<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q-SB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the nine months ended Commission File Number
September 30, 1996 33-48017-A
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
(a Florida corporation)
(Exact name of Registrant as specified in its Charter)
Florida 59-2087068
- ------------------------------ ---------------------
State or other jurisdiction of I.R.S. Employer
incorporation or organization Identification Number
2323 Stickney Point Road, Sarasota, Florida 34231
--------------------------------------------------
(Address of principal executive offices, zip code)
Registrant's telephone number, including area code: (941) 921-9700
Securities registered pursuant to Section 12(b) of the Act:
Securities registered pursuant to Section 12(g) of the Act:
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 Exchange Act of
1934 during the preceding 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 .
--- ---
For the nine months ended September 30, 1996, the Registrant had revenues of
$2,191,490.
As of September 30, 1996, the Registrant had 5,000,000 Shares authorized and
2,497,725 Shares outstanding. The aggregate market value of the outstanding
shares held by non-affiliates, computed by reference to the price at which the
stock was sold is $1,294,992.
1
<PAGE> 2
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Set forth below are the unaudited financial statements reflecting the
Company's financial condition as of September 30, 1996, and the related
statements of operations and shareholders' equity for the nine and three months
ended September 30, 1996 and 1995.
[THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
2
<PAGE> 3
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
BALANCE SHEET
September 30, 1996 (Unaudited)
ASSETS
<TABLE>
<S> <C>
CURRENT ASSETS
Cash $ 38,995
Accounts receivable from
correspondent brokers 196,612
Accounts receivable from
affiliates and employees 9,061
--------
TOTAL CURRENT ASSETS 244,668
INVESTMENTS -
FURNITURE, FIXTURES AND EQUIPMENT at cost
net of accumulated depreciation 38,515
OTHER ASSETS
Deposits with clearing organizations 43,396
Other deposits 1,934
--------
TOTAL ASSETS $328,513
========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 30,641
Commissions Payable 184,463
--------
TOTAL CURRENT LIABILITIES 215,104
STOCKHOLDERS' EQUITY
Preferred Stock - authorized 750,000
shares of $.01 par value; no shares
issued or outstanding -
Common Stock - authorized 5,000,000
shares of $.002 par value; issued and
outstanding 2,497,725 shares 4,995
Additional paid-in capital 891,678
Additional paid-in capital, warrants 4,410
Retained earnings (787,674)
--------
TOTAL STOCKHOLDERS' EQUITY $113,409
--------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $328,513
========
</TABLE>
3
<PAGE> 4
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENTS OF OPERATION
For The Three and Nine Months Ended September 30 (Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
September 30 September 30
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUE
Commissions $2,115,483 $2,078,745 $682,534 $779,159
Underwriting fees 9,750 12,250 9,232 -
Other income 66,257 45,258 22,362 14,912
---------- ---------- -------- --------
TOTAL REVENUE 2,191,490 2,136,253 714,128 794,071
---------- ---------- -------- --------
EXPENSES
Accounting/Legal 17,193 17,574 2,787 5,269
Advertising 3,890 8,337 293 167
Board of Directors fees 12,000 12,000 4,000 4,000
Clearing charges 180,402 172,317 55,461 62,530
Commissions 1,658,994 1,602,802 535,583 602,737
Consulting fees 23,544 200 2,467 -
Dues and subscriptions 6,736 5,879 3,655 1,880
Depreciation 8,870 8,609 3,031 2,875
Insurance 9,503 8,825 2,112 5,532
Meetings and seminars 1,867 (1,186) 1,062 175
Miscellaneous 7,351 10,656 2,445 4,384
Occupancy costs 67,870 52,950 21,483 22,480
Office expenses 21,632 19,490 5,565 6,065
Professional development 505 102 255 -
Regulatory 10,393 12,110 2,292 4,330
Rental equipment 6,198 9,387 883 2,949
Salaries and wages 226,758 216,543 80,929 77,589
Taxes 25,340 20,052 6,762 6,161
Travel and lodging 38,458 15,963 12,748 4,436
Utilities 22,600 22,930 6,755 6,683
---------- ---------- -------- --------
TOTAL OPERATING EXPENSES 2,350,104 2,215,540 750,568 820,242
---------- ---------- -------- --------
OPERATING INCOME/(LOSS) (158,614) (79,287) (36,440) (26,171)
---------- ---------- -------- --------
NET INCOME/(LOSS) $ (158,614) $ (79,287) $(36,440) $(26,171)
========== ========== ======== ========
NET INCOME/(LOSS) PER SHARE $ (.064) $ (.035) $ (.015) $ (.011)
========== ========== ======== ========
</TABLE>
4
<PAGE> 5
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For The Nine Months Ended September 30 (Unaudited)
<TABLE>
<CAPTION>
Additional
Additional Paid-In Retained
Preferred Common Paid-In Capital Earnings
Stock Stock Capital Warrants (Deficit) Total
--------- ------ ---------- ---------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Balance at January 1, 1995 - $4,408 $598,210 $ - $(513,181) $ 89,437
Issuance of common stock 175 102,579 4,000 106,754
Syndication costs (10,684) (10,684)
Net loss for the nine
months ended
September 30, 1995 (79,287) (79,287)
--------- ------ -------- --------- --------- --------
Balance at
September 30, 1995 $ - $4,583 $687,905 $ 4,000 $(594,268) $106,220
========= ====== ======== ========= ========= ========
<CAPTION>
Additional Retained
Preferred Common Paid-In Earnings Stock
Stock Stock Capital (Deficit) Warrants Total
--------- ------ ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Balance at
January 1, 1996 $ - $4,629 $706,853 $(629,060) $ 4,410 $ 86,832
Issuance of Common Stock 322 200,628 200,950
Exercise of Options 44 44
Syndication Costs (15,803) (15,803)
Net loss for nine
months ended
September 30, 1996 - - - (158,614) - (158,614)
--------- ------ -------- --------- --------- ---------
Balance at
September 30, 1996 $ - $4,995 $891,676 $(787,674) $ 4,410 $ 113,409
========= ====== ======== ========= ========= =========
</TABLE>
5
<PAGE> 6
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENT OF CASH FLOWS
For The Nine Months Ended September 30 (Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $(158,614) $(79,287)
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation 8,870 8,609
(Increase) decrease in operating assets:
Receivable from correspondent brokers 16,278 (120,527)
Receivable - other (39,633) (5,010)
Deposits (972) (500)
Other assets - (4,148)
Increase (decrease) in operating liabilities:
Accounts payable (27,519) 7,335
Commissions payable 39,920 93,073
--------- --------
Net cash provided by (used in)
operating activities (161,670) (100,455)
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment (5,035) -
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 201,100 106,754
Cash paid for syndication costs (15,803) (10,684)
--------- --------
Net cash provided by (used in)
financing activities 185,297 96,070
--------- --------
NET INCREASE (DECREASE) IN CASH 18,592 (4,385)
CASH AT BEGINNING OF PERIOD 20,403 4,566
--------- --------
CASH AT END OF PERIOD $ 38,995 $ 181
========= ========
</TABLE>
6
<PAGE> 7
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS
For The Nine Months Ended September 30, 1996 and 1995
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Executive Wealth Management Services, Inc., (the Company) is a securities
broker/dealer that transacts business through correspondent brokers and does
not handle any customer securities or funds. Customer security transactions
and related commission revenue and expenses are recorded on the trade date.
The Company also acts as a broker/dealer in selling both public and private
securities offerings on a best efforts basis. In addition, the Company
receives commissions and underwriting fees for its services.
Receivable from Correspondent Brokers
The receivable from correspondent brokers and broker/dealers represent
commissions earned which had not been received at September 30, 1996.
Management has determined that these amounts are fully collectible.
Furniture, Fixtures and Equipment
Furniture, fixtures and equipment are recorded at cost. Depreciation is
provided for in amounts sufficient to relate the cost of assets to operations
over their estimated useful lives using the straight-line method.
Investments
The Company was issued 55,263 shares of common stock of Flight Sciences, Inc.
This stock was issued to the Company in relation to a private offering of
Flight Sciences' promissory notes. These shares represent approximately 5% of
Flight Sciences, Inc.'s outstanding common stock. The Company has assigned no
value to the stock due to the fact that there is no ready market for it and its
value is not determinable.
Loss Per Share
Loss per share is computed based upon 2,497,725 and 2,291,500 shares outstanding
during the periods ended September 30, 1996 and 1995, respectively.
Note 2 - DEPOSIT WITH CLEARING ORGANIZATION
Deposits with clearing organizations represent investments in money markets.
The investments are required by the Company's clearing brokers and are in
accordance with the correspondent broker agreement between the parties.
Deposits are reflected at net fair market value.
7
<PAGE> 8
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Nine Months September 30, 1996 and 1995
Note 3 - FURNITURE, FIXTURES AND EQUIPMENT
A summary of furniture, fixtures and equipment follows:
<TABLE>
<CAPTION>
September 30, 1996
------------------
<S> <C>
Furniture and fixtures $37,951
Equipment 31,589
Leasehold improvements 6,622
-------
76,162
Less: Accumulated Depreciation (37,647)
-------
$38,515
-------
</TABLE>
Note 4 - Operating Leases
Rent expense for the nine months ended September 30, 1996 and 1995 was $67,870
and $52,950, respectively.
Note 5 - NET CAPITAL REQUIREMENT
Pursuant to the net capital provisions of Rule 15c3-1 of the Securities and
Exchange Act of 1934, the Company is required to maintain a minimum net capital
of $5,000. In December of 1991, the National Association of Securities
Dealers, Inc. approved the Company as a fully disclosed broker/dealer. The
Company has a restrictive agreement to maintain a net capital of 130% of the
minimum requirement or 6 2/3% of aggregate indebtedness for each of the nine
month periods ended September 30, 1996 and 1995.
The Company had net capital of $58,922 or 411% and $44,330 or 285% of the
minimum requirement at September 30, 1996 and 1995, respectively. The net
capital rules may effectively restrict the payment of dividends to the Company's
stockholders. The Company operates pursuant to the (K) (2) (ii) exemptive
provisions of the Securities and Exchange Commission's Rule 15c3-3 and does not
hold customers funds or securities.
Rule 15c3-1 also requires that the ratio of aggregate indebtedness to net
capital, both as defined, shall not exceed 15 to 1. The Company's ratio was
3.65 to 1 and 5.25 to 1 at September 30, 1996 and 1995, respectively.
8
<PAGE> 9
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Nine months Ended September 30, 1996 and 1995
NOTE 6 - INCOME TAXES
At December 31, 1995, the Company had a net operating loss carry forward of
approximately $471,000 that will begin to expire in the year 2009. Due to the
lack of historical operations, management has elected to record a valuation
allowance equal to the deferred tax asset of $174,270, calculated using an
effective income tax rate of 31% for the Company.
NOTE 7 - RELATED PARTY TRANSACTIONS
During the nine months ended September 30, 1996 and 1995, companies affiliated
with the Company's majority stockholder shared office space with the Company
and paid rent of $17,469 and $18,449, respectively, for the use of the space.
During the nine months ended September 30, 1996, the Company paid rent of
approximately $21,000 to the Company's majority stockholder for the use of
office space.
NOTE 8 - ACQUISITION
On February 15, 1995, the Company entered into a negotiation to purchase all of
the outstanding stock of an NASD/SIPC member broker/dealer for $25,000. The
broker/dealer may become a wholly owned subsidiary of the Company and might be
inactive until such time the Company's management deems it appropriate to
activate it in the expansion of the Company's business. As of September 30,
1996, no agreement has been consummated.
NOTE 9 - COMMON STOCK TRANSACTIONS
During 1995, the Company and its majority stockholder sold 44,100 shares of the
Company's common stock. The price of the stock was $5.90 per share and each
purchaser of a share received a warrant which gave the purchaser the right to
purchase one share of the Company's stock from the Company for $7.00 per share.
The price of the warrants were $.10 each and expire on December 1, 1999. The
proceeds of the warrants were retained by the Company.
During 1995, the Company and the majority stockholder initiated a private
placement of 80,000 shares of the Company's common stock at a price of $6.00
per share. The shares contained in the offering are to be drawn equally from
the authorized but unissued shares of the Company and the
9
<PAGE> 10
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Nine months Ended September 30, 1996 and 1995
NOTE 9 - COMMON STOCK TRANSACTIONS (CONTINUED)
majority stockholder. Accordingly, gross proceeds from the sale of the
stock will be shared equally by the Company and the majority stockholder. As
of September 30, 1996, approximately 32,200 shares of the Company's common
stock had been sold under this private placement. The proceeds from this
private placement will be utilized for additional expansion and working capital
by the Company.
In November, 1995, the Company approved a plan to grant options to certain
employees to purchase the Company's common stock. The plan provides for the
granting of options to purchase a maximum of 100,000 shares of the Company's
stock at a price to be determined at the time of grant. The price, however,
shall not be greater than $3.00 per share. The plan requires a participant to
be employed by the Company for a number of years before exercise. Granted
options expire 10 years from the grant date. At December 31, 1995, all of the
options had been granted.
During July, 1996, the majority stockholder exercised 9,828 options at $3.00
per share or $29,484 in aggregate to the Company.
In May, 1996, the Board of Directors passed a resolution to split the
outstanding common stock shares of Executive Wealth Management Services, Inc.
on a 5 for 1 basis effective September 20, 1996. Common stockholders of record
as of September 20, 1996, were entitled to the 5 for 1 forward common stock
split.
[THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
10
<PAGE> 11
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Nine months Ended September 30, 1996 and 1995
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operation.
Current Operations
The table set forth below reflects the source of revenue earned by the Company
during the nine months ended September 30, 1996 and 1995.
<TABLE>
<CAPTION>
1996 1995 Increase/(Decrease)
---- ---- ------------------
Source of Revenue Earned
<S> <C> <C> <C>
Commission:
Proprietary Products $ 25,616 $ 49,100 $ (23,484)
Transactional 1,120,507 1,316,186 (195,679)
Mutual Fund Sales 563,482 391,730 171,752
Insurance/Annuity 210,666 196,825 13,841
Sale of non-proprietary
limited partnerships 195,212 124,904 70,308
---------- ---------- --------
Total Commissions 2,115,483 2,078,745 36,738
Other:
Underwriting fees 9,750 12,250 (2,500)
Miscellaneous 66,257 45,258 20,999
---------- ---------- --------
Total $2,191,490 $2,136,253 $ 55,237
========== ========== =========
</TABLE>
The Company received commissions and underwriting fees of $35,366 and $61,350
from the sale of proprietary products or commissions which were "in house" in
character for the nine months ended September 30, 1996 and 1995, respectively.
This decrease of $25,984 relates to the fact that the Company only participated
in one offering other than the private placement of its own shares during the
nine months ended September 30, 1996. The Company anticipates a significant
increase in income from proprietary products and affiliate and third party
underwritings during the first quarter of fiscal 1997.
While overall revenue increased $55,237, or approximately 2.5% during the nine
months ended September 30, 1996, compared to the same period ended 1995, there
was a shift from transactional revenue to mutual fund and limited partnership
revenue.
Transactional revenues, decreased by $195,679 or 14.87% from $1,316,186 to
$1,120,507 for the nine months ended September 30, 1996, as compared to the
same period in 1995. This decrease is primarily attributable to general market
conditions and due to the Altamonte Springs, Florida branch office dividing
into three independent branch offices. While in the short-term, the split of
the Altamonte
11
<PAGE> 12
Springs office may have caused a slight decrease in production, it is
management's opinion that long-term effect on overall production will be
positive. All three offices are actively recruiting brokers and have plans of
expansion.
Mutual Fund revenue and limited partnership revenues increased $171,752, 43.84%
and $70,308, 56.29% during the nine months ended September 30, 1996 compared
to the same period ended 1995, respectively. These increases are due to an
increase in production of the Company's branch and satellite offices.
The table set fourth below reflects the expense categories of the Company in
which there were significant increase or decrease for the nine months ended
September 30, 1996, as compared to the same period in 1995:
<TABLE>
<CAPTION>
Increase/
Expense Category 1996 1995 (decrease)
---------------- ---- ---- --------
<S> <C> <C> <C>
Advertising 3,890 8,337 (4,447)
Commissions $1,658,994 $1,602,802 $ 56,192
Consulting fees 23,544 200 23,344
Meetings and Seminars 1,867 (1,361) 3,228
Occupancy 67,870 52,950 14,920
Rental equipment 6,198 9,387 (3,189)
Salary and wages 226,758 216,543 10,215
Taxes 25,340 20,052 5,288
Travel and Lodging 38,458 15,963 22,495
</TABLE>
Advertising expense decreased $4,447 or 53.34% from $8,337 to $3,890 for the
nine months ended September 30, 1995 compared to the same period ended 1996. The
decrease is due to the fact that the Company only participated in one offering
during the nine months ended September 30, 1996.
Commission expense increased $56,192 for the nine months ended September 30,
1996, as compared to the nine months ended September 30, 1995. As a percentage
of total revenue, commissions rose from 75% for the nine months ended September
30, 1995 to 75.7% for the same period ended 1996. This increase is due to the
reduced production of the home office for the nine months ended September 30,
1996 as compared to the same period in 1995.
Consulting fees increased $23,344 for the nine months ended September 30, 1996,
as compared to the same period ended 1995. This increase is primarily
attributable to the outsourcing of accounting and compliance functions effective
the last quarter of 1995. These functions were brought back in-house in August
1996.
Meetings and seminars increased $3,228 for the nine months ended September 30,
1996 compared to the same period ended 1995. This increase is primarily due to
the Company's annual compliance meeting which was held in September 1996.
Occupancy costs increased by $14,920 for the nine months ended September 30,
1996 as compared
12
<PAGE> 13
to the same period in 1995. This increase relates to the fact that the Company
is currently leasing office space in San Diego, CA, which it began leasing in
November 1995. This office space is being utilized in the Company's business
development plan for offering exclusive investment product marketing and
financial service agreements with large medical groups, alliances and state
associations, of which two of these organizations are located in California.
Rental equipment decreased $3,189 or 33.97% to $6,198 for the nine months ended
September 30, 1996, as compared to $9,387 for the same period ended 1995. This
decrease is attributable to the fact that the home office had one less quotron
machine during the nine months ended September 30, 1996 as compared to the same
period ended 1995.
Salaries and wages increased $10,215 for the nine month period ended September
30, 1996, as compared to the same period ended in 1995. This increase relates
to the Company employing a full time in-house general counsel. Such decision
was based primarily upon such counsel's background and expertise in insurance
marketing as well as general corporate matters. Such expertise will be
utilized in the development and marketing to affinity groups, medical groups,
alliances, state associations and in-house as well as branch office brokers. In
addition to marketing knowledge and experience, the addition is expected to
result in reduced legal fees experienced by the Company in the usual course of
business.
Taxes increased $5,288 for the nine months ended September 30, 1996, as
compared to the nine months ended September 30, 1995. This increase is
directly related to the increase in salaries and wages.
Travel and lodging increased $22,495 for the nine months ended September 30,
1996, as compared to the nine months ended September 30, 1995. This increase
relates to the Company's aggressive pursuit of and marketing to affinity
groups, medical groups, alliances and state associations.
Future Operations
As of September 30, 1996, Executive had approximately 70 registered
representatives and is in the process of recruiting several new representatives
to its home office branch. In anticipation of continued growth, the Company
amended its restrictive agreement with and received approval from the National
Association of Securities Dealers (NASD) to increase the number of registered
representatives from 75 to 100 effective September 5, 1995.
The Company is in the process of negotiating an agreement to purchase all
of the outstanding stock of Donnellan, Haylett & Co., an NASD/SIPC Member
broker/dealer for $25,000. Donnellan, Haylett & Co. would be a wholly owned
subsidiary of the Company. Should this proposed acquisition occur, it is
anticipated that it (Donnellan, Haylett & Co.) would be inactive until such
time that the Company's management deems it appropriate to utilize it in the
expansion of its business. As of September 30, 1996, no agreement has been
consummated with regards to the terms of the proposed acquisition. As
indicated previously, management is in the process of further due diligence and
negotiations.
13
<PAGE> 14
The Company anticipates the completion of an underwriting of an affiliate
during the first quarter 1997. As a result of these investment banking
activities, the Company anticipates significant underwriting fees and enhanced
commission revenues.
As of September 30, 1996, the Company is in the process of negotiating
exclusive investment product marketing and financial services agreements with
several large affinity groups, medical groups, alliancesand state associations.
The Company has received signed letters of endorsement/intent from two such
organizations. Management is pursuing contracts for services for these
exclusive investment product marketing and financial services agreements. This
activity will not only enhance the operating performance of the Company, but it
is anticipated that it will position the Company for a secondary public offering
of the Company's stock.
In addition, with the increase of the in-house securities/insurance
brokers and outside independent brokers, coupled with the increased investment
banking activities and the sale of insurance-related products and services, it
is management's belief that it has and will have the liquid resources to not
only sustain its operations, but become profitable in fiscal 1997.
Regulatory Net Capital
As a securities broker-dealer, the Company is subject to the net capital rules
of the United States Securities and Exchange Commission and similar rules in
force in the states where the Company is registered as a securities
broker-dealer. The aggregate indebtedness of a securities broker-dealer in
relation to its net capital is also subject to Commission rules. Such rules
are somewhat complex in the manner that regulatory net capital is computed. In
summary, however, the computation of regulatory net capital relates to the
stockholder's equity of the Company taking into account deductions from such
stockholder's equity which relate to non-allowable assets which are a
non-liquid type and reductions in the market value of investment securities
owned by the Company in accordance with rule-prescribed "haircuts". Under the
rules, the aggregate indebtedness of the Company in relation to its net capital
may not exceed a ration of 15 to 1.
The table set forth below, with respect to the Company, the amount of regulatory
net capital and the amount of aggregate indebtedness and the ratio thereof to
such regulatory net capital as of September 30, 1996 and 1995:
<TABLE>
<CAPTION>
1996 1995
---------- -----------
<S> <C> <C>
Net Capital $ 58,922 $ 44,330
Aggregate Indebtedness 215,104 232,889
Ratio of aggregate indebtedness
to net capital 3.65 to 1 5.25 to 1
</TABLE>
The National Association of Securities Dealers, Inc. (the "NASD") requires
certain members, such as the Company, to maintain net capital equal to the
greater of 130% of the Commission's net capital requirement or 6 2/3% of
aggregate indebtedness.
14
<PAGE> 15
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Not Applicable
Item 2. Changes in Securities.
Not Applicable
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable
Item 6. Exhibits and Reports on Form 8-K.
Exhibits.
27 Financial Data Schedule (for SEC use only)
Reports on Form 8-K.
None
[THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
15
<PAGE> 16
In accordance with the requirements of the Exchange Act, the registrant
causes this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
EXECUTIVE WEALTH MANAGEMENT
SERVICES, INC.
OCTOBER 31, 1996
- ------------------------
BY Guy S. Della Penna
---------------------------------------
Guy S. Della Penna, President and
Chief Executive Officer
OCTOBER 31, 1996
- ------------------------
BY J. Scott Fulton
-----------------------------------------
J. Scott Fulton, Executive Vice President
Chief Operating Officer and Treasurer
OCTOBER 31, 1996 BY Bonnie S. Gilmore
- ------------------------ ----------------------------------------
Bonnie S. Gilmore, Vice President
Chief Financial Officer and Secretary
16
<TABLE> <S> <C>
<ARTICLE> BD
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM UNAUDITED
FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 1996 AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH 10Q-SB, SEPTEMBER 30, 1996.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 38,995
<RECEIVABLES> 205,673
<SECURITIES-RESALE> 0
<SECURITIES-BORROWED> 0
<INSTRUMENTS-OWNED> 43,396
<PP&E> 38,515
<TOTAL-ASSETS> 328,513
<SHORT-TERM> 0
<PAYABLES> 215,104
<REPOS-SOLD> 0
<SECURITIES-LOANED> 0
<INSTRUMENTS-SOLD> 0
<LONG-TERM> 0
0
0
<COMMON> 4,995
<OTHER-SE> 108,414
<TOTAL-LIABILITY-AND-EQUITY> 328,513
<TRADING-REVENUE> 0
<INTEREST-DIVIDENDS> 0
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