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, 1998
[ ] 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 33-61890-FW
EMERGING GAMMA CORPORATION
(Exact Name of small business issuer as specified in its Charter)
Delaware 72-1235452
(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, 1998
Exhibit Index - NONE.
<PAGE>
<TABLE>
<CAPTION>
EMERGING GAMMA CORPORATION
BALANCE SHEETS
ASSETS
September 30, March 31,
1998 1998
Current Assets
<S> <C> <C>
Cash and cash equivalents $ 295,721 $ 295,864
Interest Receivable 720 --
Total Current Assets 296,441 295,864
Other Assets - organization costs 140 280
Total Assets $ 296,581 $ 296,144
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts Payable $ 440 $ 1,347
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 Earnings (Deficit) (310) (1,034)
Total Stockholders' Equity 296,141 294,797
Total Liabilities and Stockholders' Equity $ 296,581 $ 296,144
</TABLE>
The accompanying notes are an integral part of these
financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
EMERGING GAMMA CORPORATION
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, 1998 Sept. 30, 1997 Sept. 30, 1998 Sept. 30, 1997
REVENUES -
<S> <C> <C> <C> <C>
Interest Income $ 8,072 $ 8,207 $ 4,010 $ 4,179
COSTS AND EXPENSES
General and Administrative 6,728 6,793 3,054 3,009
TOTAL COSTS AND EXPENSES 6,728 6,793 3,054 3,009
NET INCOME (LOSS) 1,344 1,414 956 1,170
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 43,600 43,600 43,600 43,600
INCOME (LOSS) PER
COMMON SHARE .03 .03 .02 .03
</TABLE>
The accompanying notes are an integral part of
these financial statements.
3
<PAGE>
<TABLE>
<CAPTION>
EMERGING GAMMA CORPORATION
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, 1998 Sept. 30, 1997 Sept. 30, 1998 Sept. 30, 1997
CASH FLOWS FROM
OPERATING ACTIVITIES
<S> <C> <C> <C> <C>
Net Income (Loss) $ 1,344 $ 1,414 $ 956 $ 1,170
Add item not requiring
the use of cash-
amortization 140 140 70 70
Adjustments to
reconcile net income
(loss) to net cash
used by operating
activities
(Increase) decrease
interest receivable (720) 1,203 450 (884)
Increase (decrease) in
accounts payable (907) (1,050) (1,200)
CASH (USED) PROVIDED
BY OPERATING ACTIVITIES (143) 1,707 276 356
INCREASE (DECREASE) IN CASH (143) 1,707 276 356
CASH BALANCE - BEGINNING 295,864 290,956 295,445 292,307
CASH BALANCE - ENDING $ 295,721 $ 292,663 $ 295,721 $ 292,663
</TABLE>
The accompanying notes are an integral part of
these financial statements.
4
<PAGE>
EMERGING GAMMA CORPORATION
NOTES TO FINANCIAL STATEMENTS
(All information as of September 30, 1998 and 1997 is unaudited)
1. DESCRIPTION OF ORGANIZATION
Emerging Gamma Corporation (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,
1998 and 1997 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, 1998, the results of operations for the three and six months ended
September 30, 1998 and 1997 and the cash flows for the three and six
months ended September 30, 1998 and 1997.
The results of operations for the six months ended September 30, 1998 are
not necessarily indicative of the results of operations to be expected
for the full fiscal year ending March 31, 1999.
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. In
the six months ended September 30, 1998, $4,500 in consulting fees (see
Item 2 below) was billed to the Company.
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, 1998 include $2,250 and $4,500 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- 61890-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 , 1998 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
unaudited financial statements
for the six months ended September 30, 1998 and is qualified in its entirety by
reference to such financial
statements.
</LEGEND>
<CIK> 0000904146
<NAME> EMERGING GAMMA CORPORATION
<MULTIPLIER> 1
<CURRENCY> US dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Mar-31-1999
<PERIOD-START> Apr-01-1998
<PERIOD-END> Sep-30-1998
<EXCHANGE-RATE> 1
<CASH> 295,721
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 296,441
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 296,581
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 43,600
<OTHER-SE> 251,921
<TOTAL-LIABILITY-AND-EQUITY> 296,581
<SALES> 0
<TOTAL-REVENUES> 8,072
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6,728
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,334
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,334
<EPS-PRIMARY> .03
<EPS-DILUTED> .03
</TABLE>
