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 THE QUARTER ENDED JUNE 30, 2000
COMMISSION FILE NUMBER: 33-26787-0
IBONZAI.COM, INC., FORMERLY KNOWN AS
LIFE MEDICAL TECHNOLOGIES, INC.
(EXACT NAME OF SMALL BUSINESS ISSUER AS SPECIFIED IN ITS CHARTER)
DELAWARE 87-03403828
(STATE OR OTHER JURISDICTION (IRS EMPLOYER IDENTIFICATION NO.)
OF INCORPORATION OR ORGANIZATION)
311 NORTH FREEDOM BLVD., PROVO, UTAH 84601
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
1187 SOUTH 1480 WEST, OREM, UTAH 84058
(FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
REGISTRANT'S TELEPHONE NUMBER,
INCLUDING AREA CODE: (801) 374-2888
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
9,831,709
(Number of shares of common stock
the registrant had outstanding as of June 30, 2000)
ITEM 1. FINANCIAL STATEMENTS
IBONZAI.COM, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
(UNAUDITED)
IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
TABLE OF CONTENTS
Page
BASIS OF CONDENSED CONSOLIDATED FINANCIAL STATEMENT PRESENTATION F-2
FINANCIAL STATEMENTS:
Condensed Consolidated Balance Sheet F-3
Condensed Consolidated Statements of Operations F-4 & F-5
Condensed Consolidated Statement of Shareholder's Equity F-6
Condensed Consolidated Statement of Cash Flows F-7
Notes to Condensed Consolidated Financial Statements F-8
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IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Basis of Condensed Consolidated Financial Statement Presentation
The accompanying unaudited condensed financial statements, which include
the accounts of iBonZai.com, Inc. (the Company) and its wholly owned
subsidiary Virtual Market Solutions.Com, Inc., included herein have been
prepared by the Company or the Registrant in accordance with generally
accepted accounting principles for interim financial information and pursuant
to the rules and regulations of the Securities and Exchange Commission.
Accordingly, 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. All significant intercompany transactions and balances
have been eliminated in consolidation.
In the opinion of the Company's management, all adjustments, consisting
of only normal recurring adjustments, necessary to present fairly the financial
position of the Company as of June 30, 2000 and December 31, 1999, and the
results of its operations for the three and six month periods ended June 30,
2000 and changes in its financial position from December 31, 1999 through
June 30, 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.
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IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
June 30, December 31,
2000 1999
Assets
Current Assets:
Cash $ 320,216 $ 17,773
Receivables 54,390 0
Inventory 15,197 5,000
Total current assets 389,803 22,773
Property and Equipment:
Leasehold improvements 10,234 0
Equipment 77,519 11,737
Accumulated depreciation (5,112) 0
Net property and equipment 82,641 11,737
Other Assets:
Prepaids 25,000 0
Total other assets 25,000 0
Total assets $ 497,444 $ 34,510
Liabilities and Equity
Current Liabilities:
Accounts payable $ 19,918 $ 16,329
Accrued expenses 30,797 0
iBonZai bucks 12,016 0
Shareholder loans 196,017 9,095
Total current liabilities 258,748 25,424
Total liabilities 258,748 25,424
Equity:
Common stock 9,831 25,424
Contributed Capital 781,334 1,838,110
Retained earnings (deficit) accumulated
during development stage (552,469) (1,854,448)
Total equity 238,696 9,086
Total liabilities and equity $ 497,444 $ 34,510
The accompanying Notes are an integral part of these financial statements.
IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three Months Ended June 30,
2000 1999
Operating Revenues
Sales $ 82,183 $ 0
82,183 0
Cost of Goods Sold 67,600 0
Gross Profit 14,583 0
Operating Expenses
Commissions 16,515 0
Web design 0 0
Coaching 6,558 0
Marketing 78,691 0
Facilities 24,358 0
General & administrative 227,652 0
Depreciation & amortization 2,556 30
356,330 30
Net Income $(341,747) $ (30)
Basic and Diluted Income
(Loss) per Share $ (0.0348) $ (0.0002)
Common Shares Used in
Per Share Calculation 9,831,709 144,317
The accompanying Notes are an integral part of these financial statements.
IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Six Months Ended June 30,
2000 1999
Operating Revenues
Sales $ 85,407 $ 0
85,407 0
Cost of Goods Sold 95,174 0
Gross Profit (9,767) 0
Operating Expenses
Commissions 34,206 0
Web design 40,000 0
Coaching 58,944 0
Marketing 114,109 0
Facilities 46,396 0
General & administrative 246,521 0
Depreciation & amortization 5,112 122
545,288 122
Net Income $(555,055) $ (122)
Basic and Diluted Income
(Loss) per Share $ (0.0565) $ (0.0008)
Common Shares Used in
Per Share Calculation 9,831,709 144,317
The accompanying Notes are an integral part of these financial statements.
IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED STATEMENT
OF SHAREHOLDER'S EQUITY
(Unaudited)
Shares Amount
Common Stock:
Par value is $ .001 per share,
50,000,000 shares authorized
Balance at December 31, 1999 25,424,317 $ 25,424
Common stock issued:
Acquisition 9,250,000 9,250
Private placement and
debenture conversion 157,392 157
Retirement (25,000,000) (25,000)
Balance at June 30, 2000 9,831,709 $ 9,831
Additional Paid-In Capital:
Balance at December 31, 1999 $ 1,838,110
Post acquisition adjustments (1,838,110)
(3,331)
Shareholder contributions 249,990
Private placement
debenture conversion 534,675
Balance at June 30, 2000 $ 781,334
Retained Earnings (Deficit) Accumulated
During Development Stage:
Balance at December 31, 1999 $ (1,854,448)
Post acquisition adjustments 1,838,110
18,924
Net income (loss) (555,055)
Balance at June 30, 2000 $ (552,469)
The accompanying Notes are an integral part of these financial statements.
IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Six Months Ended June 30,
2000 1999
Cash flows from operating activities:
Net income (loss) $(555,055) $ (122)
Adjustments to reconcile operating
income to net cash provided by
operating activities:
Depreciation expense 5,112 122
Changes in current assets and
liabilities:
Receivables (increase) decrease (54,390) 0
Inventory (increase) decrease (10,197) 0
Prepaids (increase) decrease (25,000) 0
Accounts payable
increase (decrease) 3,589 0
Accrued expenses
increase (decrease) 30,797 0
iBonZai bucks
increase (decrease) 12,016 0
Net cash provided (used) by
operating activities (593,128) 0
Cash flows from investing activities:
Capital expenditures (76,016) 0
Net cash provided (used) by
investing activities (76,016) 0
Cash flows from financing activities:
Proceeds from issuance of common stock 284,675 0
Proceeds from issuance of
convertible debenture 250,000 0
Shareholder contributions 249,990 0
Shareholder loans 245,992 0
Shareholder loan repayments (59,070) 0
Net cash provided (used) from
financing activities 971,587 0
Net changes in cash 302,443 0
Cash, beginning 17,773 0
Cash, ending $ 320,216 $ 0
Noncash transactions:
Convert debentures into common stock $ 250,000 $ 0
The accompanying Notes are an integral part of these financial statements.
IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
(Unaudited)
TABLE OF CONTENTS
Note Page
1. Summary of Organization & Significant Accounting Policies F-9
A. Organization F-9
B. Cash & Cash Equivalents F-9
C. Property and Equipment F-9
D. Estimates F-9
2. Convertible Debentures F-10
3. Acquisition of Virtual Market Solutions.Com, Inc. F-10
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NOTE 1 - SUMMARY OF ORGANIZATION & SIGNIFICANT ACCOUNTING POLICIES
A. Organization
iBonZai.com, Inc., a C-Corporation, was originally incorporated as Life
Medical Technologies, Inc. on December 26, 1991 under the provisions of the
Delaware State Code.
The Company, through its recent acquisition of Virtual Market
Solutions.Com, Inc. (see Note - 2), has become a Development Stage Enterprise
positioning itself as a full-solution internet marketing company. Through its
wholly owned subsidiary Virtual Market Solutions.Com, Inc. and its iBonZai
internet domain, the company's primary objective is to meet the needs of the
internet based worldwide marketplace by providing vital information, tools,
support services and state-of-the-art communication technology to individuals
desiring to increase the quality of their lives; personally, professionally
and financially. iBonZai is a fully interactive communications link between
the user and the internet with versatile, moment-by-moment access to
personalized information through a remote interface. This communications link
is intended to allow the user to access e-mail, stock quotes, news reports,
weather, movies, online purchasing, banking services, call-back features and
personal secretarial/intellient agent services with virtually unlimited and
expandable adaptations.
B. Cash and Cash Equivalents
Cash consists of amounts in demand and certificates of deposit. The
Company considers all highly liquid investments maturing within three months
to be cash equivalents.
C. Property and Equipment
Property and equipment are stated at cost. Depreciation is computed
using the straight-line method over the estimated useful lives of the assets.
When assets are retired or otherwise disposed of, the cost and related
accumulated depreciation are removed from the accounts, and any resulting
gain or loss is reflected in the income for the period. The cost of
maintenance and repairs is charged to income as incurred; significant renewals
and betterments are capitalized.
D. Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make assumptions that
affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
NOTE 2 - CONVERTIBLE DEBENTURES
On April 4, 2000 the Company issued $250,000 in ninety day 10%
convertible debentures. Interest will be paid annually at each one year
anniversary. Interest is payable on the 15th day of the month preceding the
month in which the in which the interest is to be paid. $500,000 in 90 day 10%
convertible debentures have been authorized. The debenture holder will be
entitled to convert the principal amount of the debenture, in $1,000
increments, into shares of common stock of the Company at the conversion price
of $.0543 per share.
On June 8, 2000 when iBonZai.com, Inc.(Life Medical Technologies, Inc.)
acquired Virtual Market Solutions.Com, Inc., it also assumed the $ 250,000
Convertible Debenture debt. Subsequent to the acquisition and before June 30,
2000 the Convertible Debentures were converted into iBonZai.com, Inc. stock.
NOTE 3 - ACQUISITION OF VIRTUAL MARKET SOLUTIONS.COM, INC.
Effective June 8, 2000, Life Medical Technologies, Inc. acquired all the
equity of Virtual Market Solutions.Com, Inc. and changed its name to
iBonZai.com, Inc. As a result Virtual Market Solutions.Com, Inc. became a
wholly-owned subsidiary of iBonZai.com, Inc. Pursuant to the acquisition,
the two shareholders of Virtual Market Solutions.Com, Inc., were issued an
aggregate of 9,250,000 shares of common stock in iBonZai.com, Inc., and became
the controlling shareholders of iBonZai.com, Inc. After Life Medical
Technologies, Inc. changed its name to iBonZai.com, Inc. it obtained the
trading symbol IBZI on the OTC Bulletin Board.
The parent company has assumed debt or loaned Virtual Market
Solutions.Com, Inc. the following amounts in order to fund operations:
Assumption of Convertible Debenture debt $ 250,000
Additional capital contributions 249,990
Proceeds from private placement 284,675
Total $ 784,665
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources. The Registrant had approximately $
327,072 of operating capital as of June 30, 2000 and $ 6,444 as of
December 31, 1999. The Registrant intents to raise additional capital through
private placements with accredited investors.
Results of Operation. The Registrant, through its acquisition of Virtual
Market Solutions.Com, Inc., has made an investment of approximately $300,000,
for the six months ended June 30, 2000, in development of a full solution
internet marketing company.
Plan of Operations. The Company is currently developing business to
business ISP solutions. These business to business ISP solutions include:
providing broadband backbone, billings services and technical support to
ISPs. The Company is continuing to develop its other markets; including
media, vertical integration through affinity groups, acquisition of small ISPs
and seminars.
PART II
OTHER INFORMATION
ITEM 1. -K.
(a) Exhibits
The following exhibits are filed herewith pursuant to Rule 601 of the
Regulation S-B or are incorporated by reference to previous filings.
Exhibit # Description
2.1 Acquisition Agreement dated May 11, 2000 between the Registrant and
Virtual Market Solutions.com, Inc.*
27. Financial data schedule**
_________________________________
* Incorporated by reference to Exhibit to the Form 8-K filed June 16, 2000
by Life Medical Technologies, Inc. with the Securities and Exchange
Commission.
** Filed herewith.
(b) Reports on Form 8-K
A report on Form 8-K was filed with the Securities and Exchange
Commission on May 11, 2000.
A report on Form 8-K-A was filed with the Securities and Exchange
Commission on August 7, 2000.
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 thereunto duly authorized.
REGISTRANT
iBonZai.com, INC.
DATED: August 14, 2000 By: /s/ Scott R. Hosking
Scott R. Hosking, President
(Principal Executive Officer)
