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: Feb. 28, 1997
Commission File Number: 0-11050
Mammatech Corporation
----------------------------------------------------
(Exact name of registrant as specified in its charter)
Florida 59-2181303
------------------------------ ---------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
930 N.W. 8th Avenue, Gainesville, Florida 32601
- ----------------------------------------- --------
(Address of principal executive offices) (Zip Code)
(352) 375-0607
--------------------------------------------------
(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
Feb. 28, 1997
--------------------------------
100,352,500 shares of which
7,408,500 are treasury shares
TITLE OF EACH CLASS
- -----------------------------
Common stock $.0001 par value
The total number of pages of this report is 11.
<PAGE>
Mammatech Corporation
INDEX
- --------------------------------------------------------------------------------
PART I.
FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements
Statements of Operations for Three Months
Ended Feb 28, 1997 and Feb. 28, 1996.....................3
Balance Sheets for Feb 28, 1997 and
August 31, 1996........................................4-5
Statement of Cash Flow for the Six Months
Ended Feb 28, 1997.......................................6
Statement of Cash Flow for the Quarter
Ended Feb. 28, 1996......................................7
Notes to Financial Statements for the Quarter
Ended Feb 28, 1997...........................................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
-2-
<PAGE>
<TABLE>
<CAPTION>
Mammatech Corporation
Statements of Operations
(Unaudited)
Six Months Ended Three Months Ended
February February February February
1997 1996 1997 1996
-------- -------- -------- ----------
<S> <C> <C> <C> <C>
Sales, net ....................................... $ 175,512 $ 149,683 $ 77,629 $ 77,624
----------- ----------- ----------- ----------
Cost of sales .................................... 50,796 45,408 21,937 22,675
----------- ----------- ----------- ----------
Gross Profit ..................................... 124,716 104,275 55,692 54,949
----------- ----------- ----------- ----------
Selling, General and ............................. 92,713 139,103 39,944 73,104
Administrative
Expenses
----------- ----------- ----------- ----------
Operating gain ................................... 32,003 (34,828) 15,748 (18,155)
(loss)
----------- ----------- ----------- ----------
Other Income (SBIR) .............................. 67,699 40,981
Interest and
dividends ........................................ 4,564 2,608 2,601 1,266
----------- ----------- ----------- ----------
Utilization of ................................... 7,313 7,090 3,670 4,818
operating
loss carryforward
----------- ----------- ----------- ----------
Net income before ................................ 43,880 42,569 22,019 28,910
taxes
----------- ----------- ----------- ----------
Provision for income ............................. 7,313 7,090 3,670 4,818
tax
----------- ----------- ----------- ----------
Operating loss ................................... 7,313 7,090 3,670 4,818
carryforward
----------- ----------- ----------- ----------
Net Income (loss) ................................ 36,567 35,479 18,349 24,092
----------- ----------- ----------- -----------
Net Income (loss) ................................ .0004 .0003 .0002 .0002
per share
----------- ----------- ----------- -----------
Weighted average ................................. 100,352,500 100,352,500 100,352,500 100,352,500
shares
</TABLE>
The accompanying notes are an integral part of the financial statements.
-3-
<PAGE>
<TABLE>
<CAPTION>
Mammatech Corporation
Balance Sheets
Feb 28, 1997 Aug. 31, 1996
(Unaudited) (Audited)
------------ -------------
<S> <C> <C>
ASSETS
Cash and Cash Equivalents .................. $178,760 $179,651
Accounts receivable:
Trade .................................... 38,617 34,287
Other .................................... 3,243 3,246
Inventory .................................. 135,377 94,903
Other current assets ....................... -- --
Total Current Assets ....................... 355,997 312,087
Property and equipment ....................... 46,827 52,277
Other assets:
Patents, trademarks, and
other intangibles, net of
accumulated amortization
of $53,080 and $46,942
respectively ............................. 1,762 1,561
Total other assets ........................... 1,762 1,561
-------- --------
TOTAL ASSETS ................................. $404,586 $365,925
======== ========
The accompanying notes are an integral part of the financial statements.
-4-
<PAGE>
<CAPTION>
Mammatech Corporation
Balance Sheets
As of August 31, 1996
and Feb 28, 1997
(continued)
Feb. 1997 Aug 1996
--------- --------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable-trade ....................... $ 30,626 $ 21,594
Accrued payable-officer ...................... 8,630 8,630
Short Term debt .............................. 2,524 3,325
Accrued expenses ............................. 49,487 55,624
----------- -----------
TOTAL CURRENT LIABILITIES .................... 91,267 89,173
----------- -----------
COMMITMENTS
Long Term Debt ............................... 9,223 9,223
Stockholders' equity:
Common stock, par value $.0001;
200,000,000 shares authorized;
100,352,500 shares issued
and outstanding ............................ $ 10,035 $ 10,035
Additional paid-in capital ................. 2,809,594 2,809,594
Accumulated deficit ........................ (2,367,482) (2,404,049)
----------- -----------
452,157 415,580
Treasury stock at cost,
6,208,500 shares ........................... (148,051) (148,051)
----------- -----------
304,096 267,529
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY ......................... $ 404,586 $ 365,925
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
-5-
<PAGE>
<TABLE>
<CAPTION>
Mammatech Corporation
Statement of Cash Flow
For the Six Months Ending
Feb 28, 1997
<S> <C>
Net cash flow from operating activities .................... $ 3,341
=========
Investing Activities:
Purchase of furniture and fixtures ..................... (2,450)
Financing activities:
Issuance of treasury shares ............................ -0-
Sale of marketable securities .............................. -0-
Net increase (decrease) in cash ............................ (891)
Beginning cash ............................................. 179,651
--------
Ending cash ................................................ 178,760
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-6-
<PAGE>
<TABLE>
<CAPTION>
Mammatech Corporation
Statement of Cash Flow
For the Six Months Ending
Feb 29, 1996
<S> <C>
Net cash flow from operating activities .................... $ 32,544
=========
Investing Activities:
Purchase of furniture and fixtures ..................... (7,916)
Financing activities:
Issuance of treasury shares ............................ -0-
Sale of marketable securities .............................. -0-
Net increase (decrease) in cash ............................ 24,628
Beginning cash ............................................. 136,702
--------
Ending cash ................................................ 161,330
========
</TABLE>
The accompanying notes are an integral part of the financial statements.
-7-
<PAGE>
Mammatech Corporation
Notes to Financial Statements
Feb 28, 1997
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 Feb 28, 1997, and the results of operations and changes in
financial position for the three months ended Feb 28, 1997.
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.
-8-
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATION FOR MAMMATECH CORPORATION
During the second quarter of fiscal 1997 the Company's sales revenues decreased
by 21% over the previous quarter but increased by $5 compared to the same period
one year ago. Gross profit increased 1.4% from the second quarter of 1996, but
decreased by 19.3% in comparison to last quarter. Operating expense during the
current quarter relative to the first quarter decreased by 24%, resulting in a
3% reduction in operating gain. Net income for the quarter was down 24% compared
to a year earlier, but was 0.7% higher than the first quarter of 1997. A major
difference between this year and last year was the absence of the Phase I SBIR
grant which added both revenue and expense during 1996.
A similar picture emerges with respect to the six-month figures. Sales revenues
increased 7% but the operating gain of $32,003 compared to a loss of $34,828
during the first six months of 1996 again reflects the absence of expense
associated with administering the SBIR project. The net result for the first
half of the year nevertheless shows an increase of 3% compared to the first six
months of fiscal 1996.
During the second quarter, the Company made a large sale of product to the West
Virginia Department of Human Resources in connection with that agency's
involvement with the Breast and Cervical Cancer Program of the Center for
Disease Control. The Indiana Division of the American Cancer Society also made a
substantial purchase as they undertake to bring the MammaCare technology to the
women of that state. Finally, the California Department of Health Services
continues to purchase substantial quantities of special MammaCare products
designed to support their experimental program for teaching competent clinical
breast examination to community physicians.
The Company also began negotiations with a German concern which seeks to become
the exclusive distributor of MammaCare products throughout Germany and the
German speaking portions of Switzerland and Austria. Terms and conditions have
been agreed to and the Company expects to sign the agreement in the near future.
There can be no assurance that substantial revenues will result from this
association, however, but the Company believes that the German health care
system is an ideal outlet for MammaCare products and training services.
The Company continues to seek other opportunities to expand its marketing and
manufacturing activities to meet the growing world-wide interest in its
products.
-9-
<PAGE>
PART II - OTHER INFORMATION
- ---------------------------
Item 6. Exhibits and Reports on Form 8-K
(a.) Exhibits - None
(b.) There were no reports filed on Form 8-K during the three months ending
Feb 28, 1997.
-10-
<PAGE>
10-Q
For the three months ended Feb 28, 1997
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: April 7, 1997 BY: /s/ Henry S. Pennypacker
-------------------------------------
Henry S. Pennypacker,
President and Director
BY: /s/ Mary Sellers
----------------------------
Mary Sellers, Treasurer and
Chief Financial Officer
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-END> FEB-28-1997
<CASH> 178,760
<SECURITIES> 0
<RECEIVABLES> 38,617
<ALLOWANCES> 0
<INVENTORY> 135,377
<CURRENT-ASSETS> 355,997
<PP&E> 46,827
<DEPRECIATION> 0
<TOTAL-ASSETS> 404,586
<CURRENT-LIABILITIES> 100,490
<BONDS> 0
0
0
<COMMON> 10,035
<OTHER-SE> 2,809,594
<TOTAL-LIABILITY-AND-EQUITY> 404,586
<SALES> 175,512
<TOTAL-REVENUES> 0
<CGS> 50,796
<TOTAL-COSTS> 92,713
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 43,880
<INCOME-TAX> 7,313
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 36,567
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
