<PAGE>
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 March 31, 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. 80111
Suite 216. Englewood. CO (Zip Code)
(Address of principal executive offices)
(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 March 31, 1996 was 2,052,500 shares.
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM I. Financial Statements
See attached financial statements
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.
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.
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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.
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Knight Natural Gas, Inc.
(A Development Stage Company)
Balance Sheet
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UNAUDITED AUDITED
MARCH DECEMBER
31, 1996 31, 1995
--------- --------
ASSETS - Cash $619 $647
---- ----
---- ----
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES $ 0 $ 0
---- ----
---- ----
SHAREHOLDERS' EQUITY
Common Stock, $.00001 Par Value
Authorized 100,000,000 Shares;
Issued And Outstanding 1,972,500 Shares 21 21
Capital Paid In Excess Of
Par Value Of Common Stock 422,649 422,649
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 (4,630) (4,602)
------ ------
------ ------
TOTAL SHAREHOLDERS' EQUITY $619 $647
---- ----
---- ----
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $619 $647
---- ----
---- ----
The Accompanying Notes Are An Integral Part Of These Financial Statements.
-1-
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Knight Natural Gas, Inc.
(A Development Stage Company)
Statement Of Operations
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JANUARY
1, 1993
(INCEPTION)
THREE MONTHS THREE MONTHS THROUGH
MARCH MARCH MARCH
31, 1996 31, 1995 31, 1996
------------ ------------ -----------
Revenue $ 0 $ 0 $ 0
---- ---- -------
Expenses:
Office 28 23 420
Professional 0 0 4,210
---- ---- -------
Total 28 23 4,630
Net (Loss) $(28) $(23) $(4,630)
---- ---- -------
---- ---- -------
Net (Loss) Per
Common Share ($0.00) ($0.00) ($0.00)
------ ------ ------
------ ------ ------
Common Shares Outstanding 2,052,500 2,052,500 2,052,500
--------- --------- ---------
--------- --------- ---------
The Accompanying Notes Are An Integral Part Of These Financial Statements.
-2-
<PAGE>
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Knight Natural Gas, Inc.
(A Development Stage Company)
Statement Of Cash Flows
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JANUARY
1, 1993
(INCEPTION)
THREE MONTHS THREE MONTHS THROUGH
MARCH MARCH MARCH
31, 1996 31, 1995 31, 1996
------------ ------------ ---------
Net (Loss) Accumulated
During The Development
Stage (28) (23) (4,630)
Stock Issued Not For Cash 0 0 15
---- ------ ------
Cash Flows From Operations (28) (23) (4,615)
---- ------ ------
Cash Flows From Financing Activities:
Issuance Of Common Stock 0 0 0
Contribution Of Capital 0 0 3,700
---- ------ ------
Cash Flows From Financing 0 0 3,700
---- ------ ------
Cash Flows From Investing Activities:
0 0 0
---- ------ ------
Cash Flows From Investing 0 0 0
---- ------ ------
Net Increase In Cash (28) (23) (915)
Cash At Beginning Of Period 647 1,109 1,534
---- ------ ------
Cash At End Of Period $619 $1,086 $ 619
---- ------ ------
---- ------ ------
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.
-3-
<PAGE>
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Knight Natural Gas, Inc.
(A Development Stage Company)
Statement Of Shareholders' Equity
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<TABLE>
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
February 1995 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
--------- --- -------- -- -- --------- -------- -------
Unaudited Net (Loss) @
March 31, 1996 (28) (28)
--------- --- -------- -- -- --------- -------- -------
Balance At March 31, 1996 2,052,500 $21 $422,649 $0 $0 $(417,421) $(4,630) $ 619
--------- --- -------- -- -- --------- ------- -------
</TABLE>
The Accompanying Notes Are An Integral Part Of These Financial Statements.
-4-
<PAGE>
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 three month period ended March 31, 1996 and 1995, and for
the periods from inception at January 1, 1993 to March 31, 1996, (b)
financial position at March 31, 1996, and December 31, 1995, and (c) the cash
flows for the three months ended March 31, 1996 and 1995, and for the period
from inception, January 1, 1993 (inception) to March 31, 1996 have been made.
NOTE 2
- ------
The results for the three month period ended March 31, 1996, are not
necessarily indicative of the results for the entire fiscal year ended
December 31, 1995.
-5-
<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: 5/30/96 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: 5/30/96 By: /s/ Gerald Loffredo
------------------ ----------------------------------------
Gerald Loffredo
Treasurer
SECRETARY
Dated: 5/30/96 By: /s/ Gerald Loffredo
------------------ ----------------------------------------
Gerald Loffredo
Secretary
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 619
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 21
<OTHER-SE> 598
<TOTAL-LIABILITY-AND-EQUITY> 619
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 28
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (28)
<INCOME-TAX> 0
<INCOME-CONTINUING> (28)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (28)
<EPS-PRIMARY> (0.00)
<EPS-DILUTED> (0.00)
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