-----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, GXIp0ntFH2sQ1aansOLB4SEtzmzRoLYOYz7y5OdHr1tpVmGD/m7Vb6BxlBdXIaKq ufYvwDrREB2lxa29MVnqPA== 0001047469-98-024794.txt : 19980623 0001047469-98-024794.hdr.sgml : 19980623 ACCESSION NUMBER: 0001047469-98-024794 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980622 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACIFIC COAST APPAREL CO INC CENTRAL INDEX KEY: 0001005185 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-APPAREL, PIECE GOODS & NOTIONS [5130] IRS NUMBER: 954536683 STATE OF INCORPORATION: CA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB/A SEC ACT: SEC FILE NUMBER: 000-28760 FILM NUMBER: 98651437 BUSINESS ADDRESS: STREET 1: 1920 S LOS ANGELES STREET CITY: LOS ANGELES STATE: CA ZIP: 90015 BUSINESS PHONE: 2137489724 MAIL ADDRESS: STREET 1: 1920 S LOS ANGELES STREET CITY: LOS ANGELES STATE: CA ZIP: 90015 10QSB/A 1 10QSB/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB/A (Mark One) /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1998 OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission file number 0-28760 PACIFIC COAST APPAREL COMPANY, INC. ----------------------------------- (Exact name of registrant as specified in its charter) CALIFORNIA 95-4536683 ---------- ---------- (State or other Jurisdiction of (IRS Employer Identification No.) incorporation or organization) 1620 SO. LOS ANGELES ST. LOS ANGELES, CA 90015 ------------------------ ----- (Address of principal office) (Zip Code) Registrant's telephone number, including area code: (213) 748-9724 -------------- INAPPLICABLE ------------ (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. Yes /X/ No / / Number of shares of common stock outstanding as of March 31, 1998: 2,958,000 Transactional Small Business Disclosure Format Yes /X/ No / / 1 PACIFIC COAST APPAREL CO., INC. BALANCE SHEET
March 31, 1998 September 30, 1997 ASSETS CURRENT ASSETS Cash and cash equivalents $38,851 $406,608 Due from factors $329,862 $173,577 Accounts receivable $59,052 $52,665 Inventories $793,780 $865,326 Prepaid expenses and other current assets $55,146 $17,637 Note receivable, stockholder $10,000 $10,000 Total current assets $1,286,691 $1,525,813 PROPERTY AND EQUIPMENT - at cost, net of $124,218 $138,011 accumulated depreciation OTHER ASSETS $26,542 $19,739 $1,437,451 $1,683,563 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $272,658 $241,303 Accrued expenses $219,571 $180,992 Current maturities of long-term debt $108,000 $98,000 Total current liabilities $600,229 $520,295 LONG TERM DEBT, LESS CURRENT $165,462 $230,355 MATURITY NEGATIVE GOODWILL $166,798 $172,566 STOCKHOLDERS' EQUITY Preferred stock Authorized, 600,000 shares No shares outstanding Common stock - no par value $5,452,718 $5,452,718 Authorized, 1,000,000 shares Issued and outstanding 2,958,000 shares Additional paid-in capital $479,860 $479,860 Deficit ($5,427,616) ($5,172,231) Total stockholders' equity $504,962 $760,347 $1,437,451 $1,683,563
2 PACIFIC COAST APPAREL CO., INC. STATEMENT OF OPERATIONS
Six Months Ended March 31 ------------------------- 1998 1997 ---- ---- NET SALES $2,483,669 $407,606 COST OF GOOD SOLD 1,222,718 284,404 GROSS (LOSS) PROFIT 1,260,951 123,202 OPERATING EXPENSES Design and production 316,710 87,799 Selling 428,069 263,239 Shipping 110,423 8,509 General and administrative 707,544 710,033 Interest (income) expense 33,875 (25,354) Total Operating Expenses 1,596,621 1,044,226 LOSS BEFORE INCOME TAXES (335,670) (921,024) PROVISION FOR INCOME TAXES (800) (800) NET LOSS ($336,470) ($921,824) NET LOSS PER SHARE (0.11) (0.31) WEIGHTED AVERAGE NUMBER OF 2,958,000 3,012,000 COMMON SHARES OUTSTANDING
3 PACIFIC COAST APPAREL CO., INC. STATEMENT OF OPERATIONS
Three Months Ended March 31 --------------------------- 1998 1997 ---- ---- NET SALES $1,349,148 $351,971 COST OF GOOD SOLD 668,925 263,656 GROSS (LOSS) PROFIT 680,223 88,315 OPERATING EXPENSES Design and production 189,335 67,295 Selling 232,451 224,299 Shipping 54,497 6,318 General and administrative 314,892 374,330 Interest (income) expense 14,138 (14,967) Total Operating Expenses 805,313 657,275 LOSS BEFORE INCOME TAXES (125,090) (568,960) PROVISION FOR INCOME TAXES 0 (800) NET LOSS ($125,090) ($569,760) NET LOSS PER SHARE (0.04) (0.19) WEIGHTED AVERAGE NUMBER OF 2,958,000 2,954,000 COMMON SHARES OUTSTANDING
4 Page 1 0f 2 PACIFIC COAST APPAREL CO., INC. CONDENSED STATEMENT OF CASH FLOWS INCREASE (DECREASE) IN CASH
Six Months Ended March 31 ------------------------- 1998 1997 ---- ---- CASH FLOWS FROM OPERATING ACTIVITES Net loss ($336,470) ($921,824) Adjustments to reconcile net loss to cash used by operating activities: Depreciation $18,494 $13,038 Amortization of negative goodwill ($5,768) Changes in assets and liabilities, net of effect of assets and liabilities acquired: Increase in due from factors ($156,285) ($129,547) Decrease in accounts receivable ($6,387) Increase in inventories $71,546 ($589,510) Increase in prepaid expenses and ($37,509) ($141,975) other current assets Increase in other assets ($6,803) Increase in accounts payable $31,357 $227,048 Increase (decrease) in accrued expenses $38,917 $62,817 Total Adjustments ($52,438) ($558,129) Net Cash Used By Operating Activities ($388,908) ($1,479,953)
5 Page 2 0f 2 PACIFIC COAST APPAREL CO., INC. CONDENSED STATEMENT OF CASH FLOWS INCREASE (DECREASE) IN CASH
Six Months Ended March 31 ------------------------- 1998 1997 ---- ---- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment ($5,039) ($170,685) Decrease in short term investments $1,737,654 Net Cash (used) Provided by ($5,039) $1,566,969 Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long term debt ($54,893) Reacquistion of common stock ($144,966) Net Cash Used by Financing Activities ($54,893) ($144,966) NET DECREASE IN CASH AND CASH EQUIVALENTS ($448,840) ($57,950) CASH AND CASH EQUIVALENTS, beginning as previously stated $406,606 $109,977 PRIOR PERIOD ADJUSTMENT $81,085 CASH AND CASH EQUIVALENTS, beginning, as restated $487,691 $109,977 CASH AND CASH EQUIVALENTS, ending $38,851 $52,027
6 PACIFIC COAST APPAREL CO., INC. CONDENSED STATEMENT OF CASH FLOWS - SUPPLEMENTAL INFORMATION
Three Months Ended March 31 --------------------------- 1998 1997 ---- ---- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Cash paid during period for: Interest $14,138 $10,921 Income Taxes $800
7 PACIFIC COAST APPAREL CO., INC. NOTES TO CONDENSED FINANCIAL STATEMENTS MARCH 31, 1997 1 - ACCOUNTING POLICIES Although the interim condensed financial statements of the Company are unaudited, it is the opinion of the Company's management that all normal recurring adjustments necessary for a fair statement of the results have been reflected therein. Operating revenues and net earnings for any interim period are not necessarily indicative of results that may be expected for the entire year. These statements should be read in conjunction wth the financial statements and reflected notes which are incorporated by reference in the Company's Annual Report on Form 10-KSB for the year ended September 30, 1997 8 PACIFIC COAST APPAREL CO., INC. CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY YEAR ENDED SEPTEMBER 30, 1997 AND THE SIX MONTHS ENDED MARCH 31, 1998
Common stock Additional Total ------------------------- Paid-in Stockholders' Shares Amount Capital Deficit Equity Balance, October 1, 1996 3,070,000 $5,920,118 $162,500 ($2,136,808) $3,945,810 Issuance of stock for services 9,000 $4,500 $4,500 Reacquistion of stock during the year ended September 30, 1997 (121,000) ($471,900) $317,360 ($154,540) Net loss for the year ended . September 30, 1997 ($3,035,423) ($3,035,423) ---------- ---------- ------------- ----------- ---------- Balance, September 30, 1997, 2,958,000 $5,452,718 $479,860 ($5,172,231) $760,347 as previously reported Prior period adjustment, (Note 2) $81,085 $81,085 ---------- ---------- ------------- ---------- -------- Balance, September 30, 1997, 2,958,000 $5,452,718 $479,860 ($5,091,146) $841,432 as restated Net loss for the six months ended . March 31, 1997 ($336,470) ($336,470) ---------- ---------- -------- ---------- -------- Balance, March 31, 1998 2,958,000 $5,452,718 $479,860 ($5,427,616) $504,962
See notes to condensed financial statements SIGNATURES Pursuant to the requirements 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. Pacific Coast Apparel Company, Inc. By /s/ Terrence L. McGovern ------------------------------- Terrence L. McGovern Chief Executive Officer and Chief Financial Officer June 16, 1998 -----END PRIVACY-ENHANCED MESSAGE-----