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 August 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
August 31, 1996
51,101,680 COMMON STOCK (PAR VALUE $.001)
FIRST MORTGAGE CORPORATION
Form 10-Q
Six Months Ended August 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
August 31, 1996 and February 29, 1996
(Unaudited)
August February
31, 1996 28, 1996
------------ ------------
ASSETS
Current Assets
Cash in Bank $ 15,715 $ 20,577
Cash in Savings 321,000 320,000
Other Receivables 100,000 100,000
Contracts Receivable 134,441 260,441
Prepaid Taxes -0- 2,128
------------ ------------
Total Current Assets 571,156 703,146
Fixed Assets
Office Equipment 35 55
Leasehold Improvements 584 750
------------ ------------
Total Fixed Assets 619 805
Other Assets
Land 29,518 26,416
------------ ------------
Total Other Assets 29,518 26,416
------------ ------------
TOTAL ASSETS $ 601,293 $ 730,367
============ ============
See accompanying notes
FIRST MORTGAGE CORPORATION
Balance Sheets -Continued-
August 31, 1996 & February 29, 1996
(Unaudited)
August February
31, 1996 29, 1996
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 800 $ 1,697
Taxes Payable 1,173 -0-
Notes Payable 4,000 140,000
------------ ------------
Total Current Liabilities 5,973 141,697
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 301,521 294,871
------------ ------------
Total Stockholders' Equity 595,320 588,670
------------ ------------
TOTAL LIABILITIES &
STOCKHOLDERS' EQUITY $ 601,293 $ 730,367
============ ============
See accompanying notes
FIRST MORTGAGE CORPORATION
Statements of Operations
For the Six Month Period August 31, 1996 & 1995
and the Three Month Period Ended August 31, 1996 & 1995
Six Month Three Month
Period Ended Period Ended
August August August August
31, 1996 31, 1995 31, 1996 31, 1995
------------ ------------ ------------ ------------
Revenues
Mortgage Recovery $ 28,000 $ 111,262 $ 5,000 $ 18,000
Interest 8,684 18,667 4,373 4,525
Rent Income -0- 44,436 -0- 22,218
Bad Debt Recovery 1,696 2,134 404 560
------------ ------------ ------------ ------------
Total Revenues 38,380 176,499 9,777 45,303
Expenses
Commission Expense 16,200 24,000 3,000 7,200
Interest Expense 1,564 21,286 1,564 21,285
Office Expense 2,697 6,580 1,200 5,266
Rent 4,350 4,350 2,175 2,175
Professional Fees 4,100 6,738 3,100 4,930
Telephone 998 855 502 438
Depreciation 186 3,220 93 3,074
Land Expense -0- 1,348 -0- 1,000
Travel 447 1,178 300 15
Taxes 605 -0- -0- -0-
------------ ------------ ------------ ------------
Total Expenses 30,557 70,160 11,934 45,368
------------ ------------ ------------ ------------
Net Profit Before
Taxes 7,823 106,339 (2,157) (65)
Income Taxes 1,173 31,700 324 -0-
------------ ------------ ------------ ------------
Net Profit After
Taxes $ 6,650 $ 74,639 $ (1,833) $ (65)
============ ============ ============ ============
Earnings Per Share $ .00 $ .00 $ .00 $ (.00)
Weighted Average
Shares Outstanding 51,101,680 51,101,680 51,101,680 51,101,680
See accompanying notes
/TABLE
FIRST MORTGAGE CORPORATION
Statements of Cash Flows
For the Six Months Periods Ended August 31, 1996 & 1995
(Unaudited) (Unaudited)
1996 1995
------------ ------------
Cash Flows from Operating Activities
Net Income (Loss) $ 6,650 $ 74,639
Adjustments to Reconcile Net Income
or (Loss) to Operating Activities:
Depreciation 186 3,220
Changes in Operating Assets &Liabilities:
(Increase) Decrease in Other Receivable -0- 50,001
Decrease in Prepaid Taxes 2,128 -0-
(Decrease) Increase in Accounts Payable (897) (26,500)
Increase (Decrease) in Taxes Payable 1,173 18,700
------------ ------------
Net Cash Provided by Operating Activities 9,240 120,060
Cash Flows from Investing Activities
Purchase of Land (3,102) -0-
Purchase of Building -0- (614,921)
Increase in Long Term Debt -0- 564,921
Collected on Contracts 126,000 272,500
(Decrease) Increase in Notes Payable -0- (56,455)
Payment on Long Term Debt (136,000) (9,356)
------------ ------------
Net Cash Provided by Investing Activities (13,102) (88,311)
Cash Flows from Financing Activities
Net Cash Provided by Financing Activities -0- -0-
------------ ------------
Increase (Decrease) in Cash (3,862) 31,749
Cash at Beginning of Year $ 340,577 $ 435,781
------------ ------------
Cash at End of Year $ 336,715 $ 467,530
============ ============
Expense Disclosures
Interest $ 1,564 $ 21,286
Taxes 1,173 31,700
See accompanying notes
/TABLE
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 $5,000 on its investments, recognized $2,000 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