QUATERLY REPORT FOR QUARTER ENDED SEPTEMBER 30, 2006
Page
PART I
FINANCIAL INFORMATION
3
Item 1.
Financial Statements (unaudited)
3
Condensed Consolidated Balance Sheet (unaudited) as of September 30, 2006
3
Condensed Consolidated Statement of Income (unaudited) for the three
months ended September 30, 2006 and September 30, 2005
5
Condensed Consolidated Statements of Cash Flows (unaudited) for the
three months ended September 30, 2006 and September 30, 2005
5
Notes to Condensed Consolidated Financial Statements
6
Item 2.
Management’s Discussion and Analysis or Plan of Operation
13
Item 3.
Controls and Procedures
24
PART II
OTHER INFORMATION
24
Item 1.
Legal Proceedings
24
Item 2.
Unregistered Sales of Securities and Use of Proceeds
24
Item 6.
Exhibits
26
2
ITEM 8.01 OTHER EVENTS,: ( NON REPORTING REGISTRANT : SEALIFE CORPORATION IS A NON REPORTING ENTITY UNDER THE SECURTIES AND EXCHANGE ACT OF 1934, AS A RESULT OF ITS FILING OF FORM 15 WITH THE SEC ON AUGUST 7, 2006.
SEALIFE CORPORATION QUARTERLY REPORT FOR QUARTER ENDED SEPTEMBER 30, 2006
PART I
FINANCIAL INFORMATION
Item 1.
Financial
SEALIFE CORPORATION AND SUBSIDIARIES | ||||
CONSOLIDATED BALANCE SHEET | ||||
September 30, 2006 and 2005 | ||||
September 30, | September 30, | |||
2006 | 2005 | |||
ASSETS | ||||
Current Assets | ||||
Cash | $ 6,042 | $ 3,163 | ||
Cash in escrow | 25,000 | 25,000 | ||
Inventory | 35,350 | 90,670 | ||
Accounts Receivable | 108,309 | 9,177 | ||
Prepaid expenses | - | 67,928 | ||
Total Current Assets | 174,701 | 195,938 | ||
Other Assets | ||||
Technology | 1,735,309 | 1,735,309 | ||
Less: accumulated amortization | (1,735,309) | (343,768) | ||
- | 1,391,541 | |||
Total Assets | $ 174,701 | $ 1,587,479 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Current Liabilities | ||||
Notes payable | $ 87,500 | $ 205,650 | ||
Accounts payable | 91,901 | 99,678 | ||
Accrued expenses | 13,112 | 44,753 | ||
Accrued wages | 63,106 | 336,129 | ||
Accrued interest | 83,176 | 32,679 | ||
Accrued payroll taxes | 8,382 | 8,382 | ||
Accrued royalties | 7,654 | - | ||
Current portion of long-term debt | 12,318 | 11,390 | ||
Total Current Liabilities | 367,149 | 738,661 | ||
Long-Term Debt | ||||
Notes payable | 207,991 | 306,926 | ||
Stockholders' Equity | ||||
Common stock | 4,092 | 2,428 | ||
Additional paid in capital | 8,463,190 | 6,713,810 | ||
Deficit accumulated during the development stage | (8,867,721) | (6,174,346) | ||
Total Stockholders' Equity | (400,439) | 541,892 | ||
Total Liabilities and Stockholders' Equity | $ 174,701 | $ 1,587,479 | ||
See accompanying notes and accountants report | ||||
3
SEALIFE CORPORATION AND SUBSIDIARIES | |||||
CONSOLIDATED STATEMENT OF INCOME | |||||
For the Three Months Ended September 30, 2006 and 2005 | |||||
Three Months ended | September 30, 2006 | Three Months Ended | September 30, 2005 | ||
September 30, 2006 | Year to date | September 30, 2005 | Year to date | ||
Sales | $ 12,698 | $ 81,930 | $ 21,929 | $ 99,260 | |
Cost of sales | 6,326 | 49,309 | 11,637 | 57,250 | |
Gross Profit | 6,372 | 32,621 | 10,292 | 42,010 | |
Sales and marketing | (11,529) | 59,294 | 106,873 | 337,503 | |
General and administrative | 522,653 | 1,044,309 | 400,660 | 1,406,568 | |
511,124 | 1,103,603 | 507,533 | 1,744,071 | ||
Net Loss before Extraordinary Item | $ (504,752) | $ (1,070,982) | $ (497,241) | $ (1,702,061) | |
Proceeds from legal settlement | $ 35,000 | $ 35,000 | $ - | $ - | |
Net Loss | $ (469,752) | $ (1,035,982) | $ (497,241) | $ (1,702,061) | |
Loss per share | |||||
average shares outstanding | 39,987750 |
24,638139 | |||
Loss per share | .01 | .03 | |||
See accompanying notes and accountants report | |||||
4
SEALIFE CORPORATION AND SUBSIDIARIES | ||||||
CONSOLIDATED STATEMENT OF CASHFLOWS | ||||||
For the Three Months Ended September 30, 2006 and 2005 | ||||||
Three Months Ended | September 30, 2006 | Three Months Ended | September 30, 2005 | |||
September 30, 2006 | Year to date | June 30, 2005 | Year to date | |||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
Net Loss | $ (469,752) | $ (1,035,982) | $ (497,241) | $ (1,702,061) | ||
Adjustments to reconcile net loss to net | ||||||
cash provided used in operating activities | ||||||
Amortization | 28,923 | 87,769 | ||||
Stock issued for services | 231,020 | 550,207 | 357,221 | 970,466 | ||
Changes in Current Assets and liabilities: | - | |||||
(Increase) in Accounts receivable | 9,566 | (26,737) | (5,929) | (9,177) | ||
(Increase) Decrease in Inventories | (2,370) | (9,600) | 6,215 | (66,366) | ||
Decrease in Prepaid expenses | 45,647 | 28,593 | - | 34,737 | ||
Increase in Accounts payable | 37,814 | 33,183 | 579 | 77,446 | ||
Increase in Accrued expenses | 71,543 | 122,312 | 10,247 | 212,730 | ||
Increase in Accrued wages | 75,000 | 264,574 | 75,000 | 270,237 | ||
Increase in Accrued interest | 6,336 | 27,111 | 10,394 | 23,286 | ||
Increase in Accrued royalties | 993 | 19,483 | - | - | ||
Increase in Sales deposits | 3,248 | 3,248 | ( 6,000) | - | ||
NET CASH (USED) BY | ||||||
OPERATING ACTIVITIES | 8,685 | (23,608) | (20,592) | (101,933) | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
Sale of Common stock |
|
| - | 60,000 | ||
Increase (decrease) in Notes payable | 10,000 | - | 10,245 | |||
Decrease Increase in Accounts payable SH | 44,500 | 6,500 | 38,914 | |||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 31,725 | 6,500 | 109,159 | |||
NET INCREASE (DECREASE) IN CASH | 22,775 | (14,092) | 7,226 | |||
CASH AT BEGINNING OF PERIOD | 8,685 | 833 | 42,255 | 20,937 | ||
CASH AT END OF PERIOD | $ 22,357 | $ 31,875 | $ &nb | |||
