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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997
COMMISSION FILE NO. 33-17966-LA
XANTHIC ENTERPRISES, INC.
A Colorado Corporation EIN: 94-3030021
8833 Sunset Blvd. Suite 200
West Hollywood, CA 90069
Telephone: 310-289-4947
Securities registered under Section 12(g) of the Exchange Act:
Common Shares and Series A and Series B
Common Stock Purchase Warrants
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The registrant has filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months or such shorter period for
which such reports were required.
The Company's Form 10-K for the fiscal year ended December 31, 1996 was
filed late.
The number of common shares issued and outstanding as of December 31, 1996
was 5,481,826.
This report form is not filed as a transitional format.
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS.
The Company's unaudited financial statements for the first quarter of 1997
are at the end of this report.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION.
(1) LIQUIDITY. The Company has no cash assets and no liquidity.
(2) CAPITAL RESOURCES. The Company has no capital resources.
(3) RESULTS OF OPERATIONS. The Company has not operated during the past
fiscal year and there are no results of operations.
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
On November 2, 1991 the State of Oregon issued a cease and desist order
ordering the Company to cease and desist issuing unregistered securities in
the State of Oregon. The proceeding was based on the distribution of shares
and warrants to Oregon shareholders (registered by way of an S-18
registration statement) pursuant to the agreement for such distribution
between the Company and Automated Services, Inc.
On April 2, 1992 the State of Oregon issued a final order to cease and
desist violating any provision of Oregon Securities Law. Xanthic was denied
the use of any statutory exemption provided in ORS 59.022 and ORS 59.035.
Xanthic was assessed three civil penalties of $ 750.00 each for violating ORS
59.055 and ORS 59.132(2). Directors Mark Lilly and Glenn DeCicco were ordered
to cease and desist violating any provision of ORS Chapter 59. Neither the
Company nor the Directors appealed.
The Company has been advised that the effect of the Oregon ruling was to
invalidate the issuance and distribution of the registered shares and warrants
to residents of Oregon until such time as said securities are registered
pursuant to the provisions of the Oregon Securities Law. According to the
records of the transfer agent, the number of shareholders with Oregon addresses
is 645. According to these records the shareholders with Oregon addresses own
108,331 common shares of the Company. The 108,331 shares represent approximately
1.9% of the issued and outstanding shares of the Company.
ITEM 2. CHANGES IN SECURITIES
There have been no changes in the rights, preferences or privileges of
any security of the Company during the first quarter of 1997 other than as
the action of the State of Oregon may affect these matters.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
There has been no default on any security during the first quarter of 1997.
2
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ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters have been submitted to a vote of security holders during
the first quarter of 1997.
ITEM 5. OTHER INFORMATION
N/A
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
During the first quarter of 1997 the Company filed no reports on Form 8-K.
FINANCIAL STATEMENTS.
The Company's unaudited financial statements for the period ending March
31, 1997 follow this page.
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XANTHIC ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
March 31,
December 31, ------------------
1996 1997 1996
------------ -------- --------
(Audited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ - $ - $ -
-------- -------- --------
$ - $ - $ -
-------- -------- --------
-------- -------- --------
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 13,859 $ 43,659 $ 13,330
STOCKHOLDERS' EQUITY
Common stock - $.0001 par,
50,000,000 shares authorized, 5,481,826
issued and outstanding 548 548 548
Paid in capital 11,651 11,651 11,651
Retained deficit (26,058) (55,858) (25,529)
-------- -------- --------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (13,859) (43,659) (13,330)
-------- -------- --------
$ - $ - $ -
-------- -------- --------
-------- -------- --------
4
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XANTHIC ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For The Year For The Three Month
ending December 31, ending March 31, October 27, 1986
------------------- ----------------------- (Date of inception)
1996 1997 1996 to March 31, 1997
-------- ------- --------- ------------------
(Audited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ -
---------- ---------- ---------- ----------
OPERATING EXPENSES:
General and administrative 693 29,800 173 48,454
---------- ---------- ---------- ----------
Loss from operations (693) (29,800) (173) (48,454)
OTHER INCOME (EXPENSES)
Interest expense (12) - (3) (6,639)
Aborted offering costs - - - (17,066)
Debt relief - - - 17,051
Penalty - - - (750)
---------- ---------- ---------- ----------
TOTAL OTHER INCOME (EXPENSE) (12) - (3) (7,404)
---------- ---------- ---------- ----------
NET LOSS $ (705) $ (29,800) $ (176) $ (55,858)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
NET LOSS PER COMMON SHARE $ (.0001) $ (.005) $ 0 $ (.01)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 5,481,826 5,481,826 5,481,826 5,481,826
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
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XANTHIC ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
Accumulated
Common Stock deficit during
------------------------ Paid in development
Shares Amount Capital stage Total
---------- -------- ------- ---------- --------
<S> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1995 5,481,826 $ 548 $11,651 $ (25,353) $(13,154)
--------- --------- -------- ---------- --------
Net loss for year - - - (705) (705)
--------- --------- -------- ---------- --------
BALANCE, DECEMBER 31, 1996 5,481,826 $ 548 $11,651 $ (26,058) $(13,859)
--------- --------- -------- ---------- --------
Net loss for period - - - (29,800) (29,800)
--------- --------- -------- ---------- --------
BALANCE, MARCH 31, 1997 5,481,826 $ 548 $11,651 $ (55,858) $(43,659)
--------- --------- -------- ---------- --------
--------- --------- -------- ---------- --------
</TABLE>
6
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XANTHIC ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
For the year For the three months
ending December 31, ending March 31, October 27, 1986
------------------ -------------------- (Date of inception)
1996 1997 1996 to March 31, 1997
------ ------ ------ -----------------
(Audited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (705) $(29,800) $(176) $(55,858)
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Common stock issued for services - - - 31
Changes in operating assets and liabilities:
Accounts payable 705 29,800 176 43,659
------- -------- ----- --------
NET CASH USED IN OPERATING ACTIVITIES - - - (12,168)
------- -------- ----- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock - - - 12,168
------- -------- ----- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES - - - 12,168
------- -------- ----- --------
NET INCREASE (DECREASE) IN CASH - - - -
CASH, BEGINNING OF PERIOD - - - -
------- -------- ----- --------
CASH, END OF PERIOD $ - $ - $ - $ -
------- -------- ----- --------
------- -------- ----- --------
</TABLE>
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SIGNATURE
In accordance with Section 13 or 15(d) of the Securities Exchange Act of
1934, this registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
XANTHIC ENTERPRISES, INC.
Dated: 5/5/97
--------------------------------------------------------
By: /s/ Mark A. Lilly
-------------------------------------------------------------------------
Mark A. Lilly, President and Chief Financial Officer
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CORPORATIONS FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1997, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 43,659
<BONDS> 0
0
0
<COMMON> 5,481,826
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> (43,659)
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> (29,800)
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
