-----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, UQ8X6/sekza3R3kq9Yl+tWso3PRB+kzB9a5SAhHdHQojhO41ihB0GxXtyfBZOYT/ KsuvVJ4gDqgE4W9IJ+9cwQ== 0000711422-97-000013.txt : 19971117 0000711422-97-000013.hdr.sgml : 19971117 ACCESSION NUMBER: 0000711422-97-000013 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CORAL DEVELOPMENT CORP CENTRAL INDEX KEY: 0001034592 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 113349762 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 333-06410 FILM NUMBER: 97721185 BUSINESS ADDRESS: STREET 1: 240 CLARKSON AVE CITY: BROOKLYN STATE: NY ZIP: 11226 BUSINESS PHONE: 7184693132 MAIL ADDRESS: STREET 1: 240 CLARKSON AVENUE CITY: BROOKLYN STATE: NY ZIP: 11226 10-Q 1 Washington, D.C. 20549 FORM 10-Q (Mark One) /X/ Quarterly report pursuant to Section 13 or 15(d) of the Securities Act of 1934 For the quarterly period ended September 30, 1997 or / / Transition report pursuant to Section 13 or 15(d) of the Securities Act of 1934 For the transition period from to Commission file number 333-6410 CORAL DEVELOPMENT CORP. (Exact Name of Registrant as Specified in its Charter) Delaware 11-3349762 (State or other jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification Number) 240 Clarkson Ave Brooklyn, New York 11226 (Address of Principal Executive Office) (Zip Code) (718)469-3132 (Registrant's Telephone Number, Including Area Code) (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 and Exchange Act of 1934 during the preceding twelve 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 ninety days. Yes / X / No / / APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes / / No / / APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 403,000 10Q-1 CORAL DEVELOPMENT CORP. FINANCIAL STATEMENTS SEPTEMBER 30, 1997 I N D E X Page ACCOUNTANTS' REVIEW REPORT 1 BALANCE SHEETS 2 STATEMENT OF STOCKHOLDERS' EQUITY 3 STATEMENTS OF OPERATIONS 4 STATEMENTS OF CASH FLOWS 5 NOTES TO THE FINANCIAL STATEMENTS 6-11 ACCOUNTANTS' REVIEW REPORT To the Board of Directors and Stockholders CORAL DEVELOPMENT CORP. Brooklyn, New York We have reviewed the balance sheet of CORAL DEVELOPMENT CORP. (A Development Stage Enterprise) as at September 30, 1997, and the related statements of operations, stockholders' equity and cash flows for the three month period ended September 30, 1997, in accordance with standards established by the American Institute of Certified Public Accountants. A review of interim financial information consists principally of obtaining an understanding of the system for the preparation of interim financial information, applying analytical review procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an examination in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the financial statements for them to be in conformity with generally accepted accounting principles. We have previously audited, in accordance with generally accepted auditing standards, the balance sheet as of June 30, 1997, and the related statement of operations, stockholders' equity and cash flows for the period then ended (not presented herein); and in our report dated August 15, 1997, we expressed an unqualified opinion on those financial statements. In our opinion, the information set forth in the accompanying balance sheet as of June 30, 1997 is fairly stated in all material respects in relation to the balance sheet from which it has been derived. GREENBERG & COMPANY, LLC Springfield, New Jersey October 29, 1997 Page 1 of 11 CORAL DEVELOPMENT CORP. (A WHOLLY OWNED SUBSIDIARY) (A DEVELOPMENT STAGE ENTERPRISE) BALANCE SHEETS Sept. 30, 1997 (Unaudited) June 30, 1997 A S S E T S Current assets-Cash $ 2,295 $ 3,515 Deferred registration costs 26,007 25,907 Organization Expense 300 300 TOTAL ASSETS $28,602 $29,722 L I A B I L I T I E S A N D S T O C K H O L D E R S' E Q U I T Y TOTAL LIABILITIES $ -0- $ -0- STOCKHOLDERS' EQUITY Common Stock Par Value $.001 Authorized: 20,000,000 Shares Issued and Outstanding: 403,000 Shares 403 403 Additional Paid-In Capital 29,897 29,897 (Deficit) Accumulated during the development stage (1,698) (578) Total Stockholders' Equity $28,602 $29,722 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $28,602 $29,722 Subject to the comments contained in the Accountants' Review Report. Page 2 of 11 CORAL DEVELOPMENT CORP. (A WHOLLY OWNED SUBSIDIARY) (A DEVELOPMENT STAGE ENTERPRISE) STATEMENT OF STOCKHOLDERS' EQUITY FOR THE PERIOD NOVEMBER 19, 1996(INCEPTION) TO SEPTEMBER 30, 1997 (Deficit) Common Accumulated Total Stock Additional During the Share- # of $.001 par Paid in Development holders' Shares Value Capital Stage Equity Initial investment 403,000 $403 $29,897 $ -0- $30,300 in capital stock BALANCE AT DECEMBER 16, 1996 403,000 403 29,897 -0- 30,300 Net (Loss) for the period (578) (578) BALANCE AT JUNE 30, 1997 (Audited) 403,000 403 29,897 (578) 29,722 Net (Loss) for the three months ended September 30, 1997 (1,120) (1,120) BALANCE AT SEPTEMBER 30, 1997 (Unaudited) 403,000 $403 $29,897 $ (1,698) $28,602 Subject to the comments contained in the Accountants' Review Report. Page 3 of 11 CORAL DEVELOPMENT CORP. (A WHOLLY OWNED SUBSIDIARY) (A DEVELOPMENT STAGE ENTERPRISE) STATEMENTS OF OPERATIONS FOR THE PERIOD NOVEMBER 19, 1996(INCEPTION) TO SEPTEMBER 30, 1997 Period from For the Three November 19, 1996 Months Ended (Inception) to September 30, 1997 June 30, 1997 General and Administrative Expenses $(1,120) $ (578) Net (Loss) for the Period $(1,120) $ (578) Net (Loss) per Share $(0.000) $ (0.00) Weighted Average Common Shares Outstanding 403,000 403,000 Cumulative Amounts from Inception: General and Administrative Expenses $ 1,698 Net (Loss) $(1,698) Subject to the comments contained in the Accountants' Review Report. Page 4 of 11 CORAL DEVELOPMENT CORP. (A WHOLLY OWNED SUBSIDIARY) (A DEVELOPMENT STAGE ENTERPRISE) STATEMENTS OF CASH FLOWS Period From Cumulative For the Three November 19, 1997 Amounts Months Ended (inception) to From September 30, 1997 June 30, 1997 Inception CASH FLOWS FROM OPERATING ACTIVITIES: Net (Loss) $(1,120) $(578) $(1,698) Changes in Assets (Increase) in Organization Expense -0- (300) (300) Net Cash (Used In) Operating Activities (1,120) (878) (1,998) CASH FLOWS FROM INVESTING ACTIVITIES -0- -0- -0- CASH FLOWS FROM FINANCING ACTIVITIES Common Stock Issuance -0- 30,300 30,300 (Increase) in Deferred Registration Costs (100) (25,907) (26,007) Net Cash Provided By (Used In) Financing Activities (100) 4,393 4,293 Net Increase (Decrease) In Cash (1,220) 3,515 2,295 Cash, Beginning of Period 3,515 -0- -0- CASH END OF PERIOD $2,295 $3,515 $2,295 Subject to the comments contained in the Accountants' Review Report. Page 5 of 11 CORAL DEVELOPMENT CORP. (A WHOLLY OWNED SUBSIDIARY) (A DEVELOPMENT STAGE ENTERPRISE) NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 (Unaudited) NOTE 1: ORGANIZATION AND NATURE OF OPERATIONS Coral Development Corp. (CDC) is a Delaware corporation. CDC is in the development stage and has not begun any formal operations. CDC's office is located in New York. The principal purpose of CDC is to find and merge with an operating company. The Company's fiscal year end is June 30. On December 10, 1996, Modern Technology Corp. (Modern), the parent company of Coral Development Corp., purchased 403,000 shares of the Company for $30,300. The shares of the Company were registered on June 6, 1997 with the SEC. The intention of Modern is to distribute those shares to Modern's shareholders in the form of a dividend. NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ACCOUNTING POLICIES Coral Development Corp.'s accounting policies conform to generally accepted accounting principles. Significant policies followed are described below. ESTIMATES IN FINANCIAL STATEMENTS The preparation of the 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 the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Subject to the comments contained in the Accountants' Review Report. Page 6 of 11 CORAL DEVELOPMENT CORP. (A WHOLLY OWNED SUBSIDIARY) (A DEVELOPMENT STAGE ENTERPRISE) NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 (Unaudited) (Continued) NOTE 3: INCOME TAXES The Company follows Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes." FAS 109 is an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company's financial statements or tax returns. The Company has net operating loss carry forwards of approximately $1,698 available to reduce any future income taxes. The tax benefit of these losses, approximately $600, has been offset by a valuation allowance due to the uncertainty of its realization. NOTE 4: DEFERRED REGISTRATION COSTS As of September 30, 1997, the Company has incurred deferred registration costs of $26,007 relating to expenses incurred in connection with the Proposed Distribution (see Note 1). Upon consummation of this Proposed Distribution, the deferred registration costs will be charged to equity. Should the Proposed Distribution prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to operations. Page 7 of 11 CORAL DEVELOPMENT CORP. (A WHOLLY OWNED SUBSIDIARY) (A DEVELOPMENT STAGE ENTERPRISE) NOTES TO THE FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 (Unaudited) (Continued) NOTE 5: INTERIM FINANCIAL REPORTING The unaudited financial statements of the Company for the period July 1, 1997 to September 30, 1997 have been prepared by management from the books and records of the Company, and reflect, in the opinion of management, all adjustments necessary for a fair presentation of the financial position and operations of the Company as of the period indicated herein, and are of a normal recurring nature. Page 8 of 11 Part 1. Financial Information Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Coral Development Corp. ("The Registrant") was incorporated in November 1996 and formed by Modern Technology Corp. ("MTC") who presently owns all 403,000 outstanding shares. MTC has distributed the 403,000 shares (in escrow) to its shareholders as a dividend, on a pro-rata basis, at the rate of one share for each fifty shares of MTC. The Registrant proposes to combine with an existing privately held company. A combination may be structured as a merger, consolidation, exchange of Registrant's common stock for stock or assets or any other form which will result in the combined enterprises being a publicly held corporation. If the Company is unable to consummate a suitable combination within 18 months from the effective date of its Registration Statement (June 6, 1997) (under Rule 419) then the securities will be released from escrow and returned promptly to MTC and its Board of Directors will probably recommend its liquidation and dissolution. The management of the Registrant is presently actively seeking a possible merger candidate although no assurance can be given that a merger will be successfully completed within the 18 month period referred to above. For the three months ended September 30, 1997, the Registrant generated a net loss of $1,120. For the period from inception (November 19, 1996) to June 30, 1997, the Registrant generated a net loss of $578. At September 30, 1997, the Registrant has total assets of $28,602, consisting of cash of $2,295, deferred registration costs of $26,007 and organization expense of $300. There were no liabilities and stockholders' equity of $28,602. No salaries have been paid to the officers and directors of the Registrant since inception. Part 2. Other Information Item 1. Legal Proceedings. None. Item 2. Changes in Securities. None. Item 3. Defaults upon Senior Securities. None. Item 4. Submission of Matters to a Vote of Security Holders. None. Item 5. Other Materially Important Events. None. Item 6. Exhibits and Reports on Form 8-K. None. SIGNATURES Pursuant to the requirements of the Securities Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CORAL DEVELOPMENT CORP. By: Arthur J. Seidenfeld President, Chief Executive and Chief Financial Officer November 12, 1997 EX-27 2
5 3-MOS JUN-30-1998 SEP-30-1998 2515 0 0 0 0 2515 0 0 28602 0 0 0 0 403 28199 28602 0 0 0 1120 0 0 0 (1120) 0 (1120) 0 0 0 (1120) 0 0
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