FORM 1O-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D~C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended: March 31, 1998
Commission File Number: 0-19505
NATIONAL ADVERTLSING GROUP, INC.
(exact name of registrant as specified in its charter)
FLORIDA 65-274107
(State or other jurisdiction of (IRS Employer I.D. No.)
Incorporation of organization)
P.O. BOX 403624. MIAMI BEACH, FLORIDA 33140
(Address of principal executive offices)
(305) 535-9700
(Registrant's telephone number, including area code)
__________________________________________________________________________
(former name, address and FORMER fiscal year, if changed from last report)
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 and Exchange Act
of 1934 during the preceding 12 months (or for such short 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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.
As of March 31, 1998 there were 10,000,000 shares of Common Stock outstanding
<PAGE>
PART I - FINANCIAL INFORMATLON
ITEM 1. FINANCIAL STATEMENTS.
See financial statements for the three month period ended March 31,
1998, (unaudited), attached as an exhibit.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
The Registrant has not, as of the end of the three month period ended
March 31, 1998, commenced active business operations. As of March 31,
1998 the Registrant had total assets of $0 which consists of Total
Stockholders' Equity.
The Registrant has no reasonable basis for comparison with respect to
its quarterly financial results in that the Company has not yet
commenced its business operations.
PART II - OTHER INFORMATION
ITEM 1-5. NOT APPLICABLE
ITEM 6. EXHIBITS.
Financial Statements (unaudited) of National Advertising Group, Inc.
for the three month period ended March 31, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Registrant:
NATIONAL ADVERTlSING GROUP, INC.
By: /s/ JAMES CHOW
------------------------------
JAMES CHOW
President
Date: July 27, 1998
<PAGE>
NATIONAL ADVERTISING GROUP, INC
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
March 31, 1998 (UNAUDITED) AND DECEMBER 31, 1997 (AUDITED)
UNAUDITED AUDITED
03/31/98 12/31/97
--------- --------
ASSET
Cash $ -0- $ -0-
Other Asset:
Organizational Costs 70 70
Accumulated Amortization (70) (70)
Total Other Asset 0 0
Total Asset 0 0
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
(DEFICIENCY IN ASSETS)
Liabilities:
Accrued expenses $ 0 $ 2,000
Shareholders' Equity:
Common Stock, par value $0.001 per share;
10,000,000 shares authorized,
issued and outstanding-10,000,000 $ 10,000 $ 10,000
Additional Paid-In Capital 22,590 20,590
Preferred Stock, par value $.10 per
share; 1,000,000 shares authorized,
no shares issued and outstanding -0- -0-
Deficit accumulated during the
development stage (32,590) (32,590)
Total Shareholders' Equity (Deficiency in Assets) (0) (2,000)
-------- --------
Total Liabilities and Shareholders' Equity $ 0 $ 0
See Accompanying Notes to Financial Statements
F-1
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NATIONAL ADVERTISING GROUP, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
(UNAUDITED)
1998 1997
---- -------
Revenues $-0- $ -0-
Total Revenues $-0- $ -0-
Expenses:
Amortization $ 0 $ 4
Professional fees 1,000
Total Expenses $ 0 $ 1,004
Net Loss $(0) $(1,004)
--- -------
See Accompanying Notes to Financial Statements
F-2
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NATIONAL ADVERTISING GROUP, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997(UNAUDITED)
1998 1997
------- -------
Shareholders' Equity:
Beginning of year $(2,000) $ 0
Additions $ 0
Shareholder contributions $ 2,000 $ 1,004
Deductions
Net loss for the three months
ended March 31-
deficit accumulated during
development stage $ (0) $(1,004)
Ending balance as of December 31 $ 0 $ 0
------- -------
See Accompanying Notes to Financial Statements
F-3
<PAGE>
NATIONAL ADVERTISING GROUP, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOW
THREE MONTHS ENDED MARCH 31, 1998 AND 1997
1998 1997
------- -------
CASH FLOW FROM OPERATING ACTIVITIES
Net loss $ (0) $(1,004)
Adjustment to reconcile net loss to
Net cash used by operating activities:
Amortization $ 0 $ 4
Reduction in accrued expenses $(2,000) $ 0
Net cash used by operating activities $(2,000) $(1,000)
CASH FLOW FROM INVESTING ACTIVITIES $ 0 $ 0
Shareholders' contribution to paid in capital $ 2,000 $ 1,000
CASH FLOW FROM FINANCING ACTIVITIES $ 0 $ 0
NET INCREASE (DECREASE) IN CASH $ 0 $ 0
Cash - Beginning of Period $ 0 $ 0
Cash - End of Period $ 0 $ 0
See Accompanying Notes to Financial Statements
F-4
<PAGE>
NATIONAL ADVERTISING GROUP, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUSINESS ACTIVITY
National Advertising Group, Inc. (the Company) was organized under the laws of
the State of Florida on July 25, 1991. The Company is a development stage entity
which has not yet commenced business operations. The Company intends to acquire
an operating entity, however, it has not yet targeted an acquisition.
ORGANIZATIONAL COSTS
Organizational costs consist of expenditures incurred in the formation of the
company. These costs were amortized ratably over a period of sixty months.
NOTE 2 - In the opinion of management the accompanying unaudited financial
statements contain all adjustments necessary to present fairly National
Advertising Group, Inc.'s financial position as of March 31, 1998 and the
results of its operations, changes in the shareholders' equity and cash flows
for the three months then ended.
NOTE 3- As shown in the accompanying financial statements, the Company has an
accumulated deficit of $ 32,590 as of March 31, 1998. As a result, the Company
has a deficiency in assets. The management of the Company intends to actively
pursue a business combination through a merger, or an acquisition. The financial
statements do not include any adjustments that might be necessary should the
Company be unable to continue as a going concern.
F-5
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ----------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
NAGI FINANCIAL DATA SCHEDULE 3-98 QTR
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 10,000
<OTHER-SE> (10,000)
<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> .00
<EPS-DILUTED> .00
</TABLE>
