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, 1998
[ ] 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 common equity outstanding at June 30, 1998:
17,386,053 shares of Common Stock, par value $.01 per share.
<PAGE>
<TABLE>
<CAPTION>
Cyber Digital, Inc.
BALANCE SHEETS
ASSETS
June 30, March 31,
1998 1998
(Unaudited) (Audited)
<C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 1,683,144 $ 2,436,473
Accounts receivable 403,180 383,603
Inventories 447,750 447,750
Prepaid expenses 8,417 23,545
____________ ____________
Total Current Assets $ 2,542,491 $ 3,291,371
____________ ____________
PROPERTY AND EQUIPMENT, NET
Equipment $ 288,794 $ 275,819
Furniture and Fixtures 72,186 68,271
Leasehold Improvements 2,920 2,920
____________ ____________
$ 363,900 $ 347,010
Accumulated depreciation (134,040) (119,045)
____________ ____________
TOTAL PROPERTY AND EQUIPMENT $ 229,860 $ 227,965
____________ ____________
OTHER ASSETS
Other $ 14,999 $ 14,350
____________ ____________
$ 2,787,350 $ 3,533,686
============ ============
</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,
1998 1998
(Unaudited) (Audited)
<C> <C>
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 52,729 $ 140,949
____________ ____________
Total Current Liabilities $ 52,729 $ 140,949
____________ ___________
SHAREHOLDERS' EQUITY
Convertible preferred stock - Series
A $.05 par value; authorized 9,991,940
shares; issued and outstanding, 0
and 0 shares at June 30, 1998 and
March 31, 1998, respectively $ 0 $ 0
Convertible, cumulative and
participating preferred stock
- Series B-1 $.05 par value;
authorized 3,225 shares;
issued and outstanding 2,200 and
2,200 shares at June 30, 1998
and March 31, 1998, respectively 110 110
Preferred Stock - Series B-2 cumulative,
convertible and participating
$.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,
17,386,053 shares and 17,386,053
shares at June 30, 1998 and
March 31, 1998, respectively 173,861 173,861
Additional paid-in capital 13,860,257 13,860,257
Accumulated deficit (11,299,607) (10,641,491)
___________ ___________
$ 2,734,621 $ 3,392,737
____________ ___________
$ 2,787,350 $ 3,533,686
============ ===========
</TABLE>
The accompanying notes are an integral part of these statements.
<PAGE>
<TABLE>
<CAPTION>
Cyber DigitaI, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
June 30
1998 1997
<C> <C>
Net sales $ 81,380 $ 0
Cost of sales 130,750 18,324
___________ ___________
Gross Profit (Loss) $ (49,370) $ (18,324)
___________ ___________
Operating Expenses
Selling, general and
administrative expenses $ 527,121 $ 229,478
Research and development 107,982 43,962
___________ ___________
Total operating expenses $ 635,103 $ 273,440
___________ ___________
Operating Profit (Loss) $ (684,473) $ (291,764)
Other Income, net 26,357 57,115
___________ ___________
Net Loss $ (658,116) $ (234,649)
___________ ___________
Earnings (loss) per common and
common equivalent share
Net earnings per common and
common equivalent share $ (0.04) $ (0.01)
=========== ===========
Weighted average number of
common shares outstanding 17,312,550 17,096,313
=========== ===========
</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,
1998 1997
<C> <C>
Cash Flows from Operating Activities
Net earnings (loss) $ (658,116) $ (234,649)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 14,996 3,915
Amortization 0 216
(Increase) decrease in operating assets
Accounts receivable (19,577) (1,150)
Inventories 0 (2,630)
Prepaid expenses 15,129 613
Other assets (649) 0
Decrease in operating liabilities
Accounts payable and accrued expenses (88,222) 25,525
___________ ___________
Net cash used in operating activities $ (736,439) $ (208,160)
___________ ___________
Cash Flows from investing activities
Purchase of equipment $ (16,890) $ (62,255)
Purchase of furniture & fixtures 0 (1,305)
___________ ___________
Net cash used in investing activities $ (16,890) $ (63,560)
___________ ___________
Cash Flows from Financing Activities
Redemption of preferred stock $ 0 $ (551,766)
___________ ____________
Net cash used in financing activities $ 0 $ (551,766)
___________ ____________
NET DECREASE IN CASH AND CASH EQUIVALENTS $ (753,329) $ (823,486)
Cash and cash equivalents at
beginning of period 2,436,473 5,002,773
___________ ____________
Cash and cash equivalents at end
of period $ 1,683,144 $ 4,179,287
=========== ============
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period
for Income taxes $ 4,140 $ 6,353
=========== ===========
</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, 1998 are not necessarily
indicative of the results that may be expected for the year
ending March 31, 1999. 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, 1998.
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, 1998 March 31, 1998
<C> <C>
Raw materials $ 312,792 $ 312,792
Work-in-process 37,076 37,076
Finished goods 97,882 97,882
___________ ____________
$ 447,750 $ 447,750
=========== ============
</TABLE>
<PAGE>
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Results of Operations
Net sales for quarter ended June 30, 1998 were $81,380 as
compared to $0 for quarter ended June 30, 1997. Gross profit
(loss) for quarter ended June 30, 1998 was (61%) of net sales,
compared to (100%) for quarter ended June 30, 1997. 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 230% in quarter
ended June 30, 1998 as compared to quarter ended June 30, 1997.
Net loss for quarter ended June 30, 1998 was $(658,116) or $(.04)
per share as compared to $(234,649) or $(.01) per share for quarter ended
June 30, 1997.
Liquidity and Capital Resources
Total working capital decreased by $660,660 to $2,489,762 for
quarter ended June 30, 1998 from $3,150,422 for period ended
March 31, 1998. The current ratio increased to 48.2 to 1 as at
June 30, 1998 from 23.3 to 1 as at March 31, 1998. Current
levels of inventory are adequate to meet short term sales.
There were no significant capital expenditures in the quarter
ended June 30, 1998. 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, 1998.
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.
DATED: August 5, 1997
By: \s\ J.C. Chatpar
________________
Chairman of the Board, President,
Principal Financial Officer and
Chief Executive Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> Mar-31-1998
<PERIOD-END> Jun-30-1998
<CASH> 1,683,144
<SECURITIES> 0
<RECEIVABLES> 403,180
<ALLOWANCES> 0
<INVENTORY> 447,750
<CURRENT-ASSETS> 2,542,491
<PP&E> 229,860
<DEPRECIATION> 134,040
<TOTAL-ASSETS> 2,787,350
<CURRENT-LIABILITIES> 52,729
<BONDS> 0
0
110
<COMMON> 173,861
<OTHER-SE> 2,560,650
<TOTAL-LIABILITY-AND-EQUITY> 2,787,350
<SALES> 81,380
<TOTAL-REVENUES> 81,380
<CGS> 130,750
<TOTAL-COSTS> 130,750
<OTHER-EXPENSES> 635,103
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (658,116)
<INCOME-TAX> 0
<INCOME-CONTINUING> (658,116)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (658,116)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> (.04)
