U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-QSB
Quarterly Report Under
the Securities Exchange Act of 1934
For Quarter Ended: June 30, 1997
Commission File Number: 0-25562
GENESIS COMPANIES GROUP, INC.
(Exact name of small business issuer as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
72-1175963
(IRS Employer Identification No.)
830 S. Kline Way
Lakewood, Colorado
(Address of principal executive offices)
80226
(Zip Code)
(303) 985-3972
(Issuer's Telephone Number)
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 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: Yes
__X__ No ____.
The number of shares of the registrant's only class of common stock issued and
outstanding, as of June 30, 1997, was 4,500,000 shares.
<PAGE>
PART I
ITEM 1. FINANCIAL STATEMENTS.
The unaudited financial statements for the six month period ended June 30,
1997, are attached hereto.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Financial
Statements and notes thereto included herein.
The Company generated no revenues during the six month period ended June
30, 1997. Management of the Company anticipates that the Company will not
generate any significant revenues until the Company accomplishes its business
objective of merging with a nonaffiliated entity or acquiring assets from the
same.
The Company's securities are currently not liquid. There are no market
makers in the Company's securities and it is not anticipated that any market
will develop in the Company's securities until such time as the Company
successfully implements its business plan of engaging in a business opportunity,
either by merger or acquisition of assets. The Company presently has no liquid
financial resources to offer such a candidate and must rely upon an exchange of
its stock to complete such a merger or acquisition.
Because the Company is not required to pay rent or salaries to any of its
officers or directors, management believes that the Company has sufficient funds
to continue operations through the foreseeable future.
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) Exhibits
EX-27 Financial Data Schedule
(b) Reports on Form 8-K - None.
2
<PAGE>
<TABLE>
GENESIS COMPANIES GROUP, INC.
(A Development Stage Company)
Unaudited
Balance Sheet
<CAPTION>
Unaudited Audited
June 30, December 31
1997 1996
_________ ___________
<S> <C> <C>
ASSETS
Current Assets - Cash $ 0 $ 0
_________ ___________
TOTAL ASSETS $ 0 $ 0
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Current Liabilities -
Accounts Payable $ 4,522 $ 4,522
Shareholder Loans 6 6
_________ ___________
Total Current Liabilities 4,528 4,528
Long-Term Liabilities 0 0
_________ ___________
Total Liabilities $ 0 $ 0
Shareholder's Equity
Common Stock, Par Value $.00001 Per
Share; 100,000,000 Shares Authorized,
4,500,000 Issued and Outstanding at
June 30, 1997, and December 31, 1996,
respectively $ 45 $ 45
Preferred Stock, Par Value $.00001 Per
Share; 10,000,000 Shares Authorized 0 0
Additional Paid-in Capital 13,455 13,455
Deficit Accumulated During
the Development Stage (18,028) (18,028)
_________ ___________
Total Shareholders' Equity $ (4,528) $ (4,528)
_________ ___________
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY $ 0 $ 0
</TABLE>
3
<PAGE>
<TABLE>
GENESIS COMPANIES GROUP, INC.
(A Development Stage Company)
Unaudited
Statement of Operations
<CAPTION>
For the December 22, 1988
Six Months For the (Inception)
Ended Year Ended Thru
June 30, December 31, June 30,
1997 1996 1997
____________ ____________ _________________
<S> <C> <C> <C>
Income $ 0 $ 0 $ 0
Operating Expenses
Professional Fees 0 4,772 13,086
Registration Fees 0 50 3,240
Administrative Expenses 0 166 1,702
____________ ____________ _________________
Total Operating Expenses 0 4,988 18,028
Net Loss from Operations $ 0 $ (4,988) $ (18,028)
Weighted Average Number of
Shares Outstanding 4,500,000 4,500,000 4,453,125
Net Loss Per Share $ (*) $ (*) $ (*)
<FN>
*Less than $0.01 Per Share.
</TABLE>
4
<PAGE>
<TABLE>
GENESIS COMPANIES GROUP, INC.
(A Development Stage Company)
Unaudited
Cash Flow Statement
<CAPTION>
For the December 22, 1988
Six Months For the (Inception)
Ended Year Ended Thru
June 30, December 31, June 30,
1997 1996 1997
____________ ____________ ______________
<S> <C> <C> <C>
Cash Flows From
Operating Activities:
Net Profit (Loss) $ 0 $ (4,988) $ (18,028)
Increase (Decrease) in
Accounts Payable 0 4,528 4,528
____________ ___________ _____________
Net Cash Provided (Used)
By Operating Activities 0 (460) (13,500)
Cash Flows From
Financing Activities:
Issuance of Common Stock 0 0 13,500
____________ ____________ ______________
Net Cash Provided (Used)
in Financing Activities 0 0 13,500
____________ ____________ ______________
Increase (Decrease) in Cash 0 (460) 0
Cash and Cash Equivalents -
Beginning of Period 0 460 0
____________ ____________ ______________
Cash and Cash Equivalents -
End of Period $ 0 $ 0 $ 0
</TABLE>
5
<PAGE>
<TABLE>
GENESIS COMPANIES GROUP, INC.
(A Development Stage)
Unaudited
Statement of Shareholders' Equity
<CAPTION>
Deficit
Accumulated
Number of Additional During the
Shares Common Paid In Development
Common Stock Stock Capital Stage Total
____________ ______ __________ ___________ _______
<S> <C> <C> <C> <C> <C>
Balance at
December 22, 1988 0 $ 0 $ 0 $ 0 $ 0
Stock issued for cash
April 14, 1989 113,000 1 149 0 150
Stock issued for cash
May 12, 1989 1,315,000 13 3,987 0 4,000
Stock issued for cash
November 10, 1989 2,622,000 26 7,974 0 8,000
Stock issued for cash
December 5, 1989 450,000 5 1,345 0 1,350
____________ ______ __________ ___________ _______
Balance at
December 31, 1989 4,500,000 45 13,455 0 13,500
W/O deferred
offering costs (10,661) (10,661)
____________ ______ __________ ___________ _______
Balance at
December 31, 1990 4,500,000 45 13,455 (10,661) 2,839
Net Loss for year ended
December 31, 1991 (1,309) (1,309)
____________ ______ __________ ___________ _______
Balance at
December 31, 1991 4,500,000 45 13,455 (11,970) 1,530
Net Loss for year ended
December 31, 1992 (10) (10)
____________ ______ __________ ___________ _______
Balance at
December 31, 1992 4,500,000 45 13,455 (11,980) 1,520
Net Loss for year ended
December 31, 1993 (9) (9)
____________ ______ __________ ____________ ______
6
<PAGE>
Balance at
December 31, 1993 4,500,000 45 13,455 (11,989) 1,511
Net Loss for year ended
December 31, 1994 (859) (859)
____________ ______ __________ ___________ _______
Balance at
December 31, 1994 4,500,000 45 13,455 (12,848) 652
Net Loss for year ended
December 31, 1995 (192) (192)
____________ ______ __________ ___________ _______
Balance at
December 31, 1995 4,500,000 45 13,455 (13,040) 460
Net Loss for year ended
December 31, 1996 (4,988) (4,988)
____________ ______ __________ ___________ _______
Balance at
December 31, 1996 4,500,000 $ 45 $ 13,455 $ (18,028) $(4,528)
Net Loss for six
months ended
June 30, 1997 0 0
____________ ______ __________ ___________ _______
Balance at
June 30, 1997 4,500,000 $ 45 $ 13,455 $ (18,028) $(4,528)
</TABLE>
7
<PAGE>
GENESIS COMPANIES GROUP, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1997
(Unaudited)
NOTE 1 - Organization
Organization - The Company was organized as a Delaware Corporation on
December 22, 1988.
Basis of Presentation - The Company is in the development stage and
is primarily engaged in raising capital. On or about March 29, 1990, the
Company filed a registration statement on Form S-18 with the Securities and
Exchange Commission, wherein the Company attempted to register 20,000 Units,
each Unit consisting of 100 shares of the Company's Common Stock and 100 Class
A, Class B and Class C Common Stock Purchase Warrants. This registration
statement was subsequently voluntarily abandoned by the Company prior to
effectiveness. Other than filing of the aforesaid registration statement, the
only activities undertaken by the Company since its inception has been the
issuing of 4,500,000 shares of the Company's Common Stock to its original
shareholders, which stock was issued in exchange for aggregate cash
consideration of $13,500. Each shareholder of the Company has executed and
delivered a "lock-up" letter agreement, affirming that they shall not sell their
respective shares of the Company's Common Stock until such time as the Company
has successfully consummated a merger or acquisition has been consummated, and
each shareholder has agreed to place their respective stock certificate with the
Company's legal counsel who will not release these respective certificates until
such time as legal counsel has confirmed that a merger or acquisition has been
successfully consummated.
NOTE 2 - Summary of Significant Accounting Policies:
Revenue is recognized when earned and expenses are recognized when
they occur.
Loss Per Share - Net loss per common share is based upon the weighted
average common share outstanding during each period.
NOTE 3 - Income Taxes:
The Company has made no provision for income taxes because there have
been no operations to date causing income for financial statement or tax
purposes. The Company had net operating loss carryforwards of approximately
$18,000 for financial statement and tax purposes, which begin to expire in 2003.
8
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 12 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.
GENESIS COMPANIES GROUP, INC.
(Registrant)
Dated: August 14, 1997
By: s/Wm. Ernest Simmons
Wm. Ernest Simmons
President
9
<PAGE>
GENESIS COMPANIES GROUP, INC.
Exhibit Index to Quarterly Report on Form 10-QSB
For the Quarter Ended June 30, 1997
EXHIBITS Page No.
EX-27 Financial Data Schedule . . . . . . . . . . . . . . . . . . . .11
10
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED FINANCIAL STATEMENTS FOR THE QUARTER ENDED JUNE 30, 1997, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 4,528
<BONDS> 0
0
0
<COMMON> 45
<OTHER-SE> (4,573)
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
