Form 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended: March 31, 1998
Commission file number: 33-20720-LA
ZENITH VENTURES CORPORATION
Delaware 77-0181849
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
20862 Sarahills Drive, Saratoga, California 95129
(Address of principal executive offices) (Zip Code)
(408) 867-4407
(Registrant's telephone number, including area code)
____________________________________________________________________
(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 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. Yes__X___. No______.
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes__X__. No_____.
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
5,010,000 shares of common stock, $.001 par value.
PART II - FINANCIAL INFORMATION
ZENITH VENTURES CORPORATION
CONSOLIDATED BALANCE SHEET
As of
March 31, 1998 March 31, 1997
Total Cash 8,645 13,551
Securities at market 18,000 18,000
--------------- -----------
Total current assets 26,645 31,551
Other assets 513
Total fixed assets 8,084 7,571
Total assets 34,729 39,635
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts Payable and
accrued expenses 610,579 539,612
Shareholders' equity
Common Stock,
at $0.001 par value 5,000 5,000
Additional paid in capital 503,600 503,600
Class A & B Warrants 1,000 1,000
Accumulated deficit (1,085,450) (1,009,576)
Total shareholders' equity (575,850) (499,976)
Liabilities and
shareholders' equity 34,729 39,636
Prepared without audit
See accompanying notes to financial statements
ZENITH VENTURES CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
For the Period ended
March 31, 1998 March 31, 1997
General & administrative expense 15,040 28,333
Total operating expense 15,040 28,333
Net operating income (loss) (15,040) (28,333)
Interest income 150
Net income (loss) before taxes (15,040) (28,183)
Net income (loss) per common share (0.003) (0.006)
Average number of common
shares outstanding 5,010,000 5,010,000
Prepared without audit
See accompanying notes to financial statements
ZENITH VENTURES CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOW
For the Period ended
March 31, 1998 March 31, 1997
Increase (decrease) in cash
Net income (loss) for the period (15,040) (28,183)
Changes in assets and liabilities
Accounts receivable 654,922
Accounts payable 15,032 (635,849)
Net cash used for operations (8) (9,110)
Net increase (decrease) in cash (8) (9,110)
Cash at beginning of period 8,653 22,661
Cash at end of period 8,645 13,551
Prepared without audit
See accompanying notes to financial statements
ZENITH VENTURES CORPORATION
NOTES TO FINANCIAL STATEMENTS
Note 1. - The Company and its significant accounting policies:
Zenith Ventures Corporation ("Zenith" or the "Company") is a Delaware
corporation formed on February 16, 1988. On February 14, 1989 the Company
acquired all shares of the outstanding common stock (all of the issued and
outstanding shares) of Epic Industries Inc. ("Epic"), a Delaware corporation.
In exchanges, shareholders of Epic received 3,200,000 shares of the
Company's common stock.
Epic, incorporated in February 1989, is a corporation which currently has
rights to operate two businesses or to receive payments therefrom. (See
management's discussion of the business.)
Cash equivalent -
The Company considers all highly liquid securities, or debt instruments
with a maturity of three months or less, to be cash equivalents.
Income Taxes -
Provision for income taxes is based on results of operations as reported
in the financial statements. The Company had net operating loss carry forwards
at March 31, 1998 which may be utilized to reduce future taxable income. No
asset was recorded for the potential future tax benefit of this loss due to its
realization not being assured.
Earnings per share -
Earnings (loss) per share are based on the weighted average number of
shares outstanding during each period.
Note 2. - Related party transactions
During the period from inception through March 31, 1998, the Company
occupied office space and received management, secretarial, and administrative
services from various officer/shareholders at no cost to the Company.
Note 3. - Notes receivable:
The Company had an Agreement for sale of rights to market software
products outside the U.S. and the U.K. These were shown on previous balance
sheets as receivables in current assets with a corresponding reserve in current
liabilities. The Company has elected to remove related entries from the
current balance sheet.
Note 4. - Capital Stock
The Company has one class of common stock with $.001 par value. There are
50,000,000 shares authorized with 5,010,000 shares outstanding.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
The Company has developed certain computer software products intended for
secure data management and is currently engaged in efforts to market these.
These products were embedded into software of the largest commercial intranet
currently being deployed in Asia.
Management also spends a portion of its time seeking additional business
opportunities for the Company.
.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings. The Company has brought suit against certain
foreign citizens for return of equity in a subsidiary. It has also filed suit
against a former marketing representative of that company for breach of
contract and attempted theft of intellectual property. It has also prepared
a suit against a former vice president and director for breach of fiduciary
duty and attempted usurpation of a corporate opportunity.
Item 2. Changes in Securities. There have been no changes in securities of
the Company during the period.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
/s/ George H. Didinger
GEORGE H. DIDINGER, President
Date: May 1, 1998 /s/ George H. Didinger
GEORGE H. DIDINGER, President and Director/