The following discussion and analysis of the Company's financial condition and
results of operations should be read in conjunction with its unaudited interim
condensed consolidated financial statements and related notes included in this
Quarterly Report on Form 10-Q and the audited financial statements and notes
thereto as of and for the fiscal year ended
FORWARD-LOOKING STATEMENTS
The discussion contained herein contains "forward-looking statements" that involve risk and uncertainties. These statements may be identified by the use of terminology such as "believes," "expects," "may," "should" or anticipates" or expressing this terminology negatively or similar expressions or by discussions of strategy. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward-looking statements wherever they appear in this Form 10-Q. The Company's actual results could differ materially from those discussed in this report.
BUSINESS AND PLAN OF OPERATION
· Chemicals to protect surfaces in asphalt handling equipment · Chemicals to control the reproduction of pests · Military Chemical, Biological, Radiological, Nuclear, and Explosives (CBRNE) sites · Commercial nuclear power plants and nuclear-powered ships · Hazardous toxic industrial chemical and toxic industrial material clean-up
The Company's corporate telephone number is 972-214-9764. The Company's stock symbol is LXAM.
LAC has three (3) wholly owned subsidiaries (collectively with LAC, the
"Company"):
The Company's products utilize all-natural and renewable resources, contain no dangerous chemicals or additives, and offer "green" solutions to its customers. ICS' product line includes asphalt release agents, industrial cleaners, environmental remediation gels, odor control agents, and consumer friendly cleaners for a wide range of uses, including construction, environmental remediation, hazardous materials clean-up, nuclear decommissioning, industrial cleaning, and odor control. SPE's products are designed for the elimination and control of pests.
LIQUIDITY AND CAPITAL RESOURCES
During the three-month period ended
18
As of
The company has made additional acquisitions of products and assets. Since that acquisition has judicially added assets, which combined, provide the basic application equipment and rolling stock to support revenues significantly larger than the revenues produced in May, June, and July of the previous year. In the current quarter, those combined assets produced revenues which are forty-six [46] percent higher than the previous quarter. In June of 2021 the company's ability to increase its revenue has been enhanced by the addition of a Corporate President who has a broad network within the industries that the company serves; therefore, it is the opinion of management that the rate of growth in revenues and margins from the asset base will be sustained.
The increase in total assets was primarily due to the increase in its account receivable and inventory as a result of slower customer pay times due to cash flow issues industry wide as a result of COVID-19 and a buildup of inventory to accommodate the increase in sales.
As of
As
RESULTS OF OPERATIONS
Comparison of the three-month period ended
Revenues
For the three-month period ended
Cost of Goods Sold decreased as a percentage of revenues due to a change in the mix of products sold during the period and increases in the gross selling prices on all the products offered by the company. The increase in selling prices ranged from thirty-five [35] percent to one hundred [100] percent.
Operating Expenses
For the three-month period ended
The decrease is primarily due to 1) Less travel cost due to more efficient use of mobile assets; 2) Shifting the cost burden of delivery to the customer; 3) Improved cost accounting processes; 4) Improved purchasing processes by sourcing raw materials from multiple vendors and buying in larger quantities.
19 GOING CONCERN
The accompanying consolidated financial statements are presented on a going
concern basis. The Company's financial condition raises substantial doubt about
the Company's ability to continue as a going concern. The Company has limited
cash, its current liabilities exceed its current assets as of
OFF-BALANCE SHEET ARRANGEMENTS
There are no off-balance sheet transactions, arrangements, obligations (including contingent obligations), or other relationships with unconsolidated entities or other persons that have, or may have, a material effect on financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources of the Company.
© Edgar Online, source