FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1992
Commission file number 0-13597
ASDAR GROUP
(Exact name of registrant as specified in its charter)
Nevada 88-0195105
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2124 Glasgow Avenue
Cardiff, California 92007
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (619) 792-7300
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.001 par value
(Title of Class)
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, and (2) has been
subject to such filing requirements for the past 90 days.
Yes No X
------ ------
As of March 30, 1993 (the required filing date of this report),
although the ("Bulletin Board"), Registrant's Common Stock was quoted on
the NASDAQ, the Common Stock was not the subject of any meaningful trading
in the over-the-counter market. Accordingly, the Registrant does not
believe there is a determinable market value for its outstanding shares of
Common Stock as of such date. The number of shares outstanding of the
Registrant's $.001 par value Common Stock as of March 30, 1993 was
49,949,915.
Documents Incorporated by Reference: None
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K.
<PAGE>
PART I
THIS REPORT ON FORM 10-K IS FOR THE FISCAL YEAR ENDED DECEMBER 31, 1992,
HOWEVER THE REPORT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION IN JUNE 1997. TO THE EXTENT PRACTICABLE, THE DISCLOSURE
CONTAINED HEREIN HAS BEEN PREPARED TO SPEAK AS OF DECEMBER 31, 1992, THE
REQUIRED FILING DATE OF THE REPORT.
Item 1. BUSINESS.
(a) GENERAL DEVELOPMENT OF BUSINESS
ASDAR Group (the "Company") was formed under the laws of the State of
Nevada on November 29, 1983 under the name Venture Group, Inc. In April
1985, the Company conducted an initial public offering of its securities
pursuant to a Registration Statement on Form S-18.
In 1987, the Company announced its Registration Distribution Program
("RDP"). The RDP was designed to assist privately-owned companies in
becoming publicly-held. In exchange for financial consulting and other
services, the Company's RDP clients issued to the Company shares of common
stock and common stock purchase warrants, some or all of which were to be
subsequently registered by the client with the Securities and Exchange
Commission ("SEC") in order to facilitate the public distribution of those
securities by the Company to its shareholders. Subsequently, the client
would attempt to raise equity capital from the exercise of the common stock
purchase warrants.
In 1988, the SEC and the National Association of Securities Dealers,
Inc. ("NASD") reviewed the RDP and insisted on certain changes to the
program which reduced the overall benefits and incentives to the Company.
As a result of the SEC and NASD review, the Company determined it was
impracticable to continue the RDP and discontinued all efforts in this
business venture in 1990.
From 1990 to the filing of this report in March 1997, the Company has
conducted no business operations other than the pursuit of a reverse
acquisition or merger with an active business operation interested in
restructuring itself as a publicly-held company and the defense of certain
federal litigation.
(b) FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS.
Inapplicable.
(c) NARRATIVE DESCRIPTION OF BUSINESS.
See Item 1(a) above. Since 1990, the Company has had no employees
other than the members of management identified in Part III, Item 10 of
this report.
(d) FINANCIAL INFORMATION ABOUT FOREIGN AND DOMESTIC OPERATIONS AND
EXPORT SALES.
Inapplicable.
Item 2. PROPERTIES.
The Company's offices are presently located in the residence of its
Secretary. The Company's Secretary does not charge the Company any rent or
overhead for its use of his residence or utilities.
Item 3. LEGAL PROCEEDINGS.
As of the date of this report, the Company is a defendant in a Class
Action Lawsuit alleging Securities fraud by Phillip Sindler, it former
President and the Company.
In 1995, the Plaintiffs in that Action obtained a judgement against
the Company in the amount of $2,500,000. In June 1996, the Company's
Secretary negotiated a Settlement whereby the Plaintiffs released the
Company in consideration of the payment of $150,000 to the class and the
issuance of 50,000 (post 1 for 100 reverse stock split) shares to the
Plaintiff. In August 1996, this transaction was approved by San Diego
Superior Court Judge Terry O'Rourke and was finalized in March 1997. As a
result of this settlement the Company no longer has a judgement against it.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Inapplicable.
PART II
Item 5. MARKET FOR THE COMPANY'S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS.
(a) MARKET INFORMATION.
Management of the Company believes that its Common Stock has not
been traded in any meaningful amount from, at least, 1990 to the date of
this report.
(b) HOLDERS.
The approximate number of holders of the outstanding shares of
the Company's Common Stock as of December 31, 1996 is 1,500.
(c) DIVIDENDS.
The Company has never declared or paid any dividends on its
common stock. The Company does not intend to declare or pay any dividends
in the foreseeable future.
Item 6. SELECTED FINANCIAL DATA.
Inapplicable. See Item 8 - Financial Statements and Supplementary
Data.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
The Company was formed under the laws of the State of Nevada on
November 29, 1983 under the name Venture Group, Inc. In April 1985, the
Company conducted an initial public offering of its securities pursuant to
a Registration Statement on Form S-18.
In 1987, the Company announced its Registration Distribution Program
("RDP"). The RDP was designed to assist privately-owned companies in
becoming publicly-held. In exchange for financial consulting and other
services, the Company's RDP clients issued to the Company shares of common
stock and common stock purchase warrants, some or all of which were to be
subsequently registered by the client with the Securities and Exchange
Commission ("SEC") in order to facilitate the public distribution of those
securities by the Company to its shareholders. Subsequently, the client
would attempt to raise equity capital from the exercise of the common stock
purchase warrants.
In 1988, the SEC and the National Association of Securities Dealers,
Inc. ("NASD") reviewed the RDP and insisted on certain changes to the
program which reduced the overall benefits and incentives to the Company.
As a result of the SEC and NASD review, the Company determined it was
impracticable to continue the RDP and discontinued all efforts in his
business venture in 1990.
From 1990 to the filing of this report in October 1996, the Company
has conducted no business operations other than the pursuit of a reverse
acquisition or merger with an active business operation interested in
restructuring itself as a publicly-held company. In 1992, the Company
attempted to acquire the assets and operations of Royal Hill Resources
Corporation ("Royal Hill"). This acquisition failed when management of the
Registrant learned that Royal Hill had improperly accounted for its assets.
In the last half of 1992, the Company attempted to acquire certain theme
restaurants in Las Vegas, Nevada. These acquisitions never reached
fruitition and were abandoned in January 1993.
Item 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.
INDEX TO FINANCIAL STATEMENTS
Page
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . .F-1
Balance Sheets as of December 31, 1993 and 1992. . . . . . . . . . . . .F-2
Statements of Operations for the years ended December 31, 1993, 1992 and
1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F-3
Statements of Changes in Stockholders' Equity for the years ended
December 31, 1993, 1992 and 1991 . . . . . . . . . . . . . . . . . . .F-4
Statements of Cash Flows for the years ended December 31, 1993, 1992 and
1991 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F-6
Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . .F-7
Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
Inapplicable.
PART III
Item 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT.
(a)(b) IDENTIFICATION OF DIRECTORS AND EXECUTIVE OFFICERS.
The officers and directors of the Company are as follows:
<TABLE>
<CAPTION>
Name Age Position
-------------------- ----- -------------------
<S> <C> <C>
Nicholas F. Coscia 40 Secretary, Director
J. Gregory Unruh 44 President, Director
</TABLE>
All directors of the Company hold office until the next annual meeting
or until their successors have been elected and qualified. All officers
serve at the discretion of the board of directors.
(c) IDENTIFICATION OF CERTAIN SIGNIFICANT EMPLOYEES.
Inapplicable.
(d) FAMILY RELATIONSHIPS.
Inapplicable.
(e) BUSINESS EXPERIENCE.
Mr. Coscia has served as Secretary since 1989. Mr. Coscia
is a licensed attorney practicing in the San Diego, California area.
Mr. Unruh has served as President since 1989 and served as
Chief Financial Officer of the Company from 1989 to November 1995.
(f) INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS.
Inapplicable.
(g) PROMOTERS AND CONTROL PERSONS.
Inapplicable.
(h) COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT.
During the fiscal year ended December 31, 1992, there were
no Forms 3, 4 and 5 filed with the Securities and Exchange Commission
pursuant to Section 16 of the Securities Exchange Act of 1934 by management
or any beneficial owner of more than ten percent (10%) of the Company's
Common Stock.
Item 11. EXECUTIVE COMPENSATION.
(a)-(f) and (h)-(l) GENERAL.
Mr. Coscia and his law firm have accrued certain
legal fees in the calendar year 1992.
(g) COMPENSATION OF DIRECTORS.
Directors of the Company receive no compensation for their
services as directors.
Item 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
(a)-(b) SECURITY OWNERSHIP.
The following table sets forth information as of December
31, 1992, with respect to the ownership of the Company's Common Stock by
each person known by the Company to be the beneficial owner of more than
five percent (5%) of the Company's Common Stock, by each director and by
all officers and directors as a group.
<TABLE>
<CAPTION>
NAME AND ADDRESS OF AMOUNT OF SHARES (2) % OF OUTSTANDING
BENEFICIAL HOLDER BENEFICIALLY OWNED COMMON STOCK
- -------------------- -------------------- -----------------
<S> <C> <C>
Nicholas F. Coscia 7,614,800 (1) 13.5%
2124 Glasgow Avenue
Cardiff, CA. 92007
Knightsridge Publishing
Company 3,000,000 6.0%
10513 West Pico Boulevard
Los Angeles, CA. 90064
All directors and officer 7,614,800 (1) 13.5%
as a group (2 persons)
</TABLE>
(1) Includes 840,000 shares over which Mr. Coscia has voting power
for which he disclaims beneficial ownership.
(2) The Company has determined by examining stock transfer agent
records that Messrs. Unruh and Rybar have apparently sold or transferred
all shares previously held by them as reported in the Company's 8-K dated
December 31, 1991.
(c) CHANGES IN CONTROL.
Inapplicable.
Item 13. CERTAIN RESTRICTIONS AND RELATED TRANSACTIONS.
Inapplicable.
PART IV
Item 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
(a)(1) LIST OF FINANCIAL STATEMENTS FILED AS PART OF THIS REPORT.
Independent Auditors' Reports
Balance Sheets as of December 31, 1993 and 1992
Statements of Operations for the years ended
December 31, 1993, 1992 and 1991
Statements of Changes in Stockholders' Equity for
the years ended December 31, 1993, 1992 and 1991
Statements of Cash Flows for the years ended
December 31, 1993, 1992 and 1991
Notes to Financial Statements
Exhibit 23.01 Consent of Independent Auditor
Exhibit 27 Financial Data Schedule
(a)(2) LIST OF FINANCIAL STATEMENT SCHEDULES FILED AS A PART OF
THIS REPORT.
Inapplicable.
<PAGE>
(a)(3) EXHIBITS.
3.1 Second Amended and Restated Articles of Incorporation, **
incorporated by reference to Exhibit 3 (a) to the Company's
Annual Report on Form 10-K for the fiscal year ended December
31, 1984 ("1984 Form 10-K"), Commission File No. 0-13577.
3.2 Certificate of Amendment to Articles of Incorporation, **
incorporated by reference to Exhibit 3 (a) (1) of the Company's
annual report on Form 10-K for the fiscal year ended December 31,
1985, Commission File No. 0-13577.
3.3 Certificate of Amendment to the Articles of Incorporation, dated **
December 10, 1987.
3.4 Bylaws, incorporated by reference to Exhibit 3 (b) to the **
Company's 1984 Form 10-K.
3.5 Amendment to Bylaws, incorporated by Reference to Exhibit 3.4
to the Company's annual report on Form 10-K for the fiscal year
ended December 31, 1986.
3.6 Amendment to Bylaws and Certificate of Secretary, dated **
November 9, 1987.
9.1 Agreement dated December 31, 1987, by and among ASDAR **
Corporation, Multnomah Capital Corporation and James L.
Williams, incorporated by reference to the Exhibit to Form BD
filed by Hamilton, Williams, dated March 7, 1988.
10.1 Venture Group, Inc., Employee Incentive Stock Option Plan **
(1984), incorporated by reference to Exhibit 10a) to the
Company's 1984 Form 10-K.
10.2 Venture Group, Inc. Directors' Warrants Plan, incorporated by **
reference to Exhibit 10(b) to the Company's 1984 Form 10-K.
10.3 Indemnification Agreement dated January 1, 988 between ASDAR **
Group and Phillip S. Sindler.
10.4 Letter agreement dated January 19, 1987 incorporated by **
reference to the Exhibit to the Schedule 13D filed by Mr.
Williams on February 11, 1987.
10.5 Agreement of Sale dated November 30, 1987, between Multnomah **
Capital Corporation and Consolidated Securities Corporation,
incorporated by reference to Item 2 to the Company's current
report on Form 8-K filed on November 30, 1987.
10.6 Plan and Agreement of Merger dated November 12, 1987, between **
National Telephone Information Network, Inc., and Marlin
Enterprises, Inc., incorporated by reference to Item 5 to the
Company's current report on Form 8-K filed on November 30, 1987.
Subsidiaries of the registrant.
22 (a)National Telephone Information **
* The Exhibit Number used refers to the appropriate subsection in
paragraph (b) of Item 601 of Regulation s-K.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Dated: May 21, 1997 ASDAR GROUP
By: /s/ Nicholas F. Coscia
Nicholas F. Coscia
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
Signature Date
/s/ Nicholas F. Coscia May 21, 1997
NICHOLAS F. COSCIA
Directors, Secretary
<PAGE>
ASDAR GROUP
FINANCIAL STATEMENTS
DECEMBER 31, 1992 & 1991
<PAGE>
/Letterhead/ SCHVANEVELDT & COMPANY
CERTIFIED PUBLIC ACCOUNTANT
275 EAST SOUTH TEMPLE, SUITE 300
SALT LAKE CITY, UTAH 84111
801-521-2392
Darrell T. Schvaneveldt C.P.A.
INDEPENDENT AUDITORS REPORT
Board of Directors
ASDAR GROUP
I have audited the accompanying balance sheets of Asdar Group, as of
December 31, 1992 and 1991, and the related statements of operations,
stockholders' equity, and cash flows for the years ended December 31, 1992,
1991 and 1990. These financial statements are the responsibility of the
Company's management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing
standards. Those standards require that I plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles
used and the significant estimates made by management, as well as
evaluating the overall financial statements presentation. I believe that
my audit provides a reasonable basis for my opinion.
The accompanying financial statements have been prepared assuming the
Company will continue as a going concern. As discussed in Note #4 to the
financial statements, the Company has an accumulated deficit and a negative
net worth at December 31, 1992. These factors raise substantial doubt
about the Company's ability to continue as a going concern. Management's
plans in regard to these matters are also discussed in Note #4. The
financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
In my opinion, the aforementioned financial statements present fairly,
in all material respects, the financial position of Asdar Group, as of
December 31, 1992 and 1991, and the results of its operations and its cash
flows for the years ended December 31, 1992, 1991 and 1990, in conformity
with generally accepted accounting principles.
/s/ Schvaneveldt & Company
Salt Lake City, Utah
September 8, 1996
<PAGE>
ASDAR GROUP
Balance Sheets
December 31, 1992 & 1991
<TABLE>
<CAPTION>
December December
31, 1992 31, 1991
------------ ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 25 $ 219
------------ ------------
Total Current Assets 25 219
NON-CURRENT RECEIVABLES
Note Receivable - CES -0- 1,000
------------ ------------
Total Non-Current Receivables -0- 1,000
LAND -0- 602,357
EQUIPMENT & FURNITURE -0- 9,130
------------ ------------
SECURITY DEPOSITS -0- 225
------------ ------------
Total Assets $ 25 $ 612,931
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements
</Page>
<PAGE>
ASDAR GROUP
Balance Sheets -Continued-
December 31, 1992 & 1991
<TABLE>
<CAPTION>
December December
31, 1992 31, 1991
------------ ------------
<S> <C> <C>
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 100 $ 32,325
Wages Payable -0- 20,000
Accrued Interest -0- 22,750
Loan Payable -0- 31,842
------------ ------------
Total Current Liabilities 100 106,917
LONG TERM LIABILITIES
Notes Payable -0- 300,000
------------ ------------
Total Liabilities -0- 406,917
STOCKHOLDERS' EQUITY
Common Stock 50,000,000 Shares
Authorized, at $0.001 Par Value,
49,949,915 Shares Issued &
Outstanding 49,949 49,949
Paid In Capital 4,311,951 4,248,709
Treasury Stock (199,167) (199,167)
Accumulated Deficit (4,162,808) (3,893,477)
------------ ------------
Total Stockholders' Equity (75) 206,014
------------ ------------
Total Liabilities &
Stockholders' Equity $ 25 $ 612,931
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements
</Page>
<PAGE>
ASDAR GROUP
Statements of Operations
December 31, 1992, 1991 & 1990
<TABLE>
<CAPTION>
December December December
31, 1992 31, 1991 31, 1990
------------ ------------ ------------
<S> <C> <C> <C>
REVENUES
Rental Income $ -0- $ 1,020 $ -0-
Interest Income -0- 5,994 8,519
Gain on Sale of Securities -0- -0- 18,209
------------ ------------ ------------
Total Revenues -0- 7,014 26,728
EXPENSES
Loss on Disposal of Assets 237,974 -0- -0-
Interest Expenses -0- 36,396 -0-
Consulting Fees -0- 29,688 1,900
Professional Fees 18,933 132,613 45,400
Depreciation 9,130 4,063 4,063
Wages -0- 60,000 60,600
Other Administrative Fees 3,294 32,296 37,496
------------ ------------ ------------
Total Expenses 269,331 295,056 149,459
------------ ------------ ------------
OTHER LOSSES
Loss on Securities -0- (50,000) -0-
Loss on Registered
Distribution Program -0- -0- 245,000
Valuation Loss on Securities
Held For Sale -0- (145,214) 30,660
------------ ------------ ------------
Total Other Losses -0- (195,214) 275,660
------------ ------------ ------------
Net Income (Loss) $ (269,331) $ (483,256) $ (398,391)
============ ============ ============
(Loss) Per Share
Computer on Weighted
Average Shares $ (.01) $ (.01) $ (.02)
============ ============ ============
Weighted Average
Shares Outstanding 49,949,915 40,724,833 26,936,658
</TABLE>
The accompanying notes are an integral part of these financial statements<PAGE>
ASDAR GROUP
Statements of Stockholders' Equity
At the Year Ended December 31, 1992
<TABLE>
<CAPTION>
(Deficit)
Common Stock Treasury Retained
Shares Amount Capital Stock Earnings
--------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance,
December
31, 1989 23,737,007 $23,736 $3,536,569 $(199,167)$(3,011,830)
Shares Issued
for Services
at Par Value
$0.001 3,400,000 3,400
Shares Issued
to Pay Interest
On Debt at $0.002 320,000 320 333
Shares Issued
for Professional
Fees at $0.0287
Per Share 1,324,000 1,324 36,676
Shares Issued for
Accrued Expenses
at $0.0432 2,942,908 2,943 124,200
Loss for
Year Ended
December
31, 1990 (398,391)
--------------------------------------------------------
Balance,
December
31, 1990 31,723,915 31,723 3,697,785 (199,167) (3,410,221)
Shares Issued
for Cash
$0.042 Per Share 3,000,000 3,000 122,000
Shares Issued
in Acquisition
of Investment
Shares $0.042
Per Share 2,000,000 2,000 85,500
Shares Issued
in Acquisition
of Land $0.0625
Per Share 3,200,000 3,200 196,800
Shares issued
for Cash
$0.016 Per Share 2,880,000 2,880 42,120
</TABLE>
The accompanying notes are an integral part of these financial statements<PAGE>
ASDAR GROUP
Statements of Stockholders' Equity -Continued-
At the Year Ended December 31, 1992
<TABLE>
<CAPTION>
(Deficit)
Common Stock Treasury Retained
Shares Amount Capital Stock Earnings
--------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Shares Issued
for Compensation
and Loan
Conversion
$0.016 Per Share 2,752,000 2,752 40,248
Shares Issued
for Operating
Expenses $0.016
Per Share 4,394,000 4,394 64,256
Net Loss for
Year Ended
December
31, 1991 (483,256)
-------------------------------------------------------
Balance,
December
31, 1991 49,494,915 49,949 4,248,709 (199,167) (3,893,477)
Capital
Contributed
By Officers 63,242
Net Loss for
Year Ended
December
31, 1992 (269,331)
--------------------------------------------------------
Balance,
December
31, 1992 49,949,915 $49,949 $4,311,951 $(199,167)$(4,162,808)
========================================================
</TABLE>
The accompanying notes are an integral part of these financial statements<PAGE>
ASDAR GROUP
Statements of Cash Flows
For the Years Ended December 31, 1992, 1991 & 1990
<TABLE>
<CAPTION>
December December December
31, 1992 31, 1991 31, 1990
------------ ------------ ------------
<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES
Net Loss $ (269,331) $ (483,256) $ (398,391)
Adjustments to Reconcile
Net Loss To Net Cash Used
by Operating Activities:
Non Cash Expense 237,974 209,257 -0-
Depreciation 9,130 4,063 4,063
Bad Debt 1,000 -0- -0-
Changes in Operating Assets
& Liabilities:
Increase in Accounts
Receivable -0- -0- 16,683
(Decrease) Increase in
Securities -0- -0- 36,600
(Decrease) Increase in
Interest Receivable -0- 19,520 (11,408)
Increase (Decrease) in
Notes Receivable -0- 120,700 245,000
Increase (Decrease) in
Accounts Payable (10,592) 17,464 (3,786)
Increase in Wages Payable -0- 5,000 -0-
Increase (Decrease) in
Interest Payable -0- 22,750 (67,103)
Increase in Loan Payable -0- 17,042 6,300
------------ ------------ ------------
Net Cash Used by
Operating Activities (31,819) (67,460) (172,042)
CASH FLOWS FROM
INVESTING ACTIVITIES
Acquisition of Land -0- (402,357) 1,400
Security Deposit 225 -0- -0-
------------ ------------ ------------
Net Cash Provided by
Investing Activities 225 (402,357) 1,400
CASH FLOWS FROM
FINANCING ACTIVITIES
Sale of Common Stock -0- 170,000 -0-
Capital Contributed 31,400 -0- -0-
Notes Payable -0- 300,000 169,194
------------ ------------ ------------
Net Cash Provided by
Financing Activities 31,400 470,000 169,194
------------ ------------ ------------
Increase (Decrease)in Cash (194) 183 (1,448)
Cash at Beginning of Year 219 36 1,484
------------ ------------ ------------
Cash at End of Year $ 25 $ 219 $ 36
============ ============ ============
DISCLOSURES FROM
OPERATING ACTIVITIES
Interest $ -0- $ -0- $ -0-
Taxes -0- -0- -0-
</TABLE>
The accompanying notes are an integral part of these financial statements<PAGE>
ASDAR GROUP
Notes to Financial Statements
NOTE #1 - CORPORATE DATA
ASDAR Group, (the Company), formerly known as the ASDAR Corporation, was
incorporated under the laws of the State of Nevada on November 29, 1983.
Its initial public offering was completed in April, 1985.
In 1987, the Company announced its Registration Distribution Program (RDP).
This Program was designed to assist privately owned companies to become
publicly-held. In exchange for financial consulting and other services,
the Company's shareholders received shares and warrants for the right to
purchase additional shares, which are registered and issued by the client
Company. The Company also may receive a certain percentage of the shares
and warrants offered by the client Company. Subsequently, the client
Company may raise equity capital via proceeds from the exercise of its
common stock purchase warrants.
During 1988, the Securities & Exchange Commission (SEC) and the National
Association of Securities Dealers, Inc., (NASD) reviewed and recommended
changes to the RDP structure, reducing certain benefits and incentives to
the Company and its principals, and improving the benefits to the public
shareholders of the Company.
In 1990, the Company discontinued its efforts in this business venture.
NOTE #2 - SIGNIFICANT ACCOUNTING POLICIES
(A) The Company uses the accrual method of accounting.
(B) Revenues and directly related expenses are recognized in the period
when the goods are shipped to the customer.
(C) The Company considers all short term, highly liquid investments that
are readily convertible, within three months, to known amounts as cash
equivalents. The Company currently has no cash equivalents.
(D) Primary Earnings Per Share amounts are based on the weighted average
number of shares outstanding at the dates of the financial statements.
Fully Diluted Earnings Per Shares shall be shown on stock options and other
convertible issues that may be exercised within ten years of the financial
statement dates.
(E) The cost of furniture and equipment was depreciated over an estimated
useful life of five years using the straight-line method. It is the
general practice of the Company to charge maintenance and repairs to
expense; major expenditures for renewals and betterments are capitalized
and are subjected to depreciation over their useful lives. Upon disposal
or retirement, the cost of assets and related accumulated depreciation are
eliminated and any gain or loss is included in operations.
(F) Estimates: The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could defer from those
estimates.
NOTE #3 - ACQUISITION AND DISPOSAL OF LAND
On April 22, 1991, the Company acquired three parcels of real estate in
Southern California from Barton K. Maybie or affiliates. The first parcel
consisted of approximately 1/2 acre of land located in San Juan Capistrano,
California. The second parcel consisted of a 2,500 square foot home on
approximately 1.2 acre of land in Moreno Valley, California. The third
parcel consisted of approximately 20 acres of land located in Yucca City,
California, north of Palm Springs, California.
The Company paid $600,000 for these properties as follows: $100,000 cash,
$150,000 assumption of a note secured by a fist deed of trust against the
Moreno Valley property, the issuance of new notes secured by an all
inclusive trust deed against the three properties in the amount of $150,000
and issuance of 3,200,000 shares of the Company's common stock to CBC
Financial Corporation, an affiliate of Barton K. Maybie.
During 1991, as part of the ongoing negotiation with Mr. Maybie, the
Company agreed that he would receive the rent from the home.
In 1992, the Company issued corporation Grant Deeds transferring the
property back to Barton K. Maybie, and to Stephen J. Rybar, a related
party. This resulted in a net loss of $237,974 to the Company.
The Company currently is investingating these property transfers to
determine under what circumstances they occured and if it can recover its
investment. The outcome of said search is uncertain and no provision has
been made for any recovery.
NOTE #4 - GOING CONCERN
As of December 31, 1992, the Company had no assets, or no operations from
which it could receive working capital. Since December 31, 1992, the
Company has been dormant and dependent upon its officers for its de minimis
operating costs. The Company seeks through merger or acquisition to
acquire a company with operations to provide assets and operating capital.
NOTE #5 - EMPLOYEE INCENTIVE STOCK OPTION PLAN & DIRECTORS WARRANT PLAN
The Company adopted an- Employee Incentive Stock Option Plan in March 1984,
pursuant to which 1,000,000 shares of common stock may be issued by the
Company to its officers and other key employees. The Company also adopted
a warrant plan, pursuant to which 1,000,000 shares of common stock may be
issued to the directors of the Company. As of December 31, 1992, no
options or warrants have been granted under either of these plans.
NOTE #6 - INCOME TAXES & NET OPERATING LOSS CARRYFORWARDS
The Company has adopted SFAS 109 to account for income taxes current and
deferred, and any tax benefit (assets) or cost (liabilities) that may arise
from the application of SFAS 109.
Scheduled below are the losses that the Company can carryforward for future
tax benefit.
<TABLE>
<CAPTION>
YEAR OF LOSS AMOUNT YEAR OF EXPIRATION
---------------- ------------ ---------------------
<S> <C> <C>
1987 and Prior $ 1,594,000 2002
1988 199,167 2003
1989 -0- 2004
1990 122,731 2005
1991 288,042 2006
1992 228,826 2007
</TABLE>
Utilization of these losses depend upon the Company's compliance with
provisions of the IRS code. Changes in majority shareholders and changes
in business activities, will result in the loss of availability of the
losses to offset taxable income.
Because of uncertainties as to its future and future majority shareholders
the Company has created an evaluation allowance at 100% of any future tax
asset that may occur from application of the net operating loss
carryforward provisions.
<TABLE>
1992 1991
------------------------
<S> <C> <C>
Maximum Tax Benefit at Current Prevailing Rates $ 823,598 $ 600,105
Evaluation Allowance Net Tax Benefit (Asset) (823,598) (600,105)
Net Tax Benefit (Asset) $ -0- $ -0-
========================
Current Tax Liability $ -0- $ -0-
Deferred Tax Liability -0- -0-
</TABLE>
NOTE #7 - SUBSEQUENT EVENT
On February 14, 1995, a Judgement and Findings of Facts after Court Tried
on Issue of Damages was issued by the United State District Court, Southern
District of California. The Company as defendant in the case was ordered
to pay to the Plaintiff $2,519,882 for damages resulting from Violation of
Section 10b of the Securities & Exchange Act of 1934 and Rule 10b-5
promulgated thereunder.
The Company has a purposed partial settlement of the litigation hearing in
the Superior Court of California, County of San Diego, in August 1996. The
Company purposes to pay within five days of the final approval of the
Agreement $150,000 cash and issue five million shares of its common stock
as currently issued to settle the suit. Class counsel has requested and
been granted thirty percent of the net recovery after costs are reduced.
In the class settlement account there is currently $27,500 of recovery from
which costs nor fees have been requested; therefore class counsel will
request fees and costs from $177,500 should this proposed settlement be
approved.
/Letterhead/ SCHVANEVELDT & COMPANY
CERTIFIED PUBLIC ACCOUNTANT
275 EAST SOUTH TEMPLE, SUITE 300
SALT LAKE CITY, UTAH 84111
(801) 521-2392
Darrell T. Schvaneveldt, C.P.A.
I consent to the use, in this Form 10-K, of our report dated September 8,
1996, on the financial statements of Asdar Group, Inc., dated December 31, 1992,
included herein and to the reference made to me.
/s/ Schvaneveldt & Company
June 19, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1992
<PERIOD-END> DEC-31-1992
<CASH> 25
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 25
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 25
<CURRENT-LIABILITIES> 100
<BONDS> 0
49,949
0
<COMMON> 0
<OTHER-SE> (50,024)
<TOTAL-LIABILITY-AND-EQUITY> 25
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 269,311
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (269,311)
<INCOME-TAX> 0
<INCOME-CONTINUING> (269,311)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (269,311)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> 0
</TABLE>
