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 September 30, 1996.
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File No. 0-8489
APOGEE ROBOTICS, INC.
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(Exact name of small business issuer as specified in its charter)
COLORADO 84-0916585
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(State of organization or other (IRS Employer Identification NO.)
jurisdiction of incorporation)
1301 Meadowood Lane
Charlotte, NC 28211
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(Address of Principal Executive Offices) Zip Code
Issuer's telephone number: (704) 366-8999
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act 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.
X
----- -----
YES NO
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court. Yes X No
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The number of shares of common stock or the issuer outstanding as of
October 10, 1996 was 18,195,022.
Transitional Small Business Disclosure Format (check one): Yes No X
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<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
<CAPTION>
APOGEE ROBOTICS, INC
(Debtor-in-Possession)
BALANCE SHEET
September 30, June 30,
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1996 1996
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ASSETS
<S> <C> <C>
Current Assets
Cash ............................................................................. $ 70,329 $ 103,920
Inventories ...................................................................... 10,491 10,491
Nonmarketable securities (estimated fair value, .................................. $ 168,255 $ 168,255
cost of $438,480,675)
Total current assets ................................................. 249,075 282,266
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OTHER ASSETS
Deposits and other assets ........................................................ 5,672 5,672
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Total other assets ................................................... 5,672 5,672
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TOTAL ASSETS ................................................................................. $ 254,747 $ 288,338
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ................................................................. 67,990 63,994
Other accrued liabilities ........................................................ 64,052 64,052
Total current liabilities ............................................ 132,042 128,046
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LIABILITIES SUBJECT TO COMPROMISE ............................................................ 3,497,132 3,497,132
STOCKHOLDERS' EQUITY
Common stock, no par value; 50,000,000 shares authorized;
18,205,151 and 16,472,110 shares issued and outstanding in
1995 and 1994, respectively ................................................... 10,683,590 10,683,590
Other capital .................................................................... 33,349 33,349
Accumulated deficit .............................................................. (14,091,366) (14,053,779)
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Total stockholders' equity ........................................... (3,374,427) (3,336,840)
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ................................................... $ 254,747 $ 288,338
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</TABLE>
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<PAGE>
<TABLE>
<CAPTION>
APOGEE ROBOTICS, INC
(Debtor-in-Possession)
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
September 30,
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1996 1995
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<S> <C> <C>
CONTRACT REVENUES AND SALES ............................ $ -- $ --
COST OF REVENUES AND SALES ............................. -- --
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GROSS LOSS ............................................. -- --
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OPERATING EXPENSES:
Selling, general and administrative
expenses ................................ 37,660 69,419
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Total Operating expenses ................... 37,660 69,419
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LOSS FROM OPERATIONS ................................... (37,660) 69,419
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OTHER INCOME (EXPENSE):
Interest income ............................ 80 --
Other, net ................................. -- 500
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Net other income (expense) ................. 80 (500)
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NET LOSS ............................................... $ (37,580) $ (68,919)
============ ============
LOSS PER COMMON SHARE .................................. * *
============ ============
WEIGHTED AVERAGE SHARES
OUTSTANDING ....................................... 18,195,022 18,195,022
============ ============
</TABLE>
* Less than $.01 per share
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<PAGE>
<TABLE>
<CAPTION>
APOGEE ROBOTICS, INC.
(Debtor-in-Possession)
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS
ENDED SEPTEMBER 30,
----------------------
1996 1995
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ...................................................... ($ 37,580) ($ 68,919)
Adjustments to reconcile to net cash from operating activities:
Increase in accounts payable and accrued liabilities .......... $ 3,996 $ 16,488
Increase in pre-petition tax liability ........................ -- $ 64,052
Other ......................................................... ($ 7) ($ 7)
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Net cash provide by (used in) operating activities ............ ($ 33,591) $ 11,614
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INCREASE (DECREASE IN CASH) ............................................... ($ 33,591) $ 11,614
CASH, at beginning of period .................................. $ 103,920 $ 118,364
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CASH, at end of period ........................................ $ 70,329 $ 129,978
========= =========
</TABLE>
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<PAGE>
APOGEE ROBOTICS, INC.
Notes to Financial Statements
1. In the opinion of management, the accompanying unaudited financial statements
contain all adjustments (all of which were normal recurring accruals) necessary
to present fairly the Company's financial position as of September 30, 1996 and
June 30, 1996 and the results of its operations and the statements of cash flows
for the three month periods ended September 30, 1995 and 1996.
The accounting policies followed by the Company are set forth in the 1996 Apogee
Robotics, Inc. 10-KSB Annual Report.
2. Inventories at September 30, 1996 and June 30, 1996 consisted of robotic
components, assembly parts and AGVS vehicles.
3. Earnings (loss) per common share is based on the weighted average number of
common shares outstanding during the period. Outstanding convertible preferred
stock, common stock warrants and options have not been included in the
computation of net (loss) per common share when this effect would have been
antidilutive.
4. Contingencies.
(a) The Company is a defendant in certain legal actions with a creditor
and insurance carrier.
(b) All pre-petition claims will be subject to settlement in accordance
with a plan of reorganization.
5. Proceedings Under Chapter 11. On December 9, 1994 (petition date), the
Company and it's wholly owned subsidiary, AGV Acquisitions, Inc. ("AGV"), filed
a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy
Code in the United States Bankruptcy Court for the District of Colorado, Denver,
Colorado. The Company continues business operations as a debtor-in-possession,
subject to the approval of the Court for certain of its proposed actions.
As of the petition date, actions to collect pre-petition indebtedness were
stayed and other contractual obligations may not be enforced against the
Company. In addition, the Company may reject executory contracts and lease
obligations during pendency of the Chapter 11 proceedings, and parties affected
by these rejections may file claims with the Bankruptcy Court in accordance with
the reorganization process. Substantially all unsecured liabilities of the
Company as of the petition date are subject to compromise under a plan of
reorganization which has not yet been completed; when completed, the plan of
reorganization must be voted upon by all impaired classes of creditors and
equity security holders and approved by the Bankruptcy Court.
6. Liabilities Subject to Compromise. The Company is in the process of disputing
certain claims filed, including all claims filed by former employees and trade
creditors of AGV. Management of the Company believes that such liabilities
represent a liability of SI Handling Systems, Inc. The Company is unable to
predict whether or not it will be successful in disputing claims filed.
No provision has been made for the effect of preference or other actions as they
cannot be determined at this time.
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<PAGE>
Item 2. Management's Discussion and Analysis or Plan of Operation.
General
Plan of Operation
During the forthcoming twelve (12) month period, the Company will diligently
pursue a merger partner. Company management is currently in negotiations with
four (4) corporate entities that have expressed interest in merging their
operations into Apogee for purposes of access to the public financial markets.
The company's bankruptcy filing and its ability to issue fully registered, free
trading securities as part of the reorganization process make this an attractive
feature for merger candidates. Company management expects to conclude these
negotiations within the next three (3) months and submit a Reorganization Plan
and Disclosure Statement to the bankruptcy court within the same period.
Current cash usage involves exclusively the maintenance of the bankruptcy
estate. Management expects sufficient cash to be available to maintain this
estate for the immediate future and through a merger process. Thereafter, the
reorganizaed entity will seek to satisfy its cash requirements through cash flow
from the operations of the merged partner.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
The following legal proceeding involving the Company have been successfully
resolved:
1) Case No. CV-ED94-270-RT (GAKX) filed in the US. District Court,
Central District of California, December 2, 1994 and subsequently
removed to the U.S. District Court, District of Colorado on February
16, 1995. This action was filed by Conagher against Apogee; certain
Company managers and directors; and the Company's outside auditors,
Brock & Co., Inc., alleging various securities violations and
misrepresentations. These proceedings were under automatic stay
provided under bankruptcy statutes. As a result of a Proof of claim
filed by Conagher, these claims, in addition to counterclaims, were
defended in the bankruptcy court under Claims Objection proceedings.
On March 4, 1996 Apogee submitted a Motion to Amend Objection and
Assert Counterclaims against Conagher. This motion was granted by
action of the Bankruptcy Court on April 8, 1996. Furthermore, as a
result of a Release and Settlement Agreement ("Settlement Agreement")
entered into between Conagher; Apogee's Directors and Officers
Liability Insurance carrier; Pattison Hayton III ("Hayton"); and James
W. Jones, Robert Oliphant, and Dennis C. Foss; Conagher withdrew this
action. Conagher's motion to withdraw its Proof of Claim was also
granted, subject to certain conditions. (Please see the Company's Form
8-K filing of February 27, 1996 for a discussion of this matter.
On September 10, 1996 the Bankruptcy Court entered a default against
Conagher for failure to conduct discovery and produce documents, and
on September 30, 1996 entered judgement on the default in the
aggregate sum of $2,590,336.00 in favor of the Company and against
Conagher.
Apogee will seek to enforce this judgement in jurisdictions the
Company believes Conagher domiciles or is conducting business in.
Company Management is not optimistic any collection will be made on
the judgement.
2) Case No. 3:95CV207H filed in the U.S. District Court, Western District
of North Carolina, May 1, 1995 by James R. Currier, Sr. against
Conagher and Hayton. This action was filed by Currier to see a
declaratory judgement relative to claims asserted by Conagher in an
action against Currier filed in the Superior court for the State of
California that was dismissed for the lack of personal jurisdiction.
Currier has made additional claims of fraud and misrepresentation
against Conagher and Hayton in this proceeding.
On September 16, 1996 a default judgement was entered against Hayton &
Conagher jointly and severally for $773,025.38 in damages and
$2,727.50 in attorneys' fees in favor of Currier. Currier has
commenced collection proceedings.
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<PAGE>
The following legal proceedings involving the Company are still pending:
1) Case No. 94-22193-CEM, Chapter 11 and Case No. 94-22194-MSK, Chapter
11, Jointly administered under Case No. 94-22193-CEM filed in the
United States Bankruptcy Court, District of Colorado December 9, 1994.
Apogees and it's wholly owned subsidiarily, AGV sought protection from
its creditors under Chapter 11 of the Federal Bankruptcy Statutes
appertaining thereto. Management believes that the Company is current
in all of its bankruptcy filings.
2) Case No. 95-1653 PAC filed by Apogee on October 20, 1995 in the United
States Bankruptcy Court, District of Colorado. Apogee seeks turnover
of 60,000 shares of stock in Loronix Information Systems, Inc.
("Loronix"), from creditor Foss Realty Corporation, ("Foss") which
claims a perfected security interest in the stock to secure a note
payable from the Company, and from Robert Oliphant, who holds the
stock certificate. Oliphant has disclaimed any interest in the 60,000
Loronix shares and entered an interpleading approved by the Bankruptcy
Court on February 6, 1996. Oliphant was subsequently dismissed from
the case.
On July 29, 1996 the Bankruptcy Court granted a motion by the Company
wherein the security interest of Foss in the Loronix stock was voided.
The Company subsequently filed a motion to sell the Loronix stock,
which is still pending.
Foss retained former Company council Hart & Trinen LLP and filed a
motion to set aside the July 29, 1996 ruling. Company management
believes this motion will be denied, in that no new evidence was
offered and the motion was not filed in a timely manner.
Item 3. Defaults Upon Senior Securities.
See notes 5 and 6 to the Financial Statements contained in Item 1 of Part I of
this report, which notes are incorporated herein by reference thereto.
Item 6. Exhibits and Reports on Form 8-K.
a) There are no exhibits required to be filed herewith.
b) No reports on Form 8-K were filed during the quarter for which this
report is filed.
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<PAGE>
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.
APOGEE ROBOTICS, INC.
Date: November 14, 1996 /s/ James R. Currier, Sr.
James R. Currier, Sr.
Chairman, President, C.E.O., & C.F.O.
(Principal Executive, Financial
and Accounting Officer)
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> SEP-30-1996
<CASH> 70,329
<SECURITIES> 168,225
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 10,491
<CURRENT-ASSETS> 249,075
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 254,747
<CURRENT-LIABILITIES> 132,042
<BONDS> 0
0
0
<COMMON> 10,683,500
<OTHER-SE> (14,058,017)
<TOTAL-LIABILITY-AND-EQUITY> 254,747
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 37,660
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (37,660)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 80
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37,580)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
