(COMTEX) Management`s Discussions: 10QSB, AMERIRESOURCE TECHNOLOGIES
Management`s Discussions: 10QSB, AMERIRESOURCE TECHNOLOGIES INC
(Edgar Online via COMTEX)
Company Name: AMERIRESOURCE TECHNOLOGIES INC
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The following
discussion and analysis should be read in conjunction with the financial
statements and notes thereto appearing elsewhere herein. Except for historical
information contained herein, certain statements herein are forward_looking
statements that are made pursuant to the safe harbor provisions of the private
securities litigation reform act of 1995.
Forward-looking statements involve estimates of the Company's financial
position, business strategy and other plans and objectives for future
operations. Although the Company believes that these expectations are
reasonable, there can be no assurance that the actual results or developments
anticipated by the Company will be realized or, even if substantially realized,
that they will have the expected effects on its business or operations.
General
As the AmeriResource Technologies, Inc. (the "Company") sold most of its
operating subsidiaries in 1999, it is attempting to acquire income producing
assets which are hoped to generate profits. Accordingly, the Company's
operations during the quarter ended March 31, 2000, have surrounded merger and
acquisition negotiations.
The Company is attempting to acquire the assets of Magnolia Manors, Inc. in
exchange for cash and stock. Magnolia Manors and the Company have executed an
asset purchase agreement whereby the Company's subsidiary, Crestwood Villas,
will acquire Magnolia's assets. This agreement is expected to close after the
Company is successful in prioritizing Magnolia's existing mortgages. Magnolia
owns and operates approximately 21 assisted living facilities located in
Alabama. The Company is acquiring Magnolia in its attempt to enter the Assisted
Living Care market as well as the performing real estate industry.
In April 2000, the Company's wholly owned subsidiary, Crestwood Villas, Inc.,
made a formal offer to purchase a casino and hotel in Mesquite, Nevada.
Crestwood Villas has also executed a Letter of Intent to purchase all of the
outstanding shares of Nevstar Gaming & Entertainment These offers are
subject to the Company securing the $9, 000,000 purchase price pursuant to debt
financing and the execution of a definitive purchase agreement for both the
casino and hotel and for Nevstar Gaming & Entertainment.
Results of Operations
The Company had no revenue or income for the quarter ended March 31, 2000, as
compared to $42,498 for the first quarter in 1999. The decrease is attributable
to the sale of FAMC, which had generated net service income in 1999.
As a result of the Company's lack of operations, expenses were reduced during
the quarter ended on March 31, 2000. For the quarter ended on March 31, 2000, no
operating expenses were incurred and general and administrative expenses were
only $96,073, as compared to operating expenses of $348 and general and
administrative expenses of $573,743 for the same quarter in 1999.
During the quarter ended on March 31, 2000, the Company realized a gain on
marketable securities of $2,227,780, which primarily allowed the Company to
realize net income of $2,131,707 for the quarter ended March 31, 2000, as
compared to its $528,078 net loss for the quarter ended March 31, 1999.
Liquidity and Capital Resources
As a result of its ownership of common stock in Kelly's Coffee, which has
recently appreciated, the Company's liquidity improved greatly during the
quarter ended March 31, 2000. Total current assets as of the quarter ended March
31, 2000 were $2,205,852, as compared to $30,165 during the same period in 1999.
The Company's current liabilities remained the same from the quarter ended March
31, 1999 to the quarter ended March 31, 2000, at $2,587,453.
The Company's net stockholders' equity decreased from $5,586,047 for the quarter
ended March 31, 1999 to $3,454,340 for the quarter ended March 31, 2000. The
Company's deficit was reduced primarily as a result of the gain on marketable
securities.
(c) 1995-1999 Cybernet Data Systems, Inc. All Rights Reserved.
Received by Edgar Online: May. 09, 2000
CIK Code: 0000876490
SEC Accession Number: 0001063071-00-000010
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