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 April 30, 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
April 30, 1997 (unaudited) and January 31, 1997
Statement of Operations
n Three months ended April 30, 1997 (unaudited) and
April 30, 1996 (unaudited)
Statement of Cash Flows
n Three Months ended April 30, 1997 (unaudited) and
April 30, 1996 (unaudited)
Item 2. Management's discussion and Analysis of Financial
Condition and Results of Operations
During the quarter ended April 30, 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 April 30,
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
Apr. 30, 1997 Jan. 31, 1997
ASSESTS
Current Assets
Cash $156,832 $331,191
Accounts Receivable 145 0
Other Current Assets
Loans Receivable 68,499 69,864
Total Current Assets $225,476 $401,055
Fixed Assets
Bricklight 2,500 2,500
Office Furniture 3,258 0
Equipment-computer 5,528 2,587
Machinery & Equipment 7,000 7,000
Office Equipment 15,934 3,591
Total Fixed Assets 34,220 15,678
Other Assets
Loan to Officers 75,090 75,090
Total Other Assets 75,090 75,090
TOTAL ASSETS $334,786 $491,824
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable $ 19,233 $ (101)
Line of Credit Payable 32,500 32,500
Note Payable 6,980 6,980
Total Current Liabilities $ 58,713 $38,378
Equity
Capital Contribution $1,284,061 $1,284,061
Opening Balance Equity 1,925 1,925
Retained Earnings (833,540) (303,478)
Net Income (176,372) (530,063)
Total Equity 276,073 452,445
TOTAL LIABILITIES & EQUITY 334,786 491,824
SEE NOTES TO FINANCIAL STATEMENTS
SLS INDUSTRIES, INC
Statement of operations
3 Months Ended
April 30 ,1997 April 30, 1996
Revenues
Sales $ 144 $ 0
Other Income 907 0
Total Revenues $ 1051 0
Costs
Cost of Goods Sold 8,859 0
G&A 121,472 27,752
Research & Development 42,295 10,000
Selling Expenses 4,799 5,483
Total Costs 177,425 43,235
INCOME (LOSS) before taxes (176,374) (43,235)
and extraordinary items
PROVISION FOR INCOME TAXES ------ ------
INCOME (LOSS) before
extraordinary item (176,374) (43,235)
Reduction of Income Taxes
from carry forward of
operating losses ------ ------
NET INCOME (LOSS) (176,374) (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 7,188,759
SEE NOTES TO FINANCIAL STATEMENTS
SLS INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
April 30, 1997
Cash flows from operating activities
Loss from continuing operations $(141,739)
Adjustments to reconcile loss
from continuing operations to
net cash used in operations
Depreciation and amortization 1,903
Change in operating assets and
liabilities
Increase in accounts receivable
- other (144)
Increase in accounts payable 19,334
__________
Net cash used in continuing
operations (120,686)
Cash flows from investing activities
Purchase of fixed assets (18,541)
_________
Net cash used in investing
activities (18,541)
Cash flows from financing activities
Repayment of amounts due officer (37,469)
Repayment of loans from officer 1,365
_________
Net cash used in financing
activities (36,104)
NET DECREASE IN CASH (175,331)
Cash, beginning of period (332,163)
Cash, end of period (156,832)
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
