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: September 30, 2003
___ TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT
For the transition period from _______ to _______.
Commission file number: 0-19154.
AMERICAN ASSET MANAGEMENT CORPORATION
(Exact name of small business issuer as specified in its charter)
NEW JERSEY 22-2902677
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1280 Route 46 West, Parsippany, New Jersey 07054
(Address of principal executive offices)
Issuer's telephone number: (973) 299-8713
_____________________________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 day. Yes _X_ No___
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date: As of
November 18, 2003 there were 1,316,989 shares of the issuer's no par
value common stock issued and 1,316,989 shares outstanding.
Transitional Small Business Disclosure Format (check one): YES___ NO_X_
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN ASSET MANAGEMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
_______________________________________________________________________________
Sept.30, December 31,
___2003___ ____2002____
______________ASSETS________________
Current Assets
Cash and cash equivalents $ 403,119 $ 376,425
Mortgage loans held for sale 2,151,409 4,742,984
Prepaid expenses & other current assets 59,738 61,798
Total Current Assets 2,614,266 5,181,207
Restricted Cash 39,000 -
Land Development Costs - 163,590
Property & Equipment, net of accumulated
depreciation & amortization 8,552 2,178
Total Assets 2,661,818 5,346,975
__LIABILITIES AND STOCKHOLDERS' EQUITY__
Current Liabilities:
Warehouse finance facility 2,098,364 4,651,301
Current maturities of notes payable 25,000 152,945
Deferred income 10,937 11,637
Accounts payable, accrued expenses
and other current liabilities 167,901 179,420
Total Current Liabilities 2,302,202 4,995,303
Notes Payable Net of Current Maturities 10,565 18,064
__Commitments and Contingencies__
Stockholders' Equity:
Series B Cumulative Convertible Participating
Preferred stock, no par value; 300,000 shares
authorized, 25,000 shares issued and outstanding
(liquidation preference $25,000) 25,000 25,000
Series A Cumulative Convertible Participating
Preferred Stock, no par value; 600,000 shares
authorized, 210,000 issued and outstanding
(liquidation preference $210,000) 205,000 205,000
Common stock, no par value; 10,000,000
shares authorized, 1,316,989 issued
and 1,295,970 outstanding 3,852,825 3,852,825
Additional paid in capital 231,207 231,207
Accumulated deficit (3,893,836) (3,909,279)
Subtotal 420,196 404,753
Treasury Stock, 21,019 shares at cost (71,145) (71,145)
Total Stockholders' Equity 349,051 333,608
Total Liabilities and Stockholders' Equity 2,661,818 5,346,975
See Accompanying Notes to Consolidated Financial Statements.
-2-
AMERICAN ASSET MANAGEMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
_______________________________________________________________________________
For the Three Months For the Nine months
___Ended Sept. 30 Ended Sept. 30,
__2003__ __2002__ __2003__ __2002__
Revenues:
Mortgage origination fees $ 326,651 $ 385,595 $1,526,678 $ 818,106
Land Sales - - 175,000 -
Application and commitment fees 9,372 4,918 45,292 18,788
Mortgage interest income 72,250 97,399 362,513 294,834
Total revenues 408,273 487,912 2,109,483 1,131,728
Expenses:
Employee compensation & benefits 86,697 79,261 267,880 267,463
Commissions 197,287 249,075 945,598 553,719
Other expenses 115,242 101,983 421,347 328,340
Land development costs - - 186,765 -
Interest expense 55,073 48,631 248,030 123,803
Total expenses 454,299 478,950 2,069,620 1,273,325
Income/(Loss) from operations (46,026) 8,962 39,863 (141,597)
Other income/(expense) (7,523) 626 (6,795) 2,539
Unrealized loss on financial
instruments (8,000) - (8,000) -
Other income 477 626 1,205 2,539
Total other income(expense) (7,523) 626 (6,795) 2,539
Income/(Loss) before benefit from
income taxes (53,549) 9,588 33,068 (139,058)
Benefit from income taxes (7,460) - - -
Net Income/(Loss) (46,089) 9,588 33,068 (139,058)
Dividends on Preferred Stock 5,875 5,250 17,625 15,285
Earnings/(Loss) Attributable to
Common Stockholders (51,964) 4,338 15,443 (154,343)
Earnings/(Loss) Per Common Share
Basic $(0.04) $ 0.00 $ 0.01 $(0.12)
Diluted $(0.04) $ 0.00 $ 0.01 $(0.12)
Weighted Average Number of Shares
Of Common Stock outstanding:
Basic 1,295,970 1,295,970 1,295,970 1,295,970
Diluted 1,295,970 1,295,970 1,295,970 1,295,970
See Acompanying Notes to Consolidated Financial Statements.
-3-
AMERICAN ASSET MANAGEMENT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
______________________________________________________________________________
For the Nine Months Ended
_Sept. 30, 2003_ _Sept. 30, 2002_
Cash flows from operating activities:
Net Income/(loss) $ 33,068 $ (139,058)
Adjustments to reconcile net income/(loss) to
net cash provided by/(used in) operating activities:
Depreciation and amortization 2,012 2,585
Unrealized loss on financial
instruments 8,000 -
Changes in assets & liabilities:
Mortgage loans held for sale 2,591,575 1,018,034
Prepaid expenses &
other current assets 7,060 42,758
Land development costs 163,590 (2,589)
Warehouse finance facility (2,552,937) (996,627)
Deferred income (700) (6,973)
Accounts payable, accrued expenses
and other current liabilities (17,394) 6,461
Net cash provided by/(used in)operating activities 234,274 (75409)
Cash flows from investing activities:
Purchases of fixed assets (8,386) (540)
Purchase of securities (13,000) -
Increase in restricted cash (39,000) -
Net cash used in investing activities (60,386) (540)
Cash flows from financing activities:
Payments of notes payable (135,444) (14,854)
Proceeds from issuance of Preferred Stock - 55,000
Payment of Preferred Stock Dividends (11,750) (15,285)
Net cash (used in)/provided by
financing activities (147,194) 24,861
Net increase/(decrease) in cash and cash equivalents 26,694 (51,088)
Cash and cash equivalents at beginning of period 376,425 298,319
Cash and cash equivalents at end of period $ 403,119 $ 247,231
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest $ 255,334 $ 125,613
Income taxes - -
Supplemental schedule of non-cash investing and financing activities:
Accrued dividend charged to accumulated deficit $ 5,875 $ -
See Accompanying Notes to Consolidated Financial Statements.
-4-
AMERICAN ASSET MANAGEMENT CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
_____________________________________________________________________________
1. BACKGROUND AND BASIS OF FINANCIAL STATEMENT PRESENTATION
The accompanying consolidated financial statements of American Asset
Management Corporation and subsidiaries (the "Company") are unaudited. In the
opinion of management, all adjustments and intercompany eliminations necessary
for a fair presentation of the results of operations have been made and were
of a normal recurring nature. These interim consolidated financial statements
should be read in conjunction with the consolidated financial statements and
related notes thereto contained in the Companys 2002 Annual Report on Form
10-KSB. Reference is made to the Companys annual financial statements for
the year ended December 31, 2002, for a description of the accounting
policies which have been continued without change. Also refer to the
footnotes within those annual statements for additional details of the
Company's financial condition, results of operations and changes in cash
flows. The details in those notes have not changed except as a result of
normal transactions in the interim. The results of the three and nine months
ended September 30, 2003 are not necessarily indicative of the results of the
full year.
2. EARNINGS/(LOSS) PER SHARE
Basic EPS and Diluted EPS for the three and nine month periods ended
September 30, 2003 and 2002 have been computed by dividing the net income(loss)
attributable to common stockholders for each respective period by the weighted
average shares outstanding during that period. All outstanding 10% Series A
and B, Cumulative Participating Preferred Stock and options have been excluded
from the computation of Diluted EPS as they are antidilutive.
3. SEGMENT REPORTING
The Company has two primary operating segments including originating and
selling loans secured primarily by first mortgages on one-to-four family
residential properties (CFC) and real estate development (AADC). Segment
selection was based upon the nature of operations as determined by management
and all of the operations of these segments are conducted in New Jersey.
Certain selected financial information of these segments is described below:
CFC AADC Parent Total
Sept. 30, 2003
Revenues $1,934,483 175,000 - $2,109,483
Segment Profit (Loss) 144,597 (23,080) (88,449) 33,068
Net identifiable assets $2,649,606 $ 11,628 $ 584 $2,661,818
CFC AADC Parent Total
Sept. 30, 2002
Revenues $1,131,728 - - $1,131,728
Segment Profit (Loss) (18,567) (368) (120,123) (139,058)
Net identifiable assets $2,666,582 $ 172,239 $ 3,149 $2,841,970
4. CASH EQUIVALENTS
Cash and cash equivalents include cash on hand and in the bank as well as
short-term securities held for the primary purpose of general liquidity. Such
securities normally mature within three months from the date of acquisition.
5. RESTRICTED CASH
In conjunction with the sale of its remaining land lot, the Company was
required to deposit $39,000 of the proceeds into a restricted escrow account
to secure an outstanding letter of credit for the same amount. The letter
of credit expires in December 2003.
6. DERIVATIVE INSTRUMENTS
All derivative instruments are reported on the balance sheet at fair
value, and changes in derivatives fair values are recognized currently in
earnings unless specific hedge criteria are met.
7. WAREHOUSE LINE OF CREDIT
In April 2003, the Company increased its existing warehouse line of
credit to $10,000,000. Funds from this line of credit are used for short-term
financing of mortgage loans held for sale, and are secured by residential
mortgage loans and a personal guarantee of the Companys President.
8. INCOME TAXES
Income taxes for the three and nine months ended September 30, 2003 and
2002 were different than the expected tax determined by applying the statutory
federal income tax rate to income (loss) before provision for (benefit from)
income taxes. The reasons for this difference were primarily due to benefits
from the utilization of federal net operating loss carryforwards.
9. SUBSEQUENT EVENT
In October 2003, the Companys treasury stock was sold for $11,936
through the process of the State of New York remitting the proceeds of
escheated shares back to the Company. The proceeds were applied directly
to the note payable.
Item 2.
AMERICAN ASSET MANAGEMENT CORPORATION AND SUBSIDIARIES
MANAGEMENTS DISCUSSION AND ANALYSIS
OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS
____________________________________________________________________________
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: The statements which are not historical facts contained in this report
on Form 10-QSB are forward looking statements that involve a number of 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 of achievements expressed or implied by
such forward looking statements. Such factors, include, but are not limited
to, those relating to competition, the ability to successfully market new
mortgage products and services, the economic conditions in the markets served
by the Company, the ability to hire and retain key personnel and other risks
detailed in the Companys other filings with the Securities and Exchange
Commission. The words believe, anticipate, expect, intend and similar
expressions identify forward-looking statements. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak only as
of the date the statements were made.
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO THE THREE MONTHS ENDED
SEPTEMBER 30, 2002.
Total revenues for the three months ended September 30, 2003 were $408,273
compared to $487,912 for the three months ended September 30, 2002, a decrease
of $79,639 or approximately 16.3%. The decrease was primarily attributable to a
decrease in mortgage origination fees of $58,934 or approximately 15.3%, to
$326,651 from $385,585 during the comparable 2002 period. Mortgage interest
income decreased by $25,149 or approximately 25.8% to $72,250 from $97,399.
The reduction in fees and income were partially offset by an increase in
application and commitment fee income of $4,454 or approximately 90.6% to
$9,372 from $4,918 during the comparable 2002 period. The decrease in interest
income is attributable to decreases in mortgage interest received on loans that
were owned and being warehoused by the Company due to lower rates of interest
prevailing during the period. This was partially offset to a lesser extent by
an increase in the number of mortgage applications and commitment fees received
during the period. The increase in applications and commitment fees was a
direct result of the Company receiving a greater amount of applications and
borrowers accepting a greater amount of commitments from the Company during the
period. The Company raised application and commitment fees charged to borrowers
during the period while it eliminated certain other fees it was charging to
borrowers, such as overnight mail expenses and attorney review fees. The net
effect of increased applications and accepted commitments provided the Company
with increased application and commitment fee income while it reduced the
overall costs associated with each loan which the Company believes made it more
competitive in the marketplace. In addition, the consolidation and
simplification of fees charged to borrowers has allowed the Company to reduce
the risks associated with the potential for being out of compliance with
required disclosures such as the Good Faith Disclosure and other similar
disclosures.
The Company continued to see a large percentage of its business in mortgage
refinance applications due to lower interest rates as compared to interest rates
prevalent in prior years. The Company also continued focusing its efforts on
expanding its wholesale business. During the three month period ended
September 30, 2003, the Company received the majority of its wholesale mortgage
applications from one of its wholesale mortgage customers. The Company has a
goal of selling pools of mortgages, also referred to as bulk sales, to
institutional and other investors rather than one at a time sales as it
presently conducts its business. The Company believes it can negotiate greater
revenues per mortgage sold by this pooling method. The Company also believes
there are numerous entities that it may make bulk sales to. Further, the
Company believes, though there can be no assurance, that through pooling it can
increase its wholesale customers and business volume as a result of being able
to offer better competitive rates and higher compensation to its wholesale
customers while still increasing its net revenues per loan on a percentage
basis.
During the three months ended September 30, 2003, the Company received 56
mortgage loan applications for processing from borrowers aggregating
approximately $11,812,741 as compared to 111 mortgage loan applications in an
aggregate of approximately $25,612,152 in the comparable 2002 period. Of the
56 loans originated during the three months ended September 30, 2003, 24 loans
or approximately 42.9% of the total were refinance applications and 32 loans or
approximately 57.1% of the total were purchase applications. Included in the
purchase mortgage amounts are 5 second mortgages which aggregate approximately
$180,020 as compared to 9 second mortgage applications received during the
comparable 2002 period which aggregated approximately $561,400 and 5 FHA insured
mortgage loans which aggregate approximately $680,406 as compared to 3 FHA
insured loans received during the comparable 2002 period.
During the three months ended September 30, 2003, the Company closed 51
residential mortgage loans in the principal amount of $10,068,105 compared to
60 loans closed in the principal amount of $14,343,446 in the three months
ended September 30, 2002. At September 30, 2003, the Company had approximately
42 residential mortgage loan applications in process in the principal amount of
$10,008,550 compared to 83 residential mortgage loan applications in process in
the principal amount of $17,890,735, at September 30, 2002. Of the 42
applications, 22, or 52.4% were purchase mortgages and 20, or approximately
47.6% were refinance applications. The Company has experienced a significant
eduction in refinance applications during the period ended September 30, 2003
as a result of a sharp increase in mortgage interest rates which occurred during
June 2003. While interest rates are still low, it seems unlikely that interest
rates will again see the lows set in early June 2003. Purchase mortgage demand
remains strong although any further increase in interest rates will likely
lessen the demand for purchase mortgages. Any further increase in interest
rates will especially reduce the amount of refinance mortgages in the future.
Total expenses for the three months ended September 30, 2003 were $454,299
a decrease of $24,651 or approximately 5.1% from $478,950 in the comparable 2002
period primarily due to a reduction of $51,788, or approximately 20.8%, in
commissions paid from $249,075 in the comparable period in 2002 to $197,287 in
the three months ended September 30, 2003. This was offset by an increase in
employee compensation resulting from an increase in personnel and the rate of
compensation paid and benefits of approximately 9.4% to $86,697 from $79,261 in
the comparable 2002 period, an increase of $13,259 in other expenses or
approximately 13.0% to $115,242 from $101,983 in the comparable 2002 period and
an increase of $6,442 in interest expense or approximately 13.2% to $55,073 from
$48,631 in the comparable 2002 period due to longer borrowing time on mortgage
warehouse loans owed (This was generally because the institutions which the
Company sells its mortgage loans to took longer than normal to review and
purchase loans from the Company as they were back-logged with an unprecedented
amount of refinance mortgage loans). The Company believes that the institutions
it sells its loans to were understaffed to handle the volume. As a percentage
of revenues, expenses were approximately 111.3% in the current period compared
to approximately 98.2% in the comparable 2002 period.
As a result of the foregoing, Preferred Stock dividends of $5,875 and a
benefit from income taxes of $7,460, the Companys loss attributable to common
stockholders for the three months ended September 30, 2003 was $51,964 or $0.04
per share compared to earnings attributable to common stockholders of $4,338 or
$0.00 per common share for the comparable 2002 period.
NINE MONTHS ENDED SEPTEMBER 30, 2003 COMPARED TO THE NINE MONTHS ENDED
SEPTEMBER 30, 2002.
Total revenues for the nine months ended September 30, 2003 were $2,109,483
compared to $1,131,728 for the comparable 2002 period. The increase in revenue
was primarily attributable to an increase in mortgage origination fees to
$1,526,678 during the 2003 period from $818,106 in the comparable 2002 period,
an increase of $67,679 or approximately 23.0% in mortgage interest income to
$362,513 from $294,834 in the comparable 2002 period, an increase in mortgage
application and commitment fees of $26,504 to $45,292 from $18,788 in the
comparable 2002 period, and an increase of $175,000 in revenues in land sales
during the 2003 period compared to no revenues from land sales during the
comparable 2002 period. The effect of lower interest rates during the nine
month 2003 period had a positive effect on the Companys business. However,
there can be no assurance that interest rates will decline from current levels
or that they will not rise from present levels. During the nine months ended
September 30, 2003, the Company closed 292 residential mortgage loans in the
principal amount of $61,477,127 compared to 169 loans closed in the principal
amount of $35,304,756 in the nine months ended September 30, 2002.
Total expenses for the nine months ended September 30, 2003 were $2,069,620
an increase of $796,295 or approximately 62.5% from $1,273,325 in the comparable
2002 period due to land and development costs during the 2003 period of $186,765
as compared to an absence of land development costs during the same period in
2002, an increase in interest expense of $124,227 to $248,030 from $123,803, or
approximately 100.3% during the same period in 2002 due to a longer warehouse
borrowing length of time resulting in a high amount of interest charged on a
larger amount of borrowed money due to the additional amount of closings during
the period, an almost identical expense in employee compensation and benefits to
$267,880 from $267,463 during the same period of 2002, an increase in other
expenses of $93,007 to $421,347 from $328,340 in the same period of 2002, and an
increase in commissions of $391,879 or approximately 70.8% to $945,598 from
$553,719 during the same period of 2002 due to a higher amount of mortgage
closing volume during the period. As a percentage of revenues, expenses were
approximately 98.1% in the current period compared to approximately 112.5% in
the comparable 2002 period.
As a result of the foregoing and the payment of Preferred Stock dividends
of $17,625, the Companys earnings attributable to common stockholders for the
nine months ended September 30, 2003 was $15,443, or $0.01 per common share,
compared to a loss attributable to common stockholders of $154,343 or $0.12 per
common share for the comparable 2002 period.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2003, the Company had cash and cash equivalents of
$403,119 compared to $376,425 at December 31, 2002, an increase of $26,694 or
approximately 7.1%. This increase is attributable to net cash provided by its
operating activities of $234,274, that was primarily offset by net cash used in
financing activities of $147,194 and net cash used in investing activities of
$60,386.
The Company utilizes one $10,000,000 warehouse line of credit for its daily
mortgage loan funding operations. Interest on this line of credit is charged at
the rate of Wall Street Journal Prime Rate plus one and one half percent and
expires on March 31, 2004. Whenever possible the Company employs its available
cash to fund mortgage loans which generate mortgage interest income, as well as
save interest costs and other fees associated with utilizing its warehouse
credit line. The warehouse line enables the Company to borrow funds secured by
residential mortgage loans which will be temporarily accumulated or warehoused
and then sold. At September 30, 2003, the Company had borrowed $2,098,364 from
its warehouse line of credit representing approximately $2,151,409 in closed
loans ready for sale.
In October 2003, the Company was notified by one of its primary
institutional mortgage bankers which it sells loans to that the institution
will no longer purchase loans on properties in New Jersey as a direct result of
a new New Jersey State law which will go into effect on November 27, 2003. The
law, called, The New Jersey Home Ownership Security Act of 2002, will cover most
of the residential loans originated in the state and deal primarily with lender
fees and lender liability including secondary market lenders. The Company, as
well as other mortgage banking companies who do business in New Jersey, has been
notified by numerous institutional purchasers of mortgage loans originated in
New Jersey, that the language contained in the new law is unacceptable to them
in its present form. There can be no assurance that the law will be modified
from its present language and if not changed, will have a serious impact on the
Companys ability to sell loans in the secondary market. As a result of the
anticipated adverse impact on its business resulting from the new law, the
Company is currently re-evaluating its future operational plans.
The Company estimates that it will require additional capital in order to
successfully implement its future operational plans beyond January 2004. As a
result, the Company is seeking additional capital through, among other means, an
infusion of noncollateralized loans and the sale of additional equity in the
Company. However, there can be no assurance that the Company will be able to
obtain additional capital on terms acceptable to the Company, if at all.
Item 3. Controls and Procedures.
An evaluation was carried out under the supervision and with the
participation of the Companys management, including the Chief Executive Officer
(CEO) who also serves as the Chief Financial Officer (CFO), of the effectiveness
of the Companys disclosure controls and procedures as of the end of the quarter
ended September 30, 2003. Based on that evaluation, the CEO/CFO has concluded
that the Companys disclosure controls and procedures are effective to provide
reasonable assurance that all information required to be disclosed by the
Company in reports that it files or submits under the Securities and Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in Securities and Exchange Commission rules and forms. In
addition, during the quarter ended September 30, 2003 there were no
changes in the Companys internal controls over financial reporting that have
materially affected or are reasonable likely to materially affect its internal
controls over financial reporting.
PART II OTHER INFORMATION
Item 1. Legal Proceedings
Reference is made to Part 1 - Item 3 contained in the Company's 10-KSB for
the year ended December 31, 2002 for further information relating to the pending
action commenced against, among others, the Company and its President described
below.
The action, which commenced in March 1999 in the Chancery Division of the
Superior Court of New Jersey, Union County, the plaintiffs allege that the
Company aided and abetted a former director in converting the assets of two New
Jersey limited liability companies (the "LLC's") by accepting loans and
Payments from the LLC's and the former director and repaying the loans to the
former director in the form of cash and Company stock.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
31 Certification of Chief Executive and Financial Officer pursuant
Section 302 of the Sarbanes-Oxley Act of 2002.
32 Certification of Chief Executive and Financial
Officer pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002.
(b) No Reports on Form 8-K were filed during the quarter ended
September 30, 2003.
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.
AMERICAN ASSET MANAGEMENT CORPORATION
(Registrant)
Date: November 18, 2003 By:_s/Richard G. Gagliardi__________
Richard G. Gagliardi
Chairman, President and Chief
Executive Officer (Principal
Executive and Financial Officer)