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, 1999 33-48017-A
FAS WEALTH MANAGEMENT SERVICES, INC.
(a Delaware corporation)
(Formerly Executive Wealth Management Services, Inc.)
( formerly a Florida corporation)
(Exact name of Registrant as specified in its Charter)
Delaware (formerly 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, 1999, the Registrant had revenues of
$3,451,395.
As of March 31, 1999, the Registrant had 5,000,000 Shares authorized and
2,664,560 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 $1,752,492.
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, 1999, and the related statements
of operations and shareholders' equity for the three months ended March 31,
1999 and 1998.
[THE BALANCE OF THIS PAGE INTENTIONALLY LEFT BLANK]
<TABLE>
<CAPTION>
FAS WEALTH MANAGEMENT SERVICES, INC.
(FORMERLY EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.)
BALANCE SHEET
March 31, 1999 (Unaudited)
ASSETS
------------
CURRENT ASSETS
<S> <C>
Cash. . . . . . . . . . . . . . . . . . $ 68,903
Accounts receivable from
correspondent brokers . . . . . . . . 182,757
Accounts receivable from affiliates . . 180,251
------------
TOTAL CURRENT ASSETS. . . . . . . 431,911
INVESTMENTS
Furniture, Fixtures and Equipment -
at cost net of accumulated depreciation 62,022
OTHER ASSETS
Deposits with clearing organizations. . 140,000
Other deposits. . . . . . . . . . . . . 1,934
Investment Account - Trading Account. . 1,458,816
------------
TOTAL OTHER ASSETS. . . . . . . . . . . . 1,600,750
TOTAL ASSETS. . . . . . . . . . . . . . . $ 2,094,683
============
LIABILITIES AND STOCKHOLDERS' EQUITY
- -----------------------------------------
CURRENT LIABILITIES
Accounts payable. . . . . . . . . . . . $ 659,384
Commissions payable . . . . . . . . . . 158,035
------------
TOTAL CURRENT LIABILITIES . . . . . . . . 817,419
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 2,615,485 shares . . . . 5,329
Additional paid-in capital. . . . . . . 2,740,231
Additional paid-in capital, warrants. . 4,410
Retained earnings . . . . . . . . . . . (1,472,706)
------------
TOTAL STOCKHOLDERS' EQUITY. . . . . . . . 1,277,264
------------
TOTAL LIABILITIES & STOCKHOLDERS EQUITY . $ 2,094,683
============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FAS WEALTH MANAGEMENT SERVICES, INC.
(FORMERLY EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.)
STATEMENTS OF OPERATION
For The Three Months Ended March 31 (Unaudited)
1999 1998
----------- ---------
REVENUE
<S> <C> <C>
Commissions . . . . . . . . . . . . . $2,891,191 $566,751
Investment banking fees . . . . . . . 463,577 74,810
Other income. . . . . . . . . . . . . 96,627 30,919
----------- ---------
TOTAL REVENUE . . . . . . . . . . . . . 3,451,395 672,480
----------- ---------
EXPENSES
Advertising . . . . . . . . . . . . . 2,665 156
Board of Directors fees . . . . . . . 8,000 6,000
Branch development 5,000 ---
Clearing charges. . . . . . . . . . . 46,096 44,695
Commissions . . . . . . . . . . . . . 2,657,327 500,418
Consulting fees . . . . . . . . . . . 37,542 15,171
Dues and subscriptions. . . . . . . . 37,460 823
Depreciation. . . . . . . . . . . . . 4,200 2,584
Employee benefits 8,305 ---
Insurance . . . . . . . . . . . . . . 4,510 2,036
Meetings and seminars 1,044 ---
Miscellaneous . . . . . . . . . . . . 2,359 1,926
Office expenses . . . . . . . . . . . 14,200 6,774
Regulatory. . . . . . . . . . . . . . 10,709 9,487
Rent costs. . . . . . . . . . . . . . 26,241 24,816
Rental Equipment. . . . . . . . . . . 2,739 2,348
Salaries and Wages. . . . . . . . . . 290,631 84,443
Taxes . . . . . . . . . . . . . . . . 25,456 10,145
Travel and lodging. . . . . . . . . . 23,443 6,462
Utilities . . . . . . . . . . . . . . 14,096 7,589
----------- ---------
TOTAL OPERATING EXPENSES. . . . . . . . 3,222,023 725,873
----------- ---------
OPERATING INCOME/(LOSS) . . . . . . . . 229,372 (53,393)
----------- ---------
Unrealized trading and investment loss (519,164) ---
NET INCOME/(LOSS) . . . . . . . . . . . $ (289,792) $(53,393)
=========== =========
NET INCOME/(LOSS) PER SHARE . . . . . . $ (.109) $ (.020)
=========== =========
</TABLE>
FAS WEALTH MANAGEMENT SERVICES, INC.
(FORMERLY EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For The Three Months Ended March 31 (Unaudited)
<TABLE>
<CAPTION>
ADDITIONAL PAID-IN CAPITAL WARRANTS
-----------------------------------
RETAINED EARNINGS
-----------------
PREFERRED STOCK COMMON STOCK PAID-IN CAPITAL (DEFICIT)
--------------- ------------ --------------- ---------
TOTAL
-----
Balance at January 1, 1999 $- $5,329 $2,783,230 $4,410 $(1,182,913) $1,610,056
Payment to Parent Co. (43,000) (43,000)
Net Loss for
the Three Months ended
March 31, 1999 (289,792) (289,792)
--------- ---------
Balance at March 31, 1999 $- $5,329 $2,740,230 $4,410 $(1,472,705) $1,277,264
== ====== ========== ======= ============ =========
FAS WEALTH MANAGEMENT SERVICES, INC.
(FORMERLY EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.)
STATEMENT OF CASH FLOWS
For The Three Months Ended March 31 (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES: 1999 1998
---------- ----------
Net Income (Loss) . . . . . . . . . . . . . . . . . $(289,792) $ (53,393)
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation . . . . . . . . . .. . . . . . . . . 4,200 2,584
(Increase) decrease in operating assets:
Receivable from correspondent brokers . . . . . 87,981 (43,144)
Receivable - other . . . . . . . . . . . . . . (81,023) 40,237
Deposits . . . . . . . . . . . . . . . . . . . 103 5,064
Investment and trading accounts 236,238 ---
Prepaid expense. . . . . . . . . . . . . . . . 6,000 (2,500)
Increase (decrease) in operating liabilities:
Accounts payable. . . . . . . . . . . . . . . . (159,468) 50,092
Commissions payable . . . . . . . . . . . . . . (104,474) (114,197)
---------- ----------
Net cash provided by (used in)
operating activities. (300,235) (115,257)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of assets (6,756) ---
Payments to parent company (43,000) ---
---------- ----------
Net cash provided by (used in)
financing activities (49,756) ---
---------- ----------
NET INCREASE (DECREASE) IN CASH . . . . . . . . . . . (349,991) (115,257)
CASH AT BEGINNING OF PERIOD .. . . . . . . . . . . . . 418,894 127,179
---------- ----------
CASH AT END OF PERIOD . . . . . . . . . . . . . . . . $ 68,903 $ 11,922
========== ==========
FAS WEALTH MANAGEMENT SERVICES, INC.
(FORMERLY EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.)
NOTES TO FINANCIAL STATEMENTS
For The Three Months Ended March 31, 1999 and 1998
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ------- ----------------------------------------------
Organization
- ------------
FAS 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, 1999. 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.
The Company was issued 750,000 shares of the common stock of Global Digital
Information, Inc. The stock was issued to the Company in relation to
consulting fees earned by the Company. At March 31, 1999, the value of the
shares was $52,500.
The Company was issued 200,000 shares of the common stock of E Data Corp. The
stock was issued to the Company in relation to consulting fees earned by the
Company. The market value on March 31, 1999 was $40,000.
The Company was issued 100,00 shares of the common stock of Tollycraft Yacht
Corporation. This stock was issued to the Company from the parent company,
FAS Group, which had received shares representing consulting fees earned by
the parent company. At March 31, 1999, 75,000 of the 100,000 shares were in
the Company's investment account and had a market value of $140,625.
FAS WEALTH MANAGEMENT SERVICES, INC.
(FORMERLY EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Three Months March 31, 1999 and 1998
Investments (continued)
- ------------------------
The remaining 25,000 shares at March 31, 1999 was in the firm's trading
account.
Loss Per Share
- ----------------
Loss per share is computed based upon 2,664,560 and 2,615,485 shares
outstanding during the periods ended March 31, 1999 and 1998, respectively.
Other
- -----
As of May 10, 1999, the change of control and succession date as that term is
generally defined has occurred and the shareholders of EWMS may submit their
certificates to the transfer agent pursuant to the instructions contained in
the Information Statement and related transmittal letter.
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:
March 31, 1999
----------------
Furniture and fixtures $ 46,561
Equipment 74,816
Leasehold improvements 8,101
-----
129,478
Less: Accumulated Depreciation (67,456)
--------
$ 62,022
=================
Note 4 - Operating Leases
- ------- -----------------
Rent expense for the three months ended March 31, 1999 and 1998 was $24,816
and $24,816, respectively.
FAS WEALTH MANAGEMENT SERVICES, INC.
(FORMERLY EXECUTIVE WEALTH MANAGEMENT SERVICES, INC.)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For The Three Months March 31, 1999 and 1998
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 $100,000.
The Company had net capital of $914,612 or 915% and $66,784 or 695% of the
minimum requirement at March 31, 1999 and 1998, 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, 1998, the Company had a net operating loss carry forward of
approximately $989,000 that will begin to expire in the year 2012. Due to the
lack of historical operations, management has elected to record a valuation
allowance equal to the deferred tax asset of $366,000, calculated using an
effective income tax rate of 37% for the Company.
NOTE 7 - RELATED PARTY TRANSACTIONS
- ------- ----------------------------
During the three months ended March 31, 1999 and 1998, companies affiliated
with the Company's majority stockholder shared office space with the Company
and paid rent of $2,160 and $2,865, respectively, for the use of the space.
During the three months ended March 31, 1999 and 1998, the Company paid rent
of approximately $9,000 to the Company's majority stockholder for leased
space.
The Company has been involved in marketing services and products to members of
large medical affinity groups and associations through endorsement to the
members of the products and services by the management of the associations and
affinity groups. FASW's parent company, FAS Group, Inc. ("FASG") determined
that the affinity marketing business conducted by FASW should be separated
from the broker/dealer side of FASG and, on November 6, 1998, FASG caused a
new subsidiary corporation to be formed, FAS Affinity Marketing Services,
Inc., ("FASA").
The decision to form a new subsidiary corporation was based, in part, to
separate the potential liability of the broker/dealer and affinity sides of
FASG's business as well as to create a distinct corporate persona for affinity
marketing.
FASA was assigned the Tax Resources, Inc./American Medical Association
marketing contract. This contract entitles FASA to commissions for sales of
Tax Resources, Inc.'s services to members of the American Medical Association.
In addition, FASA has commenced the development of an E-Commerce website to
market goods and services to members of affinity groups.
Our Company has, to date, advanced $15,300 to FASA for developmental costs of
the website, personnel costs, travel costs and equipment costs.
NOTE 8 - COMMON STOCK TRANSACTIONS
- ------- ---------------------------
In March 1998, the Company and the majority stockholder initiated a private
placement of 150,000 shares of the Company's common stock at a price of $2.00
per share. The shares contained in the offering were drawn one share from the
authorized but unissued shares of the Company for every two shares sold by the
stockholder. Accordingly, gross proceeds from the sale of the stock were
shared one-third by the Company and two-thirds by the majority shareholder.
The proceeds from this private placement were utilized for additional
expansion and working capital by the Company. In the offering, 49,075 shares
were sold by the Company at a price of $2.00 per share.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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, 1999 and 1998.
1999 1998 Increase/(Decrease)
---- ---- -------------------
Source of Revenue Earned
- ---------------------------
Commission:
Investment banking revenues $463,577 $74,810 $388,767
Transactional 1,415,972 298,918 1,117,054
Mutual fund revenues 103,217 154,870 (51,653)
Insurance/Annuity 143,343 110,743 32,600
Limited partnership income 240,595 2,219 238,376
Trading revenue 841,290 --- 841,290
------- --- -------
Total Commissions 3,207,994 641,560 2,566,434
Other:
RIA 179,981 18,882 161,099
Miscellaneous 63,420 12,038 51,382
------ ------ ------
Total $3,451,395 $672,480 $2,778,915
========== ======== ==========
Overall total revenue increased 2,778,915 or 413% for the period ended March
31, 1999 as compared to the same period ended 1998.
The Company has a diverse base of Registered Representatives as of March 31,
1999 ranging from transactional oriented producers to insurance, mutual fund
producers and financial planners. During September 1998, the Company began
operating as a market maker. The increase of revenue due to this area was up
$841,290 along with the transactional revenue increase of $1,117,054 from the
asset purchase of the Ft. Lauderdale and New York offices, represent
approximately 57% of total revenue for the period ended March 31, 1999.
Investment banking revenue increased $388,767 for the period ended March 31,
1999 as compared to the same period ended 1998. This increase relates to
management's ability to attract prospective underwriting deals in which
companies compensate the Company with initial fees of either cash and/or
securities. The Company also participated in a private placement for
HomeVestors of America of 750,000 units consisting of 750,000 shares of
common stock and 750,000 common stock purchase warrants. The Company acted on
a best efforts basis. During the period ended March 31, 1999, the Company
successfully placed 275,000 units and earned underwriting and commissions of
$71,500. The Company also participated in a selling group for the initial
public offering of a firm of U.S. Labs.
Transactional revenue increased $1,117,054 for the period ended March 31, 1999
as compared to the same period ended 1998. This increase of 373.7% relates to
the above mentioned Ft. Lauderdale and New York offices. Management is
currently engaged in negotiations with two other branch offices and expects
the growth to continue throughout the remainder of 1999. Mutual fund revenue
and insurance annuity revenue decreased $84,253 for the period ended March 31,
1999 as compared to the same period ended 1998. This decrease is offset to
the increase in limited partnership income of $238,376.
Trading revenue increased $841,290 for the period ended March 31, 1999 as
compared to the same period ended 1998. This increase relates to the fact
that during the same period ended 1998, the firm was not involved in market
making or proprietary trading.
RIA income increased $161,099 for the three months ended March 31, 1999 as
compared to the same period ended 1998. This increase relates directly to the
increase in assets under management. At March 31, 1999 assets under management
exceeded $59,000,000.
Miscellaneous income increased $51,382 for the three month period ended March
31, 1999 as compared to the same period ended 1998. This increase relates to
increased transactional revenue mentioned above.
As a result of an increase in overall revenue, expenses increased as well.
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, 1999, as compared to the same period in 1998:
Increase/
Expense Category 1999 1998 (decrease)
---------- ------- -----------
<S> <C> <C> <C>
Advertising expense. . $ 2,665 $ 156 $ 2,509
Board of directors fee 8,000 6,000 2,000
Branch office support 5,000 --- 5,000
Consulting . . . . . 37,542 15,171 22,371
Dues and subscriptions 37,460 2,348 35,112
Employee Benefits 8,305 --- 8,305
Insurance. . . . . . . 4,510 2,036 2,474
Meetings and seminars 1,044 --- 1,044
Office expenses. . . . 14,200 6,774 7,426
Salaries & Wages . . . 290,631 84,443 206,188
Taxes. . . . . . . . . 25,456 10,145 15,311
Travel & lodging . . . 23,443 6,462 16,981
Unrealized trading/
investment loss 519,164 --- 519,164
Utilities. . . . . . . 14,096 7,589 6,507
</TABLE>
As noted above, most expense items increased substantially during the period
ended March 31, 1999 as compared to 1998. These increases relate to three
major areas:
Merger of Executive Wealth Management Services, Inc. and FAS Wealth
Management Services, Inc. The expense items affected were Board of Director
fees, consulting, employee benefits, insurance, occupancy, office supplies,
salaries and wages, taxes, telephone, travel and entertainment.
Asset acquisition of Biltmore Securities, Inc. attributed directly to the
increases in commissions, office expense, telephone, regulatory and a
significant portion of the increase in travel and entertainment.
Start-up of the firm's trading area attributed to the increases in
advertising, insurance, occupancy, office expense, a significant portion of
the increase is salaries and wages and the corresponding increases in payroll,
taxes, telephone, regulatory, the majority of the increase in dues and
subscriptions and repairs and maintenance.
Future Operations
- ------------------
As of March 31, 1999, the Company has approximately 116 registered
representatives.
Effective August 17, 1998, the SEC approved the Taping Rule. This rule
amended the NASD Rule 3010 to require members to establish special supervisory
procedures, including the tape recording of conversations, when they have
hired more than a specified percentage of registered persons from certain
firms that have been expelled or that have had their broker-dealer
registrations revoked for violation of sales practice rules.
Biltmore Securities, Inc. was expelled from membership with the NASD during
February 1999. Hence, the firm is required to have less than 20% of its
registered sales force previously registered with Biltmore Securities, Inc. in
order to avoid the taping requirement. Management has taken strides to ensure
that the firm is under the 20% bench mark.
Should the firm exceed the 20% bench mark, the requirements of this rule could
have a significant financial impact on the firm. Management is watching these
members on a daily basis to ensure it does not exceed the 20% bench mark.
During fiscal 1999, management plans to increase revenues and decrease the
sharp rise in expenses. The plan includes, but is not limited to the
following:
Evaluate more cost effective clearing services;
Continue to work with branch offices to promote recruitment of seasoned
professionals;
Expand service and marketing to "affinity groups;"
Possible secondary public offering and capitalization;
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 prospective offices in Florida and New York, as
well as several representatives for its home office location.
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.
<TABLE>
<CAPTION>
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, 1999 and 1998:
1999 1998
--------- ----------
<S> <C> <C>
Net Capital . . . . . . . . . . $ 914,612 $ 66,784
Aggregate Indebtedness. . . . . 131,243 144,061
Ratio of aggregate indebtedness
to net capital. . . . . . . .14 to 1 2.16 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.
YEAR 2000
- ----------
The challenge of the year 2000, is fast approaching for every organization
world wide. The regulatory bodies of the securities industry began their
response by mandating that all member firms assess its information technology
environments and make the necessary changes to insure that automated processes
with date-sensitive components will correctly identify "00" as the year 2000,
when processing dates on and after January 1, 2000.
The firm has adopted a plan of action which will ensure that not only are the
firm's automated systems year 2000 compliance ready, but also those of the
third party vendors upon whom the firm relies. The capital costs associated
with the assessment and implementation of the firm's plan has been estimated
at approximately $7,500 for 1998, $75,000 for 1999, and $50,000 for 2000.
<PAGE>
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 13, 1999 BY: /s/ Guy S. Della Penna
- ---------------- -------------------------
Guy S. Della Penna, President
and Chief Executive Officer
MAY 13, 1999 BY: /s/ Bonnie S. Gilmore
- ----------------- ---------------------
Bonnie S. Gilmore, Senior
Vice President, Chief Financial
Officer and Secretary
