SECURITIES AND EXCHANGE COMMISSION
Washington, D.D. 20549
(Mark One)
[X] Amended Quarterly report pursuant to Section
13 or 15(d) of the Securities Exchange Act of
1934
For the quarterly period ended September 30, 1999
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 2-97360-A
LIGHT MANAGEMENT GROUP, INC.
(Exact name of registrant as specified in its
charter)
Nevada 59-2091510
(State or jurisdiction (I.R.S. Employer
of incorporation Identification No.)
or organization)
Suite 301
3060 Mainway
Burlington, Ontario L7M 1A3
305-771-5255
(Registrant's telephone number, including
area code)
(Former Address, 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 that the
registrant was required to file such
reports), and (2) has shorter period been
subject to such filing requirements for the
past 90 days.
Yes X No
APPLICABLE ONLY TO ISSUERS INVOLVED IN
BANKRUPTCY.
Indicate by check mark whether the
registrant has filed all documents and
reports required to be filed by Sections 12,
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 No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares
outstanding of each of the issuer's classes
of common stock, as of the latest practicable
date.
As of September 30, 1999, approximately
16,988,510 shares of the Registrant's Common
Stock, $.01 par value, were outstanding.
Part I - Financial Information.
Item 1. Financial Statements.
LIGHT MANAGEMENT GROUP INC.
CONSOLIDATED BALANCE SHEET
(NOT AUDITED) As at September 30 1999
<TABLE>
<C> <C>
1999
$
- ----------------------------------------------------------------------------------------------------
ASSETS
CURRENT
Accounts receivable 1,048,666
Inventory 76,613
Prepaid expenses and deposits 11,700
- ----------------------------------------------------------------------------------------------------
1,136,979
CAPITAL ASSETS (Note 3) 882,310
INTANGIBLE ASSETS 2,530,681
- ----------------------------------------------------------------------------------------------------
4,549,970
LIABILITIES
CURRENT
Bank indebtedness 27,292
Accounts payable 302,257
Accrued liabilities 10,232
Income taxes payable 27,967
Due to shareholder 26,161
Current portion of long term bank loan 30,719
- ----------------------------------------------------------------------------------------------------
424,628
- ----------------------------------------------------------------------------------------------------
LONG TERM BANK LOAN (Note 4) 133,116
LOANS PAYABLE (Note 4) 87,349
- ----------------------------------------------------------------------------------------------------
645,093
- ----------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY
COMMON STOCK (Note 5) 3,142,243
ADDITIONAL PAID IN CAPITAL 697,720
RETAINED EARNINGS 64,914
- ----------------------------------------------------------------------------------------------------
3,904,877
- ----------------------------------------------------------------------------------------------------
4,549,970
- ----------------------------------------------------------------------------------------------------
(See accompanying Notes to Financial Statements)
</TABLE>
<PAGE>
LIGHT MANAGEMENT GROUP INC.
CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
(NOT AUDITED) for the quarter ended September 30, 1999
$
<C> <C>
REVENUE
Income from operations 924,357
Interest and other income 186
- ----------------------------------------------------------------------------------------------------
924,543
- ----------------------------------------------------------------------------------------------------
EXPENSES
Advertising and promotion 25,202
Amortization 5,789
Bank charges and interest 39,587
Cost of sales 314,903
Insurance 1,824
Office and general 14,277
Professional fees 139,638
Rent 32,733
Repairs and maintenance 1,877
Salaries and fringe costs 128,286
Telephone 6,630
Travel 30,572
Utilities 8,965
Write-off of amount due from company related through
common shareholders 81,379
- ----------------------------------------------------------------------------------------------------
831,662
- ----------------------------------------------------------------------------------------------------
NET INCOME before income taxes 92,881
- ----------------------------------------------------------------------------------------------------
Income taxes 27,967
- ----------------------------------------------------------------------------------------------------
NET INCOME 64,914
- ----------------------------------------------------------------------------------------------------
(See accompanying Notes to Financial Statements)
</TABLE>
<PAGE>
LASER SHOW SYSTEMS (CANADA) LTD.
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
(NOT AUDITED) for the quarter ended September 30, 1999
$
<C> <C>
- ----------------------------------------------------------------------------------------------------
CASH RESOURCES PROVIDED BY (USED IN);
OPERATING ACTIVITIES
Net income 64,914
Items not involving cash:
Amortization 5,789
Write-off of amount due from company related through
common shareholders 81,379
- ----------------------------------------------------------------------------------------------------
152,082
Changes in non-cash working capital (Note 8) (770,362)
- ----------------------------------------------------------------------------------------------------
(618,280)
- ----------------------------------------------------------------------------------------------------
FINANCING ACTIVITIES
- ----------------------------------------------------------------------------------------------------
Long term bank loan 163,835
Increase in loans payable 87,349
Increase in contributed surplus 697,720
Issuance of common shares 3,142,243
Advances made to company related through common shareholders (81,379)
- ----------------------------------------------------------------------------------------------------
4,009,768
- ----------------------------------------------------------------------------------------------------
INVESTING ACTIVITIES
Purchase of capital assets (888,099)
Purchase of intangible assets (2,530,681)
- ----------------------------------------------------------------------------------------------------
(3,418,780)
- ----------------------------------------------------------------------------------------------------
DECREASE IN CASH (27,292)
CASH, BEGINNING OF YEAR -
- ----------------------------------------------------------------------------------------------------
CASH DEFICIENCY, END OF YEAR (27,292)
- ----------------------------------------------------------------------------------------------------
(See accompanying Notes to Financial Statements)
</TABLE>
Item 2. Managements Discussion and Analysis
of Financial Condition and Results of
Operations.
LIGHT MANAGEMENT GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -
(Not Audited)
- ------------------------------------------------------------------------------
1 COMMENCEMENT OF OPERATIONS
The consolidated corporation is primarily involved in the development
and sale of advanced laser projection systems and in the general technology
of light management and and the development and sale of public advertising.
These Consolidated Financial Statements include the accounts of two wholly
owned subsidiaries, Laser Show Systems Inc. and Exclusive Advertising Inc.
2. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared by management in accordance
with generally accepted accounting principles. This amended 10-Q is being
filed to restate the financial information in United States currency. The past
10-Q for the third quarter 1999 stated financial information in Canadian
currency.
USE OF ESTIMATES-
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amount of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amount of revenues and expenses during the reported period. These
estimates are reviewed periodically and, as adjustments become necessary, they
are reported in earnings ion the period in which they become known.
CAPITAL ASSETS AND AMORTIZATION-
Capital assets are recorded at 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 20% diminishing balance
Equipment under development 30% diminishing balance
Furniture and Fixtures 20% diminishing balance
Computer Equipment 30% diminishing balance
Leasehold improvements 20% straight line
All costs associated with acquiring, developing and testing the advanced laser
projection systems have been capitalized as part of the cost of equipment under
development.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-
Continued
No amortization has been recorded on the equipment under development as it
was still in the development stage, and was not yet available for use as at
September 30, 1999.
INTANGIBLE ASSETS-
Intangible assets consist of $4,218 for patents and rights to the laser
projection systems and are recorded at cost and goodwill on the purchase of
subsidiary of $2,526,463. No amortization has been recorded on the patents and
rights as the equipment was still in the development stage, and was not yet
available for use at September 30, 1999.
COMPARATIVE FIGURES
No comparative figures for September 30, 1998 have been provided as the com-
pany substantially changed its business focus and the prior years numbers would
be misleading.
3. CAPITAL ASSETS
<TABLE>
<CAPTION>
Accumulated
Cost amortization Net
<S> <C> <C> <C>
Equipment 216,902 3,426 213,476
Equipment under development 659,472 -- 659,472
Furniture and Fixtures 2,983 528 2,455
Computer Equipment 7,710 1,684 6,026
Leasehold Improvements 1,032 151 881
</TABLE>
4. LOANS PAYABLE
Bank loan is secured by an assignment on equipment. It is repayable over 64
months at $2,560.60 monthly plus interest at 2.5% over prime. Loans payable
are unsecured and bear interest at 12%. Since the lenders have indicated that
they will not request payment in the next year, the amounts have been
classified as a non current liability.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-
Continued
5. COMMON STOCK
AUTHORIZED ISSUED
100,000,000 COMMON SHARES 16,988,510 COMMON SHARES
6 RELATED PARTY TRANSACTIONS
Since July 1997, a total of $121,965 of consulting and management fees have
been incurred by the company and the previously operating company known as
Laser Show Systems International Inc. to a company related through a common
shareholder. All of these amounts have been capitalized as part of the cost of
equipment under development.
7. FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS-
The fair values of accounts receivable, deposits, bank indebtedness, accounts
payable and accrued liabilities are assumed to approximate their carrying
amounts because of their short term to maturity.
8. CHANGES IN NON-CASH WORKING CAPITAL
$
Accounts Receivable (1,048,666.00)
Inventory (76,613.00)
Prepaid expenses and deposits (11,700.00)
Accounts Payable 302,257.00
Accrued Liabilities 10,232.00
Income tax payable 27,967.00
Due to Shareholder 26,161.00
(770,362.00)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -
Continued
9. LITIGATION
The Company and some of its officers are being sued by a shareholder
of a company that formerly had a contractual relationship with LaserShow
Systems, Moscow, who owned patents that have been transferred to
LaserShow Systems (U.K.), with whom the Company has a purchase agreement.
The Company and its officers deny all allegations and expects to
resolve the dispute in the foreseeable future.
10. REVENUE
Income from operations reported under Revenue included amounts invoiced,
whether or not those amounts have been paid.
Signatures
Pursuant to the requirements of the
Securities Exchange Act of 1934, the
registrant has duly caused this report
to be signed on its behalf by the undersigned
there unto duly authorized.
Light Management Group, Inc.
(Registrant)
Date
March 14,2000 /s/ Donald Iwacha
President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 1048666
<ALLOWANCES> 0
<INVENTORY> 76613
<CURRENT-ASSETS> 1136979
<PP&E> 888099
<DEPRECIATION> 5789
<TOTAL-ASSETS> 4549970
<CURRENT-LIABILITIES> 424628
<BONDS> 0
0
0
<COMMON> 3142243
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3904877
<SALES> 924357
<TOTAL-REVENUES> 924543
<CGS> 314903
<TOTAL-COSTS> 314903
<OTHER-EXPENSES> 516759
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 92881
<INCOME-TAX> 27967
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 64914
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
