SEC 10-Q: Quarterly Report
(Management's Discussion)
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This Form 10-QSB contains forward looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. The Company's actual results could differ materially from those set forth in the forward looking statements.
Results of Operations - Three months ended September 30, 1998, compared to the three months ended September 30, 1997.
The Company is engaged in construction and real estate development. The Company's most recent developments are near the Eastside Reservoir, a $3 billion project under construction in Central Riverside County which will be the largest freshwater lake in Southern California.
Revenues. Revenues for the three months ended September 30, 1998, decreased by $671,128 or 83% to $145,441 from $816,569 for the three months ended September 30, 1997. This decrease resulted from reduction in home building as well as a decrease in administration revenues.
Expenses. Total expenses for the three months ended September 30, 1998, decreased by $349,992 or 40% to $534,413 from $884,405 for the three months ended September 30, 1997. This decrease resulted from lower home building development costs. General and administrative expenses for the three months ended September 30, 1998, increased by $271,131 or 69% to $393,930 from $122,799 for the three months September 30, 1997, primarily due to the increase in issue of common stock for services.
Results of Operations - Nine months ended September 30, 1998, compared to the nine months ended September 30, 1997.
Revenues. Revenues for the nine months ended September 30, 1998, decreased by $1,412,072 or 75% to $470,995 from $1,883,067 for the nine months ended September 30, 1997. This decrease resulted from reduction in home building as well as a decrease in administration income.
Expenses. Total expenses for the nine months ended September 30, 1998, decreased by $814,730 or 37% to $1,426,537 from $2,241,267 for the nine months ended September 30, 1997. This decrease resulted from lower home building development costs. General and administrative expenses for the nine months ended September 30, 1998, increased by $441,564 or 50% to $883,118 from $441,554 for the nine months ended September 30, 1997, primarily due to the increase in issue of common stock for services.
Changes in Financial Condition, Liquidity and Capital Resource.
For the nine months ended September 30, 1998, the Company funded its operations and capital requirements partially with its own capital and partially with loans from related parties. As of September 30, 1998, the Company had cash of $7,632.
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