SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended Commission File Number: 0-10707
December 31, 1998
THERMODYNETICS, INC.
(Exact name of small business issuer as specified in its charter)
Delaware 06-1042505
(State or other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
651 Day Hill Road, Windsor, CT 06095 860-683-2005
(Address of Principal Executive Offices) (Zip Code) (Telephone Number)
- --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report.)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15 of the Exchange Act during the past 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 ___
State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date.
Class Outstanding at Dec. 31, 1998
Common stock $.01 Par Value 13,065,276 Shares
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
INDEX
Page Number
-----------
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet
December 31, 1998 and March 31, 1998........................3
Consolidated Statements of Income and Comprehensive
Income Three Months Ended December 31,
1998 and 1997...............................................4
Consolidated Statements of Income and Comprehensive
Income Nine Months Ended December 31,
1998 and 1997..............................................5
Consolidated Statements of Cash Flows
Nine Months Ended December 31,
1998 and 1997...............................................6
Notes to Consolidated Financial Statements...................7-8
Item 2. Management's Discussion and Analysis........................9-10
PART II OTHER INFORMATION
Item 1. Legal Proceedings.............................................11
Item 2. Changes in Securities.........................................11
Item 3. Defaults Upon Senior Securities...............................11
Item 4. Submission of Matters to a Vote of Security Holders...........11
Item 5. Other Information.............................................11
Item 6. Exhibits and Reports on Form 8-K..............................11
SIGNATURE PAGE ..............................................................12
-i-
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
December 31, March 31,
1998 1998
(Unaudited) (Audited)
<S> <C> <C>
CURRENT ASSETS
Cash $ 2,726 $ 2,023
Accounts Receivable, Net 985,184 1,039,078
Inventories 1,873,666 1,448,420
Prepaid Expenses and Other Current Assets 287,229 240,563
Deferred Income Taxes 100,000 100,000
----------- -----------
Total Current Assets 3,248,805 2,830,084
----------- -----------
PROPERTY , PLANT AND EQUIPMENT
Property, Plant and Equipment - At Cost 9,222,016 8,963,252
Less: Accumulated Depreciation 4,689,760 4,450,814
----------- -----------
Property, Plant, and Equipment - Net 4,532,256 4,512,438
----------- -----------
OTHER ASSETS
Undeveloped Land Held for Investment 118,109 116,593
Intangible Assets - Net of Amortization 118,668 127,623
Officers' Life Insurance 1,129,121 1,022,440
Deposits and other 5,976 12,726
Investment in Unconsolidated Company 68,777 -0-
Marketable Equity Securities, at Market 138,000 392,000
----------- -----------
Total Other Assets 1,578,651 1,671,382
----------- -----------
TOTAL ASSETS $ 9,359,712 $ 9,013,904
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 823,023 $ 912,435
Accrued Taxes and Expenses 132,195 120,831
Current Portion of Long Term Debt 312,799 291,566
Notes Payable - Bank 1,555,669 1,061,747
----------- -----------
Total Current Liabilities 2,823,686 2,386,579
----------- -----------
LONG TERM DEBT 2,145,406 2,366,345
----------- -----------
STOCKHOLDERS' EQUITY
Common Stock, Par Value $.01/Share,
Authorized 25,000,000 shares, issued 13,065,276 shares
At 12/31/98 and 12,569,591 shares at 3/31/98 130,653 125,696
Additional Paid-in Capital 5,434,051 5,411,524
Less: Treasury Stock, at Cost 320,521 320,521
Less: Valuation Reserve for Marketable Equity Securities 276,000 196,000
Retained Earnings (Deficit) (577,563) (759,719)
----------- -----------
Total Stockholders' Equity 4,390,620 4,260,980
----------- -----------
TOTAL LIABILITIES AND $ 9,359,712 $ 9,013,904
STOCKHOLDERS' EQUITY =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
-2-
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED DECEMBER 31,
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Net Sales $ 2,465,222 $ 2,031,411
Cost of Goods Sold 1,844,943 1,502,137
------------ ------------
Gross Profit 620,279 529,274
Selling, General & Administrative Expenses 469,458 388,701
------------ ------------
Income From Operations 150,821 140,573
------------ ------------
Other Income (Expense)
Interest Expense, Net (96,202) (90,245)
Equity in (Loss) of Unconsolidated Company (36,319) -0-
Other - Net (4,785) (6,624)
------------ ------------
Total Other Income (Expense) (137,306) (96,869)
------------ ------------
Income Before Income Taxes 13,515 43,704
Provision for Income Taxes -0- -0-
------------ ------------
Net Income 13,515 43,704
Other Comprehensive Income (Loss),net of tax
Unrealized gains (losses) during the period -0- (52,087)
------------ ------------
-0- (52,087)
------------ ------------
Comprehensive Income $ 13,515 $ (8,383)
============ ============
Earnings per Share-Basic NIL NIL
============ ============
Earnings per Share-Diluted NIL NIL
============ ============
Weighted Average Shares Outstanding- Basic 12,700,091 12,569,646
============ ============
Weighted Average Shares Outstanding- Diluted 15,137,699 15,737,388
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
-3-
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME AND COMPREHENSIVE INCOME
FOR THE NINE MONTHS ENDED DECEMBER 31,
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
------------ ------------
<S> <C> <C>
Net Sales $ 7,763,052 $ 6,446,283
Cost of Goods Sold 5,654,260 4,671,598
------------ ------------
Gross Profit 2,108,792 1,774,685
Selling, General & Administrative Expenses 1,446,651 1,303,840
------------ ------------
Income From Operations 662,141 470,845
------------ ------------
Other Income (Expense)
Interest Expense, Net (292,731) (274,176)
Equity in (Loss) of Unconsolidated Company (36,319) -0-
Realized (Loss) on Sale of Securities (126,580) -0-
Other - Net (24,355) (19,872)
------------ ------------
Total Other Income (Expense) (479,985) (294,048)
------------ ------------
Income Before Income Taxes 182,156 176,797
Provision for Income Taxes -0- -0-
------------ ------------
Net Income 182,156 176,797
Other Comprehensive Income (Loss), net of tax
Unrealized gains (losses) during the period (80,000) 24,500
------------ ------------
(80,000) 24,500
------------ ------------
Comprehensive Income $ 102,156 $ 201,297
============ ============
Earnings per Share-Basic $ .01 $ .01
============ ============
Earnings per Share-Diluted $ 01 $ .01
============ ============
Weighted Average Shares Outstanding- Basic 12,665,721 12,560,778
============ ============
Weighted Average Shares Outstanding- Diluted 15,558,455 15,639,931
============ ============
The accompanying notes are an integral part of these financial statements.
</TABLE>
-4-
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED DECEMBER 31,
(UNAUDITED)
<TABLE>
<CAPTION>
1998 1997
--------- ---------
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 182,156 $ 176,797
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 247,901 256,975
Realized loss on sale of securities 126,580 -0-
Equity in loss of unconsolidated company 36,319 -0-
Changes in operating assets and liabilities:
Increase (decrease) in accounts payable (89,412) (112,759)
Decrease (increase) in prepaid expenses and (39,920) (31,710)
other assets
Decrease (increase) in accounts receivable 53,894 224,853
Decrease (increase) in inventories (425,246) (289,956)
Increase (decrease) in accrued expenses 16,848 (14,092)
--------- ---------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
109,120 210,108
--------- ---------
INVESTING ACTIVITIES;
Purchases of property, plant and equipment (258,764) (183,830)
Increase in undeveloped land held for investment (1,516) (1,482)
Investment in unconsolidated company (105,092) - 0 -
Increase in life insurance premiums receivable (106,681) (188,908)
Sale of marketable securities 47,420 -0-
--------- ---------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
(424,633) (374,220)
--------- ---------
FINANCING ACTIVITIES
Sale of common stock 22,000 -0-
Principal payments on debt obligations (220,939) (449,008)
Net proceeds from revolving and term debt 515,155 613,174
--------- ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES 316,216 164,166
--------- ---------
INCREASE (DECREASE) IN CASH 703 54
CASH AT BEGINNING OF PERIOD 2,023 2,550
--------- ---------
CASH AT END OF PERIOD $ 2,726 $ 2,604
========= =========
</TABLE>
The accompanying notes are an integral part of these financial statements
-5-
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1: 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 period. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
The results of operations for the three and nine months ended December 31, 1998
and December 31, 1997 are not necessarily indicative of the results to be
expected for the full year.
NOTE 2: INVENTORIES
Inventories consist of the following at December 31:
1998 1997
---------- ----------
Raw materials $1,336,239 $ 956,375
Work-in-process 299,895 208,625
Finished goods 237,532 355,522
---------- ----------
$1,816,504 $1,520,522
========== ==========
NOTE 3: EARNINGS PER SHARE
The Company has adopted "Statement of Accounting Standards No. 128,
Earnings per Share" (SFAS 128). Earnings per share for the three and nine months
ended December 31, 1998 and 1997 have been computed in accordance with this
pronouncement, based on the weighted average of outstanding shares during the
periods. The weighted average number of shares outstanding used in the
calculations are as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Dec. 31 1998 Dec 31, 1997 Dec. 31, 1998 Dec 31, 1997
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
Weighted Average Shares Outstanding
(Basic) 12,700,091 12,569,646 12,665,721 12,560,778
Assumed Conversion of Stock 2,437,609 3,167,742 2,902,734 3,079,153
---------- ---------- ---------- ----------
Weighted Average Shares Outstanding
(Diluted) 15,137,699 5,737,388 15,558,455 15,639,931
---------- ---------- ---------- ----------
</TABLE>
NOTE 4: INCOME TAXES
The Company adopted "Statement of Accounting Standards No. 109, Accounting
For Income Taxes" (SFAS 109) effective April 1, 1994. The statement requires
that deferred income taxes reflect the future tax consequences of differences
between the tax bases of assets and liabilities and their bases for financial
reporting purposes. In addition, SFAS 109 requires the recognition of future tax
benefits, such as net operating loss carryforwards, to the extent that
realization of such benefits are more likely than not.
The primary components of the Company's deferred tax assets and liabilities
and the related valuation allowance are as follows:
-6-
<PAGE>
Assets:
Uniform capitalization adjustment $ (1,864)
Net operating loss carryforward 450,452
Other 13,636
---------
462,224
Liabilities:
Accelerated depreciation (7,603)
---------
(7,603)
---------
Net deferred tax asset before valuation allowance 469,826
Less: Valuation allowance (369,826)
---------
Net deferred tax asset $ 100,000
=========
The Company continually reviews the adequacy of the valuation allowance and
recognizes a benefit from income taxes only when reassessment indicates that it
is more likely than not that the benefits will be realized. In fiscal 1998 the
Company reduced the valuation allowance applied against the net operating loss
carryforwards, based upon tax planning strategies and future income projections.
At December 31, 1998, the Company had net operating loss carryforwards of
$1,324,000 expiring from 2001 to 2007. In addition, unused tax credits of
$144,000 expire from 1999 to 2001 and are also being carried forward.
NOTE 5: CASH FLOW INFORMATION AND NON CASH INVESTING ACTIVITIES
The following supplemental information is disclosed pursuant to the
requirements of Financial Accounting Standards Board's "Statement of Accounting
Standards No 95, Statement of Cash Flows".
9 Months Ended
12/31/98 12/31/97
-------- --------
Cash payments for interest $ 292,731 $ 274,176
Issuance of common stock to 401(k) plan $ 5,483 $ 8,423
Valuation reserve to reflect long-term equity
securities at market $ (80,000) $ (24,500)
NOTE 6: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The Company has adopted "Statement of Accounting Standards No. 130,
"Reporting Comprehensive Income" (SFAS 130), which establishes standards for
reporting and display of comprehensive income and its components (i.e. revenues,
expenses, gains and losses) in a complete set of financial statements. All prior
periods have been restated to conform to the provisions of this statement.
NOTE 7: INVESTMENT IN FOREIGN COMPANY
In August 1998 the Company advanced $100,000 to Conforma, n.v., a
closely-held Belgian company engaged in the processing of pharmaceutical related
products. It is anticipated that this advance will subsequently be converted
into a long-term equity investment. Accordingly, during the quarter ended
December 31, 1998 the Company reduced the carrying value of the advance by
$36,319, representing its allocated share of Conforma's loss for the most recent
quarterly period.
-7-
<PAGE>
The advance was financed with funds generated by use of a margin account
with a financial services company. The margined securities suffered declines in
market value resulting in margin calls made on the Company. In order to meet
these obligations, in September 1998 the Company made cash payments aggregating
$22,000 and sold some of its holdings. The net proceeds from the liquidations of
the securities were $47,420, resulting in a realized loss of $126,580, which is
included in other expense. In December 1998, additional margin calls resulted in
a cash payment of $11,000 to reduce the margin debt. As of December 31, 1998,
the margin obligation was reduced to approximately $21,000, which is expected to
be fully paid during the quarter ending March 1999.
-8-
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS
Net sales of $2,495,222 for the three months ended December 31, 1998 declined
slightly from the prior quarter's record level of $2,665,374. Compared to the
same quarter of the prior year, sales increased by $433,811 or 21%. The
company's third fiscal quarter has historically exhibited lower sales than the
previous quarterly periods due to seasonal construction industry building
patterns which create demands for heating and air conditioning equipment. For
the nine-month period, sales of $7,763,052 represented an increase of $1,316,769
or 20% over the first three quarters of the prior year.
The large increase in sales over the prior year continues the trend begun
towards the end of the prior fiscal year. Several factors are responsible for
this growth including a return to more seasonal temperature patterns across the
United States, increased demand from existing customers and the successful
introduction of new product applications for the Company's tubing product line.
The Company's core business of manufacturing water source coaxial coils to OEM
heat pump manufacturers has continued to grow as a result of both strong levels
of domestic commercial and residential construction and increased market share
garnered by the Company's larger customers. Other established markets have shown
strong growth during the entire year, including swimming pool heat pumps, marine
applications and biomedical products.
Cost of sales aggregated 75% of net sales for the current quarter as compared to
74% of sales for the same period last year. For the nine months of both the
current and prior year, cost of sales was 73% of sales. As a result of slightly
lower production levels during the third quarter, indirect manufacturing costs
per unit increased, as fewer units were produced to absorb manufacturing
overhead expenses. The costs of direct materials, represented primarily by
copper and copper alloy tubing, and direct labor have remained stable for both
the current and past year, which has helped to maintain gross margins. Minor
cost increases have been offset by increased efficiencies, further demonstrating
the benefits of introducing cellular manufacturing and just-in-time production
techniques to the shop floor.
Selling, general and administrative expenses increased by $80,757 (20%) for the
three months and $142,811 (11%) for the nine-month period and compared to the
prior year results. Additions to staffing in engineering, customer service and
other support services accounted for a portion of the increase in costs.
Compensation adjustments and higher costs for employee fringe benefits also
contributed to the increase over the prior year periods.
Operating income increased by $10,248 and $191,296 for the three and nine-month
periods of 1999, compared to the same periods of the prior year. Higher levels
of sales for all periods generated significant increases in gross profit, which
offset the large increase in operating expenses.
Interest expense increased in absolute terms, but decreased as a percentage of
net sales for the current year periods as compared to fiscal 1998. Higher
average levels of revolving debt were outstanding in 1999, resulting from the
need to fund higher inventory levels necessary to support increased production
activities. However, a reduction in the prime rate created a lower effective
borrowing rate, which served to reduce debt service payments during the current
year periods.
In August 1998 the Company advanced $100,000 to Conforma, n.v., a Belgian
company engaged in the processing of pharmaceutical related products. It is
anticipated that this advance will subsequently be converted into a long-term
equity investment. During the quarter ended December 31, 1998 the Company
reduced the carrying value of the advance by $36,315, representing its allocated
share of
-9-
<PAGE>
Conforma's loss for the most recent quarterly period. This amount is reflected
as other expense during the current quarter.
In September 1998 the Company liquidated certain marketable equity securities
that were subject to a margin agreement with a financial services company.
Consequently, a loss of $126,580 was charged to operations during that current
quarter, representing the difference between the proceeds of the sales and the
cost basis of the securities. No such transactions occurred during the current
period.
Other comprehensive income (loss) adjustments for the periods represents
unrealized holding gains (losses) for marketable equity securities that are held
by the Company as long-term investments.
LIQUIDITY AND CAPITAL RESOURCES
Working capital at December 31, 1998 was $425,119 compared to $443,505 at March
31, 1998 and $687,947 at December 31, 1997. During the current nine month
period, current assets increased by $418,721, largely due to increases in
inventories required to support higher production levels. Concurrently, current
liabilities increased by $437,107 consisting primarily of additional borrowings
under the revolving line of credit. These advances were used to finance the
additional investments in operating assets and capital expenditures during the
quarter.
Net cash provided by operating activities totaled $109,120 for the current
nine-month period compared to net cash generated of $210,108 in 1997.
Inventories and other current assets increased by a total of $465,162 during the
period, reflecting the substantial increase in shipments over the prior year.
Accounts receivable decreased by $53,894 over the same period, believed to
reflect a timing difference as the average balance of receivables has also
increased as a function of significantly higher sales in fiscal 1999. Net income
from operating activities for the current nine months was $345,051, or 4% of net
sales, after adding back non-operating charges for losses of $162,895 relating
to long-term investments. For the same period last year, income from operations
totaled $176,797, or 3% of net sales. Cash generated from operations was used to
fund a portion of the increase in operating assets, with the balance financed
through the revolving debt facility.
Cash used in investing activities increased from $374,220 in fiscal 1997 to
$424,633 for the nine months ended December 1998. In August 1998 the Company
completed a long-term investment in a foreign company which was financed with
funds generated by use of a margin account with a financial services company. To
meet the margin calls made on the Company in September and December 1998, the
Company made cash payments aggregating $33,000 and sold a portion of its
holdings in another long-term equity investment. The net proceeds from these
sales were $47,420.
Capital expenditures increased by $74,934 over the prior year period. Additional
machinery and equipment was added during the year to meet increased production
requirements. Also, certain enhancements and upgrades to the Company's
information processing systems were completed in fiscal1999. As a result, the
Company's internal systems are now believed to be year 2000 compliant.
Communications with major suppliers and customers indicate that their programs
in this area are progressing and the Company does not anticipate any problems
associated with year 2000 issues at this time. Anticipated purchases of
production equipment for the balance of the year and fiscal year 2000 are
expected to run slightly higher than the prior year due to the need to add
production capacity to support higher sales and shipping levels.
Cash provided by financing activities totaled $316,216 for the current nine
months compared to $164,166 in the prior year. The revolving debt facility was
used to finance additions to inventories, capital projects and other equipment
purchases during the period. In October 1998 the Company's bank increased the
maximum borrowings available under the revolving line of credit and also
authorized a new facility to finance capital expenditures. The revised debt
structure is expected to provide sufficient resources to fund the Company's
requirements for the foreseeable future.
-10-
<PAGE>
Inflation and other cost increases continue to play a minor role in the
Company's day to day operations. Improvements in manufacturing processes and
procedures, coupled with small increases in purchased goods and services have
enabled the Company to maintain its current cost structure. Stability in the
precious metals markets has also enabled the Company to continue to purchase raw
materials at competitive prices for conversion into products shipped to
customers. As the Company continues its conversion to cellular manufacturing and
just-in time manufacturing techniques, further cost reductions are anticipated
which should offset future effects of inflation for the balance of the fiscal
year.
FORWARD LOOKING STATEMENTS
This quarterly report contains certain forward-looking statements regarding the
Company, its business prospects and results of operations that are subject to
certain risks and uncertainties posed by many factors and events that could
cause the Company's actual business, prospects and results of operations to
differ materially from those that may be anticipated by such forward-looking
statements. Factors that may affect such forward-looking statements include,
without limitation: the Company's ability to successfully and timely develop and
finance new projects, the impact of competition on the Company's revenues, and
changes in unit prices, supply and demand for the Company's tubing products
especially in applications serving the commercial, industrial and residential
construction industries.
When used words such as "believes," "anticipates," "expects," "intends" and
similar expressions are intended to identify forward-looking statements, but are
not the exclusive means of identifying forward-looking statements. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this report. The Company undertakes no obligation
to revise any forward-looking statements in order to reflect events or
circumstances that may subsequently arise. Readers are urged to carefully review
and consider the various disclosures made by the Company in this report, news
releases, and other reports filed with the Securities and Exchange Commission
that attempt to advise interested parties of the risks and factors that may
affect the Company's business.
-11-
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
There are no material legal proceedings known or threatened against the
Company.
Item 2. Change in Securities.
No class of registered securities of the Company have been materially
modified, and no class of registered securities have been materially limited or
qualified by the issuance or modification of any other class of securities of
the Company.
Item 3. Defaults Upon Senior Securities.
There have been no defaults of any terms of the Company's securities.
Item 4. Submission of Matters to a Vote of Security Holders.
At the annual meeting of shareholders of the Company held on December 4,
1998, Robert A Lerman, John F Ferraro and Anthony C Mirabella were elected
directors of the Company, to serve until their successors are elected and
qualified.
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
(a) No Exhibits have been submitted with this report, except Exhibit 27.
(b) No reports on Form 8-K were filed during the quarter for which this
report is filed.
-12-
<PAGE>
THERMODYNETICS, INC. AND SUBSIDIARIES
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
THERMODYNETICS, INC.
Date: February 12, 1999 By: /s/ Robert A. Lerman
------------------------------------------
Robert A. Lerman
President
Date: February 12, 1999 By: /s/ Robert I. Lieberman
------------------------------------------
Robert I. Lieberman
Treasurer and Chief Financial Officer
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Company's Form 10-QSB for the period ended as stated below and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> SEP-30-1998
<PERIOD-END> DEC-31-1998
<CASH> 2,726
<SECURITIES> 0
<RECEIVABLES> 985,184
<ALLOWANCES> 0
<INVENTORY> 1,873,666
<CURRENT-ASSETS> 3,248,805
<PP&E> 4,532,256
<DEPRECIATION> 4,689,760
<TOTAL-ASSETS> 9,359,712
<CURRENT-LIABILITIES> 2,823,686
<BONDS> 0
0
0
<COMMON> 130,653
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 9,359,712
<SALES> 2,465,222
<TOTAL-REVENUES> 2,465,222
<CGS> 1,844,943
<TOTAL-COSTS> 469,458
<OTHER-EXPENSES> 137,306
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (96,202)
<INCOME-PRETAX> 13,515
<INCOME-TAX> 0
<INCOME-CONTINUING> 13,515
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,515
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
