FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: May 31, 1997
[ ]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
52,330,000 shares of Common Stock, $.0001 par value,
outstanding on May 31, 1997
<PAGE>
Sunlite Technologies Corp.
Table of Contents
Page
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheet
at May 31, 1997 3
Statements of Operations-
For Three Months Ended May 31,1997
For Three Months Ended May 31,1996
For Six Months Ended May 31, 1997
For six months ended May 31, 1996 4
Statements of Cash Flows
For six months ended May 31, 1997
For six months ended May 31, 1996 5
Statement Of Stockholders Equity
Balance as of May 31, 1997 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
PART II -- OTHER INFORMATION 9
SIGNATURES 10
<PAGE>
Sunlite Technologies Corp.
(a development stage company)
BALANCE SHEET
May 31, 1997
(UNAUDITED)
ASSETS
Current assets:
Cash $ 118
------
Total current assets 118
Property, plant and equipment:
Equipment and fixtures 21,135
Less accumulated depreciation 11,424
------
Property, Plant & Equip net 9,711
Intangible assets:
Patents at cost 62,030
Less accumulated amortization 35,372
------
Patents, Net 26,658
------
$ 36,487
======
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable $ 18,247
Accrued rent (related parties) 18,274
Payroll taxes payable 2,737
Notes payable 18,384
-------
Total current liabilities 57,642
Stockholder's equity (deficiency):
Common stock $.0001 par value;
500,000,000 shares authorized;
52,330,000 issued and outstanding
At May 31, 1996 5,233
Additional paid in capital 882,559
Deficit accumulated during
development stage (908,947)
-------
(21,155)
------
$ 36,487
=======
-3-
<PAGE>
Sunlite Technologies Corp.
(a development stage company)
STATEMENT OF OPERATIONS
(UNAUDITED)
3 months ended: 6 months ended:
May 31th. May 31th.
1997 1996 1997 1996
Revenues:
Internet subscriptions $ 2,088 $ 1,275 $ 3,804 $ 2,596
Royalty income - 1,124 2,250 2,547
Radio Advertising 250 - - -
------ ----- ----- -----
2,338 2,399 6,054 5,143
Cost and expenses:
Internet expenses 2,335 - 5,044 -
Radio show expenses 600 - 6,800
_______ ______ ______ ______
2,935 - 11,844 -
Gross Profit (597) (2,399) (5,790)
Selling, and administrative
expenses 6,444 16,800 23,510 32,766
Loss from Operations (7,041) (14,401) (29,300) (27,623)
Net income (loss) (7,041) $ (14,401) (29,300) $ (27,623)
Net (loss) per share nil nil nil nil
-4-
<PAGE>
Sunlite Technologies Corp.
(a development stage company)
STATEMENT OF CASH FLOWS
(UNAUDITED)
6 months ended: 6 months ended:
May 31, 1997 May 31, 1996
Cash flows from
operating activities:
Net (Loss) $ (29,300) $ (27,623)
Adjustments to reconcile net
income (loss) to cash flows
from operating activities:
Depreciation & amortization 6,484 4,732
(Increase) decrease in current
assets:
Accounts receivable 250 3,789
Royalty receivable - 2,512
Equipment - (13,917)
Increase (decrease) in current
liabilities:
Accounts payable 3,550 -
Notes payable (214,836) 11,667
Notes payable related (82,395) 3,745
Accrued rent related parties (245) 3,612
Cash Used by
operating activities (316,492) (11,483)
Cash used in investing activities
Cash used in financing activities:
Proceeds from private sale 5,000 11,500
Proceeds from Loan conversions 308,023 -
Cash provided (used)
financing activities
------- ------
313,023 11,500
Increase (decrease) in cash
and cash equivalents (3,469) 17
Cash and cash equivalents,
beginning 3,587 25
----- -----
Cash and cash equivalents,
ending 118 42
===== =====
-5-
<PAGE>
Sunlite Technologies Corp.
(a development stage company)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIENCY)
(UNAUDITED)
Common Add'l Paid Accumulated
Stock in Capital Deficit
________ ___________ _________
November 30, 1996 $ 3,769 $ 571,001 $ (879,647)
Feb. 10, 1997
in a private placement
issued 200,000 shares 20 4,980
Net (loss) for period (22,259)
May 31, 1997
Issued 14,440,000 shares
of Common Stock in
settlement of $308,021
in Loans due the Company 1,444 306,579
Net (loss) for period (7,041)
Balance at:
May 31, 1997 $ 5,233 $ 882,560 $ (908,947)
===== ======= =======
-6-
<PAGE>
Sunlite Technologies Corp.
(a development stage company)
(NOTES TO CONDENSED FINANCIAL STATEMENTS)
May 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 six months ended May 31, 1997 are not
necessarily indicative of results that may be expected for the year ending
November 30, 1997. 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, 1996.
Note B- On February 10, 1997 the Company sold in a private transaction
200,000 shares of stock to a private individual at $.025 per share for a
total of $5000. This money was added to the general working fund. This has
increased the outstanding shares to 37,890,000 from the year end of
37,690,000 issued and outstanding.
Note C- In April 1997, the Company settled 10 of its 11 outstanding loans
in the amount of $308,021 and Issued 14,440,000 shares of its common stock.
This has increased the outstanding shares to 52,330,000 from the year end
of 37,690,000
-7-
<PAGE>
ITEM 2: Management's Discussion and Analysis of Financial Conditions and
Results of Operations:
Results of Operations:
The Company had gross sales of $2,338 for the three months ending May
31, 1997 vs. $2,399 for the three months ending May 31 1996. Gross sales
for the six month period ended May 31 1997 were $6,054 vs. $5,143 for the
six months ended May 31, 1996.
The Company's net loss for the quarter ending May 31, 1997 was $7,041
vs. $14,401 for the same quarter ending May 31, 1996. Since the Company had
settled all but one of its outstanding loans it only had accrued interest
expense of $448 vs. accrued interest expenses for the three month ending
May 31, 1996 of $7,706. The six month loss was $29,300 vs. $27,623 for the
same six month period ending May 31, 1996.
Since December 1995, the Company has been running an on-line service
or Bulletin Board System that allows Internet connectivity for its users.
The Internet access is sold on a month to month subscription basis. The
Company charges a minimal amount for unlimited monthly access and plans to
increase the monthly access fee it charges.
The Company's radio show has not been able to generate enough cash
flow to pay its expense. The Company will continue to seek additional
funding for further expansion of its on-line business and radio show
production.
The total liabilities at May 31, 1997 were $57,642 of which are
accrued rent due to related parties of $17,826. The Company is in default
on the one note due in the amount of $18,274.
Liquidity and Capital Resources:
The only source of revenue have been the Subscription income from the
online service, and the advertisement income from the radio show which have
not generated enough cash flow to meet the Company's monthly expenses. The
Company's has been able to seek private placements and borrow funds when
needed. However, there can be no assurance that they will be able to do
this in the future. The Company had raised an additional $5,000 through
private sales of its common stock since December, 1996. The Company is
exploring the idea of entering into another license agreement for its "SRB"
technology or the possible sale of its patents. That would generate
additional cash which management could use to increase its online business.
-8-
<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
-9-
<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: June 25, 1997
-10-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> NOV-30-1997
<PERIOD-END> MAY-31-1997
<CASH> 118
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 118
<PP&E> 21135
<DEPRECIATION> 11424
<TOTAL-ASSETS> 36487
<CURRENT-LIABILITIES> 57642
<BONDS> 0
0
0
<COMMON> 5233
<OTHER-SE> 882559
<TOTAL-LIABILITY-AND-EQUITY> (78797)
<SALES> 2338
<TOTAL-REVENUES> 2338
<CGS> 2935
<TOTAL-COSTS> 2935
<OTHER-EXPENSES> 5996
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 448
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7041)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
