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 31-Mar-98
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.
(Exact name of small business issuer as specified in its charter)
Delaware 41-1578316
(State of other jurisdiction of (I.R.S. Employer
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 15, 1998 12,214,632 shares of registrant's common stock (par value, $.01)
were outstanding.
This report contains 8 pages.
<PAGE>
W-J International, Ltd.
Balance Sheet
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
(Unaudited) (Audited)
----------- -----------
A S S E T S
Current Assets:
<S> <C> <C>
Cash and Cash equivalents $ 14,430 $ 8,741
Certificates of Deposit $ 151,791 $ 179,852
Liabilities with Debit Balance $ 8,325 $ 0
----------- -----------
Total current assets 174,546 188,593
----------- -----------
Property and equipment:
Land 30,648 30,648
Buildings 374,266 374,266
----------- -----------
404,914 404,914
Less: accumulated depreciation (118,251) (110,655)
----------- -----------
Net property and equipment 286,663 294,259
----------- -----------
Total Assets $ 461,209 $ 482,852
=========== ===========
L I A B I L I T I E S A N D E Q U I T Y
Current liabilities:
Current portion of long-term debt $ 23,782 $ 23,782
Accrued expenses 4,471 396
----------- -----------
Total current liabilities 28,253 24,178
----------- -----------
Long-term debt, net of current portion 47,038 56,200
----------- -----------
Stockholders equity:
Common stock, $.01 par value; 20,000,000 shares
authorized, 12,214,632 shares issued and outstanding 122,146 122,146
Additional paid-in capital 2,274,840 2,274,840
Accumulated deficit (2,011,068) (1,994,512)
----------- -----------
Total stockholders equity 385,918 402,474
----------- -----------
Total liabilities and stockholders equity $ 461,209 $ 482,852
=========== ===========
</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,
1998 1997 1998 1997
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Rental Income: $ 3,000 $ 28,200 $ 6,000 $ 56,400
Expenses:
General & Administrative 9,909 3,819 21,282 13,671
Interest (3,740) 1,237 (4,154) 3,451
------------ ------------ ------------ ------------
6,169 5,056 17,128 17,122
------------ ------------ ------------ ------------
Income from continuing operations before
discontinued operations (3,169) 23,144 (11,128) 39,278
Discontinued Operations:
Discontinued Operations (5,428) (6,769) (5,428) (9,356)
Loss from discontinued operations and extraordinary item (5,428) (6,769) (5,428) (9,356)
Net Income (8,597) 16,375 (16,556) 29,922
============ ============ ============ ============
Weighted average common shares outstanding during period 12,214,632 12,214,632 12,214,632 12,214,632
============ ============ ============ ============
Net Income per share ($ 0.00) $ 0.00 ($ 0.00) $ 0.00
============ ============ ============ ============
</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 1998 1997 1998 1997
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------------------- ----------------------
<S> <C> <C> <C> <C>
Net Income ($ 8,597) $ 16,375 ($ 16,556) $ 29,922
Adjustments to reconcile net income to net
cash flows from operating activities:
Depreciation 3,798 3,798 $ 7,596 7,596
Changes in:
Notes payables - Trade 0 (2,007) 0 25,316
Accounts Receivable (1,375) (1,375)
Notes payables - Related parties 0 (993) 0 (39,593)
Accrued expenses 3,424 (27,323) 4,074 (27,323)
--------- --------- --------- ---------
Net cash flows from operating activities (2,750) (10,150) (6,261) (4,082)
--------- --------- --------- ---------
Cash flows 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:
Principal payments on long-term debt (6,461) (4,050) (9,161) (8,101)
--------- --------- --------- ---------
Net cash flows from financing activities (6,461) (4,050) (9,161) (8,101)
--------- --------- --------- ---------
Net increase (decrease) in cash (9,211) (14,200) (15,422) (12,183)
Cash, beginning of period 175,432 211,858 181,643 209,841
--------- --------- --------- ---------
Cash, end of period $ 166,221 $ 197,658 $ 166,221 $ 197,658
========= ========= ========= =========
</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, 1998 (Unaudited) and
September 30, 1997 (Audited) and the related statement of operations
and cash flow for the three and six-month periods ended March 31,
1998 (Unaudited) are enclosed. In the opinion of management, all
adjustments necessary 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-QSB 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,
1998 1997
---------- ---------
Parts and $ 0 $ 0
Components
Finished Units 0 0
---------- ---------
========== =========
Total $ 0 $ 0
========== =========
Note 3. STOCKHOLDERS' EQUITY
(Audited) Equity Changes (Unaudited)
September 30, Due to Operation March 31,
1997 1998
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) (1,994,512) (16,556) (2,011,068)
Total 402,474 (16,556) 385,918
<PAGE>
Item 2 - Management's Discussion and Analysis or Plan of Operations
RESULTS OF OPERATIONS
Rental Income for the six-month period ended March 31, 1998
decreased 89% to $6,000 from $56,400 for the six-month period March 31,
1997. Rental Income for the three-month period ended March 31, 1998
decreased 89% to $3,000 from $28,200 for the three-month period ended
March 31, 1997. The decrease in rent for the second quarter of fiscal
1998 was primarily due to the fact that the one-year lease agreement
that the Company had with one of its lessees was not extended beyond
its March 31, 1997 termination date. The Company has not yet replaced
this renter, and rental income is the Company's only source of income
at this time.
Expenses for the six-month period ended March 31, 1998
increased 22% to $6,169 from $5,056 for the six-month period March 31,
1997. Expenses for the six-month period ended March 31, 1998 increased
to $17,126 from $17,122 for the three-month period ended March 31,
1997.
Discontinued Operation expenses for the six-month period ended
March 31, 1998 was $5,428 while expenses for the three-month period
ended March 31, 1997 was $9,356. Discontinued Operations expenses for
the three-month period ended March 31, 1998 was $5,428 while expenses
for the three-month period ended March 31, 1997 was $6,769.
Net Income for the six-month period ended March 31, 1998
decreased 155% to a deficit of $16,556 from a profit of $29,922 for the
six-month period March 31, 1997. Net Income for the three-month period
ended March 31, 1998 decreased 153% to a deficit of $8,597 from a
profit of $16,375 for the three-month period March 31, 1997. This
significant change from 1997 arises from the Company's inability to
secure a renter for its building.
LIQUIDITY AND CAPITAL RESOURCES
The Company's working capital decreased to $146,293 for the
six-month period ended March 31, 1998 from $164,415 for the year ended
September 30, 1997. The Company intends to continue to seek and
evaluate alternatives in order to begin operations again and to improve
the Company's financial condition, including merger and acquisition
opportunities. In the interim, the Company will seek a renter or
purchaser for its building. Because the Company will not restart
operations of any type until a business opportunity arises for such, it
does not anticipate raising additional funds and believes it has
sufficient means to meet its capital requirements for the remainder of
fiscal year 1988.
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, 1998.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
No exhibits are required to be filed for the three-month period ended
March 31, 1998.
(b) Reports on Form 8-K.
No report on Form 8-K was filed during the three-month period ended
March 31, 1998.
<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
Date: May 15, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAR-31-1998
<EXCHANGE-RATE> 1
<CASH> 166,221
<SECURITIES> 0
<RECEIVABLES> 8,325
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 174,546
<PP&E> 404,914
<DEPRECIATION> (118,251)
<TOTAL-ASSETS> 461,209
<CURRENT-LIABILITIES> 28,253
<BONDS> 0
0
0
<COMMON> 122,146
<OTHER-SE> 263,772
<TOTAL-LIABILITY-AND-EQUITY> 461,209
<SALES> 0
<TOTAL-REVENUES> 6,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 17,128
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (4,154)
<INCOME-PRETAX> (11,128)
<INCOME-TAX> 0
<INCOME-CONTINUING> (11,128)
<DISCONTINUED> (5,428)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (16,556)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
