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: March 31, 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: 33-26750
CURBSTONE ACQUISITION CORP.
----------------------------------------------------
(Exact name of Registrant as specified in its charter)
Delaware 75-2254743
- ---------------------------- ------------------
(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)
N/A
----------------------------------------------------------
(Former name or former address, 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 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 March 31, 1997, there were 3,521,876 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 March 31, 1997 and the results of its operations and changes in
its financial position from inception through March 31, 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>
CURBSTONE ACQUISITION CORP.
(A Development Stage Company)
Balance Sheets
<TABLE>
<CAPTION>
March 31, Dec. 31,
1997 1996
------------ ----------
(Unaudited)
<S> <C> <C>
Assets
- ------
Cash $ 4,115 $ 4,953
Total Assets $ 4,115 $ 4,953
----------- ----------
Liabilities
- ------------
Accrued liabilities $ 1,072 $ 465
----------- ----------
Stockholders' Equity
- ---------------------
Common stock, $.0001 par value 60,000,000
shares authorized, 3,521,876 issued
& outstanding $ 521 $ 521
Additional paid-in capital $ 100,104 $100,104
Deficit accumulated during
development stage ( 97,582) ( 96,137)
---------- ---------
3,043 4,488
----------- ----------
Total liabilities and stockholders' equity $ 4,115 $ 4,953
=========== =========
</TABLE>
Note: The balance sheet at December 31, 1996 has been taken from the
audited financial statements.
3
<PAGE>
CURBSTONE ACQUISITION CORP.
(A Development Stage Company)
Statements of Operations
For the Period from November 29, 1988 (inception)
to March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
November 29,
1988
Three Months Ended (Inception) to
March 31, March 31, March 31,
1997 1996 1997
------------- ------------- ------------
<S> <C> <C> <C>
Revenues: $ -- $ -- $ --
------------- ------------- ------------
Expenses:
General and administrative $ 1,445 -- 97,582
------------- ------------- ------------
Net loss before income tax
benefit ( 1,445) -- ( 97,582)
Income tax benefit -- -- --
Net loss $( 1,445 ) $ -- $( 97,582)
------------- ------------- ------------
Net loss per common share $( .000 ) $ -- $( .028)
------------- ------------- ------------
Weighted average common
shares outstanding
(as restated for 1996) 3,521,876 13,250 3,521,876
============= ============= ============
</TABLE>
4
<PAGE>
CURBSTONE ACQUISITION CORP.
(A Development Stage Company)
Statements of Stockholders' Equity
For the Period From November 29, 1988 (inception)
to March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Number Additional Deficit
of Paid During
Common in Development
Shares Amount Capital Stage Total
------ ------- -------- ---------- ------
<S> <C> <C> <C> <C> <C>
Balance,
November 29, 1988 - $ - $ - $ - $ -
Net loss, 1988 - - - - -
------ ------- -------- ---------- ------
Balance,
December 31, 1988 - - - - -
Stock Issued
January 25, 1989 500,000 50 3,200 ( 6,000) ( 2,750)
Stock Issued under
stock bonus plan 250,000 - - - -
Stock issued for
converted debentures 250,000 25 3,725 - 3,750
Net loss 1989 - - - ( 880 ) ( 880)
------- ------- ------- --------- ------
Balance,
December 31, 1989 1,000,000 75 6,925 ( 6,880 ) 120
Net loss, 1990 - - - ( 120 ) ( 120)
-------- ------- ------- --------- -------
Balance,
December 31, 1990
1991, 1992 and 1993 1,000,000 75 6,925 ( 7,000 ) -
Stock issued for
legal fees 100,000 10 4,990 - 5,000
Additional paid in
capital for accounting
fees - - 4,025 - 4,025
Net loss, 1994 - - - ( 9,025 ) ( 9,025)
-------- -------- ------- --------- -------
Balance,
December 31, 1994 1,100,000 85 15,940 (16,025 ) -
Stock issued for
directors' fees 225,000 - - - -
--------- -------- ------- -------- -------
Balance
December 31, 1995 1,325,000 85 15,940 ( 16,025 ) -
Stock issued for
legal services 60,000 6 594 - 600
Stock issued for cash 800,000 80 13,920 - 14,000
Stock reverse split (2,163,124) - - - -
Stock issued for
legal and consulting
services 3,500,000 350 69,650 - 70,000
Net loss, 1996 - - - ( 80,112 ) (80,112)
--------- ------- ------- --------- -------
Balance December
31, 1996 3,521,876 521 100,104 ( 96,137) 4,488
Net loss first
quarter 1997 - - - ( 1,445) ( 1,445)
--------- ------- ------- --------- -------
Balance,
March 31, 1997 3,521,876 $ 521 $100,104 $(97,582) $ 3,043
========= ======== ======== ========= =======
</TABLE>
5
<PAGE>
CURBSTONE ACQUISITION CORP.
(A Development Stage Company)Statements of Cash Flows
For the Period from November 29, 1988 (inception)
to March 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
November 29,
1988
Three Months Ended (Inception) to
March 31, March 31, March 31,
1997 1996 1997
------------- ------------- ------------
<S> <C> <C> <C>
Net Cash Flows from Operating
Activities:
Net Loss $( 1,445) $ - $( 97,582)
Adjustments to reconcile net
income to net cash provided by
operating activities:
Increase in accrued liabilities 607 - 1,072
Issuance of stock for services - - 78,850
------------- ------------- ------------
Net cash used in operating
activities ( 838) - ( 17,660)
------------- ------------- ------------
Cash flows used in investing
activities: - - -
------------- ------------- ------------
Cash flows from financing activities:
Stock issued for cash - - 14,000
Additional paid in capital - - 4,025
Proceeds from issuance of
convertible debentures - - 3,750
------------- ------------ -------------
Net cash provided by financing
activities - - 21,775
------------- ------------ -------------
Net increase (decrease) in cash ( 838) - 4,115
------------- ------------ -------------
Cash, beginning of period 4,953 - -
------------- ------------ -------------
Cash, end of period 4,115 - 4,115
============= ============ ==============
</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) No other reports on Form 8-K were filed during the last quarter of the
period covered.
<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.
CURBSTONE ACQUISITION CORP.
(Registrant)
Date: May 2, 1997 /S/ Thomas R. Brooksbank
-----------------------------
By: Thomas R. Brooksbank
Its: President and
Chief Financial Officer
Date: May 2, 1997 /S/ George G. Chachas
-----------------------------
By: George G. Chachas
Its: Secretary
7
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 4,115
<CURRENT-LIABILITIES> 1,072
<BONDS> 0
0
0
<COMMON> 521
<OTHER-SE> 2,522
<TOTAL-LIABILITY-AND-EQUITY> 4,115
<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> (0.000)
<EPS-DILUTED> 0
</TABLE>
