1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QA Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 1997 Commission file Number 0-8730 AMERICAN INDUSTRIES, LTD. (Registrant) Nevada 88-119436 (State of Incorporation) (I.R.S. Employer Identification No.) Bank of America Center 89109 101 Convention Center Drive (Zip Code) Suite 1212 Las Vegas Nevada (Address of Principal Executive Offices) Bank of America Center 101 Convention Center Drive Suite 845 Las Vegas, Nevada 89109 (Previous address) 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, and (2) has been subject to such filing requirements for the past 90 days. Yes _X_ No ___ As of March 31, 1998, there were 20,276,311 shares of common stock outstanding. PART I. FINANCIAL INFORMATION Item 1. Financial Statements Financial statements are attached at the end of the 10-QA. Item 2. Management's Discussion and Analysis of Financial condition and Operating Results Results of Operations-Quarter Ended During the quarter the Company had no income. The quarter ended September 30, 1996, showed no income also. The company President, Mr. Zack Monroe, passed away on July 25, 1997. Since the illness and death of Mr. Monroe, the Company's income stream was negatively affected. It did not have income during the second quarter of the fiscal year ended March 31, 1998. General administrative expenses decreased from the previous year's quarter. These expenses represent bare bones administrative costs. Liquidity and Capital Resources As mentioned above, the Company has no income. The Company's newly elected Chief Executive Officer, George Balis, is in the process of identifying the income sources. The lack of income production has put the Company into a negative cash flow position. Currently, any shortfall in the company's administrative and operating expenses are beig paid by George Balis and Mary Kinn, two shareholders. The investments listed on the balance sheet are not liquid and will provide no immediate relief from the negative cash flow. Mr. Balis is working on hiring new staff and revitalizing the revenue stream. His efforts are being hampered by shortage of operating capital and, therefore, there are no assurances that Mr. Balis' efforts will prove successful. The remainder of this page is intentionally blank. SIGNATURE Pursuant to the requirements of the Securites and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunder duly authorized. AMERICAN INDUSTRIES, LTD. Registrant _________________________ /SS/ George Balis, President (Chief Accounting Officer) Date: May 4, 1998 The remainder of this page is intentionally blank. AMERICAN INDUSTRIES, LTD. CONSOLIDATED BALANCE SHEETS (unaudited) as of September 30, 1997 and March 31, 1997 9/30/97 3/31/97 ASSETS Cash 11,622 23,050 Receivables 3,827 3,827 ______ ______ Total Current Assets 15,449 26,877 Equipment 3,347 3,347 Investments 61,134,822 61,134,822 __________ __________ Total Assets 61,153,618 61,165,046 __________ __________ __________ __________ LIABILITIES Accounts Payable 14,932 9,932 ___________ __________ Total Liabilities 14,932 9,932 ___________ __________ STOCKHOLDERS' EQUITY Common Stock, authorized 2,000,615 2,000,615 50,000,000 shares, 20,006,150 shares outstanding par value $.10 Paid in Capital 60,033,400 60,033,400 Retained Earnings (loss) (895,329) (878,901) __________ __________ Total Stockholders' Equity 61,138,686 61,155,114 __________ __________ Total Liabilities and Stockholders' Equity 61,153,618 61,165,046 __________ __________ __________ __________ [FN] The above statement is unaudited and is prepared by management AMERICAN INDUSTRIES, LTD. CONSOLIDATED STATEMENTS OF OPERATIONS for the three months ended September 30, 1997 and 1996 and the six months ended September 30, 1997 and 1996 3 mth 3 mth 6 mth 6 mth ended ended ended ended 9/30/97 9/30/96 9/30/97 9/30/96 Revenue - - - 45,000 _________ ________ ______ _______ General and Administrative Expenses - 25,202 16,428 52,730 _________ ________ ______ _______ Net Income (Loss) before Taxes - (25,202) (16,428) (7,730) Provision for Income Taxes - - - - _________ ________ ______ _______ Net Income (Loss) - (25,202) (16,428) (7,730) _________ ________ _______ _______ _________ ________ _______ _______ Earnings per Common Share a a a a _________ ________ _______ _______ Weighted Average Number of Shares Outstanding 20,006,150 20,006,150 20,006,150 20,006,150 __________ __________ __________ __________ a less than $.01 [FN] The above statement is unaudited and is prepared by management AMERICAN INDUSTRIES, LTD. CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited) for the six months ended September 30, 1997 and 1996 6 mths 6 mths ended ended 9/30/97 9/30/96 Cash from Operations Net Income (Loss) (16,428) 17,472 Change in Receivables - - Change in Payables 5,000 - ________ ______ Net Cash from Operations (11,428) 17,472 ________ ______ Cash used for Investments - - ________ _______ Cash from Investments - - ________ _______ Net Change in Cash (11,428) 17,472 Beginning Cash Balance 23,050 23,371 _________ ________ Ending Cash Balance 11,622 40,843 __________ ________ [FN] The above statement is unaudited and is prepared by management AMERICAN INDUSTRIES, LTD. NOTES TO FINANCIAL STATEMENTS Note 1. General and Accounting Policies American Industries, Ltd. (the Company) was originally organized December 26, 1919 in Nevada. The company has one wholly owned subsidiary Global Technologies S.A. Global Technologies was organized in Europe in the country of Luxembourg. In 1993 the company purchased Global Technologies from its previous owner. The purchase was done using purchase accounting. Notwithstanding the use of purchase accounting, at the time of the merger in 1993, the book value of Global's assets was equal to the fair market value of the assets. At the time of the merger appraisals were obtained to verify value. Subsequently, these appraisals have been updated. Management feels that these statements correctly reflect the financial condition and operations of the company for the period stated. Principles of Consolidation The consolidated financial statements include the companies of American Industries, Ltd. and its wholly owned subsidiary Global Technologies, S.A. All significant intercompany transactions have been eliminated. Earnings per Share Earnings per share is computed on the weighted average number of common shares outstanding during the year.