<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB/A
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
Commission File No.
0-2532
FIFTH DIMENSION INC.
-----------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its Charter)
New Jersey 21-0717490
------------------------ ------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
801 New York Avenue, Trenton, New Jersey 08638
-----------------------------------------------------------------------------
(Address of Principal Executive Office) (Zip Code)
Issuer's Telephone Number, Including Area Code (609) 393-8350
------------------------
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
------- -------
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
As of June 30, 1995 the Registrant had outstanding 1,093,636 shares of
Common Stock $.33 1/3 par value.
<PAGE>
FIFTH DIMENSION INC.
--------------------
TABLE OF CONTENTS
-----------------
PERIOD ENDED JUNE 30, 1995
--------------------------
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART 1 - FINANCIAL INFORMATION
------------------------------
Item 1 - Financial Statements
-----------------------------
Balance Sheet 1.
Statement of Operations and Retained Earnings 2.
Statement of Cash Flows 3.
Notes to Financial Statements 4.
Item 2 - Management's Discussion and Analysis of
------------------------------------------------
Financial Condition and Results of Operations 5.
---------------------------------------------
</TABLE>
<PAGE>
-1-
FIFTH DIMENSION INC.
--------------------
BALANCE SHEET
-------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
JUNE 30, 1995
-------------
<S> <C>
ASSETS
------
CURRENT ASSETS:
Cash and Short-Term Investments $ 109,268.
Accounts Receivable - Net 148,122.
Inventories 1,128,222.
Prepaid Expenses 52,538.
Prepaid Income Taxes -
---------
Total Current Assets 1,438,150.
----------
PROPERTY, PLANT AND EQUIPMENT - Net of Accumulated
Depreciation 664,626.
----------
PATENT COSTS, LESS ACCUMULATED AMORTIZATION 20,300.
DEFERRED INCOME TAXES 91,674.
----------
TOTAL ASSETS $2,214,750.
----------
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Notes Payable - Current Portion $ 50,000.
Accounts Payable 147,517.
Accrued Expenses and Payroll Taxes 9,422.
Accrued Compensation and Vacation 133,042.
Income Taxes -
---------
Total Current Liabilities 339,981.
----------
LONG TERM LIABILITIES:
Notes Payable - Long Term Portion 108,333.
----------
DEFERRED INCOME TAXES 16,201.
----------
TOTAL LIABILITIES 464,515.
----------
STOCKHOLDERS' EQUITY:
Common Stock - ($.33 1/3 Par Value) 364,936.
Additional Paid-In Capital 403,663.
Treasury Stock - At Cost (604.)
Retained Earnings 982,240.
----------
TOTAL STOCKHOLDERS' EQUITY 1,750,235.
----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,214,750.
-----------
</TABLE>
<PAGE>
-2-
FIFTH DIMENSION INC.
--------------------
STATEMENT OF OPERATIONS AND RETAINED EARNINGS
---------------------------------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
QUARTER SIX MONTHS QUARTER SIX MONTHS
ENDED ENDED ENDED ENDED
JUNE 30, 1995 JUNE 30, 1994
-------------------------- ------------------------
<S> <C> <C> <C> <C>
NET SALES $ 738,130. $1,644,691. $ 921,198. $1,948,912.
COST OF SALES 585,630. 1,293,088. 644,563. 1,361,774.
----------- ----------- ----------- -----------
GROSS PROFIT ON SALES 152,500. 351,603. 276,635. 587,138.
OPERATING EXPENSES 312,735. 629,196. 249,103. 493,415.
INTEREST EXPENSE 4,217. 8,592. 3,734. 7,932.
----------- ----------- ----------- -----------
OPERATING INCOME (LOSS) (164,452.) (286,185.) 23,798. 85,791.
OTHER INCOME 7,838. 12,460. 6,464. 6,348.
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE TAXES (156,614.) (273,725.) 30,262. 92,139.
PROVISION FOR INCOME TAXES
(BENEFIT) (47,193.) (82,474.) 10,471. 31,880.
----------- ----------- ----------- -----------
NET INCOME (LOSS) (109,421.) (191,251.) 19,791. 60,259.
RETAINED EARNINGS AT BEGINNING
OF PERIOD 1,091,661. 1,173,491. 1,115,277. 1,074,809.
----------- ----------- ----------- -----------
RETAINED EARNINGS AT END OF
PERIOD $ 982,240. $ 982,240. $1,135,068. $1,135,068.
----------- ----------- ----------- -----------
NET INCOME (LOSS) PER COMMON $ (.10) $ (.17) $ .02 $ .06
SHARE ----------- ----------- ----------- -----------
WEIGHTED AVERAGE OF COMMON
SHARES OUTSTANDING 1,093,636. 1,093,636. 1,093,636. 1,093,636.
----------- ----------- ----------- -----------
</TABLE>
<PAGE>
-3-
FIFTH DIMENSION INC.
--------------------
STATEMENT OF CASH FLOWS
-----------------------
(UNAUDITED)
-----------
<TABLE>
<CAPTION>
SIX MONTHS ENDED JUNE 30,
1995 1994
---------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
------------------------------------
Net Income (Loss) $(191,251.) $ 60,259.
---------- ----------
ADJUSTMENTS TO RECONCILE NET INCOME (LOSS) TO NET
-------------------------------------------------
CASH PROVIDED BY OPERATING ACTIVITIES:
--------------------------------------
Depreciation Expense 60,000. 53,077.
(Increase) Decrease in Accounts Receivable 585,126. 49,805.
(Increase) Decrease in Inventory (298,315.) 50,924.
(Increase) Decrease in Prepaid Expenses and Taxes (16,084.) (593.)
(Increase) Decrease in Deferred Income Taxes (72,924.) (44,920.)
Increase (Decrease) in Accounts Payable (60,540.) 3,330.
Increase (Decrease) in Accrued Expenses and Taxes (96,804.) 29,881.
---------- ----------
100,459. 141,504.
---------- ----------
Net Cash Provided (Used) by Operating Activities (90,792.) 201,763.
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
------------------------------------
Capital Expenditures (47,898.) (72,039.)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
------------------------------------
Proceeds from Loans - -
Reduction in Notes Payable (25,000.) (121,000.)
---------- ----------
Net Cash Provided (Used) by Financing Activities (25,000.) (121,000.)
---------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH
----------------------------------------
EQUIVALENTS (163,690.) 8,724.
-----------
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 272,958. 166,003.
------------------------------------------------ ---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 109,268. $ 174,727.
------------------------------------------ ---------- ----------
</TABLE>
<PAGE>
-4-
FIFTH DIMENSION INC.
--------------------
NOTES TO FINANCIAL STATEMENTS
-----------------------------
JUNE 30, 1995
-------------
NOTE #1 INVENTORIES
-----------
On an interim basis, the cost of goods sold and resulting inventory
valuation is calculated using the gross profit method. A physical
inventory is taken December 31 of each year and a distribution into
raw materials, work in process and finished goods is only available at
that time.
<PAGE>
-5-
FIFTH DIMENSION INC.
--------------------
PERIOD ENDED JUNE 30, 1995
--------------------------
PART 1 - ITEM 2
---------------
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
--------------------------------------------------------------------------
OPERATIONS
----------
The Registrant reported a net loss of $109,421 and $191,251 for the second
quarter and first half of 1995, respectively. This compares with 1994 income of
$19,791 and $60,259 for the comparative periods. The current year losses are
primarily a result of production delays and problems on a major contract which
resulted in lower sales for the current periods. Sales levels for 1995 were
$738,130 for the quarter and $1,644,691 for the first half versus 1994 sales of
$921,198 and $1,948,912, respectively. It is anticipated that the sales lost
due to the production delays will be recovered by the Registrant over the
balance of the contract period in 1995 and 1996. The declines in gross profit
for the comparative periods are a result of inadequate coverage of fixed
manufacturing overhead expenses at the lower sales levels. Operating expenses
increased during both comparative periods as a result of increases in technical
and administrative salaries and marketing expenses. Interest costs continue to
decline as long-term debt is being reduced and the income tax benefits resulting
from the operating losses were provided for based on statutory rates.
The financial condition of the Registrant was impacted by the current loss as
working capital declined by $278,810 for the six month period. The production
delay and purchases of materials for the future needs of this contract
contributed to an inventory increase of $298,315 during the first half, which
was supported by reductions in accounts receivable and cash balances. The
inventory increase is expected to reverse in future months as production returns
to anticipated levels. The Registrant purchased fixed assets of $47,898 during
the first half of 1995, while continuing to reduce outstanding debt by $25,000.
The Registrant anticipates an improvement in operating results for the second
half of 1995 as production returns to normal levels.
No other changes have occurred which would have a material effect on the
liquidity, financial condition or results of operations of the Registrant.
<PAGE>
-6-
FIFTH DIMENSION INC.
--------------------
SIGNATURES
----------
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
FIFTH DIMENSION INC.
--------------------
(Registrant)
DATE August 18, 1995 BY /s/ Craig Ebner
----------------------- ---------------------------------------------
Craig Ebner
President
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This Schedule contains summary financial information extracted from Fifth
Dimension Inc. Balance Sheet (Unaudited) as of June 30, 1995, Statement of
Operations and Related Earnings (Unaudited) for the Quarter Ended June 30, 1995.
Statement of Cash Flows (Unaudited) for Six Months Ended June 30, 1995 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 109,268
<SECURITIES> 364,936
<RECEIVABLES> 148,122
<ALLOWANCES> 0
<INVENTORY> 1,128,222
<CURRENT-ASSETS> 1,438,150
<PP&E> 664,626
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,214,750
<CURRENT-LIABILITIES> 339,981
<BONDS> 0
<COMMON> 364,936
0
0
<OTHER-SE> 1,385,299
<TOTAL-LIABILITY-AND-EQUITY> 2,214,750
<SALES> 738,130
<TOTAL-REVENUES> 745,968
<CGS> 585,630
<TOTAL-COSTS> 898,365
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,217
<INCOME-PRETAX> (156,614)
<INCOME-TAX> (47,193)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (109,421)
<EPS-PRIMARY> (.10)
<EPS-DILUTED> 0
</TABLE>
