August 15, 1997
U.S. Securities and Exchange Commission
6432 General Green Way
Alexandria, VA 22312
Attn: File Support
Re: Holobeam, Inc. File No. 0-3385
Gentlemen:
Enclosed you will find one (1) paper format copy of Form 10Q for the
Quarter ended June 30, 1997, which has been previously filed via the Edgar
system.
Kindly acknowledge receipt by signing the enclosed copy of this letter and
returning it to us in the accompanying stamped, self-addressed envelope.
Very truly yours,
William M. Hackett
Treasurer
mjb
Encs.
<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: June 30, 1997
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 issuer's
classes of common stock, as of the latest practicable date.
307,585 Common Shares at August 2, 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
Management's Discussion and Analysis of
the Financial Condition and Results of
Operations 5 - 7
PART II
Signatures 8
Computation of Earnings Per Common Share 9
Index of Exhibits 10
<PAGE>
PART I
HOLOBEAM, INC.
Condensed Balance Sheets
ASSETS
June 30, 1997 Sept. 30, 1996
------------- --------------
Current Assets
Cash and Cash Equivalents $ 568,172 $ 598,772
Deferred Tax Asset -0- 91,800
Prepaid Expenses 23,408 6,312
---------- ----------
Total Current Assets 591,580 696,884
Investments in Real Estate, Net 6,137,275 6,289,017
Machinery & Equipment, Net 58,380 28,037
Deferred Tax Asset -0- -0-
Other Non-Current Assets 692,139 729,676
---------- ----------
Total Assets $ 7,479,374 $ 7,743,614
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ -0- $ 159,767
Accrued Expenses 87,955 112,674
Accrued Payroll -0- -0-
Current Portion of Long Term Debt 258,108 245,412
--------- ---------
Total Current Liabilities 346,063 517,853
Mortgage Payable, Net of Current
Portion 6,337,105 6,531,848
Real Estate Commissions Payable 77,035 135,450
--------- ---------
Total Liabilities 6,760,203 7,185,151
--------- ---------
Shareholders' Equity
Common Stock 105,260 105,260
Paid-In-Capital 12,399,699 12,399,699
Accumulated Deficit ( 9,167,936) ( 9,418,439)
Treasury Stock, At Cost ( 2,617,852) ( 2,528,057)
---------- ----------
Shareholders' Equity 719,171 558,463
---------- ----------
Total Liabilities and
Shareholders Equity $ 7,479,374 $ 7,743,614
========== ==========
<PAGE>
HOLOBEAM, INC.
Condensed Statement of Income
Three Months Ended Nine Months Ended
June 30, June 30,
1997 1996 1997 1996
---- ---- ---- ----
Revenue
Rental Income $450,605 $450,055 $1,351,813 $1,351,813
Interest Income 6,877 3,274 18,361 13,697
Other -0- -0- -0- -0-
------- ------- --------- ---------
Total Revenue 457,482 453,879 1,370,174 1,365,510
------- ------- --------- ---------
Costs and Expenses
Rental Expenses 54,618 52,893 174,014 158,679
General and Admin. Expenses 86,360 73,631 236,560 224,120
Research and Development 32,577 63,626 99,468 156,491
Interest 146,115 151,750 442,378 458,525
Other -0- -0- -0- -0-
------- ------- ------- -------
Total Costs and Expenses 319,670 341,900 952,420 997,815
------- ------- ------- -------
Income Before Income Taxes 137,812 111,979 417,754 367,695
Income Tax Expense 46,875 44,707 167,250 146,840
------- ------- ------- --------
Net Income $ 90,937 $ 62,272 $ 250,504 $ 220,855
======= ======= ======= =======
Weighted Average Number of
Shares Outstanding 309,393 315,318 311,437 318,025
Net Income Per Share $0.29 $0.21 $0.81 $0.69
===== ===== ===== =====
<PAGE>
HOLOBEAM, INC.
Condensed Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
6 Months 9 Months 12 Months
Ended Ended Ended
3/31/97 6/30/97 9/30/96
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income, (Loss) $ 159,567 $ 250,504 $ 306,434
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Depreciation 103,386 155,079 206,651
Amortization 28,160 38,340 56,037
Decrease, (Increase) In:
Deferred Tax Asset 91,800 91,800 203,790
Patent and Patent
Application Costs ( 5,105) ( 6,446) ( 30,048)
Accounts Receivable -0- -0- 3,758
Real Estate Brokers
Commissions ( 58,415) ( 58,415) ( 33,863)
Increase, (Decrease) In
Accounts Payable and
Accrued Expenses ( 179,067) ( 184,486) 20,551
Other ( 20,915) ( 6,204) ( 608)
---------- --------- ---------
Total Adjustments ( 40,156) 29,668 426,268
---------- --------- ---------
Net Cash Provided (Used) by
Operating Activities 119,411 280,172 732,702
---------- --------- ---------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital Expenditures ( 38,930) ( 38,930) -0-
Proceeds from Sale of Assets -0- -0- -0-
Other -0- -0- -0-
---------- --------- --------
Net Cash Flows from Investing
Activities ( 38,930) ( 38,930) -0-
---------- --------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal Payments on First
Mortgage ( 120,031) ( 182,047) ( 224,902)
Principal Payments on Loan
Payable - Tandy -0- -0- (1,137,175)
Purchase of Treasury Stock ( 25,595) ( 89,795) ( 119,393)
Other -0- -0- -0-
---------- --------- ----------
Net Cash Flows Provided (Used)
by Financing Activities ( 145,626) ( 271,842) (1,481,470)
---------- --------- ---------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ( 65,145) ( 30,600) ( 748,768)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 598,772 598,772 1,347,540
---------- --------- ---------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 533,627 $ 568,172 $ 598,772
========== ======== =========
<PAGE>
HOLOBEAM, INC.
Notes to Condensed Financial Statements
Form 10Q
June 30, 1997
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, 1997 and 1996 and the results of
operations for the three months and nine months then ended and the
statement of cash flows for the nine months ended June 30, 1997 and
for the six months ended March 31, 1997.
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, 1997 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, 1997
(1) Material Changes in Financial Condition
During the three months and nine months ended June 30,
1997, the Registrant recorded after-tax earnings of $90,937
and $250,504 respectively. Such earnings represent improved
profit performance in the amounts of $28,665 and $29,649 when
compared to the corresponding periods last year.
As previously reported, the favorable results of
operations has exhausted the net operating loss carryforwards
and related deferred tax assets resulting in Federal and State
income tax payments of $90,897 during the nine months ended
June 30, 1997, with $30,299 paid during the last three month
period.
Accounts Payable and Accrued Expenses decreased from
$272,441 to $87,955 during the nine months ended June 30,
1997, assisting the increase in working capital to $245,517 at
the end of the quarter.
Funding for the Registrant's surgical staple research and
development project (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) and to Form 10Q for the quarter ended
March 31, 1997, Part I, Item (1)) totalled $32,577 and
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial
Condition and Results of Operations
June 30, 1997
$99,468, respectively for the three months and nine months
ended June 30, 1997.
The preliminary animal testing that began during the
quarter ended March 31, 1997 on the two instruments has
continued to yield moderately successful results. In order to
evaluate the performance of the devices, it will be necessary
to perform significant additional testing and research before
considering the potential business opportunities that may be
present with an improved staple and instrument.
The Registrant intends to continue funding the research,
development and testing required to determine the ultimate
feasibility of the project. The expenditures required during
the next twelve (12) months are expected to approximate
$300,000 and will be available from cash flows associated with
the Registrant's real estate rental activities.
(2) Material Changes in the Results of Operations
The results of operations for the three months and nine
months ended June 30, 1997 indicate after tax income of
$90,937 and $250,504 respectively. After tax profit increased
from 1996 in the amounts of $28,665 and $29,649 for the same
periods.
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial
Condition and Results of Operations
June 30, 1997
The increased earnings result primarily from reduced
expenses associated with the Registrant's research and
development efforts pursuant to the surgical staple project
during the periods covered by this report.
While revenues remained consistent throughout the nine
months ended June 30, 1997 (principally resulting from rental
income provided by the Registrant's operating leases),
expenses associated with the administration and maintenance of
the real estate rental activities increased moderately.
The Registrant intends to continue to fund the activities
associated with the development and testing of the surgical
staple and related devices until conclusive results can be
determined. The Registrant anticipates that such funding will
approximately $50,000 during the next calendar quarter and may
exceed $300,000 over the next twelve (12) months. Funding of
this project is not expected to have a materially adverse
effect upon the financial condition of the Registrant.
<PAGE>
PART II
HOLOBEAM, INC.
Signatures
Form 10Q
June 30, 1997
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 12, 1997
Holobeam, Inc.
Registrant
William M. Hackett
Treasurer and Director
<PAGE>
Exhibit A
HOLOBEAM, INC.
Computation of Earnings Per Common Share
Form 10Q
JUNE 30, 1997
Nine Months Ended
June 30
1997 1996
PRIMARY
Net Income (Loss) $250,504 $220,855
SHARES
Weighted Average Number of Common
Shares of Outstanding 311,437 318,025
Primary Earnings Per Share $0.81 $0.69
<PAGE>
EXHIBIT NO. DESCRIPTION
- ----------- -----------
(11) Statement re Computation of Per
Common Share Earnings
(27) Financial Data Schedule
Exhibit 11
HOLOBEAM, INC.
Statement re Computation of Per Common Share Earnings
Form 10Q
JUNE 30, 1997
Nine Months Ended
June 30,
1997 1996
PRIMARY
Net Income $250,504 $220,855
SHARES
Weighted Average Number of Common
Shares of Outstanding 311,437 318,025
Earnings Per Share $0.81 $0.69
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-START> OCT-01-1996
<PERIOD-END> JUN-30-1997
<CASH> 568,172
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 591,580
<PP&E> 6,195,655
<DEPRECIATION> 1,351,527
<TOTAL-ASSETS> 7,479,374
<CURRENT-LIABILITIES> 346,063
<BONDS> 0
0
0
<COMMON> 105,260
<OTHER-SE> 613,911
<TOTAL-LIABILITY-AND-EQUITY> 7,479,374
<SALES> 0
<TOTAL-REVENUES> 457,482
<CGS> 0
<TOTAL-COSTS> 273,482
<OTHER-EXPENSES> 236,560
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 442,378
<INCOME-PRETAX> 417,754
<INCOME-TAX> 167,250
<INCOME-CONTINUING> 250,504
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 250,504
<EPS-PRIMARY> .81
<EPS-DILUTED> .81
</TABLE>
