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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 JUNE 30, 1996
COMMISSION FILE NO. 33-17966-LA
XANTHIC ENTERPRISES, INC.
A Colorado Corporation EIN: 94-3030021
8833 Sunset Blvd. # 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, 1995 was
filed late.
The number of common shares issued and outstanding as of March 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 second quarter of 1996
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, Mark Lilly and Glenn DeCicco were assessed 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. The number of shares
affected by the ruling is estimated to be 188,000 shares owned by approximately
650 residents of Oregon. The 188,000 shares represent approximately 3.4% 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 second quarter of 1996 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 second quarter of
1996.
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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 second quarter of 1996.
.
ITEM 5. OTHER INFORMATION
N/A
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
During the second quarter of 1996 the Company filed no reports on Form 8-K.
FINANCIAL STATEMENTS.
The Company's unaudited financial statements for the period ending June 30,
1996 follow this page.
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XANTHIC ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
June 30,
December 31, ---------------------
1995 1996 1995
------------ ------ ------
(Audited) (Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ - $ - $ -
---------- ---------- ----------
$ - $ - $ -
---------- ---------- ----------
---------- ---------- ----------
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 13,154 $ 13,507 $ 12,453
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 (25,353) (25,706) (24,652)
---------- ---------- ----------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (13,154) (13,507) (12,453)
---------- ---------- ----------
$ - $ - $ -
---------- ---------- ----------
---------- ---------- ----------
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XANTHIC ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Three Months For the Six Months
For the ending June 30, ending June 30, October 27, 1986
year ending ---------------------- -------------------- (date of inception)
December 31, 1995 1996 1995 1996 1995 to June 30, 1996
----------------- ------ ------ ------ ------ ------------------
(Audited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ - $ - $ -
---------- ---------- ---------- ---------- ---------- ----------
OPERATING EXPENSES:
General and administrative 1,197 174 300 347 599 18,308
---------- ---------- ---------- ---------- ---------- ----------
Loss from operations 1,197 174 300 347 599 (18,308)
OTHER INCOME (EXPENSES)
Interest expense (207) (3) (52) (6) (104) (6,633)
Aborted offering costs - - - - - (17,066)
Debt relief - - - - - 17,051
Penalty - - - - - (750)
---------- ---------- ---------- ---------- ---------- ----------
TOTAL OTHER INCOME
(EXPENSES) (207) (3) (52) (6) (104) (7,398)
NET LOSS $ (1,404) $ (177) $ (352) $ (353) $ (703) $ (25,706)
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
NET LOSS PER COMMON SHARE $ (.0003) $ 0 $ (.0001) $ (.0001) $ (.0001) $ (.005)
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 5,481,826 5,481,826 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, 1994 5,481,826 $ 548 $ 11,651 $ (23,949) $ (11,750)
---------- ---------- ---------- ---------- ----------
Net loss for year - - - (1,404) (1,404)
---------- ---------- ---------- ---------- ----------
BALANCE, DECEMBER 31, 1995 5,481,826 $ 548 $ 11,651 $ (25,353) $ (13,154)
---------- ---------- ---------- ---------- ----------
Net loss for period - - - (353) (353)
---------- ---------- ---------- ---------- ----------
BALANCE, JUNE 30, 1996 5,481,826 $ 548 $ 11,651 $ (25,706) $ (13,507)
---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ----------
</TABLE>
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XANTHIC ENTERPRISES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
For the year For the six months
ending December 31, ending June 30, October 27, 1986
------------------- -------------------------- (Date of inception)
1995 1996 1995 to June 30, 1996
------ ------ ------ -------------------
(Audited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (1,404) $ (353) $ (703) $ (25,706)
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 1,404 353 703 13,507
---------- ---------- ---------- ----------
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: 4/2/97
----------------------------
By: /s/ Mark A. Lilly
------------------------------------------------------------------
Mark A. Lilly, President, Director and Chief Financial Officer
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CORPORATION'S FORM 10-Q FOR THE PERIOD ENDED JUNE 30, 1996, AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 13,507
<BONDS> 0
0
0
<COMMON> 5,481,826
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> (13,507)
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> (347)
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (6)
<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>
