SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB/A1
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended May 31, 1996
OR
( ) TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE EXCHANGE ACT
Commission File Number : 0-27380
EchoCath, Inc.
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(Exact Name of Small Business Issuer as specified in its charter)
New Jersey 22-3273101
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(State or Other Jurisdiction of Incorporation or (I.R.S. Employer
Organization) Identification No.)
P.O. Box 7224, Princeton, NJ 08543
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(Address of Principal Executive Offices) (Zip Code)
Issuer's Telephone Number, Including Area Code. . . (609) 987-8400
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Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report
Check whether Issuer (1) has filed all reports required to be filed by Section
13 or 15 (d) of the Exchange Act during the past 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
------- -------
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practical date:
CLASS OF COMMON EQUITY OUTSTANDING AT MAY 31, 1996
Class A Common Stock (No Par Value) 1,610,000
Class B Common Stock (No Par Value) 1,500,000
Transitional Small Business Disclosure Format (check one)
YES NO X
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ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
RESULTS OF OPERATION
____________________
Nine Months Ended May 31, 1995 and 1996
Product Sales : The Company had no product sales revenue for the nine months
ending May 31, 1996 and 1995, but the Company did recognize revenue of $38,449
in third quarter of fiscal 1996 from a phase 1 SBIR grant that the Company
anticipates will generate total revenue of $98,000 by September 30, 1996.
Cost of Sales : The Company determined that it may not have obtained all
necessary vendor documentation on approximately 24% of its inventory. As a
result, $38,881 was charged to operations. Expenses related to SBIR grant were
$38,449. The balance of the cost of sales of $5,138 was inventory that was
classified as demonstration inventory during the quarter.
Research and Development : R & D expenses increased 26% during the nine months
because of the establishment of the Medical Advisors Board, the addition of new
personnel in the third quarter, additional materials purchased as a result of
post Initial Public Offering increase in activity, and building operating costs
were higher as a result of the severe winter. R & D expense also included the
repurchase of certain technology rights for $575,000 that is recorded in a
separate line in the Statement of Operations as of May 31, 1996 without a
comparable expense for May 31, 1995.
Selling, General and Administrative Expenses : S, G & A expenses increased 73%
during the nine months because of a significant increase in legal expense
relating to various corporate matters, the addition of the Co-Chairman of the
Board of Directors, and an increase in insurance expense because of the addition
of Directors and Officers Insurance Coverage.
LIQUIDITY AND CAPITAL RESOURCES
_______________________________
As a result of its initial public offering, the company had cash and cash
equivalents of $3,014,122 as of May 31, 1996. The Company believes that its
existing capital resources will enable it to maintain its current and planned
operation for at least 12 months from the date of this report.
PART II: OTHER INFORMATION
_________________
Item 6: Exhibits and Reports on Form 8-K
________________________________
A) Exhibits
Exhibit 27 - Financial Data Schedule
B) Reports:
There were no reports on form 8-K filed during the quarter
ended May 31, 1996.
<PAGE>
SIGNATURES
__________
Pursuant to the requirements of the Exchange Act, the registrant caused this
Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: September 3, 1996
EchoCath, Inc.
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(Registrant)
By: /s/ Frank DeBernardis
_________________________
Frank DeBernardis
President, Chief Executive Officer,
Principal Financial and Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information
extracted from the Company's Balance Sheet at May 31, 1996
and Nine Months income statements ending May 31, 1996
and is qualified in its entirely by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-END> MAY-30-1996
<PERIOD-TYPE> 9-MOS
<EXCHANGE-RATE> 1
<CASH> 3,014,122
<SECURITIES> 0
<RECEIVABLES> 124,015
<ALLOWANCES> 0
<INVENTORY> 118,681
<CURRENT-ASSETS> 3,369,436
<PP&E> 400,006
<DEPRECIATION> 213,304
<TOTAL-ASSETS> 3,824,231
<CURRENT-LIABILITIES> 404,042
<BONDS> 0
0
0
<COMMON> 9,566,012
<OTHER-SE> (7,563,414)
<TOTAL-LIABILITY-AND-EQUITY> 3,824,231
<SALES> 38,449
<TOTAL-REVENUES> 38,449
<CGS> 80,468
<TOTAL-COSTS> 80,468
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 16,090
<INCOME-PRETAX> (2,288,096)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,288,096)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,288,096)
<EPS-PRIMARY> (1.83)
<EPS-DILUTED> (1.83)
</TABLE>
