================================================================================ SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ---------- FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2000 Commission File No. 2-91651-D Peacock Financial Corporation Colorado 87-0410039 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 2531 San Jacinto Street San Jacinto, CA 92583 (Address and zip code of principal executive offices) (909) 652-3885 (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (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 reports), and (2) has been subject to such filing requirements for the past 90 days. [X] YES [_] NO Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. Common Stock 49,833,830 Shares Outstanding $0.001 par value as of June 30, 2000 ================================================================================ PEACOCK FINANCIAL CORPORATION REPORT ON FORM 10-Q QUARTER ENDED JUNE 30, 2000 TABLE OF CONTENTS - - -------------------------------------------------------------------------------- Page Number PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2000, AND DECEMBER 31, 1999 3 & 4 CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 2000 AND 1999 5 CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AS OF JUNE 30, 2000 6 - 8 CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2000 9 & 10 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 11 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 12 - 16 PART II. OTHER INFORMATION AND SIGNATURES 17 2 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets ASSETS June 30, December 31, 2000 1999 ---------- ---------- (Unaudited) CURRENT ASSETS Cash and cash equivalents 281,879 190,581 Due from related party 133,713 37,696 Developer fees receivable 33,974 46,828 Interest receivable 5,180 8,102 Credit line receivable 508,380 -- Notes receivable - related parties 164,730 91,007 Notes receivable 443,898 102,800 ---------- ---------- Total Current Assets 1,571,754 477,014 ---------- ---------- FIXED ASSETS 234,947 5,962 ---------- ---------- OTHER ASSETS Development costs 1,216,036 1,216,036 Investments in limited partnerships 1,131,945 1,131,945 Other investments 1,632,773 742,233 Other assets 278,522 6,151 ---------- ---------- Total Other Assets 4,259,276 3,096,365 ---------- ---------- TOTAL ASSETS $6,065,977 $3,579,341 ========== ========== 3 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (Continued) LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, December 31, 2000 1999 ----------- ----------- (Unaudited) CURRENT LIABILITIES Accounts payable $ 385,525 $ 159,272 Other current liabilities 127,250 174,668 Notes payable - current portion 342,173 623,204 Notes payable - related parties -- 25,398 Total Current Liabilities 854,948 982,542 ----------- ----------- LONG-TERM DEBT Notes payable - long term 500,000 500,000 ----------- ----------- Total Liabilities 1,354,948 1,482,542 ----------- ----------- COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock: 10,000,000 shares authorized at $0.01 par value; 554,300 and 670,300 shares issued and outstanding, respectively 5,543 6,703 Common stock: 250,000,000 shares authorized at $0.001 par value; 49,833,830 and 37,810,508 shares issued and outstanding, respectively 49,833 37,810 Additional paid-in capital 9,633,343 5,457,569 Subscriptions receivable (282,455) (327,055) Treasury stock (307,090) Accumulated deficit (4,388,145) (3,078,228) ----------- ----------- Total Stockholders' Equity 4,711,029 2,096,799 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 6,065,977 $ 3,579,341 =========== ===========
4 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited)
For 6 Months Ended For 3 Months Ended --------------------------- ------------------------ June 30, June 30, June 30, June 30, 2000 1999 2000 1999 ----------- ---------- ----------- ---------- REVENUES Property management and administration income $ 1,525 $ 2,370 $ 210 $ 1,777 Investment banking income 779,961 600,000 279,961 400,000 Gain on investment 38,750 (127,466) Other income 55,179 3,824 243,776 3,824 Other income - Sports 86,325 Other income - Internet 109,600 ----------- ---------- ----------- -------- Total Revenues 1,071,340 606,194 396,481 405,601 ----------- ---------- ----------- -------- EXPENSES General and administrative 748,312 322,901 490,498 157,126 General and administrative - Sports 1,111,731 833,018 General and administrative - Internet 473,146 311,203 Depreciation and amortization 14,578 2,735 6,904 174 ----------- ---------- ----------- -------- Total Expenses 2,347,767 325,636 1,641,623 157,300 ----------- ---------- ----------- -------- INCOME (LOSS) FROM CONTINUING OPERATIONS (1,276,427) 280,558 (1,245,142) 248,301 ----------- ---------- ----------- -------- OTHER INCOME (EXPENSE) Loss on investments (25,000) (25,000) Other income 7,625 70,000 5,381 -- Interest expense (39,515) (70,275) (21,985) (33,248) Other expense (1,600) (800) (800) ----------- ---------- ----------- -------- Total Other Income (Expense) (33,490) (26,075) (17,404) (58,248) ----------- ---------- ----------- -------- NET INCOME (LOSS) $(1,309,917) $ 254,483 $(1,262,546) $190,053 =========== ========== ============ ======== EARNINGS (LOSS) PER SHARE $ (0.03) $ 0.01 $ (0.03) $ 0.01 =========== ========== =========== ======== WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 48,150,404 29,700,396 46,830,296 30,972,996 ============ ========== ========== ==========
5 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity
Preferred Stock Common Stock Additional ---------------------- ------------------------ Paid-in Subscriptions Accumulated Shares Amount Shares Amount Capital Receivable Deficit -------- ---------- ----------- --------- ----------- ---------- ----------- Balance, December 31, 1997 672,300 $ 6,723 11,763,797 $ 11,764 $2,335,379 $ -- $ (852,055) Common stock issued for cash 1,609,413 1,609 217,456 Common stock issued for services 3,108,040 3,108 599,967 Common stock issued on conversation of debentures 1,559,834 1,560 104,033 Common stock issued for investments and licensing rights 2,420,000 2,420 257,580 Common stock issued under failed financing package 289,286 289 28,639 Accrued dividends (23,172) Net income (loss) for the year ended December 31, 1998 (1,533,436) -------- ----------- ----------- ---------- ----------- ------- ----------- Balance, December 31, 1998 672,300 $ 6,723 20,750,370 $ 20,750 $ 3,519,882 $ -- $(2,385,491) ======== =========== ========== =========== =========== ======= ===========
6 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity (continued)
Preferred Stock Common Stock Additional -------------------- --------------------- Paid-in Subscriptions Accumulated Shares Amount Shares Amount Capital Receivable Deficit ------- ------- ---------- ------- ---------- ------------- ------------ Balance, December 31, 1998 672,300 $6,723 20,750,370 $20,750 $3,519,882 $ -- $(2,385,491) Common Stock issued for cash 14,008,007 14,008 1,787,118 (443,500) Common Stock issued for services 759,571 760 161,040 Common stock issued on conversion of debentures 1,070,560 1,070 58,346 Common stock issued on investments 1,250,000 1,250 123,750 Common stock issued in conversion of preferred stock (2,000) (20) 2,000 2 1,998 Common stock canceled (30,000) (30) (5,779) Cash received on subscriptions receivable 116,445 Accrued dividends (23,172) Dividends paid (165,614) Net income (loss) for the year ended December 31, 1999 (692,737) ------- ------- ---------- ------- ---------- ------------- ------------ Balance, December 31, 1999 670,300 $6,703 37,810,508 $37,810 $5,457,569 $(327,055) $(3,078,228) ------- ------- ---------- ------- ---------- ------------- ------------
7 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Stockholders' Equity (Continued)
Preferred Stock Common Stock Additional --------------------- ---------------------- Paid-in Subscriptions Accumulated Shares Amount Shares Amount Capital Receivable Deficit ---------- --------- ---------- -------- ----------- ----------- ------------ Balance, December 31, 1999 670,300 $ 6,703 37,810,508 $ 37,810 $5,457,569 ($327,055) $(3,078,228) Common stock issued for cash (unaudited) 11,398,211 11,398 4,010,148 (148,000) Common stock issued for interest (unaudited) 6,207 6 6,201 Common stock issued in conversion of preferred stock (unaudited) (116,000) (1,160) 116,000 116 1,044 Common stock issued for debt (unaudited) 202,904 203 20,087 Cash received on subscriptions receivable (unaudited) 192,600 Common stock issued for investments (unaudited) 300,000 300 149,700 Accrued dividends (unaudited) (11,406) Net income (loss) for the period ended June 30, 2000 (unaudited) (1,309,917) --------- -------- --------- ---------- ---------- --------- ----------- Balance, June 30, 2000 (unaudited) 554,300 $ 5,543 49,833,830 $ 49,833 $ 9,633,343 $ (282,455) $(4,388,145) ========= ========= ========== ========= =========== ========== ===========
8 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows
For the 6 Months Ended -------------------------- June 30, June 30, 2000 1999 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $(1,309,917) $ 254,483 Adjustments to reconcile net income (loss) to net cash (used) by operating activities: Depreciation and amortization 14,578 2,735 Gain on investment (38,750) Changes in operating assets and liabilities: (Increase) decrease in accounts and notes receivable (833,702) 29,800 (Increase) decrease in accounts receivable - related parties (169,740) (2,899) (Increase) decrease in other assets (272,371) (6,000) Increase (decrease) in accounts payable 226,253 9,813 Increase (decrease) in other liabilities (52,617) (34,855) ----------- ----------- Net Cash Used by Operating Activities (2,436,266) 253,077 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES Construction in process Purchase of investments (701,790) (242,930) Purchase of property and equipment (243,563) (5,838) ----------- ----------- Net Cash Used by Investing Activities (945,353) (248,768) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES Due to shareholders (25,398) 5,592 Repayment of notes payable (260,741) (276,088) Proceeds from long-term borrowings -- (52,963) Repurchase of stock (307,090) Proceeds from stock offerings 4,066,146 291,041 ----------- ----------- Net Cash Provided by Financing Activities $ 3,472,917 (32,418) ----------- -----------
9 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Continued) For the 6 Months Ended ----------------------- June 30, June 30, 2000 1999 --------- --------- NET INCREASE IN CASH $ 91,298 $ (28,109) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 190,581 91,567 --------- --------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 281,879 $ 63,458 ========= ========= SUPPLEMENTAL DISCLOSURE OF NON-CASH ACTIVITIES Common stock issued on conversion of debentures & interest $ 26,497 $ 51,565 Common stock issued for services $ -- $ 600 Common stock issued for investments $ 150,000 $ 300,000 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest paid, net of amount capitalized $ 18,893 $ 37,568 Income taxes paid $ -- $ -- 10 PEACOCK FINANCIAL CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2000 and DECEMBER 31, 1999 1. The interim financial statements are prepared pursuant to the requirements for reporting on Form 10-QSB. The December 31, 1999 balance sheet data was derived from audited financial statements but does not include all disclosures required by generally accepted accounting principles. The interim financial statements and notes thereto should be read in conjunction with the financial statements and footnotes thereto included in the Company's report on Form 10-KSB for the year ended December 31, 1999. In the opinion of management, the interim financial statements reflect all adjustments of a normal recurring nature necessary for a fair statement of the results for the interim periods presented. 11 ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This Form 10-QSB contains forward looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. The Company's actual results could differ materially from those set forth in the forward looking statements. MANAGEMENT DISCUSSION Peacock Financial Corporation (Company) is a venture capital fund that makes direct investments in and provides management services to emerging businesses. The Company manages its investments through three wholly owned subsidiaries and intends on expanding its investment portfolio. The Company has in the past, and may again in the future, raise capital specifically for the purpose of making an investment that the Company believes is attractive. The Company's three wholly owned subsidiaries are Peacock Real Estate Development Corporation, DOTCOM Ventures, LLC and Peacock Sports, Inc. Each of these subsidiaries manages a portfolio of investments as follows: Peacock Real Estate Development Corporation - - ------------------------------------------- 1. Riverside Park Apartments - The Company formed a limited partnership in June 1992 and acquired two apartment buildings for $3,350,000 to be repaired, developed and managed. During the year ending 1992, the Company reduced its interest to 1% and has remained a general partner with a 1% interest, receiving a property management fee. 2. Canyon Shadows Apartments - The Company acquired a 120-unit apartment complex in April 1995 for $875,000. The Company received a $975,000 loan that converts to a grant from the City of Riverside for the purpose of acquisition and rehabilitation, and in 1996, the Company was awarded $2,200,000 in Federal Tax Credits for the project. In December 1996, the project was sold to a tax credit partnership in which the Company retains a $905,000 capital account, as well as a 1% interest as the general partner, for which it receives a management fee and 80% of the project cash flow. 3. St. Michel, LLC - In 1995, the Company formed a limited liability company to acquire a 63-lot residential subdivision in the San Jacinto Valley, In March 1996, the limited liability company acquired an additional 110-lot subdivision also in the San Jacinto Valley. The Company retains a 50% ownership in the limited liability company and has recently signed a joint venture agreement to build homes on these existing lots. 4. Rancho San Jacinto Development - In 1987, the Company formed a limited partnership to acquire and develop approximately 500 acres in San Jacinto, California. The partnership currently owns approximately 285 residential lots, 30 acres of commercially zoned property and 11 acres zoned for high density senior apartments all within the master planned community of Rancho San Jacinto. The Company retains a 15% ownership position and has recently entered into certain joint venture agreements to build out these properties. 12 5. Vir-Tek Company - The Company currently owns 49% of Vir-Tek, a minority disabled veteran engineering and contracting firm, formed to take advantage of recently passed federal legislation (H.R. 1568) requiring 3% participation on all programs and projects funded by federal dollars. Vir-Tek provides environmental management, facility and operations management, mapping and information management, engineering services, project management, and waste management. The Company emphasizes teamwork in industrial, and engineering problems. Vir-Tek has served commercial, industrial, and residential construction developers as well as concerns of city, county, and federal agencies. In addition to receiving contracts in large Civil Engineering projects, Vir-Tek is currently working contracts valued at $490,000 and is in the bidding process with contracts valued at $1.5 million with government agencies. In addition to the above, PDC has an agreement with the Milwaukee-based company, The Stadium Game, LLC (TSG), which is engaged in the business of the finance and development of venue projects through a consortium of industry leaders in the areas of design architecture, construction, facility management and fixed-income fund management. PDC assists TSG in identifying stadium, arena, recreational and entertainment facility development opportunities in the Western United states, providing TSG with initial project due diligence for target projects, and providing written development objectives for the owner(s), citing how these objectives fit the TSG consortium development process. This fits perfectly with PDC's 23 years of management experience to help position TSG in numerous projects with major regional impact in the Western United States. DOTCOM Ventures, LLC - - -------------------- 1. Solutions Media, Inc. - is an Internet and convergence technology firm headquartered in San Diego and an equity holder of SpinRecords.com. SMI researches and develops viable interactive applications for the consumer market. Peacock Financial is a major (800,000) shareholder of SMI. SMI is expected to be publicly traded in the year 2000. 2. Desert Winds Entertainment Corporation - is a traditional entertainment production company that has unique content geared toward the Gen X and Gen Y markets. In December, Peacock Financial entered into an agreement with Desert Winds Entertainment (OTCBB:DESW) to form a digital entertainment division called Desert Digital Network (DESTV.NET) as a first step into the area of digital broadcasting. Peacock invested $75,000 in convertible debt as $.20 a share. Peacock has since converted this note into 379,868 free trading shares. 3. iNetPartners, Inc. - Peacock Financial holds a 51 percent interest in iNetPartners, Inc., which focuses on the development of Internet e-commerce applications for both the net and used automotive markets and is currently developing iNetmotors.com, a regionally based automobile e-commerce Website to provide Internet automobile shoppers easy access to dealer inventories with detailed pictures and prices online within the shopper's immediate area. More than 80 percent of pre-owned and new vehicles are purchased within 20 to 35 mils of where the buyer lives or works, and 90 percent of all buyers want to inspect and test-drive the vehicle before purchase. In June, the Company announced a shareholder of record date of June 30 for distribution of a portion of shares to its shareholders. 4. 1st Miracle Group, Inc. - The Company invested $300,000 in convertible debt financing and subsequently converted its investment into free trading shares at $.01 per share. 1st Miracle Group, 13 Inc. (OTCBB:MVEE) is a Canadian based movie production company with 5 films currently in distribution and several new films in production. The Company is in continuing discussions with 1st Miracle Group, Inc., to enter into a consulting contract to expand its internet capabilities. The Company has since converted this note into 30 million free-trading shares. 5. Bizness Soup Talk Radio - In June, the Company acquired a 70% interest in Bizness Soup Talk Radio, a nationally syndicated broadcast network. Bizness Soup was founded in 1996 and has a presence in 20 major markets. This investment represents the next stage of the Company's expanding communications network, and will be one of the many revenue-driven components for the Company's media/communications network that will include both traditional and online radio, television and print. 6. Bio-Friendly Corporation - In May, the Company signed a contract to purchase 625,000 shares of common stock at 40 cents a share of Bio-Friendly Corporation, a fuel technology company, that has a combustion catalyst which dramatically reduces the emissions produced by any system which burns fuel of any kind, while greatly reducing the amount of fuel consumed. Bio-Friendly Corp is working with the public transportation department of Mexico City, and is involved in testing the product with the California Air Resources Board (CARB). Bio-Friendly plans to go public either in late 2000, or in 2001. Peacock Sports, Inc. - - -------------------- 1. San Diego Soccer Development Corporation (SDSDC) - The Company currently owns approximately 1,650,000 shares of SDSDC, the only publicly traded soccer franchise in the United States. In addition to SDSDC's ownership of the San Diego Flash, an A-League franchise, SDSDC entered into a binding contract to acquire Peacock's franchises in Orange County, the Bay Area, and Riverside County, as part of its long-term strategy to become a soccer holding company with multiple franchises including a professional farm system, a soccer academy and soccer specific stadiums. 2. Orange County Soccer Development Corporation - The Company owns 85% of OCSDC, the A-League soccer franchise known as the Orange County Waves. At the end of June, OCSDC entered into a binding contract to be acquired by SDSDC for $1.5 million in cash and stock. 3. Bay Area Soccer Development Corporation - The Company owns 80% of BASDC, the A-League soccer franchise known as the Bay Area Seals. At the end of June, BASDC entered into a binding contract to be acquired by SDSDC for $1.5 million in cash and stock. 4. Riverside County Soccer Development Corporation - The Company owns 53% ofRCSDC, a D-3 League soccer franchise known as the Riverside Elite. This franchise serves as a farm system for the three A-League franchises in San Diego, Orange County and the Bay Area. At the end of June, RCSDC entered intoa binding contract to be acquired by SDSDC for $500,000 in cash and stock. 5. Las Vegas Soccer Development Corporation - The Company is a 25% equity founding shareholder in the LVSDC (the Strikers), which was established to acquire an A-League soccer sports franchise for the Las Vegas market. It is the Company's intention to launch this franchise in the 2001 season. 14 ANALYSIS OF FINANCIAL CONDITION The first quarter of 2000 marked the emergence of the Company as a true venture capital fund, registered with the SEC as a Business Development Corporation. The second quarter continues to show steady growth through the incubation and financial support of the Company's investment portfolio. The Company's auditors removed the "Going Concern" statement in their 1999 audited financial statement that is a statement of objective confidence regarding the Company's current structure and capital position. Management believes that the key to a successful "Fund" is the ability to produce ongoing revenues and profits from operating subsidiaries that will allow for an orderly due diligence process when investing in start up or emerging growth companies. The Company has subsequently formed three operating subsidiaries that are strategically positioned to produce both revenue and profits. These subsidiaries contain key management personnel and have niche opportunities that have matured to the point of producing cash flow and bottom line profits to the Company. Certain of the Company's investments are expected to mature in the year 2000 which should produce substantial returns and increase shareholder net worth. The Company will continue to actively seek emerging growth opportunities that meet its stated investment criteria and will continue its capital raising efforts to fund these carefully selected investment opportunities. Results of Operations - Three months ended June 30, 2000, compared to the three months ended June 30, 1999. The Company is a registered Business Development Corporation under the Investment Act of 1940. As such, the Company acts as a holding company for the purpose of raising capital and investing in real estate through a wholly owned subsidiary and into emerging growth companies that meet certain investment criteria which includes the possibility of taking the targeted company public at a later stage. The Company expects to raise additional capital for its real estate operations in the San Jacinto Valley, (California) where a $3 billion recreational reservoir is nearing completion and to continue to seek out investment opportunities in high tech emerging growth companies. Revenues. Revenues for the three months ended June 30, 2000, decreased by $9,120 or 3% to $396,481 from $405,601 for the three months ended June 30, 1999. This decrease resulted from a decrease in fees charged for investment banking services. Expenses. Total expenses for the three months ended June 30, 2000, increased by $1,484,323 or 944% to $1,641,623 from $157,300 for the three months ended June 30, 1999. General and administrative expenses for the three months ended June 30, 2000, increased by $1,477,593 or 941% to $1,634,719 from $157,126 for the three months June 30, 1999. These increases resulted from the administrative and operating costs associated with consolidating the financial statements of the portfolio companies in which the Company has a majority or greater interest. 15 Results of Operations - Six months ended June 30, 2000, compared to the six months ended June 30, 1999. In the first two quarters, the Company raised over $4 million in capital which was used for working capital, debt reduction and investments Revenues. Revenues for the six months ended June 30, 2000, increased by $465,146 or 77% to $1,071,340 from $606,194 for the six months ended June 30, 1999. This increase resulted from fees charged for investment banking services, as well as revenues generated from the sports and internet divisions. Expenses. Total expenses for the six months ended June 30, 2000, increased by $2,022,131 or 621% to $2,347,767 from $325,636 for the six months ended June 30, 1999. This increase resulted from the administrative and operating costs associated with consolidating the financial statements of the portfolio companies in which the Company has a majority or greater interest. Changes in Financial Condition, Liquidity and Capital Resource. For the six months ended June 30, 2000, the Company funded its operations and capital requirements partially with its own working capital and partially with proceeds from stock offerings. As of June 30, 2000, the Company had cash of $281,879. 16 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. PEACOCK FINANCIAL CORPORATION August 14, 2000 /s/ Steven R. Peacock - - --------------- ------------------------------------- Date Steven R. Peacock President and Chief Executive Officer August 14, 2000 /s/ Lisa L. Martinez - - --------------- ------------------------------------ Date Lisa L. Martinez Corporate Secretary 17