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 SEPTEMBER 30, 2000
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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.
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(Exact name of registrant as specified in its charter)
NEW YORK 13-1917838
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
49 EAST 21ST STREET, NEW YORK, NEW YORK 10010
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 228-6800
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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
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COMMON SHARES $1.00 PAR VALUE - 705,836 SHARES OUTSTANDING AS OF
November 14, 2000 (EXCLUSIVE OF 83,119 SHARES IN TREASURY)
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<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
SEPTEMBER 30, DECEMBER 31,
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2000 1999
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(UNAUDITED)
Current assets:
<S> <C> <C>
Cash ........................................ $ 1,796 $ 90,015
Accounts receivable ......................... 14,055 46,856
Receivable from Data Probe, Inc. ............ 147,077 192,783
Inventories of work in process .............. 1,050 1,050
Prepaid expenses and other current
assets ............................ 512 --
-------- --------
Total current assets..... 164,490 330,704
Furniture, fixtures, equipment and
improvements (at cost, less
accumulated depreciation of
$125,727 in 2000 and $125,236
in 1999) ................................... 954 1,444
Other assets ........................................... 140 667
-------- --------
Total ................... $165,584 $332,815
======== ========
</TABLE>
(Continued)
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<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES
SEPTEMBER 30, DECEMBER 31,
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2000 1999
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(UNAUDITED)
Current liabilities:
<S> <C> <C>
Accounts payable .................................... $ 27,232 $ 32,270
Accrued expenses and taxes .......................... 45,490 112,143
Accrued officers compensation ....................... 63,461 --
Customer advances ................................... 145,000 243,100
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Total current liabilities .................... 281,183 387,513
Other liabilities .............................................. 12,600 12,600
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Total liabilities ................................. 293,783 400,113
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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 ........................................................ (3,276,168) (3,215,267)
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3,258 64,159
Less cost of 83,119 common shares
held in treasury .................................... 131,457 131,457
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Total Shareholders' Equity ................ (128,199) (67,298)
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TOTAL .......................................................... $ 165,584 $ 332,815
=========== ===========
</TABLE>
See accompanying notes to financial statements
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<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
NINE MONTHS ENDED
SEPTEMBER 30,
----------------------
2000 1999
--------- ---------
<S> <C> <C>
Sales ........................................... $ 432,702 $ 451,893
Cost of sales ................................... 401,013 386,104
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Gross profit .................................... 31,689 65,789
Selling and administrative
expenses ............................. 112,808 122,429
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(Loss) from operations .......................... (81,119) (56,640)
Interest income ................................. 18,139 15,422
Profit from investments ......................... 2,079 --
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(Loss) before
provision for income taxes ........... $ (60,901) $ (41,218)
Income tax provision ............................ -- --
--------- ---------
Net (Loss) ...................................... $ (60,901) $ (41,218)
========= =========
(Loss) per share ................................ $ (.09) $ (.06)
========= =========
Weighted average number
of shares outstanding ................ 705,836 705,836
========= =========
Dividends per share ............................. NONE NONE
========= =========
</TABLE>
The attached notes are made a part hereof.
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<PAGE>
<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
Three Months Ended
SEPTEMBER 30,
------------------------
2000 1999
----------- ----------
<S> <C> <C>
Sales ........................................... $ 61,415 $ 96,910
Cost of sales ................................... 89,056 117,106
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Gross profit. (loss) ........................... (27,641) (20,196)
Selling and administrative
expenses ............................. 35,877 43,875
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(Loss) from operations .......................... (63,518) (64,071)
Interest income ................................. 5,398 5,388
--------- ---------
(Loss) before
provision for income taxes ........... $ (58,120) $ (58,683)
Income tax provision ............................ -- --
--------- ---------
Net (loss) ...................................... $ (58,120) $ (58,683)
========= =========
(Loss) per share ................................ $ (.08) $ (.08)
========= =========
Weighted average number
of shares outstanding ................ 705,836 705,836
========= =========
Dividends per share ............................. NONE NONE
========= =========
</TABLE>
The attached notes are made a part hereof.
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<PAGE>
DATATAB, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Revenue for the nine months period ended September 30, 2000
decreased by 4.2% to $432,702 as compared to $451,893 for the
corresponding period of 1999. Revenue for the three months period
ended September 30, 2000 decreased 36.6% to $61,415 as compared to
$96,910 for the corresponding period of 1999. The decrease in revenue
for the nine month period resulted from a decrease in volume of
projects received from existing customers during the third quarter of
the fiscal year.
Cost of sales during the nine months period ended September
30, 2000 increased by $14,909 or 3.9% when compared to the similar
period of 1999. During the three months period ended September 2000
the cost of sales decreased by 24.0% to $89,056 as compared to
$117,106 for the corresponding period in 1999. The large decrease in
cost of sales during the third quarter of the fiscal year was due to
the decrease in the revenue volume during that quarter.
Selling and Administrative expenses during the nine months
period ended September 30, 2000 decreased by $9,624 or 7.9%. Most of
this decrease occurred during the third quarter ended September 30,
2000.
Interest income was higher by 17.6% during the nine months
period ended September 30, 2000 when compared to the similar period
of 1999. Interest income during the third quarter of the current
fiscal year was at the same level of income during the similar period
in the previous fiscal year. The majority of the interest income
being recognized is from Data Probe, Inc. and it's note payable 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 $(60,901) during the nine
month period ended September 30, 2000 as compared to a loss of
$(41,218) in the similar period of 1999. The Registrant also
<PAGE>
(Continued)
reported a loss of $(58,120) for the three months period ending
September 30, 2000 as compared to a loss of $(58,683) for the same
period of 1999. The losses in the current fiscal year are mainly due
to the lower volume of sales during the third quarter of the fiscal
year.
CAPITAL EXPENDITURES.
The Registrant incurred no capital expenditures during the current
fiscal year. During the previous fiscal year the Registrant incurred less
then $1,000 in capital expenditures. These expenditures were due to an
upgrade of the Registrant's accounting software. By doing so the
Registrant have complied with the Year 2000 requirements. The registrant
does not anticipate any material capital expenditures during the balance
of fiscal year 2000.
YEAR 2000 COMPLIANCE
The Registrant has diligently studied the impact of the year 2000 on
the software and services it sells as well as its own internal systems.
It was concluded that the software and services provided by the
Registrant are Year 2000 compliant. The Registrant has, also, upgraded its
accounting and payroll systems to be fully compliant under the Year 2000
requirements.
To date, the Registrant has not found any area where a Year 2000
compliance problem, with either its internal systems or outside providers,
could have a material adverse impact on any part of the Registrant's
business operations.
LIQUIDITY AND CAPITAL RESOURCES.
Working capital decreased by 59,884 in the first nine months of 2000
from a negative balance of ($ 56,809) at December 31, 1999 to a negative
balance of ($116,693) at September 30, 2000.
There is no assurance that the stream of sales and revenue from the
Registrant's 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.
<PAGE>
<TABLE>
<CAPTION>
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT
CASH FLOWS
(NOTES A AND B)
(UNAUDITED)
NINE MONTHS ENDED
SEPTEMBER 30,
------------------------
2000 1999
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Cash flows from operating activities:
<S> <C> <C>
Net (loss) ........................................... $ (60,901) $(41,218)
Adjustments to reconcile net (loss) to net
cash used in operating activities:
Depreciation and amortization ...................... 490 1,097
Decrease in accounts receivable .................... 32,801 (3,940)
(Decrease) in prepaid expenses and
other assets .............................. 12 (395)
(Decrease) Increase in accounts payable ............ (5,038) 7,720
(Decrease) Increase in accrued expenses
and taxes ................................. (66,653) (3,701)
Increase in accrued officer's compensation ......... 63,461 --
(Decrease) Increase in customer deposits ........... (98,100) 39,600
(Decrease) in other liabilities .................... -- (2,000)
--------- --------
Net cash flow (used in)
operating activities ............................ $(133,925) $ (2,837)
--------- --------
Cash flows from investing activities:
Repayment of receivable from Data Probe, Inc. ...... 45,706 7,362
--------- --------
Net cash flow provided by
investing activities ............................... 45,706 7,362
--------- --------
Net (Decrease) Increase in cash ...................... (88,219) 4,522
Cash at beginning of period .......................... 90,015 11,071
--------- --------
Cash at end of period ................................ $ 1,796 $ 15,593
========= ========
</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
September 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, the Registrant had
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:
September 30, 2000 December 31, 1999
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Work in process . . . . . . . . $ 1,050 $ 1,050
================== =================
(NOTE F:)
Data Probe, Inc., the majority stockholder, is indebted to
the Registrant for advances made. At September 30, 2000 that indebtedness was
$147,077 and was evidenced by a demand note bearing interest at 2% above the
prime rate.
For the nine months ended September 30, 2000, Data Probe,
Inc. charged the Registrant $234,330 for services rendered and 49,933 in rent
related expenses. In addition, the Registrant charged Data Probe, Inc. in the
same nine months period, $17,487 for interest, and $155,921 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: November 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: November 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: November 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: November 14, 2000
---------------------------------
Yitzhak N. Bachana, President,
Treasurer, Principal Executive
Officer, Principal Financial
Officer, Director
