UNITED STATES
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, 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 No.
33-17229-D
ART CARDS, INC.
------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Colorado 84-00978689
-------------------------------- -------------------------------
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
933 Pearl Street
Denver, Colorado 80203
--------------------------------------
(Address of principal executive offices)
Issuer's telephone number: (303) 831-9335.
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months and, (2)
has been subject to such filing requirements for the past 90 days.
YES [X] NO [ ]
As of August 15, 1996, Registrant had 878,602,000 shares of its $0.0001 par
value common stock outstanding.
<PAGE>
ART CARDS, INC.
Form 10-QSB Quarterly Report
Table of Contents
Part I - Financial Statements
Item 1 - Financial Statements
Condensed Balance Sheets
as of June 30, 1996 and December 31, 1995............................1
Condensed Statement of Operations
for the three and six months ended
June 30, 1996 and 1995...............................................3
Condensed Statement of Cash Flows
for the six months ended June 30, 1996 and 1995......................4
Notes to Condensed Financial Statements..............................5
Item 2 - Management's Discussion and Analysis or
Plan of Operation....................................................6
Part II - Other Information
Item 6 - Exhibits and Reports on Form 8-K
2
<PAGE>
<TABLE>
<CAPTION>
ART CARDS, INC.
Condensed Balance Sheets
June 30, December 31,
1996 1995
---------- -----------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash ................................ $ 998 $ 0
----------- -----------
TOTAL ASSETS ................................. $ 998 $ 0
=========== ===========
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts Payable .................... $ 1,152 $ 3,090
Accrued liabilities, officer ........ 69,755 69,755
----------- -----------
TOTAL CURRENT LIABILITIES ........... 70,907 72,845
----------- -----------
SHAREHOLDERS' DEFICIT:
Common Stock, $.0001 par value,
3,000,000,000 shares authorized,
878,602,000 shares issued and
outstanding as of June 30, 1996,
and December 31, 1995,
respectively ........................ 87,860 87,660
Additional paid-in capital .......... 950,373 950,373
Accumulated deficit ................. (1,108,142) (1,110,878)
----------- -----------
TOTAL SHAREHOLDERS' DEFICIT ......... (69,909) (72,845)
----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT ............... $ 998 $ 0
=========== ===========
</TABLE>
"See notes to condensed financial statements."
3
<PAGE>
<TABLE>
<CAPTION>
ART CARDS, INC.
Condensed Statements of Operations (Unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30, June 30, June 30,
1996 1995 1996 1995
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales, net .............................. $ 0 $ 0 $ 0 $ 0
------------ ------------ ------------ ------------
OPERATING EXPENSES:
Professional fees .............. 7,352 0 7,552 1,200
Filing Fees .................... 512 0 512 0
------------ ------------ ------------ ------------
TOTAL OPERATING
EXPENSES .............. 7,864 0 8,064 1,200
------------ ------------ ------------ ------------
NET INCOME (LOSS)
BEFORE OTHER
INCOME & EXPENSES .............. $ (7,864) $ 0 $ (8,064) $ (1,200)
OTHER INCOME AND
(EXPENSES):
Income from proposed
acquisition payments .......... 11,000 0 11,000 0
------------ ------------ ------------ ------------
NET INCOME (LOSS) ....................... $ 3,136 $ 0 $ 2,936 $ (1,200)
============ ============ ============ ============
NET INCOME (LOSS) PER
SHARE OF COMMON STOCK .................. $ * $ * $ * $ *
============ ============ ============ ============
AVERAGE COMMON SHARES
OUTSTANDING ........................... 878,602,000 866,602,000 878,602,000 866,602,000
============ ============ ============ ============
- ---------------
</TABLE>
* less than $.01 per share
"See notes to condensed financial statements."
4
<PAGE>
<TABLE>
<CAPTION>
ART CARDS, INC.
Condensed Statements of Cash Flows (Unaudited)
For the Six Months For the Six Months
Ended June 30, 1996 Ended June 30, 1995
------------------- -------------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income ............................. $ 2,936 $(1,200)
Adjustments to reconcile net
loss to net cash used in operating
activities:
Common stock issued
for services .................. $ 0 $ 1,200
------- -------
Changes in operating assets and liabilities:
Increase (decrease) in
accounts payable and other
current liabilities ........... $ 2,138 $ (107)
------- -------
NET CASH PROVIDED (USED) IN
OPERATING ACTIVITIES ............................ $ 798 $ (107)
------- -------
FINANCING ACTIVITIES:
Proceeds from
issuance of stock ...................... $ 200 $ 0
------- -------
NET CASH PROVIDED BY
FINANCING ACTIVITIES ............................ $ 200 $ 0
------- -------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ............................ $ 998 $ (107)
------- -------
CASH AND CASH EQUIVALENTS,
BEGINNING OF THE PERIOD ......................... $ 0 $ 107
------- -------
CASH AND CASH EQUIVALENTS,
END OF THE PERIOD ............................... $ 998 $ 0
======= =======
</TABLE>
"See notes to condensed financial statements."
5
<PAGE>
ART CARDS, INC.
Notes to Condensed Financial Statements (Unaudited)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and
Regulation S-B. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements. The accompanying unaudited financial
statements should be read in conjunction with the audited financial
statements included in the Company's 1995 Annual Report on Form 10-KSB.
In the opinion of management, all adjustments (consisting only of
normal recurring accruals) considered necessary in order to make the
financial statements not misleading, have been included. Operating
results for the six months ended June 30, 1996, are not necessarily
indicative of the results that may be expected for the full calendar
year ended December 31, 1996. The financial statements are presented on
the accrual basis.
NOTE B - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Liquidity and Capital Resources
During the first three months of 1996, the Company's working capital
deficit decreased by $2,736.00.
Results of Operations
The results of operations for the six months ended June 30, 1996,
reflect an unsuccessful acquisition transaction with Legacy Brands,
Inc. The results of operations for the six months ended June 30, 1995,
reflect the cessation of operations for the Company. Since the Company
has ceased operations, the Company has minimal operating expenses,
primarily representing legal and accounting fees.
6
<PAGE>
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None.
(b) Reports on Form 8-K
On June 13, 1996, the Company filed a Current Report
on Form 8-K dated May 16, 1996, reporting a change of
accountants under Item 4 and filing under Item 7 the letter on
change in certifying accountant.
7
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
Dated: August 22, 1996 /s/ Richard H. Miller
--------------------------------
Richard H. Miller
President, Chief Executive Officer
and Principal Financial Officer
8
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 998
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 998
<CURRENT-LIABILITIES> 70,907
<BONDS> 0
0
0
<COMMON> 1,038,233
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 998
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 7,864
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,136)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
