SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934
For the quarter ended June 30, 1998
Commission File No. 0-24684
LONE WOLF ENERGY, INC.
(Name of small business issuer in its charter)
K&S VENTURES, INC.
(Former name of small business issuer)
Colorado
(State or other jurisdiction of Incorporation or Organization)
84-1214336
(IRS Employer Identification Number )
8908 South Yale Avenue, Suite 409
Tulsa, OK 74137
(918) 481-0167
(Address, including zip code and telephone number, including area
code of registrant's executive offices)
Securities registered under Section 12 (b) of the Exchange Act: none
Securities registered under Section 12 (g) of the Exchange Act:
Common Stock, $0.001 par value
(Title of class)
Check whether the issuer (1) 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 _______
The number of shares of the Registrant's only class of common stock issued
and outstanding, as of June 30, 1998, was 4,250,000 shares.
Page 1 of 7
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
LONE WOLF ENERGY, INC.
(A Development Stage Company)
BALANCE SHEETS
June 30, 1998 and December 31, 1997
(Unaudited)
June 30, December 31,
1998 1997
ASSETS
Current Assets
Cash $0 $0
-------- ---------
TOTAL ASSETS $0 $0
-------- ---------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $9,634 $6,972
-------- ---------
Total Liabilities $9,634 $6,972
-------- ---------
Stockholders' Equity:
Preferred Stock- $0.001 par value
20,000,000 shares authorized, no
shares issued and outstanding $0 $0
Common Stock- $0.001 par value
100,000,000 shares authorized,
4,250,000 shares issued and
outstanding at June 30, 1998
and December 31, 1997,
respectively 4,250 4,250
Additional Paid in Capital 19,655 19,165
Accumulated Deficit (33,539) (30,387)
-------- --------
Total stockholders' equity (9,634) (6,972)
-------- --------
Total Liabilities and Equity $0 $0
-------- --------
Page 2 of 7
<PAGE>
LONE WOLF ENERGY, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
For the three months and six months ended June 30, 1998 and 1997
(Unaudited)
Three months Six months
ended ended
June 30, June 30, June 30, June 30,
1998 1997 1998 1997
-------------------- ------------------
Revenue $0 $0 $0 $0
Expenses:
Legal 260 0 2,944 0
Accounting 0 0 87 0
Transfer Agent 397 0 778 0
Other 453 0 453 0
-------- ------- -------- -------
1,110 0 4,262 0
-------- ------- -------- -------
Net Loss (1,110) 0 (4,262) 0
-------- ------- -------- -------
Wgt.Avg. Shares 4,250,000 4,250,000 4,250,000 4,250,000
-------- -------- --------- ---------
Loss per share $0.00 $0.00 $0.00 $0.00
-------- ---------- -------- ---------
LONE WOLF ENERGY, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 1998 and 1997
(Unaudited)
June 30, June 30,
1998 1997
-------- --------
Operating Activities
Net loss (4,262) 0
Change in Accounts Payable 2,355 0
-------- --------
Cash used in operating activities (1,907) 0
-------- --------
Financing Activities
Sale of Common Stock 0 100,000
Less: Issue Costs 0 (100,000)
Contribution of Capital
by Stockholders 1,907 0
-------- --------
Cash provided by financing activities 1,907 0
-------- --------
Investing Activities 0 0
--------- ---------
Change in cash 0 0
Cash at beginning of period 0 0
--------- ---------
Cash at end of period 0 0
--------- ---------
Page 4 of 7
<PAGE>
LONE WOLF ENERGY, INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
For the six months ended June 30, 1998 and 1997
1. SIGNIFICANT ACCOUNTING POLICIES
Organization
Lone Wolf Energy, Inc. (formerly K&S Ventures, Inc.) was incorporated on
March 4, 1991 in the state of Colorado. From 1992 until 1994, the Company
operated as a retail distributor of Herbalife products. On June 17, 1997,
the Company discontinued its retail distributor operations. In January,
1997, the Company adopted an operating plan to purchase producing oil and gas
properties and to acquire companies in oil and gas related businesses. In
May, 1997, the Company changed its name from K&S Ventures, Inc. to Lone Wolf
Energy, Inc.
Basis of Accounting
Assets, liabilities, equity, revenue and expenses are recorded under the
accruel method of accounting in conformity with generally accepted accounting
principles.
Cash and Cash Equivalents
The Company considers all cash and marketable securities as cash
equivalents.
Income Taxes
The Company is considered a "C" corporation for income tax purposes.
Fiscal Year End
The Company's fiscal year end is December 31.
2. Stockholders' Equity
Additional Capital Contributed During 1998
-----------------------------------------------------------
During the second quarter of 1998 and for the six months ended June 30,
1998, certain shareholders of the Company contributed approximately $1,400
and $1,900, respectively, in additional capital that was used to pay
certain operating expenses of the Company. It is expected that these
shareholders will continue to provide the capital necessary to meet the
nominal operating expenses of the Company.
Purchase of Common Stock During First Quarter of 1997
-----------------------------------------------------
During the first quarter of 1997, 3,825,000 shares of the Company's
common stock was purchased by Lone Wolf Exploration, Inc., a non-affiliated
privately held Oklahoma corporation ("LWX"), in exchange for $100,000 in cash.
The transaction resulted in LWX owning 90% of the issued and outstanding
common stock of the Registrant. In connection with the transaction, the
Registrant paid fees in the amount of $100,000 to certain unrelated third
parties.
Item 2. Management's Discussion and Analysis or Plan of Operation
Plan of Operations
The Registrant plans to accumulate oil and gas assets by acquiring
producing properties from major oil and gas companies or from larger
independent companies; by developing and selling industry prospects that have
a carried interest and controlled risk for the Company; and by acquiring oil
and gas companies with existing production and proved reserves in exchange for
common stock of the Company.
Management anticipates that until the Registrant completes a purchase of
oil and gas assets that only nominal operating expenses, which are primarily
accounting and legal fees related to the Registrant's compliance as an SEC
reporting company, will be incurred. Such nominal expenses have been and
management expects will continue to be paid directly by certain shareholders
of the Registrant. There is no assurance, however, that material expenses
will not be incurred. There is no assurance that shareholders will have or
will make available sufficient funds to cover such material expenses.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Not Applicable
Item 2. Changes in Securities
Not Applicable
Item 3. Defaults Upon Senior Securities
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders
Not Applicable
Item 5. Other Information
Not Applicable
Item 6. Exhibits and Reports on Form 8-K
Exhibits.
None
Reports on Form 8-K.
None
Page 5 of 7
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
LONE WOLF ENERGY, INC.
/s/ RHONDA R. VINCENT
______________________________________
By: Rhonda R. Vincent, Treasurer
Date: August 17, 1998
Page 6 of 7
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