FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1995.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from N/A to N/A
Commission file number 0-12984
ADVANCED TOBACCO PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
TEXAS 74-2285214
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
16607 Blanco Road, Suite 1504, San Antonio, Texas 78232 (Address
of principal executive offices) (Zip Code)
(210) 408-7077
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if
changed since last report)
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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or 15(d)
of the Securities Exchange Act of 1934 subsequent to the distribution
of securities under a plan confirmed by a court.
Yes No N/A
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
7,792,136 as of December 31, 1995
PART I - FINANCIAL INFORMATION
Item 1: Financial Statements
ADVANCED TOBACCO PRODUCTS, INC.
dba ADVANCED THERAPEUTIC PRODUCTS, INC.
BALANCE SHEETS
(Unaudited) (Audited)
December 31 June 30
1995 1995
ASSETS
CURRENT ASSETS:
Cash $ 50,194 $ 86,390
Investments 329,074 316,765
Total current assets 379,268 403,155
LICENSE AGREEMENTS, Net 156,485 132,210
INVESTMENTS 945,464 959,903
Total assets $1,481,217 $1,495,268
LIABILITIES AND SHAREHOLDERS'
EQUITY:
LIABILITIES:
Accounts payable $ 3,579 $ 3,841
Accrued liabilities 20,000 15,000
Total liabilities $ 23,579 $ 18,841
SHAREHOLDERS' EQUITY:
Common stock - authorized,
30,000,000 shares of $.01
par value; 7,792,136 shares
outstanding as of December
1995, and June 1995,
respectively 77,922 77,922
Additional paid-in-capital 12,510,378 12,510,378
Accumulated deficit (11,130,662) (11,111,873)
Total stockholders'
equity 1,457,638 1,476,427
Total liabilities and
stockholders' equity $1,481,217 $1,495,268
ADVANCED TOBACCO PRODUCTS, INC.
dba ADVANCED THERAPEUTIC PRODUCTS, INC.
STATEMENT OF INCOME (LOSS)
(Unaudited)
Three Months Ended December 31
1995 1994
REVENUES: $ -0- $ -0-
Total operating revenues: -0- -0-
EXPENSES:
General and administrative 16,741 17,760
Total operating expenses 16,741 17,760
INCOME (LOSS) FROM OPERATIONS (16,741) (17,760)
OTHER INCOME:
Interest Income 19,266 47,414
Total other income 19,266 47,414
NET INCOME (LOSS): $ 2,525 $ 29,654
WEIGHTED AVERAGED NUMBER OF SHARES
OF COMMON STOCK OUTSTANDING 7,792,136 7,792,136
EARNINGS (LOSS) PER COMMON SHARE NIL $ .003
(Unaudited)
Six Months Ended December 31
1995 1994
REVENUES: $ -0- $ -0-
Total operating revenues: -0- -0-
EXPENSES:
General and administrative 57,921 44,511
Total operating expenses 57,921 44,511
INCOME (LOSS) FROM OPERATIONS (57,921) (44,511)
OTHER INCOME:
Interest Income 39,132 59,396
Total other income 39,132 59,396
NET INCOME (LOSS): $(18,789) $ 14,885
WEIGHTED AVERAGED NUMBER OF SHARES
OF COMMON STOCK OUTSTANDING 7,792,136 7,792,136
EARNINGS (LOSS) PER COMMON SHARE $(.002) $ .002
ADVANCED TOBACCO PRODUCTS, INC.
dba ADVANCED THERAPEUTIC PRODUCTS, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
Six Months Ended December 31
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss): $(18,789) $ 14,885
Adjustments to reconcile net
income (loss) to net cash:
Amortization 3,340 3,340
Interest receivable -0- 3,605
Accounts payable and accrued
liabilities 4,738 1,193
Net cash provided by
operations: (10,711) 23,023
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturity of certificates of deposit -0- 150,000
Capital expenses of license
agreements (27,614) -0-
Net cash provided by
investments (27,614) 150,000
NET INCREASE (DECREASE) IN CASH: (38,326) 173,023
CASH & INVESTMENTS AT BEGINNING
OF PERIOD: 1,363,058 1,193,388
CASH & INVESTMENTS AT END
OF PERIOD: $1,324,732 $1,366,411
NOTES TO FINANCIAL STATEMENTS
1. The condensed financial statements included herein were
prepared by the Company without audit. Certain information and footnote
disclosures normally included in financial statements have been omitted.
The condensed financial statements should be read in conjunction with
the financial statements and the notes thereto included in the Company's
Annual Report on Form 10-K as of June 30, 1995.
Item 2: Management's Discussion and Analysis of Financial Condition and
Results of Operation
RESULTS OF OPERATIONS
In 1987, the Company sold all of its nicotine technology to
entities owned or controlled by Pharmacia AB ("Pharmacia"), a worldwide
pharmaceutical company headquartered in Sweden that manufactured the
Nicorette chewing gum and the nicotine transdermal patch.
Since 1987, the Company has worked jointly with Pharmacia to
develop a nicotine vaporizer product for smoking cessation which commenced
clinical and pivotal trials in late 1990. During the fiscal year 1994,
Pharmacia filed new drug applications (NDA's) with the respective
regulatory agencies in several major European countries. After including
additional data in the filing which Pharmacia believes will facilitate the
United States Food and Drug Administration (FDA) review process, Pharmacia
has indicated to the Company that it now intends to file an NDA with the
FDA during the first quarter of calendar year 1996.
During the six-month period ended December 31, 1995, the Company's
only source of revenues has been from interest income.
LIQUIDITY AND CAPITAL RESOURCES
Cash resources, including investments, available on December 31,
1995, were approximately $1,324,732, as compared to approximately
$1,366,411, for December 31, 1994. The reduction in cash resources
reflects the use of cash for capital expenses for license agreements.
COMPARISON OF SELECTED FINANCIAL DATA
Interest income for the six-month period ended December 31, 1995
decreased to $39,132 as compared to $59,396 for the six-month period
ended December 31, 1994. This decrease is due to a fluctuation in
interest rates.
The Company experienced a net loss for the six-month period ended
December 31, 1995 of ($18,789) compared to a net profit of $14,885 for the
six-month period ended December 31, 1994. The loss was due to increased
general and administrative expenses and a decrease in interest income.
General and administrative expenses were $57,921 for the six-month
period ended December 31, 1995, compared to $44,511 for the six-month
period ended December 31, 1994. This increase in general administrative
expenses was due primarily to consulting fees.
PART II - OTHER INFORMATION
Item 1: Legal Proceedings
None
Item 2: Changes in Securities
None
Item 3: Defaults Upon Senior Securities
None
Item 4: Submission of Matters to a Vote of Security Holders
None
Item 5: Other Information
None
Item 6: Exhibits and Reports on Form 8-K
None
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.
ADVANCED TOBACCO PRODUCTS, INC.
(Registrant)
Dated: February 14, 1996
By: J. W. Linehan
J.W. Linehan, President
and Chief Financial Officer
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