February 14, 1997
U.S. Securities and Exchange Commission
6432 General Green Way
Alexandria, VA 22312
Attn: File Support
Re: Holobeam, Inc. File No. 0-3385
Dear Sir or Madam:
Enclosed you will find one (1) paper format copy of Holobeam,
Inc. Quarterly Report Form 10Q for the quarter ended December 31,
1996 which has been previously filed/transmitted via the EDGAR
system.
Kindly acknowledge receipt by signing the enclosed photocopy
of this letter and return it to us in the enclosed stamped, self-
addressed envelope.
Very truly yours,
W. M. Hackett
Treasurer
mjb
Enc.
<PAGE>
SECURITIES AND 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 ENDED: December 31, 1996
COMMISSION FILE NUMBER: 0-3385
HOLOBEAM, INC.
(Exact name of Registrant as specified in its charter)
Delaware 22-1840647
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) I.D. Number
540 Ravine Court, Wyckoff, New Jersey 07841
(Address of principal executive offices) (Zip Code)
201-445-2420
(Registrant's telephone no., including area code)
(Former name, former address and former fiscal year, if changed
since last report)
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 of each of the issuers
classes of common stock, as of the latest practicable date.
312,559 Common Shares at January 16, 1997
<PAGE>
HOLOBEAM, INC.
INDEX
PART I
PAGE NO.
Financial Statements
Condensed Balance Sheets 1
Condensed Statements of Income 2
Condensed Statements of Cash Flows 3
Notes to Condensed Financial Statements 4
Managements Discussion and Analysis of
the Financial Condition and Results of
Operations 5, 6
PART II
Signatures 7
Index of Exhibits 8
<PAGE>
PART I
HOLOBEAM, INC.
Condensed Balance Sheets
ASSETS
Dec. 31, 1996 Sept. 30, 1996
------------- --------------
Current Assets
Cash and Cash Equivalents $ 610,540 $ 598,772
Deferred Tax Asset 36,069 91,800
Prepaid Expenses 27,160 6,312
---------- ----------
Total Current Assets 673,769 696,884
Investments in Real Estate, Net 6,237,311 6,289,017
Machinery & Equipment, Net 59,480 28,037
Deferred Tax Asset -0- -0-
Other Non-Current Assets 715,715 729,676
---------- ----------
Total Assets $ 7,686,275 $ 7,743,614
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 153,185 $ 159,767
Accrued Expenses 110,538 112,674
Accrued Payroll -0- -0-
Current Portion of Long Term Debt 250,823 245,412
---------- ----------
Total Current Liabilities 514,546 517,853
Mortgage Payable, Net of Current
Portion 6,467,076 6,531,848
Real Estate Commissions Payable 77,035 135,450
---------- ----------
Total Liabilities 7,058,657 7,185,151
Shareholders' Equity
Common Stock 105,260 105,260
Paid-In-Capital 12,399,699 12,399,699
Accumulated Deficit ( 9,334,670) ( 9,418,439)
Treasury Stock, At Cost ( 2,542,671) ( 2,528,057)
---------- ----------
Shareholders' Equity 627,618 558,463
---------- ----------
Total Liabilities and
Shareholders Equity $7,686,275 $7,743,614
========== ==========
<PAGE>
HOLOBEAM, INC.
Condensed Statement of Income
3 Months Ended
December 31
1996 1995
---- ----
Revenue
Rental Income $450,604 $450,604
Interest Income 6,544 8,245
Other -0- -0-
------- -------
Total Revenue 457,148 458,849
Costs and Expenses
Rental Expenses 64,687 52,893
General and Administrative Expenses 70,818 71,248
Research and Development 32,919 47,419
Interest 149,224 153,786
Other -0- -0-
------- -------
Total Costs and Expenses 317,648 325,346
------- -------
Income Before Income Taxes 139,500 133,503
Income Tax Expense 55,731 42,645
------- -------
Net Income $ 83,769 $ 90,858
======= =======
Weighted Average Number of
Shares Outstanding 312,736 321,016
Net Income Per Share $0.27 $0.28
====== ======
<PAGE>
HOLOBEAM, INC.
Condensed Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
3 Months 3 Months 12 Months
Ended Ended Ended
12/31/96 12/31/95 9/30/96
-------- -------- -------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income, (Loss) $ 83,769 $ 90,858 $ 306,434
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Depreciation 51,693 50,781 206,651
Amortization 22,545 13,650 56,037
Decrease, (Increase) In:
Deferred Tax Asset 55,731 42,645 203,790
Patent and Patent
Application Costs ( 2,940) -0- ( 30,048)
Accounts Receivable -0- 3,758 3,758
Real Estate Brokers
Commissions ( 58,415) -0- ( 33,863)
Increase, (Decrease) In
Accounts Payable and
Accrued Expenses ( 8,718) ( 57,933) 20,551
Other ( 26,492) ( 9,338) ( 608)
---------- --------- ---------
Total Adjustments 33,404 43,563 426,268
---------- --------- ---------
Net Cash Provided (Used) by
Operating Activities 117,173 134,421 732,702
---------- --------- ---------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital Expenditures ( 31,430) -0- -0-
Proceeds from Sale of Assets -0- -0- -0-
Other -0- -0- -0-
---------- --------- ---------
Net Cash Flows from Investing
Activities ( 31,430) -0- -0-
---------- --------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal Payments on First
Mortgage ( 59,360) ( 54,402) ( 224,902)
Principal Payments on Loan
Payable - Tandy -0- (1,137,175) (1,137,175)
Purchase of Treasury Stock ( 14,615) ( 31,854) ( 119,393)
Other -0- -0- -0-
---------- --------- ---------
Net Cash Flows Provided (Used)
by Financing Activities ( 73,975) (1,223,431) (1,481,470)
---------- --------- ---------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 11,768 (1,089,010) ( 748,768)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 598,772 1,347,540 1,347,540
---------- --------- ---------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 610,540 $ 258,530 $ 598,772
========== ========= =========
<PAGE>
HOLOBEAM, INC.
Notes to Condensed Financial Statements
Form 10Q
December 31, 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 December 31, 1996
and 1995 and the results of operations for the three months
then ended and the statement of cash flows for the three
months ended December 31, 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 ended December
31, 1996 are not necessarily indicative of the results to be
expected for a full year.
<PAGE>
(1) Material Changes in Financial Condition
During the three months ended December 31, 1996, the
Registrant recorded earnings of $83,769.00 which resulted in
estimated income tax expenses. Such tax expense had the
effect of reducing the Deferred Tax Asset by $55,731.00. The
Registrant expects to continue the favorable earnings, which
will fully utilize the net operating loss carry-forward for
income tax purposes resulting in estimated income tax payments
to be due during the balance of fiscal year 1997.
The Registrant also continued funding support in
connection with the surgical staple project in the amount of
$32,919.00 for the period covered by this report. (Reference
is made to Form 10K for the year ended September 30, 1996,
Items 1(c)(ii), 1(c)(iv), 1(c)(xi) and Item 7(2).) The
Registrant anticipates that animal testing of the staple may
commence during the current fiscal year and that expenditures
will continue to approximate $250,000.00 for the year. If
these tests yield positive results, it will take significant
additional time before the necessary approvals are obtained
from governmental agencies before additional testing could
begin. The Registrant expects to seek a business relationship
with a firm experienced in the medical equipment field if this
business activity gives evidence of potential success. No
decision has been made at this time concerning such a
relationship.
<PAGE>
(2) Material Changes in the Results of Operations
The results of operations for the three months ended
December 31, 1996 indicate after income tax earnings of
$83,769.00 which represents a decrease of $7,089.00 when
compared to the results of operations for the three months
ended December 31, 1995.
This decrease in earnings is primarily due to an increase
in rental expenses of $11,794.00 resulting from parking lot
repairs approximating $10,000.00. Additional repairs will not
be necessary in the future beyond those routine expenses
incidental to the Registrants real estate rental activities.
The Registrant expects to continue the favorable results
of operations associated with the real estate rental
activities during the next twelve months as a result of the
full occupancy of its rental properties.
In addition, the Registrant expects the cash flows
associated with the rental properties to continue funding the
Registrants research and development activities connected
with the surgical staple project. (Reference is made to Form
10K, Item 7(2) and (3) for the year ended September 30, 1996.)
<PAGE>
PART II
HOLOBEAM, INC.
Signatures
Form 10Q
December 31, 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: February 14, 1997
Holobeam, Inc.
Registrant
William M. Hackett
Treasurer and Director
<PAGE>
EXHIBIT NO. DESCRIPTION PAGE #
- ----------- ----------- ------
(11) Statement re Computation of Per Common
Share Earnings 9
(27) Financial Data Schedule
<PAGE>
Exhibit 11
HOLOBEAM, INC.
Statement re Computation of Per Common Share Earnings
Form 10Q
DECEMBER 31, 1996
Three Months Ended
December 31,
1996 1995
--------- ---------
PRIMARY
Net Income $ 83,769 $ 90,858
SHARES
Weighted Average Number of Common
Shares of Outstanding 312,736 321,016
Earnings Per Share $0.27 $0.28
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> DEC-31-1996
<CASH> 610,540
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 673,769
<PP&E> 6,296,791
<DEPRECIATION> 51,693
<TOTAL-ASSETS> 7,686,275
<CURRENT-LIABILITIES> 514,546
<BONDS> 0
0
0
<COMMON> 105,260
<OTHER-SE> 522,358
<TOTAL-LIABILITY-AND-EQUITY> 7,686,275
<SALES> 0
<TOTAL-REVENUES> 457,148
<CGS> 0
<TOTAL-COSTS> 97,606
<OTHER-EXPENSES> 70,818
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 149,224
<INCOME-PRETAX> 139,500
<INCOME-TAX> 55,731
<INCOME-CONTINUING> 83,769
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 83,769
<EPS-PRIMARY> 0.27
<EPS-DILUTED> 0.27
</TABLE>
