LOG POINT TECHNOLOGIES INC
FILING TYPE: 10QSB
DESCRIPTION: QUARTERLY REPORT
FILING DATE: DEC 13, 2000
PERIOD END: SEP 30, 2000
PRIMARY EXCHANGE: OVER THE COUNTER INCLUDES OTC
AND OTCBB
TICKER: LGPT
U.S. 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, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ______________ to_____________
Commission File No. 0-25281
LOG POINT TECHNOLOGIES, INC.
- --------------------------------------------------------------------------------
(Name of Small Business Issuer in Its Charter)
Colorado 84-1360787
-------- ----------
(State of Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
465 Fairchild Drive, Suite 111, Mountain View, CA 94043
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(650) 967-3974
- --------------------------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
N/A
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last year.)
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 days.
Yes X No ______
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of December 13, 2000, Log Point
Technologies, Inc. had 11,233,333 shares of Common Stock outstanding, no par
value.
LOG POINT Technologies, Inc.
(a development stage company)
BALANCE SHEETS
(Unaudited)
------------- ------------- ------------
Sep 30, 2000 Sep 30, 1999 Jun 30, 2000
------------- ------------- ------------
ASSETS
CURRENT ASSETS
Cash & Cash Equivalents $ 119 $ 695 $ 67
Accounts Receivable - 1,200 -
------------- ------------- -------------
Total Current Assets 119 1,895 67
------------- ------------- -------------
EQUIPMENT & FURNITURE
Office Equipment & Furniture (net of Depreciation) 26,639 36,976 29,121
------------- ------------- -------------
OTHER ASSETS
Product Technology License (net of Amortization) 103,250 117,250 106,750
Receivable from officers - - -
Receivable from others - - -
Deposits 4,377 4,281 4,377
------------- ------------- -------------
Total Other Assets 107,627 121,531 111,127
------------- ------------- -------------
TOTAL ASSETS $ 134,385 $ 160,402 $ 140,315
============= ============= =============
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of capitalized lease obligations $ 9,156 $ 12,410 $ 11,673
Loans Payable 4,000 - -
Accounts Payable 180,871 157,644 189,285
------------- ------------- -------------
Total Current Liabilities 194,027 170,054 200,958
------------- ------------- -------------
LONG-TERM DEBT
Due on product license 172,984 162,983 170,428
Loans from Officers 566,160 42,494 515,020
Capitalized lease obligations less current portion 558 9,714 1,358
------------- ------------- -------------
Total Long-Term Debt 739,702 215,191 686,806
------------- ------------- -------------
OTHER LIABILITIES
Deferred salaries & wages, and related payroll taxes 1,327,520 974,278 1,241,734
------------- ------------- -------------
Total Liabilities 2,261,249 1,359,523 2,129,498
------------- ------------- -------------
See Notes to Financial Statements
LOG POINT Technologies, Inc.
(a development stage company)
BALANCE SHEETS (continued)
(Unaudited)
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock - No par value; 5,000,000 shares authorized; no shares
issued
Common stock - No Par Value; 50,000,000 shares authorized; shares issued
and outstanding 11,058,383 1,559,630 1,029,194 1,559,630
Treasury Stock (300,930 (445,436) - (445,436)
shares)
Retained Earnings (deficit) (3,241,058) (2,228,315) (3,103,377)
------------ ------------ ------------
(2,126,864) (1,199,121) (1,989,183)
Less stock - - -
receivable
------------ ------------ ------------
Total Stockholders' Equity (Deficit) (2,126,864) (1,199,121) (1,989,183)
------------ ------------ ------------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) $ 134,385 $ 160,402 $ 140,315
============ ============ ============
See Notes to Financial Statements
LOG POINT TECHNOLOGIES, INC.
(a development stage company)
STATEMENT OF OPERATIONS
For the Three Months Ended September 30, 2000 & 1999 and
Since Inception (February 1993) to September 30, 2000
(Unaudited)
- -----------------------------------------------------------------------------
3 Months 3 Months Since
Sep 30, 2000 Sep 30, 1999 Inception
-------------- ------------ ------------
SALES $ 1,200 $ 71,680
-------------- ------------ ------------
COST OF SALES None None None
OPERATING EXPENSES:
General and Administrative 54,565 $ 58,024 1,228,450
Research and development 48,335 59,770 1,618,334
Depreciation and Amortization 5,981 6,118 148,804
-------------- ------------ ------------
Total Operating Expenses 108,881 123,912 2,995,588
-------------- ------------ ------------
LOSS BEFORE OTHER ITEMS (108,881) (122,712) (2,923,908)
OTHER INCOME & EXPENSE
Interest expense (28,800) (18,057) (329,963)
Interest Income - - 12,813
-------------- ------------ ------------
NET LOSS $ (137,681) $ (140,769) $(3,241,058)
============== ============ ============
LOSS PER SHARE $ (0.013) $ (0.013) $
-------------- ------------
WEIGHTED AVERAGE NUMBER OF SHARES 10,757,403 11,058,383
-------------- ------------
See Notes to Financial Statements
LOG POINT TECHNOLOGIES, INC.
(a development stage company)
STATEMENT OF CASH FLOWS
For the Three Months Ended September 30, 2000 & 1999 and
Since Inception (February 1993) to September 30, 2000
(Unaudited)
3 Months 3 Months Since
Sep 30, 2000 Sep 30, 1999 Inception
-------------- ------------ -----------
CASH FLOWS FROM (TO) OPERATING ACTIVITIES:
Net Income(Loss) >From Operations: $ (137,681) $ (140,769) $(3,241,058)
Add: Non-Cash Items
Depreciation and Amortization 5,981 6,118 148,804
Deferred salaries, related taxes and interest 85,786 91,709 1,327,521
Payment of expenses & loans with stock - - 251,060
Changes in Assets and Liabilities
Accounts Receivables - (1,200) -
Prepaid Expenses - 0 -
Receivable & payables from officers-net 51,140 35,733 566,160
Receivable & payables from others-net 4,000 - 88,036
Deposits - - (4,377)
Accounts payable (8,414) 8,996 180,871
-------------- ------------ -----------
Net Cash From(To) Operating Activities 812 587 (682,983)
-------------- ------------ -----------
CASH FLOWS FROM(TO) INVESTING ACTIVITIES:
Acquisition of Equipment - - (68,694)
-------------- ------------ -----------
Net Cash From(To) Investing Activities - - (68,694)
-------------- ------------ -----------
CASH FLOWS FROM(TO) FINANCING ACTIVITIES:
Proceeds from capitalized leases - - 45,049
Repayment of Debt (760) (358) (156,387)
Sale of Common Stock - - 1,308,570
Purchases of Common Stock - - (445,436)
-------------- ------------ -----------
Net Cash From(To) Financing Activities (760) (358) 751,796
-------------- ------------ -----------
Increase(Decrease) in Cash 52 229 119
CASH BALANCE, BEGINNING 67 466 -
-------------- ------------ -----------
CASH BALANCE, ENDING 119 695 119
============== ============ ===========
See Notes to Financial Statements
Notes to Financial Statements
--------------------------------
Note 1. Issuance of 144 Restricted Common
- -----------------------------------------------
During the first quarter ended September 30, 2000, no restricted common shares
were issued.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
- -----------------------------------------------------------------
During the first quarters ended September 30, 2000 and 1999, the Company
Incurred losses of $137,681 and $140,769 respectively.
Log Point is a development stage company that incurred losses of $137,681 and
$140,769 for the quarters ended March 31, 2000 and 1999 respectively. Since
inception, the Company has incurred losses totaling $3,241,058.
Currently, Log Point is dependent upon borrowings to fund its development stage
operations, and at a minimum, management believes that its borrowings will be
adequate to fund its minimum requirements for the twelve-month period ending
September 30, 2001. Log Point does not expect any significant revenues during
the twelve-month period ending September 30, 2001.
When Log Point emerges from its development stage, additional financing will be
needed. Log Point completed negotiations for a major debt financing and received
a commitment letter for a twenty-million-dollar financing from Monmouth Partners
L.L.P. of Monmouth County, New Jersey. Log Point is still scheduled to be funded
by Monmouth Partners. In addition Log Point is in talks with other funding
sources. These additional funds will be used for sales and marketing efforts,
expanded licensing operations, completing hardware designs, and production of
hardware chips using the Company's hardware designs. Operations for licensing
patents and associated intellectual property related to software and hardware
designs will require a credible capability to enter litigation against existing
or future infringers of the Company's stable of patents. In this regard, the
Company is talking with a number of legal firms which have shown substantial
interest in working with the Company to provide such a litigation capability
even before the Company receives major funding.
The Company will require substantial additional financing in future years. The
additional financing would be obtained through loans, secondary public
offerings, private placements, and/or mergers. There can be no assurance that
such funds will be sufficient in the near term or that conditions and
circumstances described herein may not result in subsequent cash requirements by
the Company in the immediate future just to sustain operation. In the event of
such developments, attaining financing under such conditions may not be
possible, or even if additional capital may be otherwise available, the terms on
which such capital may be available may not be commercially feasible or
advantageous. If future funding is not obtained, Log Point would expect to
continue to receive loans until revenue from product licensing and sales become
adequate to sustain the Company's operations.
Log Point will not conduct any significant research and development during the
twelve months ending September 30, 2001.
Log Point has no plans to purchase any plant or significant equipment during the
twelve months ending September 30, 2001.
The Company does not anticipate any significant changes in its number of
employees during the twelve months ending September 30, 2001.
SIGNATURE
---------
In accordance with the requirements of the Exchange Act, the Registrant caused
this Form 10-QSB report to be signed on its behalf by the undersigned thereunto
duly authorized.
LOG POINT TECHNOLOGIES, INC.
Date: December 13, 2000 By: /s/ Samuel P. Shanks
- ----------------------- ------------------------
Samuel P. Shanks, President