0
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 three months ended Commission File Number
March 31, 1997 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 three months ended March 31, 1997, the Registrant had revenues
of $867,409.
As of March 31, 1997, the Registrant had 5,000,000 Shares authorized
and 2,534,000 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.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Set forth below are the unaudited financial statements reflecting the
Company's financial condition as of March 31, 1997, and the related
statements of operations and shareholders' equity for the three months
ended March 31, 1997 and 1996.
[THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
BALANCE SHEET
March 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
ASSETS
<S> <C>
CURRENT ASSETS
Cash $ 6,095
Accounts receivable from
correspondent brokers 153,944
Accounts receivable from affiliates 17,954
Accounts receivable from others 775
Prepaid expenses 5,000
--------
TOTAL CURRENT ASSETS 183,768
INVESTMENTS -
Furniture, Fixtures and Equipment -
at cost net of accumulated depreciation 34,161
OTHER ASSETS
Deposits with clearing organizations 44,059
Other deposits 1,934
--------
TOTAL ASSETS $263,922
========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 26,856
Commissions Payable 135,441
--------
TOTAL CURRENT LIABILITIES 162,297
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 2,534,000 shares 5,068
Additional paid-in capital 964,602
Additional paid-in capital, warrants 4,410
Retained earnings
(872,455)
TOTAL STOCKHOLDERS' EQUITY 101,625
--------
TOTAL LIABILITIES & STOCKHOLDER'S EQUITY $263,922
========
</TABLE>
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENTS OF OPERATION
For The Three Months Ended March 31 (Unaudited)
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
REVENUE
Commissions $825,929 $629,816
Underwriting fees 10,500 15,590
Other income 30,980 18,551
-------- --------
TOTAL REVENUE 867,409 663,957
EXPENSES
Advertising 800 1,172
Board of Directors fees 4,000 4,000
Clearing charges 57,679 53,870
Commissions 669,619 497,107
Consulting fees 12,400 15,503
Dues and subscriptions 861 1,660
Depreciation 3,031 2,864
Insurance 604 3,639
Meetings and seminars 29 256
Miscellaneous 3,727 3,464
Occupancy costs 21,428 25,047
Office expenses 6,188 10,266
Professional development - 250
Regulatory 2,663 5,656
Rental equipment 2,641 2,667
Salaries and wages 86,861 67,669
Taxes 10,269 9,312
Travel and lodging 9,727 11,774
Utilities 6,232 7,863
--------- --------
TOTAL OPERATING EXPENSES 898,759 724,039
--------- --------
OPERATING INCOME/(LOSS) (31,350) (60,082)
--------- --------
NET INCOME/(LOSS) $(31,350) $(60,082)
NET INCOME/(LOSS) PER SHARE $ (.012) $ (.026)
========= =========
</TABLE>
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For The Three Months Ended March 31 (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, 1997 - $ 4,983 $913,687 $ 4,410 ($841,105) $ 81,975
Issuance of
common stock 85 50,915 51,000
Net loss for the
Three months ended
March 31, 1997 (31,350) (31,350)
--------- -------- ---------- --------- --------- --------
Balance at
March 31, 1997 $ - $ 5,068 $964,602 $ 4,410 $(872,455) $101,625
========= ======== ========== ========= ========= ========
Additional Retained
Preferred Common Paid-In Earnings Stock
Stock Stock Capital (Deficit) Warrants Total
--------- ------- ---------- --------- ---------- ---------
Balance at
January 1, 1996 $ $ 4,629 $706,853 $(629,060) $ 4,410 $ 86,832
Issuance of Common
Stock 84 50,416 50,500
Syndication Costs (4,650) (4,650)
Net loss for three
months ended
March 31, 1996 (60,082) (60,082)
-------- ------- ----------- ---------- ---------- ---------
Balance at
March 30, 1996 $ $ 4,713 $752,617 $(689,142) $ 4,410 $ 72,598
======== ======= =========== ========== ========== ========
</TABLE>
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
STATEMENT OF CASH FLOWS
For The Three Months Ended March 31 (Unaudited)
<TABLE>
1997 1996
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $(31,350) $(60,082)
Adjustments to reconcile
net income to net cash
used in operating activities:
Depreciation 3,031 2,864
(Increase) decrease in
operating assets:
Receivable from correspondent
brokers 8,562 (6,827)
Receivable - other (2,078) 8,576
Deposits (317) (324)
Prepaid expense (5,000) -
Increase (decrease) in
operating liabilities:
Accounts payable (9,628) (4,601)
Commissions payable (8,125) (5,964)
--------- ---------
Net cash provided by (used in)
operating activities (44,905) (66,358)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock 51,000 50,500
Cash paid for syndication costs - (4,545)
--------- ---------
Net cash provided by (used in)
financing activities 51,000 45,955
--------- ---------
NET INCREASE (DECREASE) IN CASH 6,095 (20,403)
CASH AT BEGINNING OF PERIOD - (20,403)
--------- ---------
CASH AT END OF PERIOD $ 6,095 $ -
========= =========
</TABLE>
EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.
NOTES TO FINANCIAL STATEMENTS
For The Three Months Ended March 31, 1997 and 1996
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, investment banking 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 March
31, 1997. 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 represented 5% of Flight Sciences, Inc.'s
outstanding common stock at the time. The Company has assigned
no value to the stock due to the fact that there is no ready
market and its value is not determinable.
Loss Per Share
Loss per share is computed based upon 2,534,000 and 2,355,320
shares outstanding during the periods ended March 31, 1997 and
1996, 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
fair market value.
Note 3 - FURNITURE, FIXTURES AND EQUIPMENT
A summary of furniture, fixtures and equipment follows:
<TABLE>
<CAPTION> March 31, 1997
<S> <C>
Furniture and fixtures $ 37,951
Equipment 33,240
Leasehold improvements 6,622
-------
77,813
Less: Accumulated
Depreciation (43,652)
--------
$ 34,161
========
</TABLE>
Note 4 - Operating Leases
Rent expense for the three months ended March 31, 1997 and 1996
was $21,428 and $25,047, 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 three month periods ended March 31, 1997 and 1996.
The Company had net capital of $40,721 or 376% and $28,358 or
221% of the minimum requirement at March 31, 1997 and 1996,
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.
NOTE 6 - INCOME TAXES
At December 31, 1996, the Company had a net operating loss carry
forward of approximately $657,000 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 $240,000, calculated using an effective
income tax rate of 37% for the Company.
NOTE 7 - RELATED PARTY TRANSACTIONS
During the three months ended March 31, 1997 and 1996, companies
affiliated with the Company's majority stockholder shared office
space with the Company and paid rent of $5,724 and $5,870,
respectively, for the use of the space.
During the three months ended March 31, 1997, the Company paid
rent of approximately $9,000 to the Company's majority
stockholder for the use of office space.
NOTE 8 - COMMON STOCK TRANSACTIONS
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 majority stockholder. Accordingly,
gross proceed from the sale of the stock will be shared equally
by the Company and the majority stockholder. As of March 31,
1996, approximately 16,833 shares of the Company's common stock
had been sold under this private placement. The proceeds from
this private placement were 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 provided 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, is not
greater than $3.00 per share. The plan required 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 March 31, 1997, none
of the options have been exercised.
During 1996, the majority stockholder purchased 9,581 shares
of common stock at $6.00 per share.
NOTE 9 - COMMON STOCK TRANSACTIONS (CONTINUED)
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 five for one basis effective
September 20, 1996. Common stockholders of record as of
September 20, 1996, were entitled to the five for one forward
common stock split.
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 three months ended March 31, 1997 and
1996.
<TABLE>
<CAPTION>
1997 1996 Increase/
(Decrease)
<S> <C> <C> <C>
Source of Revenue Earned
Commission:
Proprietary Products $ 7,500 $ 9,090 $ (1,590)
Transactional 410,403 351,364 59,039
Mutual Fund Sales 138,249 155,347 (17,098)
Insurance/Annuity 218,039 46,510 171,529
Sale of non-proprietary
limited partnerships 59,237 76,595 (17,358)
--------- ---------- ----------
Total Commissions 833,428 638,906 194,522
Other:
Underwriting fees 3,000 6,500 (3,500)
Miscellaneous 30,981 18,551 12,430
--------- ---------- ----------
Total $ 867,409 $ 663,957 $203,452
========= ========== ==========
</TABLE>
The Company received commissions and underwriting fees of $10,500
and $15,590 from the sale of proprietary products or commissions
which were "in house" in character for the three months ended
March 31, 1997 and 1996, respectively. The Company anticipates
a significant increase in income from proprietary products and
underwritings in the second and third quarters of fiscal 1997.
Transactional revenues, increased by $59,039 or 16.8% for the
three months ended March 31, 1997, as compared to the same period
in 1996. This increase relates directly to the increased
production of the Company s branch and satellite offices. This
increase is expected to continue with the addition of a New
Jersey branch in April, 1997.
Mutual fund revenue decreased approximately $17,098 or 11.01% for
the three months ended March 31, 1997 as compared to the same
period ended 1996.
Limited partnership revenue decreased $17,358 or 22.66% from the
three months ended March 31, 1996 compared to the same period
ended 1997.
The decreases in mutual fund and limited partnership revenue of
$34,456 are offset with an increase of insurance/annuity revenue.
Insurance/annuity revenue increased $171,529 or 368.8% for the
three month period ended March 31, 1997 as compared to the same
period ended 1996.
Overall, total revenue increased $203,452 or 30.64% for the three
months ended March 31, 1997 as compared to the same period ended
1997.
The Company has a diverse base of registered representatives
ranging from transaction oriented brokers to strictly insurance
and mutual fund producers. Transactional revenue was
approximately 47% of total revenue, compared to 53% at March 31,
1996. This decrease is attributable to the Company's focused
effort in the insurance marketing, education and recruiting
efforts of the business, resulting in an increase in insurance
related production.
As a result of expansion activities not only did the Company
experience increased revenues, but the related expenses have also
increased. The table set fourth below reflects the expense
categories of the Company in which there was a significant
increase or decrease for the three months ended March 31, 1997,
as compared to the same period in 1996:
<TABLE>
<CAPTION> Increase/
1997 1996 (decrease)
<S> <C> <C> <C>
Expense Cateegory
Commissions $669,619 $497,107 138,077
Clearing Charges 57,679 53,870 3,809
Consulting 12,400 15,503 (3,103)
Insurance 604 3,639 (3,035)
Occupancy 21,428 25,047 (3,619)
Office Expense 6,188 10,266 (4,078)
Regulatory 2,663 5,656 (2,993)
Salaries & Wages 86,861 67,669 19,192
Travel and lodging 9,727 11,774 (2,047)
</TABLE>
Commission expense increased from $497,109 for the three months
ended March 31, 1996, to $669,619 for the three months ended
March 31, 1997. The increase in commissions expense is directly
related to the aforementioned increase in production.
Clearing charges increased $3,809 or 7% for the period ended
March 31, 1997, as compared to the same period ended 1996.
Clearing charges relate to transaction revenue, hence, generally
an increase or decrease in revenue will have the same effect on
charges.
Consulting fees decreased $3,103 for the three months ended March
31, 1997, as compared to the same period in 1996. This decrease
relates to accounting and legal services being performed
internally.
Insurance expense decreased $3,035 or 83.4% for the three month
period ended March 31, 1997, as compared to the same period ended
1996. This decrease relates to a decrease in individual state
requirements of surety bonds. Many states required a broker
dealer to maintain a surety bond, exclusively for those clients
which reside in that state. In late 1996, Congress passed the
National Securities Markets Improvement Act which eliminated the
surety bond requirement for broker dealers.
Occupancy costs decreased $3,619 for the three month period ended
March 31, 1997, as compared to the same period ended 1996. This
decrease relates to partial relocation of corporate personnel to
a different branch site which resulted in lower rent expense.
Office expense decreased $4,078 or 39.7% for the three months
ended March 31, 1997, as compared to the three months ended
March 31, 1996. This decrease in primarily due to management's
stringent cost cutting efforts for fiscal 1997.
Regulatory expenses decreased $2,993 or 52.9% for the three month
period ended March 31, 1997 as compared to the same period ended
1996. The decrease relates to a decrease in the number of
registered representatives for whom the Company pays registration
fees. Regulatory expenses are expected to increase in
conjunction with the Company's growth. Specifically, the
Company's Registered Investment Advisory (RIA) services is and
will become an area of increased revenue as well as regulatory
expense.
Salaries and wages increased for the three month period ended
March 31, 1997, as compared to the same period in 1996 by
$19,192. This increase relates to the Company hiring a full time
general counsel and bringing the accounting function in-house.
Travel and lodging decreased $2,047 to $9,727 for the three month
period ended March 31, 1997, compared to $11,774 for the same
period ended 1996. The decrease relates to the stringent expense
budget efforts on the part of management.
Future Operations
As of March 31, 1997, Executive had approximately 80
registered representatives and is in the process of recruiting
several new office locations.
In 1997 management has and will be implementing several
growth and expansion related initiatives. These initiatives will
include, but are not limited to the following:
- Continued branch development and expansion,
- Increased investment banking activities,
- Expanded service and marketing to "Affinity Groups",
- Possible secondary public offering, and
- Market making.
The Company and its management continue to pursue the
addition of new offices and new registered representatives to
existing offices. Management is currently in negotiations with a
prospective office in Illinois. The addition of this office
could result in additional gross revenues to the Company of
approximately $1.1 million. Management will continue to pursue
new retail establishments in addition to the one currently being
pursued.
Management anticipates an increase in investment banking
activities because of its involvement in two underwritings,
specifically, The Outlet Mall Network, Inc. and Federal Mortgage
Management II, Inc. The following is a brief description of both
offerings:
- Executive was named best efforts managing Placement Agent
for The Outlet Mall Network, Inc. ("OMNI") private offering
of 2.5 million Units (at $2 per Unit). Each Unit consists
of one Share of Class A Preferred Stock and one Warrant to
purchase one Share of Class B common stock. As compensation
for acting as the best efforts managing Placement Agent,
Executive will receive commissions equal to ten percent
(10%), a managing Placement Agent fee equal to three percent
(3%) and a non-accountable expense allowance equal to one
percent (1%) of the Offering Price. Additionally, for
serving as best efforts managing Placement Agent, Executive
will receive Warrant(s) to purchase Shares of OMNI's Class A
Preferred Stock. This offering has a dated date of February
24, 1997.
- Executive was also named best efforts managing Placement
Agent for Federal Mortgage Management II, Inc., an affiliate
of Executive, in a $5,000,000 Public offering of Promissory
Notes. As compensation for acting as the best efforts
managing Placement Agent Executive expects to receive
average selling commissions equal to six and one tenth
percent (6.1%), a note offering management fee equal to
three percent (3%) and a non-accountable expense allowance
equal to two percent (2%) of the Note offering price. It is
anticipated that this offering will commence in June 1997.
For approximately two and one half years, the Company has
aggressively engaged in, and committed significant financial and
personnel resources to an extensive market study and analysis of
the viability of marketing, on an exclusive and endorsed basis,
various insurance, financial and securities-related products, and
other services to members of large medical affinity groups and
associations. In this regard, Executive has established contacts
and relationships with various medical associations and affinity
groups and has presented comprehensive marketing proposals to
specific groups. The Company will continue to develop these
relationships along with attempting to establish additional
relationships with new groups in 1997.
As of April 10, 1997, the Company was successful in
recruiting a new branch office in New Jersey. As a result,
Management projects gross revenues to increase $800,000 for the
remainder of fiscal 1997.
Effective March, 1997, the Company has entered into an exclusive
"Service and Non-Circumvention Agreement" with Financial
Marketing Consultants, Inc. ("FMC") of Naples, Florida. Under
the Agreement, among other things, FMC shall make introductions
to and presentations with and/or on behalf of the Company to
underwriters, broker/dealers, corporations, partnerships or
individuals that may invest and/or assist Executive with a
secondary public offering of securities issued by Executive. FMC
has agreed to provide these services on a contingency basis.
Executive will issue warrants to FMC equal to 1.5% of the
securities and warrants placed as a direct effort of FMC as well
as a cash fee in the amount of 1.5% of the value of amounts
obtained or to be obtained by Executive under the Agreement.
In conjunction with and concurrent to the aforementioned
Agreement, the Company has retained the services of James D.
Cullen, P.A. to provide legal services with regard to the
structuring, documentation and other corporate matters required
and necessary for a secondary public offering of the Company's
stock. Legal fees related to such work are not to exceed $20,000
plus reimbursement for costs incurred on behalf of the Company.
The Company has provided James D. Cullen, P.A. with a $5,000
retainer, with a balance of $15,000 due only upon closing of any
secondary public offering transaction by the Company.
The Company expects to make presentations under the guidance of
FMC and James D. Cullen, P.A. to underwriters during the first
half of fiscal 1997.
Executive is exploring the possibility of establishing market
making. Management anticipates that upon NASD approval, it will
initially engage in market making of a limited number of specific
listed stocks, assuming the successful completion of its
secondary public offering.
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 resources to not only sustain its operations, but
become profitable during 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 March 31, 1997 and 1996:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Net Capital $ 40,721 $ 28,358
Aggregate Indebtedness 162,297 192,338
Ratio of aggregate indebtedness
to net capital 3.99 to 1 6.78 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.
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.
Not Applicable
[THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
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.
May 14, 1997
BY Guy S. Della Penna
Guy S. Della Penna, President
and Chief Executive Officer
May 14, 1997
BY J. Scott Fulton
J. Scott Fulton, Executive Vice
President, Chief Operating
Officer and Treasurer
May 14, 1997 BY Bonnie S. Gilmore
Bonnie S. Gilmore, Senior Vice
President, Chief Financial
Officer and Secretary Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE>
3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 6,095
<SECURITIES> 45,993
<RECEIVABLES> 177,673
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 229,761
<PP&E> 77,813
<DEPRECIATION> 43,652
<TOTAL-ASSETS> 263,922
<CURRENT-LIABILITIES> 162,297
<BONDS> 0
0
0
<COMMON> 5,068
<OTHER-SE> 96,557
<TOTAL-LIABILITY-AND-EQUITY> 263,922
<SALES> 0
<TOTAL-REVENUES> 867,409
<CGS> 0
<TOTAL-COSTS> 898,759
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (31,350)
<INCOME-TAX> 0
<INCOME-CONTINUING> (31,350)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (31,350)
<EPS-PRIMARY> (.012)
<EPS-DILUTED> (.012)
</TABLE>
