May 15, 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 March 31, 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.
<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: March 31, 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, Ho-Ho-Kus, New Jersey 07423
(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.
293,635 Common Shares at April 29, 2000
<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 Exhibit A
<PAGE>
PART I
HOLOBEAM, INC.
Condensed Balance Sheets
ASSETS
March 31,2000 Sept. 30, 1999
Current Assets
Cash and Cash Equivalents $ 932,791 $ 891,119
Short Term Investments -0- -0-
Other Current Assets 10,609 12,610
----------- -----------
Total Current Assets 943,400 903,729
----------- -----------
Investments in Real Estate, Net 5,587,432 5,687,452
Machinery & Equipment, Net 27,224 32,864
Deferred Tax Asset -0- -0-
Other Non-Current Assets 517,679 539,198
---------- -----------
Total Assets $ 7,075,735 $ 7,163,243
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ -0- $ 6,510
Accrued Expenses 165,194 188,822
Income Taxes Payable 60,800 24,340
Current Portion of Long Term Debt 330,045 318,832
----------- -----------
Total Current Liabilities 556,039 538,504
----------- -----------
Mortgage Payable, Net of Current
Portion 5,485,893 5,653,044
Real Estate Commissions Payable -0- -0-
----------- -----------
Total Liabilities 6,041,932 6,191,548
----------- -----------
Shareholders' Equity
Common Stock 30,559 30,559
Paid-In-Capital 9,825,498 9,825,498
Accumulated Deficit ( 8,631,920) ( 8,750,505)
Treasury Stock, At Cost ( 190,334) ( 133,857)
----------- -----------
Shareholders' Equity 1,033,803 971,695
----------- -----------
Total Liabilities and
Shareholders Equity $7,075,735 $7,163,243
=========== ===========
1
<PAGE>
HOLOBEAM, INC.
Condensed Statement of Income
Three Months Ended Six Months Ended
March 31, March 31,
2000 1999 2000 1999
Revenue
Rental Income $496,104 $472,479 $ 992,208 $960,708
Interest Income 9,107 7,188 19,722 15,808
Other -0- -0- -0- -0-
-------- -------- ---------- --------
Total Revenue 505,211 479,667 1,011,930 976,516
------- ------- --------- -------
Costs and Expenses
Rental Expenses 55,200 55,010 110,400 110,126
General and Admin. Expenses 184,444 158,508 334,611 312,437
Research and Development 47,474 55,893 98,206 101,780
Interest 129,765 136,350 260,667 274,263
Other -0- 360 -0- 360
-------- -------- ---------- --------
Total Costs and Expenses 416,883 406,121 803,884 798,966
-------- -------- -------- --------
Income Before Income Taxes 88,328 73,546 208,046 177,550
Income Tax Expense 41,644 29,375 89,460 70,915
------- ------- ---------- --------
Net Income $ 46,684 $ 44,171 $ 118,586 $106,635
======== ======== ========== ========
Weighted Average Number of
Shares Outstanding 294,487 297,618 295,301 298,742
Net Income Per Share $0.16 $0.15 $0.40 $0.36
2
<PAGE>
HOLOBEAM, INC.
Condensed Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
6 Months 6 Months 12 Months
Ended Ended Ended
3/31/00 3/31/99 9/30/99
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income, (Loss) $ 118,586 $ 106,635 $ 197,161
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Depreciation 105,975 102,820 211,865
Amortization 27,120 27,380 54,958
Decrease, (Increase) In:
Deferred Tax Asset -0- -0- -0-
Patent and Patent
Application Costs (5,601) 5,383 (8,075)
Accounts Receivable -0- -0- (28)
Real Estate Brokers
Commissions -0- -0- (33,862)
Increase, (Decrease) In:
Accounts Payable and
Accrued Expenses 6,322 145,072 119,052
Other 1,370 9,326 1,133
----------- ----------------------
Total Adjustments 135,186 279,215 345,243
----------- ----------------------
Net Cash Provided (Used) by
Operating Activities 253,772 385,850 542,404
----------- ----------------------
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 (155,938) (142,905) 292,188
Purchase of Treasury Stock (56,477) (70,422) (82,002)
Other -0- -0- -0-
--------- --------- ---------
Net Cash Flows Provided (Used)
by Financing Activities (212,415) (213,327) (374,190)
-------- -------- --------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 41,672 593,805 589,496
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 891,119 301,623 301,623
----------- ----------------------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 932,791 $ 895,428$ 891,119
=========== ======================
3
<PAGE>
HOLOBEAM, INC.
Notes to Condensed Financial Statements
Form 10Q
March 31, 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 March 31, 2000 and 1999 and the results of
operations for the three months and six months then ended and the
statement of cash flows for the three months and six months ended
March 31, 2000.
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 six months
ended March 31, 2000 are not necessarily indicative of the results
of operations to be expected for a full year.
4
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
March 31, 2000
(1) Material Changes in Financial Condition
Cash flows from the Registrant's operating activities
continued to be sufficient to fund short term requirements.
Cash flows from operating activities for six months ended
March 31, 2000 provided approximately $253,800.00, which was
sufficient to fund the development activities associated with
the Registrant's surgical staple project and real estate
rental operations.
The Registrant expects to continue funding the surgical
staple project during the remainder of the fiscal year begun
October 1, 1999. Such funding is estimated to approximate an
additional $125,000.00 through September 30, 2000. (Reference
is made to the Registrant's Annual Report, Form 10K, Item 7,
for the year ended September 30, 1999.)
The Registrant also funded its defined benefit plan
during the quarter ended March 31, 2000 in the amount of
$76,943.00. This cost was charged to General and
Administrative expense and is included in the costs and
5
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
March 31, 2000
expenses on the Condensed Statement of Income. (Reference is made
to the Registrant's Annual Report, Form 10K, Item 7(2), for the
year ended September 30, 1998.)
The Registrant intends to continue funding these
activities in the short term and such funding is not expected
to have a materially adverse effect upon the Registrant's
financial condition.
(2) Material Changes in the Results of Operations
During the three months and six months ended March 31,
2000, the Registrant produced after-tax earnings of $46,684.00
and $118,586.00, respectively, as compared to $44,171.00 and
$106,635.00 for the same periods one year ago.
Revenues in connection with the Registrant's real estate
rental activities increased to $496,104.00 and $992,208.00
from $472,479.00 and $960,708.00 for the periods covered by
this report. These revenue increases result from incremental
rental income received in connection with the terms and
conditions of the current operating leases.
In the three months and six months ending March 31, 2000,
6
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
March 31, 2000
the Registrant continued to fund the research activities
associated with its surgical staple project. Expenses associated
with this project were $47,474.00 and $98,206.00 for the respective
periods.
At present, the Registrant is planning follow-on tests to
the initial animal experiments performed during fiscal year
1999. Certain aspects of the staple design changed due to the
experience gained from initial tests. The Registrant expects
to continue funding the project during fiscal year 2000, with
such costs anticipated to approximate $225,000.00 for the
year.
Revenues and expenses associated with the Registrant's
operating and research activities are anticipated to remain at
levels sufficient to provide the positive cash flows necessary
to sustain profitable operations during fiscal year 2000.
7
<PAGE>
HOLOBEAM, INC.
Signatures
Form 10Q
March 31, 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: May 15, 2000
Holobeam, Inc.
Registrant
William M. Hackett
William M. Hackett
Treasurer and Director
8
<PAGE>
Exhibit A
HOLOBEAM, INC.
Statement of Computation of Per Common Share Earnings
Form 10Q
March 31, 2000
Three Months Six Months
Ended March 31, Ended March 31,
2000 1999 2000 1999
PRIMARY
Net Income $46,684 $44,171 $118,586 $106,635
SHARES
Weighted Average
Number of Common
Shares Outstanding 294,487 297,618 295,301 298,742
Earnings Per Share $0.16 $0.15 $0.40 $0.36
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> MAR-31-2000
<CASH> 932,791
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 943,400
<PP&E> 7,501,903
<DEPRECIATION> 1,887,247
<TOTAL-ASSETS> 7,075,735
<CURRENT-LIABILITIES> 556,039
<BONDS> 0
0
0
<COMMON> 30,559
<OTHER-SE> 1,003,244
<TOTAL-LIABILITY-AND-EQUITY> 7,075,735
<SALES> 0
<TOTAL-REVENUES> 1,011,930
<CGS> 0
<TOTAL-COSTS> 208,606
<OTHER-EXPENSES> 334,611
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 260,667
<INCOME-PRETAX> 208,046
<INCOME-TAX> 89,460
<INCOME-CONTINUING> 118,586
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 118,586
<EPS-BASIC> .40
<EPS-DILUTED> .40
</TABLE>
