SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Amendment #1
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended May 31, 1996
Commission File No. 33-2749
FIRST MORTGAGE CORPORATION
(Exact name of registrant as specified in its charter)
Incorporated under the laws of
the State of UTAH 87-03202209
(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification Number)
257 East 200 South, Suite 950, Salt Lake City, Utah 84111
(Address of Principal Executive Offices)
Registrant's telephone number, including area code
(801) 363-7663
N/A
Former name, former address and former fiscal year,
if changed since last report
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.
(1) Yes X No
(2) Yes X No
Indicate the number of shares outstanding of each class of common stock as
of May 31, 1996
51,101,680 COMMON STOCK (PAR VALUE $.001)
FIRST MORTGAGE CORPORATION
Form 10-Q
Three Months Ended May 31, 1996
INDEX
Page
PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets ....................................................3
Statements of Operations............................................4
Statements of Cash Flows............................................5
Notes to Financial Statements.......................................6
Management's Discussion and Analysis of
the Statement of Income.............................................7
PART II Other Information
ITEM 1 Legal Proceedings.............................................8
ITEM 2 Changes in Securities.........................................8
ITEM 3 Defaults upon Senior Securities...............................8
ITEM 4 Submission of Matters to a Vote of Security Holders...........8
ITEM 5 Other Information.............................................8
ITEM 6 Exhibits and Reports on Form 8-K..............................8
SIGNATURES....................................................9
FIRST MORTGAGE CORPORATION
Balance Sheets
May 31, 1996 and February 29, 1996
(Unaudited)
May February
31, 1996 29, 1996
------------ ------------
ASSETS
Current Assets
Cash in Bank $ 18,881 $ 20,577
Cash in Savings 321,000 320,000
Other Receivables 100,000 100,000
Contracts Receivable 188,441 260,441
Prepaid Taxes -0- 2,128
------------ ------------
Total Current Assets 628,322 703,146
Fixed Assets
Office Equipment 45 55
Leasehold Improvements 667 750
------------ ------------
Total Fixed Assets 712 805
Other Assets
Land 26,416 26,416
------------ ------------
Total Other Assets 26,416 26,416
------------ ------------
TOTAL ASSETS $ 655,450 $ 730,367
============ ============
See accompanying notes
FIRST MORTGAGE CORPORATION
Balance Sheets -Continued-
May 31, 1996 & February 29, 1996
(Unaudited)
May February
31, 1996 29, 1996
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 800 $ 1,697
Taxes Payable 1,497 -0-
Notes Payable 56,000 140,000
------------ ------------
Total Current Liabilities 58,297 141,697
Stockholders' Equity
Common Stock, 100,000,000
Shares Authorized at $0.001
Par Value;
51,101,680 Shares Issued &
Outstanding 51,102 51,102
Capital in Excess of Par Value 242,697 242,697
Retained Earnings 303,354 294,871
------------ ------------
Total Stockholders' Equity 597,153 588,670
------------ ------------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 655,450 $ 730,367
============= ============
See accompanying notes
FIRST MORTGAGE CORPORATION
Statements of Operations
For the Three Month Periods Ended May 31, 1996 & 1995
(Unaudited) (Unaudited)
1996 1995
----------- -----------
Revenues
Mortgage Recovery $ 23,000 $ 93,262
Interest 4,311 14,142
Rent Income -0- 22,218
Bad Debt Recovery 1,292 1,574
------------ ------------
Total Revenues 28,603 131,196
Expenses
Commission Expense 13,200 16,800
Interest Expense -0- 645
Office Expense 1,497 1,311
Rent 2,175 2,175
Professional Fees 1,000 1,808
Telephone 496 417
Depreciation 93 146
Land Expense -0- 348
Travel 147 1,178
Taxes 15 605
------------ ------------
Total Expenses 18,623 25,433
------------ ------------
Net Profit Before Taxes 9,980 105,763
Income Taxes 1,497 31,700
------------ ------------
Net Profit After Taxes $ 8,483 $ 74,063
============ ============
Earnings Per Share $ .00 $ .00
Weighted Average Shares
Outstanding 51,101,680 51,101,680
(See accompanying notes)
FIRST MORTGAGE CORPORATION
Statements of Cash Flows
For the Three Months Periods Ended May 31, 1996 & 1995
(Unaudited) (Unaudited)
1996 1995
------------ ------------
Cash Flows from Operating Activities
Net Income (Loss) $ 8,483 $ 74,063
Adjustments to Reconcile Net
Income or (Loss) to Operating
Activities:
Depreciation 93 146
Changes in Operating Assets &
Liabilities:
(Increase) Decrease in Other
Receivable -0- 50,000
Decrease in Prepaid Taxes 2,128 -0-
(Decrease) Increase in Accounts
Payable (897) (26,500)
Increase (Decrease) in Taxes 1,497 21,700
Net Cash Provided by
Operating Activities 11,304 119,409
------------ ------------
Cash Flows from Investing Activities
Purchase of Building -0- (614,921)
Increase in Long Term Debt -0- 564,921
Collected on Contracts 72,000 12,500
(Decrease) Increase in Notes Payable (84,000) (56,455)
------------ ------------
Net Cash Provided by Investing
Activities (12,000) (93,955)
Cash Flows from Financing Activities -0- -0-
------------ ------------
Net Cash Provided by Financing
Activities -0- -0-
------------ ------------
Increase (Decrease) in Cash (696) 25,454
Cash at Beginning of Year $ 340,577 $ 435,782
------------ ------------
Cash at End of Year $ 339,881 $ 461,236
============ ============
Expense Disclosures
Interest $ -0- $ 645
Taxes 1,497 31,700
See accompanying notes
First Mortgage Corporation
Notes to Financial Statements
NOTE #1 - STATEMENT PREPARATION
The Company has prepared the accompanying financial statements
with interim financial reporting requirement promulgated by the Securities
and Exchange Commission. The information furnished reflects all
adjustments which are, in the opinion of management, necessary for a fair
presentation of financial position and results of operations.
The consolidated financial statements should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Company's February 29, 1996 10-K report.
MANAGEMENT'S DISCUSSION AND ANALYSIS
LIQUIDITY AND CAPITAL RESOURCES
First Mortgage Corporation (the Company) is engaged in the
business of buying loan packages of mostly commercial loans from the FDIC
or RTC. The Company attempts to recover its investment and make a profit
through collection efforts. It is the Company's policy to not recognize
any income until it has recovered its initial investment. During the
current quarter the Company collected $33,000 on its investments,
recognized $19,800 as income, and purchased no new loan packages.
During the quarter ending May 31, 1995, the Company foreclosed on
one of the loans it had purchased. As a result of the foreclosure the
Company borrowed $564,921 to pay off a first mortgage position holder and
took over possession of a 20,000 square foot industrial building in
Phoenix, Arizona. In 1996, the Company sold its position in the building
to an associated investor. The Company is to receive $100,000 and
interest at 8% on or before March 31, 1997. The investor paid off the
$564,921.
RESULTS OF OPERATIONS
First Mortgage Corporation (the Company) maintains adequate cash
reserves to pay for its operations for at least three months without
having to use its cash in savings (cash equivalents), cash is collected on
contracts, commission are paid based on these collections. The Company
has sufficient cash and cash equivalents to retire all of its debt and
still have adequate working capital to continue its operations.
The Company has no present need to raise additional capital by
sale of its common stock shares.
PART II - OTHER INFORMATION
Item 1 Legal Proceedings. . . . . . . . . . . . . . . . . . . . . None
Item 2 Changes in the Rights of the Company's Security Holders. . None
Item 3 Defaults by the Company on its Senior Securities . . . . . .None
Item 4 Results of Votes of Security Holders . . . . . . . . . . . .None
Item 5 Other Information. . . . . . . . . . . . . . . . . . . . . .None
Item 6 Exhibits and Reports on Form 8-K . . . . . . . . . . . . . .None
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Date: January 30, 1997 By: William S. Greaves
--------------------- ------------------------------
William S. Greaves,
President &
Chief Executive Officer &
Chief Accounting Officer