United States
Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
[ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from ______________ to ________________
Commission File Number: 0-27067
COMMUNITRONICS OF AMERICA, INC.
(Exact name of small business issuer as
specified in its charter)
Utah 87-0285684
------ ------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
27955 Hwy. 98, Suite WW, Daphne, Alabama 36526
------------------------------------------------
(Address of principal executive offices)
(334) 625-6426
----------------
(Issuer's telephone number)
Not Applicable
----------------
(Former name, former address and former
fiscal year, if changed since last report)
Check whether the issuer: (1) 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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the last practicable date: 7,922,936 shares.
Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]
<PAGE>
COMMUNITRONICS OF AMERICA, INC.
and Subsidiaries
Table of Contents
Consolidated Balance Sheets 3
Consolidated Statements of Operations 4
Consolidated Statements of Cash Flows 5
Consolidated Statements of Stockholders' Equity 6
Part 1
Item 1. Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis or
Plan of Operations 7-13
Part II - Other Information 13
Signature 14
Exhibit 27 15
<PAGE>
COMMUNITRONICS OF AMERICA, INC.
and Subsidiaries
Consolidated Balance Sheets
<TABLE>
<CAPTION>
September 30 December 31
2000 1999
(Unaudited) (Audited)
------------- -------------
<S> <C> <C>
Assets
Current assets
Cash $ 66,532 $ 4,943
Accounts receivable - trade 56,654 71,210
Inventory 31,684 40,502
Due from stockholder 5,574 5,574
------------- -------------
Total current assets 160,444 122,229
Property and equipment, at cost, net of
accumulated depreciation 664,816 748,875
Investment in network 336,305 336,305
Prepaid expenses 303,750 303,750
Deposits 4,054 4,054
------------- -------------
$ 1,469,369 $ 1,515,213
============= =============
Liabilities and Stockholders' Equity
Current liabilities
Current maturities of long-term debt $ 82,549 $ 91,083
Accounts payable - trade 313,714 208,659
Payroll and sales taxes payable 2,290 10,383
Escrow liability 152,000 -
------------- -------------
Total current liabilities 550,553 310,125
Long-term debt, less current maturities 217,657 226,358
Note payable to stockholder 304,104 296,386
------------- -------------
Total liabilities 1,072,314 832,869
------------- -------------
Commitments and contingencies
Stockholders' equity
Common stock, $.01 par value; 50,000,000 shares
authorized, 7,922,936 shares issued and outstanding 79,229 79,229
Additional paid-in capital 1,463,562 1,463,562
Accumulated deficit (1,145,736) (860,447)
------------- -------------
Total stockholders' equity 397,055 682,344
------------- -------------
$ 1,469,369 $ 1,515,213
============= =============
</TABLE>
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<PAGE>
COMMUNITRONICS OF AMERICA, INC.
and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months For the Nine Months
Ended September 30 Ended September 30
2000 1999 2000 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Services, rent and maintenance
revenues $ 136,674 $ 151,387 $ 385,577 $ 569,375
Product sales 12,539 86,199 133,356 302,741
------------- ------------- ------------- -------------
Total revenues 149,213 237,586 518,933 872,116
Less cost of product sales 9,780 136,797 104,017 225,671
------------- ------------- ------------- -------------
Net revenues 139,433 100,789 414,916 646,445
------------- ------------- ------------- -------------
Operating expenses
Services, rent and maintenance 22,997 73,719 157,787 223,392
General and administrative 120,899 50,169 431,579 404,738
Depreciation 28,860 32,169 86,581 76,026
------------- ------------- ------------- -------------
Total operating expenses 172,756 156,057 675,947 704,156
------------- ------------- ------------- -------------
Operating income (loss) (33,323) (55,268) (261,031) (57,711)
------------- ------------- ------------- -------------
Other expenses
Non-recurring charges (note 9) - 89,998 - 132,705
Interest expense 8,366 17,167 24,258 20,646
------------- ------------- ------------- -------------
Total other expenses 8,366 107,165 24,258 153,351
------------- ------------- ------------- -------------
Net loss $ (41,689) $ (162,433) $ (285,289) $ (211,062)
============= ============= ============= =============
Net loss per share (note 10) $ (0.01) $ (0.02) $ (0.03) $ (0.03)
============= ============= ============= =============
</TABLE>
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<PAGE>
COMMUNITRONICS OF AMERICA, INC.
and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
For the Nine Months
Ended September 30
2000 1999
------------- -------------
<S> <C> <C>
Operating activities
Net loss $ (285,289) $ (211,062)
------------- -------------
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation 86,581 76,026
Issuance of common stock for services - 311,250
(Increase) decrease in
Accounts receivable 14,556 13,247
Inventory 8,818 (37,714)
Prepaid expenses - (303,750)
Increase (decrease) in
Bank overdraft - 10,191
Accounts payable 105,055 74,125
Accrued expenses (8,093) (4,554)
Escrow liability 152,000 -
------------- -------------
Total adjustments 258,917 138,821
------------- -------------
Net cash used in operating activities (73,628) (72,241)
------------- -------------
Investing activities
Purchase of property and equipment (2,522) (158,297)
Acquisition liability - (15,000)
Investment in network - (336,305)
Repayments (loans) of stockholder loans - 40,283
------------- -------------
Net cash used in investing activities (2,522) (469,319)
------------- -------------
Financing activities
Proceeds (repayments) from stockholder loans 7,718 259,176
Proceeds from sale of common stock - 15,000
Borrowing of long-term debt - 254,707
Repayments of long-term debt (17,235) (19,188)
------------- -------------
Net cash provided by financing activities 9,517 509,695
------------- -------------
Increase (decrease) in cash 61,589 (31,865)
Cash
Beginning of period 4,943 31,865
------------- -------------
End of period $ 66,532 $ -
============= =============
</TABLE>
-5-
<PAGE>
COMMUNITRONICS OF AMERICA, INC.
and Subsidiaries
Consolidated Statements of Stockholders' Equity
For the Nine Months Ended September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Additional
Common Paid-in Accum. Stockholders'
Stock Capital (Deficit) Equity
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Balance, December 31, 1999 $ 79,229 $ 1,463,562 $ (860,447) $ 682,344
Net loss - - (285,289) (285,289)
------------- ------------- ------------- -------------
Balance, September 30, 2000 $ 79,229 $ 1,463,562 $ (1,145,736) $ 397,055
============= ============= ============= =============
</TABLE>
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<PAGE>
PART I
ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Basis of Presentation:
In the opinion of management, the accompanying financial statements contain
all adjustments (which include only normal recurring adjustments) necessary to
present fairly the balance sheets of Communitronics of America, Inc. and
subsidiaries as of September 30, 2000, and the results of their operations and
their cash flows for the nine months ended September 30, 2000 and 1999,
respectively. The financial statements are consolidated to include the
accounts of Communitronics of America, Inc. and its subsidiary companies
(together "the Company").
The accounting policies followed by the Company are set forth in Note 1 to the
Company's consolidated financial statements as stated in its Form 10-KSB for
the year ended December 31, 1999.
Note 2. Income (Loss) Per Common Share:
Income (loss) per common share is based on the weighted average number of
common shares are outstanding during the period.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.
You should read the following discussion and analysis of financial condition
and results of operations of Communitronics together with the financial
statements and the notes to the financial statements which appear elsewhere in
this quarterly report and Communitronics's Form 10-KSB for the year ended
December 31, 1999.
FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-QSB includes forward-looking statements. We
have based these forward-looking statements on our current expectations and
projections about future events. These forward-looking statements are subject
to risks, uncertainties and assumptions, which include, among other things:
- our need for substantial capital;
- our ability to service debt;
- our history of net operating losses;
- the amortization of our intangible assets;
- our ability to integrate our various acquisitions;
- the risks associated with our ability to implement our business
strategies;
- the impact of competition and technological developments;
- subscriber turnover;
- litigation and regulatory changes;
- dependence on key suppliers; and
- reliance on key personnel.
Other matters set forth in this Quarterly Report on Form 10-QSB may also cause
actual results to differ materially from those described in the
forward-looking statements. We undertake no obligation to update or
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<PAGE>
revise any forward-looking statements, whether as a result of new information,
future events or otherwise. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this Quarterly Report on
Form 10-QSB may not occur.
OVERVIEW
The Company is a provider of wireless message paging and information delivery
services. Wireless message paging is comprised of numeric paging that permits
a pager to register the telephone number of the caller to the customer.
Information delivery systems is comprised of both numeric paging and text
messaging services.
The Company has a network of 14 radio towers (one tower is owned by the
Company and 13 towers are leased) to deliver wireless messaging services in
the coastal regions of Alabama, Louisiana, Mississippi and the Florida
panhandle. The Company owns seven Certificates of Public Convenience and
Necessity issued by the Alabama Public Service Commission and 34 frequencies
licensed by the Federal Communications Commission. These certificates and
licenses allow the Company to provide wireless messaging services in these
geographic areas.
The Company supports its operations from its executive offices in Daphne,
Alabama, and from its operation offices located in Foley, Alabama; Metairie,
Louisiana; Gulfport, Mississippi; and Pascagoula, Mississippi.
The geographic areas served by the Company covers approximately 10,000,000
persons. In its markets, the Company presently serves approximately 3,800
subscribers to its message paging and information delivery services at
September 30, 2000.
The Company derives the majority of its revenues from fixed, periodic (usually
monthly) fees, generally not dependent on usage, charged to subscribers for
paging services. While a subscriber continues to use the Company's services,
operating results benefit from this recurring revenue stream with minimal
requirements for incremental selling expenses or other fixed costs.
RESULTS OF OPERATIONS FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30,
2000
The Company's total revenues have decreased by approximately 37.2% to $149,000
for the three month period ended September 30, 2000 compared to $238,000 for
the three month period ended September 30, 1999. The Company's total revenues
have decreased by approximately 40.5% to $519,000 for the nine month period
ended September 30, 2000 compared to $872,000 for the nine month period ended
September 30, 1999. Overall, subscribers have decreased by approximately 500
or approximately 12% to 3,800 at September 30, 2000 from 4,300 at September
30, 1999. The decrease in the subscriber base was attributable to normal
attrition which was not offset with new pager sales due to a lack of inventory
in 2000 and management's efforts were concentrated on new acquisition
possibilities at that time.
The Company's growth, whether internal or through acquisitions, requires
significant capital investment for paging equipment and technical
infrastructure. During the three and nine month periods ended September 30,
2000, capital expenditures totaled approximately $-0- and $2,500,
respectively. For the nine months ended September 30, 2000, capital
expenditures were funded through cash generated from operations.
For the remainder of 2000 and throughout the year 2001, the Company's business
strategy will be focused on increasing stockholder value by expanding the
subscriber base and increasing revenues, cost efficiencies and operating cash
flow. This focus will include the following:
- Managing capital requirements and increasing free cash flow by:
increasing revenues and cash flows through sales of
value-added advanced messaging and information services
which generate higher average monthly revenue per unit
(ARPU) than standard messaging or paging services; and
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<PAGE>
further increasing the utilization of the southeast network
to serve more customers per frequency and expand presence in
existing markets with minimal capital outlay.
Managing and lowering operating costs through cost containment
initiatives;
Maximizing internal growth potential by continuing to broaden the
Company's distribution network and expanding target markets to
capitalize on the growing appeal of messaging and other wireless
products; and
Completing the integration of the operations of its acquisitions.
The Company may also continue to expand its operations and subscriber base
through additional industry consolidation. While there are no current
outstanding commitments, potential future consolidation opportunities would be
evaluated on several key operating and financial elements including:
geographic presence and FCC regulatory licenses held; overall valuation of
potential target, including subscriber base and potential synergies;
consideration to be given; potential increase to net income and operating cash
flow; and availability of financing and the ability to reduce the combined
companies long-term debt. Such potential transactions may result in
substantial capital requirements for which additional financing may be
required. No assurance can be given that such additional financing would be
available on terms satisfactory to the Company.
RESULTS OF OPERATIONS
The following table sets forth certain operating information regarding the
Company:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
2000 1999 2000 1999
------------- ------------- ------------- -------------
(unaudited) (unaudited)
<S> <C> <C> <C> <C>
Revenues . . . . . . . . . . . . . . . $ 149,213 $ 237,586 $ 518,933 $ 872,116
Cost of goods sold . . . . . . . . . . 32,777 210,516 261,804 449,063
General and administrative expenses. . 120,899 140,167 431,579 537,443
Depreciation . . . . . . . . . . . . . 28,860 32,169 86,581 76,026
Interest . . . . . . . . . . . . . . . 8,366 17,167 24,258 20,646
------------- ------------- ------------- -------------
Net income (loss). . . . . . . . . . . $ (41,689) $ (162,433) $ (285,289) $ (211,062)
============= ============= ============= =============
Net income (loss) per share. . . . . . $ (.01) $ (.02) $ (.03) $ (.03)
</TABLE>
The definitions below will be helpful in understanding the discussion of the
Company's results of operations.
Service, rent and maintenance revenues include primarily monthly,
quarterly, semi-annually and annually billed recurring revenue,
not generally dependent on usage, charged to subscribers for
paging and related services such as voice mail and pager repair
and replacement.
ARPU means average monthly paging revenue per unit. ARPU is
calculated by dividing (a) service, rent and maintenance revenues
for the period by (b) the average number of units in service for
the period.
Net revenues include service, rent and maintenance revenues and
sales of pagers less cost of products sold.
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<PAGE>
Service, rent and maintenance expenses include costs related to
the management, operation and maintenance of the Company's network
systems and customer support centers.
General and administrative expenses include executive management,
accounting, office telephone, repairs and maintenance, management
information systems, salaries and employee benefits.
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED WITH 1999
Total revenues decreased approximately $88,000, or approximately 37.2%, from
$238,000 for the three months ended September 30, 1999 ("1999") to $150,000
for the three months ended September 30, 2000 ("2000"). Net revenues increased
approximately $39,000, or 38.3%, from $101,000 in 1999 to $140,000 in 2000.
The increase in net revenues was primarily the result of a decrease in cost of
product due to operating constraints. The company is trying to get its stock
re-listed on the OTC Bulletin Board and has concentrated all efforts in this
area. Lack of capital due to the de-listing in August 1999. The total number
of subscribers decreased by 500 since September 30, 1999. This decrease was
due to normal attrition which was not offset with new pager sales due to a
lack of inventory in 2000.
Product sales, which consist primarily of sales of paging equipment, decreased
approximately $74,000 or 85.4% from $86,000 in 1999 to $12,000 in 2000. The
cost of product sales decreased approximately $127,000 or 92.9% from $137,000
in 1999 to $10,000 in 2000 due to a lack of pager inventory. Pagers are
classified as inventory when purchased and the cost is included in cost of
product sales when the unit is sold.
Service, rent and maintenance expenses decreased approximately $51,000 from
$74,000 in 1999 to $23,000 in 2000. This decrease was attributable to
decreases in telephone costs and personnel expenses. The Company expects its
service, rent and maintenance expenses to decrease as a percentage of revenues
and per subscriber unit in future periods as it continues to renegotiate
certain of its telecommunications and third party services contracts and
decommissions redundant transmitter and tower sites. The Company expects such
expense savings to be partially offset by an increase in rental costs for
other transmitter and tower sites as the Company enhances its presence in the
Southeastern United States.
General and administrative expenses increased approximately $71,000 from
$50,000 in 1999 to $121,000 in 2000,. The increase in general and
administrative expenses is attributable to an increase in consulting fees and
professional services during the third quarter of 2000.
Depreciation expense decreased approximately $3,000 from $32,000 in 1999 to
$29,000 in 2000. The decrease in depreciation expense resulted primarily from
depreciation expense on subscriber equipment and other capitalized assets
acquired during third quarter of 1999 through financing.
Interest expense decreased approximately $9,000 from $17,000 in 1999 to $8,000
in 2000. Interest expense decreased due to lower average debt balances
outstanding during 2000. Average debt balances were greater in 1999 than in
2000 as a result of debt incurred related to capital expenditures and working
capital requirements.
The Company's net loss decreased approximately $121,000 from $162,000 in 1999
to $41,000 in 2000. The decrease in net loss was primarily the result of the
decrease in services, rent and maintenance expenses and cost of product sales
as discussed above. The Company expects net losses to decrease in future
periods.
EBITDA means earnings before interest, taxes, depreciation and amortization.
While not a measure under generally accepted accounting principles (GAAP),
EBITDA is a standard measure of financial performance in the paging industry.
EBITDA may not be comparable to similarly titled measures reported by other
companies since all companies do not calculate EBITDA in the same manner.
EBITDA should not be considered in isolation or as an alternative to net
income (loss), income (loss) from operations, cash flows from
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<PAGE>
operating activities, or any other measure of performance under GAAP. EBITDA
as defined by the Company is used in its acquisition efforts. EBITDA
increased approximately $109,000 from $(113,000) in 1999 to $(4,000).
NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED WITH 1999
Total revenues decreased approximately $353,000, or approximately 40.5%, from
$872,000 for the nine months ended September 30, 1999 ("1999") to $519,000 for
the nine months ended September 30, 2000 ("2000"). Net revenues decreased
approximately $231,000, or 35.8%, from $646,000 in 1999 to $415,000 in 2000.
The decrease in net revenues was primarily the result of a lack of inventory
due to operating constraints. The company is trying to get its stock
re-listed on the OTC Bulletin Board and has concentrated all efforts in this
area. Lack of capital due to the de-listing in August 1999. The total number
of subscribers decreased by 500 since September 30, 1999. This decrease was
due to normal attrition which was not offset with new pager sales due to a
lack of inventory in 2000 and management's efforts were concentrated on
complying with all SEC reporting requirements.
Product sales, which consist primarily of sales of paging equipment, decreased
approximately $169,000 or 56.0% from $303,000 in 1999 to $134,000 in 2000. The
cost of product sales decreased approximately $122,000 or 53.9% from $226,000
in 1999 to $104,000 in 2000 principally due to a decrease in available
inventory. Pagers are classified as inventory when purchased and the cost is
included in cost of product sales when the unit is sold.
Service, rent and maintenance expenses decreased approximately $66,000 from
$223,000 in 1999 to $157,000 in 2000. This decrease was attributable to a
reduction in telecommunications expenses. The Company expects its service,
rent and maintenance expenses to decrease as a percentage of revenues and per
subscriber unit in future periods as it continues to renegotiate certain of
its telecommunications and third party services contracts and decommissions
redundant transmitter and tower sites. The Company expects such expense
savings to be partially offset by an increase in rental costs for other
transmitter and tower sites as the Company enhances its presence in the
Southeastern United States.
General and administrative expenses increased approximately $27,000 from
$405,000 in 1999 to $432,000 in 2000. The increase in general and
administrative expenses is attributable to an increase in consulting fees and
professional services during 2000.
Depreciation expense increased approximately $11,000 from $76,000 in 1999 to
$87,000 in 2000. The increase in depreciation expense resulted primarily from
depreciation expense on subscriber equipment and other capitalized assets
acquired in late 99 through financing.
Interest expense increased approximately $4,000 from $20,000 in 1999 to
$24,000 in 2000. Interest expense increased due to higher average debt
balances outstanding during 2000. Average debt balances were $100,000 greater
in 2000 than in 1999 as a result of debt incurred related to capital
expenditures and working capital requirements.
The Company's net loss increased approximately $74,000 from $211,000 in 1999
to $285,000 in 2000. The increase in net loss was primarily the result of the
decrease in subscribers as discussed above and the increase in consulting fees
and professional services. The Company expects net losses to decrease in
future periods.
EBITDA means earnings before interest, taxes, depreciation and amortization.
While not a measure under generally accepted accounting principles (GAAP),
EBITDA is a standard measure of financial performance in the paging industry.
EBITDA may not be comparable to similarly titled measures reported by other
companies since all companies do not calculate EBITDA in the same manner.
EBITDA should not be considered in isolation or as an alternative to net
income (loss), income (loss) from operations, cash flows from operating
activities, or any other measure of performance under GAAP. EBITDA as defined
by the Company is used in its acquisition efforts. EBITDA decreased
approximately $60,000 from $(114,000) in 1999 to $(174,000).
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<PAGE>
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES
Cash Flows
The following summary table (unaudited) presents comparative cash flows of the
Company for the periods indicated.
Nine months ended
September 30
----------- -----------
2000 1999
----------- -----------
(unaudited)
Net cash provided by (used in) operating activities $ (73,628) $ (72,241)
Net cash used in investing activities (2,522) (469,319)
Net cash provided by financing activities 9,517 509,695
For the nine months ended September 30, 2000, the Company's cash provided by
operating activities increased by approximately $146,000 from $(72,000) for
the nine months ended September 30, 1999 to $74,000 for the nine months ended
September 30, 2000. The increase in cash provided by operating activities was
primarily the result of an escrow deposit received in connection with the
possible sale of certain 800mhz frequencies owned by the Company and an
increase in accounts payable balances.
Net cash used in investing activities decreased approximately $466,000 from
$469,000 for the nine months ended September 30, 1999 to $3,000 for the nine
months ended September 30, 2000. The decrease in net cash used in investing
activities was primarily the result of a decrease in purchases of property and
equipment and investment in network. Capital expenditures were approximately
$158,000 and $3,000 for the nine months ended September 30, 1999 and 2000,
respectively. Also, approximately $336,000 was invested in expanding the
Company's network during the nine months ended September 30, 1999. Total
capital expenditures for fiscal year 2000 are expected to be minimal. The
Company expects to finance its capital expenditures for the remainder of
fiscal year 2000 through its operating cash flows. Projected capital
expenditures are subject to change based on the progress of internal growth,
general business and economic conditions and competitive pressures.
Net cash provided by financing activities decreased approximately $500,000
from $510,000 for the nine months ended September 30, 1999 to $(10,000) for
the nine months ended September 30, 2000. The decrease was primarily the
result of stockholder loans and long-term debt acquired during 1999.
Long-Term Debt
Borrowings and repayments from banks. During the nine months ended September
30, 2000, the Company increased its borrowings from banks by $13,800 from
December 31, 1999. However, the Company did not increase the amount of
borrowings from banks in the three months ended September 30, 2000. The
borrowings were used to purchase equipment. At September 30, 2000, $300,000
was outstanding to various banks.
Stockholder note. During the nine months ended September 30, 2000, the
Company received a stockholder note totaling $14,000 which bears interest at
8.00%. The Company will begin making principal payments as cash flow becomes
available. At September 30, 2000, there was $304,000 outstanding on
stockholder notes.
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<PAGE>
Access to Future Capital
The Company's ability to access borrowings and generate investments in the
company and to meet its debt service and other obligations will be dependent
upon its future performance and its cash flows from operations, which will be
subject to financial, business and other factors, certain of which are beyond
the Company's control, such as prevailing economic conditions. The Company
cannot assure you that, in the event it was to require additional financing,
such additional financing would be available on terms permitted by agreements
relating to existing indebtedness or otherwise satisfactory to it.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter was submitted to a vote of the security holders of the Company
during its quarter ended September 30, 2000.
ITEM 5. OTHER INFORMATION.
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits Required by Item 601 of Regulation S-K.
EXHIBIT
NUMBER EXHIBIT DESCRIPTION
--------- ---------------------
27 Financial data schedule.
(b) Reports on Form 8-K
None
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<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Amendment to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: Communitronics of America, Inc.
November 13, 2000 By: David R. Pressler
------------------- ------------------------------
David R. Pressler
President, Chief Executive Officer and
Principal Financial Officer
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