UNITED STATES
SECURITIES & 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 Ended March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the Transition Period from to
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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 of (I.R.S. Employer
incorporation or organization) Identification No.)
933 Pearl Street, Denver, Colorado 80203
----------------------------------------
(Address of principal executive offices)
Issuer's telephone number: (303) 831-9335
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months
and (2) has been subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
As of April 22, 1997, the issuer had 876,602,000 shares of its $0.0001 par value
common stock outstanding.
Transitional small business disclosure format:
Yes [ ] No [X]
<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 March 31, 1997 and December 31, 1996............................1
Condensed Statements of Operations
for the three months ended March 31, 1997 and 1996....................3
Condensed Statements of Cash Flows
for the three months ended March 31, 1997 and 1996....................4
Notes to Condensed Financial Statements...............................5
Item 2 - Management's Discussion and Analysis or
Plan of Operation.......................................................6
Part II - Other Information
Exhibits and Reports on Form 8-K
(A) Exhibits - None
(B) Reports on Form 8-K
i
<PAGE>
ART CARDS, INC.
<TABLE>
<CAPTION>
Condensed Balance Sheets
- ------------------------
March 31,
1997 December 31,
(unaudited) 1996
--------- -----------
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash ............................................. $ 44 $ 62
----------- -----------
TOTAL ASSETS ..................................... 44 62
=========== ===========
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts Payable ................................. $ 0 $ 0
Accrued liabilities, officer ..................... 70,430 69,855
----------- -----------
TOTAL CURRENT LIABILITIES ........................ 70,430 69,855
----------- -----------
SHAREHOLDERS' DEFICIT:
Common Stock, $.0001 par value,
3,000,000,000 shares authorized,
878,602,000 shares issued and
outstanding as of March 31,
1997, and December 31, 1996,
respectively ..................................... 87,660 87,660
Additional paid-in capital ....................... 950,373 950,373
Accumulated deficit .............................. (1,108,419) (1,107,826)
----------- -----------
TOTAL SHAREHOLDERS' DEFICIT ...................... (70,386) (69,793)
----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' DEFICIT ............................ $ 44 $ 62
=========== ===========
</TABLE>
"See notes to condensed financial statements."
1
<PAGE>
ART CARDS, INC.
<TABLE>
<CAPTION>
Condensed Statements of Operations (unaudited)
- ---------------------------------------------
For the Three For the Three
Months Ended Months Ended
March 31, March 31,
1997 1996
------------ ------------
<S> <C> <C>
Sales, net .......................................... $ 0 $ 0
----------- -----------
OPERATING EXPENSES:
Bank charges ............................... 18 --
Professional fees .......................... 575 200
----------- -----------
TOTAL OPERATING EXPENSES ................... 593 200
----------- -----------
NET (LOSS) .......................................... $ (593) $ (200)
=========== ===========
NET INCOME (LOSS)
PER SHARE OF COMMON STOCK ........................... $ * $ *
=========== ===========
AVERAGE COMMON SHARES OUTSTANDING ................... 878,602,000 878,602,000
=========== ===========
</TABLE>
* less than $.01 per share
"See notes to condensed financial statements."
2
<PAGE>
ART CARDS, INC.
<TABLE>
<CAPTION>
Condensed Statements of Cash Flows (Unaudited)
- ---------------------------------------------
For the Three For the Three
Months Ended Months Ended
March 31, March 31,
1997 1996
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net (Loss) .......................................... $ (593) $ (200)
Adjustments to reconcile net loss
to net cash used in operating
activities:
Common stock issued for services .................. 0 0
--------- --------
Changes in operating assets and liabilities:
Increase (decrease) in accounts
payable and other current
liabilities ..................................... 575 0
--------- --------
NET CASH USED IN OPERATING ACTIVITIES ........................ (18) (200)
--------- --------
FINANCING ACTIVITIES:
Proceeds from issuance of
Common stock ...................................... 0 200
NET CASH PROVIDED BY OPERATING ACTIVITIES .................... 0 200
--------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ....................................... (18) 0
--------- --------
CASH AND CASH EQUIVALENTS,
BEGINNING OF THE PERIOD .................................... $ 62 $ 0
--------- --------
CASH AND CASH EQUIVALENTS,
END OF THE PERIOD .......................................... $ 44 $ 0
========= ========
</TABLE>
"See notes to condensed financial statements."
3
<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 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 three months ended March 31, 1997, are not necessarily indicative
of the results that may be expected for the full calendar year ended
December 31, 1997. 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 1997, the Company's working capital
deficit increased by $593.00.
Results of Operations
The results of operations for the three months ended March 31, 1997 and
1996 reflect the cessation of operations of the Company. Since the
Company has ceased operations, it has minimal operating expenses.
Operating expenses primarily represent legal and account ing fees.
4
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: April 20, 1997 /s/ Richard Miller
-----------------------------------
Richard Miller
President, Chief Executive Officer
and Principal Financial Officer
5
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<PERIOD-START> JAN-01-1997
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 44
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 44
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 70,430
<BONDS> 0
0
0
<COMMON> 87,660
<OTHER-SE> (158,046)
<TOTAL-LIABILITY-AND-EQUITY> 44
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 593
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (593)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (593)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
