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: September 30, 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.
___________________________________________________________
(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 September 30, 1998, 17,625,460 shares of common stock
were outstanding.
Transitional Small Business Disclosure Format:
Yes X No
____ ____
<PAGE>
TABLE OF CONTENTS
Form 10-QSB
1st Quarter Ended September 30, 1998
Lindsey Technologies, Inc.
Page
PART I: FINANCIAL INFORMATION
Item 1.
Balance Sheet 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.
BALANCE SHEET
SEPTEMBER 30, 1998
ASSETS
Current assets
Cash in bank $ 63,921
Accounts receivable 10,773
__________
Total current assets 74,694
Investment in Heldol 99,452
__________
Total Assets $ 174,146
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 44,503
Accounts payable - related parties 18,929
Notes payable - related parties 122,802
__________
Total current liabilities 185,514
__________
Total Liabilities 185,514
__________
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, 17,625,460 shares
issued & outstanding 7,340,153
Underwriter's warrants,
20,000 issued and outstanding 120
Accumulated other comp. income 1,134
Accumulated deficit (7,657,032)
__________
Stockholders' Equity ( 11,368)
__________
Total Liabilities And
Stockholders' Equity $ 174,146
==========
See Notes to Financial Statements
<PAGE> 2
LINDSEY TECHNOLOGIES, INC.
STATEMENT OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1998
(UNAUDITED)
Three Months Ended
September 30
1997 1998
____ ____
Revenues $ - $ 10,396
Operating expenses:
General & administrative 60,763 32,058
Research & development 34,364 39,264
________ ________
Income (loss) from
operations (95,127) (60,926)
________ ________
Other income (expense):
Gain on sale of trade securities 34 123
Interest income 1 1
________ ________
Total other income 35 124
________ ________
Income (loss) before
income taxes (95,092) (60,802)
________ ________
Provision for income tax - -
________ ________
Net income (loss) $(95,092) $(60,802)
________ ________
Other comprehensive income,
net of tax:
Foreign currency trans. adj. ( 658) 7,895
________ ________
Comprehensive income (loss) $(95,750) $(52,907)
======== ========
Net income (loss) per share $( * ) $( * )
======== ========
Weighted average number of
common shares outstanding 16,022,620 17,625,460
========== ==========
*Less than $.01 per share
See Notes to Financial Statements
<PAGE> 3
LINDSEY TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1998
(UNAUDITED)
Three Months Ended
September 30
1997 1998
____ ____
Cash Flows From Operating Activities:
Comprehensive income (loss) $ ( 95,750) $( 52,907)
Adjustments to reconcile
comprehensive income (loss) to net cash
provided by (used for)
operating activities:
Amortization - 7,187
Share of loss in Heldol - 7,220
(Increase) in accounts receivable - ( 887)
Increase (Decrease) in
accounts payable ( 43) 17,750
Increase (Decrease) in
a/p - related parties 1,824 ( 684)
_________ _________
Net cash provided
by (used for)
operating activities ( 93,969) ( 22,321)
_________ _________
Cash Flows From Investing Activities:
Investment in Heldol ( 1,876) ( 24,981)
_________ _________
Net cash provided
by (used for)
investing activities ( 1,876) ( 24,981)
_________ _________
Cash Flows From Financing Activities:
Loan from related party - 89,103
Sale of Common stock 100,599 4,300
_________ _________
Net cash provided
by (used for)
financing activities 100,599 93,403
_________ _________
Net Increase (Decrease) In Cash 4,754 46,101
Cash At The Beginning Of The Period 4,837 17,820
_________ _________
Cash At The End Of The Period $ 9,591 $ 63,921
========= =========
See Notes to Financial Statements
<PAGE> 4
LINDSEY TECHNOLOGIES, 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.
ITEM 2. Managements'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 Ingenierie. 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 plans to capitalize Heldol
with 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 September 30, 1998 the Company has invested $236,267 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 has undertaken under its own umbrella the
development of a generic management information system that
produces and harmonizes norms and know-how with multimedia
capabilities. This web based product is multi-lingual. It uses
the most up to date information technology standards.
<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
8-K filed July 15, 1998 for sale of common stock
under Regulation 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.
By: /s/Lionel Mauclaire
Lionel Mauclaire, President
and Director
Date: November 15, 1998
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE BALANCE SHEET AT 09/30/98 (UNAUDITED)
AND STATEMENT OF INCOME FOR THE QUARTER ENDED 09/30/98
(UNAUDITED). IT IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
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<PERIOD-END> SEP-30-1998
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304257
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