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, 1997
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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
- ------------------------------- ---------------------
(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
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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, 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
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PART I.
FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements
Statements of Operations for Three Months
Ended May 31, 1997 and May 31, 1996...........................3
Balance Sheets for May 31, 1997
August 31, 1996..............................................4-5
Statement of Cash Flow for the Quarter
Ended May 31, 1997............................................6
Statements of Cash Flow for the Quarter
Ended May 31, 1996............................................7
Notes to Financial Statements for the Quarter
Ended May 31, 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
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<PAGE>
<TABLE>
<CAPTION>
Mammatech Corporation
Statements of Operations
(Unaudited)
Nine Months Ended Three Months Ended
May May May May
1997 1996 1997 1996
------------ ----------- ---------- -----------
<S> <C> <C> <C> <C>
Sales, net $ 253,743 252,186 $ 78,231 102,503
Cost of sales 79,326 81,905 28,530 36,497
------------ ----------- ---------- -----------
Gross Profit 174,417 170,281 49,701 66,006
Selling,general
and adminstra-
tive expense $ 132,063 192,328 39,350 53,225
------------ ------------ ---------- -----------
Operating Income 42,354 (22,047) 10,351 12,781
------------ ------------ ---------- -----------
(Loss)
Other income
(expense) 97,846 30,147
Interest &
Dividend Income 7,307 3,829 2,743 1,221
Utilization of oper
loss carryforward 9,932 16,824 2,618 8,942
------------ ------------ ----------- ------------
Net income before
taxes 59,593 96,453 15,712 53,091
Provision for income
tax 9,932 16,824 2,618 8,942
Operating loss
carry forward 9,932 16,824 2,618 8,942
NET INCOME (LOSS) 49,661 79,629 13,094 44,149
------------ ------------ ----------- ------------
Net income (loss)
per share .0005 .0008 .0001 .0001
============ ============ =========== ============
Weighted
average shares 100,352,500 100,352,500 100,352,500 100,352,500
============ ============ =========== ============
The accompanying notes are an integral part of the financial statements.
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</TABLE>
<PAGE>
Mammatech Corporation
Balance Sheets
May 31, 1997 Aug. 31, 1996
(Unaudited) (Audited)
----------- ---------
ASSETS
- ------
Cash and Cash Equivalents $175,019 179,651
Accounts receivable:
Trade 43,794 34,287
Other 3,235 3,246
Inventory 155,638 94,903
Other current assets -- --
Total Current Assets 378,686 312,087
Property and equipment 45,191 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 $424,639 $365,925
The accompanying notes are an integral part of the financial statements.
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<PAGE>
Mammatech Corporation
Balance Sheets
As of August 31, 1996
and May 31, 1997
(continued)
May 1997 Aug 1996
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
Accounts payable-trade $ 38,390 $ 21,594
Accrued payable-officer 8,630 8,630
Short term debt 1,718 3,325
Accrued expenses 49,487 55,624
----------- -----------
TOTAL CURRENT LIABILITIES 98,225 89,173
COMMITMENTS
Long term dept 9,223 9,223
Stockholders' equity:
Common stock, par value $.0001;
200,000,000 shares authorized;
80,352,500 shares issued
and outstanding $ 10,035 $ 10,035
Additional paid-in capital 2,809,594 2,809,594
Accumulated deficit (2,354,388) (2,404,049)
----------- -----------
465,241 415,580
Treasury stock at cost,
7,408,500 shares
(148,051) (148,051)
----------- -----------
317,190 267,529
----------- -----------
TOTAL LIABILITIES AND $ 424,638 $ 365,925
STOCKHOLDERS' EQUITY
The accompanying notes are an integral part of these statements.
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<PAGE>
Mammatech Corporation
Statement of Cash Flow
For the Nine Months Ending
May 31, 1997
Net cash flow from operating activities 11,688
=========
Investing Activities:
Sale of certificate of deposit -0-
Purchase of furniture and fixtures (7,086)
Financing activities:
Net increase (decrease) in cash (4,602)
Beginning cash 179,651
---------
Ending cash $ 175,049
=========
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<PAGE>
Mammatech Corporation
Statement of Cash Flow
For the Nine Months Ending
May 31, 1996
Net cash flow from operating activities 15,924
=========
Investing Activities:
Sale of certificate of deposit -0-
Purchase of furniture and fixtures (25,895)
Financing activities:
Net increase (dcrease) 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, 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 May 31, 1997, and the results of operations and changes in
financial position for the three months ended May 31, 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
The third quarter of Fiscal 1997 was somewhat disappointing in comparison to the
previous quarter and the third quarter from a one year ago. Sales were up 1%
over the previous quarter but were 24% less than sales during the third quarter
of 1996. Operating income of $10,351 reflects an decrease of 19% from the
previous year and a 34% decline compared with the previous quarter. The nine
month figures show as 0.6% increase in sales for the current year and a
substantial increase in operating income. Comparisons with nine-month figures
from a year ago are misleading to the extent that the Company had an SBIR grant
during 1996 that added to both its operating expense and net income for that
period. Thus, for example, the nine-month figure for net income for a year ago
is 60.3% greater than the corresponding figure for this year. The net income for
the current quarter was 70% less than it was during the second quarter. It is
worth noting that the second quarter was the second best in the Company's
history and that sales during the current quarter were impacted to an unknown
extent by the extensive flooding in the midwest during the time when major
promotions for Breast Cancer Awareness Month normally occur.
During the quarter,the Company completed negotiations and signed a distribution
agreement with a German concern. The agreement provides for exclusive
representation in Germany and the German- speaking portions of Austria and
Switzerland. The distributor has undertaken translation of certain of the
Company's videotapes and printed materials and will begin marketing in earnest
in the early fall. There can be no assurance that substantial revenues will
result from this association. The Company notes with pleasure, however, an
interview conducted with the President by a representative of a Munich
Television station. They are planning an hour long prime time program which will
incorporate portions of the Company's videotapes.
The Company also made a substantial sale of breast models and other training
materials to a firm under contract to train U.S. military personnel and their
dependents stationed in Germany and Italy. It is impossible to estimate the
magnitude of follow-up orders, if any, from this activity.
Finally, the Company was pleased to have a favorable story concerning
MammaCare(R) appear in the May 13th issue of Family Circle. A steady stream of
inquiries and orders has resulted but the revenue resulting from this exposure
will not be substantial.
The Company remains essentially debt-free and has no immediate 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 on Form 8-K
(a.) Exhibits - None
(b.) There were no reports filed on Form 8-K during the three months
ending May 31, 1997.
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<PAGE>
10-Q
For the three months ended May 31, 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: 6/30/97 BY: /S/ HENRY S. PENNYPACKER
-------------------------------------
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-31-1997
<PERIOD-END> MAY-31-1997
<CASH> 175,019
<SECURITIES> 0
<RECEIVABLES> 43,794
<ALLOWANCES> 0
<INVENTORY> 155,638
<CURRENT-ASSETS> 378,682
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 424,639
<CURRENT-LIABILITIES> 98,225
<BONDS> 0
0
0
<COMMON> 10,035
<OTHER-SE> 2,809,594
<TOTAL-LIABILITY-AND-EQUITY> 424,638
<SALES> 253,743
<TOTAL-REVENUES> 0
<CGS> 79,326
<TOTAL-COSTS> 132,063
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 59,593
<INCOME-TAX> 9,932
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 49,661
<EPS-PRIMARY> .005
<EPS-DILUTED> .00
</TABLE>
