-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CVKCQ4oHZ73gKudhRoo1Md+0f7TPIjt1cHMigKwQtBQU0ySYn1rk9s0C0x5NdDxr bPF1NtRaHHt+Gvwkc1UDCQ== 0000912057-97-011839.txt : 19970404 0000912057-97-011839.hdr.sgml : 19970404 ACCESSION NUMBER: 0000912057-97-011839 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19970403 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: XANTHIC ENTERPRISES INC CENTRAL INDEX KEY: 0000824430 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 943030021 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-17966-LA FILM NUMBER: 97574082 BUSINESS ADDRESS: STREET 1: 8833 SUNSET BLVD STREET 2: SUITE 200 CITY: W HOLLYWOOD STATE: CA ZIP: 90069 BUSINESS PHONE: 3102894947 MAIL ADDRESS: STREET 1: 8833 SUNSET BLVD STREET 2: SUITE 200 CITY: W HOLLYWOOD STATE: CA ZIP: 90069 10-K 1 FORM 10K UNITED STATES U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 1995 COMMISSION FILE NO. 33-17966-LA XANTHIC ENTERPRISES, INC. A Colorado Corporation EIN: 94-3030021 8833 Sunset Blvd., Suite 200 West Hollywood, CA 90069 (310-289-4947) Securities to be registered under Section 12(g) of the Act: Common Shares and Series A and Series B Common Stock Purchase Warrants The registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding period. Aggregate market value. There is no market value as the Company's stock is not trading currently. As of December 31, 1995 there were 5,481,826 shares of Common Stock outstanding. PART I ITEM 1. DESCRIPTION OF BUSINESS. (1) The Company. Xanthic Enterprises, Inc. was incorporated in Colorado on October 27, 1986 and has not yet commenced operations. The primary activity of the Company will involve seeking merger or acquisition candidates. (2) Plan of Operations. The Company plans to seek merger or acquisition candidates. (3) Employees. At the present time the Company has no employees other than its officers. The officers devote as much time as they deem appropriate to the Company's business. The officers are not paid salary or expenses. (4) Administrative Offices. The Company maintains its executive offices at 8833 Sunset Blvd., Suite 200, West Hollywood, CA 90069 pursuant to an oral lease agreement with David Lilly, a shareholder of the Company on a month to month basis. No rent is paid for this office at this time. ITEM 2. PROPERTIES. The Company owns no properties, plans or other real estate, and has no Letters of Intent to purchase or acquire any property. ITEM 3. LEGAL PROCEEDINGS. On November 2, 1991 the State of Oregon issued a cease and desist order ordering the Company to cease and desist issuing unregistered securities in the State of Oregon. The proceeding was based on the distribution of shares and warrants to Oregon shareholders (registered by way of a S-18 registration statement) pursuant to the agreement for such distribution between the Company and Automated Services, Inc. On April 2, 1992 the State of Oregon issued a final order to cease and desist violating any provision of Oregon Securities Law. Xanthic was denied the use of any statutory exemption provided in ORS 59.022 and ORS 59.035. Xanthic, Mark Lilly and Glenn DeCicco were assessed civil penalties of $ 750.00 each for violating ORS 59.055 and ORS 59.132(2). Directors Mark Lilly and Glenn DeCicco were ordered to cease and desist violating any provision of ORS Chapter 59. Neither the Company nor the Directors appealed. The Company has been advised that the effect of the Oregon ruling was to 2 invalidate the issuance and distribution of the registered shares and warrants to residents of Oregon until such time as said securities are registered pursuant to the provisions of the Oregon Securities Law. The number of shares affected by the ruling is estimated to be 188,000 shares owned by approximately 650 residents of Oregon. The 188,000 shares represent approximately 3.4% of the issued and outstanding shares of Xanthic. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. No matters were submitted to the shareholders during the year 1995. PART II ITEM 5. MARKET FOR REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS. There is no established public trading market for the common shares of the Company. ITEM 6. SELECTED FINANCIAL DATA. This information is omitted as allowed by General Instruction 1 of Form 10-K as the information is adequately reflected in the certified financial statements as set forth in Item 8. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. (1) LIQUIDITY. The Company has no cash assets and no liquidity. (2) CAPITAL RESOURCES. The Company has no capital resources. (3) RESULTS OF OPERATIONS. The Company has not operated during the past fiscal year and there are no results of operations. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA Attached one audited financial statements for the Company as of December 31, 1995. 3 XANTHIC ENTERPRISES, INC. (A DEVELOPMENT STAGE COMPANY) FINANCIAL STATEMENTS DECEMBER 31, 1995 AND 1994 4 CONTENTS PAGE AUDITOR'S REVIEW REPORT.................................................... 6 FINANCIAL STATEMENTS: BALANCE SHEET............................................................ 7 STATEMENTS OF OPERATION.................................................. 8 STATEMENT OF STOCKHOLDERS' EQUITY........................................ 9 STATEMENTS OF CASH FLOWS................................................. 10 NOTES TO FINANCIAL STATEMENTS............................................11-12 5 TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF XANTHIC ENTERPRISES, INC.: We have audited the accompanying balance sheets of Xanthic Enterprises, Inc. (a development stage company) as of December 31, 1995 and 1994, and the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended and for the period from October 27, 1986 (inception), to December 31, 1995. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Xanthic Enterprises, Inc. as of December 31, 1995, and 1994, and the results of its operations and cash flows for the years then ended and from October 27, 1986 (inception), to December 31, 1995 in conformity with generally accepted accounting principles. Harlan & Boettger, CPA's San Diego, California February 24, 1997 6 XANTHIC ENTERPRISES, INC. (A DEVELOPMENT STAGE COMPANY) BALANCE SHEETS
December 31, ---------------------------- 1995 1994 -------- -------- ASSETS CURRENT ASSETS: Cash $ - $ - --------- --------- --------- --------- LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) CURRENT LIABILITIES: Accounts payable $ 13,154 $ 11,750 --------- --------- STOCKHOLDERS' EQUITY (DEFICIT): Common stock, $.0001 par value, 50,000,000 shares authorized, 5,481,826 shares issued and outstanding 548 548 Additional paid in capital 11,651 11,651 Deficit accumulated during the development stage (25,353) (22,320) --------- --------- TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (13,154) (11,750) --------- --------- $ - $ - --------- --------- --------- ---------
The accompanying notes are an integral part of these financial statements. 7 XANTHIC ENTERPRISES, INC. (A DEVELOPMENT STAGE COMPANY) STATEMENT OF OPERATIONS
October 27, 1986 For the year ended (Inception) to December 31, December 31, 1995 ------------------------------ ----------------- 1995 1994 ---------- ---------- REVENUES $ - $ - $ - ---------- ---------- ---------- OPERATING EXPENSES General and administrative 1,197 1,205 17,961 ---------- ---------- ---------- LOSS FROM OPERATIONS (1,197) (1,205) (17,961) OTHER INCOME (EXPENSES) Interest expense (207) (424) (6,627) Aborted offering costs - - (17,066) Debt relief - - 17,051 Penalty 750 ---------- ---------- ---------- TOTAL OTHER INCOME (EXPENSES) (207) (424) (7,392) ---------- ---------- ---------- NET LOSS $ (1,404) $ (1,629) $ (25,353) ---------- ---------- ---------- ---------- ---------- ---------- NET LOSS PER COMMON SHARE $ (.0003) $ (.0003) $ (.005) ---------- ---------- ---------- ---------- ---------- ---------- WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING 5,481,826 5,481,826 5,481,826 ---------- ---------- ---------- ---------- ---------- ----------
The accompanying notes are an integral part of these financial statements. 8 XANTHIC ENTERPRISES, INC. (A DEVELOPMENT STAGE COMPANY) STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
Common Stock Accumulated ------------------------- Paid in deficit during Shares Amount Capital development stage Total ------ ------ ------- ----------------- --------- BALANCE, DECEMBER 31, 1993 5,481,826 $ 548 $11,651 $ (22,320) $ (10,121) ---------- --------- ------- --------- --------- Net loss for year - - - (1,629) (1,629) ---------- --------- ------- --------- --------- BALANCE, DECEMBER 31, 1994 5,481,826 $ 548 $11,651 $ (23,949) $ (11,750) ---------- --------- ------- --------- --------- Net loss for year - - - (1,404) (1,404) ---------- --------- ------- --------- --------- BALANCE, DECEMBER 31, 1995 5,481,826 $ 548 $11,651 $ (25,353) $ (13,154) ---------- --------- ------- --------- --------- ---------- --------- ------- --------- ---------
The accompanying notes are an integral part of these financial statements. 9 XANTHIC ENTERPRISES, INC. (A DEVELOPMENT STAGE COMPANY) STATEMENT OF CASH FLOWS
October 27, 1986 For the year ended (Inception) to December 31, December 31, 1995 ------------------------------ ----------------- 1995 1994 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (1,404) $ (1,629) $ (25,353) Adjustments to reconcile net income to net cash provided by (used in) operating activities: Debt relief - - - Common stock issued for services - - 31 Changes in operating assets and liabilities: Accounts payable 1,404 1,629 13,154 --------- -------- --------- NET CASH USED IN (ABSORBED BY) OPERATING ACTIVITIES - - (12,168) --------- -------- --------- CASH FLOWS FROM FINANCING ACTIVITIES Sale of common stock - - 12,168 --------- -------- --------- NET CASH PROVIDED BY FINANCING ACTIVITIES - - - --------- -------- --------- NET INCREASE (DECREASE) IN CASH - - - CASH, BEGINNING OF PERIOD - - - --------- -------- --------- CASH, END OF PERIOD $ - $ - $ - --------- -------- --------- --------- -------- ---------
The accompanying notes are an integral part of these financial statements. 10 XANTHIC ENTERPRISES, INC. (A DEVELOPMENT STAGE COMPANY) NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: ORGANIZATION Xanthic Enterprises, Inc., a Colorado corporation, was incorporated October 27, 1986, and since its inception, the Company has been in the development stage. The Company's primary intended activity is to engage in all aspects of review and evaluation of private companies, partnerships, or sole proprietorships for the purpose of completing mergers or acquisitions with the Company, and to engage in mergers acquisitions with any or all varieties of private entities. The Company has had no operations since its inception except for expenses related to maintaining the corporate status. BASIS OF ACCOUNTING The Company's policy is to use the accrual method of accounting and to prepare and present financial statements which conform to generally accepted accounting principles. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. B. ACCOUNTS PAYABLE: Accounts payable at December 31, 1995 represents amounts due the Company's stock transfer agency, AST. C. CAPITAL STOCK The Company is authorized to issue 50,000,000 shares of common stock, with a par value of $.0001 per share. In May, 1989 the Company became obligated to distribute shares and warrants to the shareholders of ASI pursuant to the S-18 registration statement. The Company distributed 313,826 shares of stock and 627,652 warrants pursuant to the agreement with ASI. The shares and warrants were delivered at various dates between May of 1989 and February of 1990. This distribution included 313,826 shares of common stock and one (1) Class A Warrant and one (1) Class B Warrant with each share of stock distributed. Each warrant allowed the holder to acquire an additional share of common stock as follows: The Class A Warrant had an exercise price of $0.75 per share and an expiration date of April 30, 1990. The Class B Warrant had an exercise price of $1.50 per share and an expiration date of April 30, 1992. No warrants were exercised. 11 XANTHIC ENTERPRISES, INC. (A DEVELOPMENT STAGE COMPANY) NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 (CONTINUED) D. LITIGATION: On November 2, 1991 the State of Oregon issued a cease and desist order ordering the Company to cease and desist issuing unregistered securities in the State of Oregon. The proceedings was based on the distribution of shares and warrants to Oregon shareholders (registered by way of a S-18 registration statement) pursuant to the agreements for such distribution between the Company and Automated Services, Inc. On April 2, 1992 the State or Oregon issued a final order to cease and desist violating any provision of Oregon Securities Law. Xanthic was denied the use of any statutory exemption provided in ORS 59.022 and ORS 59.035. Xanthic, Mark Lilly and Glenn DeCicco were assessed civil penalties of $750.00 each for violating ORS 59.055 and ORS 59.132(2). Directors Mark Lilly and Glenn DeCicco were ordered to cease and desist violating any provision of ORS Chapter 59. Neither the Company nor the Directors appealed. The Company has been advised that the effect of the Oregon ruling was to invalidate the issuance and distribution of the registered shares and warrants to residents of Oregon until such time as said securities are registered pursuant to the provisions of the Oregon Securities Law. The number of shares affected by the ruling is estimated to be 188,000 shares owned by approximately 650 residents at Oregon. The 188,000 shares represent approximately 3.4% of the issued and outstanding shares of the Company. 12 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES There is no disagreement with any prior accountant. PART III ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT. Mark A. Lilly, President and a Director. Mr. Lilly, age 32, has been President of Xanthic since inception. During 1988 he was President of NinHao Enterprises, Inc., a Colorado corporation. NinHo Enterprises is no longer active. Mr. Lilly was an Assistant Health Planner for the Alameda Health Consortium from February 1987 to May, 1988. Since May, 1988 Mr. Lilly was self employed as a free lance computer programer. Glenn DeCicco, Vice-President, Secretary and a Director. Mr. DeCicco, age 35, was a Senior Vice President of Nin Hao Enterprises during 1988 and was President of Land and Water Real Estate Company, an inactive development stage real estate consultation company formed in 1987. Land and Water Real Estate Company has no assets, income or employees. John D. Lilly, Vice-President. Mr. Lilly, age 29, has been a free lance computer consultant since 1994. John Lilly and Mark Lilly are brothers. ITEM 11. EXECUTIVE COMPENSATION. During the past year the Company did not compensate any officer or director. The Company has no plans to compensate any officer or director at the present time. 13 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.
Title of Class Name and Address Amount and Nature Percent of Class of Beneficial of Beneficial Owner Owner Common Shares Mark Lilly* 1,165,000 21.2 8833 Sunset Blvd. Suite 200 West Hollywood, CA 90069 Glenn DeCicco* 1,106,500 20.1 100 Long Brook Way Suite 21 Pleasant Hill, CA 94523 Brett Hudelson 1,106,500 20.1 147 Central Ashland, OR 97520 John D. Lilly* 263,000 4.7 8833 Sunset Blvd. Suite 200 West Hollywood, CA 90069 David G. Lilly 1,000,000 18.2 8833 Sunset Blvd. Suite 200 West Hollywood, CA 90069
*The total number of shares owned by officers and directors is 2,534,500. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS. Not Applicable. Item 14. Exhibits, Financial Statements and Schedules. The Company incorporates by reference the exhibits filed with its registration statement and the amendments thereto. There have been no 8-K filings during the past year. Attached under Item 8 are audited financial statements for the Company as of December 31, 1995. 14 SIGNATURE In accordance with Section 12 of the Securities Exchange Act of 1934, this registrant caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized. XANTHIC ENTERPRISES, INC. Dated: 4/2/97 ------------------------------- By: /s/ Mark A. Lilly ---------------------------------- Mark A. Lilly, President, Director and Chief Financial Officer Dated: 4/2/97 ------------------------------- By: /s/ Glenn DeCicco ---------------------------------- Glenn DeCicco, Vice President and Director 15 -----END PRIVACY-ENHANCED MESSAGE-----