SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
[X] QUARTERLY REPORT OR [ ] TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended July 31, 1996 Commission File No. 33-21443
-------------------
GALT FINANCIAL CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
Colorado 87-1077246
------------------------------- -------------------
(State of other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
26 West Dry Creek Circle, Suite 600
Littleton, Colorado 80120
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(Address of principal executive offices) (Zip Code)
(303) 794-9450
(Registrant's telephone number,
including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Sections 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
----------- ----------
As of the end of the quarter, 17,816,667 shares of common stock were
outstanding.
<PAGE>
PART I
Item 1. Financial Statements
- ------ --------------------
Unaudited financial statements for the quarter covered by this report
are attached hereto.
Item 2. Management's Discussion and analysis or Plan of Operation
- ------ ---------------------------------------------------------
The Company currently has no business operations. The Company will
continue to look for a business acquisition or merger. The Company has
no significant cash or other assets. Certain persons who are either
shareholders or officers of the Company have agreed to advance funds to
the Company as needed to maintain its corporate existence, continue its
SEC filings and to pursue a business acquisition.
PART II
Item 1. Legal Proceedings
- ------ -----------------
None.
Item 2. Changes in Securities
- ------ ---------------------
None.
Item 3. Defaults Upon Senior Securities
- ------ -------------------------------
None.
Item 4. Submission of Matters to a Vote of Security Holders
- ------ ---------------------------------------------------
None during the quarter covered by this report.
Item 5. Other Information
- ------ -----------------
None.
Item 6. Exhibits and Reports on Form 8-K
- ------ --------------------------------
None.
<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:
GALT FINANCIAL CORPORATION
/S/ EARNEST MATHIS
Date: September, 1996 ---------------------------------
Earnest Mathis
Chief Executive Officer and
Principal Financial Officer
<PAGE>
GALT FINANCIAL CORPORATION
CONDENSED BALANCE SHEET
JULY 31, 1996
(Unaudited)
ASSETS
------
Current Assets:
Cash $ 3,321
---------
Total Assets $ 3,321
=========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
----------------------------------------------
Current Liabilities:
Accounts payable - trade $ 3,915
Accrued interest - related parties 2,269
Notes payable - related parties 30,300
---------
Total Current Liabilities 36,484
---------
Stockholders' Equity (Deficit):
Preferred stock: $.001 par value,
20,000,000 shares authorized, none
issued or outstanding --
Common stock: $.0001 par value,
100,000,000 shares authorized,
17,816,667 shares issued and
outstanding 1,782
Additional paid in capital 247,299
Accumulated deficit (282,244)
---------
Total Stockholders' Equity
(Deficit) (33,163)
---------
Total Liabilities and Stockholders'
Equity (Deficit) $ 3,321
=========
The accompanying notes are an integral part
of these condensed financial statements.
F-1
<PAGE>
<TABLE>
<CAPTION>
GALT FINANCIAL CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JULY 31, 1996 and 1995
(Unaudited)
Three months ended Six months ended
July 31, July 31,
-------- --------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenue $ -- $ -- $ -- $ --
Operating expenses 10,680 5,666 13,683 10,174
----------- ----------- ----------- -----------
Loss From Operations (10,680) (5,666) (13,683) (10,174)
----------- ----------- ----------- -----------
Other Income (Expense):
Gain on disposal of
subsidiary -- -- -- 68,663
Interest expense (727) (156) (1,355) (156)
----------- ----------- ----------- -----------
Total Other Income
(Expense) (727) (156) (1,355) 68,507
----------- ----------- ----------- -----------
Net Income (Loss) $ (11,407) $ (5,822) $ (15,038) $ 58,333
=========== =========== =========== ===========
Net Income (Loss) Per
Share of Common Stock $ -- $ -- $ -- $ --
=========== =========== =========== ===========
Weighted Average Number
of Common Shares
Outstanding 17,816,667 17,816,667 17,816,667 17,816,667
=========== =========== =========== ===========
The accompanying notes are an integral part
of these condensed financial statements.
F-2
</TABLE>
<PAGE>
GALT FINANCIAL CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JULY 31, 1996 and 1995
(Unaudited)
1996 1995
---- ----
Cash Flows From Operating Activities:
Net income (loss) $(15,038) $ 58,333
Adjustments to reconcile net income
(loss) to net cash (used) by
operating activities:
(Gain) on disposal of subsidiary -- (68,663)
Changes in assets and liabilities:
Increase in accounts payable 3,837 174
Increase in accrued interest 1,355 156
-------- --------
Net Cash (Used) By Operating
Activities (9,846) (10,000)
-------- --------
Cash Flows From Investing Activities:
Disposal of subsidiary -- (1,000)
-------- --------
Net Cash (Used) By Investing
Activities -- (1,000)
-------- --------
Cash Flows from Financing Activities:
Proceeds from related party loans 10,000 9,800
-------- --------
Net Cash Provided By Financing
Activities 10,000 9,800
-------- --------
Net Increase (Decrease) in Cash and
Cash Equivalents 154 (1,200)
Cash and Cash Equivalents at
Beginning of Period 3,167 1,792
-------- --------
Cash and Cash Equivalents at
End of Period $ 3,321 $ 592
======== ========
Supplemental Disclosure of Cash Flow
Information:
Cash paid during the period for:
Interest $ -- $ --
Income taxes -- --
The accompanying notes are an integral part
of these condensed financial statements.
F-3
<PAGE>
GALT FINANCIAL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. The accompanying financial information of the Company is prepared in
accordance with the rules prescribed for filing condensed interim financial
statements and , accordingly, does not include all disclosures that may be
necessary for complete financial statements prepared in accordance with
generally accepted accounting principles. The disclosures presented are
sufficient, in management's opinion, to make the interim information
presented not misleading. All adjustments, consisting of normal recurring
adjustments, which are necessary so as to make the interim information not
misleading, have been made. Results of operations for the six months ended
July 31, 1996 are not necessarily indicative of results of operations that
may be expected for the year ending January 31, 1997. It is recommended
that this financial information be read with the complete financial
statements included in the Company's Annual Report on Form 10-KSB for the
year ended January 31, 1996 previously filed with the Securities and
Exchange Commission.
2. The Company had a letter of intent to acquire Perry Williams, Inc. which
expired in July 1996. Currently, the Company has no plans to acquire Perry
Williams, Inc.
F-4
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-END> JUL-31-1996
<CASH> 3,321
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,321
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,321
<CURRENT-LIABILITIES> 36,484
<BONDS> 0
0
0
<COMMON> 1,782
<OTHER-SE> (34,945)
<TOTAL-LIABILITY-AND-EQUITY> 3,321
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 13,683
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,365
<INCOME-PRETAX> (15,038)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (15,038)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
