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 Securities Exchange
Act of 1934 for the transition Period From __________ to __________.
COMMISSION FILE NUMBER: 2-97360-A
LIGHT MANAGEMENT GROUP, INC.
(Exact Name of Small Business Issuer as Specified in its Charter)
NEVADA 59-2091510
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3060 Mainway, Suite 301, Burlington, Ontario L7M 1A3
(Address of Principal Executive Offices) (Zip Code)
(800) 465-9216
(Issuer's Telephone Number, Including Area Code)
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
On September 30, 2000, the number of shares outstanding of the issuer's
Common Stock, $0.02 par value (the only class of voting stock), was 16,878,279.
Table of Contents
PART I - FINANCIAL INFORMATION . . . . . . . . . . . . . . . . .3
ITEM 1. FINANCIAL STATEMENTS. . . . . . . . . . . . . . .3
PART II - OTHER INFORMATION. . . . . . . . . . . . . . . . . . .4
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K. . . . . . . . .4
INDEX TO EXHIBITS. . . . . . . . . . . . . . . . . . . . . . . .6
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
As used herein, the term "Company" refers to Light Management Group, Inc.,
a Nevada corporation, and its subsidiaries and predecessors unless otherwise
indicated. Consolidated, unaudited, condensed interim financial statements
including a balance sheet for the Company as of September 30, 2000, statement
of operations, statement of shareholders equity and statement of cash flows for
the interim period up to the date of such balance sheet and the comparable
period of the preceding year are attached hereto as Pages F-1 through F-12 and
are incorporated herein by this reference.
Item 2. MANAGEMENT'S DISCUSSION & ANALYSIS OR PLAN OF OPERATION
Forward-looking information
This quarterly report contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. These statements relate
to future events or to our future financial performance. In some cases, you
can identify forward-looking statements by terminology such as "may," "will,"
"should," "expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential" or "continue" or the negative of such terms or
other comparable terminology. These statements are only predictions.
Actual events or results may differ materially. There are a number of
factors that could cause the Company's actual results to differ materially
from those indicated by such forward-looking statements.
Although the Company believes that the expectations reflected in the
forward-looking statements are reasonable, the Company cannot guarantee
future results, levels of activity, performance or achievements. Moreover,
the Company does not assume responsibility for the accuracy and completeness
of such statements. The Company is under no duty to update any of the
forward-looking statements after the date of this report to conform such
statements to actual results.
General
The Company specializes in the development of new applications
of optical and light technologies. These technologies use sound waves
to focus and direct lasers. For example, one of the Company's
proprietary laser projection systems, called the RGB Laser Projection
System, produces graphic images in moving three dimensional designs
that are utilized to market products on large-scale billboards. This
laser system possesses software features which allow images to be
manipulated into almost any position, size, or scale in 256 colors.
This acousto-optic laser projection system works by a raster imaging
process and allows for images to be projected in three dimensional
appearance, and to be active and moving across the full screen size.
Results of Operations
The following discussion sets forth certain financial information
regarding the Company's operations. Because the Company first generated
revenue from its current operations in September 1999, the Company
believes an analysis of results of operations for the quarter ended
September 30, 2000 as compared to the quarter ended September 30, 1999,
would not provide a meaningful comparison. Therefore, the Company's
financial statements, and the following discussion on results of operations
set forth financial information as of the three (3) and nine (9) month
periods ended September 30, 2000, and as of the year ended December 31, 1999.
These figures are based on the consolidated operations of all of the
Company's subsidiaries and should be read in conjunction with the audited
financial statements and notes thereto included in our annual report on
Form 10-KSB for the fiscal year ended December 31, 1999; and should
further be read in conjunction with the financial statements included
in this report.
The Company generated sales of $550,907 and $1,635,045 for the
three and nine month periods ended September 30, 2000, respectively.
These amounts represent an increase in sales from the $1,061,572
generated for the fiscal year ended September 30, 1999. A corollary
to the Company's increased sales is increased expenses, which were
$609,596 for the quarter ended September 30, 2000, and $1,756,553
for the nine months ended September 30, 2000. The expenses incurred
for the fiscal year ended December 31, 1999, were $870,743. These
sales and expenses resulted in the Company's loss for the quarter
and nine months ended September 30, 2000, of $349,001 and $1,859,456,
respectfully, as compared to the loss for the year ended December 31,
1999, of $104,376.
The Company's accounts payable and accrued decreased slightly to
$618,522 as of September 30, 2000, as compared to $641,171 as of
December 31, 1999. As of September 30, 2000, loans payable had been
eliminated from December 31, 1999 balance of $86,401. These decreased
balances reflect the Company's goal of reducing debt, especially to
its vendors and contractors.
Liquidity and Capital Resources
The Company's current assets, as of September 30, 2000, totaled
$2,379,872, as compared to $1,381,544 as of December 31, 1999.
Included in the current assets as of September 30, 2000 are accounts
receivable of $2,344,817. The increase is due to the Company's
intensified sales efforts. The bulk of this amount, $2,152,434,
is due from the sole distributor. As a result of a since resolved
dispute between the Company and this distributor, the credit has been
extended on this balance which is to be paid in full on or before
June 30, 2001.
Capital assets increased to $1,179,861 as of September 30,
2000 compared to $656,045 as of December 31, 1999. This increase
is attributable to the Company's increased focus on acquiring and
developing equipment for its technologies.
The Company's intangible assets increased materially when the
Company acquired Exclusive Advertising as a subsidiary. This
acquisition brought the Company intangible assets of $3,455,204,
whereas as of December 31, 1999, no intangible assets were possessed.
These intangible assets include goodwill of $2,500,000, which arose
when the Company issued the owners of Exclusive Advertising 500,000
shares of its common stock, valued at $5.00 per share. An additional
$955,204 of intangible assets derive from patents owned by the Company's
other subsidiary, Laser Show Systems (UK).
Total liabilities of $926,439 as of September 30, 2000 remained
relatively flat as compared to $872,665 as of December 31, 1999.
Shareholder's equity as of September 30, 2000, was $6,088,498, as
compared to $6,437,934 as of June 30, 2000, and $1,164,924 as of December
31, 1999. These increases are largely due to issuances of shares in the
quarter ended June 30, 2000 related to the Company's settlement of
litigation and its acquisitions of Exclusive Advertising and Laser Show
Systems (UK). Also in the quarter ended June 30, 2000, the Company
agreed to settle a $3.1 million debt to a corporate shareholder in
exchange for non-redeemable, non-convertible, preferred shares.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the quarter for which this
report is filed.
The following exhibits are attached hereto.
3.1 * Articles of Incorporation
3.2 * Bylaws.
27 ? Financial Data Schedule for the quarter ended September 30, 2000.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the Registrant has duly caused this
Quarterly Report on Form 10-QSB to be executed on its behalf by the
undersigned, hereunto duly authorized.
LIGHT MANAGEMENT GROUP, INC.
/s/ Donald Iwacha
President
Dated: November 20, 2000
INDEX TO EXHIBITS
Exhibits marked with an asterisk have been filed previously with the
Commission and are incorporated herein by reference.
EXHIBIT PAGE
NO. NO. DESCRIPTION
3.1 * Articles of Incorporation
3.2 * Bylaws.
27 ? Financial Data Schedule for the quarter ended September 30,
2000.
Exhibit 27
Financial Data Schedule