U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
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 33-37534-NY
WESTECH CAPITAL CORP.
(Exact name of small business issuer as specified in its charter)
New York 13-3577716
State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
180 West End Avenue, Apt. 23F, New York, New York 10023
(Address of principal executive offices) (Zip Code)
(212) 873-1050
(Issuer's telephone number, including area code)
N/A
(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 _X_ No ___
The aggregate number of shares outstanding of the Issuer's Common Stock, its
sole class of common equity, was 102,500 as of November 5, 1997.
Transitional Small Business Issuer Disclosure Format: Yes ___ No _X_
Page 1 of 10; Exhibit Index is on Page 8
<PAGE>
WESTECH CAPITAL CORP.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
<TABLE>
<CAPTION>
September 30 June 30,
1997 1997
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 1,700 $ 164
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accrued expenses $ 1,705 $ 8,324
-------- --------
TOTAL LIABILITIES 1,705 8,324
-------- --------
STOCKHOLDERS' EQUITY
Common stock, $.001 par value
50,000,000 shares authorized 102,500
and 62,500 shares issued and outstanding 103 63
Capital in excess of par value 46,979 37,019
Deficit accumulated during development stage (47,087) (45,242)
-------- --------
TOTAL STOCKHOLDERS' EQUITY (5) (8,160)
-------- --------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,700 $ 164
======== ========
</TABLE>
2
<PAGE>
WESTECH CAPITAL CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
(UNAUDITED)
For The Three From Inception
Months Ended July 18, 1990
September 30, To
1997 1996 September 30, 1997
REVENUE NONE NONE NONE
EXPENSES
Office $ 0 $ 0 $ 2,415
Professional 1,015 515 31,142
Filing and transfer fees 150 150 7,496
Miscellaneous 0 9 199
-------- -------- --------
TOTAL 1,165 674 41,252
-------- -------- --------
LOSS BEFORE INCOME TAXES (1,165) (674) (41,252)
INCOME TAXES 680 687 5,835
-------- -------- --------
NET LOSS $( 1,845) $ (1,361) $(47,087)
======== ======== ========
LOSS PER SHARE:
Net loss per share $ (.02) $ (.02) $ (.92)
======== ======== ========
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING 99,022 62,500 51,011
======== ======== ========
3
<PAGE>
WESTECH CAPITAL CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
For The Three From Inception
Months Ended July 18, 1990
September 30, To
1997 1996 September 30, 1997
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (1,845) $ (1,361) $(47,087)
Increase (decrease) in accrued expenses (6,619) (1,042) 1,705
-------- -------- --------
NET CASH USED BY OPERATING ACTIVITIES (8,464) (2,403) (45,382)
-------- -------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock 40 0 103
Paid in capital 9,960 0 62,397
Offering costs 0 0 (15,418)
-------- -------- --------
NET CASH PROVIDED BY FINANCING ACTIVITIES 10,000 0 47,082
-------- -------- --------
NET INCREASE (DECREASE) IN CASH 1,536 (2,403) 1,700
BEGINNING CASH BALANCE 164 7,060 0
-------- -------- --------
ENDING CASH BALANCE $ 1,700 $ 4,657 $ 1,700
======== ======== ========
</TABLE>
4
<PAGE>
WESTECH CAPITAL CORP.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Deficit
Accumulated
Capital in During Total
Common Stock Excess of Development Stockholders'
Shares Amount Par Value Stage Equity
<S> <C> <C> <C> <C> <C>
Balance, July 18, 1990 (inception) 0 $ 0 $ 0 $ 0 $ 0
Issuance of shares to Officer and Directors of the
Company for cash July 23, 1990 12,500 13 2,487 0 2,500
Net loss from inception to June 30, 1991 0 0 0 (962) (962)
Proceeds of initial public offering 50,000 50 49,950 0 50,000
Offering costs 0 0 (14,627) 0 (14,627)
Net loss for the year ended June 30, 1992 0 0 0 (5,123) (5,123)
Offering costs 0 0 (791) 0 (791)
Net loss for the year ended June 30, 1993 0 0 0 (5,428) (5,428)
Net loss for the year ended June 30, 1994 0 0 0 (5,929) (5,929)
Net loss for the year ended June 30, 1995 0 0 0 (7,108) (7,108)
Net loss for the year ended June 30, 1996 (7,743) (7,743)
-------- -------- -------- -------- --------
Balance, June 30, 1996 62,500 63 37,019 (32,293) 4,789
Net loss for the year ended June 30, 1997 0 0 0 (12,949) (12,949)
-------- -------- -------- -------- --------
Balance, June 30, 1997 62,500 63 37,019 (45,242) (8,160)
Issuance of shares, private placement, July 9, 1997 40,000 40 9,960 0 10,000
Net loss for the three months ended September 30, 1997 0 0 0 (1,845) (1,845)
-------- -------- -------- -------- --------
Balance, September 30, 1997 (unaudited) 102,500 $ 103 $ 46,979 $(47,087) $ (5)
======== ======== ======== ======== ========
</TABLE>
5
<PAGE>
WESTECH CAPITAL CORP.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
(UNAUDITED)
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION BUSINESS ACTIVITY AND DIVIDEND POLICY
The Company was incorporated under the laws of the State of New York on July 18,
1990. The Company is in the development stage and has not commenced planned
principal operations. The Company is seeking the acquisition of, or merger with
an existing Company. The fiscal year of the corporation is June 30. The Company
has, at the present time, not paid any dividends and any dividends that may be
paid in the future will depend upon the financial requirements of the Company
and other relevant factors.
Estimates
The preparation of financial statements in conformity with Generally Accepted
Accounting Principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates and assumptions.
General and related party
The Company entered into an oral arrangement with Mr. Neil Ragin, President of
the Company, providing for the use of a portion of his business office as a
temporary office until such time as the Company needs additional facilities. The
Company does not pay rent for the use of such facilities.
SUPPLEMENTAL CASH FLOWS INFORMATION
The following were paid during the period ended September 30, 1997:
Income taxes $688
INCOME TAXES
As of September 30, 1997, the Company had a $42,742 net operating loss
carryforward available to offset future taxable income through 2006.
NOTE 2: CAPITAL STOCK
The Company, in order to satisfy cash requirements, consummated the sale of
40,000 shares of Common Stock, $.001 par value, on July 9, 1997 for total
proceeds of $10,000.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
(a) Plan of Operation
The Registrant was formed July 18, 1990 for the purpose of investing in any
and all types of assets, properties and businesses. In connection with the
initial capitalization of the Registrant a total of 12,500 shares of its common
stock were issued to its officers and directors for the aggregate sum of $2,500.
On November 12, 1991, the United States Securities and Exchange Commission
granted effectiveness to a Registration Statement on Form S-18 for an offering
of 50,000 Units of Common Stock and Warrants to purchase shares of Common Stock
at a price of $1.00 per Unit. The offering was closed in May 1992, and the
Warrants included in the Units have expired.
The Registrant is implementing its plan of operation by seeking to locate a
suitable company which desires to go public through a "reverse acquisition" with
the Registrant. Although no assurance can be given, Registrant believes its cash
on hand will satisfy its cash requirements until it effects such an acquisition,
although it may raise additional funds in the next 12 months to make itself more
attractive as an acquisition vehicle, which capital would be used for the
benefit of any company acquired by the Registrant.
(b) Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations.
Since inception the Registrant has not any business operations, and its
activities have been limited to the sale of its securities and the search for a
company to acquire through a "reverse acquisition." The Registrant will not have
any business operations until, if ever, such time as it effects an acquisition.
Accordingly, no revenue has been generated by the Registrant since its
inception.
For the years ended June 30, 1997 and 1996, the Registrant had a net loss
of ($12,949) and ($7,743), respectively, or ($.21) and ($.12) per share. From
inception to September 30, 1997, the Registrant had a net loss of ($47,087), or
($.92) per share. For the three months ended September 30, 1997, the Registrant
had a net loss of ($1,845), or ($.02) per share, compared to a net loss of
($1,361), or ($.02) per share, for the same period in the prior year. Such net
losses are attributable primarily to professional and filing fees associated
with the Registrant's status as a public company.
7
<PAGE>
Liquidity and Capital Resources.
As of June 30, 1997, the Registrant had assets of $164 (all in cash), total
liabilities of $8,324 and total shareholders equity of ($8,160). As of September
30, 1997 the Registrant had cash of $1,700 and no other assets, total
liabilities of $1,705 and total shareholders equity of ($5). The increase in
cash and shareholders equity resulted primarily from the Company's sale of
40,000 shares of Common Stock in July 1997, which generated gross proceeds of
$10,000.
Although no assurance can be given, Registrant believes its cash on hand
will satisfy its cash requirements until it effects an acquisition, although it
may raise additional funds in the next 12 months to make itself more attractive
as an acquisition vehicle, which capital would be used for the benefit of any
company acquired by the Registrant.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The following exhibit is filed with this report: Page
----
27 Financial Data Schedule. 10
8
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated: November 10, 1997 WESTECH CAPITAL CORP.
By: Neil Ragin
--------------------------------
Neil Ragin, President and
Principal Financial Officer
9
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Westech
Capital Corp. financial statements for the three months ended September 30, 1997
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 1,700
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,700
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,700
<CURRENT-LIABILITIES> 1,705
<BONDS> 0
0
0
<COMMON> 103
<OTHER-SE> (108)
<TOTAL-LIABILITY-AND-EQUITY> 1,700
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,165
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,165)
<INCOME-TAX> 680
<INCOME-CONTINUING> (1,845)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,845)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> (.02)
</TABLE>
