SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-KSB/A
Amendment No. 1
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For The Fiscal Year Ended January 31, 1998
Commission File Number 1-9115
COMPUTRAC, INC.
(Name of small business issuer in its charter)
Texas 75-1540265
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
222 Municipal Drive, Richardson, Texas 75080
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code (972) 234-4241
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Name of Each Exchange
Title of Each Class on Which Registered
Common Stock, $.01 par value American Stock Exchange
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE
Check whether the issuer (1) filed all reports required to be filed by
Section 13 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 ( )
Check if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will
be contained, to the best of registrant's knowledge, in definitive
proxy or information statem ents incorpo rated by ref erence in Pa rt
III of this Form 1 0-KSB or any amendment t o this Form 10-KSB [X]
The issuer's revenues for the fiscal year ended January 31, 1998 were
$4,816,343.
As of April 23, 1998, the aggregate market value of the voting stock
held by non-affiliates of the issuer was $3,473,042.
As of April 23, 1998, the number of shares outstanding of the issuer's
common stock was 6,263,103.
DOCUMENTS INCORPORATED BY REFERENCE: NONE
No exhibits are filed with this Amendment.
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The following items of CompuTrac, Inc.'s Annual Report on Form
10-KSB for the fiscal year ended January 31, 1998 are hereby amended.
Each such item is set forth herein in its entirety, as amended. No
exhibits are filed with this Amendment.
PART II
Page
Item 7. Financial Statements ...................3 - 6
Signatures ..........................................4
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<PAGE>
<TABLE>
<CAPTION>
Item 7. Financial Statements
CONSOLIDATED BALANCE SHEETS
Year Ended January 31,
-------------------
1998 1997
-------- --------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 558,818 $ 449,304
Short-term investments 3,226,330 4,334,869
Accounts receivable, net of allowance for
doubtful
accounts of $100,000 and $180,000 at January
31, 1998 and 1997, respectively 513,744 722,683
Unbilled revenue 13,351 122,584
Other current assets 322,134 304,211
-------- ---------
Total current assets 4,634,377 5,933,651
Property, furniture and equipment, net of
accumulated 1,476,824 1,627,226
depreciation
Land held for sale 254,122 254,122
Capitalized software, net of accumulated 1,833,938 1,637,025
amortization
Other assets 470,799 429,898
-------- ---------
Total assets $ 8,670,060 $ 9,881,922
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 183,330 $ 191,349
Accrued expenses 218,331 247,424
Accrued contract completion costs 10,000 110,400
Deferred systems revenues 99,006 90,744
Short-term portion of mortgage payable 84,015 76,429
--------- ----------
Total current liabilities 594,682 716,346
Long-term portion of mortgage payable 115,546 199,561
--------- -----------
Total liabilities 710,228 915,907
--------- -----------
Commitments and contingencies (Note 9)
Shareholders' equity:
Preferred stock, $1.00 par value, 2,000,000
shares authorized, no shares issued and outstanding
Common stock, $.01 par value, 13,000,000 shares
authorized, 6,988,706 shares issued 69,887 69,887
Additional paid-in capital 9,718,527 9,846,543
Retained earnings 460,507 1,503,255
--------- -----------
10,248,921 11,419,685
Less: treasury shares, at cost, 711,008 and
722,631 (2,289,089) (2,453,670)
shares, respectively
---------- ----------
Total shareholders' equity 7,959,832 8,966,015
---------- ----------
Total liabilities and shareholders' equity $ 8,670,060 $9,881,922
========== ==========
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended January 31,
--------------------------
1998 1997
--------- --------
<S> <C> <C>
Revenues:
System sales $ 958,714 $ 514,830
Services and support 3,857,629 4,133,548
---------- -----------
4,816,343 4,648,378
---------- -----------
Costs and expenses:
Cost of system sales 609,243 355,730
Cost of services and support 294,313 297,121
Amortization of capitalized software 531,148 318,079
Operating expenses 1,110,777 1,354,423
Selling, general and administrative expenses 3,089,484 2,804,975
Software research and development costs 451,358 406,998
---------- -----------
6,086,323 5,537,326
---------- -----------
Loss (1,269,980) (888,948)
Interest income, net 227,232 220,743
---------- -----------
Loss before taxes (1,042,748) (668,205)
Income taxes - -
---------- -----------
Net loss $(1,042,748) $ (668,205)
=========== ===========
Net loss per common share $ (0.17) $ (0.11)
=========== ===========
Weighted average shares outstanding 6,302,531 6,237,291
=========== ===========
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
Common Stock Additional Retained Treasury Share-
------------------- paid-in ----------------------- holders'
Shares Amount capital earnings Shares Amount equity
---------- --------- ----------- ----------- --------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at
February 1, 1996 6,988,706 $69,887 $9,928,011 $2,171,460 842,106 $(2,654,769) $9,514,589
Treasury Shares
reissued (81,468) (119,475) 201,099 119,631
Net loss (668,205) (668,205)
---------- --------- ----------- ----------- --------- ------------ -----------
Balance at
January 31, 1997 6,988,706 $69,887 $9,846,543 $1,503,255 722,631 $(2,453,670) $8,966,015
---------- --------- ----------- ----------- --------- ------------ -----------
Purchases of treasury
shares 50,100 ( 44,969) ( 44,969)
Treasury shares reissued (128,016) (61,723) 209,550 81,534
Net loss (1,042,748) (1,042,748)
---------- --------- ----------- ----------- --------- ------------ -----------
Balance at
January 31, 1998 6,988,706 $69,887 $9,718,527 $ 460,507 711,008 $(2,289,089) $7,959,832
========== ======== =========== =========== ========= ============ ===========
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</TABLE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year Ended January 31,
--------------------
1998 1997
--------- --------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (1,042,748) $ (668,205)
Adjustments to reconcile net loss to net
cash (used in) provided by operating
activities:
Depreciation of property, furniture and
equipment 392,053 723,610
Amortization of capitalized software costs 531,148 318,079
Changes in assets and liabilities:
Accounts receivable 208,939 438,541
Unbilled revenue 109,233 216,190
Other current assets (17,923) (80,189)
Other assets (40,901) (38,642)
Accounts payable and accrued expenses (137,512) (377,894)
Deferred systems revenues 8,262 829
----------- ---------
Net cash provided by operating activities 10,551 532,319
----------- ---------
Cash flows from investing activities:
Additions to property, furniture and
equipment (241,651) (460,606)
Additions to capitalized software (728,061) (804,528)
Purchase of certificates of deposit - (499,000)
Sale of certificates of deposit 666,000 624,000
Sale of U.S. Treasury Bills 442,539 188,905
Sale of fixed assets - 8,365
----------- ---------
Net cash provided by (used in) investing
activities 138,827 (942,864)
----------- ---------
Cash flows from financing activities:
Issuance of treasury shares 81,534 119,631
Principal payments of mortgage note payable (76,429) (67,747)
Purchase of treasury shares (44,969) -
----------- ---------
Net cash (used in) provided by financing
activities (39,864) 51,884
----------- ---------
Net increase (decrease) in cash and cash
equivalents 109,514 (358,661)
Cash and cash equivalents at beginning of year 449,304 807,965
----------- ---------
Cash and cash equivalents at end of year $ 558,818 $ 449,304
=========== =========
Supplemental disclosures of cash flow
information:
Interest paid $ 23,061 $ 43,970
Income taxes paid - -
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange
Act, the registrant caused this amendment to be signed on its behalf
by the undersigned, thereunto duly authorized.
COMPUTRAC, INC.
By: /S/ Harry W. Margolis
Harry W. Margolis
Chairman of the Board of Directors and Chief Executive Officer
Date: July 2, 1998
In accordance with the Exchange Act, this report has been
signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.
Signature Title Date
------------- ------- -------
/S/ Harry W. Margolis Chairman of the Board of
Harry W. Margolis Directors and Chief
Executive Officer July 2, 1998
/S/ Cheri L. White Vice President - Finance
Cheri L. White and Chief Financial Officer
(Principal Financial and
Accounting Officer) July 2, 1998
/S/ Dana E. Margolis Secretary, Treasurer
Dana E. Margolis and Director July 2, 1998
/S/ Kenneth R. Nicholas Director July 2, 1998
Kenneth R. Nicholas
/S/ Gerald D. Harris Director July 2, 1998
Gerald D. Harris
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