SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended June 30, 1996 Commission File No. 33-30476-D
RENEGADE VENTURE CORPORATION
(Exact name of Registrant as specified in its charter)
COLORADO 84-1108499
(State or other jurisdiction of (I.R.S. Empl. Ident. No.)
incorporation or organization)
90 Madison Street, Suite 707
Denver, Colorado 80206
(Address of Principal Executive Offices) (Zip Code)
(303) 355-3000
(Registrant's Telephone Number, including Area Code)
Indicate by check mark whether the Registrant (1) 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 (or such shorter period that the Registrant was required
to file such reports), and (2) has been subject to such filing to such filing
requirements for at least the past 90 days.
Yes No X
The number of shares outstanding of each of the Registrant's classes of common
equity, as of June 30, 1996 are as follows:
Class of Securities Shares Outstanding
Common Stock, no par value 32,000,000
INDEX
Page of
Report
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Balance Sheets:
As of June 30, 1996 (Unaudited) and December 31, 1995 ................ 3
Statement of Operations (Unaudited):
For the six months ended June 30, 1996 and 1995
and Cumulative from inception (February 13, 1989)
through June 30, 1996................................................. 4
Statements of Cash Flows (Unaudited):
For the six months ended June 30, 1996 and 1995
and Cumulative from inception (February 13, 1989)
through June 30, 1996................................................. 5
Notes to Financial Statements (Unaudited) ............................ 6
Item 2. Management's Discussion and Analysis or Plan of Operation ............ 7
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ..................................... 7
Signatures ....................................................... 8
-2-
RENEGADE VENTURE CORPORATION
(A Development Stage Company)
Balance Sheets
(Unaudited)
June 30, Dec. 31,
1996 1995
ASSETS ------- -------
CURRENT ASSETS
Cash ...................................... 29,553 32,208
------- -------
Total Current Assets .................... 29,553 32,208
TOTAL ASSETS ................................... 29,553 32,208
------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable .......................... 325 385
------- -------
Total Liabilities ..................... 325 385
------- -------
STOCKHOLDERS' EQUITY
Common stock, $.0001 par value; 100,000,000 3,200 3,200
shares authorized, 32,000,000 shares issued
and outstanding
Additional paid-in capital ................ 59,925 59,925
Deficit accumulated during the ............ (33,897) (31,302)
development stage
Total Stockholders' Equity ................. 29,228 31,823
------- -------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY ......................... 29,553 32,208
------- -------
See accompanying notes to financial statements.
-3-
RENEGADE VENTURE CORPORATION
(A Development Stage Company)
Statement of Operations
(Unaudited)
Cumulative
from
inception
(Feb. 13,
For The Six 1989)
Months Ended, through
June 30, June 30, June 30,
1996 1995 1996
-------- ------- -----
Revenues 0 0 0
-------- ------- -----
Costs and Expenses:
Legal and accounting services 2,080 2,120 22,390
Stock transfer and promotion 265 300 15,305
Office and postage .......... 250 275 2,171
Amortization ................ 0 0 1,760
Total Expenses ................. 2,595 2,695 41,626
Loss from operations ........... (2,595) (2,695) (41,626)
-------- -------- ------
Other Income
Interest income ............. 0 0 8054
Net Loss Incurred during
Development Stage ................ (2,595) (2,695) (33,572)
-------- -------- --------
Net Loss per common share (1) .... -- -- --
-------- -------- --------
Weighted average shares .......... 32,000,000 32,000,000 32,000,000
outstanding
-------- -------- --------
Dividends declared per common .... -- -- --
share
-------- -------- --------
(1) Net loss per share is less than $.01 in each period presented.
RENEGADE VENTURE CORPORATION
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
Cumulative
from
For the Six inception
months ended, (Feb. 13,
June 30, 1989) through
1996 1995 June 30, 1996
----- ----- --------
Cash flow operating activities
Net loss ........................... (2,595) (2,695) (33,897)
Adjustments to reconcile net loss to 0 0 0
net cash used by operating activities:
Amortization .................. 0 0 1,760
Increase (decrease) in accounts (60) (870) 325
payable
Net cash provided by (used In) ----- ----- --------
operating activities ............. (2,655) (3,565) (31,812)
Cash flow from investing activities
Net cash provided by investing act . 0 0 (1,760)
----- ----- --------
Cash flows from financing activities
Net cash provided by financing act . 0 0 63,125
----- ----- --------
Net increase (decrease) in cash ......... (2,655) (3,565) 29,553
----- ----- --------
Cash and cash equivalents at beg ........ 32,208 36,758 0
period ----- ----- --------
Cash and cash equivalents at end of ..... 29,553 33,193 29,553
period ----- ----- --------
See accompanying notes to financial statements.
RENEGADE VENTURE CORPORATION
(A Development Stage Company)
Notes to Financial Statements (Unaudited)
Note 1.
Renegade Venture Corporation ("Company") was incorporated in the State of
Colorado on February 13, 1989. The Company was to obtain funding from a
public offering in order to provide a vehicle to acquire or engage in one
or more business opportunities believed by management to have a potential
for profitability. The accompanying unaudited financial statements of the
Company have been prepared on the accrual basis and in accordance with the
instructions to Form 10-QSB and do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. These financial statements should be read
in conjunction with the financial statements and notes thereto included in
the Company's annual report on Form 10-KSB for the fiscal year ended
December 31, 1995.
Note 2.
During the fiscal year ended December 31, 1995, the Company incurred a net
loss of $4,065 and, as of that date, had accumulated a deficit of $30,977.
The Company had no operations during the second quarter covered by these
statements and realized no revenues, although it incurred a loss for the
quarter of $285.
Note 3.
Future working capital requirements are dependent on the Company's ability
to attain profitable operations, to restructure its financing arrangements
or capital structure, and to obtain financing or new capital as required.
It is not possible at this time to predict the outcome of future
operations, restructuring efforts, or whether the necessary alternative
financing can be arranged.
Note 4.
A change of control of the Company occurred effective April 13, 1994 in
which the former officers and directors resigned and were replaced by the
current officers and directors, and two of the officers of the Company sold
an aggregate of 13,353,125 shares owned by them to Corporate Communications
Network, Inc., for cash. This transaction did not involve any issuance of
additional shares by the Company.
Subsequent to quarter ended June 30, 1996, the Company's shareholders
approved at a special meeting an amendment to the Company's certificate of
incorporation which effected a 1-for-100 reverse split (combination) of the
Company's Common Stock and, in conjunction with such combination, an
increase in the number of authorized shares and eliminate the $.0001 per
share par value of the common shares, changing them to shares without par
value. As a result of the reverse split, the 32,000,000 common shares of
the Company, $.0001 par value, issued and outstanding prior to the reverse
split were changed into 320,000 common shares without par value. No
preferred shares are issued or outstanding. Following the reverse split and
amendment to the articles of incorporation, the Company's articles of
incorporation authorize the issuance of 50,000,000 shares of common stock
without par value and 15,000,000 preferred shares without par value.
Note 5.
Loss per common share is based on the weighted average number of common
shares outstanding during the period.
Item 2. Management's Discussion and Analysis or Plan of Operation.
Business. Renegade Venture Corporation, a Colorado corporation ("Company"),
is in the development stage in accordance with Financial Accounting Standards
Board Standard No. 7. The Company has not been operational, other than
occasionally searching for a business or venture to acquire, as described below,
or had revenues other than interest income since its inception.
The Company's sole business at this point is to seek to acquire assets of
or an interest in a small to medium-size company or venture actively engaged in
a business generating revenues or having immediate prospects of generating
revenues. The Company plans to acquire such assets or shares by exchanging
therefor the Company's securities. In order to avoid becoming subject to
regulation under the Investment Company Act of 1940, as amended, the Company
does not intend to enter into any transaction involving the purchase of another
corporation's stock unless the Company can acquire at least a majority interest
in that corporation. The Company has not identified any industry, segment within
an industry or type of business, nor geographic area, in which it will
concentrate its efforts, and any assets or interest acquired may be in any
industry or location, anywhere in the world. The Company will give preference to
profitable companies or ventures with a significant asset base sufficient to
support a listing on a national securities exchange or quotation on the NASDAQ
system. Members of management (all of whom are devoting part time to the
Company's affairs) plan to search for an operating business or venture which the
Company can acquire, thereby becoming an operating company. There is no
assurance that the Company will be successful in this endeavor. The Company has
no operations or source of revenues. Unless the Company succeeds in acquiring a
company or properties which provide cash flow, the Company's ability to survive
is in doubt.
Financial Condition. During the quarter ended June 30, 1996 (second quarter
of this year), the Company had no revenues and did not have any operations.
Expenses for this period were minimal, resulting in a loss of $285. The Company
has, since inception, accumulated a deficit (net loss) through the end of this
quarter of $33,572.
Liquidity and Capital Resources. The Company had cash on hand at the end of
the quarter of $29,553, the remnant of funds raised in its initial public
offering. The Company had no other cash or other assets, nor any current plans
to raise capital. Whether the Company ultimately becomes a going concern depends
upon its success in finding and acquiring a suitable private business and the
success of that acquired business. At this time, the Company has no commitment
for any capital expenditure and foresees none. Offices are provided without
charge to the Company. However, the Company will incur routine fees and expenses
incident to filing of periodic reports with the Securities and Exchange
Commission, and it will incur fees and expenses in the event it makes or
attempts to make an acquisition. As a practical matter, the Company expects no
significant operating costs other than professional fees payable to attorneys
and accountants.
In regard to a proposed acquisition, the Company anticipates requiring the
target company to deposit with the Company a retainer which the Company can use
to defray such professional fees and costs. In this way, the Company could avoid
the need to raise funds for such expenses or becoming indebted to such
professionals. Moreover, investigation of business ventures for potential
acquisition will involve some costs, at the least postage and long-distance
telephone charges. Management hopes, once a candidate business venture is deemed
to be appealing, to likewise secure a deposit from the business venture to
defray expenses of further investigation, such as air travel and lodging
expenses. An otherwise desirable business venture may, however, decline to post
such a deposit.
The Company has no credit available to it and is unable to borrow money.
Management does not anticipate raising funds through the sale of securities or
otherwise, and it is unlikely that significant funds could be raised in a
securities offering, in any event. This inability to raise funds could
negatively affect the Company's realization of its business purpose.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits. Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K. NONE
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this Report on Form 10-QSB to be signed on its behalf by the undersigned,
thereunto duly authorized.
DATED: August 15, 1996
RENEGADE VENTURE CORPORATION
By /s/ Randy J. Sasaki
-------------------
Randy J. Sasaki,
Chief Executive Officer
and Chief Financial Officer