ORALABS HOLDING CORP AND SUBSIDIARIES
Table of Contents
-----------------
Part I. Financial Information
Item 1. Financial Statement Page
----
Consolidated Balance Sheets as of September 30,1999 (Unaudited)
And December 31, 1998...............................................2
Consolidated Statements of Operations Three and Nine Months
Ended September 30,1999 and 1998 (Unaudited)........................3
Consolidated Statement of Stockholders' Equity from
December 31, 1998 Through September 30,1999 (Unaudited).............4
Consolidated Statements of Cash Flows, Nine Months Ended
September 30,1999 and September 30,1998 (Unaudited).................5
Notes to Consolidated Financial Statements.......................6 - 9
Item 2. Management's Discussion and analysis of Financial Conditions
And Results of Operations....................................10 - 12
Part II. Other Information .................................................13
Exhibit Index.......................................................14
<PAGE>
<TABLE>
<CAPTION>
ORALABS HOLDING CORP AND SUBSIDIARIES
Consolidated Balance Sheets
---------------------------
September 30, December 31,
1999 1998
---------- ----------
Unaudited
Assets
Current Assets
<S> <C> <C>
Cash and cash equivalents 693,581 348,979
Accounts receivable, net of allowance for doubtful
accounts of $62,020 and $33,007, respectively 1,416,357 1,125,425
Inventory 2,309,699 1,962,137
Deferred income taxes 58,060 58,060
Prepaid expenses 107,758 125,242
---------- ----------
Total Current Assets 4,585,455 3,619,843
Property and equipment at cost, net 545,471 431,403
---------- ----------
Total Assets 5,130,926 4,051,246
========== ==========
Liabilities and Stockholders' Equity
Current Liabilities
Accounts Payable $ 670,652 $ 858,866
Accrued liabilities 253,090 197,190
Income taxes payable 252,160 106,294
---------- ----------
Total current liabilities 1,175,902 1,162,350
Deferred tax liability 17,941 17,941
---------- ----------
Total liabitilities 1,193,843 1,180,291
---------- ----------
Commitments and contingencies
Stockholders' equity
Preferred stock, $.001 par value, 1,000,000 shares authorized; none
issued and outstanding
Common stock, $.001 par value; 100,000,000 shares authorized, 9,160,755
and 9,142,419 issued and outstanding, respectively 9,160 9,142
Additional paid-in capital 1,216,905 1,179,309
Retained Earnings 2,711,018 1,682,504
---------- ----------
Total stockholders' equity 3,937,083 2,870,955
---------- ----------
Total liabilities and stockholders' equity $5,130,926 $4,051,246
========== ==========
See Notes to Consolidated Financial Statements
2
</TABLE>
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<TABLE>
<CAPTION>
ORALABS HOLDING CORP AND SUBSIDIARIES
Consolidated Statements of Operations
Three and Nine Months ended September 30, 1999 and September 30, 1998
Unaudited
Three Months Ended Nine Months Ended
------------------------ -----------------------
9/30/99 09/30/98 9/30/99 09/30/98
---------- ---------- ---------- ----------
Revenues:
<S> <C> <C> <C> <C>
Product sales 2,768,488 $1,479,401 $6,683,884 $4,849,692
Service income from related party 0 269,850 112,486 486,521
---------- ---------- ---------- ----------
Total Revenues 2,768,488 1,749,251 6,796,370 5,336,213
---------- ---------- ---------- ----------
Cost of Sales 1,526,937 893,995 3,728,022 2,704,965
---------- ---------- ---------- ----------
Gross Profit 1,241,551 855,256 3,068,348 2,631,248
---------- ---------- ---------- ----------
Operating Expenses:
Engineering 35,153 35,209 136,407 114,981
Selling and marketing costs 249,691 196,185 789,980 659,630
General and administrative 222,330 276,070 801,460 788,238
Other (9,738) 23,498 53,191 37,515
---------- ---------- ---------- ----------
Total operating expenses 497,436 530,962 1,781,038 1,600,364
---------- ---------- ---------- ----------
Net Operating Income 744,115 324,294 1,287,310 1,030,884
Other Income (expense)
Interest and other income 320,485 12,660 329,106 36,438
---------- ---------- ---------- ----------
Total other income (expense) 320,485 12,660 329,106 36,438
---------- ---------- ---------- ----------
Net income before provision for income taxes 1,064,600 336,954 1,616,416 1,067,322
Provision for income taxes
Current 397,096 114,564 567,297 362,918
Deferred 20,605
---------- ---------- ---------- ----------
397,096 114,564 587,902 362,918
---------- ---------- ---------- ----------
Net Income 667,504 222,390 1,028,514 704,404
========== ========== ========== ==========
Basic income per common share $ .07 $ .02 $ .11 $ .08
========== ========== ========== ==========
Weighted average shares outstanding 9,160,755 9,129,921 9,157,348 9,123,555
========== ========== ========== ==========
Diluted income per share $ .07 $ .02 $ .11 $ .07
========== ========== ========== ==========
Diluted weighted average shares outstanding 9,357,680 9,460,112 9,354,273 9,460,112
========== ========== ========== ==========
See Notes to Consolidated Financial Statements
3
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<TABLE>
<CAPTION>
ORALABS HOLDING CORP AND SUBSIDIARIES
Consolidated Statement of Stockholders' Equity
For the nine months ended September 30, 1999
Unaudited
Preferred Stock Common Stock Addl Paid-In Retained
Shares Amount Shares Amount Capital Earnings Total
------ ------ ------ ------ ------- -------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at Dec. 31, 1998 9,142,419 $ 9,142 $1,179,309 $1,682,504 $2,870,955
Common stock options exercised 10,000 10 9,990 10,000
Common stock issued for services 8,336 8 27,606 27,614
Net Income 1,028,514 1,028,514
---------- ---------- ---------- ---------- ---------- ---------- ----------
Balance at September 30, 1999 9,160,755 $ 9,160 $1,216,905 $2,711,018 $3,937,083
========== ========== ========== ========== ========== ========== ==========
See Notes to Consolidated Financial Statements
4
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<CAPTION>
ORALABS HOLDING CORP AND SUBSIDIARIES
Consolidated Statements of Cash Flow
For the nine months ended September 30, 1999 and 1998
Unaudited
Nine Months Ended September 30
------------------------------
1999 1998
----------- -----------
Cash flows from operating activities
- ------------------------------------
<S> <C> <C>
Net Income $ 1,028,514 $ 704,404
----------- -----------
Adjustments to reconcile net income to net cash
provided by (used in) operating activities
Depreciation 90,596 49,897
Stock issued for services 27,614 11,456
Changes in assets and liabilities:
Accounts Payable (188,214) (89,378)
Accrued expenses 55,900 --
Accounts Receivable (290,932) (75,561)
Inventory (347,562) (1,146,145)
Income taxes payable 145,866 --
Other current assets 17,484 14,307
----------- -----------
Net cash (used in) provided by operating activities 539,266 (531,022)
----------- -----------
Cash from investing activities
Investment in property and equipment (204,664) (231,533)
----------- -----------
Net Cash (used in) investing activities (204,664) (231,533)
----------- -----------
Cash flows from financing activities
Stock issued and additional paid-in capital 10,000 2,200
----------- -----------
Net cash (used in) provided by financing activities 10,000 2,200
----------- -----------
Net Increase (decrease) in cash and cash equivalents 344,602 (760,355)
Cash and cash equivalents, beginning of the period 348,979 1,023,598
----------- -----------
Cash and cash equivalents, end of the period $ 693,581 $ 263,243
=========== ===========
Supplemental disclosures or cash:
Income taxes paid $ 183,300 $ 479,411
See Notes to Consolidated Financial Statements
5
</TABLE>
<PAGE>
ORALABS HOLDING CORP AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Note 1 - Organization and Summary of Significant Accounting Policies
- --------------------------------------------------------------------
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. This report should, therefore, be read in
conjunction with the Annual Report on Form 10-KSB for the year ended December
31, 1998 (the "1998 Form 10-KSB") of Oralabs Holding Corp. and Subsidiaries (the
"Company").
The information included in this report is unaudited but reflects all
adjustments which, in the opinion of management, are necessary to a fair
statement of the results of the interim periods covered thereby. All adjustments
are of a normal and recurring nature except as described herein.
Recently Issued Accounting Pronouncements
In June 1997, the FASB issued Statement of Financial Accounting Standards No.
130, "Reporting Comprehensive Income" (SFAS 130), which establishes standards
for reporting and display of comprehensive income, its components and
accumulated balances. Comprehensive income is defined to include all changes in
equity except those resulting from investments by owners and distributions to
owners. Among other disclosures, SFAS 130 requires that all items that are
required to be recognized under current accounting standards as components of
comprehensive income, be reported in a financial statement that is displayed
with the same prominence as other financial statements.
Also, in June 1997, the FASB issued Statement of Financial Accounting Standards
No. 131, "Disclosures about Segments of an Enterprise and Related Information"
(SFAS 131), which supersedes Statement of Financial Accounting Standards No. 14,
"Financial Reporting for Segments of a Business Enterprise." SFAS 131
establishes standards for the way that public companies report information about
operating segments in annual financial statements and requires reporting of
selected information about operating segments in interim financial statements
issued to the public. It also establishes standards for disclosures regarding
products and services, geographic areas and major customers. SFAS 131 defines
operating segments as components of a company about which separate financial
information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing
performance. Currently, the Company only has a single business segment.
SFAS No.'s 130 and 131 are effective for financial statements for periods
beginning after December 15, 1997, and require comparative information for
earlier periods to be restated.
In February of 1998, the FASB issued Statement of Financial Accounting Standards
No. 132, "Employers' Disclosures about Pensions and Other Post retirement
Benefits" (SFAS No. 132), which supercedes SFAS No.'s 87, 88, and 106. SFAS No.
132 addresses disclosure only and is effective for fiscal years beginning after
December 15, 1997. Restatement of disclosures for prior periods is required. The
adoption of SFAS No. 132 will have no current impact on the Company's financial
statements, as no prior disclosures under SFAS No. 87, 88, or 106 were
applicable.
In June of 1998, the FASB issued Statement of Financial Accounting Standards No.
133, "Accounting for Derivative Instruments and Hedging Activities" (SFAS No.
133). SFAS No. 133 addresses the accounting for derivative instruments,
including certain derivative instruments embedded in other contracts, and
hedging activities. SFAS No. 133 is effective for all fiscal quarters of all
fiscal years beginning after June 15,1999. Initial application of SFAS No. 133
shall be as of the beginning of an entity's fiscal quarter, on that date,
hedging relationships shall be designated anew and documented under the
provisions of this statement. The adoption of SFAS No. 133 shall not be
retroactively applied. This statement currently has no impact on the financial
statements of the Company, as the Company does not hold any derivative
instruments or participate in any hedging activities.
6
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ORALABS HOLDING CORP AND SUBSIDIARIES
Note 2 - Property and Equipment
- -------------------------------
Property and equipment consisted of the following:
Machinery and equipment:
- ------------------------
September 30,1999
-----------------
Machinery and equipment $ 758,069
Leasehold Improvements 137,533
---------
895,602
---------
Less accumulated depreciation (350,131)
---------
$ 545,471
=========
Note 3 - Line-of-Credit
- -----------------------
The Company has a line-of-credit agreement with a bank in the amount of
$750,000, which expires May 2000.
Note 4 - Reserve for Returns and Allowances
- -------------------------------------------
The company reserves 2% of revenues for returns and allowances of their product.
The reserve is recorded as a reduction of revenues and as a liability on the
balance sheet. The amount recorded as a liability on the balance sheet at
September 30,1999 and September 30,1998 is $180,589 and $140,010 respectively.
Note 5- Income Per Share Information
- ------------------------------------
The following is a reconciliation of the numerators and denominators of the
basic and diluted earnings per share (EPS) computations:
<TABLE>
<CAPTION>
For the Quarter Ended September 30, 1999
- ----------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amt
----------- ------------- ---
<S> <C> <C> <C>
Net Income $ 667,504
Basic EPS
Weighted average beginning shares outstanding 9,160,755
Weighted average options shares issued
Weighted average shares issued for services
---------- ----------
Income available to stockholders $ 667,504 9,160,755 $ .07
=======
Effect of Dilutive Common Stock Options 196,925
Diluted EPS
Income available to common stockholders plus assumed ---------- ---------- -------
Plus assumed conversion computations $ 667,504 9,357,680 $ .07
========== ========== =======
7
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<CAPTION>
ORALABS HOLDING CORP AND SUBSIDIARIES
For the Nine Months Ended September 30, 1999
- --------------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amt
----------- ------------- ---
<S> <C> <C> <C>
Net Income $1,028,514
Basic EPS
Weighted average beginning shares outstanding 9,142,419
Weighted average options shares issued 7,119
Weighted average shares issued for services 7,810
---------- ----------
Income available to stockholders $1,028,514 9,157,348 $ .11
=======
Effect of Dilutive Common Stock Options 196,925
Diluted EPS
Income available to common stockholders plus assumed ---------- ---------- -------
Plus assumed conversion computations $1,028,514 9,354,273 $ .11
========== ========== =======
</TABLE>
<TABLE>
<CAPTION>
For the Quarter Ended September 30, 1998
- ----------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amt
----------- ------------- ---
<S> <C> <C> <C>
Net Income $ 222,390
Basic EPS
Weighted average beginning shares outstanding 9,129,921
Weighted average options shares issued
Weighted average shares issued for services
---------- ----------
Income available to stockholders $ 222,390 9,129,921 $ .02
=======
Effect of Dilutive Common Stock Options 330,191
Diluted EPS
Income available to common stockholders plus assumed ---------- ---------- -------
Plus assumed conversion computations $ 222,390 9,460,112 $ .02
========== ========== =======
8
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<CAPTION>
ORALABS HOLDING CORP AND SUBSIDIARIES
For the Nine Months September 30, 1998
- --------------------------------------
Income Shares Per Share
(Numerator) (Denominator) Amt
----------- ------------- ---
<S> <C> <C> <C>
Net Income $ 704,404
Basic EPS
Weighted average beginning shares outstanding 9,129,921
Weighted average options shares issued
Weighted average shares issued for services
---------- ----------
Income available to stockholders $ 704,404 9,129,921 $ .08
=======
Effect of Dilutive Common Stock Options 330,191
Diluted EPS
Income available to common stockholders plus assumed ---------- ---------- -------
Plus assumed conversion computations $ 704,404 9,460,112 $ .07
========== ========== =======
9
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<PAGE>
ORALABS HOLDING CORP AND SUBSIDIARIES
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Special Note on Forward-Looking Statements
- ------------------------------------------
Section 21E of the Securities Exchange Act of 1934, as amended, and Section
27A of the Securities Act of 1933, as amended, provide a safe harbor for certain
forward-looking statements. This quarterly report contains statements that are
forward-looking. Forward looking statements include those which are not
historical facts, including without limitation statements about management's
expectations for any period beyond the fiscal quarter ended September 30, 1999.
Words such as "expect", "anticipat", "believe", "intend" and "estimate" and
similar expressions are examples of words which identify forward looking
statements. While these statements reflect the Company's beliefs as of the date
of this report, they are subject to assumptions, uncertainties and risks that
could cause actual results to differ materially and adversely from the results
contemplated, forecast or estimated in the forward-looking statements included
in this report. These factors include, but are not necessarily limited to, the
impact of competitive products, the acceptance of new products or product lines
in the marketplace, the Company's ability to manage growth, the availability of
an adequate workforce and changes in market conditions.
Results of Operations. For the three month period ending September 30,1999 as
compared with the three month period ending September 30,1998.
- --------------------------------------------------------------
Product sales increased $1,289,087 or 87%. The increase was substantially due to
continued growth in lip balm sales.
Service income from Related Party decreased $269,850. The agreement for Service
income was terminated as of July 1, 1999.
Gross profit increased by $386,295, primarily as a result of overall growth from
the increased Sales. Gross Profit as a percentage of Product Sales decreased
from 58% to 45%, due in large part to increased promotional costs of
approximately $195,000, which was used primarily to gain new business.
Engineering had no material change for this period.
Selling and marketing increased $53,506. The increase was from a combination of
increased Salaries and Commissions of approximately $90,000 and increased
Selling Office expenses of approximately $18,000, which was offset by reduced
Advertising of approximately $27,000 and reduced Consulting of approximately
$27,500.
General and administrative decreased $53,740 substantially from a decrease in
professional fees. Some professional fees were reallocated to the cost
associated with the company's transaction as outlined in Other Income.
Other Operating Expenses had no material change for this period.
Other Income increased $307,825. This was substantially due to a transaction in
which the Company received a one-time cash payment and a small minority interest
in a company that acquired ownership of Pecos Pharmaceuticals, a vendor of
nutritional supplements.
Net income increased $445,114, or 200% as outlined above.
Results of Operations. For the nine month period ending September 30,1999 as
compared with the nine month period ending September 30,1998.
- -------------------------------------------------------------
Product sales increased $1,834,192 or 38%. The increase was substantially due to
continued growth in lip balm sales.
Service income from Related Party decreased $374,035. The agreement for Service
income was terminated as of July 1, 1999.
10
<PAGE>
ORALABS HOLDING CORP AND SUBSIDIARIES
Gross profit increased by $437,100 and as a percentage of Product Sales
decreased from 54% to 46%. As was the case for the previously discussed three
month period the overall growth was from the increased Sales. The decrease as a
percentage of Product Sales was due in part to an increased promotional cost of
approximately $371,000 (10.2% as compared to 6.4%), used primarily to gain new
business. Additionally, the discontinuation of the Company's sore throat spray
line during the second quarter of 1999 with the consequential disposal of
obsolete inventory in the amount of approximately $134,000 further impacted
Gross Profit.
Engineering had no material change for this period.
Selling and marketing increased $130,350. The increase was primarily from a
combination of increased Salaries and Commissions of approximately $160,000,
which was offset by reduced Consulting of approximately $37,000.
General and administrative had no material change for this period.
Other Operating Expenses had no material change for this period.
Other Income increased $292,668. This was substantially due to a transaction in
which the Company received a one-time cash payment and a small minority interest
in a company that acquired ownership of Pecos Pharmaceuticals, a vendor of
nutritional supplements.
Net income increased $324,110, or 46% as outlined above.
Liquidity and Capital Resources. Balance Sheet as of September 30,1999 Compared
to December 31, 1998.
- ---------------------
Cash increased $344,602. Net income of $1,028,514 for the first nine months of
1999 as compared to Net Income of $818,559 for the twelve-month period of 1998
increased by $209,955. The increase in Net Income in combination with the
operating and property and equipment investment activities discussed below give
further explanation as to the increase in cash of $344,602 as outlined in the
Consolidated Statements of Cash Flow.
Accounts Receivable increased $290,932. The increase was substantially due to
increased sales, particularly in September, which was primarily reflected in
current receivables (1 to 30 days).
Inventory increased $347,562. As stated in the June 30, 1999 Form 10-QSB. "The
increase is primarily due to volume purchases of raw materials at reduced
prices, which will enable the Company to maintain higher stock levels for open
and projected orders from Wal-Mart and Kmart in the lip balm category and for
nutritional supplement customers."
The nutritional supplement inventory remains high relative to sales dollars. The
primary reason is that one item (5HTP) was purchased in large quantities in
anticipation of increased demand which did not occur. The company continues to
actively negotiate for the sale of this inventory. The value of our current 5HTP
inventory is approximately $593,000. The market demand for 5HTP is moderate to
low. Our inventory levels are too high for the current sales rate. This has
decreased our cash flow and affected liquidity. We hope to have this inventory
converted to cash during the fourth quarter, or we will expect a write down.
Property and Equipment increased by $114,068. The increase is for additional
labeling and filling capacity to support our continued growth in the lip balm
category.
Accounts payable decreased $188,214. The decrease is substantially due to
decreased Trade payables.
Income taxes payable increased $145,866. This is the result of higher revenues
in the last month of the quarter. Accordingly, income taxes payable were accrued
but not paid.
Retained Earnings increased $1,028,514. This increase is as a result of net
income year to date.
11
<PAGE>
ORALABS HOLDING CORP AND SUBSIDIARIES
Trends
- ------
Lip Balm continued to grow at an accelerated pace during the 3rd quarter of 1999
and was up 113% year to date as compared to the same time period last year. The
company expects additional growth to continue throughout the fourth quarter of
1999, with comparable results for this product category to the 3rd quarter of
1999. We have expanded our capacity in lip balm production and are planning
additional increased capacity to keep up with demand. The success of our Lip
Rageous brand of flavored and colored lip balm appears to still have more upside
as we add more retailers and as we experience excellent sell through at the
retail level. Last quarter we projected that lip balm would become 50% of our
business by the end of the year and that has already happened. We expect lip
balm to become an even larger part of our product mix.
Breath Fresheners have slowed although we are seeing and expect to see some
growth in the near future. Breath Fresheners revenue was down by 13% year to
date as compared to the same time period last year.
Sour Drops are expected to grow at a slightly higher pace through the rest of
the year and the foreseeable future. Sour drop revenue was up one-half percent
(1/2%) year to date as compared to the same time period last year. Projected
increases are due to an expanded customer base.
Nutritional Supplements continues to be an area of great potential for the
Company. Our strategy of niche products sales has resulted in sales slower than
we would like but we believe it is still a sound direction. Revenue was up 113%
year to date as compared to the same time period last year. Our relationships
and contacts at the retail level should allow for continued growth.
Classes of Trade. From a distribution standpoint our highest sales for the first
six months of 1999 were Domestic Convenience Stores at 23%; International at
19%; Mass Discount-Variety Chains at 10%; Dollar Stores at 10%; and Beauty
Supply Stores at 8%;. We anticipate continued growth as a percentage to occur in
the Mass Discount-Variety Chains with Wal-Mart and Kmart leading the way. Drug
Stores, currently at 6%, could climb into the top five categories with increased
presence from Rite Aid and Walgreens paving the way.
Impact of Inflation. The Company's financial condition has not been affected by
the modest inflation of the recent past. The Company believes that revenues will
not be materially affected by inflation. The Company's lip care and oral care
products are primarily very low cost, impulse items (under $0.99 cents to
consumers) and the nutritional supplements are a small part of revenues.
Year 2000. Many computer systems were written using two digits rather than four
to define the applicable year. As a result, those computer programs have time
sensitive software that recognizes a date using "00" as the year 1900 rather
than the year 2000. This could cause a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary inability
to process transactions, send invoices, or engage in similar normal business
activities.
The Company utilizes software vendors for its computer program applications. The
installation of a year 2000 compliant version of the Company's financial,
inventory, and production software was completed during the fourth quarter of
1998. The Company has also completed an assessment of its internal personal
computer network, which is year 2000 compliant. Updating telephones, facsimile
machines and labeling equipment for year 2000 was completed during the fourth
quarter of 1998. The voice mail system was recently replaced to become year 2000
compliant.
The Company's cost of becoming year 2000 compliant is not material to the
financial condition of the Company. To date the Company has incurred minor
expenses, primarily for assessment of the year 2000 issue, development of a
modification plan, and the installation of a year 2000 compliant version of its
financial, inventory, and production software.
Our suppliers and customers who could adversely effect our business have been
surveyed for Year 2000 compliance. All of our material business partners have
stated that either they have or will achieve Year 2000 compliance. The Company
has not determined the extent to which the Company may be impacted by third
parties' systems, which may not be year 2000 compliant. Accordingly, the year
2000 computer issue may create risk for the Company from third parties with whom
the Company deals. There can be no assurance that the systems of other companies
with whom the Company deals with will be timely converted, or that any such
failure to convert by another company could not have an adverse effect on the
Company. The Company has determined that back up suppliers are available and the
Company's material customers such as Wal-Mart, Kmart and Rite-Aid are year 2000
compliant. Therefore, no formalized contingency plan is scheduled.
12
<PAGE>
ORALABS HOLDING CORP AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item No. 1. Legal Proceedings. The Company is not a party to any material
pending legal proceedings to which either it or its subsidiary is
a party or of which any of its property is subject except for the
litigation described in Item 1 of Part II of the Company's Form
10-QSB filed for the period ended June 30, 1999.
Item No. 2. Changes in Securities. None.
Item No. 3. Defaults Upon Senior Securities. None.
Item No. 4. Submission of Matters to a Vote of Security Holders. None
Item No. 5. Other Information. None.
Item No. 6. Exhibits and Reports on Form 8-K.
(a)
(27) Financial Data Schedule for 9 months ended September 30, 1999 and amended
financial data schedule for 9 month period ended September 30, 1998 (filed
herewith)
(b) There were no reports on Form 8-K filed during the quarter reported upon in
this report.
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.
ORALABS HOLDING CORP.
By: /s/ Gary Schlatter
----------------------
Gary Schlatter, President
By: /s/ Emile Jordan
--------------------
Emile Jordan, Chief Financial Officer
DATED: November 2, 1999
13
<PAGE>
ORALABS HOLDING CORP AND SUBSIDIARIES
EXHIBIT INDEX
EX- (27) Financial Data Schedule for 9 months ended September 30, 1999 and
amended financial data schedule for 9 month period ended September 30, 1998
(filed herewith )
14
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 9-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1999 DEC-31-1998
<PERIOD-START> JAN-01-1999 JAN-01-1998
<PERIOD-END> SEP-30-1999 SEP-30-1998
<CASH> 693581 263243
<SECURITIES> 0 0
<RECEIVABLES> 2171588 786826
<ALLOWANCES> (62020) (24597)
<INVENTORY> 2309699 1745416
<CURRENT-ASSETS> 5278666 2916260
<PP&E> 895602 616756
<DEPRECIATION> (350131) (220387)
<TOTAL-ASSETS> 5824137 3312629
<CURRENT-LIABILITIES> 1869113 587073
<BONDS> 0 0
0 0
0 0
<COMMON> 9160 9130
<OTHER-SE> 3927923 2716426
<TOTAL-LIABILITY-AND-EQUITY> 5824137 3312629
<SALES> 6683884 4849692
<TOTAL-REVENUES> 6796370 5336213
<CGS> 3728022 2704965
<TOTAL-COSTS> 1781038 1600364
<OTHER-EXPENSES> (312302) 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> (16804) (36438)
<INCOME-PRETAX> 1616416 1067322
<INCOME-TAX> 587902 362918
<INCOME-CONTINUING> 1028514 704404
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1028514 704404
<EPS-BASIC> .11 .08
<EPS-DILUTED> .11 .07
</TABLE>
