February 13, 1998
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,
1997 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, 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
217 First Street, Ho Ho Kus, New Jersey 07423-0287
(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.
306,010 Common Shares at January 21, 1998
<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, 6
PART II
Signatures 7
Computation of Earnings Per Common Share Exhibit 11
Financial Data Schedule Exhibit 27
<PAGE>
PART I
HOLOBEAM, INC.
Condensed Balance Sheets
ASSETS
Dec. 31, 1997 Sept. 30, 1997
------------- --------------
Current Assets
Cash and Cash Equivalents $ 397,377 $ 365,308
Short Term Investments 400,000 400,000
Other Current Assets 9,205 13,699
----------- -----------
Total Current Assets 806,582 779,007
Investments in Real Estate, Net 6,037,360 6,087,370
Machinery & Equipment, Net 49,757 51,262
Deferred Tax Asset -0- -0-
Other Non-Current Assets 622,082 635,028
----------- -----------
Total Assets $ 7,515,781 $ 7,552,667
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ -0- $ 116,172
Accrued Expenses 115,540 110,632
Income Taxes Payable 48,668 -0-
Current Portion of Mortgage Payable 273,688 267,783
----------- -----------
Total Current Liabilities 437,896 494,587
Mortgage Payable, Net of Current
Portion 6,193,388 6,264,065
Real Estate Commissions Payable 45,995 45,995
----------- -----------
Total Liabilities 6,677,279 6,804,647
Shareholders' Equity
Common Stock 105,260 105,260
Paid-In-Capital 12,399,699 12,399,699
Accumulated Deficit ( 9,023,700) ( 9,114,557)
Treasury Stock, At Cost ( 2,642,757) ( 2,642,382)
----------- -----------
Shareholders' Equity 838,502 748,020
----------- -----------
Total Liabilities and
Shareholders Equity $7,515,781 $7,552,667
=========== ==========
<PAGE>
HOLOBEAM, INC.
Condensed Statement of Income
3 Months Ended
December 31
1997 1996
Revenue
Rental Income $472,479 $450,604
Interest Income 7,901 6,544
Other -0- -0-
-------- --------
Total Revenue 480,380 457,148
Costs and Expenses
Rental Expenses 55,053 64,687
General and Administrative Expenses 78,526 70,818
Research and Development 51,712 32,919
Interest 143,812 149,224
Other -0- -0-
------- -------
Total Costs and Expenses 329,103 317,648
------- -------
Income Before Income Taxes 151,277 139,500
Income Tax Expense 60,420 55,731
------- ------
Net Income $ 90,857 $ 83,769
======= =======
Weighted Average Number of Common
Shares Outstanding 306,010 312,736
Net Income Per Share $0.30 $0.27
====== ======
<PAGE>
HOLOBEAM, INC.
Condensed Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
3 Months 3 Months 12 Months
Ended Ended Ended
12/31/97 12/31/96 9/30/97
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income, (Loss) $ 90,857 $ 83,769 $ 303,882
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Depreciation 54,347 51,693 212,487
Amortization 13,850 22,545 54,895
Decrease, (Increase) In:
Deferred Tax Asset -0- 55,731 91,800
Patent and Patent
Application Costs ( 904) ( 2,940) ( 9,447)
Accounts Receivable -0- -0- -0-
Real Estate Brokers
Commissions -0- ( 58,415) ( 89,455)
Increase, (Decrease) In
Accounts Payable and
Accrued Expenses ( 62,596) ( 8,718) ( 45,637)
Other ( 4,495) ( 26,492) 51,835
------------ ------------ -----------
Total Adjustments 9,192 33,404 266,478
------------ ------------ -----------
Net Cash Provided (Used) by
Operating Activities 100,049 117,173 570,360
----------- ------------ ----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital Expenditures ( 2,833) ( 31,430) ( 51,587)
Proceeds from Sale of Assets -0- -0- 7,500
Purchase of Short Term
Investments -0- -0- ( 400,000)
------------- ------------ ------------
Net Cash Flows from Investing
Activities ( 2,833) ( 31,430) ( 444,087)
------------- ------------ ------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal Payments on First
Mortgage ( 64,772) ( 59,360) ( 245,412)
Principal Payments on Loan
Payable - Tandy -0- -0- -0-
Purchase of Treasury Stock ( 375) ( 14,615) ( 114,325)
Other -0- -0- -0-
------------- ------------ -----------
Net Cash Flows Provided (Used)
by Financing Activities ( 65,147) ( 73,975) ( 359,737)
------------- ------------ -----------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 32,069 11,768 ( 233,464)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 365,308 598,772 598,772
------------ ----------- -----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 397,377 $ 610,540 $ 365,308
============ ========== ==========
<PAGE>
HOLOBEAM, INC.
Notes to Condensed Financial Statements
Form 10Q
December 31, 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 December 31, 1997 and 1996 and the results
of operations for the three months then ended and the statement of
cash flows for the three months ended December 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 ended December
31, 1997 are not necessarily indicative of the results to be
expected for a full year.
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
December 31, 1997
(1) Material Changes in Financial Condition
---------------------------------------
During the three months ended December 31, 1997, the
Registrant improved its Working Capital ratio from 1.58:1 at
September 30, 1997 to 1.84:1 at December 31, 1997. Such
improvement resulted from positive cash flows associated with
the Registrant's real estate rental activities and is expected
to continue for the current fiscal year and also for
subsequent periods while the operating leases are in effect.
The Registrant also expects to continue to fund research
and development activities associated with the medical staples
technology. Animal testing has begun and initial experiments
have indicated moderately successful results, which will
assist in the Registrant's decisions to continue funding the
project.
If tests are positive, then significant expenditures may
be made for the purchase of equipment, fixtures and other
costs incident and necessary for the continuing research
activities.
During the quarter ended December 31, 1997, the
Registrant's expenditures for research and development
associated with the medical staples project approximated
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
December 31, 1997
$51,700 and is expected to continue at that rate for the
balance of the fiscal year.
The expenditures for these activities should be provided
by the cash flows from the real estate rental business and is
not expected to have any materially adverse effect upon the
financial condition of the Registrant.
(2) Material Changes in the Results of Operations
---------------------------------------------
The results of operations for the three months ended
December 31, 1997 indicate after income tax earnings of
$90,857.00 as compared to $83,769.00 for the comparable period
one year ago.
Rental revenues increased as a result of the contractual
incremental rents due under the operating leases, resulting
from Cost of Living clauses contained in the leases. Such
increases will continue while the lease agreements are in
effect.
The Registrant expects cash flows associated with the
real estate rental operations to be sufficient to continue
funding the research and development efforts in connection
with the surgical staples project. (Reference is made to Form
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
December 31, 1997
10K, Item 1.(c) and Item 7.(1), 7.(2) and 7.(3) for the year
ended September 30, 1997.)
<PAGE>
PART II
HOLOBEAM, INC.
Signatures
Form 10Q
December 31, 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: February 13, 1998
Holobeam, Inc.
Registrant
William M. Hackett
Treasurer and Director
<PAGE>
Exhibit 11
HOLOBEAM, INC.
Statement of Computation of Per Common Share Earnings
Form 10Q
DECEMBER 31, 1997
Three Months Ended
December 31,
1997 1996
PRIMARY
Net Income $ 90,857 $ 83,769
SHARES
Weighted Average Number of Common
Shares of Outstanding 306,010 312,736
Earnings Per Share $0.30 $0.27
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> DEC-31-1997
<CASH> 397,377
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 806,582
<PP&E> 6,087,117
<DEPRECIATION> 1,409,327
<TOTAL-ASSETS> 7,515,781
<CURRENT-LIABILITIES> 437,896
<BONDS> 0
0
0
<COMMON> 105,260
<OTHER-SE> 733,242
<TOTAL-LIABILITY-AND-EQUITY> 7,515,781
<SALES> 0
<TOTAL-REVENUES> 480,380
<CGS> 0
<TOTAL-COSTS> 106,765
<OTHER-EXPENSES> 78,526
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 143,812
<INCOME-PRETAX> 151,277
<INCOME-TAX> 60,420
<INCOME-CONTINUING> 90,857
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 90,857
<EPS-PRIMARY> .30
<EPS-DILUTED> .30
</TABLE>
