-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WjT5V3Bymwrrzl+oF4/A52SUedWJnfbP5vpzVhvRfUxz932PjIFwUvH0HEMS5EiJ 4H+ynd24De7/UGYBnKxCZQ== 0000943440-01-500296.txt : 20020410 0000943440-01-500296.hdr.sgml : 20020410 ACCESSION NUMBER: 0000943440-01-500296 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010930 FILED AS OF DATE: 20011113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LITEGLOW INDUSTRIES INC CENTRAL INDEX KEY: 0001022494 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-MOTOR VEHICLES & MOTOR VEHICLE PARTS & SUPPLIES [5010] IRS NUMBER: 650516403 STATE OF INCORPORATION: UT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-27087 FILM NUMBER: 1783080 BUSINESS ADDRESS: STREET 1: 2301 N W 33RD COURT STREET 2: #104 CITY: POMPANO BEACH STATE: FL ZIP: 33069 BUSINESS PHONE: 9549714569 MAIL ADDRESS: STREET 1: 2301 NW 33RD CT STREET 2: #104 CITY: POMPANO BEACH STATE: FL ZIP: 33069 10QSB 1 sept01-10q.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE PERIOD ENDED: SEPTEMBER 30, 2001 COMMISSION FILE NUMBER:000-27087 LITEGLOW INDUSTRIES, INC. ---------------------------------------------------------------- (Exact name of registrant as specified in its charter) UTAH 65-05164035 ---------------------------------------------------------------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 2301 N.W. 33rd Court, Unit 112, Pompano Beach, Florida 33069 ---------------------------------------------------------------- (Address, including zip code, of principal executive offices) (954) 971-4569 ---------------------------------------------------------------- (Registrant's telephone number, including area code) ---------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all documents and reports required to be filed by Sections 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 filings for the past 90 days. YES X NO --- --- APPLICABLE ONLY TO CORPORATE ISSUERS: As of September 30, 2001, the number of the Company's shares of par value $.001 common stock outstanding was 4,273,287. 1 LITEGLOW INDUSTRIES, INC. FORM 10-Q SEPTEMBER 30, 2001 INDEX Part I - FINANCIAL INFORMATION Item 1 - Financial Statements Balance Sheets.......................................................3 Statements of Operation..............................................4 Statements of Cash Flow..............................................5 Notes to Financial Statements........................................6 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations........................7 PART II - OTHER INFORMATION..........................................9 SIGNATURES..........................................................10 2 LITEGLOW INDUSTRIES, INC. BALANCE SHEET SEPTEMBER 30, 2001 (unaudited) ASSETS Current assets: Cash and cash equivalents $ 41,155 Accounts receivable 890,472 Inventory 578,592 Prepaid expenses 82,562 ----------- Total current assets 1,592,781 Property and equipment less accumulated depreciation 191,632 Goodwill, net 178,448 Loan costs, net 14,357 Deposits 37,151 Advances to stockholders 20,464 ----------- $ 2,034,833 =========== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Current maturities of long-term debt $ 3,900 Current maturities of capital leases 34,288 Line of credit 1,126,016 Loans from shareholders 137,775 Accounts payable and accrued expenses 381,508 ----------- Total current liabilities 1,683,487 ----------- Long term capital lease obligations less current maturities 64,664 ----------- Stockholders' equity (deficit): Preferred stock par value $.001 issued and authorized 1,000,000 1,000 Common stock, $.001 par value; authorized 10,000,000 shares 4,273,287 shares issued and outstanding 4,274 Additional paid-in capital 3,413,971 Retained deficit (3,132,563) ----------- Total stockholders' equity (deficit) 286,682 ----------- $ 2,034,833 =========== See accompanying notes 3 LITEGLOW INDUSTRIES, INC. STATEMENT OF OPERATIONS (unaudited)
Nine Months Nine Months Three Months Three Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2001 2000 2001 2000 ------------- ------------- ------------- ------------- Sales $ 4,042,047 $ 3,363,654 $ 1,888,325 $ 1,255,819 Cost of sales 1,883,738 1,525,111 960,106 520,119 ----------- ----------- ----------- ----------- Gross profit 2,158,309 1,838,543 928,219 735,700 Selling, general and administrative expenses 1,875,346 1,828,148 677,694 716,233 ----------- ----------- ----------- ----------- Income from operations 282,963 10,395 250,525 19,467 ----------- ----------- ----------- ----------- Other income (expenses): Interest expense (102,258) (48,743) (31,947) (8,720) Lawsuit settlement 132,606 Gain on disposal of assets 5,167 6,748 7,087 (7,600) ----------- ----------- ----------- ----------- Total other income (expenses) 35,515 (41,995) (24,860) (16,320) ----------- ----------- ----------- ----------- Income (loss) before income taxes 318,478 (31,600) 225,665 3,147 Income tax expense (benefit) - - - - ----------- ----------- ----------- ----------- Net income (loss) $ 318,478 $ (31,600) $ 225,665 $ 3,147 =========== =========== =========== =========== Net loss per common share: Basic: Net income (loss) per common share .07 (.01) .05 .00 Diluted: Net income (loss) per common share .03 (.01) .02 .00 Weighted average shares outstanding basic 4,273,287 4,273,287 4,273,287 4,273,287 ========== ========== ========== ========== Weighted average shares outstanding diluted 9,273,287 4,273,287 9,273,287 9,273,287 ========== ========== ========== ==========
See accompanying notes 4 LITEGLOW INDUSTRIES, INC. STATEMENT OF CASH FLOWS (unaudited)
Nine Months Nine Months Ended Ended September 30, September 30, 2001 2000 -------------- -------------- Cash flows from operating activities: Net income (loss) $ 318,487 $ (31,600) Adjustments to reconcile net income to net: Cash provided by (used for) operating activities Depreciation and amortization 62,598 36,954 Deferred tax liability (60,897) Non cash compensation 100 37,333 Gain on disposal of equipment (5,167) - Settlement of debt (85,000) - Changes in assets and liabilities: Accounts receivable (339,484) (243,452) Inventory 61,212 (92,860) Prepaid expenses (17,331) 86,577 Deposits and other assets - (13,290) Deferred loan costs (21,500) - Accounts payable and accrued expenses (584,203) 296,925 ------------ ------------- Net cash provided from (used for) operations (610,288) 15,690 ------------ ------------- Net cash used in investing activities: Proceeds from sale of equipment 50,260 12,000 Purchase of equipment (19,018) (34,050) ------------ ------------ Net cash used for investing activities 31,242 (22,050) ------------ ------------ Cash flows from (used in ) financing activities Repayments to stockholder (63,139) (24,970) Proceeds from line of credit 727,349 - Payments of long term debt and leases (61,402) (83,044) ------------ ------------ Net cash provided by financing activities 650,665 (108,014) ------------ ------------ Net increase (decrease) in cash and cash equivalents 23,762 (114,374) Cash and cash equivalents, beginning of period 17,393 112,005 ------------ ------------ Cash and cash equivalents, end of period $ 41,155 $ (2,369) ============ ============ Supplemental disclosure: Interest paid $ 102,258 $ 48,743 ============ ============ Assets acquired with debt $ 47,857 $ - ============ ============
See accompanying notes 6 LITEGLOW INDUSTRIES, INC. FORM 10-QSB SEPTEMBER 30, 2001 PART I - FINANCIAL INFORMATION Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis should be read in conjunction with the Financial Statements appearing elsewhere in this Report. It includes an analysis of the three and nine months ended September 30, 2001, and 2000, respectively. Forward-Looking Statements - -------------------------- Except for the historical statements and discussions contained herein, statements contained in this report constitute "forward-looking statements" as defined in the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events, and are subject to a number of risks and uncertainties and other factors, many of which are outside the control of the Company, that could cause actual results to differ materially from such statements. Readers are cautioned not to put undue reliance on such forward-looking statements, each of which speaks only as of the date hereof. Factors and uncertainties that could affect the outcome of such forward-looking statements include, among others, market and industry conditions, increased competition, changes in governmental regulations, general economic conditions, pricing pressures, and the Company's ability to continue its growth and expand successfully into new markets and services. The Company disclaims any intention or obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 7 LITEGLOW INDUSTRIES, INC. FORM 10-QSB SEPTEMBER 30, 2001 Results of Operations Three and Nine Months Ended September 30, 2001 and 2000 Net sales for the nine months ended September 30, 2001 were $4,042,047 compared to net sales of $3,363,654 for the nine months ended September 30, 2000. For these same periods, costs of sales were $1,883,738 compared to $1,525,111 for 2001 and 2000 respectively. The gross profit for the nine months ended September 30, 2001 and 2000 was $2,158,309 and $1,838,543, respectively. The company's selling, general and administrative expenses increased to $1,875,346 from $1,828,148 for the nine months ended September 30, 2001 and 2000, respectively. The company had income from operations of $282,963 for the nine months ended September 30, 2001 compared to $10,395 for the nine months ended September 30, 2000. Net sales for the quarter ended September 30, 2001 were $1,888,325 compared to net sales of $1,255,819 for the quarter ended September 30, 2000. For these same periods, cost of sales were $960,106 compared to $520,119 for 2001 and 2000, respectively. The gross profit for the quarter ended September 30, 2001 and 2000 was $928,219 and $735,700, respectively. The company's selling, general and administrative expenses decreased to $677,694 from $716,233, respectively. The company had income from operations of $250,525 compared to $19,467 for the quarter ended September 30, 2001 and 2000 respectively. The company decreased its inventory during the first nine months of 2001 by $61,211 compared to an increase of $92,860 for the same quarter of 2000. The company continues making efforts to better anticipate inventory needs. As a consequence the Company was able to utilize existing inventory to meet current sales needs. Liquidity and Capital Resources Total current assets decreased to $1,592,781 at September 30, 2001 compared to $1,697,111 at September 30, 2000 primarily as a result of reducing its inventory levels. The Company's total assets decreased to $2,034,833 at September 30, 2001 compared to $2,173,620 at September 30, 2000 primarily as a result of lowering its inventory levels and the continuing depreciation and amortization of certain assets. The Company's accounts payable and accrued expenses decreased to $381,508 at September 30, 2001 compared to $742,384 at September 30, 2000, however loans payable to shareholder increased to $137,775 at September 30, 2001 compared to $-0- at September 30, 2000. The Company's total current liabilities increased to $1,683,487 at September 30, 2001 from $1,198,484 at September 30, 2000 primarily due to short-term borrowings. The Company's net cash used by operations was $610,288 for the nine months ended September 30, 2001 compared to net cash provided from operations of $15,690 for the nine months ended September 30, 2000. The Company successfully obtained a new financing agreement that resulted in approximately $727,349 of new borrowings through September 30, 2001. 8 LITEGLOW INDUSTRIES, INC. FORM 10-QSB SEPTEMBER 30, 2001 Liquidity and Capital Resources (continued) The Company closed its consumer sales division located in Orlando, Florida, which eliminated approximately 7 employees and is expected to reduce operating expenses of payroll, travel, shows and advertising by approximately $350,000 annually. The costs of its remaining Orlando operation is currently being analyzed to determine whether additional savings can be obtained by moving it to its Pompano Beach, Florida location. The Company believes that the selling, general and administrative costs need to be reviewed and efforts are currently under way to reduce its operating expenses. Subsequent Event In October, 2001 the Company increased its line of credit from $1,200,000 to $2,000,000. The increase was needed in order to bring inventory levels to amounts sufficient to satisfy its current orders. The existing line of credit was amended to accommodate the $800,000 increase, however, substantially all other terms and conditions of the line of credit agreement was unchanged. 9 LITEGLOW INDUSTRIES, INC. FORM 10-Q SEPTEMBER 30, 2001 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 Vote of Security Holders ------------------------------------------------- None Item 5 - Other information ----------------- None Item 6 - Exhibits and reports on Form 8-K -------------------------------- None b) There were no reports filed on Form 8-K during the quarter ended September 30, 2001. 10 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. LITEGLOW INDUSTRIES, INC. ------------------------- Registrant Date: November 9, 2001 /s/ Spencer Krumholtz ---------------- ------------------------ Spencer Krumholz, President 11 -----END PRIVACY-ENHANCED MESSAGE-----