U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended June 30, 2002
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
For the transition period from _____ to _____.
Commission File No. 0-9458
Eagle Exploration Company
(Exact name of registrant as specified in its character)
Colorado 84-0804143
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(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
1630 Welton Street, Suite 530, Denver, Colorado 80202
(Address and zip code of principal executive offices)
Registrant's telephone number, including area code: (303) 296-3677
Indicated by check mark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the 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 ___. ---
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 __.
Indicate the number of shares outstanding of each of the issuer's classed
of common equity, as of the latest practicable date:
Class Number of Shares
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Common stock 3,072 836
Transitional Small Business Disclosure format: (Check one) Yes ___ No X
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
PART I FINANCIAL INFORMATION
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Item 1 Condensed Consolidated Balance Sheets - March 31, 2002, and June 30, 2002 (Unaudited)
Unaudited Condensed Consolidated Statements of Operations - Three Months Ended June 30, 2001 and 2002
Unaudited Condensed Consolidated Statement of Cash Flows - Three Months Ended June 30, 2002 and 2001
Notes to Unaudited Condensed Consolidated Financial Statements
Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations
PART II OTHER INFORMATION
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Item 6 Exhibits and Reports on Form 8-K
SIGNATURES
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
PART I FINANCIAL INFORMATION
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Item 1
Condensed Consolidated Balance Sheets
June 30, March 31,
2002 2002
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(Unaudited)
Assets
Current assets
Cash ....................................................... $ 547,639 $ 661,251
Short term investments .................................... 423,462 421,794
Certificates of deposit ................................... 355,043 297,043
Accounts receivable ....................................... 7,471 5,875
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Total current assets .................................... 1,333,615 1,385,963
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Non-current assets
Office furniture, equipment and other, net of
accumulated depreciation of $239,820 and $228,400 at
March 31, 2002 and June 20, 2002, respectively ............. 48,525 24,102
Real Estate held for sale ................................... 301,275 301,275
Investment in option to purchase real estate ................ 81,500 74,000
Other assets ................................................ 26,637 26,637
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Total non-current assets .................................. 457,937 426,014
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Total assets ................................................. $ 1,791,552 $ 1,811,977
============ ============
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable ........................................... $ 12,009 $ 15,380
Deposits, deferred revenue and other ....................... 8,148 8,148
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Total current liabilities .............................. 20,157 23,528
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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 ........................................ (4,204,383) (4,185,661)
Unrealized holding loss on investments available for
sale ...................................................... (657,220) (658,888)
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1,771,395 1,788,449
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Total liabilities and stockholders' equity ................... $ 1,791,552 $ 1,811,977
============ ============
See notes to unaudited condensed consolidated financial statements.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations
For the Three Months Ended
June 30,
--------------------------
2002 2001
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Revenues
Interest income ...................................... $ 12,290 $ 26,782
Other income ......................................... 22,377 7,700
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Total revenue ....................................... 34,667 34,482
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Expenses
Depreciation ......................................... 2,325 2,836
Other operating expenses ............................. 51,064 54,663
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Total expenses ...................................... 53,389 57,499
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Net loss ............................................... (18,722) (23,017)
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Other comprehensive income (loss)
Unrealized gain (loss) on investments available for
sale ................................................ 1,668 (26,721)
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Comprehensive loss ..................................... $ (17,054) $ (49,738)
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Loss per share - basic and diluted ..................... $ (.01) $ (.01)
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Weighted average number of shares outstanding - basic
and diluted ........................................... 3,072,836 3,072,836
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See notes to unaudited condensed consolidated financial statements.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
For the Three Months Ended
June 30,
----------------------
2002 2001
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Cash flows from operating activities
Net loss ............................................. $ (18,722) $ (23,017)
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Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation ........................................ 2,325 2,836
Gain on trade-in of vehicle ......................... (10,575) --
Change in assets and liabilities:
Decrease (increase) in accounts receivable ........ (1,596) 208
Decrease in account payable ....................... (3,371) (6,134)
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(13,217) (3,090)
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Net cash flows used in operating activities ...... (31,939) (26,107)
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Cash flows from investing activities
Purchase of certificates of deposit .................. (58,000) --
Purchases of office furniture and equipment .......... (16,173) (1,031)
Purchase of land held for resale ..................... (7,500) --
Proceeds from sale of investments available-for-sale . -- 12,659
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Net cash flows (used in) provided by investing
activities ..................................... (81,673) 11,628
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Net decrease in cash and cash equivalents .............. (113,612) (14,479)
Cash and cash equivalents, beginning of year ........... 661,251 839,864
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Cash and cash equivalents, end of quarter .............. $ 547,639 $ 825,385
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Supplemental disclosure of cash flow information:
The change in unrealized gain (loss) on investments available for sale for
the three months ended June 30, 2002 and June 30, 2001 was $1,668 and
$(26,721), respectively.
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 June 30, 2002, and March 31, 2002, and of the
condensed consolidated statements of operations and condensed consolidated
statements of cash flows for the three months ended June 30, 2002 and 2001.
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, 2002,
included in the Company's 10-KSB filed with the Securities and Exchange
Commission on June 28, 2002.
Subsequent Event
On July 17, 2002, the Company issued 275,000 options to purchase common stock to
the three officers of the Company. The options were issued at market value on
the date of grant with a term of five years.
Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operation
Financial Condition, Liquidity and Capital Resources
The Company's cash and certificates of deposits at June 30, 2002 were
$902,682 as compared to cash and certificates of deposit for the year ended
March 31, 2002 of $958,294. This is a decrease of approximately 5.8% or $55,612
and is primarily due to operating costs.
Stockholders' equity decreased from $1,788,449 at March 31, 2002 to
$1,771,395 at June 30, 2002 or $17,054. The Company incurred an unrealized gain
on investments available-for-sale for the period ended June 30, 2002 of $1,668
and a net loss of $18,722.
Results of Operations
For the Three Months Ended June 30, 2002, Compared to the Three Months Ended
June 30, 2001.
For the three months ended June 30, 2002, the Company's total revenue was
$34,667 as compared to $34,482 for the three months ended June 30, 2001. This is
a slight increase in revenue of $185.
Total expense for the three months ended June 30, 2002, was $53,389 as
compared to $57,449 for the three months ended June 30, 2001. Unrealized gains
(losses) on investments available-for-sale were $1,688 and $(26,721) for the
period ended June 30, 2002 and 2001, respectively. This resulted in a
comprehensive loss of $17,054 and $49,738 for the period ended June 30, 2002 and
2001, respectively.
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 99(i) Certification of Principal Executive and Accounting and
Financial Officer, Raymond N. Joeckel Pursuant to 18 U.S.C.
Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
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
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Secretary/Vice President Operations
Date: August 16, 2001
