UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
____________________________________________________________
(Mark one)
XX 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
EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
_____________________________________________________________________
Commission File Number: 0-27351
LAZARUS INDUSTRIES, INC.
(Exact Name of small business issuer as specified in its charter)
Utah 87-0445575
(State of Incorporation) (IRS Employer ID Number)
10 West 100 South, Suite 610, Salt Lake City, Utah 84101
(Address of principal executive offices)
(801) 532-7851
(Issuer's telephone number)
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 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 [XX] NO [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity as of the latest practicable date:
7,485,417 Shares as of the date of this report.
Transitional Small Business Disclosure Format (check one): YES [ ] NO [XX]
<PAGE>
LAZARUS INDUSTRIES, INC.
Form 10-QSB for the Quarter ended September 30, 2000
Table of Contents
Page
Part I - Financial Information
Item 1. Financial Statements 3
Item 2. Management's Discussion and Analysis or Plan of Operation 12
Part II - Other Information
Item 1. Legal Proceedings 14
Item 2. Changes in Securities 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 14
<PAGE> 2
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Balance Sheets
ASSETS
September 30, December 31,
2000 1999
------------- -------------
(Unaudited)
CURRENT ASSETS
Cash $ 30,332 $ 33,891
------------- -------------
Total Current Assets 30,332 33,891
------------- -------------
TOTAL ASSETS $ 30,332 $ 33,891
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 3,771 $ -
Due to related party (Note 3) 2,646 2,443
Accrued liabilities 100 104
------------- -------------
Total Current Liabilities 6,517 2,547
------------- -------------
TOTAL LIABILITIES 6,517 2,547
------------- -------------
STOCKHOLDERS' EQUITY
Common stock: 50,000,000 shares authorized
of $0.001 par value, 7,485,417 shares issued
and outstanding 7,486 7,486
Additional paid-in capital 285,028 283,428
Deficit accumulated during the development stage (268,699) (259,570)
------------- -------------
Total Stockholders Equity 23,815 31,344
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 30,332 $ 33,891
============= =============
<PAGE> 3
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
From
Inception on
For the For the December 31
Three Months Ended Nine Months Ended 1985 Through
September 30, September 30, September 30,
2000 1999 2000 1999 2000
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ - $ -
EXPENSES
General and
administrative 2,868 1,934 9,999 6,531 116,554
------------ ------------ ------------ ------------ ------------
Total Expenses 2,868 1,934 9,999 6,531 116,554
------------ ------------ ------------ ------------ ------------
LOSS FROM OPERATIONS (2,868) (1,934) (9,999) (6,531) (116,554)
------------ ------------ ------------ ------------ ------------
OTHER INCOME (EXPENSE)
Interest income 319 271 1,000 926 3,121
Interest expense (56) - (130) - (352)
Loss from
discontinued
operations - - - - (154,914)
------------ ------------ ------------ ------------ ------------
Total Other
Income(Expense) 263 271 870 926 (152,145)
------------ ------------ ------------ ------------ ------------
NET LOSS $ (2,605) $ (1,663) $ (9,129) $ (5,605) $ (268,699)
============ ============ ============ ============ ============
BASIC LOSS PER SHARE $ (0.00) $ (0.00) $ (0.00) $ (0.00)
============ ============ ============ ============
</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
From Inception on December 31, 1985 through September 30, 2000
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Balance, December 31, 1985 - $ - $ - $ -
Shares issued for cash
at $0.002 160,000 160 7,840 (433)
Shares issued through public
offering at $0.01 per share 555,523 556 138,325 -
Capital contributed by
shareholders - - 54,077 -
Net loss from inception on
December 31, 1995 through
December 31, 1987 - - - (735)
------------- ------------- ------------- -------------
Balance, December 31, 1987 715,523 716 200,242 (1,168)
Shares issued to public at
$0.01 per share 44,480 44 11,086 -
Shares issued in acquisition
of wholly- owned subsidiary
at $0.001 per share 2,036,800 2,037 - -
Shares issued for finders fee
at $0.001 per share 152,000 152 - -
Shares issued to public at
$0.10 per share for cash 3,280 3 325 -
Public offering costs - - (44,059) -
Net loss for the year ended
December 31, 1988 - - - (98,275)
------------- ------------- ------------- -------------
Balance, December 31, 1988 2,952,083 2,952 167,594 (99,443)
Net loss for the year ended
December 31, 1989 - - - (39,018)
------------- ------------- ------------- -------------
Balance, December 31, 1989 2,952,083 $ 2,952 $ 167,594 $ (138,461)
------------- ------------- ------------- -------------
</TABLE>
<PAGE> 5
<TABLE>
<CAPTION>
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
From Inception on December 31, 1985 through September 30, 2000
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Balance, December 31, 1989 2,952,083 $ 2,952 $ 167,594 $ (138,461)
Assets distributed to
shareholders - - (15,632) -
Net loss for the year ended
December 31, 1990 - - - (17,153)
------------- ------------- ------------- -------------
Balance, December 31, 1990 2,952,083 2,952 151,962 (155,614)
Net loss for the year ended
December 31, 1991 - - - (100)
------------- ------------- ------------- -------------
Balance, December 31, 1991 2,952,083 2,952 151,962 (155,714)
Net loss for the year ended
December 31, 1992 - - - (100)
------------- ------------- ------------- -------------
Balance, December 31, 1992 2,952,083 2,952 151,962 (155,814)
Net loss for the year ended
December 31, 1993 - - - (100)
------------- ------------- ------------- -------------
Balance, December 31, 1993 2,952,083 2,952 151,962 (155,914)
Net loss for the year ended
December 31, 1994 - - - (100)
------------- ------------- ------------- -------------
Balance, December 31, 1994 2,952,083 2,952 151,962 (156,014)
Net loss for the year ended
December 31, 1995 - - - (100)
------------- ------------- ------------- -------------
Balance, December 31, 1995 2,952,083 2,952 151,962 (156,114)
Net loss for the year ended
December 31, 1996 - - - (452)
------------- ------------- ------------- -------------
Balance, December 31, 1996 2,952,083 $ 2,952 $ 151,962 $ (156,566)
------------- ------------- ------------- -------------
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit) (Continued)
From Inception on December 31, 1985 through September 30, 2000
Deficit
Accumulated
Additional During the
Common Stock Paid-in Development
Shares Amount Capital Stage
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Balance, December 31, 1996 2,952,083 $ 2,952 $ 151,962 $ (156,566)
December 2, 1997 shares issued
to officers at $0.03 per
share for services 3,000,000 3,000 87,000 -
Net loss for the year ended
December 31, 1997 - - - (90,669)
------------- ------------- ------------- -------------
Balance, December 31, 1997 5,952,083 5,952 238,962 (247,235)
January 12, 1998 shares issued
for cash at $0.03 per share 1,116,667 1,117 32,382 -
March 10, 1998 shares issued
for cash at $0.03 per share 416,667 417 12,084 -
Net loss for the year ended
December 31, 1998 - - - (5,785)
------------- ------------- ------------- -------------
Balance, December 31, 1998 7,485,417 7,486 283,428 (253,020)
Net loss for the year ended
December 31, 1999 - - - (6,550)
------------- ------------- ------------- -------------
Balance, December 31, 1999 7,485,417 7,486 283,428 (259,570)
Contributed capital for
expenses (unaudited) - - 1,600 -
Net loss for the nine months
ended September 30, 2000
(unaudited) - - - (9,129)
------------- ------------- ------------- -------------
Balance, September 30, 2000
(unaudited) 7,485,417 $ 7,486 $ 285,028 $ (268,699)
============= ============= ============= =============
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
From
Inception on
For the For the December 31
Three Months Ended Nine Months Ended 1985 Through
September 30, September 30, September 30,
2000 1999 2000 1999 2000
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (2,605) $ (1,663) $ (9,129) $ (5,605) $ (268,699)
Adjustments to reconcile net loss to
net cash used by operating activities:
Stock issued for services - - - - 90,000
Changes in operating assets and
liabilities:
Increase in accounts payable 55 (1,612) 3,970 - 6,417
Increase in accrued liabilities - (100) - (100) 100
------------ ------------ ------------ ------------ ------------
Net Cash Used by Operating
Activities (2,550) (3,375) (5,159) (5,705) (172,182)
------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES - - - - -
------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Contributed capital for expenses - - 1,600 - 1,600
Net stock offering proceeds - - - - 200,914
------------ ------------ ------------ ------------ ------------
Net Cash Provided (Used) by
Financing Activities - - 1,600 - 202,514
------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN CASH (2,550) (3,375) (3,559) (5,705) 30,332
CASH AT BEGINNING OF PERIOD 32,882 37,885 33,891 40,215 -
------------ ------------ ------------ ------------ ------------
CASH AT END OF PERIOD $ 30,332 $ 34,510 $ 30,332 $ 34,510 $ 30,332
============ ============ ============ ============ ============
CASH PAID FOR:
Interest $ - $ - $ - $ - $ 1,400
Income taxes $ - $ - $ - $ - $ -
</TABLE>
<PAGE> 8
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Organization
Lazarus Industries, Inc. (the "Company") was incorporated under the laws of
the State of Utah on December 31, 1985. The Company was incorporated for the
purpose of engaging in the business of developing, manufacturing and marketing
proprietary medical devices. In 1991, the Company discontinued its
operations, and liquidated its assets leaving the Company dormant until 1996
when the Company began its operations again.
b. Provision for Taxes
At September 30, 2000, the Company had net operating loss carryforwards of
approximately $269,000 that may be offset against future taxable income
through 2020. No tax benefit has been reported in the financial statements,
because the Company believes there is a 50% or greater chance the
carryforwards will expire unused. Accordingly, the potential tax benefits of
the net operating loss carryforwards are offset by a valuation allowance of
the same amount
c. Accounting Method
The financial statements are prepared using the accrual method of accounting.
The Company has elected a calendar year end.
d. Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
e. Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three
months or less when purchased to be cash equivalents.
f. Basic Loss Per Share
The computation of basic income (loss) per share of common stock is based on
the weighted average number of shares issued and outstanding during the period
of the financial statements as follows:
<PAGE> 9
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
f. Basic Loss Per Share (Continued)
For the For the
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2000 1999 2000 1999
------------- ------------- ------------- -------------
Numerator - loss $ (2,605) $ (1,663) $ (9,129) $ (5,605)
Denominator - weighted
average number of
shares outstanding 7,485,417 7,485,417 7,485,417 7,485,417
------------- ------------- ------------- -------------
Basic loss per share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
============= ============= ============= =============
g. Change in Accounting Principle
In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities" which requires companies to record
derivatives as assets or liabilities, measured at fair market value. Gains or
losses resulting from changes in the values of those derivatives would be
accounted for depending on the use of the derivative and whether it qualifies
for hedge accounting. The key criterion for hedge accounting is that the
hedging relationship must be highly effective in achieving offsetting changes
in fair value or cash flows. SFAS No. 133 is effective for all fiscal
quarters of fiscal years beginning after June 15, 1999. Management believes
the adoption of this statement will have no material impact on the Company's
financial statements.
h. Revenue Recognition
The Company currently has no source of revenues. Revenue recognition policies
will be determined when principal operations begin.
i. Unaudited Financial Statements
The accompanying unaudited financial statements include all of the adjustments
which, in the opinion of management, are necessary for a fair presentation.
Such adjustments are of a normal recurring nature.
<PAGE> 10
LAZARUS INDUSTRIES, INC.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2000 and December 31, 1999
NOTE 2 - DISCONTINUED OPERATIONS
On March 29, 1988, Gaslight, Inc. (Gaslight) consummated an exchange agreement
(the "Exchange Agreement"), with Lazarus and the shareholders of Lazarus
providing for the acquisition of Lazarus as a wholly-owned subsidiary of
Gaslight. Under the terms of the Exchange Agreement, Gaslight was required to
call and convene a meeting of its stockholders for the purpose of submitting
to its stockholders for approval proposals for a 25-to-1 reverse stock split
or share consolidation of the 19,000,000 shares of Gaslight's common stock
issued and outstanding at March 18, 1988; approval of the Exchange Agreement,
amendment of Gaslight's Articles of Incorporation to change its name to
"Lazarus Industries, Inc." and the election of five designees of Lazarus to
the Board of Directors of Gaslight.
In connection with the acquisition of Lazarus, Gaslight issued 2,036,800
post-split shares of its restricted common stock, par value $0.001 to the
stockholders of Lazarus in exchange for all the issued and outstanding capital
stock of Lazarus. Consequently, Lazarus became a wholly-owned subsidiary of
Gaslight.
NOTE 3 -RELATED-PARTY TRANSACTIONS
The Company's president has paid out-of-pocket expenses through September 30,
2000 totaling $2,646 (including interest of $425.) The amount is unsecured,
accrues interest at 10% per annum and is due on demand.
NOTE 4 -GOING CONCERN
The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern which contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. The Company has not established revenues sufficient to cover its
operating costs and allow it to continue as a going concern. Management
intends to seek a merger with an existing, operating company.
<PAGE> 11
Part I - Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
(1) Caution Regarding Forward-Looking Information
This quarterly report contains certain forward-looking statements and
information relating to the Company that are based on the beliefs of the
Company or management as well as assumptions made by and information currently
available to the Company or management. When used in this document, the words
"anticipate," "believe," "estimate," "expect" and "intend" and similar
expressions, as they relate to the Company or its management, are intended to
identify forward-looking statements. Such statements reflect the current view
of the Company regarding future events and are subject to certain risks,
uncertainties and assumptions, including the risks and uncertainties noted.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially
from those described herein as anticipated, believed, estimated, expected or
intended. In each instance, forward-looking information should be considered
in light of the accompanying meaningful cautionary statements herein.
(2) Results of Operations
For the past several years, the Company has had no active business
operations, and has been seeking to acquire an interest in a business with
long-term growth potential. The Company currently has no commitment or
arrangement to participate in a business and cannot now predict what type of
business it may enter into or acquire. It is emphasized that the business
objectives discussed herein are extremely general and are not intended to be
restrictive on the discretion of the Company's management.
The Company is not aware of any trends that have or are reasonably likely
to have a material impact on its liquidity, net sales, revenues, or income
from continuing operations. There have been no events which have caused
material changes from period to period in one or more line items of the
financial statements or any seasonal aspects that have had a material effect
on the financial condition or results of operation.
During the preceding year, the Company has not experienced any material
changes in results of operation. During the quarter ended September 30, 2000,
the Company had $2,868 in general and administrative expenses, as compared to
$1,934 in expenses for the quarter ended September 30, 1999. All of such
expenses were incurred in connection with the Company's ongoing reporting
activities.
The Company has realized a net loss for the three months ended September
30, 2000 and 1999, of $2,605 and $1,663, respectively; and a net loss since
inception of $268,699.
<PAGE> 12
(3) Liquidity and Capital Resources
The Company has not experienced a material change in financial condition
over the past year. At September 30, 2000, the Company had working capital of
approximately $30,000, which has not changed significantly since December 31,
1999. Working capital as of both dates consists of short-term investments,
and cash and cash equivalents. The Company is dependent upon management and/or
significant shareholders to provide sufficient working capital to preserve the
integrity of the corporate entity during this phase. It is the intent of
management and significant shareholders to provide sufficient working capital
necessary to support and preserve the integrity of the corporate entity.
Although the Company's assets consist of cash and cash equivalents, the
Company has no intent to become, or hold itself out to be, engaged primarily
in the business of investing, reinvesting, or trading in securities.
Accordingly, the Company does not anticipate being required to register
pursuant to the Investment Company Act of 1940, and expects to be limited in
its ability to invest in securities, other than cash equivalents and
government securities, in the aggregate amount of over 40% of its assets.
There can be no assurance that any investment made by the Company will not
result in losses.
The Company has very limited liquid assets, and such assets may not be
sufficient for the Company to meet its operating needs over the next twelve
months. The Company does not anticipate, however, that it will require
substantial revenue, or additional cash assets, until it enters into an
acquisition or reorganization transaction with a business opportunity. The
Company has no material revenues and its needs for capital will in all
likelihood change dramatically if it acquires an interest in a business
opportunity in the next twelve months. The Company's current operating plan
is to (a) cover the administrative and reporting requirements of a public
company; and (b) search for, and investigate, potential businesses, products,
technologies and companies for acquisition. At present, the Company has no
understandings, commitments or agreements with respect to the acquisition of
any business, product, technology or company, and there can be no assurance
that the Company will be able to identify any such business, product,
technology or entity suitable for an acquisition or reorganization
transaction. Moreover, there can be no assurance the Company will be
successful in its efforts to enter into consummate an acquisition or
reorganization transaction on terms favorable or beneficial to the Company and
its shareholders, or that it, or its successor, will be able to effectively
manage the business opportunity the Company acquires or becomes engaged in.
<PAGE> 13
Part II - Other Information
Item 1 - Legal Proceedings
None.
Item 2 - Changes in Securities
None.
Item 3 - Defaults on Senior Securities
None.
Item 4 - Submission of Matters to a Vote of Security Holders
During the quarter ended September 30, 2000, the Company held no
regularly scheduled, called or special meetings of shareholders during the
reporting period, nor were any matters submitted to a vote of this Company's
security holders.
Item 5 - Other Information
None.
Item 6 - Exhibits and Reports on Form 8-K
None.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
LAZARUS INDUSTRIES, INC.
November 3, 2000 /s/ Jack M. Gertino
__________________________________
Jack M. Gertino
President
LAZARUS INDUSTRIES, INC.
November 3, 2000 /s/ James C. Lewis
___________________________________
James C. Lewis
Secretary/Treasurer
