<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K/A No. 1
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
For the fiscal year ended July 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
Commission File Number: 0-13011
TNR TECHNICAL, INC.
-----------------------------------------------------
(Exact name of Registrant as specified in its charter)
New York 11-2565202
- ------------------------------- ----------------------
(State of jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
301 Central Park Drive
Sanford, Florida 32771
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including area code: (407) 321-3011
--------------
Securities registered pursuant to Section 12(b) of the Act:
None
-----------------------------------------------------------
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.02 Par Value
------------------------------------
(Title of Class)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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 ___.
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K (ss.229.405 of this chapter) is not contained herein,
and will not be contained, to the best of Registrant's knowledge, in definitive
proxy or information statements incorporated by reference in part III of this
Form 10-K or any amendment to this Form 10-K [x].
As of September 16, 1996, the number of shares held by non-affiliates
was approximately 155,000 shares. Due to the limited market for the Company's
Common Stock, no value has been attributed to the shares held by non-affiliates.
The number of shares outstanding of the issuer's Common Stock, as of
September 16, 1996 was 262,437.
<PAGE>
Item 7. Managements Discussion and Analysis of Financial Condition
and Results of Operations.
Liquidity and Capital Resources
Working capital amounted to $1,569,635 at July 31, 1996 as compared to
$1,456,548 at July 31, 1995 as compared to $1,272,929 at July 31, 1994. Cash and
short-term investments amounted to $774,570 at July 31, 1996 as compared to
$608,161 at July 31, 1995 as compared to $727,573 at July 31, 1994. As more
fully described in the "Statements of Cash Flows" included in the Company's
Financial Statements elsewhere herein, net cash provided by (used in) operating
activities for the fiscal years ended July 31, 1996, July 31, 1995 and July 31,
1994 were $242,858, ($83,021) and $51,533, respectively. During 1996, 1995 and
1994, the Company's net income contributed to cash flows from operating
activities. In 1996, cash flow from operating activities were increased
substantially by decreases in inventories partially offset by increases in
accounts receivable. In 1995 and 1994, cash flows from operating activities were
substantially reduced by increases in accounts receivable and inventories.
During 1996 net cash was provided by investing activities as a result of
reduction in short term investments partially offset by purchase of property and
equipment. During 1995 and 1994, net cash was used in investing activities to
increase short term investments and purchase property and equipment. During the
past three years, the Company did not have any external sources of financing.
Management purchased larger than customary volumes of product during
the latter half of 1995 primarily to take advantage of certain price breaks
offered at the time and in anticipation of increased sales in fiscal 1996 over
fiscal 1995. In early 1996 as a result of strong, but not dramatically increased
sales, further purchases of inventory were substantially reduced which caused
inventory levels to decrease to more manageable and appropriate level given the
volume of sales experienced over the past three years.
With respect to accounts payable, the balance of accounts payable was
decreased approximately $150,000 during the year ended July 31, 1996, as a
result of the availability of cash which was primarily caused by substantially
decreased levels of inventory purchases for the reasons discussed above.
During the past three years, the Company's liquidity needs has been
satisfied from internal sources including cash from operations and amounts
available from the Company's working capital. During fiscal 1997, Management
expects this trend to continue. There are no material commitments for capital
expenditures or any long-term credit arrangements as of July 31, 1996.
Results of Operations
Sales for 1996 increased by approximately $82,000 or 2% as compared to
fiscal 1995. Sales for fiscal 1995 increased by approximately $125,000 or 3% as
compared to fiscal 1994. The sales increases were due to increased demand for
the Company's
2
<PAGE>
products from the Company's existing client base and from new customers. During
fiscal 1994, one customer accounted for 13% of the Company's revenues. The
Company's gross margin fluctuated slightly over the past three years primarily
due to changes in product mix.
Operating (selling, general and administrative) expenses increased
during fiscal 1996 as compared to fiscal 1995 and for fiscal 1995 as compared to
fiscal 1994, substantially due to increases in administrative salaries and bad
debt expense. Operating expenses when expressed as a percentage of net sales was
22.7%, 21.5%, and 21.2%, for fiscal 1996, fiscal 1995 and fiscal 1994,
respectively.
During the past three years, the Company did not charge its operations
with any research and development costs.
Net income for fiscal 1996 was $135,398 as compared to $437,982, for
fiscal 1995 as compared to a net income for fiscal 1994 of $148,238. Net income
per share for fiscal 1996, fiscal 1995 and 1994 were $.52, $1.67 and $.56,
respectively. The substantial increase in net income for fiscal 1995 over fiscal
1994 was due to a $250,000 credit to income tax expense as a result of the
elimination of a valuation allowance with respect to existing deferred tax
assets as of July 31, 1995. See Note 6 to the financial statements included
elsewhere herein.
Management of TNR Technical, Inc. has received a number of comments
from its odd lot stockholders regarding the costs associated with any sale of
their odd lots. Further, Management would like to reduce TNR's expense of
maintaining mailings to odd lot holders. Accordingly, TNR will from time-to-time
privately purchase from odd lot holders of its common stock, such odd lots (i.e.
99 shares or less) from its stockholders of record on December 15, 1995 so long
as such purchases would not have the effect of reducing TNR's record holders to
500 or less. The purchase price to be paid will be based upon the closing asked
price on the NASD electronic bulletin board of TNR's Common Stock for the
preceding trading day. Stockholders will not be permitted to breakup their
stockholdings into odd lots and stockholders or their legal representatives must
affirm to TNR that the odd lot shares submitted for payment represent the
stockholder's entire holdings and that such holdings do not exceed 99 shares.
(This offer shall be open to all odd lot beneficial holders even those held in
street or nominee name so long as the proper representations can be obtained
satisfactory to TNR that the shares are odd lot shares, were owned by the
beneficial stockholder as of December 15, 1995 and represent such stockholder's
entire holdings of TNR). This offer will not be valid in those states or
jurisdictions where such offer or sale would be unlawful.
Item 8. Financial Statements and Supplementary Data.
The information required by Item 8, and an index thereto, appears at
pages F-1 through F-12 (inclusive) of this Report, which pages follow Item 9.
3
<PAGE>
TNR TECHNICAL, INC.
Index to Financial Statements
<TABLE>
<CAPTION>
<S> <C>
Independent Auditors' Report -- July 31, 1996 F-1
Report of Independent Certified Public Accountant -- July 31, 1995 F-2
Financial Statements:
Balance Sheets -- July 31, 1996 and 1995 F-3
Statements of Operations -- Three years ended July 31, 1996 F-4
Statements of Stockholders' Equity -- Three years ended July 31, 1996 F-5
Statements of Cash Flows -- Three years ended July 31, 1996 F-6
Notes to Financial Statements F-7
</TABLE>
<PAGE>
Independent Auditors' Report
The Shareholders and Board of Directors
TNR Technical, Inc.:
We have audited the accompanying balance sheet of TNR Technical, Inc. as of July
31, 1996, and the related statements of operations, shareholders' equity and
cash flows for the year then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of TNR Technical, Inc. as of July
31, 1996 and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
/s/ James, Park, Tschopp & Whitcomb, P.A.
-----------------------------------------
August 30, 1996
Maitland, Florida
F-1
<PAGE>
Report of Independent Certified Public Accountant
The financial statements of TNR Technical, Inc. as of July 31, 1995 and for the
two years then ended were audited by Burton R. Abrams, CPA, a sole practitioner
who died in November 1995. The Company's Form 10-K for the fiscal year ended
July 31, 1995 includes his report dated August 25, 1995 wherein Mr. Abrams
expressed an unqualified opinion on the financial statements of TNR Technical,
Inc. as of July 31, 1995 and for the two years then ended which he manually
executed. However, his report cannot be included herein without his consent, and
as a result of his death has not been included. Based upon the audit of the
financial statements of TNR Technical, Inc. as of July 31, 1996 and the year
then ended, the firm of James, Parks, Tschopp and Whitcomb, P.A. has indicated
that no matters have come to their attention which might have a material effect
on, or require disclosure in, the financial statements reported on previously by
Mr. Abrams.
F-2
<PAGE>
TNR TECHNICAL, INC.
Balance Sheets
July 31, 1996 and 1995
Assets
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 426,320 100,298
Short-term investments (note 2) 348,250 507,863
Accounts receivable - trade, less allowance for doubtful accounts
of $20,000 in 1996 and $18,000 in 1995 442,181 380,302
Income taxes receivable 1,685 --
Inventories (note 3) 440,586 715,438
Prepaid expenses and other current assets 5,198 5,842
Deferred income taxes (note 6) 13,000 15,000
----------- -----------
Total current assets 1,677,220 1,724,743
Deferred income taxes (note 6) 197,000 235,000
Property and equipment, at cost, net of accumulated depreciation and
amortization (note 4) 109,796 56,877
Other assets:
Deposits 13,383 5,991
----------- -----------
Total assets $ 1,997,399 2,022,611
=========== ===========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 61,077 220,038
Accrued expenses 46,508 42,657
Income taxes payable -- 5,500
----------- -----------
Total current liabilities 107,585 268,195
----------- -----------
Shareholders' equity:
Common stock - $.02 par value, authorized 500,000 shares; issued
and outstanding 301,581 shares (note 5) 6,032 6,032
Additional paid in capital 2,640,001 2,640,001
Accumulated deficit (561,949) (697,347)
----------- -----------
2,084,084 1,948,686
Less cost of treasury stock - 39,159 shares 194,270 194,270
----------- -----------
Total shareholders' equity 1,889,814 1,754,416
----------- -----------
Commitment (note 7) $ 1,997,399 2,022,611
=========== ===========
</TABLE>
See accompanying notes to financial statements.
F-3
<PAGE>
TNR TECHNICAL, INC.
Statements of Operations
Years ended July 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
1996 1995 1994
---------- ---------- ----------
<S> <C> <C> <C>
Revenues:
Net sales $3,792,537 3,710,805 3,585,872
---------- ---------- ----------
Costs and expenses:
Cost of goods sold 2,779,595 2,746,734 2,690,768
Selling, general and administrative (note 9) 859,047 799,572 758,706
---------- ---------- ----------
3,638,642 3,546,306 3,449,474
---------- ---------- ----------
Operating income 153,895 164,499 136,398
Non-operating revenue (expense):
Interest income 30,538 34,483 19,340
---------- ---------- ----------
Income before income taxes 184,433 198,982 155,738
Income tax expense (benefit) (note 6) 49,035 (239,000) 7,500
---------- ---------- ----------
Net income $ 135,398 437,982 148,238
========== ========== ==========
Net income per share $ .52 1.67 .56
========== ========== ==========
Weighted average number of shares 262,422 262,422 262,422
========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
F-4
<PAGE>
TNR TECHNICAL, INC.
Statements of Shareholders' Equity
Years ended July 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
Additional
Common Stock Paid-in Accumulated Treasury
Shares Amount Capital Deficit Stock
------ ------ ---------- ----------- --------
<S> <C> <C> <C> <C> <C>
Balance, July 31, 1993 301,581 $ 6,032 2,640,001 (1,283,567) (194,270)
Net income - - - 148,238 -
----------- ---------- --------- ---------- --------
Balance, July 31, 1994 301,581 6,032 2,640,001 (1,135,329) (194,270)
Net income - - - 437,982 -
----------- ---------- --------- ---------- --------
Balance, July 31, 1995 301,581 6,032 2,640,001 (697,347) (194,270)
Net income - - - 135,398 -
----------- ---------- --------- ---------- --------
Balance, July 31, 1996 301,581 $ 6,032 2,640,001 (561,949) (194,270)
=========== ========== ========= ========== ========
</TABLE>
See accompanying notes to financial statements.
F-5
<PAGE>
TNR TECHNICAL, INC.
Statements of Cash Flows
Years ended July 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>
1996 1995 1994
----------- ----------- -----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income 135,398 437,982 148,238
Adjustments to reconcile net income to net cash provided
by operations:
Deferred income taxes 40,000 (250,000) --
Depreciation and amortization 23,530 17,028 14,730
Gain on sale of transportation equipment -- -- (2,728)
Provision for doubtful accounts 24,820 6,000 20,721
Changes in operating assets and liabilities:
Accounts receivable (86,699) (91,912) (23,777)
Inventories 274,852 (270,260) (118,170)
Prepaid expenses and other assets 644 15,727 (7,127)
Accounts payable and accrued expenses (155,110) 52,414 19,646
Deposits (7,392) -- --
Income taxes (7,185) -- --
----------- ----------- -----------
Net cash provided by (used in) operating activities 242,858 (83,021) 51,533
----------- ----------- -----------
Cash flows from investing activities :
Purchases of short-term investments (1,047,304) (758,442) (218,769)
Maturities of short-term investments 1,206,917 624,348 175,000
Purchase of property and equipment (76,449) (36,391) (16,531)
----------- ----------- -----------
Net cash provided by (used in) investing activities 83,164 (170,485) (60,300)
----------- ----------- -----------
Increase (decrease) in cash and cash equivalents 326,022 (253,506) (8,767)
Cash and cash equivalents - beginning of year 100,298 353,804 362,571
----------- ----------- -----------
Cash and cash equivalents - end of year $ 426,320 100,298 353,804
=========== =========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the year for interest $ -- -- 461
=========== =========== ===========
Cash paid during the year for income taxes $ 10,860 13,000 --
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
F-6
<PAGE>
TNR TECHNICAL, INC.
Notes to Financial Statements
July 31, 1996 and 1995
(1) Summary of Significant Accounting Policies
(a) Nature of Operations
TNR Technical, Inc. (TNR or the Company) designs, assembles and
markets batteries and multi-cell battery packs to a wide
variety of industrial markets. The Company is a distributor for
a number of major U.S. battery manufacturers and markets its
products nationally.
(b) Inventories
Inventories are stated at the lower of cost or market. Cost is
determined by the first-in, first-out method.
(c) Property and Equipment
Property and equipment are recorded at cost. The Company
provides depreciation for machinery and equipment using the
straight-line method over the estimated useful lives of the
respective assets which range from five to ten years.
Amortization of leasehold improvements is computed using the
straight-line method over the lesser of the lease term or
estimated useful lives of the improvements.
(d) Research and Development Costs
Research and development costs are charged against income in
the year incurred.
(e) Revenue Recognition
The Company recognizes revenue upon shipment of its product
from its warehouse facilities.
(f) Use of Estimates
Management of the Company has made certain estimates and
assumptions relating to the reporting of assets and liabilities
and disclosure of contingent assets and liabilities to prepare
these financial statements in conformity with generally
accepted accounting principles. Actual results could differ
from those estimates.
(Continued)
F-7
<PAGE>
TNR TECHNICAL, INC.
Notes to Financial Statements
July 31, 1996 and 1995
(1) Continued
(g) Financial Instruments Fair Value, Concentration of Business
and Credit Risks
The carrying amount reported in the balance sheet for cash,
short-term investments, accounts receivable, accounts payable
and accrued expenses approximates fair value because of the
immediate or short-term maturity of these financial
instruments. Financial instruments which potentially subject
the Company to concentrations of credit risk consist
principally of trade accounts receivable which amount to
approximately $450,000. The Company performs periodic credit
evaluations of its trade customers and generally does not
require collateral.
(h) Income Taxes
Deferred tax assets and liabilities are recognized for the
future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and
liabilities and their respective tax bases. Deferred tax assets
and liabilities are measured using enacted tax rates expected
to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled.
The effect on deferred tax assets and liabilities of a change
in tax rates is recognized in income in the period that
includes the enactment date.
(i) Cash Flows
For purposes of cash flows, the Company considers all highly
liquid investments with a maturity of three months or less to
be cash equivalents.
(j) Earnings Per Common Share
Earnings per common share has been computed based upon the
weighted average number of common shares outstanding during the
years presented.
(k) Reclassifications
Certain amounts from 1995 and 1994 have been reclassified to
conform with the 1996 presentation.
(Continued)
F-8
<PAGE>
TNR TECHNICAL, INC.
Notes to Financial Statements
July 31, 1996 and 1995
(2) Short-Term Investments
Short-term investments in 1996 and 1995 consist of the following:
<TABLE>
<CAPTION>
Description Face Value Price Maturity Balance
----------- ---------- ----- -------- -------
1996:
-----
<S> <C> <C> <C> <C> <C> <C>
United States Treasury Bill $ 350,000 99-1/2 08-29-96 $ 348,250
===========
1995:
-----
United States Treasury Bill $ 100,000 99-5/8 08-24-95 $ 99,625
United States Treasury Bill 100,000 99-1/2 08-31-95 99,500
United States Treasury Bill 65,000 99-1/4 11-16-95 63,862
United States Treasury Bill 75,000 99-1/8 11-30-95 73,594
United States Treasury Bill 175,000 97-7/8 12-14-95 171,282
-----------
$ 507,863
===========
</TABLE>
(3) Inventories
Inventories consist of the following:
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Finished goods $ 430,061 706,430
Work-in-process - -
Purchased parts and material 10,525 9,008
------------ -------
$ 440,586 715,438
============ =======
</TABLE>
(4) Property and Equipment
Property and equipment consists of the following:
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Machinery and equipment $ 164,450 114,605
Leasehold improvements 23,467 3,701
------------ -------
187,917 118,306
Less: Accumulated depreciation and amortization 78,121 61,429
------------ -------
$ 109,796 56,877
============ =======
</TABLE>
(Continued)
F-9
<PAGE>
TNR TECHNICAL, INC.
Notes to Financial Statements
July 31, 1996 and 1995
(5) Stock Option Plan
In November 1992, the Board of Directors approved an Incentive and
Non-Qualified Stock Option Plan which was ratified by the stockholders in
January 1993. The plan covers 60,000 shares of Common Stock, subject to
adjustment of shares under the anti-dilution provisions of the Plan. The
plan authorizes the issuance of the options covered thereby as either
"Incentive Stock Options" within the meaning of the Internal Revenue Code
of 1986, as amended, or as "Non-Statutory Stock Options." No options may
be granted after November 16, 2002.
Under the Plan, the aggregate fair market value (determined at the time
the option is granted) of the optioned stock for which Incentive Stock
Options are exercisable for the first time by any employee during any
calendar year shall not exceed $100,000.
No options have been granted under the Plan as of July 31, 1996.
(6) Income Taxes
The income tax provision (benefit) for the years ended December 31, 1996,
1995 and 1994 consists of the following:
1996 1995 1994
--------- --------- ---------
Current:
Federal $ -- -- --
State 9,035 11,000 7,500
--------- --------- ---------
9,035 11,000 7,500
--------- --------- ---------
Deferred:
Federal 40,000 (250,000) --
State -- -- --
--------- --------- ---------
40,000 (250,000) --
--------- --------- ---------
Total $ 49,035 (239,000) 7,500
========= ========= =========
(Continued)
F-10
<PAGE>
TNR TECHNICAL, INC.
Notes to Financial Statements
July 31, 1996 and 1995
(6) Continued
Income tax expense (benefit) attributable to income before income tax
differed from the amount computed by applying the U.S. Federal income tax
rate of 34% to income (loss) from operations before income taxes as a
result of the following:
<TABLE>
<CAPTION>
1996 1995 1994
--------- --------- ---------
<S> <C> <C> <C>
Computed "expected" tax expense $ 62,700 67,700 53,000
Increase (reduction) in income tax expense (benefit)
resulting from:
State income taxes, net of federal income tax benefit
6,000 7,000 5,500
Utilization of net operating loss carryforwards -- (52,500) (39,000)
Rate differences (19,965) (11,200) (12,000)
Reduction in valuation allowance -- (250,000) --
--------- --------- ---------
$ 49,035 (239,000) 7,500
========= ========= =========
</TABLE>
The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets at July 31, 1996 and 1995 are
presented below:
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Deferred tax assets:
Inventories, principally due to additional costs
inventoried for tax purposes $ 8,000 11,000
Accounts receivable, due to allowance for uncollectible
accounts 5,000 4,000
Net operating losses 197,000 235,000
------------ -------
210,000 250,000
Less valuation allowance - -
------------ -------
Total $ 210,000 250,000
============ =======
</TABLE>
(Continued)
F-11
<PAGE>
TNR TECHNICAL, INC.
Notes to Financial Statements
July 31, 1996 and 1995
(6) Continued
Deferred taxes are presented in the accompanying balance sheets as:
1996 1995
---- ----
Current deferred tax assets $ 13,000 15,000
Noncurrent deferred tax assets 197,000 235,000
------------- -------
$ 210,000 250,000
============= =======
In the year ended July 31, 1994, the Company adopted the Financial
Accounting Board Statement No. 109, "Accounting for Income Taxes" and
recorded a gross deferred tax asset of $250,000 which was offset by a
valuation allowance in the same amount as of July 31, 1994. During fiscal
1995, the Company reversed the entire valuation allowance and,
accordingly, credited $250,000 to income tax expense.
In assessing the realizability of deferred tax assets, management
considers whether it is more likely than not that some portion or all of
the deferred tax assets will be realized. Management considers the
projected future taxable income and tax planning strategies in making
this assessment. The Company believes that future earnings in addition to
the amount of taxable differences which will reverse in future periods,
will be sufficient to offset recorded deferred tax assets and,
accordingly, a valuation allowance is not considered necessary at July
31, 1996 and 1995.
At July 31, 1996, the Company has net operating loss carryforwards of
approximately $780,000 which will expire as follows:
Year Ending July 31,
--------------------
2002 $ 150,000
2003 380,000
2004 250,000
(Continued)
F-12
<PAGE>
TNR TECHNICAL, INC.
Notes to Financial Statements
July 31, 1996 and 1995
(7) Lease Commitment
Commencing in June 1996, the Company entered into an agreement to lease
its office, warehouse and distribution facilities from a partnership
controlled by an executive officer, shareholder and director of TNR. The
lease agreement provides for a term of ten years including the payments
as indicated below:
Year Ending July 31,
--------------------
1997 $ 60,298
1998 63,313
1999 66,480
2000 69,804
2001 73,293
Thereafter 409,007
------------
$ 742,195
============
(8) Sales to Major Customers
During the years ended July 31, 1996 and 1995, no customer accounted for
more than 10% of total revenues. During the year ended July 31, 1994, one
customer accounted for approximately 13% of total revenues.
(9) Supplementary Information
1996 1995 1994
------- ------- -------
Advertising costs $37,244 56,810 78,249
Provision for doubtful accounts 24,820 6,000 20,721
The provision for doubtful accounts and advertising costs are included in
selling, general and administrative costs in the accompanying statements of
operations.
F-13
<PAGE>
TNR TECHNICAL, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TNR TECHNICAL, INC.
-----------------------------------
(Registrant)
Dated: March 6, 1997
/s/ Jerrold Lazarus
-----------------------------------
Jerrold Lazarus (Chairman of the
Board, Chief Executive Officer,
Chief Accounting and Financial
Officer and Treasurer)
4
