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, 1997
[ ] 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 August 12, 1997:
17,296,052 shares of Common Stock, par value $.01 per share.
<PAGE>
<TABLE>
<CAPTION>
Cyber Digital, Inc.
BALANCE SHEETS
ASSETS
CURRENT ASSETS
June 30, March 31,
1997 1997
(Unaudited) (Audited)
<C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 4,179,287 $ 5,002,773
Accounts receivable 328,527 327,377
Inventories 437,103 434,473
Prepaid expenses 9,631 10,243
--------- ---------
Total Current Assets $ 4,954,548 $ 5,774,866
PROPERTY AND EQUIPMENT, NET
Equipment $ 128,599 $ 66,345
Furniture and Fixtures 59,425 58,120
Leasehold Improvements 2,920 2,920
------- -------
$ 190,944 $ 127,385
Accumulated depreciation (88,283) (83,287)
------- -------
TOTAL PROPERTY AND EQUIPMENT $ 102,661 $ 44,098
OTHER ASSETS
Other $ 11,257 $ 10,392
------- -------
$5,068,466 $ 5,829,356
========= =========
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
Cyber Digital, Inc.
BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
June 30, March 31,
1997 1997
(Unaudited) (Audited)
<C> <C>
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 67,797 $ 42,273
Current maturities of long-term debt 0 0
------ ------
Total Current Liabilities $ 67,797 $ 42,273
Long-Term Debt, less current maturities 0 0
------ ------
$ 67,797 $ 42,273
SHAREHOLDERS' EQUITY
Preferred Stock - $.05 par value; authorized
10,000,000 shares;
Convertible preferred stock - Series
A $.05 par value; authorized 805
shares; issued and outstanding, 0 and
86 shares at June 30, 1997 and March 31, 1997
respectively 0 4
Convertible, cumulative and participating
preferred stock - Series B-1 $.05 par value;
authorized 3,225 shares; issued and
outstanding 2,000 and 2,000 shares at
June 30,1997 and March 31, 1997,
respectively 100 100
Convertible, cumulative and participating
preferred stock - Series B-2 $.05 par
value; authorized 4,835 shares;
issued and outstanding; none 0 0
Common Stock - $.01 par value; authorized,
30,000,000 shares; issued and outstanding,
17,296,052 shares and 17,095,176 shares
at June 30, 1997 and March 31, 1997,
respectively $ 172,960 $ 170,952
Additional paid-in capital 13,624,918 13,919,241
Accumulated deficit (8,797,309) (8,303,214)
--------- ---------
$5,000,669 $5,787,083
--------- ---------
$5,068,466 $5,829,356
========== ==========
</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,
1997 1996
<C> <C>
Net sales $ 0 $ 18,734
Cost of sales 18,324 8,574
-------- ------
Gross profit $ (18,324) $ 10,160
Operating Expenses
Selling, general and
administrative expenses $ 229,478 $ 87,875
Research and development 43,962 0
------- ------
Total operating expenses $ 273,440 $ 87,875
Operating Profit (Loss) $ (291,764) $ (77,715)
Other Income, net 57,115 706
Earnings (loss) before
extraordinary item $ (234,649) $ (77,009)
Extraordinary gain 0 291,756
--------- -------
Net Income $ (234,649) $ 214,747
Earnings (loss) per common and
common equivalent share
Earnings (loss) before
extraordinary item $ (0.01) $ (0.01)
Extraordinary item 0 0.02
-------- -------
Net earnings per common and
common equivalent share $ (0.01) $ 0.01
======== =======
Weighted average number of common
shares outstanding 17,096,313 16,975,311
</TABLE>
The accompanying notes are an integral part of these statements
<PAGE>
<TABLE>
<CAPTION>
Cyber Digital, Inc.
STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended June 30,
1997 1996
<C> <C>
Cash Flows from Operating Activities
Net earnings (loss) $ (234,649) $ 214,747
Adjustments to reconcile net
earnings (loss) to net cash
provided used in operating activities:
Depreciation 3,915 2,182
Amortization 216 0
Forgiveness of debt 0 (291,756)
(Increase) decrease in operating assets
Accounts receivable (1,150) (6,434)
Inventories (2,630) 1,847
Prepaid expenses 613 3,005
Other assets 0 0
Decrease in operating liabilities
Accounts payable and
accrued expenses 25,525 (9,780)
------ -----
Net cash used in
operating activities $ (208,160) $ (86,189)
Cash Flows from investing activities
Purchase of equipment (62,255) 0
Purchase of furniture & fixtures (1,305) 0
Purchase of leasehold improvements 0 0
-------- ------
Net cash (used in) provided
by investing activities $ (63,560) $ 0
Cash Flows from Financing Activities
Redemption of preferred stock $ (551,766) $ 0
Issuance of common stock 0 4000
Payments of long-term debt 0 (6,406)
------- -----
Net cash (used in) provided
by financing activities $ (551,766) $ (2,406)
--------- ------
NET DECREASE IN CASH AND
CASH EQUIVALENTS $ (823,486) $ (88,595)
Cash and cash equivalents at
beginning of period 5,002,773 156,027
Cash and cash equivalents at
end of period $ 4,179,287 $ 67,432
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period
for Income taxes $ 6,353 $ 404
</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, 1997 are not necessarily
indicative of the results that may be expected for the year
ending March 31, 1998. 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, 1997.
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, 1997 March 31, 1997
<C> <C>
Finished goods $ 110,222 $ 110,223
Work-in-process 46,718 46,718
Raw materials 280,163 277,532
------- -------
437,103 434,473
======= =======
</TABLE>
<PAGE>
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Results of Operations
Net sales decreased 100% in quarter ended June 30, 1997 over the
prior year's same quarter. Net sales for quarter ended June 30,
1997 were $0 as compared to $18,734 for quarter ended June 30,
1996. Gross profit (loss) for quarter ended June 30, 1997 was
$(18,324) compared to $10,160 for quarter ended June 30,
1996. 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 increased by 261% in quarter ended June 30, 1997 as
compared to quarter ended June 30, 1996. Profit (loss) from
operations for quarter ended June 30, 1997 was $(291,764) as
compared with $(77,715) for quarter ended June 30, 1996. Net
income (loss) for quarter ended June 30, 1997 was $(234,649) or
$(.01) per share as compared to $214,747 or $.01 per share for
quarter ended June 30, 1996.
Liquidity and Capital Resources
During the three month period ended June 30, 1997, the Company redeemed a
certain number of shares of Series A Preferred stock for an
aggregate of $551,766. Total working capital decreased by
$845,843 to $4,886,750 for quarter ended June 30, 1997 from
$5,732,593 for period ended March 31, 1997. The current ratio
decreased to 73.1 to 1 as at June 30, 1997 from 136.6 to 1 as at
March 31, 1997. Current levels of inventory are adequate to
meet short term sales. There were no significant capital
expenditures in the quarter ended June 30, 1997. 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>
CYBER DIGITAL, INC.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS IN FORM 8-K
A). Exhibits.
27 Financial Data Schedule
B). Reports on Form 8-K
No reports on Form 8-K were filed by the Registrant for
the three months ended June 30, 1997.
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.
CYBER DIGITAL, INC.
DATED: August 13, 1997
By: \s\ Jawahar Chatpar
Chairman, Principal Financial
Officer
<PAGE>
Index To Exhibit
Exhibit
Number Description
27 Financial Data Schedule
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Mar-31-1997
<PERIOD-END> Jun-30-1997
<CASH> 4,179,287
<SECURITIES> 0
<RECEIVABLES> 328,527
<ALLOWANCES> 0
<INVENTORY> 437,103
<CURRENT-ASSETS> 4,954,548
<PP&E> 190,944
<DEPRECIATION> 88,283
<TOTAL-ASSETS> 5,068,466
<CURRENT-LIABILITIES> 67,797
<BONDS> 0
0
100
<COMMON> 172,960
<OTHER-SE> 4,827,609
<TOTAL-LIABILITY-AND-EQUITY> 5,068,466
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 18,324
<TOTAL-COSTS> 18,324
<OTHER-EXPENSES> 57,115
<LOSS-PROVISION> 0
<interest expense> 4,606
<INCOME-PRETAX> (234,649)
<INCOME-TAX> 0
<INCOME-CONTINUING> (234,649)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (234,649)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
