SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1996
( )TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 33-3272-W
LOTUS PACIFIC, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State of organization)
52-1947160
(I.R.S. Employer Identification Number)
235 Route 22 East, Greenbrook, New Jersey 08812
(Address of principal executive offices)
(908) 752-5899
(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 proceeding 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.
(1) Yes__X__ No___
(2) Yes__X__ No___
As of September 30, 1996, the Registrant had outstanding
26,937,054 shares of Common Stock, par value $.001 per
share and 4,300 shares of Series A Preferred Stock.
LOTUS PACIFIC, INC.
Table of Contents
PART I Financial Information
Item 1:
Consolidated Balance Sheets (4)
Consolidated Statement of Operation (5)
Consolidated Statement of Cash Flows (6)
Item 2:
Management's Discussion and Analysis of Financial
Condition and Results of Operations (7)
PART II Other Information (8)
Item 1. Exhibits (8)
Part I
FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting
principles for completing financial statements. In the
opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a
fair presentation have been included.
LOTUS PACIFIC, INC.
CONSOLIDATED BALANCE SHEETS
September 30, 1996
(Unaudited)
ASSETS
September 30, 1996 September 30, 1995 (Note 1)
CURRENT ASSETS
Cash $215,560 $ 237,657
Accounts receivable 0 62,628
Other receivable 0 126,657
Inventories 0 408,964
Prepaid expenses 0 22,580
Total Currents Assets 0 858,486
FIXED ASSETS (NET) 0 331,149
CONSTRUCTION IN PROCESS 0 6,568
OTHER ASSETS 172,395 (Note 2)
Organization costs 0 21,350
TOTAL ASSETS 387,955 1,217,253
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITY
Short-term loans 0 $ 542,169
Notes payable 0 54,718
Accounts payable 0 115,388
Taxes payable 0 (22,771)
Advances from customers 0 3,874
Other payable 0 105,566
Total Current Liabilities 0 798,944
MINORITY INTEREST 0 61,416
STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par value,
100,000 shares authorized, issued and outstanding 4 4
Common Stock, $.001 par value,
50,000,000 shares authorized, issued and outstanding 26,937 26,937
Additional paid-in capital 367,717 355,972
Retained Earnings (Deficit) (6,703) (26,020)
Total Stockholders' Equity 387,955 357,193
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY 387,955 1,217,253
The accompanying notes are an integral part of these
consolidated financial statements.
LOTUS PACIFIC, INC.
CONSOLIDATED STATEMENT OF OPERATIONS FOR
THE THREE MONTH ENDING SEPTEMBER, 1996
September 30, 1996 September 30, 1995
Sales 0 $ 641,176
Cost of Goods Sold 0 382,367
Gross Profit 0 258,809
Operating Expenses 0 (128,367)
Income from Operations 0 130,542
Other income (Expenses), Net
Miscellaneous Income (Expense)
Interest Expense, Net 834 (120,187)
Net Income 834 10,355
Minority Interest Income (a) 0 5,030
Consolidated Net Income 834 5,325
Gain/Loss Per Share 0.00 0.00
LOTUS PACIFIC, INC.
STATEMENT OF CASH FLOWS FOR
THE THREE MONTHS ENDING SEPTEMBER 30, 1996
September 30, 1996 September 30, 1995
CASH FLOW FROM OPERATION ACTIVITIES
Net Income $ 834 $ 5,325
Additions:
Increase in accounts payable 0 110,988
Increase in other payable 0 105,988
Increase in customer advance 0 3,874
Subtractions:
Increase in accounts receivable 0 (62,628)
Increase in prepaid expenses 0 (22,580)
Increase in inventory 0 (408,964)
Increase in other receivable 0 (126,657)
Increase in tax receivable 0 (22,771)
Increase in other assets 0 (21,350)
Net Cash Flow From Operations 0 (439,197)
CASH FLOW FROM INVESTING ACTIVITIES:
Increase in minority interest 0 61,416
Issue common stocks 0 134,560
Acquisition of equipment 0 (337,717)
Net Cash Flow From Financing Activities 0 596,887
CASH FLOW FROM FINANCING ACTIVITIES:
Increase in notes payable 0 54,718
Increase in loan payable 0 542,169
Net Cash Flow from Financing Activities 0 596,887
NET INCREASE IN CASH AND CASH EQUIVALENTS 834 15,949
CASH & CASH EQUIVALENT AT BEGINNING OF THE PERIOD 214,726 221,408
CASH & CASH EQUIVALENT IN ENDING OF THE PERIOD 15,560 237,657
Notes:
Note 1: The company had 70% equity interest in Shanghai Union
Auto-Bicycle Co, Ltd. The minority interest adjustment was
based on the book value of the acquired net assets by the
end of September 1995 which was deemed to be the fair value.
Note 2: On June 28, 1996, the Company exchanged its investment
in Shanghai Union for 5% of the outstanding common stock
of Rightiming Electronics Corp. (Rightiming). Rightiming
was incorporated to design and manufacture electronic software
and other products to be marketed in the Far East. Five
percent of Rightiming's stockholder's equity was $268,018
upon the date of acquisition. The Company recorded its
investment in Rightiming at the value of its investment
in Shanghai Union, on the date of the exchange, $172,395.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Results of Operation
The company is not in operation. The company is currently
looking for business opportunities both in the U.S. and
in the Far East.
Liability and capital Resources
As of September 30, 1996, the Corporation has 26,937,054
shares of common stock outstanding and 4,300 shares of
Series A Preferred Stock outstanding.
Part II
OTHER INFORMATION
Item 1 Exhibits.
None.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to
be signed by the undersigned hereunto duly authorized.
Lotus Pacific, Inc.
By: (s) Tom H. Gong
Vice President and Treasurer
Dated: November 8, 1996