SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Quarter Ended May 31, 1998
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Commission File No. 33-2749
FIRST MORTGAGE CORPORATION
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(Exact name of registrant as specified in its charter)
Incorporated under the laws of the State of
Utah 87-03202209
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(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification Number)
257 East 200 South, Suite 950, Salt Lake City, Utah 84111
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(Address of Principal Executive Offices)
Registrant's telephone number, including area code
(801) 363-7663
N/A
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Former name, former address and former fiscal year,
if changed since last report
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 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.
(1) Yes X No
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(2) Yes X No
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Indicate the number of shares outstanding of each class of common stock as
of August 1, 1999.
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51,101,680 Common Stock (Par Value $.001)
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First Mortgage Corporation
Form 10-Q
Three Months Ended May 31, 1998
INDEX
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Page
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PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . 6
Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . 7
Note to Financial Statements . . . . . . . . . . . . . . . . . . . . . . 8
Management's Discussion and Analysis of
the Statement of Income. . . . . . . . . . . . . . . . . . . . . . . . . 9
PART II Other Information
ITEM 1 Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . .10
ITEM 2 Changes in Securities . . . . . . . . . . . . . . . . . . . . . . .10
ITEM 3 Defaults upon Senior Securities. . . . . . . . . . . . . . . .10
ITEM 4 Submission of Matters to a Vote of Security Holders . . . . . . . .10
ITEM 5 Other Information. . . . . . . . . . . . . . . . . . . . . . .10
ITEM 6 Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . .10
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11
First Mortgage Corporation
Financial Statements
May 31, 1998
&
February 28, 1998
First Mortgage Corporation
Balance Sheets
May 31, 1998 and February 28, 1998
(Unaudited)
May February
31, 1998 28, 1998
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Assets
Current Assets
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Cash in Bank $ 7,591 $ 198,335
Cash in Savings 100,000 100,000
Other Receivables -0- 9,509
Contracts Receivable 15,000 15,000
Notes Receivable 551,500 339,000
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Total Current Assets 674,091 661,844
Fixed Assets
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Office Equipment 2,161 2,261
Leasehold Improvements 435 470
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Total Fixed Assets 2,596 2,731
Other Assets
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Certificate of Deposit 200,000 200,000
Land 47,968 47,968
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Total Other Assets 247,968 247,968
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Total Assets $ 924,655 $ 912,543
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See Accompanying Note
4
First Mortgage Corporation
Balance Sheets -Continued-
May 31, 1998 & February 28, 1998
(Unaudited)
May February
31, 1998 28, 1998
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Liabilities and Stockholders' Equity
Current Liabilities
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Accounts Payable $ -0- $ 883
Taxes Payable 91,336 124,673
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Total Current Liabilities 91,336 125,556
Stockholders' Equity
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Common Stock, 100,000,000
Shares Authorized at $0.001 Par Value;
51,101,680 Shares Issued & Outstanding 51,102 51,102
Capital in Excess of Par Value 242,697 242,697
Retained Earnings 539,520 493,188
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Total Stockholders' Equity 833,319 786,987
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Total Liabilities &
Stockholders' Equity $ 924,655 $ 912,543
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See Accompanying Note
5
First Mortgage Corporation
Statements of Operations
For the Three Month Periods Ended May 31, 1998 & 1997
(Unaudited) (Unaudited)
1998 1997
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Revenues
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Mortgage Recovery $ 94,000 $ 18,143
Interest 21,018 4,944
Bad Debt Recovery 423 380
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Total Revenues 115,441 23,467
Expenses
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Commission Expense 48,000 7,000
Office Expense 2,092 1,438
Rent 2,175 2,175
Professional Fees 59 -0-
Telephone 1,068 507
Depreciation 135 168
Land Expense -0- 249
Travel 302 1,157
Taxes 6,500 20
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Total Expenses 60,331 12,714
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Net Profit Before Taxes 55,110 10,753
Income Taxes 8,778 -0-
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Net Profit After Taxes $ 46,332 $ 10,753
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Earnings Per Share $ .001 $ .00
Weighted Average Shares Outstanding 51,101,680 51,101,680
See Accompanying Note
6
First Mortgage Corporation
Statements of Cash Flows
For the Three Months Periods Ended May 31, 1998 & 1997
(Unaudited) (Unaudited)
1998 1997
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Cash Flows from Operating Activities
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Net Income $ 46,332 $ 10,753
Adjustments to Reconcile Net Income
to Operating Activities:
Depreciation 135 168
Changes in Operating Assets & Liabilities:
Decrease in Other Receivables 9,509 -0-
Decrease in Prepaid Taxes -0- 4,742
(Decrease) in Accounts Payable ( 883) -0-
(Decrease) in Taxes ( 33,337) -0-
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Net Cash Provided by
Operating Activities 21,756 15,663
Cash Flows from Investing Activities
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Increase in Contracts ( 212,500) -0-
Increase in Land Investment -0- ( 4,329)
Increase in Investment -0- ( 5,000)
Purchase of Equipment -0- ( 2,658)
Collected on Contracts -0- 39,857
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Net Cash Provided by
Investing Activities ( 212,500) 27,870
Cash Flows from Financing Activities
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Net Cash Provided by
Financing Activities -0- -0-
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Increase (Decrease) in Cash ( 190,744) 43,533
Cash at Beginning of Year $ 298,335 $ 470,153
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Cash at End of Year $ 107,591 $ 513,686
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Expense Disclosures
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Interest $ -0- $ -0-
Taxes 8,778 -0-
See Accompanying Note
7
First Mortgage Corporation
Note to Financial Statements
NOTE #1 - Statement Preparation
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The Company has prepared the accompanying financial statements with interim
financial reporting requirement promulgated by the Securities and Exchange
Commission. The information furnished reflects all adjustments which are,
in the opinion of management, necessary for a fair presentation of
financial position and results of operations.
The consolidated financial statements should be read in conjunction with
the consolidated financial statements and notes thereto included in the
Company's February 28, 1998 10-K report.
8
MANAGEMENT'S DISCUSSION AND ANALYSIS
Liquidity and Capital Resources
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Management believes that proceeds from current revenues from interest and
cash reserves will provide sufficient capital to meet the Company's needs
for the next twelve months.
Management believes that its prime source of funds will be interest earned
from the trust deed notes receivable.
Results of Operations
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During the three months period ended May 31, 1998 the Company collected
$94,000 from its mortgage recovery loan package purchased from FDIC or the
RTC. In addition, the Company earned $21,018 in interest from its Trust
Deed Notes. In 1997, for the three months period ended May 31, 1997, the
Company collected $18,143 from its mortgage recovery program and earned
$4,944 in interest.
PART II - OTHER INFORMATION
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Item 1 Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . None
Item 2 Changes in the Rights of the
Company's Security Holders. . . . . . . . . . . . . . . . . . . None
Item 3 Defaults by the Company on its Senior Securities. . . . . . . . .None
Item 4 Results of Votes of Security Holders. . . . . . . . . . . . . . .None
Item 5 Other Information . . . . . . . . . . . . . . . . . . . . . . . .None
Item 6 Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . . .None
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
August 2, 1999 /S/ William S. Greaves
Date:-------------- By:-----------------------------
William S. Greaves, President
Principal Executive Officer,
Principal Financial & Accounting Officer