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 JUNE 30, 1999 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: March 31, 1999 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
JUNE 30 JUNE 30
1999 1998
ASSETS
CURRENT ASSETS
CASH 303,830 47,245
ACCOUNTS RECEIVABLE 104,735 36,496
LESS: ALLOWANCE, BAD DEBTS (13,715) (13,715)
INVENTORY 131,944 244,886
TOTAL 526,795 314,913
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 31,947 32,231
DEPOSITS 2,917 2,917
DEFERRED CHARGES 34,344 34,344
OTHER 6,894 641
TOTAL, OTHER ASSETS 76,102 70,133
TOTAL ASSETS 602,897 385,046
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DI-AN CONTROLS, INC.
LIABILITIES AND STOCKHOLDERS DEFECIT
JUNE 30 JUNE 30
1999 1998
CURRENT LIABILITIES
ACCOUNTS PAYABLE 13,839 48,963
RESERVE, WARRANTIES 10,000 10,000
DEFERRED REVENUE 48,464 40,799
NOTE, PRINCIPAL STOCKHOLDER 1,847,741 1,586,400
DUE TO RELATED PARTIES 3,661,641 3,348,835
TOTAL LIABILITIES 5,581,685 5,034,997
STOCKHOLDERS' DEFICIT
COMMON STOCK 82,641 82,641
CAPITAL, EXCESS OF PAR 1,124,451 1,124,451
ACCUMULATED DEFICIT (6,185,880) (5,857,043)
TOTAL STOCKHOLDERS' DEFICIT (4,978,788) (4,649,951)
TOTAL LIABILITIES
AND STOCKHOLDERS' DEFICIT 602,897 385,046
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DI-AN CONTROLS, INC.
STATEMENT OF OPERATIONS AND STOCKHOLDERS' DEFICIT
JUNE 30 JUNE 30
1999 1998
REVENUE
NET SALES 279,571 397,339
SERVICE REVENUES 10,452 11,134
OTHER INCOME 3,108 0
TOTAL REVENUE 293,131 408,473
COSTS AND EXPENSES
COST OF SALES & SERVICES 189,705 152,618
SELLING EXPENSES 37,402 36,808
GENERAL AND ADMIN EXPENSE 91,564 90,011
INTEREST 116,219 94,336
TOTAL EXPENSES 434,890 373,773
NET GAIN (LOSS) (141,759) 34,700
STOCKHOLDERS BEGINNING DEFICIT (6,044,120) (5,891,744)
STOCKHLDERS' DEF. END OF QUARTER (6,185,879) (5,857,044)
NET GAIN (LOSS) PER SHARe ($0.17) $0.04
MANAGEMENT DISCUSSION
SUMMARY OF RESULTS OF OPERATIONS (UNAUDITED)
Interest expense of $109,953.00 was incurred on short term loans to fund
current operations.
Management has determined that the consequences of its YEAR 2000 issues
would not have any material affect on the results of operations or on the
company's financial condition. This determination is the result of thorough
testing by company staff.
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 June 30, 1999 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 August 19, 1999 By Robert D. Kodis
Robert D. Kodis
President/Treasurer
