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, 2000
Commission File Number 33-26787-0
__ LIFE MEDICAL TECHNOLOGIES, INC.____
(Exact name of registrant as specified in its charter)
Delaware__ 87-040382
(State or other
jurisdiction of
incorporation or organization)
(IRS Employer Identification No.)
6975 South Union Park Drive, #600, Salt Lake City, Utah 84047
(Address of principal executive offices)
______________801-256-9600_______________
(Registrant's telephone number including area code)
_______________________________________
(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_X_ No ___
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 April 25, 2000)
PART 1
ITEM 1 - FINANCIAL STATEMENTS
The condensed financial statements included herein have been prepared by the
Company, pursuant to the rules and regulations of the Securities and Exchange
Commission.
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, 2000 and the results of its operations and changes
in its financial position from September 30, 1999 through March 31, 2000 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.
INDEPENDENT AUDITORS REVIEW REPORT
To the Board of Directors
Life Medical Technologies, Inc.
Salt Lake City, Utah
We have reviewed the accompanying balance sheet of Life Medical Technologies,
Inc. as of March 31, 2000, and the related statements of income, stockholders
equity, and cash flows for the period then ended, in accordance with
Statements on Standards for Accounting and Review Services issued by the
American Institute of Certified Public Accountants. All information
included in these financial statements is the representation of the management
of Life Medical Technologies, Inc.
A review consists principally of inquiries of Company personnel and analytical
procedures applied to financial data. It is substantially less in scope than
an audit in accordance with generally accepted auditing standards, the
objective of which is the expression of an opinion regarding the financial
statements taken as a whole. Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements in order for them to
be in conformity with generally accepted accounting principles.
The accompanying balance sheet as of September 30, 1999 was audited by us and
we expressed an unqualified opinion on it in our report dated January 21, 2000.
The accompanying statement of operations and cash flows for the three month
and six month period ended March 31, 1999 and the three months ended December
31, 1999 were not audited by us and, accordingly, we do not express an opinion
on them.
Crouch, Bierwolf & Chisholm
Salt Lake City, Utah
May 15, 2000
LIFE MEDICAL TECHNOLOGIES, INC.
Balance Sheet
ASSETS
March 31, December 31,
2000 1999
Total Assets $ - $ -
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; 25,424,317 shares
issued and outstanding, respectively 25,424 25,424
Capital in Excess of Par Value 1,838,110 1,838,110
Retained Deficit (1,863,534) (1,863,534 )
Total Stockholders' Equity - -
$ - $ -
LIFE MEDICAL TECHNOLOGIES, INC.
Statements of Operations
(unaudited)
For the Three
Months Ended
March 31
2000 1999
REVENUE $ - $ -
EXPENSES
Amortization (Note 1) - 92
Total Expenses - 92
NET INCOME (LOSS) - Before Taxes $ - $ (92)
Taxes - -
INCOME (LOSS) $ - $ (92)
Loss Per Common Share $ - $ -
Average Outstanding Shares 25,424,317 144,317
LIFE MEDICAL TECHNOLOGIES, INC.
Statement of Stockholders' Equity
March 31, 2000
<TABLE>
<S> <C> <C><C> <C><C> <C><C>
Additional
Common StockShares Common Stock Amount Paid-in Retained
Capital Deficit
Balance, December 31, 1998144,317 144 1,838,110 (1,838,132)
Stock issued for 280,000 280 - -
services at $.001
Stock issued for 25,000,000 25,000 - -
services at $.001
Net (loss) - - - (25,402)
Balance, December 31, 199925,424,317 25,424 1,838,110 (1,863,534)
Net Income - - - -
Balance,
March 31, 2000 25,424,317$ $ 1,838,110$ (1,863,534)
25,424
</TABLE>
LIFE MEDICAL TECHNOLOGIES, INC.
Statements of Cash Flows
For the Three
Months Ended
March 31
2000 1999
CASH FLOW FROM
OPERATING ACTIVITIES
Net Income (Loss) $ - $ (92)
Amortization - 92
Increase (decrease)
In inventory & accounts receivable - -
In accounts payable - -
Net Increase in Cash Flows From
Operating Activities - -
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 - -
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD - -
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ - $ -
CASH PAID DURING THE PERIOD FOR:
Interest $ - $ -
Income Taxes $ - $ -
LIFE MEDICAL TECHNOLOGIES, INC.
Notes to the Financial Statements
March 31, 2000
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 spun-off 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.
NOTE 2 - INCOME TAXES
The Company adopted Statement of Financial Standards No. 109 AAccounting for
Income Taxes in the fiscal year ended December 31, 1998 which was applied
retroactively.
Statement of Financial Accounting Standards No. 109 AAccounting 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, 1999 and earlier years; accordingly,
no deferred tax liabilities have been recognized for all years.
The Company has cumulative net operating loss carry-forwards of over
$1,000,000 at December 31, 1999. No effect has been shown in the financial
statements for the net operating loss carry-forwards as the likelihood of
future tax benefit from such net operating loss carry-forwards is highly
improbable. Accordingly, the potential tax benefits of the net operating
loss carry-forwards, estimated based upon current tax rates at December 31,
1999 have been offset by valuation reserves of the same amount.
LIFE MEDICAL TECHNOLOGIES, INC.
Notes to Financial Statements
March 31, 2000
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 managements' estimates. Actual results could differ from those
estimates.
NOTE 4 - COMMON STOCK TRANSACTIONS
In 1998, the shareholders approved a change in the capital structure of the
Company toincrease the authorized stock to 5,000,000 shares preferred $.001
par value and 150,000,000 shares common $.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 were
authorized in October 1998 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 and $0 at March 31, 2000. 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, 2000, the registrant had net income of $0, compared to net loss of
$(92) 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. 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 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 April 25, 2000
Life Medical Technologies Inc.
/s/ Robert Kropf
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