UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to __________
Commission File No. 33-55254-01
ARROW MANAGEMENT, INC.
(Exact name of Registrant as specified in its charter)
NEVADA 87-0467339
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
3098 SOUTH HIGHLAND DRIVE, SUITE 460
SALT LAKE CITY, UTAH 84106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (801) 485-7775
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. [X] Yes [ ] No
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
Class Outstanding as of November, 1996
$.001 PAR VALUE CLASS A COMMON STOCK 5,930,700 SHARES
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
BASIS OF REPRESENTATION
General
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-Q and therefore, do not include all
information and footnotes necessary for a complete presentation of financial
position, results of operations, cash flows and stockholders' equity in
conformity with generally accepted accounting principles. In the opinion of
management, all adjustments considered necessary for a fair presentation of the
results of operations and financial position have been included and all such
adjustments are of a normal recurring nature. Operating results for the quarter
ended September 30, 1996, are not necessarily indicative of the results that can
be expected for the year ending December 31, 1996.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Results of Operations
The Company sustained a loss of $9,556 for the nine month period ended
September 30, 1996, which includes general and administrative expenses of
$12,880 less interest and miscellaneous income of $3,324; as compared to the
nine month period ended September 30, 1995 loss of $95,327 consisting of general
and administrative expenses of $97,712 less interest income of $2,385.
Liquidity and Capital Resources
Net current assets at September 30, 1996 were $25,496 as compared to
net current assets at December 31, 1995 of $33,058. The decrease in net current
assets of $7,562 was due to a decrease in cash of $7,346, a decrease in current
receivables of $5,553, an increase in accrued expenses payable of $3,000 and a
decrease in notes payable of $8,337.
The Company presently has no significant sources of revenue from
operations. During December, 1995, the Company changed its development plans
with respect to the Panorama Hills Project and is not presently pursuing plans
to develop the land. The Company has listed the land for sale. One factor that
lead to the change in plans is the slowdown in economic development and related
decrease in consumer demand for new housing in the Idaho Falls area. Another
factor is Panorama's rescission of the media due bills, trade dollars and other
credits for the return of 320,000 shares of its common stock. Panorama had
planned on using such credits for the development of the land.
<PAGE>
<TABLE>
<CAPTION>
ARROW MANAGEMENT, INC. AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED BALANCE SHEETS
9/30/96 12/31/95
Unaudited Audited
------------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash in bank $ 10,659 $ 18,005
Current portion of contracts receivable 27,051 32,604
------------------ --------------------
TOTAL CURRENT ASSETS 37,710 50,609
OTHER ASSETS
Land 390,000 390,000
Investment security (Note 10) 158,337 158,337
Long-term portion of contracts receivable 29,417 31,411
------------------ --------------------
TOTAL OTHER ASSETS 577,754 579,748
------------------ --------------------
$ 615,464 $ 630,357
================== ====================
LIABILITIES & EQUITY
CURRENT LIABILITIES
Accrued expenses payable $ 12,214 $ 9,214
Note payable and accrued interest - related party - 0 - 8,337
Accrued income taxes payable - 0 - - 0 -
------------------ --------------------
TOTAL CURRENT LIABILITIES 12,214 17,551
Minority interest in subsidiary 3,000 3,000
STOCKHOLDERS' EQUITY Common Stock $.001 par value:
Authorized - 50,000,000 shares
Issued and outstanding - 5,930,700 shares 5,931 5,931
Additional paid-in capital 2,568,317 2,568,317
Deficit accumulated during development stage (2,032,335) (2,022,779)
Unrealized gain on investment security 58,337 58,337
------------------ --------------------
TOTAL STOCKHOLDERS' EQUITY 600,250 609,806
------------------ --------------------
$ 615,464 $ 630,357
================== ====================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ARROW MANAGEMENT, INC. AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
1/14/88
For the three months For the nine months (Date of
ended Sept 30, ended Sept 30, inception) to
1996 1995 1996 1995 9/30/96
Unaudited Unaudited Unaudited Unaudited Unaudited
-------------- ------------- ------------- -------------- ------------
<S> <C> <C> <C> <C> <C>
Net sales $ - 0 - $ - 0 - $ - 0 - $ - 0 - $ 148,000
Cost of sales - 0 - - 0 - - 0 - - 0 - 118,626
-------------- ------------- ------------- -------------- ------------
GROSS PROFIT (LOSS) - 0 - - 0 - - 0 - - 0 - 29,374
Loss from impairment of land value - 0 - - 0 - - 0 - - 0 - 1,955,000
General and
administrative expenses 4,569 22,276 12,880 97,712 206,423
-------------- ------------- ------------- -------------- ------------
OPERATING (LOSS) (4,569) (22,276) (12,880) (97,712) (2,132,049)
Other Income
Interest income 730 783 3,060 2,385 73,476
Other 264 - 0 - 264 - 0 - 26,238
-------------- ------------- ------------- -------------- ------------
TOTAL OTHER INCOME 994 783 3,324 2,385 99,714
-------------- ------------- ------------- -------------- ------------
NET (LOSS) BEFORE
INCOME TAXES (3,575) (21,493) (9,556) (95,327) (2,032,335)
Provision for income taxes - 0 - - 0 - - 0 - - 0 - - 0 -
-------------- ------------- ------------- -------------- ------------
NET (LOSS) $ (3,575) $ (21,493) $ (9,556) $ (95,327) $ (2,032,335)
============== ============= ============= ============== ============
Net (loss) per weighted
average common shares $ (.00) $ (.00) $ (.00) $ (.01)
============== ============= ============= ==============
Weighted average number of
common shares used to compute
net (loss) 5,930,700 6,250,700 5,930,700 6,250,700
============== ============= ============= ==============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ARROW MANAGEMENT, INC. AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Deficit
Accumulated
Common Stock Additional During
Par Value $0.001 Paid -in Development
Shares Amount Capital Stage
---------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
Balance, 1/14/88
(Date of inception) - 0 - $ - 0 - $ - 0 - $ - 0 -
Issuance of common stock (restricted)
at $.002 per share, 1/14/88 1,000,000 1,000 1,000
Acquisition of subsidiary(1) 5,250,700 5,251 (3,251) (1,960)
Net loss for period (1,960)
---------- -------------- ------------- -------------
Balance at 12/31/88 6,250,700 6,251 (2,251) (3,920)
Net loss for year (20)
---------- -------------- ------------- -------------
Balance at 12/31/89 6,250,700 6,251 (2,251) (3,940)
Net loss for year (20)
---------- -------------- ------------- -------------
Balance at 12/31/90 6,250,700 6,251 (2,251) (3,960)
Assets acquired by subsidiary 4,420,000
Minority interest adjustment (12,000)
Net loss for year (20)
---------- -------------- ------------- -------------
Balance at 12/31/91 6,250,700 6,251 4,405,749 (3,980)
Debentures cancelled (2,000,000)
Assets acquired by subsidiary 1,600,000
Minority interest adjustment (8,000)
Net loss for year (891)
---------- -------------- ------------- -------------
Balance at 12/31/92 6,250,700 6,251 3,997,749 (4,871)
Minority interest adjustment (2,000)
Net loss for year (16,763)
---------- -------------- ------------- -------------
Balance at 12/31/93 6,250,700 6,251 3,995,749 (21,634)
Net loss for year (41,004)
---------- -------------- ------------- -------------
Balance at 12/31/94 6,250,700 6,251 3,995,749 (62,638)
Trade and media credits cancelled (320,000) (320) (1,446,432)
Minority interest adjustment 19,000
Net loss for year (1,960,141)
---------- -------------- ------------- -------------
Balances at 12/31/95 5,930,700 5,931 2,568,317 (2,022,779)
Net loss for period (9,556)
---------- -------------- ------------- -------------
Balance at 9/30/96 5,930,700 $ 5,931 $ 2,568,317 $ (2,032,335)
========== ============== ============= =============
(1) Acquisition actually occurred on September 30, 1993, but is reflected
earlier under the pooling-of-interests method of accounting.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ARROW MANAGEMENT, INC. AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
1/14/88
For the nine months (Date of
ended Sept 30, inception) to
1996 1995 9/30/96
-------------- -------------- --------------
<S> <C> <C> <C>
OPERATING ACTIVITIES
Net (loss) $ (9,556) $ (95,327) $ (2,032,335)
Adjustments to reconcile net
(loss) to cash provided (required)
by operating activities:
Amortization - 0 - - 0 - 100
Cost of land sold - 0 - - 0 - 105,000
Loss from impairment of land value - 0 - - 0 - 1,955,000
Changes in operating assets and liabilities:
Trade dollars - 0 - 85,109 8,248
Loans receivable - 0 - - 0 - - 0 -
Contracts receivable 7,547 1,667 (56,468)
Accrued expenses 3,000 (8,956) 12,214
-------------- -------------- --------------
NET CASH PROVIDED (REQUIRED)
BY OPERATING ACTIVITIES 991 (17,507) (8,241)
INVESTING ACTIVITIES
Purchase of real estate - 0 - - 0 - (105,000)
Organization costs - 0 - - 0 - (100)
-------------- -------------- --------------
NET CASH (USED) BY
INVESTING ACTIVITIES - 0 - - 0 - (105,100)
FINANCING ACTIVITIES
Proceeds from sale of common stock(1) - 0 - - 0 - 124,000
Loans - 0 - 3,000 10,417
Repayments (8,337) - 0 - (10,417)
-------------- -------------- --------------
NET CASH PROVIDED (REQUIRED)
BY FINANCING ACTIVITIES (8,337) 3,000 124,000
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (7,346) (14,507) 10,659
Cash and cash equivalents
at beginning of period 18,005 15,307 - 0 -
-------------- -------------- --------------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 10,659 $ 800 $ 10,659
============== ============== ==============
SUPPLEMENTAL INFORMATION
Cash paid for interest $ 477 $ - 0 - $ 676
============== ============== ==============
</TABLE>
SUPPLEMENTAL INVESTING ACTIVITY DISCLOSURE
In July, 1992, Panorama issued 320,000 shares of stock for assets with a cost of
$1,600,000. These shares were returned to the Company in December, 1995 in
connection with the rescission agreement.
(1) Stock of subsidiary was $122,000.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ARROW MANAGEMENT, INC.
Dated: November 12, 1996 s\David R. Yeaman
-----------------------------------------------
David R. Yeaman, President CEO and Director
Dated: November 12, 1996 s\Krista Nielson
------------------------------------------------
Krista Nielson, Secretary/Treasurer and Director
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from ARROW
MANAGEMENT, INC. September 30, 1996 financial statements and is qualified
in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000860401
<NAME> ARROW MANAGEMENT, INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 10,659
<SECURITIES> 0
<RECEIVABLES> 27,051
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 37,710
<PP&E> 390,000
<DEPRECIATION> 0
<TOTAL-ASSETS> 615,464
<CURRENT-LIABILITIES> 12,214
<BONDS> 0
0
0
<COMMON> 5,931
<OTHER-SE> 594,319
<TOTAL-LIABILITY-AND-EQUITY> 615,464
<SALES> 0
<TOTAL-REVENUES> 3,324
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 12,880
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (9,556)
<INCOME-TAX> 0
<INCOME-CONTINUING> (9,556)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,556)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
