U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-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, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
COMMISSION FILE NUMBER: 33-93994
FIRST AMERICAN CLOCK CO.
(Exact name of registrant as specified in its charter)
NEVADA 87-0543565
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
3211 South Highland Drive
Salt Lake City, Utah 84106
(Address of principal executive offices)
(801) 484-8680
(Registrant's telephone number, including area code)
Check whether the issuer (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 report(s), and (2)
has been subject to such filing requirements for the past 90
days.
YES [X] NO [ ]
The number of $.001 par value common shares outstanding at March
31, 1998: 908,300
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
FIRST AMERICAN CLOCK CO.
(A Development Stage Company)
CONDENSED BALANCE SHEET
ASSETS
March 31, December 31,
1998 1997
___________ ___________
(Unaudited)
CURRENT ASSETS:
Cash in bank $149 $291
________ ________
Total Current Assets 149 291
________ ________
OTHER ASSETS:
Organization costs, net of amortization 537 587
of $463 and $413
Investment in clocks 33,500 33,500
________ ________
Total Other Assets 34,037 34,087
________ ________
TOTAL ASSETS $34,186 $34,378
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $0 $62
Franchise tax payable 100 100
Accrued interest payable 111 78
Refund due customer 3,350 3,350
Stockholder advances 2,250 2,250
________ ________
Total Current Liabilities 5,811 5,840
________ ________
STOCKHOLDERS' EQUITY:
Preferred stock; $.001 par value,
5,000,000 shares authorized, no
shares issued and outstanding 0 0
Common stock; $.001 par value,
50,000,000 shares authorized,
908,300 and 908,300 shares issued
and outstanding respectively 908 908
Capital in excess of par value 45,753 45,753
Earnings (deficit) accumulated during
the development stage (18,286) (18,123)
________ ________
Total Stockholders' Equity 28,375 28,538
________ ________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $34,186 $34,378
======== ========
See Notes to Condensed Financial Statements
<PAGE>
FIRST AMERICAN CLOCK CO.
(A Development Stage Company)
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
For the For the Cumulative
Three Months Three Months During the
Ended Ended Development
March March Stage
31, 1998 31, 1997
_____________________________
REVENUE
Clock sales $0 $5,500 $0
Costs of goods sold 0 (4,500) 0
_____________________________
Total revenues 0 1,000 0
_____________________________
EXPENSES
Interest 33 15 111
Bank charges 17 14 305
Professional fees 0 2,257 6,393
Amortization expense 50 50 462
Other fees 63 335 1,390
Travel 0 0 719
Investment write-down 0 0 9,000
_________ _________ _________
Total expenses 163 2,671 18,380
_________ _________ _________
OPERATING INCOME (163) (1,671) (18,380)
OTHER INCOME (EXPENSE)
Interest 0 0 94
_________ _________ _________
NET INCOME (LOSS) $(163) $(1,671) $(18,286)
========= ========= =========
EARNINGS (LOSS) PER SHARE $0.00 $0.00 $0.02
========= ========= =========
See Notes to Condensed Financial Statements
<PAGE>
FIRST AMERICAN CLOCK CO.
(A Development Stage Company)
CONDENSED STATEMENT OF CASH FLOWS
(Unaudited)
Cumulative
For the Three For the Three During the
Months Ended Months Ended Development
March 31,1998 March 31,1997 Stage
_______________________________________
INCREASE (DECREASE) IN CASH
CASH FLOWS FROM OPERATING ACTIVITIES
Deposit due customer $0 $0 $3,350
Sales 0 2,000 0
Interest income 0 0 94
Bank charges (17) (14) (306)
Cash paid for organization expense, (125) (1,842) (9,400)
supplies and services _____________________________
Net Cash Provided (Used) by Operating (142) 144 (6,262)
Activities _____________________________
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in clocks 0 0 (42,500)
_____________________________
Net cash (Used) by Investing
Activities 0 0 (42,500)
_____________________________
CASH FLOWS FROM FINANCING ACTIVITIES
Sale of common stock 0 0 62,150
Deferred offering costs 0 0 (15,489)
Stockholder advances 0 0 2,250
_____________________________
Net Cash Provided by Financing 0 0 48,911
Activities _____________________________
NET INCREASE (DECREASE) IN CASH (142) 144 149
CASH - BEGINNING OF PERIOD 291 410 0
_____________________________
CASH - END OF PERIOD $149 $554 $149
=============================
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES
NET INCOME (LOSS) $(163) $(1,671) $(18,286)
_____________________________
Adjustments to reconcile net income (loss)
to net cash provided(used) by operating
activities
Amortization 50 50 463
Investment write-down 0 0 9,000
Change in assets and liabilities
Inventory costs 0 4,500 0
Organization costs 0 0 (1,000)
Account receivable 0 (3,500) 0
Accrued interest payable 33 15 111
Accounts payable and franchise tax payable (62) 750 100
Refund due customer 0 0 3,350
_____________________________
Total Adjustments 21 1,815 12,024
_____________________________
NET CASH (USED) BY OPERATING ACTIVITIES $(142) $144 $(6,262)
=============================
See Notes to Condensed Financial Statements
<PAGE>
FIRST AMERICAN CLOCK CO.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The Company, without audit, has prepared the accompanying
financial statements. In the opinion of management, all
adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of
operation and cash flows at March 31, 1998 and 1997 and for all
periods presented have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. It
is suggested that these condensed financial statements be read in
conjunction with the financial statements and notes thereto
included in the Company's December 31, 1997 audited financial
statements. The results of operations for the periods ended March
31, 1998 and 1997 are not necessarily indicative of the operating
results for the full year.
<PAGE>
Item 2: Management's Discussion & Analysis or Plan of Operations
The Company was incorporated on May 17, 1995. The Company
has not yet generated any significant revenues from operations
and is considered a development stage company. To date,
activities have been limited to organizational matters, the
preparation and filing of a registration statement to register a
public offering of its securities, pursuant to which the Company
offered and sold 108,300 shares of common stock and raised gross
proceeds of $54,150, the closing of such offering and the
acquisition of initial inventory and commencement of limited
operations. The Company has no significant assets other than the
inventory initially acquired with the net proceeds from the
offering.
The Company used most of the net proceeds from the offering
to acquire antique, museum quality clocks, watches and other
timepieces for resale. A portion of the proceeds was also used
to provide initial working capital for the commencement of
operations of the Company's business. Management's plan of
operation for the next twelve months is to attempt to arrange
suitable resales of the existing inventory to generate revenues
from operations and provide sufficient proceeds to acquire
additonal items of inventory. The Company was formed to engage
in the business of retailing and/or wholesaling unusual and
unique timepieces of museum quality. The Company has acquired
antique, museum quality timepieces that heretofore have not been
available to the general buying public, and intends to market
such timepieces to museums or other institutional buyers, private
collectors and the general public. This is based solely on
management's belief that in some instances the timepieces it may
acquire are presently in the hands of private collectors who are
not holding them out for sale to the general public.
There is absolutely no assurance that the business will
succeed and that the Company will be able, with the proceeds of
the offering, to find and acquire the type of antique, museum
quality clocks and timepieces that it desires to acquire or will
be able to find purchasers for and arrange suitable resales of
the inventory it has already acquired. In the event the proposed
business is unsuccessful, there is no assurance the Company could
successfully become involved in any other business venture. The
Company presently has no plans, commitments or arrangements with
respect to any other proposed business venture.
At this time, no assurances can be given with respect to the
length of time after commencement of operations that it will be
necessary to fund operations from proceeds of the offering. If
the Company is unable to generate sufficient revenues from
operations to cover expenses it may have to seek additional debt
or equity financing for which it has no commitments.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities and Use of Proceeds
(a) None.
(b) None.
(c) See Part I, Item 1 (financial statements) and Item 2
(management's discussion) for financial information and
a narrative discussion regarding use of proceeds.
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
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.
First American Clock Co.
Date: May 21, 1998 by: /s/ Mick Jardine
Mick Jardine, Chairman
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF FIRST AMERICAN CLOCK CO. AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 149
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<ALLOWANCES> 0
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<CURRENT-LIABILITIES> 5,811
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0
0
<COMMON> 908
<OTHER-SE> 45,753
<TOTAL-LIABILITY-AND-EQUITY> 34,186
<SALES> 0
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<CGS> 0
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<OTHER-EXPENSES> 130
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<INCOME-PRETAX> (163)
<INCOME-TAX> 0
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</TABLE>
