U.S. Securities and Exchange Commission
Washington, DC 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER TO SECTION 13 0R 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1997.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the transition period from ________ to _______ .
Commission File No. 2-90328
SLS Industries, Inc.
(Name of small business issuer in its charter)
Nevada 77-0002526
(State of incorporation) (IRS Employer Id No.)
7223 Parkway Drive Suite 103, Hanover, MD 21076
(Address of Principal Executive Offices) (Zip Code)
(410) 712-4155
Issuer's Telephone Number
Securities registered under 12(b) of the Exchange Act: None
Securities registered under 12(g) of the Exchange Act: Common
Stock, with par value $0.001 per share
Check whether the issuer (1) filed all reports to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months
(or for such shorter period of that the Registrant was required
to file such report(s), and (2) has been subject to such filing
requirement for the past 90 days. Yes No X
Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B is not contained in this form, and
no disclosure will be contained, to the best of Registrant's
knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. Yes No X
As of March 13, 1998, number of shares of Common Stock,
outstanding was 15,589,760
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets
October 31, 1997 (unaudited) and January 31, 1997
Statement of Operations
Three months ended October 31, 1997 (unaudited) and
July 31, 1996 (unaudited)
Statement of Cash Flows
Three and nine Months ended October 31, 1997
(unaudited)
Item 2. Management's discussion and Analysis of Financial
Condition and Results of Operations
During the quarter ended October 31, 1997 there was sufficient
cash on hand to meet the company's ongoing operational needs.
The Company had no sales revenues for the period ended October
31, 1997 as all efforts are focused on developing future product
for sales. All efforts are concentrated on research and
development of products.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
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
Item 6 Exhibits and Reports on Form 8-K
SLS INDUSTRIES, INC
BALANCE SHEET
Oct. 31, 1997 Jan. 31, 1997
ASSESTS
Current Assets
Cash $ 9,792 $331,163
Accounts Receivable 63,908 63,908
Other Current Assets
Loans Receivable 17,513 24,994
Total Current Assets $ 91,213 $421,065
Fixed Assets
Property and Equipment 25,954 6,941
Total Fixed Assets 25.954 6,941
Other Assets
Intangibles 3,107 4,368
TOTAL ASSETS $120,274 $432,374
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Notes Payable $ 33,300 $ 33,300
Due to Officer 125,666 163,286
Due to stockholder 4,900 4,900
Accounts Payable 95,030 22,900
Total Current Liabilities $258,896 $224,484
Equity
Common Stock, par value
$.001 per share,
150,000,000 authorized
14,962,509 outstanding 14,963 14,963
Additional paid in
capital 1,459,852 1,335,652
Accumulated Deficit (1,613,437) (1,142,725)
Total Equity $(138,622) $207,890
TOTAL LIABILITIES & EQUITY $120,274 $491,824
SEE NOTES TO FINANCIAL STATEMENTS
SLS INDUSTRIES, INC
Statement of operations
3 Months Ended
Oct 31, 1997 Oct 31, 1996
Revenues
Sales $ 0 $ 0
Other Income 185 0
Total Revenues $ 185 0
Costs
Cost of Goods Sold 41,174 0
G&A 130,098 27,752
Research & Development 8,427 10,000
Selling Expenses 0 5,483
Total Costs 179,699 43,235
INCOME (LOSS) before taxes (179,514) (43,235)
and extraordinary items
PROVISION FOR INCOME TAXES ------ ------
INCOME (LOSS) before
extraordinary item (179,514) (43,235)
Reduction of Income Taxes
from carry forward of
operating losses ------ ------
NET INCOME (LOSS) (179,514) (43,235)
INCOME (LOSS) PER SHARE
Before Extraordinary Item $( 0.01) $( 0.01)
Extraordinary Item
Net Income (Loss): Note C $( 0.01) $( 0.01)
Number of Shares used
in computation of
NET INCOME (LOSS) PER SHARE 14,962,509 14,962,509
SEE NOTES TO FINANCIAL STATEMENTS
SLS INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
3 Mos. Ended 9 Mos. Ended
July 31, 1997
Cash flows from operating activities
Loss from continuing operations $(179,514) $(470,713)
Adjustments to reconcile loss
from continuing operations to
net cash used in operations
Depreciation and amortization 1,903 5,709
Change in operating assets and
liabilities
Increase in accounts receivable
- other 0 (144)
Increase in accounts payable 38,262 72,031
_________ _______
Net cash used in continuing
operations (139,349) (393,117)
Cash flows from investing activities
Purchase of fixed assets 0 (23,460)
______ ________
Net cash used in investing
activities 0 (23,460)
Cash flows from financing activities
Proceeds from issuance of stock 124,200 124,200
Repayment of amounts due officer (152) (37,621)
Repayment of loans from officer 2,112 7,626
_________ ________
Net cash used in financing
activities 126,160 94,205
NET DECREASE IN CASH (13,189) (323,372)
Cash, beginning of period 22,980 332,163
Cash, end of period 9,791 9,791
SEE NOTES TO FINANCIAL STATMENTS
NOTE A - FINANCIAL STATMENETS (UNAUDITED)
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10QSB and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements. It is suggested that these
financial statements should be read in conjunction with the
financial statements and notes thereto included in the Company's
January 31, 1997 Audited Financial Report included in the
Company's January 31, 1997 10KSB submission to he SEC. In the
opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation
have been included. Operating results for the three months ended
April 30, 1997 are not necessarily indicative of the results that
may be expected for the current fiscal year ending January 31,
1998.
STATEMENT OF CASHFLOWS - For purposes of this statement of
cash flows, the company considers all highly liquid debt
instruments with a maturity of three months or less to be cash
equivalents.
NOTE B -
Commitments the company's operating lease for its facility
expires in February , 1999. Current monthly rental is $1,150.
NOTE C - INCOME (LOSS) PER SHARE
Per Share information is based on the weighted average
number of shares of common Stock and Common Stock equivalents
outstanding during the period.
PART II OTHER INFORMATION
Items 1-6 NOT APPLICABLE
SIGNATURES
Pursuant to the requirements of the Securities Exchanges Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
SLS INDUSTIRES, INC>
(Registrant)
Date: RICAHRD B. PAZORNIK, President
