SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB/A
(Mark One)
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the quarterly period ended September 30, 2000.
[ ] Transition report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the transition Period From __________ to __________.
COMMISSION FILE NUMBER: 2-97360-A
---------
LIGHT MANAGEMENT GROUP, INC.
----------------------------
(Exact Name of Small Business Issuer as Specified in its Charter)
NEVADA 59-2091510
------ ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3060 Mainway, Suite 301, Burlington, Ontario L7M 1A3
----------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(800) 465-9216
--------------
(Issuer's Telephone Number, Including Area Code)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
On September 30, 2000, the number of shares outstanding of the issuer's
Common Stock, $0.02 par value (the only class of voting stock), was 16,878,279.
<PAGE>
Table of Contents
PART I - FINANCIAL INFORMATION.................................................1
-
ITEM 1. FINANCIAL STATEMENTS................................1
-
ITEM 2. MANAGEMENT'S DISCUSSION & ANALYSIS OR PLAN OF
OPERATION...........................................2
-
PART II - OTHER INFORMATION....................................................3
-
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K....................3
-
INDEX TO EXHIBITS..............................................................5
-
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
As used herein, the term "Company" refers to Light Management Group,
Inc., a Nevada corporation, and its subsidiaries and predecessors unless
otherwise indicated. Consolidated, unaudited, condensed interim financial
statements including a balance sheet for the Company as of September 30, 2000,
statement of operations, statement of shareholders equity and statement of cash
flows for the interim period up to the date of such balance sheet and the
comparable period of the preceding year are attached hereto as Pages F-1 through
F-12 and are incorporated herein by this reference.
1
<PAGE>
<TABLE>
LIGHT MANAGEMENT GROUP, INC.
INTERIM CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2000
(with comparative figures at December 31, 1999)
(Unaudited)
<CAPTION>
ASSETS
2000 1999
US$ US$
<S> <C> <C>
CURRENT ASSETS
Accounts receivable (Note 3) 2,344,817 1,366,038
Prepaid expenses 35,055 15,506
2,379,872 1,381,544
--------- ----------
CAPITAL ASSETS (Note 4) 1,179,861 656,045
INTANGIBLE ASSETS (Note 5) 3,455,204 -
--------- ----------
7,014,937 2,037,589
========= ==========
LIABILITIES
CURRENT LIABILITIES
Bank overdraft 9,833 -
Accounts payable and accrued 618,522 641,171
Loans payable - 86,401
Due to related parties 160,864 145,093
Current portion of term loan (Note 6) 30,024 -
--------- ----------
819,243 872,665
TERM LOAN PAYABLE (Note 6) 107,196 -
--------- ----------
926,439 872,665
--------- ----------
SHAREHOLDERS' EQUITY
SHARE CAPITAL (Note 7) 224,345 210,328
ADDITIONAL PAID-IN CAPITAL 5,185,217 1,500,537
COMMITMENT TO ISSUE PREFERRED
SHARES (Note 8) 3,100,000 -
DEFICIT (2,421,064) (545,941)
--------- ----------
6,088,498 1,164,924
--------- ----------
7,014,937 2,037,589
========= ==========
Approved by the Directors
, Director
, Director
</TABLE>
F-1
<PAGE>
<TABLE>
LIGHT MANAGEMENT GROUP, INC.
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
THREE AND NINE MONTH PERIOD ENDED SEPTEMBER 30, 2000
(with comparative figures for the year ended December 31, 1999)
(Unaudited)
<CAPTION>
Three Month Nine Month
2000 2000 1999
US$ US$ US$
<S> <C> <C> <C>
SALES 550,907 1,635,045 1,061,572
COST OF SALES 290,312 886,354 295,205
-------- --------- ----------
GROSS PROFIT 260,595 748,691 766,367
-------- --------- ----------
EXPENSES
Advertising and promotion 15,319 66,828 100,151
Amortization 82,163 253,785 54,345
Commissions 25,901 58,631 -
Consulting 26,364 270,337 165,054
Exchange 81,859 81,859 -
Insurance 11,686 11,686 -
Interest (2,011) 27,131 40,942
Investor relations 39,542 71,267 5,451
Management salary 101,011 226,510 145,833
Office and telephone 15,899 64,029 30,721
Professional fees 76,417 175,825 51,751
Rent and utilities 12,066 50,675 59,817
Salaries and benefits 99,393 287,736 171,505
Travel, meals and entertainment 16,808 88,086 38,822
Vehicle 7,179 22,168 6,351
609,596 1,756,553 870,743
---------- ----------- ------------
LOSS BEFORE OTHER ITEM (349,001) (1,007,862) (104,376)
Settlement of lawsuit (Note 9) - (851,159) -
---------- ----------- ------------
LOSS BEFORE INCOME TAXES (349,001) (1,859,021) (104,376)
Income taxes 435 435 -
---------- ----------- ------------
LOSS FOR THE PERIOD (349,436) (1,859,456) (104,376)
========== =========== ============
LOSS PER COMMON SHARE ($0.021) ($0.111) ($0.006)
========== =========== ============
Weighted average common shares
outstanding 16,878,279 16,688,382 15,568,611
========== =========== ============
</TABLE>
F-2
<PAGE>
<TABLE>
LIGHT MANAGEMENT GROUP, INC.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
THREE AND NINE MONTH PERIOD ENDED SEPTEMBER 30, 2000
(with comparative figures for the year ended December 31, 1999)
(Unaudited)
<CAPTION>
Three Month Nine Month
2000 2000 1999
US$ US$ US$
<S> <C> <C> <C>
CASH FLOWS USED FOR OPERATING ACTIVITIES
Loss for the period (349,436) (1,859,456) (104,376)
Add back items which do not involve cash
Amortization 82,163 253,785 54,345
Issuance of common shares for services - 216,216 -
Issuance of common shares for litigation - 695,204 -
----------- ------------ -------------
(267,273) (694,251) (50,031)
Changes in non-cash working capital items
Accounts receivable (266,785) (978,779) (1,366,038)
Prepaid expenses (12,353) (19,549) (15,506)
Accounts payable and accrued 223,474 (22,649) 641,171
Loans payable (20,000) (86,401) 86,401
----------- ------------ -------------
(342,937) (1,801,629) (704,003)
----------- ------------ -------------
CASH FLOWS USED FOR INVESTING ACTIVITIES
Additions to capital assets 118,308 (715,101) (710,390)
Additions to intangible assets - (746,094) -
----------- ------------ -------------
118,308 (1,461,195) (710,390)
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related party 128,200 3,115,771 145,093
Proceeds of term loan 10,489 137,220 -
Proceeds from issuance of share capital - - 1,269,300
----------- ------------ -------------
138,689 3,252,991 1,414,393
DECREASE IN CASH (85,940) (9,833) -
CASH, BEGINNING OF PERIOD 76,107 - -
NET CASH FLOWS BEING BANK
OVERDRAFT, END OF PERIOD (9,833) (9,833) -
============ ============ ===========
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS
Common shares issued for acquisitions 2,771,610
Common shares issued for services 216,216
Common shares issued for litigation settlement 695,204
Commitment to issue preferred shares 3,100,000
</TABLE>
F-3
<PAGE>
<TABLE>
LIGHT MANAGEMENT GROUP, INC.
INTERIM CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
NINE MONTH PERIOD ENDED SEPTEMBER 30, 2000
(Unaudited)
<CAPTION>
Common shares Commitment
Par value $0.02 To Issue Additional
Number Preferred Paid-in
of Share Amount Shares Capital Deficit Total
<S> <C> <C> <C> <C> <C> <C>
Balances, December 31, 1998 7,950,000 159,000 277,114 (441,565) (5,451)
Reverse split (5,300,000)
2,650,000
Issuance of common stock 10,527,424 51,328 51,328
Issuance of common shares for
acquisitions 3,000,000 1,223,423 1,223,423
Loss for the year (104,376) (104,376)
Balances, December 31, 1999 16,177,424 210,328 - 1,500,537 (545,941) 1,164,924
Issuance of common shares for
acquisition 550,000 11,000 2,776,277 (15,667) 2,771,610
Issuance of common shares for
litigation settlement 97,600 1,952 693,252 695,204
Issuance of common shares for
services 53,255 1,065 215,151 216,216
Comittment to issue preferred
shares to settle related party
debt 3,100,000 3,100,000
Loss for the period (1,510,020) (1,510,020)
Balances, June 30, 2000 16,878,279 224,345 3,100,000 5,185,217 (2,071,628) 6,437,934
Loss for the period (349,436) (349,436)
Balances, September 30, 2000 16,878,279 224,345 3,100,000 5,185,217 (2,421,064) 6,088,498
</TABLE>
F-4
<PAGE>
Page 1
LIGHT MANAGEMENT GROUP, INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
1. NATURE OF THE COMPANY'S BUSINESS AND FUTURE OPERATIONS
On December 28, 1998, the company changed its state of incorporation from
Florida to Nevada by means of a merger with Triton Acquisition Corporation,
A Nevada corporation.
On September 4, 1998, the company incorporated Laser Show Systems (Canada)
Ltd.
On February 15, 1999, the company acquired 97 percent of the outstanding
shares of Laser Shows Systems International Inc.
On March 24, 2000 the company acquired all the outstanding shares of
Exclusive Advertising Inc. (a company incorporated under the laws of
Ontario, Canada).
On March 29, 2000 the company acquired all the outstanding shares of Laser
Show Systems Investments, Ltd. (a company incorporated in the United
Kingdom).
During the nine month period ended September 30, 2000 the company incurred a
loss of $1,859,456 and used cash for operating activities of $2,496,833.
From inception of the business the company has incurred cumulative losses of
$2,421,064.
These consolidated financial statements have been prepared on the going
concern basis under which an entity is considered to be able to realize its
assets and satisfy its liabilities in the ordinary course of business.
Operations to date have been primarily financed by common share issuances
and advances from a related party. The company's future operations are
dependent upon continued support of the creditors and the shareholders, the
achievement of profitable operations or the sale of company assets. There
can be no assurances that the company will be successful in any of these
areas. These consolidated financial statements do not include any
adjustments relating to the recoverability of assets and classification of
assets and liabilities that might be necessary should the company be unable
to continue as a going concern.
F-5
<PAGE>
LIGHT MANAGEMENT GROUP, INC. Page 2 of 8
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
These financial statements have been prepared in accordance with generally
accepted accounting principles in Canada and include the following
significant accounting principles.
(a) Basis of consolidation
These consolidated financial statements include the accounts of the
company and its wholly owned subsidiaries, Laser Shows Systems
International Inc., (a Canadian corporation), Laser Show Systems
(Canada) Ltd., (a Canadian corporation), Exclusive Advertising Inc.(a
Canadian corporation), and Laser Shows Systems Investments, Inc. ( a
United Kingdom corporation) collectively referred to as "the company".
All intercompany balances and transactions have been eliminated.
(b) Translation of foreign currency transactions
The company maintains its records in United States dollars.
Transactions in foreign currencies are translated into United States
dollars at exchange rates ruling at the transaction dates. Monetary
items in foreign currencies at the period end are translated into
United States dollars at rates of exchange at the balance sheet date.
All exchange differences are recorded in the statement of operations.
(c) Basic earnings per share
Basic earnings per share is computed using the weighted average number
of shares of common stock outstanding.
(d) Use of estimates
'The preparation of financial statements in conformity with generally
accepted accounting principles requires that management make estimates
and assumptions which affect the reported amounts of assets and
liabilities as at the date of the financial statements and revenues
and expenses for the period then ended. Actual results may differ from
these estimates.
F-6
<PAGE>
LIGHT MANAGEMENT GROUP, INC. Page 3 of 8
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
2. SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
(e) Capital assets
Capital assets are stated at historical cost. Amortization is provided
for at the following methods and rates which are designed to charge
the cost of capital assets to income over their estimated useful
lives:
Equipment Diminishing balance 20%
Equipment under development Diminishing balance 30%
Furniture and fixtures Diminishing balance 20%
Computer equipment Diminishing balance 30%
Leasehold improvements Straight line 20%
All costs associated with acquiring, developing and testing the advanced
laser projection systems have been capitalized as equipment under
development.
In the year of acquisition, only one half of the normal amortization is
charged to expense.
(f) Patents and goodwill arising on consolidation.
'The patents and goodwill representing an amount in excess of the cost
of the company's investment in its subsidiaries over the value of net
tangible assets acquired is recorded at cost. The cost will be
amortized using the straight line method over fifteen years.
3. ACCOUNTS RECEIVABLE AND ECONOMIC DEPENDENCE
'Included in the accounts receivable is the amount of $2,152,434 due from
the sole distributor of the company's RGB laser projection system. The
distributor has not fully paid the invoice due to manufacturing and
installation delays. As the difficulties have been resolved and the company
wishes to continue business with the distributor, it has extended credit on
these amounts which are to paid in full no later than June 30, 2001.
F-7
<PAGE>
LIGHT MANAGEMENT GROUP, INC. Page 4 of 8
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
<TABLE>
4. CAPITAL ASSETS
<CAPTION>
2000 1999
Accumulated Net Net
Cost Amortization Book Value Book Value
US$ US$ US$ US$
<S> <C> <C> <C> <C>
Equipment 221,608 45,278 176,330 198,355
Equipment under
development 1,086,060 194,929 891,131 448,889
Furniture and fixture 13,252 1,742 11,510 2,305
Computer equipment 27,620 5,541 22,079 5,654
Leasehold improveme 85,459 6,648 78,811 842
---------- ----------- ----------- -----------
1,433,999 254,138 1,179,861 656,045
========== =========== =========== ============
</TABLE>
5. INTANGIBLE ASSETS
2000 1999
US$ US$
Goodwill and patents 3,517,704 -
Less: accumulated amortization 62,500 -
---------- --------
3,455,204 -
========== =========
Goodwill of $2,500,000 arises from the consolidation of the accounts of a
subsidiary company acquired by issuing 500,000 shares at a deemed price of
$5.00 per share.
6. TERM LOAN PAYABLE
2000 1999
US$ US$
The term loan is payable by monthly principal payments
of $2,502 (C$3,753) plus interest at prime plus 2.5 137,220 -
Less current portion 30,024 -
--------- -------
107,196 -
========= =======
Principal payments due in each of the next five years:
2001 30,024
2002 30,024
2003 30,024
2004 6,634
F-8
<PAGE>
LIGHT MANAGEMENT GROUP, INC. Page 5 of 8
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
7. SHARE CAPITAL
2000 1999
US$ US$
Authorized - 100,000,000 common shares with $0.02
par value
Issued - 16,878,279 common shares 224,345 210,328
========= ========
Options and rights: see Note 14 - Subsequent Events
8. COMMITMENT TO ISSUE PREFERRED SHARES
The company intends to issue 2,766,798 non-redeemable, non-convertible,
preferred shares to settle all amounts owed to a corporate shareholder. The
preferred shares will carry a cumulative dividend of 6.5 percent, carry
voting rights equal to 27,667,980 common shares and shall be non-dilutable.
9. LITIGATION
'Pursuant to a settlement agreement dated March 10, 2000 the company agreed
to an amount of $851,159, including related legal costs, which is reported
in the statement of operations.
10. RELATED PARTY TRANSACTIONS
During the period the company had the following transactions with related
parties:
2000 1999
US$ US$
Corporate shareholder:
Cash received 3,115,771 145,093
Rent expense 4,044 59,817
Director and Chief Executive Officer of the company:
Management salary 226,510 145,833
F-9
<PAGE>
LIGHT MANAGEMENT GROUP, INC. Page 6 of 8
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
11. COMMITMENTS
The company subleases its office and research and development premises from
a related company and leases various computer equipment and two automobiles
under operating leases. The minimum lease commitment under these operating
lease agreements for the next five years are:
US$
2000 6,842
2001 21,665
2002 14,018
2003 10,855
2004 10,855
12. COMPARATIVE FIGURES
Certain comparative figures for the year ended December 31, 1999 have been
restated to conform with the current period's presentation.
13. FINANCIAL INSTRUMENTS
'The company's financial instruments consist of cash, accounts receivable,
accounts payable, loans payable, due to related parties, and a term loan.
Unless otherwise noted, it is management's opinion that the company is not
exposed to significant interest, currency or credit risk arising from
these financial instruments. The fair value of these financial instruments
approximate their carrying values, unless otherwise noted.
'The company sells the majority of its equipment through one distributor
and in Canadian dollars. The company is exposed to credit and currency
risk related to these transactions.
'The company maintains certain bank accounts, and receives advances from a
shareholder in Canadian dollars. The company is exposed to currency risk
related to these transactions.
F-10
<PAGE>
LIGHT MANAGEMENT GROUP, INC. Page 7 of 8
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
14. SUBSEQUENT EVENTS
Subsequent to the period end the company has granted employee incentive
options, to its Chief Executive Officer, to purchase common shares of the
company, on or before July 5, 2005 as follows:
Number of Price per
Shares Share
100,000 $0.25
100,000 $0.50
250,000 $1.00
250,000 $1.50
500,000 $2.00
Subsequent to the period end the company has granted common share rights to a
related corporation, to purchase common shares of the company, on or before
August 1, 2003 as follows:
Number of Price per
Shares Share
250,000 $2.25
250,000 $2.50
250,000 $2.75
100,000 $3.00
100,000 $3.50
15. UNCERTAINTY DUE TO THE YEAR 2000 ISSUE
The Year 2000 Issue arises because many computerized systems use two
digits rather than four to identify a year. Date-sensitive systems may
recognize the year 2000 as 1900 or some other date, resulting in errors
when information using year 2000 dates is processed. In addition, similar
problems may arise in some systems which use certain dates in 1999 to
represent something other than a date. Although the date has occurred, it
is not possible to conclude that all aspects of the Year 2000 Issue that
may affect the entity, including those related to customers, suppliers, or
other third parties, have been resolved.
F-11
<PAGE>
LIGHT MANAGEMENT GROUP, INC. Page 8 of 8
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(Unaudited)
16. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINC
These financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP") in Canada. The principles adopted in
these financial statements conform in all material respects to those
generally accepted in the United States except as follows:
Under Canadian GAAP, new product development costs incurred during each
period are capitalized. The accumulated amount is reported on the balance
sheet. Under United States GAAP these costs are expensed in each year.
F-12
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION & ANALYSIS OR PLAN OF OPERATION
Forward-looking information
This quarterly report contains forward-looking statements. For this
purpose, any statements contained herein that are not statements of historical
fact may be deemed to be forward-looking statements. These statements relate to
future events or to our future financial performance. In some cases, you can
identify forward-looking statements by terminology such as "may," "will,"
"should," "expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential" or "continue" or the negative of such terms or other
comparable terminology. These statements are only predictions. Actual events or
results may differ materially. There are a number of factors that could cause
the Company's actual results to differ materially from those indicated by such
forward-looking statements.
Although the Company believes that the expectations reflected in the
forward-looking statements are reasonable, the Company cannot guarantee future
results, levels of activity, performance or achievements. Moreover, the Company
does not assume responsibility for the accuracy and completeness of such
statements. The Company is under no duty to update any of the forward-looking
statements after the date of this report to conform such statements to actual
results.
General
The Company specializes in the development of new applications of
optical and light technologies. These technologies use sound waves to focus and
direct lasers. For example, one of the Company's proprietary laser projection
systems, called the RGB Laser Projection System, produces graphic images in
moving three dimensional designs that are utilized to market products on
large-scale billboards. This laser system possesses software features which
allow images to be manipulated into almost any position, size, or scale in 256
colors. This acousto-optic laser projection system works by a raster imaging
process and allows for images to be projected in three dimensional appearance,
and to be active and moving across the full screen size.
Results of Operations
The following discussion sets forth certain financial information
regarding the Company's operations. Because the Company first generated revenue
from its current operations in September 1999, the Company believes an analysis
of results of operations for the quarter ended September 30, 2000 as compared to
the quarter ended September 30, 1999, would not provide a meaningful comparison.
Therefore, the Company's financial statements, and the following discussion on
results of operations set forth financial information as of the three (3) and
nine (9) month periods ended September 30, 2000, and as of the year ended
December 31, 1999. These figures are based on the consolidated operations of all
of the Company's subsidiaries and should be read in conjunction with the audited
financial statements and notes thereto included in our annual report on Form
10-KSB for the fiscal year ended December 31, 1999; and should further be read
in conjunction with the financial statements included in this report.
The Company generated sales of $550,907 and $1,635,045 for the three
and nine month periods ended September 30, 2000, respectively. These amounts
represent an increase in sales from the $1,061,572 generated for the fiscal year
ended September 30, 1999. A corollary to the Company's increased sales is
increased expenses, which were $609,596 for the quarter ended September 30,
2000, and $1,756,553 for the nine months ended September 30, 2000. The expenses
incurred for the fiscal year ended December 31, 1999, were $870,743. These sales
and expenses resulted in the Company's loss for the quarter and nine months
ended September 30, 2000, of $349,436 and $1,859,456, respectfully, as compared
to the loss for the year ended December 31, 1999, of $104,376.
2
<PAGE>
The Company's accounts payable and accrued decreased slightly to
$618,522 as of September 30, 2000, as compared to $641,171 as of December 31,
1999. As of September 30, 2000, loans payable had been eliminated from December
31, 1999 balance of $86,401. These decreased balances reflect the Company's goal
of reducing debt, especially to its vendors and contractors.
Liquidity and Capital Resources
The Company's current assets, as of September 30, 2000, totaled
$2,379,872, as compared to $1,381,544 as of December 31, 1999. Included in the
current assets as of September 30, 2000 are accounts receivable of $2,344,817.
The increase is due to the Company's intensified sales efforts. The bulk of this
amount, $2,152,434, is due from the sole distributor of the Company's RGB laser
projection system, which is to be paid in full on or before June 30, 2001.
Capital assets increased to $1,179,861 as of September 30, 2000
compared to $656,045 as of December 31, 1999. This increase is attributable to
the Company's increased focus on acquiring and developing equipment for its
technologies.
The Company's intangible assets increased materially when the Company
acquired Exclusive Advertising as a subsidiary. This acquisition brought the
Company intangible assets of $3,455,204, whereas as of December 31, 1999, no
intangible assets were possessed. These intangible assets include goodwill of
$2,500,000, which arose when the Company issued the owners of Exclusive
Advertising 500,000 shares of its common stock, valued at $5.00 per share. An
additional $955,204 of intangible assets derive from patents owned by the
Company's other subsidiary, Laser Show Systems (UK).
Total liabilities of $926,439 as of September 30, 2000 remained
relatively flat as compared to $872,665 as of December 31, 1999.
Shareholder's equity as of September 30, 2000, was $6,088,498, as
compared to $6,437,934 as of June 30, 2000, and $1,164,924 as of December 31,
1999. These increases are largely due to issuances of shares in the quarter
ended June 30, 2000 related to the Company's settlement of litigation and its
acquisitions of Exclusive Advertising and Laser Show Systems (UK). Also in the
quarter ended June 30, 2000, the Company agreed to settle a $3.1 million debt to
a corporate shareholder in exchange for non-redeemable, non-convertible,
preferred shares.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the quarter for which this
report is filed.
The following exhibits are attached hereto. Exhibits marked with an
asterisk have been filed previously with the Commission and are incorporated
herein by reference.
3.1 * Articles of Incorporation
3.2 * Bylaws.
27 6 Financial Data Schedule for the quarter ended September 30,
2000.
3
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, as amended, the Registrant has duly caused this Quarterly
Report on Form 10-QSB to be executed on its behalf by the undersigned, hereunto
duly authorized.
LIGHT MANAGEMENT GROUP, INC.
/s/ Donald Iwacha
--------------------
President
Dated: November 20, 2000
4
<PAGE>
INDEX TO EXHIBITS
Exhibits marked with an asterisk have been filed previously with the
Commission and are incorporated herein by reference.
EXHIBIT PAGE
NO. NO. DESCRIPTION
--- --- -----------
3.1 * Articles of Incorporation
3.2 * Bylaws.
27 6 Financial Data Schedule for the quarter ended
September 30, 2000.
5
