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 September
30, 1997
[ ] 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 September 30, 1997
Exhibit Index - NONE.
<PAGE>
<TABLE>
<CAPTION>
EMERGING BETA CORPORATION
(A Company in the Development Stage)
BALANCE SHEETS
ASSETS
September 30, March 31,
1997 1997
Current Assets
<S> <C> <C>
Cash and cash equivalents $ 292,308 $ 290,600
Interest Receivable 884 2,087
Total Current Assets 293,192 292,687
Other Assets - organization costs 420 560
Total Assets $ 293,612 $ 293,247
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ $ 1,050
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
Accumulated Deficit (2,219) (3,634)
Total Stockholders' Equity 293,612 292,197
Total Liabilities and Stockholders' Equity $ 293,612 $ 293,247
</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
SIX MONTHS SIX MONTHS THREE MONTHS THREE MONTHS
ENDED ENDED ENDED ENDED
Sept. 30, 1997 Sept. 30, 1996 Sept. 30, 1997 Sept. 30, 1996
REVENUES -
<S> <C> <C> <C> <C>
Interest Income $ 8,207 $ 7,885 $ 4,178 $ 3,997
COSTS AND EXPENSES
General and Administrative 6,792 10,544 3,008 5,535
TOTAL COSTS AND EXPENSES 6,792 10,544 3,008 5,535
NET INCOME (LOSS) 1,415 (2,659) 1,170 (1,538)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 43,600 43,600 43,600 43,600
INCOME (LOSS) PER
COMMON SHARE $ .03 $ (.06) $ .03 $ (.04)
</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
SIX MONTHS SIX MONTHS THREE MONTHS THREE MONTHS
ENDED ENDED ENDED ENDED
Sept. 30, 1997 Sept. 30, 1996 Sept. 30, 1997 Sept. 30, 1996
CASH FLOWS FROM
OPERATING ACTIVITIES
<S> <C> <C> <C> <C>
Net Income (Loss) $ 1,415 $ (2,659) $ 1,170 $ (1,538)
Add item not affecting
cash-amortization 140 140 70 70
Adjustments to reconcile
net income (loss)
to net cash used by
operating activities
(Increase) decrease
interest receivable 1,203 (884)
Increase (decrease) in
accounts payable (1,050) (2,026)
CASH (USED) PROVIDED
BY OPERATING ACTIVITIES 1,708 (4,545) 356 (1,468)
INCREASE (DECREASE) IN CASH 1,708 (4,545) 356 (1,468)
CASH BALANCE - BEGINNING 290,600 297,673 291,952 294,596
CASH BALANCE - ENDING $ 292,308 $ 293,128 $ 292,308 $ 293,128
</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 September 30, 1997 and 1996 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 six months ended September 30,
1997 and 1996 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 September
30, 1997, the results of operations for the three and six months ended
September 30, 1997 and 1996 and the cash flows for the three and six
months ended September 30, 1997 and 1996.
The results of operations for the three months ended September 30, 1997
are not necessarily indicative of the results of operations to be
expected for the full fiscal year ending March 31, 1998.
3. RELATED PARTY TRANSACTIONS
The Company pays a consulting fee to the Vice President of Finance for
financial services which includes office space and clerical services.
Beginning in January 1995, and through December 1996, the Consulting Fee
was $1,250 per month and during January to September 1997 the Consulting
Fee was $750 per month (see Item 2 below).
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS
AND FINANCIAL
CONDITION
The Company has commenced no operations and has no activities. General
and Administrative expenses for the three and six months ended September
30, 1997 include $2,250 and $4,500 and 1996 include $3,750 and $7,500 in
consulting fees 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: November 11,1997 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 SIX MONTHS ENDED SEPTEMBER 30, 1997 AND
AS OF SEPTEMBER 30, 1997 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> 6-MOS
<FISCAL-YEAR-END> Mar-31-1998
<PERIOD-START> Jun-01-1997
<PERIOD-END> Sep-30-1997
<EXCHANGE-RATE> 1
<CASH> 292,308
<SECURITIES> 0
<RECEIVABLES> 884
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 293,192
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 293,612
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 43,600
<OTHER-SE> 250,012
<TOTAL-LIABILITY-AND-EQUITY> 293,612
<SALES> 0
<TOTAL-REVENUES> 8,207
<CGS> 0
<TOTAL-COSTS> 6,792
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,415
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,415
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,415
<EPS-PRIMARY> .03
<EPS-DILUTED> .03
<PAGE>
</TABLE>
