10-Q 1 c64180e10-q.txt QUARTERLY REPORT 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Period Ended June 30, 2001 ------------- 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 000-30967 --------- BERTHEL GROWTH TRUST II -------------------------- (Exact name of Registrant as specified in its charter) DELAWARE 42-6603601 -------- --------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 701 Tama Street, Marion, Iowa 52302 ---------------------------------------- (Address of principal executive offices) (Zip Code) (319) 447-5700 -------------- Registrant's telephone number, including area code 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 --- --- Applicable Only to Corporate Issuers Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date. Shares of Beneficial Interest - 1,000 shares as of July 13, 2001 1 2 BERTHEL GROWTH TRUST II INDEX PAGE ---- PART I. FINANCIAL INFORMATION Item 1. Financial Statements (unaudited) Statements of Assets and Liabilities - June 30, 2001 and December 31, 2000 3 Statement of Operations - three and six months ended June 30, 2001 4 Statements of Changes in Net Assets (Liabilities) - six months ended June 30, 2001 and period from June 15, 2000 (date of inception) to June 30, 2000 5 Statements of Cash Flows - six months ended June 30, 2001 and period from June 15, 2000 (date of inception) to June 30, 2000 6 Notes to Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Item 3. Quantitative and Qualitative Disclosures About Market Risk 8 PART II. OTHER INFORMATION Item 1. Legal Proceedings 8 SIGNATURES 9 2 3 BERTHEL GROWTH TRUST II STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

See notes to financial statements. 3 4 BERTHEL GROWTH TRUST II STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ended Six Months Ended June 30, 2001 June 30, 2001 ------------------ ---------------- EXPENSES: Accounting $ 7,236 $12,672 Other expenses 5,159 5,159 ------- ------- Total expenses 12,395 17,831 ------- ------- Net decrease in net assets $12,395 $17,831 ======= ======= Per beneficial share amounts: Net decrease in net assets $ 12.40 $ 17.83 ======= ======= Weighted average shares 1,000 1,000 ======= ======= See notes to financial statements. 4 5 BERTHEL GROWTH TRUST II STATEMENTS OF CHANGES IN NET ASSETS (LIABILITIES) (UNAUDITED)

See notes to financial statements. 5 6 BERTHEL GROWTH TRUST II STATEMENTS OF CASH FLOWS (UNAUDITED)

See notes to financial statements. 6 7 BERTHEL GROWTH TRUST II NOTES TO FINANCIAL STATEMENTS (UNAUDITED) NOTE A - BASIS OF PRESENTATION The accompanying unaudited financial statements 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-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with the Trust's Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 2000. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair representation have been included. Operating results for the three months ended June 30, 2001 are not necessarily indicative of the results that may be expected for the year ended December 31, 2001. The preparation of the Trust's financial statements in conformity with accounting principles generally accepted in the United States of America necessarily requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 7 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS As the Trust is only in its offering phase, a discussion of operating results, liquidity, and capital resources would not be meaningful. The Trust is offering shares at $10 per share, with a minimum offering of $6,000,000 (600,000 shares). On March 20, 2001, the Trust filed for an automatic extension of 90 days for the offering of shares. The Trust filed for its second of two automatic extensions of 90 days on June 13, 2001, extending the offering until September 16, 2001, at which time the offering will terminate unless action is taken to amend the terms of the offering. Until the minimum offering has been achieved, funds paid by subscribers are deposited in an interest-bearing bank escrow account with Firstar Bank, N.A. If the Trust is not successful in reaching the minimum offering, all subscribers' funds will be promptly returned in full, along with each subscriber's share of any interest earned on their investment, without any deduction for any expenses. Through July 13, 2001, a total of $764,500 has been raised. No assurance can be given that the Trust will be successful in raising the minimum offering amount. If the Trust has not received subscriptions for at least 600,000 shares ($6,000,000) when the offering terminates, the Trust will promptly refund any subscription amounts received with interest, if any, actually earned thereon. Offering costs incurred by the Trust Advisor for the period June 15, 2000 (date of inception) to June 30, 2001 totalled $380,157. These costs have been reported as an asset and will be deducted upon the receipt of proceeds from the subsequent sale of share by the Trust beyond the initial $10,000 capitalization. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Not applicable PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS None. 8 9 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. BERTHEL GROWTH TRUST II ----------------------- (Registrant) Date: August 3, 2001 /s/ Ronald O. Brendengen -------------- ------------------------------------- Ronald O. Brendengen, Chief Financial Officer, Treasurer Date: August 3, 2001 /s/ Daniel P. Wegmann -------------- ------------------------------------- Daniel P. Wegmann, Controller Date: August 3, 2001 /s/ Henry Royer -------------- ------------------------------------- Henry Royer, President 9

BERTHEL GROWTH TRUST II 10-Q