SECURITIES EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended 08/31/96
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Commission file number 0-21210
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NELX, INC.
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(Exact name of registrant as specified in its charter)
Kansas 84-0922335
- -------------------------------- ------------------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
10200 W. 44th Ave. #400, Wheat Ridge, CO 80033
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(303) 422-9497
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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 the filing
requirements for at least the past 90 days.
Yes X No
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As of August 31, 1996, there were 18,367,507 outstanding shares of common stock,
par value $.0001 were outstanding.
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
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NELX, INC. AND SUBSIDIARY
Consolidated Balance Sheet
(Unaudited)
August May
ASSETS 31, 1996 31, 1996
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CURRENT ASSETS:
Cash and Cash Equivalents (1,094) 8,701
Prepaid Expenses 0 0
Accounts Receivable 0 0
Accrued Interest Receivable 500 500
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Total Current Assets (594) 9,201
FIXED ASSETS: (Note 1)
Land 3,718,452 3,716,801
Gas Plant 1,000,000 1,000,000
Vehicles 3,825 0
Equipment 8,654 8,654
Apartment & Office Bldgs 678,063 678,063
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5,408,994 5,403,518
Less Accumulated Depreciation (145,151) (132,725)
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Total Net Fixed Assets 5,263,844 5,270,793
OTHER ASSETS:
Deposits 3,950 3,950
Lease & Royalty Interests 0 0
Notes Receivable 0 0
Investments 10,000 10,000
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Total Other Assets 13,950 13,950
TOTAL ASSETS 5,277,199 5,293,944
========== ==========
<PAGE>
LIABILITIES AND STOCKHOLDER'S EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts Payable 138,649 139,649
Advance Payable 29,000 29,000
Accrued Expenses 0 0
Current Portion LTD 368,214 368,214
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Total Current Liabilities 535,863 536,863
LONG TERM DEBT
Note Payable 1,606,837 1,594,733
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STOCKHOLDER'S EQUITY (DEFICIT):
Common Stock, $.0001 par value
- 500,000,000 1,965 1,895
shares authorized, 18,947,300
and 19,648,723 issued and
outstanding at August 31, 1996
and May 31, 1996
Additional Paid In Capital 7,254,717 7,183,780
Retained Earnings (4,122,183) (4,023,327)
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Total Stockholder's Equity 3,134,499 3,162,348
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TOTAL LIABILITIES &
STOCKHOLDER'S EQUITY 5,277,199 5,293,944
========== ==========
The accompanying notes are considered an integral part
these financial statements
<PAGE>
NELX, INC. AND SUBSIDIARY
Consolidated Statement of Operations
(Unaudited)
Three Months
Ended August 31,
1996 1995
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OPERATING REVENUES
Oil & Gas Sales 0 20,673
Cost of Sales 1,800 150,359
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Gross Profit (1,800) (129,686)
OPERATING EXPENSES
Salaries 0 14,248
Office Expense 14,884 13,043
Travel 0 6,127
Professional Fees 56,312 98,361
Telephone & Utilities 5,279 4,446
Depreciation & Depletion 12,425 22,972
Miscellaneous 0
Interest Expense 0 32,558
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Total Operating Costs 88,900 191,755
Other Revenues & (Expenses)
Net Rental Expense (8,158) (5,811)
Interest Income 0 4,476
Miscellaneous Income 0 0
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Total Other Revenues & Expenses (8,158) (1,335)
NET INCOME (LOSS) (98,859) (322,776)
=========== ===========
Weighted average number of
shares outstanding - see note 19,648,723 13,745,413
Net Loss Per Share (0.01) (0.02)
<PAGE>
NELX, INC., AND SUBSIDIARY
Consolidated Statement of Cash Flows
(Unaudited)
Three Months
Ended August 31,
1996 1995
---------------- ----------
Cash Flows From
Operating Activities:
Net Profit (Loss) (98,859) (322,775)
Depreciation 12,426 22,972
Stock issued for services 51,435 242,000
(Increase) decrease in Accts Receivable 55,600
(Increase) decrease in Prepaids
(Increase) decrease in Deposits
(Decrease) Increase in Accrued Expenses (21,288)
(Decrease) Increase in Accts Payable (1,000) (3,500)
(Decrease) Increase in Accts Payable
Related Parties 3,357
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Net Cash Flows Used for (35,998) (23,634)
Operating Activities
Cash flows from investing activities
(Purchase) sale of fixed assets (5,476) (21,523)
(Purchase) Sale of Note receivable
(Purchase) Sale of Investment
(Purchase) Sale of Lease interests
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Total cash used for investing (5,476) (21,523)
Cash flows from financing activities
Increase (Decrease) in Note payable 12,104 30,066
Sale of common stock 19,575 12,125
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Total cash from financing activities 31,679 42,191
Increase (Decrease) in cash (9,795) (2,966)
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Cash and cash equivalents -
beginning of period 8,701 11,104
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Cash and cash equivalents
end of period (1,094) 8,138
======== ========
<PAGE>
ITEM 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
Results of Operations
- ---------------------
The Company has experienced continuing operating expenses for the three
month period of $88,900 as compared to 1995 expenses of $191,755 for the same
period. The revenues for the period totaled $0 from oil and gas operations. The
Company recorded a net loss of $98,859 for the period as compared to a $322,775
loss for the same period in fiscal year 1995. The Company losses on operations
will continue until income from oil and gas operations and real estate sales and
development can be achieved. While the Company is seeking capital sources for
investment in oil and gas wells and real estate development, there is some
assurance that sources can be found.
The Company had only minimal revenue from real estate rental and no other
revenue.
Liquidity and Capital Resources
- -------------------------------
The Company had inadequate cash capital at the end of the period. The
Company will be forced to either borrow against or sell assets or make private
placements of stock in order to fund operations continuance. No assurance exists
as to the ability to achieve sales of assets or loans against the assets, or
make private placements of stock.
<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
(a) The following are filed as Exhibits to this Quarterly Report. The
numbers refer to the Exhibit Table of Item 601 of Regulation S-K:
None.
(b) Reports on Form 8-K filed during the three months ended August 31,
1996:
None.
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.
NELX, Inc.
(Registrant)
Date: April 17, 1997 /s/ WESLEY F. WHITING
------------------------------------
Wesley F. Whiting, President
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<COMMON> 1,965
<OTHER-SE> 3,132,534
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<SALES> 0
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<CGS> 1,800
<TOTAL-COSTS> 1,800
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<INCOME-TAX> 0
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<EXTRAORDINARY> 0
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<NET-INCOME> (98,858)
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