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: Nov. 30, 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
- ------------------------------- --------------------
(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 No X
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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
Nov. 30, 1996
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100,352,500 shares of which
6,208,500 are treasury shares
TITLE OF EACH CLASS
- -----------------------------
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 Nov. 30, 1996 and Nov. 30, 1995.................... 3
Balance Sheets for Nov. 30, 1996 and
August 31, 1996.......................................... 4-5
Statement of Cash Flow for the Quarter
Ended Nov. 30, 1996...................................... 6
Statement of Cash Flow for the Quarter
Ended Nov. 30, 1996...................................... 7
Notes to Financial Statements for the Quarter
Ended Nov. 30, 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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Mammatech Corporation
Statements of Operations
(Unaudited)
Three Months Ended
November, 1996 November, 1995
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Sales, net $ 97,883 $ 72,059
Cost of sales $ 28,859 $ 22.733
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Gross Profit 69,024 49,326
Selling,general and
administrative expense $ 52,769 $ 65,988
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Operating Income (Loss) $ 16,255 $ (16,672)
Other income
(expense)
Reimbursement (SBIR Grant) 0 26,688
Interest & Dividend Income 1,955 1,342
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1,955 28,030
Net Income before taxes $ 18,210 $ 11,358
Provision for income taxes 3,985 2,186
Net Income before 22,195 13,544
Extraordinary item
Operating loss carryforward 3,985 2,186
NET INCOME (LOSS) 18,210 11,358
============= =============
Net income (loss) per share .0002 .0002
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Weighted average shares 100,352,500 100,352,500
============= =============
The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Balance Sheets
Nov. 30, 1996 Aug. 31, 1996
(Unaudited) (Audited)
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ASSETS
- ------
Cash and Cash Equivalents $198,696 $179,651
Accounts receivable:
Trade 29,431 34,287
Other 3,233 3,246
Inventory 96,737 94,903
Other current assets
Total Current Assets 328,097 312,087
--------------------- -------- --------
Property and equipment 49,277 52,277
Other assets:
Other investments
Patents, trademarks, and
other intangibles, net of
accumulated amortization
of $59,148 and $53,080
respectively 1,561 1,561
-------- --------
Total other assets 1,561 1,561
-------------------- -------- --------
TOTAL ASSETS $378,935 $365,925
======== ========
The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Balance Sheets
As of August 31, 1996
and Nov. 30, 1996
(continued)
Nov.1996 Aug 1996
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
- -------------------
Accounts payable-trade $ 23,219 $ 21,594
Customer deposits -0- -0-
Accrued payable-officer 8,630 8,630
Short term debt 2,526 3,325
Accrued expenses 49,598 55,624
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TOTAL CURRENT LIABILITIES 83,973 89,173
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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 (2,385,839) (2,404,049)
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433,790 415,580
Treasury stock at cost,
6,208,500 shares (148,051) (148,051)
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285,739 267,529
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 378,935 $ 365,925
=========== ===========
The accompanying notes are an integral part of these statements
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Mammatech Corporation
Statement of Cash Flow
For the Three Months Ending
Nov. 30, 1996
Net cash flow from operating activities $ 16,045
========
Investing Activities:
Purchase of fixed assets 3,000
Financing activities:
Issuance of treasury shares -0-
Net increase (decrease) in cash 19,045
Beginning cash 179,651
--------
Ending cash $198,696
========
The accompanying notes are an integral part of the financial statements.
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<PAGE>
Mammatech Corporation
Statement of Cash Flow
For the Three Months Ending
Nov. 30, 1995
Net cash flow from operating activities $ 5,195
========
Investing Activities:
Purchase of fixed assets (5,116)
Financing activities:
Issuance of treasury shares -0-
Net increase (decrease) in cash (79)
Beginning cash 136,702
-------
Ending cash $136,623
========
The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Notes to Financial Statements
Nov. 30, 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 Nov. 30, 1996, and the results of operations and changes in
financial position for the three months ended Nov. 30, 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
Results for the first quarter of Fiscal 1997 are encouraging and consistent with
the Company's established growth trajectory. Net sales increased 23.3% from the
previous quarter and were 35.8% greater than the first quarter of 1996. The
operating costs of $52,769 represents a decrease of 25% relative to the previous
quarter and 20% in comparison to the same period last year. The net income for
the quarter was 60% above that of the first quarter of 1996. A meaningful
comparison to the net income of the last quarter of 1996 is not possible since
various end-of-year charge-offs resulted in a loss for that period.
The Company continued to expand its customer base during the first quarter of
1997. Substantial orders were received from the Bureau of Health of the State of
Maine and the Indiana Department of Health, both as a result of the Company's
participation in the BCCCP Programs of various states that are funded by the
Center for Disease Control. In addition, The College of Nursing at Florida
International University and the Department of Health Education at Mississippi
State University placed sizeable orders for training materials. Finally, the
Anti-Cancer Council of Victoria, Australia again placed a large order for breast
models. This signals a revival of their program which began in mid 1980's but
had been dormant for several years.
The most significant development of the quarter was the purchase of MammaCare(R)
Specialist training by several military installations on the East Coast.
MammaCare(R) Specialist training is a four or five day intensive program which
prepares a nurse or other health care professional to provide MammaCare(R)
training to either patients or other health care professionals, including
physicians. In the case of the military installations, the intent is to provide
superior clinical breast examination to female personnel and female dependents,
so trained specialists will be upgrading the skills of physicians at their
facilities.
With the exception of a small note to an unaffiliated supplier for a
manufacturing facility, the Company remains debt free and has no immediate
liquidity problems. It continues to seek a relationship with a larger health
care organization.
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<PAGE>
PART II - OTHER INFORMATION
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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 Nov. 30, 1996.
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<PAGE>
10-Q
For the three months ended Nov. 30, 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
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DATE: JANUARY 9, 1997 BY: /S/ HENRY S. PENNYPACKER
------------------------------------
Henry S. Pennypacker, President
and Director
BY: /S/ MARY SELLERS
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Mary Sellers, Treasurer and
Chief Financial Officer
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-END> NOV-30-1996
<CASH> 198,696
<SECURITIES> 0
<RECEIVABLES> 32,644
<ALLOWANCES> 0
<INVENTORY> 96,737
<CURRENT-ASSETS> 328,097
<PP&E> 49,277
<DEPRECIATION> 0
<TOTAL-ASSETS> 378,935
<CURRENT-LIABILITIES> 83,973
<BONDS> 0
0
0
<COMMON> 10,035
<OTHER-SE> 2,809,594
<TOTAL-LIABILITY-AND-EQUITY> 378,935
<SALES> 97,883
<TOTAL-REVENUES> 0
<CGS> 28,859
<TOTAL-COSTS> 52,769
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 18,210
<INCOME-TAX> 3,985
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 3,985
<CHANGES> 0
<NET-INCOME> 18,210
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
