CONFORMED COPY
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 1998
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE EXCHANGE ACT
For the transition period from __________ to __________
Commission File No. 33-33939
LINDSEY TECHNOLOGIES, INC. (formerly L.M. CAPITAL, INC.)
___________________________________________________________
(Exact name of small business issuer as specified in its
charter)
Colorado 84-1121635
________ ____________
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
3025 South Parker Road, Suite 109
Aurora, Colorado 80014
_____________________________________________________________
(Address of principal executive offices, including zip code)
Issuer's Telephone Number: (303) 306-1988
______________________________________________________
(Former name, former address and former fiscal year,
if changed since last report)
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
____ ____
As of March 31, 1998, 16,502,460 shares of common stock
were outstanding.
Transitional Small Business Disclosure Format:
Yes No X
____ ____
<PAGE>
TABLE OF CONTENTS
Form 10-QSB
3rd Quarter Ended March 31, 1998
Lindsey Technologies, Inc.
(formerly L.M. Capital, Inc.)
Page
PART I: FINANCIAL INFORMATION
Item 1.
Balance Sheets 2
Statement Of Operations 3
Statement Of Cash Flows 4
Notes To Financial Statements 5
Item 2.
Management's Discussion And
Analysis Or Plan Of Operation 6
PART II: OTHER INFORMATION 7
SIGNATURES 8
<PAGE>
PART I. FINANCIAL INFORMATION
<PAGE> 1
ITEM 1. LINDSEY TECHNOLOGIES, INC.
(formerly L.M. Capital, Inc.)
BALANCE SHEET
MARCH 31, 1998
(UNAUDITED)
ASSETS
Current assets
Cash $ 5,793
_____________
Total current assets 5,793
_____________
Investment in Heldol 197,800
_____________
Total Assets $ 203,593
=============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 16,923
Accounts payable
- related parties 22,626
Note payable - related parties 32,979
____________
Total current liabilities 72,528
____________
Total Liabilities 72,528
____________
Stockholders' equity
Preferred stock: no par
value, 20,000,000 total,
5,000 Series A authorized,
4,200 shares issued
& outstanding 304,257
Common stock: no par
value, 100,000,000 shares
authorized, 16,502,460 shares
issued & outstanding 1,734,371
Underwriter's warrants,
20,000 issued and outstanding 120
Foreign currency trans. adj. ( 8,446)
Deficit accumulated during
the development stage ( 1,899,237)
__________
Stockholders' Equity 131,065
__________
Total Liabilities And
Stockholders' Equity $ 203,593
==========
See Notes to Financial Statements
<PAGE> 2
LINDSEY TECHNOLOGIES, INC.
(formerly L.M. Capital, Inc.)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
AND FOR THE NINE MONTHS ENDED MARCH 31, 1998 AND 1997
(UNAUDITED)
Three Months Ended Nine Months Ended
March 31 March 31
1998 1997 1998 1997
____ ____ ____ ____
Revenues $ - $ - $ - $ -
Operating expenses:
Research & development - - 500,000 -
General & administrative 11,192 8,755 995,841 17,638
________ _______ ___________ ________
Income (loss) from
operations (11,192) (8,755) (1,495,841) (17,638)
________ _______ ___________ ________
Other income (expense):
Gain on securities sales 67 117 151 117
Other - 5 - 5
Interest income 1 1 3 739
________ _______ ___________ ________
Total other income 68 123 154 861
________ _______ ___________ ________
Income (loss) before
income taxes (11,124) (8,632) (1,495,687) (16,777)
________ _______ ___________ ________
Provision for income tax - - - -
________ _______ ___________ ________
Net income (loss) $(11,124) $(8,632) $(1,495,687) $(16,777)
======== ======= =========== ========
Net income (loss)
per share $( * ) $( * ) $( .092) $( * )
======== ======== ========= ========
Weighted average number of
common shares
outstanding 16,502,460 15,919,760 16,342,327 15,919,760
========== ========== ========== ==========
*Less than $.01 per share
See Notes to Financial Statements
<PAGE> 3
LINDSEY TECHNOLOGIES, INC.
(formerly L.M. Capital, Inc.)
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED MARCH 31, 1998 AND 1997
(UNAUDITED)
Nine Months Ended
March 31
1998 1997
____ ____
Cash Flows From Operating Activities:
Net income (loss) $(1,495,687) $( 16,777)
Adjustments to reconcile net
income (loss) to net cash
provided by (used for)
operating activities:
Compensatory stock issuance 1,374,000 -
Increase in accounts payable 4,892 -
Increase in a/p related parties 5,128 -
Foreign currency trans. adj. ( 5,710) -
(Increase) in cash in escrow - ( 734)
----------- ---------
Net cash provided
by (used for)
operating activities ( 117,377) ( 734)
----------- ---------
Cash Flows From Investing Activities:
Investment in Heldol ( 8,545) (142,200)
----------- ---------
Net cash provided
by (used for)
investing activities ( 8,545) (142,200)
----------- ---------
Cash Flows From Financing Activities:
Issuance of common stock 126,878 153,570
Interest from escrow - 14,551
Increase in notes payable - 6,985
----------- ---------
Net cash provided
by (used for)
financing activities 126,878 175,106
___________ _________
Net Increase (Decrease) In Cash 956 15,395
Cash At The Beginning Of The Period 4,837 2,797
___________ _________
Cash At The End Of The Period $ 5,793 $ 18,192
=========== =========
See Notes to Financial Statements
<PAGE> 4
LINDSEY TECHNOLOGIES, INC.
(formerly L.M. Capital, Inc.)
Notes to Financial Statements
(Unaudited)
Note 1. Basis of Presentation
The accompanying unaudited financial statements have been
prepared in accordance with the instructions to
Form 10-QSB and do not include all of the information and
disclosures required by generally accepted accounting
principles for complete financial statements. All
adjustments which are, in the opinion of management,
necessary for a fair presentation of the results of
operations for the interim periods have been made and are
of a recurring nature unless otherwise disclosed herein.
The results of operations for such interim periods are not
necessarily indicative of operations for a full year.
<PAGE> 5
LINDSEY TECHNOLOGIES, INC.
(formerly L.M. Capital, Inc.)
ITEM 2. Management's Discussion and Analysis or Plan of
Operation
On June 21, 1996 the Company entered into a joint venture
with a team of French software engineers (the
"Associates") and their wholly owned French corporation,
Helvetius Ingeniere. The Company and the Associates
formed Heldol Corporation ("Heldol"), on October 25, 1996,
a United States corporation for the purpose of developing and marketing
software for industrial, medical, and commercial business
applications. The Company funded Heldol for $70,000, giving
the Company 35% ownership of Heldol and the
Associates 65%. The Company also plans to capitalize Heldol
with additional funds such that its total investment in Heldol
over 2 years will reach 10 million French francs (approximately
$2 million), at which time the Company will
own 80% of Heldol. As of March 31, 1998 the Company has
invested $197,800 and owns 50% of Heldol.
After Heldol is fully capitalized,
Heldol shall be obligated to purchase 30% of the
outstanding shares of Helvetius for 10 million French
francs (approximately $2,000,000).
Another agreement on June 21, 1996 between the Company and
the Associates allows the Associates to exchange their
shares of Helvetius for shares in the Company according to
a market valuation formula, providing Helvetius attains
certain sales levels and the Company is on NASDAQ.
The Associates to date have developed software for
bacteriological identification, trade named HELLAC which
is used by Institut Pasteur, software for the management
of educational and professional training institutions,
trade named HELISA currently used by French engineering
and business schools such as Ecole Normale Superieure, and
inventory tracking software trade named HAWK, used by NCR.
The Company in conjunction with the Associates plans to
offer potential clients in the fields of medicine,
education and business fully integrated software solutions
to their information needs. Services will include
description and study of the project at hand, elaboration
and development of a workable software network,
installation of software and hardware interfacing with all
existing platforms and technologies from a basic unit to a
wide network of computers and languages, and the training
of staff and maintenance of systems when in place.
<PAGE> 6
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 Securities
Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
-- 03/05/98 Sales of Securities Under Reg. S
<PAGE> 7
SIGNATURES
In accordance with the requirements of the Exchange
Act, the Registrant has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly
authorized.
LINDSEY TECHNOLOGIES, INC.
(formerly L.M. Capital, Inc.)
By: /s/Lionel Mauclaire
Lionel Mauclaire, President
and Director
Date: June 22, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AT 03/31/98 (UNAUDITED)
AND STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED 03/31/98
(UNAUDITED). IT IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
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<PERIOD-END> MAR-31-1998
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0
304257
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