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, 2003
Commission file number: 000-31667
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Delaware
(State of incorporation)
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13-3579974
(I.R.S. Employer Identification No.)
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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 14, 2004, 1,775,053 shares of the issuer's classes of common stock, par value of $.001 per share, were outstanding.
MFC DEVELOPMENT CORP. AND SUBSIDIARIES
| November 30, | February 28, | |||
| 2003 | 2003 | |||
| (Unaudited) | ||||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 80,703 | $ 247,129 | ||
| Finance receivables, net | 1,840,784 | 2,540,340 | ||
| Management fee receivables, net | 1,182,060 | 1,058,188 | ||
| Other current assets | 92,496 | 138,694 | ||
| Total current assets | 3,196,043 | 3,984,351 | ||
| Property and equipment: | ||||
| Property and equipment, at cost | 1,279,280 | 1,116,109 | ||
| Less accumulated depreciation and amortization | 603,527 | 447,809 | ||
| 675,753 | 668,300 | |||
| Other assets: | ||||
| Real estate held for development or sale | 1,418,128 | 951,358 | ||
| Mortgage and note receivable | 946,732 | 946,732 | ||
| Loans receivable | 237,176 | 237,176 | ||
| Investment in unconsolidated subsidiaries | 50,000 | 103,951 | ||
| Deferred tax asset, net | 90,000 | 90,000 | ||
| Other | 75,065 | 93,975 | ||
| Total other assets | 2,817,101 | 2,423,192 | ||
| Total assets | $ 6,688,897 | $ 7,075,843 | ||
The accompanying notes are an integral part of these financial statements.
MFC DEVELOPMENT CORP. AND SUBSIDIARIES
| November 30, | February 28, | |||
| 2003 | 2003 | |||
| (Unaudited) | ||||
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | $ 356,813 | $ 365,156 | ||
| Current portion of notes payable | 1,054,181 | 758,884 | ||
| Income taxes payable | 7,250 | 3,507 | ||
| Total current liabilities | 1,418,244 | 1,127,547 | ||
| Other liabilities: | ||||
| Notes payable | 291,133 | 274,682 | ||
| Due to co-investors | 138,820 | - | ||
| Other | 12,000 | 28,500 | ||
| Total other liabilities | 441,953 | 303,182 | ||
| 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 | (1,105,882) | (289,468) | ||
| 4,864,338 | 5,680,752 | |||
| Less treasury stock, at cost - 24,947 shares at November 30, 2003 | ||||
| and February 28, 2003 | (40,638) | (40,638) | ||
| Total stockholders' equity | 4,823,700 | 5,640,114 | ||
| Total liabilities and stockholders' equity | $ 6,688,897 | $ 7,075,843 | ||
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, | ||||||
| 2003 | 2002 | 2003 | 2002 | ||||
| Revenues | |||||||
| Income from the purchase | |||||||