SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended June 30, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to ____________.
Commission File Number 0-18565
SEMPER RESOURCES CORPORATION
----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Nevada 93-0947570
- ------------------------------- -----------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization
11150 West Olympic Blvd., #810, Los Angeles, CA 90064
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(Address of principal executive offices)
(949) 857-1166
-------------------------
(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 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 to such filing requirements for the past 90 days. Yes No X
---- ----
As of April 15, 2000, there were 25,497,965 shares of the issuer's Common
Stock, $.001 par value, outstanding.
<PAGE>
SEMPER RESOURCES CORPORATION
INDEX
Page
Number
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets as of June 30, 1998 and
December 31, 1997............................................. 3
Statements of Operations for the Three Months and
Six Months Ended June 30, 1998 and 1997....................... 4
Statements of Cash Flows for the Six Months Ended June
30, 1998 and 1997............................................. 5
Notes to Financial Statements................................. 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations...................................... 7
PART II - OTHER INFORMATION.............................................. 8
SIGNATURES............................................................... 9
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. - FINANCIAL STATEMENTS
SEMPER RESOURCES CORPORATION
BALANCE SHEETS
<TABLE>
June 30, 1998 December 31, 1997
------------------ -------------------
<S> <C> <C>
ASSETS
Current Assets:
Cash $ 1,392 $ 1,380
Advances 11,117
Total current assets: 12,509 $ 1,380
Property & Equipment, net 0 0
Other assets:
Joint venture timber concessions 7,098,948 7,098,948
Goodwill, net 89,491 86,405
Other 1,350 1,350
----------------- --------------------
Total other assets $ 7,189,789 $ 7,185,353
----------------- --------------------
Total assets $ 7,202,298 $ 7,186,733
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable $ 99,554 $ 102,657
Accrued expenses 126,822 133,105
Advances from related parties 14,290 14,323
Notes payable 50,000 50,000
Notes payable to related parties 50,000 50,000
----------------- --------------------
Total current liabilities $ 340,666 $ 350,085
Stockholders' equity
Series A 12% convertible preferred stock,
$.001 par value, 15,000 shares authorized,
130 shares issued and outstanding, stated at
liquidation value
Common stock, $.001 par value, 100,000,000
shares $ 130,000 $ 70,000
authorized, 25,407,965 issued and outstanding
Additional paid in capital
Accumulated deficit 25,408 25,498
Deficit accumulated during the development stage 10,497,425 10,557,385
(2,471,991) (2,471,991)
(1,189,339) 1,344,244)
----------------- --------------------
Total stockholders' equity $ 6,861,633 $ 6,836,244
Total liabilities and stockholders' equity $ 7,202,298 $ 7,186,733
================= ====================
</TABLE>
See accompanying notes to financial statements
3
<PAGE>
SEMPER RESOURCES CORPORATION
STATEMENT OF OPERATIONS
<TABLE>
Three Months Ended June 30, Six Months Ended
June 30,
-------------------------------- -----------------------------------
1998 1997 1998 1997
-------------- -------------- --------------- ---------------
<S> <C> <C> <C> <C>
Revenues
Sales 0 0 0 0
-------------- -------------- --------------- ---------------
Expenses:
Selling, general and administrative
Amortization and Depreciation $ 1,659 $ 32,225 $ 6,539 $ 138,057
2,459 1,851 4,321 3,704
-------------- -------------- --------------- ---------------
Total expenses $ 4,128 $ 34,077 $ 10,860 $ 141,761
Other income (expenses)
Interest expenses (5,334) (1,652) (8,729) (5,187)
Loss on discontinued operations
0 0 (86,645) 0
-------------- -------------- --------------- ---------------
Net loss $ (9,462) $ (35,729) $ (106,234) $ (146,948)
============== ============== =============== ===============
Loss per share $ .001 $ .001 $ .004 $ .006
============== ============== =============== ===============
Weighted average shares outstanding
25,497,965 25,257,965 25,497,965 24,412,974
============== ============== =============== ===============
</TABLE>
See accompanying notes to financial statements
4
<PAGE>
SEMPER RESOURCES CORPORATION
STATEMENTS OF CASH FLOWS
<TABLE>
Six Months Ended June 30,
1998 1997
----------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(106,234) $(74,825)
Adjustments to reconcile net loss to net cash
used by operating activities:
Amortization 4,321 3,704
Changes in assets and liabilities:
Accounts payable and other accrued liabilities 14,181 56,418
Other assets (increase) 75,528 0
-------------- --------------
Net cash (used in) operating activities $ (12,204) $(14,703)
-------------- --------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sales of common stock 0 0
Proceeds from sales of preferred stock 0 0
Advances/Loan proceeds from related parties 10,000 65
-------------- --------------
Net cash provided (used) in financing 10,000 65
-------------- --------------
Net increase (decrease) in cash $ (2,204) $(14,638)
Cash and cash equivalents, at beginning of period 3,596 16,637
-------------- --------------
Cash and cash equivalents, at end of period $ 1,392 $ 1,408
============== ==============
</TABLE>
See accompanying notes to financial statements
5
<PAGE>
SEMPER RESOURCES CORPORATION
NOTES TO FINANCIAL STATEMENTS
1. INTERIM FINANCIAL PRESENTATION
The financial statements have been prepared by the Company without audit
and are subject to year-end adjustment. Certain information and footnote
disclosure normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted pursuant
to the rules and regulations of the Securities and Exchange Commission. These
interim statements should be read in conjunction with the audited financial
statements filed by the Company on Form 10-K with the Securities and Exchange
Commission. The financial statements reflect all adjustments (which include only
normal recurring adjustments) which, in the opinion of management, are necessary
to present fairly the Company's financial position, results of operations and
cash flows.
Results of operations for the three months and six months ended June 30,
1998 and 1997, are not necessarily indicative of results to be achieved for the
full fiscal year.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Three Months Ended June 30
There were no revenues for either the three months ended June 30, 1998 or
June 30, 1997 as the sole business activity of the Company was its search for a
business to acquire and the acquisition of certain timber concessions and the
planning for their development.
Operating expenses decreased by $26,267 or 73.5% to $9,462 from $35,729 for
the three months ended June 30, 1998. This decrease is the result of a reduction
in general and administrative costs of $30,566 which was partially offset by an
increase in amortization of $618 and interest expense of $3,682.
Six Months Ended June 30
There were no revenues for either the six months ended June 30, 1998 or
June 30, 1997 as the sole business activity of the Company was its search for a
business to acquire and the acquisition of certain timber concessions and the
planning for their development.
Operating expenses decreased by $40,734 or 27.7% to $106,234 from $146,948
for the six months ended June 30, 1997. This decrease is the result of a
reduction in general and administrative costs of $131,518 which was partially
offset by an increase in amortization of $617, in interest expense of $3,542 and
a write off for discontinued operations of $86,645.
CHANGES IN FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
For the past twelve months, the Company has funded its operating losses and
capital requirements through the sale of stock and loans from its shareholders.
As of June 30, 1998, the Company had a cash balance of $1,392 and a working
capital deficit of $328,157. This compares with cash of $1,408 and a working
capital deficit of $215,462 for the corresponding period of the prior year.
Net cash used in operating activities decreased to $12,204 from $14,702 for
the six months ended June 30, 1998 and 1997, respectively. The decrease in cash
used in operations resulted from an increases net operating loss that was
partially offset by charges in current accounts.
Net cash provided by financing activities increased to $10,000 from $65 for
the six months ended June 30, 1998 and 1997, respectively. This increase is
attributable to an increase in advances from a shareholder.
At June 30, 1999, the Company had a demand loan payable to a shareholder of
$50,000; a demand loan payable to a third party of $50,000 and advances form
shareholders of $14,290.
The Company has experienced significant operating losses throughout its
history, and the acquisition of Resources of the Pacific, Inc. will acquire
substantial funds for the development of its business. Therefore, the Company's
ability to survive is dependent on its ability to raise capital through the
issuance of stock or borrowing of additional funds. Without the success of one
of these options, the Company will not have sufficient cash to satisfy its
working capital and investment requirements for the next twelve months.
7
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
1. 27.1 Financial Data Schedule
b. Reports on Form 8-K
None
8
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereto
duly authorized.
SEMPER RESOURCES CORPORATION
/s/ Robert A. Dietrich
----------------------------------------
Robert A. Dietrich, President and
Chief Executive Officer
April 18, 2000
/s/ John H. Brebbia
----------------------------------------
John H. Brebbia, Chief Financial Officer
April 18, 2000
9
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-mos
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 1,392
<SECURITIES> 0
<RECEIVABLES> 11,117
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 12,509
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 7,202,298
<CURRENT-LIABILITIES> 340,666
<BONDS> 0
0
130,000
<COMMON> 25,408
<OTHER-SE> 6,706,225
<TOTAL-LIABILITY-AND-EQUITY> 7,202,298
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,128
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,334
<INCOME-PRETAX> (9,462)
<INCOME-TAX> 0
<INCOME-CONTINUING> (9,462)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,462)
<EPS-BASIC> (.001)
<EPS-DILUTED> (.001)
</TABLE>
