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, 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
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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 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, 1997
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100,352,500 shares of which
6,208,500 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 Nov. 30, 1997 and Nov. 30, 1996....................3
Balance Sheets for Nov. 30, 1997 and
August 31, 1997........................................4-5
Statement of Cash Flow for the Quarter
Ended Nov. 30, 1997......................................6
Statement of Cash Flow for the Quarter
Ended Nov. 30, 1997......................................7
Notes to Financial Statements for the Quarter
Ended Nov. 30, 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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Mammatech Corporation
Statements of Operations
(Unaudited)
Three Months Ended
November, 1997 November, 1996
Sales, net $ 175,012 $ 97,883
Cost of sales $ 47,925 $ 28,859
------------ ------------
Gross Profit $ 127,087 69,024
Selling, general and
administrative expense $ 79,906 $ 52,769
------------ ------------
Operating Income (Loss) $ 47,181 16,259
Other income
(expense)
Reimbursement (SBIR Grant) 26,307 0
Interest & Dividend Income 3,830 1,955
------------ ------------
30,136 1,955
Net Income before taxes $ 77,317 18,210
Provision for income taxes 0 0
Net Income 77,317 18,210
NET INCOME (LOSS) 77,317 18,210
============ ============
Net income (loss) per share .0008 .0002
============ ============
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, 1997 Aug. 31, 1997
(Unaudited) (Audited)
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ASSETS
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Cash and Cash Equivalents $254,584 $169,088
Available for sale:
securities 82,752 82,752
Accounts receivable:
Trade 46,135 62,745
Other 3,236 3,236
Inventory 166,237 162,019
Other current assets
Total Current Assets 552,944 479,840
-------------------- -------- --------
Property and equipment 53,422 49,082
Other assets:
Other investments
Patents, trademarks, and
other intangibles, net of
accumulated amortization
of $64,675 and $64,376
respectively 6,032 1,262
-------- --------
Total other assets 6,032 1,262
------------------ -------- --------
TOTAL ASSETS $612,398 $530,184
======== ========
The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Balance Sheets
As of August 31, 1997
and Nov. 30, 1997
(continued)
Nov.1997 Aug. 1997
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
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Current portion of long term debt 2,704 3,578
Accounts payable-trade $ 44,239 $ 38,722
Customer deposits 0 0
Accrued payable-officer 6,630 6,630
Accrued expenses 58,623 58,368
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TOTAL CURRENT LIABILITIES 112,196 107,298
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COMMITMENTS
Long term debt 5,527 5,527
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 (2,183,155) (2,260,471)
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636,474 559,158
Valuation allowance: mkt. sec 6,252 6,252
Treasury stock at cost,
6,208,500 shares (148,051) (148,051)
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494,675 417,359
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 612,398 $ 530,184
=========== ===========
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, 1997
Net cash flow from operating activities $ 81,156
========
Investing Activities:
Purchase of fixed assets 4,340
Financing activities:
Issuance of treasury shares -0-
Net increase (decrease) in cash 85,496
Beginning cash 169,088
--------
Ending cash $254,584
========
The accompanying notes are an integral part of the financial 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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Mammatech Corporation
Notes to Financial Statements
Nov. 30, 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 Nov. 30, 1997, and the results of
operations and changes in financial position for
the three months ended Nov. 30, 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.
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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 1998 are the second best in the
Company's history, exceeded only by those of the previous quarter. Net sales
decreased 5.4% from the previous quarter and were 78% greater than the first
quarter of 1997. The operating costs of $79,906 represents a increase of 27%
relative to the previous quarter and 19% in comparison to the same period last
year. The net income for the quarter was 7.9% below that of the previous quarter
but 425% above that of the prior year quarter.
The Company continued to expand its customer base during the first quarter of
1998. The German distributor launched the product line late in the quarter amid
considerable national publicity. Revenues from that effort have yet to
materialize. In addition, a distribution agreement was reached with the
Brazilian health care organization with which the Company had been in
negotiations for several months. A principal of that concern came to the
Company's training center for intensive training in the entire MammaCare(R)
technology. No revenues have yet resulted from that activity although an
impressive web site has been established and the Company is hopeful that future
sales in Brazil will be substantial. A major portion of the first quarter
revenue was the result of two contractors purchasing substantial amounts of
MammaCare(R) products fur use in conducting training in military installations
in Europe.
The most significant development of the quarter was the launch of the Phase II
SBIR project designed to validate the Company's adaptive versions of
MammaCare(R) for use by visually or hearing impaired women. The project will
involve placing several hundred individual learning systems in the homes of
volunteers from these populations, then surveying them to determine the
acceptability of the products. Although in future quarters this project will
result in a small number of internal sales of prototype systems, there can be no
assurance that long term enhancement of revenues will result from this research.
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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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, 1997.
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<PAGE>
10-Q
For the three months ended Nov. 30, 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
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DATE: ______________________ BY: _______________________________
Henry S. Pennypacker, President
and Director
BY: _______________________________
Mary Sellers, Treasurer and
Chief Financial Officer
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<PERIOD-END> NOV-30-1997
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<SECURITIES> 82,752
<RECEIVABLES> 46,135
<ALLOWANCES> 0
<INVENTORY> 166,237
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<PP&E> 53,422
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<CURRENT-LIABILITIES> 112,196
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<CGS> 47,925
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