U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
_________________________________________
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1995
[ ] TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to ________
Commission File Number 0-13992
CYBER DIGITAL, INC.
(Exact name of small business issuer as specified in its charter)
NEW YORK 11-2644640
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
400 Oser Avenue, Suite 1650, Hauppauge, New York 11788
(Address of principal executive offices)
(516) 231-1200
(Issuer's telephone number)
Check whether the issuer [1] has 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
_____ _____
The number of shares of stock outstanding at December 31, 1995:
14,249,311 shares of Common Stock, par value $.01 per share.
<PAGE>
<TABLE>
<CAPTION>
BALANCE SHEETS
ASSETS
December 31, March 31,
1995 1995
(Unaudited) (Audited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 216,912 $ 81,888
Accounts receivable 681,478 16,432
Inventories 389,983 494,301
Prepaid expenses 3,835 4,779
__________ __________
Total Current Assets $1,292,208 $ 597,400
__________ __________
PROPERTY AND EQUIPMENT, NET
Equipment $ 617,517 $ 617,517
Furniture and Fixtures 53,988 53,988
__________ __________
$ 671,505 $ 671,505
Accumulated Depreciation (645,027) (638,749)
__________ __________
Total Property and Equipment $ 26,478 $ 32,756
__________ __________
OTHER ASSETS
Deferred financing costs $ 0 $ 10,155
Other 64,041 64,041
__________ __________
$1,382,727 $ 704,352
__________ __________
__________ __________
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' DEFICIT
December 31, March 31,
1995 1995
(Unaudited) (Audited)
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 27,572 $ 37,899
Current maturities of long-term debt 307,942 155,994
___________ ___________
Total Current Liaiblities $ 335,514 $ 193,893
Long-Term Debt, less current maturities 598,223 1,554,089
___________ ___________
$ 933,737 $ 1,747,982
DEFICIT IN SHAREHOLDERS' EQUITY
Preferred Stock - $.05 par value;
authorized, 10,000,000 shares; issued
and outstanding, none
Common Stock - $.01 par value;
authorized, 30,000,000 shares; issued
and outstanding, 14,249,311 shares and
13,752,801 shares at December 31, 1995
and March 31, 1995, respectively $ 142,493 $ 137,528
Additional paid-in-capital 6,135,306 5,801,661
Accumulated deficit (5,828,809) (6,982,819)
___________ ___________
$ 448,990 $(1,043,630)
___________ ___________
$ 1,382,727 $ 704,352
___________ ___________
___________ ___________
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
December 31,
1995 1994
<S> <C> <C>
Net Sales $ 166,882 $ 164,131
Cost of Sales 8,781 65,599
__________ __________
Gross Profit $ 158,101 $ 98,532
__________ __________
Operating Expenses
Selling, general and
administrative expenses $ 109,983 $ 132,957
Research and development 0 8,788
__________ __________
Total Operating Expenses $ 109,983 $ 141,745
__________ __________
Operating Profit (Loss) $ 48,118 $ (43,213)
Other Income, net 521 976
__________ __________
Earnings (Loss) before
Extraordinary Gain $ 48,639 $ (42,237)
Extraordinary Gain 912,974 0
---------- ----------
Net Earnings (Loss) $ 961,613 $ (42,237)
Net Earnings (Loss) per common and
common equivalent $ 0.06 $ (0.00)
__________ __________
Weighted average number of
shares outstanding 14,982,529 13,732,801
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
(Unaudited)
Nine Months Ended
December 31,
1995 1994
<S> <C> <C>
Net Sales $ 693,900 $ 215,741
Cost of Sales 140,923 116,607
__________ __________
Gross Profit $ 552,977 $ 99,134
__________ __________
Operating Expenses
Selling, general and
adminsitrative expenses $ 313,469 $ 429,109
Research and development 0 32,571
__________ __________
Total Operating Expenses $ 313,469 $ 461,679
__________ __________
Operating Profit(Loss) $ 239,508 $ (362,545)
Other Income, net 1,528 6,428
__________ __________
Earnings (Loss) before
Extraordinary Item $ 241,036 $ (356,117)
Extraordinary Gain 912,974 0
---------- ----------
Net Earnings (Loss) $1,154,010 $ (356,117)
Net Earnings (Loss) per common and
common equivalent $ 0.08 $ (0.03)
__________ __________
__________ __________
Weighted average number of common
shares outstanding 14,982,529 13,732,801
__________ __________
__________ __________
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended
December 31,
1995 1994
<S> <C> <C>
Cash Flows from Operating Activities
Net earnings (loss) $ 241,036 $(356,117)
Adjustments to reconcile net earnings
(loss) to net cash provided by (used in)
operating activities:
Depreciation 6,278 4,428
Amortization 10,155 11,285
Gain on Debt Restructure 912,974 0
(Increase) decrease in operating assets
Accounts Receivable (665,046) (44,729)
Inventories 104,318 43,452
Prepaid Expenses 944 0
Other Assets 0 (47,304)
Increase (decrease) in operating liabilities
Accounts payable and accrued expenses (10,327) (26,345)
_________ _________
Net cash used in operating activities $ 600,332 $(415,330)
_________ _________
Cash Flows from Investing Activities
Purchase of equipment $ 0 $ (25,036)
_________ _________
Net cash used in investing activities $ 0 $ (25,036)
_________ _________
Cash Flows from Financing Activities
Issuance of common stock $ 338,610 $ 38,000
Payments of long-term debt (913,918) (51,895)
Proceeds from borrowings 110,000 0
_________ _________
Net cash provided by (used in)
financing activities $(465,308) $ (13,895)
_________ _________
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS $ 135,024 $(454,261)
Cash and cash equivalents at beginning
of period 81,888 517,297
_________ _________
Cash and cash equivalents at end of period $ 216,912 $ 63,036
_________ _________
_________ _________
Supplemental Disclosure of Cash Flow
Information:
Cash paid during the period for
income taxes $ 421 $ 429
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
NOTES TO FINANCIAL STATEMENTS
===================================
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results
for the nine months ended December 31, 1995 are not necessarily indicative
of the results that may be expected for the year ending March 31, 1996.
For further information, refer to the financial statements and footnotes
thereto included in the Company's Form 10-KSB for the fiscal year ended
March 31, 1995.
NOTE 2 - INVENTORIES
Inventory of purchased parts and work-in-process for eventual resale to
customers are valued at the lower of cost or market, as determined by the
first-in, first-out (FIFO) method and consisted of the following:
<TABLE>
<CAPTION>
December 31, 1995 March 31, 1995
<S> <C> <C>
Finished goods $ 59,097 $163,415
Work-in-process 33,701 33,701
Raw materials 285,650 285,650
Finished goods on consignment 11,535 11,535
________ ________
$389,983 $494,301
________ ________
________ ________
</TABLE>
<PAGE>
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Results of Operations
For Three Months Ended December 31, 1995
Net sales increased by 2% in quarter ended December 31, 1995 over the
prior year's same quarter. Net sales for quarter ended December 31, 1995
were $166,882 as compared to $164,131 for quarter ended December 31, 1994.
Gross profit for quarter ended Dcember 31, 1995 was 95% of net sales as
compared to 60% for quarter ended December 31, 1994. Fluctuations in
gross profit margins are primarily attributable to price changes, changes
in sales mix by product or distribution channel. Selling, general and
and administrative expenses as a percentage of sales decreased from 81%
in quarter ended December 31, 1994 to 66% in quarter ended December 31,
1995. Earnings from operations for quarter ended December 31, 1995
was $48,118 as compared with a loss of $(43,213) for quarter ended December 31,
1994. Extraordinary gain on debt restructure for the quarter ended
December 31, 1995 was $912,974 or $.06 per share. Net earnings for quarter
ended December 31, 1995 were $961,613 or $.06 per share as compared to
a net loss of $(42,237) or $(.00) per share for quarter ended December 31,
1994.
For Six Months Ended December 31, 1995
Net sales increased by 222% in the period ended December 31, 1995 over the
prior year's same period. Net sales for the nine month period ended
December 31, 1995 were $693,900 as compared with $215,741 for the period
ended December 31, 1994. Gross profit for the period ended December 31,
1995 was 80% of net sales as compared to 45% for the period ended December
30, 1994. Fluctuations in gross profit margins are primarily attributable
to price changes, changes in sales mix by product or distribution channel.
Selling, general and administrative expenses as a percentage of sales
decreased from 198% in the period ended December 31, 1994 to 46% in the
period ended December 31, 1995 due to an increase in revenues. Earnings
from operations for the period ended December 31, 1995 was $239,508 as
compared with a loss of $(362,545) for the period ended December 31, 1994.
Extraordinary gain on debt restructure for the period ended December 31,
1995 was $912,974 or $.06 per share. Net earnings for the period ended
December 31, 1995 were $1,154,010 or $.08 per share as compared with a
net loss of $(356,117) for $(.03) per share for the period ended
December 31, 1994.
Liquidity and Capital Resources
The Company's ability to generate cash adequate to meet its needs results
primarily from cash flow from operations. Total working capital increased
by $553,187 to $956,694 for period ended December 31, 1995 from $403,507
for period ended March 31, 1995. The current ratio increased to 3.9 to 1
as at December 31, 1995 from 3.0 to 1 as at March 31, 1995. Current levels
of inventory are adequate to meet at least four times the current level of
quarterly sales. There were no significant capital expenditures in the
quarter ended December 31, 1995 and none are planned for the next quarter.
The Company believes that its current sources of liquidity will be sufficient
to meet its needs for the foreseeable future. The Company believes that,
if needed, it will be able to obtain additional funds required for future
needs.
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS IN FORM 8-K
A). Exhibits.
None.
B). Reports on Form 8-K
No reports on Form 8-K were filed by the Registrant for the
nine months ended December 31, 1995.
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
CYBER DIGITAL, INC.
By: /s/ J.C. Chatpar
______________________
Chairman, Principal
Financial Officer
DATED: February 14, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<CIK> 0000721295
<NAME> CYBER DIGITAL, INC.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> SEP-30-1995
<CASH> 5,484
<SECURITIES> 0
<RECEIVABLES> 517,545
<ALLOWANCES> 0
<INVENTORY> 390,387
<CURRENT-ASSETS> 915,963
<PP&E> 671,505
<DEPRECIATION> 642,933
<TOTAL-ASSETS> 1,011,207
<CURRENT-LIABILITIES> 395,626
<BONDS> 0
<COMMON> 139,193
0
0
<OTHER-SE> (922,917)
<TOTAL-LIABILITY-AND-EQUITY> 1,011,207
<SALES> 527,018
<TOTAL-REVENUES> 527,018
<CGS> 132,143
<TOTAL-COSTS> 132,143
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 192,396
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 192,396
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000721295
<NAME> CYBER DIGITAL, INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> DEC-31-1995
<CASH> 216,912
<SECURITIES> 0
<RECEIVABLES> 681,478
<ALLOWANCES> 0
<INVENTORY> 389,983
<CURRENT-ASSETS> 1,292,208
<PP&E> 671,505
<DEPRECIATION> 945,027
<TOTAL-ASSETS> 1,382,727
<CURRENT-LIABILITIES> 335,514
<BONDS> 0
<COMMON> 142,493
0
0
<OTHER-SE> 448,990
<TOTAL-LIABILITY-AND-EQUITY> 1,382,727
<SALES> 693,900
<TOTAL-REVENUES> 693,900
<CGS> 140,923
<TOTAL-COSTS> 140,923
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 241,036
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 912,974
<CHANGES> 0
<NET-INCOME> 1,154,010
<EPS-PRIMARY> .08
<EPS-DILUTED> .08
</TABLE>
