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 August 31, 1999 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.
______ Yes ___X___ 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:
78,716,800 shares of Common Stock, $.01 par value.
PART I - FINANCIAL INFORMATION
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
BALANCE SHEET.
(UNAUDITED)
ASSETS
August 31, May 31,
1999 1999
----------- --------
CURRENT ASSETS
Cash in banks and on hand(overdraft) $58,068 $70,799
Inventory EMP parts 12,000 11,750
------- --------
70,068 82,549
------- --------
PROPERTY AND EQUIPMENT
Equipment 339,167 339,167
Furniture and fixtures 99,514 99,514
------- -------
438,681 438,681
Less: Accumulated depreciation
amortization 429,599 428,814
------- -------
9,082 9,867
------- -------
OTHER ASSETS
Patent costs and Licenses - net of
Accumulated amortization of $30,659
and $30,659 0 0
Security deposit 2,147 2,149
Other assets 1,542 3,000
------ ------
3,689 5,149
------ ------
TOTAL ASSETS $ 82,839 $ 97,565
--------- ----------
--------- ----------
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
BALANCE SHEET
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' DEFICIT
August 31, May 31,
1999 1999
----------- -------
CURRENT LIABILITIES
Accounts payable $ 84,388 $ 62,746
Due to related parties 185,043 189,270
Taxes payable 1,863 1,860
Deposits Payable 0 3,570
------------ ------------
Total Liabilities 271,294 257,446
------------ ------------
STOCKHOLDERS= (DEFICIT)
- Common Stock $.01 par value-150,000,000
shares authorized 78,716,800 and
76,667,567 shares issued, respectively 787,168 766,676
- 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 21,099,483 20,953,192
- Stock subscription receivables (36,033) (36,033)
- (Deficit) - accumulated during
development stage (22,126,469) (21,931,112)
------------ ------------
1,187,229 1,215,803
Less: Treasury stock-116,625 shares at
cost 1,375,684 1,375,684
--------- ----------
Total stockholder (Deficit) (188,455) (159,881)
----------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 82,839 $ 97,565
----------- ---------
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENT OF OPERATIONS
(UNAUDITED)
Cumulative Three months
from ended
Inception August 31, 1999
--------- -----------------
REVENUES $ 1,960,068 $ -0-
DIRECT EXPENSES 1,519,485 -0-
------------ -----------
GROSS PROFIT 440,583 -0-
------------ -----------
GENERAL & ADMINISTRATIVE EXPS. 12,648,844 165,686
RESEARCH & DEVELOPMENT EXPS. 5,078,069 29,671
PROVISION FOR UNCOLLECTIBLE
ADVANCES TO AFFILIATES 1,004,881 -0-
------------ ------------
18,731,794 195,357
------------ ------------
OPERATING (LOSS) (18,291,211) (195,357)
OTHER INCOME (EXPENSE):
Interest income 1,025,917 -0-
Other income 334,864 -0-
Interest (expense) (96,329) -0-
(Loss) on investment in Affiliates (5,142,591) -0-
Gain(Loss) on disposition of fixed
assets 42,881 -0-
------------ ------------
(3,835,258) -0-
NET (LOSS) $(22,126,469) $ (195,357)
------------ -------------
LOSS PER SHARE (.281) (.002)
------------ -------------
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING DURING THE PERIOD 78,716,800 78,716,800
------------ -------------
------------ -------------
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENT OF CASH FLOWS
(UNAUDITED)
Cumulative Three Months
from Ended
Inception August 31, 1999
----------- -----------------
CASH FLOW FROM OPERATING ACTIVITIES:
- Net (loss) $(22,126,379) $ ( 195,357)
- Adjustment to reconcile net (loss)
to net cash flow from operating
activities:
- Depreciation 1,653,987 785
- Amortization 1,116,210 -0-
- (Gain) loss on disposal of fixed assets (42,881) -0-
- Stock issued for services 2,895,138 -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) (250)
- Increase (decrease) in current
liabilities 86,783 18,075
----------- --------
(9,473,212) (176,747)
----------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
- Patent costs and licenses (30,659) -0-
- Purchase of fixed assets (2,402,544) -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 (3,779) $ 1,460
------------ ---------
$ (6,349,152) $ 1,460
------------- ---------
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Cumulative Three Months
from Ended
Inception August 31, 1999
--------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
- Proceeds from issuance of stock $ 17,100,067 $ 166,783
- 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 1,117,938 -0-
- Repayments to related parties (133,426) (4,227)
- 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 (36,033) -0-
-------------- ----------
15,880,432 162,556
-------------- ----------
NET INCREASE (DECREASE) IN CASH 58,068 (12,731)
- CASH-beginning -0- 70,799
- CASH-end $ 58,068 $ 58,068
------------- -----------
------------- -----------
SUPPLEMENTAL DISCLOSURES
- Interest -0-
-----------
NON-CASH INVESTING & FINANCING ACTIVITIES
- Stock issued in payment of debt and
interest -0- -0-
See Notes to Financial Statements
HABER, INC.
A DEVELOPMENT STAGE ENTERPRISE
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1999
(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, 1999 and the Form 10-K dated December 14, 1999.
NOTE 2 - DUE FROM/TO RELATED PARTIES:
---------------------------
Receivables and Payables have been generated by transactions with related
parties, which are detailed as follows:
AUGUST 31, 1999
---------------
Due to (from) Related Parties:
Corporate Officers and Directors $ 12,722
Shareholders 172,050
Joint Venture 271
-----------------
$ 185,043
-----------------
NOTE 3 - CAPITAL STOCK:
-------------
During the three months ended August 31, 1999 the Company issued 2,049,231
shares of common stock, par value $.01 per share, for aggregate consideration of
$166,784, represented by 59,046 of investors cash plus $107,738 of stock issued
for services rendered.
NOTE 4 - OTHER MATTER:
------------
The financial statements show a loss of $195,357 for the three months
ended August 31, 1999 with accumulated (deficits) $(22,126,469) 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 I
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations:
Three Months ended August 31, 1999, 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 August 31, 1999.
August 31, 1999 May 31, 1999
Cash and Temporary Investments $ 58,068 $ 70,799
Working Capital (201,226) (174,897)
Working Capital Ratio (.03).1 (.03).1
The Registrant's negative working capital and liquidity position at
August 31, 1999 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: June 27, 2000 By: ________________________________
Norman Haber
Chairman of the Board
Warren Donohue
Date: June 27, 2000 By: ________________________________
Warren Donohue
Secretary
