U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the period ended June 30, 2000.
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE Act of 1934 for the transition period from ___ to ___.
Commission file number: 0-25791
AIRTRAX, INC.
---------------
(Name of Small Business Issuer in its charter)
New Jersey 22-3506376
------------ -------------
(State of Incorporation) (I.R.S. Employer I.D. Number)
870B Central Avenue, Hammonton, New Jersey 08037
-------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number 609-567-7800.
--------------
1616 Pennsylvania Avenue, #122, Vineland, New Jersey 08361; 856-327-8112
-------------------------------------------------------------------------
(Former address and former telephone number, if changed from last report)
Securities registered under Section 12 (b) of the Act:
Title of each class Name of exchange on which
to be registered each class is to be registered
None None
Securities registered under Section 12(g) of the Act:
Common Stock
(Title of Class)
Check whether issuer (1) filed all reports to be filed by Section 13
or 15(d) of the Exchange Act during the past 12 months (or 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.
(1). Yes: X No:
(2). Yes: X No:
The number of shares issued and outstanding of issuer's common stock,
no par value, as of June 30, 2000 was 4,687,307.
Transitional Small Business Issuer Format (Check One):
Yes: No: X
TABLE OF CONTENTS
INDEX PAGE
PART I - FINANCIAL STATEMENTS
Item 1. Financial Statements.
Balance Sheets.......................................................3
Statements of Income.................................................4
Statements of Changes in Stockholder's Equity........................5
Statements of Cash Flows.............................................6
Notes to Financial Statements........................................7
Item 2. Management's Discussion and Analysis.........................11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings............................................12
Item 2. Changes in Securities........................................12
Item 3. Defaults upon Senior Securities..............................12
Item 4. Submission of Matters to Vote of Securityholders.............12
Item 5. Other Information............................................13
Item 6. Exhibits and Reports on Form 8-K.............................14
Signatures...........................................................14
AIRTRAX, INC.
Financial Statements
June 30, 2000
PAGE 2
AIRTRAX, INC.
BALANCE SHEETS
June 30, December 31,
2000 1999
--------------- -----------------
ASSETS
-------------
Current Assets
Cash $ 23,676 $ 48,652
Accounts receivable 1,560 71,453
Inventory 787,709 511,525
Prepaid expenses 6,938 6,938
-------------- -------------
Total current assets 819,883 638,568
Fixed Assets
Office furniture and equipment 34,003 34,003
Automotive equipment 16,915 16,915
Shop equipment 20,909 20,660
Casts and tooling 74,162 72,962
-------------- --------------
145,989 144,540
Less, accumulated depreciation 70,585 55,777
-------------- --------------
Net fixed assets 75,404 88,763
Other Assets
Patents - net 69,050 50,380
Utility deposits 65 65
-------------- -------------
Total other assets 69,115 50,445
-------------- -------------
TOTAL ASSETS $ 964,402 $ 777,776
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
----------------------------------------------
Current Liabilities
Accounts payable $ 749,437 $ 527,255
Accrued liabilities 54,258 15,161
Stockholder note payable 98,810 50,000
------------- -------------
Total current liabilities 902,505 592,416
Stockholders' Equity
Common stock - authorized, 5,000,000
shares without par value; issued and
outstanding - 4,687,307 and 4,549,013,
respectively 46,873 45,490
Preferred stock - authorized, 500,000
shares without par value; 275,000 issued
and outstanding 12,950 12,950
Additional paid-in-capital 1,989,374 1,784,038
Retained deficit (1,987,300) (1,657,118)
------------- -------------
Total stockholders' equity 61,897 185,360
------------- -----------
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 964,402 $ 777,776
============= =============
The accompanying notes are an integral part of these financial
statements.
-3-
AIRTRAX, INC.
STATEMENTS OF INCOME
For the Three and Six Month Periods Ended June 30, 2000 and 1999
YEAR 2000 YEAR 1999
---------------------- -------------------
Six Three Six Three
Months Months Months Months
---------- ----------- --------- --------
SALES $ 32,389 $ 4,800 $ 8,892 $ 8,892
COST OF GOODS SOLD 9,694 3,795 4,487 4,487
---------- ----------- ---------- --------
Gross Profit 22,695 1,005 4,405 4,405
OPERATING AND ADMINISTRATIVE EXPENSES:
Cost of prototype development 121,454 42,081 80,704 61,752
Auto expense 44 - 74 74
Health insurance 4,978 2,517 4,910 2,455
Utilities 808 286 966 440
Telephone 4,989 2,032 4,630 2,314
Shipping, postage and
office supplies 13,315 5,737 1,496 1,325
Rent - - 6,980 3,256
Professional fees 39,296 14,276 32,547 25,093
Travel and entertainment 5,697 3,939 5,467 1,624
Advertising and promotion 16,175 4,361 44,976 31,885
Interest expense 4,003 3,938 3,983 1,823
Operating supplies 9,715 8,126 - -
Depreciation and amortization 17,024 8,512 15,595 7,910
Insurance 821 - 2,872 255
Equipment rental 2,856 1,713 2,857 1,714
Payroll and related taxes 111,704 61,371 103,296 67,580
------------ --------- ---------- --------
Total General and Administrative
Expenses 352,879 158,889 311,353 209,500
------------ --------- ---------- --------
NET LOSS BEFORE OTHER INCOME (330,184) (157,884) (306,948) (205,095)
Other income 2 1 1,333 1,333
------------- ----------- --------- --------
NET LOSS $ (330,182) $(157,883) $(305,615) $(203,762)
============= ============ ========== =========
NET LOSS PER SHARE $(.08) $(.04) $(.08) $(.05)
============= ============ =========== =========
The accompanying notes are an integral part of these financial
statements.
-4-
AIRTRAX, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the Six Month Period Ended June 30, 2000
COMMON PREFERRED
STOCK STOCK ADDITIONAL
------------------ ---------------- PAID-IN RETAINED
Shares Amount Shares Amount CAPITAL DEFICIT TOTAL
-------- --------- ------- -------- --------- ----------- ---------
Balance,
December 31,
1999 4,549,013 $ 45,490 275,000 $12,950 $1,784,038 $(1,657,118) $185,360
Private
placement
sales of
stock 41,034 410 128,102 128,512
Shares issued
Under option
exercises 80,494 805 44,773 45,578
Shares issued
for services 16,766 168 32,461 32,629
Net loss for
the period (330,182) (330,182)
----------- -------- ------- -------- ---------- ---------- ---------
Balance,
June 30,
2000 4,687,307 $ 46,873 275,000 $12,950 $1,989,374 $(1,987,300)$ 61,897
=========== ======== ======= ======= =========== ============ =======
The accompanying notes are an integral part of these financial statements.
-5-
AIRTRAX, INC.
STATEMENTS OF CASH FLOWS
For the Three and Six Month Periods
Ended June 30, 2000 and 1999
Year 2000 Year 1999
-------------------- -------------------
Six Three Six Three
Months Months Months Months
------ ------ ------ ------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $(330,182) $(157,883) $(305,615) $(203,762)
Adjustments to reconcile net income
to net cash consumed by operating
activities:
Depreciation and amortization 17,024 8,512 15,595 7,910
Value of common stock issued
for services 41,956 35,748 12,470 12,470
Changes in current assets and
liabilities:
Increase (decrease) in accounts
payable and accrued liabilities 261,279 129,090 (75,500) (61,246)
Increase in prepaid expense - - (4,438) (6,938)
Decrease (increase) in
accounts receivable 69,893 43,412 228 (2,372)
Increase in inventory (276,184) (136,146) (21,513) (5,519)
---------- ---------- --------- --------
Net Cash Consumed By Operating
Activities (216,214) (77,267) (378,773)(259,457)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of equipment (1,449) (1,200) (44,858) (33,545)
Additions to patent cost (20,886) (20,886) - -
Net Cash Consumed By Investing
Activities (22,335) (22,086) (44,858) (33,545)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds of common stock sales 164,763 11,684 874,806 714,604
Proceeds of borrowing 48,810 46,820 21,043 21,043
Preferred stock dividends - - (34,375) (17,187)
---------- ---------- --------- --------
Net Cash Provided By Financing
Activities 213,573 58,504 861,474 718,460
Net Increase (Decrease) In Cash (24,976) (40,849) 437,843 425,458
Balance at beginning of period 48,652 64,525 5,081 17,466
----------- ---------- --------- --------
Balance at end of period $ 23,676 $ 23,676 $442,924 $442,924
=========== ========== ========= =========
The accompanying notes are an integral part of these financial statements.
-6-
AIRTRAX, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization Of Company
The Company was formed April 17, 1997. On May 19, 1997, it merged
with a predecessor which had initiated and advanced the development
of its omni-directional technology. On November 5, 1999, the Company
merged with MAS Acquisition IX Corp. ("MAS"), a reporting company
under federal securities law. Pursuant to this merger agreement,
the Company assumed the reporting status of MAS. In both merger
transactions, the Company was the surviving entity.
Business
The Company has designed a forklift vehicle using omni-directional
technology obtained under a contract with the United States Navy
Surface Warfare Center in Panama City, Florida. The right to
exploit this technology grew out of a Cooperative Research and
Development Agreement with the Navy. Significant resources have
been devoted during the past two years to the construction of a
prototype of this omni-directional forklift vehicle. It is expected
to be in full commercial production during the fourth quarter of
2000. At that time, it will be offered to industrial users.
The Company has also developed a traditional helicopter ground
handling machine which has been marketed by the Company on a
limited basis.
Cash
For purposes of the statements of cash flows, the Company considers
all short-term debt securities purchased with a maturity of three
months or less to be cash equivalents.
Inventory
Inventory consists principally of component parts and supplies
which are being used to assemble forklift vehicles. Inventories
are stated at the lower of cost (determined on a first in-first-
out basis) or market.
Fixed Assets
Fixed assets are recorded at cost. Depreciation is computed by
use of the Modified Accelerated Cost Recovery System (MACRS), as
permitted by Internal Revenue Service Regulations, using lives of
seven years for furniture and shop equipment and five years for
computers and automobiles.
Intangible Assets
Patents
The Company incurred costs to acquire and protect certain
patent rights. These costs were capitalized and are being
amortized over a period of fifteen (15) years on a straight-
line basis.
Prototype Equipment
The cost of developing and constructing the prototype omni-
directional helicopter handling vehicle and the omni-
directional forklift vehicle is expensed as incurred.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect certain reported
amounts and disclosures of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting periods. Actual
results could differ from those estimated.
-7-
AIRTRAX, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
2. RELATED PARTY TRANSACTIONS
During 1999, 305,737 shares of common stock of the Company were
issued in lieu of dividends on the preferred stock, as permitted
by the terms of the preferred stock issue. All of the preferred
stock is owned by the majority shareholder (see Note 4 for
description of the preferred stock). This majority shareholder
is a corporation wholly owned by the president of the Company.
The majority shareholder corporation advanced a total of $98,810
to the Company during 1999 and 2000. This debt is due on demand
and bears interest as 12%.
Since June 1999, the Company has made its headquarters in
premises owned by the Company's president, which to date has been
rent free.
3. PRIVATE PLACEMENTS
The Company conducted private placements of its common stock during
1999 and the first half of the year 2000. These placements were
exempt under the Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder.
A total of 614,552 shares of common stock were sold under the
offerings during 1999, and 41,034 shares during the first half of
2000, resulting in net proceeds of $872,268 and $128,512,
respectively. In addition, during the first half of 2000, 75,494
shares of common stock were issued under option arrangements with
officers and directors, yielding proceeds of $43,078; and 21,766
shares of common stock were issued in lieu of cash for services
valued at $35,129, of which 5,000 shares were issued for services
under an option arrangement with a director.
4. PREFERRED STOCK
The Company is authorized to issue 500,000 shares of preferred
stock, without par value. At June 30, 2000, 275,000 of these
shares had been issued. Each of these shares entitles the holder
to a 5% cumulative dividend based on a $5 per share stated value.
If sufficient cash is not available, or at the option of the
shareholder, these dividends may be paid in common stock. If
payment is in stock, it is to be valued at a price calculated at
thirty percent of the last price offered or traded during the
applicable quarter. This issue of preferred stock also provides
a voting right of 10 votes for each share.
Dividends totaling $105,119 had accrued through December 31, 1998
on this issue of preferred stock; another $68,750 accrued during
1999 and $34,375 accrued during the first half of the year 2000.
Cash dividends of $13,005 were paid during 1998 and $40,498 was
paid during 1999. An additional $91,721 was paid during 1999
through the issuance of common stock, leaving a balance of
$63,021 unpaid at June 30, 2000.
The characteristics of the remaining 225,000 preferred shares
authorized have not been specified.
-8-
AIRTRAX, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
5. EARNINGS PER SHARE
Six Months Ended June 30, 2000
----------------------------------------------
Income Average Shares Per Share
(Loss) Outstanding Amount
----------- ------------------ -----------
Net loss $ (330,182)
Adjustment for preferred
stock dividends (34,375)
-----------
Income (loss) allocable to
common shareholders $ (364,557) 4,618,160 $ (.08)
=========== =========== =======
Three Months Ended June 30, 2000
---------------------------------------------
Net Loss $ (157,883)
Adjustment for preferred
stock dividends (17,187)
-----------
Income (loss) allocable to
common shareholders $ (175,070) 4,673,771 $ (.04)
=========== ============ ======
Six Months Ended June 30, 1999
----------------------------------------------
Net loss $ (305,615)
Adjustment for preferred
stock dividends (34,375)
-----------
Income (loss) allocable to
common shareholders $ (339,990) 4,056,676 $ (.08)
=========== ============ =======
Three Months Ended June 30, 1999
---------------------------------------------
Net Loss $ (203,762)
Adjustment for preferred
stock dividends (17,188)
-----------
Income (loss) allocable to
common shareholders $ (220,950) 4,115,358 $ (.05)
=========== ============ =======
6. INCOME TAXES
The Company has experienced losses each year since its inception.
As a result, it has incurred no Federal income tax. The Internal
Revenue Code allows net operating losses (NOL's) to be carried
forward and applied against future profits for a period of twenty
years. A New Jersey corporation business tax liability of $200
accrued during each of the years 1999 and 1998, that being the
minimum annual tax imposed on all New Jersey corporations. New
Jersey tax law allows the carry forward of NOL's for seven years.
The Company had NOL carry forwards of $1,009,000 as of December
31, 1999. The potential tax benefit of these NOL's has not been
recorded on the books of the Company.
-9-
AIRTRAX, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
7. RENTALS UNDER OPERATING LEASES
Office equipment is leased under an operating lease that expires
in June 2003. The following is a schedule of future minimum
rental payments required under the operating lease:
Year Ending
December 31, Amount
------------ -------
2000 (Remainder) $ 3,810
2001 6,857
2002 6,857
2003 2,857
---------
$ 20,381
=========
Rent expense amounted to $1,713 and $2,856, respectively in the
three and six month periods ended June 30, 2000 and $4,970 and
$9,837 in 1999 periods.
8. SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Cash paid for interest during the second quarter of 2000 totaled
$1,142. There was no cash paid for income taxes.
There were no noncash investing activities during either the 2000
period or 1999 period. The following noncash financing activities
occurred:
a. Shares of common stock totaling 19,669 shares were issued
for services during the three months ended June 30, 2000.
These were valued at $28,921.
9. CONTINGENCIES
Pursuant to agreements relating to the merger transaction with
MAS, the Company was required to issue 114,867 shares of common
stock to former shareholders of MAS (MAS Common Stock) and make a
cash payment to an affiliate of the majority shareholder of MAS in
the amount of $25,000. The Company has asserted claims against
the majority shareholder. The claims involve the amount of the
MAS Common Stock and the cash due to the majority shareholder and
affiliate under the merger agreement. The Company has not issued
the MAS Common Stock nor paid the $25,000. The parties are currently
discussing the matter; however, no assurances can be given that a
resolution will be effected by the parties.
The Company has an employment agreement with its president which
provides, in part, for options permitting the president to acquire
up to 50,000 shares of common stock per year. The first 10,000
shares each year are available at a price per share of $1; the
next 25,000 shares are available at a price per share equal to 30%
of the lowest price paid for the stock during the 30 days
preceding the date of exercise; the last 15,000 shares are
available at a price equal to one half the 30% price described
above. These options accumulate if they are not exercised. None
of these options had been exercised prior to December 31, 1999.
Options for 60,000 shares were exercised during the first quarter
of 2000, 50,000 at the 30% price and 10,000 at the $1 price.
Options for 22,500 shares were outstanding at June 30, 2000 at the
one half of 30% price. The employment agreement terminated June
30, 2000.
-10-
Item 2. Management's Discussion and Analysis.
The following discusses the financial results and position of the
consolidated accounts of the Company for the periods indicated.
Results of Operations
Six Months Ended June 30, 2000 compared with Six Months Ended June
30, 1999.
For the six-month period ended June 30, 2000 and comparable period
in 1999, the Company was a development stage company. Revenues for
the three- and six-months ended June 30, 2000 were $4,800 and
$32,389, respectively, compared with $8,892 and $8,892 for the
same respective periods in 1999. Revenues for the six-month period
in 2000 consisted of $13,645 of sales of a non omni-directional
product and $18,744 in contract revenues from the United States
Navy.
Cost of sales for the six-month period in 2000 period was $9,694
representing parts and manufacturing costs for the non-omni
directional product.
General and administrative expenses which includes administrative
salaries and overhead for the three and six-month periods in 2000
totaled $158,889 and $352,879, respectively, compared with
$209,500 and $311,353 for the same respective periods in 1999.
The increase of $41,526 for the six-month period in 2000 is due
to increased prototype development costs of the omni-directional
wheel, increased professional fees associated with Company's
reporting status under the federal securities laws, increased
salary payments to the president of the Company and initiation of
salary payments to the executive vice president of the Company,
partially offset by a reduction in advertising and promotional
costs. Net loss for the three- and six-month periods in 2000 was
$157,883 and $330,182, respectively, compared with a net loss of
$203,762 and $305,615 for the respective prior periods.
Liquidity and Capital Resources
Since its inception, the Company has financed its operations
through the private placement of its common stock. During 1999,
the Company raised approximately $872,268 net of offering costs
from the private placement of its common stock. During the first
half of 2000, the Company raised approximately $128,512 net of
offering costs from the private placement of its common stock.
As of June 30, 2000, the Company's working capital was ($82,672).
In addition, the Company anticipates that its use of cash will be
substantial for the foreseeable future. In particular, management
of the Company expects substantial expenditures for inventory and
product production in anticipation of the rollout of its omni-
directional forklift expected to occur in the fourth quarter of
fiscal 2000. The Company intends to fund its operations through
the issuance of equity and/or debt securities. Presently, the
Company is seeking capital from one or more funding sources,
however, at this time no arrangement has been finalized. No
assurances can be given that the Company will be successful in
obtaining sufficient capital to fund the initiation of its
production activities, as well as its ongoing operations. If the
Company is unable to obtain sufficient funds in the near
future, such event will have a material adverse impact on the
Company and its business prospects.
-11-
Fixed assets, net of accumulated depreciation, totaled $75,404 on
June 30, 2000. Fixed assets, net of accumulated depreciation,
totaled $88,763 on December 31, 1999.
Forward Looking Statements. Certain of the statements contained in
this Quarterly Report on Form 10-QSB includes "forward looking
statements" within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended ("Exchange Act"). See the
Company's Annual Report on Form 10-KSB for the period ending
December 31, 1999 for additional statements concerning operations
and future capital requirements.
Certain risks exist with respect to the Company and its business,
which risks include the need for additional capital, additional
product testing to be completed, and lack of commercial product.
Readers are urged to refer to the section entitled "Cautionary
Statements in the Company's Form 10-KSB for the period ended
December 31, 1999 for a broader discussion of such risks and
uncertainties.
Part II OTHER INFORMATION
Item 1. Legal Proceedings.
Pursuant to agreements relating to the merger transaction with MAS
Acquisition IX Corp. ("MAS"), the Company was required to issue
114,867 shares of common stock to former shareholders of MAS
("MAS Common Stock") and make a cash payment to an affiliate of
the majority shareholder of MAS in the amount of $25,000. The
Company has asserted claims against the affiliate and majority
shareholder. The claims involve the amount of the MAS Common
Stock and the cash due to the majority shareholder and affiliate
under the merger agreement. The Company has not issued the MAS
Common Stock nor has it paid the $25,000. The parties are
currently discussing the matter, however, no assurances can be
given that a resolution of this dispute will be effected by the
parties.
Item 2. Changes in Securities.
None
Item 3. Defaults upon Senior Securities.
None
Item 4. Submission of Matters to a Vote of Securityholders.
None
-12-
Item 5. Other Information.
The following is a press release issued by the Company on
July 28, 2000.
FOR IMMEDIATE RELEASE
HAMMONTON, NEW JERSEY 28 July 2000.
US NAVY SELECTS AIRTRAX TO DEVELOP ADVANCED SHIPBOARD
MATERIAL HANDLING SYSTEM OMNI DIRECTIONAL MATERIAL HANDLING
VEHICLES
AIRTRAX, Inc. OTC BB (AITX) reports that it has been awarded
a Phase II Contract by the US Navy under the Department of
Defense's Small Business Innovation Research (DOD SBIR)
program to develop an advanced omni directional material
handling vehicle. The contract, with options, has a
potential value of nearly $1 Million. Under the Phase II
contract, AIRTRAX will develop a prototype omni-directional
multi-purpose mobility platform (MP2) vehicle during a 24-
month performance period. The MP2 will be designed to handle
munitions and jet engines onboard aircraft carriers. The
contract follows a Phase I (DOD SBIR) contract and Option
which were awarded to AIRTRAX in 1999.
The MP2 development is a key facet of the Navy's strategy to
increase the number of aircraft carrier missions conducted
in a 24 hour period. The Navy must increase the speed at
which material is transported from within the ship's
magazines to the flight deck. The long and ungainly weapons
must be maneuvered through areas that are congested with
personnel, material, and aircraft. AIRTRAX's omni directional
vehicle technology will enable the AIRTRAX vehicle to
negotiate the route from magazine to flight deck much faster
with fewer personnel.
In announcing the contract, AIRTRAX Executive Vice President
Barney Harris said, "The Navy will realize an immediate
benefit from this technology's insertion. Navy ships are
literally designed around the ability to move material within;
future Naval ships designed around systems incorporating omni
directional vehicle technology will require less internal
space dedicated to material handling, and as a result will
be more cost effective ." Harris added "The DOD SBIR
procurement mechanism enables the Navy to purchase additional
development services and production hardware under a Phase
III contract, if desired."
In addition, the Company believes omni directional vehicle
technology will speed material handling on other classes of
Naval combatant and auxiliary vessels. For instance, Naval
re-supply ships, have a similar situation in that a massive
amount of material must be transferred from stowage spaces
within the ship to transfer stations on deck. Loads are
transferred from re-supply to combat ships while steering
parallel courses via a tensioned wire trolley system. While
ships are connected with the wire trolley and transferring
cargo, the combat ship cannot perform its functions, since it
cannot maneuver. The Company believes that omni directional
mobility will enable a reduction of time required to replenish
ships at sea.
Both re-supply and combat ships suffer from congested
passageways, a wide variety of load sizes and shapes, and the
high tempo. The Company believes these situations are a
natural environment for omni material handling technology
including fork lifts and specialty transporters.
AIRTRAX is completing development of a commercial omni
directional forklift. Pilot models of the ATX-Series are
undergoing final testing. Production models will be shipped
to dealers later this year. "The ATX-Series will sell at
prices competitive with any forklift on the market."
according to Peter Amico, Company President. The Company is
also developing a line of products incorporating omni-
directional vehicle technology for use in material handling,
construction, health care, and entertainment. A Free Video
showing the ATX-Series forklift can be seen on the Company
website at www.airtrax.com. For more information, contact
Peter Amico at PO 1237, Hammonton, NJ 08037-1237 - Phone 877-
AIRTRAX, 609-567-7895 Fax.
-13-
This document contains forward-looking statements that are
subject to risks and uncertainties. For such statements
Airtrax claims the protection of the safe harbor for forward-
looking statements contained in the Private Securities
Litigation Reform Act. The Company intends that such
statements about the Company's future expectations including
future revenues and earnings and all other forward-looking
statements be subject to the safe harbors created thereby.
Since these statements (future operational results and sales)
involve risks and uncertainties and are subject to change
at any time, the Company's actual results may differ
materially from expected results. Readers should refer to the
Company reports filed with the Securities and Exchange
Commission, which includes its Form 10-KSB for the period
ended December 31, 1999, for a discussion of risks and
uncertainties regarding the Company and its business.
Item 6. Exhibits.
(a). Furnish the Exhibits required by Item 601 of Regulation S-B.
Exhibit 27.1 - Financial Data Schedule
(b) Reports on Form 8-K.
None.
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.
AIRTRAX, INC.
Date: August 14, 2000 /s/Peter Amico
Peter Amico
President and
Principal Financial Officer
-14-
EXHIBIT 27.1
FINANCIAL DATA SCHEDULE
ART.5 FDS FOR 2nd QUARTER 10-Q
Multiplier 1,000
PERIOD TYPE 6 MONTHS
FISCAL YEAR END DEC-31-1999
PERIOD END JUNE-30-2000
CASH 24
SECURITIES 0
RECEIVABLES 2
ALLOWANCES 0
INVENTORY 788
CURRENT-ASSETS 819
PP&E 75
DEPRECIATION 71
TOTAL ASSETS 964
CURRENT-LIABILITIES 903
BONDS 0
COMMON 47
PREFERRED-MANDATORY 13
PREFERRED 13
OTHER-SE 2
TOTAL-LIABILITIES-AND-EQUITY 964
SALES 30
TOTAL-REVENUES 30
CGS 10
TOTAL-COST 363
OTHER-EXPENSES (2)
LOSS-PROVISION 0
INTEREST-EXPENSE 0
INCOME-PRETAX (330)
INCOME-TAX 0
INCOME-CONTINUING (330)
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME (330)
EPS-PRIMARY (.08)
EPS-DILUTED (.08)
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