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, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from to
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Commission file number 0-21025
AURORA ACQUISITIONS, INC
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(Exact name of small business issuer as specified in its charter)
Colorado 84-1189368
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1050 17th Street, Suite 1700, Denver, Colorado 80265
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(Address of principal executive offices)
(303) 292-3883
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(Issuer's telephone number)
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(Former name, former address and former fiscal year,
if changed since last report)
Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the 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___ No_X_
As of September 30, 1999, 3,060,000 shares of common stock were outstanding.
Transitional Small Business Disclosure Format: Yes_____ No X
<PAGE>
PART I--FINANCIAL INFORMATION
Item 1. Financial Statements.
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For financial information, please see the financial statements and the
notes thereto, attached hereto and incorporated herein by this reference.
The financial statements have been prepared by Aurora Acquisitions, Inc.
without audit pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted as allowed by such rules
and regulations, and management believes that the disclosures are adequate to
make the information presented not misleading. These financial statements
include all of the adjustments which, in the opinion of management, are
necessary to a fair presentation of financial position and results of
operations. All such adjustments are of a normal and recurring nature. These
financial statements should be read in conjunction with the audited financial
statements at December 31, 1998, included in the Company's Form 10-SB.
Item 2. Management's Discussion and Analysis or Plan of Operation.
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(a) Plan of Operation. Aurora Acquisitions, Inc. (the "Company") was
organized under the laws of the State of Colorado to engage in any
lawful business. The Company was formed for the purpose of creating a
vehicle to obtain capital to take advantage of business opportunities
that may have potential for profit. Management of the Company has
unlimited discretion in determining the business activities in which
the Company will become engaged. Such companies are commonly referred
to as "blind pool/blank check" companies. There is and can be no
assurance that the Company will be able to acquire an interest in any
such opportunities that may exist or that any activity of the Company,
even after any such acquisition, will be profitable.
The Company has generated no revenues from its operations and has been a
development stage company since inception. Since the Company has not generated
revenues and has never been in a profitable position, it operates with minimal
overhead.
During the period of this report, the Company engaged in only minimal
efforts to identify any possible acquisitions and has not entered into a letter
of intent concerning any business opportunity.
(b) Liquidity and Capital Resources. At September 30, 1999, the Company
had no material cash or other assets with which to conduct operations.
There can be no assurance that the Company will be able to complete
its business plan and to exploit fully any business opportunity that
management may be able to locate on behalf of the Company. Due to the
lack of a specified business opportunity, the Company is unable to
predict the period for which it can conduct operations. Accordingly,
the Company will need to seek additional financing through loans, the
sale and issuance of additional debt and/or equity securities, or
other financing arrangements. Management of the Company and its
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<PAGE>
counsel have advised that they will pay certain costs and expenses of
the Company from their personal funds as interest free loans in order
to facilitate development of the Company's business plan. Management
believes that the Company has inadequate working capital to pursue any
operations at this time; however, loans to the Company from management
and its counsel may facilitate development of the business plan. For
the foreseeable future, the Company through its management and counsel
intend to pursue acquisitions as a means to develop the Company. The
Company does not intend to pay dividends in the foreseeable future. As
of the end of the reporting period, the Company had no material cash
or cash equivalents. There was no significant change in working
capital during this quarter.
(c) Year 2000 issues "Year 2000 problems" result primarily from the
inability of some computer software to properly store, recall or use
data after December 31, 1999. The Company has only minimal activities
and accordingly, does not rely on information technology ("IT")
systems. Accordingly the Company does not believe that it will be
materially affected by Year 2000 problems. The Company relies on
non-IT systems that may suffer from Year 2000 problems including
telephone systems, facsimile and other office machines. Moreover, the
Company relies on third parties that may suffer from Year 2000
problems that could affect the Company's operations including banks
and utilities. In light of the Company's minimal operations, the
Company does not believe that such non-IT systems or third-party Year
2000 problems will affect the Company in a manner that is different or
more substantial than such problems affect other similarly situated
companies. Consequently, the Company does not currently intend to
conduct a readiness assessment of Year 2000 problems or develop a
detained contingency plan with respect to Year 2000 problems that may
affect the Company or third parties.
The foregoing is a "Year 2000 Readiness Disclosure" within the meaning
of the Year 2000 Information and Readiness Disclosure Act of 1998.
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<PAGE>
<TABLE>
<CAPTION>
Financial Statements
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AURORA ACQUISITIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
September 30, 1999
BALANCE SHEET
(Unaudited)
Assets
<S> <C> <C>
Current assets:
Cash $ 114
---------
Total current assets $ 114
$ 114
=======
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable, trade $ 4,905
Accrued expenses 22,970
Due to shareholders 1,536
---------
Total current liabilities $29,411
Stockholder's equity:
Preferred stock; 100,000 shares authorized; $1.00 par
value; none issued or outstanding
Common stock, 10,000,000 shares authorized, $0.01 par
value; 3,060,000 shares issued and outstanding 30,600
Additional paid-in capital 18,550
Deficit accumulated during development stage (78,447)
--------
Total shareholders' deficit (29,297)
--------
$ 114
========
See accompanying notes to these financial statements
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<PAGE>
AURORA ACQUISITIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(UNAUDITED
Inception
Three Months Ended Nine Months Ended (February 10, 1992)
September 30, September 30, Through
1999 1998 1999 1998 September 30, 1999
---- ---- ---- ---- ------------------
Costs and expenses:
General and administrative $1,096 $1,950 $12,771 5,363 $39,004
General and administrative, related party 35,248
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(1,096) (1,950) (12,771) (5,363) (74,252)
Other income and (expense)
Interest expense (1,846)
Failed stock offering costs (13,139)
(1,096) (1,950) (12,771) (5,363) (89,237)
Provision for income taxes 3,670
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Net loss before extraordinary item (1,096) (1,950) (12,771) (5,363) (85,567)
Extraordinary item
Gain from extinguishing debt net of
income taxes of $ 3,670 7,120
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Net income (loss) ($1,096) ($1,950) ($12,771) ($5,363) ($78,447)
======== ======== ========= ======== =========
Net (Loss) per share ($0.00) ($0.00) ($0.00) ($0.00) ($0.06)
======= ======= ======= ======= =======
Weighted average shares outstanding 3,060,000 3,060,000 3,060,000 3,060,000 1,257,802
========== ========== ========== ========== =========
See accompanying notes to these financial statements
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<PAGE>
AURORA ACQUISITIONS INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(Unaudited)
Inception
Six Months Ending (February 10, 1992)
September 30, Through
1999 1998 September 30, 1999
---- ---- ------------------
Cash flows from operating activities:
Net income (loss) ($12,771) ($ 5,363) ($78,447)
Adjustments to reconcile net income to
net cash provided by operating activities
Services provided for stock subscriptions 20,000
Amortization 1,000
Changes in assets and liabilities:
Increase (decrease) in accounts payable
and accrued expenses 12,771 5,363 29,411
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Total adjustments 12,771 5,363 50,411
Net cash (used in) operating activities 0 0 (28,036)
Cash flows from investing activities:
Organization costs incurred (1,000)
--------
Net cash (used in) investing activities 0 0 (1,000)
Cash flows from financing activities:
Proceeds from sale of common stock 27,650
Capital contributions 1,500
--------
Net cash (used in) investing activities 0 0 29,150
Increase (decrease) in cash 0 0 114
Cash and cash equivalents, beginning of
the period 114 114 0
--------
Cash and cash equivalents, end of the period $ 114 $ 114 $ 114
======== ======== ========
See accompanying notes to these financial statements
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</TABLE>
<PAGE>
AURORA ACQUISITIONS INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
In the opinion of management, all adjustments, consisting of normal recurring
accruals, have been made that are necessary for a fair presentation of the
financial position of the Company at September 30, 1999 and the results of
operations for the three month period and six month periods ended September 30,
1999 and 1998 and the statement of cash flows for the six months ended September
30, 1999 and 1998 and the statements of operations and cash flows cumulative
since inception to September 30, 1999. Quarterly results are not necessarily
indicative of the expected annual results. For a more complete understanding of
the Company's operations and financial position, reference is made to the
financial statements of the Company and related notes thereto, filed with the
Company's annual report on Form 10-KSB for the year ended December 31, 1998,
previously filed with the U.S. Securities and Exchange Commission.
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<PAGE>
PART II--OTHER INFORMATION
Item 1. Legal Proceedings.
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There are no pending legal proceedings, and the Company is not aware of any
threatened legal proceedings, to which the Company is a party or to which its
property is subject.
Item 2. Changes in Securities.
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(a) There have been no material modifications in any of the instruments
defining the rights of the holders of any of the Company's registered
securities.
(b) None of the rights evidenced by any class of the Company's registered
securities have been materially limited or qualified by the issuance or
modification of any other class of the Company's securities.
Item 3. Defaults Upon Senior Securities.
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(Not applicable)
Item 4. Submission of Matters to a Vote of Security Holders.
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(Not applicable)
Item 5. Other Information.
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(Not applicable)
Item 6. Exhibits and Reports on Form 8-K.
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(a) Exhibits
No exhibits as set forth in Regulation SB, are considered necessary for
this filing.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the quarter for which this
report is filed.
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<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934,
as amended, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AURORA ACQUISITIONS, INC.
Date: November 10, 1999
/s/ David J. Gregarek
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David J. Gregarek, Secretary, Treasurer
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 114
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 114
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 114
<CURRENT-LIABILITIES> 29411
<BONDS> 0
<COMMON> 30,600
0
0
<OTHER-SE> (1303)
<TOTAL-LIABILITY-AND-EQUITY> 114
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 12771
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (12771)
<INCOME-TAX> 0
<INCOME-CONTINUING> (12771)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (12771)
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
