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 November 30, 1997 Commission File Number
0-9966
________________________________________________________________
HABER, INC.
Delaware
-------- 22-2305613
(State or other jurisdiction
of
incorporation or organization) (I.R.S. Employer
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.
PART I - FINANCIAL INFORMATION
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
BALANCE SHEET.
(UNAUDITED)
ASSETS
November 30, 1997 MAY 31, 1997
CURRENT ASSETS
Cash in banks and on hand
Inventory EMP parts $ 3,251 $ 6,280
12,000 12,000
------ ------
15,251 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
425,148 424,533
------- -------
7,324 4,307
OTHER ASSETS
Security deposit 36,873 36,256
36,873 36,256
------ ------
TOTAL ASSETS
$59,448 $58,843
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
BALANCE SHEET
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
November May
30, 1997 31, 1997
CURRENT LIABILITIES
Accounts payable $57,228 $43,759
Accrued expenses -0 10,845
Due to related parties 198,766 184,047
Taxes payable 1,748 5,092
------- -------
Total Liabilities
257,742 243,743
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
(86,983) (104,700)
- - (Deficit) - accumulated during
development stage
(20,445,177) (20,314,066)
---------- -----------
1,177,390 1,190,784
Less: Treasury stock-116,625
shares at cost 1,375,684 1,375,684
Retained (Deficit)
(198,294) (184,900)
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT
$59,448 $58,543
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENT OF OPERATIONS
(UNAUDITED)
Cumulative Three months
from ended
Inception November 30, 1997
REVENUES $1,945,177 0 -
DIRECT EXPENSES 1,414,472 0 -
GROSS PROFIT 530,705 0 -
GENERAL & ADMINISTRATIVE EXPS. 11,100,746 65,977
RESEARCH & DEVELOPMENT EXPS. 5,034,462 5,608
PROVISION FOR UNCOLLECTIBLE
ADVANCES TO AFFILIATES - 0 - - 0
1,004,881 0
---------- -------
17,140,089 (71,585)
OPERATING (LOSS)
(16,609,384)
OTHER INCOME (EXPENSE):
Interest income 1,025,497 413
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 -
(3,845,795) 413
NET (LOSS)
(20,455,179) (71,172)
------------ --------
LOSS PER SHARE (.001) (.001)
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING DURING THE PERIOD
45,773,09 47,480,800
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENT OF CASH FLOWS
(UNAUDITED)
Cumulative Three Months
from Ended
Inception November 30, 1997
CASH FLOW FROM OPERATING ACTIVITIES:
- - Net (loss) ($20,445,179) (71,172)
- - Adjustment to reconcile net
(loss) to
net cash flow from operating
activities:
- - Depreciation 1,649,537 308
- - 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 59,509 (3,799)
---------- ---------
(8,998,997) (74,663)
CASH FLOWS FROM INVESTING ACTIVITIES:
- - Patent costs and licenses
(30,659)
- - Purchase of fixed assets (2,396,335)
- - Investments in and advances to
Affiliates (3,912,626)
- - Proceeds from sale of fixed
assets 1,086,007
- - Goodwill acquired (1,085,551)
- - (Increase) decrease in other
assets (36,873) (413)
$(6,376,037) $(413)
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Cumulative
from
Inception
Three Months
Ended
November 30,
1997
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
1,079,158
4,472
- - 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-
- - Stock subscription receivable
(45,233)
12,717
15,378,285
17,189
NET INCREASE (DECREASE) IN CASH
3,251
(57,887)
- - CASH-beginning
-
0-
61,138
- - CASH-end
$
3,251
$
3,251
SUPPLEMENTAL DISCLOSURES
- - Interest
$
413
NON-CASH INVESTING & FINANCING
ACTIVITIES
- - Stock issued in payment of debt
and
interest
-
0-
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
NOTES TO FINANCIAL STATEMENTS
NOVEMBER 30, 1997
(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, 1997 and the Form
10-K dated December 7, 1997.
NOTE 2 - DUE FROM/TO RELATED PARTIES
Receivables and Payables have been generated by transactions with
related parties which are detailed as follows:
NOVEMBER 30,
1997
Due to (from) Related Parties:
Corporate Officers and Directors
$ 32,859
Shareholders
165,636
Joint Venture
271
$ 198,766
NOTE 3 - OTHER MATTER:
The financial statements show a loss of $(71,172) for the
three months ended November 30, 1997 with accumulated (deficits)
$(20,455,179) 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.
PART II
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations:
Three Months ended November 30, 1997, the Registrant's revenues
were $ -0-.
Liquidity and Capital Resources:
The Registrant's liquidity and working capital, summarized
in the following table, increased during the quarter ended
November 30, 1997.
November 30,
1997
May 31,
1997
Cash and Temporary
Investments
$ -0-
$ -
0-
Working Capital (Deficit)
(242,491)
(225,463)
Working Capital Ratio
(.06):1
(.07):1
The Registrant's negative working capital and liquidity
position at November 30, 1997 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)
Date: June 9, 1998 By:
________________________________
Norman Haber
Chairman of the
Board
Date: June 9, 1998 By:
________________________________
Warren Donohue
Secretary
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