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, 1999
Commission File Number: 0-11050
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____
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, 1999
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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, 1999 and Nov. 30, 1998............................3
Balance Sheets for Nov. 30, 1999 and
August 31, 1999................................................4-5
Statement of Cash Flow for the Quarter
Ended Nov. 30, 1999..............................................6
Statement of Cash Flow for the Quarter
Ended Nov. 30, 1998..............................................7
Notes to Financial Statements for the Quarter
Ended Nov. 30, 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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Mammatech Corporation
Statements of Operations
(Unaudited)
Three Months Ended
November, 1999 November, 1998
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Sales, net $ 133,434 $ 135,632
Cost of sales $ 33,548 $ 50.564
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Gross Profit $ 99,886 $ 85,068
Selling, general and
administrative expense $ 107,443 $ 109,924
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Operating Income (Loss) $ (7,557) $ (24,856)
Other income
(expense)
Reimbursement (SBIR Grant) 37,205 57,002
Interest & Dividend Income 7,462 6,811
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44,667 63,813
Net Income before taxes $ 37,110 38,957
Provision for income taxes -0- -0-
Net Income 37,110 38,957
NET INCOME (LOSS) 37,110 38,957
============= =============
Net income (loss) per share .0004 .0004
============= =============
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, 1999 Aug. 31, 1999
(Unaudited) (Audited)
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ASSETS
- ------
Cash and Cash Equivalents $ 566,826 $ 498,212
Available for sale:
securities 76,506 76,506
Accounts receivable:
Trade 58,188 93,983
Other 3,548 3,548
Inventory 154,957 184,371
Deferred tax asset-
current portion 5,566 17,000
Other current assets
Total Current Assets 865,591 873,620
-------------------- ---------- ----------
Property and equipment 29,795 35,052
Deferred tax asset-
Non current portion 164,434 153,000
Other assets:
Other investments
Patents, trademarks, and
other intangibles, net of
accumulated amortization
of $66,955 and $64,675
respectively. 12,365 4,455
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Total other assets 206,594 191,507
------------------ ---------- ----------
TOTAL ASSETS $1,072,185 $1,065,127
========== ==========
The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Balance Sheets
As of August 31, 1999
and Nov. 30, 1999
(continued)
Nov.1999 Aug 1999
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
- -------------------
Current portion of long term debt 6,736 6,736
Accounts payable-trade $ 13,760 $ 36,421
Customer deposits -0- -0-
Accrued payable-officer 6,730 6,630
Accrued salaries 224,999 206,479
Accrued royalties 48,102 48,102
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TOTAL CURRENT LIABILITIES 300,327 307,368
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COMMITMENTS
Long term debt -0- -0-
Stockholders' equity:
Common stock, par value $.0001;
200,000,000 shares authorized;
100,352,500 shares issued
and outstanding $ 10,045 $ 10,045
Additional paid-in capital 2,810,884 2,810,884
Accumulated deficit (1,893,892) (1,907,992)
----------- -----------
927,037 912,937
Valuation allowance: mkt. sec (7,127) (7,127)
Treasury stock at cost,
6,208,500 shares (148,051) (148,051)
----------- -----------
771,859 757,759
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,072,186 $ 1,065,127
=========== ===========
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, 1999
Net cash flow from operating activities $ 63,357
=========
Investing Activities:
Purchase of fixed assets (5,257)
Financing activities:
Issuance of treasury shares -0-
Net increase (decrease) in cash 68,614
Beginning cash 498,212
---------
Ending cash $ 566,826
=========
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, 1998
Net cash flow from operating activities $ 63,379
========
Investing Activities:
Purchase of fixed assets 558
Financing activities:
Issuance of treasury shares -0-
Net increase (decrease) in cash 63,937
Beginning cash 342,740
--------
Ending cash $406,677
========
The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Notes to Financial Statements
Nov. 30, 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 Nov. 30, 1999, and the results of operations and changes in
financial position for the three months ended Nov. 30, 1999.
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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MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATION FOR MAMMATECH CORPORATION
For the first quarter of Fiscal 2000, net sales decreased 7.9% from the previous
quarter and were 1.6% below the first quarter of 1997. Operating costs of
$107,443 decreased 44% relative to the previous quarter but increased 2.2% in
comparison to the same period last year. Part of the decrease in operating costs
compared to the fourth quarter of 1999 is the result of accruals charged to that
period during the audit. The net income for the quarter was 4.7% below that of
the first quarter of 1999 but, because of the accruals, cannot be meaningfully
compared to the net income of the previous quarter.
The Company's professional training program continues to be a major focus of
activity. During the quarter, 14 new MammaCare Specialists were trained compared
to four the previous quarter and 16 during the first quarter of 1999. The
program is now being advertised in professional journals and bookings are
building for the Spring of 2000. Visibility for the program continues to involve
publicizing the achievements of each new MammaCare Specialist on the Company's
expanded web site (www.mammacare.com).
During the quarter, the Company supplied a large number of MammaCare Personal
Learning Systems to the Department of Health of the State of Nebraska. This
purchase was funded by a grant to the State from the Breast and Cervical Cancer
Detection Program of the Center for Disease Control. These Learning Systems will
be delivered to health care professionals throughout the State, marking the
first widespread distribution of the Company's entry level product to the
professional community. Sales to our German distributor increased slightly and
are continuing to be a stable source of revenue.
The Company's visibility was enhanced by an appearance in the October issue of
Redbook Magazine and by the content of an article published in the October 6
issue of the Journal of the American Medical Association. This article mentions
MammaCare favorably in the context of the need to improve professional
instruction in the performance of clinical breast examination.
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.
YEAR 2000 IMPLICATIONS. Many currently installed computer systems and software
products are coded to accept only two-digit entries in the date code field and
cannot reliably distinguish dates beginning on January 1, 2000 from dates prior
to the year 2000. Many companies' software and computer systems may need to be
upgraded or replaced in order to process correctly dates beginning in 2000 and
to comply with the "Year 2000" requirements. The Company has reviewed its
systems and internal programs and has determined that there are no significant
Year 2000 problems exist.None of the Company's products are in any way date
sensitive. However, although the Company believes that its systems are Year 2000
compliant, the equipment and software of its suppliers and subcontractors may
not be Year 2000 compliant. Failure of such third-party equipment or software to
properly process dates for the year 2000 and thereafter could require the
Company to incur unanticipated expenses to remedy any problems, which could have
a materially adverse effect on its business, results of operations and financial
condition.
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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, 1999.
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10-Q
For the three months ended Nov. 30, 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
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DATE: January 14, 2000 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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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-2000
<PERIOD-END> NOV-30-1999
<CASH> 566,826
<SECURITIES> 76,506
<RECEIVABLES> 61,736
<ALLOWANCES> 0
<INVENTORY> 154,957
<CURRENT-ASSETS> 865,591
<PP&E> 29,795
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,072,185
<CURRENT-LIABILITIES> 300,327
<BONDS> 0
0
0
<COMMON> 10,035
<OTHER-SE> 2,810,884
<TOTAL-LIABILITY-AND-EQUITY> 1,072,186
<SALES> 133,434
<TOTAL-REVENUES> 0
<CGS> 33,548
<TOTAL-COSTS> 107,443
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 37,110
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 37,110
<EPS-BASIC> .00
<EPS-DILUTED> .00
</TABLE>
