SECURITIES & EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDING: June 30, 1996
COMMISSION FILE NUMBER: 0-3385
HOLOBEAM, INC.
(Exact name of registrant as specified in its charter.)
Delaware 22-1840647
(State or other juristiction of (I.R.S. Employer
incorporation or organization) Identification No.)
540 Ravine Court, Wyckoff, New Jersey 07841
(Address of principal executive offices) (Zip Code)
(201) 445-2420
(Registrant's telephone no., including area code)
Indicate by check mark whether the Registrant (1) has filed all
reports required to be filed by sections 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 for each of the issuer's
classes of common stock, as of the latest practicable date:
314,710 Common Shares at August 5, 1996
HOLOBEAM, INC.
INDEX
PART I Page No.
Financial Statements
Condensed Balance Sheets 1
Condensed Statement of Income 2
Condensed Statement of Cash Flows 3
Notes to Condensed Financial Statements 4
Management's Discussion and Analysis of
the Financial Condition and Results of
Operations 5
PART II
Signatures 6
Computation of Earnings
Per Common Share Exhibit A
PART I
<TABLE>
HOLOBEAM, INC.
CONDENSED BALANCE SHEETS
<CAPTION>
June 30, 1996 Sept 30, 1995
<S> <C> <C>
ASSETS
Current Assets
Cash and Cash Equivalents $ 432,932 $ 1,347,540
Accounts Receivable, Net - 3,758
Prepaid Expenses 2,365 5,704
_________ _________
Total Current Assets 435,297 1,357,002
Investment in Real Estate, Net 6,341,756 6,487,316
Machinery & Equipment, Net 30,125 36,389
Deferred Tax Asset 148,750 295,590
Other Non-Current Assets 739,944 755,655
_________ _________
Total Assets $ 7,695,872 $ 8,931,962
__________ __________
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities
Accounts Payable $ 100,685 $ 114,645
Accrued Expenses 99,314 137,245
Accrued Payroll 0 0
Loan Payable - Tandy Corporation 0 1,137,175
Current Portion of Long Term Debt 240,116 224,911
_________ _________
Total Current Liabilities 440,115 1,613,976
Mortgage Payable, Net of Current
Portion 6,595,216 6,777,251
Real Estate Commissions Payable 169,313 169,313
_________ _________
Total Liabilities 7,204,644 8,560,540
Shareholders' Equity
Common Stock 105,260 105,260
Paid-In-Capital 12,399,699 12,399,699
Accumulated Deficit (9,504,019) (9,724,873)
Treasury Stock, At Cost (2,509,712) (2,408,664)
__________ __________
Shareholders' Equity 491,228 391,422
_________ _________
Total Liabilities and
Shareholders Equity $ 7,695,872 $ 8,931,962
__________ ___________
</TABLE>
<PAGE>
HOLOBEAM, INC.
CONDENSED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
June 30, June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenue
Rental Income $ 450,605 $ 456,055 $1,351,813 $1,368,163
Interest Income 3,274 18,851 13,697 40,056
Other 0 0 0 0
_________ _______ _________ _________
Total Revenue 453,879 474,906 1,365,510 1,408,219
Costs and Expenses
Rental Expenses 52,893 41,358 158,679 114,811
General and Admin.
Expenses 73,631 82,322 224,120 237,953
Research and
Development 63,626 36,088 156,491 76,581
Interest 151,750 156,124 458,525 471,744
Other 0 0 0 0
_________ _______ _________ _________
Total Costs
and Expenses 341,900 315,892 997,815 901,089
_________ _________ _________ _________
Income Before
Income Taxes 111,979 159,014 367,695 507,130
Income Tax Expense 44,707 79,939 146,840 218,066
_________ _________ _________ _________
Net Income $ 62,272 $ 79,075 $ 220,855 $ 289,064
__________ ________ _________ _________
Weighted Average
Number of
Shares Outstanding 315,318 323,012 318,025 323,939
Net Income Per Share $ 0.21 $ 0.24 $ 0.69 $ 0.89
______ ______ ______ ______
</TABLE>
<PAGE>
HOLOBEAM, INC.
CONDENSED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
<TABLE>
<CAPTION>
3 Months 9 Months 12 Months
Ended Ended Ended
6/30/96 6/30/96 9/30/95
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income, (Loss) $ 62,722 $ 220,855 $ 334,594
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities
Depreciation 50,781 152,343 202,714
Amortization 13,650 40,950 56,545
Decrease, (Increase) In
Deferred Tax Asset 44,707 146,840 228,996
Deferred Charges 0 0 (330,056)
Accounts Receivable 0 3,758 0
Real Estate Brokers Commissions 0 0 169,313
Increase, (Decrease) In
Accounts Payable and
Accrued Expenses (10,864) (51,891) 72,054
Other (1,877) (21,891) (31,941)
________ _______ ________
Total Adjustments 96,397 163,369 367,625
________ _______ ________
Net Cash Provided (Used) by
Operating Activities 96,397 490,964 702,219
________ _______ ________
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures 0 (519) (1,193,187)
Proceeds from Sale of Assets 0 0 0
Other 0 0 0
________ _______ _________
Net Cash Flows from Investing
Activities 0 (519) (1,193,187)
________ _______ _________
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal Payments on First
Mortgage (56,834) (166,830) (206,121)
Principal Payments on Loan
Payable - Tandy 0 (1,137,175) (52,500)
Purchase of Treasury Stock (22,360) (101,048) (31,242)
Proceeds of Loan on Real Estate -
Tandy 0 0 1,189,675
Other 0 0 0
_________ _________ _________
Net Cash Flows Provided (Used) by
Financing Activities (79,194) (1,405,053) (899,812)
_________ _________ ________
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 84,475 (914,608) 408,844
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 348,457 1,347,540 938,696
________ _________ ________
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 432,932 $ 432,932 $1,347,540
_________ _________ _________
</TABLE>
<PAGE>
HOLOBEAM, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
FORM 10Q
JUNE 30, 1996
In the opinion of the Registrant, the accompanying unaudited, condensed
financial statements contain all adjustments, consisting of routine,
recurring accruals, necessary to present fairly its financial position as of
June 30, 1996 and September 30, 1995 and the results of operations for the
three months and nine months ended June 30, 1996 and the statement of cash
flows for the three months and nine months ended June 30, 1996.
For purposes of reporting cash flows, all liquid investments with
maturities of three months or less are considered temporary cash investments.
The results of operations for the three months and nine months ended
June 30, 1996 are not necessarily indicative of the results of operations to
be expected for a full year.
<PAGE>
HOLOBEAM, INC.
FORM 10Q
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
JUNE 30, 1996
(1) Material Changes in Financial Condition
During the three months ended June 30, 1996, the Registrant's working
capital deficit improved to ($4,818.00) from ($90,627.00) at March 31,
1996. This improvement reflects continuing positive cash flows
associated with the real estate rental activities. The Registrant
expects to continue to improve the Working Capital ratio during the
next twelve months.
The initial cause factor for the negative Working Capital was the
pay-off of the real estate loan payable to Tandy Corporation in connection
with the Construction allowance pursuant to the Operating Lease in the
amount of $1,137,175.00 The loan was paid in full on November 9, 1995.
(Reference is made to Form 10Q, Management's Discussion and Analysis of
Financial Conditions and Results of Operations, part (1) for the Quarter
ended December 31, 1995.)
The Registrant anticipates the Research and Development activities
associated with the surgical staple project to continue through the next
six (6) quarters. During the three months and nine months ended June
30, 1996, the Registrant's funding of Research, Development and
Engineering in connection with this project totaled $63,626.00 and
$156,491.00, respectively, and funds are expected to be required at a
similar rate for the near term. If clinical testing of the technology
is justified by the results of the research, costs related to these
activities could significantly increase.
The Registrant anticipates that cash flows from the real estate rental
activities will be sufficient to fund near term requirements.
If additional funds are required to enter the clinical testing phase,
the Registrant expects to seek a business relationship with an
organization familiar with this process in order to generate the
investment required. However, no decision has been made at this time.
(Reference is made to Form 10K, Part I, Item 1. (c) for the year ended
September 30, 1995.)
(2) Material Changes in the Results of Operations
The results of operations for the three months and nine months ended
June 30, 1996 indicate after-tax earnings of $67,272.00 and $220,855.00,
respectively.
Expenses associated with the real estate rental activities increased by
$11,535.00 and $43,868.00, respectively, when compared to the rental
expenses for the corresponding periods in 1995. These increases reflect
the additional depreciation recorded on the retail buildings as a result
of 1994 and 1995 construction costs.
In addition, Research and Development costs associates with the
surgical staple project increased by $27,538.00 and $29,910.00,
respectively, when compared to the costs for the same periods in 1995.
This increase is indicative of the increased activities associated with
this project and in particular the costs related to Patent applications
and filings and with prototypes, samples and engineering drawings.
The Registrant expects revenues to remain stable during the next
twelve months while costs are projected to increase in proportion to
the cost of licensing indices for the same period.
<PAGE>
PART II
HOLOBEAM, INC.
SIGNATURES
FORM 10Q
JUNE 30, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date:August 10, 1996
Holobeam, Inc
Registrant
William M. Hackett
Treasurer and Director
<PAGE>
HOLOBEAM, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
FORM 10Q
JUNE 30, 1996
<TABLE>
<CAPTION>
Nine Months Ended
June 30
1996 1995
<S> <C> <C>
PRIMARY
Net Income (Loss) $ 220,855 $ 289,064
SHARES
Weighted Average Number of Common
Shares of Outstanding 318,025 323,939
Primary Earnings Per Share $ 0.69 $ 0.89
</TABLE>
