SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the quarterly period ended September 30, 1996 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 for the transition period from __________________ to __________________ Commission File Number September 30, 1996 EMERGING ALPHA CORPORATION (Exact Name of Registrant as specified in its Charter) Delaware 72-1235449 (State or other Jurisdiction of I.R.S. Employer Incorporation or Organization Identification No.) 220 Camp Street, New Orleans, Louisiana 70130 (Address of Principal Executive Offices) (Zip Code) (504) 524-1801 (Registrant's Telephone Number, including Area Code) Indicate by check mark whether the Registrant (i) 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 (of for such shorter period that the Registrant was required to file such reports) and (ii) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the issuer's classes of Common Stock, as of the latest practicable date. Common Stock, $1.00 par value 43,600 - ---------------------------------- ------------------- Title of Class Number of Shares outstanding at September 30, 1996 Exhibit Index - NONE. 2 EMERGING ALPHA CORPORATION (A Company in the Development Stage) BALANCE SHEETS ASSETS September 30, March 31, 1996 1996 Current Assets Cash and cash equivalents $ 288,310 $ 292,922 Interest Receivable 178 178 Total Current Assets 288,488 293,100 Other Assets - organization costs 700 840 Total Assets $ 289,188 $ 293,940 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable $ $ 1,949 Taxes payable -- Total Current Liabilities 1,949 Stockholders' Equity: Preferred Stock, $1.00 par value; 2,000,000 shares authorized; no shares subscribed, issued and outstanding -- -- Common Stock, $1.00 par value; 20,000,000 shares authorized; 43,600 shares issued and outstanding 43,600 43,600 Additional Paid-in Capital 251,460 251,460 Accumulated Deficit (5,872) (3,069) Total Stockholders' Equity 289,188 291,991 Total Liabilities and Stockholders' Equity $ 289,188 $ 293,940 The accompanying notes are an integral part of these financial statements. 3 EMERGING ALPHA CORPORATION (A Company in the Development Stage) STATEMENT OF OPERATIONS FOR THE FOR THE FOR THE FOR THE SIX MONTHS SIX MONTHS THREE MONTHS THREE MONTHS ENDED ENDED ENDED ENDED Sept. 30, 1996 Sept. 30, 1995 Sept. 30, 1996 Sept. 30, 1995 REVENUES - Interest Income $ 7,747 $ 11,056 $ 3,926 $ 3,125 COSTS AND EXPENSES General and Administrative 10,550 12,141 5,542 5,616 TOTAL COSTS AND EXPENSES $ 10,550 $ 12,141 $ 5,542 $ 5,616 NET INCOME (LOSS) $ (2,803) $ (1,085) $ (1,616) $ (2,491) WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 43,600 43,600 43,600 43,600 INCOME (LOSS) PER COMMON SHARE $ (.06) $ (.02) $ (.04) $ (.06) The accompanying notes are an integral part of these financial statements. 4 EMERGING ALPHA CORPORATION (A Company in the Development Stage) STATEMENT OF CASH FLOWS FOR THE FOR THE FOR THE FOR THE SIX MONTHS SIX MONTHS THREE MONTHS THREE MONTHS ENDED ENDED ENDED ENDED Sept. 30, 1996 Sept. 30, 1995 Sept. 30, 1996 Sept. 30, 1995 CASH FLOWS FROM OPERATING ACTIVITIES Net Income (Loss) $ (2,803) $ (1,085) $ (1,616) $ (2,491) Add item not requiring the use of cash - amortization 140 140 70 70 Adjustments to reconcile net income (loss) to net cash used by operating activities Increase (decrease) accrued expenses Increase (decrease) in accounts payable (1,949) (750) (750) Increase (decrease) in due to related party (1,250) Increase (decrease) in taxes payable (592) (152) CASH (USED) PROVIDED BY OPERATING ACTIVITIES (4,612) (2,287) (1,546) (4,573) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of common stock Increase in Deferred Offering Costs CASH PROVIDED (USED BY FINANCING ACTIVITIES INCREASE (DECREASE) IN CASH (4,612) (2,287) (1,546) (4,573) CASH BALANCE - BEGINNING 293,100 299,021 290,034 301,307 CASH BALANCE - ENDING $ 288,488 $ 296,734 $ 288,488 $ 296,734 The accompanying notes are an integral part of these financial statements. 5 EMERGING ALPHA CORPORATION (A Company in the Development Stage) NOTES TO FINANCIAL STATEMENTS (All information as of September 30, 1996 and 1995 is unaudited) 1. DESCRIPTION OF ORGANIZATION Emerging Alpha Corporation (the "Company") is considered to be in the development stage as defined in Statement of Financial Accounting Standards No. 7. The Company was incorporated under the laws of the State of Delaware on February 10, 1993, for the purpose of seeking out business opportunities, including acquisitions, that the board of directors, in their discretion, believe to be good opportunities. The Company will be heavily dependent on the skills, talents, and abilities of its management to successfully implement its business plan. An affiliate of a director is expected to be the source for most business opportunities submitted to the Company. Due to its currently limited funds and to the fact that the Company will only receive limited capital from a public offering, it is likely that the Company will not be able to compete with larger and more experienced entities for business opportunities which are lower risk and are more attractive for such entities; business opportunities, in which the Company ultimately participates will likely be highly risky and speculative. Since inception, the Company's activities have been limited to capital formation. 2. SIGNIFICANT ACCOUNTING POLICIES Organizational costs relating to the expenses of incorporation will be amortized on a straight-line basis over five years. The financial statements for the three and six months ended September 30, 1996 and 1995 are unaudited, but in the opinion of the management of the Company, contain all adjustments, consisting of only normal recurring accruals, necessary to present fairly the financial position at September 30, 1996, the results of operations for the three and six months ended September 30, 1996 and 1995 and the cash flows for the three and six months ended September 30, 1996 and 1995. The results of operations for the three months ended September 30, 1996 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending March 31, 1996. The operating losses for the periods ended September 30, 1995 have been adjusted from those previously reported for amortization expenses. 3. RELATED PARTY TRANSACTIONS The Company currently has informal arrangements with an affiliate of certain officers and directors for use of office space and professional and clerical services. Professional services, if any, are to be billed to the Company at $60 to $100 per hour. Use of clerical services, if any, are to be billed to the Company at $20 per hour. The Company currently receives the use of office space free of charge. As of September 30, 1996, no services had been billed to the Company. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION The Company has commenced no operations and has no activities. General and Administrative expenses for the three and six months ended September 30, 1996 and 1995 include $3,750 and $7,500 in consulting fees respectively, and in the 1995 periods, $1,024 and $2,732, respectively in legal expenses related to a proposed acquisition. 6 PART II. OTHER INFORMATION Item 1. LEGAL PROCEEDINGS None Item 2. CHANGES IN SECURITIES None Item 3. DEFAULTS UPON SENIOR SECURITIES None Item 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS None Item 5. OTHER INFORMATION None Item 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 3. Certificate of Incorporation and Bylaws 3.1 Restated Certificate of Incorporation* 3.2 Bylaws* 3.3 Proposed Certificate of Amendment to the Restated Certificate of Incorporation* 10. Material Contracts 10.1 1993 Stock Option Plan* 10.2 Form of Stock Option Agreements with Messrs Keenan, Killeen, Jarrell and Chaffe with Schedule of Details* * Incorporated by reference to such exhibit as filed with the Company's registration statement on Form SB-2, file no. 33- 61888-FW (the "Registration Statement") on April 29, 1993. (b) Reports on Form 8-K: None 7 SIGNATURES Pursuant to the requirements 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: November 2, 1996 By: /s/ Burt H. Keenan -------------------------- ------------------ Burt H. Keenan President and Chief Financial Officer (chief financial officer and accounting officer and duly authorized officer) 8