UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 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: 0-6683
Sonoma International
(Exact name of registrant as specified in its charter)
Nevada 94-0880052
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation organization) No.)
901 Tahquitz, Ste B201, Palm Springs CA 92261
(Address of principal executive offices) (Zip Code)
(619) 320-3340
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
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. [ ] Yes [ X ] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date: 60,000,000
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
SONOMA INTERNATIONAL
(A Nevada Corporation)
BALANCE SHEET
AS OF
June 30, March 31
1995 1995
Total Assets $ 0 $ 0
============ ===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities
Accounts Payable $ 30,800 $ 0
Accrued Expenses 252,815 266,932
Accrued Income Taxes 3,200 4,000
Total Current Liabilities 286,815 270,932
Long Term Debt 711,837 216,531
Total Liabilities 998,652 487,463
Stockholder's Equity
Common Stock, $.001 par
value, authorized 60,000,000
shares, issued and outstanding
25,579,850 shares at June 30, 1995
and 60,000,000 at March 31, 1996 25,580 60,000
Additional Paid-In Capital 4,252,116 4,252,116
Due to Stockholder 0 (700)
Accumulated Deficit (5,276,348) (4,798,879)
Total Stockholder's Equity (Deficit) (998,652) ( 487,463)
Total Liabilities and Stockholder's Equity $ 0 $ 0
============ ============
The Accompanying Notes are an Integral Part of These Statements
<PAGE>
SONOMA INTERNATIONAL
(A Nevada Corporation)
STATEMENT OF INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 1995
3 Months Ended 9 Months Ended
March 31, 1995 March 31, 1995
Revenue $ 0 $ 0
Operating Expenses
Consulting Fees 18,750 56,250
Income (Loss) From Operations (18,750) (56,250)
Other (Expenses)
Interest ( 8,560) (25,680)
Net Loss Before Provision
for Income Taxes (27,310) (81,930)
Provision for Income Taxes 0 800
Net Loss $ (27,310) $ 82,730)
============ ===========
Earnings Per Share
Net Loss $ 0.00 $ 0.00
============ ==========
The Accompanying Notes are an Integral Part of These Statements
<PAGE>
SONOMA INTERNATIONAL
(A Nevada Corporation)
STATEMENT OF INCOME
FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 1995
3 Months Ended 9 Months Ended
March 31, 1995 March 31, 1995
Revenue $ 0 $ 0
Operating Expenses 0 0
Income (Loss) From Operations 0 0
Other (Expenses)
Interest ( 8,031) (24,650)
Income (Loss) Before Provision
for Income Taxes ( 8,031) (24,650)
Provision for Income Taxes 0 (800)
Income (Loss) Before Extraordinary
Items ( 8,031) (25,450)
Extraordinary Item
Gain on Extinguishment of Debt 0
502,919
Net Income (Loss) $ (8,031) $
477,469
============ ============
Earnings Per Share
Income (Loss) Before
Extraordinary Item $ 0.01
============
Net Income (Loss) $ 0.00 $ 0.01
============ =============
The Accompanying Notes are an Integral Part of These Statements
<PAGE>
SONOMA INTERNATIONAL
(A Nevada Corporation)
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 1996
3 Months Ended 9 Months Ended
March 31, 1995 March 31, 1995
Cash Provided by Operations $ 0 $ 0
Cash Beginning 0 0
Cash Ending $ 0 $ 0
Supplemental Disclosures of Cash Flows Information
Noncash Financing Activities:
Stock Issued in Exchange
for Relief of Debt $ 0 $ 34,420
============ ============
The Accompanying Notes are an Integral Part of These Statements
<PAGE>
SONOMA INTERNATIONAL
(A Nevada Corporation)
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS AND NINE MONTHS ENDED MARCH 31, 1995
3 Months Ended 9 Months Ended
March 31, 1995 March 31, 1995
Cash Provided by Operations $ 0 $ 0
Cash Beginning 0 0
Cash Ending $ 0 $ 0
============ ===========
The Accompanying Notes are an Integral Part of These Statements
<PAGE>
SONOMA INTERNATIONAL
(A Nevada Corporation)
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE NINE MONTHS ENDED MARCH 31, 1996
Common Stock Additional Due to
Number of Paid-In Stock- Accumulated
Shares Amount Capital holder Deficit
Balance
June 30, 1995 25,579,850 $ 25,580 $4,252,116 $ 0 $(5,276,348)
Net Income for
Nine Months Ended
March 31, 1996 477,469
Stock Issued for
Relief of Debt 34,420,150 34,420 (700)
Balance
March 31, 1996 60,000,000 $ 60,000 $4,252,116 $(700)
4,798,879)
======== ======= ======== ===== =========
The Accompanying Notes are an Integral Part of These Statements
<PAGE>
SONOMA INTERNATIONAL
(A Nevada Corporation)
NOTES TO FINANCIAL STATEMENTS
Note 1 - Adjustments
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals ) considered necessary for a fair
presentation have been included
Note - 2 Extraordinary Item
For the nine month period ended March 31, 1996, the Company issued common
stock to various individuals and entities for settlements of debts owed to
them. Additionally, shareholders of the Company transferred unrestricted stock
to settle outstanding debts of Sonoma International. The Company's net income
for the nine months ended march 31, 1996 included $502,919 of extraordinary
income, net of tax, realized from settling its debts of %536,639 in exchange
for 33,720,150 newly issued common shares of Sonoma International and
additional shares of already issued common stock of the Company.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
For the quarter ended December 31, 1995, the registrant completed its
program of issuing stock for extinction of debt. The expenses for the quarter
ended March 31, 1996, were, consequently, limited to interest accrued for the
debt that remained. The registrant's remaining liabilities will be
extinguished upon the commencement of trading for the stock. The extinction
of debt was income, an amount equal to $502,919 in the three nine ended March
31, 1996, and is reflected as an extraordinary item. Since the amount of this
extraordinary item was greater than the accrued interest referred to above,
the registrant had net income in excess of $477,469 for both the nine month
period ended March 31, 1996.
The registrant is now essentially a dormant company, not having
operations and its liabilities essentially forgiven once trading commences in
the stock. <PAGE>
PART II - OTHER INFORMATION
None
<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.
Sonoma International
May 17, 1996 /s/ Harry W. Hendersen
Harry W. Hendersen, President and Chief
Accounting Officer
