SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter ended December 31, 1998
Commission File No 2-97278-NY
INTERCOM TECHNOLOGIES CORP.
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(Exact name of registrant as specified in its charter)
New York 13-2932511
- --------------------------------- ------------------------
(State or other jurisdiction (IRS Employer ID Number)
of incorporation or organization)
195 Tenth Avenue, New York, New York 10011
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number including area code (212) 924-7597
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 THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE CLOSE OF THE PERIOD COVERED BY THIS REPORT.
Common Stock, Par Value $.001 120,239
- ----------------------------- --------------------------------
Class Outstanding at December 31, 1998
<PAGE>
Margery Davidson Member: NJCPA
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Certified Public Accountant
February 11, 1999
Mr. Dominick Pope
195 10th Avenue
New York, New York I 00 II
We have compiled the accompanying balance sheet of Intercom Technologies Corp.
as of December 31, 1998, and the related statements of income, cash flows and
statement of changes to stockholder's equity for the three months then ended, in
accordance with standards established by the American Institute of Certified
Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements, and accordingly, do not express
an opinion or any other form of assurance on them.
\s\ Margery S. Davidson
---------------------------
Margery S. Davidson
Certified Public Accountant
19 Ingram Circle, Aberdeen, N.J. 07747 (908) 583-7674 Fax: (908) 290-1504
<PAGE>
INTERCOM TECHNOLOGIES CORPORATION
BALANCE SHEET
THREE MONTHS ENDED DECEMBER 31,1998
ASSETS
CURRENT ASSETS:
Cash $ 18,607.
Accounts receivable net 52,592.
Inventory 31,640.
----------
TOTAL CURRENT ASSETS $ 102,839.
PROPERTY MACHINERY AND EQUIPMENT 3,136.
OTHER ASSETS 124,361.
----------
TOTAL ASSETS $ 230,336.
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Accounts payable and accrued expenses $ 44,930.
STOCKHOLDER'S EQUITY
Common stock-Par value $.0001;
250,000,000 shares authorized
120,239 shares issued and outstanding $ 14,304.
Treasurer stock (2,500.)
Paid-in capital 373,299.
Accumulated Deficit (199,697.)
----------
TOTAL STOCKHOLDER'S EQUITY $ 185,406.
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $ 230,336.
==========
The Accompanying Notes are an Integral Part of These Financial Statements
<PAGE>
INTERCOM TECHNOLOGIES CORPORATION
STATEMENT OF INCOME
THREE MONTHS ENDED DECEMBER 31,1998
SALES $ 135,410.
COST OF GOODS SOLD 66,948.
----------
GROSS PROFIT 68,462.
SELLING GENERAL AND ADMINISTRATION 80,006.
NET INCOME (LOSS) BEFORE TAXES (11,544.)
PROVISION FOR INCOME TAXES 300.
----------
NET INCOME (LOSS) $ (11,844.)
==========
NET INCOME (LOSS) PER SHARE (0.09850)
AVERAGE NUMBER OF SHARES OUTSTANDING 120,239.
The Accompanying Notes are an Integral Part of These Financial Statements
<PAGE>
INTERCOM TECHNOLOGIES CORPORATION
STATEMENT OF CASH FLOWS
THREE MONTHS ENDED DECEMBER 31,1998
CASH FLOW FROM OPERATING ACTIVITIES:
Net income (loss) $(11,844.)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation 324.
Changes in assets and liabilities
Decrease (Increase) in accounts receivable (5,569.)
Decrease (Increase) in inventory
Decrease (Increase) in other assets (9,232.)
Increase (Decrease) in accounts payable 22,915.
---------
CASH PROVIDED (USED) BY OPERATING ACTIVITIES (3,406.)
CASH FLOWS FROM INVESTING ACTIVITIES
CAPITAL EXPENDITURES --
---------
CASH PROVIDED (USED) BY INVESTING ACTIVITIES --
---------
CASH FLOWS FROM FINANCING ACTIVITIES --
---------
CASH PROVIDED (USED BY FINANCING ACTIVITIES --
---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (3,406.)
CASH AT BEGINNING OF YEAR 22,013.
CASH AT END OF YEAR $ 18,607.
=========
The Accompanying Notes are an Integral Part of These Financial Statements
<PAGE>
INTERCOM TECHNOLOGIES CORPORATION
STATEMENT OF CHANGES TO STOCKHOLDER'S EQUITY
THREE MONTHS ENDED DECEMBER 31,1998
<TABLE>
<CAPTION>
Common Treasury Additional Retained Total
stock stock paid in earnings
amount capital (deficit)
<S> <C> <C> <C> <C> <C>
Balance 10/1/98 $ 14,304. $ (2,500.) $ 373,299. $ (187,853.) $197,250.
Net Income (Loss) (11,844.) (11,844.)
Balance 12/31/98 14,304. $ (2,500.) $ 373,299. $ (199,697.) $185,406.
========= ========= ========== =========== =========
</TABLE>
The Accompanying Notes are an Integral Part of These Financial Statements
<PAGE>
INTERCOM TECHNOLOGIES CORPORATION
STATEMENT OF CASH FLOWS
THREE MONTHS ENDED DECEMBER 31,1998
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
1. ORGANIZATION
On October 10, 1977 L.J.L. Intercom Services Corp. was incorporated under the
laws of New York State, to engage in the business of Manufacturing and
Installing Intercom systems and to provide maintenance and repair to existing
Intercom systems.
2. CHANGE IN CORPORATE NAME
On March 31, 1985, the board of directors of L.J.L. Intercom Services Corp.
adopted a resolution to change the corporate name to Intercom Technologies Corp.
The stockholders of the Company approved this change on April 22, 1985.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Cash and Cash Equivalents
The Company considers all instruments with a maturity of three months or less to
be &ash and cash equivalents.
B. Accounts Receivable
Accounts receivable are represented net of allowance for bad debt.
C. Inventory
Inventory is stated at the lower of cost or market using the first-in-first-out
method.
D. Property and equipment
Property and equipment are carried at cost. The Company provides for
depreciation based on estimated useful lives of the assets. Depreciation is
provided principally on the straight-line method. Maintenance and repair costs
are charged to expense as incurred. Cost of replacements and improvements is
generally capitalized. The range of estimated useful lives used for depreciation
is as follows:
Years
Machinery and Equipment 3-10
Furniture and Fixtures 5-10
Leasehold Improvements 5
<PAGE>
INTERCOM TECHNOLOGIES CORPORATION
NOTES TO THE FINANCIAL STATEMENTS
THREE MONTHS ENDED DECEMBER 31,1998
4. INVENTORY
Inventory consists of the following:
Parts $ 5,000.
Finished Goods 26,640.
--------
Total $31,640.
========
5. PROPERTY AND EQUIPMENT
Property plant and equipment consists of:
Shop equipment $ 7,021.
Furniture and fixtures 1,922.
Show room 7,957.
Leasehold improvements 3,818.
Auto 3,250.
--------
Total Cost 23,968.
Accumulated depreciation 20,832.
--------
Total $ 3,136.
========
6. OTHER ASSETS
Other assets include loans to related parties in the amount of $ 115,667.
7. COMMITMENTS AND CONTINGENCIES
The Company leases its office space under a five year lease with monthly
payments. The Company also has two operating leases for automobiles with a
duration of two and three years.
Minimum annual rentals under these leases are:
September 30, 1999 $ 29,370.
2000 11,100.
---------
Total $ 40,470.
=========
<PAGE>
INTERCOM TECHNOLOGIES CORPORATION
NOTES TO THE FINANCIAL STATEMENTS
THREE MONTHS ENDED DECEMBER 31,1998
8. NET EARNINGS (LOSS) PER SHARE
Net earnings (loss) per share of common stock is based on the weighted average
number of shares outstanding.
9. STOCKHOLDERS EQUITY
On October 3, 1997 the Board of Directors of The Company approved a reverse
split of 3,400 to 1, so that each 3,400 shares issued and outstanding became one
share, and that any fractional shares be rounded up to the nearest whole share.
10. INCOME TAXES
Income taxes are provided for the tax effects of transactions reported in the
financial statements and consist of taxes currently due plus deferred taxes
related primarily to differences between the recorded book basis and tax basis
of assets and liabilities for financial and income tax reporting. The deferred
tax assets and liabilities represent the future tax return consequences of those
differences, which will either be taxable or deductible when the assets and
liabilities are recovered or settled. Deferred taxes are also recognized for
operating losses that are available to offset future taxable income and tax
credits that are available to offset federal income taxes. Due to the Company's
net operating losses in excess of $150,000. There are no income taxes currently
due. As of December 31, 1998 the company has a deferred tax asset of $0. Due to
recurring losses the company has a zero valuation allowance.
II. SUBSEQUENT EVENTS
The Company as of the report date has not entered into any significant business
transactions which would impair the balance sheet.
12. NET EARNINGS (LOSS) PER SHARE
Net earnings (loss) per share of common stock are based on the shares
outstanding as of the balance sheet date of 120,239 shares.
Net Income (Loss) $ (11,844.)
Shares outstanding at balance sheet date 120,239.
Net (Loss) per share $ (0.09850)
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report for the quarter ended December 31, 1998
to be signed on its behalf by the undersigned thereunto duly authorized.
INTERCOM TECHNOLOGIES CORP.
---------------------------
(Registrant)
Dated: March 3, 1999 By:
--------------------------------
Dominick P. Pope
President and Treasurer
(Principal Financial
Officer and Principal
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
Form 10Q for Intercom Technologies Corp for
three months ended 12-31-98
</LEGEND>
<CIK> 0000728422
<NAME> Intercom Technologies Corp.
<MULTIPLIER> 1
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<EXCHANGE-RATE> 1
<CASH> 18,607
<SECURITIES> 0
<RECEIVABLES> 52,592
<ALLOWANCES> 0
<INVENTORY> 31,640
<CURRENT-ASSETS> 102,839
<PP&E> 3,136
<DEPRECIATION> 0
<TOTAL-ASSETS> 230,336
<CURRENT-LIABILITIES> 44,930
<BONDS> 0
0
0
<COMMON> 14,304
<OTHER-SE> 320,799
<TOTAL-LIABILITY-AND-EQUITY> 230,336
<SALES> 135,410
<TOTAL-REVENUES> 135,410
<CGS> 66,948
<TOTAL-COSTS> 80,006
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
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<INCOME-PRETAX> (11,544)
<INCOME-TAX> 300
<INCOME-CONTINUING> (11,844)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (11,844)
<EPS-PRIMARY> (.098)
<EPS-DILUTED> (.098)
</TABLE>
