Back to GetFilings.com




SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-Q

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

For the quarterly period ended July 31, 2003

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

For the transition period from _______________ to _______________.


Commission file number O-24512


Anza Capital, Inc.
(Exact name of registrant as specified in its charter)
 
Nevada
(State or other jurisdiction of
incorporation or organization)
 
88-1273503
(I.R.S. Employer
Identification No.)
 
3200 Bristol Street, Suite 700
Costa Mesa, CA
(Address of principal executive offices)
 
 
92626
(Zip Code)
 

Registrant’s telephone number, including area code (714) 866-2100


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 X     No __        

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes __   No X     

Applicable only to issuers involved in bankruptcy proceedings during the preceding five years:

Indicate by check mark whether the registrant filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes __   No __       

Applicable only to corporate issuers

Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date. As of September 10, 2003, there were 4,967,460 shares of common stock issued and 4,829,960 shares of common stock outstanding.

 
     
 
 

ANZA CAPITAL, INC.



TABLE OF CONTENTS




 
PART I
 
 
 
 
ITEM 1
Financial Statements
3
 
 
 
ITEM 2
Management’s Discussion and Analysis
12
 
 
 
ITEM 3
Quantitative and Qualitative Disclosures About Market Risk
20
 
 
 
ITEM 4
Controls and Procedures
21
 
 
 
 
PART II
 
 
 
 
ITEM 1
Legal Proceedings
22
 
 
 
ITEM 2
Changes in Securities and Use of Proceeds
22
 
 
 
ITEM 3
Defaults Upon Senior Securities
22
 
 
 
ITEM 4
Submission of Matters to a Vote of Security Holders
22
 
 
 
ITEM 5
Other Information
23
 
 
 
ITEM 6
Exhibits and Reports on Form 8-K
23

 
  2  
 
 

PART I

 
This Quarterly Report includes forward-looking statements within the meaning of the Securities Exchange Act of 1934 (the "Exchange Act"). These statements are based on management’s beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning possible or assumed future results of operations of the Company set forth under the heading "Management’s Discussion and Analysis of Financial Condition or Plan of Operation." Forward-looking statements also include statements in which words such as "expect," "anticipate," "intend," "plan," "believe," "estimate," "consider" or similar expressions are used.

Forward-looking statements are not guarantees of future performance. They involve risks, uncertainties and assumptions. The Company’s future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

ITEM 1      Financial Statements


 
  3  
 

 
ANZA CAPITAL, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

 
  
 
 
 
  
July 31, 2003
April 30, 2003
 
  
(Unaudited)
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
 
$
4,477,164
 
$
2,755 659
 
Commissions receivable
   
3,212,588
   
2,512,741
 
Loans held for sale, net
   
13,483,933
   
7,601,623
 
Marketable securities
   
834,375
   
34,375
  
Advances to employees
   
13,852
   
6,516
 
Prepaids and other current assets
   
68,127
   
35,857
  
   
 
 
Total current assets
   
22,090,039
   
12,946,771
 
 
    
 
    
 
  
Property and equipment, net
   
281,871
   
253,723
 
Goodwill, net
   
195,247
   
195,247
 
Other assets
   
-
   
22,879
 
   
 
 
 
  
$
22,567,157
 
$
13,418,620
 
   
 
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
   
 
    
 
  
Current liabilities:
   
 
    
 
  
Accounts payable
 
$
1,104,729
 
$
677,951
 
Commissions payable
   
4,315,928
   
2,687,511
 
Warehouse line of credit
   
13,361,041
   
7,514,209
 
Accrued liabilities
   
561,389
   
532,337
 
Other liabilities
   
201,075
   
75,601
 
   
 
 
Total current liabilities
   
19,544,162
   
11,487,609
 
   
 
 
Preferred stock of subsidiary
   
800,000
   
-
 
 
    
 
    
 
  
Total liabilities
   
20,344,162
   
11,487,609
 
   
 
 
 
    
 
    
 
  
Stockholders’ equity:
   
 
    
 
  
Preferred stock, 2,500,000 shares authorized:
   
 
    
 
  
Class D convertible preferred stock, no par value; liquidation
value of $126.81 per share; 15,000 shares authorized; 8,201.5
shares outstanding
   
 
 
1,040,222
   
 
 
1,040,222
 
Class E convertible preferred stock, no par value; liquidation
value of $1.00 per share; 250,000 shares authorized; 193,429
and 217,278 shares issued and outstanding, respectively
   
 
 
193,429
   
 
 
217,278
 
Class F convertible preferred stock, no par value; liquidation
value of $16.675 per share; 25,000 shares authorized, 18,800
shares issued and outstanding
   
 
 
313,490
   
 
 
313,490
 
Common stock, $0.001 par value; 100,000,000 shares
authorized; 4,967,460 shares issued and 4,829,960 shares
outstanding as of July 31, 2003 and April 30, 2003
   
 
 
96,597
   
 
 
96,597
 
Additional paid in capital
   
13,547,347
   
13,547,347
 
Accumulated deficit
   
(12,968,090
)
 
(13,283,923
)
   
 
 
Total stockholders’ equity
   
2,222,995
   
1,931,011
 
   
 
 
 
  
$
22,567,157
 
$
13,418,620
 
   
 
 

See accompanying notes

 
  4  
 

ANZA CAPITAL, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


 
  
Three Months Ended
   
 
  
July 31, 2003
July 31, 2002
   
Revenues:
 
 
 
Broker commissions
 
$
18,393,906
 
$
10,951,066
 
Sales of loans, net
   
239,160
   
5,221
 
Notary and other
   
960,277
   
363,059
 
   
 
 
 
    
19,593,343
   
11,319,346
 
   
 
 
Cost of revenues:
   
 
    
 
  
Broker commissions
   
13,365,223
   
7,891,685
 
     
Notary and other
   
552,606
   
270,285
 
   
 
 
 
    
13,917,829
   
8,161,970
 
   
 
 
Gross profit
   
5,675,514
   
3,157,376
 
   
 
 
Operating expenses:
   
 
    
 
  
General and administrative
   
2,643,215
   
1,631,104
 
Salaries and wages
   
2,649,937
   
1,177,900
 
Selling and marketing
   
116,845
   
107,838
 
   
 
 
 
    
5,409,997
   
2,916,842
 
   
 
 
Operating income
   
265,517
   
240,534
 
 
    
 
    
 
  
Interest expense
   
(72,800
)
 
(28,667
)
Interest income
   
129,268
   
16,983
 
Net income
 
$
321,985
 
$
228,850
 
   
 
 
 
    
 
    
 
  
Earnings per common share:
   
 
    
 
  
 
    
 
    
 
  
Basic:
   
 
    
 
  
Weighted average number of common shares
   
4,829,960
   
2,119,335
 
Net income per common share
 
$
0.07
 
$
0.10
 
 
    
 
    
 
  
Diluted:
   
 
    
 
  
Weighted average number of common shares
   
8,006,380
   
6,557,060
 
Net income per common share
 
$
0.04