MICRO LABORATORIES INC (MLAR)
Quarterly Report (SEC form 10QSB)
ITEM 2 - Management's' discussion and Financial Condition and Results of Operations:
Trends and Uncertainties. Demand for Micro's products will be dependent on, among other things, general economic conditions, which are cyclical in nature. Inasmuch
as a major portion of Micro's activities is the receipt of revenues from the sale of its products, Micro's business operations may be adversely affected by its competitors
and prolonged recessionary periods.
Micro is entering a phase of conversion from a development stage corporation to an operational corporation. Agreements have been reached to provide key personnel
in the areas of marketing and sales. An agreement has been reached with three large distributors to include the west coast, mid west and New England. Preliminary
market research was conducted to arrive at the flavorings for the Micro Spray product line. Micro sent a representative to the National Association of Chain Drug
Stores (NACDS) trade convention in Philadelphia, PA also the packaging show in Chicago Ill. The Corporation plans to use a target marketing approach for the
distribution of its Micro Spray product line.
Capital and Source of Liquidity. Micro currently has no material commitments for capital expenditures.
For the three months ended March 31, 2001 and 2000, Micro did not pursue any investing activities.
For the three months ended March 31, 2001, Micro had amounts due to related parties of $8,171 resulting in net cash provided by financing activities of $8,171.
For the three months ended March 31, 2000, Micro did not pursue any financing activities.
On a long term basis, liquidity is dependent on commencement of operations as discussed above, receipt of revenues, additional infusions of capital and debt financing.
Micro believes that additional capital and debt financing in the short term will allow Micro to increase its marketing and sales efforts and become a fully operational
corporation thereafter resulting in increased revenue and greater liquidity in the long term. However, there can be no assurance that Micro will be able to obtain
additional equity or debt financing in the future, if at all.
Results of Operations.
Micro is accurately classified as a development stage corporation and as such has conducted startup and development operations that include: - completed photo
shoots, created corporation logos, brochures, sales literature, product labels and packaging design, UPCs - prepared the product line of six items for distribution roll
out - completed negotiations with three large distributors to include west coast, mid west, and New England to represent and sell the companies product lines to national
chains.
Micro has not received any material revenues since inception.
For the three months ended March 31, 2001, Micro had a net loss of $13,171. Operating expenses for the three months ended March 31, 2001 were $13,171 and
consisted of insurance of $1,265 ,auto expense of $2,139, office expense of $432, postage of $232, printing of $399, rent of $453, service expense of $5,000,
telephone of $2,045, utilities of $1,006 and licenses of $200.
For the three months ended March 31, 2000, Micro had a net loss of $18,025. Operating expenses for the three months ended March 31, 2000 were $18,025 and
consisted of depreciation expense of $1,559, insurance expense of $1,264, auto of $528, bookkeeping service of $2,000, legal and accounting of $10,000, printing of
$686, telephone of $1,663, utilities of $125, and licenses of $200.
Plan of Operation. Micro is in the development stage and has not conducted any significant operations to date or received any material operating revenues. Micro has
experienced problems, delays, expenses and difficulties sometimes encountered by an enterprise in Micro's stage of development, many of which are beyond Micro's
control. These include, but are not limited to, unanticipated problems relating to additional costs and expenses that may exceed current estimates and competition.
Micro is not delinquent in any of its obligations even though Micro has generated limited operating revenues. Micro intends to market its products and services
utilizing cash made available from the private sale of its securities and operations. Micro's management is currently looking for an acquisition candidate and is of the
opinion that the proceeds of the sales of its securities and future revenues will not be sufficient to pay its expenses for the next twelve months. Advances from its
president will be required to continue the minimal operations of Micro. |
