U. S. Securities and Exchange Commission
Washington, D. C. 20549
Form 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 10 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ________ to ________.
Commission File Number: 0-9458
Eagle Exploration Company
(Exact name of Registrant as specified in it charter)
Colorado 84-0804143
-------------------------------- --------------------------
(State or other jurisdiction of (I.R.S. Employer ID Number)
incorporation or organization)
1801 Broadway, Suite 1420
Denver, Colorado 80202
(Address of principal executive offices)
(303) 296-3677
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by court. Yes X No .
State the number of shares outstanding of each of the issuer's classed of
common equity, as of the latest practicable date:
3,072,836.
Transitional Small Business Disclosure format: (Check One) Yes No X.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
PART I FINANCIAL INFORMATION PAGE
Item 1 Unaudited Condensed Consolidated
- ------
Balance Sheets - December 31, 1999,
and March 31, 1999 3
Unaudited Condensed Consolidated
Statements of Operations - Three
Months Ended December 31, 1998
and 1999 and Nine Months Ended
December 31, 1998 and 1999 4
Unaudited Condensed Consolidated
Statement of Cash Flow - Nine Months
Ended December 31, 1998 and 1999 5
Notes to Unaudited Condensed
Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis
- ------
of Financial Condition and Results
of Operations 7
PART II SIGNATURES 8
PART I
FINANCIAL INFORMATION
Item 1
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Assets
December 31, March 31,
1999 1999
----------- -----------
Current assets
Cash and cash equivalents .......................... $ 1,549,793 $ 2,350,898
Certificates of deposit ............................ 200,000 200,000
Short term investments ............................. 773,065 --
Other receivables .................................. 7,929 4,103
----------- -----------
Total current assets ............................. 2,530,787 2,555,001
----------- -----------
Office furniture, equipment and
other, net of $222,674 of accumulated
depreciation at December 31, 1999,
and $211,694 of accumulated
depreciation at March 31, 1999 ..................... 45,113 56,093
Other ............................................... 26,637 26,637
----------- -----------
Total assets ........................................ $ 2,602,537 $ 2,637,731
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable ................................... $ 13,259 $ 12,153
Income taxes payable ............................... 2,000 17,000
Deposits, deferred revenue
and other ......................................... 9,318 9,318
----------- -----------
Total current liabilities ....................... 24,577 38,471
----------- -----------
Stockholders' equity
Common stock, no par value;
authorized 10,000,000 shares;
3,072,836 shares issued and
outstanding ...................................... 6,632,998 6,632,998
Accumulated deficit ............................... (4,055,038) (4,033,738)
----------- -----------
2,577,960 2,599,260
----------- -----------
Total liabilities and
stockholders' equity .............................. $ 2,602,537 $ 2,637,731
=========== ===========
See Notes to Unaudited Condensed Consolidated Financial Statements.
- 3 -
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three For the Three For the Nine For the Nine
Months Ended Months Ended Months Ended Months Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
----------- ----------- ----------- -----------
Revenue:
Income from investment in
limited liability company .... $ -- $ (13,150) $ -- $ 2,035,429
Interest income ............... 40,528 35,565 91,466 68,913
Other income .................. 15,128 27,491 46,342 37,950
----------- ----------- ----------- -----------
Total revenue .................. 55,656 49,906 137,808 2,142,292
----------- ----------- ----------- -----------
Expenses:
Depreciation .................. 3,660 3,580 10,980 10,454
Other operating expenses ...... 46,458 49,977 148,128 196,047
----------- ----------- ----------- -----------
Total expense ............. 50,118 53,557 159,108 206,501
----------- ----------- ----------- -----------
Net income (loss) ......... $ 5,538 $ (3,651) $ (21,300) $ 1,935,791
=========== =========== =========== ===========
Net income (loss) per share $ .002 $ (.001) $ (.007) $ .63
=========== =========== =========== ===========
Weighted average number of share
outstanding .................. 3,072,836 3,072,836 3,072,836 3,072,836
=========== =========== =========== ===========
See Notes to Unaudited Condensed Consolidated Financial Statements.
- 4 -
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine For the Nine
Months Ended Months Ended
December 31, December 31,
1999 1998
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income .................. $ (21,300) $ 1,935,791
----------- -----------
Adjustments to reconcile net (loss)
income to net cash (used) provided
by operating activities:
Depreciation ..................... 10,980 10,454
Change in assets and liabilities:
(Increase) in accounts receivable .. (3,826) (9,200)
(Decrease) in accounts payable ..... (13,894) (17,113)
----------- -----------
Total adjustments .............. (6,740) (15,859)
----------- -----------
NET CASH FLOWS (USED) PROVIDED
BY OPERATING ACTIVITIES ....... (28,040) 1,919,932
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of certificates of deposit -- (500,000)
Purchase of furniture and equipment -- (29,355)
Purchase of short term investments . (773,065) --
Return on investment in limited
liability company ................. -- 24,725
----------- -----------
NET CASH FLOWS (USED) BY
INVESTING ACTIVITIES .......... (773,065) (504,630)
----------- -----------
NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS ................... (801,105) 1,415,302
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR ............................ 2,350,898 333,450
----------- -----------
CASH AND CASH EQUIVALENTS, END OF
THE QUARTER ........................ $ 1,549,793 $ 1,748,752
=========== ===========
See Notes to Unaudited Condensed Consolidated Financial Statements.
- 5 -
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Opinion of Management
1. The financial information furnished reflects all adjustments which are, in
the opinion of management, necessary to a fair presentation of the financial
position at December 31, 1999, and March 31, 1999, and of the condensed
consolidated statements of operations for the nine months ended December 31,
1998 and 1999, and for the three months ended December 31, 1998 and 1999, and
condensed consolidated statements of cash flows for the nine months ended
December 31, 1998 and 1999. The results of operations and statements of cash
flows for the periods presented are not necessarily indicative of those to be
expected for the entire year.
2. The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles. For further information refer to the audited consolidated
financial statements and notes thereto for the year ended March 31, 1999,
included in the Company's 10-KSB filed with the Securities and Exchange
Commission on June 30, 1999.
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operation.
Financial Condition, Liquidity and Capital Resources
Cash and cash equivalents decreased for the nine months ended December 31,
1999, to $1,549,793 from $2,350,898 for the year ended March 31, 1999, or
$801,105. This is primarily due to the Company's investment in certain short
term investments of $773,065. The certificates of deposits remained at $200,000.
Stockholders' equity decreased from $2,599,260 to $2,577,960 or $21,300 for
the nine months ended December 31, 1999. This is primarily due to operating
activities.
Results of Operations
For the three months ended December 31, 1999, compared to the three months
ended December 31, 1998, and for the nine months ended December 31, 1999,
compared to the nine months ended December 31, 1998.
For the three months ended December 31, 1999, total revenue was $55,656 and
compared to $49,906 for the three months ended December 31, 1998. The total
revenue for the nine months ended December 31, 1999, was $137,808 as compared to
$2,142,292 for the nine months ended December 31, 1998. This significantly
larger number of total revenue for the period ended December 31, 1998, was due
to the sale of the apartment complex in that period.
Total expenses for the three month period ended December 31, 1999, were
$50,118 as compared to $53,557 for the three month period ended December 31,
1998. For the nine months ended December 31, 1999, total expenses were $159,101
and total expenses for the nine month period ended December 31, 1998, were
$206,501.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
PART II
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.
EAGLE EXPLORATION COMPANY
(Registrant)
By: /s/ Raymond N. Joeckel
Raymond N. Joeckel
President/Chief Financial Officer
By: /s/ Paul M. Joeckel
Paul M. Joeckel
Secretary
Date: February 12, 2000