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 SEPTEMBER 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
13,338,515
(Number of shares of common stock
the registrant had outstanding as of September 30, 2000)
ITEM 1. FINANCIAL STATEMENTS
[INSERT FINANCIAL STATEMENTS]
ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources. The Registrant had an accumulated
deficit of approximately ($970,918) of equity as of September 30, 2000. The
Registrant intends to raise additional capital through private placements with
accredited investors.
Results of Operation. The Registrant had a net loss of ($973,505) for
the nine month period ended September 30, 2000, compared to net income of
$54,144 for the similar period one year earlier. The Company had a deficit of
($419,665) for the quarter ended September 30, 2000, compared to $54,144 for
the same period one year earlier. The primary reason for the increased loss
was the acquisition and development of a full solution Internet marketing
company.
Plan of Operations. The Company is currently developing business to
business Internet service provider ("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.
The Company is primarily a development stage enterprise. Since its
acquisition of Virtual Market Solutions.Com, Inc. and subsequent change of its
corporate name from Life Medical Technologies, Inc. to iBonZai.com, Inc. in
the second quarter, the Company's primary focus has been on establishing name
recognition, building its primary business as an ISP, and
expanding its customer
base.
PART II
OTHER INFORMATION
ITEM 1.
ITEM 6. -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.
A report on Form 10QSB was filed with the Securities and Exchange
Commission on August 14, 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.
Registrant
DATED: November ___, 2000 By: /s/ Scott R. Hosking
Scott R. Hosking, President
(Principal Executive Officer)
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 ofSeptember 30, 2000 and December 31, 1999, and the
results of its operations for the three and nine month periods ended
September 30, 2000 and changes in its financial position from December 31,
1999 through September 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)
September 30, December 31,
Assets 2000
1999
Current Assets:
Cash $ 7,219 $ 17,773
Receivables 43,390 0
Inventory 28,838 5,000
Total current assets 79,447 22,773
Property and Equipment:
Leasehold improvements 10,234 0
Equipment 120,092 11,737
Accumulated depreciation (7,668) 0
Net property and equipment 122,658 11,737
Other Assets:
Prepaids 25,000 0
Investments 41,000 0
Total other assets 66,000 0
Total assets $ 268,105 $ 34,510
Liabilities and Equity
Current Liabilities:
Accounts payable $ 37,053 $ 16,329
Accrued expenses 50,239 0
iBonZai bucks 16,170 0
Short-term loans 69,150 0
Shareholder loans 20,000 9,095
Total current liabilities 192,612 25,424
Long Term Liabilities:
Vehicle loan 15,425 0
Total long term liabilities 15,425 0
Total liabilities 208,037 25,424
Equity:
Common stock 13,339 25,424
Contributed Capital 1,017,647 1,838,110
Retained earnings (deficit) accumulated
during development stage (970,918) (1,854,448)
Total equity 60,068 9,086
Total liabilities and equity $ 268,105 $ 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 Three Months
Ended Ended
September 30 September 30 Since
2000 1999 Inception
Operating Revenues
Sales $ 111,212 $ 169,378 $ 379,343
111,212 169,378 379,343
Cost of Goods Sold 24,254 8,764 84,574
Gross Profit 86,958 160,614 294,769
Operating Expenses
Commissions 9,503 54,015 128,972
Web design 0 26,134 78,134
Coaching 0 4,064 90,462
Marketing 121,351 5,851 258,497
Facilities 34,326 0 95,070
General & administrative 338,887 16,406 606,884
Depreciation &
amortization 2,556 0 7,668
506,623 106,470 1,265,687
Net Income $ (419,665) 54,144 $ (970,918)
Basic and Diluted Income
(Loss) per Share $ (0.0315) $ 0.3752 $ (0.0728)
Common Shares Used in
Per Share Calculation 13,339,000 144,317 13,339,000
The accompanying Notes are an integral part of these financial statements.
IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Nine Months Nine Months
Ended Ended
September 30 September 30 Since
2000 1999 Inception
Operating Revenues
Sales $ 135,328 $ 169,378 $ 379,343
135,328 169,378 379,343
Cost of Goods Sold 58,410 8,764 84,574
Gross Profit 76,918 160,614 294,769
Operating Expenses
Commissions 43,710 54,015 128,972
Web design 40,000 26,134 78,134
Coaching 58,945 4,064 90,462
Marketing 240,460 5,851 258,497
Facilities 80,722 0 95,070
General &
administrative 578,918 16,406 606,884
Depreciation &
amortization 7,668 0 7,668
1,050,423 106,470 1,265,687
Net Income $ (973,505) $ 54,144 $ (970,918)
Basic and Diluted Income
(Loss) per Share $ (0.0730) $ 0.3752 $ (0.0728)
Common Shares Used in
Per Share Calculation 13,339,000 144,317 13,339,000
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 9,000,183 9,001
Private placement and
debenture conversion 260,332 260
Retirement (21,346,317) (21,346)
Balance at September 30, 2000 13,338,515 $ 13,339
Additional Paid-In Capital:
Balance at December 31, 1999 $ 1,838,110
Post acquisition adjustments (1,838,110)
Common stock (13,339)
Debenture conversion 250,000
Shareholder contributions 249,990
Private placement 530,996
Balance at September 30, 2000 $ 1,017,647
Retained Earnings (Deficit) Accumulated
During Development Stage:
Balance at December 31, 1999 $ (1,854,448)
Post acquisition adjustments 1,838,110
18,925
Net income (loss) (973,505)
Balance at September 30, 2000 $ (970,918)
The accompanying Notes are an integral part of these financial statements.
IBONZAI.COM, INC.
(A Development Stage Enterprise)
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Nine Months
Ended
September 30
Cash flows from operating activities: 2000
Net income (loss) $ (973,505)
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation expense 7,668
Changes in current assets and liabilities:
Receivables (increase) decrease (43,390)
Inventory (increase) decrease (23,838)
Prepaids (increase) decrease (25,000)
Accounts payable increase (decrease) 20,725
Accrued expenses increase (decrease) 50,239
iBonZai bucks increase (decrease) 16,170
Net cash provided (used) by
operating activities (970,931)
Cash
flows from investing activities:
Capital expenditures (118,589)
Investments (41,000)
Net cash provided (used) by
investing activities (159,589)
Cash
flows from financing activities:
Proceeds from short-term loans 69,150
Proceeds from long-term loans 15,425
Proceeds from issuance of common stock 524,496
Proceeds from issuance of convertible debenture 250,000
Shareholder contributions 249,990
Shareholder loans 108,975
Shareholder loan repayments (98,070)
Net cash provided (used) from
financing activities 1,119,966
Net changes in cash (10,554)
Cash, beginning 17,773
Cash, ending $ 7,219
Noncash transactions:
Convert shareholder loan to contributed capital $ 142,012
Convert debentures into common stock $ 250,000
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/intelligent 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
Direct deposits of capital contributions 142,012
Expenses paid on behalf of subsidiary 97,809
Total $ 1,024,486
