UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the Quarter Ended June 30, 2002 |
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Commission File No. 1-9502 |
JKC GROUP, INC.
(Exact name of registrant as specified in its charter)
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New York |
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13-3016967 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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1385 Broadway |
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10018 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (212) 840-0880
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 ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Title of Class |
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Outstanding at July 31, 2002 |
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Common Stock |
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36,397,267 |
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JKC GROUP, INC.
(Formerly STAGE II APPAREL CORP.)
1
JKC GROUP, INC.
(Formerly STAGE II APPAREL CORP.)
(In thousands)
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June 30, |
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Dec. 31, |
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(Unaudited) |
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ASSETS: |
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Current assets: |
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Cash |
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$ |
866 |
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$ |
3 |
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Marketable securities |
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— |
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6 |
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Accounts receivable |
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8 |
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240 |
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Miscellaneous receivables |
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200 |
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— |
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Finished goods inventory |
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— |
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35 |
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Prepaid expenses and other current assets |
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23 |
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— |
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Total current assets |
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1,097 |
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284 |
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Trademark, less accumulated amortization of $80 at June 30, 2002 and $67 at December 31, 2001 |
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195 |
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208 |
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TOTAL ASSETS |
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$ |
1,292 |
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$ |
492 |
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LIABILITIES: |
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Current liabilities: |
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Due to factor |
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$ |
— |
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$ |
514 |
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Note payable to affiliate |
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176 |
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403 |
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Accounts payable |
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41 |
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278 |
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Due to affiliate |
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6 |
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72 |
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Other current liabilities |
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67 |
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90 |
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Total current liabilities |
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290 |
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1,357 |
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COMMITMENTS AND CONTINGENCIES (See Note 3) |
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SHAREHOLDERS’ EQUITY (DEFICIT) |
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Preferred stock, $.01 par value, 1,000 shares authorized; none issued and outstanding |
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— |
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— |
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Common stock, $.01 par value, 100,000 shares authorized at June 30, 2002 and 9,000 shares authorized at December 31, 2001; 36,397 shares issued and outstanding at June 30, 2002 and 5,016 shares issued and 4,127 shares outstanding at December 31, 2001 |
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364 |
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50 |
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Additional paid-in capital |
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9,513 |
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7,366 |
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Accumulated deficit |
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(8,875 |
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(6,402 |
) |
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1,002 |
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1,014 |
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Less treasury stock, at cost; none at June 30, 2002 and 889 shares at December 31, 2001 |
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— |
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(1,879 |
) |
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TOTAL SHAREHOLDERS’ EQUITY (DEFICIT) |
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1,002 |
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(865 |
) |
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) |
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$ |
1,292 |
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$ |
492 |
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See Notes to Condensed Financial Statements.
2
JKC GROUP, INC.
(Formerly STAGE II APPAREL CORP.)
(Unaudited)
(In thousands, except per share data)
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Three Months Ended |
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Six Months Ended |
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2002 |
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2001 |
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2002 |
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2001 |
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Net sales |
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$ |
4 |
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$ |
1,026 |
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$ |
21 |
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$ |
1,690 |
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Cost of goods sold |
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8 |
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1,111 |
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$ |
35 |
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1,770 |
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Gross loss |
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(4 |
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(85 |
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(14 |
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(80 |
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Royalty and other income |
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22 |
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18 |
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45 |
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21 |
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18 |
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(67 |
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31 |
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(59 |
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Selling, general and administrative expenses |
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107 |
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325 |
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255 |
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829 |
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Compensation from replacement options |
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959 |
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— |
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959 |
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— |
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Gain on settlement of litigation, net of legal expenses |
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(526 |
) |
— |
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(526 |
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— |
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Operating loss |
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(522 |
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(392 |
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(657 |
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(888 |
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Other income (expenses): |
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Interest income |
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1 |
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2 |
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1 |
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9 |
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Interest and factoring expenses |
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3 |
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(72 |
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(12 |
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(152 |
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Gain on sale of marketable securities |
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— |
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36 |
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30 |
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1 |
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Net loss |
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$ |
(518 |
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$ |
(426 |
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$ |
(638 |
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$ |
(1,030 |
) |
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