UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q/A
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 So. 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
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Form 10-Q for the quarter ended
September 30, 1998, dated November 10, 1998 as set forth below:
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations, is amended to read as follows:
Results of Operations
The Company had net income of $25,355 for the nine month period ended
September 30, 1998, which includes interest income of $27,965 and government
subsidy of $1,337, less general and administrative expenses of $3,947; as
compared to the nine month period ended September 30, 1997 net income of
$686,849 which includes interest income of $3,327, government subsidy of $541,
and sale of investment security of $1,013,090 less general and administrative
expenses of $4,109 and accrued income taxes of $326,000.
Liquidity and Capital Resources
Net current assets at September 30, 1998 were $712,478 as compared to
net current assets at December 31, 1997 of $683,681. The increase in net current
assets of $28,797 was due to an increase in cash.
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The Company is not now, nor has it at any time, been engaged in any
regular business operations. Its activity has consisted of isolated transactions
in parcels of real estate, most of which have now been sold, and acquisition and
sale of securities, which have now also been sold. The Company presently is not
engaging in any significant or regular ongoing costs of operations or debt. It
can be said that the Company is relatively liquid under these circumstances.
However, in the event a business opportunity should become available and the
Company elects to embark on such, there is no assurance the funds of the Company
would be sufficient for such new endeavor. The Company has made no material
commitments for capital expenditures. Until the Company identifies a particular
business opportunity it wishes to pursue, it intends to continue to monitor its
investments and keep its liquid assets invested at reasonable interest rates.
Management is aware of the worldwide concern that Year 2000 technology
problems may wreak havoc on global economies and that no business, including the
Company, is immune from the potential far-reaching effects of Year 2000
problems. The Year 2000 problem arose because many existing computer programs
use only the last two digits to refer to a year. Therefore, these computer
programs do not properly recognize a year that begins with 20 instead of 19.
If not corrected, many computer applications could fail or create erroneous
results. The extent of the potential impact of the Year 2000 problem is not yet
known, and if not timely corrected, it could affect the global economy.
Although the Company doesn't own, lease or operate any computers, and
therefore does not in any way rely on computers or computer programs to handle
its own in house accounting and internal affairs, management has determined that
the Company may be adversely affected by third parties with whom it deals if
such parties have not properly assessed and addressed the Year 2000 problem.
Presently, and for the foreseeable future beyond January 1, 2000, the only
operations the Company is involved in are the collection of notes receivable
from third parties and depositing them in the Company's bank accounts.
Management has determined that failure on the part of these third parties,
including the bank, to solve their own Year 2000 issues could interfere with
the smooth collection and handling of the Company's funds with respect to said
notes and monies in the Company's bank accounts.
The Company's state of readiness for the Year 2000 problem is as
follows: Management has obtained written assurances from the Company's bank
that all of its systems are fully Year 2000 compliant.
The Company has not incurred any costs, and has projected no future
costs, in addressing its Year 2000 issues.
The Year 2000 problems pose the following potential risks to the
Company: (1) The Company's money in bank accounts could be tied up for a period
of time and not be readily accessible in the event the bank's computers
malfunction; (2) Debtors making payments to the Company could be unable to make
their payments when due if their monies are tied up for a period of time and not
available to them because of their banks' computer malfunctions; (3) If either
(1) or (2) should occur there is no assurance how long it would take to obtain
access to funds, and as a result the Company could be prevented from taking
advantage of a favorable business opportunity or investment if such should
become available; (4) Any failures of telecommunications companies,
transportation companies, utility companies and other service industries,
brought on by unsolved Year 2000 problems would adversely affect the Company
to the extent it needs such services for its operations (which as mentioned,
is presently minimal, however); and (5) The national and global economies could
become chaotic, ineffective and with financially disastrous affects on all
persons and segments of the economy, including a major economic depression, in
the event that a sufficient number of computer systems fail because of failure
to solve the Year 2000 problem.
The Company has no contingency plans in the event any of the above, or
possibly other problems occur in connection with the Year 2000 problem.
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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: May 14, 1999 s/ Krista Nielson
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Krista Nielson, President, CEO and Director
Dated: May 14, 1999 s/ Sasha Belliston
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Sasha Belliston, Secretary/Treasurer and Director
