SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1O-QSB
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1996
or
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ____________ to ____________
Commission File No.0-25658
KNIGHT NATURAL GAS, INC.
(Exact name of Registrant as specified in its charter)
Colorado 87-0432572
-------- ----------
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
5650 Greenwood Plaza Blvd.
Suite 216. Englewood. CO 80111
------------------------ -----
(Address of principal executive offices) (Zip Code)
(303) 741-1118
--------------
(Registrant's telephone number including area code)
Indicate by check mark whether the Registrant (1) had 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 outstanding of Registrant's common stock, par value $
.00001 per share, as of June 30, 1996 was 2,052,500 shares.
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM I. Financial Statements
See attached financial statements
Knight Natural Gas, Inc.
(A Development Stage Company)
Balance Sheet
Unaudited Audited
June December
30, 1996 31, 1995
-------- --------
ASSETS - Cash ............................... 369 647
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES - Accounts Payable Trade ........ 1650 0
-------- --------
SHAREHOLDERS' EQUITY
Common Stock, $.00001 Par Value
Authorized 100,000,000 Shares;
Issued And Outstanding 2,052,500 Shares ..... 21 21
Capital Paid In Excess Of
Par Value Of Common Stock ................... 426,026 422,649
Preferred Stock, $.10 Par Value, Non Voting
Authorized 1,000,000 Shares;
Issued And Outstanding -0- Shares ........... 0 0
Retained Deficit Prior To January 1, 1993 ... (417,421) (417,421)
Deficit Accumulated During
The Development Stage ....................... (9,907) (4,602)
-------- --------
TOTAL SHAREHOLDERS' EQUITY .................. (1,281) 647
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY ........................ $ 369 $ 647
======== ========
The Accompanying Notes Are An Integral Part Of These Financial Statements.
-2-
<PAGE>
Knight Natural Gas, Inc.
(A Development Stage Company)
Unaudited Statement Of Operations
Three Months Three Months
June June
30, 1996 30, 1995
--------- ---------
Revenue ........................................ 0 0
--------- ---------
Expenses:
Office .......................................... 40 23
Licenses & Fees ................................ 210 0
Professional ................................... 5,027 0
--------- ---------
Total ........................................... 5,277 23
--------- ---------
Net (Loss) ...................................... (5277) (23)
========= =========
Net (Loss) Per
Common Share.................................... (0) (0)
========= =========
Common Shares Outstanding........................ 2,052,500 2,052,500
========= =========
The Accompanying Notes Are An Integral Part Of These Financial Statements.
-3-
<PAGE>
Knight Natural Gas, Inc.
(A Development Stage Company)
Unaudited Statement Of Operations
January
1, 1993
(Inception)
Six Months Six Months Through
June June June
30, 1996 30, 1995 30, 1996
--------- --------- ---------
Revenue ................. $ 0 $ 0 $ 0
--------- --------- ---------
Expenses:
Office .................. 68 45 460
Licenses & Fess ......... 210 0 210
Professional ............ 5,027 3,700 9,237
--------- --------- ---------
Total ................... 5,305 3,745 9,907
Net (Loss) .............. (5,305) (3,745) (9,907)
========= ========= =========
Net (Loss) Per
Common Share ........... (0) (0) (0)
========= ========= =========
Common Shares Outstanding 2,052,500 2,052,500 2,052,500
========= ========= =========
The Accompanying Notes Are An Integral Part Of These Financial Statements.
-4-
<PAGE>
Knight Natural Gas, Inc.
(A Development Stage Company)
Unaudited Statement Of Cash Flows
January
1, 1993
Six Six (Inception)
Months Months Through
June June June
30, 1996 30, 1995 30, 1996
----- ----- -----
Net (Loss) Accumulated
During The Development
Stage .............................. (5,305) (3,745) (9,907)
Stock Issued Not For Cash ........... 0 0 15
Increase In Accounts Payable ........ 1,650 0 1,650
----- ----- -----
Cash Flows From Operations .......... (3,655) (3,745) (8,242)
----- ----- -----
Cash Flows From Financing Activities:
Issuance Of Common Stock ............ 0 0 0
Contribution Of Capital ............. 3,377 3,700 7,077
----- ----- -----
Cash Flows From Financing ........... 3,377 3,700 7,077
----- ----- -----
Cash Flows From Investing Activities:
0 0 0
----- ----- -----
Cash Flows From Investing ........... 0 0 0
----- ----- -----
Net Increase In Cash ................ (278) (45) (1,165)
Cash At Beginning Of Period ......... 647 924 1,534
----- ----- -----
Cash At End Of Period ............... $ 369 $ 879 $ 369
===== ===== =====
Summary Of Non-Cash Investing And Financing Activities:
1,500,000 Shares Issued For Service @ $.00001 Per Share $ 15
=====
The Accompanying Notes Are An Integral Part Of These Financial Statements.
-5-
<PAGE>
<TABLE>
<CAPTION>
Knight Natural Gas, Inc.
(A Development Stage Company)
Unaudited Statement Of Shareholders' Equity
Deficit
Capital Accumulated
Number Of Paid In Number Of During The
Common Common Excess Of Preferred Preferred Retained Development
Notes Shares Stock Par Value Shares Stock Deficit Stage Total
----- --------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Balance At January 1, 1993 ... 552,500 6 418,949 0 0 (417,421) 0 1,534
Net (Loss) December 31, 1993 . (336) (336)
--------- --------- --------- --------- --------- --------- --------- ---------
Balance At December 31, 1993 . 552,500 6 418,949 0 0 (417,421) (336) 1,198
Issuance Of Common Stock: .... 1,2
November 1, 1994 - Services @
$.00001 per Share ........... 1,500,000 15 0 15
Net (Loss) December 31, 1994 . (289) (289)
--------- --------- --------- --------- --------- --------- --------- ---------
Balance At December 31, 1994 . 2,052,500 21 418,949 0 0 (417,421) (625) 924
Capital Contribution ......... 3,700 3,700
Net (Loss) @ December 31, 1995 (3,977) (3,977)
--------- --------- --------- --------- --------- --------- --------- ---------
Balance At December 31, 1995 . 2,052,500 21 422,649 0 0 (417,421) (4,602) 647
Capital Contribution ......... 3,377 3,377
Net (Loss) @ June 30, 1996 ... (5,305) (5,305)
--------- --------- --------- --------- --------- --------- --------- ---------
Balance At June 30, 1996 ..... 2,052,500 21 426,026 0 0 (417,421) (9,907) (1,281)
--------- --------- --------- --------- --------- --------- --------- ---------
The Accompanying Notes Are An Integral Part Of These Financial Statements.
-6-
<PAGE>
KNIGHT NATURAL GAS, INC..
Footnotes
June 30 1996
NOTE 1
In the opinion of management, all adjustments, consisting only of normal
recurring adjustments necessary for a fair statement of (a) the results of
operations for the six month period ended June 30 1996 and 1995 and for the
periods from inception at January 1 1993 to June 30 1996 (b) financial position
at June 30 1996 and December 31 1995 and the cash flows for the six months ended
June 30 1996 and 1995 and for the period from inception, January 1, 1993
(inception) to June 30 1996 have been made.
NOTE 2
The results for the six month period ended June 30 1996 are not necessarily
indicative of the results for the entire fiscal year ended December 31 1996.
<PAGE>
ITEM 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations
Results of Operations
The Company has generated no substantial revenues from its operations
and has been a development stage company since inception. Since the Company has
not generated revenues and has never been in a profitable position, it operates
with minimal overhead. During this fiscal year, the Company plans to search for
and to identify potential acquisition candidates. During the period of this
report, the Company has not engaged in any preliminary efforts intended to
identify possible business opportunities and has neither conducted negotiations
nor entered into a letter of intent concerning any business opportunity.
Liquidity and Capital Resources
As of the end of the reporting period, the Company had no material cash
or cash equivalents. There was no significant change in working capital during
this fiscal year.
Management feels that the Company has inadequate working capital to
pursue any business opportunities other than seeking an acquisition candidate.
The Company will have negligible capital requirements prior to the consummation
of any acquisition but can pursue an acquisition candidate. The Company does not
intend to pay dividends in the foreseeable future.
<PAGE>
PART II- OTHER INFORMATION
ITEM 1. Legal Proceedings
No legal proceedings of a material nature to which the Company is a
party were pending during the reporting period, and the Company knows of no
legal proceedings of a material nature pending or threatened or judgments
entered against any director or officer of the Company in his capacity as such.
ITEM 2. Changes in Securities. None.
<PAGE>
ITEM 3. Defaults upon Senior Securities.
None.
ITEM 4. Submission of Matters to a Vote of Security Holders.
None
ITEM 5. Other Information.
None.
ITEM 6. Exhibits and Reports on Form 8-K.
No exhibits as set forth in Regulation S-K are considered necessary in this
lO-QSB filing.
<PAGE>
SIGNATURES
In accordance with 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.
Knight Natural Gas, Inc.
Dated: By: /s/ Gregory W. Skufca
---------------------------
Gregory W. Skufca
President and Chief Executive Officer
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.
CHIEF FINANCIAL AND ACCOUNTING
OFFICER
Dated: By: /s/ Gerald Loffredo
-------------------------
Gerald Loffredo
Treasurer
SECRETARY
Dated: By: /s/ Gerald Loffredo
-------------------------
Gerald Loffredo
Secretary
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<ARTICLE> 5
<CIK> 0000940516
<MULTIPLIER> 1
<CURRENCY> US Dollars
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<EXCHANGE-RATE> 1.000
<CASH> 369
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 369
<PP&E> 0
<DEPRECIATION> 0
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<CURRENT-LIABILITIES> 1650
<BONDS> 0
0
0
<COMMON> 21
<OTHER-SE> (1302)
<TOTAL-LIABILITY-AND-EQUITY> 369
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
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<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (5305)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5305)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5305)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
