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
For the quarterly period ended November 30, 2002
Commission file number: 000-31667
MFC DEVELOPMENT CORP.
(Exact name of registrant as specified in its charter)
Delaware (State of incorporation) |
13-3579974 (I.R.S. Employer Identification No.) |
271 North Avenue, Suite 520
New Rochelle, NY 10801
(Address of principal executive offices)
(914) 636-3432
(Telephone number)
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 (X) No ( )
As of the close of business on January 13, 2003, 1,780,075 shares of the issuer’s classes of common stock, par value of $.001per share, were outstanding.
MFC DEVELOPMENT CORP. AND SUBSIDIARIES
| November 30, | February 28, | |||
| 2002 | 2002 | |||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 200,425 | $ 1,338,214 | ||
| Mortgage and notes receivable - current | 34,036 | 31,822 | ||
| Finance and management receivables, net | 5,436,019 | 4,136,126 | ||
| Other current assets | 164,867 | 149,713 | ||
| Total current assets | 5,835,347 | 5,655,875 | ||
| Property and equipment: | ||||
| Property and equipment, at cost | 1,026,566 | 790,169 | ||
| Less accumulated depreciation and amortization | 405,522 | 298,545 | ||
| 621,044 | 491,624 | |||
| Other assets: | ||||
| Real estate held for development and sale | 843,537 | 625,713 | ||
| Mortgage and notes receivable | 918,159 | 943,970 | ||
| Loans receivable | 237,176 | 196,417 | ||
| Investments in unconsolidated subsidiaries | 100,000 | - | ||
| Other | 165,480 | 61,769 | ||
| Total other assets | 2,264,352 | 1,827,869 | ||
| Total assets | $ 8,720,743 | $ 7,975,368 | ||
The accompanying notes are an integral part of these financial statements.
MFC DEVELOPMENT CORP. AND SUBSIDIARIES
| November 30, | February 28, | |||
| 2002 | 2002 | |||
| Liabilities and stockholders' equity | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | $ 367,985 | $ 287,890 | ||
| Current portion of notes payable, including $25,000 at November 30, | ||||
| 2002 and $160,000 at February 28, 2002 payable to a related party | 447,217 | 225,153 | ||
| Due to finance customers | 2,005,580 | 1,697,879 | ||
| Income taxes payable | 2,482 | 3,424 | ||
| Total current liabilities | 2,823,264 | 2,214,346 | ||
| Other liabilities: | ||||
| Notes payable, including $-0- at November 30, 2002 and $110,000 | ||||
| at February 28, 2002 payable to a related party | 229,532 | 158,654 | ||
| Deferred income | 850,000 | 850,000 | ||
| Other | 33,000 | 45,000 | ||
| Total other liabilities | 1,112,532 | 1,053,654 | ||
| Minority interest in subsidiary | 5,000 | 5,000 | ||
| Commitments and contingencies | - | - | ||
| Stockholders' equity: | ||||
| Preferred stock - $.001 par value; | ||||
| Authorized - 2,000,000 shares; | ||||
| Issued and outstanding - 0 shares | - | - | ||
| Common stock - $.001 par value; | ||||
| Authorized - 40,000,000 shares; | ||||
| Issued and outstanding - 1,800,000 shares | 1,800 | 1,800 | ||
| Capital in excess of par value | 5,968,420 | 5,968,420 | ||
| Accumulated deficit | (1,174,099) | (1,254,553) | ||
| 4,796,121 | 4,715,667 | |||
| Less treasury stock, at cost - 12,000 shares at November 30, 2002 | ||||
| and 10,000 shares at February 28, 2002 | (16,174) | (13,299) | ||
| Total stockholders' equity | 4,779,947 | 4,702,368 | ||
| Total liabilities and stockholders' equity | $ 8,720,743 | $ 7,975,368 | ||
The accompanying notes are an integral part of these financial statements.
MFC DEVELOPMENT CORP. AND SUBSIDIARIES
| Three months ended | Nine months ended | ||||||
|
November 30, |
November 30, |
||||||
| 2002 | 2001 | 2002 | 2001 | ||||
| Revenues | |||||||
| Sale of real estate | $ - | $ - | $ - | $ 50,000 | |||
| Gain on sale of real estate | - | 745,288 | - | 745,288 | |||
| Rental income | 25,802 | ||||||