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 JUNE 30, 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
------
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
August 15, 2000 (EXCLUSIVE OF 83,119 SHARES IN TREASURY)
<PAGE>
<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
JUNE 30 DECEMBER 31,
-------- ------------
2000 1999
-------- ------------
(UNAUDITED)
Current assets:
<S> <C> <C>
Cash ............................................ $ 5,327 $ 90,015
Accounts receivable ............................. 55,021 46,856
Receivable from Data Probe, Inc. ................ 190,581 192,783
Inventories of work in process .................. 1,050 1,050
Prepaid expenses and other current
assets ................................. -- --
-------- --------
Total current assets .......... 251,979 330,704
Furniture, fixtures, equipment and
improvements (at cost, less
accumulated depreciation of
$125,563 in 2000 and $125,236
in 1999) .............................. 1,117 1,444
Other assets .................................... 140 667
-------- --------
Total ......................... $253,236 $332,815
======== ========
(Continued)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES
JUNE 30, DECEMBER 31,
--------- ------------
2000 1999
--------- ------------
(UNAUDITED)
Current liabilities:
<S> <C> <C>
Accounts payable ........................ $ 39,524 $ 32,270
Accrued expenses and taxes .............. 111,192 112,143
Customer advances ....................... 160,000 243,100
----------- -----------
Total current liabilities .......... 310,716 387,513
Other liabilities ................................ 12,600 12,600
----------- -----------
Total liabilities .................. 323,316 400,113
----------- -----------
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 .......................................... (3,218,049) (3,215,267)
----------- -----------
61,377 64,159
Less cost of 83,119 common shares
held in treasury ........................ 131,457 131,457
----------- -----------
Total Shareholders' Equity ............ (70,080) (67,298)
----------- -----------
TOTAL ............................................ $ 253,236 $ 332,815
=========== ===========
</TABLE>
See accompanying notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30,
--------------------------
2000 1999
----------- ------------
<S> <C> <C>
Sales . . . . . . . . . . . . . . . . . . . $ 371,288 $ 354,983
Cost of sales . . . . . . . . . . . . . . . 311,958 266,498
------------ -----------
Gross profit. . . . . . . . . . . . . . . . 59,330 88,485
Selling and administrative
expenses . . . . . . . . . . . . . . . 76,931 81,055
------------ -----------
(Loss) from operations. . . . . . . . . . . (17,601) 7,430
Interest income . . . . . . . . . . . . . . 12,740 10,034
Profit from investments . . . . . . . . . . 2,079 --
------------ -----------
(Loss) Profit before
provision for income taxes . . . . . . $ (2,782) $ 17,464
Income tax provision. . . . . . . . . . . . -- --
------------ -----------
Net profit (loss) . . . . . . . . . . . . . $ (2,782) $ 17,464
============ ===========
Profit (loss) per share . . . . . . . . . . $ .00 $ .02
============ ===========
Weighted average number
of shares outstanding. . . . . . . . . 705,836 705,836
============ ===========
Dividends per share . . . . . . . . . . . . NONE NONE
============ ============
</TABLE>
The attached notes are made a part hereof.
----------------------------
<PAGE>
<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
THREE MONTHS ENDED
JUNE 30,
-------------------------
2000 1999
------------- ----------
<S> <C> <C>
Sales . . . . . . . . . . . . . . . . . . . $ 228,584 $ 282,967
Cost of sales . . . . . . . . . . . . . . . 187,412 175,904
------------ -----------
Gross profit. . . . . . . . . . . . . . . . 41,172 107,063
Selling and administrative
expenses . . . . . . . . . . . . . . . 37,706 44,326
------------ -----------
Profit from operations . . . . . . . . . . 3,466 62,737
Interest income . . . . . . . . . . . . . . 7,149 5,611
Profit from investments . . . . . . . . . . 2,079 --
------------ -----------
Profit (loss) before
provision for income taxes . . . . . . $ 12,694 $ 68,348
Income tax provision. . . . . . . . . . . . -- --
------------ -----------
Net profit (loss) . . . . . . . . . . . . . $ 12,694 $ 68,348
============ ===========
Profit (loss) per share . . . . . . . . . . $ .02 $ .10
============ ===========
Weighted average number
of shares outstanding. . . . . . . . . 705,836 705,836
============ ===========
Dividends per share . . . . . . . . . . . . NONE NONE
============ ===========
</TABLE>
The attached notes are made a part hereof.
----------------------------
<PAGE>
Management's discussion and analysis of financial
condition and results of operations is included on the following page.
DATATAB, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Revenue for the six months period ended June 30, 2000
increased 4.6% to $371,288 as compared to $354,983 for the
corresponding period of 1999. Revenue for the three months period
ended June 30, 2000 decreased 19.2% to $228,584 as compared to
$282,967 for the corresponding period of 1999. The decreases in
revenue during the three months period were due to a decrease in
volume received by the Registrant from existing customers.
In line with the increase in revenue during the six months
period ending June 30, 2000, there were increases in the cost of
sales as compared to costs of sales during the similar period of
1999.
Selling and Administrative expenses were lower during the
six months period ending June 30, 2000 as compared to the similar
period of 1999. This reduction in Selling and Administrative expenses
occurred during the second quarter period ending June 30, 2000.
Interest revenue was higher during the six months period
ending June 30, 2000 when compared to the similar period of 1999. The
majority of the interest income currently being recognized is from
Data Probe, Inc. due to Registrant's accounts receivable from Data
Probe, Inc. (See NOTE F of "Notes to Form 10-Q" contained in this
report for additional information). During the second quarter of the
fiscal year the Registrant took advantage of an increase in the value
of an investment. The liquidation of this investment resulted in a
gain of $2,079.
The Registrant had a loss of ($2,782) during the six months
period ending June 30, 2000 as compared to a profit of $17,464 in the
similar period of 1999. During the three months period ending June
30, 2000 the Registrant had a profit of $12,694 as compared to a
profit of $68,348 for the same period of 1999.
(Continued)
<PAGE>
DATATAB, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
YEAR 2000 COMPLIANCE
After a review of the Registrant's software, services and internal
systems it was concluded that the software and services provided by the
Registrant are Year 2000 compliant. The Registrant has, also, upgraded its
accounting and payroll systems to be fully compliant under the Year 2000
requirements.
To date, the Registrant has not found any area where a Year 2000
compliance problem, with either its internal systems or outside providers,
could have a material adverse impact on any part of the Registrant's
business operations.
CAPITAL EXPENDITURES
The Registrant did not incur any capital expenditures in the first
six months of 2000 and does not anticipate adding any material capital
assets for the balance of fiscal year 2000.
LIQUIDITY AND CAPITAL RESOURCES.
Working capital decreased by $1,928 in the first six months of 2000,
from a deficit of ($56,809) at December 31, 1999 to a deficit of ($58,737)
at June 30, 2000.
From time to time the Registrant receives cash advances and deposits
from clients in association with various projects. There is no assurance
that the stream of sales and revenue from the Registrant's existing
clients will continue. If the current level of revenues cannot be
sustained then the Registrant once again will realize losses. Should the
losses reoccur, 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.
<PAGE>
<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT
CASH FLOWS
(NOTES A AND B)
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30,
-------------------------
2000 1999
------------- ----------
Cash flows (used) provided from operating activities:
<S> <C> <C>
Net (loss) profit. . . . . . . . . . . . . . . . $ ( 2,782) $ 17,464
Adjustments to reconcile net (loss) to net cash provided by operating
activities:
Depreciation and amortization. . . . . . . . . 327 731
Increase(Decrese)in accounts receivable . . . (8,165) 34,734
Increase (Decrease)in prepaid expenses and
other assets . . . . . . . . . . . . -- 100
Increase in accounts payable . . . . . . . . . 7,254 5,796
Increase (Decrease) in accrued expenses
and taxes . . . . . . . . . . . . . . ( 951) (8,855)
(Decrease) Increase in customer deposits . . . (83,100) 41,100
------------ ----------
Net cash flow provided from (used in)
Operating activities. . . . . . . . . . . . $ (87,417) $ 91,070
------------ ----------
Cash flows (used) provided by investing
activities:
Payments (to) from an affiliate. . . . . . . . 2,202 (37,589)
------------ ----------
Net cash flow provided (used) by
investing activities . . . . . . . 2,202 (37,589)
------------ ----------
Cash flows provided by financing activities:
Decrease in other assets . . . . . . 527 --
------------ ----------
Net cash flow provided
by financing activities. . . . . . . . . -- --
------------ ------------
Net (Decrease) increase in cash. . . . . . . . . (84,688) 19,402
Cash at beginning of period. . . . . . . . . . . 90,015 11,071
------------ ----------
Cash at end of period. . . . . . . . . . . . . . $ 5,327 $ 30,473
=========== ==========
</TABLE>
The notes to financial statements are made a part hereof.
<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 June 30,
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 had $1,380,000 of net operating loss carry forwards.
$995,000 will expire in December 31, 2005 and the balance in 2006 and
thereafter.
(NOTE E):
Inventories are summarized as follows:
June 30, 2000 December 31, 1999
------------------ -----------------
Work in process . . . . . . . $ 1,050 $ 1,165
================== =================
(NOTE F:) Data Probe, Inc., the majority stockholder, is
indebted to the Registrant for advances made. At June 30, 2000 that indebtedness
was $190,581 and was evidenced by a demand note bearing interest at 2% above the
prime rate.
For the six months ended June 30, 2000, Data Probe, Inc.
charged the Registrant $187,588 for services rendered and $32,693 in rent
related expenses. In addition, the Registrant charged Data Probe, Inc. in the
same six months period, $12,089 for interest, and $144,258 for services
rendered.
<PAGE>
PART II
Item 1. Legal Proceedings.
NONE
<PAGE>
SIGNATURES
----------
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: August 14, 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: August 14, 2000 /S/ YITZHAK N. BACHANA
---------------------------------
Yitzhak N. Bachana, President,
Treasurer, Principal Executive
Officer, Principal Financial
Officer, Director
<PAGE>
SIGNATURES
----------
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: August 14, 2000 By:
----------------------------
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: August 14, 2000
---------------------------------
Yitzhak N. Bachana, President,
Treasurer, Principal Executive
Officer, Principal Financial
Officer, Director
