UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [Fee Required]
For the quarterly period ended - March 31, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [No Fee Required]
For the transition period from ________ to ________
Commission file number 33-33042-NY
Coronado Industries, Inc.
----------------------------------------------
(Name of small business issuer in its charter)
Nevada 22-3161629
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
16929 E. Enterprise Drive, Suite 202, Fountain Hills, AZ 85268
- --------------------------------------------------------------- ---------
(Address of Principal executive offices) (as of date of filing) (Zip Code)
Issuer's telephone number (602) 837-6810
---------------
Check whether the issuer (1) filed all reports required to be filed by
section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the Registrant was required to file such reports), and (2)
has been subject such filing requirements for the past 90 days. Yes [X] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 18,344,253
Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
<PAGE>
CORONADO INDUSTRIES, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1997
Page
----
PART I
Item 1 Financial Statements 1
Item 2. Management's Discussion and Analysis
or Plan of Operation 4
PART II
Item 1. Legal Proceedings 5
Item 2. Changes in Securities N/A
Item 3. Defaults Upon Senior Securities N/A
Item 4. Submission of Matter to a Vote of Security Holders N/A
Item 5. Other Matters N/A
Item 6. Exhibits and Reports on Form 8-K N/A
SIGNATURES 6
<PAGE>
CORONADO INDUSTRIES, INC.
(A Development Stage Company)
BALANCE SHEETS
March 31, 1997 and December 31, 1996
March 31, December 31,
1997 1996
(Unaudited) (Audited)
----------- -----------
ASSETS
Current Assets:
Cash $ 26,054 $ 7,183
Inventory 15,832 10,567
-------- --------
Total current assets 41,886 17,750
-------- --------
PROPERTY AND EQUIPMENT, net 8,014 8,799
-------- --------
OTHER ASSETS:
Patents 3,001 1
Professional retainers 8,000 --
Goodwill 7,695 8,265
-------- --------
Total other assets 18,696 8,266
-------- --------
TOTAL ASSETS $ 68,596 $ 34,815
======== ========
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable $ 10,663 $ 8,272
Accrued salaries 66,556 30,556
Accrued payroll taxes 4,200 --
Notes payable and accrued interest 103,166 --
-------- --------
Total Current Liabilities 184,585 38,828
LONG-TERM DEBT -- 10,000
-------- --------
Total Liabilities 184,585 48,828
-------- --------
SHAREHOLDERS' DEFICIT:
Common stock - $.001 par value;
20,000,000 shares authorized,
18,344,253 shares issued and outstanding 18,344 18,344
Additional paid-in capital 37,149 37,149
Deficit accumulated during development stage (171,482) (69,506)
-------- --------
Total Stockholders' Deficit (115,989) (14,013)
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 68,596 $ 34,815
======== ========
1
<PAGE>
CORONADO INDUSTRIES, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
March 31, March 31
1997 1996
(Unaudited) (Unaudited)
----------- -----------
REVENUE $ -- $ --
OPERATING EXPENSES:
Salaries:
Officers 50,000 --
Office 1,200 --
Payroll taxes 4,334 --
Advertising 189 --
Amortization 570 --
Bank charges 30 --
Depreciation 985 --
Donations 60 --
Filing fees 885 --
Insurance:
General liability 273 --
Product liability 4,095 --
Office 173 --
Outside services 172 --
Postage and delivery 131 --
Professional fees 17,101 --
Rent 2,193
Research and development 5,000 --
Shareholder services 5,710 --
Supplies 2,228 --
Taxes and licenses 487 199
Telephone 1,934 --
Temporary labor 764 --
Travel 2,816 --
--------- ---------
Total operating expenses 101,310 199
LOSS FROM OPERATIONS (101,310) (199)
--------- ---------
OTHER INCOME AND EXPENSES
Other income 500 --
Interest Expense (1,166) --
--------- ---------
Total other income and expenses (666) --
NET LOSS (101,976) (199)
ACCUMULATED DEFICIT, beginning period (69,506) (298,854)
--------- ---------
ACCUMULATED DEFICIT, end of period $(171,482) $(299,053)
========= =========
NET LOSS PER COMMON SHARE $ (.01) $ --
========= =========
2
<PAGE>
CORONADO INDUSTRIES, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
March 31, March 31
1997 1996
(Unaudited) (Unaudited)
----------- -----------
CASH FLOW FROM OPERATING ACTIVITIES:
Cash paid for operating expenses $ (72,929) $(6,624)
CASH FLOW USED IN INVESTING ACTIVITIES:
Acquisition of property and equipment (200) --
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from borrowings 92,000 8,000
--------- -------
MET INCREASE IN CASH 18,871 1,376
CASH, beginning period 7,183 1,403
--------- -------
CASH, end of period $ 26,054 $ 2,779
========= =======
RECONCILIATION OF NET LOSS TO NET CASH
USED IN OPERATING ACTIVITIES:
Net loss $(101,976) $ (199)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation 985 --
Amortization 570 --
Increase in:
Other notes and accounts receivable -- (900)
Inventory (5,265) --
Patents (3,000) --
Professional retainers (8,000) --
Increase (decrease) in:
Accounts payable 2,391 (5,700)
Accrued salaries 36,000 --
Accrued expenses 1,166 175
Accrued payroll taxes 4,200 --
--------- -------
NET CASH USED IN OPERATING ACTIVITIES $ (72,929) $(6,624)
========= =======
3
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
OPERATIONS
Registrant was a development stage company at March 31, 1997, with no
revenues having been generated during the quarter. Also, prior to November 5,
1996 Registrant had been a dormant shell company with no operations since 1994.
Therefore, there is no prior year's operations of Registrant to which to compare
the March 1997 quarterly operating results.
For the first quarter of the 1997 year, Registrant experienced a net loss
of $101,976. Approximately 76% of this loss resulted from the total of the
accrued of management salaries and taxes of $54,334, $17,101 of professional
fees, and $5,710 of shareholders relations expenses. Until Registrant's product
sales commence, Registrant anticipates management will receive minimal salary
payments. Any accrued salaries will be paid out of future increased revenues.
With respect to future operations, Registrant intends to commence actively
marketing and manufacturing its patented Vacuum Fixation Device and patented
suction rings in the second half of 1997. The profitability of these operations
will be dependent upon the total number of units sold. Registrant believes,
without assurances, that its gross profit margins are such that Registrant could
be profitable if as few as 200 Vacuum Fixation Devices were sold during 1997.
Registrant is also planning, without assurances, on opening its first
glaucoma treatment center in the United States in Phoenix, Arizona in the second
half of 1997. On an annual basis, this glaucoma center could be profitable from
serving as few as 800 patients. Registrant believes, without assurances, that it
is likely to be servicing between 1,000 and 3,000 patients on an annual basis by
the end of the glaucoma center's first full year of operations.
LIQUIDITY AND CAPITAL RESOURCES
On a short-term and long-term basis Registrant requires only minimal
capital to sustain its manufacturing and marketing of the patented Vacuum
Fixation Device and the patented suction rings, because of Registrant's current
inventory levels and the low cost of marketing these patented products. However,
on a short-term basis Registrant requires approximately $600,000 to $800,000 to
adequately fund the first year's operation of its initial glaucoma treatment
center in Phoenix, Arizona. Registrant is presently planning to conduct a
private placement of its securities in 1997 to secure this financing. However,
at this time Registrant has received no commitments from any source to provide
such financing. On a long-term basis, Registrant anticipates, without
assurances, that its initial glaucoma treatment center will be sufficiently
profitable to permit an additional 39 glaucoma centers to be funded over the
subsequent two years from a combination of internal and external sources.
At March 31, 1997, Registrant had borrowed a total of $102,000 from Hayden
Investments and accrued $1,166 of interest expense on this debt. Through April
20, 1997, Registrant had borrowed an additional $80,000 from this same lender.
These loans mature in one year from the date of issuance and bear 15% annual
interest which is due at maturity. Registrant anticipates borrowing additional
sums to fund Registrant's activities until Registrant's product sales or clinic
revenues commence.
On international product sales, Registrant anticipates, without assurance,
avoiding currency deviations by receiving U.S. currency for all product sales.
4
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
There have been no legal proceedings instituted by or against the
Registrant during the quarter ending March 31, 1997. However, at least one of
the Company's former officers and Directors has threatened to sue the Company
and its current Directors as a result of damages which have been incurred
because the Company has refused to permit the transfer of his shares. The
Company has decided to file a lawsuit against this and other former officers, as
well as other shareholders, on the basis that it now appears they may have been
issued Company shares without the Company receiving consideration therefor, as
well as other grounds.
5
<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 authorized.
CORONADO INDUSTRIES, INC.
Date: June 20, 1997 By: /s/ Gary R. Smith
----------------- ------------------------------
Gary R. Smith, President (Chief
Executive Officer) and Treasurer
(Chief Accounting Officer)
6
EXHIBIT 11
CORONADO INDUSTRIES, INC.
Earnings (Loss) Per Share
March 31, 1996
Net Loss $ (171,482)
Net Loss Per Share $ (.01)
Weighted Average Shares Outstanding 18,344,253
The loss per share is based upon the weighted average number of shares
outstanding from the time of the reverse merger, and giving retroactive effect
to the one-for-five reverse stock split.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 26,054
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 15,832
<CURRENT-ASSETS> 41,886
<PP&E> 10,565
<DEPRECIATION> (2,551)
<TOTAL-ASSETS> 68,596
<CURRENT-LIABILITIES> 184,585
<BONDS> 0
0
0
<COMMON> 18,344
<OTHER-SE> (134,333)
<TOTAL-LIABILITY-AND-EQUITY> 68,596
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 101,310
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,166
<INCOME-PRETAX> (101,976)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (101,976)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
