UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
or the transition period from to
____________ _____________
Commission File Number 0-11718
Stevia Company, Inc.
_________________________________________________________________
(Exact name of registrant as specified in its charter)
Illinois 36-2967419
_______________________________ ____________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1940 East Devon Avenue, Elk Grove Village, Illinois 60007
______________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (708) 593-0226
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
_____ _____
Number of shares outstanding of common stock as of the close of
the period covered by this report: 32,195,300
Page 1 of 18 pages contained in the sequential numbering system.
<PAGE>
PART 1 - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Board of Directors and Shareholders
Stevia Company, Inc.
Elk Grove Village, Illinois
The accompanying balance sheet of STEVIA COMPANY, INC. at
October 31, 1995 and the related statements of operations,
shareholders' equity and changes in financial position for the
six month periods ended October 31, 1995 and 1994 were not
audited; however, the financial statements for the six months
periods ending October 31, 1995 and 1994 reflect all adjustments
(consisting only of normal reoccurring adjustments) which are, in
the opinion of management, necessary to provide a fair statement
of the results of operations for the interim period presented.
The financial statements for the year ended April 30, 1995
were not audited pursuant to Rule 210.3-11 promulgated under
Securities and Exchange Act of 1934; however, the financial
statements for the fiscal year ending April 30, 1995 reflect all
adjustments (consisting only of normal reoccurring adjustments)
which are, in the opinion of management, necessary to provide a
fair statement of the results of operations for the fiscal year
presented.
STEVIA COMPANY, INC.
December 12, 1995
<PAGE>
<TABLE>
STEVIA COMPANY, INC.
BALANCE SHEET
ASSETS
<CAPTION>
October 31, 1995 April 30, 1995
Unaudited Unaudited
_____________ ______________
<S> <C> <C>
CURRENT ASSETS
Cash 288 1,479
Inventories 28,132 28,132
Prepaid Expenses 558 9
_____________ ______________
Total Current Assets 28,978 29,620
PROPERTY AND EQUIPMENT (Notes 1 and 3)
Land 1,127 1,127
Furniture and Equipment 44,750 44,750
Building 483,200 483,200
Idle Equipment 121,728 121,728
_____________ ______________
650,805 650,805
Less: Accumulated Depreciation (75,321) (67,079)
_____________ ______________
575,484 583,726
_____________ ______________
OTHER ASSETS
Patents, Net of Amortization 15,456 16,236
Investment in Affiliated Company
(Note 5) - -
____________ ______________
619,918 629,582
____________ ______________
------------ --------------
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES
Accounts Payable 29,525 26,520
Notes Payable-Officer
(Notes 5 and 7) 10,741 10,574
Notes Payable-Other (Note 7) 2,291 1,792
Due to Affiliates (Note 5) 318,746 308,009
Accrued Executive Compensation 124,524 124,524
Deferred Rent 163 489
Accrued Expenses 10,207 12,313
___________ ______________
Total Current Liabilities 496,197 484,221
___________ ______________
___________ ______________
NON-CURRENT LIABILITIES
Tenant Security Deposit 3,245 3,245
___________ ______________
COMMITMENTS AND CONTINGENCIES
(Notes 6, 11 and 12) - -
___________ ______________
SHAREHOLDERS' EQUITY (Notes 5, 8 and 9)
Common Stock, No Par Value, 100,000,000
Shares Authorized as of April 30, 1995
and October 31, 1995; Issued 32,195,300
Shares at April 30, 1995 and October 31,
1995 2,088,001 2,088,001
Additional Paid in Capital 100 100
Accumulated Deficit since July 31, 1985 in
connection with Quasi-Reorganization
(Note 9) (1,967,625) (1,945,985)
____________ ____________
120,476 142,116
____________ ____________
619,918 629,582
____________ ____________
------------ ------------
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
STEVIA COMPANY, INC.
STATEMENT OF OPERATIONS
Unaudited
<CAPTION>
Three Months Ended Six Months Ended
1995 1994 1995 1994
__________ _________ __________ _________
<S> <C> <C> <C> <C>
REVENUES
Sales - - - -
COST OF SALES - -
__________ _________ __________ _________
Gross Profit (Loss) - - - -
OPERATING EXPENSES
Research and Development 676 899 1,352 1,798
General and Administrative 17,371 17,616 30,268 30,840
__________ _________ __________ ________
18,047 18,515 31,620 32,638
__________ _________ __________ ________
Loss From Operations (18,047) ( 18,515) ( 31,620) (32,638)
__________ _________ __________ _________
OTHER INCOME AND (EXPENSE)
Miscellaneous Income - - - 740
Rental Income 5,111 4,868 9,980 9,736
__________ __________ _________ _________
5,111 4,868 9,980 10,476
__________ __________ _________ _________
NET LOSS (12,936) (13,647) (21,640) (22,162)
__________ __________ _________ _________
---------- ---------- --------- ---------
NET LOSS PER COMMON SHARE
(Note 10) ( .001) (.001) ( .001) ( .001)
__________ _________ __________ _________
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 32,195,300 32,195,300 32,195,300 32,195,300
__________ __________ __________ __________
---------- ---------- ---------- ----------
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
STEVIA COMPANY, INC.
STATEMENT OF SHAREHOLDERS' EQUITY
SIX MONTHS ENDED OCTOBER 31, 1995
Unaudited
<CAPTION>
Total
Additional Share-
Common Stock Paid-in holders'
Shares Amount Capital (Deficit) Equity
__________ __________ _________ ___________ _________
<S> <C> <C> <C> <C> <C>
BALANCE
May 1, 1995 32,195,300 2,088,001 100 (1,945,985) 142,116
NET INCOME (LOSS) - - - ( 21,640) ( 21,640)
__________ __________ _________ ___________ _________
BALANCE,
October 31, 1995 32,195,300 2,088,001 100 (1,967,625) 120,476
__________ __________ _________ ___________ _________
<FN>
The accompanying notes are an integral part of the financial statements
</TABLE>
<PAGE>
<TABLE>
STEVIA COMPANY, INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
Unaudited
<CAPTION>
Six Months Ended October 31,
1995 1994
______________ _________
<S> <C> <C>
OPERATING ACTIVITIES:
Net Loss (21,640) ( 22,162)
Adjustments to Reconcile Net (Loss) to Net
Cash Used by Operating Activities:
Depreciation and Amortization 9,022 9,467
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Receivables - 266
(Increase) Decrease in Inventories
and Prepaid Expenses ( 549) ( 127)
Increase (Decrease) in Accounts Payable and
Accrued Expenses 573 ( 4,073)
Increase (Decrease) in Due to Affiliates
(Note 5) 10,737 12,847
_____________ _________
Net Cash Provided (Used) by Operating
Activities ( 1,857) ( 3,782)
_____________ _________
INVESTING ACTIVITIES:
Net Cash Provided (Used) by
Investing activities - -
____________ ____________
FINANCING ACTIVITIES:
Proceeds From (Repayments of) Notes (Note 7) 666 3,925
____________ ____________
Net Cash Provided (Used) by Financing
Activities 666 3,925
____________ ___________
Increase (Decrease) in Cash and
Cash Equivalents (1,191) 143
Cash and Cash Equivalents at
Beginning of Period 1,479 236
____________ ___________
Cash and Cash Equivalents at End of Period 288 379
____________ ___________
------------ -----------
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
<TABLE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
1. Summary of Significant Accounting Policies:
Inventories - Harvested crop inventories are stated at the
lower of cost (determined by actual specific production
cost) or market value (less estimated cost of disposal).
Components of inventories are as follows:
October 31, 1995 April 30, 1995
_____________ ______________
Seeds 21,170 21,170
Leaves 6,962 6,962
_____________ ______________
$ 28,132 $ 28,132
_____________ ______________
------------- --------------
Research and Development, and Patents - Research and
development expenditures, including depreciation of
laboratory equipment, are charged to operations as incurred.
The costs of obtaining patents, primarily legal fees, are
capitalized and amortized over seventeen years on the
straight-line method.
Property and Equipment - Property and equipment are stated
at cost. Depreciation and amortization are computed,
primarily on the straight-line and accelerated methods, over
the estimated useful lives of the respective assets.
Repairs and maintenance are charged to expenses as incurred;
renewals and betterments which significantly extend the
useful lives of existing property and equipment are
capitalized.
2. Company Organization and Description:
Stevia Company, Inc. was incorporated under the laws of the
State of Illinois on November 22, 1976.
The Company was organized primarily to engage in the
business of developing and manufacturing natural products,
including sweeteners, derived from the Stevia rebaudiana
plant.
3. Property and Equipment:
In 1986, the Company completed construction of a building
for a sweetener production facility in Pueblo, Colorado on a
parcel of land (25 acres) acquired by the Company. The net
price for construction of the building was $483,200. The
<PAGE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
3. (Continued)
Company also purchased certain equipment for its processing
facility. Completion of the processing facility was
terminated in 1987 due to lack of funds. See Footnote 13.
On September 1, 1993, the Company entered into a three-year
lease for its Pueblo, Colorado facility with an unaffiliated
third party. The tenant was granted two one-year options
and a first right of refusal to purchase the Pueblo,
Colorado facility in the event the Company sells or
otherwise disposes of the facility. The lease provides for
base rent of $19,473 for the first two years, $20,466 for
the third year, $22,394 for the first option year and
$23,264 for the second option year.
4. Idle Equipment:
During the year ended April 30, 1990, the Company
reclassified the building and equipment described in Note 3
as idle facilities. The carrying values of idle equipment
were written down to the restored and recoverable values.
(See Note 3).
5. Related Party Transactions:
The Company was indebted to affiliated companies as follows:
October 31, April 30,
1995 1995
_________ _________
F.K. Suzuki International, Inc. $ 70,412 $ 70,412
Biosynergy, Inc. $ 248,334 $ 237,597
_________ _________
Totals $ 318,746 $ 308,009
_________ _________
--------- ---------
The amount due to F.K. Suzuki International, Inc. is the net
license fees due under an irrevocable exclusive license
agreement with F.K. Suzuki International, Inc. described in
Note 11, less certain prepayments and discounts with regard
to such license agreement.
The Company shares common offices with Biosynergy, Inc.
Each company has incurred certain shared office expenses
which have been allocated to the other company. The Company
has not been able to reimburse Biosynergy, Inc. on a regular
basis which has resulted in a net payable of $248,334 at
October 31, 1995 as compared to a net payable of $237,597 at
April 30, 1995.
The Company and its affiliates are related through Common
Stock ownership as follows on October 31, 1995.
<PAGE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
5. (Continued)
S T O C K O F A F F I L I A T E S
___________________________________________________
<S> <C> <C> <C> <C>
F.K. Suzuki
Stevia Biosynergy International Medlab
Stock Owner Company Inc. Inc. Inc.
___________ ________ __________ _____________ ______
Stevia Company, Inc. - 13.8% - -
Biosynergy, Inc. .4% - - -
F.K. Suzuki
International, Inc. 55.8% 18.8% - 100.0%
Medlab, Inc. - - - -
Fred K. Suzuki, Officer/ - - 35.6% -
Director
Lauane C. Addis, Officer/ .1% .1% 32.7% -
Director
James F. Schembri, .2% 12.9% - -
Director
</TABLE>
On July 7, 1983, Biosynergy, Inc. (an affiliated company) successfully
completed a public offering. As part of this public offering the
Company exchanged 1,058,181 shares of its Common Stock for 2,000,000
shares of Biosynergy, Inc.'s Common Stock. The Common Stock of the
Company had no book value at the time of the exchange; thus no dollar
value was assigned to the transaction. The Company has sold 100,000
of these shares. Although Biosynergy, Inc.'s Common Stock can be
traded in the over-the-counter market, there is no established public
trading market for such Common Stock due to limited and sporadic
trades.
In June, 1993, Fred K. Suzuki, President of the Company, advanced
$7,587.75 to the Company for payment of the Company's share of the
costs, including legal fees, of settling a lawsuit. On October 10,
1994, Mr. Suzuki loaned $5,000 to the Company and on October 18, 1995
Mr. Suzuki loaned an additional $1,000 to the Company for payment of
real estate taxes on the Company's facility in Pueblo, Colorado. See
also Note 7.
6. Lease Commitments:
The Company shares offices in Elk Grove Village, Illinois with
Biosynergy, Inc. The master lease for these offices, which expires
January 31, 1996, is in the name of Biosynergy, Inc. The total annual
base rent for these premises is $62,574.36 for the lease year ending
January 31, 1996. The Company's portion is $9,386.15. It is
anticipated that the master lease will be extended and the Company
will continue to share such offices with Biosynergy, Inc.
<PAGE>
7. Notes Payable:
Notes Payable - Officer consists of the following:
. an unsecured note dated July 1, 1993 in the original
amount of $7,588 payable to Fred K. Suzuki, President.
The note is due on demand and bears interest at 10% per
annum. The principal balance due at October 31, 1995 is
$7,588.
. an unsecured note dated October 10, 1994 in the
original amount of $5,000 payable to Fred K. Suzuki,
President. This note provides for payment in 12
monthly installments of principal and interest of
$443.08 commencing December, 1994 and bears interest
at 11.5% per annum. The balance due on this note at
October 31, 1995 is $2,153.
. an unsecured note dated October 18, 1995 in the
original amount of $1,000 payable to Fred K. Suzuki,
President. This note provides for payment in six
monthly installments of principal and interest of
$172.30 commencing November, 1995 and bears interest at
11.5% per annum. The balance on this note at October
31, 1995 is $1,000.
Notes Payable - Other consists of the following:
. an unsecured note dated October 10, 1994 in the
original principal amount of $3,000 payable to Laurence
C. Mead, an officer of Biosynergy, Inc., an affiliate.
The note provides for payment in 12 monthly
installments of principal and interest of $265.85
commencing December, 1994 and bears interest at 11.5%
per annum. The balance on this note at October 31, 1995
is $1,292.
. an unsecured note dated October 18, 1995 in the
original amount of $1,000 payable to Laurence C. Mead,
an officer of Biosynergy, Inc., an affiliate. The note
provides for payment in six monthly installments of
principal and interest of $172.30 commencing November,
1995 and bears interest at 11.5% per annum. The
balance on this note at October 31, 1995 is $1,000.
8. Shareholders' Equity:
The authorized capital stock of Stevia Company is one
hundred million (100,000,000) shares of no par value Common
Stock and one hundred thousand (100,000) shares of $100 par
value Preferred Stock. The preferences, qualifications,
limitations, restrictions and special or relative rights in
respect to the Preferred Stock are to be determined by the
Board of Directors at the time of their issuance, subject to
limitations set forth in the amended articles of
incorporation. As of April 30, 1995 and October 31, 1995, no
shares of Preferred Stock were outstanding.
<PAGE>
As of October 31, 1995, under a special incentive plan, stock
options and stock appreciation rights for 230,000 shares of
Common Stock were granted to 4 advisors, directors,
officers, consultants, and/or employees of the Company. The
exercise price for these shares is $.0625 per share. The
Company has reserved 400,000 shares of its Common Stock for
this plan. As permitted in the plan, the directors of the
Company extended the termination date (last date to grant
options) of the plan from February 23, 1987 to December 31,
1989. No further action has been taken to extend the term
of the plan.
On November 1, 1989, the Company's Secretary, Lauane C.
Addis, and President, Fred K. Suzuki, agreed to forego their
salaries in exchange for an option to purchase 83,333 shares
of the Company's no par value common stock for each month
they forfeited their salary at an option price of $.025 per
share. Accrual of these options was terminated effective
April 30, 1991. These options may be exercised until one
year after the respective optionee receives all deferred
compensation due at October 31, 1989, the optionee's salary
is reinstated, or the optionee is no longer employed by the
Company, whichever is later. As of October 31, 1995, none of
these options have been exercised and a total of 2,999,988
shares are subject to the options. These options provide
for adjustments to prevent dilution in the event of capital
reorganizations.
Mr. Suzuki was granted an option to convert all or a portion
of his deferred compensation into shares of the Company's no
par value common stock at a conversion rate of $.025 of
deferred compensation per share. Conversion can only occur
in the event the Company has sufficient liquid assets to pay
all employee taxes due upon issuance of the shares. A total
of 1,448,917 shares have been reserved for Mr. Suzuki's
option. No portion of the option has been exercised as of
October 31, 1995. The option provides for adjustments to
prevent dilution in the event of capital reorganizations.
9. Quasi-Reorganization:
As of July 31, 1985, the Company effected a Quasi-
Reorganization which resulted in the elimination of
$1,201,810 of accumulated deficit at the date of
reorganization and a decrease of $1,201,810 in the amount of
common stock outstanding.
10. Income (Loss) per share:
Net income (loss) per share is computed based on the
weighted average number of shares of Common Stock
outstanding during the period, after giving effect to stock
splits. The effect of exercise of stock options has not
been presented as exercise would be anti-dilutive.
<PAGE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
11. Agreements, Licenses and Options:
The Company entered into an irrevocable exclusive license
agreement with F.K. Suzuki International, Inc., parent of
the Company, in 1983. For an annual fee of $75,000, payable
beginning in January of 1987, the Company received certain
patent and other rights owned by F.K. Suzuki International,
Inc. Effective May 1, 1988, the license agreement was
amended to provide for a royalty payment of 3% of revenues
derived from the licensed technology in lieu of a set fee.
There was no fee incurred during the six month period
ending October 31, 1995.
12. Income Taxes:
There is no provision for income taxes in the accompanying
financial statements due to the Company's net operating loss
position. At April 30, 1995, net operating loss
carryforwards are available and expire, if not used, as
follows:
1995 119,376
1996 51,092
1997 292,440
1998 224,075
1999 167,356
2000 302,320
2001 423,843
2002 389,355
2003 328,154
2004 189,389
2005 133,704
2006 74,264
2007 73,470
2008 49,568
2009 119,410
__________
$2,937,678
__________
----------
The Company has adopted Statement of Financial Accounting
Standards (SFAS) No. 109, "Accounting for Income Taxes" for
fiscal year ending April 30, 1994 as required by SFAS No.
109.
The effect, if any, of adopting Statement No. 109 on pretax
income from continuing operations is not material. The
Company has elected not to retroactively adopt the
provisions allowed in SFAS No. 109; however, all provisions
of the document have been applied since the beginning of
fiscal year 1994.
<PAGE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
13. Management's Plans:
In view of the fact that the Company has incurred losses of
$55,831, $118,910 and $51,569 for the years ended April 30,
1995, 1994, and 1993, respectively, management of the
Company recognizes the liability of the Company is
contingent upon the Company obtaining financing so it can
commence operations or acquire alternative operations.
Before the Company can realize material operating revenues
from its proposed operations, the Company must equip and
commence operations of a processing facility. The cost of
equipping a processing facility is significant, and
therefore the Company's main objective has been to obtain
such financing. Management of the Company has also pursued
alternatives, such as licensing its technology, selling
Stevia Company or its assets, or combining Stevia Company
with another enterprise. No agreements have been entered
into for consummating any such transaction, and there can be no
assurance such a transaction will be forthcoming.
14. Unaudited Financial Statements:
The Company's Financial Statements for the fiscal year
ending April 30, 1995 were not audited pursuant to Rule
210.3-11 of Regulation SX promulgated under the Securities
Exchange Act of 1934, which provides that an inactive entity
need not submit audited financial statements with reports
filed pursuant to the Securities Exchange Act of 1934. An
inactive entity is defined as an entity not having gross
receipts from all sources and expenditures for all purposes
in excess of $100,000 each, which has not purchased or sold
any of its own stock, granted options therefore, or levied
any assessments against outstanding stock during the
applicable fiscal year, which has had no material change in
business, including any material acquisitions or
dispositions of assets, and which is not required to publish
audited financial statements by any exchange or governmental
authority having jurisdiction. In the opinion of
Management, the Company met the criteria of an inactive
entity for the fiscal year ending April 30, 1995.
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
SALES/REVENUES
--------------
The Company had no sales during the quarter ending October 31, 1995
("2nd Quarter") or the six month period ending October 31, 1995. The
Company did not produce rebaudioside A or other products on a commercial
basis during these periods, and was not expected to have sales. Subject to
commencement of commercial operations, Management continues to believe that
a market for its Stevia products could be developed.
During the quarter ending October 31, 1995, the Company realized
rental income of $5,111 from leasing its Pueblo, Colorado facility under a
three-year lease to an unaffiliated third party. This lease grants the
tenant first right of refusal upon the sale of other disposition of the
Pueblo facility and provides for two one-year options. The lease provides
for rent of $19,743 for the first two years, $20,466 for the third year,
$22,394 for the first option year and $23,264 for the second option year.
COSTS AND EXPENSES
------------------
The overall operating expenses of the Company decreased by $245 or
1.39% during the 2nd Quarter as compared to the same quarter ending in 1994
and decreased by $573 or 1.85% during the six month period ended October
31, 1995 as compared to the six month period ended October 31, 1994. Most
of the current expenses are overhead and general and administration items
required to maintain the Company. It is not anticipated that the expenses
of the Company will materially change until the Company receives financing
or commences alternative operations.
NET LOSS
--------
The Company realized a net loss of $12,936 in the 2nd Quarter as
compared to a net loss of $13,647 in the comparative quarter in 1994 and
realized a net loss of $21,640 for the six month period ending October 31,
1995 as compared to a net loss of $22,162 during the same period in 1994.
The Company's continuing losses are due to the lack of operating revenues,
which will continue until such time as the Company produces its sweeteners
and other products for sale or can obtain alternative revenues. See
"LIQUIDITY AND CAPITAL RESOURCES" below.
As of April 30, 1995, the Company has incurred net operating losses
aggregating $2,937,678. There is no provision for income taxes in the
Financial Statements due to the Company's net operating loss position.
Furthermore, the Tax Reform Act of 1986 will not materially alter the
Company's net operating loss carryforward position, and the net operating
loss carryforwards will be available and expire, if not used, as set forth
in Footnote 12 to the Financial Statements for the 1st Quarter. See
"FINANCIAL STATEMENTS."
<PAGE>
ASSET LIABILITY RATIO
---------------------
The ratio of current assets to current liabilities (.058 to 1) is not
acceptable taking into consideration the Company's cash flow position. The
Company's current assets consist primarily of inventory. It is unknown how
much inventory the Company can sell, if any. The Company is not producing
inventory and there can be no assurance of long-term revenues, if any. The
inventory consists primarily of Stevia leaves, which have been grown and
harvested by the Company for use in its initial processing operations or
for sale, and seeds which may be used for growing more leaves. See
"LIQUIDITY AND CAPITAL RESOURCES" below.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
The Company's net working capital decreased by $12,618 during the six
month period ending October 31, 1995. The Company's negative net working
capital is due to the continuing losses of the Company. The Company had
$288 in cash and no receivables at October 31, 1995. This amount is
insufficient to provide working capital for the ensuing quarter. The
Company does not have, nor does it anticipate obtaining in the near
future, a working line of credit.
The Company's ability to generate cash adequate to meet its future
needs depends upon its ability to obtain financing for the purpose of
beginning revenue producing operations. In the event the Company is unable
to obtain financing, management will seek out alternatives, such as
licensing the Company's technology, selling the Company or its assets,
leasing the Company's Pueblo facility, or combining the Company with other
businesses.
The Company and an affiliate, Biosynergy, Inc. ("BSI"), share office
space, and as a result, share certain expenses. Both companies account to
each other on an on-going basis for these shared expenses. The resulting
payable as of April 30, 1995 was $237,597 and $248,334 as of October 31,
1995. The amounts due to BSI reflect on-going transactions in the ordinary
course of business and do not represent any extraordinary transactions.
Expenses include rent, salary for common employees and related benefits,
payroll overhead, utilities, and certain legal expenses. Management of the
Company believes it is more economical to share these expenses with BSI,
and will likely continue to do so in the near future. However, there is no
assurance BSI will be in a position or agree to continue to extend credit
to the Company for these shared expenses.
On September 1, 1993, the Company entered into a three-year lease for
its Pueblo, Colorado facility with an unaffiliated third party. The tenant
was granted two one-year options and a first right of refusal to purchase
the Pueblo, Colorado facility in the event the Company sells or otherwise
disposes of the facility. The lease provides for base rent of $19,473 for
the first two years, $20,466 for the third year, $22,394 for the first
option year and $23,264 for the second option year. See "SALES/REVENUES"
above. The proceeds from leasing such facility are used to offset expenses
of the facility and to cover a portion of the general and administrative
expenses of the Company. However, the cash flow from leasing the facility
in Pueblo is not sufficient to cover all of the expenses of the Company for
the ensuing year, and furthermore, there can be no assurance the Company
will be able to continue leasing its facility.
<PAGE>
The Company owns 1,900,000 shares of BSI common stock. Such common
stock can be traded in the over-the-counter market and stock prices are
recorded on "pink sheets." The bid price at October 31, 1995 was estimated
to be $.01 per share. Although the Company is free to currently sell these
shares of Biosynergy, Inc. common stock, it does not have plans to do so in
the near future. See Footnote 5 of the "FINANCIAL STATEMENTS."
<PAGE>
PART II - OTHER INFORMATION
---------------------------
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
--------------------------------
A. The following Exhibits are included herein pursuant to Section 601:
(3)
(a) Articles of Incorporation (i)
(b) By-Laws (ii)
(10) Material Contracts.
(a) Lease Agreement, dated September 1, 1993, between the
Company and Pacific Aero Manufacturing, Inc. (iii)
(b) Promissory Note dated July 1, 1993 payable to Fred K.
Suzuki in the amount of $7,587.75. (iii)
(c) Installment Promissory Note dated October 10, 1994,
payable to Fred K. Suzuki in the amount of $5,000. (iv)
(d) Installment Promissory Note dated October 10, 1994,
payable to Laurence C. Mead in the amount of $3,000. (iv)
(e) Installment Promissory Note dated October 18, 1995
payable to Fred K. Suzuki in the amount of $1,000
attached hereto as Exhibit 10(e).
(f) Installment Promissory Note dated October 18, 1995
payable to Laurence C. Mead in the amount of $1,000
attached hereto as Exhibit 10(f).
(15) Letter dated December 12, 1995, regarding interim financial
information. (v)
(27) Financial Data Schedule attached hereto as Exhibit 27.
B. No Current Reports on Form 8K were filed during the period covered
by this Report.
[FN]
_________________________
(i) Incorporated by reference to a Registration Statement filed
on Form S-18 with the Securities and Exchange Commission,
1933 Act, Registration Number 2-87364C, under the Securities
Act of 1933, as amended, and incorporated by reference, to
the extent of Articles of Amendment, to Form 10K for Fiscal
Year Ending April 30, 1986 filed with the Securities and
Exchange Commission.
(ii) Incorporated by reference to Form 10K for Fiscal Year Ending
April 30, 1987 filed with the Securities and Exchange
Commission.
<PAGE>
(iii) Incorporated by reference to Form 10K for Fiscal Year
ending April 30, 1994 filed with the Securities and Exchange
Commission.
(iv) Incorporated by reference to Form 10K for Fiscal Year Ending
April 30, 1995 filed with the Securities and Exchange
Commission.
(v) This Exhibit is included in this report as a part of the
Financial Statements, and is incorporated by reference
herein.
<PAGE>
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.
STEVIA COMPANY, INC.
Date December 12, 1995 /s/ FRED K. SUZUKI /s/
________________________________
Fred K. Suzuki, President,
Chairman of the Board,
Chief Accounting Officer and
Treasurer
Date December 12, 1995 /s/ LAUANE C. ADDIS /s/
________________________________
Lauane C. Addis, Secretary,
Corporate Counsel and Director
<PAGE>
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.
STEVIA COMPANY, INC.
Date December 12, 1995
________________________________
Fred K. Suzuki, President,
Chairman of the Board,
Chief Accounting Officer and
Treasurer
Date December 12, 1995
________________________________
Lauane C. Addis, Secretary,
Corporate Counsel and Director
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q
Annual Report Pursuant to Section 13 or 15(d)
of
THE SECURITIES AND EXCHANGE ACT OF 1934
For the period ending October 31, 1995
Commission File Number: 0-11718
STEVIA COMPANY, INC.
___________________________________________________________________________
(Exact name of registrant as specified in charter)
1940 East Devon Avenue
Elk Grove Village, Illinois 60007
(708) 593-0226
___________________________________________________________________________
(Address and telephone number of registrant's principal executive
office on a principal place of business)
EXHIBITS
--------
EXHIBIT INDEX
-------------
Page Numbering
Pursuant to
Sequential
Exhibit Numbering
Number Exhibit System
___________________________________________________________________________
10 (e) Installment Promissory Note dated
October 18, 1995 payable to Fred K.
Suzuki. E-1
10 (f) Installment Promissory Note dated
October 18, 1995 payable to
Laurence C. Mead. E-2
27 Financial Data Schedule E-3
<PAGE>
Installment Promissory Note
___________________________
1. Promise to Pay. In consideration of the receipt of $1,000.00, the
undersigned promises to pay to the order of Fred K. Suzuki the sum of
$1,000.00, with interest thereon at the rate of 11.5% per annum, in
four monthly installments of principal and interest of $172.30 and two
monthly installments of principal and interest of $172.31 commencing
November 5, 1995. This Note is payable at 710 S. Kennicott Avenue,
Arlington Heights, IL 60005.
2. Governing Law. This instrument shall be governed by the laws of the
State of Illinois, and specifically the Uniform Commerical Code of the
State of Illinois, as in effect from time to time.
DATE: October 18, 1995
STEVIA COMPANY, INC.
1940 East Devon Avenue
Elk Grove Village, IL 60007
/s/ Fred K. Suzuki /s/
________________________________
Fred K. Suzuki, President
/s/ Lauane C. Addis /s/
________________________________
Lauane C. Addis, Secretary
E-1
<PAGE>
Installment Promissory Note
---------------------------
1. Promise to Pay. In consideration of the receipt of $1,000.00, the
undersigned promises to pay to the order of Laurence C. Mead the sum
of $1,000.00, with interest thereon at the rate of 11.5% per annum, in
four monthly installments of principal and interest of $172.30 and two
monthly installments of principal and interest of $172.31 commencing
November 1, 1995. This Note is payable at 7820 Northway Drive,
Hanover Park, IL 60103.
2. Governing Law. This instrument shall be governed by the laws of the
State of Illinois, and specifically the Uniform Commercial Code of the
State of Illinois, as in effect from time to time.
DATE: October 18, 1995
STEVIA COMPANY, INC.
1940 East Devon Avenue
Elk Grove Village, IL 60007
/s/ Fred K. Suzuki /s/
_________________________________
Fred K. Suzuki, President
/s/ Lauane C. Addis /s/
_________________________________
Lauane C. Addis, Secretary
E-2
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS OF THE REGISTRANT FOR THE SIX MONTH PERIOD ENDING OCTOBER 31,
1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> APR-30-1996 APR-30-1996
<PERIOD-END> OCT-31-1995 OCT-31-1995
<CASH> 288 288
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 28,132 28,132
<CURRENT-ASSETS> 28,978 28,978
<PP&E> 650,805 650,850
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0 0
0 0
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<INCOME-PRETAX> (12,936) (21,640)
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<NET-INCOME> (12,936) (21,640)
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