U.S. Securities and Exchange Commission
Washington D.C. 20549
Form 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION
13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
[ ]TRANSITION REPORT UNDER SECTION 13 OR
15(d) OF THE EXCHANGE ACT
For the transition period from to
Commission file number 0-12183
AN-CON GENETICS, INC.
(Exact name of small business issuer as
specified in its charter)
Delaware 11-2644611
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
One Huntington Quadrangle, Melville, New York 11747
(Address of principal executive offices)
(516) 694-8470
(Issuer's telephone number)
N/A
(Former name, former address and former
fiscal year, if changes since last report)
Check whether the issuer (1) filed all reports
required to be filed by Section or 15(d) of
the Exchange Act during the past 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 90 days.
Yes [ X ] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all
documents and reports required to be filed
by Section 12,13 or 15(d) of the Exchange Act
after the distribution of securities under a
plan confirmed by court.
Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of
the issuers's class of common equity, as of the
latest practicable date: 7,621,936
AN-CON GENETICS, INC.
FORM 10-QSB
QUARTERLY REPORT
JUNE 30, 1995
<PAGE>
AN-CON GENETICS, INC.
INDEX TO FORM 10-QSB
Page
Part I. Financial Information
Item 1: Financial Statements:
Consolidated Balance Sheet - June 30, 1995 F1
Consolidated Statements of Operations for the
Six Months Ended June 30, 1995 and 1994 F3
Consolidated Statements of Cash Flows for the
Six Months Ended June 30, 1995 and 1994 F4
Notes to Consolidated Financial Statements F6
Item 2: Management's Discussion and
Analysis or Plan of Operation 1
Part II.Other Information 4
Item 1: Legal Proceedings 4
Item 2: Changes in Securities 4
Item 3: Defaults Upon Senior Securities 4
Item 4: Submission of Matters of a Vote
of Security Holders 4
Item 5: Exhibits and Reports on Form 8-K 4
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
AN-CON GENETICS, INC.
CONSOLIDATED BALANCE SHEET
JUNE 30, 1995
ASSETS
Current assets:
Cash and cash equivalents $ 60,000
Accounts receivable 775,700
Inventories 605,200
Prepaid expenses 81,100
Total current assets 1,522,000
Property and equipment, net 1,114,200
Other assets:
Intangible assets, net 64,500
Unamortized debt issue costs, net 4,700
Organization cost, net 1,100
Deposits 9,500
79,800
$ 2,716,000
The accompanying notes are an integral part of the financial
statements.
<PAGE>
AN-CON GENETICS, INC.
CONSOLIDATED BALANCE SHEET
JUNE 30, 1995
(CONTINUED)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 726,700
Customer deposits 16,700
Accrued interest 111,700
Current maturity of long-term debt 17,300
Current portion of obligations
under capital leases 16,700
Total current liabilities 889,100
Long-term debt, net 572,100
Obligations under capital leases 24,000
Commitments and contingencies
Stockholders' equity:
Common shares, $.001 par value 15,000,000
authorized, issued and outstanding
7,621,936 on June 30, 1995 18,300
Additional paid in capital 12,210,600
Accumulated deficit (10,892,300)
1,336,600
Less: Treasury stock - at cost ( 6,000)
Subscriptions receivable ( 99,800)
Total stockholders' equity $ 1,230,800
$ 2,716,000
The accompanying notes are an integral part of the financial
statements.
<PAGE>
AN-CON GENETICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
1995 1994
Sales $ 2,592,300 $ 2,073,300
Costs and expenses:
Cost of sales 1,501,300 1,324,700
Professional services 219,400 157,500
Salaries and related costs 291,100 214,000
Selling, general and
administration 696,700 516,600
2,708,500 2,212,800
(Loss) from operations (116,200) (139,500)
Other income (expense):
Interest, net (3,900) (17,600)
Miscellaneous 2,500 13,900
(1,400) (3,700)
(Loss) before extraordinary item (117,600) (143,200)
Extraordinary item:
Gain from settlement of debt 76,800 --
Net income (loss) $ (40,800) $ (143,200)
Per share:
(Loss) before extraordinary item $ (.02) $ (.03)
Extraordinary item .01 --
Net income (loss) $ (.01) $ (.03)
Weighted average number of
shares outstanding 7,564,573 2,797,149 (a)
No dividends have been paid during the periods shown.
(a) Pro forma number of shares shown are as if Aaron
had received 1,370,603 An-Con shares on
January 1, 1994 or 49% of outstanding shares.
The accompanying notes are an integral part of the financial
statements.
AN-CON GENETICS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
1995 1994
Net income (loss) $( 40,800) $ (143,200)
Adjustments to reconcile net loss to
net cash provided by (used in) operating
activities:
Depreciation and amortization 45,900 85,700
Common stock issued for professional fees 7,900 --
Gain from forgiveness of debt ( 76,800) --
Changes in assets and liabilities:
(Increase) in receivables (267,200) (144,500)
(Increase) decrease in inventories ( 97,100) 27,900
(Increase) decrease in prepaid expenses ( 2,300) ( 17,200)
Decrease in notes receivable -- 5,100
Increase (decrease) in accounts payable 190,000 117,100
Increase (decrease) in accrued interest ( 600) ( 8,700)
(Decrease) in customer deposits ( 89,600) ( 42,600)
Total adjustments (289,800) 22,800
Net cash (used in) operating activities (330,600) (120,400)
Cash flows from investing activities:
(Increase) in fixed assets (108,300) (125,900)
(Increase) in patents and trademarks -- ( 6,000)
Net cash (used in) investing activities (108,300) (131,900)
Cash flows from financing activities:
(Decrease) in subscriptions
receivable 49,000 --
(Decrease) in obligations
under capital leases ( 3,700) --
(Decrease) in notes payable - officers ( 90,800) --
(Decrease) in long term debt ( 7,300) (42,300)
Common shares issued for cash 1,000 218,100
Net cash provided by (used in)
financing activities ( 51,800) 175,800
Net increase (decrease) in cash and
cash equivalents (490,700) ( 76,500)
Cash and cash equivalents,
beginning of period 550,700 136,100
Cash and cash equivalents,
end of period $ 60,000 $ 59,600
The accompanying notes are an integral part of the financial
statements.
AN-CON GENETICS, INC. AND SUBSIDIARY
STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
FOR THE SIX MONTHS ENDED JUNE 30, 1995 AND 1994
Cash paid during the six months ended June 30, 1995 for:
Interest $9,300
Income Taxes -0-
Cash paid during the six months ended June 30, 1994 for:
Interest $4,100
Income Taxes -0-
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND
FINANCING ACTIVITIES: FOR THE SIX MONTHS ENDED JUNE 30, 1995
1. The Company issued 35,000 post split shares to convertible
note holders in redemption of $70,000 in notes and $26,900
of accrued interest, valued at $14,000. The net issuance cost
of the redeemed bonds, in the amount of $6,100 was written off.
2. The Company issued 27,500 post split shares for
services valued at $7,900.
3. On June 26, 1995 the company s subsidiary, Aaron Medical,
purchased a building for $625,000 by issuing 60,000 An-Con shares
valued
at $78,000 and by issuing a purchase money mortgage of $500,000.
A security deposit given to the seller of $12,200 was applied to the
purchase and $34,800 was paid in cash.
FOR THE SIX MONTHS ENDED JUNE 30, 1994
1. On January 6, 1994, the Company reverse split its shares 1 for 15
effective for that date.
2. On January 6, 1994, the Company issued 236,066 post split
shares of common stock as payment for $332,000 of convertible notes.
On February 14, 1994, the Company issued 202,001 post split shares of
common stock upon the exercise of warrants. The Company received
$172,200 in cash and $119,000 in notes receivable. The notes were
due on May 2, 1994 with interest at 9%. On April 7, 1995, the
remaining balance of notes receivable of $44,000 was collected.
The accompanying notes are an integral part of the financial
statements.
<PAGE>
AN-CON GENETICS, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1995
NOTE 1. INTERIM FINANCIAL STATEMENTS
In the opinion of management, the interim financial statements
reflect all adjustments, consisting of only normal recurring items,
which are necessary for a fair presentation of the results for the
interim periods presented. The results for interim periods are not
necessarily indicative of results for the full year. These financial
statements should be read in conjunction with the significant
accounting policies and the other notes to the financial statements
included in the Corporation's 1994 Annual Report to the SEC on Form
10-KSB.
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
(a) Cash and Equivalents:
Cash and equivalents include the amounts in the Company checking
saving and money market bank accounts.
(b) Accounts Receivable:
Accounts receivable are presented net of the allowance for doubtful
accounts.
(c) Inventories:
Inventories are stated at the lower of cost, determined by the
FIFO method, or market.
(d) Property, Plant and Equipment:
Property and other equipment are recorded at cost. Depreciation
is computed using the straight-line method over the estimated useful
lives of the assets as follows: leasehold improvements-term of
lease: furniture, fixtures and equipment.
(e) Bond Issue Costs:
Costs related to a bond issue are classified as deferred charges and
amortized, using the straight line method, over the life of the
bonds.
(f) Investments:
The equity method is used to account for investments in corporate
joint ventures and other investments in common stock if the
Company has the ability to exercise significant influence over
operating and financial policies of the investee enterprise.
That ability is presumed to exist for investments of 20% or more
and is presumed not to exist for investments of less than 20%;
both presumptions may be overcome by predominant evidence to the
contrary.
AN-CON GENETICS, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(f) Investments (continued):
The Company initially records an investment at cost. Subsequently,
the carrying amount of the investment is increased to reflect the
Company's share of income of the investee and is reduced to reflect
the company's share of losses of the investee or dividends received
from the investee. The Company's share of the income or losses of the
investee is included in the Company's net income as the investee
reports them. Adjustments similar to those made in preparing
consolidated financial statements, such as elimination of
intercompany gains and losses and amortization of the difference
between cost and underlying equity in net assets, also are
applicable to the equity method. Under the equity method, an
investment in common stock is shown in the balance sheet of the
Company as a single amount. Likewise, an investor's share of
earnings or losses from its investment is ordinarily shown in its
income statement as a single amount.
The cost method is used when ownership of securities in an
affiliated company represents less than 20% of the total outstanding
shares of that Company. Under this method the Company records an
investment in the stock of an investee at cost, and recognizes as
income dividends received that are distributed from net accumulated
earnings of the investee since the date of acquisition by the
Company. The net accumulated earnings of an investee subsequent to
the date of investment are recognized by the Company only to the
extent distributed by the investee as dividends. Dividends received
in excess of earnings subsequent to the date of investment are
considered a return of investment and are recorded as reductions of
cost of the investment.
A loss in value of an investment that is other than a temporary
decline shall be recognized the same as a loss in value of other
long-term assets. Evidence of a loss in value might include, but
would not necessarily be limited to, absence of an ability to recover
the carrying amount of the investment or inability of the investee to
sustain an earnings capacity that would justify the carrying amount
of the investment. A current fair value of an investment that is less
than its carrying amount may indicate a loss in value of the
investment.
(g) Research and Development Costs:
Research and development costs are charged to expense when incurred.
Disclosure in the financial statements is made for the total research
and development costs charged to expense in each period
for which an income statement is presented.
Research and development costs that are purchased from another
enterprise and have future use are capitalized and are amortized over
five years.
AN-CON GENETICS, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(h) Research and Development Arrangements:
The Company accounts for its obligations under an arrangement for the
funding of research and development by others by determining whether
the Company is contractually obligated to pay for research not yet
performed. If so determined, to the extent that the Company is
obligated to pay, the Company records a liability and charges
research and development costs to expense.
(i) Patents, Franchises, Licenses and Operating Rights:
The cost of franchises, license options to acquire technology and
operating rights acquired are amortized using the straight-line
method over their useful lives.
(j) Stock Issue Costs:
Stock issue costs are treated as a reduction of the amount received
from the sale of the related capital stock.
(k) Net Earning (Loss) Per Share:
Net earnings (loss) per share is computed based upon the weighted
average number of outstanding common shares during the period
considered. Taking into consideration outstanding options, warrants
and convertible debt.
(l) Accounting for Income Taxes
In February 1992, the FASB issued Statement No. 109, Accounting for
Income Taxes. FASB 109 requires an asset and liability approach for
financial accounting and reporting for income taxes. It requires
recognition of (1) current tax liabilities or assets for the
estimated taxes payable or refundable on tax returns for the current
year, and (2) deferred tax liabilities or assets for the estimated
future tax effects attributable to temporary differences and carry
forwards.
The judgment regarding the need for a valuation allowance depends on
the entity's specific facts and circumstances; there are no precise
formulas for determining whether a valuation allowance is needed or
the amount of the allowance. Such a need is based on an assessment of
the likelihood of the entity's ability to generate sufficient taxable
income of the appropriate character (for example, ordinary income
or capital gain) within the carryback or carryforward period under
the applicable tax law to realize the tax benefits recognized as a
result of deductible temporary differences, and operating loss
carryforwards.
The Company has adopted the policy of preparing its financial
statements in accordance with FASB 109.
AN-CON GENETICS, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (continued)
(m) Consolidation Policy
The purpose of consolidated statements is to present, primarily for
the benefit of the shareholders and creditors of the parent company,
the results of operations and the financial position of the parent
company and its subsidiaries essentially as if the group were a
single enterprise with one or more branches or divisions. There is a
presumption that consolidated statements are more meaningful than
separate statements and that they are usually necessary for a fair
presentation when one of the enterprises in a group directly or
indirectly has a controlling interest in the other enterprises [ARB
51]. If an enterprise has one or more subsidiaries, consolidated
statements rather than parent company financial statements are the
appropriate general purpose financial statements [FAS94].
NOTE 3. POOLING OF INTERESTS
In January 1995, An-Con Genetics, Inc. and Aaron Medical
Industries, Inc. ("The Constituents") consummated a business
combination which united the ownership interests in the two
Companies. Aaron Medical Industries, Inc. is a Florida Corporation
with offices and manufacturing facilities in St. Petersburg, Florida.
It is principally engaged in the business of manufacturing and
selling battery operated cauteries, specialty medical lighting
instruments and electrosurgical devices to physicians and hospitals.
The combination which is accounted for as pooling of interests
was accomplished by An-Con Genetics, Inc. issuing 3,399,096 shares of
common stock in exchange for all common shares of Aaron Medical
Industries, Inc.. No resources were distributed to any Constituent.
Since the Constituents have used the same fiscal periods and
accounting policies and practices, their recorded assets and
liabilities are carried forward to the combined Corporation at their
recorded amounts, as of March 3, 1995. The income and cash flows of
the combined Corporation includes income and cash flows of the
Constituents for the six months ended June 30, 1995 in which the
combination occurred. The reported income and cash flows for the six
months ended June 30, 1994 is the combined and restated income and
cash flows of the Constituents.<PAGE>
AN-CON GENETICS, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
NOTE 3. POOLING OF INTERESTS (continued)
The following statement shows the reconciliation revenues and
earnings previously reported by An-Con Genetics, Inc. with the
combined amounts currently presented in the financial statements for
the six months ended June 30, 1994:
Aaron
An-Con Medical
Genetics, Inc . Industries, Inc. Total
Sales $ 43,400 $2,029,900 $2,073,300
Cost of sales 33,100 1,291,600 1,324,700
Research and development -- -- --
Professional services 128,300 29,200 157,500
Salaries and related costs 56,000 158,000 214,000
Selling, general and
administration 149,000 367,600 516,000
$ 366,400 $1,846,400 $2,212,800
(Loss) from operations (323,000) 183,500 (139,500)
Other income (expense):
Interest, net ( 18,200) 600 (17,600)
Miscellaneous -- 13,900 13,900
( 18,200) 14,500 3,700
Net income (loss) $(341,200) $ 198,000 $(143,200)
Net income per share - pro forma
Weighted average number of
shares outstanding -
pro forma 1,426,546 1,370,603 2,797,149
The accompanying notes are an integral part of the financial
statements.
AN-CON GENETICS, INC.
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
NOTE 4. PURCHASE OF BUILDING
On June 26, 1995 Aaron Medical Industries, Inc., exercised its option
to purchase the building it presently occupies for $625,000. The
purchase was financed as follows:
Cash $47,000
Purchase Money Mortgage 500,000 (a)
An-Con Shares
(60,000 X 1.30 per share) 78,000 (b)
Total purchase price $625,000
(a) Payment of principal and interest at 10% payable monthly at
$5,373.06 until July 1, 1998 when a balloon payment of $439,074.27 is
due.
(b) The An-Con shares are restricted for 2 years and are being held
pursuant to an escrow agreement. The agreement further restricts the
release of the shares until the seller takes
such action as is necessary to further investigate, define and
remediate such contamination that exists on the property and
is referred to in environmental reports pursuant to a Remedial Action
Plan approved by the State of Florida Department of Environmental
Protection (DEP) and any other appropriate agencies.
Two years from the date of Closing, if Seller and Guarantors
have not defaulted under or been in breach of any of their
obligations to Buyer, Buyer shall obtain and deliver to Escrow Agent
additional shares of Stock if the Closing Market Price of the Stock
on the thirtieth day prior to such date shall be less than
$78,000.00.
NOTE 5. Accrued Interest
Accrued interest represents interest accrued and unpaid on
Bond holders notes of $34,100 and officer/shareholder loans, which
have been totally paid as of June 30, 1995, of $77,600. The unpaid
officer/shareholders loan interest is presently being paid at $4,000
per month as part of a consulting agreement with the former officer,
now consultant, to the company.
AN-CON GENETICS, INC.
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Results of Operations
Consolidated sales revenues increased by 25% from $2,073,300 to
$2,592,300 for the six months ended June 30, 1995 as compared to the
similar period in 1994. Gross profits for the two periods were
$748,600 and $1,091,000, respectively, and the gross profit
percentage increased to 42% in 1995 from 36.1% for the same period in
1994.
Consolidated sales and administrative salaries and related expenses
increased by 36 % from $214,000 to $291,100, in the six months ended
June 30, 1995 as compared to the same period in 1994.
Consolidated professional services decreased by 14.4% to $134,700 in
the six months ended June 30, 1995 as compared to $157,500 in the
same period of the previous year. The 1995 amount included the
issuance of 27,500 post split shares for past and present services
that the Board of Directors authorized which amounted to $7,900.
Consolidated selling, general and administration expenses increased
by 35% to $696,700 in the six month period ended June 30, 1995
as compared to $516,600 the six months ended June 30, 1994.
Research and development costs of $84,700 for the first six months of
1995 are mostly attributable to the development of a new formulation
of tissue fixative. Aaron contributed $22,400 to these costs for
the development of a broad line of electrosurgical blades.
The Company had a consolidated loss of $40,800 for the six months
ended June 30, 1995 as compared to a consolidated loss of $143,200
for the six months ended June 30, 1994. A loss of $117,600 for the
six months ended June 30, 1995 was reduced by a gain of $76,900 from
the settlement of debt.
Financial Condition and Liquidity
Consolidated working capital of the Company was $632,900 on June 30,
1995 as compared to a deficit of ($107,000) on June 30,1994 and
$745,900 on December 31, 1994.
On June 30, 1995, consolidated total assets were $2,716,000 as
compared to $1,592,500 on June 30, 1994 and $2,205,900 on December
31, 1994.
AN-CON GENETICS, INC.
PART I. FINANCIAL INFORMATION (continued)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
(continued)
Financial Condition and Liquidity (continued)
The Company's consolidated cash decreased by $490,700 (89%) over the
six months ended June 30, 1995. The net cash used in operations was
$330,600. The Company utilized $101,800 to reduce notes payable and
$108,300 to acquire fixed assets.
The Company has not paid interest on long term bond obligations which
have been due since November, 1990. Certain bondholders redeemed
their debt and accrued interest for shares of the company which
amounted to $70,000 in principal and $26,900 in interest. The total
amount of interest payable on long term obligations remaining was
$34,100. As of June 30, 1995, the bondholders had made no
declaration that the principal was due and payable.
The Company is attempting to raise additional capital from outside
sources. The Company is in the process of preparing a registration
statement to be filed with the Securities and Exchange Commission to
register additional shares for sale and to register the shares
exchanged for Aaron Medical Industries, Inc. shares.
As part of an agreement with Aaron Medical Industries, Inc. the
Company advanced $254,600 to Aaron Medical Industries, Inc. as a
working capital loan. In January, 1995, pursuant to an agreement
(which was subsequently amended and restated) and the approval of
shareholders of Aaron Medical Industries, Inc., the Company completed
its acquisition of all of the outstanding shares of Aaron, now a
wholly owned subsidiary.
Products - Aaron
Electro surgical blades
This is a new and expanding area for the company. Aaron Medical
manufactures a broad line of standard electrosurgical blades, balls,
needles, loops and square electrodes. The company is in the final
stages of releasing a line of conductive, reduced stick electrodes
known as Resistick . This product line offers superior cutting and
coagulation when compared to the current reduced stick electrodes on
the market. Sales are likely to begin in the fourth quarter of
1995.
AN-CON GENETICS, INC.
PART I. FINANCIAL INFORMATION (continued)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
(continued)
Multifunction Electrocautery Tool
On July 20, 1994, the Company purchased all rights, title and
interest to a patent application and the invention for a
multifunction electrocautery tool having an associated suction
apparatus. The Company transferred 87,000 unregistered shares of An-
Con to the owner and will pay a 3% royalty on all sales. The product
will be marketed and manufactured by Aaron Medical Industries, Inc.
Sales are likely to begin in the fourth quarter of 1995.
Products - An-Con
Tissue Fixatives
1. OmniFix
Research is being conducted to enhance the performance and
significantly reduce the cost of producing OmniFix II.
2. New Fixative
A new large section tissue fixative has been developed that is to be
marketed when a contract producer is located. The company will then
be marketing both products, one product line for small tissues and
one for large section/thick blocks and whole organs.
Appointment of New Officer
On June 14, 1995 the Board of Directors appointed Mr. Delton N.
Cunningham Secretary/Treasurer of the corporation. Mr. Cunningham is
a Certified Public Accountant and is presently employed as Vice
President/Chief Financial Officer and Secretary of Aaron Medical
Industries, Inc.
<PAGE>
AN-CON GENETICS, INC.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
See Form 10-KSB for the years ended December 31, 1994 and 1993, Part
I, Item 3. No new litigation commenced in the six months ended June
30, 1995.
ITEM 2. CHANGES IN SECURITIES
There have been no changes in the instruments defining the rights or
rights evidenced by any class of registered securities.
There have been no dividends declared.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Interest on senior debt of $78,000, 8% convertible debentures has not
been paid since November of 1990 and equals $33,900. To date, no
action has been taken against the Company by any holder of the senior
debt.
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS
There has not been a meeting of shareholders and therefore, no
matters have been submitted to a vote of security holders since 1987.
ITEM 5. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
28 None
(B) On May 7, 1995, a report was filed on Form 8-K and included the
certified audited financial statements of Aaron Medical Industries,
Inc. (Aaron) for the calendar year 1994 and the pooling of interests
agreement, dated April 14, 1995, between the Company and Aaron.
SIGNATURES:
In accordance with the requirements of the Exchange Act,
the registrant caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
An-Con Genetics, Inc.
(Registrant)
Date:
J. Robert Saron
Chairman and CEO
Date:
Delton N. Cunningham
Secretary and Treasurer
EXHIBIT 27
AN-CON GENETICS, INC.
APPENDIX A TO ITEM 601(c) OF REGULATION S-B
COMMERCIAL AND INDUSTRIAL COMPANIES
ARTICLE 5 OF REGULATION S-X
FINANCIAL DATA SCHEDULE
Quarter Ended
ITEM NUMBER ITEM DESCRIPTION 6/30/95
5-02 (1) Cash and cash items 60,000
5-02 (2) Marketable securities --
5-02 (3)(a)(1) Notes and accounts receivable
-trade 775,700
5-02 (4) Allowances for doubtful
accounts --
5-02 (6) Inventory 605,200
5-02 (9) Total current assets 1,522,000
5-02 (13) Property, plant and
equipment 1,849,300
5-02 (14) Accumulated depreciation 735,100
5-02 (18) Total assets 2,716,000
5-02 (21) Total current liabilities 889,100
5-02 (22) Bonds, mortgages and
similar debt 596,100
5-02 (28) Preferred stock-mandatory
redemption --
5-02 (29) Preferred stock-no mandatory
redemption --
5-02 (30) Common stock 18,300
5-02 (31) Other stockholders' equity 1,212,500
5-02 (32) Total liabilities and
stockholders' equity 2,716,000
5-03 (b) (a) Net sales of tangible
products 2,592,300
5-03 (b) 1 Total revenues 2,592,300
5-03 (b) 2 (a) Cost of tangible goods sold 1,501,300
5-03 (b) 2 Total costs and expenses
applicable to sales and
revenue 1,501,300
5-03 (b) 3 Other costs and expenses 1,070,000
5-03 (b) 5 Provision for doubtful
accounts and notes --
5-03 (b) (8) Interest and amortization
of debt discount 3,900
5-03 (b) (10) Income before taxes and
other items (117,600)
5-03 (b) (11) Income tax expense --
5-03 (b) (14) Income/loss continuing
operations (117,600)
5-03 (b) (15) Discontinued operations --
5-03 (b) (17) Extraordinary items 76,800
5-03 (b) (18) Cumulative effect-changes
in accounting principles --
5-03 (b) (19) Net income or loss (40,800)
5-03 (b) (20) Earnings per share-primary (.02)
5-03 (b) (20) Earnings per share-fully diluted .01
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000719135
<NAME> AN-CON GENETICS, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 60,000
<SECURITIES> 0
<RECEIVABLES> 775,700
<ALLOWANCES> 0
<INVENTORY> 605,200
<CURRENT-ASSETS> 1,522,000
<PP&E> 1,849,300
<DEPRECIATION> 735,100
<TOTAL-ASSETS> 2,716,000
<CURRENT-LIABILITIES> 889,100
<BONDS> 596,100
0
0
<COMMON> 18,300
<OTHER-SE> 1,212,500
<TOTAL-LIABILITY-AND-EQUITY> 2,716,000
<SALES> 2,592,300
<TOTAL-REVENUES> 2,592,300
<CGS> 1,501,300
<TOTAL-COSTS> 1,501,300
<OTHER-EXPENSES> 1,070,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,900
<INCOME-PRETAX> (117,600)
<INCOME-TAX> 0
<INCOME-CONTINUING> (117,600)
<DISCONTINUED> 0
<EXTRAORDINARY> 76,800
<CHANGES> 0
<NET-INCOME> (40,800)
<EPS-PRIMARY> (.02)
<EPS-DILUTED> .01
</TABLE>
