UNITED STATES SECURITIES AND 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 March 31, 2000
OR
( ) Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the Transition period from to
Commission file number 0-9311
DIGITAL TECHNOLOGIES MEDIA GROUP, INC.
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(Exact name of registrant as specified in its charter)
Delaware 87-0269260
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(State or other jurisdiction (I.R.S. Employer
of incorporation or organization Identification Number
2660 Townsgate Road, Suite 725 Westlake Village, CA 91361
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(Address of principal executive offices) (Zip Code)
(805) 496.2186
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(Registrant's telephone number, including area code)
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(Former name, former address and former fiscal year,if changed since last
report) Indicate by check mark 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 ( ) No (x)
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 subsequent to the distribution of securities under a plan confirmed
by a court. Yes (X) No ( )
As of March 31, 2000, there were 3,790,627 shares of common stock ($.01 par
value) issued and outstanding.
Total sequentially numbered pages in this document: 7
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Digital Technologies Media Group, Inc.
Condensed Consolidated Statements of Loss and Deficit
(Expressed in United States Dollars)
(Unaudited)
Three Months Three Months Year ended
Ended March 31, Ended March 31, December 31,
2000 1999 1999
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Revenues
Sales $ 100,637 $ - $ -
Rentals 12,802 - -
Other 4,569 - -
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118,008 - -
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Expenses
Advertising and promotion 1,477 422 -
Administrative (not reallocated) - - 143,240
Bad debts 19,244 - -
Bank charges and interest 404 - -
Consulting 21,398 - -
Lease payments and service 2,903 - -
Professional fees 43,488 1,320 -
Rent 1,500 2,000 -
Repairs 555 - -
Salaries and benefits 33,060 11,284 -
Stationary and office 3,164 394 -
Telephone 5,046 - -
Travel 2,985 52 -
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135,224 15,472 143,240
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Loss before other item (17,216) (15,472) (143,240)
Other item
Digital Technologies Media Group,
Inc.'s share of subsidiary's loss (19,100) - -
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Net loss $ (36,316) $ (15,472) $ (143,240)
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Deficit, beginning of period $ (1,234,801) $ (1,091,561)
Net loss (36,316) (143,240)
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Deficit, end of period $ (1,271,117) $ (1,234,801)
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Net loss per share, basis and
Diluted (Note 1) $ 0.01 $ 0.04
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See accompanying notes to the financial statements.
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Digital Technologies Media Group, Inc.
Condensed Consolidated Balance Sheet
(Expressed in United States Dollars)
(Unaudited)
March 31, December 31,
2000 1999
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Assets
Current
Cash $ 302,154 $ 74
Receivables 19,961 -
Deposits 689 630
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322,804 704
Investments in subsidiaries - -
Fixed assets 2,011,574 -
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$ 2,334,378 $ 704
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Liabilities
Current
Payables and accruals $ 211,660 $ 127,293
Due to related party - 7,227
Loan payable - related party - 1,000
Pre-petition liabilities 875,549 565,549
Current portion of long term debt 146,400
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1,233,609 701,069
Long term debt 541,400 -
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1,775,009 701,069
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Stockholders' Equity
Capital stock (Note 2) 25,732 25,732
Paid-in capital 1,804,754 508,704
Deficit (1,271,117) (1,234,801)
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559,369 (700,365)
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$ 2,334,378 $ 704
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See accompanying notes to the financial statements.
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Digital Technologies Media Group, Inc.
Condensed Consolidated Statement of Cash Flows
(Expressed in United States Dollars)
(Unaudited)
Three Months Three Months Year ended
Ended March 31, Ended March 31, December 31,
2000 1999 1999
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Increase (decrease) in cash
and cash equivalents
Operating
Net loss $ (36,316) $ (15,472) $ (143,240)
Change in
Receivables (19,961) - -
Deposits (59) - (500)
Payables and accruals 84,367 11,669 130,676
Due to related party (7,227) - -
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20,804 (3,803) (13,064)
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Financing
Proceeds on long term debt - - 5,000
Repayment of long term debt (27,200) - -
Pre-petition liabilities 310,000 5,001 -
Loans payable - pre-petition debt (1,000) - 1,000
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281,800 5,001 6,000
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Investing
Purchase of property and
equipment (524) - -
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(524) - -
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Net increase (decrease) in cash
and cash equivalents 302,080 1,198 (7,064)
Cash and cash equivalents
Beginning of period 74 7,138 7,138
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End of period $ 302,154 $ 8,336 $ 74
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Supplemental schedule of non-cash financing and investing activities:
Advances of long term debt 715,000 - -
Transfer of fixed assets 2,011,279 - -
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See accompanying notes to the financial statements.
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Digital Technologies Media Group, Inc.
Notes to the Consolidated Condensed Financial Statements
(Expressed in United States Dollars)
(Unaudited)
March 31, 2000
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1. General
The unaudited consolidated condensed financial statements have been prepared on
the same basis as the audited financial statements and, in the opinion of
management, reflect all adjustments (consisting of normal recurring adjustments)
necessary for a fair presentation for each of the periods presented. The results
of operations for interim periods are not necessarily indicative of results to
be achieved for full fiscal years.
As contemplated by the Securities and Exchange Commission (SEC) under Rule 10-01
of Regulation S-X, the accompanying consolidated financial statements and
related footnotes have been condensed and do not contain certain information
that will be included in the Company's annual financial statements and footnotes
thereto. For further information, refer to the financial statements and related
footnotes for the year ended December 31, 1999 included in the Company's Annual
Report on Form 10-KSB.
Basis of presentation
The condensed consolidated financial statements include the accounts of Datanet
Information Systems, Inc., its wholly owned subsidiary.
Income taxes
Income taxes for the interim periods were computed using the effective tax rate
estimated to be applicable for the full fiscal year, which is subject to ongoing
review and evaluation by management.
Loss per share
The Company reports earnings per share in accordance with the provisions of SFAS
No. 128, Earnings Per Share. SFAS No. 128 requires presentation of basic and
diluted earnings per share in conjunction with the disclosure of the methodology
used in computing such earnings per share. Basic earnings per share excludes
dilution and is computed by dividing income available to common shares by the
weighted average common shares outstanding during the period. Diluted earnings
per share takes into account the potential dilution that could occur if
securities or other contracts to issue common stock were exercised and converted
into common stock.
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Digital Technologies Media Group, Inc.
Notes to the Condensed Financial Statements
(Expressed in United States Dollars)
(Unaudited)
March 31, 2000
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2. Capital stock 2000 1999
Authorized:
25,000,000 Common shares,
Issued:
3,790,627 Common shares $ 25,732 $25,732
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ITEM 2. MANAGEMENT' S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For the Three Months Ended March 31, 2000
Financial Condition and Results of Operations:
The Company sales activities increased dramatically during the quarter
ended March 31, 2000, even though the Company was still in Bankruptcy
proceedings it had purchased DataNet Information Systems, Inc. Accordingly,
consolidated accounts receivable increased to $19,961, and through the sales of
Debtor Certificates to finance the Company cash increased to $302,154. Also
Investments in subsidiaries via Fixed Assets at cost increased to $2,011,574. In
total combined consolidated assets increased from $704 in December 1999 to
$2,334.378 due to the purchase of DataNet Information Systems, Inc, and the sale
of the Debtors certificates.
Management believes that the Company's working capital resources and
anticipated cash flow will be sufficient to support operations.
PART II. OTHER INFORMATION
ITEM 1. Not applicable except Bankrupcy Proceedings
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
None
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
DIGITAL TECHNOLOGIES MEDIA GROUP, INC.
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(Registrant)
Date: March 31, 2000 /s/ Ely Jay Mandell
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Ely Jay Mandell, President
(Chief Executive Officer,
Chief Financial Officer,)
Bankruptcy Administrator
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