UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to __________
Commission File No. 33-55254-29
KOALA CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter)
NEVADA 87-0438649
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
3098 SO. HIGHLAND DRIVE, SUITE 460
SALT LAKE CITY, UTAH 84106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (801) 485-7775
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. [X] Yes [ ] No
Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.
Class Outstanding as of August, 1996
- - ------------------------------------ -------------------------------
$.001 PAR VALUE CLASS A COMMON STOCK 1,100,000 SHARES
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
BASIS OF REPRESENTATION
General
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-Q and, therefore, do not include all
information and footnotes necessary for a complete presentation of financial
position, results of operations, cash flows and stockholders' equity in
conformity with generally accepted accounting principles. In the opinion of
management, all adjustments considered necessary for a fair presentation of the
results of operations and financial position have been included and all such
adjustments are of a normal recurring nature. Operating results for the quarter
ended June 30, 1996, are not necessarily indicative of the results that can be
expected for the year ending December 31, 1996.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Current assets at June 30, 1996 were $50,000 as compared to net current
assets at June 30, 1995 of $0.00. The increase in current assets was due to an
increase in cash of $50,000 from the sale of 100,000 shares of the Company's
common stock at $.50 per share.
The Company has not received any income nor incurred any expenses as of
the quarter ended June 30, 1996, and has limited operational history. Since the
acquisition of the cash, the Company has entered into the business of marketing
and developing and promoting high technology products and services in the
electronics industry. The Company has entered into discussions and negotiations
with various parties to acquire and promote electronic products; however, the
Company has not concluded any transactions, entered into any agreements,
letters of intent, or any other arrangements with respect to any change in
control or status of the Company. All risks inherent in new and inexperienced
enterprises are inherent in the Company's business. The Company has not made
a formal study of the economic potential of this venture.
The Company will continue to expand through its proposed business
operations and through acquisitions and will be extremely limited in its
attempts to locate potential business situations for investigation. However, the
Company's officers, directors and major shareholder believe that the present
amount of capital contributed recently is sufficient to enable it to satisfy its
reporting and other obligations as a public company for the foreseeable future.
The Company plans to continue on a limited basis, the process of investigating
possible merger and acquisition candidates, and believes that the Company's
status as a publicly-held corporation will enhance its ability to locate such
potential business ventures.
Management anticipates that due to the limited amount of its resources,
the Company may be restricted to participation in only one potential business
venture. This lack of diversification should be considered a substantial risk
because it will not permit the Company to offset potential losses from one
venture against gains from another.
<PAGE>
<TABLE>
<CAPTION>
KOALA CAPITAL CORPORATION
(A Development Stage Company)
BALANCE SHEETS
6/30/96 12/31/95
Unaudited Audited
----------- -----------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash in bank $ 50,000 $ 50,000
----------- -----------
TOTAL CURRENT ASSETS 50,000 50,000
----------- -----------
$ 50,000 $ 50,000
=========== ===========
LIABILITIES & EQUITY
CURRENT LIABILITIES
Accounts payable $ 0 $ 0
----------- -----------
TOTAL CURRENT LIABILITIES 0 0
STOCKHOLDERS' EQUITY Common Stock $.001 par value:
Authorized - 100,000,000 shares
Issued and outstanding
1,100,000 shares 1,100 1,100
Additional paid-in capital 50,900 50,900
Deficit accumulated during
the development stage (2,000) (2,000)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY 50,000 50,000
----------- -----------
$ 50,000 $ 50,000
=========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
KOALA CAPITAL CORPORATION
(A Development Stage Company)
STATEMENTS OF OPERATIONS
5/02/86
For the three months For the six months (Date of
ended June 30, ended June 30 inception) to
1996 1995 1996 1995 6/30/96
Unaudited Unaudited Unaudited Unaudited Unaudited
------------ ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net sales $ -0- $ -0- $ -0- $ -0- $ -0-
Cost of sales -0- -0- -0- -0- -0-
------------ ------------ ------------- ------------ ------------
GROSS PROFIT (LOSS) -0- -0- -0- -0- -0-
General and
administrative expenses -0- -0- -0- -0- 2,000
------------ ------------ ------------- ------------ ------------
NET INCOME (LOSS) $ -0- $ -0- $ -0- $ -0- $ (2,000)
============ ============= ============= ============ ============
Net income (loss) per weighted
average common shares $ .00 $ .00 $ .00 $ .00
============ ============= ============= ============
Weighted average number of
common shares used to compute
net income (loss) 1,100,000 1,000,000 1,100,000 1,000,000
============ ============ ============= ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
KOALA CAPITAL CORPORATION
(A Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Deficit
Accumulated
Common Stock Additional During
Par Value $.001 Paid-in Development
Shares Amount Capital Stage
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
Balances at 5/02/86
(Date of inception) -0- $ -0- $ -0- $ -0-
Issuance of common stock (restricted)
at $.002 per share at 8/07/86 1,000,000 1,000 1,000
Net loss for period (1,950)
--------- --------- ---------- -----------
Balances at 12/31/86 1,000,000 1,000 1,000 (1,950)
Net loss for year (10)
--------- --------- ---------- -----------
Balances at 12/31/87 1,000,000 1,000 1,000 (1,960)
Net loss for year (10)
--------- --------- ---------- -----------
Balances at 12/31/88 1,000,000 1,000 1,000 (1,970)
Net loss for year (10)
--------- --------- ---------- -----------
Balances at 12/31/89 1,000,000 1,000 1,000 (1,980)
Net loss for year (10)
--------- --------- ---------- -----------
Balances at 12/31/90 1,000,000 1,000 1,000 (1,990)
Net loss for year (10)
--------- --------- ---------- -----------
Balances at 12/31/91 1,000,000 1,000 1,000 (2,000)
Net loss for year -0-
--------- --------- ---------- -----------
Balances at 12/31/92 1,000,000 1,000 1,000 (2,000)
Net loss for year -0-
--------- --------- ---------- -----------
Balances at 12/31/93 1,000,000 1,000 1,000 (2,000)
Net loss for year -0-
--------- --------- ---------- -----------
Balances at 12/31/94 1,000,000 1,000 1,000 (2,000)
Issuance of common stock (restricted)
at $.50 per share at 12/01/95 100,000 100 49,900
Net income for year -0-
--------- --------- ---------- -----------
Balances at 12/31/95 1,100,000 1,100 50,900 (2,000)
Net income for period -0-
--------- --------- ---------- -----------
Balances at 6/30/96 1,100,000 $ 1,100 $ 50,900 $ (2,000)
========= ========= ========== ===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
KOALA CAPITAL CORPORATION
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
5/02/86
For the six months (Date of
ended June 30, inception) to
1996 1995 6/30/96
Unaudited Unaudited Unaudited
------------- ------------- -------------
<S> <C> <C> <C>
OPERATING ACTIVITIES
Net income (loss) $ -0- $ -0- $ (2,000)
Adjustments to reconcile
net income (loss) to cash
used by operating activities:
Amortization -0- -0- 50
------------- ------------- -------------
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES -0- -0- (1,950)
INVESTING ACTIVITIES
Organization Costs -0- -0- (50)
------------- ------------- -------------
NET CASH USED BY
INVESTING ACTIVITIES -0- -0- (50)
FINANCING ACTIVITIES
Proceeds from sale of
common stock -0- -0- 52,000
------------- ------------- -------------
NET CASH PROVIDED BY
FINANCING ACTIVITIES -0- -0- 52,000
------------- ------------- -------------
INCREASE IN CASH
AND CASH EQUIVALENTS -0- -0- 50,000
Cash and cash equivalents
at beginning of year 50,000 -0- -0-
------------- ------------- -------------
CASH & CASH EQUIVALENTS
AT END OF PERIOD $ 50,000 $ -0- $ 50,000
============= ============= =============
</TABLE>
<PAGE>
KOALA CAPITAL CORPORATION
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
Accounting Methods
The Company recognizes income and expenses based on the accrual method
of accounting.
Dividend Policy:
The Company has not yet adopted any policy regarding payment of
dividends.
Income Taxes:
The Company records the income tax effect of transactions in the same
year that the transactions enter into the determination of income,
regardless of when the transactions are recognized for tax purposes. Tax
credits are recorded in the year realized. Since the Company has not yet
realized income as of the date of this report, no provision for income
taxes has been made.
In February, 1992, the Financial Accounting Standards Board adopted
Statement of Financial Accounting Standards No. 109, Accounting for
Income Taxes, which supersedes substantially all existing authoritative
literature for accounting for income taxes and requires deferred tax
balances to be adjusted to reflect the tax rates in effect when those
amounts are expected to become payable or refundable. The Statement is
required to be applied in the Company's financial statements for the
fiscal year commencing January 1, 1993. The Company has elected to
recognize the cumulative effect of the change in 1993. At December 31,
1995 a deferred tax asset has not been recorded due to the Company's
lack of operations to provide income to use the net operating loss
carryover of $2,000 which will expire December 31, 2006.
NOTE 2: DEVELOPMENT STAGE COMPANY
The Company was incorporated under the laws of the State of Utah on
May 2, 1986, and changed its state of domicile to Nevada on December 30,
1993, and has been in the development stage since incorporation.
NOTE 3: CAPITALIZATION
On the date of incorporation, the Company sold 1,000,000 shares of its
common stock to Capital General Corporation for $2,000 cash for an
average consideration of $.002 per share. On December 1, 1995, the
Company sold an additional 100,000 shares of its common stock to Capital
General Corporation for $50,000 cash for an average consideration of
$.50 per share. The Company's authorized stock includes 100,000,000
shares of common stock at $.001 par value.
NOTE 4: RELATED PARTY TRANSACTIONS
The Company neither owns or leases any real property. Office services
are provided, without charge, by Capital General Corporation. Such costs
are immaterial to the financial statements, and, accordingly, have not
been reflected therein. The officers and directors of the Company are
involved in other business activities and may, in the future, become
involved in other business opportunities. If a specific business
opportunity becomes available, such persons may face a conflict in
selecting between the Company and their other business interests. The
Company has not formulated a policy for the resolution of such
conflicts.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KOALA CAPITAL CORPORATION
Dated: August 7, 1996 s\Krista Nielson
------------------------------------------------------
Krista Nielson, President, CEO and Director
Dated: August 7, 1996 s\David R. Yeaman
------------------------------------------------------
David R. Yeaman, Secretary/Treasurer, CFO and Director
