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: August 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
54,705,000 shares of Common Stock, $.0001 par value,
outstanding on Aug. 31, 1997
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Sunlite Technologies Corp.
Table of Contents
Page
PART I -- FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheet
at Aug. 31, 1997 3
Statements of Operations-
For Three Months Ended Aug. 31,1997
For Three Months Ended Aug. 31,1996
For Nine Months Ended Aug. 31, 1997
For Nine Months ended Aug. 31, 1996 4
Statements of Cash Flows
For Nine Months ended Aug. 31, 1997
For Nine Months ended Aug. 31, 1996 5
Statement Of Stockholders Equity
Balance as of Aug. 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
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Sunlite Technologies Corp.
(a development stage company)
BALANCE SHEET
August 31, 1997
(UNAUDITED)
ASSETS
Current assets:
Cash $ 757
Subscription receivable 2,500
Inventory 4,765
-----
Total current assets 8,022
Property, plant and equipment:
Equipment and fixtures 21,135
Less accumulated depreciation 13,474
------
Property, Plant & Equip net 7,661
Intangible assets:
Patents at cost 62,030
Less accumulated amortization 36,565
------
Patents, Net 25,465
------
$ 41,148
======
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
Current liabilities:
Accounts payable $ 14,216
Accrued rent (related parties) 14,884
Payroll taxes payable 2,737
Notes payable 21,503
------
Total current liabilities 53,340
Stockholder's equity (deficiency):
Common stock $.0001 par value;
500,000,000 shares authorized;
54,710,000 issued and outstanding
At Aug. 31, 1997 5,471
Additional paid in capital 899,821
Deficit accumulated during
development stage (917,484)
-------
(12,192)
-------
$ 41,148
=======
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Sunlite Technologies Corp.
(a development stage company)
STATEMENT OF OPERATIONS
(UNAUDITED)
3 months ended: 9 months ended:
Aug. 31th. Aug. 31th.
1997 1996 1997 1996
Revenues:
Internet subscriptions $ 1,324 $ 2,047 $ 5,128 $ 4,643
Royalty income - 1,018 2,250 3,566
Radio Advertising - - - -
------ ------ ------ -----
1,324 3,065 7,378 8,209
Cost and expenses:
Internet expenses 2,733 - 7,777 -
Radio show expenses - - 6,800
_______ ______ ______ ______
2,733 - 14,577 8,209
Gross Profit (1,409) 3,065 (7,199)
Selling, and
administrative expenses 7,128 15,347 30,638 48,114
------ ------ ------ ------
Loss from Operations (8,537) (12,282) (37,837) (39,905)
Net income (loss) (8,537) $ (12,282) (37,837) $ (39,905)
===== ====== ====== ======
Net (loss) per share nil nil nil nil
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<PAGE>
Sunlite Technologies Corp.
(a development stage company)
STATEMENT OF CASH FLOWS
(UNAUDITED)
9 months ended: 9 months ended:
Aug. 31, 1997 Aug. 31, 1996
Cash flows from
operating activities:
Net (Loss) $ (37,837) $ (39,905)
Adjustments to reconcile net
income (loss) to cash flows
from operating activities:
Depreciation & amortization 9,728 7,328
(Increase) decrease in current
assets:
Accounts receivable (2,250) 3,789
Royalty receivable - 4,494
Equipment - (13,917)
Inventory (4,765)
Increase (decrease) in current
liabilities:
Accounts payable (482) 500
Notes payable (212,165) 17,500
Notes payable related (82,395) 5,618
Accrued rent related parties (3,187) 4,590
------- ------
Cash Used by
operating activities (333,353) (10,003)
Cash used in investing activities
Cash used in financing activities:
Proceeds from private sale 22,500 11,500
Proceeds from Loan conversions 308,023 -
Cash provided (used)
financing activities ------- ------
330,523 11,500
Increase (decrease) in cash
and cash equivalents (2,830) 1,497
Cash and cash equivalents,
beginning 3,587 25
----- -----
Cash and cash equivalents,
ending 757 1,522
====== =====
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<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 sale
issued 200,000 shares 20 4,980
Net (loss) for period (22,259)
May 31, 1997
Issued 15,440,000 shares
of Common Stock in
settlement of $308,021
in Loans due the Company 1,544 306,478
Net (loss) for period (7,041)
June 24, 1997
In a private sale
issued 1,000,000 shares 100 9,900
August 24, 1997
In a private sale
issued 375,000 shares 38 7,462
Net (loss) for period (8,537)
Balance at:
May 31, 1997 $ 5,471 $ 899,821 $ (917,484)
===== ======= =======
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<PAGE>
Sunlite Technologies Corp.
(a development stage company)
(NOTES TO CONDENSED FINANCIAL STATEMENTS)
Aug. 31, 1997
(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 Aug. 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.
Note C- In April 1997, the Company settled 10 of its 11 outstanding loans in
the amount of $308,021 and Issued 15,440,000 shares of its common stock.
Note D- In June 1997, the Company sold in a private transaction 1,000,000
shares of common stock to a private individual at $.01 per share for a total
of $10,000.
Note E- In August 24, 1997, the Company sold in a private transaction 375,000
shares of common stock at $.02 per share for a total of $7,500.
-7-
<PAGE>
ITEM 2: Management's Discussion and Analysis of Financial Conditions and
Results of Operations:
Results of Operations:
The Company had gross revenues of $1,324 for the three months ending
August 31, 1997 vs. $3,065 for the three months ending August 31, 1996.
The net (loss) for three months was $(8,537) as compared to a loss of $(12,282)
for the same period last year.
Gross revenues for the nine month period ended August 31, 1997 was $7,378
vs. $8,209 for the nine months ended August 31, 1996.
The net (loss) for the nine months ending August 31, 1997 was ($37,837)
as compared to ($39,905) for the nine months ended August 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. However, the Company would like to continue with this radio
broadcast and is trying to find sponsors and additional funding to bring the
show back on the air.
In late August the Company has entered into the retail CD-ROM sales business
and has begun setting up CD-ROMS "racks" in various store locations on a
consignment basis. The Company hopes to offer popular software CD-ROMS in high
traffic locations and other then traditional computer related stores.
The Company is seeking the impulse buyer and are able to offer retail store
owners the opportunity of displaying many of the top selling CD-ROM computer
programs without their outlay of cash.
The total liabilities at August 31, 1997 were $53,340 of which are accrued
rent due to related parties of $14,884. The Company is in default on the one
note due in the amount of $21,503.
Liquidity and Capital Resources:
The only source of revenue is the Subscription income from the online
service. However this income is not enough to meet th e 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 $22,500
through private sales of its common stock since December 1,1996. 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.
The Company will continue to seek additional funding for further
expansion of its on-line business and radio show production.
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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
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<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: Sept. 25, 1997
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<PAGE>
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