LONDON SOFTWARE INDUSTRIES INC
10-Q, 2000-11-08
PREPACKAGED SOFTWARE
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                         UNITED STATES
                  SECURITIES EXCHANGE COMMISSION
                      WASHINGTON, D.C. 20549

                           FORM 10-QSB

-----------------------------------------------------------------

[X]  Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

        For the quarterly period ended July 31, 2000

-----------------------------------------------------------------

                  LONDON SOFTWARE INDUSTRIES INC.
        ----------------------------------------------------
       (Exact name of registrant as specified in its charter)


        DELAWARE                            13-4047693
        --------                           ------------
(State or other jurisdiction             (I.R.S. Employer
of incorporation or organization)        Identification No.)

52-30 Pacific Concourse Drive
Suite 350
Los Angeles, California                       90045
----------------------------------            -----
(Address of principal executive offices)    (Zip Code)


Registrant's telephone number              310-643-4467
                                          --------------

Check here whether the issuer (1) has filed all reports required
to be filed by Sections 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_______

As of July 31, 2000, the following shares of the Registrant's
common stock were issued and outstanding:

         6,000,000 shares of voting common stock

<PAGE>
<PAGE>

INDEX

PART I - FINANCIAL INFORMATION


Item 1.   Financial Statements . . . . . . . . . . . . . . . . .3
          CONDENSED CONSOLIDATED BALANCE SHEET . . . . . . . . .4
          CONDENSED CONSOLIDATED INCOME STATEMENT. . . . . . . .5
          STATEMENT OF CASH FLOWS. . . . . . . . . . . . . . . .6
          Note 1.   NATURE OF BUSINESS AND SIGNIFICANT
                    ACCOUNTING POLICIES. . . . . . . . . . . . .8
          Note 2.   USE OF OFFICE SPACE. . . . . . . . . . . . .9
          Note 3.   EARNINGS PER SHARE . . . . . . . . . . . . .9
          Note 4.   LIQUIDITY . . . . . . . . . . . . . . . . . 9
          Note 5.   SUBSEQUENT EVENTS . . . . . . . . . . . . .10

Item 2.   Management's Discussion And Analysis or Plan of
          Operations. . . . . . . . . . . . . . . . . . . . . .11

PART II - OTHER INFORMATION

Item 1.   Legal Proceedings. . . . . . . . . . . . . . . . . . 16

Item 2.   Changes in Securities. . . . . . . . . . . . . . . . 16

Item 3.   Defaults upon Senior Securities. . . . . . . . . . . 16

Item 4.   Submission of Matters to a Vote of
          Security Holders . . . . . . . . . . . . . . . . . . 17

Item 5.   Other information. . . . . . . . . . . . . . . . . . 17

Item 6.   Exhibits and Reports on Form 8-K . . . . . . . . . . 17


SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . 18

<PAGE>
<PAGE>

PART I - FINANCIAL INFORMATION


To the Board of Directors of LONDON SOFTWARE INDUSTRIES INC.

We have reviewed the accompanying balance sheet of LONDON
SOFTWARE INDUSTRIES INC., (a development stage company) as of
July 31, 2000 and the related statements of loss and accumulated
deficit, and cash flows for the three months then ended, in
accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public
Accountants.  All information included in these financial
statements is the representation of the management of LONDON
SOFTWARE INDUSTRIES INC.

A review consists principally of inquiries of Company personnel
and analytical procedures applied to financial data.  It is
substantially less in scope than an audit in accordance with
generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statements
taken as a whole.  Accordingly, we do not express such an
opinion.

Based on our review, we are not aware of any material
modifications that should be made to the accompanying financial
statements in order for them to be in conformity with generally
accepted accounting principles.

Graf Repetti & Co., LLP
Dated: New York, New York
       October 31, 2000

                LONDON SOFTWARE INDUSTRIES INC.
              CONDENSED CONSOLIDATED BALANCE SHEET
<TABLE>
                                      As Of            As Of
                                   July 31, 2000   Apr. 30, 2000
                                    (Unaudited)      (Audited)
                                 --------------------------------
<S>                                <C>              <C>
ASSETS
Current Assets
Cash                                     $0              $0
Other Current Assets                      0               0
                                   _________         ________
Total Current Assets                      0               0
Other Assets                              0               0
                                   _________         ________
TOTAL ASSETS                             $0              $0

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities
Accounts Payable                         $0              $0
Accrued Expenses                     18,313          15,550
                                   _________         ________
Total Current Liabilities            18,313          15,550
Loan Payable - See Note 6            26,600          23,300
                                   _________         ________
Total Liabilities                    44,913          38,850

Stockholders' Equity
 Common Stock, $.001 par value,
 Authorized 25,000.000 Shares;
 Issued and Outstanding
 6,000,000 Shares                     6,000           6,000

Additional Paid in Capital          315,500         290,500
Deficit Accumulated During the
Development Stage                  (366,413)       (335,350)
                                   _________        ________

Total Stockholders' Equity          (44,913)        (38,850)

TOTAL LIABILITIES AND
 STOCKHOLDERS' EQUITY                    $0              $0
</TABLE>

The accompanying notes and accountant's report are an integral
part of these financial statements.
<PAGE>
<PAGE>

                   LONDON SOFTWARE INDUSTRIES INC.
           CONDENSED CONSOLIDATED STATEMENT OF INCOME (LOSS)

<TABLE>
                    For the 3 Mos Ended    For the 3 Mos Ended
                          July 31               January 31
                     2000         1999       2000         1999
                    ------------------------------------------
<S>                 <C>         <C>          <C>          <C>

TOTAL REVENUES:     $     0     $    0             0        N/A

OPERATING EXPENSES:
 Accounting           1,750      1,500         1,500        N/A
 Legal                2,500      2,500         2,500
 Rent Expense (Note 2)1,800      1,800         1,800
 Filing Fee              13         13            13
 Contributed Svcs
       (Note 6)      25,000     25,000        25,000
                    ________   _______       ________   ________

NET LOSS            (31,063)   (30,813)      (30,813)      N/A

NET LOSS PER SHARE     (.01)      (.01)         (.01)

Weighted Average
  Number of Shares
  Outstanding        6,000,000 6,000,000     6,000,000


</TABLE>

The accompanying notes and accountant's report are an integral
part of these financial statements.

<PAGE>
<PAGE>
                LONDON SOFTWARE INDUSTRIES INC.
              STATEMENT OF CASH FLOWS (unaudited)
<TABLE>
                            For the 3 mos       For the 3 mos
                                Ended               Ended
                                 to                   to
                             July 31, 2000     January 31, 2000
                         ________________________________________
<S>                             <C>                <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net Loss                        $(31,063)           $(30,813)

Adjustments to Reconcile Net Loss
to Net Cash Used in operating
Activities:
Changes in Assets and Liabilities
Increase/(Decrease) in Accounts
Payable and Accrued Expenses       2,763               3,963

Additional Paid In Capital
 Contributed by Shareholders      25,000              26,800
                                 ________           _________

Total Adjustments                 27,763              30,763

Net Cash Used in
Operating Activities             ( 3,300)            (    50)

CASH FLOWS FROM FINANCING
ACTIVITIES:
Increase in Loan Payable           3,300                  50

Net Cash Provided
by Financing Activities            3,300                  50

Net Change in Cash                     0                   0
Cash at Beginning of Period            0                   0
Cash at End of Period             $    0                   0

Supplemental Disclosure of
Cash Flow Information
Cash Paid During the Period for
Interest Expense                       0                   0
Corporate Taxes                   $    0                   0

</TABLE>
The accompanying notes and accountant's report are an integral
part of these financial statements.
<PAGE>
<PAGE>
                 LONDON SOFTWARE INDUSTRIES INC.
                  NOTES TO FINANCIAL STATEMENTS
                          JULY 31, 2000

NOTE 1 - NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

A.  Description of Company

LONDON SOFTWARE INDUSTRIES INC.("the Company") is a for-profit
corporation, incorporated under the laws of the State of Delaware
on December 31, 1996.  London Software Industries Inc., is a
developmental stage company whose principal objective
is to create and market a portfolio of CD Roms to include home
shopping CD catalogues, literary works, reference books, virtual
reality museums, data bases, city guides and teaching aides.

B. Basis of Presentation

Financial statements are prepared on the accrual basis of
accounting.  Accordingly, revenue is recognized when earned and
expenses when incurred.

C. Use of Estimates

The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect certain reported
amounts and disclosures.  Accordingly, actual results could
differ from these estimates.  Significant estimates in the
financial statements include the assumption that the Company will
continue as a going concern. See Note 4.

D. Issuance of Common Stock

Consideration for issuance of the 4,000,000 shares of common
stock on April 25, 1997 consisted of intellectual property
including the idea of starting up the company.  This
consideration was valued at the par value of the stock for lack
of an objective fair market value.

Consideration for issuance of the 3,998,998 shares of common
stock on January 3, 1999 consisted of payment by the shareholder
of research and development and consultant fees in the amount of
$4,000.

Consideration for issuance of the 4,000,000 shares of common
stock on February 2, 1999 consisted of $20,000.


NOTE 2 - USE OF OFFICE SPACE

The Company uses office space for its executive offices at two
locations, both of which it receives from two of its shareholders
at no cost.  The fair market value of the 1,000 square foot
office at International House, 31 Church Road, Hendon, London, UK
is $300 per month.  Use of this office space began August 10,
1998.  The fair market value of the 600 square foot office at 52-
30 Pacific Concourse Drive, Suite 350, Los Angeles, California is
also $300 per month.  Use of this office space began March 29,
1999.  Before that, the Company used 600 square feet of office
space at 1750 Montgomery Street, San Francisco, California with
fair market value of $300 per month from November 30, 1998 to
March 29, 1999.  Each amount is reflected as an expense with a
corresponding credit to additional paid-in capital.  Beginning
February 1, 2000, Tech Capital Group began paying $300 per month
each for the London and Los Angeles offices. See Note 6.


NOTE 3 - EARNINGS PER SHARE
                                       FOR THE THREE MONTHS ENDED
                                              JULY 31, 2000

                    Net Loss Per Share          $ (0.01)

NOTE 4 - LIQUIDITY

The Company's viability as a going concern is dependent upon
raising additional capital, and ultimately, having net income.
The Company's limited operating history, including its losses and
no revenues, primarily reflect the operations of its early stage.
As a result, the Company had from time of inception to July 31,
2000 no revenue and a net loss from operations of $(366,413).
As of July 31, 2000 the Company had a net capital deficiency
of $(44,913).

The Company requires additional capital principally to meet its
costs for the implementation of its business plan, for general
and administrative expenses and to fund costs associated with the
start up of its telecommunications operations.  It is not
anticipated that the Company will be able to meet its financial
obligations through internal net revenue in the foreseeable
future.  London Software Industries, Inc. does not have a working
capital line of credit with any financial institution.
Therefore, future sources of liquidity will be limited to the
Company's ability to obtain additional debt or equity funding.
See Note 6.


NOTE 5 - CONTRIBUTED SERVICES

On September 26, 1997, two of the Company's officers began
rendering services on behalf of the Company at no cost.  The fair
market value is $4,167 per officer per month.  Each amount is
reflected as an expense with a corresponding credit to additional
paid in capital.


NOTE 6 - LOAN PAYABLE

As of July 31, 2000, Tech Capital Group has paid $26,600 of
expenses on behalf of London Software Industries Inc.  The
president of LSI is a 10% shareholder in Tech Capital Group. Tech
Capital Group will lend up to $65,000 to LSI upon request.  The
loan is not evidenced by a note.  The informal agreement calls
for no payment of interest.  LSI intends to repay the loan out of
any fund raising that it may carry out or when the company
achieves sustainable revenue.

NOTE 7 - NON-CASH FINANCIAL TRANSACTIONS

Non-cash financing transactions consisting of the cost of
contributed services and the related additional paid in capital
contributed by shareholders have been included in expenses and
additional paid in capital, respectively, in the accompanying
financial statements at a value of $25,000 for the three months
ended July 31, 2000.

<PAGE>
<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION

RESULTS OF OPERATIONS

The Company is a developmental stage company and has on operating
history.

Management intends to hold expenses to a minimum and to obtain
services on a contingency basis when possible.  Further, the
Company's directors will forego any compensation until such time
as the Company begins to generate sufficient investment in the
Company to cover such expenses.   However, if the Company engages
outside advisors or consultants in search for business
opportunities, it may be necessary for the Company to attempt to
raise additional funds.   There is no assurance that the Company
will be able to obtain additional funding when and if needed, or
that such funding, if available, can be obtained on terms
acceptable to the Company.

The selection of a business opportunity in which to participate
is complex and risky.  Additionally, as the Company has only
limited resources, it may be difficult to find favorable
opportunities.  There can be no assurance that the Company's
research and selection of CD and DVD products will succeed or be
accepted by the public.  Additionally, the DVD market is highly
undeveloped and there is substantial risk attributed to the
investment and entry into such market.  There is no certainty
that the Company's business will be successful or profitable.
There is also no certainty that the Company will be able to
operate a successful business.  Potential investors are alerted
that the investment in the Company is highly speculative and
involves a high degree of risk.

Because the Company lacks funds, it may be necessary for the
officers and directors to either advance funds to the Company or
to accrue expenses until such time as the Company begins to
generate sufficient income to cover such expenses.  Management
intends to hold expenses to a minimum and to obtain services on a
contingency basis when possible.  Further, the Company's
directors will forego any compensation until such time as the
Company begins to generate sufficient income to cover such
expenses.   However, if the Company engages outside advisors or
consultants in search for business opportunities, it may be
necessary for the Company to attempt to raise additional funds.
There is no assurance that the Company will be able to obtain
additional funding when and if needed, or that such funding, if
available, can be obtained on terms acceptable to the Company.

In the opinion of management, inflation has not and will not have
a material effect on the operations of the Company until such
time as the Company develops material operations.  At that time,
management will evaluate the possible effects of inflation on the
Company as it relates to its business and operations.  The
Company will not borrow funds for the purpose of funding payments
to the Company's promoters, management or their affiliates or
associates.  Any funds borrowed by the Company will be utilized
to pay statutory, legal and accountant fees expended by the
Company.


LIQUIDITY

The Company's viability as a going concern is dependent upon
raising additional capital, and ultimately, having net income.

The Company requires additional capital principally to meet its
costs for the implementation of its business plan, for general
and administrative expenses and to fund costs associated with
research and development of its software.

It is not anticipated that the Company will be able to meet its
financial obligations through internal net revenue in the
foreseeable future.  The Company does not have a working capital
line of credit with any financial institution.  Therefore, future
sources of liquidity will be limited to the Company's ability to
obtain additional debt or equity funding.  The Company
anticipates that its existing capital resources will enable it to
maintain its current implemented operations for at least 12
months, however, full implementation of its business plan is
dependent upon its ability to raise substantial funding.

Currently, the Company has sufficient capital to cover the cost
of its operations for the next twelve (12) months which the
Company foresees will primarily consist of further research of
the Company's concept and also networking and discussions by the
Company's management with individuals and entities involved in
the CD-Rom software development field.  The Company however
believes that it shall require additional capital in order to
implement its business plan once research of its concept is
completed.  It is not anticipated that the Company will be able
to meet its financial obligations through internal net revenue in
the foreseeable future beyond twelve (12) months as the Company
has yet to generate sales of its product or to begin substantial
operations.  Therefore, future sources of liquidity will be
limited to the Company's ability to obtain additional debt or
equity funding. Investors are alerted that the Company does not
have a working capital line of credit with any financial
institution and that there is no guarantee or assurance that the
Company will be able to raise such funds.

In the event the Company needs additional funding, it shall elect
to source funds from its shareholders owning more than 10% of the
Company's common stock and seek funding from such shareholders.
In such event, the Company will re-evaluate its plans and its
proposed operations to determine whether it would be feasible to
continue to implement its business plan.  The Company would not
seek funding beyond its limitations and would ensure that the
Company would operate as efficiently as possible to keep costs as
streamlined as possible.  The Company will not seek funding
beyond that which it foresees it will be able to re-pay over a
period of twelve (12) months.  Should a sudden jump in inflation
occur the company's prices may then have to rise in line with
inflation.

The Company's costs over the past twelve (12) months have been
minimal and related to legal and accounting charges.  Over the
next twelve (12) months, the Company's costs and expenses could
significantly increase as the Company begins to expend sums on
marketing, advertising and software development.


<PAGE>
<PAGE>

PART II - OTHER INFORMATION

Item 1.   Legal Proceedings

There are currently no pending legal proceedings against the
company.


Item 2.   Changes in Securities

There has been no change in the Company's securities since the
filing of its Form 10K.


Item 3.   Defaults upon Senior Securities

There has been no default in the payment of principal, interest,
sinking or purchase fund installment.


Item 4.   Submission of Matters to a Vote of Security Holders

No matter has been submitted to a vote of security holders during
the period covered by this report.


Item 5.   Other information

There is no other information to report which is material to the
company's financial condition not previously reported.


Item 6.   Exhibits and Reports on Form 8-K

There are no Exhibits or reports on Form 8-K attached hereto.

<PAGE>
<PAGE>

SIGNATURES

Pursuant to the requirements of Section 12 of the Securities
Exchange Act of 1934, the registrant has duly caused this
registration statement to be signed on its behalf by the
undersigned, thereunto duly authorized.


LONDON SOFTWARE INDUSTRIES, INC.
-----------------------------------
(Registrant)
Date: November 8, 2000

By: /s/ Alan Bowen
    --------------
    President




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