U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the Quarter Ended June 30, 1996
Commission file number 0-25624
LOTTOWORLD, INC.
(Exact name of registrant as specified in its charter)
Florida 65-0399794
(State of Incorporation) (IRS Employer ID No.)
2150 Goodlette Road
Suite 200
Naples, FL 34102
(Address of principal executive offices) (Zip Code)
(941) 643-1677
(Telephone Number)
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 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
--- ---
Common stock, par value $.001 per share; 5,428,353 shares outstanding as of July
31, 1996
<PAGE>
LOTTOWORLD, INC.
TABLE OF CONTENTS
PART I Financial Information Page No.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 3
PART II Other Information
Item 6. Exhibits and Reports on Form 8-K 4
SIGNATURES 4
-2-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Result of Operations
The loss for the six months and three months three months ended June
30, 1996 and 1995 are $(1,647,672) and $(2,237,317); $(790,699) and $(1,405,727)
respectively before dividends paid to preferred shareholders.
The Company declared a dividend in the amount of $.15 per share for
record holders of its Series A. Convertible Preferred Stock as of the close of
business on June 30, 1996 payable on July 31, 1996.
Revenues increased 127% and 43% for the six months and the three months
ended June 30, 1996 respectively, when compared to similar periods in 1995. The
major component of the increase was subscription income which increased because
of the addition of approximately 61,000 subscribers obtained through the efforts
of Publishers Clearing House.
Operating expenses decreased $256,000 and $521,000 for the same periods
respectively. In 1995, the Company launched its national distribution of
LottoWorld through the efforts of Time Distribution Services and ICD/The Hearst
Corporation. The operating costs for that launch are reflected in the 1995
operations. In September 1995, the Company realized that there were problems
with the distribution of LottoWorld and stopped most of the promotion and
marketing efforts. The six months ended June 30, 1996 show the decrease in those
efforts.
Liquidity and Capital Resources
On June 28, 1996, in an offering to 35 individuals and entities, all of
whom were "accredited investors" under Regulation D promulgated by the
Securities and Exchange Commission, the Company sold 1,188,164 shares of its
$.001 par value common stock for an aggregate of $1,718,382. Those proceeds,
together with expected increases in revenues attributed to the Company's
wholly-owned subsidiary, Lottery Players Publishing Company, which is expected
to begin operations in October when it publishes it's first issue on behalf of
the New York State Lottery, should enable the Company to have the working
capital necessary to meet its needs for the next twelve months.
-3-
<PAGE>
PART II Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 11. Computation of net (loss per share of
Common Stock - not required
(b) The Registrant did not file a Form 8-K
during the quarter ended June 30, 1996.
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.
LOTTOWORLD, INC.
DATED: February 14, 1997 s/Stuart Dubow
-----------------------
Stuart Dubow
Chief Financial Officer
DATED: February 14, 1997 s/Stuart Dubow
-----------------------
Stuart Dubow
Chief Financial Officer
-4-
