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 June 30, 1996
[ ] 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 June 30, 1996:
15,114,311 shares of Common Stock, par value $.01 per share.
<PAGE>
<TABLE>
<CAPTION>
Cyber Digital, Inc.
BALANCE SHEETS
ASSETS
June 30, March 31,
1996 1996
(Unaudited) (Audited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 67,432 $ 156,027
Accounts receivable 691,309 684,875
Inventories 431,735 433,582
Prepaid expenses 1,002 4,007
__________ __________
Total Current Assets $1,191,478 $1,278,491
__________ __________
PROPERTY AND EQUIPMENT, NET
Equipment $ 625,060 $ 625,060
Furniture and Fixtures 53,988 53,988
__________ __________
$ 679,048 $ 679,048
Accumulated Depreciation (650,539 (648,357)
__________ __________
Total Property and Equipment $ 28,509 $ 30,691
__________ __________
OTHER ASSETS
Other $ 10,680 $ 10,680
__________ __________
$1,230,667 $1,319,862
========== ==========
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
Cyber Digital, Inc.
BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)
June 30, March 31,
1996 1996
(Unaudited) (Audited)
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 38,605 $ 48,385
Current maturities of long-term debt 498,871 748,037
___________ ___________
Total Current Liaiblities $ 537,476 $ 796,422
Long-Term Debt, less current maturities 100,000 148,997
___________ ___________
$ 637,476 $ 945,419
SHAREHOLDERS' EQUITY (DEFICIT)
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, 15,114,311 shares and
15,110,311 shares at June 30, 1996
and March 31, 1996, respectively $ 151,143 $ 151,103
Additional paid-in-capital 6,257,106 6,253,146
Accumulated deficit (5,815,058) (6,029,806)
___________ ___________
$ 593,191 $ 374,443
___________ ___________
$ 1,230,667 $ 1,319,862
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
Cyber Digital, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30,
1996 1995
<S> <C> <C>
Net Sales $ 18,734 $ 273,624
Cost of Sales 8,574 93,308
__________ __________
Gross Profit $ 10,160 $ 180,316
__________ __________
Operating Expenses
Selling, general and
administrative expenses $ 87,875 $ 101,805
__________ __________
Total Operating Expenses $ 87,875 $ 101,805
__________ __________
Operating Profit (Loss) $ (77,715) $ 78,511
Other Income, net 706 302
__________ __________
Earnings (loss) before extraordinary item $ (77,009) $ 78,813
Extraordinary gain 291,756 0
__________ __________
Net Income $ 214,747 $ 78,813
Net Earnings (Loss) per common and
common equivalent share
Earnings (loss) before extraordinary
item $ (0.01) $ 0.01
Extraordinary item 0.02 0.00
__________ __________
Net earnings per common and common
equivalent share $ 0.01 $ 0.01
========== ==========
Weighted average number of
shares outstanding 16,975,311 14,830,336
========== ==========
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
<CAPTION>
Cyber Digital, Inc.
STATEMENTS OF CASH FLOWS
(Unaudited)
Quarter Ended
June 30,
1996 1995
<S> <C> <C>
Cash Flows from Operating Activities
Net earnings (loss) $ 214,747 $ 78,813
Adjustments to reconcile net earnings
(loss) to net cash used in operating
activities:
Depreciation 2,182 2,091
Amortization 0 3,762
Forgiveness of debt (291,756) 0
(Increase) decrease in operating assets
Accounts Receivable (6,434) (254,298)
Inventories 1,847 80,070
Prepaid Expenses 3,005 2,677
Decrease in operating liabilities
Accounts payable and accrued expenses (9,780) (1,611(
_________ _________
Net cash used in operating activities $ (86,189) $ (88,496)
_________ _________
Cash Flows from Financing Activities
Issuance of common stock $ 4,000 $ 25,000
Payments of long-term debt (6,406) (943)
_________ _________
Net cash provided by (used in)
financing activities $ (2,406) $ 24,057
_________ _________
NET DECREASE IN CASH AND CASH EQUIVALENTS $ (88,595) $ (64,439)
Cash and cash equivalents at beginning
of period 156,027 81,888
_________ _________
Cash and cash equivalents at end of period $ 67,432 $ 17,449
========= =========
Supplemental Disclosure of Cash Flow
Information:
Cash paid during the period for
income taxes $ 404 $ 429
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
CYBER DIGITAL, INC.
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 three months ended June 30, 1996 are not necessarily indicative
of the results that may be expected for the year ending March 31, 1997.
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, 1996.
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>
June 30, 1996 March 31, 1996
<S> <C> <C>
Finished goods $ 122,019 $ 123,866
Work-in-process 33,123 33,123
Raw materials 276,593 276,593
_________ _________
$ 431,735 $ 433,582 $494,301
========= =========
</TABLE>
<PAGE>
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Results of Operations
Net sales decreased 93% in quarter ended June 30, 1996 over the
prior year's same quarter. Net sales for quarter ended June 30, 1996
were $18,734 as compared to $273,624 for quarter ended June 30, 1995.
Gross profit for quarter ended June 30, 1996 was 54% of net sales as
compared to 66% for quarter ended June 30, 1995. 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 increased from 37%
in quarter ended June 30, 1995 to 469% in quarter ended June 30,
1996. Profit (loss) from operations for quarter ended June 30, 1996
was $(77,715) as compared with $78,511 for quarter ended June 30,
1995. Extraordinary gain on debt restructure for the period ended
June 30, 1996 was $291,756 or $.02 per share. Net income for quarter
ended June 30, 1996 was $214,747 or $.01 per share as compared to $78,813
or $.01 per share for quarter ended June 30, 1995.
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 $171,933 to $654,002 for quarter ended June 30, 1996 from $482,069
for period ended March 31, 1996. The current ratio increased to 2.2 to 1
as at June 30, 1996 from 1.6 to 1 as at March 31, 1996. 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 June 30, 1996 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.
Subsequent Event
On July 11, 1996, the Company concluded a private placement of its Series
A Preferred Stock and accompanying warrants to accredited institutional
investors and received net proceeds of $7,049,500.
<PAGE>
CYBER DIGITAL, INC.
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
three months ended June 30, 1996.
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: August 14, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000721295
<NAME> CYBER DIGITAL, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 67,432
<SECURITIES> 0
<RECEIVABLES> 691,309
<ALLOWANCES> 0
<INVENTORY> 431,735
<CURRENT-ASSETS> 1,191,478
<PP&E> 625,060
<DEPRECIATION> 660,539
<TOTAL-ASSETS> 1,230,667
<CURRENT-LIABILITIES> 537,476
<BONDS> 0
<COMMON> 151,143
0
0
<OTHER-SE> 442,048
<TOTAL-LIABILITY-AND-EQUITY> 1,230,667
<SALES> 18,734
<TOTAL-REVENUES> 18,734
<CGS> 8,574
<TOTAL-COSTS> 8,574
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,792
<INCOME-PRETAX> (77,009)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 291,756
<CHANGES> 0
<NET-INCOME> 214,747
<EPS-PRIMARY> (.01)
<EPS-DILUTED> .01
</TABLE>
