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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the quarterly period ended December 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from _______ to __________
Commission file number _________________________
PROGRESSIVE ASSET MANAGEMENT, INC.
(Exact name of small business issuer as specified in its charter)
CALIFORNIA 90-804853
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1010 Oak Grove Road, Concord, CA 94518
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(Address of principal executive offices)
800-786-2998
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(Issuer's telephone number)
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
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 l2, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 1,520,604 shares of Common Stock as
of December 31, 2000.
Transitional Small Business Disclosure Format (Check one): Yes [X] No [ ]
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PART I-FINANCIAL INFORMATION
Item 1. Financial Statements.
PROGRESSIVE ASSET MANAGEMENT, INC.
Condensed Consolidated Statement of Financial Condition
December 31, December 31,
2000 1999
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Assets
Current assets
Cash and cash equivalents $ 528,683 $ 418,793
Short-term investment, at fair value 0 0
Commissions and other receivables 86,665 48,416
Other current assets 23,339 33,790
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Total current assets 638,687 500,999
Property and equipment, net 13,799 13,971
Other assets 40,273 34,350
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Total assets $ 692,759 $ 562,232
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Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued liabilities
$ 35,381 $ 51,096
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Total current liabilities 35,381 51,096
Other liabilities 78,074 119,000
Preferred stock, Series A 45,608 58,366
Stockholders' equity
Preferred stock, Series B 25,000 25,000
Common stock, no par value 1,443,126 1,479,250
Retained earnings (accumulated deficit) (934,430) (1,183,362)
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Total stockholders' equity 485,154 344,132
Total liabilities and stockholders' equity
$ 667,132 $ 562,232
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PROGRESSIVE ASSET MANAGEMENT, INC.
Condensed Consolidated Statement of Operations
Three months ended Three months ended
December 31, 2000 December 31, 1999
============================ ==========================
Total revenues $ 189,125 $ 129,488
Costs and expenses
Employee compensation and benefits 47,436 44,329
Other costs and expenses 67,616 51,570
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Total costs and expenses 115,052 95,899
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Income before income taxes 74,073 33,589
Taxes on income 0 0
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Net income (loss) $ 74,073 $ 33,589
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Net income (loss) per share
Basic $ 0.05 $0.02
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Fully diluted $ 0.03 $ 0.01
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Shares used to compute per share amounts
Basic 1,562,368 1,583,557
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Fully diluted 2,736,687 2,757,876
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PROGRESSIVE ASSET MANAGEMENT, INC.
Condensed Consolidated Statement of Cash Flows
Three Months Ended Three Months Ended
December 31, 2000 December 31, 1999
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Cash flows from operating activities
Net income (loss) $74,073 $33,589
Adjustments to reconcile net income (loss) to net
cash provided (used) by operating activities (25,329) 34,432
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Net cash provided (used) by operating activities 48,744 34,432
Net cash provided (used) by investing activities (18,145) 0
Net cash provided (used) by financing activities (39,083) (56,833)
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Net change in cash and cash equivalents (8,484) 11,188
Cash and cash equivalents,
Beginning of period 537,167 407,605
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End of period $528,683 $418,793
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Item 2. Management's Discussion and Analysis or Plan of Operation.
(A) Results of Second Quarter. The results of PAM's Second Quarter is described
in the "REPORT TO SHAREHOLDERS" dated February 1, 2001. A copy is included as
Exhibit 19 to this Form 10-QSB and is incorporated by reference as part of this
Item 2.
(B) National Office Move. PAM's national office has completed its move to 1010
Oak Grove Road, Concord, CA 94518. The phone number will remain 800-786-2898,
and the email address will remain pam@progressive-asset.com.
PAM recently entered into a lease with Mr. Camejo for the space now occupied as
the principal offices of PAM. The term of the lease ends October 1, 2002. The
office space is approximately 960 square feet. The rent, payable monthly, is
$1,660.00, and includes utilities. PAM's management believes the terms of the
lease are below market rate at the time the lease was entered into and was
approved by a majority of the disinterested members of the Board of Directors.
Any statements contained in this Quarterly Report that relate to future plans,
events, or performance are forward-looking statements that involve risks and
uncertainties. These include: but are not limited to, changes in general
economic conditions, particularly the recent down-turn in the economy, intense
competition for customers, pressures on brokerage, other fees charged, most
notably the competition among firms offering brokerage services on-line, the
mood of the investing public and the changes in political attitude toward
socially responsible investments. PAM cautions that the foregoing list of
important factors is not exclusive. Developments in any of these areas could
cause PAM's results to differ materially from results that have been or may be
projected by or on behalf of PAM. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date of
this statement. PAM does not undertake to update any forward-looking statements
that may be made from time to time by or on behalf of PAM.
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PART II-OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits required by Item 601 of Regulation S-B.
Exhibit 2 (a) Restated Articles of Incorporation(1)
(b) Bylaws(1)
Exhibit 6 (a) Stock Option Plan(1)
(b) Standstill Agreement between PAM and Paradox Holdings(1)
(c) Agreement between PAM and Sustainable Systems, Inc.(2)
Exhibit 12 (a) Purchase Agreement Among Paradox Holdings, PAM and FWG(1)
Exhibit 19 Report to Shareholders, dated February 1, 2001
Exhibit 27 Financial Data Schedule
Footnotes: (1) Incorporated by reference to the Company's Registration Statement
on Form 10-SB, Amendment 2, filed August 9, 2000. (2) Incorporated by reference
to the Company's Form 10-KSB, filed on September 28, 2000.
(b) Reports on Form 8-K. No Forms 8-K were filed during the quarter for which
this report is filed, listing the items reported, any financial statements filed
and the dates of such reports.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.
PROGRESSIVE ASSET MANAGEMENT, INC.
Date: February 1, 2001 /s/ Eric Leenson
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Eric Leenson, President and
Chief Financial Officer
Date: February 1, 2001 /s/ Catherine Cartier
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Catherine Cartier, Secretary
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