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 June 30, 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 Condensed Consolidated
Balance Sheets - June 30, 1999, (Unaudited)
and March 31, 1999 3
Unaudited Condensed Consolidated
Statements of Operations - Three
Months Ended June 30, 1999
and 1998 4
Unaudited Condensed Consolidated
Statements of Cash Flow - Three Months
Ended June 30, 1999 and 1998 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
CONDENSED CONSOLIDATED BALANCE SHEETS
Assets
June 30,
1999 March 31,
(Unaudited) 1999
----------- -----------
Current assets
Cash and cash equivalents .......................... $ 1,701,336 $ 2,350,898
Certificates of deposit ............................ 200,000 200,000
Short term investments ............................. 618,290 --
Other receivables .................................. 7,467 4,103
----------- -----------
Total current assets ............................. 2,527,093 2,555,001
Office furniture, equipment and
other, net of $215,354 of accumulated
depreciation at June 30, 1999,
and $211,694 of accumulated depreciation
at March 31, 1999 ................................. 52,433 56,093
Other assets ........................................ 26,637 26,637
----------- -----------
Total assets ........................................ $ 2,606,163 $ 2,637,731
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable ................................... $ 6,887 $ 12,153
Income taxes payable ............................... 2,000 17,000
Deposits, deferred revenue
and other ......................................... 9,318 9,318
----------- -----------
Total current liabilities ....................... 18,205 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 ............................... (4,045,040) (4,033,738)
----------- -----------
2,587,958 2,599,260
----------- -----------
Total liabilities and
stockholders' equity .............................. $ 2,606,163 $ 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 Months Ended
June 30,
----------------------------
1999 1998
----------- -----------
Revenue
Interest income ........ $ 24,800 $ 11,995
Other income ........... 18,472 5,331
----------- -----------
43,272 17,326
Expenses
Depreciation ........... 3,660 3,294
Other operating expenses 50,914 47,996
----------- -----------
54,574 51,290
----------- -----------
Net loss ................. $ (11,302) $ (33,964)
=========== ===========
Basic loss per share ..... $ (.004) $ (.01)
=========== ===========
Weighted average number of
shares outstanding ..... 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 Three Months Ended
June 30, 1999 June 30, 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) ......................... $ (11,302) $ (33,964)
----------- -----------
Adjustments to reconcile net(loss)
to net cash (used) by operating
activities:
Depreciation ..................... 3,660 3,294
Change in assets and liabilities:
(Increase) in accounts receivable .. (3,364) (738)
(Decrease) in accounts payable ..... (20,266) (21,636)
----------- -----------
Total adjustments .............. (19,970) (19,080)
----------- -----------
NET CASH FLOWS (USED) BY
OPERATING ACTIVITIES .......... (31,272) (53,044)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of short term investments . (618,290) --
Return on investment in limited
liability company ................. -- 57,200
----------- -----------
NET CASH FLOWS PROVIDED (USED)
BY INVESTING ACTIVITIES ....... (618,290) 57,200
----------- -----------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS ................... (649,562) 4,156
CASH AND CASH EQUIVALENTS, BEGINNING
OF YEAR ............................ 2,350,898 333,450
----------- -----------
CASH AND CASH EQUIVALENTS, END OF
QUARTER ............................ $ 1,701,336 $ 337,606
=========== ===========
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 June 30, 1999, and March 31, 1999, and of the condensed consolidated
statements of operations and condensed consolidated statements of cash flows for
the three months ended June 30, 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.
6
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 three months ended June 30,
1999, to $1,701,336 from $2,350,898 for the year ended March 31, 1999 or
$649,562. This is primarily due to the Company's short term investments of
$618,290. The certificates of deposits remained the same at $200,000.
Stockholders' equity decreased from $2,599,260 at March 31, 1999 to
$2,587,958 or $11,302 for the three months ended June 30, 1999.
This primarily due to operating activities.
Results of Operations
For the three months ended June 30, 1999 compared to the three months ended June
30, 1998.
For the three months ended June 30, 1999, the Company's total revenue was
$43,272 as compared to $17,326 for the three months ended June 30, 1998. This
increase in revenue is primarily due to interest and dividend income derived
from the Company's cash and cash equivalents investments.
Total expenses for the three month period ended June 30, 1999, were
$54,574 as compared to $51,290 for the period ended June 30, 1998.
7
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
Secretary/Vice President Operations
Date: August 13, 1999
8