 1995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Rental Income $ 20,489 $ 17,489 $ 40,978 $ 29,148
Gain on extinguishment of debt $ 0 $ 0 $ 0 $ 56,156
------------ ------------ ------------ ------------
Total Income $ 20,489 $ 17,489 $ 40,978 $ 85,304
Expenses:
General & Administrative (1,342) 42,381 4,124 60,974
Interest 1,989 3,099 4,897 7,449
------------ ------------ ------------ ------------
647 45,480 9,021 68,423
Income (loss) from
continuing operations
before discontinued
operations and
extraordinary items 19,841 (27,991) (31,956) 16,881
Discontinued Operations:
Discontinued Operations 11,065 0 17,551 0
Extraordinary Item 0 100,000 0 100,000
------------ ------------ ------------ ------------
Income (Loss) from discontinued
operations and extraordinary item (11,065) 100,000 (17,551) 100,000
Net Income (loss) 8,777 72,009 14,405 116,881
============ ============ ============ ============
Weighted average common shares
outstanding during period 12,214,632 12,214,632 12,214,632 12,214,632
============ ============ ============ ============
Net (loss) per share $ 0.00 $ 0.01 $ 0.00 $ 0.01
============ ============ ============ ============
</TABLE>
See notes to financial statements
<PAGE>
W-J International, Ltd.
Statement of Cash Flows
Increase (Decrease) in Cash
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
CASH FLOWS FROM OPERATING ACTIVITIES 1996 1995 1996 1995
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net (Loss) $8,777 $72,009 $14,405 $116,881
Adjustments to reconcile net (loss) to net cash flows
from operating activities:
Depreciation 3,798 3,798 7,596 7,596
Changes in:
Accounts receivables - Trade 0 0 0 0
Accounts receivables - Related parties 0 0 0 0
Prepaid expenses 0 0 0 0
Accounts payables - Trade 0 0 0 0
Accounts payables - Related parties (2,654) 0 (31,926) 0
Accrued expenses (4,620) 0 (923) (22,677)
------- ------ ------- --------
Net cash flows from operating activities 5,301 75,807 (10,848) (101,800)
------- ------ ------- --------
Cash flow from investing activities:
Purchase of property and equipment 0 0 0 0
Net cash flows from investing activities 0 0 0 0
------- ------ ------ ------
Cash flows from financing activities:
Gain on extinguishment of debt 0 0 0 0
Principal payments on long-term debt (6,000) (4,152) (10,426) (142,950)
----- ----- ------ -------
Net cash flows from financing activities (6,000) (4,152) (10,426) (142,950)
----- ----- ------ -------
Net increase (decrease) in cash (699) 71,655 (21,274) (41,150)
Cash, beginning of year 317,783 245,504 338,358 358,309
------- ------- ------- -------
Cash, end of year $317,084 $317,159 $317,084 $317,159
======= ======= ======= =======
</TABLE>
See notes to financial statements
<PAGE>
W-J International, Ltd.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The condensed balance sheet as of March 31, 1996 (Unaudited) and September
30, 1995 (Audited) and the related statement of operations and cash for the
three and six-month periods ended March 31, 1996 (Unaudited) are enclosed. In
the opinion of management, all adjustments for a fair presentation of such
financial statements have been included. Such adjustments consisted only of
normal recurring items.
The financial statements and notes are presented as permitted by Form 10-Q
and contain certain information included in the Company's annual financial
statements and notes of W-J International, Ltd., a Delaware corporation ("W-J"
or the "Company").
Note 2. INVENTORIES
Inventories consist of the following:
March 31, September 30,
1996 1995
Parts and Components $ 0 $ 0
Finished Units 0 0
------------- ------------
Total $ 0 $ 0
============= =============
Note 3. STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
(Audited) (Unaudited)
September 30, Equity Charges March 31,
1995 Due to Operation 1996
<S> <C> <C> <C>
Number of shares 12,214,632 0 12,214,632
Common Stock 122,146 0 122,146
Additional Paid-In Capital 2,274,840 0 2,274,840
Retained Earnings
(Accumulated Deficit) (2,170,835) 14,405 (2,156,430)
Total 226,151 14,405 240,556
</TABLE>
<PAGE>
Item 2 - Management's Discussion and Analysis of Results of Operations and
Financial Condition.
RESULTS OF OPERATIONS
Rental income for the six-month period ended March 31, 1996 increased 41%
to $40,978 from $29,148 for the six-month period March 31, 1995. Rental income
for the three-month period ended March 31, 1996 increased 17% to $20,489 from
$17,489 for the three-month period ended March 31, 1996. The increase in rent
for the three-month and six-month periods ending March 31, 1996 as compared to
the three-month and six-month periods ending March 31, 1995 was primarily due to
the tenant renting additional square footage.
Expenses for the six-month period ended March 31, 1996 decreased 93% to
$4,124 from $60,974 for the six-month period March 31, 1995. Expenses for the
three-month period ended March 31, 1996 decreased 103% to ($1,342) from $42,381
for the three-month period ended March 31, 1996. The decrease in expenses for
the three-month and six-month periods ending March 31, 1996 as compared to the
three-month and six-month periods ending March 31, 1995 was primarily related to
the company's limited activities.
Discontinued operations expenses for the six-month period ended March 31,
1996 were $17,551 while expenses for the three month period ended March 31, 1996
was $11,065.
Net income for the six-month period ended March 31, 1996 decreased 88% to
$14,405 from $116,881 for the six-month period March 31, 1995. Net income for
the three-month period ended March 31, 1996 decreased 88% to $8,777 from $72,009
for the three-month period ended March 31, 1996. The decrease in expenses for
the three-month and six-month periods ending March 31, 1996 as compared to the
three-month and six-month periods ending March 31, 1995 was primarily related
the recovery of funds in the three-month period ended March 1995 paid in prior
years related to tooling that was never provided by the contracted vendor.
LIQUIDITY AND CAPITAL RESOURCES
The Company's working capital increased to $9,858 for the three-months
ended March 31, 1996 from $3,419 for the year ended September 30, 1995. The
Company has operated on limited and deficit working capital since the first
quarter of 1989 when the Company's previous bank demanded immediate repayment of
and cancelled the Company's bank line of credit.
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of security holders during the quarter
ended March 31, 1996.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27: Financial Data Schedule (filed only in electronic format)
(b) Reports on Form 8-K.
No report on Form 8-K was filed during the three-month period ended March
31, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Issuer has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.
W-J International, Ltd.
("Small Business Issuer")
By /s/ Edward H. Webb
Edward H. Webb,President
(Principal executive and
principal financial officer)
Date: May 10, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 326,324
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 326,324
<PP&E> 404,914
<DEPRECIATION> (93,733)
<TOTAL-ASSETS> 637,505
<CURRENT-LIABILITIES> 316,466
<BONDS> 0
0
0
<COMMON> 122,146
<OTHER-SE> 2,274,840
<TOTAL-LIABILITY-AND-EQUITY> 637,505
<SALES> 0
<TOTAL-REVENUES> 40,978
<CGS> 0
<TOTAL-COSTS> 4,124
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,897
<INCOME-PRETAX> 31,956
<INCOME-TAX> 0
<INCOME-CONTINUING> 31,956
<DISCONTINUED> 17,551
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 14,405
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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