Nevada (State or other
jurisdiction of incorporation or organization) |
87-0410039 (I.R.S.
Employer Identification Number) |
Common Stock $0.001 par
value |
6,629,535 Shares Outstanding as
of June 30, 2002 |
Page Number | ||||
PART I. |
FINANCIAL INFORMATION |
|||
ITEM 1. |
FINANCIAL STATEMENTS (UNAUDITED) |
|||
3 & 4 | ||||
5 & 6 | ||||
7 | ||||
8 & 9 | ||||
10 | ||||
ITEM 2. |
12 | |||
PART II. |
13 & 14 |
June 30, 2002
|
December 31, 2001 | |||||
(Unaudited) |
||||||
ASSETS |
||||||
CURRENT ASSETS |
||||||
Cash and cash equivalents |
$ |
520 |
$ |
764 | ||
Accounts receivable, net |
|
|
|
24,855 | ||
Notes receivable, net |
|
5,436 |
|
| ||
|
|
|
| |||
Total Current Assets |
|
5,956 |
|
25,619 | ||
|
|
|
| |||
FIXED ASSETS, NET |
|
81,104 |
|
98,384 | ||
|
|
|
| |||
OTHER ASSETS |
||||||
Investments in limited partnerships |
|
991,985 |
|
1,038,856 | ||
Other assets |
|
890 |
|
1,059 | ||
|
|
|
| |||
Total Other Assets |
|
992,875 |
|
1,039,915 | ||
|
|
|
| |||
TOTAL ASSETS |
$ |
1,079,935 |
$ |
1,163,918 | ||
|
|
|
|
June 30, 2002
|
December 31, 2001 |
|||||||
(Unaudited) |
||||||||
LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT) |
||||||||
CURRENT LIABILITIES |
||||||||
Accounts payable |
|
444,576 |
|
|
499,195 |
| ||
Accounts payableofficers and directors |
|
|
|
|
225,760 |
| ||
Accrued expenses |
|
192,568 |
|
|
181,789 |
| ||
Accrued interest |
|
223,742 |
|
|
176,638 |
| ||
Judgments payable |
|
1,031,243 |
|
|
2,083,300 |
| ||
Notes payablecurrent portion |
|
851,910 |
|
|
862,166 |
| ||
|
|
|
|
|
| |||
Total Current Liabilities |
|
2,744,039 |
|
|
4,028,848 |
| ||
|
|
|
|
|
| |||
LONG-TERM DEBT |
||||||||
Notes payablelong term |
|
500,000 |
|
|
500,000 |
| ||
|
|
|
|
|
| |||
NET LIABILITIES IN EXCESS OF THE ASSETS OF DISCONTINUED OPERATIONS |
|
270,712 |
|
|
295,892 |
| ||
|
|
|
|
|
| |||
Total Liabilities |
|
3,514,751 |
|
|
4,824,740 |
| ||
|
|
|
|
|
| |||
COMMITMENTS AND CONTINGENCIES |
||||||||
STOCKHOLDERS EQUITY (DEFICIT) |
||||||||
Preferred stock: 10,000,000 shares authorized at $0.01 par value; 515,300 shares issued and outstanding
|
|
5,153 |
|
|
5,153 |
| ||
Common stock: 250,000,000 shares authorized at $0.001 par value; 6,629,535 and 2,303,507 shares issued and outstanding,
respectively |
|
6,630 |
|
|
2,304 |
| ||
Additional paid-in capital |
|
12,500,375 |
|
|
12,302,987 |
| ||
Subscriptions receivable |
|
(153,559 |
) |
|
(347,337 |
) | ||
Accumulated deficit |
|
(14,793,415 |
) |
|
(15,623,929 |
| ||
|
|
|
|
|
| |||
Total Stockholders Equity (Deficit) |
|
(2,434,816 |
) |
|
(3,660,822 |
) | ||
|
|
|
|
|
| |||
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY(DEFICIT) |
$ |
1,079,935 |
|
$ |
1,163,918 |
| ||
|
|
|
|
|
|
June 30, 2002 |
||||||||||||
Company |
Description of Business |
Number of Shares Owned (or %) |
Cost |
Fair Value |
||||||||
(Unaudited) |
||||||||||||
Canyon Shadows |
Real estate |
10 |
% |
$ |
1,131,961 |
$ |
991,985 |
(e) | ||||
IPO/Emerging Growth Company, LLC |
Start-up |
33 |
% |
|
100,000 |
|
-0- |
(f) | ||||
San Diego Soccer Development |
Dormant company |
1,551,001 |
|
|
715,905 |
|
-0- |
(f) | ||||
Other |
8,000 |
|
|
15,962 |
|
-0- |
(f) | |||||
Bio-Friendly Corporation |
Start-up |
437,500 |
|
|
180,000 |
|
-0- |
(f) | ||||
Las Vegas Soccer Development |
Start-up |
1,020,000 |
|
|
20,000 |
|
-0- |
(f) | ||||
|
|
|
|
| ||||||||
Total |
$ |
2,163,828 |
$ |
991,985 |
| |||||||
|
|
|
|
| ||||||||
December 31, 2001 |
||||||||||||
Canyon Shadows |
Real estate |
10 |
% |
$ |
1,131,961 |
$ |
1,038,856 |
(e) | ||||
IPO/Emerging Growth Company, LLC |
Start-up |
33 |
% |
|
100,000 |
|
-0- |
(a) | ||||
San Diego Soccer Development |
Soccer franchise |
1,551,001 |
|
|
715,905 |
|
-0- |
(c) | ||||
Other |
8,000 |
|
|
15,962 |
|
-0- |
(f) | |||||
Bio-Friendly Corporation |
Start-up |
437,500 |
|
|
180,000 |
|
-0- |
(d) | ||||
Las Vegas Soccer Development |
Start-up |
1,020,000 |
|
|
20,000 |
|
-0- |
(d) | ||||
|
|
|
|
| ||||||||
Total |
$ |
2,163,828 |
$ |
1,038,856 |
| |||||||
|
|
|
|
|
a) |
Non-public company, represents ownership in an LLC, fair value is determined in good faith by the Company based on a variety of factors.
|
b) |
Public market method of valuation based on trading price of stock at year-end. |
c) |
The fair value of restricted shares is determined in good faith by the Company based on a variety of factors, including recent and historical prices and other
recent transactions. |
d) |
No public market for this security existscost method of valuation used. |
e) |
The Companys board of directors has valued this investment at cost, less cash distributions to the Company from Canyon Shadows.
|
f) |
At December 31, 2001, the Companys board of directors determined that the Company is unlikely to recover its investments in these companies, and elected
to value the investments at zero. The board maintains the same opinion at June 30, 2002. |
For the Six Months Ended June
30, |
For the Three Months Ended June 30, |
|||||||||||||||
2002 |
2001 |
2002 |
2001 |
|||||||||||||
REVENUES |
||||||||||||||||
Investment banking income |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
| ||||
Development income |
|
|
|
|
220,713 |
|
|
|
|
|
220,713 |
| ||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Realized gain on investments |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Other income |
|
6,232 |
|
|
720 |
|
|
1,267 |
|
|
720 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Revenues |
|
6,232 |
|
|
221,433 |
|
|
1,267 |
|
|
221,433 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
EXPENSES |
||||||||||||||||
General and administrative |
|
286,219 |
|
|
317,982 |
|
|
124,805 |
|
|
121,143 |
| ||||
Bad debt expense |
|
|
|
|
219,198 |
|
|
|
|
|
80,402 |
| ||||
Depreciation and amortization |
|
17,280 |
|
|
15,208 |
|
|
8,641 |
|
|
3,758 |
| ||||
Loss on disposal of assets |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Expenses |
|
303,499 |
|
|
552,388 |
|
|
133,446 |
|
|
205,303 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
INCOME (LOSS) FROM OPERATIONS |
|
(297,267 |
) |
|
(330,955 |
) |
|
(132,179 |
) |
|
16,130 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
OTHER INCOME (EXPENSE) |
||||||||||||||||
Interest income |
|
|
|
|
25,429 |
|
|
|
|
|
12,788 |
| ||||
Interest expense |
|
(82,151 |
) |
|
(63,947 |
) |
|
(15,857 |
) |
|
(32,983 |
) | ||||
Gain on forgiveness of debt |
|
1,184,752 |
|
|
|
|
|
1,136,952 |
|
|
|
| ||||
Realized gain (loss) on investment |
|
|
|
|
(86 |
) |
|
|
|
|
|
| ||||
Unrealized gain (loss) on investment |
|
|
|
|
(392,675 |
) |
|
|
|
|
(283,825 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total Other Income (expense) |
|
1,102,601 |
|
|
(431,279 |
) |
|
1,121,095 |
|
|
(304,020 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
NET INCOME (LOSS) FROM CONTINUING OPERATIONS |
|
805,334 |
|
|
(762,234 |
) |
|
988,916 |
|
|
(287,890 |
) | ||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS |
|
25,180 |
|
|
79,525 |
|
|
(2,409 |
) |
|
(102 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
NET INCOME (LOSS) |
|
830,514 |
|
|
(682,709 |
) |
|
986,507 |
|
|
(287,992 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
OTHER COMPREHENSIVE GAIN |
||||||||||||||||
Gain on treasury stock |
|
|
|
|
1,072 |
|
|
|
|
|
(440 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
NET COMPREHENSIVE INCOME (LOSS) |
$ |
830,514 |
|
$ |
(681,637 |
) |
$ |
986,507 |
|
$ |
(288,432 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended June
30, |
||||||||
2002 |
2001 |
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net income (loss) from continuing operations |
$ |
805,334 |
|
$ |
(762,234 |
) | ||
Adjustments to reconcile net loss to net cash used by operating activities: |
||||||||
Depreciation and amortization |
|
17,280 |
|
|
15,208 |
| ||
Bad debt expense |
|
|
|
|
219,198 |
| ||
Loss on investment |
|
|
|
|
392,761 |
| ||
Gain on forgiveness of debt |
|
(1,184,752 |
) |
|
|
| ||
Discontinued operations: |
||||||||
Net income (loss) |
|
(4,820 |
) |
|
79,525 |
| ||
Depreciation and amortization |
|
|
|
|
12,512 |
| ||
Loss on disposal of assets |
|
|
| |||||
Gain on forgiveness of debt |
|
30,000 |
|
|
|
| ||
Changes in operating assets and liabilities: |
||||||||
(Increase) decrease in accounts and notes receivable |
|
24,855 |
|
|
(325,816 |
) | ||
(Increase) decrease in notes receivablerelated party |
|
(5,437 |
) |
|
(18,124 |
) | ||
(Increase) decrease in other assets |
|
169 |
|
|
639 |
| ||
Increase (decrease) in accounts payable |
|
(54,619 |
) |
|
(44,410 |
) | ||
Increase (decrease) in other liabilities |
|
(97,673 |
) |
|
(134,315 |
) | ||
Increase (decrease) in discontinued operation, net liabilities |
|
(25,180 |
) |
|
(74,296 |
) | ||
|
|
|
|
|
| |||
Net Cash Used in Operating Activities |
|
(494,843 |
) |
|
(639,352 |
) | ||
|
|
|
|
|
| |||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Receipt of cash distributions on investment |
|
46,871 |
|
|
|
| ||
Purchase of property and equipment |
|
|
|
|
(2,410 |
) | ||
|
|
|
|
|
| |||
Net Cash Used in Investing Activities |
|
46,871 |
|
|
(2,410 |
) | ||
|
|
|
|
|
| |||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Proceeds from long-term borrowings |
|
195,000 |
|
|
384,750 |
| ||
Payment on long-term borrowings |
|
(4,167 |
) |
|
|
| ||
Receipt of subscription receivable |
|
210,568 |
|
|
10,000 |
| ||
Stock issued for cash |
|
46,327 |
|
|
244,499 |
| ||
|
|
|
|
|
| |||
Net Cash Provided by Financing Activities |
|
447,728 |
|
|
639,249 |
| ||
|
|
|
|
|
| |||
NET DECREASE IN CASH |
|
(244 |
) |
|
(2,513 |
) | ||
CASH, BEGINNING OF PERIOD |
|
764 |
|
|
2,513 |
| ||
|
|
|
|
|
| |||
CASH, END OF PERIOD |
$ |
520 |
|
$ |
|
| ||
|
|
|
|
|
|
For the Six Months Ended June 30, | ||||||
2002 |
2001 | |||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||||
Interest paid |
$ |
|
$ |
156 | ||
Income taxes paid |
$ |
|
$ |
| ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES |
||||||
Common stock issued in conversion of debentures and interest |
$ |
143,581 |
$ |
246,866 |
BROADLEAF CAPITAL PARTNERS, INC. | ||
/s/ ROBERT A.
BRANER | ||
Robert A. Braner Interim President |
/s/ LISA L.
MARTINEZ | ||
Lisa L. Martinez Corporate Secretary |