FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
Of the Securities Exchange Act of 1934
For Quarter Ended March 31, 1999
Commission File Number 33-26787-0
LIFE MEDICAL TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 87-0403828
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
6975 SOUTH UNION PARK DRIVE #600
SALT LAKE CITY, UTAH 84047
(Address of principal executive offices)
Registrant's telephone number
including area code (801) 256-9600
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 such shorter period that the
registrant was required to file such reports)
Yes No X
and (2) has been subject to such filing requirements for the past 90 days.
Yes X No
25,424,317
(Number of shares of common
stock the registrant had
outstanding as of November 30, 1999)
PART 1
ITEM 1 - FINANCIAL STATEMENTS
The condensed financial statements included herein have been prepared by
the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that
the disclosures are adequate to make the information presented not misleading.
In the opinion of the Company, all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position of
the Company as of March 31, 1999 and the results of its operations and
changes in its financial position from December 31, 1998 through March 31,
1999 have been made. The results of its operations for such interim period
is not necessarily indicative of the results to be expected for the entire year.
Life Medical Technologies, Inc.
Balance Sheet
ASSETS
March 31, December 31,
1999 1998
Organization costs (Note 1) $ 30 $ 122
TOTAL ASSETS $ 30 $ 122
STOCKHOLDERS' EQUITY
Preferred stock 5,000,000 shares authorized
at $.001 par value; 0 shares outstanding $ - $ -
Common stock, 150,000,000 shares authorized
at $.001 par value; 144,317 shares
issued and outstanding, respectively 144 144
Capital in Excess of Par Value 1,838,110 1,838,110
Retained Deficit (1,838,224) (1,838,132)
Total Stockholders' Equity 30 122
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 30 $ 122
Life Medical Technologies, Inc.
Statements of Operations
(unaudited)
For the Three
Months Ended
March 31,
1999 1998
REVENUE
Sales $ - $ 4,702
EXPENSES
Cost of sales (Note 1) - 2,350
Amortization (Note 1) 92 92
Selling, general and administrative - 1,252
Interest - 2,289
Bad debt - -
Total Expenses 92 5,983
OTHER INCOME/EXPENSES
Interest - 70
NET INCOME (LOSS) - Before Taxes $ (92 ) $ (1,211 )
Taxes - -
INCOME (LOSS) $ (92 ) $ (1,211 )
Loss Per Common Share $ - $ -
Average Outstanding Shares 144,317 54,797
Life Medical Technologies, Inc.
Statements of Cash Flows
For the Three
Months Ended
March 31,
1999 1998
CASH FLOW FROM
OPERATING ACTIVITIES
Net Income (Loss) $ (92 ) $ (1,211 )
Amortization 92 92
Increase (decrease)
In inventory & accounts receivable - (354 )
In accounts payable - 1,986
Net Increase in Cash Flows From
Operating Activities - 513
CASH FLOWS FROM
INVESTING ACTIVITIES
Cash Disbursed to Subsidiary - -
- -
CASH FLOWS FROM
FINANCING ACTIVITIES
Issuance of Note Payable for Cash - -
- -
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS - 513
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD - 6,355
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ - $ 6,868
CASH PAID DURING THE PERIOD FOR:
Interest $ - $ -
Income Taxes $ - $ -
Life Medical Technologies, Inc.
Notes to the Financial Statements
March 31, 1999
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
Background and History Life Medical Technologies was organized on
December 26, 1991 in the State of Delaware. It was in the business of
bringing simple, cost effective, new medical product technology to the
health care market place. By 1998, sales and marketing had declined to non
operations status and the remaining assets were spunoff to its wholly owned
subsidiary and sold to two former employees of the Company.
Cash and Cash Equivalents The Company considers all highly liquid
investments with maturities of three months or less to be cash equivalents.
Organization Costs Organization costs are being amortized over a sixty
month period on a straight line basis. Amortization for 1999, 1998 and 1997
was $92, $366 and $387, respectively.
NOTE 2 - INCOME TAXES
The Company adopted Statement of Financial Standards No. 109 "Accounting
for Income Taxes" in the fiscal year ended December 31, 1998 and was applied
retroactively.
Statement of Financial Accounting Standards No. 109 "Accounting for Income
Taxes" requires an asset and liability approach for financial accounting
and reporting for income tax purposes. This statement recognizes (a) the
amount of taxes payable or refundable for the current year and (b) deferred
tax liabilities and assets for future tax consequences of events that have
been recognized in the financial statements or tax returns.
Deferred income taxes result from temporary differences in the recognition
of accounting transactions for tax and financial purposes. There were no
temporary differences at December 31, 1998 and earlier years; accordingly,
no deferred tax liabilities have been recognized for all years.
The Company has cumulative net operating loss carryforwards of over
$1,000,000 at December 31, 1998. No effect has been shown in the financial
statements for the net operating loss carryforwards as the likelihood of
future tax benefit from such net operating loss carryforwards is highly
improbable. Accordingly, the potential tax benefits of the net operating
loss carryforwards, estimated based upon current tax rates at December 31,
1998 have been offset by valuation reserves of the same amount.
Life Medical Technologies, Inc.
Notes to Financial Statements
December 31, 1998
NOTE 3 - USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements and revenues and expenses during the reporting period. In these
financial statements, assets, liabilities and earnings involve extensive
reliance on management's estimates. Actual results could differ from those
NOTE 4 - COMMON STOCK TRANSACTIONS
In 1998, the shareholders approved a change in the capital structure of
the Company to increase the authorized stock to 5,000,000 shares preferred
$.001 par value and 150,000,000 shares authorized $.001 par value. The
change was made effective with the State of Delaware on June 7, 1999.
NOTE 5 - REVERSE STOCK SPLIT/BOARD ACTIONS
In 1998, board of directors authorized a 1 for 1000 reverse stock split
upon approval by the stockholders. The reverse split was affected in 1999.
The financial statements for all periods have been restated to reflect the
reverse stock split.
In 1998, the board of directors also authorized several issuances of stock
for services rendered to the Company. A total of 25,280,000 post reverse
split shares that were to be issued upon the reverse stock split. The shares
were authorized in October 1999 issued in July 1999.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources. The Registrant had approximately $0 as
operating capital at March 31, 1999. The Registrant intends to raise
additional funds as needed through private placements with accredited and
sophisticated investors.
Results of Operation. Due to the lack of operations during the quarter
ended March 31, 1999, the registrant had net loss of $(92), compared to net
loss of $(1,211) for the same period last year.
Plan of Operations. The Company is currently in the process of looking for
business opportunities to acquire or merge with. There is no guarantee that
management will be successful in finding such an opportunity. The Company is
also in the process of bringing all of its periodic reports current for
filing with the Securities and Exchange Commission. During this process, the
Company intends to raise operational capital through private placements.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings. None
Item 2. Changes in Securities.
In 1998, board of directors authorized a 1 for 1000 reverse stock split
upon approval by the stockholders. The reverse split was affected in 1999.
The financial statements for all periods have been restated to reflect the
reverse stock split.
In 1998, the board of directors also authorized several issuances of stock
for services rendered to the Company. A total of 25,280,000 post reverse
split shares that were to be issued upon the reverse stock split. The shares
were issued in July 1999.
Item 3. Defaults Upon Senior Securities. None
Item 4. Submission of Matters to a Vote of Security Holders.
In 1998, board of directors authorized a 1 for 1000 reverse stock split
upon approval by the stockholders. The reverse split was affected in 1999.
The financial statements for all periods have been restated to reflect the
reverse stock split.
Item 5. Other Information. None
Item 6. Exhibits and Reports on Form 8-K. None
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 authorized officer.
Dated November 30, 1999
Life Medical Technologies, Inc.
/s/ Robert Kropf
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