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, 1999
Commission File Number: 0-11050
Mammatech Corporation
---------------------
(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
- ----------------------------------------- -----
(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, 1999
------------
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, 1999 and May 31, 1998....................3
Balance Sheets for May 31, 1999
August 31, 1998......................................4-5
Statement of Cash Flow for the Quarter
Ended May 31, 1999.....................................6
Statements of Cash Flow for the Quarter
Ended May 31, 1998.....................................7
Notes to Financial Statements for the Quarter
Ended May 31, 1999.....................................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 May May May
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
Sales, net $ 322,802 365,314 $ 119,602 142,835
Cost of sales 104,828 103,020 32,009 38,886
------------- ------------- ------------- -------------
Gross Profit 217,974 262,294 87,593 103,949
Selling, general
and adminstra-
tive expense $ 302,087 226,016 104,981 133,303
------------- ------------- ------------- -------------
Operating Income (Loss) (84,113) 36,278 (17,388) 29,354
------------- ------------- ------------- -------------
Other income
(expense)
Interest &
Dividend Income 17,756 13,063 4,939 4,564
SBIR Grant. reimb 133,071 103,088 43,526 37,697
Utilization of oper.
loss carryforward -0- -0- -0- -0-
Net income before
taxes 66,714 152,429 31,077 12,907
Provision for income
tax -0- -0- -0- -0-
NET INCOME (LOSS) 66,714 152,429 31,077 12,907
------------- ------------- ------------- -------------
Net income (loss)
per share .01 .01 .00 .00
============= ============= ============= =============
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, 1999 Aug. 31, 1998
(Unaudited) (Audited)
----------- ---------
ASSETS
- ------
Cash and Cash Equivalents $433,013 342,740
Marketable Securities 106,445 94,377
Accounts receivable:
Trade 55,192 74,983
Other 3,218 3,190
Inventory 207,713 201,574
Other current assets -- --
Total Current Assets 805,581 716,864
Property and equipment 35,443 43,622
Other assets:
Patents, trademarks, and
other intangibles, net of
accumulated amortization
of $53,080 and $46,942
respectively 7,392 8,657
-------- --------
Total other assets 7,392 8,657
-------- --------
TOTAL ASSETS $848,416 $769,143
The accompanying notes are an integral part of the financial statements.
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<PAGE>
Mammatech Corporation
Balance Sheets
As of August 31, 1998
and May 31, 1999
(continued)
May 1999 Aug 1998
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
- -------------------
Accounts payable-trade $ 42,397 $ 48,595
Accrued payable-officer 6,630 6,630
Short term debt 4,796 4,796
Accrued expenses 172,072 163,996
----------- -----------
TOTAL CURRENT LIABILITIES 225,895 223,987
COMMITMENTS
Long term dept 1,940 1,940
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 (2,063,064) (2,109,926)
----------- -----------
756,565 709,703
Valuation allowance for
marketable securities 12,068 (18,436)
Treasury stock at cost,
7,408,500 shares (148,051) (148,051)
----------- -----------
620,582 543,216
TOTAL LIABILITIES AND $ 848,417 $ 769,143
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, 1999
Net cash flow from operating activities $ 85,614
========
Investing Activities:
Sale of certificate of deposit -0-
Purchase of furniture and fixtures 4,659
Financing activities:
Net increase (decrease) in cash 90,273
Beginning cash 342,740
--------
Ending cash $433,013
========
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<PAGE>
Mammatech Corporation
Statement of Cash Flow
For the Nine Months Ending
May 31, 1998
Net cash flow from operating activities 99,524
========
Investing Activities:
Sale of certificate of deposit -0-
Purchase of furniture and fixtures 5,527
Financing activities:
Net increase (decrease) in cash 105,051
Beginning cash 169,088
--------
Ending cash $274,139
========
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<PAGE>
Mammatech Corporation
Notes to Financial Statements
May 31, 1999
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, 1999, and the results of operations and changes in
financial position for the three months ended May 31, 1999.
Note 2. Loss per share is based on the weighted average number of shares
outstanding during each period.
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<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATION FOR MAMMATECH CORPORATION
Results for the third quarter of Fiscal 1999 were mixed. Sales were up 77% over
the previous quarter but were 16.2% less than sales during the third quarter of
1998. The operating loss of $17,388 reflects a decrease of 58% from the loss of
the previous quarter but does not compare favorably with the operating gain of
$29,354 posted in the third quarter of 1998.The operating loss is largely the
result of expense due to the SBIR grant that is not offset by sales. When
reimbursement is included, the net income of $31,101 compares favorably to the
loss of $2,991 for the previous quarter and is 141% greater than the figure
reported for the third quarter of 1998.
The nine month figures show an 11.6% decrease in sales for the current year
compared to last year and a substantial decline in both operating income and net
income with the latter decreasing by 56.2%. The decline in sales is largely
responsible for this outcome.
During the quarter, the Company intensified its training efforts and graduated
eleven new MammaCare Specialists. Additionally, the Company was represented by
its two Training Directors at the Ninth Annual Breast Center Development
Conference organized by the National Consortium of Breast Centers, Inc. This
exposure generated a large number of potential contacts which are presently
being developed as customers for the training program. Of course, there can be
no assurance that such trainings will materialize or that any significant
revenue with result.
The Company also entered into a collaborative relationship with Multi-Media
Systems, Inc. of Rockville, Md. to adapt the Company=s proprietary technology
for teaching and performing clinical breast examination (CBE) to the automated
training technology being developed by Multi-Media with the support of an SBIR
Phase II grant. Revenue to the Company will be in the form of consulting fees
and a small amount of product sales. In the event the eventual technology proves
effective, the Company is prepared to enter a marketing and distribution
agreement with Multi-Media such that the technology will be included in the
package offered to breast centers and medical training facilities. Again, there
can be no assurance that any effective technology will result from this
collaboration or that, even if it does, there will be any substantial financial
benefit therefrom to the Company.
Finally, the Company has entered preliminary discussions with an organization in
Mexico aimed at distributing the Spanish versions of MammaCare products in that
country. It is too early to forecast the success of this venture, but the
Company is eager to extend its technology to this population.
The Company remains essentially debt-free and has no immediate liquidity
problems. It continues to search for other corporate affiliations that will 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, 1999.
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<PAGE>
10-Q
For the three months ended May 31, 1999
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 13, 1999 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-31-1999
<PERIOD-END> MAY-31-1999
<CASH> 433,013
<SECURITIES> 106,449
<RECEIVABLES> 55,192
<ALLOWANCES> 0
<INVENTORY> 207,713
<CURRENT-ASSETS> 805,581
<PP&E> 35,443
<DEPRECIATION> 0
<TOTAL-ASSETS> 848,416
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 10,035
<OTHER-SE> 2,809,594
<TOTAL-LIABILITY-AND-EQUITY> 848,417
<SALES> 322,802
<TOTAL-REVENUES> 0
<CGS> 104,828
<TOTAL-COSTS> 302,087
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 66,714
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 66,714
<EPS-BASIC> .01
<EPS-DILUTED> .01
</TABLE>
