PGI INCORPORATED
|
(Exact name of registrant as specified in its charter)
|
FLORIDA |
59-0867335
|
|
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) |
212 SOUTH CENTRAL, SUITE 100, ST. LOUIS, MISSOURI 63105
|
(Address of principal executive offices)
|
(314) 512-8650
|
(Registrant’s telephone number, including area code)
|
N/A
|
(Former Name, Former Address and Former Fiscal year, if changed since last report)
|
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | þ |
(Do not check if a smaller reporting company) |
Form 10 - Q
Page No.
|
|||
PART I FINANCIAL INFORMATION | |||
3 | |||
4 | |||
5 | |||
6 | |||
11 | |||
15 | |||
15 | |||
PART II OTHER INFORMATION
|
|||
16 | |||
Item 1A. | 16 | ||
16 | |||
16 | |||
16 | |||
16 | |||
16 | |||
17 | |||
18 |
June 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Cash
|
$ | 1 | $ | 1 | ||||
Restricted cash
|
5 | 5 | ||||||
Receivables-related party
|
476 | 543 | ||||||
Land and improvement inventories
|
639 | 639 | ||||||
Other assets
|
185 | 187 | ||||||
$ | 1,306 | $ | 1,375 | |||||
LIABILITIES
|
||||||||
Accounts payable and accrued expenses
|
$ | 206 | $ | 211 | ||||
Accrued real estate taxes
|
4 | 8 | ||||||
Accrued interest:
|
||||||||
Primary lender-related party
|
345 | 324 | ||||||
Subordinated convertible debentures
|
20,395 | 19,792 | ||||||
Convertible debentures-related party
|
38,241 | 35,598 | ||||||
Other
|
2,927 | 2,896 | ||||||
Credit agreements:
|
||||||||
Primary lender-related party
|
500 | 500 | ||||||
Notes payable
|
1,198 | 1,198 | ||||||
Subordinated convertible debentures payable
|
9,059 | 9,059 | ||||||
Convertible debentures payable-related party
|
1,500 | 1,500 | ||||||
74,375 | 71,086 | |||||||
STOCKHOLDERS’ DEFICIENCY
|
||||||||
Preferred stock, par value $1.00 per share;
|
||||||||
authorized 5,000,000 shares; 2,000,000
|
||||||||
Class A cumulative convertible shares issued
|
||||||||
and outstanding; (liquidation preference of
|
||||||||
$8,000,000 and cumulative dividends)
|
2,000 | 2,000 | ||||||
Common stock, par value $.10 per share;
|
||||||||
authorized 25,000,000 shares; 5,317,758
|
||||||||
shares issued and outstanding
|
532 | 532 | ||||||
Paid-in capital
|
13,498 | 13,498 | ||||||
Accumulated deficit | (89,099 | ) | (85,741 | ) | ||||
(73,069 | ) | (69,711 | ) | |||||
$ | 1,306 | $ | 1,375 |
Three Months Ended | Six Months Ended | |||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|||||||||||||
2013 | 2012 |
2013
|
2012
|
|||||||||||||
REVENUES
|
||||||||||||||||
Interest income-related party
|
$ | 4 | $ | 7 | $ | 8 | $ | 15 | ||||||||
4 | 7 | 8 | 15 | |||||||||||||
COSTS AND EXPENSES
|
||||||||||||||||
Interest
|
318 | 311 | 634 | 620 | ||||||||||||
Interest-related party
|
1,355 | 1,181 | 2,663 | 2,323 | ||||||||||||
Taxes and assessments
|
2 | 3 | 4 | 5 | ||||||||||||
Consulting and accounting-
|
||||||||||||||||
related party
|
10 | 10 | 20 | 20 | ||||||||||||
Legal and professional
|
3 | 1 | 7 | 5 | ||||||||||||
General and administrative
|
19 | 106 | 38 | 124 | ||||||||||||
1,707 | 1,612 | 3,366 | 3,097 | |||||||||||||
NET LOSS
|
$ | (1,703 | ) | $ | (1,605 | ) | $ | (3,358 | ) | $ | (3,082 | ) | ||||
NET LOSS PER SHARE (*)
|
||||||||||||||||
AVAILABLE TO COMMON
|
||||||||||||||||
STOCKHOLDERS-Basic and diluted
|
$ | (0.35 | ) | $ | (.033 | ) | $ | (0.69 | ) | $ | (0.64 | ) |
Six Months Ended
|
||||||||
June 30,
|
June 30,
|
|||||||
2013
|
2012
|
|||||||
Net cash used in operating activities
|
$ | (67 | ) | $ | (53 | ) | ||
Cash flows from investing activities:
|
||||||||
Proceeds from notes receivable-related party
|
67 | 53 | ||||||
Net cash provided by investing activities
|
67 | 53 | ||||||
Net change in cash
|
- | - | ||||||
Cash at beginning of period
|
1 | 1 | ||||||
Cash at end of period
|
$ | 1 | $ | 1 |
(1)
|
Basis of Presentation
|
(2)
|
Per Share Data
|
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30,
2013
|
June 30,
2012
|
June 30,
2013
|
June 30,
2012
|
|||||||||||||
Net Loss
|
$ | (1,703,000 | ) | $ | (1,605,000 | ) | $ | (3,358,000 | ) | $ | (3,082,000 | ) | ||||
Preferred Dividends
|
(160,000 | ) | (160,000 | ) | (320,000 | ) | (320,000 | ) | ||||||||
Loss Available to
Common Shareholders
|
$ | (1,863,000 | ) | $ | (1,765,000 | ) | $ | (3,678,000 | ) | $ | (3,402,000 | ) | ||||
Weighted Average Number
Of Common Shares Outstanding
|
5,317,758 | 5,317,758 | 5,317,758 | 5,317,758 | ||||||||||||
Basic and Diluted Loss
Per Share
|
$ | (.35 | ) | $ | (.33 | ) | $ | (.69 | ) | $ | (.64 | ) |
(3)
|
Statement of Cash Flows
|
(4)
|
Restricted Cash
|
(5)
|
Receivables
|
June 30,
2013
|
December 31,
2012
|
|||||||
($ in thousands) | ||||||||
Notes receivable – related party
|
$ | 475 | $ | 542 | ||||
Interest receivable – related party
|
1 | 1 | ||||||
$ | 476 | $ | 543 |
(6)
|
Land and Improvements
|
June 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
($ in thousands) | ||||||||
Unimproved land
|
$ | 625 | $ | 625 | ||||
Fully improved land
|
14 | 14 | ||||||
$ | 639 | $ | 639 |
(7)
|
Other Assets
|
June 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
($ in thousands) | ||||||||
Deposit with Trustee of 6-1/2% debentures
|
$ | 184 | $ | 184 | ||||
Prepaid expenses
|
- | 2 | ||||||
Other
|
1 | 1 | ||||||
$ | 185 | $ | 187 |
(8)
|
Accounts Payable and Accrued Expenses
|
June 30,
2013
|
December 31,
2012
|
|||||||
($ in thousands)
|
||||||||
Accounts payable
|
$ | 2 | $ | - | ||||
Accrued audit & professional
|
25 | 36 | ||||||
Accrued consulting fees-related party
|
1 | 1 | ||||||
Environmental remediation obligations
|
70 | 70 | ||||||
Accrued debenture fees
|
107 | 103 | ||||||
Accrued miscellaneous
|
1 | 1 | ||||||
$ | 206 | $ | 211 | |||||
Accrued real estate taxes consisted of:
|
||||||||
Current real estate taxes
|
$ | 4 | $ | 8 |
(9)
|
Primary Lender Credit Agreements, Notes Payable, Subordinated and Convertible Debentures Payable
|
June 30,
|
December 31,
|
|||||||
2013
|
2012
|
|||||||
($ in thousands)
|
||||||||
Credit agreements – primary lender- related party:
|
||||||||
balance is past due, bearing interest
|
||||||||
at prime plus 5%
|
$ | 500 | $ | 500 | ||||
Notes payable - $1,176,000
|
||||||||
bearing interest at prime plus 2%,
|
||||||||
the remainder non-interest bearing,
|
||||||||
all past due
|
1,198 | 1,198 | ||||||
1,698 | 1,698 | |||||||
|
||||||||
Subordinated debentures payable:
|
||||||||
At 6-1/2% interest; due June 1, 1991
|
1,034 | 1,034 | ||||||
At 6% interest; due May 1, 1992
|
8,025 | 8,025 | ||||||
9,059 | 9,059 | |||||||
Collateralized convertible debentures payable related party:
|
||||||||
At 14% interest; due July 8, 1997,
|
||||||||
convertible into shares of common stock
|
1,500 | 1,500 | ||||||
at $1.72 per share
|
$ | 12,257 | $ | 12,257 |
(10)
|
Income Taxes |
|
June 30,
2013
|
December 31,
2012
|
||||||
($ in thousands)
|
||||||||
Deferred tax asset:
|
||||||||
Net operating loss carry forward
|
$ | 19,305 | $ | 18,029 | ||||
Adjustments to reduce land to net realizable value
|
12 | 12 | ||||||
Expenses capitalized under IRC 263(a)
|
56 | 56 | ||||||
Environmental liability
|
27 | 27 | ||||||
Valuation allowance | (19,228 | ) | (17,952 | ) | ||||
172 | 172 | |||||||
Deferred tax liability:
|
||||||||
Basis difference of land and improvement inventories
|
172 | 172 | ||||||
Net deferred tax asset
|
$ | - | $ | - |
(11)
|
Fair Value of Financial Instruments |
June 30,
2013
|
December 31,
2012
($ in thousands)
|
Increase
(Decrease)
|
||||||||||
Cash
|
$ | 1 | $ | 1 | $ | - | ||||||
Restricted cash
|
5 | 5 | - | |||||||||
Receivables-related party
|
476 | 543 | (67 | ) | ||||||||
Land and improvement inventories
|
639 | 639 | - | |||||||||
Other assets
|
185 | 187 | (2 | ) | ||||||||
$ | 1,306 | $ | 1,375 | $ | (69 | ) |
June 30,
2013
|
December 31,
2012
($ in thousands)
|
Increase
(Decrease)
|
||||||||||
Accounts payable & accrued expenses
|
$ | 206 | $ | 211 | $ | (5 | ) | |||||
Accrued real estate taxes
|
4 | 8 | (4 | ) | ||||||||
Accrued interest
|
61,908 | 58,610 | 3,298 | |||||||||
Credit agreements – primary lender
|
||||||||||||
related party
|
500 | 500 | - | |||||||||
Notes payable
|
1,198 | 1,198 | - | |||||||||
Subordinated convertible
|
- | |||||||||||
debentures payable
|
9,059 | 9,059 | - | |||||||||
Convertible debentures payable-related
|
||||||||||||
party
|
1,500 | 1,500 | - | |||||||||
$ | 74,375 | $ | 71,086 | $ | 3,289 |
June 30, 2013 | ||||||||
Principal
|
Accrued
|
|||||||
Amount Due
|
Interest
|
|||||||
($ in thousands) | ||||||||
Subordinated convertible debentures:
|
||||||||
At 6 ½%, due June 1, 1991
|
$ | 1,034 | $ | 1,649 | ||||
At 6%, due May 1, 1992
|
8,025 | 18,746 | ||||||
$ | 9,059 | $ | 20,395 |
Collateralized convertible debentures:
|
||||||||
At 14%, due July 8, 1997
|
$ | 1,500 | $ | 38,241 | ||||
Notes Payable:
|
||||||||
At prime plus 2%
|
$ | 1,176 | $ | 2,927 | ||||
Non-interest bearing
|
22 | - | ||||||
$ | 1,198 | $ | 2,927 | |||||
Primary Lender-related party:
|
$ | 500 | $ | 345 |
PGI INCORPORATED | |||
(Registrant) | |||
Date: August 14, 2013
|
By:
|
/s/ Laurence A. Schiffer | |
Laurence A. Schiffer
|
|||
President | |||
(Duly Authorized Officer, Principal Executive Officer and Principal Financial Officer)
|
2.
|
Inapplicable.
|
3.(i)
|
Inapplicable.
|
3.(ii)
|
Inapplicable.
|
4.
|
Inapplicable.
|
10.
|
Inapplicable.
|
11.
|
Statement re: Computation of Per Share Earnings (Set forth in Note 2 of the Notes to Condensed Consolidated Financial Statements (Unaudited) herein).
|
15.
|
Inapplicable.
|
18.
|
Inapplicable.
|
19.
|
Inapplicable.
|
22.
|
Inapplicable.
|
23.
|
Inapplicable.
|
24.
|
Inapplicable.
|
Principal Executive Officer certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
|
|
Principal Financial Officer certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
|
|
Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350.
|
|
Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350.
|
|
95.
|
Inapplicable
|
99.
|
Inapplicable
|
100.
|
Inapplicable
|
101.
|
Instance Document, Schema Document, Calculation Linkbase Document, Labels Linkbase Document, Presentation Linkbase Document and Definition Linkbase Document.*
|
1.
|
I have reviewed this quarterly report on Form 10-Q of PGI Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
August 14, 2013
|
By:
|
/s/ Laurence A. Schiffer | |
Laurence A. Schiffer
|
|||
Principal Executive Officer
|
|||
1.
|
I have reviewed this quarterly report on Form 10-Q of PGI Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
August 14, 2013
|
By:
|
/s/ Laurence A. Schiffer | |
Laurence A. Schiffer
|
|||
Principal Financial Officer
|
|||
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) , as applicable, of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
August 14, 2013
|
By:
|
/s/ Laurence A. Schiffer | |
Laurence A. Schiffer
|
|||
Chief Executive Officer (Principal Executive Officer)
|
|||
|
*A signed original of this written statement has been provided to the Company and will be retained by the Company and will be furnished to the Securities and Exchange Commission or its staff upon request.
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
August 14, 2013
|
By:
|
/s/ Laurence A. Schiffer | |
Laurence A. Schiffer
|
|||
Chief Financial Officer (Principal Financial Officer)
|
|||
|
*A signed original of this written statement has been provided to the Company and will be retained by the Company and will be furnished to the Securities and Exchange Commission or its staff upon request.
|
2. Per Share Data (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of the calculations used in computing basic and diluted loss per share |
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
REVENUES | ||||
Interest income-related party | $ 4 | $ 7 | $ 8 | $ 15 |
Total Revenues | 4 | 7 | 8 | 15 |
COSTS AND EXPENSES | ||||
Interest | 318 | 311 | 634 | 620 |
Interest-related party | 1,355 | 1,181 | 2,663 | 2,323 |
Taxes and assessments | 2 | 3 | 4 | 5 |
Consulting and accounting - related party | 10 | 10 | 20 | 20 |
Legal and professional | 3 | 1 | 7 | 5 |
General and administrative | 19 | 106 | 38 | 124 |
Total costs and expenses | 1,707 | 1,612 | 3,366 | 3,097 |
NET LOSS | $ (1,703) | $ (1,605) | $ (3,358) | $ (3,082) |
AVAILABLE TO COMMON STOCKHOLDERS-Basic and diluted | $ (0.35) | $ (0.33) | $ (0.69) | $ (0.64) |
5. Receivables
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables |
Net receivables consisted of:
|
2. Per Share Data (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Basic and Diluted loss per share | ||||
Net Loss | $ (1,703,000) | $ (1,605,000) | $ (3,358,000) | $ (3,082,000) |
Preferred Dividends | (160,000) | (160,000) | (320,000) | (320,000) |
Loss Available to Common Shareholders | $ (1,863,000) | $ (1,765,000) | $ (3,678,000) | $ (3,402,000) |
Weighted Average Number of Common Shares Outstanding | 5,317,758 | 5,317,758 | 5,317,758 | 5,317,758 |
Basic and Diluted Loss Per Share | $ (0.35) | $ (0.33) | $ (0.69) | $ (0.64) |
5. Receivables (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables |
|
];#77V'Q8IL?]Q#F
M=6K>F+1DG'>!,*8/+.RW[1K;#4C04/9T[B+5-.G-1JJ15=UJ:G1C4RMSF.>I
M^Y,+S`UJX+GAY.!L!6A-6C*[N&DBDW5[-]G%LU<_WP;G#=;0353.13!YY@B\
M0A'^7SAP@@PJA(-"1*&/_^>LUM1_$8]+(,=[8?_SJ5.`CX)HL/(VV@`X!$2O
M5_1-!= ["X@*E\'*^?`\H
ML;G$%&+!$.^H\[Z5/R%-3&.HOR*A;*\C2@!#)LGP1[>("P+*7FD_%.U2*91<+K<:`3>67A4
M2L.BGQ&GE&[W[!."1'Y%>J_CU9;;0U7SO[QV6LMK48%LJIKEIKIND$E#*IRC
M&W(7)7R5AD]XRX(A5O"!APH^3D)C]1X8JI?PS+(V%>O\D7#6Y!=IS-.LF>99
M.@4/3X!K@$M>_)9(@XDHC1`5[WGSWEIK@%N9.L_N+;O0HHD&
8AW%JO>U=N(<$KBQVG`GG>7H-93)P+\2&*?
M=WX=T9@_!F3;"I).6+JFT?R1OW1\.B$Z7IK:=L+$6O,&$*IH.F'JAL9)Y+O\
MQ1#]Z]AI;MT1(R[UG\A=0+5*:6C:"0L7W"_BL\MLL8S84VXC.E84))VP=,5'
MR6@2QU3/2D/33EB8N"Y+N5S7Y%6HG$O+/XE2ZIV_+,7HHF4,W$$WIA[Y"Q*]
M7E`^]D6G$?7\9/(0T1R;2Y;0@H]Y>LDA<]6@U-.V%A2OPH<\-+_L",NZY1"C(T('GGL\4M
M:$224W0]-L+XD1+T-4["V-(2=CUFPMB2$KS-^`ECTK`;:\=2H$'U_N2NQU68
M7%*"S@>N,YH0/S`:N2HD70]=0([D%'T-7D#&])1=#U]`QN04;S.``=DT[(T$+%5%FG1%_%L%9^3.^Z]$C
R++'<-]QNA19'1CI'J$E'
M%HZRMRPA054C$JN4M$6+/V-8IE)?/8V:9=9-W4@@+5J$&0-#(WWVA&GIN?RQ
MI'$<%0T;VJ'%GC&PDNJI;UQ6O(UUN&S:H06F47&IZLD.#Z4D5L7:%<$L)1%:
M;!K)?P%HL"<3/&6!2/I&)/#_H+N$4-ITA!:71ED2MM:T=58.MFPC:QZ/]AYG
MF0;P5R0=[1!CX<,MC1;J%V"[%6[R`0'])B7M=Y%R*>,BRS\**E0(ZYZ8&H;F?0:L&,FK'%ZM>33NJBGRDJK
M2!2]WK/HF42><@>:02?8U;T@;#1PZI5D*[HB\6P"9-X>NY:W$\S*HEL*SW7$
M^)N5O%X')*L$./\]]9<+92&%21_8!;]=P*A544^+R^VRTU6MCZSX6M88NQ[7
M!`"5'%8;D;A5-]=H$+!G$KJ*5!.(&+MFMPNSD2O%4A2YC&:^(GZ!;Q
7SG:X]^"^7!'M`2$0C8,()RQU/OXJP=W$^H
MK,[+DTRA)R`=HGM1\C82?%CEHI&\1^IE/'+)^*C1?/_;,-D5>MPY2K?*E4
7. Other Assets (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Other assets consisted of: | ||
Deposit with Trustee of 6-1/2% debentures | $ 184 | $ 184 |
Prepaid expenses | 0 | 2 |
Other | 1 | 1 |
Total Other Assets | $ 185 | $ 187 |
6. Land and Improvements (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Land and improvement inventories | ||
Unimproved land | $ 625 | $ 625 |
Fully improved land | 14 | 14 |
Total | $ 639 | $ 639 |
5. Receivables (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Net receivables consisted of | ||
Notes receivable related party | $ 475 | $ 542 |
Interest receivable related party | 1 | 1 |
Total Receivables | $ 476 | $ 543 |
1. Basis of Presentation
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
|
|||
Accounting Policies [Abstract] | |||
Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements of PGI Incorporated and its subsidiaries (the Company) have been prepared in accordance with the instructions to Form 10 - Q and therefore do not include all disclosures necessary for fair presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. The Company's independent registered public accounting firm included an explanatory paragraph regarding the Company's ability to continue as a going concern in their opinion on the Company's consolidated financial statements for the year ended December 31, 2012.
Certain information and note disclosures normally included in the Companys annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Companys Form 10-K annual report for 2012 filed with the Securities and Exchange Commission.
The condensed consolidated balance sheet as of December 31, 2012 has been derived from the audited consolidated balance sheet as of that date.
The Company remains in default under the indentures governing its unsecured subordinated debentures and collateralized convertible debentures and in default of its primary debt obligations. (See Management's Discussion and Analysis of Financial Condition and Results of Operations and Notes 7, 8, and 9 to the Company's consolidated financial statements for the year ended December 31, 2012, as contained in the Company's Annual Report on Form 10 - K).
All adjustments (consisting of only normal recurring accruals) necessary for fair presentation of financial position, results of operations and cash flows have been made. The results for the three and six months ended June 30, 2013 are not necessarily indicative of operations to be expected for the fiscal year ending December 31, 2013 or any other interim period. |
3. Statement of Cash Flows
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
|
|||
Statement of Cash Flows [Abstract] | |||
Statement of Cash Flows |
The Financial Accounting Standards Board Accounting Standards Codification Topic No. 230, Statement of Cash Flows, requires a statement of cash flows as part of a full set of financial statements. For quarterly reporting purposes, the Company has elected to condense the reporting of its net cash flows. There were no payments of interest for the six month periods ended June 30, 2013 and June 30, 2012. |
6. Land and Improvements
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Land and Improvements |
Land and improvement inventories consisted of:
|
4. Restricted Cash
|
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2013
|
|||
Cash and Cash Equivalents [Abstract] | |||
Restricted Cash |
Restricted cash includes restricted proceeds held by the primary lender as collateral for debt repayment. |
8. Accounts Payable and Accrued Expenses (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Accounts payable and accrued expenses | ||
Accounts payable | $ 2 | $ 0 |
Accrued audit & professional | 25 | 36 |
Accrued consulting fees-related party | 1 | 1 |
Environmental remediation obligations | 70 | 70 |
Accrued debenture fees | 107 | 103 |
Accrued miscellaneous | 1 | 1 |
Total | 206 | 211 |
Accrued real estate taxes consisted of: | ||
Accrued real estate taxes | $ 4 | $ 8 |