U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: August 31, 1996
[ ]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 33-14066-NY
Sunlite Technologies Corp.
(Exact name of small business issuer as specified in its charter)
Delaware 06-1221388
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
P.O. Box 620723
Douglaston, NY 11362
(Address of principal executive offices)
(718)423-6741
(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 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
37,180,000 shares of Common Stock, $.0001 par value, outstanding on
August 31, 1996.
<PAGE>
Sunlite Technologies Corp.
Table of Contents
Page
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheet-
at August 31, 1996 3
Statements of Operations-
For Three Months Ended Aug 31,1996
For Three Months Ended Aug 31,1995
For Nine Months Ended Aug 31, 1996
For Nine months ended Aug 31, 1995 4
Statements of Cash Flows
For nine months ended Aug 31, 1996
For nine months ended Aug 31, 1995 5
Notes to Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II -- OTHER INFORMATION 8
SIGNATURES 9
<PAGE>
Sunlite Technologies Corp.
(a development stage company)
BALANCE SHEETS
August 31, 1996
ASSETS
Current assets:
Cash $ 1,522
Royalty receivable 2,028
-----
Total current assets 3,550
Property, plant and equipment:
Equipment and fixtures 21,629
Less accumulated depreciation 10,366
------
Property, Plant & Equip net 11,263
Intangible assets:
Patents at cost 62,030
Less accumulated amortization 31,793
------
Patents, Net 30,237
Other assets:
Royalties receivable - Long term 40,688
_______
$ 85,738
======
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable $ 20,650
Accrued rent (related parties) 18,234
Payroll taxes payable 2,737
Notes payable 210,218
Notes payable (related parties) 80,522
-------
Total current liabilities 332,361
Stockholder's equity (deficiency):
Common stock $.0001 par value;
500,000,000 shares authorized;
37,640,000 issued and outstanding
At August 31, 1996 3,764
Additional paid in capital 569,756
Deficit accumulated during
development stage (820,143)
-------
(246,623)
-------
$ 85,738
=======
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<PAGE>
Sunlite Technologies Corp.
(a development stage company)
STATEMENT OF OPERATIONS
(UNAUDITED)
3 months ended: 9 months ended:
August 31th. August 31th.
1996 1995 1996 1995
Revenues:
Sales $ 2,047 - 4,643 -
Royalty Income 1,018 - 3,566 -
_____ _____ _____ ____
3,065 8,209
Cost of sales - - - -
----- ----- ----- ----
Selling, general and
administrative
expenses 15,347 9,851 48,114 29,904
Loss from Operations (12,282) (9,851) (39,905) (29,904)
Net income (loss) (12,282) $ (9,851) (39,905) $ (29,904)
Net (loss) per share nil nil nil nil
-4-
<PAGE>
Sunlite Technologies Corp.
(a development stage company)
STATEMENT OF CASH FLOWS
(UNAUDITED)
9 months ended: 9 months ended:
August 31, 1996 August 31, 1995
Cash flows from
operating activities:
Net (Loss) $ (39,905) $ (29,904)
Adjustments to reconcile net
income (loss) to cash flows
from operating activities:
Depreciation & amortization 7,328 3,879
(Increase) decrease in current
assets:
Accounts receivable 3,789 207
Royalty receivable 4,494
Equipment (13,917)
Increase (decrease) in current
liabilities:
Accounts payable 500 (2,295)
Accrued interest expense - 9,961
Notes payable 17,500 15,541
Notes payable related parties 5,618 5,210
Accrued rent related parties 4,590 4,500
------ ------
Cash Used by
operating activities (10,003) 99
Cash used in investing activities
Cash flows from financining activities:
Cash provided by
financing activities
Loan proceeds 11,500
Stock in private sale
______ ______
Cash provided (Used)
by financing activities
Increase (decrease) in cash
and cash equivalents 1,497 99
Cash and cash equivalents,
beginning 25 (107)
----- -----
Cash and cash equivalents,
ending 1,522 (8)
===== =====
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<PAGE>
Sunlite Technologies Corp.
(a development stage company)
(NOTES TO CONDENSED FINANCIAL STATEMENTS)
August 31, 1996
(Unaudited)
Note A- BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements presented in
accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-QSB and item 310 under
subpart A-Regulation S-B. Accordingly, they do not include all information
and footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all adjustments
considered necessary for a fair presentation have been included. Operating
results for the nine months ended August 31, 1996 are not necessarily
indicative of results that may be expected for the year ending November 30,
1996. For further information, refer to the consolidated financial
statements and footnotes, thereto included in the Company's annual report on
form 10-KSB for the year ended November 30, 1995.
-6-
<PAGE>
ITEM 2: Management's Discussion and Analysis of Financial Conditions and
Results of Operations:
Results of Operations:
The Company had gross revenue of $3,065 for the three months ending
August 31, 1996 compared to no gross revenue for the three months ending
August 31, 1995. Gross revenue for the nine month ended August 31 1996, were
$8,209 compared to no gross revenue for the nine months ended August 31,
1995.
The Company's net loss for the quarter ending August 31, 1996 was
$12,282 compared to $9,851 for the same quarter ending August 31, 1995. The
Company had accrued interest expense of $7,706 or 62% of the loss was due to
Interest on its loans due. The nine month loss was $39,905 compared to
$29,904 for the same nine month period ending August 31, 1995. The Interest
expense was $23,119 for the period or 58% of the loss.
The total liabilities at August 31, 1996 were $332,361 of which are
notes and interest due on the notes to non related and related parties of
$290,740. The Company is in default on all its notes payable.
The Company's online service revenues are generated from subscribers
paying a monthly fee. The Company charges a flat monthly rate for unlimited
online time. The Company is exploring different ways to increase the online
revenues, by designing and setting up "web pages" for some of its advertising
radio clients. The Company is broadcasting a live radio talk show which airs
on a local FM radio station in the New York area. The purpose of this show
is to discuss the Internet, the World Wide Web and any computer related
topic. The show will have guests that will discuss and answer questions on
their specialized area of expertise, and will take live phone calls from the
radio show listeners. The Company sells radio advertising time to increase
its revenues, and hopes the radio show will benefit the online service as
well.
The online service and Internet markets are highly competitive. The
Company believes it's service along with its own radio show may give the
Company an unusual approach to the online industry, and hopes its service
will appeal to first time computer users as well as seasoned computer users
looking to connect to the Internet for a very reasonable rate.
The Company, has received its minimum royalty payment on a monthly basis
now, and is hopeful that the licensee will begin a vigorous sales campaign
which could start generating sales of its "Solar Rechargeable battery" and
these sales could enable the Company to receive a greater royalty payment
than its minimum amount to date.
Liquidity and Capital Resources:
The only source of funds have been the minimum royalty payments, and the
online revenue from its Bulletin Board Service. The Company has raised an
additional $11,500 through private sales of its common stock. Management
hopes to increase its revenue from its online service subscriptions. The
Company is exploring other ways to increase revenues.
-7-
<PAGE>
OTHER INFORMATION
Item 1. Legal Procedures
None
Item 2. Change 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
None
Item 6. Exhibits and Reports of Form 8-K
None
-8-
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 of 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
in its behalf by the undersigned,thereunto duly authorized.
Sunlite Technologies Corp.
by /s/Lewis Scala
Lewis Scala
President
Dated: September 23,1996
-9-
<PAGE>
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