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, 1999 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, 1999
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.
294,972 Common Shares at January 31, 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, 6
PART II
Signatures 7
Computation of Earnings Per Common Share Exhibit A
<PAGE>
PART I
HOLOBEAM, INC.
Condensed Balance Sheets
ASSETS
Dec. 31, 1999 Sept. 30, 1999
Current Assets
Cash and Cash Equivalents $ 894,321 $ 891,119
Short Term Investments -0- -0-
Other Current Assets 5,935 12,610
--------- ----------
Total Current Assets 900,256 903,729
--------- ----------
Investments in Real Estate, Net 5,637,442 5,687,452
Machinery & Equipment, Net 29,886 32,864
Deferred Tax Asset -0- -0-
Other Non-Current Assets 526,924 539,198
--------- ----------
Total Assets $ 7,094,513 $ 7,163,243
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 60,375 $ 6,510
Accrued Expenses 82,234 188,822
Income Taxes Payable 46,130 24,340
Current Portion of Mortgage Payable 325,860 318,832
--------- ----------
Total Current Liabilities 514,599 538,504
--------- ----------
Mortgage Payable, Net of Current
Portion 5,568,897 5,653,044
Real Estate Commissions Payable -0- -0-
--------- ----------
Total Liabilities 6,083,496 6,191,548
Shareholders' Equity --------- ---------
Common Stock 30,559 30,559
Paid-In-Capital 9,825,498 9,825,498
Accumulated Deficit ( 8,678,604) ( 8,750,505)
Treasury Stock, At Cost ( 166,436) ( 133,857)
----------- ----------
Shareholders' Equity 1,011,017 971,695
---------- ----------
Total Liabilities and
Shareholders Equity $7,094,513 $7,163,243
========== =========
1
<PAGE>
HOLOBEAM, INC.
Condensed Statement of Income
3 Months Ended
December 31
1999 1998
Revenue
Rental Income $496,104 $488,229
Interest Income 10,615 8,620
Other -0- -0-
------- -------
Total Revenue 506,719 496,849
Costs and Expenses
Rental Expenses 55,200 55,116
General and Administrative Expenses 150,167 153,929
Research and Development 50,732 45,887
Interest 130,902 137,913
Other -0- -0-
------ -------
Total Costs and Expenses 387,001 392,345
------ ------
Income Before Income Taxes 119,718 104,004
Income Tax Expense 47,816 41,540
------- -------
Net Income $ 71,902 $ 62,464
======= ======
Weighted Average Number of Common
Shares Outstanding 296,105 298,518
Net Income Per Share $0.24 $0.21
2
<PAGE>
HOLOBEAM, INC.
Condensed Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
3 Months 3 Months 12 Months
Ended Ended Ended
12/31/99 12/31/98 9/30/99
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Income, (Loss) $ 71,902 $ 62,464 $ 197,161
-------- --------- ---------
Adjustments to Reconcile Net
Income to Net Cash Provided
by Operating Activities:
Depreciation 52,988 51,410 211,865
Amortization 13,560 13,690 54,958
Decrease, (Increase) In:
Patent and Patent
Application Costs ( 1,291) ( 1,178)( 8,075)
Accounts Receivable -0- -0- ( 28)
Real Estate Brokers
Commissions -0- -0- ( 33,862)
Increase, (Decrease) In
Accounts Payable and
Accrued Expenses ( 30,933) 26,379 119,052
Other 6,673 11,770 1,333
-------- ------- -------
Total Adjustments 40,997 102,071 345,243
--------- -------- -------
Net Cash Provided (Used) by
Operating Activities 112,899 164,535 542,404
-------- -------- --------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Capital Expenditures -0- -0- -0-
Sale of Short Term
Investments -0- -0- 421,282
Purchase of Short Term
Investments -0- ( 78,599) -0-
---------- ------------ --------
Net Cash Flows from Investing
Activities -0- ( 78,599) 421,282
--------- ----------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Principal Payments on First
Mortgage ( 77,119) ( 70,671) ( 292,188)
Purchase of Treasury Stock ( 32,578) ( 70,422) ( 82,002)
Other -0- -0- -0-
----------- ---------- ----------
Net Cash Flows Provided (Used)
by Financing Activities ( 109,697) ( 141,093) ( 374,190)
---------- ---------- ---------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 3,202 ( 55,157) 589,496
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 891,119 301,623 301,623
-------- --------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 894,321 $ 246,466 $ 891,119
========== ========== ==========
3
<PAGE>
HOLOBEAM, INC.
Notes to Condensed Financial Statements
Form 10Q
December 31, 1999
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, 1999 and 1998 and the results of operations for the three
months then ended and the statement of cash flows for the three months ended
December 31, 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 ended December 31, 1999
are not necessarily indicative of the results 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
December 31, 1999
(1) Material Changes in Financial Condition
During the three month period ended December 31, 1999,
the Registrant's cash flows from operating activities
continued to be sufficient to fund its short term
requirements. Cash from operating activities provided
approximately $113,000.00 to fund the Registrant's research
and development activities associated with the surgical staple
project.
The Registrant expects to continue funding the surgical
staple project which is expected to approximate $250,000.00
during the fiscal year begun October 1, 1999. During the
quarter ended December 31, 1999, the Registrant's expenses
associated with the surgical staple project were approximately
$50,700.00. (Reference is made to the Registrant's Annual
Report, Form 10K, Item 7 for the year ended September 30, 1999.)
The Registrant's defined benefit pension plan received
funding in the amount of $76,943.00 during the quarter ended
December 30, 1999 and was charged to General and Admini-strative expense.
(Reference is made to the Registrant's
Annual Report, Form 10K, Item 7(2) for the year ended
5
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
December 31, 1999
September 30, 1998.)
Continued funding of the surgical staple project and the
defined benefit plan is not expected to have a materially
adverse effect upon the Registrant's financial position.
(2) Material Changes in the Results of Operations
During the three months ended December 31, 1999, the
Registrant recorded after-tax income of $71,902.00 which
represents an increase of $9,438.00 when compared to the
results of operations for the three months ended December 31, 1998.
Revenues associated with the Registrant's real estate
rental activities increased to $496,104.00 from $488,229.00
for the quarter when compared to the comparable period in
1998. This increase resulted from incremental rental income
associated with the Registrant's operating leases and serves
to reimburse the Registrant for cost of living increases.
Expenses associated with the Registrant's research and
development activities increased $4,845.00 when compared to
the expenses for the quarter ended December 31, 1998.
The Registrant anticipates that revenues and expenses
6
<PAGE>
HOLOBEAM, INC.
Form 10Q
Management's Discussion and Analysis of Financial Condition
and Results of Operations
December 31, 1999
associated with its operations will remain at levels sufficient to provide
the cash flows necessary to support its activities during fiscal 2000.
7
<PAGE>
PART II
HOLOBEAM, INC.
Signatures
Form 10Q
December 31, 1999
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, 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
DECEMBER 31, 1999
Three Months Ended
December 31,
1999 1998
PRIMARY
Net Income $ 71,902 $ 90,857
SHARES
Weighted Average Number of Common
Shares of Outstanding 296,105 306,010
Earnings Per Share $0.24 $0.30
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 894,321
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 900,256
<PP&E> 7,501,588
<DEPRECIATION> 1,834,260
<TOTAL-ASSETS> 7,094,513
<CURRENT-LIABILITIES> 514,599
<BONDS> 0
0
0
<COMMON> 30,559
<OTHER-SE> 980,458
<TOTAL-LIABILITY-AND-EQUITY> 7,094,513
<SALES> 0
<TOTAL-REVENUES> 506,719
<CGS> 0
<TOTAL-COSTS> 105,932
<OTHER-EXPENSES> 150,167
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 130,902
<INCOME-PRETAX> 119,718
<INCOME-TAX> 47,816
<INCOME-CONTINUING> 71,902
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 71,902
<EPS-BASIC> .24
<EPS-DILUTED> .24
</TABLE>
