SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For Quarter Ended: September 30, 1997; or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period _________ to __________
Commission File Number: 33-26344
CAPITAL ADVISORS ACQUISITION CORP.
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 75-2254748
- ---------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identifciation No.)
4180 La Jolla Village Drive, Suite 500, La Jolla, CA 92037
- ----------------------------------------------------- -------------
(Address of principal executive offices) (Zip Code)
(619) 457-3800
--------------------------------------------------
(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 shorter period that a
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [ X ] No [ ]
On September 30, 1997, there were 3,560,027 shares of the registrant's
Common Stock, $.0001 par value, outstanding.
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
The condensed financial statements included herein have been prepared by
the Company, without audit pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote disclosure
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to such
rules and regulations, although the Company believes that the disclosures are
adequate to make the information presented not misleading.
In the opinion of the Company, all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position of the
Company as of September 30, 1997 and the results of its operations and changes
in its financial position from inception through September 30, 1997 have been
made. The results of its operations for such interim period is not necessarily
indicative of the results to be expected for the entire year.
2
<PAGE>
CAPITAL ADVISORS ACQUISITION CORP.
(A Development Stage Company)
Balance Sheets
<TABLE>
<CAPTION>
Sept. 30, Dec. 31,
1997 1996
------------ ----------
(Unaudited)
<S> <C> <C>
Assets
- ------
Cash $ 176 $ 1,858
----------- ----------
Total Assets $ 176 $ 1,858
----------- ----------
Liabilities
- -----------
Accrued Liabilities $ -- $ 460
----------- ---------
Stockholders' Equity
- --------------------
Common Stock, $.0001 par value 60,000,000
shares authorized, 3,560,027
issued & outstanding $ 504 $ 500
Additional paid-in capital $ 97,268 $ 95,022
Deficit accumulated during
development stage ( 97,596) ( 94,124)
---------- ---------
( 176) 1,398
----------- ----------
Total liabilities and stockholders' equity $ 176 $ 1,858
=========== ==========
</TABLE>
Note:The balance sheet at December 31, 1996 has been taken from the audited
financial statements.
3
<PAGE>
CAPITAL ADVISORS ACQUISITION CORP.
(A Development Stage Company)
Statements of Operations
For the Period from November 22, 1988 (inception)
to September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
November 22,
1988
Nine Months Ended (Inception)to
Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997
------------- ------------- ------------
<S> <C> <C> <C>
Revenues: $ -- $ -- $ 4,100
------------- ------------- ------------
Expenses:
General and administrative $ 3,472 8,359 99,196
Loss on investment transactions -- -- 2,500
------------- ------------- ------------
Net loss before income
tax benefit ( 3,472 ) ( 8,359 ) ( 97,596 )
------------- ------------- ------------
Income tax benefit -- -- --
------------- ------------- ------------
Net loss $( 3,472 ) $( 8,359 ) $( 97,596 )
------------- ------------- ------------
Net loss per common share $( .001 ) $( .006 ) $( .027)
------------- ------------- ------------
Weighted average common shares
outstanding 3,560,027 1,475,000 3,560,027
============= ============= ============
</TABLE>
4
<PAGE>
CAPITAL ADVISORS ACQUISITION CORP.
(A Development Stage Company)
Statements of Stockholders' Equity
For the Period From November 22, 1988 (inception)
to September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Number of Additional Deficit During
Common Paid in Development
Shares Amount Capital Stage Total
------ ------- -------- ---------- ------
<S> <C> <C> <C> <C> <C>
Balance,
December 21, 1988 500,000 $ 50 $950 $( 3,750) $( 2,750)
Stock issued under
stock bonus plan 250,000 - - - -
Stock issued for
converted debentures 250,000 25 3,725 - 3,750
Net Income 1989 - - - 3,981 3,981
------- ------- ------- --------- ------
Balance,
December 31, 1989 1,000,000 75 4,675 231 4,981
Net loss, 1990 - - - ( 981 ) ( 981)
-------- ------- ------- --------- -------
Balance,
December 31, 1990 1,000,000 75 4,675 ( 750 ) 4,000
Net loss, 1991 - - - ( 4,000 ) ( 4,000)
-------- ------- ------- --------- -------
Balance, December 31,
1991, 1992 and 1993 1,000,000 75 4,675 ( 4,750 ) -
Stock issued for
legal fees 100,000 10 4,990 - 5,000
Additional paid in capital
for accounting fees - - 4,272 - 4,272
Net loss, 1994 - - - ( 9,272 ) ( 9,272)
-------- -------- ------- --------- -------
Balance,
December 31, 1994 1,100,000 85 13,937 (14,022 ) -
Stock issued for
directors' fees 225,000 - - - -
--------- -------- ------- -------- -------
Balance
December 31, 1995 1,325,000 85 13,937 (14,022 ) -
Stock issued for legal
and accounting fees 150,000 15 1,485 - 1,500
Stock issued for cash 500,000 50 9,950 - 10,000
Stock reverse split (1,955,223) - - - -
Stock issued for legal
and accounting fees 3,500,000 350 69,650 - 70,000
Net loss, 1996 - - - ( 80,102) ( 80,102)
--------- ------- ------- --------- -------
Balance,
December 31, 1996 3,519,777 500 95,022 (94,124) 1,398
Net loss 1997 - - - ( 3,472) ( 3,472)
--------- ------- ------- --------- -------
Balance
September 30, 1997 3,560,027 $ 504 $97,268 $(97,596) $ 176
========= ======== ======= ========= =======
</TABLE>
5
<PAGE>
CAPITAL ADVISORS ACQUISITION CORP.
(A Development Stage Company)Statements of Cash Flows
For the Period from November 22, 1988 (inception)
to September 30, 1997
(Unaudited)
<TABLE>
<CAPTION>
November 22,
1988
Nine Months Ended (Inception)to
Sept. 30, Sept. 30, Sept. 30,
1997 1996 1997
------------- ------------- ------------
<S> <C> <C> <C>
Net Cash Flows from Operating
Activities:
Net Loss $( 3,472) $( 8,359) $( 97,596)
Adjustments to reconcile net
income to net cash provided by
operating activities:
Issuance of stock for services - 1,500 76,500
Loss on investment - - 2,500
Increase (decrease) in
accrued liabilities ( 460) 6,578 -
Due to related party - 281 -
------------- ------------- ------------
Net cash used in operating
activities ( 3,932) - ( 18,596)
------------- ------------- ------------
Cash flows used in investing
activities: - - ( 2,500)
------------- ------------- ------------
Cash flows from financing activities:
Issuance of stock for cash 4 - 10,004
Additional paid in capital 2,246 - 11,268
------------- ------------- -------------
2,250 - 21,272
------------- ------------ -------------
Net increase (decrease) in cash $( 1,682) $ - $ 176
Cash, beginning of period 1,858 - -
------------- ------------ -------------
Cash, end of period $ 176 $ - $ 176
============= ============ =============
</TABLE>
6
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
At the present time there are no legal proceedings against the Company and
the Company is unaware of any unasserted claim or assessment which will have a
material effect on the financial position or future operations of the Company.
Item 2. Changes in Securities.
Not required.
Item 3. Defaults Upon Senior Securities.
Not required.
Item 4. Submission of Matters to a Vote of Security Holders.
Not required.
Item 5. Other Information.
Not required.
Item 6. Exhibits and Reports on Form 8-K.
(a) No exhibits have been filed with this Form 10-Q.
(b) On August 4, 1997 the Company filed a Current Report on Form 8-K
reflecting that on July 23, 1997, the Company had entered into an Agreement for
Exchange of Stock with Harvard Financial Services, Inc., a new Jersey
Corporation ("Harvard") under which the Company would issue 10,250,00 shares of
its common stock in exchange for all the issued and outstanding common stock of
Harvard thereby making Harvard a wholly owned subsidiary of the Company. On
October 2, 1997, the Company filed a Current Report on Form 8-K reflecting
the amendment and modification to the Agreement for Exchange of Stock with
Harvard to (i) extend the date of the Closing, (ii) modify the agreement to
provide that the Company would issue 11,250,00 shares of its common stock in
exchange for all the issued and outstanding common stock of Harvard thereby
making Harvard a wholly owned subsidiary of the Company, and (iii) modify
paragraph 6.2 of the Agreement thereby modifying the conditions to be satisfied
by Harvard to effect a closing.
As of the date of this report, the acquisition of Harvard has not yet been
completed but the Company and Harvard are working diligently to satisfy the
conditions to closing.
7
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
CAPITAL ADVISORS ACQUISITION CORP.
(Registrant)
Date: November 13, 1997 /S/ Thomas R. Brooksbank
---------------------------------
By: Thomas R. Brooksbank
Its: President and
Chief Financial Officer
Date: November 13, 1997 /S/ George G. Chachas
-------------------------------
By: George G. Chachas
Its: Secretary
8
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 176
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 504
<OTHER-SE> (176)
<TOTAL-LIABILITY-AND-EQUITY> 176
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<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> (0.001)
<EPS-DILUTED> 0
</TABLE>