UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
AMENDMENT NO. 1 TO FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1996 Commission File Number 000-18389
WORLD WIDE STONE CORPORATION
(Exact Name of Registrant as specified in its Charter)
NEVADA 33-0297934
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification Number)
5236 S. 40th Street, Phoenix, AZ 85040
(Address of Principal Executive Offices) (Zip Code)
602-438-1001
(Registrant's Telephone Number, Including Area Code)
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 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 March 31, 1996, there were 34,395,868 shares of common stock
outstanding.
<PAGE>
EXPLANATORY NOTE REGARDING RESTATEMENT OF FINANCIAL STATEMENTS:
In connection with the audit of its financial statements for the year
ended December 31, 1997, World Wide Stone Corporation(the "Company") determined
that the acquisition of certain quarry rights in December of 1995 had not been
properly recorded in its financial statements for the year ended December 31,
1995. In that transaction, the Company issued two million shares of Common Stock
valued at $1,200,000 to a director and officer of one of the Company's Mexican
subsidiaries. The Company originally recorded the value of the shares issued in
connection with this transaction as an asset in its financial statements for the
year ended December 31, 1995. Under Statement of Financial Accounting Standards
("SFAS") No. 13, ACCOUNTING FOR LEASES, only payments related to a lease
acquisition with independent third parties are eligible for capitalization.
Accordingly, the amounts should have been expensed in the fourth quarter of 1995
when the transaction occurred. As a result, the Company has restated its
financial statements for the year ended December 31, 1995 to reflect the proper
application of SFAS No. 13. In addition, The Company has adjusted the financial
statements for the year ended December 31, 1995 to reclassify an understatement
to common stock and "paid in capital" of $15,000.`Accordingly, adjustments have
been made to retained earnings, common stock, paid in capital and other assets
at January 1, 1996 to correct these items.
The Company hereby amends and restates certain Items of its Form 10-Q
for the quarter ended March 31, 1996, to reflect the restatement of its
financial statements for the year ended December 31, 1995 as described above.
The information contained in this Form 10-Q/A reflects , where appropriate,
changes required to conform to the restatement of the financial statements.
-2-
<PAGE>
WORLD WIDE STONE CORPORATION AND SUBSIDIARIES
Index to Form 10-Q/A
For the Quarter Ended March 31, 1996
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet
March 31, 1996 and December 31, 1995 ................................4
Consolidated Statement of Operations (Income)
Three months ended March 31, 1996 and 1995 ..........................6
Consolidated Statement of Cash Flows
Three months ended March 31, 1996 and 1995 ..........................7
Notes to Financial Statements........................................8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports..................................................8
-3-
<PAGE>
WORLD WIDE STONE CORPORATION
BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
ASSETS
(Unaudited) (Restated)
MARCH 31, 1996 DEC. 31, 1995
-------------- -------------
Current assets
Cash $ 68,393 $ 23,569
Accounts receivable 183,758 109,116
Loans receivable - Intercompany 28,128 0
Inventory 309,737 296,495
Loans to employees 205 0
----------- -----------
Total current assets 590,221 429,180
Property, plant, and equipment - Mexico 3,044,560 3,044,560
Mex Marmoles Muguiro 273,589 273,589
Machinery & equipment 269,045 266,984
Accumulated depreciation (566,304) (518,304)
----------- -----------
Net property and equipment 3,020,890 3,066,829
Other assets
Prepaid rent 1,995 1,995
Prepaid IVA - Mexico 61,459 52,435
----------- -----------
Total other assets 63,454 54,430
----------- -----------
Total assets $ 3,674,565 $ 3,550,439
=========== ===========
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<PAGE>
WORLD WIDE STONE CORPORATION
BALANCE SHEETS
MARCH 31, 1996 AND DECEMBER 31, 1995
LIABILITIES AND EQUITY
(Unaudited) (Restated)
MARCH 31, 1996 DEC. 31, 1995
-------------- -------------
Liabilities
Accounts payable $ 43,564 $ 33,094
Accrued pension 4,969 4,969
Payroll taxes 5,057 422
Accrued payroll taxes 24,498 22,627
Accrued interest 16,452 16,230
Other accrued taxes 3,113 0
Sales deposits 14,870 0
Due to Felipe 2,567 2,567
Loan payable - G&C Partners 33,000 35,000
Due to M. Cunningham 14,949 14,949
Loan payable - truck 6,744 7,610
Loan payable - vehicle 12,336 13,003
Loan payable - forklift 15,162 16,456
Long term debt - Mexico 860,500 817,224
----------- -----------
Total liabilities 1,057,781 984,151
----------- -----------
Equity
Common stock 34,386 34,386
Additional paid in capital 7,853,049 7,853,049
Retained earnings (5,321,147) (4,087,912)
Current period earnings (loss) 50,496 (1,233,235)
----------- -----------
Total equity 2,616,784 2,566,288
----------- -----------
Total liabilities and equity $ 3,674,565 $ 3,550,439
=========== ===========
-5-
<PAGE>
WORLD WIDE STONE CORPORATION
STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
MARCH 31, 1996 MARCH 31, 1995
-------------- --------------
Income
Sales $450,509 $ 241,273
Cost of sales 225,618 128,743
-------- ---------
Gross profit 224,891 112,530
Expenses
Salaries and wages 15,950 982
Salaries - officers 27,000 27,000
Casual labor 3,622 0
Salaries - salesmen 7,150 0
Advertising 2,607 1,962
Promotion 650 0
Auto expense 898 2,490
Bank charges 644 92
Commissions 1,216 0
Consulting fees 1,606 0
Data processing 593 0
Depreciation 48,000 46,632
Dues and subscriptions 2,094 505
Insurance 2,133 2,993
Legal and accounting 17,774 3,983
Licenses and permits 420 110
Office expense 14,264 14,311
Postage 715 854
Rent 8,717 5,003
Supplies 5,215 981
Taxes - payroll 5,521 7,245
Telephone 3,479 2,159
Travel 3,337 5,707
Utilities 703 569
Interest expense 87 0
-------- ---------
Total expenses 174,395 123,578
-------- ---------
Net income (loss) $ 50,496 $ (11,048)
======== =========
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<PAGE>
WORLD WIDE STONE CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
MARCH 31 1996 MARCH 31, 1995
------------- --------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 50,496 $ (11,048)
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 48,000 46,632
(Increase) decrease in:
Loans to employees (205) (3,590)
Accounts receivable (74,642) (31,467)
Inventories (13,242) 108,247
Prepaid expenses - IVA (9,024) 17,941
Intercompany receivable - Mexico (28,128) 0
Deposits 0 (1,563)
Investments - Mexico 0 48,495
Increase (decrease) in:
Accounts payable 10,470 (64,293)
Accrued liabilities 24,711 (14,441)
-------- ---------
NET CASH PROVIDED BY OPERATING ACTIVITIES 8,436 94,913
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment (2,061) 0
-------- ---------
NET CASH PROVIDED (USED) BY INVESTING
ACTIVITIES (2,061) 0
-------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
New borrowings:
Long-term (net) 43,276 3,667
Short-term (net) (4,827) 17,447
Stockholder loans 0 (25,782)
-------- ---------
NET CASH PROVIDED (USED) BY FINANCING
ACTIVITIES 38,449 (4,668)
-------- ---------
NET INCREASE IN CASH 44,824 90,245
CASH AT BEGINNING OF YEAR 23,569 29,183
CASH AT MARCH 31 $ 68,393 $ 119,428
======== =========
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<PAGE>
WORLD WIDE STONE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1) GENERAL
The consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. The financial statements reflect all
adjustments (consisting of normal recurring accruals) which are, in the opinion
of management, necessary to fairly present such information. Although the
Company believes that the disclosures are adequate to make the information
presented not misleading, certain information and footnote disclosures,
including significant accounting policies, normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted pursuant to such rules and regulations.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS
(a) Exhibit 27.1: Amended and Restated Financial Data Schedule
(b) Reports on Form 8-K: Not Applicable
SIGNATURE
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 authorized.
Date: November 2, 1998 World Wide Stone Corporation
(Registrant)
BY: /s/ Franklin Cunningham
--------------------------------
Franklin Cunningham, President
Page 8 of 8 Pages
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS OF WORLD WIDE STONE CORPORATION (THE
"COMPANY") FOR THE THREE MONTHS ENDED MARCH 31, 1996, AS RESTATED. THIS SCHEDULE
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH RESTATED FINANCIAL STATEMENTS.
IN ADDITION, CERTAIN ENTRIES ON THIS SCHEDULE HAVE BEEN BEEN AMENDED FROM THE
PREVIOUS FINANCIAL DATA SCHEDULE FILED FOR THIS PERIOD. THIS EXHIBIT SHALL NOT
BE DEEMED FILED FOR THE PURPOSE OF SECTION 11 OF THE SECURITIES ACT OF 1933 AND
SECTION 18 OF THE SECURITIES EXCHANGE ACT OF 1934, OR OTHERWISE SUBJECT TO THE
LIABILITY OF SUCH SECTIONS, NOR SHALL IT BE DEEMED A PART OF ANY OTHER FILING
WHICH INCORPORATED THIS REPORT BY REFERENCE, UNLESS SUCH OTHER FILING EXPRESSLY
INCORPORATES THIS EXHIBIT BY REFERENCE.
[/LEGEND]
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<EXCHANGE-RATE> 1
<CASH> 68,393
<SECURITIES> 0
<RECEIVABLES> 183,758
<ALLOWANCES> 0
<INVENTORY> 309,737
<CURRENT-ASSETS> 590,221
<PP&E> 3,587,197
<DEPRECIATION> (566,304)
<TOTAL-ASSETS> 3,674,565
<CURRENT-LIABILITIES> 197,281
<BONDS> 860,500
0
0
<COMMON> 386
<OTHER-SE> 2,582,398
<TOTAL-LIABILITY-AND-EQUITY> 3,674,565
<SALES> 450,509
<TOTAL-REVENUES> 450,509
<CGS> 225,618
<TOTAL-COSTS> 225,618
<OTHER-EXPENSES> 174,308
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 87
<INCOME-PRETAX> 50,496
<INCOME-TAX> 0
<INCOME-CONTINUING> 50,496
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 50,496
<EPS-PRIMARY> .00
<EPS-DILUTED> .00
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