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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
(Mark One)
/ / QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996.
/ / TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE TRANSITION PERIOD FROM ___________ TO __________.
For the transition period from ____________ to _______________
COMMISSION FILE NUMBER 0-2686
QUADRATECH, INC.
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(Exact name of registrant as specified in its charter)
NEVADA 95-4396848
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(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
10804 SOUTH LA CIENEGA BLVD., INGLEWOOD, CA 90306
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 310-649-0780
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N/A
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(Former name, former address and former fiscal year, if changed since
last report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 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 / / No /X/
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: At September 30, 1996, there were
outstanding 13,557,322 shares of the Registrant's Common Stock, $.001 par value.
Transitional Small Business Disclosure Format: Yes / / No /X/
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PART I: FINANCIAL INFORMATION
INDEX
<TABLE>
<CAPTION>
Page Number
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<S> <C>
ITEM 1: Financial Statements
Consolidated Balance Sheet as of September 30, 1996 (Unaudited) . . . . 2
Consolidated Statements of Operations for the nine months
ended September 30, 1996 and 1995 (Unaudited) . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements (Unaudited) . . . . . . . . . 5
ITEM 2: Management's Discussion and Analysis or
Plan of Operation . . . . . . . . . . . . . . . . . . . . . . . 6
PART II: OTHER INFORMATION
ITEM 6: Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . . 6
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
</TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
1
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QUADRATECH, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30, 1996 SEPTEMBER 30, 1995
<S> <C> <C> <C>
ASSETS
- ------
CURRENT ASSETS
Cash in Savings $ 8,713 67,050
Trade Receivables 42,314
Less: Allowance for Doubtful 25,611
-------- 16,703 63,784
Other Loans 26,259 17,400
Inventory 41,870 25,235
Prepaid Expenses 5,832
Deferred Income Taxes 10,667
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Furn & Fixture 12,635
Automobile 2,500
Total Current Assets $ 110,044 $188,604
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Plant & Equipment
Plant & Equipment $ 243,649 52,485
Less: Accum Deprec (39,939) (14,264)
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203,710
Other Assets
Patents Marks & Copyrights $ 16,575 22,490
Less: Accum Amortization (586)
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15,989
Deposits 26,087 7,030
Deferred Income Tax 565,062
--------
607,138
Total Assets $920,892 $257,345
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</TABLE>
2
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QUADRATECH INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
SEPTEMBER 30, 1996 SEPTEMBER 30, 1995
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
Bank Overdraft $ 2,036
Accounts Payable 35,978 178,857
Accrued Expenses 147,670 2,745
Deposits 15,229
Loan Payable - Officer/Shareholder 358,262 100,000
559,175
Stockholders Equity
Common stock, $.001 par value
authorized 50,000,000 shares Issued
and outstanding 13,557,322 13,557 11,168
Paid in Capital 1,864,940 864,681
Accumulated deficit (1,516,780) 900,106
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361,717 24,256
Total Liabilities and Stockholders Equity $ 920,892 $257,345
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</TABLE>
See notes to consolidated financial statements.
3
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QUADRATECH, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
NINE MONTHS ENDED: SEPTEMBER 30, 1996
<S> <C>
Revenue $ 111,895
Cost of Sales 58,230
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Gross Profit: 53,665
Selling, General and Administrative Expenses 660,220
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Losses from Operations ($ 606,555)
============
Net Loss Per Share (.04)
Weighted Average Number of Common Shares Outstanding 12,929,253
</TABLE>
See notes to consolidated financial statements.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
THE ACCOMPANYING UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS HAVE BEEN PREPARED
IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR INTERIM
FINANCIAL INFORMATION AND WITH THE INSTRUCTIONS TO FORM 10-QSB AND ITEM 310(b)
OF INITIAL CAP 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.
NOTE B - EARNINGS PER SHARE
THE COMPANY CALCULATES EARNINGS PER SHARE BASED ON THE AVERAGE NUMBER OF SHARES
OUTSTANDING FOR THE PERIOD.
5
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
QUADRATECH, HEADQUARTERED IN INGLEWOOD, CALIFORNIA CONDUCTS OPERATIONS PRIMARILY
THROUGH ITS OSA, INC SUBSIDIARY. THE COMPANY DEVELOPS, PRODUCES AND MARKETS
WASTE TO ENERGY AND OTHER ENVIRONMENTAL AND CONSUMER PRODUCTS. OSA CURRENTLY
MARKETS A RANGE OF PRODUCTS DESIGNED TO ASSIST IN OIL SPILL CLEANUPS, PRODUCTS
THAT ARE FIRE RETARDANT AND ABLE TO ABSORB TOXIC CHEMICALS SUCH AS SULFURIC ACID
AND A LINE OF CONSUMER PRODUCTS INCLUDING FLUSH IT, STABLEMATE, FIRE LOG AND A
COMPOST ADDITIVE DESIGNED TO INCREASE THE WATER RETENTION OF COMMERCIALLY
AVAILABLE COMPOST.
TOTAL REVENUES FOR THE THIRD QUARTER $111,895 INCREASED FROM THIRD QUARTER OF
1995.
SELLING, GENERAL AND ADMINISTRATIVE COSTS ALSO ROSE FROM ____________ TO
$660,220 DUE TO A REORGANIZATION OF THE SALES AND MARKETING DIVISIONS AND
NETWORKS AND INCREASED MARKETING COSTS.
LIQUIDITY AND CAPITAL RESOURCES -
THE LIQUIDITY OF THE COMPANY AND ITS AVAILABLE CAPITAL RESOURCES HAVE DECREASED
DUE TO THE ACQUISITION OF PRODUCTION EQUIPMENT AND INCREASED SG&A. THE DECREASE
WAS PARTIALLY OFFSET BY RECOGNITION OF A DEPOSIT FROM THE SANWA WAREHOUSE GROUP
AND THE SALE OR ISSUANCE OF STOCK FOR CASH OR IN CANCELLATION OF INDEBTEDNESS.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS: NONE
(B) REPORTS ON FORM 8-K: NONE
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QUADRATECH, INC.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.
QUADRATECH, INC.
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(Registrant)
Date: December 5, 1996 /s/ MARIA COMFORT
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Maria Comfort, Chief Executive Officer
Date: December 5, 1996 /s/ WILLIAM SNYDER
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William Snyder, Treasurer
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<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AND STATEMENT OF OPERATIONS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH 3RD QUARTER 10Q-SB.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 67,082
<SECURITIES> 0
<RECEIVABLES> 42,314
<ALLOWANCES> 25,611
<INVENTORY> 26,259
<CURRENT-ASSETS> 110,044
<PP&E> 850,787
<DEPRECIATION> 39,939
<TOTAL-ASSETS> 920,892
<CURRENT-LIABILITIES> 559,175
<BONDS> 0
0
0
<COMMON> 1,864,940
<OTHER-SE> (1,503,223)
<TOTAL-LIABILITY-AND-EQUITY> 920,892
<SALES> 111,895
<TOTAL-REVENUES> 111,895
<CGS> 58,230
<TOTAL-COSTS> 58,230
<OTHER-EXPENSES> 660,220
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (606,555)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> (.04)
</TABLE>
