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 December 31, 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.
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(Name of Small Business Issuer in Its Charter)
Colorado 84-1360787
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(State of Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
465 Fairchild Drive, Suite 111, Mountain View, CA 94043
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(Address of Principal Executive Offices) (Zip Code)
(650) 967-3974
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(Issuer's Telephone Number, Including Area Code)
N/A
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(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 March 19, 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)
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Dec 31, 2000 Dec 31, 1999 Jun 30, 2000
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ASSETS
CURRENT ASSETS
Cash & Cash Equivalents $ 1 $ (6,580) $ 67
Accounts Receivable - - -
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Total Current Assets 1 (6,580) 67
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EQUIPMENT & FURNITURE
Office Equipment & Furniture (net of Depreciation) 24,158 34,358 29,121
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OTHER ASSETS
Product Technology License (net of Amortization) 99,750 113,750 106,750
Receivable from officers - - -
Receivable from others - - -
Deposits 4,377 204,281 4,377
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Total Other Assets 104,127 318,031 111,127
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TOTAL ASSETS $ 128,286 $ 345,809 $ 140,315
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See Notes to Financial Statements
LOG POINT TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
(UNAUDITED)
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of capitalized lease obligations $ 6,262 $ 12,745 $ 11,673
Loans Payable 14,375 302,536 -
Accounts Payable 190,012 155,294 189,285
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Total Current Liabilities 210,649 470,575 200,958
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LONG-TERM DEBT
Due on product license 174,583 165,427 170,428
Loans from Officers 568,160 65,626 515,020
Capitalized lease obligations less current portion - 6,485 1,358
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Total Long-Term Debt 742,743 237,538 686,806
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OTHER LIABILITIES
Deferred salaries & wages, and related payroll taxes 1,426,035 1,067,564 1,241,734
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Total Liabilities 2,379,427 1,775,677 2,129,498
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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 1,104,194 1,559,630
Treasury Stock (300,930 shares) (445,436) - (445,436)
Retained Earnings (deficit) (3,365,335) (2,534,062) (3,103,377)
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(2,251,141) (1,429,868) (1,989,183)
Less stock receivable - - -
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Total Stockholders' Equity (Deficit) (2,251,141) (1,429,868) (1,989,183)
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) $ 128,286 $ 345,809 $ 140,315
============ ============ ============
See Notes to Financial Statements
LOG POINT TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2000 & 1999, AND
SINCE INCEPTION (FEBRUARY 1993) TO DECEMBER 31, 2000
(UNAUDITED)
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3 Months 3 Months 6 Months 6 Months Since
Dec 31, 2000 Dec 31, 1999 Dec 31, 2000 Dec 31, 1999 Inception
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SALES $ - None - 1,200 $ 71,680
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COST OF SALES None None None None None
OPERATING EXPENSES:
General and Administrative 43,541 $ 121,344 98,106 $ 179,368 1,271,991
Research and development 55,314 57,606 103,650 117,376 1,673,648
Depreciation and Amortization 5,981 6,119 11,962 12,237 154,785
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Total Operating Expenses 104,836 185,069 213,718 308,981 3,100,424
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LOSS BEFORE OTHER ITEMS (104,836) (185,069) (213,718) (307,781) (3,028,744)
OTHER INCOME & EXPENSE
Interest expense (19,441) (120,677) (48,240) (138,735) (349,404)
Interest Income - - - - 12,813
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NET LOSS $ (124,277) $ (305,746) (261,958) $ (446,516) $(3,365,335)
============== ============================= ============ ============
LOSS PER SHARE $ (0.012) $ (0.028) (0.024) $ (0.042) $
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WEIGHTED AVERAGE NUMBER OF SHARES 10,757,403 10,757,403 10,757,403 10,757,403
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See Notes to Financial Statements
LOG POINT TECHNOLOGIES, INC.
(A DEVELOPMENT COMPANY)
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS AND SIX MONTHS ENDED DECEMBER 31, 2000 & 1999, AND
SINCE INCEPTION (FEBRUARY 1993) TO DECEMBER 31, 2000
(UNAUDITED)
3 Months 3 Months 6 Months 6 Months Since
Dec 31, 2000 Dec 31, 1999 Dec 31, 2000 Dec 31, 1999 Inception
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CASH FLOWS FROM (TO) OPERATING ACTIVITIES:
Net Income(Loss) From Operations: $ (124,277) $ (305,746) $ (261,958) $ (446,516) $(3,365,335)
Add: Non-Cash Items
Depreciation and Amortization 5,981 6,119 11,962 12,237 154,785
Deferred salaries, related taxes and interest 98,515 93,285 184,301 184,995 1,426,036
Payment of expenses & loans with stock - 75,000 - 75,000 251,060
Changes in Assets and Liabilities
Accounts Receivables - 1,200 - - -
Prepaid Expenses - - - - -
Receivable & payables from officers-net - - - - -
Receivable & payables from others-net 10,375 - 14,375 - 98,411
Deposits - (200,000) - (200,000) (4,377)
Accounts payable 9,141 (2,350) 727 6,646 190,012
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Net Cash From(To) Operating Activities (265) (332,492) (50,593) (367,638) (1,249,408)
-------------- -------------- -------------- ----------- ------------
CASH FLOWS FROM(TO) INVESTING ACTIVITIES:
Acquisition of Equipment - - - - (68,694)
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Net Cash From(To) Investing Activities - - - - (68,694)
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CASH FLOWS FROM(TO) FINANCING ACTIVITIES:
Proceeds from capitalized leases - - - - 45,049
Proceeds form Short-term Financing 302,536 302,536
Repayment of Debt (1,853) (451) (2,613) (809) (158,240)
Proceeds form officers' loans 2,000 23,132 53,140 58,865 568,160
Sale of Common Stock - - - - 1,308,570
Purchases of Common Stock - - - - (445,436)
-------------- -------------- -------------- ----------- ------------
Net Cash From(To) Financing Activities 147 325,217 50,527 360,592 1,318,103
-------------- -------------- -------------- ----------- ------------
Increase(Decrease) in Cash (118) (7,275) (66) (7,046) 1
CASH BALANCE, BEGINNING 119 695 67 466 -
-------------- -------------- -------------- ----------- ------------
CASH BALANCE, ENDING 1 (6,580) 1 (6,580) 1
============== ============== ============== =========== ============
See Notes to Financial Statements
Notes to Financial Statements
--------------------------------
Note 1. Issuance of 144 Restricted Common
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During the first quarter ended December 31, 2000, no restricted common shares
were issued.
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
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During the first quarters ended December 31, 2000 and 1999, the Log Point
Technologies, Inc. ("Log Point") incurred losses of $124,277 and $305,746
respectively.
Log Point is a development stage company that incurred losses of $124,277 and
$305,746 for the first quarters ended December 31, 2000 and 1999 respectively.
Log Point incurred losses of $261,958 and $446,516 for the first two quarters
ended December 31, 2000 and 1999 respectively. Since inception, the Company has
incurred losses totaling $3,365,335.
During the first quarter ended December 31, 2000, General and Administrative
expenses were $43,542, which included $32,843 for salaries and payroll taxes.
Research and Development expenses were $55,314, which included $46,643 for
salaries and payroll taxes.
The Securities and Exchange Commission ("SEC") investigated Log Point. From the
findings of the SEC's investigation, the SEC alleged that Log Point misled
investors by the omission of material fact from several recent press releases
regarding financing and revenue projections, which would be a violation of
Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The SEC proposed a
settlement (the "Settlement") with Log Point whereby Log Point recognize the SEC
authority over Log Point and Log Point accept an Administrative Cease and Desist
Order to stop violating Section 10(b) of the Exchange Act, with Log Point
neither admitting nor denying the allegations in the Cease and Desist Order. Log
Point accepted the Settlement and the Administrative Cease and Desist Order went
into effect on March 1, 2001. There has been no further action by the SEC
against Log Point and Log Point does not expect any further action. Log Point
does not know what effect the Settlement will have on it efforts to obtain
financing.
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
December 31, 2001. Log Point does not expect any significant revenues during the
twelve-month period ending December 31, 2001.
When Log Point emerges from its development stage, additional financing will be
needed. Log Point is still working with Monmouth Partners for possible
financing. 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 December 31, 2001.
Log Point has no plans to purchase any plant or significant equipment during the
twelve months ending December 31, 2001.
The Company does not anticipate any significant changes in its number of
employees during the twelve months ending December 31, 2001.
SIGNATURE
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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: March 19, 2001 By: /s/ Samuel P. Shanks
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Samuel P. Shanks, President