SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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 December
31, 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 Number 33-61894-FW
EMERGING BETA CORPORATION
(Exact Name of small Business issues as specified in its Charter)
Delaware 72-1235450
(State or other Jurisdiction of I.R.S. Employer
Incorporation or Organization Identification No.)
220 Camp Street, New Orleans, Louisiana 70130
(Address of Principal Executive Offices) (Zip Code)
(504) 524-1801
(Registrant's Telephone Number, including Area Code)
Indicate by check mark whether the Registrant (i) 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 (of for such shorter period that the
Registrant was required to file such reports) and (ii) has been subject to such
filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of Common Stock, as of the latest practicable date.
Common Stock, $1.00 par value 43,600
- ---------------------------------- -------------------
Title of Class Number of Shares outstanding
at December 31, 1996
Exhibit Index - NONE.
<PAGE>
<TABLE>
<CAPTION>
EMERGING BETA CORPORATION
(A Company in the Development Stage)
BALANCE SHEETS
ASSETS
December 31, March 31,
1996 1996
<S> <C> <C>
Cash and cash equivalents $ 291,860 $ 297,673
Interest Receivable 1,551 179
Total Current Assets 293,411 297,852
Other Assets - organization costs 630 840
Total Assets $ 294,041 $ 298,692
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 1,342 $ 2,026
Total Current Liabilities 1,342 2,026
Stockholders' Equity:
Preferred Stock, $1.00 par value;
2,000,000 shares authorized;
no shares subscribed, issued
and outstanding -- --
Common Stock, $1.00 par value; 20,000,000 shares
authorized; 43,600 shares issued and outstanding 43,600 43,600
Additional Paid-in Capital 252,231 252,231
Retained Earnings (3,132) 835
Total Stockholders' Equity 292,699 296,666
Total Liabilities and Stockholders' Equity $ 294,041 $ 298,692
</TABLE>
The accompanying notes are an integral part of these
financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
EMERGING BETA CORPORATION
(A Company in the Development Stage)
STATEMENT OF OPERATIONS
FOR THE FOR THE FOR THE FOR THE
NINE MONTHS NINE MONTHS THREE MONTHS THREE MONTHS
ENDED ENDED ENDED ENDED
Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1996 Dec. 31, 1995
<S> <C> <C> <C> <C>
REVENUES -
Interest Income $ 11,919 15,562 4,034 $ 4,413
COSTS AND EXPENSES
General and Administrative 15,886 19,241 5,342 8,818
TOTAL COSTS AND EXPENSES 15,886 19,241 5,342 8,818
NET INCOME (LOSS) BEFORE TAX (3,967) (3,679) (1,308) (4,405)
CURRENT TAX PROVISIONS
NET INCOME (LOSS) (3,967) (3,679) (1,308) (4,405)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 43,600 43,600 43,600 43,600
INCOME (LOSS) PER
COMMON SHARE $ (.09) $ (.08) $ (.03) $ (.10)
</TABLE>
The accompanying notes are an integral part of
these financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
EMERGING BETA CORPORATION
(A Company in the Development Stage)
STATEMENT OF CASH FLOWS
FOR THE FOR THE FOR THE FOR THE
NINE MONTHS NINE MONTHS THREE MONTHS THREE MONTHS
ENDED ENDED ENDED ENDED
Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1996 Dec. 31, 1995
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net Income (Loss) $ (3,967) $ (3,679) $ (1,308) $ (4,405)
Add item not affecting
cash-amortization 210 70
Adjustments to reconcile
net income (loss)
to net cash used by
operating activities
(Increase) decrease
receivables (1,372) (1,372)
Increase (decrease) in
accounts payable (684) (750) 1,342
Increase (decrease) in
due to related party
Increase (decrease) in
taxes payable (864)
(Increase) decrease due
from related party
Increase (decrease) due
to stockholder
CASH (USED) PROVIDED
BY OPERATING ACTIVITIES (5,813) (5,293) (1,268) (4,405)
CASH FLOWS FROM
FINANCING ACTIVITIES
Issuance of common stock
Increase in Deferred
Offering Costs
CASH PROVIDED (USED
BY FINANCING ACTIVITIES
INCREASE (DECREASE) IN CASH (5,813) (5,293) (1,268) (4,405)
CASH BALANCE - BEGINNING 297,673 301,608 293,128 300,720
CASH BALANCE - ENDING $ 291,860 $ 296,315 $ 291,860 $ 296,315
</TABLE>
The accompanying notes are an integral part of
these financial statements.
4
<PAGE>
EMERGING BETA CORPORATION
(A Company in the Development Stage)
NOTES TO FINANCIAL STATEMENTS
(All information as of December 31, 1996 and 1995 is unaudited)
1. DESCRIPTION OF ORGANIZATION
Emerging Beta Corporation (the "Company") is considered to be in the
development stage as defined in Statement of Financial Accounting
Standards No. 7. The Company was incorporated under the laws of the State
of Delaware on February 10, 1993, for the purpose of seeking out business
opportunities, including acquisitions, that the board of directors, in
their discretion, believe to be good opportunities. The Company will be
heavily dependent on the skills, talents, and abilities of its management
to successfully implement its business plan. An affiliate of a director
is expected to be the source for most business opportunities submitted to
the Company. Due to its currently limited funds and to the fact that the
Company will only receive limited capital from a public offering, it is
likely that the Company will not be able to compete with larger and more
experienced entities for business opportunities which are lower risk and
are more attractive for such entities; business opportunities, in which
the Company ultimately participates will likely be highly risky and
speculative. Since inception, the Company's activities have been limited
to capital formation.
2. SIGNIFICANT ACCOUNTING POLICIES
Organizational costs relating to the expenses of incorporation will be
amortized on a straight-line basis over five years.
The financial statements for the three and nine months ended December 31,
1996 and 1995 are unaudited, but in the opinion of the management of the
Company, contain all adjustments, consisting of only normal recurring
accruals, necessary to present fairly the financial position at December
31, 1996, the results of operations for the three and nine months ended
December 31, 1996 and 1995 and the cash flows for the three and nine
months ended December 31, 1996 and 1995. The results of operations for
the three and nine months ended December 31, 1995 have been adjusted from
the results as previously reported to include amortization expenses.
The results of operations for the nine months ended December 31, 1996 are
not necessarily indicative of the results of operations to be expected
for the full fiscal year ending March 31, 1997.
3. RELATED PARTY TRANSACTIONS
The Company currently has informal arrangements with an affiliate of
certain officers and directors for use of office space and professional
and clerical services. Professional services, if any, are to be billed to
the Company at $60 to $100 per hour. Use of clerical services, if any,
are to be billed to the Company at $20 per hour. The Company currently
receives the use of office space free of charge. As of December 31, 1996,
no services had been billed to the Company.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL
CONDITION
The Company has not commenced operations. Expenses for the three and nine
months ended December 31, 1996 and 1995 include consulting fees of $3,750
and $11,250, respectively.
5
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS
None
Item 5. OTHER INFORMATION
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3. Certificate of Incorporation and Bylaws
3.1 Restated Certificate of Incorporation*
3.2 Bylaws*
3.3 Proposed Certificate of Amendment to the Restated Certificate
of Incorporation*
10. Material Contracts
10.1 1993 Stock Option Plan*
10.2 Form of Stock Option Agreements with Messrs. Keenan, Killeen,
Jarrell and Chaffe with Schedule of
Details*
* Incorporated by reference to such exhibit as filed with the Company's
registration statement on Form SB-2, file no. 33- 61894-FW (the "Registration
Statement") on April 29, 1993.
(b) Reports on Form 8-K: None
6
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: February 6, 1997 By: /s/ Jerry W. Jarrell
------------------
Jerry W. Jarrell
Chief
Financial
Officer
(chief
financial
officer
and
accounting
officer
and duly
authorized
officer)
7
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE
STATEMENTS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 1996
AND AS OF
DECEMBER 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000904144
<NAME> EMERGING BETA CORPORATION
<MULTIPLIER> 1
<CURRENCY> US dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Mar-31-1997
<PERIOD-START> Oct-01-1996
<PERIOD-END> Dec-31-1996
<EXCHANGE-RATE> 1
<CASH> 291,860
<SECURITIES> 0
<RECEIVABLES> 1,551
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 293,411
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 294,041
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 43,600
<OTHER-SE> 250,099
<TOTAL-LIABILITY-AND-EQUITY> 294,041
<SALES> 0
<TOTAL-REVENUES> 11,919
<CGS> 0
<TOTAL-COSTS> 15,886
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,967)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,967)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,967)
<EPS-PRIMARY> (.09)
<EPS-DILUTED> (.09)
<PAGE>
</TABLE>
