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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 11/30/99
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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.)
10525 W. 23rd Place, Lakewood, CO 80215
---------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (304) 622-9599
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 ____
As of November 30, 1999, there were 44,352,042 outstanding shares of common
stock, par value $.0001.
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
<TABLE>
<CAPTION>
NELX, INC.
Consolidated Balance Sheet
(Unaudited)
November November
30, 1999 30, 1998
<S> <C> <C>
ASSETS
Current Assets
Cash & Cash Equivalents $ 1,838 $ 4,091
Property, Plant and Equipment
Plant and Plant Equipment 100,000 100,000
Equipment 8,654
Land
Buildings 54,175 85,175
------- ------
154,175 193,829
Less Accumulated Depreciation 104,411 114,266
-------- -------
Net Fixed Assets 49,764 79,563
TOTAL ASSETS $ 51,602 $ 83,654
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 23,255 $ 33,255
Accrued Expenses 10,036
Note Payable - Stockholder 69,650 57,950
Current Portion of Long-Term Debt 6,034
-----
---------------
Total Current Liabilities 92,905 107,275
Long Term Liabilities
Notes Payable 25,841
Total Liabilities 92,905 133,116
Stockholders' Equity
Common Stock. $0.0001 par value, 500,000,000 shares authorized
44,352,042 issued and outstanding at May 31, 1999 and
44,352,042 issued and outstanding at November 31, 1999 4,460 4,635
Additional paid-in capital 7,631,450 7,623,975
Retained Deficit (7,677,213) (7,678,072)
----------- -----------
TOTAL STOCKHOLDERS' DEFICIT (41,303) (49,462)
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 51,602 $ 83,654
=============== ===============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months Ended November 30,
(Unaudited)
1999 1998
---- ----
<S> <C> <C>
REVENUES
Oil & gas sales -
Sale of ORRI
Misc Income
Cost of Sales
Gross Profit - -
EXPENSES
Interest 500 4,542
Office Expense 2,672 2,403
Professional Fees 2,700 4,450
Telephone & Utilities 44 491
--- ---
Total Operating Expenses 5,916 11,886
NET INCOME (LOSS) $ (5,916) $ (11,886)
=============== ===============
Loss per Common Share (0.00) (0.00)
Weighted average number of shares outstanding 44,352,042 46,352,042
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
Consolidated Statement of Cash Flows
(Unaudited)
Six Months
Ended November 30
1999 1998
---- ----
<S> <C> <C>
Cash Flows from Operating Activities:
Net Profit (Loss) (5,916) $(11,886)
Depreciation
(Decrease) Increase in Accounts Payable (1,000) (45,510)
(Decrease) Increase in Accrued Expenses
(Increase) Decrease in Other Assets
(Increase) Decrease in Accounts Receivable
------------- ------------
Net Cash Flows Used for Operating Activities (6,916) (57,396)
Cash Flows from Investing Activities
(Purchase) Sale of Fixed Assets (3,175)
(Purchase) Sale of Note Receivable
(Purchase) Sale of Investment
------------- ------------
Net Cash (Used by) From Investing Activities - (3,175)
Cash Flows from Financing Activities
Increase (Decrease) in Note Payable 1,000 (95,000)
Sale of Common Stock 7,500
Sale of Treasury Stock 158000
------------- ------------
Total Cash from (Used by) Financing Activities 8,500 63,000
Increase (Decrease) in Cash 1,584 2,429
-----
Cash and Cash Equivalents - Beginning of Period 254 1,662
-----
Cash and Cash Equivalents - end of Period 1,838 4,091
============= ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended November 30,
(Unaudited)
1999 1998
---- ----
<S> <C> <C>
REVENUES
Oil & gas sales -
Sale of ORRI
Misc Income
Cost of Sales
---------------
Gross Profit - -
EXPENSES
Interest
Office Expense 899 1,468
Professional Fees 50 3,400
Telephone & Utilities 105
--------------- ---------------
Total Operating Expenses 949 4,973
NET INCOME (LOSS) $ (949) $ (4,973)
=============== ===============
Loss per Common Share (0.00) (0.00)
Weighted average number of shares outstanding 44,602,042 46,352,042
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NELX, INC.
Consolidated Statement of Cash Flows
(Unaudited)
Three Months
Ended November 30
1999 1998
---- ----
<S> <C> <C>
Cash Flows from Operating Activities:
Net Profit (Loss) (949) $(4,973)
Depreciation
(Decrease) Increase in Accounts Payable (7,000)
(Decrease) Increase in Accrued Expenses
(Increase) Decrease in Other Assets
(Increase) Decrease in Accounts Receivable
------------- ------------
Net Cash Flows Used for Operating Activities (949) (11,973)
Cash Flows from Investing Activities
(Purchase) Sale of Fixed Assets 1
(Purchase) Sale of Note Receivable
(Purchase) Sale of Investment
------------- ------------
Net Cash (Used by) From Investing Activities - 1
Cash Flows from Financing Activities
Increase (Decrease) in Note Payable 1,000
Sale of Common Stock
Sale of Treasury Stock
------------- ------------
Total Cash from (Used by) Financing Activities - 1,000
Increase (Decrease) in Cash (949) (10,972)
--------
Cash and Cash Equivalents - Beginning of Period 2,787 15,063
------
Cash and Cash Equivalents - end of Period 1,838 4,091
============= ============
</TABLE>
<PAGE>
ITEM 2.
Management's Discussion and Analysis of Financial Condition and Results of
Operations.
Results of Operations for Quarter Ended November 30, 1999 Compared to Same
Period in 1998.
The Company has experienced continuing operating expenses for the three
month period in 1999 of $949 as compared to $4,973 in the same period for 1998.
The revenues for the period were none from operations in 1999 or 1998. The
Company recorded a net loss of $(949) for the period in 1999 as compared to a
$(4,973) loss for the same period in fiscal year 1998. The Company losses on
operations will continue until income from any operations can be achieved. While
the Company is seeking capital sources for investment, there is no assurance
that sources can be found. The loss per share for the period in 1999 was ($.00)
compared to ($.00) for the same period in 1998.
Results of Operations for Six Month Period Ended November 30, 1999 Compared to
Same Period in 1998
The Company has experienced continuing operations expenses for the six
month period in 1999 of $5,916 compared to $11,886 in 1998. There were no
revenues for the period in 1999 or 1998. The Company had a loss on operations of
($5,916) in the six month period in 1999 compared to an ($11,886) loss on
operations in the same period in 1998. The loss per share for the period in 1999
and 1998 was less than ($.01) per share.
Liquidity and Capital Resources
The Company had inadequate cash capital at the end of the period for
any significant operations. The Company will be forced to either borrow against
or sell assets or make private placements of stock in order to fund operations.
No assurance exists as to the ability to achieve sales of assets or loans
against the assets, or make private placements of stock. The Company had $51,602
in assets and $92,905 in liabilities at quarter end.
<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
November 30, 1999:
8-K filed September 9, 1999 and
8-K filed November 19, 1999
<PAGE>
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.
Date: January 31, 2000
/s/ Charles L. Stout
by: ----------------------------------
Charles L. Stout, President
<TABLE> <S> <C>
<ARTICLE> 5
<CURRENCY> USD
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-END> NOV-30-1999
<EXCHANGE-RATE> 1
<CASH> 1838
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1838
<PP&E> 154175
<DEPRECIATION> 104411
<TOTAL-ASSETS> 51602
<CURRENT-LIABILITIES> 92905
<BONDS> 0
0
0
<COMMON> 4460
<OTHER-SE> (45763)
<TOTAL-LIABILITY-AND-EQUITY> 51602
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5916
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (5916)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5916)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5916)
<EPS-BASIC> (.0)
<EPS-DILUTED> (.0)
</TABLE>
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