UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q AMENDED
AMENDED TO ADD SCHEDULE EX-27
AMENDED QUARTERLY REPORT UNDER SECTION 11 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1995 - AMENDED
Commission File Number Q-3052
Diapulse Corporation of America
(Exact name of registrant as specified on its charter)
Delaware
(State or other jurisdiction of)
incorporation of organization)
321 East Shore Road
Great Neck, New York
(Address of principal offices)
13-5671991
(I.R.S. Employer
Identification Number)
11023
(Zip Code)
Registrants telephone number,
including area code (516) 466-3030
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 X No
As of June 30, 1995 there were 3,907,732 shares of common stock outstanding.
Accountants' Compilation Report
To the Board of Directors
Diapulse Corporation of America and Subsidiary
Great Neck, New York
We have compiled the accompanying balance sheet of Diapulse Corporation of
America and Subsidiary (a Delaware corporation) as of June 30, 1995, and the
related statements of income for the six months and the three months ended
June 30, 1995 and 1994, and cash flows for the six months ended June 30, 1995
and 1994 in accordance with Statements on Standards for Accounting and Review
Services issued by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
Management has elected to omit substantially all of the disclosures required
by generally accepted accounting principles. If the omitted disclosures were
included in the financial statements , they might influence the user's
conclusions about the Company's financial position, results of operations and
cash flows. Accordingly, these financial statements are not designed for
those who are not informed about such matters.
The balance sheet for the year ended December 31, 1994, were audited by us,
and we expressed an unqualified opinion on it in our report dated March 16,
1995, but we have not performed any auditing procedures since that date.
SCHWAEBER SLOANE SCHULMAN AND CO., P.C.
Great Neck, New York
August 7, 1995
DIAPULSE CORPORATION OF AMERICA AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,
1995 Dec. 31,
Unaudited 1994
---------- ----------
A S S E T S
Current assets:
Cash and cash equivalents $ 263,658 $ 148,503
Commissions advances 374,942 379,713
Accounts receivable, net of allowances
for doubtful accounts of $60,000 at
June 30, 1995 and December 31, 1994 956,558 856,005
Inventories 558,296 533,055
------------ -----------
Total current assets 2,153,454 1,917,276
Equipment, net of accumulated
depreciation and amortization of
$116,983 at June 30, 1995 and
$111,248 at December 31, 1994 166,945 170,880
Other assets - sundry 19,424 27,254
------------ -----------
Total Assets $2,339,823 $2,115,410
============ ===========
See accountants' compilation report
DIAPULSE CORPORATION OF AMERICA AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, Dec. 31,
1995 1994
------------ -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 530,831 $ 489,340
Due to officers and former officer 609,020 612,948
Accrued income taxes 70,616 -
Bank line of credit - 19,000
------------ -----------
Total current liabilities 1,210,467 1,121,288
Due to officer- long term portion 977,350 977,350
------------ -----------
Total liabilities 2,187,817 2,098,638
------------ -----------
Stockholders' equity:
Common stock - $.025 par value;
authorized 6,000,000 shares,
issued 3,907,732 shares 97,593 97,593
Additional paid-in capital 2,129,730 2,132,744
Accumulated deficit (2,072,989) (2,204,223)
------------ -----------
154,334 26,114
Less: Treasury stock of 1,328 shares
at June 30, 1995 and 5,328 shares
at December 31, 1994, at cost 2,328 9,342
------------ -----------
Total stockholders' equity 152,006 16,772
------------ -----------
Total liabilities and Stockholders' Equity $2,339,823 $2,115,410
============ ============
See accountants' compilation report
DIAPULSE CORPORATION OF AMERICA AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ending Three Mos Ending
June 30 June 30,
1995 1994 1995 1994
Net sales and rentals (see
management discussion note) $ 838,602 $ 707,578 $ 583,349 $ 241,251
Cost of sales and rentals 18,981 25,954 8,112 10,716
----------- ----------- ----------- -----------
Gross profit 819,621 681,624 575,237 230,535
----------- ----------- ----------- -----------
Operating expenses:
Selling, general and
administrative 519,349 430,865 330,176 204,165
Interest expense 88,683 65,976 44,355 32,941
----------- ----------- ----------- -----------
Total operating expenses 608,032 496,841 374,531 237,106
----------- ----------- ----------- -----------
Operating profit 211,589 184,783 200,706 (6,571)
Interest and other income 1,005 559 568 310
----------- ----------- ----------- -----------
Net income befor
provision for income taxes 212,594 185,342 201,274 (6,261)
Provision for income taxes
income taxes 81,360 - 81,360 -
----------- ----------- ----------- -----------
Net Income $ 131,234 $ 185,342 $ 119,914 $ (6,261)
=========== =========== =========== ===========
Earnings Per Share $ 0.034 $ 0.047 $ 0.031 $ (0.002)
Weighted Average Number Of
Common Shares Outstanding 3,907,732 3,903,732 3,907,732 3,903,732
See accountants' compilation report
DIAPULSE CORPORATION OF AMERICA AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ending
June 30,
1995 1994
------------ -----------
Cash flows from operating activities:
Net income $ 131,234 $ 185,342
------------ -----------
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 5,735 5,732
Changes in operating assets and liabilities:
Decrease in accounts receivable (100,553) (138,727)
Decrease in commission advance 4,771
Increase in inventories (25,241) (63,560)
(Increase) decrease in other assets 7,830 (5,540)
Increase in accounts payable and
accrued expenses 41,491 31,283
Increase in accrued income taxes 70,616 -
----------- -----------
Total adjustments 4,649 (170,812)
Net cash provided by operating activities 135,883 14,530
----------- -----------
Cash flows from investing activities:
Capital expenditures (1,800) (1,132)
Proceeds from treasury stock 7,014 2,455
Additional paid-in-capital (3,014) (355)
----------- -----------
Net cash provided by investing activities 2,201 968
----------- -----------
Cash flows from financing activities:
Net decrease in due to officers' and former officer (3,928) 27,849
Net borrowings under bank line of credit (19,000) -
----------- -----------
Net cash provided (used) by financing activities (22,928) 27,849
----------- -----------
Net increase in cash and cash equivalents 115,155 43,347
Cash and cash equivalents at the beginning of year 148,503 65,758
----------- -----------
Cash and cash equivalents on June 30, $ 263,658 $ 109,105
=========== ===========
See accountants' compilation report
DIAPULSE CORPORATION OF AMERICA AND SUBSIDIARY
SELECTED INFORMATION -- SUBSTANTIALLY ALL DISCLOSURES REQUIRED
BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ARE NOT INCLUDED
FOR THE SIX MONTHS ENDED JUNE 30, 1995
1. Basis of presentation
The consolidated balance sheets of Diapulse Corporation of America and
Subsidiary as of June 30, 1995, and December 31, 1994 and the related
consolidated statements of operations for the three months and six months
ended June 30, 1995 and cash flows for the six months ended June 30, 1995
and 1994, have been prepared by the Company without audit. The balance sheet
for the year ended December 31, 1994, was audited by us, and we expressed an
unqualified opinion on it in our report dated March 16, 1995, but we have
not performed any auditing procedures since that date. In the opinion of
management, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of operations and
changes in cash flows at June 30, 1995 and for all periods presented have
been made. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been omitted. It is suggested that these
consolidated financial statements be read in conjunction with the
consolidated financial statements and notes thereto included in the Company's
December 31, 1994 annual report to shareholders.
There have been no changes of significant accounting policies since December
31, 1994. Results of operations for the six month period are not necessarily
indicative of results of operations for the corresponding years.
2 Inventories
June 30, Dec. 31,
1995 1994
----------- -----------
Parts, components and subassemblies $ 276,395 $ 316,317
Finished goods 328,901 263,738
Finished goods, rental and loaner machines 202,349 202,349
----------- -----------
Total inventories 807,645 782,404
Less: Inventories in fixed assets (202,349) (202,349)
----------- -----------
Total inventories for resale 605,296 580,055
Less: Inventory reserve 47,000 47,000
----------- -----------
Total Inventories $ 558,296 $ 533,055
=========== ===========
DIAPULSE CORPORATION OF AMERICA AND SUBSIDIARY
MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of operations
Net sales for the current six months increased by $131,024 to $838,602 from last
year's comparable six months of $707,578. This increase is due to an increase
in the amount of sales and rentals
Operating expenses for the current six months increased to $608,032 from
last year's comparable six months of $496,841. Interest expense represents
the accrual of interest on the debt to officers, former officer and employees.
Liquidity and capital resources
As of June 30, 1995, the Company had working capital of approximately
$942,987 and a current ratio of 1.779 to 1. This represents an increase in
working capital since December 31, 1994 of $146,999.
The Company expanded its distribution channels in the United States and
therefore realized an improvement in revenues and profitability. The
Company intends to fund its future operations, pursue research and
development of current and future products and expand operations
through product rental and sales.
EXHIBIT INDEX
exhibit 27
SIGNATURES
Pursuant to the requirements of Section 11 or 15 (d) of the Securities and
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
DIAPULSE CORPORATION OF AMERICA
Registrant
By \\S Jesse Ross
- ------------------------------------------
Jesse Ross, President
By \\S Gladys Ross
- -------------------------------------------
Gladys Ross, Acting Corporate Secretary
Date: November 2, 1995
See accountants' compilation report
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 263,658
<SECURITIES> 0
<RECEIVABLES> 1,016,558
<ALLOWANCES> 60,000
<INVENTORY> 558,296
<CURRENT-ASSETS> 2,153,454
<PP&E> 283,928
<DEPRECIATION> 116,983
<TOTAL-ASSETS> 2,339,823
<CURRENT-LIABILITIES> 1,210,467
<BONDS> 0
<COMMON> 97,593
0
0
<OTHER-SE> 54,413
<TOTAL-LIABILITY-AND-EQUITY> 2,339,823
<SALES> 838,602
<TOTAL-REVENUES> 839,607
<CGS> 18,981
<TOTAL-COSTS> 18,981
<OTHER-EXPENSES> 519,349
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 88,683
<INCOME-PRETAX> 212,594
<INCOME-TAX> 81,360
<INCOME-CONTINUING> 131,234
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 131,234
<EPS-PRIMARY> 0.034
<EPS-DILUTED> 0.034
</TABLE>
