SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________

FORM 10-Q

(MARK ONE)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES    EXCHANGE ACT OF 1934

> 
For the quarterly period endedOctober 31, 2002 or

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES    EXCHANGE ACT OF 1934

> 
 

Commission file number 1-10366

| LASER RECORDING SYSTEMS, INC.
(Exact name of registrant as specified in its Charter)
 
 
NEW JERSEY
22-2582847
(State or Other Jurisdiction of Incorporation or    Organization)
(I.R.S. Employer Identification No.)
 
 
1359 New York Avenue
 
Huntington Station, New York
11746
(Address of Principal Executive Offices)
(Zip Code)
 
 
(800) 786-1352
(Registrant's Telephone Number, Including Area Code)
Check whether the registrant (1) filed all reports required to be filed bySection 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (orfor 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 [ ]

Indicate the number of shares outstanding of each of the issuer's classes ofcommon stock, as of the latest practicable date: 10,000,000 shares of theCompany's Common Stock, $.001 par value, were outstanding as of September 5,2002.

 

Item 1 Financial Statements

LASER RECORDING SYSTEMS, INC.
BALANCE SHEETASSETS
October 31, 2002
Januuary 31, 2002CURRENT ASSETS:
    Cash and Cash Equivalents
 $        2,373
$4,255
Total Current Assets

 $        2,373

$4,255
Total Assets

 $        2,373
$4,255
LIABILITIES AND STOCKHOLDERS' EQUITY    CURRENT LIABILITIES
    Accrued Expenses
 $                -
 $    791
    Total Current Liabilities
$                -
$    791
    Loan Payable -- Stockholder
$       30,000
$25,000
    Total Liabilities
$       30,000
$25,791    Stockholders' Equity
    Common Stocks, 400,000,000 shares authorized, 

      10,000,000 issued and outstanding

      

$7,408,910

 

$7,408,910
     Paid-in Capital

1,400

1,400
    Retained Earnings

(7,437,937)

(7,431,846)
            Total Stockholders' Equity

$    (27,627)
$    (21,536)
    Total Liabilities and Stockholders' Equity
$        2,373

$        4,255
    The accompanying notes are an integral part of the financial statements.
 

 

 

LASER RECORDING SYSTEMS, INC.
STATEMENT OF REVENUES, EXPENSES AND RETAINED EARNINGS
Three Months Ended
6 Months Ended
October 31
October 31
2002
2001
2002
2001Revenues:
Interest Income
$          -
$         -
$          -
$         -
Total Revenues
$          -
$         -
$          -
$         -Expenses:
 
 
    Administrative Expenses
$    1,350
$  816
$    6,040
$     5,594
Taxes
          -
          -
         50
         54
Total Expenses
$   1,350
$    816
$   6,090
$ 5,648Net Loss
$(1,350)
$ (816)
$(6,090)
$(5,648)Net loss per share
$   (0.00)
$  (0.00)
$   (0.00)
$  (0.00)    Shares used in computing net loss per share
10,000,000
10,000,000
10,000,000
10,000,000        
    The accompanying notes are an integral part of the financial statements.
 

 

LASER RECORDING SYSTEMS, INC.
STATEMENT OF CASH FLOWS
For the  Nine Months Ended
October 31
2002
2001    Cash flows from operating activities:
Net Loss
$            - 
 $          -     Cash flows from financing activities:
    Loan from Shareholder
5,000
4,000
    Capital Contribution
Accrued Expenses
  (791)
(200) 
    Maintaining the Corporate Entity
   (6,090)
   (5,649)
    Net cash provided by (used in) financing activities
$   (1,881)
$ (1,849)    Increase (Decrease) in Cash
 $ (1,881)
$ (1,849)    Cash -- Beginning of Period
     4,254
     2,024    Cash -- End of Period
$   2,373
$    175
    The accompanying notes are an integral part of the financial statements.
LASER RECORDING SYSTEMS INC.

NOTES TO THE FINANCIAL STATEMENTS

As of October 31, 2002

GENERAL

Laser Recording Systems, Inc. (the Company) was organized in 1985 as thesuccessor to several other businesses by the original founder. In 1988, PolyVentures, Limited Partnership held approximately 70% of the outstanding votingshares and maintained a controlling interest in the Company until 1998. In 1998several investors acquired the remaining interest from Poly Ventures.

The Company ceased operations and laid off all its employees on August 16,1993. 

BASIS OF PRESENTATION

The accompanying financial statements have been prepared in conformity withgenerally accepted accounting principles and reflect all adjustments, which inthe opinion of management are necessary for a fair presentation of the resultsfor the periods shown. The results of operations for such periods are notnecessarily indicative of the results expected for the full fiscal year or forany future period.

Note 1

As of the date of thefinancial statements, 400,000,000 shares of theCompany's common stock were authorized and 10,000,000 shares were issued andoutstanding.  Officers hold 1,800,000 ofwarrants which they received for future services. On April 19, 2002, theshareholders of the Company authorized an amendment to the Certificate ofIncorporation to increase the number of authorized shares of common stock to400,000,000 and the number of preferred shares to 10,000,000, effective uponfiling of a certificate of amendment with the New Jersey Secretary of State. 

Note 2

The Company discontinued operation on August 16, 1993, however the Companymaintained certain functions to continue the existence of the Corporation.Stockholders services and maintaining of records were handled on an ongoingbasis. For financial statement purposes all revenues and expenses are considerednon-operating transactions from February 1, 1994 to the present. 

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION ANDRESULTS OF OPERATIONS.

Results of Operations

The Company has no sources of revenue. Expenses reflect only the minimum costof maintaining the Company's operations and miscellaneous expenses associatedwith seeking a merger partner. In view of these limited operations, managementdoes not believe that a comparison of specific line items from period to periodit would be meaningful. 

Liquidity and Capital Resources

The Company's financial statements have been prepared assuming that it willcontinue as a going concern. As shown in the consolidated financial statements,at October 31, 2002 the Company had total assets of $2,373 and an accumulateddeficit of $7,437,937. The Company obtains its entire financial support fromloans from the Company's majority shareholder, and it is likely that additionalloans from that shareholder will be necessary if the Company is to pursue itsplans to merge with an operating enterprise. These factors, among other things,raise substantial doubt about its ability to continue as a going concern. Theconsolidated financial statements do not include any adjustments relating to therecoverability and classification of recorded asset amounts or the amounts orclassification of liabilities that might be necessary should the Company beunable to continue in operation.

PART II -- OTHER INFORMATION

Item 5. Other Information

N/A

Item 6. Exhibits and Reports on Form 8-K

N/A

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, theregistrant has duly caused this report to be signed on its behalf by theundersigned thereunto duly authorized. 

 

LASER RECORDING SYSTEMS, INC.

(Registrant)

Date: December 10, 2002

/s/ Walter Hinchcliffe                     

Walter Hinchcliffe

President

 

Date: December 10, 2002

/s/ Carl Lanzisera                           

Carl Lanzisera

Chief Financial Officer

(Principal Financial and Accounting Officer)

 

 

Each of the undersigned certifies that as to the above report:

1.     He has reviewed the report;

2.     Based on his knowledge, the report does not contain any untrue statementof a material fact or omit to state a material fact necessary in order to makethe statements made, in light of the circumstances under which such statementswere made, not misleading with respect to the period covered by the report;

3.     Based on his knowledge, the financial statements, and other financialinformation included in the report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the issuer as of,and for, the periods presented in the report;

4.     He and the other certifying officers:

(a)    are responsible for establishing and maintaining "disclosure controls andprocedures" for the issuer;

(b)     have designed such disclosure controls and procedures to ensure thatmaterial information is made known to them, particularly during the period inwhich the periodic report is being prepared;

(c)     have evaluated the effectiveness of the issuer's disclosure controls andprocedures as of a date within 90 days prior to the filing date of the report;and

(d)     have presented in the report their conclusions about the effectiveness ofthe disclosure controls and procedures based on the required evaluation as ofthat date;

5.     He and the other certifying officers have disclosed to the issuer'sauditors and to the audit committee of the board of directors:

(a)     all significant deficiencies in the design or operation of internalcontrols which could adversely affect the issuer's ability to record, process,summarize and report financial data and have identified for the issuer'sauditors any material weaknesses in internal controls; and

(b)     any fraud, whether or not material, that involves management or otheremployees who have a significant role in the issuer's internal controls; and

6.     He and the other certifying officers have indicated in the report whetheror not there were significant changes in internal controls or in other factorsthat could significantly affect internal controls subsequent to the date oftheir evaluation, including any corrective actions with regard to significantdeficiencies and material weaknesses.

In stating that the above matters are true "based on his knowledge," theundersigned does not mean that he knows such matters to be true, but means thatafter reasonable inquiry he does not know of any facts which indicate to himthat such matters are not true.

/s/ Walter Hinchcliffe                 

Walter Hinchcliffe

Chief Executive Officer

 

/s/ Carl Lanzisera                         

Carl Lanzisera

Chief Financial Officer |
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