UNITED STATES
SECURITIES AND EXCHANGE COMISSION
Washington, DC 20549
FORM 10-QSB
[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1998
[ ] Transition Report pursuant to 13 or 15(d) of the Securities Exchange Act
of 1934
For the transition period from ____________ to ____________
Commission File Number 33-55254-37
NORAM GAMING AND ENTERTAINMENT, INC.
(Exact name of Small Business Issuer as specified in its charter)
Nevada 87-04853216
(State or other jurisdiction (IRS Employer
of incorporation) Identification No.)
THREE CANTON SQUARE
TOLEDO, OHIO 43624
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (419) 255-1515
Indicate by a check mark whether the issuer (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 issuer was
required to file such report(s), 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 issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding as of March 31, 1998
- ------------------------------------ --------------------------------
$.001 par value Class A Common Stock 14,522,902 shares
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
BASIS OF PRESENTATION
General
The accompanying unaudited financial statements have been prepared in
accordance with the instructions to Form 10-QSB and, therefore, do no include
all information and footnotes necessary for a complete presentation of financial
position, results of operations, cash flows, and stockholders' deficit 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 three
months ended March 31, 1998, are not necessarily indicative of the results that
can be expected for the year ending December 31, 1998.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1998, the Company had $21,511 cash in the bank. There is no
certainty that the Company can meet its current financial commitments.
The Company is a development stage Company engaged in the leasing of
facilities to charities that conduct bingo operations.
Net loss was $139,126 for the three months ended March 31, 1998 compared
with net loss of $504,661 for the same period in 1997. Net revenue was $196,673
for the three months ended March 31, 1998 compared with $334,912 for the same
period in 1997 for a decrease of 41%. Cost of sales for the three months ended
March 31, 1998 was $44,858 compared to $61,574 for the same period in 1997 for a
decrease of 34%.
General and administrative expenses were $218,793 for the three months
ended March 31, 1998 compared to $206,409 for the same period in 1997 for an
increase of 6%. Depreciation and amortization expense was $6,347 for the three
months ended March 31, 1998 compared to $7,722 for the same period in 1997 for a
decrease of 18%. Interest expense for the three months ended March 31, 1998 was
$7,180 compared to $4,300 for the same period in 1997 for an increase of 40%.
During the three months ended March 31, 1998 the Company issued 266,770
shares of its common stock for consulting services valued at $72,148 in
connection with the development of new overseas markets for the Company's
services.
For the three months ended March 31, 1998 the Company had a net loss of
$72,148 and its subsidiary had a net loss of $66,978 for consolidated net loss
of $139,126.
At March 31, 1998 the Company's assets were $9,000 and the subsidiary's
assets were $530,557 for total consolidated assets of $539,557. Consolidated
liabilities at March 31, 1998 were $1,231,912.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
none
<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.
NORAM GAMING AND ENTERTAINMENT, INC.
DATED: October 12, 1998 /S/ George C. Zilba
---------------------------------------
George C. Zilba, President and Director
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NORAM GAMING AND ENTERTAINMENT, INC. AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED BALANCE SHEET
March 31, 1998
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $ 21,511
Loan Receivable 474,889
Inventory 24,785
Prepaid Expenses 9,370
-----------
Total Current Assets $ 530,557
PROPERTY AND EQUIPMENT $ 175,474
Less: Accumulated Depreciation (80,646)
-----------
Net Property and Equipment 94,828
OTHER ASSETS
Security Deposits $ 11,951
Leasehold Acq. Costs - Brandon 60,000
Accum. Amort. - Brandon (28,333)
Total Other Assets 43,618
-----------
TOTAL ASSETS $ 759,519
===========
LIABILITIES & STOCKHOLDERS EQUITY
CURRENT LIABILITY
Loans Payable $ 1,047,444
Accounts Payable 37,027
Accrued Expenses 137,893
Sales & Payroll Taxes 9,552
-----------
Total Current Liabilities $ 1,231,912
STOCKHOLDERS' EQUITY
Capital Stock 14,684
Paid In Capital 1,214,044
Retained Earnings/(Deficit) (1,562,144)
Current Loss (139,126)
-----------
Total Stockholders' Equity (472,541)
-----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 759,519
===========
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NORAM GAMING AND ENTERTAINMENT, INC. AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Net Sales $ 196,673
Cost of Sales 44,858
---------
Gross Profit 151,814
General and Administrative Expenses $ 205,266
Depreciation and amortization 6,347
Interest Expense 7,180
---------
218,793
---------
Net Income (Loss) Before Other 66,978
Stock issued for consulting services 72,148
---------
Net Income (Loss) Before Income Tax (139,126)
Income Tax (Benefit)
---------
Net Income (Loss) $(139,129)
=========
Net Income (Loss) per weighted average share
Weighted average number of common shares used to
compute Net Income (Loss) per weighted average share
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NORAM GAMING AND ENTERTAINMENT, INC. AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE QUARTER ENDING MARCH 31, 1998
(Unaudited)
OPERATING ACTIVITIES
Net Loss (66,978.51)
Adjustments to reconcile net loss to cash 44,858.25
----------
provided (used) by operating activities 151,814.99
Stock issued for expenses 72,148.00
Depreciation and amortization 6,347.47
Changes in assets and liabilities
Inventory 176.44
Prepaid Expenses (212.00)
Accounts payable (14,219.34)
Accrued expenses 5,180.00
Tax payable 1,733.97
NET CASH PROVIDED (USED) ---------
BY OPERATING ACTIVITIES (21,821.97)
INVESTING ACTIVITIES
Purchase of property and equipment 0.00
Security deposits
Investments
---------
NET CASH PROVIDED (USED)
BY INVESTING ACTIVITIES 0.00
FINANCING ACTIVITIES
Proceed from sale of common stock 35,000.00
Loan proceeds 30,460.00
Loan repayments (31,111.72)
---------
NET CASH PROVIDED (USED)
BY FINANCING ACTIVITIES 34,348.28
---------
INCREASE IN CASH AND CASH
EQUIVALENTS 12,526.31
Cash and cash equivalents at 16,500.00
beginning of period 8,985.08
CASH AND CASH EQUIVALENTS ---------
AT MARCH 31, 1998 21,511.39
=========
SUPPLEMENTAL INFORMATION
Cash paid for interest 240.00
This schedule contains financial information extracted form NorAm Gaming and
Entertainment, Inc. and Subsidiary March 31, 1998 financial statements and is
qualified in it entirety by reference to such financial statements.
<PAGE>
NORAM GAMING AND ENTERTAINMENT, INC. AND SUBSIDIARY
(A Development Stage Company)
CONSOLIDATED STATES OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
(Unaudited)
Common Stock
Par Value $.001
Shares Amount
---------- ----------
Balances at 3/14/90 (Date of inception) 0 $ 0
Issuance of common stock (restricted)
at $.001 per share at 3/14/90 1,000,000 1,000
Net Income for period ---------- ----------
Balances at 12/31/90 1,000,000 1,000
Cash received for stock subscription
Net loss for year ---------- ----------
Balances at 12/31/91 1,000,000 1,000
Net Income for year ---------- ----------
Balances at 12/31/92 1,000,000 1,000
Net Income for year ---------- ----------
Balances at 12/31/93 1,000,000 1,000
Issuance of common stock (restricted)
for subsidiary at $.001 per share 10,000,000 10,000
Net Income for year ---------- ----------
Balances at 12/31/94 11,000,000 11,000
Sale of common stock (Regulation S)
at $.10 per share at 8/30/95 1,500,000 1,500
Net Income for year ---------- ----------
Balances at 12/31/95 12,500,000 12,500
Issuance of common stock (restricted)
at $.001 per share for services at 7/9/96 140,000 140
Net Income for year ---------- ----------
Balances at 12/31/96 12,640,000 12,640
---------- ----------
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<TABLE>
<S> <C> <C> <C>
Balances at 12/31/97 14,184,800 14,185 1,123
Issuance of common stock for services at
.35 per share 1/12/98 37,500 37.5
.35 per share 1/16/98 30,000 30
.35 per share 1/16/98 25,000 25
.36 per share 2/3/98 31,470 31.47
.35 per share 2/13/98 40,000 40
.23 per share 2/25/98 62,800 62.80
.30 per share 3/20/98 40,000 40
---------- ------
Balances at 3/31/98 14,451,570 266.77
</TABLE>
