SECURITIES AND EXCHANGE COMMISSION
FORM 10Q
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended SEPTEMBER 30, 1998 Commission File Number 2-2996
DI-AN CONTROLS, INC.
Exact Name of Registrant as specified in its charter
MASSACHUSETTS 04-2237138
State of Incorporation I.R.S. Employer Identification Number
530 West Street
Braintree, Massachusetts 02184
Address of principal executive offices Zip Code
Shares of Common Stock outstanding as of: September 30, 1998 826,405 shares
Registrant's telephone number, including area code: (781) 848 - 1299
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, and (2) has been subject to such
filing requirements for the past 90 days.
Yes No X
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DI-AN CONTROLS, INC.
BALANCE SHEET
SEPTEMBER 30 SEPTEMBER 30
1998 1997
ASSETS
CURRENT ASSETS
CASH 51,145 23,263
ACCOUNTS RECEIVABLE 59,351 175,950
LESS: ALLOWANCE, BAD DEBTS (13,715) (13,715)
INVENTORY 275,105 268,630
TOTAL 371,886 454,128
EQUIPMENT AND IMPROVEMENTS
MACHINERY AND EQUIPMENT 63,938 63,938
LEASEHOLD IMPROVEMENTS 0 0
LESS: ACCUM DEPRECIATION (63,938) (63,938)
NET 0 0
OTHER ASSETS
CASH SURRENDER VALUE
OFFICER'S LIFE INSURANCE 32,231 24,181
DEPOSITS 2,917 19,898
DEFERRED CHARGES 34,344 34,344
OTHER 641 641
TOTAL, OTHER ASSETS 70,133 79,064
TOTAL ASSETS 442,019 533,192
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DI-AN CONTROLS, INC.
LIABILITIES AND STOCKHOLDERS DEFECIT
SEPTEMBER 30 SEPTEMBER 30
1998 1997
CURRENT LIABILITIES
ACCOUNTS PAYABLE 47,992 64,862
RESERVE, WARRANTIES 10,000 10,000
DEFERRED REVENUE 27,730 20,256
NOTE, PRINCIPAL STOCKHOLDER 1,586,400 1,741,515
DUE TO RELATED PARTIES 3,408,237 3,162,557
TOTAL LIABILITIES 5,080,359 4,999,190
STOCKHOLDERS' DEFICIT
COMMON STOCK 82,641 82,641
CAPITAL, EXCESS OF PAR 1,124,451 1,124,451
ACCUMULATED DEFICIT (5,845,432) (5,673,090)
TOTAL STOCKHOLDERS' DEFICIT (4,638,340) (4,465,998)
TOTAL LIABILITIES
AND STOCKHOLDERS' DEFICIT 442,019 533,192
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DI-AN CONTROLS, INC.
STATEMENT OF OPERATIONS AND STOCKHOLDERS' DEFICIT
SEPTEMBER 30 SEPTEMBER 30
1998 1997
REVENUE
NET SALES 547,670 522,471
SERVICE REVENUES 19,567 26,132
OTHER INCOME 0 12,473
TOTAL REVENUE 567,237 561,076
COSTS AND EXPENSES
COST OF SALES & SERVICES 195,760 279,882
PRODUCT DEVELOPMENT COSTS 0 1,512
SELLING AND G & A EXPENSE 182,846 197,626
INTEREST 142,319 155,831
TOTAL EXPENSES 520,925 634,851
NET GAIN (LOSS) 46,312 (73,775)
STOCKHOLDERS BEGINNING DEFICIT (4,684,653) (4,392,223)
STOCKHOLDERS' DEF. END OF QUARTER (4,638,341) (4,465,998)
NET GAIN (LOSS) PER SHARE $0.06 ($0.09)
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MANAGEMENT DISCUSSION
SUMMARY OF RESULTS OF OPERATIONS (UNAUDITED)
Interest expense of $142,319 was incurred on short term loans to fund
current operations.
LIQUIDITY
A principal stockholder has loaned the company funds to carry out company
operations.
BASIS OF PRESENTATION
The financial information included herein is unaudited; however, such
information reflects all adjustments (consisting solely of normal recurring
adjustments) which are, in the opinion of management, necessary for a fair
statement of results for the interim periods.
The results of operations for the period ending September 30, 1998, are
not necessarily indicative of the results to be expected for the full year.
SALES OF UNREGISTERED SECURITIES (DEBT OR EQUITY): 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.
DI/AN CONTROLS, INC.
Date November 12, 1998 By
Robert D. Kodis
President/Treasurer
