<PAGE>
UNITED STATES
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, 1999
TRANSITION REPORT UNDER SECTION 13 or 15(d) OF
----- THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------- -------
Commission file number 0-22042
MILLENNIUM SPORTS MANAGEMENT, INC.
(Exact name of small business issuer as specified in its charter)
New Jersey 22-3127024
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Ross' Corner
U.S. Highway 206 and County Route 565
Augusta, New Jersey 07822
(Address of Principal Executive Offices) (Zip Code)
(973) 383-7644
(Issuer's telephone number)
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
-----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Check whether the registrant filed all documents and reports required to
be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court. Yes No
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS:
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date 1,229,809 shares of common
stock outstanding as of October 31, 1999.
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (check one):
Yes No X
----- -----
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, December 31,
1999 1998
----------- ------------
(Unaudited) (Note 1)
----------- ------------
<S> <C> <C>
ASSETS
PROPERTY AND EQUIPMENT, AT COST,
LESS ACCUMULATED DEPRECIATION $ 868,754 $ 900,000
CASH 524,223 221,975
INVENTORIES 44,841 71,335
INVESTMENT IN LIMITED PARTNERSHIP, AT EQUITY 371,978 466,759
OTHER ASSETS 54,600 118,048
------------ -------------
$ 1,864,396 $ 1,778,117
============ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Mortgage payable $ 250,000
Amounts due insiders, pursuant to
Chapter 11 proceedings 82,115 $ 88,513
Accounts payable and accrued expenses 329,737 262,293
Accrued interest 63,642
Accrued compensation - officers and directors 176,600 170,775
------------ -------------
Total Liabilities 838,452 585,123
------------ -------------
STOCKHOLDERS' EQUITY:
Preferred stock, no par value: 500,000 shares
authorized, none issued
Common stock, no par value, stated value $0.01
per share; 2,000,000 shares authorized
1,229,809 and 719,809 shares issued in 1999
and 1998, respectively 122,980 71,980
Additional paid-in capital 19,622,050 19,416,652
Accumulated deficit (18,719,086) (18,295,638)
------------ -------------
Total Stockholders' Equity 1,025,944 1,192,994
------------ -------------
$ 1,864,396 $ 1,778,117
============ =============
</TABLE>
See notes to financial statements.
2
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended Three months ended
September 30 September 30
----------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
REVENUES:
Stadium and facility rentals and
admission $ 307,846 $ 327,411 $ 123,635 $ 213,052
Retail sales 70,111 207,689 31,312 122,036
Concession sales 98,913 66,635
Other 30,504 8,645 8,386 1,159
------------ ------------- ------------ -------------
Totals 507,374 543,745 229,968 336,247
------------ ------------- ------------ -------------
COSTS OF SALES AND SERVICES:
Costs of stadium operations 206,045 196,979 92,578 93,847
Costs of retail and concession sales 96,014 111,950 49,882 73,897
Selling, general and administrative 601,840 583,266 189,801 214,652
Stock compensation to officers and
directors 734,375
Depreciation 31,246 273,825 10,416 91,275
------------ ------------- ------------ -------------
935,145 1,900,395 342,677 473,671
------------ ------------- ------------ -------------
LOSS FROM OPERATIONS (427,771) (1,356,650) (112,709) (137,424)
Income of limited partnership 100,000 100,000
INTEREST INCOME 4,323 6,734 3,863 2,766
Write down of joint venture (175,000) (175,000)
------------ ------------- ------------ -------------
NET LOSS $ (423,448) $ (1,424,916) $ (108,846) $ (209,658)
------------ ------------- ------------ -------------
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 791,225 643,452 929,000 717,719
------------ ------------- ------------ -------------
BASIC AND DILUTED LOSS PER
COMMON SHARE $ (0.54) $ (2.21) $ (0.12) $ (0.29)
------------ ------------- ------------ -------------
</TABLE>
See notes to financial statements.
3
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Common stock
-------------------------- Additional
Number Paid-in Accumulated
of Shares Amount Capital Deficit Total
-------- --------- ----------- ------------ ----------
<S> <C> <C> <C> <C> <C>
BALANCE DECEMBER 31, 1998 719,809 $ 71,980 $19,416,652 $(18,295,638) $1,192,984
Issuance of common stock upon conversion of
debt 10,000 1,000 5,398 6,398
Issuance of common stock in a
private placement 500,000 50,000 200,000 250,000
NET LOSS (423,448) (423,448)
-------- --------- ----------- ------------ ----------
BALANCES, September 30, 1999 1,229,809 $122,980 $19,622,050 $(18,719,086) $1,025,944
-------- --------- ----------- ------------ ----------
</TABLE>
See notes to financial statements
4
<PAGE>
MILLENIUM SPORTS MANAGEMENT, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Nine months ended September 30,
-------------------------------
1999 1998
--------- ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(423,448) $(1,424,916)
Adjustments to reconcile net loss to net cash provided
by operating activities:
Depreciation and amortization 31,246 273,825
Stock compensation awarded to officers and directors 734,375
Equity in income of limited partnership (100,000)
Write down of investment in joint venture 175,000
Common stock issued for services rendered -
Changes in operating assets and liabilities:
Inventory 9,586 34,338
Other assets 39,887 (12,781)
Accounts payable and accrued expenses 263,467 (208,525)
--------- ------------
Net cash flows from operating activities (79,262) (528,684)
--------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and improvements (14,964)
Investment in joint venture (134,000)
Distribution from limited partnership 94,781 98,994
--------- ------------
Net cash flows from investing activities 94,781 (49,970)
--------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable 250,000 -
Repayments of creditors' notes payable and amounts due inside (3,500)
Proceeds from issuance of common stock upon exercise
of warrants, net of costs 767,063
Proceeds from issuance of warrants 92,014
Payments of offering costs 250,000 -
--------- ------------
Net cash flows from by financing activities 500,000 855,577
--------- ------------
NET CHANGE IN CASH 515,519 276,923
CASH, BEGINNING OF PERIOD 8,704 115,295
--------- ------------
CASH, END OF PERIOD $ 524,223 $ 392,218
--------- ------------
Issuance of common stock upon conversion of
outstanding debt $ 6,398 $ 275,244
--------- ------------
</TABLE>
See notes to financial statements.
5
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Basis of Presentation:
The balance sheet at the end of the preceding fiscal year has been
derived from the audited balance sheet contained in Millennium Sports
Management, Inc.'s (the "Company's") Annual Report on Form 10-KSB for
the year ended December 31, 1998 (the "10-KSB") and is presented for
comparative purposes. All other financial statements are unaudited. In
the opinion of management, all adjustments, which include only normal
recurring adjustments necessary to present fairly the financial
position, results of operations and cash flows for all periods
presented, have been made. The results of operations for interim
periods are not necessarily indicative of the operating results for the
full year.
Footnote disclosures normally included in financial statements prepared
in accordance with generally accepted accounting principles have been
omitted in accordance with the published rules and regulations of the
Securities and Exchange Commission. These financial statements should
be read in conjunction with the financial statements and notes thereto
included in the 10-KSB.
Annual Review for Impairment of Long-lived Assets - In accordance with
generally accepted accounting principles, management reviews its
property and equipment to determine its recoverability through future
profitable operations due to the Company operating at a loss since it
emerged from Chapter 11 of the Bankruptcy Code in 1995. In years prior
to 1998 management believed that profitability could be achieved
through, among other things, leases with additional teams and leagues,
lease of the stadium name, reduction in administrative costs, leasing
the museum and store facilities or other uses, development of the
property into a year-round facility, and leasing a portion of the
parking facilities and water treatment equipment to adjacent land
owners upon construction of a strip mall.
One of management's attempts to reduce costs is an appeal of its real
estate tax assessment. In connection with tax appeal litigation in the
New Jersey Tax Court, which commenced in April 1999 and the testimony
phase was completed in May 1999, the Company engaged an appraiser to
present its belief that the assessment is excessive. The appraiser
estimated, in a report dated January 20, 1999, that (1) the cost to
replace the building and the value of the land as of October 1, 1996
(the valuation date being used by the appraiser) was $9,661,000, (2)
because of the continuing losses of the Company, fair market value
could not be determined by capitalization of the Company's earnings and
(3) comparable sales could not be identified by the appraiser. In the
circumstances, the appraiser estimated fair value at $900,000 by
capitalizing estimated "stabilized net operating income" of property
similar to the Company's stadium and land. The appeal resulted in a
valuation judgement of approximately $3.5 million, which would result
in an estimated reduction in real estate taxes of approximately
$22,000, annually. The reduction is retroactive to January 1, 1997.
Management has determined a further appeal will be filed.
In view of the continuing doubt about the Company's ability to achieve
substantial improvements in operating results necessary to fully
recover their cost, management
6
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
decided that a write-down of the stadium and land to $900,000 would be
appropriate as of December 31, 1998; accordingly, a write-down of $11,544,942
was made in the fourth quarter of 1998.
Reclassification - Certain amounts previously reported have been reclassified to
conform to current year presentation.
Note 2 - Organization, Proceedings Under Chapter 11 And Subsequent Operations:
Organization and development - The Company operates a regional sports
entertainment and recreation center in Sussex County, New Jersey, known as the
Skylands Park Sports and Recreation Center (the "Complex"). The Complex includes
a professional baseball stadium ("Skylands Park") used for sports and other
entertainment events, and other adjacent recreational and commercial facilities
(the "Related Facilities") that include, among other things, a sports apparel
and collectibles store, a wholesale and retail sporting goods outlet, batting
cages and a video parlor.
The Company did not have sufficient financing to pay its contractors and other
vendors and, as a result, filed a voluntary petition for reorganization under
Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy
Court (the "Court") for the District of New Jersey on June 1, 1994 (the
"Petition Date"). The Company operated as a debtor-in-possession subject to the
jurisdiction of the Court from the Petition Date through April 13, 1995, the
date its plan of reorganization (the "Plan") was confirmed.
During the periods presented herein and since inception, the Company generated
only limited amounts of revenues from the events held at Skylands Park and the
operation of the Related Facilities and, as a result, the Company has incurred
significant net losses. Revenues from the rental of the Skylands Park to its
primary tenant have not and will not be significant. The Company generates
additional revenues from the rental of skyboxes and advertising signs in the
Skylands Park, parking fees and other revenues from other baseball games, the
rental of Skylands Park for other sports and entertainment events, the operation
of the retail, recreation and other related facilities in the Complex, and the
Company's ownership in Minor League Heroes, L.P. ("Heroes"), which is the
limited partnership that owns and operates the Company's primary tenant.
Accordingly, the Company's ability to generate significant additional revenues
will be dependent upon, among other things, its ability to generate future
attendance at events and the success of its other commercial operations.
Management believes that the Company is in need of additional liquid resources
to enable the Company to sustain operations, and there can be no assurance that
the Company will be able to obtain such additional liquid resources. In August
1999, the Company received $500,000 in cash proceeds from an equity issuance and
convertible loan (see Note 4).
7
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Confirmation of Plan of Reorganization - The Company's Plan was confirmed by its
creditors and the Court on April 13, 1995 (the "Confirmation Date"). Since the
Confirmation Date, the Company has paid unsecured pre-petition liabilities
pursuant to the terms of a secured promissory note (the "Creditors' Note"). The
Creditors' Note bore interest on the unpaid principal balance at the prime rate
plus 3%. The final payment under the Creditors' Note was paid on March 4, 1999.
The Creditors' Note was secured by substantially all of the assets of the
Company.
Claims of "insiders" (generally, former directors and executive officers of the
Company and certain of their affiliates) of approximately $339,000 as of the
Confirmation Date (including accrued salaries and loans and advances made to the
Company) may be paid from time to time after payment in full of the Creditors'
Note, as the cash flow of the Company may permit; however, each insider has the
option to elect to be paid in shares of common stock of the Company valued at
the then current market price of such common stock as reported on "NASDAQ."
Through Sept. 30, 1999, approximately $257,000 has been paid on the claims of
insiders, principally through the issuance of common stock.
Equity interests, including interests of stockholders and warrant holders, were
not altered or impaired under the terms of the Plan. However, the terms of the
Plan prohibit the Company from paying dividends until all payments required
under the Plan have been made.
Pursuant to SOP 90-7, the Company was not required to adopt "fresh-start"
reporting (and, as a result, revalue all of its assets and liabilities) since
the holders of the Company's existing voting stock immediately prior to
confirmation held the same relative voting interests after confirmation. In
addition, since the Company will be paying all of its pre-petition liabilities
at their original principal amounts, the Company did not recognize any material
gain or loss as a result of the confirmation of the Plan.
Note 3 - Stockholders' Equity:
Reverse Stock Split - Effective at the close of business on January 4, 1999, the
Company effectuated a one-for-ten reverse stock split, which has been
retroactively reflected in the accompanying financial statements.
Note 4 - Subsequent Events:
On August 5, 1999, the Company issued, in a private placement, 500,000 shares of
the Company's common stock to Robert J. Hartung for $250,000. In addition, Mr.
Hartung has loaned to the Company $250,000 payable in August 2001 with 10%
interest per annum; the loan is collateralized by the real estate and
improvements of the Company, and is convertible as to principal in whole (but
not in part) at any time into shares of common stock of the Company at $.50 per
share. Upon conversion of the principal of this note, all accrued interest
(other than interest on any prepaid principal) will be forgiven.
8
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Simultaneous with these transactions, Barry M. Levine and Robert H. Stoffel, Jr.
resigned as directors and officers of the Company, and Mr. Hartung was elected
to the board of directors and assumed the responsibilities of President, Chief
Operating Officer and Chief Financial Officer.
9
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
information set forth in the unaudited financial statements and notes thereto
included elsewhere herein and the audited financial statements and the notes
thereto included in the 10-KSB.
Overview
Skylands Park is a 4,300-seat professional baseball stadium which, among other
things, has been and will be leased for sports and other entertainment events.
The Complex follows a courtyard village design theme, and includes, among other
things, a sports apparel and collectibles store, a wholesale and retail sporting
goods outlet, batting cages, and a video parlor.
The New Jersey Cardinals ("the Team"), which is a member of the Class "A" level
New York-Penn League, plays its regularly-scheduled home games and playoff home
games at Skylands Park. The Company has a minority ownership interest in Minor
League Heroes, L.P. ("Heroes"), which is the limited partnership that owns the
Team.
In February 1999, the Company entered into a lease agreement, which commenced in
May 1999 and expired in June 1999, with Newark Bears, Inc. (the "Bears") a
professional baseball team, which is a member of the independent Atlantic
League. Pursuant to the agreement, the Bears played 22 of its 1999 regular
season home games at Skylands Park during the months of May and June 1999. The
Bears paid rent of approximately $63,000. The Company retained the net proceeds
of all alcohol beverage concessions at Bears games.
The Company currently operates, in the Complex, the Skylands Sporting Goods
store, which sells, year-round both at retail and at wholesale, a broad range of
sporting goods relating to baseball and other sports, and Team paraphernalia.
The Company also operates, in the Complex, a year-round recreational facility
known as the "Barn", which contains batting cages, a sports video parlor,
mini-gym and children's party room, and a space subleased to a director of the
Company, where sports collectibles are sold by such director for his own
account.
The Company anticipates receiving approximately $42,000 per year in rent from
the Team, which management does not believe will constitute a significant
portion of the Company's revenues. The Company expects to generate additional
revenues from, among other things, the rental of skyboxes and advertising signs
in Skylands Park, the rental of Skylands Park for other sports and entertainment
events, the operation of the related facilities in the Complex, and the
Company's direct and indirect ownership interest in the limited partnership that
owns the Team. As of August 11, 1999, the Company had received 1999 season
commitments for three skyboxes for an aggregate rental of approximately $24,000
(of which the Team is entitled to retain approximately $10,000). In addition,
the Company is entitled to 20% of all revenues from advertising sign rental
commitments at Skylands Park. The Company's 20% share of such revenues in 1998
was approximately $75,000.
Although the Company does not expect to receive significant rental income from
the Team, the Company did receive in March 1999 and expects to continue to
derive income from cash distributions through its minority ownership interest in
Heroes. Accordingly, the revenues generated by the Team through paid admissions
and its ancillary operations will indirectly benefit the Company. A portion of
the Company's cash flow in each year of operations has been received
10
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
in the form of a distribution from Heroes in respect of the Company's share of
the net income of Heroes.
Plan of Reorganization
In April 1995, the Company paid $1,600,000 in respect of its pre-petition
unsecured liabilities (including payment in full of de minimis claims, and
subject to the Company's reservation of rights to contest a limited number of
unsecured claims), leaving a balance due in respect of such claims of
approximately $2,608,000, which was payable pursuant to the terms of the
Creditors' Note. The Company has fully paid the principal and accrued interest
on the Creditors' Note, primarily out of net equity proceeds from the sale of
common stock by the Company.
Claims held by insiders (consisting primarily of former directors and executive
officers of the Company and certain of their affiliates) in respect of
pre-petition obligations (including but not limited to pre-petition loans made
to the Company), originally in the aggregate amount of approximately $339,000,
may be paid from time to time after payment in full of the Creditor's Note, as
the cash flow of the Company may permit; or, at the option of each insider, may
be paid at any time or from time to time in shares of common stock of the
Company valued at the then-current market price of such common stock as
reported on NASDAQ. During the six months ended June 30, 1999, approximately
$6,000 was repaid upon conversion of such insider claims into 10,000 shares of
common stock, leaving an unpaid balance of approximately $82,000 at September
30, 1999.
Equity interests, including interests of stockholders and warrantholders, are
not altered or impaired under the terms of the Plan. However, pursuant to the
Plan, the Company is not permitted to pay any dividends on its common stock
until all required payments under the Plan have been made.
The foregoing information regarding the Plan is merely a summary of certain
material provisions thereof, and is qualified in its entirety by the specific
provisions of the Plan, a copy of which was previously filed as an exhibit to
the Company's Annual Report on Form 10-KSB for the year ended December 31, 1994.
11
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
Liquidity and Capital Resources
The Company's primary sources of liquidity since its inception have been the
sale of shares of common stock to and short-term borrowings from certain
shareholders, which were used during the period from inception through March
1993; the net proceeds of approximately $739,000 from a private placement of
common stock and warrants, which were used during the period from March 1993
through September 1993; the net proceeds of approximately $5,815,000 from an
initial public offering of common stock and Class A Warrants, which were used
during the last quarter of 1993 and the first quarter of 1994; short-term
borrowings from certain officers, former shareholders and other related and
unrelated parties during March, April and May 1994, which were used during the
first and the beginning of the second quarter of 1994; proceeds from the
exercise of Class A Warrants and Class B Warrants, which were received during
the fourth quarter of 1994, and in 1995; net proceeds of $1,500,000 from a
private placement of common stock in August 1995 (all of which net proceeds were
utilized for partial prepayment of the Creditors' Note); and net proceeds of
$2,965,228 from the issuance of and exercise of Class A Warrants and Class D
Warrants and underwriter's warrants in 1997 and 1998. As of December 31, 1998,
all unexercised Class A Warrants expired, and the Company has ceased any further
offering of Class D Warrants.
As of September 30, the Company had cash totaling approximately $524,000.
In August 1999, the Company issued, in a private placement, 500,000 shares of
the Company's common stock to Robert J. Hartung for $250,000. In addition, Mr.
Hartung has loaned to the Company $250,000 payable in August 2001 with 10%
interest per annum; the loan is collateralized by the real estate and
improvements of the Company, and is convertible as to principal in whole (but
not in part) at any time into shares of common stock of the Company at $.50 per
share. Upon conversion of the principal of this note, all accrued interest
(other than interest on any principal) will be forgiven.
12
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
Comparative Quarterly Results
The Company's stadium and facility rentals and admissions during the three and
nine months ended September 30, 1999 was approximately $124,000 and
approximately $308,000, respectively, as compared to approximately $215,000 and
approximately $327,000 for the three and nine months ended September 30, 1998.
The decreases are principally attributable to the lack of non-baseball
events. Retail and concession revenue decreased by approximately 20% for the
three and nine months ended September 30, 1999, to approximately $98,000 and
$169,000 respectively. The decrease is principally attributable to a decline of
12% in Cardinal's attendance.
Cost of stadium operations increased by approximately 5% to approximately
$93,000 and approximately $206,000 for the three and nine months ended September
30, 1999. The increase reflects required maintenance to the stadium in
connection with the Bears games. Cost of retail and concession sales as a
percentage of retail and concession sales decreased to approximately 57% for the
three and nine months ended September 30, 1999, respectively, as compared to 60%
and 54% in the comparable prior year periods. The decrease is due to reduced
labor costs.
Selling, general and administrative expenses decreased by approximately $25,000
to $190,000 for the three months ended September 30, 1999, as compared to the
same three months in 1998. The decrease is due to a reduction in legal and labor
costs.
The decrease in depreciation expense is attributable to the write-down of the
Company's fixed assets by approximately $11,545,000 in the fourth quarter of
1998.
Net loss in the three and nine months ended September 30, 1999 was approximately
$109,000 and approximately $423,000 respectively, as compared to approximately
$209,000 and approximately $1,425,000 in the three and nine months ended
September 30, 1998, respectively. The decrease is primarily attributable to a
non-recurring charge for stock based compensation recognized in the second
quarter of 1998 of approximately $734,000, and to the decrease in depreciation
in the 1999 periods.
Market For the Company's Common Stock
In March 1999, the Company's common stock was delisted from the NASDAQ Small Cap
Market and is now quoted on the OTC Bulletin Board.
Part II - OTHER INFORMATION
Item 1- Legal Proceedings
None
Item 6- Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Statement
(b) The Company did not file any reports on Form 8-K during the
Months ended September 30, 1999.
13
<PAGE>
MILLENNIUM SPORTS MANAGEMENT, INC.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
MILLENIUM SPORTS MANAGEMENT, INC.
- ---------------------------------
(Registrant)
Signature Title Date
President November 1, 1999
Chief Operating Officer
/s/ Robert J. Hartung Chief Accounting Officer
- ----------------------------
Robert J. Hartung
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
MILLENNIUM SPORTS MANAGEMENT, INC.
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB
FOR 9/30/99 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 524,223
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 44,841
<CURRENT-ASSETS> 569,064
<PP&E> 868,754
<DEPRECIATION> 31,246
<TOTAL-ASSETS> 1,864,396
<CURRENT-LIABILITIES> 838,452
<BONDS> 0
0
0
<COMMON> 122,980
<OTHER-SE> 902,964
<TOTAL-LIABILITY-AND-EQUITY> 1,864,396
<SALES> 169,024
<TOTAL-REVENUES> 507,374
<CGS> 96,014
<TOTAL-COSTS> 333,305
<OTHER-EXPENSES> 601,840
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (4,323)
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (423,448)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (423,448)
<EPS-BASIC> (0.54)
<EPS-DILUTED> (0.54)
</TABLE>
