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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange
Act of 1934 For the quarter ended June 30, 2004 or
[ ] Transition report pursuant to section 13 or 15(d) of the Securities
Exchange Act of 1934 For the transition period from ___________ to
____________
Commission file number 0-8773
CRESTED CORP.
- --------------------------------------------------------------------------------
(Exact Name of Company as Specified in its Charter)
Colorado 84-0608126
- ------------------------------------ ---------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
877 North 8th West, Riverton, WY 82501
- -------------------------------------------- ---------------------------------
(Address of principal executive offices) (Zip Code)
Company's telephone number, including area code: (307) 856-9271
---------------------------------
NONE
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(Former name, address and fiscal year, if changed since last report)
Indicate by check mark whether the Company (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 Company
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 has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
YES NO
----- -----
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at August 13, 2004
----- -------------------------------
Common stock, $0.001 par value 17,133,098 Shares
CRESTED CORP.
INDEX
Page No.
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements.
Condensed Balance Sheets (Unaudited)
June 30, 2004 and December 31, 2003 . . . . . . . . . . . . . . . 3
Condensed Statements of Operations (Unaudited)
Three Months and Six Months Ended June 30, 2004 and 2003 . . . . 4
Condensed Statements of Cash Flows (Unaudited)
Six Months Ended June 30, 2004 and 2003 . . . . . . . . . . . . . 5
Notes to Condensed Financial Statements (Unaudited) . . . . . . . 6-7
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of operations . . . . . . . . 8-10
ITEM 4. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . 10
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . 11
ITEM 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . . 11
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Certifications . . . . . . . . . . . . . . . . . . . . . . . . 13-16
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CRESTED CORP.
CONDENSED BALANCE SHEETS
(UNAUDITED)
ASSETS
June 30, December 31,
2004 2003
-------------- --------------
CURRENT ASSETS:
Cash and cash equivalents $ 3,300 $ 3,300
INVESTMENTS IN AFFILIATES 5,254,400 4,373,800
PROPERTIES AND EQUIPMENT 896,800 896,800
Less accumulated depreciation,
depletion and amortization (886,800) (886,800)
-------------- --------------
10,000 10,000
-------------- --------------
$ 5,267,700 $ 4,387,100
============== ==============
CRESTED CORP.
CONDENSED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND SHAREHOLDERS' DEFICIT
June 30, December 31,
2004 2003
-------------- --------------
CURRENT LIABILITIES:
Current debt to affiliate $ 11,210,500 $ 9,408,300
Asset retirement obligation 50,000 --
-------------- --------------
11,260,500 9,408,300
COMMITMENT TO FUND EQUITY INVESTEES 215,600 215,600
ASSET RETIREMENT OBLIGATION 1,074,500 1,053,300
COMMITMENTS AND CONTINGENCIES
FORFEITABLE COMMON STOCK, $.001 par value
15,000 shares issued, forfeitable until earned 10,100 10,100
SHAREHOLDERS' DEFICIT
Preferred stock, $.001 par value; 100,000 shares
authorized none issued or outstanding -- --
Common stock, $.001 par value; 20,000,000 shares
authorized; 17,118,098
shares issued and outstanding 17,200 17,200
Additional paid-in capital 11,804,800 11,804,800
Accumulated deficit (19,115,000) (18,122,200)
-------------- --------------
(7,293,000) (6,300,200)
-------------- --------------
$ 5,267,700 $ 4,387,100
============== ==============
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CRESTED CORP.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
-------- --------
2004 2003 2004 2003
------------ ------------ ------------ ------------
REVENUES: $ -- $ -- $ -- $ --
COSTS AND EXPENSES:
Accreation of asset retirement obligation 27,900 22,700 45,400 45,400
Change in estimate of asset retirement obliation 25,800 -- 25,800 --
General and administrative 92,900 52,500 132,900 89,000
------------ ------------ ------------ ------------
146,600 75,200 204,100 134,400
------------ ------------ ------------ ------------
LOSS BEFORE EQUITY LOSS, PROVISION
FOR INCOME TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE (146,600) (75,200) (204,100) (134,400)
EQUITY IN LOSS OF AFFILIATES (318,800) (1,026,800) (788,700) (1,400,300)
------------ ------------ ------------ ------------
LOSS BEFORE PROVISION FOR INCOME
TAXES AND CUMULATIVE
EFFECT OF ACCOUNTING CHANGE (465,400) (1,102,000) (992,800) (1,534,700)
PROVISION FOR INCOME TAXES -- -- -- --
------------ ------------ ------------ ------------
LOSS BEFORE CUMULATIVE EFFECT
OF ACCOUNING CHANGE (465,400) (1,102,000) (992,800) (1,534,700)
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE -- -- -- (293,800)
------------ ------------ ------------ ------------
NET LOSS $ (465,400) $(1,102,000) $ (992,800) $(1,828,500)
============ ============ ============ ============
PER SHARE DATA
NET LOSS PER SHARE, BASIC AND DILUTED
BEFORE CUMULATIVE EFFECT OF
ACCOUNTING CHANGE $ (0.03) $ (0.06) $ (0.06) $ (0.09)
FROM EFFECT OF ACCOUNTING CHANGE -- -- -- (0.02)
------------ ------------ ------------ ------------
BASIC AND DILUTED $ (0.03) $ (0.06) $ (0.06) $ (0.11)
============ ============ ============ ============
BASIC AND DILUTED WEIGHTED AVERAGE
SHARES OUTSTANDING 17,118,098 17,099,276 17,118,098 17,116,634
============ ============ ============ ============
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CRESTED CORP.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six months ended
June 30,
------------ ------------
2004 2003
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (992,800) $(1,828,500)
Adjustments to reconcile net loss to net cash
used in by operating activities:
Equity in loss of affiliates 788,700 1,400,300
Settlement of asset retirment obligations 25,800 --
Accretion of asset retirement obligation 45,400 45,400
Non cash cummulative effect
of accounting change -- 293,800
Noncash compensation -- 9,600
------------ ------------
NET CASH USED IN OPERATING ACTIVITIES (132,900) (79,400)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in affiliates (1,669,300) (693,100)
CASH FLOWS FROM FINANCING ACTIVITES:
Net activity on debt to affiliate 1,802,200 772,500
------------ ------------
NET INCREASE IN
CASH AND CASH EQUIVALENTS -- --
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 3,300 3,300
------------ ------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 3,300 $ 3,300
============ ============
SUPPLEMENTAL DISCLOSURES:
Interest paid $ -- $ --
============ ============
Income tax paid $ -- $ --
============ ============
NONCASH INVESTING AND FINANCING ACTIVITIES:
Issuance of stock to outside directors $ -- $ 9,600
============ ============
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CRESTED CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
1) The Condensed Balance Sheet as of June 30, 2004 and the Condensed
Statements of Operations for the three and six months ended June 30, 2004 and
2003, and Statements of Cash Flows for the six months ended June 30, 2004 and
2003 have been prepared by the Company without audit. The Condensed Balance
Sheet at December 31, 2003, has been derived from the audited financial
statements included in the Company's Annual Report on Form 10-K for the period
then ended. In the opinion of the Company, the accompanying financial statements
contain all adjustments (consisting of only normal recurring accruals except for
the cumulative effect of a change in accounting principle adopted in 2003)
necessary to fairly present the financial position of the Company as of June 30,
2004 and the results of operations for the three and six months ended June 30,
2004 and 2003 and cash flows for the six months ended June 30, 2004 and 2003.
2) Certain information and footnote disclosures normally included in
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been condensed or omitted. It is
suggested that these financial statements be read in conjunction with the
Company's December 31, 2003 Form 10-K. The results of operations for the periods
ended June 30, 2004 and 2003 are not necessarily indicative of the operating
results for the full year.
3) Debt at June 30, 2004 and December 31, 2003, consists of debt payable to
the Company's parent U.S. Energy Corp. ("USE") of $11,210,500 and $9,408,300,
respectively. This debt has been incurred as a result of USE funding the
Company's portion of joint operations and investments. The Company will either
have to retire this debt by the payment of cash, conveyance of property or the
issuance of additional shares of common stock to USE. USE has agreed not to call
the note prior to the settlement of lawsuit with Nukem, Inc. in which USE and
the Company have a $20 million judgment. The Nukem case is currently pending
before the 10th Circuit Court of Appeals. The Company and USE may enter into
some interim payment of a portion of the debt by the issuance of equity.
4) The Company presents basic and diluted earnings per share in accordance
with the provisions of Statement of Financial Accounting Standards No. 128,
"Earnings per Share." Basic and diluted earnings per common share is based on
the weighted average number of common shares outstanding during the period. The
Company had no outstanding stock options or warrants at December 31, 2003 and
June 30, 2004. The Company's management has adopted an Incentive Stock Option
Plan (ISOP). 2,000,000 shares of common stock are reserved for grant under the
ISOP. Approval of the ISOP will be sought from the shareholders at the September
2, 2004 Annual Meeting. No options have been granted under the ISOP as of June
30, 2004.
5) The Company has uranium properties that are in a shut down mode in
central Wyoming for which it is responsible for one half of the reclamation
expense. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates for these reclamation expenses based on certain
assumptions. These estimates and assumptions affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenues and
expenses during the reporting period.
The Company records the estimated fair value of the reclamation liability
on its shut down uranium properties as of the date that the liability is
incurred with a corresponding increase in the properties. Actual results could
differ from those estimates. The reclamation liabilities are reviewed each
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quarter to determine whether estimates for the total asset retirement obligation
is sufficient to complete the reclamation work required.
The Company deducts actual funds expended from the accrued liability during
the quarter in which it is expended. As a result of the Company having no
remaining net book value for the properties and has no economic benefits to be
received in future periods all changes in estimates are charged to operations in
the quarter in which they are recorded.
The following is a reconciliation of the total liability for asset retirement
obligations (unaudited)
Balance December 31, 2003 $1,053,300
Addition to Liability 25,800
Liability Settled --
Accretion Expense - 8% discount rate 45,400
-------------
Balance June 30, 2004 $1,124,500
==========
These reclamation activities are scheduled to be completed over the next
several years.
6) The Company has reviewed current outstanding statements from the
Financial Accounting Standards Board and does not believe that any of those
statements will have a material adverse affect on the financial statements of
the Company when adopted.
7) On July 30, 2003, the Company and USE received an Order and thereafter a
Judgment on August 1, 2003 from the U.S. District Court of Colorado wherein
Chief Judge Lewis T. Babcock entered an Order that Judgment be entered against
Nukem/CRIC ("Nukem") in favor of the Company and USE in the total amount of
$20,044,184. The Judgment was entered and defendant Nukem posted a supersedeas
bond in the full amount of the Judgment plus interest for one year, which was
approved by the Court. On October 3, 2003, Nukem, as Appellants, filed a Notice
of Appeal to the 10th Circuit Court of Appeals and thereafter on October 15,
2003, USE and Crested filed a Notice of Cross-Appeal to the 10th Circuit. The
10th Circuit Court of Appeals has scheduled oral arguments for September 27,
2004. In the event the Company and USE prevail, one half the award belongs to
the Company. A significant portion of the award may be used to retire
indebtedness to USE.
-7-
CRESTED CORP.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-----------------------------------------------------------------------
OF OPERATIONS.
- -------------
The following is Management's Discussion and Analysis of significant
factors, which have affected the Company's liquidity, capital resources and
results of operations during the periods included in the accompanying financial
statements. For a detailed explanation of the Company's Business Overview, it is
suggested that Management's Discussion and Analysis of Financial Condition and
Results of Operations for the three and six months ended June 30, 2004 be read
in conjunction with the Company's Form 10-K for the year ended December 31,
2003.
FORWARD LOOKING STATEMENTS
- --------------------------
This Report on Form 10-Q includes "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended ("the
Exchange Act"). All statements other than statements of historical fact included
in this Report, are forward-looking statements. In addition, whenever words like
"expect", "anticipate" or "believe" are used, we are making forward looking
statements. For all the above reasons, actual results may vary materially from
the forward-looking statements and there is no assurance that the assumptions
used are necessarily the most likely to occur.
OVERVIEW OF BUSINESS
- --------------------
The Company has interests through affiliates and its relationship with U.S.
Energy Corp. ("USE"), a majority shareholder of the Company, in a uranium mill
in Southern Utah; uranium properties in central Wyoming; a gold property in
California; coalbed methane properties in southwestern Wyoming and the Powder
River Basin of Wyoming and Montana and various real estate properties. The
uranium and gold properties are all in a shut down mode. All these businesses
are operated in conjunction with USE through a joint venture between the two
companies, the USECB Joint Venture ("USECC"). The Company accounts for USECC
using the equity method of accounting.
CRITICAL ACCOUNTING POLICIES
- ----------------------------
RECLAMATION LIABILITIES - The Company's policy is to accrue the liability
for future reclamation costs of its mineral properties under SFAS 143 based on
the estimated future reclamation costs as determined by internal and external
experts. The present value of the obligation is accreted each period as the date
of obligation settlement approaches. The Company deducts actual funds expended
from the accrued liability during the quarter in which it is expended. As a
result of the Company having no remaining net book value for the properties and
has no economic benefits to be received in future periods all changes in
estimates are charged to operations in the quarter in which they are recorded.
CONTRACTUAL OBLIGATIONS
- -----------------------
There have been no material changes outside the ordinary course of business
in the Company's contractual obligation from those discussed in the Company's
annual report on Form 10-K for the year ended December 31, 2003.
-8-
RECENT ACCOUNTING PRONOUNCEMENTS
- --------------------------------
The Company has reviewed all current outstanding statements from the
Financial Accounting Standards Board and does not believe that any of those
statements will have a material adverse effect on the financial statements of
the Company when adopted.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
During the six months ended June 30, 2004, the Company incurred $1,802,200
in additional debt to USE. This debt was incurred as a result of USE advancing
funds on behalf of the Company to fund its portion of cash obligations in the
various business ventures in which the two companies jointly participate. The
Company also relies on advances from USE to pay its ongoing administrative
costs. The Company will either have to retire this debt by the payment of cash,
conveyance of property or the issuance of additional shares of common stock to
USE. USE has agreed not to call the note prior to the settlement of lawsuit with
Nukem, Inc. in which USE and the Company have a $20 million judgment. The Nukem
case is currently pending before the 10th Circuit Court of Appeals. The Company
and USE may enter into some interim payment of a portion of the debt by the
issuance of equity.
The Company anticipates that the ultimate resolution of the litigation with
Nukem, Inc. will improve its liquidity (see "Capital Resources" below). The
Company also will participate equally in any benefits or liabilities, which may
come from the outcome of litigation that the Company and USE have pending with
Phelps Dodge Corporation.
Operations during the six months ended June 30, 2004 and 2003, consumed
$132,900 and $79,400, respectively. The uses of cash in operations was the
Company's portion of audit fees, professional services in connection with audit
and litigation fees, the settlement of asset retirement obligations and other
administrative expenditures. Cash consumed in investing activities of $1,699,300
at June 30, 2004 and $693,100 at June 30, 2003 was used to increase the
Company's investment in USECC and RMG. Financing activities during the six
months ended June 30, 2004 and 2003, consisted of borrowings from USE in the
amounts of $1,802,200 and $772,500, respectively.
CAPITAL RESOURCES
- -----------------
The Company and USE have a $750,000 line of credit with a commercial bank.
The line of credit is secured by various real estate holdings and equipment
belonging to the Company and USE. At June 30, 2004, the total amount of the line
of credit was available to the Company and USE and has been renewed to December
2004. The line of credit is used for short term working capital needs associated
with operations.
Funding for Rocky Mountain Gas ("RMG") drilling commitments are provided by
cash that RMG has on hand and third party working interest owners. In addition,
the Company, USE and RMG are seeking additional financing in the form of either
debt or equity. RMG also has a $25,000,000 Credit Agreement with an investment
banking firm for the purchase of coalbed methane properties. During the first
quarter of 2004, RMG used $3,750,000 of this credit agreement to purchase
coalbed methane producing properties in the Powder River Basin of Wyoming. All
net proceeds from the property's projected production are swept to retire the
$3,750,000 obligation.
The Company's cash resources at June 30, 2004 will not be sufficient to
sustain operations during the balance of 2004. The Company will continue to rely
upon funding from USE to meet its operating,
-9-
administration and capital requirements. It is anticipated that during 2004
operations will not generate significant capital resources.
On August 1, 2003, the Company and USE received a judgment from the United
States District of Colorado in the amount of $20,044,184 against Nukem, Inc. The
Judgment was entered and defendant Nukem posted a supersedeas bond in the full
amount of the Judgment plus interest for one year, which was approved by the
Court. Nukem filed a Notice of Appeal to the 10th Circuit Court of Appeals on
October 3, 2003. On October 15, 2003 the Company and USE filed a Notice of
Cross-Appeal to the 10th Circuit Court of Appeals. Oral Arguments for the case
have been set for September 27, 2004. In the event that the Company and USE
prevail, one half of the award belongs to the Company. A significant portion of
the award may be used to retire indebtedness to USE.
CAPITAL REQUIREMENTS
- --------------------
The Company and USE jointly fund the holding costs of the Sheep Mountain
uranium properties (Wyoming); the Plateau uranium property and mill (Utah);
costs associated with their joint real estate, and the development of RMG's
coalbed methane gas properties.
RMG has drilling commitments during 2004 in the amount of $1,100,000.
Although no assurance can be given that the drilling will result in additional
production. Management of RMG has made every effort to maximize the information
that can be obtained from the commitment of these funds.
The Company owes USE $11,210,500 as a result of USE funding operating and
investment expenses. The Company does not have the resources to repay this debt
and must continue to negotiate terms with USE or find some other means of
retiring the debt. To date, USE has not called the debt and has agreed not to
call the debt. Should the Company and USE prevail in the Nukem litigation, a
significant portion of the Company's portion of the award may be used to retire
a portion or all of this indebtedness.
It is anticipated that approximately $100,000 will be spent on reclamation
of the Company's and USE's interests in uranium properties in Wyoming during the
last six months of 2004. The estimated reclamation costs on these Wyoming
uranium properties are covered by a reclamation bond, which is secured by a
pledge of certain real estate assets. As the reclamation liability is reviewed
regularly by government regulatory agencies, the actual final amount of the
liability could change.
RESULTS OF OPERATIONS
- ---------------------
The Company had no revenues during the three and six months ended June 30,
2004 and 2003.
Costs and expenses for the six months ended June 30, 2004 increased to
$204,100 compared to costs of $134,400 recognized during the six months ended
June 30, 2003. This increase came as a result of increased fees associated with
professional services and a charge to earnings due to excess monies expended on
reclamation from those planned in the amount of $25,800.
The Company recorded an equity loss from USECC of $788,700 during the six
months ended June 30, 2004 as compared to equity losses of $756,000 from USECC
and $644,300 from RMG or a total of $1,400,300 during the six months ended June
30, 2003. The primary reason for the decrease in the equity losses was as a
result of the discontinuation of the recognition of RMG's equity losses due to
no value remaining on the books of the Company for its investment in RMG.
-10-
The Company recorded $293,800 as the cumulative effect of accounting
changes as a result of the adoption of SFAS 143 during the six months ended June
30, 2003. No similar transaction was recognized during the six months ended June
30, 2004.
The Company recorded a net loss of $992,800 or $0.06 per share during the
six months ended June 30, 2004, as compared to a net loss of $1,828,500 or $0.11
per share for the six months ended June 30, 2003.
ITEM 4. CONTROLS AND PROCEDURES
-----------------------
Our management, under the supervision and with the participation of our
Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), has
evaluated the effectiveness of our disclosure controls and procedures as defined
in Securities and Exchange Commission ("SEC") Rule 13a-15(e) and 15d-15(e) as of
the end of the period covered by this report. Based upon that evaluation,
management has concluded that our disclosure controls and procedures are
effective to ensure that information we are required to disclose in reports that
we file or submit under the Securities Exchange Act is communicated to
management, including the CEO and CFO, as appropriate to allow timely decisions
regarding required disclosure and is recorded, processed, summarized and
reported within the time periods specified in the SEC's rules and forms.
During the six months covered by this report, there have been no
significant changes in internal control over financial reporting that have
materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.
-11-
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
------------------
a. On July 30, 2003, U.S. Energy Corp. ("USE") and Crested Corp.
("Crested") received an Order and thereafter a Judgment on August 1, 2003 from
the U.S. District Court of Colorado wherein Chief Judge Lewis T. Babcock entered
an Order that Judgment be entered against Nukem/CRIC ("Nukem") in favor of USE
and Crested in the total amount of $20,044,184. The Judgment was entered and
defendant Nukem posted a supersedeas bond in the full amount of the Judgment
plus interest for one year, which was approved by the Court. On October 3, 2003,
Nukem, as Appellants, filed a Notice of Appeal to the 10th Circuit Court of
Appeals and thereafter on October 15, 2003, USE and Crested filed a Notice of
Cross-Appeal to the 10th Circuit. Oral arguments are scheduled before a panel of
the 10th Circuit for September 27, 2004.
b. The U. S. District Court of Colorado entered various orders in the case
of Phelps Dodge Corporation et. al. vs. Crested Corp. and U. S. Energy Corp. The
orders addressed three motions for partial summary judgment by Phelps Dodge as
follows: 1) granted Phelps Dodge's request for partial summary judgment that the
1999 merger of Cyprus Amax and CAV Corp. was not a sale that triggered an
obligation of PD to pay $3.75 million to USECC.; 2) held in favor of USECC that
there are genuine issues of fact that require a trial on the issue whether USECC
must accept transfer of the Mount Emmons Water Treatment Plant along with the
mining properties, and 3) granted Phelps Dodge's request for partial summary
judgment that certain USECC counterclaims for breach of contract, unjust
enrichment, negligence, and a accounting by dismissed.
No other material developments in the other pending Legal Proceedings have
occurred since they were last reported by the Company in Item 1 of its Form 10-K
for the year ended December 31, 2003.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS None
-----------------------------------------
ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not applicable.
-------------------------------
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not applicable.
---------------------------------------------------
ITEM 5. OTHER INFORMATION Not applicable.
-----------------
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) Exhibits.
31.1 Certification of Chief Executive Officer Pursuant to Rule
13a-15(e) / Rule 15d-15(e)
31.2 Certification of Chief Financial Officer Pursuant to Rule
13a-14(a) / Rule 15(e) / 15d-15(e)
32.1 Certification of Chief Executive Officer Pursuant to 18
U.S.C. Section 1350, as adopted by Section 906 of the
Sarbanes-Oxley Act of 2002
32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C.
Section 1350, as adopted by Section 906 of the Sarbanes-
Oxley Act of 2002
(b) REPORTS ON FORM 8-K. The Company filed no reports on Form 8-K for
the quarter ended June 30, 2004.
-12-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned, there unto duly authorized.
CRESTED CORP.
(Company)
Date: August 13, 2004 By: /s/John L. Larsen
-------------------------------
JOHN L. LARSEN,
CHAIRMAN and CEO
Date: August 13, 2004 By: /s/Robert Scott Lorimer
-------------------------------
ROBERT SCOTT LORIMER
Principal Financial Officer and
Chief Accounting Officer
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