SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
+---+
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
+---+ SECURITIES EXCHANGE ACT OF 1934
For the quarterly period MARCH 31, 2000
OR
+---+ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
| | OF THE SECURITIES EXCHANGE ACT OF 1934
+---+
For the transition period from to
Commission file no. 0-3677
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DATATAB, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
NEW YORK 13-1917838
- --------------------------------------------------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
49 EAST 21ST STREET, NEW YORK, NEW YORK 10010
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 228-6800
--------------
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 X No
----- -----
COMMON SHARES $1.00 PAR VALUE - 705,836 SHARES OUTSTANDING AS OF
May 15, 2000 (EXCLUSIVE OF 83,119 SHARES IN TREASURY)
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<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
MARCH 31 DECEMBER 31,
-------- ------------
2000 1999
-------- ------------
(UNAUDITED)
Current assets:
<S> <C> <C>
Cash ............................................ $ 53,652 $ 90,015
Accounts receivable ............................. 17,609 46,856
Receivable from Data Probe, Inc. ................ 168,951 192,783
Inventories of work in process .................. 1,050 1,050
Prepaid expenses and other current
assets ................................. (400) --
-------- --------
Total current assets .......... 240,862 330,704
Furniture, fixtures, equipment and
improvements (at cost, less
accumulated depreciation of
$125,236 in 1999 and $123,801
in 1998) .............................. 1,281 1,444
Other assets .................................... 667 667
-------- --------
Total ......................... $242,810 $332,815
======== ========
(Continued)
</TABLE>
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<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES
MARCH 31, DECEMBER 31,
--------- ------------
2000 1999
--------- ------------
(UNAUDITED)
Current liabilities:
<S> <C> <C>
Accounts payable ........................ $ 37,765 $ 32,270
Accrued expenses and taxes .............. 106,119 112,143
Customer advances ....................... 169,100 243,100
----------- -----------
Total current liabilities .......... 312,984 387,513
Other liabilities ................................ 12,600 12,600
----------- -----------
Total liabilities .................. 325,584 400,113
----------- -----------
STOCKHOLDERS' EQUITY
Preferred shares - authorized 500,000
shares, par value $1 a share;
none issued ............................ -- --
Common shares - authorized 2,000,000
shares, par value $1 a share;
issued 788,955 (including
shares held in treasury) ................ 788,955 788,955
Additional paid in capital ....................... 2,490,471 2,490,471
Deficit .......................................... (3,230,743) (3,215,267)
----------- -----------
48,683 64,159
Less cost of 83,119 common shares
held in treasury ........................ 131,457 131,457
----------- -----------
Total Shareholders' Equity ............ (82,774) (67,298)
----------- -----------
TOTAL ............................................ $ 242,810 $ 332,815
=========== ===========
See accompanying notes to financial statements
</TABLE>
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<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
-------------------------
2000 1999
--------- ---------
<S> <C> <C>
Sales ............................................ $ 142,704 $ 72,017
Cost of sales .................................... 124,546 90,594
--------- ---------
Gross profit ..................................... 18,158 (18,577)
Selling and administrative
expenses .................................... 39,225 37,502
--------- ---------
Profit (loss) from operations .................... (21,067) (56,079)
Interest income .................................. 5,591 4,423
--------- ---------
Profit (loss) before
provision for income taxes .................. $ (15,476) $ (51,656)
Income tax provision ............................. -- --
--------- ---------
Net profit (loss) ................................ $ (15,476) $ (51,656)
========= =========
Profit per share.................................. $ (.02) $ (.07)
========= =========
Weighted average number
of shares outstanding ....................... 705,836 705,836
========= =========
Dividends per share .............................. NONE NONE
========= =========
</TABLE>
The attached notes are made a part hereof.
----------------------------
Management's discussion and analysis of financial condition and
results of operations is included on the following page.
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DATATAB, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Revenue for the three months period ended March 31, 2000 increased 98.2% to
$142,704 as compared to $72,017 for the corresponding period of 1999. The
increase in revenue during the first quarter of the current fiscal year was the
result of an increase in volume received from the Registrant's largest client
coupled with projects received from new clients.
Cost of sales in the three month period ended March 31, 2000 increased by
$33,952 or 37.5%. The increase in costs was due to the large increase in
revenue.
Selling and Administrative (S&A) expenses increased by 4.6% to $39,225 as
compared to $37,502 during the corresponding period of 1999.
Interest revenue was higher for the three month period ending March 31,
2000 when compared to the similar period of 1999. The majority of the interest
income currently being recognized is from Data Probe, Inc. and it's receivable
to the Registrant. (See NOTE F of "Notes to Form 10-Q" contained in this report
for additional information)
The Registrant had a loss of $(15,476), or ($.02) per share, during the
three month period ending March 31, 2000 as compared to a loss of $(51,656), or
($.07) per share, in the similar period of 1999. The additional revenue
generated during the first quarter of the current fiscal year was not sufficient
to cover all costs incurred.
(Continued)
<PAGE>
DATATAB, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
CAPITAL EXPENDITURES.
The Registrant did not incur any capital expenditure in the first three
months of 2000.
THE YEAR 2000 ISSUE
- -------------------
The Registrant has studied the impact of the year 2000 on the software and
services it sells as well as its own internal systems.
It was concluded that all software and services provided by the Registrant
are Year 2000 compliant. The Registrant has not experienced any Year 2000
compliance problems with either its internal systems or outside providers.
LIQUIDITY AND CAPITAL RESOURCES.
Working capital decreased by $15,313 in the first three months of 2000 from
a deficit of $56,809 at December 31, 1999 to a deficit of $72,122 at March 31,
2000.
The Registrant receives cash deposits from clients in association with
various projects. There is no assurance that the stream of sales and revenue
from the Registrant's major clients will continue. If additional revenues cannot
be sustained and the Registrant once again realizes losses, the Registrant's
ability to continue to operate would be severely affected in the absence of
securing some type of supplemental financing, the availability of which there
can be no assurance.
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<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT
CASH FLOWS
(NOTES A AND B)
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31,
---------------------
2000 1999
--------- ---------
Cash flows provided (used) from
operating activities:
<S> <C> <C>
Net Income/(Loss) .................................. $(15,476) $(51,656)
Adjustments to reconcile net (loss) to
net cash provided by operating activities:
Depreciation and amortization .................... 163 365
Decrease/(Increase) in accounts receivable ....... 29,247 (2,312)
Decrease/(Increase) in prepaid expenses and
other assets ................................. 400 (4,705)
Increase/(Decrease) in accounts payable .......... 5,495 (344)
(Decrease)/Increase in accrued expenses
and taxes .................................... ( 6,024) 6,225
(Decrease)/Increase in customer deposits ......... (74,000) 10,000
-------- --------
Net cash flow provided (used) from
operating activities .......................... $ (60,195) $(44,427)
-------- --------
Cash flows provided by
investing activities:
Payments from (to) an affiliate .................. 23,832 51,895
Sale of equipment ................................ -- --
-------- --------
Net cash flow provided by
investing activities ................... 23,832 51,895
-------- --------
Cash flows provided by financing activities:
None ...................................... -- --
-------- --------
Net cash flow provided
by financing activities ............... -- --
-------- --------
Net (Decrease)/increase in cash .................... (36,363) 9,468
Cash at beginning of period ........................ 90,015 11,071
-------- --------
Cash at end of period .............................. $ 53,652 $ 20,539
======== ========
The notes to financial statements are made a part hereof.
</TABLE>
<PAGE>
DATATAB, INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
(UNAUDITED)
(NOTE A):
The financial information contained in this Form 10-Q represents
condensed financial data and, therefore, does not include all footnote
disclosures required to be included in financial statements prepared in
conformity with generally accepted accounting principles. Such footnote
information was included in the Registrant's annual 10K report to the SEC for
the year ended December 31, 1999; the condensed financial data included herein
should be read in conjunction with that report.
(NOTE B):
(1) In management's opinion, all necessary adjustments have been made
in order to present fairly the consolidated results of operations for the
interim periods.
(2) The results of operations for the interim period ending March 31,
2000 are not necessarily indicative of the results of operations for the year
ending December 31, 2000.
(NOTE C):
Profit and loss per share is based on the average number of shares of
common stock outstanding during each period after deducting treasury shares and
taking into consideration the dilutive effect of outstanding stock options when
applicable.
(NOTE D):
At December 31, 1999, for financial accounting and income tax purposes,
the Registrant has available net operating loss carryforwards in excess of
$1,380,000, of which $320,000 expires in 2000, $175,000 in 2001, 199,000 in
2002, 120,000 in 2003, $87,000 in 2004, $94,000 in 2005 and the balance in 2006
and thereafter.
(NOTE E):
Inventories are summarized as follows:
March 31, 2000 December 31, 1999
-------------- -----------------
Work in process ...................... $1,050 $1,050
============== =================
(NOTE F:)
Data Probe, Inc., the majority stockholder, is indebted to the
Registrant for advances made. At March 31, 2000 that indebtedness was $168,951
and was evidenced by a demand note bearing interest at 2% above the prime rate.
For the three months ended March 31, 2000, Data Probe, Inc. charged
the Registrant $29,867 for services rendered and $16,138 in rent related
expenses. In addition, the Registrant charged Data Probe, Inc. in the same
three month period $5,422 for interest and $13,950 for services rendered.
PART II
ITEM 1. LEGAL PROCEEDINGS.
NONE
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SIGNATURES
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Pursuant to the requirements of Section 13 or 15(d) 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.
DATATAB, INC.
Dated: May 15, 2000 By: /S/ YITZHAK N. BACHANA
---------------------------
Yitzhak N. Bachana,
President
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated:
Dated: May 15, 2000 /S/ YITZHAK N. BACHANA
----------------------
Yitzhak N. Bachana, President,
Treasurer, Principal Executive
Officer, Principal Financial
Officer, Director
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000027099
<NAME> DATATAB, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 53,652
<SECURITIES> 0
<RECEIVABLES> 17,609
<ALLOWANCES> 0
<INVENTORY> 1,050
<CURRENT-ASSETS> 240,862
<PP&E> 126,517
<DEPRECIATION> 125,236
<TOTAL-ASSETS> 242,810
<CURRENT-LIABILITIES> 312,984
<BONDS> 0
788,955
788,955
<COMMON> 788,955
<OTHER-SE> (788,610)
<TOTAL-LIABILITY-AND-EQUITY> 242,810
<SALES> 142,704
<TOTAL-REVENUES> 148,295
<CGS> 124,546
<TOTAL-COSTS> 163,771
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (15,476)
<INCOME-TAX> 0
<INCOME-CONTINUING> (15,476)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (15,476)
<EPS-BASIC> (.02)
<EPS-DILUTED> (.02)
</TABLE>
