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 July 31, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For 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
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(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: (847) 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 16 pages contained in the sequential numbering system.
<PAGE>
STEVIA COMPANY, INC.
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 July 31, 1998
and the related statements of operations, shareholders' equity and cash flow
for the three month periods ended July 31, 1998 and 1997 were not audited;
however, the financial statements for the three months periods ending July 31,
1998 and 1997 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, 1998 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, 1998 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.
September 10, 1998
<PAGE>
<TABLE>
STEVIA COMPANY, INC.
BALANCE SHEET
ASSETS
<CAPTION>
July 31, 1998 April 30, 1998
Unaudited Unaudited
-------------- --------------
<S> <C> <C>
CURRENT ASSETS
Cash 906 1,873
Accounts
Receivables-other 0 184
Inventories 6,962 6,962
Prepaid
Expenses 1,958 5
Total Current
Assets 9,826 9,024
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 (118,077) (114,242)
532,728 536,563
OTHER ASSETS
Patents, Net of
Amortization 11,164 11,554
Investment in
Affiliated Company
(Note 4) - -
---------- ---------
553,718 557,141
------------------ ----------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES
Accounts
Payable 35,881 34,292
Due to Affiliates
(Note 4) 369,542 368,747
Accrued Executive
Compensation 124,524 124,524
Deferred
Rent 316 315
Accrued
Expenses 6,971 3,983
----------- -----------
Total Current
Liabilities 537,234 531,861
----------------- -----------------
----------------- -----------------
NON-CURRENT LIABILITIES
Tenant Security
Deposit 3,245 3,245
----------------- ----------------
COMMITMENTS AND
CONTINGENCIES
(Notes 5 and 8) - -
SHAREHOLDERS' EQUITY
(Notes 4 and 6)
Common Stock, No Par
Value, 100,000,000
Shares Authorized as
of April 30, 1998
and July 31, 1998;
Issued 32,195,300
Shares at April 30,
1998 and July 31,
1998 2,088,001 2,088,001
Additional Paid in
Capital 100 100
Accumulated
Deficit (2,074,862) (2,066,066)
13,239 22,035
553,718 557,141
------------ -------------
- ----------------
<FN>
The accompanying notes are an integral part of the financial statements.
<PAGE>
STEVIA COMPANY, INC.
STATEMENT OF OPERATIONS
Unaudited
Three Months Ended July 31,
1998 1997
-----------------------------
<S> <C> <C>
REVENUES
Sales - -
COST OF SALES - -
Gross Profit
(Loss) - -
OPERATING EXPENSES
Marketing - -
Research and
Development 390 390
General and Administrative 13,178 15,307
Interest Expense 13,568 15,740
Loss From Operations (13,568) (15,740)
OTHER INCOME AND (EXPENSE)
Rental Income 6,449 6,944
--------- ----------
6,944 6,449
NET LOSS (7,119) ( 8,796)
---------------- ----------------
---------------- ----------------
NET LOSS PER COMMON SHARE
(Note 7) (.001) (.001)
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 32,195,300 32,195,300
------------------ -----------------
------------------ -----------------
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
STEVIA COMPANY, INC.
<PAGE>
<TABLE>
STATEMENT OF SHAREHOLDERS' EQUITY
THREE MONTHS ENDED JULY 31, 1998
Unaudited
<CAPTION>
Additional Share-
Common Stock Paid-in holders'
Shares Amount Capital (Deficit) Equity
---------------------- ---------- --------- ------
<S> <C> <C> <C> <C> <C>
BALANCE
May 1, 1998 32,195,300 2,008,001 100 ( 2,066,066) 22,035
NET INCOME (LOSS) - - - ( 8,796) ( 8,796)
BALANCE,
July 31, 1998 32,195,300 2,088,001 100 ( 2,074,862) 13,239
---------- ---------- ---- ------------ -------
---------- ---------- ---- ------------ -------
<FN>
The accompanying notes are an integral part of the financial statements
</TABLE>
<PAGE>
<TABLE>
STEVIA COMPANY, INC.
STATEMENT OF CASH FLOW
Unaudited
<CAPTION>
Three Months Ended July 31,
1998 1997
---------- --------
<S> <C> <C>
OPERATING ACTIVITIES:
Net Loss (8,796) ( 7,119)
Adjustments to Reconcile
Net (Loss) to Net
Cash Used by Operating
Activities:
Depreciation and Amortization 4,225 4,225
Changes in Operating Assets
and Liabilities:
(Increase) Decrease in
Receivables 184 620
(Increase) Decrease in Inventories
and Prepaid Expenses ( 1,953) ( 417)
Increase (Decrease) in Accounts
Payable and Accrued Expenses 4,578 ( 7,767)
Increase (Decrease) in Due to
Affiliates (Note 4) 795 9,705
Net Cash Provided (Used) by
Operating Activities ( 967) ( 753)
INVESTING ACTIVITIES:
Net Cash Provided (Used) by
Investing Activities - -
FINANCING ACTIVITIES:
Proceeds From (Repayments
of) Notes - (5,000)
Net Cash Provided (Used) by Financing
Activities - (5,000)
Increase (Decrease) in Cash and
Cash Equivalents (967) (5,753)
Cash and Cash Equivalents at
Beginning of Period 1,873 6,574
Cash and Cash Equivalents at
End of Period 906 821
---------- ---------
<FN>
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
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 lot production cost) or market. Seed inventory
is valued based upon the year of original harvest and their expected yield of
seedlings capability. The Company wrote-down and disposed of its seed
inventory at April 30, 1998 since it was substantially non-viable.
Components of inventories are as follows:
April 30, July 31,
1998 1998
---------- ----------
Seeds $ - $ -
Leaves 6,962 6,962
$ 6,962 $ 6.962
----------- ----------
Research and Development, and Patents - Research and development expenditures,
including depreciation of laboratory equipment, are charged to operations as
capitalized and amortized over seventeen years or life of the patent on the
straight-line method.
Buildings, Property and Equipment - Buildings, 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.
Deferred Computer Software Charges - Charges for externally purchased computer
software are shown as deferred charges and are amortized over a 60 month
period from the date put into use.
Statements of Cash Flows - In accordance with Statement of Financial
Accounting Standards No. 95, issued in November, 1987, Statements of Cash
Flows are presented in place of Statement of Changes in Financial Position.
2. Company Organization and Description:
Stevia Company, Inc. was incorporated under the laws of the State of Illinois
on November 22, 1976.
The Company's was organized for the primary purpose of developing and
manufacturing natural products, including sweeteners, derived from the Stevia
rebaudiana plant. However, the Company has been dormant for several years.
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 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 12.
<PAGE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
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. The lease has been extended to December
1, 1998 pending sale of the Pueblo, Colorado facility.
The Company has entered into a commercial contract to buy and sell real estate
dated June 1, 1998 for the sale of the Pueblo, Colorado facility to the
current lessee for a sales price of $475,000. The contract is contingent upon
the buyer obtaining financing on or before October 31, 1998. It is
anticipated that this transaction will close, if at all, on or before December
1, 1998.
4. Related Party Transactions:
The Company was indebted to affiliated companies as follows:
July 31, April 30,
1998 1998
------------ --------------
F.K. Suzuki International, Inc. $ 64,045 $ 70,412
Biosynergy, Inc. $ 305,497 $ 208,335
Totals $ 369,542 $ 368,747
<PAGE>
As of July 31, 1998 and April 30, 1998, the Company was indebted to F.K.
Suzuki International, Inc. for the net amounts due as a result of an
irrevocable exclusive license agreement with F.K. Suzuki International, Inc.
described in Note 8.
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 payables at July 31, 1998 and April
30, 1998.
The Company and its affiliates are related through Common Stock ownership as
follows on July 31, 1998:
<TABLE>
S T O C K O F A F F I L I A T E S
<CAPTION>
F.K. Suzuki
Stevia Biosynergy International Medlab
Stock Owner Company Inc. Inc. Inc.
- ------------- --------- ------------- -------------- --------
<S> <C> <C> <C> <C>
Stevia Company,
Inc. - 13.8% - -
Biosynergy, Inc. .4% - - -
F.K. Suzuki
International,
Inc. 55.0% 18.8% - 100.0%
Medlab, Inc. - - - -
Fred K. Suzuki,
Officer/ - - 35.6% -
Director
Lauane C. Addis,
Officer/Director .1% .1% 32.7% -
James F. Schembri,
Director .2% 12.9% - -
</TABLE>
<PAGE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
On July 7, 1983, the Company exchanged 1,058,181 shares of its Common Stock
for 2,000,000 shares of Biosynergy, Inc.'s (an affiliate) 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 currently
owns 1,900,000 shares of Biosynergy, Inc. Common Stock. Although Biosynergy,
Inc.'s Common Stock can be traded in the over-the-counter market, there is no
established public trading market for the shares due to limited and sporadic
trades.
5. Lease Commitments:
The Company shares offices in Elk Grove Village, Illinois with Biosynergy,
Inc. The master lease for these offices expires January 31, 2001, and is in
the name of Biosynergy, Inc. The total annual base rent for these premises is
$60,500.00 for year 1, $68,199.96 for years 2 and 3, and $69,300.00 for years
4 and 5. The Company's portion is $9,075.00 for year 1, $10,230.00 for years
2 and 3, and $10,395.00 for years 4 and 5.
6. Common Stock:
Common Stock has been issued as compensation for services rendered by certain
individuals. These transactions were recorded at prices estimated to
approximate the fair value of the stock taking into account restrictions which
attached to certain shares at the time of issuance.
The authorized capital stock of the 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
Company's Articles of Incorporation, as amended. As of July 31, 1998, no
shares of Preferred Stock were outstanding.
<PAGE>
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. 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 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. The option provides for adjustments to
prevent dilution in the event of capital reorganizations.
7. Loss per share:
Net loss per common shares is computed based on the weighted average number of
shares outstanding during the period.
<PAGE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
8. 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, payment of which began 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. No fees accrued for the quarter ended July 31, 1998.
9. 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,
1998, net operating loss carry forwards are available and expire, if not used,
as follows:
1997 292,440
1998 224,075
1999 167,356
2000 302,320
2001 423,843
2002 389,355
2003 328,016
2004 189,389
2005 133,704
2006 74,264
2007 73,470
2008 49,568
2009 119,410
2010 55,831
2011 33,519
2012 37,407
2013 49,155
-----------
$3,062,360
The Company has adopted the Statement of Financial Accounting Standards (SFAS)
No. 109, "Accounting for Income Taxes" as required by SFAS No. 109. Due to
the historical and continued net operating loss of the Company, Statement 109
has no material effect, if any, on the Company's Financial Statements. 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.
10. Management's Plans:
In view of the fact that the Company has incurred losses of $49,155, $37,407,
and $33,519 for the years ended April 30, 1998, 1997 and 1996, respectively,
and the Company has been unable to obtain financing to commence its proposed
operations, management of the Company believes it is in the best interest of
the Company to sell its Pueblo, Colorado facility and pay off its liabilities.
In this regard, the Company has entered into an agreement to sell its Pueblo,
Colorado facility for $475,000 to the current lessee of the facility. See
footnote 3. No other plans have been adopted regarding the future of the
Company.
<PAGE>
STEVIA COMPANY, INC.
NOTES TO FINANCIAL STATEMENTS
11. Unaudited Financial Statements:
Company's Financial Statements for the fiscal years ending April 30, 1998,
1997 and 1996 have not been 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, 1998.
12.Forward-Looking Statements.
This report may contain statements which, to the extent they are not
recitations of historical fact, constitute "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 (the
"Reform Act"). Such forward-looking statements involve risks and
uncertainties. Actual results may differ materially from such forward-looking
statements for reasons including, but not limited to, changes to and
developments in the legislative and regulatory environments effecting the
Company's business, the impact of competitive products and services, changes
in the medical and laboratory industries caused by various factors, as well as
other factors as set forth in this report. Thus, such forward-looking
statements should not be relied upon to indicate the actual results which
might be obtained by the Company. No representation or warranty of any kind
is given with respect to the accuracy of such forward-looking information.
The forward-looking information has been prepared by the management of the
Company and has not been reviewed or compiled by independent public
accountants.
<PAGE>
STEVIA COMPANY, INC.
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 July 31, 1998 ("1st
Quarter"). The Company did not produce rebaudioside A or other products on a
commercial basis during the 1st Quarter, and was not expected to have sales.
During the 1st Quarter, the Company realized rental income of $6,944 from
leasing its facility in Pueblo, Colorado to an unaffiliated third party. On
September 1, 1993, the Company entered into a three-year lease for its Pueblo
facility with an unaffiliated party. The lease provides for two one-year
options. The second of such options was exercised by the tenant. The lease
provides for rent of $23,264 for the second option year. The Company has
entered into an agreement to sell the Pueblo, Colorado facility to the current
lessee, and therefore does not expect any rental revenues after the closing of
such transaction scheduled for December 1, 1998. See "Liquidity and Capital
Resources".
COSTS AND EXPENSES
The overall operating expenses of the Company increased by $1,972 during the
1st Quarter as compared to the same quarter ending in 1996. Most of the
current expenses are overhead and general and administration items required to
maintain the Company. The increase was a result of legal fees related to
regulatory compliance and the contract for sale of the Pueblo, Colorado
facility. 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 $8,796 in the 1st Quarter as compared to a
net loss of $7,119 in the comparative quarter in 1997. The Company's
continuing losses are due to the lack of operating revenues, which will
continue until such time as the Company commences commercial operations. See
"LIQUIDITY AND CAPITAL RESOURCES" below.
As of April 30, 1998, the Company has carryover net operating losses
aggregating $3,062,360. 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 9 to the Financial Statements for the 1st Quarter. See "FINANCIAL
STATEMENTS."
ASSETS
The assets of the Company have not materially changed. Management of the
Company intends to sell the Pueblo, Colorado facility to satisfy the
liabilities of the Company. See also "LIQUIDITY AND CAPITAL RESOURCES" below.
<PAGE>
STEVIA COMPANY, INC.
LIABILITIES
With the exception of an increase in the amount of due to affiliated
companies, there has been substantially no material change in the liabilities
of the Company during the 1st Quarter.
The amounts due to affiliates at July 31, 1998 include $64,045 payable to F.K.
Suzuki International, Inc. ("FKSI") and $305,497 payable to Biosynergy, Inc.
("Biosynergy"). The amount due to FKSI represents amounts payable under an
irrevocable exclusive licensing agreement with FKSI for the license of certain
technology, including the rebaudioside A patent and Stevia leaf technology.
The Company was originally obligated to pay $75,000 per year to FKSI in
exchange for this license. Effective May 1, 1988, this agreement was amended
to provide that the Company will pay royalties in the amount of 3% of revenues
derived from the licensed technology in lieu of the fee of $75,000 per
calendar year. See "Footnote 8 to the Financial Statements." The Company and
Biosynergy 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 July 31, 1998 was $305,497, as compared
to a payable of $398,335 at April 30, 1998. The amounts due to Biosynergy
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 has been more
economical to share these expenses with Biosynergy, and will continue to do so
in the foreseeable future.
ASSETS/LIABILITY RATIO
The ratio of current assets to current liabilities (.02 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 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 can be used for growing more leaves. See "LIQUIDITY AND CAPITAL
RESOURCES" below.
LIQUIDITY AND CAPITAL RESOURCES
The Company's net working capital decreased by $4,571 during the 1st Quarter.
The Company's negative net working capital is due to the continuing losses of
the Company. The Company had $906 in cash at July 31, 1998. The Company does
not have, nor does it anticipate obtaining in the near future, a working line
of credit.
The Company's continuing inability to obtain financing or alternative
operations has made it practically impossible to continue with the Company's
proposed business plan. As a result, the Company intends to sell its Pueblo,
Colorado facility to satisfy its outstanding debt.
The Company has been leasing its Pueblo, Colorado facility to an unaffiliated
third party for almost five years. The lease provided 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. The lease has been
extended to December 1, 1998 pending the sale of the Pueblo, Colorado
facility. The proceeds from leasing such facility have been used primarily to
offset expenses of the Company. However, the cash flow from leasing the
facility in Pueblo does not cover all of the expenses of the Company, and
furthermore, there is no assurance the Company will be able to continue
leasing its facility.
<PAGE>
STEVIA COMPANY, INC.
The Company has entered into a contract to sell its Pueblo, Colorado facility
to the current lessee for a sales price of $475,000. The Company's book value
of the facility, including the land, is $484,327. The contract is subject to
the lessee obtaining financing on or before October 31, 1998. The closing of
the sale is expected to take place on or before December 1, 1998.
Management believes that the proceeds from the sale of the Pueblo, Colorado
facility and the other assets of the Company will be sufficient to satisfy 90%
or more of the Company's liabilities. The Pueblo, Colorado facility was
appraised at $600,000, which included land value of $190,000. However, the
City of Pueblo is currently selling real estate in the area for $1 per acre,
thus reducing the selling price of the real estate substantially. No other
independent analysis has been made of the transaction.
In addition to the other assets of the Company as otherwise discussed herein,
the Company also owns 1,900,000 shares of the common stock of Biosynergy.
Biosynergy's common stock is traded over-the-counter and the stock prices are
reported on the "pink sheets." The bid price at July 31, 1998 is estimated to
be less than $.01 per share. Although the Company is free to sell
Biosynergy's common stock subject only to quantity restrictions under Rule
144, there is no public market for such commons stock.
<PAGE>
STEVIA COMPANY, INC.
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) Commercial Contract to Buy and Sell Real Estate dated June 1,
1998, between the Company and Pacific Aero Manufacturing, Inc.(iv)
(c) Letter dated August 17, 1998, amending the Commercial Contract
to Buy and Sell Real Estate dated June 1, 1998. P.E-1.
(11) Statement regarding computation of per share earnings -none.
(15) Letter dated September 10, 1998, regarding interim financial
information. (v)
(18) Letter regarding change in accounting principals - none.
(19) Reports furnished to security holders - none.
(22) Published report regarding matters submitted to vote of security
holders - none.
(23) Consents of experts and counsel - none.
(24) Power of Attorney - none.
(27) Financial Data Schedule. P. E-3
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.
(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,
1998 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>
STEVIA COMPANY, 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.
STEVIA COMPANY, INC.
Date September 10, 1998 /s/ FRED K. SUZUKI /s/
--------------------------
Fred K. Suzuki
President, Chairman of the Board,
Chief Accounting Officer and Treasurer
Date September 10, 1998 /s/ LAUANE C. ADDIS /s/
---------------------------
Lauane C. Addis
Secretary, Corporate Counsel and
Director
<PAGE>
__________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q
Quarterly Report Pursuant to Section 13 or 15 (d)
of
THE SECURITIES AND EXCHANGE ACT OF 1934
For the period ending July 31, 1998
Commission File Number: 0-11718
STEVIA COMPANY, INC.
_________________________________________________________________
(Exact name of registrant as specified in charter)
1940 East Devon Avenue, Elk Grove Village, IL 60007, (847) 956-0471
- -----------------------------------------------------------------------------
(Address and telephone number of registrant's principal executive office on a
principal place of business)
<PAGE>
EXHIBITS
__________________________________________________________________
__________________________________________________________________
<PAGE>
EXHIBIT INDEX
_______________
Page Number
Pursuant to
Sequential
Exhibit Numbering
Number Exhibit System
_______ ________ --------------
27 Financial Data Schedule E-1
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS OF THE REGISTRANT FOR THE YEAR ENDING APRIL 30, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-END> APR-30-1998
<CASH> 906
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 6,962
<CURRENT-ASSETS> 9,826
<PP&E> 650,805
<DEPRECIATION> (118,077)
<TOTAL-ASSETS> 553,718
<CURRENT-LIABILITIES> 537,234
<BONDS> 0
2,088,001
0
<COMMON> 0
<OTHER-SE> (2,074,862)
<TOTAL-LIABILITY-AND-EQUITY> 553,718
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 43
<INCOME-PRETAX> (8,796)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> ( 8,796)
<EPS-PRIMARY> (0.001)
<EPS-DILUTED> (0.001)
</TABLE>
