FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
of the Securities Exchange Act of 1934
For Quarter ended January 31, 2000 Commission file number 0-8006
COX TECHNOLOGIES, INC.
FKA Energy Reserve, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
ARIZONA 86-0220617
- ------------------------------ -------------------
(State or Other Jurisdiction of (IRS Employer
Incorporation or Organization) Identification No.)
69 McAdenville Road, Belmont, North Carolina 28012
Registrant's telephone number, including area code (704) 825-8146
Energy Reserve, Inc., 2432 W. Peoria Avenue, Suite 1181, Phoenix, Arizona 85029
- --------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report
Indicated by check mark whether the registrant (1) has filed all reports
required to be filed by section 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 [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicated by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE USERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class - Common Stock, without par value
23,618,261 Shares Outstanding at January 31, 2000
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
INDEX
FACE SHEET 1
INDEX 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS 3
Consolidated Balance Sheets at
January 31, 2000 and April 30, 1999 4
Consolidated Statements of Operations and Accumulated Deficit
Three Months Ended January 31, 2000 and 1999 5
Nine Months Ended January 31, 2000 and 1999 6
Statement of Cash Flows
Nine Months Ended January 31, 2000 and 1999 7
Notes to Consolidated Financial Statements 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9-13
PART II. OTHER INFORMATION AND SIGNATURE 14-15
2
<PAGE>
FINANCIAL INFORMATION
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Cox Technologies, Inc. and its subsidiaries, Twin Chart, Inc., its subsidiary
Transit Services, Inc., Vitsab, AB, Sweden, Vitsab, Inc., (collectively the
Company), engage in the business of producing and distributing transit
temperature recording instruments, both domestically in United States and
internationally. The Company also engages in acquiring, developing and selling
oil properties, and in producing and selling crude oil for its own account in
the United States. As such the Company has not and does not engage in petroleum
refining or retail marketing.
The Consolidated Financial Statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading. It is suggested that these
condensed financial statements be read in conjunction with the financial
statements and data notes thereto included in the Company's annual report on
Form 10-K, for the year ended April 30, 1999.
In the opinion of the Company, all adjustments have been included which are
necessary for the preparation of the balance sheets of Cox Technologies, Inc.
and consolidated subsidiaries at January 31, 2000 and April 30, 1999 and to a
fair statement of the results of operations for the three months ended January
31, 2000 and 1999 and for the nine months ended January 31, 2000 and 1999.
3
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
(FORMERLY, ENERGY RESERVE, INC., AND SUBSIDIARIES)
CONSOLIDATED BALANCE SHEETS
JANUARY 31, 2000 AND APRIL 30, 1999
January 31, April 30,
2000 1999
------------ ------------
ASSETS
CURRENTS ASSETS:
Cash and cash equivalents (Note A) $ 1,323,453 $ 1,250,810
Accounts receivable, less allowance
for doubtful accounts of $29,527 at
January 31, 2000 and April 30, 1999 1,527,868 1,599,079
Inventory (Note B) 1,471,142 1,542,663
Investment in securities 51,211
Notes receivable-current portion 17,993 30,477
Prepaid expenses 46,409 65,860
------------ ------------
TOTAL CURRENT ASSETS 4,386,865 4,540,100
Property and equipment (net) 7,420,062 7,109,762
Investments in securities 584,950 300,000
Patents 106,250 0
Deposits 144,497 23,692
Goodwill (Note A) 817,247 886,783
Notes receivable - non-current portion 105,567 16,855
------------ ------------
TOTAL ASSETS $ 13,565,438 $ 12,877,192
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 365,116 $ 582,542
Income taxes payable (Note C) 2,932 34,720
Current portion of long-term debt (Note A) 2,286,060 1,651,949
------------ ------------
TOTAL CURRENT LIABILITIES 2,654,108 2,269,211
Long-term debt 1,003,413 581,374
Minority Interest 669 669
------------ ------------
TOTAL LIABILIATIES 3,658,190 2,851,254
------------ ------------
COMMITMENTS AND CONTINGENCIES (Note D)
STOCKHOLDERS' EQUITY
Common stock, no par value: authorized 100,000,000
shares; issued and outstanding 23,618,261 shares
at January 31, 2000 and 23,618,261 shares at
April 30, 1999 (Note A) 20,306,098 20,306,098
Common stock subscribed 58,100 58,100
Contributed Capital 461,511 420,982
Treasury stock 0 (45,920)
Accumulated deficit (10,864,427) (10,667,609)
Less - notes receivable for common stock:
Subscribed (54,034) (45,713)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 9,907,248 10,025,938
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,565,438 $ 12,877,192
============ ============
See notes to Financial Statements
4
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
Three Months Ended January 31,
------------------------------
2000 1999
------------ ------------
REVENUE
Sales $ 2,483,773 $ 2,291,382
------------ ------------
COSTS AND EXPENSES
Cost of sales 1,498,743 1,152,941
General and administrative expenses 791,848 800,452
Sales expense 410,010 350,985
Interest expense 39,627 30,888
Depreciation and depletion 32,496 59,081
------------ ------------
TOTAL EXPENSE 2,772,724 2,394,347
------------ ------------
INCOME FROM OPERATIONS (288,951) (102,965)
------------ ------------
OTHER INCOME (EXPENSE)
Other income (expense) 25,058 58,212
------------ ------------
Earnings (loss) before income taxes (263,893) (44,753)
Provisions for income taxes (note B) 23,146 (34,000)
------------ ------------
NET EARNINGS (loss) (287,039) (10,753)
ACCUMULATED DEFICIT, beginning of period (10,577,388) (10,169,113)
------------ ------------
ACCUMULATED DEFICIT, end of period $(10,864,427) $(10,179,866)
============ ============
EARNINGS PER SHARE:
Net earnings (loss) $ (0.02) $ (0.002)
============ ============
See Notes to Financial Statements
5
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND ACCUMULATED DEFICIT
Nine Months Ended January 31,
------------------------------
2000 1999
------------ ------------
REVENUE
Sales $ 7,153,919 $ 6,912,770
------------ ------------
COSTS AND EXPENSES
Cost of sales 4,020,336 3,460,477
General and administrative expenses 2,031,201 1,986,904
Sales expense 1,117,203 1,061,098
Interest expense 128,177 108,408
Depreciation and depletion 86,421 134,403
------------ ------------
TOTAL EXPENSE 7,383,338 6,751,290
------------ ------------
INCOME FROM OPERATIONS (229,419) 161,480
OTHER INCOME (EXPENSE)
Other income (expense) 58,747 (264,723)
------------ ------------
Earnings (loss) before income taxes (170,672) 425,753
Provisions for income taxes (note B) 26,146 6,900
------------ ------------
NET EARNINGS (196,818) 418,853
ACCUMULATED DEFICIT, beginning of period (10,667,609) (10,598,719)
------------ ------------
ACCUMULATED DEFICIT, end of period $(10,864,427) $(10,179,866)
============ ============
EARNINGS PER SHARE:
Net earnings (loss) $ (0.01) $ 0.02
============ ============
See notes to Financial Statement
6
<PAGE>
COX TECHNOLOGIES, INC. AND SUBSIDIARIES
STATEMENT OF CASH FLOWS
Nine Months Ended January 31,
-----------------------------
2000 1999
----------- -----------
CASH FLOW FROM OPERATING ACTIVITIES
Net earnings (loss) $ (196,818) $ 418,853
Adjustments to reconcile net earnings
to net cash used by operating activities:
Depreciation and depletion 86,421 134,404
Loss on securities 0 180,500
Allowance for doubtful accounts (140) 0
CHANGES IN CURRENT ASSETS AND CURRENT LIABILITIES
(Increase) decrease in current assets:
Accounts receivable 71,351 10,397
Inventory 71,521 (582,548)
Prepaid expenses 19,451 237,175
Notes receivable and investments (76,228) (81,884)
Deferred taxes 0 30,000
(Increase) decrease in current liabilities:
Accounts payable and accrued expenses (249,214) 288,799
Current portion of long-term debt 0 722,184
----------- -----------
NET CASH FROM OPERATING ACTIVITIES (273,656) 1,357,880
----------- -----------
CASH FLOW FROM INVESTING ACTIVITIES
Patents (106,250) 0
Securities (233,738) 300,000
Goodwill 32,696 (1,239,941)
Purchase of property and equipment (359,881) (3,062,351)
Repurchase minority interest 0 (669)
----------- -----------
NET CASH FROM INVESTING ACTIVITIES (667,174) (4,002,961)
----------- -----------
CASH FLOW FROM FINANCING ACTIVITIES
Long term debt 1,056,150 504,510
Decrease in subscriptions receivable (8,321) 3,037
Issuance Common stock 0 843,933
Sale of Treasury stock 86,449 0
Deposits (120,805) 1,248
----------- -----------
NET CASH FROM FINANCING ACTIVITIES 1,013,473 1,352,728
----------- -----------
NET INCREASE (DECREASE) IN CASH 72,643 (1,292,353)
CASH, beginning of period 1,250,810 2,575,945
----------- -----------
CASH, end of period $ 1,323,453 $ 1,283,592
=========== ===========
See notes to Financial Statement
7
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
QUARTER ENDED JANUARY 31, 2000
NOTE A - CASH, NOTES PAYABLE AND COMMON STOCK
In June 1998, the Company acquired Vitsab, AB, a Swedish corporation in exchange
for 3,375,734 shares of the Company's unregistered common stock valued at
$843,933 or $0.25 per share and 950,000 shares of the common stock of Vitsab,
USA, Inc., a previously wholly-owned subsidiary of the Company with 4,750,000
issued shares of common stock outstanding and the assumption of certain debt in
the amount of $2,300,000 owed by Vitsab, AB to an unrelated company. The company
borrowed $1,750,000 from a bank under two notes and security agreements and
liquidated the referenced $2,300,000 for the discounted sum of $1,750,000.
The Company has pledged a $1,000,000 certificate of deposit with the lending
bank as collateral for the $1,750,000 borrowed funds. The loans were due and
payable within one year from June 1998. Under terms of the notes and security
agreements the Company was obligated to make eleven (11) monthly payments of
$19,258.01 and one (1) final payment of all outstanding principal and accrued
interest due February 10, 2000. The bank extended the monthly payments through
September 1999 and in September 1999 subsequent to the date of this January 31,
2000 Report, the Company refinanced its' indebtedness as follows:
a) consolidatd the unpaid balance on the $1,750,000 loan with,
b) an additional loan of $500,000 and,
c) arranged for monthly interest only payments of $4,479 to the bank with
a maturity date of February 10, 2000 for the consolidated indebtedness
with,
d) the understanding the consolidated loan would be reviewed at the
maturity date for conversion to a long-term indebtedness if not paid
or assumed through an equity financing of the Vitsab corporate
structure independent of Cox Technologies, Inc.
On March 6, 2000 the bank amended the maturity date of the aggregate $2,250,000
of loans until July 5, 2000. As noted herein, a portion of this amount is
secured by a $1,000,000 certificate of deposit with the lending bank.
The debt/equity financing previously announced by the Company on February
16,2000 was funded on March 13, 2000 in the aggregate amount of $2,500,000. The
financing was accomplished under a Note Purchase Agreement dated March 10, 2000
with Technology Investors, LLC of Mooresville, NC as follows:
1. 10% Senior Subordinated Convertible Promissory Note due 2005Principal
and compounded interest payable in arrears at maturity with optional
prepayment after March 10, 2002
2. The right to convert the unpaid principal and accrued interest into
restricted common stock shares of the Company at any date prior to the
maturity date of the promissory note at a conversion price of $1.25
8
<PAGE>
NOTE A - CASH, NOTES AND COMMON STOCK (CONTINUED)
Additionally, the Company entered into Agreements with the two managers of the
LLC, Kurt C. Reid and Brian D. Fletcher as follows:
1. A consulting agreement with both individuals for financial policy and
enforcement, business strategy and equity value enhancement for the
sum of $1 each, per annum and a ten year option to purchase 300,000
shares each of the common stock of the Company at $1.25 per share.
2. Both individuals to be appointed as interim members to the Board of
Directors of the Company which will be caused to be expanded to 7
members.
3. Granted to both collectively, a Convertible Note Option for an
aggregate $500,000 financing under identical terms as the 10% Senior
Convertible Note Agreement with the LLC (except for the origination
and maturity dates). The Option shall expire on September 10,2000.
In February 2000, the Company issued 204,000 restricted shares of common stock
to various unrelated entities for an aggregate $296,640.
NOTE B - INVENTORY
Inventory at January 31, 2000 and April 30, 1999 consists of the following:
January 31, 2000 April 30, 1999
---------------- --------------
Raw materials $ 413,186 $ 367,752
Work-in-progress 313,433 315,690
Finished goods 739,567 859,221
Crude oil 4,956 0
---------- ----------
$1,471,142 $1,542,663
========== ==========
NOTE C - INCOME TAXES
The company and its subsidiaries file consolidated Federal income tax returns
and separate State income tax returns. The Company's provision for income taxes
is determined after application of a portion of its net operating loss carry
forward. As of January 31, 2000 the Company's unused net operating loss carry
forward was approximately $9,581,886.
NOTE D - COMMITMENTS AND CONTINGENCIES
There have been no changes in the disclosures of commitments, contingencies and
litigation as contained in the Company's annual report Form 10-K for the year
ended April 30, 1999.
9
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
At January 31, 2000 the Company had a working capital of $1,732,757. This is an
decrease of $538,132 for the nine months period May 1, 1999 to January 31, 2000.
The Company did incur increased long-term debt of $422,039 during the year to
date and investment in property and equipment increased $310,300. At present,
cash flow from operations is adequate to meet the cash requirements and
commitments of the Company. However, as previously stated elsewhere in this
report in Note A of Notes to Consolidated Financial Statements, the Company
entered into a Note Purchase Agreement in March 2000 with a North Carolina LLC.
The aggregate amount of the long-term debt/equity financing was $2,500,000,
which was funded on March 13, 2000. The Company plans to enter into additional
equity, debt or other financing arrangements to meet its future financial needs
for expansion and:
(a) To provide for general working capital needs including the servicing
of the Vitsab, AB, acquisition debt and operations
(b) To repay outstanding liabilities
COMPARISON OF OPERATIONS FOR THIRD QUARTER ENDED JANUARY 31, 2000 AND 1999
Net loss for the third fiscal quarter ended January 31, 2000 was $287,039 as
compared to a net loss of $10,753 for the same period ended January 31, 1999.
The loss from operations for the third quarter ended January 31, 2000 was
$288,951 as compared to income of $319,431 for the prior year similar quarter.
10
<PAGE>
COMPARISON OF OPERATIONS FOR THIRD QUARTER - CONTINUED
The following schedule reflects the operations of the three industry segments of
the Company for the fiscal quarters ended January 31, 2000 and 1999.
<TABLE>
<CAPTION>
Three Months Ended January 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999
Recorders Recorders Oil Oil Vitsab Vitsab
---------- ----------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Sales $2,480,995 $ 2,287,632 $ 2,778 $ 0 $ 0 $ 3,750
Costs and Expenses
Cost of sales 1,147,721 989,337 9,021 4,140 342,001 59,500
General & administrative 742,227 737,532 49,621 53,063 0 0
Sales expense 410,010 350,985 0 0 0 0
Interest 1,656 1,284 0 0 37,971 39,461
Depreciation & depletion 20,217 63,081 0 0 12,279 (4,000)
---------- ----------- -------- --------- --------- ---------
Income (loss) operations 159,164 145,413 (55,864) (57,167) (392,251) (191,211)
Other income (expense) 25,207 (126,230) (149) 183,692 0 750
---------- ----------- -------- --------- --------- ---------
Earnings before income taxes 184,371 19,183 (51,141) 184,378 (310,517) (249,732)
Income taxes 23,146 (27,134) 0 6,866 0 0
---------- ----------- -------- --------- --------- ---------
Net earnings (loss) $ 161,225 $ 46,317 $(56,013) $ 133,391 $(392,251) $(190,461)
========== =========== ======== ========= ========= =========
</TABLE>
TEMPERATURE RECORDER OPERATIONS
Sales increased $193,363 or 8.5% for the third quarter 2000 as compared to the
same fiscal period of 1999. This resulted in an improvement of $13,751 in income
from operations.
The Company is currently developing a new temperature logger that is expected to
be more functional and complete than presently available logger technology.
Management anticipates the initial marketing of this product before the end of
the current fiscal year ending April 30, 2000.
Except for cost of sales and depreciation, all categories of expense remained
fairly static as a percentage ratio to sales.
Cost of sales was 46.3% of sales for the current quarter as compared to 43.2%
for the prior year period. This was due primarily to increased labor costs and
repairs.
11
<PAGE>
OIL PRODUCTION OPERATIONS
As discussed in the Company's annual report, Form 10-K for the year-ended April
30, 1999, the oil field operations are being operated under a farm-out
arrangement with an experienced operator. The costs to the Company for direct
oil field operations consist primarily of property taxes and field liaison
costs. The Company began receiving revenue from its oil production operations in
the third fiscal quarter of the current fiscal year.
Other income of $183,692 last year was realized from the settlement of
indebtedness at less than the recorded liability.
VITSAB OPERATIONS
This business segment was acquired in June 1998 and operations consist mainly of
marketing, production and product development. The Vitsab operations are more
fully disclosed in the Company's Form 10-K for the year-ended April 30, 1999.
Cost of sales expenditures represent costs of operations for both Malmo, Sweden
and Belmont, North Carolina operations. The net loss of the operation for the
three months period of the current year was $201,790 greater than the same
period of the prior year.
Cost of sales, which represents development and production costs, increased
$182,501 or 114.4% in the current period as compared to the same period last
year.
Management anticipates Vitsab sales activity prior to the end of the current
fiscal year ending April 30, 2000.
12
<PAGE>
COMPARISON OF OPERATIONS FOR THE NINE MONTHS ENDED JANUARY 31, 2000 AND 1999
There was a consolidated loss of earnings of $196,818 for the period ended
January 31, 2000, as compared to a net earning of $418,853 for the same period
ended January 31, 1999. To afford better analysis and comparison of the similar
periods of 2000 and 1999, the following schedule segregates the operations by
industry segments and provides a comparison of the oil production operations and
the temperature recorder operations.
<TABLE>
<CAPTION>
Nine Months Ended January 31,
---------------------------------------------------------------------------
2000 1999 2000 1999 2000 1999
Recorders Recorders Oil Oil Vitsab Vitsab
---------- ----------- -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Revenue:
Sales $7,151,141 $ 6,906,020 $ 2,778 $ 0 $ 2,000 $ 6,750
Cost and Expenses
Cost of Sales 3,306,240 3,090,587 13,521 7,390 619,843 362,500
General & administrative 1,880,161 1,856,785 151,040 120,262 80,732 0
Sales 1,117,203 1,061,098 0 0 0 0
Interest 14,266 13,412 0 9,857 113,911 94,996
Depreciation & depletion 51,581 113,403 0 0 36,840 21,000
---------- ----------- --------- -------- --------- ---------
Income (loss) operations 781,690 770,735 (161,783) 137,509 (849,326) (471,746)
Other income (expense) 58,144 (158,873) 603 422,396 0 750
---------- ----------- --------- -------- --------- ---------
Earnings before income taxes 839,834 611,862 (161,180) 284,887 (849,326) (470,996)
Income taxes 26,146 0 0 6,900 0 0
---------- ----------- --------- -------- --------- ---------
Net earnings $ 813,688 $ 611,862 $(161,180) $277,987 $(849,326 $(470,996)
========== =========== ========= ======== ========= =========
</TABLE>
* Vitsab 1999 operations covers only seven (7) months.
TEMPERATURE RECORDER OPERATIONS
Sales increased by $245,121 for the current nine-month period as compared to the
same period last year. Net income improved by $201,826.
Cost of sales was 46.2% of sales for the current period as compared to 44.8% for
last year. General and administrative expense increased $23,376 as compared to
last year. As a percent of sales, such expenses were 26.2% as compared to 26.8%
last year.
Sales expenses increased $56,105. As a percent of sales, such expenses were
15.6% for the current period and 15.4% for last year.
13
<PAGE>
COMPARISON OF OPERATIONS FOR NINE MONTHS ENDED JANUARY 31, 2000 AND 1999
(CONT'D)
OIL PRODUCTION OPERATIONS
As discussed in the Company's annual report, Form 10-K for the year-ended April
30, 1999, the oil field operations are being operated under a farm-out
arrangement with an experienced operator. The costs to the Company for direct
oil field operations consist primarily of property taxes and field liaison
costs. The Company began receiving revenue from its oil production operations in
the third fiscal quarter of the current fiscal year.
The increase in general and administrative expenses of $30,778 in 2000 as
compared to 1999 was due to costs and expenses associated with the Company's CT
Telecom division which is being operated from the Phoenix office and is included
under the oil productions. The CT Telecom division is developing a computer
software operating system that is expected to be a separate revenue center for
the Company by the fourth fiscal quarter of this fiscal year.
Other income of $183,692 last year was realized from the settlement of
indebtedness at less than the recorded liability.
VITSAB OPERATIONS
This business segment was acquired in June 1998 and operations consist mainly of
marketing, production and product development. The Vitsab operations are more
full disclosed in the Company's Form 10-K for the year-ended April 30, 1999.
Cost of sales expenditures represent costs of operations for both Malmo, Sweden
and Belmont, North Carolina operations.
A comparative analysis of the current operations and the prior year operations
would not be meaningful as the prior year operations cover only seven months
while the current operations cover nine months.
Management anticipates Vitsab sales activity prior to the end of the current
fiscal year ending April 30, 2000.
14
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to the annual report Form 10-K of the Company for the year
ended April 30, 1998 relative to legal proceedings and litigation. No charges or
determinations have occurred on such proceedings during the quarter covered by
this report.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) No exhibits are filed as a part of this report.
(b) There were no Form 8-K's filed by the Company during the quarter ended
January 31, 2000
SIGNATURES
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.
COX TECHNOLOGIES, INC.
Date March 20, 2000 By /s/ James L. Cox
-------------- -----------------------------------------
James L. Cox, President and Director
Date March 20, 2000 By /s/ Robert W. Dupree
-------------- -----------------------------------------
Robert W. Dupree, Chief Financial Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SECURITIES AND EXCHANGE COMMISSION FORM 10-Q OF COX TECHNOLOGIES, INC. FOR THE
QUARTER ENDED JANUARY 31, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> APR-30-2000
<PERIOD-START> NOV-01-1999
<PERIOD-END> JAN-31-2000
<EXCHANGE-RATE> 1
<CASH> 1,323,453
<SECURITIES> 0
<RECEIVABLES> 1,527,868
<ALLOWANCES> 28,524
<INVENTORY> 1,471,142
<CURRENT-ASSETS> 4,386,865
<PP&E> 7,420,062
<DEPRECIATION> 0
<TOTAL-ASSETS> 13,565,438
<CURRENT-LIABILITIES> 2,654,108
<BONDS> 0
0
0
<COMMON> 20,306,098
<OTHER-SE> (10,398,850)
<TOTAL-LIABILITY-AND-EQUITY> 13,565,438
<SALES> 2,483,773
<TOTAL-REVENUES> 2,508,831
<CGS> 1,498,743
<TOTAL-COSTS> 2,772,724
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 39,627
<INCOME-PRETAX> (263,893)
<INCOME-TAX> 23,146
<INCOME-CONTINUING> (288,951)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (287,039)
<EPS-BASIC> (0.012)
<EPS-DILUTED> (0.012)
</TABLE>
