ITEM 1. REPORTS TO STOCKHOLDERS
Combined Penny Stock Fund, Inc.
2001 Annual Report
The Company
Combined Penny Stock Fund, Inc. (the "Fund") is registered under the Investment
Company Act of 1940 as a closed-end investment company.
Shares of the Fund are bought and sold over-the-counter on the Bulletin Board
under the symbol "PENY". All, or nearly all, capital gains and dividends are
reinvested in the Fund.
TO OUR SHAREHOLDERS;
It has been a very difficult year for the Country, the markets, and for Combined
Penny Stock Fund, Inc. During the year ended September 30, 2001 the Funds' Net
Asset Value decreased 32% from $.028 per share to $.019 per share. A number of
the stocks that we held in our portfolio increased in value nicely during the
year and were sold for realized gains.
While these results are in line with the typical equity fund offerings, they are
still unacceptable from our perspective. We have recently made some investments
in the tech arena which we believe will be one of the strongest sectors in the
coming year.
How long the U.S. economy remains weak is completely unknown. We do know,
however, that the Federal Reserve and the U.S. Government continues to react to
the conditions with additional rate reductions and stimulus packages.
The Board of Directors has once again authorized the repurchase of up to five
percent(5%) of the outstanding shares at or below net asset value for this
fiscal year. During the year just ended, we were able to purchase 1,755,000
shares.
Thanks to our shareholders for their continued support of the Fund,
Sincerely
John R. Overturf, Jr.
President
Combined Penny Stock Fund, Inc.
September 30, 2001
Corporate Information
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Officers and Directors Stock Transfer Agent
John R. Overturf, Jr., President/Director Computershare Investor Services, Inc.
Dr. A. Leonard Nacht, Secretary/Director 12039 West Alameda Parkway Suite #Z-2
Brian E. Power, Director Lakewood, CO 80228
Jeffrey J. Kormos, Director
Corporate Headquarters Independent Auditors
Combined Penny Stock Fund, Inc. Stockman Kast Ryan & Company, LLP.
6180 Lehman Drive, Suite 103 102 North Cascade Avenue, Suite 450
Colorado Springs, CO 80918-3415 Colorado Springs, CO 80903-1418
Custodian of Portfolio Securities Counsel
US Bank Brenman, Key & Bromberg, P.C.
Mellon Financial Center
1775 Sherman Street, Suite 1001
Denver, CO 80203
Statement of Assets and Liabilities as of September 30, 2001
- -------------------------------------------------------------------------------
Assets
Investments:
Investments in securities of unaffiliated issuers
(identified cost $1,412,094) $ 339,139
Investments in securities of affiliated issuers
(identified cost $209,354) 1,882
Total 341,021
Cash and Equivalents 588,534
Total Assets 929,555
Liabilities
Payables:
Accounts Payable 1,177
Total Liabilities 1,177
Net Assets $ 928,378
Net Asset Value per Share $ .019
Analysis of Net Assets
Common Stock, $.001 par value, 100,000,000 shares
authorized, 49,016,000 issued and outstanding $ 49,016
Additional paid-in capital 5,901,526
Net capital paid in on shares of capital stock $5,950,542
Accumulated Loss:
Net investment loss (3,230,868)
Accumulated realized loss (510,870)
Net unrealized depreciation of investments (1,280,426)
Total accumulated loss (5,022,164)
Net Assets $ 928,378
See notes to financial statements
2
Schedule of Investments in Unaffiliated Issuers as of September 30, 2001
- -------------------------------------------------------------------------------
Units,
Shares or
Warrants Value (a)
- -------------------------------------------------------------------------------
Common Stocks - 32.89%
Capital Foods - 1.10%
20,000 International Airline Support Group, Inc. $ 10,200
Communications - 5.98%
2,080 Worldcom, Inc. $ 31,283
4,000 L M Ericsson Telephone Company 13,960
9,000 CMGI, Inc. 9,000
5,000 MDU Communications, Int'l 1,250
5,682 Voice It Worldwide, Inc. - units 0
Group Subtotal: 55,493
Data Processing\Computer - 6.70%
6,000 Atmel Corporation $ 40,080
5,000 Cray, Inc. 10,250
6,000 Palm, Inc. 8,760
10,000 High Speed Access Corp. 1,600
10,000 Syscom Int'l. Corp. 1,450
7,500 Prism Software Corporation 113
Group Subtotal: 62,253
Electronics - 1.94%
3,000 Lucent Technologies, Inc. $ 17,190
5,800 Surge Components, Inc. 870
Group Subtotal: 18,060
3
Schedule of Investments in Unaffiliated Issuers as of September 30, 2001
- -------------------------------------------------------------------------------
Units,
Shares or
Warrants Value (a)
- -------------------------------------------------------------------------------
Common Stocks - 32.89% (Continued)
Entertainment - .02%
13,000 IRV.com, Incorporated 162
Finance - 2.36%
2,500 Netbank, Inc. $ 20,925
2,500 Global Capital Partners, Inc. 950
Group Subtotal: 21,875
Hobbies/Collectors - 1.70%
20,000 Collectors Universe, Inc. $ 15,800
Manufacturing - 2.42%
15,000 Guardian Technologies, Inc. $ 9,150
2,000 Concord Camera, Inc. 8,760
10,000 Luxor Industrial Corp. 1,712
36,500 Veritec, Inc. 1,369
2,500 Zapworld.com 1,050
800 Aura Systems, Inc. 352
135,000 Cable and Co. Worldwide, Inc. 41
600 Sooner Holdings 9
3,333 Training Devices, Inc. (b) 0
Group Subtotal: 22,443
4
Schedule of Investments in Unaffiliated Issuers as of September 30, 2002
- -------------------------------------------------------------------------------
Units,
Shares or
Warrants Value (a)
- -------------------------------------------------------------------------------
Common Stocks - 32.89% (Continued)
Medical - 1.87%
70,000 Miracor Diagnostics, Inc. $ 8,750
2,500 Sigma Pharmaceuticals, Inc. 6,450
4,900 Healthwatch, Inc. 1,911
10,000 White Wing Labs, Inc. 225
25,000 9A Investment Holding Corporation 0
65,000 Organic Solutions, Inc. 0
Group Subtotal: 17,336
Mining - .28%
19,500 Globex Mining Enterprises, Inc. $ 2,595
Oil and Gas - 4.61
13,000 The Exploration Corporation $ 28,210
3,000 Petroleum Development, Corp 14,610
Group Subtotal: 42,820
Retail - 3.91%
10,000 Officemax, Inc. $ 30,500
4,000 House2Home, Inc. 5,200
928 Premier Concepts, Inc. 585
27,000 ProductExpress.com eBusiness Services, Inc. 67
Group Subtotal: 36,352
TOTAL COMMON STOCKS (Cost $1,367,094) $ 305,389
5
Schedule of Investments in Unaffiliated Issuers as of September 30, 2001
- -------------------------------------------------------------------------------
Shares or
Principal Value (a)
- -------------------------------------------------------------------------------
Corporate Notes - 3.64%
$ 45,000 Sea Ranch California, LLC., 12% per annum due 2001 33,750
(Cost $45,000)
Total Investments in Securities of Unaffiliated Issuers
(Cost $1,412,094) $ 339,139
Schedule of Investments in Affiliated Issuers as of September 30, 2001
- -------------------------------------------------------------------------------
Units,
Shares or
Warrants Value (a)
- -------------------------------------------------------------------------------
Common Stocks - .20%
60,210 Global Casinos, Inc. (c) $ 1,882
120,000 Global Casinos, Inc. (b)(c) 0
Group Subtotal: 1,882
Total Investments in Securities of Affiliated Issuers
(Cost $209,354) $ 1,882
Total Investments in Securities of Unaffiliated
Issuers (Cost $1,412,094) 36.53% $ 339,139
Total Investments in Securities of Affiliated
Issuers (Cost $209,354) .20% 1,882
Other Assets, Net of Liabilities 63.27% 587,357
Net Assets 100.00% $ 928,378
(a) See Notes 1 and 2 of notes to financial statements. (b) Restricted
security, see Note 2 of notes to financial statements. (c) See Note 3
of notes to financial statements
See notes to financial statements
6
Statement of Operations for the Year Ended September 30, 2001
Investment Loss:
Interest income (including $5,434 from affiliate) $ 42,569
Total income 42,569
Expenses:
Salaries 51,878
Accounting services and administration 42,000
Directors' fee 16,000
Reports to shareholders 13,740
Audit 8,494
Transfer agent 6,087
Office 3,386
Custodian 2,616
Travel 1,110
Legal 20
Other 1,114
Total expenses 146,445
Net Investment Loss (103,876)
Net Realized and Unrealized Gain(Loss) on Investments:
Net realized gain from investment transactions 165,955
Net unrealized depreciation of investments (514,263)
Net Loss on Investments (348,308)
Net Decrease in Net Assets from Operations $ (452,184)
Statements of Changes in Net Assets for the Years Ended September 30, 2001
and 2000
2001 2000
From Operations:
Net investment loss $ (103,876) $ (103,689)
Net realized gain from investment transactions 165,955 196,735
Net unrealized appreciation(depreciation) of
investments (514,263) 24,507
Net increase(decrease) in net assets from operations (452,184) 117,553
From Capital Stock Transactions:
Purchase of treasury stock (1,755,000 and
1,150,000 shares
in 2001 and 2000, respectively) (40,054) (23,825)
Net Assets - beginning of period 1,420,616 1,326,888
Net Assets - end of period $ 928,378 $ 1,420,616
See notes to financial statements
7
Financial Highlights
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For the Years Ended
September 30...
2001 2000 1999 1998 1997
Per Share:
Income from investments $ .001 $ .001 $ .001 $ .001 $ .001
Expenses (.003) (.003) (.003) (.002) (.002)
Net investment loss (.002) (.002) (.002) (.001) (.001)
Net realized gain and realized
appreciation (depreciation) of
investments (.007) .004 .008 (.013) .004
Net increase (decrease) in net
asset value (.009) .002 .006 (.014) .003
Net Asset Value:
Beginning of year .028 .026 .020 .034 .031
End of year $ .019 $ .028 $ .026 $ .020 $ .034
Total investment return (1) 32.14)% 7.69% 30.00% (41.18)% 9.68%
Ratios:
Expenses to average net assets 12.24% 11.81% 10.74% 8.23% 7.87%
Net investment
loss to average net assets 8.69% 7.25% 7.03% 6.09% 3.33%
Portfolio turnover rate (2) 114.47% 95.72% 33.00% 67.13% 96.88%
(1) Based on the change in net asset value considering there have been no
distributions during the period presented. The Fund does not believe that a
presentation based on changes in the market value of the Fund's common stock is
appropriate considering the limited market for the Fund's stock.
(2) The lesser of purchases or sales of portfolio securities for a period
divided by the monthly average of the market value of portfolio securities owned
during the period. Securities with a maturity or expiration date at the time of
acquisition of one year or less are excluded from the calculation. Purchases and
sales of investment securities for the year ended September 30, 2001 were
$732,137 and $712,424, respectively.
See notes to financial statements
8
Notes to Financial Statements
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1. Summary of Significant Accounting Policies
Combined Penny Stock Fund, Inc. (the Fund) was incorporated September 7, 1983
and is registered under the Investment Company Act of 1940, as amended, as a
closed-end investment company. The Fund invests in a broad range of small,
speculative stocks traded in the over-the-counter market and is being managed by
the Board of Directors of the Fund. The following is a summary of significant
accounting policies followed by the Fund in the preparation of its financial
statements.
Investment Valuation - Investments in securities traded on national exchanges
and NASDAQ are valued at last reported sales prices. Investments in securities
traded in the over-the-counter market on the Electronic Bulletin Board or Pink
Sheets are valued at the quoted bid as obtained from NASDAQ or at the quoted bid
prices from the brokers that make markets in such securities, on the last
business day of the period. Investments in restricted securities, as well as
certain thinly-traded securities and corporate notes, are valued at their fair
value as determined in good faith under procedures established by and under the
direction of the Fund's Board of Directors.
Federal Income Taxes - The Fund has not elected to be treated for Federal income
tax purposes as a "regulated investment company" under Subchapter M of the
Internal Revenue Code. Consequently, investment income and realized capital
gains are taxed to the Fund at tax rates applicable to corporations.
The Fund accounts for income taxes in accordance with the Statement of Financial
Accounting Standards (SFAS) No. 109, "Accounting for Income Taxes." Under SFAS
No. 109, a current or deferred income tax liability or asset is recognized for
timing differences which exist in the recognition of certain income and expense
items for financial statement reporting purposes in periods different than for
income tax reporting purposes. The provision for income taxes is based on the
amount of current and deferred income taxes payable or refundable at the date of
the financial statements as measured by the provisions of current tax laws.
Other - Investment transactions are accounted for on the date the investments
are purchased or sold (trade date). Realized gains and losses from investment
transactions and unrealized appreciation and depreciation of investments are
reported on a first-in, first-out basis.
All of the Fund's equity securities as of September 30, 2001 are non-income
producing securities.
Concentration of Cash - As of September 30, 2001, the Fund had a money market
deposit at a bank of $576,794 which is in excess of the federally insured limit.
Use of Estimates - The preparation of the Fund's financial statements in
conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of income and expenses during
the reporting period. Actual results could differ from those estimates.
9
2. Restricted and Thinly-traded Securities
Restricted securities are those securities which have been acquired from an
issuer without registration under the Securities Act of 1933. Restricted
securities generally cannot be sold by the Fund except pursuant to an effective
registration statement or in compliance with Rule 144 of the Securities Act of
1933. The following schedule provides certain information with respect to
restricted securities held by the Fund as of September 30, 2001. These
securities comprised 0% of the Fund's net assets at such time.
Description Date of Acquisition
Cost Value
Training Devices, Inc. February 20, 1997 $ 12,500 $ --
Global Casinos, Inc. August 1, 2001 59,800 --
The Fund has no right to require registration of the above restricted
securities.
Valuations for the restricted securities, as well as certain thinly-traded
securities and corporate notes, have been determined in good faith by the Fund's
Board of Directors, in the absence of readily ascertainable market values. Such
investments were valued at $51,330 as of September 30, 2001, representing 5% of
the Fund's net assets. Because of the inherent subjectivity of these valuations,
it is reasonably possible that a material change in such valuations could occur
in the near term.
3. Investments in Securities of Affiliated Issuers
At September 30, 2001, the Fund holds either a direct or indirect ownership of
5% or more of the voting securities of the following securities:
Purchases During
Fair The Year Ended
Description Cost Value September 30, 2001
Global Casinos, Inc. $ 149,554 $ 1,882 $ 0
Global Casinos, Inc. - restricted 59,800 0 59,800
$ 209,354 $ 1,882 $ 59,800
The restricted shares of Global Casinos, Inc. stock were acquired through the
conversion of a loan to Global Casinos, Inc. with a basis of $59,800 on August
1, 2001.
4. Unrealized Gains and Losses
At September 30, 2001, the net unrealized depreciation of investments of
$1,280,427 was comprised of gross appreciation of $17,469 for those investments
having an excess of value over cost and gross depreciation of $1,297,896 for
those investments having an excess of cost over value.
5. Income Taxes
There is no income tax provision in 2001 as the deferred tax assets relating to
accumulated losses and unrealized depreciation of approximately $800,000
continue to be fully reserved. The deferred tax assets and related valuation
allowance each increased $160,000 during the year ended September 30, 2001 due
to the increase in unrealized depreciation. Accumulated net investment loss
carryovers for income tax purposes total approximately $890,000 at September 30,
2001, and will expire in varying amounts through 2008.
10
6. Securities and Exchange Commission Examination
Pursuant to an examination of the Fund by the Securities and Exchange Commission
(SEC), the SEC has issued a letter to the Fund identifying various asserted
deficiencies and violations of rules and regulations. The Fund has responded to
the SEC and does not believe that the outcome of this matter will have a
material impact on the Fund's financial condition or operations. However, the
ultimate outcome of this matter is not determinable at this time.
End of notes to financial statements
11
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Independent Auditors' Report
To the Board of Directors and Shareholders,
Combined Penny Stock Fund, Inc.
We have audited the accompanying statement of assets and liabilities of Combined
Penny Stock Fund, Inc. (the "Fund") including the schedules of investments in
unaffiliated and affiliated issuers as of September 30, 2001, and the related
statement of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at September 30, 2001 by correspondence with the custodian and
brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Combined Penny Stock Fund, Inc. at September 30, 2001, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each of
the five years in the period then ended in conformity with accounting principles
generally accepted in the United States of America.
STOCKMAN KAST RYAN & COMPANY, LLP.
Colorado Springs, Colorado
October 18, 2001
PRSRT STD
U.S. POSTAGE
PAID
Co. Spgs., CO
Permit No. 440
Combined Penny Stock Fund, Inc.
6180 Lehman Drive, Suite 103
Colorado Springs, Colorado 80918-3415
[THIS PAGE INTENTIONALLY LEFT BLANK]
[THIS PAGE INTENTIONALLY LEFT BLANK]
ITEM 2. CODE OF ETHICS
(a)The Registrant, as of the end of the period covered by this report, has
adopted a code of ethics that applies to the Registrant's principal executive
officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of whether these
individuals are employed by the Registrant or a third party.
(b)There have been no amendments, during the period covered by this report, to a
provision of the code of ethics that applies to the Registrants principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of whether these
individuals are employed by the Registrant or a third party, and that relates to
any element of the code of ethics description.
(c)The Registrant has not granted any waivers, including an implicit waiver,
from a provision of the code of ethics that applies to the Registrants principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of whether these
individuals are employed by the Registrant or a third party, that relates to one
or more of the items set forth in paragraph (b) of this item's instructions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1)The Registrant does not have an audit committee financial expert serving
on its audit committee.
(a)(2)Not applicable.
(a)(3)Registrants Audit Committee has determined that it will retain the
services of an independent expert when and if such need arises.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) AUDIT FEES: The aggregate fees billed for each of the last two fiscal years
for professional services rendered by the principal accountant for the audit of
the registrant annual financial statements or services that are normally
provided by the accountant in connection with statutory and regulatory filings
or engagements for those fiscal years are $8,500 in 2000 and $8,800 in 2001.
(b) AUDIT-RELATED FEES: The aggregate fees billed in each of the last two fiscal
years for assurance and related services by the principal accountant that are
reasonably related to the performance of the audit of the registrant financial
statements and are not reported under paragraph (a) of this Item are NONE.
(c) TAX FEES: The aggregate fees billed in each of the last two fiscal years for
professional services rendered by the principal accountant for tax compliance,
tax advice, and tax planning are $1,800 in 2000 and $1,600 in 2001. Tax Fees
represent tax compliance services and tax consultation provided in connection
with the preparation of the Registrants federal income tax and excise tax
returns and compliance with IRS regulations.
(d) ALL OTHER FEES: The aggregate fees billed in each of the last two fiscal
years for products and services provided by the principal accountant, other than
the services reported in paragraphs (a) through (c) of this Item are NONE.
(e)(1) Disclose the audit committee pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
Audit Committee Pre-Approval Policy. All services to be performed for the
Registrant by Stockman Kast Ryan & Company LLP must be pre-approved by the audit
committee. All services performed during 2000 and 2001 were pre-approved by the
committee.
(e)(2) The percentage of services described in each of paragraphs (b) through
(d) of this Item that were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:
(b) Not applicable
(c) 0%
(d) Not applicable
(f) The percentage of hours expended on the principal accountants engagement to
audit the registrants financial statements for the most recent fiscal year that
were attributed to work performed by persons other than the principal
accountants full-time, permanent employees was NONE.
(g) The aggregate non-audit fees billed by the registrants accountant for
services rendered to the registrant, and rendered to the registrants investment
adviser (not including any sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another investment adviser),
and any entity controlling, controlled by, or under common control with the
adviser that provides ongoing services to the registrant for each of the last
two fiscal years of the registrant was NONE in 2000 and NONE in 2001.
(h) The registrants audit committee of the board of directors has considered
whether the provision of non-audit services that were rendered to the
registrants investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule
2-01 of Regulation S-X is compatible with maintaining the principal accountants
independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Investments in securities of unaffiliated issuers is included as part of the
reports to stockholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 10. CONTROLS AND PROCEDURES
(a)The registrants principal executive officer and principal financial officer
have concluded that the registrant disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended
are effective based on their evaluation of these controls and procedures as of a
date within 90 days of the filing date of this document.
(b)There were no changes in the registrant internal controls over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during
the registrant last fiscal half-year (the registrant second fiscal half-year in
the case of an annual report) that has materially affected, or is reasonably
likely to materially affect, the registrant internal control over financial
reporting.
Item 11. Exhibits.
(a)(1) Code of ethics, or any amendment thereto, that is the subject of
disclosure required by Item 2 is attached hereto.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are
attached hereto.
- --------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant)Combined Penny Stock Fund, Inc.
By (Signature and Title)* /s/John R. Overturf
John R. Overturf, President
Date: November 09, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/John R. Overturf
John R. Overturf, President
Date: November 09, 2004
By (Signature and Title)* /s/Stan Pittman
Stan Pittman, Chief Accounting Officer
Date: November 09, 2004
Fund Directors
Business Experience
and Directorships
Name, Age and Address Position During the Past 5 Years
- --------------------- -------- -----------------------
John R. Overturf*(41) President, Mr. Overturf serves as President
6180 Lehman Dr 103 since of the Combined Penny Stock Fund,
Colorado Springs, August 1996 Inc., a closed-end stock fund, a
Colorado 80918 Director position he has since August 1996.
From March From September 1993 until September
1996 1996, Mr. Overturf served as Vice-
President of the Rockies Fund, Inc.
A closed-end stock market fund. Mr.
Overturf serves as the President
Of R.O.I., Inc., a private
Investment company, a position he
Has held since 1993. From June 1984
until February 1992, Mr. Overturf
served as Vice-President of Colorado
National Bank. Mr. Overturf holds a
Bachelor of Science degree in
Finance from the University of
Northern Colorado. Mr. Overturf
also is a director of BioSource
International, Inc. a California
Corporation.
A. Leonard Nacht*(73) Secretary From April 1990 to October 1991, P.O. Box 1679
since April Dr. Nacht was Secretary of Redwood Edwards, CO 81632 1990 MicroCap
Fund, Inc. ("RWCF"). From
Director 1957 to 1994, Dr. Nacht was in the
since private practice of denistry. Dr.
February Nacht is currently retired as a
1990 dentist. Dr. Nacht has a DDS degree
from the University of Washington
and is a member of the American and
Colorado Dental Asociations.
Jeffrey J. Kormos (61) Director From August, 2001 until present, Mr.
8751 N 51st Ave 115 since Kormos has been employed as an
Glendale, Az 85302 July 1997 account executive with Samco
Financial Services, Inc. From
August 1994 to August 2002, he was
employed as an account executive
with Yee, Desmond, Schroeder & Allen
Inc., an NASD member stockbrokerage
firm. From March 1993 to August
1994, he was employed as an account
executive with G. R. Stuart &
Company, Inc. From December 1992 to
March 1993, Mr. Kormos was employed
as an account executive with
Financial Securities Network, Inc.,
and from April 1987 to December 1992
he was employed as an account
executive with Affiliated Securities
Rolf L. Lichtenberg (53)Director Mr. Lichtenberg joined the Portland
956 SE Ankeny St. #1 since staff of Cascadia Revolving Fund in
Portland, OR 97214 August October 2000. Cascadia is a private
2002 non-profit community development financial
institution making loans and providing
technical assistance to small businesses
unable to access credit from traditional
sources. From 1998 to the summer of 2000 He
worked in the Mortgage Loan Department of
Vectra Bank of Colorado in Colorado Springs.
His background consists of seventeen years of
banking knowledge including 12 years as a
commercial lender, loan department head and
branch manager. Mr. Lichtenberg's lending
background began at Security Pacific Bank's
Los Angeles headquarters and continued at
banks in Washington DC, Canada and Colorado.
He also spent five years as a small business
owner/manager in Colorado and several years
as an account executive in the securities
industry. Mr. Lichtenberg received Master of
Business Administration from the University
of Colorado in Boulder in 1976 and a
Bachelor's Degree in Finance also from the
University of Colorado in 1974. He has served
as the president of the Colorado Springs
chapter of the National Kidney Foundation and
as treasurer of the Chamber of Commerce in
Fountain, Colorado.
* Mr. Overturf and Dr. Nacht may be deemed interested persons as that term is
defined under Section 2(a)(19) of the Investment Company Act of 1940, as
amended, by virtue of their being officers as well as directors of the Fund.
The Fund Statement of Additional Information includes additional information
about Fund directors and is available by calling the Fund's phone number, at
719-593-2111.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available calling the Fund
phone number, (719-593-2111.
The Fund has adopted a code of ethics applicable to its principal executive
officer and principal financial officer. A copy of this code is available by
calling the Fund phone number, (719)593-2111.
Combined Penny Stock Fund, Inc
6180 Lehman Drive, Suite 103
Colorado Springs, CO 80918
Phone: (719) 593-2111
Fax: (719) 593-2342
Board of Directors
John R. Overturf
A. Leonard Nacht
Jeffrey J. Kormos
Rolf L. Lichtenberg
Officers
John R Overturf, President
A. Leonard Nacht, Secretary