FORM 10-QSB

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2002

OR

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

Commission File Number   0-18528

INCOME GROWTH PARTNERS, LTD. X

(Exact name of registrant as specified in its charter)

CALIFORNIA
(State or other jurisdiction of
incorporation or organization) 33-0294177
(I.R.S. Employer
Identification No.)

11300 Sorrento Valley Road, Suite 108, San Diego, California 92121
(Address of principal executive offices) (Zip Code)

(619) 457-2750

(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 registration (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 filing requirements for the past 90 days. Yes [X] No [ ]

The number of the registrant’s Original Limited Partnership Units outstanding as of May 13, 2002 was 18,826.5. The number of the registrant’s Class A Units outstanding as of May 13, 2002 was 8,100.

TABLE OF CONTENTS

PART I — FINANCIAL INFORMATION
	ITEM 1. FINANCIAL STATEMENTS
		CONSOLIDATED BALANCE SHEETS
		STATEMENTS OF OPERATIONS
		STATEMENTS OF CASH FLOWS
		NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
	ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
PART II — OTHER INFORMATION
	ITEM 1. LEGAL PROCEEDINGS:
	ITEM 2. CHANGES IN SECURITIES:
	ITEM 3. DEFAULTS UPON SENIOR SECURITIES:
	ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS:
	ITEM 5. OTHER INFORMATION:
	ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
SIGNATURES

     PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES A CALIFORNIA LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEETS

		March 31			December 31,
		2002			2001
		(unaudited)
ASSETS
Rental properties
	Land	$	7,078,365		$	7,078,365
	Buildings and improvements		22,622,400			22,447,049
			29,700,765			29,525,414
	Less accumulated depreciation		(12,245,730	)		(12,033,933	)
			17,455,035			17,491,481
Cash and cash equivalents			485,145			429,729
Deferred loan fees, net of accumulated amortization of $347,822 and $325,275, respectively			429,361			451,908
Prepaids and other assets			227,671			186,181
		$	18,597,212		$	18,559,299
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgage loans payable		$	18,876,531		$	18,939,550
Other liabilities
	Loan payable to affiliates		8,000			8,000
	Accounts payable and accrued liabilities		413,564			241,171
	Accrued interest payable		122,317			122,317
	Security deposits		220,868			226,029
			19,641,280			19,537,067
Commitments and contingencies
Partners’ capital (deficit)			(1,034,068	)		(967,768	)
Note receivable from general partner			(10,000	)		(10,000	)
		$	18,597,212		$	18,559,299

The accompanying notes are an integral part of these financial statements.

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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001

			2002		2001
			(unaudited)		(unaudited)
REVENUES
	Rents		$	1,281,120	$	1,214,634
	Other			70,723		88,390
		Total revenues		1,351,843		1,303,024
EXPENSES
	Operating expenses			620,852		646,949
	Depreciation and amortization			234,344		224,854
	Interest			360,735		365,179
		Total expenses		1,215,931		1,236,982
Net income			$	135,912	$	66,042
BASIC AND DILUTED PER LIMITED PARTNERSHIP UNIT DATA
	Net income per limited partnership unit		$	4.29	$	2.08
	Distributions per Class A limited unit holder		$	24.97	$	31.00
Weighted average limited partnership units				26,926		26,926

The accompanying notes are an integral part of these financial statements.

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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2002 AND 2001

					2002			2001
					(unaudited)			(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
	Net income				$	135,912		$	66,042
	Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization					234,344			224,854
		(Increase) / Decrease in Prepaid expenses and other assets				(41,490	)		105,735
		Increase / (Decrease) in Accounts payable, accrued liabilities and accrued interest payable				172,393			40,379
			Security deposits			(5,161	)		(2,138	)
				Net cash provided by operating activities		495,998			434,872
CASH FLOWS FROM INVESTING ACTIVITIES
	Capital expenditures					(175,351	)		(76,933	)
				Net cash used in investing activities		(175,351	)		(76,933	)
CASH FLOWS FROM FINANCING ACTIVITIES
	Principal payments under mortgage debt					(63,019	)		(58,574	)
	Distributions to Investors					(202,212	)		(251,100	)
				Net cash used in financing activities		(265,231	)		(309,674	)
				Net increase in cash and cash equivalents		55,416			48,265
Cash and cash equivalents at beginning of period						429,729			599,660
				Cash and cash equivalents at end of period	$	485,145		$	647,925

The accompanying notes are an integral part of these financial statements.

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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2002 AND 2001

The accompanying unaudited consolidated financial statements of Income Growth Partners, Ltd. X, a California limited partnership, and subsidiaries (the “Partnership”) have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Partnership believes that the disclosures made are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Partnership’s latest audited financial statements for the year ended December 31, 2001, filed on Form 10-KSB.

The accompanying consolidated financial statements have not been audited by independent public accountants, but include all adjustments (consisting of normal recurring adjustments) which are, in the opinion of the general partner, necessary for a fair presentation of the financial condition, results of operations and cash flows for the periods presented. However, these results are not necessarily indicative of results for a full year.

Certain prior period amounts have been reclassified to conform with the current period presentation.

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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2002 AND 2001

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and notes thereto filed herewith.

a. Critical Accounting Standards

Rental revenues are recognized at the beginning of each month based on the current occupancy of the apartments. Tenant leases are generally for a minimum term of six months with an option to rent on a month-to-month basis.

Land, buildings, and improvements are recorded at cost. Buildings and improvements are depreciated using the straight-line method over the estimated useful lives of 27.5 and 5 to 15 years, respectively. Expenditures for maintenance and repairs are charged to expense as incurred. Significant renovations are capitalized and depreciated over the remaining life of the property. The Partnership assesses its property for impairment whenever events or changes in circumstances indicate that the carrying amount of the property may not be recoverable. Recoverability of property to be held and used is measured by a comparison of the carrying amount of the property to future undiscounted net cash flows expected to be generated by the property. If the property is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the property exceeds the fair value of the property. The cost and related accumulated depreciation of real estate are removed from the accounts upon disposition. Gains and losses arising from the dispositions are reported as income or expense.

b. Liquidity and Capital Resources:

Since inception, the Partnership’s operating and debt service obligations have been financed through the sale of Partnership Units, cash provided by operating activities, and 1995 debt restructuring activities. During the three months ended March 31, 2002, all of the Partnership’s operating and debt service cash requirements have been met through cash generated from operations.

The Mission Park mortgage was refinanced in December 1995 at a fixed interest rate of 7.76%. The Shadowridge Meadows mortgage was refinanced in October 1997 at a fixed interest rate of 7.49%.

In the event that one or more of the properties is unable to support its debt service and the Partnership is unable to cover operational shortfalls from cash reserves, the Partnership may have to take one or more alternative courses of action. The general partners would then determine, based on their analysis of relevant economic conditions and the status of the properties, a course of action intended to be consistent with the best interests of the Partnership. Possible courses of action might include the sacrifice, sale or refinancing of one or more of the properties, the entry into one or more joint venture partnerships with other entities, or the filing of another bankruptcy petition.

Net cash provided by operating activities for the three months ended March 31, 2002, was approximately $496,000 compared to approximately $435,000 for the same period in 2001. The principal reasons for this increase can be attributed to increase in rental revenue and accounts payable and a decrease in prepaid expenses.

Net cash used in investing activities for the three months ended March 31, 2002, was approximately $175,000 compared to approximately $77,000 for the same period in 2001. The principal reason for this increase was an increase in capital expenditures.

Net cash used in financing activities for the three months ended March 31, 2002, was approximately $265,000 compared to approximately $310,000 for the same period in 2001. The principal reason for this decrease was a decrease in distributions to investors.

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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2002 AND 2001

c. Results of Operations:

COMPARISON OF THREE MONTHS ENDED MARCH 31, 2002, TO THE THREE MONTHS ENDED MARCH 31, 2001.

Rental revenue for the three months ended March 31, 2002, was approximately $1,281,000, an increase of 5% over rents of approximately $1,215,000 for the comparable period in 2001. The increase is primarily attributable to an increase in monthly tenant rental rates and steady average occupancy rates.

Operating expenses for the three months ended March 31, 2002, were approximately $621,000, a decrease of 4% over operating expenses of approximately $647,000 for the comparable period in 2001. The decrease is primarily attributable to a decrease in property and administration expenses.

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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES A CALIFORNIA LIMITED PARTNERSHIP NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2002 AND 2001

PART II — OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS:

There are no pending legal proceedings which may have a material adverse effect on the Partnership. However, the Partnership is involved in small claims court proceedings against certain present or former tenants of its apartment complexes with regard to landlord-tenant matters, all of which are considered to be in the ordinary course of its business.

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 INFORMATION:

     None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:

     None

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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARIES A CALIFORNIA LIMITED PARTNERSHIP

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.

Date:   May 13, 2002

INCOME GROWTH PARTNERS, LTD. X, a California Limited Partnership
By:	Income Growth Management, Inc. General Partner
	By:	/s/   Timothy C. Maurer
	Timothy C. Maurer Principal Financial Officer AND Duly Authorized Officer of the Registrant

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