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 May 31, 2004
Commission file number: 000-31667
|
Delaware
(State of
incorporation) |
13-3579974
(I.R.S. Employer
Identification No.) |
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 July 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
| May 31, | February 29, | |||
| 2004 | 2004 | |||
| (unaudited) | ||||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 9,130 | $ 12,992 | ||
| Finance receivables, net | 1,044,085 | 1,453,048 | ||
| Other current assets | 98,172 | 60,415 | ||
| Assets of discontinued operations | 1,568,726 | 1,625,502 | ||
| Total current assets | 2,720,113 | 3,151,957 | ||
| Property and equipment: | ||||
| Property and equipment, at cost | 787,914 | 784,164 | ||
| Less accumulated depreciation and amortization | 465,365 | 434,523 | ||
| 322,549 | 349,641 | |||
| Other assets: | ||||
| Real estate held for development or sale | 1,341,590 | 1,334,384 | ||
| Mortgage and note receivable - related party | 946,732 | 946,732 | ||
| Deferred tax asset, net | 90,000 | 90,000 | ||
| Other | 4,470 | 30,318 | ||
| Total other assets | 2,382,792 | 2,401,434 | ||
| Total assets | $ 5,425,454 | $ 5,903,032 |
The accompanying notes are an integral part of these financial statements.
MFC DEVELOPMENT CORP. AND SUBSIDIARIES
| May 31, | February 29, | |||
| 2004 | 2004 | |||
| (unaudited) | ||||
| Liabilities and Stockholders' Equity | ||||
| Current liabilities: | ||||
| Accounts payable and accrued expenses | $ 411,915 | $ 313,102 | ||
| Current portion of notes payable, including amounts payable to related | ||||
| parties of $50,000 at May 31, 2004 and February 29, 2004 | 1,001,307 | 1,008,173 | ||
| Income taxes payable | 1,019 | 3,355 | ||
| Liabilities of discontinued operations | 122,562 | 120,097 | ||
| Total current liabilities | 1,536,803 | 1,444,727 | ||
| Other liabilities: | ||||
| Notes payable | 88,215 | 97,452 | ||
| Due to co-investors | 147,763 | 147,763 | ||
| Other | - | 6,000 | ||
| Total other liabilities | 235,978 | 251,215 | ||
| 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 | (2,276,909) | (1,722,492) | ||
| 3,693,311 | 4,247,728 | |||
| Less treasury stock, at cost - 24,947 shares | (40,638) | (40,638) | ||
| Total stockholders' equity | 3,652,673 | 4,207,090 | ||
| Total liabilities and stockholders' equity | $ 5,425,454 | $ 5,903,032 |
The accompanying notes are an integral part of these financial statements.
MFC DEVELOPMENT CORP. AND SUBSIDIARIES
| Three months ended | |||
| May 31, | |||
| 2004 | 2003 | ||
| Revenues | |||
| Other real estate | $ - | $ 174,573 | |
| Rental income | 25,897 | 25,802 | |
| Interest from mortgages | 16,566 | 16,566 | |
| Income from the purchase | |||
| and collections of medical receivables | 73,559 | 369,213 | |
| Reimbursed expenses | 31,351 | 59,189 | |
| Total revenues | 147,373 | 645,343 | |
| Costs and expenses | |||
| Real estate | 61,788 | 54,134 | |