<PAGE> 1
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 JUNE 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
- ----------------------------------------------- -----------------
(State or other jurisdiction of incorporation (I.R.S. Employer
or organization) Identification No.)
10804 SOUTH LA CIENEGA BLVD., INGLEWOOD, CA 90306
- ----------------------------------------------- ------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 310-649-0780
-------------------
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 June 30, 1996, there were
outstanding 13,349,012 shares of the Registrant's Common Stock, $.001 par value.
Transitional Small Business Disclosure Format: Yes / / No /X/
<PAGE> 2
PART I: FINANCIAL INFORMATION
INDEX
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C>
ITEM 1: Financial Statements
Consolidated Balance Sheet as of June 30, 1996 (Unaudited) . . . . . . . 2
Consolidated Statements of Operations for the six months
ended June 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
<PAGE> 3
QUADRATECH, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, 1996 JUNE 30, 1995
<S> <C> <C>
ASSETS
- ------
CURRENT ASSETS
Cash in Savings 8,743 111,422
Trade Receivables 37,314 3,114
Less: Allowance for Doubtful 18,827 18,487
---------
Other Loans 13,234 3,000
Inventory 45,598 25,235
Prepaid Expenses 5,832
Deferred Income Taxes 10,667
---------
Security Deposit 4,530
Motor Vehicle 2,500
--------
Total Current Assets $ 102,562 Total June 30, 1995 149,801
--------- --------
Plant & Equipment
Plant & Equipment $ 232,419
Less: Accum Deprec (34,839)
---------
197,580 32,753
Other Assets
Patents Marks & Copyrights $ 16,575
Less: Accum Amortization (486)
----------
16,089 22,490
Deposits 26,087
Deferred Income Taxes 565,062
---------
607,138
Total Assets $ 907,380 $205,044
========= ========
</TABLE>
2
<PAGE> 4
QUADRATECH, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
JUNE 30, 1996 JUNE 30, 1995
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
Bank Overdraft $ 13,925
Accounts Payable 40,089 170,905
Accrued Expenses 167,764 1,575
Deposits 27,500
Loan Payable - Officer/Shareholder 288,262 100,000
Stockholders Equity
Common stock, $.001 par value
authorized 50,000,000 shares issued
and outstanding 13,349,012 13,349 11,168
Paid in Capital 1,684,738 770,283
Accumulated deficit (1,328,247) (848,885)
-----------
Total Liabilities and Stockholders Equity $ 907,380 $ 205,044
========== =========
</TABLE>
See notes to consolidated financial statements.
3
<PAGE> 5
QUADRATECH, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED: JUNE 30, 1996 JUNE 30, 1995
<S> <C> <C>
Revenues $58,498 14,104
Cost of Sales 30,442 41,477
------------ ------------
Gross Profit/Loss 28,056 (27,373)
Selling, General and Administrative Expenses 446,078 270,821
------------ ------------
Losses from Operations (418,022) (298,194)
============ ============
Net Loss Per Share (.04) (.0267)
Weighted Average Number of Common Shares Outstanding 12,929,253 11,168,745
</TABLE>
See notes to consolidated financial statements.
4
<PAGE> 6
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
<PAGE> 7
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATION
THE MANAGEMENT FOCUSED ON REFINING ITS PATENTED TECHNOLOGIES AND DEVELOPING
INITIAL PRODUCT SALES.
COMPANY PRODUCTION CAPACITY WAS IMPROVED TO SUCCESSFULLY AID IN THE
MANUFACTURING AND MARKETING OF THE COMPANY'S OIL ABSORBENT MATERIAL PRODUCTS IN
THE UNITED STATES AND ASIA.
THE COMPANY BEGAN TESTING A REVOLUTIONARY NEW EQUINE BEDDING MATERIAL CALLED
STABLEMATE. STABLEMATE, A NON TOXIC BEDDING MADE FROM RECYCLED PAPER PRODUCTS
COATED WITH PATENTED 4TK DETOXIFYING AGENT, IS PRICED COMPETITIVE WITH CURRENT
BEDDING PRODUCTS AND OFFERS SEVERAL MAJOR ADVANTAGES OVER EXISTING PRODUCTS.
TOTAL REVENUE FOR SECOND QUARTER $58,498 REPRESENTING AN INCREASE OVER
SECOND QUARTER OF 1995.
THE COMPANY'S LOSS OF $419,022 REPRESENTS AN INCREASE COMPARED TO
SECOND QUARTER OF 1995.
SELLING, GENERAL AND ADMINISTRATIVE COSTS ALSO ROSE TO $446,078 AS A
RESULT OF THE CONTINUING COSTS ASSOCIATED WITH THE MOVE, ACQUISITION OF
PRODUCTION AND PRODUCTION EQUIPMENT, DEVELOPING SALES AND MARKETING
PRESENTATIONS AND NETWORKS AND INCREASING MARKETING COST ASSOCIATED WITH THE
SALE OF PRODUCTS TO ITS CUSTOMERS.
LIQUIDITY AND CAPITAL RESOURCES -
THE LIQUIDITY OF THE COMPANY AND ITS AVAILABLE CAPITAL RESOURCES HAVE DECREASED
PRIMARILY DUE TO THE ACQUISITION OF PRODUCTION EQUIPMENT. THE DECREASE WAS
PARTIALLY OFFSET BY THE SALE AND 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
6
<PAGE> 8
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.
---------------------------------
(Registrant)
Date: December 5, 1996 /s/ MARIA COMFORT
---------------------------------
Maria Comfort, Chief Executive Officer
Date: December 5, 1996 /s/ WILLIAM SNYDER
---------------------------------
William Snyder, Treasurer
7
<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 2ND QUARTER 10Q.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 38,476
<SECURITIES> 0
<RECEIVABLES> 37,314
<ALLOWANCES> 18,827
<INVENTORY> 45,599
<CURRENT-ASSETS> 102,562
<PP&E> 839,659
<DEPRECIATION> 34,839
<TOTAL-ASSETS> 907,380
<CURRENT-LIABILITIES> 537,540
<BONDS> 0
0
0
<COMMON> 1,684,738
<OTHER-SE> (1,314,898)
<TOTAL-LIABILITY-AND-EQUITY> 907,380
<SALES> 58,498
<TOTAL-REVENUES> 58,498
<CGS> 30,442
<TOTAL-COSTS> 30,442
<OTHER-EXPENSES> 446,078
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (418,022)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> (.04)
</TABLE>
