U. S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2003
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____ to _____
Commission File No. 0-25319
TRANSPORTATION LOGISTICS INT'L, INC.
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(Name of Small Business Issuer in its Charter)
Colorado 84-1191355
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(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
incorporation or organization)
136 Freeway Drive East, East Orange, NJ 07018
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(Address of Principal Executive Offices)
Issuer's Telephone Number: (973) 266-7020
Indicate by check mark whether the Registrant (1) has filed all 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 filing requirements for the past 90 days.
Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the Registrant's classes of common stock, as of the
latest practicable date:
September 26, 2003
Common Voting Stock: 41,548,338
Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
PART 1 - FINANCIAL INFORMATION
Transportation Logistics Int'l Inc. and Subsidiaries
Consolidated Condensed Interim Balance Sheet
June 30, 2003
Assets $ 0
Liabilities and Stockholders' Equity
Current Liabilities
Convertible debenture 200,000
Net liabilities of discontinued operations 308,966
---------
Total Current Liabilities 508,966
Loan payable- officer 871,825
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Total Liabilities 1,380,791
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Stockholders' Equity
Common stock, no par value;
50,000,000 shares authorized,
40,631,990 shares issued and
40,396,338 outstanding 3,659,492
Additional paid-in capital - stock options 36,748
Retained earnings (3,582,544)
Less: treasury stock, 235,652 shares at cost (522,537)
Consulting services to be provided (971,950)
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Total Stockholders' Equity (1,380,791)
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Total Liabilities and Stockholders' Equity $ 0
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Transportation Logistics Int'l Inc. and Subsidiaries
Consolidated Condensed Interim Statements of Operations
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
(restated) (restated)
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Revenues $ 0 $ 0 $ 0 $ 0
Operating Expenses 0 0 0 0
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Gross Profit 0 0 0 0
Operating Expenses
Selling, general and administrative 0 0 0 0
Stock issued for consulting
services 61,775 25,920 123,550 50,840
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Total Operating Expenses 61,775 25,920 123,550 50,840
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Loss Before Discontinued Operations (61,775) (25,920) (123,550) (50,840)
Income (Loss) from Discontinued
Operations (281,000) 90,026 (357,046) 177,327
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Net Income (Loss) $(342,775) $ 64,106 $(480,596) $ 126,487
=========================================
Earnings Per Share
Income (loss) from continuing
operations $ (0.01) $ (0.01) $ (0.01) $ (0.01)
Income (loss) from discontinued
operations (0.01) 0.01 (0.01) 0.01
=========================================
Basic and diluted earnings per
share $ (0.01) $ 0.01 $ (0.01) $ 0.01
Weighted Average Number of Common
Shares Outstanding
Basic and Diluted 40,396,338 34,714,761 40,396,338 34,714,761
============================================
Transportation Logistics Int'l Inc. and Subsidiaries
Consolidated Condensed Interim Statements of Cash Flows
Six Months Ended
June 30,
2003 2002
-------------------------
Restated
Cash Provided by (Used in) Operating
Activities
Continued $ 0 $ 0
Discontinued (2,757) (23,667)
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Net Cash Provided by (Used in)
Operating Activities (2,757) (23,667)
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Cash and Equivalents at Beginning of Period 2,757 23,667
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Cash and Equivalents at End of Period $ 0 $ 0
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Transportation Logistics Int'l Inc. and Subsidiaries
Notes to the Consolidated Condensed Interim Financial Statements
BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Item 310 of Regulation S-B.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
DISCONTINUATION OF OPERATIONS
As of June 30, 2003 the Company had discontinued all of its operations.
Historical results have been restated, therefore, to reflect the
discontinuation.
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS
Results of Operations
Effective as of June 30, 2003, the Company terminated the operations of
Xcalibur Xpress, the only operation which had been continuing prior to that
date. The Company is liquidating the assets of Xcalibur Xpress and is using
the proceeds to reduce its debts.
The Company has no business operations at this time. The Company is
negotiating with various entities for one or more acquisitions of operating
companies in the field of transportation and logistics. Any such acquisition,
however, will involve the issuance of a large number of shares of capital
stock.
Liquidity and Capital Resources
The Company has no operating assets and $1,380,791 in net liabilities. The
Company will be unable to satisfy its liabilities unless its creditors agree
to compromise their claims in connection with the Company's acquisition of an
operating business.
ITEM 3. CONTROLS AND PROCEDURES
Michael Margolies, our Chief Executive Officer and Chief Financial Officer,
performed an evaluation of the Company's disclosure controls and procedures
as of June 30, 2003. Based on his evaluation, he concluded that the controls
and procedures in place are sufficient to assure that material information
concerning the Company which could affect the disclosures in the Company's
quarterly and annual reports is made known to him by the other officers and
employees of the Company, and that the communications occur with promptness
sufficient to assure the inclusion of the information in the then-current
report.
There have been no significant changes in the Company's internal controls or
in other factors that could significantly affect those controls subsequent to
the date on which Mr. Margolies performed his evaluation.
PART II - OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K.
Reports on Form 8-K. None
Exhibits:
31 Rule 13a-14(a) Certification
32 Rule 13a-14(b) Certification
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.
TRANSPORTATION LOGISTICS INT'L, INC.
Date: September 26, 2003 By: /s/ Michael Margolies
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Michael Margolies, Chief Executive Officer,
Chief Financial Officer, Chief Accounting
Officer
* * * * *
EXHIBIT 31: Rule 13a-14(a) Certification
I, Michael Margolies, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of Transportation
Logistics Int'l, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the small
business issuer as of, and for, the periods presented in this report;
4. The small business issuer's other certifying officers and I are
responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the small
business issuer and have:
a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the small business issuer,
including its consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this report is being
prepared;
b) Evaluated the effectiveness of the small business issuer's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and
c) Disclosed in this report any change in the small business issuer's
internal controls over financial reporting that occurred during the small
business issuer's most recent fiscal quarter (the small business issuer's
fourth fiscal quarter in the case of an annual report) that has materially
affected, or is reasonably likely to materially affect, the small business
issuer's internal control over financial reporting; and
5. The small business issuer's other certifying officers and I have disclosed,
based on our most recent evaluation of internal controls over financial
reporting, to the small business issuer's auditors and the audit committee
of the small business issuer's board of directors (or persons performing the
equivalent functions):
a) All significant deficiencies and material weaknesses in the design or
operation of internal controls over financial reporting which are reasonably
likely to adversely affect the small business issuer's ability to record,
process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the small business issuer's internal
controls over financial reporting.
Date: September 26, 2003 /s/ Michael Margolies
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Michael Margolies, Chief Executive Officer
* * * * *
EXHIBIT 32: Rule 13a-14(b) Certification
The undersigned officer certifies that this report fully complies with the
requirements of Section 13(a) of the Securities Exchange Act of 1934, and
that the information contained in the report fairly presents, in all material
respects, the financial condition and results of operations of Transportation
Logistics Int'l, Inc.
A signed original of this written statement required by Section 906 has been
provided Transportation Logistics Int'l, Inc. and will be retained by
Transportation Logistics Int'l, Inc. and furnished to the Securities and
Exchange Commission or its staff upon request.
September 26, 2003 /s/ Michael Margolies
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Michael Margolies (Chief executive officer)