SECURITIES & EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended February 28, 1998 Commission File Number 0-9966
_________________________________________________________________
HABER, INC.
Delaware 22-2305613
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
470 Main Road, Towaco, New Jersey 07082
________________________________________
(Address of principal executive offices)
(973) 263-0990
(Registrant's telephone number, including area code)
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 proceeding 12 months and (2) has been subject to such filing
requirements for the past 90 days.
X Yes No
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the close of the period covered by this report:
47,480,800 shares of Common Stock, $.01 par value.
[S]
PART I - FINANCIAL INFORMATION
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
BALANCE SHEET.
(UNAUDITED)
ASSETS
<TABLE>
<S> <C> <C>
February 28, May 31,
1998 1998
CURRENT ASSETS
Cash in banks and on hand $ 5,165 $ 6,280
Inventory EMP parts 12,000 12,000
------- --------
7,165 18,280
------- --------
PROPERTY AND EQUIPMENT
Equipment 332,958 329,326
Furniture and fixtures 99,514 99,514
------- -------
432,472 428,840
Less: Accumulated depreciation
amortization 425,455 424,533
------- -------
7,017 4,307
------- -------
OTHER ASSETS
Security deposit 37,082 36,256
------ ------
37,082 36,256
------ ------
TOTAL ASSETS $ 61,264 $ 58,843
--------- ----------
--------- ----------
</TABLE>
See Notes to Financial Statements
[S] [C]
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
BALANCE SHEET
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
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February 28, May 31,
1998 1998
----------- -------
CURRENT LIABILITIES
Accounts payable $ 67,917 $ 43,759
Accrued expenses -0- 10,845
Due to related parties 209,566 184,047
Taxes payable 3,496 5,092
------------ ------------
Total Liabilities 280,979 243,743
------------ ------------
STOCKHOLDERS= (DEFICIT)
- - Common Stock $.01 par value-50,000,000
shares authorized 47,480,800 and
46,480,800 shares issued, respectively 474,808 464,808
- - Preferred Stock -$10 par value-600,000
shares authorized; 146,308 & 146,308
shares issued, respectively 1,463,080 1,463,080
- - Capital in excess of par value 19,771,662 19,681,662
- - Stock subscription receivables (65,233) (104,700)
- - (Deficit) - accumulated during
development stage (20,488,348) (20,314,066)
------------ ------------
1,155,969 1,190,784
Less: Treasury stock-116,625 shares at
cost 1,375,684 1,375,684
--------- ----------
Retained (Deficit) (219,715) (184,900)
----------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 61,264 58,543
----------- ---------
</TABLE>
See Notes to Financial Statements
[S] [C]
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<S> <C> <C>
Cumulative Three months
from ended
Inception February 28, 1998
--------- -----------------
REVENUES $ 1,960,071 $ 14,894
DIRECT EXPENSES 1,414,472 -0-
------------ -----------
GROSS PROFIT 545,599 14,894
------------ -----------
GENERAL & ADMINISTRATIVE EXPS. 11,158,861 58,115
RESEARCH & DEVELOPMENT EXPS. 5,034,621 159
ADVANCES TO AFFILIATES 1,004,881 -0-
------------ ------------
17,198,363 (58,274)
------------ ------------
OPERATING (LOSS) (16,652,764) (43,380)
OTHER INCOME (EXPENSE):
Interest income 1,025,705 208
Other income 322,110 -0-
Interest (expense) (93,692) -0-
(Loss) on investment in Affiliates (5,142,591) -0-
Gain(Loss) on disposition of fixed
assets 42,881 -0-
------------ -------------
(3,845,587) 208
NET (LOSS) (20,498,351) (43,172)
------------ -------------
LOSS PER SHARE (.001) (.001)
------------ -------------
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING DURING THE PERIOD 45,773,094 47,808,800
------------ -------------
------------ -------------
</TABLE>
See Notes to Financial Statements
[S] [C]
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<S> <C> <C>
Cumulative Three Months
from Ended
Inception February 28, 1998
----------- -----------------
CASH FLOW FROM OPERATING ACTIVITIES:
- - Net (loss) $(20,488,351) $ (43,172)
- - Adjustment to reconcile net (loss)
to net cash flow from operating
activities:
- - Depreciation 1,649,845 308
- - Amortization 1,116,210 -0-
- - (Gain) loss on disposal of fixed assets (42,881) -0-
- - Stock issued for services 1,719,877 -0-
- - Compensation recognition under employee
stock option plans 808,458 -0-
- - Loss of investment in affiliates 5,142,591 -0-
- - Provision for uncollectible advances to
affiliates 1,004,881 -0-
- - Increase (decrease) in current assets (12,000) -0-
- - Increase (decrease) in current
liabilities 71,946 (12,437)
----------- --------
(9,029,424) (30,427)
----------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
- - Patent costs and licenses (30,659) -0-
- - Purchase of fixed assets (2,396,335) -0-
- - Investments in and advances to
Affiliates (3,912,626) -0-
- - Proceeds from sale of fixed assets 1,086,007 -0-
- - Goodwill acquired (1,085,551) -0-
- - (Increase) decrease in other assets (37,082) (209)
------------ ---------
$ (6,376,246) $ (209)
------------- ---------
</TABLE>
See Notes to Financial Statements
[S] [C]
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
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Cumulative Three Months
from Ended
Inception February 28, 1998
--------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
- - Proceeds from issuance of stock $ 16,593,397 -0-
- - Cash dividends (505,976) -0-
- - Purchase of treasury stock (1,375,684) -0-
- - Recovery of insider's selling profit 17,198 -0-
- - Payment of cap. Lease obligations (303,652) -0-
- - Advances from related parties 1,089,958 10,800
- - Repayments to related parties (80,923) -0-
- - Increases in long-term debt 1,138,477 -0-
- - Payment against long-term debt (1,138,477) -0-
- - Proceeds of notes payable 25,976 -0-
- - Repayment of notes payable (25,976) -0-
- - Increase (decrease) in cash overdraft -0-
- - Stock subscription receivable (23,483) 21,750
-------------- ----------
15,410,835 32,550
-------------- ----------
NET INCREASE (DECREASE) IN CASH 5,165 1,914
- - CASH-beginning -0- 3,251
- - CASH-end $ 5,165 $ 5,165
------------- -----------
------------- -----------
SUPPLEMENTAL DISCLOSURES
- - Interest 208
-----------
NON-CASH INVESTING & FINANCING ACTIVITIES
- - Stock issued in payment of debt and
interest -0- -0-
</TABLE>
See Notes to Financial Statements
[S] [C]
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 1 - REGARDING FINANCIAL STATEMENTS:
The financial information herein submitted is unaudited. However, in the
opinion of management, such information reflects all adjustments (consisting
only of normal occurring accruals) necessary for a fair statement of the
results of operations for the periods being presented. Additionally, it
should be noted that the accompanying condensed financial statements do not
purport to be a complete disclosure in conformity with generally accepted
accounting principles. These condensed statements should be read in
conjunction with the Company's financial statements for the fiscal year ended
May 31, 1998 and the Form 10-K dated December 7, 1998.
NOTE 2 - DUE FROM/TO RELATED PARTIES
Receivables and Payables have been generated by transactions with related
parties, which are detailed as follows:
<TABLE>
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FEBRUARY 28, 1998
Due to (from) Related Parties:
Corporate Officers and Directors $ 32,659
Shareholders 176,636
Joint Venture 271
-----------------
$ 209,566
-----------------
</TABLE>
NOTE 3 - OTHER MATTER:
The financial statements show a loss of $(43,172) for the three months
ended February 28, 1998 with accumulated (deficits) $(20,498,351) as of the
date. It is highly likely that the Company will continue to sustain losses
for the foreseeable future. Accordingly, the Company will continue to be
dependent upon equity financing, the sale of its assets, or loans from
officers and directors for operating funds.
[S]
PART II
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations:
Three Months ended February 28, 1998; the Registrant's revenues were $14,894.
Liquidity and Capital Resources:
The Registrant's liquidity and working capital, summarized in the
following table, increased during the quarter ended February 28, 1998.
February 28, 1998 May 31, 1998
----------------- ------------
Cash and Temporary Investments $ -0- $ -0-
Working Capital (Deficit) (273,814) (225,463)
Working Capital Ratio (.3):1 (.07):1
The Registrant's negative working capital and liquidity position at
February 28, 1998 must be supplemented in order to meet the demands upon its
working capital, and the necessity for additional funds to finance development
and commercialization of projects built around the Registrant's technologies.
The Registrant will continue to seek additional funds and there is no
assurance that the Company will be able to sustain its financial needs. The
Registrant is endeavoring to reorganize its technological position in order to
attract dealers for its instruments both abroad and in the U.S. In addition,
it is continuing in search of alternative financing directions, but continues
to rely heavily upon its Directors and existing shareholders for financial
support.
PART II - OTHER INFORMATION
Item 5. Other information
None.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Corporation
(Registrant)
Norman Haber
Date: August 24, 1998 By: ________________________________
Norman Haber
Chairman of the Board
Warren Donohue
Date: August 24, 1998 By: ________________________________
Warren Donohue
Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-END> FEB-28-1998
<CASH> 5,165
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 12,000
<CURRENT-ASSETS> 37,082
<PP&E> 432,472
<DEPRECIATION> (425,455)
<TOTAL-ASSETS> 61,264
<CURRENT-LIABILITIES> 280,979
<BONDS> 0
0
1,463,080
<COMMON> 474,808
<OTHER-SE> (2,157,603)
<TOTAL-LIABILITY-AND-EQUITY> 61,264
<SALES> 14,894
<TOTAL-REVENUES> 4,784
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 189,176
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (174,282)
<INCOME-TAX> 0
<INCOME-CONTINUING> (174,282)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (174,282)
<EPS-PRIMARY> (001)
<EPS-DILUTED> (001)
</TABLE>
