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 June 30, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period to
Commission file number 1-11394
EDITEK, INC.
(Exact name of registrant as specified in its charter)
Delaware 95-3863205
(State or other jurisdiction of (I.R.S. Employer
incorporated or organization) Identification No.)
1238 Anthony Road, Burlington, North Carolina 27215
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (910) 226-6311
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
The number of shares of Common Stock, $.15 par value,
outstanding as of August 1, 1995 was 9,820,567.
<PAGE>
EDITEK, INC.
INDEX
Page
Part I Financial Information:
Item 1:
Balance Sheets - June 30, 1995 (Unaudited)
and December 31, 1994 3
Statements of Operations - Six Months
Ended June 30, 1995 and 1994 and Three
Months Ended June 30, 1995 and 1994
(Unaudited) 5
Statements of Cash Flows - Six Months
Ended June 30, 1995 and 1994 (Unaudited) 6
Notes to Financial Statements 7
Item 2:
Management's Discussion and Analysis of
Financial Condition and Results of Operations 9
Part II Other Information 16
Signatures 17
<PAGE>
PART I. FINANCIAL INFORMATION
EDITEK, Inc.
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30 December 31
1995 1994
(Unaudited)
(In Thousands)
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $731 $1,105
Accounts receivable
Trade, less allowance for
doubtful accounts ($219,000 - 1995,
$204,000 - 1994) 942 737
Other 125 106
Inventories:
Raw Materials 455 532
Work in process 41 64
Finished goods 305 257
801 853
Prepaid expenses and other 680 272
Total current assets 3,279 3,073
Equipment and improvements
Furniture and equipment 5,770 5,689
Leasehold improvements 1,696 1,692
7,466 7,381
Less accumulated depreciation
and amortization (6,578) (6,326)
888 1,055
Goodwill 3,286 3,247
Other assets 59 3
$7,512 $7,378
</TABLE>
3
<PAGE>
EDITEK, Inc.
BALANCE SHEETS
(continued)
<TABLE>
<CAPTION>
June 30 December 31
1995 1994
(Unaudited)
(In Thousands)
<S> <C> <C>
Liabilities and stockholders' equity
Current liabilities
Line of credit $0 $850
Accounts payable 1,016 1,105
Accrued expense 376 347
Deferred revenues 20 39
Current portion of long-term debt 0 95
Current portion of capital lease 0 23
Total current liabilities 1,412 2,459
Notes payable 63 63
Stockholders' equity
Preferred Stock--authorized 600,000
shares; no shares isssued or
outstanding 0 0
Common Stock, $.15 par value;
authorized - 20,000,000 shares;
issued and outstanding -
9,802,159 shares in 1995 and
7,086,989 shares in 1994 1,488 1,211
Additional paid-in capital 32,852 30,132
Accumulated deficit (28,198) (26,382)
6,142 4,961
Less: Note receivable from officer (100) (100)
Treasury stock (5) (5)
Total stockholders' equity 6,037 4,856
$7,512 $7,378
See notes to financial statements.
</TABLE>
4
<PAGE>
EDITEK, Inc.
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended Three Months Ended
June 30 June 30 June 30 June 30
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues
Product sales $3,410 $3,131 $1,837 $1,811
Royalties and fees 160 50 74 22
Interest and other income 181 72 113 6
3,751 3,253 2,024 1,839
Cost of sales 3,181 2,755 1,625 1,609
Gross profit 570 498 399 230
Operating expenses
Selling, general and administrative 1,939 1,586 1,081 994
Research and development 427 346 219 191
Interest 20 6 2 3
2,386 1,938 1,302 1,188
Net loss ($1,816) ($1,440) ($903) ($958)
Loss per common share ($0.20) ($0.21) ($0.10) ($0.14)
Weighted average number of
common shares outstanding 9,239,159 6,929,974 9,321,610 7,040,447
See notes to financial statements.
</TABLE>
5
<PAGE>
STATEMENTS OF CASH FLOWS (Unaudited)
<TABLE>
<CAPTION>
Six Months Ended
June 30 June 30
1995 1994
(In Thousands)
<S> <C> <C>
Operating activities
Net loss ($1,816) ($1,440)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 328 255
Gain on sale of equipment 0 0
Changes in operating assets & liabilities
net of effects from purchase of PDLA & Bioman:
Accounts receivable (114) (118)
Inventories 65 (200)
Prepaid expenses & other (404) (31)
Accounts payable and accrued liabilit (208) 146
Deferred revenues (19) (28)
Leases payable (23) (16)
Net cash used in operating activities (2,191) (1,432)
Investing activities
Purchases of equipment & improvements (61) (268)
Proceeds from sale of equipment 0 0
Cash acquired from PDLA acquisition 0 89
Cash acquired from BIOMAN acquisition 12 0
Net cash used in investing activities (49) (179)
Financing activities
Payments on Debt (944) 0
Proceeds from issuance of stock for:
Employee stock purchase plan 14 12
Exercise of stock options and warrants 118 44
Private placements 2,776 203
Costs related to private placements (98) (28)
Net cash provided by financing activities 1,866 231
Decrease in cash and cash equivalents ($374) ($1,380)
Cash and cash equivalents at beginning of period $1,105 $2,560
Cash and cash equivalents at end of period $731 $1,180
</TABLE>
6
<PAGE>
EDITEK, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 1995
NOTE A -- BASIS OF PRESENTATION
The accompanying unaudited financial statements of EDITEK,
Inc. (the "Company") have been prepared in accordance with
generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q
and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by
generally accepted accounting principles. In the opinion of
management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation of
financial condition and results of operations have been
included. Operating results for the six month period ended
June 30, 1995 are not necessarily indicative of the results
that may be attained for the entire year. For further
information, refer to the financial statements and footnotes
thereto included in the Company's annual report on Form 10-K
for the year ended December 31, 1994.
Loss Per Share: Loss per share amounts are based on the
weighted average number of shares of common stock
outstanding. Common stock equivalents have not been
included in the computation as the effect would be anti-
dilutive.
NOTE B -- ACQUISITION OF PRINCETON DIAGNOSTIC LABORATORIES
OF AMERICA, INC. ("PDLA")
The Company acquired PDLA on February 11, 1994 by issuing
826,790 shares of its common stock in exchange for all of
the outstanding shares of PDLA stock. The total value of
the exchange was $3,876,000. The acquisition was accounted
for under the purchase method of accounting and the Company
recorded goodwill of $3,319,000. Additional shares of
common stock were subsequently issued to former major
shareholders of PDLA through price protection agreements.
The consolidated results of operations for the year ended
December 31, 1994 include the results of the PDLA operations
from February 12, 1994 to December 31, 1994.
NOTE C -- ACQUISITION OF BIOMAN PRODUCTS, INC. ("Bioman")
The Company acquired Bioman on June 1, 1995 in a transaction
accounted for as a purchase of assets. The Company paid
$140,000 Canadian for Bioman utilizing both cash and common
stock.
7
<PAGE>
NOTE D -- DEBT
On August 15, 1989 the Company entered into a long-term loan
agreement with North Carolina Biotechnology Center ("NCBC"),
a state funded, non-profit organization whereby the Company
borrowed an aggregate of $125,000 to fund the development
cost of a test for Chlamydia, a sexually transmitted
disease. The loan originally had an interest rate of seven
and one half percent (7.5%) per annum with all principal and
interest due on August 15, 1994. The Company amended the
loan agreement on the due date and issued 16,100 shares of
common stock for $62,000 of the loan. The remaining
principal, $63,000, now bears interest at a rate of nine
percent (9%) per annum; this principal and interest, which
are due on August 16, 1996, are convertible into shares of
common stock. During the six months ended June 30, 1995,
the Company paid the $33,000 of the remaining accrued
interest on the original loan.
8
<PAGE>
EDITEK, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Introduction
The Company commenced operations in June 1983 and until
1986 was a development stage company. The Company became
engaged in the manufacture and sale of Conventional
Biodiagnostic Products as a result of its acquisition of
Granite Technological Enterprises, Inc. in June 1986. The
Company began the manufacture and sale of its EZ-SCREEN
diagnostic tests in 1985 and introduced its patented one-
step assays, VERDICT and RECON, in 1993. On August 6, 1993,
the Company formed diAGnostix, inc. to market its
agricultural diagnostic products. On February 11, 1994, the
Company completed the acquisition of PDLA, which is now a
wholly owned subsidiary of the Company. On June 1, 1995,
the Company acquired Bioman. The operations of Bioman are
now part of diAGnostix, inc. Since inception, the Company
has financed its working capital requirements primarily from
the sale of equity securities.
Six Months Ended June 30, 1995 Compared to Six Months Ended
June 30, 1994
Total revenues for the six months ended June 30, 1995
were $3,751,000 compared to total revenues of $3,253,000 for
the six months ended June 30, 1994. The $498,000 increase
was the result of the Company recognizing for the full six
months in 1995 the revenues from the laboratory services of
PDLA as compared to only four and one-half months in 1994.
Revenues from product sales and laboratory services for the
six months ended June 30, 1995 were $3,410,000, an increase
of $279,000 compared to $3,131,000 for the same period in
1994.
Substance abuse testing products and services
("Substance Abuse Testing Products and Services") which are
marketed through PDLA, include EZ-SCREEN and VERDICT on-site
tests, the laboratory services provided by PDLA and other
ancillary products for the detection of abused substances.
Sales of Substance Abuse Testing Products and Services for
the six months ended June 30, 1995 were $2,679,000 compared
to $2,416,000 for the six months ended June 30, 1994. The
increase of $263,000 in sales was primarily a result of
increases in sales from laboratory services of PDLA, in
addition to increased sales of the VERDICT product, for the
six month period ending June 30, 1995. During the six
months ended June 30, 1994, the Company realized sales of
$312,000 from laboratory services that were transferred to
American Medical Laboratories, Inc. ("AML") and, as such,
not included in sales for the six months ended June 30,
1995. Accordingly, the actual increase in sales from
Substance Abuse Testing Products and Services, excluding
those sales transferred to AML, was $586,000.
9
<PAGE>
As previously mentioned, effective January 1, 1995, the
Company transferred the special toxicology and general
medical testing business to AML in return for a royalty
based upon the billings of AML to the former PDLA clients.
This royalty was $42,000 for the six months ending June 30,
1995.
Product sales also include sales of agricultural
diagnostic products consisting of EZ-SCREEN test kits (for
mycotoxin detection, drug residue surveillance, etc.),
species identification kits, other bioassay products and
third party products. These products are marketed through
diAGnostix, inc. Effective June 1, 1995, the Company
acquired Bioman, an environmental diagnostic company which
sells both OEM products and products available through
distribution agreements with other diagnostic companies.
Bioman was previously the Company's distributor for Canada.
The Bioman products are marketed through diAGnostix, inc.
Sales of products sold through diAGnostix, inc. were
$481,000 for the six months ended June 30, 1995, compared to
$471,000 for the six months ended June 30, 1994. Sales of
$78,000 for the month of June from the former operations of
Bioman during the six months ended June 30, 1995 offset a
decrease in sales of the EZ-SCREEN on-site testing products
for the six months ended June 30, 1995, as compared to the
six months ended June 30, 1994.
Revenues generated from the shipment of products to the
U.S. Department of Defense were $37,000 for the six months
ended June 30, 1995. The Company had no such revenues
during the six months ended June 30, 1994.
Revenues from contract manufacturing services were
$9,000 for the six months ended June 30, 1995 compared to
$91,000 during the six months ended June 30, 1994. This
decrease was the result of delays in purchases by a client
company pending product launch of the product utilizing the
component produced by the Company.
Microbiological and associated product sales were
$204,000 for the six months ended June 30, 1995 compared to
$153,000 for these products during the same period in 1994.
This increase is the result of a price increase to a large
purchaser of these products.
Revenues from royalties and fees during the six months
ended June 30, 1995 were $160,000 compared to $50,000 for
the corresponding period in 1994. This increase was
primarily due to the royalty received from AML pursuant to
the agreement the Company has with AML and increases in fees
charged to the U.S. Department of Defense for specific test
development.
Revenues from interest and other income for the six
months ended June 30, 1995 were $181,000 compared to $72,000
for the six months ended June 30, 1994. The increase of
$109,000 was primarily a result of the recovery of a
laboratory service customer's debts which had previously
been written off, as well as a payment made to the Company
by the landlord of the facility in New Jersey for renewing
the lease for that facility.
10
<PAGE>
Gross margins from the sales of both manufactured and
products purchased for resale for the six months ended June
30, 1995 were 17% compared to 24% of sales of these products
for the six months ended June 30, 1994. This decline was
due to the comparative decrease in sales of the agricultural
diagnostic products and contract manufacturing services
during the six months ended June 30, 1995. These products
and services typically have higher gross margins than the
substance abuse testing products.
An increase in the number of samples being processed at
PDLA resulted in positive gross margins for laboratory
services for the six months ended June 30, 1995. During
the same period in 1994, the cost of providing laboratory
services exceeded revenue realized from these services.
Since a large amount of the costs of providing laboratory
services are fixed or near fixed costs, the margins from
sales of laboratory services are volume dependent.
Selling, general and administration expenses for the
six months ended June 30, 1995 were $1,939,000, as compared
to $1,586,000 for the six months ended June 30, 1994. This
increase of $353,000 is primarily the result of increased
sales and marketing expenses associated with the Substance
Abuse Testing Products and Services marketed through PDLA,
as well as the overall increases in general expenditures
resulting from the acquisition of PDLA effective February
14, 1994.
Research and development expenses incurred during the
six months ended June 30, 1995 were $427,000 as compared to
$346,000 for the six months ended June 30, 1994. This
increase of $81,000 was primarily the result of increased
personnel costs and expenses, as well as increases in the
work being performed pursuant to the DOD contract.
For the six months ended June 30, 1995, EDITEK incurred
interest expense of $20,000, compared to interest expense of
$6,000 incurred during the six months ended June 30, 1994.
This increase was primarily a result of the Company
borrowing funds against its line of credit. The Company
paid off the balance of the line of credit during the six
months ended June 30, 1995.
As a result of the above, the net loss for the six
months ended June 30, 1995 was $1,816,000, compared to the
net loss of $1,440,000 for the six months ended June 30,
1994.
Three Months Ended June 30, 1995 compared to Three Months
Ended June 30, 1994
Total revenues for the three months ended June 30, 1995
were $2,024,000, compared to $1,839,000 for the three months
ended June 30, 1994. Revenues from product sales were
$1,837,000 for the three months ended June 30, 1995, as
compared to $1,811,000 for the same period in 1994.
Sales of Substance Abuse Testing Products and Services
were $1,480,000 for the three months ended June 30, 1995,
compared to $1,501,000 for the three months ended
11
<PAGE>
June 30, 1994. While this represents a decrease of $21,000,
the three month period ending June 30, 1994 included sales
of $177,000 of laboratory services that were transferred to
AML in 1995 and as such, not included in product sales for
the three months ended June 30, 1995. Accordingly, the actual
increase in sales from Substance Abuse Testing Products and
Services, excluding those sales transferred to AML, was
$156,000.
Sales of products sold through diAGnostix, inc. were
$228,000 for the three months ended June 30, 1995, as
compared to $175,000 for the three months ended June 30,
1994. This increase of $53,000 was the result of the
acquisition of Bioman effective June 1, 1995.
Revenues generated from the shipment of products to the
U.S. Department of Defense were $23,000 for the three months
ended June 30, 1995. The Company had no such revenues
during the three months ended June 30, 1994.
Revenues from contract manufacturing services were
$5,000 for the three months ended June 30, 1995, compared to
$58,000 during the three months ended June 30, 1994. This
decrease was the result of delays in purchases by a client
company pending product launch of the product utilizing the
component produced by the Company.
Microbiological and associated product sales were
$101,000 for the three months ended June 30, 1995, compared
to $77,000 for these products during the same period in
1994. This increase is the result of a price increase
to a large purchaser of these products.
Revenues from royalties and fees during the three
months ended June 30, 1995 were $74,000 compared to $22,000
for the corresponding period in 1994. This increase was
primarily due to the royalty received from AML pursuant to
the agreement the Company has with AML and increases in fees
charged to the U.S. Department of Defense for specific test
development.
Revenues from interest and other income for the three
months ended June 30, 1995 were $113,000 compared to $6,000
for the three months ended June 30, 1994. These revenues
are primarily a result of a payment received by the Company
from the landlord of the facility in New Jersey due to the
Company agreeing to renew the lease at that facility.
Gross margins from the sales of both manufactured
products and products purchased for resale for the three
months ended June 30, 1995 were 19%, compared to 22% of
sales of these products for the three months ended June 30,
1994. This decline was primarily due to the comparative
decrease in revenues from contract manufacturing services
during the three months ended June 30, 1995. These services
typically have higher gross margins than the manufactured
products.
12
<PAGE>
Gross margins from the sale of laboratory services were
8% for the three months ended June 30, 1995, as compared to
the three months ended June 30, 1994, where the costs of
providing laboratory services exceeded the revenue realized
from these services. This improvement was the result of an
increase in the number of samples processed through the
laboratory for the three months ended June 30, 1995 as
compared to the same period in 1994.
Selling, general and administration expenses for the
three months ended June 30, 1995 were $1,081,000, as
compared to $994,000 for the three months ended June 30,
1994. This increase of $87,000 was primarily the result of
increased sales and marketing expenses associated with the
Substance Abuse Testing Products and Services marketed
through PDLA.
Research and development expenses incurred during the
three months ended June 30, 1995 were $219,000, as compared
to $191,000 for the three months ended June 30, 1994. This
increase of $28,000 was primarily the result of increased
personnel costs and expenses, as well as increases in the
work being performed pursuant to the DOD contract.
For the three months ended June 30, 1995, EDITEK
incurred interest expense of $2,000, compared to interest
expense of $3,000 incurred during the three months ended
June 30, 1994.
As a result of the above, the net loss for the three
months ended June 30, 1995 was $903,000, compared to the net
loss of $958,000 for the three months ended June 30, 1994.
Material Changes in Financial Condition
As of June 30, 1995, cash and cash equivalents were
$731,000, as compared to $1,105,000 at December 31, 1994.
This decrease was primarily the result of the net loss of
$1,816,000 for the six months ended June 30, 1995.
As of June 30, 1995, accounts receivable were
$1,067,000, compared to $843,000 at December 31, 1994. This
increase of $224,000, or 27%, was primarily the result of
increased sales during the period preceding June 30, 1995,
as compared to the period preceding December 31, 1994.
Inventories were $801,000, or 6% lower, at June 30,
1995, as compared to $853,000 at December 31, 1994.
Prepaid expenses and other assets were $680,000 at June
30, 1995, as compared to $272,000 at December 31, 1994.
This increase of $408,000 is primarily the result of
$500,000 the Company placed into an escrow account towards
the acquisition of MEDTOX Laboratories, Inc. ("MEDTOX").
The Company will forfeit the $500,000 if
13
<PAGE>
the acquisition of MEDTOX does not occur solely as a result
of the Company being unsuccessful in raising the funds
necessary to consummate the acquisition.
As of December 31, 1994, the Company had an outstanding
balance of $850,000 on its line of credit. During the six
months ended June 30, 1995, the Company repaid the total
outstanding balance.
As of June 30, 1995, the Company had a balance of
accounts payable of $1,016,000, compared to a balance of
$1,105,000 at December 31, 1994.
Accrued expenses were $376,000 or 8% higher at June 30,
1995, as compared to $347,000 at December 31, 1994.
As described more fully in the footnotes to the
financial statements, the Company entered into a $125,021
loan agreement with the North Carolina Biotechnology Center
(NCBC). The loan, plus accrued interest, was due August 14,
1994. On December 15, 1994, the Company and NCBC negotiated
a loan modification extending the due date to August 14,
1996. In addition, NCBC has exercised their right to
convert 50%, or approximately $62,000, of the loan amount
into 16,100 shares of the Company's common stock.
Accordingly, at June 30, 1995, the Company had a balance of
loan payable of $63,000.
Inflation
Inflation generally affects the costs incurred by
EDITEK in its purchase of raw materials, as well as in
certain components of its selling, general, and
administrative expenses. The ability of EDITEK to increase
prices may be limited by competitive factors or contractual
obligations.
Liquidity and Capital Resources
Since its inception, the working capital requirements
of the Company have been funded by cash received from equity
investments in the Company. At June 30, 1995, the Company
had cash and cash equivalents of $731,000. The Company has
also put $500,000 in an escrow account towards the
acquisition of MEDTOX. The Company is in the process of
raising up to $31 million to finance the acquisition of
MEDTOX and provide working capital to support the post
acquisition company. If the acquisition of MEDTOX was not
to occur solely as a result of the Company not being able to
raise sufficient capital to consummate the acquisition, the
Company will forfeit the $500,000 to MEDTOX.
As of June 30, 1995, the Company had not achieved a
positive cash flow from operations. Accordingly, the
Company relies on available credit arrangements, outside
funding of research and development, and continued sales of
its equity securities to fund operations until a positive
cash flow can be achieved. Management believes that it has
14
<PAGE>
taken, and is prepared to continue to take, the actions
required to yield a positive cash flow from operations in
the future.
The Company does not intend to rely primarily on
further cost reductions in order to achieve a positive cash
flow. The Company has already made a substantial investment
in research and development and marketing. It believes the
appropriate strategy for capitalizing on the investment made
to date is to maintain, and later expand, its current level
of operations, including research and development and
marketing. Therefore, the Company plan includes (i)
continuing to aggressively monitor and control costs, (ii)
increasing revenue from sales of the Company's products,
services, and research and development contracts, (iii)
raising additional capital through sales of its securities,
as well as (iv) pursuing synergistic acquisitions to
increase the Company's critical mass. There can be no
assurance that costs can be controlled, revenues can be
increased, financing may be obtained, acquisitions
successfully consummated, or that the Company will be
profitable.
Through July 31, 1995, the Company has sold a total of
1,477,500 shares of common stock in five separate private
transactions in 1995. The sale of these 1,477,500 shares
generated net proceeds of $2,677,261 to the Company.
15
<PAGE>
ITEM 2 CHANGES IN SECURITIES. Inapplicable
ITEM 3 DEFAULTS ON SENIOR SECURITIES. Inapplicable
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITIES
HOLDERS. None
ITEM 5 OTHER INFORMATION
On June 1, 1995, the Company executed an Asset Purchase
Agreement to acquire Bioman Products, Inc. in a transaction
accounted for as a purchase of assets.
On July 1, 1995, the Company and MEDTOX Laboratories,
Inc. executed an Asset Purchase Agreement for the Company to
acquire all the assets of that company in a cash transaction
of $24 million. Interstate/Johnson Lane and Shoreline
Pacific will assist the Company in the financial
aspects of this transaction. It is anticipated this
acquisition, which will require approval by the
Company's stockholders and the ability to obtain adequate
financing, will occur during the fourth quarter of 1995.
There can, however, be no assurance that all the conditions
required to close this transaction will occur.
On May 1, 1995, the Company filed a Registration
Statement on Form S-3 with the Securities and Exchange
Commission which registers 961,100 shares of common stock
issued or to be issued to certain shareholders in connection
with private placements in March and April 1995 as well as
up to 40,000 shares to be issued pursuant to the acquisition
of Bioman as well as 16,100 shares issued to NCBC pursuant
to the Loan Modification Agreement between the Company and
NCBC. The Registration Statement was declared effective on
July 24, 1995.
16
<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.
Date: August 10, 1995
EDITEK, INC.
By: /s/ James D. Skinner
James D. Skinner, Chairman, President
and Chief Executive Officer
By: /s/ Peter J. Heath
Peter J. Heath, Vice President of Finance
and Chief Financial Officer
17
<PAGE>
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<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 731
<SECURITIES> 0
<RECEIVABLES> 1,286
<ALLOWANCES> 219
<INVENTORY> 801
<CURRENT-ASSETS> 3,279
<PP&E> 7,466
<DEPRECIATION> 6,578
<TOTAL-ASSETS> 7,512
<CURRENT-LIABILITIES> 1,412
<BONDS> 63
<COMMON> 1,488
0
0
<OTHER-SE> 4,549
<TOTAL-LIABILITY-AND-EQUITY> 7,512
<SALES> 3,410
<TOTAL-REVENUES> 3,751
<CGS> 3,181
<TOTAL-COSTS> 3,181
<OTHER-EXPENSES> 427
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 20
<INCOME-PRETAX> (1,816)
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<CHANGES> 0
<NET-INCOME> (1,816)
<EPS-PRIMARY> (.20)
<EPS-DILUTED> (.20)
</TABLE>
