.. FORM 10-QSB - Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
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 period ended November 30, 1996
-----------------------------
or
[ ] Transition Report Pursuance to Section 13 or 15(d) of the Securities
Exchange act of 1934.
For the transition period from to
---------------- -------------------
Commission File Number 33-23693
---------------------------
VANDEN CAPITAL GROUP, INC.
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Colorado 84-1090424
------------------------------ ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
1775 Sherman Street, Suite 1001, Denver, CO 80203
- --------------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(303) 689-9111
--------------------------------------------------
(Registrant's telephone number, including area code)
NONE
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(Former name, former address and former fiscal year, if
changed since last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 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.
[ X ] Yes [ ] No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicated by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
[ ] Yes [ ] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of November 30, 1996, Registrant had 90,015,200 shares of common stock,
$.0001 Par Value, outstanding.
<PAGE>
INDEX
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Page
Number
------
Part I. Financial Information
Item I. Financial Statements
Consolidated Balance Sheets as of November 30,
1996 (Unaudited) and May 31, 1996 2
Consolidated Statements of Operations,
Three months Ended November 30, 1996
(Unaudited) and November 30, 1995 (Unaudited) 3
Consolidated Statements of Operations,
Six Months Ended November 30, 1996
(Unaudited) and November 30, 1995 (Unaudited) 4
Consolidated Statements of Changes in Stock-
holders' Equity from May 31, 1996
through November 30, 1996 (Unaudited) 5
Consolidated Statements of Cash Flows,
Three Months Ended November 30, 1996
(Unaudited) and November 30, 1995 (Unaudited) 6
Consolidated Statements of Cash Flows,
Six Months Ended November 30, 1996
(Unaudited) and November 30, 1995 (Unaudited) 7
Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of Operations 9
Part II. Other Information 10
1
<PAGE>
VANDEN CAPITAL GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
--------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
------
<TABLE>
<CAPTION>
November 30 May 31
1996 1996
---------- ---------
<S> <C> <C>
Current Assets:
Cash $ 395,027 $ 412,816
Accrued interest receivable 6,453 4,240
--------- ---------
Total Current Assets 401,480 417,056
--------- ---------
TOTAL ASSETS $ 401,480 $ 417,056
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Liabilities $ 5,076 $ 4,040
--------- ---------
Total Current Liabilities 5,076 4,040
--------- ---------
Stockholders' Equity (Notes 2 and 3):
Preferred Stock, $.0001 per value,
100,000,000 shares authorized,
none issued and outstanding -- --
Common Stock $.0001 par value
300,000,000 shares authorized
90,015,200 shares issued and
outstanding 9,002 9,002
Additional Paid-in Capital 687,469 687,469
Accumulated deficit (300,067) (283,455)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 396,404 413,016
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 401,480 $ 417,056
========= =========
The accompanying notes are an integral part of the financial statements.
2
</TABLE>
<PAGE>
VANDEN CAPITAL GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
--------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended
November 30 November 30
1996 1995
----------- -----------
(unaudited) (unaudited)
Revenue:
Interest income $ 3,765 $ 4,099
-------- --------
Total Revenue 3,765 4,099
-------- --------
Expenses:
Legal and accounting 7,208 8,952
Rent 1,500 1,500
Other 3,252 1,400
-------- -------
11,960 11,852
-------- -------
Net (Loss) $ (8,195) $ (7,753)
======== ========
Per Share $ nil $ nil
======== ========
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
VANDEN CAPITAL GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
--------------------------------------------------------
CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months Ended
November 30 November 30
1996 1995
----------- -----------
(unaudited) (unaudited)
Revenue:
Interest income $ 7,640 $ 8,196
-------- --------
Total Revenue 7,640 8,196
-------- --------
Expenses:
Legal and accounting 14,999 11,661
Rent 3,000 3,000
Other 6,252 1,521
-------- --------
24,251 16,182
-------- --------
Net (Loss) $(16,611) $ (7,986)
======== ========
Per Share $ nil $ nil
======== =========
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
VANDEN CAPITAL GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
--------------------------------------------------------
CONSOLIDATED STATEMENT OF CHANGES IN
STOCKHOLDERS' EQUITY From May 31, 1996
through November 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
Common Stock Additional Retained
--------------------------- Paid-in Earnings
Shares Amount Capital (Deficit) Total
---------- -------- ------------ ---------- ---------
<S> <C> <C> <C> <C> <C>
Balance, May 31, 1996 90,015,200 $ 9,002 $ 687,469 $(283,456) $ 413,015
Net loss for the six
month period ended
November 30, 1996 - - - (16,611) (16,611)
========== ======== =========== ========= ==========
Balance, November 30, 1996 90,015,200 $ 9,002 $ 687,469 $(300,067) $ 396,404
========== ======== =========== ========= ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
VANDEN CAPITAL GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
--------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
November 30 November 30
1996 1995
----------- -----------
(unaudited) (unaudited)
Cash Flows Operating Activities:
Net (loss) $ (8,195) $ (7,753)
(Increase) in accrued interest
receivable (1,106) (1,106)
(Increase) in prepaid rent - (500)
(Decrease) in accounts payable (1,514) (282)
---------- ----------
Net Cash (Used In) Operating
Activity (10,815) (9,641)
---------- ----------
Cash Flows from Investing Activities - -
---------- ----------
Cash Flows from Financing Activities - -
---------- ----------
(Decrease) in Cash (10,815) (9,641)
Cash, Beginning of Period 405,842 434,426
---------- ----------
Cash, End of Period $ 395,027 $ 424,785
========== ==========
Interest Paid $ - $ -
========== ==========
Income Taxes Paid $ - $ -
========== ==========
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
VANDEN CAPITAL GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
--------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
November 30 November 30
1996 1995
----------- -----------
(unaudited) (unaudited)
Cash Flows Operating Activities:
Net (loss) $ (16,611) $ (7,986)
(Increase) decrease in accrued interest
receivable (2,213) 6,747
(Increase) in prepaid rent - (500)
Increase in accounts payable 1,035 1,170
---------- ----------
Net Cash (Used In) Operating
Activity (17,789) (569)
---------- ----------
Cash Flows from Investing Activities - -
---------- ----------
Cash Flows from Financing Activities - -
---------- ----------
(Decrease) in Cash (17,789) (569)
Cash, Beginning of Period 412,816 425,354
---------- ----------
Cash, End of Period $ 395,027 $ 424,785
========== ==========
Interest Paid $ - $ -
========== ==========
Income Taxes Paid $ - $ -
========== ==========
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
VANDEN CAPITAL GROUP, INC. AND CONSOLIDATED SUBSIDIARIES
--------------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
November 30, 1996 (Unaudited)
(1) Organization
- ----------------
Vanden Capital Group, Inc. (Capital), was incorporated in Colorado on June
21, 1988. Capital is in the business of providing management consulting
services.
All intercompany accounts and balances have been eliminated from the
consolidated financial statements.
(2) Unaudited Statements
- ------------------------
The Consolidated balance sheet as of November 30, 1996, the statements of
operations and cash flows for the three and six month period ended November
30, 1995 and 1996, and the statement of stockholders' equity for the three
month period ended November 30, 1996 have been prepared by the Registrant
without audit. In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present fairly the
financial position, results of operations, cash flows and changes in
stockholders' equity at November 30, 1996 and for all periods presented,
have been made.
(3) Contingent Liability
- -------------------------
On December 21, 1989 the Company signed a pledge agreement guaranteeing a
$90,000 loan from a bank to Buyer's Resource, Inc. The Company pledged a
$100,000 certificate of deposit as security for this loan. In June of 1992,
Buyer's paid down the principal balance of the loan to $60,000 and the
Company obtained a release of $35,000 of the collateral it had pledged to
secure the loan, resulting in the collateral currently pledged by the
Company as security for the loan to be $65,000. A contingency exists with
respect to this loan guarantee and collateral agreement. The amount of
loss, if any, related to this matter cannot presently be determined.
8
<PAGE>
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(1) Material Changes in Financial Condition
- -------------------------------------------
Management knows of no trends, demands, commitment, events or circumstances
which will result in or which are reasonably likely to result in the
Registrant's liquidity increasing or decreasing in a material way.
The Registrant has no material commitments for capital expenditures as of
the end of the latest fiscal period. Management knows of no material
trends, favorable or unfavorable, in the Registrant's capital resources and
anticipates no material change in the mix and cost of such resources.
(2) Material Changes in Results of Operations
- ---------------------------------------------
The Company has earned revenues of $3,765 and $7,640 during the three and
six month period ended November 30, 1996, as compared to $4,099 and $8,196
for the three and six month period ended November 30, 1995, decreases of
$344 and $556 respectively. Operating expenses increased from $11,852 and
$16,182 during the three and six month period ended November 30, 1995 to
$11,960 and $24,251 during the three and six month period ended November
30, 1996, increases of $108 and $8,177 respectively.
9
<PAGE>
PART II. OTHER INFORMATION
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.
Item 5. Other Information
-----------------
None.
Item 6. Exhibits and Reports on Form 8-K
---------------------------------
None.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
VANDEN CAPITAL GROUP, INC.
Date January 13, 1997 By /S/ A. THOMAS TENENBAUM
-------------------------- ---------------------------------
A. Thomas Tenenbaum, President
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S UNAUDITED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED NOVEMBER 30,
1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-END> NOV-30-1996
<CASH> 395,027
<SECURITIES> 0
<RECEIVABLES> 6,453
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 401,480
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 401,480
<BONDS> 0
0
0
<COMMON> 9,002
<OTHER-SE> 387,402
<TOTAL-LIABILITY-AND-EQUITY> 401,480
<SALES> 0
<TOTAL-REVENUES> 3,765
<CGS> 0
<TOTAL-COSTS> 11,960
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (8,195)
<INCOME-TAX> 0
<INCOME-CONTINUING> (8,195)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8,195)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
