PGI INC - Quarter Report: 2020 March (Form 10-Q)

 FORM 10- Q

 U.S SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2020

 

 

☐ TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________________ to _____________________

 

Commission File Number 1-6471 

 

PGI INCORPORATED

(Exact name of registrant as specified in its charter)

 

FLORIDA    59-0867335

(State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.)

 

212 SOUTH CENTRAL, SUITE 304, ST. LOUIS, MISSOURI 63105

(Address of principal executive offices)

 

(314) 512-8650

(Registrant’s telephone number, including area code)

 

Inapplicable       

(Former Name, Former Address and Former Fiscal year, if changed since last report)

 

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 

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Sec. 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes X  No _______

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer___________ Accelerated filer__________        Non-accelerated filer____________ Smaller reporting company X

(Do not check if a smaller reporting company) Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No X

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	Inapplicable	Inapplicable

 

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date: As of June 29, 2020, there were 5,317,758 shares of the registrant’s common stock, $.10 par value per share, outstanding.

 

 

EXPLANATORY NOTE

 

Reliance on Securities and Exchange Commission Order

 

The registrant has relied on the Securities and Exchange Commission’s Order under Section 36 of the Securities Exchange Act of 1934, as amended, dated March 4, 2020 Order (Release No. 34-88318), as modified on March 25, 2020 (Release No. 34-88465), or the Order, to delay the filing of this Quarterly Report on Form 10-Q, or the Quarterly Report. The registrant’s operations have experienced disruptions due to the unprecedented conditions surrounding the spread of the coronavirus (COVID-19) throughout the United States and the world. In particular, COVID-19 and measures implemented to reduce the spread of the virus have limited access to the Company’s officers and disrupted its normal interactions with persons involved in the preparation of the Quarterly Report and has thereby limited the registrant’s ability to engage in the activities necessary to complete this Quarterly Report prior to the initial filing deadline. Additional time was required to develop and process the registrant's financial information reflected in this Quarterly Report.

 

 

 

PGI INCORPORATED AND SUBSIDIARIES

 

Form 10 – Q

For the Quarter Ended March 31, 2020

 

Table of Contents

 

	FINANCIAL INFORMATION	Form 10 - Q Page No.
PART I
Item 1.	Financial Statements (Unaudited) Condensed Consolidated Statements of Financial Position March 31, 2020 and December 31, 2019	4
	Condensed Consolidated Statements of Operations     Three Months Ended March 31, 2020 and 2019	5
	Condensed Consolidated Statements of Cash Flows  Three Months Ended March 31, 2020 and 2019	6
	Condensed Consolidated Statements of Stockholders’ Deficiency   Three Months Ended March 31, 2020 and 2019	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of        Financial Condition and Results of Operations	12
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	15
Item 4.	Controls and Procedures	15
PART II	OTHER INFORMATION	16
Item 1.	Legal Proceedings	16
Item 1A.	Risk Factors	16
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3.	Defaults Upon Senior Securities	16
Item 4.	Mine Safety Disclosures	16
Item 5.	Other Information	16
Item 6.	Exhibits	16
SIGNATURE		17
EXHIBIT INDEX		18

 

 

PART I  FINANCIAL INFORMATION

Item 1. Financial Statements

 

	March 31,	December 31,
	2020	2019
ASSETS
Cash	$288	$309
Land inventory	14	14
Restricted sinking fund	13	13
	$315	$336
LIABILITIES
Accounts payable and accrued expenses	$191	$169
Accrued real estate taxes	1	-
Accrued interest:
Subordinated convertible debentures payable	27,406	27,070
Convertible debentures payable-related party	52,915	52,915
Notes payable	3,404	3,385
Credit agreements:
Notes payable	1,198	1,198
Subordinated convertible debentures payable	8,163	8,163
	93,278	92,900
STOCKHOLDERS' DEFICIENCY
Preferred stock, par value $1.00 per share;
authorized 5,000,000 shares; 2,000,000
Class A cumulative convertible shares issued
and outstanding; (liquidation preference of
$8,000 plus unpaid cumulative dividends of $15,955)	2,000	2,000
Common stock, par value $.10 per share;
authorized 25,000,000 shares; 5,317,758
shares issued and outstanding	532	532
Paid-in capital	13,498	13,498
Accumulated deficit	(108,993)	(108,594)
	(92,963)	(92,564)
	$315	$336

 

See accompanying notes to Condensed Consolidated Financial Statements.

 

 

Part I  Financial Information (Continued)

 

	Three Months Ended
	March 31,	March 31,
	2020	2019
REVENUES
Interest income	$-	$1
	-	1
COSTS AND EXPENSES
Interest	355	350
Taxes and assessments	1	1
Consulting and accounting-
related party	9	9
Legal and professional	30	29
General and administrative	4	15
	399	404
NET LOSS	$(399)	$(403)
NET LOSS PER SHARE(*)
AVAILABLE TO COMMON
STOCKHOLDERS-Basic and diluted	$(0.11)	$(0.11)

 

*Considers the effect of dividends on preferred stock for the three months ended  March 31, 2020 and 2019.

 

See accompanying notes to Condensed Consolidated Financial Statements.

 

 

Part I  Financial Information (Continued)

 

	Three Months Ended
	March 31,	March 31,
	2020	2019
Net cash used in operating activities	$(21)	$(107)
Net change in cash	(21)	(107)
Cash at beginning of period	309	526
Cash at end of period	$288	$419

 

See accompanying notes to Condensed Consolidated Financial Statements.

 

 

Part I  Financial Information (Continued)

 

	Preferred Stock		Common Stock			Accumulated
	Shares	Par Value	Shares	Par Value	Paid-in Capital	Deficit	Total
Balances at 1/1/20	2,000,000	$2,000	5,317,758	$532	$13,498	$(108,594)	$(92,564)
Net Loss	-	-	-	-	-	(399)	(399)
Balances at 3/31/20	2,000,000	$2,000	5,317,758	$532	$13,498	$(108,993)	$(92,963)

 

	Preferred Stock		Common Stock			Accumulated
	Shares	Par Value	Shares	Par Value	Paid-in Capital	Deficit	Total
Balances at 1/1/19	2,000,000	$2,000	5,317,758	$532	$13,498	$(107,026)	$(90,996)
Net Loss	-	-	-	-	-	(403)	(403)
Balances at 3/31/19	2,000,000	$2,000	5,317,758	$532	$13,498	$(107,429)	$(91,399)

 

See accompanying notes to Condensed Consolidated Financial Statements.

 

 

PGI INCORPORATED AND SUBSIDIARIES

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

(1) Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements of PGI Incorporated (“PGI”) and its subsidiaries (the “Company”) have been prepared in accordance with the instructions to Form 10 - Q and therefore do not include all disclosures necessary for fair presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. The Company's independent registered public accounting firm included an explanatory paragraph regarding the Company's ability to continue as a going concern in their report on the Company's consolidated financial statements for the year ended December 31, 2019,as they have for many years.

 

The Company was founded in 1958, and up until the mid 1990’s was in the business of building and selling homes, developing and selling home sites and selling undeveloped or partially developed tracts of land. Over approximately the last 30 years, the Company’s business focus and emphasis changed substantially as it has concentrated its sales and marketing efforts almost exclusively on the disposition of its remaining real estate.

 

The Company’s major efforts and activities have been, and continue to be, to sell the remaining assets of the Company, to repay its indebtedness, and to pay the ordinary on-going administrative costs of the Company. The potential values of the land parcels held for sale has been difficult to assess. The Company will seek to realize full market value for each remaining asset. Certain of these assets may be of so little value and marketability that the Company may elect not to pay the real estate taxes on selected parcels, which may eventually result in a defacto liquidation of such property by subjecting such property to a tax sale. In management’s judgement, the remaining assets will be insufficient to satisfy much, if any, of the outstanding indebtedness and there will be no recoveries by the shareholders. Consequently, there is substantial doubt about the Company’s ability to continue as a going concern within one year after the date that the financial statements are issued.

 

Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K annual report for 2019 filed with the Securities and Exchange Commission.

 

The Company remains in default under the indentures governing its unsecured subordinated debentures. (See Management's Discussion and Analysis of Financial Condition and Results of Operations and Notes 7, 8, and 9 to the Company's consolidated financial statements for the year ended December 31, 2019, as contained in the Company's Annual Report on Form 10 - K).

 

All adjustments (consisting of only normal recurring accruals) necessary for fair presentation of financial position, results of operations and cash flows have been made. The results for the three months ended March 31, 2020 are not necessarily indicative of operations to be expected for the fiscal year ending December 31, 2020 or any other interim period.

 

The Company has experienced disruptions due to the unprecedented conditions surrounding the spread of COVID-19 throughout the United States and the world. In particular, COVID-19 and measures implemented to reduce the spread of the virus have limited access to the Company’s offices and disrupted normal interactions with persons involved in the preparation of the quarterly report on Form 10-Q in which these financial statements are included.

 

(2) Per Share Data

 

Basic per share amounts are computed by dividing net income (loss), after deducting current period dividends on the Company's preferred stock, by the weighted average number of common shares outstanding during the period. The weighted average number of common shares outstanding for the three months ended March 31, 2020 and 2019 was 5,317,758.

 

Diluted per share amounts are computed by dividing net income (loss) attributable to common shareholders by the weighted average number of common shares outstanding, after adjusting for the estimated effect of the assumed conversion of all cumulative convertible preferred stock and outstanding convertible debentures, if dilutive, into shares of common stock. For the three months ended March 31, 2020 and 2019, the assumed conversion of all outstanding convertible preferred stock and collateralized convertible debentures would have been anti-dilutive.

 

 

 

The following is a summary of the calculations used in computing basic and diluted loss per share for the three months ended March 31, 2020 and 2019.

 

	Three Months Ended
	March 31,	March 31,
	2020	2019
	($ in thousands,
	except share and per share data)
Net Loss	$(399)	$(403)
Preferred dividends	(160)	(160)
Loss Available to	$(559)	$(563)
Common shareholders
Weighted Average Number
Of Common Shares
Outstanding	5,317,758	5,317,758
Basic and Diluted Loss
Per Common Share	$(0.11)	$(0.11)

   

(3) Statement of Cash Flows

 

The Financial Accounting Standards Board Accounting Standards Codification Topic No. 230, “Statement of Cash Flows”, requires a statement of cash flows as part of a full set of financial statements. For quarterly reporting purposes, the Company has elected to condense the reporting of its net cash flows. There were no payments of interest for the three month periods ended March 31, 2020 and March 31, 2019.

 

(4) Land Inventory

 

Land inventory consisted of

	March 31,	December 31,
	2020	2019
	($ in thousands)
Fully improved land	$14	$14

 

 

 

 

Accounts payable and accrued expenses consisted of:

	March 31,	December 31,
	2020	2019
	($ in thousands)
Accounts payable	$34	$-
Accrued accounting review and
tax preparation expense	1	13
Accrued consulting fees-related party	-	1
Accrued legal	2	1
Accrued debenture fees	153	153
Accrued miscellaneous	1	1
	$191	$169
Accrued real estate taxes consisted of:
Current real estate taxes	$1	$-

  

 

Credit agreements consisted of the following:

 

	March 31,	December 31,
	2020	2019
	($ in thousands)
Notes payable - $1,176,000 bearing
interest at prime plus 2%,
the remainder non-interest bearing,
all past due	$1,198	$1,198
Subordinated convertible debentures payable:
At 6.5% interest; due June 1991	138	138
At 6% interest; due May 1992	8,025	8,025
	8,163	8,163
	$9,361	$9,361

 

 

 

The Trustee of the 6.5% subordinated convertible debentures, which matured in June, 1991, with an original face amount of $1,034,000, provided notice of final distribution to holders of such debentures on September 2, 2014. In connection with such final distribution, the Trustee has maintained a debenture reserve fund with a balance of $13,000 as of March 31, 2020 and December 31, 2019, available for final distribution to holders of such debentures who surrender their respective debenture certificates.

 

During the three month periods ended March 31, 2020 and 2019, there were no 6.5% subordinated convertible debentures that were surrendered or escheated by their respective debenture holders and no funds were utilized from the debenture reserve account.

 

As of March 31, 2020 and December 31, 2019, the outstanding principal balance on such 6.5% subordinated convertible debentures that were not surrendered by the respective holders equals $138,000 plus accrued and unpaid interest of $281,000 and $279,000, respectively. If and when such remaining debentures are surrendered to the Trustee, the applicable portion of such principal and accrued interest will be recorded as debt and accrued interest forgiveness. As the Company has consistently stated in prior filings, the Company believes that any potential claims by the respective debenture holders on such 6.5% subordinated convertible debentures would be barred under the applicable statutes of limitations.

 

 

At December 31, 2019, the Company had an operating loss carryforward of approximately, $70,074,000 available to reduce future taxable income. These operating losses expire at various dates through 2038.

 

The following summarizes the temporary differences of the Company at March 31, 2020 and December 31, 2019 at the statutory rate:        

 

	March 31,	December 31,
	2020	2019
	($ in thousands)
Deferred tax asset
Net operating loss carryforward	$17,625	$17,522
Expenses capitalized under IRC 263(a)	37	37
Tax credits (AMT)	57	57
Valuation allowance	(17,719)	(17,616)
Total deferred tax asset	$-	$-

 

 

The carrying amount of the Company’s financial instruments, other than debt, approximates fair value at March 31, 2020 and December 31, 2019 because of the short maturity of those instruments. It was not practicable to estimate the fair value of the Company’s notes payable and its convertible debentures because these debts are in default causing no basis for estimating value by reference to quoted market prices or current rates offered to the Company for debt of the same remaining maturities.

 

 

PGI INCORPORATED AND SUBSIDIARIES

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

 

 

As an Inactive Registrant, PGI currently intends to continue to timely file Annual Reports on Forms 10-K with the Securities and Exchange Commission (the “SEC”). PGI currently intends to include in such Annual Reports all annual consolidated financial statements required to be included therein pursuant to Regulation S-X. However, due to its inactive status and diminishing financial resources, PGI anticipates that the aforementioned annual consolidated financial statements will not be reviewed or audited by a PCAOB registered public accounting firm for the year 2020. PGI engaged Milhouse & Neal, a PCAOB registered public accounting firm, to review its annual consolidated financial statements for its fiscal year ended December 31, 2019.

 

PGI meets all of the conditions in Regulation S-X 3-11 for an “Inactive Registrant” which are:

 

As the Company reviews its circumstances, it has met the conditions as an Inactive Registrant since 2017

 

The Company, formerly a Florida residential developer, is dormant with less than 70 acres of remaining landholdings, much of which has little value due to various restrictions. The Company’s consolidated financial statements show it has a Stockholders’ Deficiency of $92.6 million as of December 31, 2019. BKD, the Company’s PCAOB registered public accounting firm until the date the Company filed its Form 10-K for Fiscal 2018 which was February 25, 2019, expressed a “going concern” opinion with respect to the Company for its Fiscal 2018 financial statements and had expressed such opinions for many years previously. PGI has had no trading of its securities in many years. Any future real estate transactions by the Company will be limited, uncertain as to timing and as to value. Ultimately, PGI expects that proceeds from sales of its remaining real estate, if any, will provide some minimal recoveries for PGI’s senior debtholders. PGI has been an SEC registrant for over 40 years.

 

As an Inactive Registrant, PGI anticipates it will continue to provide updates through its SEC filings.

 

The Trustee of the 6.5% subordinated debentures, which matured in June 1991, with an original face amount of $1,034,000, provided notice of final distribution to holders of such debentures on September 2, 2014. In connection with such final distribution, the Trustee maintained a debenture reserve fund with a balance of $13,000 as of March 31, 2020 and December 31, 2019, respectively, which is available for final distribution to holders of such debentures who surrender their respective debenture certificates.

 

During the three month period ended March 31, 2020, there were no 6.5% subordinated convertible debentures that were surrendered by their respective debenture holders and no funds were utilized from the debenture reserve account.

 

As of March 31, 2020 and December 31, 2019, the remaining outstanding principal balance on such 6.5% subordinated convertible debentures that have not been surrendered by the respective holders equals $138,000 plus accrued and unpaid interest of $281,000 and $279,000, respectively. If and when such remaining debentures are surrendered to the Trustee, the applicable portion of such principal and accrued interest will be recorded as debt and interest forgiveness. As the Company has consistently stated in prior filings, the Company believes that any potential claims by the respective debenture holders on such 6.5% subordinated convertible debentures would be barred under the applicable statutes of limitations.

 

As of March 31, 2020, the Company remained in default under its subordinated convertible debentures and notes payable, as well as the accrued interest with respect to its collateralized convertible debentures.

 

 

PGI INCORPORATED AND SUBSIDIARIES

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)

 

Interest expense relating to the Company’s current outstanding debt, held by non-related parties, increased by $5,000 during the three month period ended March 31, 2020 compared to the same period in 2019, primarily as a result of interest compounding on past due balances. This increase was offset by a decrease in the prime interest rate to 3.25% as of March 31, 2020 compared to 4.75% as of December 31, 2019.

 

Legal and professional expenses during the three month period ended March 31, 2020 increased by $1,000 when compared to the same period in 2019 primarily as a result of legal expenses incurred in connection with legal research relating to the Company’s going concern alternatives.

 

General and administrative expenses during the three month period ended March 31, 2020 decreased by $11,000 when compared to the same period in 2019 primarily as a result of a reduction in accounting review services in the current year.

 

The Company incurred a net loss of $399,000 during the three month period ended March 31, 2020 compared to a net loss of $403,000 for the comparable period in 2019. After deducting preferred dividends, totaling $160,000 for the three month periods ended March 31, 2020 and 2019, with respect to the Class A Preferred Stock, a net loss per share of $(.11) was incurred for both of the three month periods ended March 31, 2020 and 2019. The total cumulative preferred dividends in arrears with respect to the Class A Preferred Stock through March 31, 2020 is $15,955,000.

 

Cash Flow Analysis

 

During the three month period ended March 31, 2020, the Company’s net cash used in operating activities was $21,000 compared to $107,000 for the comparable period in 2019. There was no cash provided from financing or investing activities during the three month periods ended March 31, 2020 and 2019.

 

Analysis of Financial Condition

 

Total assets decreased by $21,000 at March 31, 2020 compared to total assets at December 31, 2019, reflecting the following changes:

 

	March 31,	December 31,	Increase
	2020	2019	(Decrease)
		($ in thousands)
Cash	$288	$309	$(21)
Land inventory	14	14	-
Restricted sinking fund	13	13	-
	$315	$336	$(21)

 

During the three month period ended March 31, 2020, cash decreased by $21,000 compared to December 31, 2019 as a result of the Company funding its administrative costs.

 

Liabilities were approximately $93,278,000 at March 31, 2020 compared to approximately $92,900,000 at December 31, 2019, reflecting the following changes which resulted in an increase of $378,000 of liabilities:

 

 

 

PGI INCORPORATED AND SUBSIDIARIES

 

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (continued)

 

 

The Company remains in default on the entire principal amount plus interest (including certain sinking fund and interest payments with respect to the subordinated convertible debentures) of its subordinated convertible debentures and notes payable as well as the remaining accrued interest owed with respect to the collateralized convertible debentures.

 

The principal and accrued interest amounts due as of March 31, 2020 are as indicated in the following table:

 

	March 31, 2020
	Principal	Accrued
	Amount Due	Interest
	($ in thousands)
Subordinated convertible debentures:
At 6.5%, due June 1991	$138	$281
At 6%, due May 1992	8,025	27,125
	$8,163	$27,406
Collateralized convertible debentures-related party:
At 14%, due July 8, 1997	$-	$52,915
Notes payable:
At prime plus 2%, all past due	$1,176	$3,404
Non-interest bearing	22	-
	$1,198	$3,404

 

The Company does not have sufficient funds available (after payment of, or the reserving for the payment of, anticipated future operating expenses) to satisfy the principal or interest obligations on the above debentures and notes payable or any arrearage in preferred dividends.

 

The Company remains totally dependent upon the sale of parcels of its various remaining properties with respect to its ability to make any future debt service payments.

 

The Company’s independent registered public accounting firms have included an explanatory paragraph regarding the Company’s ability to continue as a going concern in their reports on the Company’s consolidated financial statements for many years including the year ended December 31, 2019.

 

 

Forward Looking Statements

 

The discussion set forth in this Item 2, as well as other portions of this Form 10-Q, may contain forward-looking statements. Such statements are based upon the information currently available to management of the Company and management’s perception thereof as of the date of the Form 10-Q. When used in this Form 10-Q, words such as “anticipates,” “estimates,” “believes,” “expects,” and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties. Actual results of the Company’s operations could materially differ from those forward-looking statements. The differences could be caused by a number of factors or combination of factors including, but not limited to: changes in the real estate market in Florida and the counties in which the Company owns any property; institution of legal action by the bondholders for collection of any amounts due under the subordinated convertible debentures (notwithstanding the Company’s belief that at least a portion of such actions might be barred under applicable statute of limitations); changes in management strategy; and other factors set forth in reports and other documents filed by the Company with the Securities and Exchange Commission from time to time.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

Not applicable.

 

Item 4. Controls and Procedures

 

The Company has evaluated the effectiveness of the design and operation of its disclosure controls and procedures under the supervision and with the participation of its Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Based on this evaluation, the Company’s management, including the CEO and CFO, concluded that the Company’s disclosure controls and procedures were effective as of March 31, 2020. There have been no changes in the Company’s internal control over financial reporting during the quarter ended March 31, 2020 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

 

PGI INCORPORATED AND SUBSIDIARIES

 

 

PART II OTHER INFORMATION

 

Item 1. Legal Proceedings

 

The Company, to its knowledge, currently is not a party to any material legal proceedings.

 

Item 1A. Risk Factors

 

Not applicable.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

Not applicable.

 

Item 3. Defaults Upon Senior Securities

 

See discussion in Item 2 of Part I with respect to defaults under the Company's subordinated convertible debentures, collateralized convertible debentures and other indebtedness and with respect to cumulative preferred dividends in arrears, which discussions are incorporated herein by this reference.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other Information

 

Not applicable.

 

Item 6. Exhibits

 

Reference is made to the Exhibit Index hereof for a list of exhibits filed or furnished under this

 Item.

 

 

 

PGI INCORPORATED AND SUBSIDIARIES

 

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.

 

	PGI INCORPORATED  (Registrant)
Date: June 29, 2020	By:	/s/ Laurence A. Schiffer
		Laurence A. Schiffer
		President (Duly Authorized Officer, Principal Executive Officer and Principal Financial Officer)

 

 

 

PGI INCORPORATED AND SUBSIDIARIES

 

EXHIBIT INDEX

 

2.	Inapplicable.
3.	(i) Inapplicable.
3.	(ii) Inapplicable.
4.	Inapplicable.
10.	Inapplicable.
11.	Statement re: Computation of Per Share Earnings (Set forth in Note 2 of the Notes to Condensed Consolidated Financial Statements (Unaudited) herein).
15.	Inapplicable.
18.	Inapplicable.
19.	Inapplicable.
22.	Inapplicable.
23.	Inapplicable.
24.	Inapplicable.
31(i).1	Principal Executive Officer certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
31(i).2	Principal Financial Officer certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
32.1	Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350.
32.2	Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350.
95.	Inapplicable.
99.	Inapplicable.
100.	Inapplicable.
101.	Instance Document, Schema Document, Calculation Linkbase Document, Labels Linkbase Document, Presentation Linkbase Document and Definition Linkbase Document.*

 

* Furnished with this report.