-----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, DCOu+gAX4d4rDNWrLkcMt+Y9TuhJWu1p3xoaNiZv3nsTj+gS6god9Dt1t87qHU6u MyP0dXymPU0luA9V9e1l+A== 0000029504-00-000002.txt : 20000404 0000029504-00-000002.hdr.sgml : 20000404 ACCESSION NUMBER: 0000029504-00-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 20000403 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOL RESOURCES INC CENTRAL INDEX KEY: 0000029504 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 820219465 STATE OF INCORPORATION: WY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-08447 FILM NUMBER: 592338 BUSINESS ADDRESS: STREET 1: 13636 NEUTRON RD CITY: DALLAS STATE: TX ZIP: 75244 BUSINESS PHONE: 2146615869 MAIL ADDRESS: STREET 2: 13636 NEUTRON RD CITY: DALLAS STATE: TX ZIP: 752444410 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) (X) Quarterly Report Pursuant Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended: September 30, 1999 OR () TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File: 0-8447 DOL RESOURCES, INC. (Exact Name of Registrant as specified in its Charter) Wyoming 82-0219465 (State of other Jurisdiction (I.R.S. Employer of Incorporation or Organization) Identification No.) 13636 Neutron Road, Dallas, Texas 75244 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number (Area code (214) 661 5869) Indicate by check mark whether 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 such shorter period that Registrant was required to file such reports and (2) has been subject to such filing requirements for the past 90 days YES: X NO: The number of shares outstanding of each of the Issuer's Classes of Common Stock, as of the close of the period covered by this report: Common - $0.01 Par Value - 25,000,000 shares as of September 30, 1999. DOL RESOURCES, INC. Index to Form 10-Q for Fiscal Quarter ended September 30, 1999. Page No. PART 1 - Financial Information Condensed Unaudited Balance Sheet, September 30, 1999 and December 31, 1998 2 - 3 Condensed Unaudited Statement of Income, Nine Months ended September 30, 1999 and 1998 4 Condensed Unaudited Statement of Shareholder's Equity Nine Months ended September 30, 1999 and 1998 5 Condensed Unaudited Statement of Changes in Financial Position Nine-Months Ended September 30, 1999 and 1998 5 Summary of Significant Accounting Policies and Notes to Condensed Unaudited Financial Statements 6 - 8 Management's Discussion and Analysis of Condensed Financial Condition and Results of Operations 9 PART 11 - Other Information Item 6(b) - Exhibits and Reports on Form 8-K 10 Signature Pursuant to General Instruction E 10 All other items called for by the instructions are omitted as they are inapplicable, not required, or the information is included in the condensed financial statements or notes thereto. -1- DOL RESOURCES, Inc. BALANCE SHEET (Unaudited) ASSETS Sept. 30 Dec. 31 1999 1998 CURRENT ASSETS Cash $ -0- $ 870 Marketable securities, at lower or aggregate cost or market 400,000 1,924 Trade accounts receivable, less allowance for doubtfiul accounts of $1,711, in 1998. Note 1) -0- 22,927 Due from related parties-Note 3 4,323 426,115 Prepaid Expenses -0- -0- Total Current Assets 404,323 451,836 PROPERTIES - Using full costing- Production payment 100,000 100,000 Exploration, acquisition & development, cost, net of allowance for reduction of oil & gas assets of $137,083 In 1985 2,057,927 1,649,985 Total cost 2,157,927 1,749,985 Less accumulated depletion 1,348,567 1,338,297 809,360 411,688 AUTOMOBILES, FURNITURE & FIXTURES At cost - Note 1 Furniture and fixtures -0- 6,476 Less accumulated depreciation -0- 5,828 Net Furniture and Fixtures -0- 648 OTHER ASSETS Undeveloped coal royalties- -0- 10,155 Other accounts receivable- -0- 57,012 Total Other Assets -0- 67,168 TOTAL ASSETS 1,213,683 931,340 -2- DOL Resources, Inc. BALANCE SHEET Sept. 30 December 31, 1999 1998 CURRENT LIABILITIES Notes payable - Note 2 -0- 408,000 Accounts payable -0- 30,737 Accrued expenses -0- -0- Total current liabilities -0- 438,737 LONG-TERM LIABILITIES Accounts payable Total Long-Term Liabilities -0- 330,472 -0- 330,472 STOCKHOLDERS' EQUITY Capital Stock, common, $.01 par value: Authorized 25,000,000 shares Issued and outstanding: 25,000,000 shares at 9-30-99 and 20,783,529 at 1998 250,000 207,835 Capital in excess of par value 2,526,770 1,501,618 Accumulated deficit (1,563,087) (1,546,947) Treasury Stock -0- ( 375) 1,213,683 162,131 TOTAL 1,213,683 931,340 -3- DOL RESOURCES, INC. CONDENSED UNAUDITED STATEMENT OF INCOME 3 Months 9 Months Ended Ended 9-30-99 9-30-99 9-30-98 Operating Revenue: Oil and Gas Sales 31,030 46,525 35,745 Interest and other income -0- 3,896 5,844 Total 31,030 50,421 41,589 Operating Expenses: Depletion,depreciation and amortization 5,000 10,594 12,795 General and administrative 4,044 6,759 217 Interest -0- 13,650 20,313 Consulting & Mgmt Fees 4,091 4,091 -0- Production Taxes 2,555 4,209 3,898 Lease Operating Expense 15,656 26,897 20,098 Lease Rentals 361 361 -0- Total Operating Expenses 31,707 66,561 57,321 Net Income (Loss) before income taxes ( 677) (16,140) (15,732) Provision for income taxes (note 6) -0- -0- -0- Net Income (Loss) ( 677) (16,140) (15.732) Weighted Average Number of Common Shares Outstanding 25,000,000 22,657,516 20,671,254 Earnings (Loss)forCommon Share $(.00003) $ (.0007) $(.0008) The accompany notes are an integral part of this statement. -4- CONDENSED UNAUDITED STATEMENT OF STOCKHOLDER'S equity Nine Months ended September 30, 1999 and 1998 Capital Stock Capital in Number of Excess of Accumulated Treasury Shares Amount Par Value Deficit Stock Balance at 1/1/99 20,783,529 207,835 1,501,618 (1,546,947) ( 375) Net Income -0- -0- -0- ( 16,140) -0- Treas. Stock Cancelled ( 375) ( 375) ELGT Stock Exchange 4,216,471 42,165 357,835 Parent Con- Tribution 667,692 Balance at 9/30/99 25,000,000 250,000 2,526,770 (1,563,087) -0- Balance at 1/1/98 20,671,254 206,713 1,502,741 (1,478,977) ( 375) Net Income -0- -0- -0- ( 15,732) -0- Balance at 9/30/98 20,671,254 206,713 1,502,741 (1,494,709) ( 375) CONDENSED UNAUDITED STATEMENT OF CHANGES IN FINANCIAL POSITION Nine Months Ended: Sept. 30, 1999 Sept. 30, 1998 Financial Resources Provided By Operations: Net Income (16,140) (15,732) Items not requiring outlay of working Capital: Depletion, Deprec. and Amortization 10,594 12,795 Working Capital provided by operations ( 5,546) ( 2,937) Increase in Properties (407,619) 3,500 Reduction in other Assets 67,168 4,424 Increase in long term debt -0- -0- Total Resources (345,997 4,987 Financial Resources Applied to Retirement of long-term debt (330,472) ( 4,423) Increase in common stock 42,165 Increase in contributed stock 1,025,528 -0- Net Increase (Decrease) in Working Capital 391,224 564 Working Capital at begin. of period 13,099 66,381 Working Capital at end of period 404,323 66,945 -5- DOL Resources, Inc. NOTES TO FINANCIAL STATEMENTS NOTE 1. Summary of Significant Accounting Policies Organization and Operations The Company was organized on November 6, 1973 under the laws of the State of Wyoming. Its primary activities have been the acquisition of interests in various oil and gas properties, coal properties and exploration for oil and gas. Allowance for Bad Debts: Accounts receivable from participants in oil and gas exploration are estimated to be at least 95% collectible, consequently a 5% allowance for bad debts has been established against those receivables. Receivables from the sale of oil and gas are fully collectible, as accruals are based primarily on collection of oil and gas sales subsequent to year-end. Properties: The Company uses the full cost method of accounting for oil and gas acqusition, exploration and development costs. The Company has operations only within the continental United States and consequently has only one cost center. All costs associated with property acquisition, exploration and development activities are capitalized within the cost center. No costs related to production, general corporate overhead or similar activities are capitalized. Capitalized costs within the cost center are amortized on the units-of-production basis using proved oil and gas reserves. The carrying value of capitalized cost is limited to the sum of (A) the present value of future net revenues from estimated production of proved oil and gas reserves, plus (B) the cost of properties not being amortized, plus (C) the lower cost or estimated fair value of unproved properties included in the costs being amortized less (D) income tax effects related to differences between book and tax basis of the properties involved. For the year ended December 31, 1985, total capitalized costs exceeded the cost center ceiling by $137,083. The excess was expense to current operations. -6- DOL RESOURCES, INC. NOTES TO FINANCIAL STATEMENTS (CON'T). NOTE 1: Sales and abandonments of oil and gas properties are accounted for as adjustment of capitalized costs, with no gain or loss recognized. Drilling in progress is included in the cost center with depletion being calculated on all costs with cost center. Earnings per Common Share Earnings per common share were computed by dividing the net loss by the weighted average number of common shares outstanding during the year. NOTE 2. Notes Payable Notes payable consist of the following: Monthly Interest Due Within Due After Installment Rate One Year One Year 1998 Note 1 due 7-14-99 $408,000 $ -0- Gateway National Bank. Interest only payable monthly at 6.64% per annum over a year of 360 days. NOTE 3. Related Party Transactions The Company ended 1998 with accounts receivable from Glauber Management Corp. (the parent company) of $344,615. The balance of this account on September 30, 1999 was $4,323. NOTE 4. Income Taxes The Company as of December 31, 1998 had a net operating income loss carryover for income tax purposes of approximately $740,000. The carryover is available to offset taxable income of future years and expires as follows: -7- 1998 241,000 1999 14,000 2000 109,000 2001 40,000 2002 48,000 2003 3,000 2004 34,000 2007 14,000 2008 19,000 2009 1,000 2011 217,000 740,000 The Company also had approximately $17,000 of investment tax credits available for carryover against future federal income tax liabilities. For financial reporting purposes, the net operating loss has been used to offset prior deferred income taxes. To the extend that the net operating loss carryovers are utilized for income tax purposes in future years, the deferred income taxes eliminated to give credits related to timing differences of the current year not recorded, will be reinstated. Because of timing differences related principally to intangible drilling costs, cumulative losses for income tax reporting purposes exceed those reported by approximately $576,000. Because of the uncertainly as to realization,no future tax benefits are recognized at December 31, 1998. -8- MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE CONDENSED UNAUDITED STATEMENT OF INCOME The following is Management's discussion and analysis of certain significant factors which have affected the Company's earnings during the period included in the accompanying Condensed Unaudited Statement of Income. A summary of the period to period changes in the principal items included in the Condensed Unaudited Statement of Income is as shown below: Nine Months ending Sept. 30 1999 and 1998 Net Sales 10,780 Interest and Other Income ( 1,948) General and Administrative 6,242 Depletion, Depreciation and Amortization ( 2,201) Consulting & Management Fees 4,091 Interest Expense (6,663) Net Income (Loss) ( 408) Oil and gas sales increased as compared the same period last year due primarily to the contribution of Oklahoma oil producing properties by the parent company and some increase in oil prices. The recurring cash flow for the first nine months of 1999 was approximately $8,100 per month. Consulting and management fee expenses increased due to the payment $1,000.00 per month to Gluaber Management Company effective 7-1-99. Interest expense decreased due to assumptoipm of bank debt by the parent corporation. General and Administrative expenses increased due to legal and transfer fees. Management expects a slow upward trend in oil and gas prices to continue. This would not only increase revenues and cash flow but would enhance our ability to raise much needed funds for drilling additional wells. It is the opinion of management that a minimum of $25.00 per Bbl. oil is needed in order to expand operations and replace depleted reserves. Meanwhile a continuing effort is being made to increase production, and consequently revenues by seeking out and negotiating joint-venture recompletion projects where positive reserve information exists. Management is also seeking out possible merger opportunities. There have been several negotiations with private companies desiring to go public. In preparation for an impending merger Gluaber Management, (Parent) by an agreement dated June 30, 1999 assumed all liabilities and selected assets of the company in exchange for contributed capital. Also, Oklahoma oil properties held by the Parent were contributed to the Company. -9- Review of Independent Public Accountants: The information contained in substantially all financial statements accompanying this report were supplied by internal accountant of registrant. Although such statements have not been reviewed by registrant's certified public accountant they are available for review. Office Information No reports on Form 8-K were filed by the Company in the quarter for which this report is filed. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant has duly caused this report to be signed on its behalf by the undersigned there unto duly authorized. DOL RESOURCES, INC. /s/ Fred M. Updegraff Fred M. Updegraff Vice President, Treasurer and Principal Accounting Officer Date: November 4, 1999 -10- EX-27 2
5 3-MOS DEC-31-1999 SEP-30-1999 0 400,000 0 0 0 404,323 2,157,927 1,348,567 1,213,683 0 0 0 0 250,000 963,683 1,213,683 31,030 31,030 0 31,707 0 0 0 (677) 0 (677) 0 0 0 (677) 0 0
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