U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ______________ to_____________
Commission File No. 0-25281
LOG POINT TECHNOLOGIES, INC.
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(Name of Small Business Issuer in Its Charter)
Colorado 84-1360787
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(State of Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
465 Fairchild Drive, Suite 111, Mountain View, CA 94043
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(Address of Principal Executive Offices) (Zip Code)
(650) 967-3974
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(Issuer's Telephone Number, Including Area Code)
N/A
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(Former name, former address and former fiscal year,
if changed since last year.)
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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 ______
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of May 25, 2000, Log Point
Technologies, Inc. had 11,233,333 shares of Common Stock outstanding, no par
value.
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<TABLE>
<CAPTION>
LOG POINT Technologies, Inc.
(a development stage company)
BALANCE SHEETS
(Unaudited)
Mar 31, 2000 Jun 30, 1999
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ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash & Cash Equivalents $ 301 $ 466
Accounts Receivable -- --
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Total Current Assets 301 466
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EQUIPMENT & FURNITURE
Office Equipment & Furniture (net of Depreciation) 31,739 39,595
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OTHER ASSETS
Product Technology License (net of Amortization) 110,250 120,750
Deposits 204,281 4,281
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Total Other Assets 314,531 125,031
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TOTAL ASSETS $ 346,571 $ 165,092
=========== ===========
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of capitalized lease obligations $ 12,594 $ 11,861
Short-Term Loans 322,536 --
Accounts Payable 163,918 148,648
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Total Current Liabilities 499,048 160,509
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LONG-TERM DEBT
Due on product license 167,909 160,574
Loans from Officers 88,231 6,761
Capitalized lease obligations less current portion 3,606 13,031
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Total Long-Term Debt 259,746 180,366
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OTHER LIABILITIES
Deferred salaries & wages, and related payroll taxes 1,154,049 882,569
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Total Liabilities 1,912,843 1,223,444
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STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock - No par value; 5,000,000 shares authorized; no shares issued
Common stock - No Par Value; 50,000,000 shares authorized; shares issued and
outstanding 11,233,333 and 11,058,333 as of March 31, 2000 and 1999 respectively 1,114,194 1,029,194
Retained Earnings (deficit) (2,680,466) (2,087,546)
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(1,566,272) (1,058,352)
Less stock receivable -- --
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Total Stockholders' Equity (Deficit) (1,566,272) (1,058,352)
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TOTAL LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT) $ 346,571 $ 165,092
=========== ===========
See Notes to Financial Statements
</TABLE>
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<TABLE>
<CAPTION>
LOG POINT Technologies, Inc.
(a development stage company)
STATEMENT OF OPERATIONS
(Unaudited)
For the Three Months Ended For the Nine Months Ended Since
March 31 March 31 Inception
---------------------------- ---------------------------- --------------
2000 1999 2000 1999 02/93 to 12/99
------------ ------------ ------------ ------------ --------------
<S> <C> <C> <C> <C> <C>
SALES None None $ 1,200 None $ 71,680
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COST OF SALES None None None None None
OPERATING EXPENSES:
General and Administrative 49,235 $ 106,445 228,603 217,308 745,135
Research and development 51,398 100,701 168,774 368,540 1,518,473
Depreciation and Amortization 6,118 5,997 18,355 17,650 136,704
------------ ------------ ------------ ------------ ------------
Total Operating Expenses 106,751 213,143 415,732 603,498 2,400,312
------------ ------------ ------------ ------------ ------------
LOSS BEFORE OTHER ITEMS (106,751) (213,143) (414,532) (603,498) (2,328,632)
OTHER INCOME & EXPENSE
Interest expense (39,652) (18,862) (178,388) (40,993) (364,641)
Interest Income -- 370 -- 11,892 12,807
------------ ------------ ------------ ------------ ------------
NET LOSS $ (146,403) $ (231,635) $ (592,920) $ (632,599) $ (2,680,466)
============ ============ ============ ============ ============
Loss Per Share $ (0.013) $ (0.021) $ (0.055) $ (0.058)
------------ ------------ ------------ ------------
Weighted average number of shares 10,919,903 10,789,533 10,811,570 10,898,568
------------ ------------ ------------ ------------
See Notes to Financial Statements
</TABLE>
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<TABLE>
<CAPTION>
LOG POINT Technologies, Inc.
(a development stage company)
STATEMENT OF CASH FLOWS
(Unaudited)
For the Three Months Ended For the Nine Months Ended Since
March 31 March 31 Inception
---------------------------- ---------------------------- --------------
2000 1999 2000 1999 02/93 to 03/00
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM (TO) OPERATING ACTIVITIES:
Net Income(Loss) From Operations: $ (146,403) $ (231,635) $ (592,920) $ (632,599) $ (2,680,466)
Add: Non-Cash Items
Depreciation and Amortization 6,118 5,997 18,356 17,650 136,705
Deferred salaries, related taxes and interest 86,485 88,295 271,480 207,678 1,154,049
Payment of expenses & loans with stock 10,000 -- 85,000 -- 251,060
Changes in Assets and Liabilities
Accounts Receivables -- -- -- -- --
Prepaid Expenses -- -- 2,500 --
Receivable & payables from officers-net 22,605 39,544 81,470 26,438 88,231
Receivable & payables from others-net -- -- -- (9,979) --
Deposits -- -- (200,000) -- (204,281)
Accounts payable 8,624 51,002 15,270 135,913 163,918
------------ ------------ ------------ ------------ ------------
Net Cash From(To) Operating Activities (12,571) (46,797) (321,344) (252,399) (1,090,784)
------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM(TO) INVESTING ACTIVITIES:
Acquisition of Equipment -- (100) -- (17,158) (68,694)
------------ ------------ ------------ ------------ ------------
Net Cash From(To) Investing Activities -- (100) -- (17,158) (68,694)
------------ ------------ ------------ ------------ ------------
CASH FLOWS FROM(TO) FINANCING ACTIVITIES:
Proceeds from capitalized leases -- -- -- 7,550 45,049
Proceeds from Short-term Financing 20,000 -- 322,536 -- 322,536
Repayment of Debt (548) (2,637) (1,357) 10,811,570 (70,940)
Sale of Common Stock -- -- -- -- 1,308,570
Purchases of Common Stock -- (46,040) -- (432,560) (445,436)
------------ ------------ ------------ ------------ ------------
Net Cash From(To) Financing Activities 19,452 (48,677) 321,179 10,386,560 1,159,779
------------ ------------ ------------ ------------ ------------
Increase(Decrease) in Cash 6,881 (95,574) (165) 10,117,003 301
Cash Balance, Beginning (6,580) 91,664 466 708,037 --
------------ ------------ ------------ ------------ ------------
Cash Balance, Ending $ 301 $ (3,910) $ 301 $ 10,825,040 $ 301
============ ============ ============ ============ ============
See Notes to Financial Statements
</TABLE>
<PAGE>
Notes to Financial Statements
-----------------------------
Note 1. Issuance of 144 Restricted Common
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During the third quarter ended March 31, 2000, a total of 175,000 shares of
restricted common stock of the Company were issued to six individuals for
services rendered to the Company during the second and third quarters.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
----------------------------------------------------------
During the third quarters ended March 31, 2000 and 1999, the Company incurred
losses of $146,403 and $231,635 respectively.
Log Point is a development stage company that incurred losses of $146,403 and
$231,635 for the quarters ended March 31, 2000 and 1999 respectively. Log Point
incurred losses of $592,920 and $632,599 for the three-quarters ended March 31,
2000 and 1999 respectively. Since inception, the Company has incurred losses
totaling $2,680,466.
Currently, Log Point is dependent upon borrowings to fund its development stage
operations, and at a minimum, management believes that its borrowings will be
adequate to fund its minimum requirements for the twelve-month period ending
March 31, 2001. Log Point does not expect any significant revenues during the
twelve-month period ending March 31, 2001.
When Log Point emerges from its development stage, additional financing will be
needed. Log Point completed negotiations for a major debt financing and received
a commitment letter for a twenty-million-dollar financing from Monmouth Partners
L.L.P of Monmouth County, New Jersey. These additional funds will be used for
sales and marketing efforts and for production of hardware chips using the
Company's hardware designs.
The Company will require substantial additional financing in future years. The
additional financing would be obtained through loans, secondary public
offerings, private placements, and/or mergers. There can be no assurance that
such funds will be sufficient in the near term or that conditions and
circumstances described herein may not result in subsequent cash requirements by
the Company in the immediate future just to sustain operation. In the event of
such developments, attaining financing under such conditions may not be
possible, or even if additional capital may be otherwise available, the terms on
which such capital may be available may not be commercially feasible or
advantageous. If future funding is not obtained, Log Point would expect to
continue to receive loans until revenue from product licensing and sales become
adequate to sustain the companies operations.
Log Point will not conduct any significant research and development during the
twelve months ending March 31, 2001.
Log Point has no plans to purchase any plant or significant equipment during the
twelve months ending March 31, 2001.
The Company does not anticipate any significant changes in its number of
employees during the twelve months ending March 31, 2001.
<PAGE>
SIGNATURE
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In accordance with the requirements of the Exchange Act, the Registrant caused
this Form 10-QSB report to be signed on its behalf by the undersigned thereunto
duly authorized.
LOG POINT TECHNOLOGIES, INC.
Date: March 30, 2000 By: /s/ Samuel P. Shanks
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Samuel P. Shanks, President
