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 September 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
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Common stock, par value $.001 per share; 5,964,849 shares outstanding as of
October 31, 1996
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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
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Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
The losses for the nine months and three months ended September 30,
1996 are 33.7% and 42.7% less than the comparable periods last year; namely,
$(2,825,325) and $(4,258,228); $(1,177,653) and $(2,055,779) 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 September 30, 1996 payable on October 31, 1996.
The reduction of the loss is attributable to the cut-back of its
LottoWorld magazine from every two weeks to a monthly frequency as well as a
more than 50% reduction in circulation and marketing and promotion expenses
attributable to the national newsstand launch of its LottoWorld magazine in
1995. There were seven issues of LottoWorld magazine in the third quarter of
1995 as compared to three issues in the comparable quarter of 1996.
Expenses were reduced more than 25% for the nine months and more than
41% for the three months ended September 30, 1996 when compared to the same
periods in 1995. The Company anticipates further significant reductions in
expenses applicable to its LottoWorld magazine as the circulation growth rate of
this magazine from subscription sales outpaces the rate of growth of newsstand
circulation.
The Company, through its wholly-owned subsidiary, launched its second
magazine, the New York Lottery Players Monthly. This new magazine is published
under a three-year exclusive agreement with the New York State Division of
Lottery. With a circulation of 1,100,000 copies per month, the October issue was
the largest magazine launch in the United States since 1990 and immediately
ranks as the third largest magazine in New York, ranked by circulation. As it is
the policy of the Company to recognize an issue as published when it is shipped
from the printer, the Company has included this issue in the quarter ended
September 30, 1996. As a controlled circulation magazine (free to the reader),
the Company will depend on the sale of advertising to make this publication
profitable. As with most new publications, the sale of advertising lags behind
the introduction of a magazine . The Company recognized a loss in excess of
$200,000 attributable to this first issue.
Liquidity and Capital Resources
On September 12, 1996, the Company sold 371,496 shares of its $.001
common stock and derived $552,218 in the aggregate. The shares were sold to 18
individuals and entities, all of whom were "accredited investors" under
Regulation D promulgated by the Securities and Exchange Commission. In addition
to this capital, the Company feels it will need to raise $2,000,000 of
additional capital in the next six months to fulfill its objectives in regard to
the State Lottery Digest Program, of which the New York Lottery Players Monthly,
is the first edition.
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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 September 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
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Stuart Dubow
Chief Financial Officer
DATED: February 14, 1997 s/Stuart Dubow
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Stuart Dubow
Chief Financial Officer
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