August 14, 2000
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, 2000, 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.
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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, 2000
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, P.O. Box 287, 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.
292,447 Common Shares at August 2, 2000
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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 Exhibit A
<PAGE>
PART I
HOLOBEAM, INC.
Condensed Balance Sheets
ASSETS
June 30,2000 Sept 30,1999
Current Assets
Cash and Cash Equivalents $ 929,421 $ 891,119
Short Term Investments -0- -0-
Other Current Assets 14,808 12,610
----------- -----------
Total Current Assets 944,229 903,729
Investments in Real Estate, Net 5,537,422 5,687,452
Machinery & Equipment, Net 24,246 32,864
Deferred Tax Asset -0- -0-
Other Non-Current Assets 506,234 539,198
----------- -----------
Total Assets $ 7,012,131 $ 7,163,243
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ -0- $ 6,510
Accrued Expenses 81,527 188,822
Income Taxes Payable 73,200 24,340
Current Portion of Long Term Debt 340,389 318,832
----------- ----------
Total Current Liabilities 495,116 538,504
Mortgage Payable, Net of Current
Portion
5,394,991
5,653,044
Real Estate Commissions Payable -0- -0-
----------- ----------
Total Liabilities 5,890,107 6,191,548
Shareholders' Equity
Common Stock 30,559 30,559
Paid-In-Capital 9,825,498 9,825,498
Accumulated Deficit ( 8,523,740) ( 8,750,505)
Treasury Stock, At Cost ( 210,293) ( 133,857)
----------- ----------
Shareholders' Equity 1,122,024 971,695
----------- ----------
Total Liabilities and
Shareholders Equity $ 7,012,131 $7,163,243
=========== ==========
1
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HOLOBEAM, INC.
Condensed Statement of Income
Three Months Ended Nine Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenue
Rental Income $496,104 $472,480 $1,488,312 $1,433,188
Interest Income 12,485 7,958 32,207 23,766
Other -0- -0- -0- -0-
-------- -------- ---------- ----------
Total Revenue 508,589 480,438 1,520,519 1,456,954
Costs and Expenses
Rental Expenses 55,200 55,583 165,600 165,709
General & Admin.
Expenses 109,786 155,356 444,397 467,793
Research & Development 47,003 54,552 145,209 156,332
Interest 127,061 133,175 387,728 407,438
Other 20 -0- 20 360
-------- -------- ---------- ----------
Total Costs &
Expenses 339,070 398,666 1,142,954 1,197,632
-------- -------- ---------- ----------
Income (Loss) Before
Income Taxes 169,519 81,772 377,565 259,322
Income Tax Expense 61,340 32,685 150,800 103,600
-------- -------- ---------- ----------
Net Income, (Loss) $108,179 $ 49,087 $ 226,765 $ 155,722
======== ======== ========= =========
Weighted Average Number of
Shares Outstanding 293,081 297,512 294,564 298,332
Net Income(Loss)Per Share $0.37 $0.16 $0.77 $0.52
===== ===== ===== =====
2
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HOLOBEAM, INC.
Condensed Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
9 Months 9 Months 12 Months
Ended Ended Ended
6/30/00 6/30/99 9/30/99
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income, (Loss) $ 226,765 $ 155,722 $ 197,161
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Depreciation 158,965 154,230 211,865
Amortization 40,680 41,000 54,958
Decrease, (Increase) In:
Deferred Tax Asset -0- -0- -0-
Patent and Patent
Application Costs (7,716) (7,252) (8,075)
Accounts Receivable -0- -0- (28)
Real Estate Brokers
Commissions -0- -0- (33,862)
Increase, (Decrease) In:
Accounts Payable and
Accrued Expenses (64,945) 4,758 119,052
Other (2,514) 9,023 1,133
------ ----------- -----------
Total Adjustments 124,468 201,859 345,243
----------- ----------- -----------
Net Cash Provided (Used) by
Operating Activities 351,233 357,581 542,404
----------- ----------- -----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital Expenditures 315 -0- -0-
Sale of Short Term Investments -0- -0- 421,282
Purchase of Short Term
Investments -0- 421,282 -0-
------------ ----------- ------------
Net Cash Flows from Investing
Activities 315 421,282 421,282
----------- ----------- -----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal Payments on First
Mortgage (236,496) (216,733) 292,188
Purchase of Treasury Stock (76,435) (73,822) (82,002)
Other -0- -0- -0-
------------ ------------ ------------
Net Cash Flows Provided (Used)
by Financing Activities (312,931) (290,555) (374,190)
-------- -------- --------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 38,302 488,308 589,496
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 891,119 301,623 301,623
----------- ----------- -----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 929,421 $ 789,931 $ 891,119
=========== =========== ===========
3
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HOLOBEAM, INC.
Notes to Condensed Financial Statements
Form 10Q
June 30, 2000
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, 2000 and 1999 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, 2000 and
1999.
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, 2000 are not necessarily indicative of the results
of operations to be expected for a full year.
4
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HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
June 30, 2000
(1) Material Changes in Financial Condition
During the nine months and three months ended June 30,
2000, the Registrant's financial condition continued to
improve. Working Capital at June 30, 2000 was $449,113.00 as
compared to $387,361.00 at March 31, 2000 and $365,225.00 at
September 30, 1999.
Cash flows from the Registrant's rental properties are
expected to remain at levels sufficient to provide for funding
of the Registrant's activities over the life of the
Registrant's operating leases. Costs associated with the
rental properties, which consist mainly of depreciation and
insurance expenses are expected to rise at rates equal to the
inflation rates for the Bergen County, New Jersey area in
which the Registrant conducts business. The Registrant
anticipates continued improvement in its financial condition
during the next twelve months. (Reference is made to Form
10K, Item 7, for the year ended September 30, 1999.)
The Registrant will continue funding its surgical staple
project at rates consistent with the current year's
expenditures and anticipates that funding will continue during
5
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HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
June 30, 2000
the next twelve (12) months. Funding of this project is not
expected to have a materially adverse effect upon the
Registrant's financial condition.
Further tests will be performed on certain aspects of the
surgical staple configuration during the next twelve (12)
months as previous tests required clarification and are
going to be repeated before definitive results can be
determined. (Reference is made to Form 10K, Item 7 for the
year ended September 30, 1999.)
(2) Material Changes in the Results of Operations
During the three months and nine months ended June 30,
2000, the Registrant indicated after income tax earnings of
$108,179.00 and $226,765.00, respectively.
Such results represent increases of $59,092.00 and
$71,043.00 when compared to the results of operations one
year ago. Improved performance results primarily from
increased rental income associated with the Registrant's
operating leases, increased interest earned on cash
equivalents and reduced administrative expenses. The
Registrant expects that revenues and expenses will remain
relatively stable for the
6
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HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
June 30, 2000
balance of the fiscal year.
The Registrant funded the surgical staple project in
the amounts of $47,003.00 and $145,209.00 for the three and
nine months ended June 30, 2000.
In addition, the Registrant funded its defined benefit
plan during the nine months ended June 30, 2000 in the
amount of $165,961.00. These costs were charged to
administrative expense and are included in costs and
expenses on the Condensed Statement of Income.
Funding of these activities is not expected to have a
materially adverse effect upon the Registrant's financial
condition.
7
<PAGE>
PART II
HOLOBEAM, INC.
Signatures
Form 10Q
June 30, 2000
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 14, 2000
Holobeam, Inc.
Registrant
William M. Hackett
William M. Hackett
Treasurer and Director
<PAGE>
Exhibit A
HOLOBEAM, INC.
Computation of Earnings Per Common Share
Form 10Q
June 30, 2000
Nine Months Ended
June 30
2000 1999
PRIMARY
Net Income (Loss) $226,765 $155,722
SHARES
Weighted Average Number of Common
Shares of Outstanding 294,564 298,332
Primary Earnings Per Share $0.77 $0.52
