UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: September 30, 1998 Commission File Number: 0-24687
------------------ -------
SkyLynx Communications, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
COLORADO 84-1360029
- ------------------------------- ---------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
103 Sarasota Quay, Sarasota, Florida 34236
---------------------------------------------------
(Address of principal executive offices) (Zip code)
(941) 366-4747
----------------------------------------------------
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate by check 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 the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common stock, $.001 par value 9,531,186
- ------------------------------ ---------
Class Number of shares outstanding at November 12, 1998
- --------------------------------------------------------------------------------
This document is comprised of 15 pages.
1
<PAGE>
FORM 10-QSB
3RD QUARTER
INDEX
Page
----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements *
Condensed, consolidated balance sheet as of
September 30, 1998 (Unaudited)............................. 3
Condensed, consolidated statements of operations -
Three and nine months ended September 30, 1998
and 1997, and September 23, 1996, (inception)
through September 30, 1998 (Unaudited)..................... 4
Condensed, consolidated statements of cash flows -
Nine months ended September 30, 1998 and 1997,
and September 23, 1996 (inception)
through September 30, 1998 (Unaudited)................... 6
Notes to condensed, consolidated financial statements
(Unaudited).............................................. 7
Item 2. Plan of operation..................................... 11
PART II - OTHER INFORMATION......................................... 13
Item 1. Legal Proceedings
Item 2. Changes In Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters To A Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures..................................................... 15
* The accompanying financial statements are not covered by an Independent
Certified Public Accountant's report.
2
<PAGE>
Part I. Item 1. Financial information
SKYLYNX COMMUNICATIONS, INC.
(A Development Stage Company)
Condensed, Consolidated Balance Sheet
(Unaudited)
September 30, 1998
ASSETS
Cash............................................................... $ 892,516
Inventory.......................................................... 318,952
Due from employees................................................. 18,492
Deposits and prepaid expenses...................................... 28,644
Construction in progress........................................... 856,394
Property and equipment, less accumulated depreciation of $37,470... 677,783
Organization costs, less accumulated amortization of $625.......... 1,875
-----------
TOTAL ASSETS $ 2,794,656
===========
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable................................................ $ 90,155
Accrued payroll taxes........................................... 43,188
-----------
TOTAL LIABILITIES 133,343
===========
SHAREHOLDERS' EQUITY (Note E)
Preferred stock, $.01 par value, 50,000,000 shares authorized,
886,650 shares issued and outstanding........................ 8,867
Common stock, $.001 par value, 150,000,000 shares authorized,
9,531,186 shares issued and outstanding...................... 9,531
Additional paid-in capital...................................... 5,116,026
Deficit accumulated during development stage.................... (2,473,111)
-----------
TOTAL SHAREHOLDERS' EQUITY 2,661,313
-----------
$ 2,794,656
===========
See accompanying notes to condensed, consolidated financial statements
3
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A Development Stage Company)
Condensed, Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
September
23, 1996
Three months ended Nine months ended (Inception)
September 30, September 30, through
----------------------- ---------------------- September 30,
1998 1997 1998 1997 1998
--------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
REVENUES............................... $ 1,124 $ - $ 1,124 $ - $ 1,124
COSTS AND EXPENSES
Consulting, related parties
(Note B)............................ 716,897 8,938 716,897 8,938 725,835
Consulting, other..................... 32,000 - 120,569 - 120,569
General and administrative............ 447,436 - 1,097,750 - 1,097,750
Depreciation and
amortization........................ 12,615 - 54,512 - 54,512
Selling............................... 46,217 - 58,519 - 58,519
Write-off advances to
merger candidate.................... - - 36,500 - 36,500
Write-off license rights.............. - - 83,333 - 83,333
Other................................. 30,485 - 42,423 - 42,423
----------- -------- ----------- ------- -----------
Operating Loss (1,284,526) (8,938) (2,209,379) (8,938) (2,218,317)
----------- -------- ----------- ------- -----------
OTHER INCOME (EXPENSE)
Interest income....................... 6,812 - 18,964 - 18,964
Interest expense...................... - - (3,942) - (3,942)
----------- -------- ----------- ------- -----------
LOSS BEFORE
INCOME TAXES (1,277,714) - (2,194,357) - (2,203,295)
----------- -------- ----------- ------- -----------
INCOME TAX BENEFIT
(EXPENSE) (Note F)
Current............................... 412,702 2,253 708,777 2,253 711,030
Deferred.............................. (412,702) (2,253) (708,777) (2,253) (711,030)
----------- -------- ----------- ------- -----------
NET LOSS $(1,277,714) $ (8,938) $(2,194,357) $(8,938) $(2,203,295)
=========== ======== =========== ======= ===========
</TABLE>
See accompanying notes to condensed, consolidated financial statements
4
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A Development Stage Company)
Condensed, Consolidated Statements of Operations, Continued
(Unaudited)
<TABLE>
<CAPTION>
September
23, 1996
Three months ended Nine months ended (Inception)
September 30, September 30, through
----------------------- ---------------------- September 30,
1998 1997 1998 1997 1998
--------- -------- --------- -------- ---------
<S> <C> <C> <C> <C> <C>
Basic weighted
common shares
outstanding 9,200,265 6,875,000 8,925,790 6,875,000 7,947,829
----------- --------- ----------- --------- -----------
Basic (loss) per
common share $ (0.14) $ * $ (0.24) $ * $ (0.28)
----------- --------- ----------- --------- -----------
NET LOSS
APPLICABLE
TO COMMON
SHAREHOLDERS $(1,277,714) $ 8,938 $(2,202,564) $ 8,938 $(2,211,502)
----------- --------- ----------- --------- -----------
Diluted (loss) per
common share $ (0.14) $ * $ (0.25) $ * $ (0.28)
----------- --------- ----------- --------- -----------
</TABLE>
* Less than $0.01 per share
See accompanying notes to condensed, consolidated financial statements
5
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
Condensed, Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended September 23, 1996
-------------------------- (inception)
September 30, Through
-------------------------- September 30,
1998 1997 1998
----------- -------- -----------
<S> <C> <C> <C>
NET CASH (USED IN)
OPERATING ACTIVITIES $(1,973,745) $ - $(1,965,696)
----------- -------- -----------
INVESTING ACTIVITIES
Acquisition of property and equipment.... (1,042,248) - (1,042,248)
----------- -------- -----------
NET CASH (USED IN)
INVESTING ACTIVITES (1,042,248) - (1,042,248)
----------- -------- -----------
FINANCING ACTIVITIES
Recapitalization......................... - - 620,061
Proceeds from the issuance of stock...... 3,440,877 - 3,440,877
Offering costs........................... (60,478) - (60,478)
Principal debt payments.................. (100,000) - (100,000)
----------- -------- -----------
NET CASH PROVIDED BY
FINANCING ACTIVITIES 3,280,399 - 3,900,460
----------- -------- -----------
NET INCREASE (DECREASE) IN CASH............ 264,406 - 892,516
Cash, beginning of period.................. 628,110 - -
----------- -------- -----------
CASH, END OF PERIOD........................ $ 892,516 $ - $ 892,516
=========== ======== ===========
SUPPLEMENTARY DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid for interest................... $ 3,709 $ - $ 3,709
=========== ======== ===========
Cash paid for income taxes............... $ - $ - $ -
=========== ======== ===========
NONCASH INVESTING AND FINANCING ACTIVITIES
Debt assumed for the acquisition of
equipment.............................. $ - $ - $ 482,299
=========== ======== ===========
Common stock issued in exchange for
property............................... $ 47,100 $ - $ 47,100
=========== ======== ===========
Common stock issued in exchange for
license rights......................... $ - $ - $ 85,202
=========== ======== ===========
</TABLE>
See accompanying notes to condensed, consolidated financial statements
6
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1998
Note A: Basis of presentation
The Company is in the development stage and its consolidated financial
statements have been prepared in accordance with Statement of Financial
Accounting Standards No. 7. The consolidated financial statements include the
accounts of SkyLynx Communications, Inc. and its wholly owned subsidiary,
SkyLynx Express Holdings, Inc. All material intercompany accounts and
transactions have been eliminated.
The financial statements presented herein have been prepared by the Company in
accordance with the accounting policies in its annual audited financial
statements dated December 31, 1997 reported in its Form 10-SB and should be read
in conjunction with the notes thereto.
In the opinion of management, all adjustments (consisting only of normal
recurring adjustments) which are necessary to provide a fair presentation of
operating results for the interim period presented have been made. The results
of operations for the periods presented are not necessarily indicative of the
results to be expected for the year.
Interim financial data presented herein are unaudited.
Note B: Related party transactions
During the three and nine months ended September 30, 1998, the Company paid an
affiliate $222,194 and $757,245, respectively, for the construction of wireless
data transmission plants in California and Florida. The $757,245 is included in
the accompanying consolidated financial statements as construction in progress.
At September 30, 1998, the Fresno transmission plant was operational and the
Tampa transmission plant was under construction with initial operations planned
for December 1998.
During the three months ended September 30, 1998, the Company paid an affiliate
$157,817 for routers and radio inventory.
During the three months ended September 30, 1998, the Company issued 661,897
shares of its $.001 par value common stock in exchange for consulting services
valued at $716,897.
As of September 30, 1998, employees were indebted to the Company a total of
$18,492 for payroll taxes not withheld. The $18,492 is included in the
accompanying financial statements as due from employees.
7
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1998
Note C: Construction in progress, property and equipment
Construction in progress
During the three months ended September 30, 1998, the Company's transmission
plant in Fresno, California became operational. The Fresno plant supports five
wireless asymmetrical areas of coverage providing service to a 40-mile area. The
Tampa, Florida plant is expected to become operational by December 1, 1998. The
Tampa plant will support a two-way wireless symmetrical network in the Tampa,
St. Petersburg, and Clearwater area.
Property and equipment
June 30, 1998
Communications equipment.......................... $ 482,299
Office equipment.................................. 144,601
Leasehold improvements............................ 88,353
715,253
Less: accumulated depreciation.................... (37,470)
$ 677,783
===========
Note D: Note payable
Effective December 16, 1997, the Company assumed an affiliate's promissory note
payable totaling $100,000, and accrued interest of $3,126. The note bears
interest at 7.50 percent, is unsecured and is convertible into 2,564 shares of
the Company's $.001 par value common stock at the option of the holder. The note
and related accrued interest was paid in full during the nine months ended
September 30, 1998.
8
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED, CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1998
Note E: Shareholders' equity
Unit offering
Beginning in May 1998, the Company, through a private placement, offered
3,750,000 units to qualified investors, for $4 per unit, through it's officers
and directors on a "best efforts" basis. Each unit consisted of one share of
Series A convertible preferred stock, one Class A warrant and one Class B
warrant. The Company's Series A convertible, preferred stock, authorized
50,000,000 shares, has a par value of $.01 per share and a dividend rate of 10
percent. Each share of preferred stock is convertible into one share of the
Company's $,001 per share common stock at the option of the shareholder. The
option may be exercised after one year from the date of issue, upon effective
registration of the underlying common shares, or automatically upon the earlier
of (1) the third anniversary of the date of issue, (2) the Company's common
stock trades above $6 per share for 10 consecutive trading days. Upon
liquidation, holders of preferred shall be entitled to receive, pro rata, cash
or assets equal to $4.00 per share of preferred stock prior to any distribution
to common shareholders. Each Class A warrant entitles the holder to purchase one
share of common stock at $7.50 per share beginning one year from the date of
issuance or beginning on the effective date of registration of the underlying
common shares, whichever comes first. Each Class B warrant entitles the holder
to purchase one share of common stock at $10 per share beginning one year from
the date of issuance or beginning the effective date of registration of the
underlying common shares, whichever comes first. Both the Class A and Class B
warrants expire three years from the date of issuance. The Company may, under
certain circumstances, redeem all of the outstanding Class A and Class B
warrants upon thirty days written notice at $.01 per warrant.
As September 30, 1998, 886,650 units had been sold for $3,281,237, after
deducting offering costs of $265,363.
One for 13 reverse stock split
On January 23, 1998, the shareholders of the Company approved a one for 13
reverse stock split. The accompanying financial statements have been
retroactively restated to give effect to the stock split.
Note F: Income taxes
The Company records its income taxes in accordance with Statement of Financial
Accounting Standard No. 109, "Accounting for Income Taxes". The Company incurred
net operating losses during the three months and nine months ended September 30,
1998 resulting in a deferred tax asset, which was fully allowed for by the
valuation allowance; therefore, the net benefit and expense result in $-0-
income taxes.
9
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1998
Note G: Commitments and contingencies
Commitments
The Company is a party to various operating leases for office space, office
equipment, rooftop space for its transmitters, and airspace.
Future minimum payments required under the leases, as of September 30, are as
follows:
2000.............................................................. $ 151,321
2001.............................................................. $ 134,974
2002.............................................................. $ 113,246
2003.............................................................. $ 55,047
Contingently issuable shares
On May 11, 1998, the Company completed an asset purchase. The assets included
property and equipment, including leases covering two MDS channels granted under
licenses issued by the Federal Communications Commission within the Fresno,
California geographical area. The purchase price included 25,000 shares of the
Company's common stock issuable upon the Fresno operations achieving operating
profit of $850,000 in one year.
Legal proceeding
On October 2, 1998, the Company filed a civil action in the United States
District Court for the Central District of Florida against NST and Mr. Eduardo
Moura ("Moura"), individually, in which the Company has alleged claims based
upon breach of contract, fraud in the inducement, breach of fiduciary duty and
tortious interference with business relations and prospective business
advantage. It is to be anticipated that, in their responsive pleading, NST and
Moura will likely assert counter claims against the Company for sums due and
owing under the Project Agreements between the Company and NST covering the
Fresno and Tampa Networks, breach of the License Agreement and infringement upon
NST's technology. No impact from this legal proceeding has been included in the
accompanying consolidated financial statements.
Note H: Subsequent events
Following September 30, 1998, the Company sold an additional 148,290 units for
gross proceeds of $593,160.
10
<PAGE>
Part I. Item 2. Plan of operation
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
September 30, 1998
PLAN OF OPERATION
The Company is in the development stage in accordance with Financial Accounting
Board Standard No. 7. The Company's plan for the next twelve months is to focus
on efforts to expand its existing networks, and purchase and/or lease wireless
frequencies for use in connection with the development and deployment of two-way
wireless data networks and undertake strategic acquisitions. The Company is
currently servicing commercial customers in its Fresno network, and intends to
service its commercial customers on the Tampa network in December 1998. The
Company also plans to development networks in Seattle, Washington; San Diego and
Bakersfield, California; Sarasota, Jacksonville, and Ft. Lauderdale, Florida.
The Company plans on incurring expenditures of approximately $3,200,000 for the
purchase of property and equipment during the next twelve months. At September
30, 1998 the Company had 19 employees and anticipates increasing the number of
employees in the next twelve months to 50.
RESULTS OF OPERATIONS
During the nine months ended September 30, 1998, the Company incurred net losses
of $2,194,357 through expenses, principally salaries and professional costs,
related to completing the acquisition of SkyLynx Express Holdings, Inc. and its
efforts to purchase wireless frequencies for use in connection with the
development and deployment of two-way wireless data networks and the development
of networks in Tampa, Florida and Fresno, California. During the corresponding
period of the prior year, the Company incurred net losses of $8,938. The Company
had limited operating activities and few transactions prior to 1998.
LIQUIDITY AND CAPITAL RESOURCES
Since its inception, the Company has relied principally upon the proceeds of
private equity financings to provide working capital. During the period ended
December 31, 1997, the Company sold an aggregate of 781,805 shares of its common
stock in private offerings, and realized proceeds, net of offering costs, of
$963,102. During the period ended September 30, 1998, the Company sold 886,650
units in a private placement offering of its $.01 par value preferred stock for
net proceeds of $3,281,237, after deducting offering costs of $265,363.
Following the receipt of the funds raised through the offering, the Company
repaid a note payable totaling $100,000 and accrued expenses of approximately
$350,000. In addition, the Company purchased $318,952 of routers and radios
inventory for its customer locations, $720,905 of network computer equipment,
and made payments totaling $321,343 towards construction in progress of the
Tampa network.
At September 30, 1998, the Company had net working capital of $759,173,
consisting of cash on hand of $892,516 less current liabilities of $133,343. The
Company also raised an additional $593,160 through its private placement
offering following September 30, 1998, which along with its cash on hand, is
expected to satisfy the Company's cash requirements through January 31, 1999.
11
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
September 30, 1998
LIQUIDITY AND CAPITAL RESOURCES, CONTINUED
The Company will require additional capital for the acquisition of licensed or
leased wireless spectrum as well as the deployment of more wireless data
networks. There currently exists no agreements, arrangements, understandings, or
commitments for any additional financing. Accordingly, there can be no assurance
that additional financing can be obtained, or if obtained, the timing and terms
thereof.
The Company has no line-of-credit nor has it obtained long-term debt financing.
Any additional equity financing may be dilutive to the Company's existing
shareholders' and debt financing, if available, may involve pledging some or all
of the Company's assets and may contain restrictive covenants with respect to
raising future capital and other financial and operational matters. If the
Company is unable to obtain additional financing as needed, the Company may be
required to reduce the scope of its operations, which would have a material
adverse affect upon the Company's business, financial condition and results of
operations.
YEAR 2000 COMPLIANCE
Year 2000 compliance is the ability of computer hardware and software to respond
to the problems posed by the fact that computer programs traditionally have used
two digits rather than four digits to define an applicable year. As a
consequence, any of the Company's computer programs that have date-sensitive
software may recognize a date using the"00" as the year 1900 rather than the
year 2000. This could result in a system failure or miscalculations causing
interruption of operations including temporary inability to send invoices,
engage in normal business activities, or to operate equipment such as telephone
systems, facsimile machines, and network operations equipment. The Company plans
to work with its equipment suppliers to confirm that this equipment is Year 2000
compliant. The Company believes this review will be completed during 1999 and
that the cost of this review will not be material. Until this review has been
completed, the Company has no estimate of the cost to correct any deficiency in
Year 2000 compliance for this equipment.
12
<PAGE>
PART II - OTHER INFORMATION
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
September 30, 1998
Item 1 - Legal proceedings.
On October 2, 1998, the Company filed a civil action in the United States
District Court for the Central District of Florida against NST and Mr.
Eduardo Moura ("Moura"), individually, in which the Company has alleged
claims based upon breach of contract, fraud in the inducement, breach of
fiduciary duty and tortious interference with business relations and
prospective business advantage. It is to be anticipated that, in their
responsive pleading, NST and Moura will likely assert counter claims
against the Company for sums due and owing under the Project Agreements
between the Company and NST covering the Fresno and Tampa Networks, breach
of the License Agreement and infringement upon NST's technology.
If necessary, the Company intends to fully prosecute its claims against NST
and Moura and, if necessary, defend against any counter claims that may be
asserted. Nevertheless, there can be no assurance that the Company will be
successful in asserting its claim or successful in defending against
possible counter claims that may be asserted by NST. Even if the Company is
successful in those efforts, the cost could be substantial and the
Company's management may be required to devote a substantial amount of time
to the litigation. Management of the Company assessed these risks prior to
commencing the NST litigation and has made the business judgement to
nevertheless proceed with the civil action.
The Company is currently involved in two legal proceedings arising out of
the same operative set of facts. The first case was brought by the Company,
as Plaintiff, against James Gordon, as Defendant, in the District Court for
the County of Boulder, State of Colorado, Case No. 98-CV1745; and the
second case was brought by James Gordon, as Plaintiff, against the Company
and Gary Brown, the Company's former president, in the Circuit Court for
the 12th Judicial District in and for Sarasota County, Florida, Case No.
98-6394CA. Both cases arise out of the Company's 1997 Private Offering in
which Mr. Gordon tendered a subscription but failed to deliver the
necessary consideration. As a result, the Company rejected the
subscription. In the case brought by the Company in Colorado, the Company
is seeking declaratory judgement that it is not obligated to issue the
disputed approximately 180,000 shares of Common Stock arising out of the
failed subscription. In the Sarasota proceeding, Mr. Gordon is seeking
specific performance of that subscription and the issuance of approximately
180,000 shares of the Common Stock. The Company believes that there is
absolutely no basis in fact or law to support Mr. Gordon's claim and that
it is wholly without merit and, if necessary, the Company will vigerously
defend both actions.
13
<PAGE>
SKYLYNX COMMUNICATIONS, INC.
(A DEVELOPMENT STAGE COMPANY)
September 30, 1998
Item 1 - Legal proceedings, continued.
The Company is also involved in another civil action brought by Paradise
Cable, Inc, as Plaintiff, against the Company, Gary Brown, Eduardo J. Moura
and Kenneth L. Marshall in the Circuit Court for the 12th Judicial district
in and for Sarasota County, Florida, Civil Action No. 98-0166. This case
arises out of prior transactions between Paradise Cable, Inc. and NST for
the construction of a wireless network in the Tampa, Florida area. The case
also includes claims involving the Company and two of its principals
alleging claims arising out of the Company's acquisition of SkyLynx Express
Holdings, Inc. from NST and related matters. Paradise Cable, Inc. is a
wholly owned subsidiary of Cable Corporation of America, Inc. ("CCA"),
which is involved in bankruptcy proceedings in which the Company, Mr.
Marshall and Mr. Brown are creditors. The Company views the litigation as
having been brought in a retaliatory manner in an attempt to create
leverage in the bankruptcy proceeding. The Company is confidant that there
is absolutely no merit to the claims and intends to vigorously defend the
actions. The Company believes that the likelihood of a material adverse
outcome from this litigation is extremely remote.
Item 2 - Changes in securities.
None.
Item 3 - Defaults upon senior securities.
None.
Item 4 - Submission of matters to a vote of security holders.
None.
Item 5 - Other information.
None.
Item 6 - Exhibits and reports on Form 8-K.
Exhibits: None.
Reports on Form 8-K: None.
14
<PAGE>
SIGNATURES
The financial information furnished herein has not been audited by an
independent accountant; however, in the opinion of management, all adjustments
(only consisting of normal recurring accruals) necessary for a fair presentation
of the results of operations for the three months and nine months ended
September 30, 1998 have been included.
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SKYLYNX COMMUNICATIONS, INC.
(Registrant)
BY: /s/ Jeff Mathias
DATE: October 13, 1998 ---------------------------------
Jeff Mathias, President
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
</LEGEND>
<CIK> 0001059620
<NAME> SkyLynx Communications, Inc.
<MULTIPLIER> 1
<CURRENCY> U.S.DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<EXCHANGE-RATE> 1
<CASH> 892516
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 318952
<CURRENT-ASSETS> 0
<PP&E> 715253
<DEPRECIATION> (37470)
<TOTAL-ASSETS> 2794656
<CURRENT-LIABILITIES> 133343
<BONDS> 0
0
8867
<COMMON> 9531
<OTHER-SE> 2642915
<TOTAL-LIABILITY-AND-EQUITY> 2794656
<SALES> 1124
<TOTAL-REVENUES> 20088
<CGS> 0
<TOTAL-COSTS> 2209379
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3942
<INCOME-PRETAX> (42840)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2194357)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2194357)
<EPS-PRIMARY> (0.25)
<EPS-DILUTED> (0.25)
</TABLE>
