SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report under Section 13 or 15(d)
of the Securities Exchange Act of 1934.
For the quarter ended: June 30, 1998 Commission file number: 0-17462
FILMAGIC ENTERTAINMENT CORPORATION
IMMEDIATE PREDECESSOR NAME: "ROEDEINGER MEDICAL SYSTEMS Inc."
PREDECESSOR NAME: "COTTON TREE, Inc."
(Exact name of registrant as specified in its charter)
UTAH 87-0404991
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
1152 N Mountian Ave #210 Upland, CA 91786
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (909) 946-1708
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.
Yes X No _____
As of 6-30-98, there were 7,323,006 shares of common stock outstanding.
<PAGE>
FILMAGIC ENTERTAINMENT CORPORATION
FOR THE QUARTER ENDED
JUNE 30, 1998
INDEX
PART I. - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheet as of June 30, 1998 and 3
December 31, 1997
Statement of Operations for the six months 4
Ended June 30, 1998 and 1997
Statement of Cash Flows for the six months 5
Ended June 30, 1998 and 1997
Notes to Financial Statements 6
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings 7
Item 2. Changes in Securities 7
Item 3. Defaults by the Company upon its 7
Senior Securities
Item 4. Submission of Matter to a Vote of 7
Security Holders
Item 5. Other Information 7
Item 6. Exhibits and Reports of Form 8-K 7
SIGNATURES 8
<PAGE>
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
FILMAGIC ENTERTAINMENT CORPORATION
CONSOLIDATED BALANCE SHEET
JUNE 30, 1998 AND DECEMBER 31, 1997
<TABLE>
ASSETS
1997 1998
Unaudited
<S> <C> <C>
Current Assets $0.00 $0.00
Property and Equipment - Net $0.00 $0.00
Other Assets $140,000.00 $140,000.00
------------- -------------
Total Assets $140,000.00 $140,000.00
============= =============
</TABLE>
<TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities $0.00 $0.00
Long Term Liabilities $0.00 $0.00
Stockholders' Equity $140,000.00 $140,000.00
------------- -------------
Total Liabilities and Stockholders' Equity $140,000.00 $140,000.00
============= =============
</TABLE>
<PAGE>
FILMAGIC ENTERTAINMENT CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
SIX MONTHS PERIOD ENDED JUNE 30, 1998 AND 1997
UNAUDITED
<TABLE>
1998 1997
<S> <C> <C>
Sales, Net of Return and Discounts $0.00 $0.00
Cost of Goods Sold $0.00 $0.00
--------- ----------
Gross Profit $0.00 $0.00
Operatig Expenses
Selling, General and Admnistrative $0.00 $70,000.00
--------- -----------
Operating (Loss) $0.00 ($70,000.00)
Operating Income (Expense)
Interest Expense $0.00 $0.00
Interest Income $0.00 $0.00
--------- -----------
(Loss) Before Income Taxes $0.00 ($70,000.00)
--------- -----------
Income Taxes $0.00 $0.00
--------- -----------
Net (Loss) $0.00 ($70,000.00
========= ===========
Net (Loss) Per Share of Common Stock $0.00 $0.0096
========= ===========
Weighted Average Number of Shares Outstanding 7,323,006 7,323,006
</TABLE>
Prepared without audit
<PAGE>
FILMAGIC ENTERTAINMENT CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS PERIOD ENDED JUNE 30, 1998 AND 1997
UNAUDITED
<TABLE>
1998 1997
<S> <C> <C>
Cash Flows from Operating Activities
Net Loss $0.00 ($70,000.00)
Adjustment to Reconcile Net Loss to Net
Cash Provided by:
Operating Activities $0.00 $0.00
Depreciation $0.00 $0.00
Changes in Assets and Liabilities $0.00 $0.00
(Increase) Decrease in Assets $0.00 $70,000.00
Increase (Decrease) in Liabilities $0.00 $0.00
----------- -----------
Total Adjustments $0.00 $70,000.00
----------- -----------
Net Cash Used by Operating Activities $0.00 $0.00
Cash Flows from Investing Activities
Property and Equipment Purchases $0.00 $0.00
----------- -----------
Net Cash Used in Investing Activities $0.00 $0.00
Cash Flows from Financing Activities
Issuance of Common Stock $0.00 $0.00
Loan Proceeds $0.00 $0.00
Stockholder Loans $0.00 $0.00
Sale of Treasury Stock $0.00 $0.00
Payments on Loan Proceeds $0.00 $0.00
---------- ----------
Net Cash Provided by Financing Activities $0.00 $0.00
Increase (Decrease) in Cahs and Cash Equivalents $0.00 $0.00
Balance, Beginning of Year $0.00 $0.00
---------- ----------
Balance, End of Year $0.00 $0.00
========== ==========
</TABLE>
Prepared without audit
<PAGE>
FILMAGIC ENTERTAINMENT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1998
STATEMENT OF INFORMATION FURNISHED
1. Statement of Information Furnished
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-Q instructions and in opinion of
management contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of June
3o, 1998, the results of operations for the six months ended June 30,
1998 and 1997 and the cash flows for the six months ended June 30, 1998
and 1997. These results have been determined on the basis of generally
accepted accounting principals and practices and applied consistently with
those used in the preparation of the Company's 1998 Annual Report on Form
10-K.
Certain information and footnote disclosures included in the financial
statements presented in accordance with generally accepted accounting
principals have been condensed or omitted. It is suggested that the
accompanying consolidated financial statements be read in conjunction with
financial statements and notes thereto incorporated by reference in the
Company's 1998 Annual Report on Form 10-K.
<PAGE>
PART II. - OTHER INFORMATION
Item 1. Legal Proceeding.
Pending litigation is deemed not to have any material impact on the
Company's financial position.
Item 2. Changes in Securities.
None
Item 3. Defaults by the Company upon its Senior Securities.
None
Item 4. Submission of Matter to a Vote of Security Holders.
None
Item 5. Other Information.
None
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on behalf by the
undersigned, thereunto duly authorized.
(Registrant)
By: /s/R. Bruce Harris
--------------------------------------
R. Bruce Harris
President and Chief Operations Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 140,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 140,000
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 7,323
<OTHER-SE> 140,000
<TOTAL-LIABILITY-AND-EQUITY> 140,000
<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
<EPS-DILUTED> 0
</TABLE>
