Form 10Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Quarter Ended: May 31, 1996
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Commission File Number: 0-11050
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Mammatech Corporation
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(Exact name of registrant as specified in its charter)
Florida 59-2181303
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
930 N.W. 8th Avenue, Gainesville, Florida 32601
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(Address of principal executive offices) (Zip Code)
(904) 375-0607
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(Registrant's telephone number, including area code)
Indicate 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 ninety 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:
Number of shares outstanding on
May 31, 1996
---------------------------------
100,352,500 shares of which
7,408,500 are treasury shares
TITLE OF EACH CLASS
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Common stock $.0001 par value
The total number of pages of this report is 11
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Mammatech Corporation
INDEX
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PART I.
FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements
Statements of Operations for Three Months
Ended May 31, 1996 and May 31, 1995.................... 3
Balance Sheets for May 31, 1996
August 31, 1995........................................ 4-5
Statement of Cash Flow for the Quarter
Ended May 31, 1996..................................... 6
Statements of Cash Flow for the Quarter
Ended May 31, 1995..................................... 7
Notes to Financial Statements for the Quarter
Ended May 31, 1996..................................... 8
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of Operations......... 9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K............. 10
SIGNATURES............................................ 11
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<TABLE>
<CAPTION>
Mammatech Corporation
Statements of Operations
(Unaudited)
Nine Months Ended Three Months Ended
-------------------------- --------------------------
May 1996 May 1995 May 1996 May 1995
<S> <C> <C> <C> <C>
Sales, net $252,186 $212,850 $102,503 $ 71,653
Cost of sales 81,905 66,615 36,497 25,493
Gross Profit 170,281 146,235 66,006 46,160
Selling, general, and administrative
expenses 192,328 115,351 53,225 36,857
Operating income (loss) (22,047) 30,884 12,781 9,302
Other income (SBIR)
(expense) 97,846 613 30,147 613
Interest and dividend income 3,829 3,783 1,221 2,657
Utilization of oper. loss
carry forward 16,824 6,791 8,942 2,419
Net income before taxes 96,453 42,070 53,091 14,992
Provision for income tax 16,824 6,791 8,942 2,419
Operating loss carry forward 16,824 6,791 8,942 2,419
Net Income (loss) 79,629 35,280 44,149 12,573
Net income (loss) per share .0008 .0003 .0004 .0001
Weighted average shares(x100) 100,352.5 100,352.5 100,352.5 100,352.5
The accompanying notes are an integral part of the financial statements.
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</TABLE>
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Mammatech Corporation
Balance Sheets
BALANCE SHEETS
May 31, 1996 Aug. 31, 1995
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(Unaudited) (Audited)
ASSETS
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Cash and Cash Equivalents $146,673 136,702
Accounts receivable:
Trade 79,882 71,505
Other 3,153 3,114
Inventory 72,085 33,141
Other current assets - -
Total Current Assets 301,793 244,462
Property and equipment 57,833 31,938
Other assets:
Patents, trademarks, and other
intangibles, net of accumulated
amortization of $53,080 and
$46,942 respectively. 4,541 5,291
Total other assets 4,541 5,291
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TOTAL ASSET $364,167 $281,691
======== ========
The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Balance Sheets
As of August 31, 1995
and May 31, 1996
(continued)
May 1995 Aug 1995
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES
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Accounts payable-trade $ 15,652 $ 25,189
Accrued payable-officer 8,630 8,630
Customer deposits
Accrued expenses 47,830 48,058
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TOTAL CURRENT LIABILITIES 72,112 81,877
COMMITMENTS
Long term debt 12,546
Stockholders' equity:
Common stock, par value $.0001;
200,000,00 shares authorized;
80,352,000 shares issued
and outstanding $ 10,035 $ 10,035
Common stock subscriptions
Additional paid-in capital 2,809,594 2,809,594
Accumulated deficit (2,392,069) (2,471,764)
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427,560 347,865
Treasury stock at cost,
7,408,500 shares
( 148,051) ( 148,051)
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279,509 199,814
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TOTAL LIABILITIES AND $ 364,167 $ 281,691
STOCKHOLDERS' EQUITY
The accompanying notes are in integral part of these statements.
-5-
<PAGE>
Mammatech Corporation
Statement of Cash Flow
For the Nine Months Ending
May 31, 1995
Operating Activities:
Net Gain $35,279
Adjustments to reconcilke net loss
to net cash:
Depreciation 2,133
Amortization 3,070
Increase in receivables 17,849
Increase in inventory (7,572)
Increase in other current assets ( 184)
Increase in other assets (3,070)
Increase in accounts payable 9,962
Increase in account payable (officer) (3,200)
Increase in accrued expenses (1,135)
Net cash flow from operating activities 53,132
======
Investing Activities:
Sale of certificate of deposit 50,000
Purchase of furniture and fixtures (25,893)
Financing activities:
Net increase (decrease) in cash 77,238
Beginning cash 58,246
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Ending cash $135,484
========
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<PAGE>
Mammatech Corporation
Statement of Cash Flow
For the Nine Months Ending
May 31, 1996
Net cash flow from opoerating activities 15,924
Investing Activities:
Sale of certificate of deposit -0-
Purchase of furniture and fixtures (25,895)
Financing activities:
Net increase (decrease) in cash 9,971
Beginning cash 136,702
-------
Ending cash $146,673
========
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<PAGE>
MAMMATECH CORPORATION
NOTES TO FINANCIAL STATEMENTS
MAY 31, 1996
Note 1. In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the financial position
as of May 31, 1996, and the results of operations and changes in
financial position for the three months ended May 31, 1996.
Note 2. Loss per share is based on the weighted average number of shares
outstanding during each period.
Note 3. Gives effect to the Company's repurchasing 7,558,500 shares of
stock from shareholders for treasury stock.
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<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATION FOR MAMMATECH CORPORATION
The third quarter of fiscal 1996 was the second best in the Company's history
and continues the Company's recent positive trend. Sales were up 32.1m the
previous quarter and were 43.1% greater than the third quarter of 1995.
Operating income of $12,781 reflects an increase of 37.4% from the previous year
and compares favorably with the $18,155 loss of the previous quarter. The latter
figure, however, was inflated somewhat by the effect of the SBIR grant (see
below) on the Company's G&A account. The nine month figures show an 18.5%
increase in sales for the current year but a substantial decline in operating
income, again the result of the SBIR grant. This factor is also reflected in the
operating expense figures which are substantially higher for both the quarter
and nine-month period compared to last year. The net income figures, however,
exceed their counterparts from the previous year by 126% (nine months) and 247%
(three months). The net income exceeds that of the second quarter by 83.3%.
During the quarter, the Company conducted research supported by a Phase ISBIR
grant from the National Cancer Institute. The results of this research support
the contention that the Company's MammaCare Personal Learning System can be
adapted to meet the needs of visually impaired or hearing impaired women. When
trained with prototype variations of this learning system, women from these
populations acquire skills that are significantly superior to the skills they
acquire when taught using conventional training methods. In fact, their
competence approaches that of non-impaired women trained with the MammaCare
technology. As a result of these findings, the Company has submitted a proposal
for Phase II funding. The goal of the proposed research will be to establish the
acceptability of the prototype version(s) for home use by members of these
special populations. There can be no assurance that the proposal will be funded
or that if funded, significant revenues will flow to the Company as a result of
expansion into this market.
Finally, the Company conducted a promotional effort in recognition of Cancer
Awareness Month (April) which resulted in a substantial increase in sales. The
Company plans similar campaigns in the future, however no assurances are offered
that enhanced revenues will again result.
The Company remains essentially debt-free and has no imemdiate liquidity
problems. It continues to pursue a corporate affiliation designed to help it
realize the full commercial potential of its products.
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<PAGE>
PART II - OTHER INFORMATION
---------------------------
ITEM 6. Exhibits and Reports of Form 8-K
(a.) Exhibits - None
(b.) There were no reports filed on Form 8-K during the three months
ending Mary 31, 1996.
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<PAGE>
10-Q
For the three months ended May 31, 1996
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.
MAMMATECH CORPORATION
DATE: July 5, 1996 BY: /s/ HENRY S. PENNYPACKER
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Henry S. Pennypacker, President
and Director
BY: /s/ MARY SELLERS
---------------------------------
Mary Sellers, Treasurer and
Chief Financial Officer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-END> MAY-31-1996
<CASH> 146,673
<SECURITIES> 0
<RECEIVABLES> 79,882
<ALLOWANCES> 0
<INVENTORY> 72,085
<CURRENT-ASSETS> 301,793
<PP&E> 57,833
<DEPRECIATION> 0
<TOTAL-ASSETS> 364,167
<CURRENT-LIABILITIES> 72,112
<BONDS> 0
0
0
<COMMON> 10,035
<OTHER-SE> 2,809,594
<TOTAL-LIABILITY-AND-EQUITY> 364,167
<SALES> 252,186
<TOTAL-REVENUES> 0
<CGS> 81,905
<TOTAL-COSTS> 192,328
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 96,453
<INCOME-TAX> 16,824
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 79,628
<EPS-PRIMARY> .00
<EPS-DILUTED> .00
</TABLE>
