February 12, 1999
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,
1998 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, 1998
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.
298,518 Common Shares at January 31, 1999
<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 A
<PAGE>
PART I
HOLOBEAM, INC.
Condensed Balance Sheets
ASSETS
Dec. 31, 1998 Sept. 30, 1998
Current Assets
Cash and Cash Equivalents $ 246,466 $ 301,623
Short Term Investments 499,881 421,282
Other Current Assets 2,154 13,915
--------- ---------
Total Current Assets 748,501 736,820
Investments in Real Estate, Net 5,837,401 5,887,410
Machinery & Equipment, Net 43,370 44,771
Deferred Tax Asset -0- -0-
Other Non-Current Assets 573,560 586,081
---------- ----------
Total Assets $ 7,202,832 $ 7,255,082
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 793 $ 6,832
Accrued Expenses 104,556 109,937
Income Taxes Payable 43,379 5,580
Current Portion of Mortgage Payable 298,636 292,195
-------- ---------
Total Current Liabilities 447,364 414,544
Mortgage Payable, Net of Current
Portion 5,894,757 5,971,869
Real Estate Commissions Payable 12,133 12,133
--------- ---------
Total Liabilities 6,354,254 6,398,546
--------- ---------
Shareholders' Equity
Common Stock 30,559 30,559
Paid-In-Capital 9,825,498 9,825,498
Accumulated Deficit ( 8,885,202) ( 8,947,666)
Treasury Stock, At Cost ( 122,277) ( 51,855)
--------- ---------
Shareholders' Equity 848,578 856,536
--------- ---------
Total Liabilities and
Shareholders Equity $7,202,832 $7,355,082
========= =========
<PAGE>
HOLOBEAM, INC.
Condensed Statement of Income
3 Months Ended
December 31
1998 1997
Revenue
Rental Income $488,229 $472,479
Interest Income 8,620 7,901
Other -0- -0-
-------- --------
Total Revenue 496,849 480,380
------- --------
Costs and Expenses
Rental Expenses 55,116 55,053
General and Administrative Expenses 153,929 78,526
Research and Development 45,887 51,712
Interest 137,913 143,812
Other -0- -0-
------- -------
Total Costs and Expenses 392,345 329,103
------- -------
Income Before Income Taxes 104,004 151,277
Income Tax Expense 41,540 60,420
------- -------
Net Income $ 62,464 $ 90,857
======= =======
Weighted Average Number of Common
Shares Outstanding 298,518 306,010
Net Income Per Share $0.21 $0.30
<PAGE>
HOLOBEAM, INC.
Condensed Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
3 Months 3 Months 12 Months
Ended Ended Ended
12/31/98 12/31/97 9/30/98
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income, (Loss) $ 62,464 $ 90,857 $ 166,891
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Depreciation 51,410 54,347 214,427
Amortization 13,690 13,850 54,442
Decrease, (Increase) In:
Deferred Tax Asset -0- -0- -0-
Patent and Patent
Application Costs ( 1,178) ( 904) ( 5,495)
Accounts Receivable -0- -0- -0-
Real Estate Brokers
Commissions -0- -0- ( 33,863)
Increase, (Decrease) In
Accounts Payable and
Accrued Expenses 26,379 ( 62,596) ( 104,454)
Other 11,770 ( 4,495) ( 216)
------- ------- -------
Total Adjustments 102,071 9,192 124,841
------- ------- -------
Net Cash Provided (Used) by
Operating Activities 164,535 100,049 291,732
------- ------- -------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital Expenditures -0- ( 2,833) ( 7,976)
Proceeds from Sale of Assets -0- -0- -0-
Purchase of Short Term
Investments ( 78,599) -0- ( 21,282)
-------- ------ --------
Net Cash Flows from Investing
Activities ( 78,599) ( 2,833) ( 29,258)
-------- ------ --------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal Payments on First
Mortgage ( 70,671)( 64,772) ( 267,784)
Principal Payments on Loan
Payable - Tandy -0- -0- -0-
Purchase of Treasury Stock ( 70,422)( 375) ( 58,375)
Other -0- -0- -0-
------- ------ --------
Net Cash Flows Provided (Used)
by Financing Activities ( 141,093)( 65,147) ( 326,159)
-------- ------- --------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS ( 55,157) 32,069 ( 63,685)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 301,623 365,308 365,308
------- ------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 246,466 $ 397,377 $ 301,623
======== ======== ========
<PAGE>
HOLOBEAM, INC.
Notes to Condensed Financial Statements
Form 10Q
December 31, 1998
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, 1998 and 1997 and the results
of operations for the three months then ended and the statement of
cash flows for the three months ended December 31, 1998.
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, 1998 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, 1998, the
Registrant's cash flows from operating activities remained
positive and were sufficient to continue funding for the
Registrant's research, engineering and testing in connection
with the surgical staple technology.
The Registrant expects to continue funding these
development activities and the animal testing requirements
during the balance of this fiscal year, which is anticipated
to approximate $300,000 for the full fiscal year.
Expenditures for the quarter ended December 31, 1998
associated with the medical staples project were $45,887.
(Reference is made to Form 10K, Item 7, for the year ended
September 30, 1998.)
The Registrant has also partially funded the defined
benefit plan in the amount of $76,943 for the plan year ended
September 30, 1999. (Reference is made to the Registrant's
Annual Report, Form 10K, Item 7(2) for the year ended
September 30, 1998.)
Funding of the research project and the defined benefit
plan is not expected to have any materially adverse effect
upon the financial condition of the Registrant.
<PAGE>
(2) Material Changes in the Results of Operations
Results of Operations for the three months ended December
31, 1998 indicate after-tax income of $62,464, as compared to
after-tax income of $90,857 for the comparable period in 1997.
Revenues associated with the Registrant's real estate
rental activities increased $15,750 for the quarter and such
increase resulted from contractual cost of living increases
contained in the Registrant's operating lease with Comp USA.
General and Administrative expenses increased $75,403 for
the quarter when compared to the three months ended December
31, 1997. The increase results from expenditures associated
with the funding of the Registrant's defined benefit plan for
the plan year ended September 30, 1997.
The Registrant expects to continue to support its
research efforts during the fiscal year and anticipates that
revenues in connection with its real estate rental activities
will continue to provide the revenues and income necessary to
complete the project.
<PAGE>
PART II
HOLOBEAM, INC.
Signatures
Form 10Q
December 31, 1998
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 12, 1999
Holobeam, Inc.
Registrant
William M. Hackett
Treasurer and Director
<PAGE>
Exhibit A
HOLOBEAM, INC.
Statement of Computation of Per Common Share Earnings
Form 10Q
DECEMBER 31, 1998
Three Months Ended
December 31,
1998 1997
PRIMARY
Net Income $ 62,464 $ 90,857
SHARES
Weighted Average Number of Common
Shares of Outstanding 298,518 306,010
Earnings Per Share $0.21 $0.30
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 246,466
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 748,501
<PP&E> 7,501,587
<DEPRECIATION> 1,620,816
<TOTAL-ASSETS> 7,202,832
<CURRENT-LIABILITIES> 447,364
<BONDS> 0
0
0
<COMMON> 30,559
<OTHER-SE> 818,019
<TOTAL-LIABILITY-AND-EQUITY> 7,202,832
<SALES> 0
<TOTAL-REVENUES> 496,849
<CGS> 0
<TOTAL-COSTS> 101,003
<OTHER-EXPENSES> 153,929
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 137,913
<INCOME-PRETAX> 104,004
<INCOME-TAX> 41,540
<INCOME-CONTINUING> 62,464
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 62,464
<EPS-PRIMARY> .21
<EPS-DILUTED> .21
</TABLE>
