[As filed with the Securities and Exchange Commission
May 20, 2002]
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[x] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended March 31, 2002
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from _________________ to _________________
Commission file number: 000-32335
HOM Corporation
(Exact name of small business issuer as specified in its charter)
Georgia 58-2558702
(State or other jurisdiction of (Employer
incorporation or organization) Identification No.)
4210 Columbia Road, Suite 10C, Martinez, Georgia 30907-0401
(Address of principal executive offices)
(706) 228-5087
(Issuer's telephone number)
N/A
(Former name, former address and former fiscal year, if changed since
last report)
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity. As of May 17, 2002: 3,885,682 shares of common stock were outstanding.
Transitional Small Business Disclosure Format (Check one): Yes [ ] No [x]
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
HOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, SEPTEMBER 30,
2002 2001
------------ ------------
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,590 $ 22,055
Accounts receivable 900 850
Trading securities 285 612
------------ ------------
Total current assets 3,775 23,517
PROPERTY AND EQUIPMENT - NET 19,938 27,691
OTHER ASSETS 1,834 3,327
------------ ------------
$ 25,547 $ 54,535
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 71,196 $ 43,457
Accounts payable to related parties 132,169 86,780
Accrued wages 77,508 38,880
Deferred revenues 3,447 4,530
Short-term notes payable 20,935 21,425
Stockholder advances 41,584 54,000
------------ ------------
Total current liabilities 346,839 249,072
------------ ------------
STOCKHOLDERS' DEFICIT
Paid in capital - 1,000,000 preferred shares authorized; 0 shares issued
and outstanding - -
Paid in capital - no par common - 50,000,000 shares authorized; issued
and outstanding 3,885,682 on March 31, 2002 and 3,508,667 on
September 30, 2001 783,653 687,524
Accumulated deficit (1,104,945) (882,061)
------------ ------------
(321,292) (194,537)
------------ ------------
$ 25,547 $ 54,535
============ ============
The accompanying notes are an integral part of these consolidated financial statements.
-2-
HOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
MARCH 31, MARCH 31,
------------------------------ ------------------------------
2002 2001 2002 2001
------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
REVENUES $ 32,411 $ 18,683 $ 50,608 $ 35,280
------------ ------------ ------------ ------------
OPERATING EXPENSES
Professional fees 55,622 4,229 74,951 4,861
Salaries, commissions and benefits 41,587 13,911 74,220 35,631
Magazine printing and distribution 12,330 4,103 16,282 6,784
Office expense 8,627 14,301 14,146 20,837
Travel 8,556 2,191 13,909 8,234
Advertising 8,656 4,600 10,051 8,791
Closing costs 6,337 - 9,210 -
Utilities and telephone 5,706 5,945 8,248 13,235
Depreciation 3,876 3,885 7,752 7,775
Rent 3,079 6,437 7,197 14,179
Website maintenance 70 - 70 4,800
Other 4,244 494 7,260 3,702
------------ ------------ ------------ ------------
158,690 60,096 243,296 128,829
------------ ------------ ------------ ------------
Operating loss (126,279) (41,413) (192,688) (93,549)
------------ ------------ ------------ ------------
OTHER INCOME (EXPENSE)
Unsuccessful business combination costs - - (27,104) -
Interest, net (1,938) (56) (4,136) (698)
Realized gains on trading securities 547 858 926 858
Unrealized gains (losses) on trading securities (88) (3,159) 118 (3,159)
Loss on disposal of property and equipment - (921) - (921)
------------ ------------ ------------ ------------
(1,479) (3,278) (30,196) (3,920)
------------ ------------ ------------ ------------
Net loss $ (127,758) $ (44,691) $ (222,884) $ (97,469)
============ ============ ============ ============
PER SHARE INFORMATION:
Basic net loss per common share $ (0.03) $ (0.01) $ (0.06) $ (0.03)
============ ============ ============ ============
Weighted average shares outstanding 3,846,515 3,231,334 3,677,592 3,102,000
============ ============ ============ ============
The accompanying notes are an integral part of these consolidated financial statements.
-3-
HOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
COMMON STOCK TOTAL
----------------------------- STOCKHOLDERS'
PAID IN ACCUMULATED EQUITY
SHARES CAPITAL DEFICIT (DEFICIT)
------------ ------------ ------------ ------------
BALANCE, SEPTEMBER 30, 2000 2,901,667 $ 535,774 $ (535,662) $ 112
Common stock issued as settlement for accounts
payable related to professional services received 63,000 15,750 - 15,750
Common stock issued for cash 368,000 92,000 - 92,000
Common stock issued as repayment for
stockholder advances 176,000 44,000 - 44,000
Net loss - - (346,399) (346,399)
------------ ------------ ------------ ------------
BALANCE, SEPTEMBER 30, 2001 3,508,667 687,524 (882,061) (194,537)
Common stock issued as repayment for
stockholder advances and related interest 320,515 80,129 - 80,129
Common stock issued for cash 52,500 15,000 - 15,000
Common stock issued as settlement for accounts
payable related to professional services received 4,000 1,000 - 1,000
Net loss (unaudited) - - (222,884) (222,884)
------------ ------------ ------------ ------------
BALANCE, MARCH 31, 2002 (UNAUDITED) 3,885,682 $ 783,653 $(1,104,945) $ (321,292)
============ ============ ============ ============
The accompanying notes are an integral part of these consolidated financial statements.
-4-
HOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
MARCH 31, MARCH 31,
-------------------------- --------------------------
2002 2001 2002 2001
---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
OPERATING ACTIVITIES
Net loss $(127,758) $ (44,691) $(222,884) $ (97,469)
Adjustments to reconcile net loss to net cash
used in operating activities
Depreciation 3,876 3,885 7,752 7,775
Realized and unrealized losses (gains) from
trading securities, net (459) 2,301 (1,044) 2,301
Loss on disposal of property and equipment - 921 - 921
Expenses settled by issuance of common stock 4,057 - 4,057 -
Changes in deferred and accrued amounts
Accounts receivable (500) (4,150) (50) (3,124)
Prepaid expenses - (20,450) - 4,800
Other assets 261 - 1,493 -
Accounts payable and accrued expenses 27,722 (7,824) 27,739 (6,579)
Accounts payable to related parties 32,288 - 45,389 -
Accrued wages 19,377 - 38,628 -
Deferred revenues (34) (1,906) (1,083) (5,998)
---------- ---------- ---------- ----------
Net cash used in operating activities (41,170) (71,914) (100,003) (97,373)
---------- ---------- ---------- ----------
INVESTING ACTIVITIES
Purchase of trading securities - (70,590) (31,433) (70,590)
Proceeds from sale of trading securities 9,267 60,306 67,461 60,306
Purchase of property and equipment - (1,558) - (1,558)
Proceeds from sale of property and equipment - 4,200 - 4,200
---------- ---------- ---------- ----------
Net cash provided by (used in) investing activities 9,267 (7,642) 36,028 (7,642)
---------- ---------- ---------- ----------
FINANCING ACTIVITIES
Proceeds, net of repayments, from short-term notes
payable and stockholder advances 9,734 57,893 29,510 59,694
Proceeds from the sale of common stock 15,000 27,000 15,000 57,000
---------- ---------- ---------- ----------
Net cash provided by financing activities 24,734 84,893 44,510 116,694
---------- ---------- ---------- ----------
Net increase (decrease) in cash (7,169) 5,337 (19,465) 11,679
CASH, BEGINNING OF PERIOD 9,759 7,031 22,055 689
---------- ---------- ---------- ----------
CASH, END OF PERIOD $ 2,590 $ 12,368 $ 2,590 $ 12,368
========== ========== ========== ==========
(Continued)
-5-
HOM CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
MARCH 31, MARCH 31,
----------------------- ---------------------
2002 2001 2002 2001
--------- --------- -------- --------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest $ 511 $ 425 $ 864 $ 890
========= ========= ======== ========
Noncash financing actvities
Common stock issued as repayment for
stockholder advances and related interest $ 80,129 $ 28,000 $80,129 $28,000
========= ========= ======== ========
Common stock issued as repayment for accounts
payable related to professional services received $ 1,000 $ - $ 1,000 $15,750
========= ========= ======== ========
Trading securities received as advances
from stockholders $ - $ 3,447 $34,657 $ 3,447
========= ========= ======== ========
The accompanying notes are an integral part of these consolidated financial statements.
-6-
HOM CORPORATION AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
------------------------------
The accompanying unaudited consolidated financial statements of HOM
CORPORATION AND SUBSIDIARIES (the "Company") have been prepared in accordance
with accounting principles generally accepted in the United States of America
for interim financial information and with the instructions to Form 10-QSB and
Item 310(b) of Regulation S-B. Accordingly, they do not include all of the
information and footnotes required by accounting principles generally accepted
in the United States of America for complete financial statements. The Company's
management believes that all adjustments considered necessary for a fair
presentation have been included in the consolidated financial statements.
Operating results for the six months ended March 31, 2002, are not necessarily
indicative of the results that may be expected for the fiscal year ending
September 30, 2002. For further information, refer to the consolidated financial
statements and footnotes thereto for the fiscal year ended September 30, 2001,
included in the Company's registration statement on Form 10-SB/A-3 and Form
10-KSB, both of which were filed on January 15, 2002 with the Securities and
Exchange Commission.
HOM Corporation, with its subsidiaries, (the "Company") has suffered
recurring losses while devoting substantially all of its efforts to raising
capital, evaluating alliances and business combinations with other entities and
developing markets for its FSBO advertising and mortgage services. Additionally,
the Company's total liabilities exceed its total assets. The accompanying
consolidated financial statements have been prepared on a going concern basis,
which contemplates continuing operations, realization of assets and liquidation
of liabilities in the ordinary course of business. The Company's ability to
continue as a going concern is dependent upon its ability to raise sufficient
capital to implement its business plan and to generate profits sufficient to
become financially viable. Management believes it can continue to raise capital
through equity offerings until the Company's operations are profitable.
Accordingly, the consolidated financial statements do not include adjustments
relating to the recoverability of recorded assets or liabilities that might be
necessary should the Company be unable to continue as a going concern.
Certain reclassifications have been made to the financial information of
previous periods to conform to the presentation of the financial statements as
of and for the six months ended March 31, 2002.
NOTE B - TRADING SECURITIES
---------------------------
Management has classified all financial instruments, which are equity
securities, as trading securities. Realized gains and losses resulting from the
sale of securities are reported in current earnings based on proceeds received
from the sale and the actual cost of the securities sold. Unrealized gains and
losses on the securities are reported in current earnings based on the estimated
fair values as reported on public exchanges. The fair values of the Company's
financial instruments reported in the financial statements approximate their
carrying values.
NOTE C - ACCOUNTS PAYABLE TO RELATED PARTIES
--------------------------------------------
The Company receives substantially all of its legal counsel from a firm
related through common ownership (aggregate ownership by the firm and one of its
partners of approximately 9.9% of the Company's outstanding stock at March 31,
2002). Amounts payable to this firm for services rendered totaled $132,169 at
March 31, 2002 and $86,780 at September 30, 2001.
-7-
NOTE D - UNSUCCESSFUL BUSINESS COMBINATION COSTS
------------------------------------------------
During 2001, the Company entered into negotiations for a business
combination with Connectivity, Inc. and Econo-Comm, Inc., two closely-held
Florida corporations. In conjunction with the negotiations, the Company
contracted with various professionals to perform due diligence, to audit the
financial statements of Connectivity, Inc. and to draft the various contracts
for the proposed business combination(s). The Company was unsuccessful in
reaching an agreement on the terms of the business combination(s) and believes
the proposed business combination(s) will not be consummated. The unsuccessful
business combination costs incurred for the six months ended March 31, 2002 were
$27,104 and are reported as other expense in the statement of operations.
The total cumulative costs incurred on the unsuccessful business
combination(s) through March 31, 2002 are as follows:
Legal fees $ 45,508
Accounting fees 16,043
Other professional fees 18,000
Other 4,700
--------------
$ 84,251
==============
Management does not anticipate additional costs will be incurred with
respect to the unsuccessful business combination(s) with Connectivity, Inc. and
Econo-Comm, Inc.
NOTE E - SEGMENT INFORMATION
----------------------------
The Company provided services through two industry segments during the six
months ended March 31, 2002 and 2001. The Company's advertising segment provides
advertising services for For Sale By Owner (FSBO) real estate and for
businesses. The Company's mortgage segment provides mortgage services to
individuals and small business as a mortgage broker. The basis for identifying
and measuring the results of the segment activities is consistent within the
periods presented and is consistent with the basis used in the audited financial
statements for the year ended September 30, 2001 and 2000, included in the
Company's registration statement on Form 10-SB/A-3 and Form 10-KSB.
The accompanying financial statements include the following business
segment information:
FOR THE SIX MONTHS
ENDED MARCH 31,
--------------------------------
2002 2001
--------------- ---------------
(UNAUDITED) (UNAUDITED)
REVENUES:
Mortgage $ 26,612 $ 12,360
Advertising 23,996 22,920
--------------- ---------------
$ 50,608 $ 35,280
=============== ===============
OPERATING LOSS:
Mortgage $ 78,229 $ 39,826
Advertising 114,459 53,723
--------------- ---------------
$ 192,688 $ 93,549
=============== ===============
(Continued)
-8-
NOTE E - SEGMENT INFORMATION, CONTINUED
---------------------------------------
FOR THE SIX MONTHS
ENDED MARCH 31,
--------------------------------
2002 2001
--------------- ---------------
(UNAUDITED) (UNAUDITED)
DEPRECIATION:
Mortgage $ 1,046 $ 1,068
Advertising 6,706 6,707
--------------- ---------------
$ 7,752 $ 7,775
=============== ===============
PURCHASE OF PROPERTY AND EQUIPMENT:
Mortgage $ - $ -
Advertising - 1,558
--------------- ---------------
$ - $ 1,558
=============== ===============
PROPERTY AND EQUIPMENT - NET:
Mortgage $ 6,929 $ 9,020
Advertising 13,009 25,644
--------------- ---------------
$ 19,938 $ 34,664
=============== ===============
NOTE F - SUBSEQUENT EVENTS
--------------------------
Subsequent to March 31, 2002, the Company received advances from three
stockholders totaling $28,000. The advances are unsecured and accrue interest at
12% per annum.
The Company has offered, and the Company's chairman and chief executive
officer has agreed to receive, Common shares as repayment of certain advances,
including interest accrued thereon, and as settlement for portions of certain
accrued compensation payable to him. The Company plans to issue the shares to
the chairman and chief executive officer by December 31, 2002.
-9-
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
The following information should be read in conjunction with the
financial statements and notes thereto appearing elsewhere in this Form 10-QSB.
Reference is also made to other filings by the Company with the Securities and
Exchange Commission, financial statements therein and management's discussion
and analysis related to such financial statements, particularly the financial
statements and management's discussion and analysis contained in the Company's
Form 10-KSB with filing date of January 15, 2002.
The Company's financial position is not good. It has never earned a
profit, has incurred an accumulated deficit of $1,104,945 as of March 31, 2002
and has limited access to material additional capital. Revenues of the magazine,
FOR SALE BY OWNER AND BUILDER, will need to improve substantially and/or the
number of mortgage closings will need to increase substantially for the Company
to survive in its present form. If the Company is unable to do this, it will not
be able to continue as a going concern without materially changing its business
in a way to produce positive operating cash flow. The Company currently has no
arrangements for any such change. Although there has been a recent increase in
customer interest in mortgage financings, believed to be a result of declining
interest rates, and the Company has closed 18 financings this fiscal year
through May 17, 2002, a material increase over the 5 closed in the comparable
period in fiscal 2001 (with six closings in the period April 1 - May 17, 2002 as
compared with none in the comparable period in fiscal 2001), there can be no
assurance that the Company can survive with its present operations. The Company,
therefore, is seeking a merger or other business combination or strategic
alliance with a stronger partner that would be attracted by the business
potential and/or the business structure of the Company, including its situation
as an entity whose common stock has been registered under Section 12(g) of the
Securities Exchange Act of 1934. In this regard, negotiations are in process
with Erwin Modular Structures, L.L.C., a Tennessee limited liability company
("Modular"), a producer of manufactured homes with an office and plant in Erwin,
Tennessee, that contemplates the acquisition of the entire outstanding equity of
Modular for 1,000,000 shares of the Company's common stock and with New
Generation Homes, Inc., a Tennessee corporation ("New Generation"), the sales
agency for homes produced by Modular with its offices in Erwin, Tennessee, that
contemplates the acquisition of all the outstanding capital stock of New
Generation for 200,000 shares of the Company's common stock. No agreement or
agreement in principle has been reached as to either acquisition, although the
Company has commenced due diligence with respect to both companies and a
preliminary draft of an agreement to acquire the equity of Modular has been
prepared and is being submitted to Modular. There is no other merger, other
business combination or strategic alliance as to which the Company has any
commitments or agreements, although discussions continue to be held with various
persons in an attempt to develop business opportunities for the Company.
LIQUIDITY
The Company currently and throughout its existence has lacked liquidity
as a result of its lack of initial financing and its continuing operating
losses. It has maintained its ability to pay expenses through the sale of its
common stock from time to time, principally to its directors, who have made
multiple investments. It is anticipated that the Company will remain dependent
on such funding, as to which there is no assurance that it will continue, until
it is able to arrange a financing of the Company or it is able to arrange a
merger, joint venture or other strategic alliance with a financially sound
entity, as to which there is no assurance.
CAPITAL EXPENDITURES
The Company has no material commitments for capital expenditures and
has no need, in its present operations, to make material capital expenditures.
If the acquisition of Modular and New Generation were to be effected, it would
be desirable, although not essential, to make a capital investment of an
estimated $400,000 to expand the Modular plant.
-10-
RESULTS OF OPERATIONS
o Quarter ended March 31, 2002 compared with Quarter ended March
31, 2001.
Revenue increased $13,728 from $18,683 to $32,411, or 73.5%, as a
result of an increase in mortgage revenues minimally offset by a small decline
in advertising revenues.
The operating loss increased $84,866 from $41,413 to $126,279, or
204.9%, principally as a result of (1) an increase in professional fees of
$51,393 from $4,229 to $55,622, or 1,215%, principally as a result of accounting
and legal services relating to the preparation of audited financial statements
for the year ended September 30, 2001 and the preparation of filings with the
Securities and Exchange Commission (which services were not required in the
previous period) and an increase in other legal services; (2) an increase in
salaries, commissions and benefits of $27,676, from $13,911 to $41,587, or
199.0%, as a result of the salary of the Chairman and Chief Executive Officer of
$18,000 during the period, which salary did not exist in the prior period,
compensation to new employees and an increase in compensation to a current
employee (3) an increase in magazine printing and distribution cost of $8,227
from $4,103 to $12,330, or 200.5%; (4) $6,337 in closing costs (which were not
incurred in the prior period), and (5) lesser increases in travel, advertising,
other and web maintenance costs. These increases were partially offset by a
reduction in office expense of $5,674 from $14,301 to $8,627, or 39.7%, in rent
of $3,358 from $6,437 to $3,079, or 52.2%, and, to a lesser extent, in utilities
and telephone and depreciation, together with the increase in revenue of $13,728
noted above.
o Six months ended March 31, 2002 compared with six months ended
March 31, 2001.
Revenue increased $15,328 from $35,280 to $50,608, or 43.4%, as a
result of an increase in mortgage revenues and a small increase in advertising
revenues.
The operating loss increased $99,139 from $93,549 to $192,688, or
106.0%, principally as a result of (1) an increase in professional fees of
$70,090 from $4,861 to $74,951, or 1,441%, principally as a result of accounting
and legal services relating to the preparation of audited financial statements
for the year ended September 30, 2001 and the preparation of filings with the
Securities and Exchange Commission (which services were not required in the
previous period) and an increase in other legal services; (2) an increase in
salaries, commissions and benefits of $38,589, from $35,631 to $74,220, or
108.3%, as a result of an increase in the salary of the Chairman and Chief
Executive Officer of $18,000 during the period, which salary did not exist in
half the prior period, compensation to new employees and in increase in
compensation to a current employee; (3) an increase in magazine printing and
distribution costs of $9,498 from $6,784 to $16,282, or 140.0%, partially as a
result of an increase in the size of the magazine from 16 to 24 pages as of
January 2002 and an increased use of color; (4) $9,210 in closing costs (which
were not incurred in the prior period), and (5) lesser increases in travel,
other and advertising costs. These increases were partially offset by reductions
in rent of $6,982 from $14,179 to $17,197, or 49.2%; in office expense of $6,691
from $20,837 to $14,146, or 32.1%; in utilities and telephone of $4,987 from
$8,248 to $13,235, or 37.7%, and in web maintenance costs of $4,730 from $4,800
to $70, and by nominal reductions in depreciation.
OTHER INCOME (EXPENSE)
The net other expense for the six months ended March 31, 2002 was
$30,196, as compared with $3,920 for the six months ended March 31, 2001,
substantially all of such $26,276 increase resulting from unsuccessful business
combination costs of $27,104, which costs did not exist in the earlier six
months period. It is contemplated that there will be no material unsuccessful
business combination expenses in the current quarter.
-11-
NET OPERATING LOSS CARRYFORWARDS FOR TAX PURPOSES
The Company has net operating loss carryforwards as at September 30,
2001 totaling $894,324 that may be offset against future taxable income until
2018, 2019, 2020 and 2021. In view of the losses sustained in the six months
ended March 31, 2002, the net operating loss carryforwards will have increased
as of that date. This amount, net of tax (assuming an estimated net federal and
state tax rate of 29.5%), together with $7,979 relating to intangible assets and
$11,470 relating to accrued wages resulting from differences in reporting for
income tax and financial statement purposes, or a total of $260,335 as of
September 30, 2001, are assets of the Company that may be used against future
income tax. For financial statement purposes, a valuation allowance of $259,426,
or 100%, has been taken against net deferred taxes as of September 30, 2001. A
larger equivalent valuation will be taken against the larger amount of such
assets as of March 31, 2002. A deferred tax asset can be used only if there is
future taxable income, as to which there can be no assurance in the case of the
Company. The deferred tax asset, therefore, is not reflected as an asset of any
value in HOM's Consolidated Balance Sheets as of September 30, 2001 or March 31,
2002, but it nevertheless is a valuable asset that can be utilized if the
Company becomes profitable.
ACCOUNTING AND REPORTING CHANGES
In June 2001, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standard ("SFAS") No. 141, "Business
Combinations." SFAS No. 141 addresses accounting and reporting for all business
combinations and defines the purchase method as the only acceptable method. The
statement is effective for all business combinations initiated after June 30,
2001. The Company plans to account for business combinations in accordance with
SFAS No. 141.
In June 2001, the FASB issued SFAS No. 142, "Goodwill and Other
Intangible Assets." SFAS No. 142 addresses how goodwill and other intangible
assets should be accounted for at their acquisition (except for those acquired
in a business combination) and after they have been initially recognized in the
financial statements. The statement is effective for all fiscal years beginning
after December 15, 2001. The Company believes the effect of SFAS No. 142 will
not have a material impact on the financial position of the Company.
In August 2001, the FASB issued SFAS No. 144, "Accounting for
Impairment or Disposal of Long-Lived Assets." SFAS No. 144 supercedes prior
pronouncements associated with impairment or disposal of long-lived assets and
establishes methodologies for assessing impairment of long-lived assets,
including assets to be disposed of by sale or other means. The statement is
effective for all fiscal years beginning after December 15, 2001. The Company
believes that the adoption of SFAS No. 144 will not have a material impact on
the Company's financial statements.
Other accounting standards that have been issued or proposed by the
FASB that do not require adoption until a future date are not expected to have a
material impact on the consolidated financial statements upon adoption.
OTHER
Certain items discussed in this quarterly report may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any future
results, performance, or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements speak only as of the
date of this quarterly report. The Company expressly disclaims any obligation or
undertaking to release publicly any updates of revisions to any forward-looking
statements contained herein to reflect any change in the Company's expectations
with regard thereto or any change in events, conditions or circumstances on
which any such statement is based.
-12-
PART II -- OTHER INFORMATION.
ITEM 1. LEGAL PROCEEDINGS
NA
ITEM 2. CHANGES IN SECURITIES
NA
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
NA
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NA
ITEM 5. OTHER INFORMATION
NA
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
None
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the quarter ended March 31,
2002.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
HOM CORPORATION
Date: May 20, 2002 By: /s/ Robert S. Wilson
----- ------------ ------------------------
Robert S. Wilson, Chairman and
Chief Executive Officer
-13-