U. S. Securities and Exchange Commission
Washington, D. C. 20549
Form 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 10 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
THE EXCHANGE ACT
For the transition period from to .
Commission File Number: 0-9458
Eagle Exploration Company
(Exact name of Registrant as specified in it charter)
Colorado 84-0804143
(State or other jurisdiction of (I.R.S. Employer ID Number)
incorporation or organization)
1630 Welton Street, Suite 530
Denver, Colorado 80202
(Address of principal executive offices)
(303) 296-3677
(Issuer's telephone number)
1801 Broadway, Suite 1420
Denver, Colorado 80202
- ---------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 .
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court. Yes X No .
State the number of shares outstanding of each of the issuer's classed of
common equity, as of the latest practicable date: 3,072,836.
Transitional Small Business Disclosure format: (Check One) Yes No X .
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
PART I FINANCIAL INFORMATION
Item 1 Unaudited Condensed Consolidated
Balance Sheets - March 31, 2000,
and December 31, 2000
Unaudited Condensed Consolidated
Statements of Operations - Three
Months Ended December 31, 1999
and 2000 and Nine Months Ended
December 31, 1999 and 2000
Unaudited Condensed Consolidated
Statement of Cash Flow - Nine Months
Ended December 31, 1999 and 2000
Notes to Unaudited Condensed
Consolidated Financial Statements
Item 2 Management's Discussion and Analysis
of Financial Condition and Results
of Operations
PART II SIGNATURES
PART I
FINANCIAL INFORMATION
Item 1
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Assets
March 31, December 31,
2000 2000
----------- -----------
Current assets
Cash and cash equivalents ...................................... $ 1,569,309 $ 1,068,909
Certificates of deposit ........................................ 200,000 --
Investments available-for-sale ................................. 594,908 1,525,314
Other receivables .............................................. 10,321 6,193
----------- -----------
Total current assets ......................................... 2,374,538 2,600,416
----------- -----------
Office furniture, equipment and
other, net of $228,913 of accumulated
depreciation at March 31, 2000 and $242,767
of accumulated depreciation at
December 31, 2000 .............................................. 38,898 28,126
Other ........................................................... 26,637 26,637
----------- -----------
Total assets .................................................... $ 2,440,073 $ 2,655,179
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable ............................................... $ 12,448 $ 10,196
Deposits, deferred revenue
and other ..................................................... 8,409 8,409
----------- -----------
Total current liabilities ................................... 20,857 18,605
----------- -----------
Stockholders' equity
Common stock, no par value;
authorized 10,000,000 shares;
3,072,836 shares issued and
outstanding .................................................. 6,632,998 6,632,998
Accumulated deficit ........................................... (4,053,478) (4,093,348)
Unrealized holding gain (loss) on
investments available-for-sale ............................... (160,304) 96,924
----------- -----------
2,419,216 2,636,574
----------- -----------
Total liabilities and
stockholders' equity .......................................... $ 2,440,073 $ 2,655,179
=========== ===========
See Notes to Unaudited Condensed Consolidated Financial Statements.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three For the Three For the Nine For the Nine
Months Ended Months Ended Months Ended Months Ended
December 31, December 31, December 31, December 31,
1999 2000 1999 2000
----------- ----------- ----------- -----------
Revenue:
Interest income ............... $ 40,528 $ 36,649 $ 91,466 $ 98,219
Other income .................. 15,128 9,321 46,342 36,516
----------- ----------- ----------- -----------
Total revenue .................. 55,656 45,970 137,808 134,735
----------- ----------- ----------- -----------
Expenses:
Depreciation .................. 3,660 4,813 10,980 13,878
Other operating expenses ...... 46,458 51,280 148,128 160,727
----------- ----------- ----------- -----------
Total expense .................. 50,118 56,093 159,108 174,605
----------- ----------- ----------- -----------
Net income (loss) .............. 5,538 (10,123) (21,300) (39,870)
----------- ----------- ----------- -----------
Other comprehensive income
Unrealized gains on
investments available-for-
sale .......................... $ -- $ 195,307 $ -- $ 257,228
=========== =========== =========== ===========
Comprehensive income (loss) .... $ 5,538 $ 185,184 $ (21,300) $ 217,358
=========== =========== =========== ===========
Basic and diluted income
(loss) per share .............. $ .002 $ (.003) $ (.007) $ (.013)
=========== =========== =========== ===========
Weighted average number of share
outstanding .................. 3,072,836 3,072,836 3,072,836 3,072,836
=========== =========== =========== ===========
See Notes to Unaudited Condensed Consolidated Financial Statements.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine For the Nine
Months Ended Months Ended
December 31, December 31,
1999 2000
----------- -----------
Cash flows from operating activities:
Net loss ............................ $ (21,300) $ (39,870)
----------- -----------
Adjustments to reconcile net loss
to net cash provided by
operating activities:
Depreciation ...................... 10,980 13,878
Change in assets and liabilities:
Decrease (increase) in accounts
receivable ......................... (3,826) 4,128
Decrease in accounts payable ........ (13,894) (2,252)
----------- -----------
Total adjustments ............... (6,740) 15,754
----------- -----------
Net cash flows used by
operating activities ........... (28,040) (24,116)
----------- -----------
Cash flows from investing activities:
Redemption of certificates of deposit -- 200,000
Purchase of furniture and equipment . -- (3,106)
Purchase of investments available-
for-sale ........................... (773,065) (708,178)
Proceeds from sale of investments
available-for-sale ................. -- 35,000
----------- -----------
Net cash flows used by
investing activities ........... (773,065) (476,284)
----------- -----------
Net decrease in cash and cash
equivalents ......................... (801,105) (500,400)
Cash and cash equivalents, beginning
of year ............................. 2,350,898 1,569,309
----------- -----------
Cash and cash equivalents, end of
quarter ............................. $ 1,549,793 $ 1,068,909
=========== ===========
Supplemental disclosure of cash flow information:
The change in unrealized gain (loss) on investments available-for-sale for the nine
months ended December 31, 1999 and 2000 was $0 and $257,228, respectively.
See Notes to Unaudited Condensed Consolidated Financial Statements.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Opinion of Management
1. The financial information furnished reflects all adjustments which are, in
the opinion of management, necessary for a fair presentation of the
financial position at March 31, 2000, and December 31, 2000, and of the
condensed consolidated statements of operations for the nine months ended
December 31, 1999 and 2000, and for the three months ended December 31,
1999 and 2000, and condensed consolidated statements of cash flows for the
nine months ended December 31, 1999 and 2000. The results of operations and
statements of cash flows for the periods presented are not necessarily
indicative of those to be expected for the entire year.
2. The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim financial information. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles. For further information refer to the audited consolidated
financial statements and notes thereto for the year ended March 31, 2000,
included in the Company's 10-KSB filed with the Securities and Exchange
Commission on June 30, 2000.
Item 2: Management's Discussion and Analysis of Financial Condition and Results of
Operation.
Financial Condition, Liquidity and Capital Resources
Cash and cash equivalents decreased for the nine months ended December 31,
2000, to $1,068,909 from $1,569,309 for the year ended March 31, 2000, or
$500,400. Investments available-for-sale increased $930,406 for the nine months
ended December 31, 2000, to $1,525,314 from $594,908 at March 31,2000. This is
net of $257,228 unrealized gain on investments available-for-sale and $35,000 of
proceeds from sale of investments available-for-sale plus purchases of $708,178.
For the period ended December 31, 2000, the Company acquired an additional 1,000
Telehub Communications bonds at $200.00 per bond. The bonds are callable on July
31, 2002, at $1,069.38 and mature July 31, 2005.
Stockholders' equity increased $217,358 from $2,419,216 at March 31, 2000,
to $2,636,574 for the nine months ended December 31, 2000. This is primarily due
to the change in the unrealized holding gain on investments available-for-sale.
Results of Operations
For the three months ended December 31, 2000, compared to the three months ended
December 31, 1999, and for the nine months ended December 31, 2000, compared to
the nine months ended December 31, 1999.
For the three months ended December 31, 2000, total revenue was $45,970 as
compared to $55,656 for the three months ended December 31, 1999. Total revenue
for the nine months ended December 31, 2000, was $134,735 as compared to
$137,808 for the nine months ended December 31, 1999.
Total expenses for the three month period ended December 31, 2000, were
$56,093 as compared to $50,118 for the three month period ended December 31,
1999. For the nine months ended December 31, 2000, total expenses were $174,605
and total expenses for the nine month period ended December 31, 1999, were
$159,108.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
PART II
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.
EAGLE EXPLORATION COMPANY
(Registrant)
By: /s/ Raymond N. Joeckel
Raymond N. Joeckel
President/Chief Financial
Officer
By: /s/ Paul M. Joeckel
Paul M. Joeckel
Secretary
Date: February 12, 2001
