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, 2000
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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)
(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, 2000
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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, 2000 and May 31, 1999....................3
Balance Sheets for May 31, 2000
August 31, 1999......................................4-5
Statement of Cash Flow for the Quarter
Ended May 31, 2000.....................................6
Statements of Cash Flow for the Quarter
Ended May 31, 1999.....................................7
Notes to Financial Statements for the Quarter
Ended May 31, 2000.........................................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>
Mammatech Corporation
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended Three Months Ended
May May May May
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Sales, net ........................... $ 344,529 322,802 $ 118,954 119,602
Cost of sales ........................ 83,084 104,828 31,370 32,009
------------- ------------- ------------- -------------
Gross Profit ......................... 261,445 217,974 87,584 87,593
Selling,general
and adminstra-
tive expense ......................... $ 306,437 302,087 101,487 104,981
------------- ------------- ------------- -------------
Operating Income ..................... (44,992) 84,113 (13,903) (17,388)
------------- ------------- ------------- -------------
(Loss)
Other income
(expense)
Interest &
Dividend Income ..................... 25,536 17,756 10,070 4,939
SBIR Grant .......................... 111,797 133,071 37,461 43,526
reimb
Utilization of oper ..................
loss carryforward .................... -0- -0- -0- -0-
Net income before
taxes ............................. 92,341 66,714 33,628 31,077
Provision for income
tax ............................... -0- -0- -0- -0-
NET INCOME (LOSS) .................... 92,341 66,714 33,628 31,077
------------- ------------- ------------- -------------
Net income (loss)
per share ............................ .00 .00 .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, 2000 Aug. 31, 1999
(Unaudited) (Audited)
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ASSETS
Cash and Cash Equivalents $ 638,638 498,212
Marketable Securities 76,506 76,506
Accounts receivable:
Trade 56,866 93,983
Other 3,548 3,548
Inventory 156,834 184,371
Other current assets
Deferred tax asset-
current portion 17,637 17,000
Total Current Assets 950,029 873,620
Property and equipment 26,802 34,052
Other assets:
Deferred tax asset-
Non current portion 152,363 153,000
Patents, trademarks, and
other intangibles, net of
accumulated amortization
of $53,080 and $46,942
respectively 16,260 4,455
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Total other assets 195,425 191,507
---------- ----------
TOTAL ASSETS $1,145,454 $1,065,127
The accompanying notes are an integral part of the financial statements.
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<PAGE>
Mammatech Corporation
Balance Sheets
As of August 31, 1999
and May 31, 2000
(continued)
May 2000 Aug 1999
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable-trade $ 23,314 $ 36,421
Accrued payable-officer 6,630 6,630
Current portion of long term debt 6,736 6,736
Accrued salaries 232,655 209,479
Accrued royalties 48,102 48,102
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TOTAL CURRENT LIABILITIES 317,437 307,368
COMMITMENTS
Long term debt -- --
Stockholders' equity:
Common stock, par value $.0001;
200,000,000 shares authorized;
80,352,500 shares issued
and outstanding $ 10,045 $ 10,045
Additional paid-in capital 2,810,884 2,810,884
Accumulated deficit (1,837,734) (1,907,992)
----------- -----------
----------- -----------
983,195 912,937
Valuation allowance for
marketable securities (7,127) (7,127)
Treasury stock at cost,
6,208,500 shares (148,051) (148,051)
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828,017 757,759
TOTAL LIABILITIES AND $ 1,145,454 $ 1,065,127
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, 2000
Net cash flow from operating activities $ 92,340
=========
Adjustments to reconcile to net income
Operating activities
(Inc)/Dec accounts receivable 37,120
(Inc)/Dec inventory 5,291
(Inc)/Dec other assets 9,051
Inc/(Dec) accounts payable (3,587)
Inc/(Dec) accrued expenses (14,416)
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Net cash provided by operating activities 62,291
Investing Activities:
Accrual:amortization for product development (14,205)
Sale of certificate of deposit -0-
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Net cash from investing activities (14,205)
Financing activities: -0-
Net increase (decrease) in cash 140,426
Beginning cash 498,212
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Ending cash $ 638,638
=========
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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 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
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Ending cash $274,139
========
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<PAGE>
Mammatech Corporation
Notes to Financial Statements
May 31, 2000
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, 2000, and the results of operations and changes in
financial position for the three months ended May 31, 2000.
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 2000 were encouraging. Sales increased
28% over the previous quarter but were 0.1% less than sales during the third
quarter of 1999. The operating loss of $13,903 decreased 43% from the loss of
the previous quarter and decreased 20% from the comparable figure in the third
quarter of 1999. 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 $33,627 is 60.7% greater than that of the the previous quarter and is
8% greater than the figure reported for the third quarter of 1999.
The nine month figures show an 6.7% increase in sales for the current year
compared to last year and a substantial decline in both cost of sales (20.7%)
and operating loss (46.5%). Net income for the period increased 38.4% over the
previous year.
During the quarter, the Company graduated ten new MammaCare Specialists, one
fewer than last quarter and one fewer than the third quarter last year. The
Company also launched a Yahoo Store site in order to make available on a mass
scale its entry level MammaCare Personal Learning System. The Company is working
with its web site contractor to attract traffic to the site.
The Company's SBIR research program aimed at validating the Company's Adaptive
MammaCare systems for visually impaired and deaf and hard of hearing women is
nearing completion. Preliminary analysis of the results indicates that the
adaptive version enables visually impaired to perform MammaCare Breast
Self-Examination (MBSE) at levels of proficiency comparable to those exhibited
by sighted women. Similar results are expected for the deaf and hard of hearing
population. The Company is now in discussions with agencies concerning
distribution of these new products to these special populations.
The Company is continuing its 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.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 may be 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, if it does, there will
be any substantial financial benefit to the Company.
During the quarter, a senior member of management conducted a MammaCare Clinical
Breast Examination (MCBE) training session in Charleston, WV under the auspices
of the WV Breast and Cervical Cancer Screening Program. Participant evaluation
data suggest that the program was well received and that MammaCare will continue
to be widely used by breast health professionals in that state.
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, 2000.
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<PAGE>
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: ______________________ BY: _______________________________
Henry S. Pennypacker, President
and Director
BY: _______________________________
Mary Sellers, Treasurer and
Chief Financial Officer
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