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, 2000
Commission File No. 33-2749
FIRST MORTGAGE CORPORATION
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(Exact name of registrant as specified in its charter)
Utah 87-03202209
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(State or other jurisdiction of (I.R.S. Employer
incorporation of organization) Identification Number)
310 South Main Street, 14th Floor, Salt Lake City, Utah 84111
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(Address of Principal Executive Offices)
(801) 363-7663
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Registrant's telephone number, including area code
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 June 12, 2001.
51,101,680 Common Stock (Par Value $.001)
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First Mortgage Corporation
Form 10-Q
Six Months Ended May 31, 2000
INDEX
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Page
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PART I Financial Information
ITEM 1 Financial Statements
Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . . .3
Statements of Operations. . . . . . . . . . . . . . . . . . . .5
Statements of Cash Flows. . . . . . . . . . . . . . . . . . . .6
Notes to Financial Statements . . . . . . . . . . . . . . . . .7
Management's Discussion and Analysis of
the Statement of Income . . . . . . . . . . . . . . . . . . . .8
PART II Other Information
ITEM 1 Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . .8
ITEM 2 Changes in Securities . . . . . . . . . . . . . . . . . . . . .8
ITEM 3 Defaults upon Senior Securities . . . . . . . . . . . . . . . .8
ITEM 4 Submission of Matters to a Vote of Security Holders . . . . . .8
ITEM 5 Other Information . . . . . . . . . . . . . . . . . . . . . . .8
ITEM 6 Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . .8
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . .9
First Mortgage Corporation
Balance Sheets
May 31, 2000 and February 29, 2000
May February
31, 2000 29, 2000
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(Unaudited)
Assets
Current Assets
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Cash in Bank $ 50,528 $ 71,737
Cash in Savings 100,000 100,000
Other Receivables 3,922 3,922
Notes Receivable (Net of $22,500
allowance for bad debt) 470,175 473,621
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Total Current Assets 624,625 649,280
Fixed Assets (Net) 3,133 1,614
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Other Assets
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Notes Receivable 75,000 75,000
Investment 50,000 50,000
Certificate of Deposit 200,000 200,000
Land 115,761 115,761
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Total Other Assets 440,761 440,761
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Total Assets $ 1,068,519 $ 1,091,655
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Continued
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First Mortgage Corporation
Balance Sheets
May 31, 2000 & February 29, 2000
May February
31, 2000 29, 2000
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(Unaudited)
Liabilities and Stockholders' Equity
Current Liabilities
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Taxes Payable $ - $ 54,458
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Total Current Liabilities - 54,458
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 774,720 743,398
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Total Stockholders' Equity 1,068,519 1,037,197
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Total Liabilities &
Stockholders' Equity $ 1,068,519 $ 1,091,655
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See accompanying notes to financial statements
4
First Mortgage Corporation
Statements of Operations (Unaudited)
For the Three Months Periods Ended May 31, 2000 & 1999
2000 1999
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Revenues
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Mortgage Recovery $ 62,000 $ 130,000
Interest 4,420 4,362
Bad Debt Recovery - 8,000
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Total Revenues 66,420 142,362
Expenses
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Interest Expense - 463
Commission Expense 25,400 47,000
Office Expense 270 225
Rent 970 2,175
Professional Fees 663 1,200
Telephone 354 565
Depreciation 223 146
Land Expense 476 866
Travel 100 3,110
Taxes 6,642 -
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Total Expenses 35,098 55,750
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Net Profit Before Taxes 31,322 86,612
Income Taxes - 29,448
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Net Profit After Taxes $ 31,322 $ 57,164
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Earnings Per Share $ 0.00 $ 0.00
Weighted Average Shares Outstanding 51,101,680 51,101,680
See accompanying notes to financial statements
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First Mortgage Corporation
Statements of Cash Flows (Unaudited)
For the Three Months Periods Ended May 31, 2000 & 1999
2000 1999
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Cash Flows from Operating Activities
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Net Income $ 31,322 $ 57,164
Adjustments to Reconcile Net Income
to Operating Activities:
Depreciation 223 146
Changes in Operating Assets & Liabilities:
Increase (Decrease) in Taxes (54,458) 29,448
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Net Cash Provided by Operating Activities (22,913) 86,758
Cash Flows from Investing Activities
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Purchase of office equipment (1,742) -
Increase in Contracts - (130,000)
Collected on Contracts - 57,500
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Net Cash Provided by Investing Activities (1,742) (72,500)
Cash Flows from Financing Activities
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Increase in Notes Receivable 3,446 -
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Net Cash Provided by Financing Activities 3,446 -
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Increase (Decrease) in Cash (21,209) 14,258
Cash at Beginning of Year 71,737 148,566
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Cash at End of Year $ 50,528 $ 162,824
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Expense Disclosures
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Interest $ - $ -
Taxes - 29,448
See accompanying notes to financial statements
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First Mortgage Corporation
Notes to Financial Statements
NOTE 1 - Corporate History and Purpose
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The Company was incorporated on March 1, 1977, under the laws of the State
of Utah and amended its articles of incorporation April 5, 1982. The
Company's purpose is to act as a Real Estate Mortgage Broker and to take
advantage of any legal business opportunity which appears to have
profitable potential for the Company.
NOTE 2 - Summary of Significant Accounting Policies
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1. Depreciation on assets is recorded using the straight-line method and
a 6 or 10 year life.
2. The Company uses the accrual method of accounting.
3. Revenues and expenses are recognized in the period in which the
activities occur.
4. The Company has had no noncash financing activities.
5. The Company considers all short term, highly liquid investments that
are readily convertible to known amounts, within ninety days as cash.
6. Estimates: The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to
make estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results could
differ from those estimates.
NOTE 3 - 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 29, 2000 10-K report.
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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, 2000 the Company collected
$62,000 from its mortgage recovery loan package purchased from FDIC or the
RTC. In addition, the Company earned $4,420 in interest from its Trust
Deed Notes. In 1998, for the three months period ended May 31, 1998, the
Company collected $130,000 from its mortgage recovery program and earned
$4,362 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
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SIGNATURES
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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.
Date: July 3, 2001 By: /S/ William S. Greaves
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William S. Greaves, President
(Principal Executive Officer)
(Principal Financial & Accounting Officer)
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