SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES AND EXCHANGE OF 1934
For the Quarter endedCommission File No.
9/30/950-12595
MicroENERGY, Inc.
(Exact Name of Registrant as specified in its Charter)
Delaware 36-3262274
(State or other Jurisdiction of(I.R.S. Employer
Incorporation or OrganizationIdentification No.)
350 Randy Road, Carol Stream, IL 60188
(Address of Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (708) 653-5900
Indicated 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 report(s), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock, as of the latest practicable date.
As of September 30, 1995 there were outstanding 113,961,563 shares of
Common Stock, $.001 par value.
MICROENERGY, INC.
INDEX
Part 1 - Financial Information
Item 1 - Financial Statements
Condensed Balance Sheet for September 30, 1995 (unaudited)
and June 30, 1995 (audited).
Condensed statement of Operations (unaudited) for the
quarters ending September 30, 1995 and September 30, 1994.
Condensed Statement of Cash Flows (unaudited) for the three
months ending September 30, 1995 and September 30, 1994.
Notes to condensed Financial Statements (unaudited)
Item 2 - Management discussion and analysis of financial condition
and results of operations.
MICROENERGY, INC.
CONDENSED BALANCE SHEETS
1st Quarter
Ending Year Ended
9/30/95 6/30/95
(unaudited) (audited)
ASSETS
Current assets:
Cash $ 9,234 $ 113,227
Accounts receivable 1,701,987 1,193,995
Inventories 2,740,117 2,712,224
Other current assets 64,583 53,725
Total current assets 4,515,921 4,073,171
Machinery and equipment 4,549,888 4,390,516
Accumulated depreciation (2,747,893) (2,604,333)
1,801,995 1,786,183
Other assets, net
270,370 289,177
$ 6,588,286 $6,148,531
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 1,618,556 $1,165,211
Current portion of long-term obligations 858,085 858,808
Accounts payable 1,115,553 1,149,587
Accrued expenses 497,334 456,206
Total current liabilities 4,089,528 3,629,812
Long-term
obligations 3,417,331 3,514,009
Total liabilities 7,506,859 7,143,821
Stockholders' equity:
Convertible preferred stock, no par value -
800 shares authorized; 769 issued and
converted
Common stock, $.001 par value - 180,000,000
shares authorized; 113,961,563 shares
issued in 1995 and 114,111,563 in 1994 113,961 113,961
Additional paid-in capital 5,678,919 5,678,919
Accumulated deficit (5,356,650) (5,356,650)
Unearned restricted stock compensation (1,442,050) (1,455,550)
Common stock purchase warrants, 75 75
Treasury stock, at cost, 683,159 shares (16,386) (16,386)
Unrealized gain on marketable securities 40,341 40,341
Current Year Earnings 63,217
Total stockholders' equity (918,573) (995,290)
$ 6,588,286 $6,148,531
MICROENERGY, INC.
STATEMENTS OF OPERATIONS
Three Months Three Months
Ended Ended
9/30/95 9/30/94
Sales $3,387,265 $3,676,865
Expenses:
Facility, pre-production,
and production 2,695,125 3,016,529
Research and development 220,139 174,240
Selling,General and
Administrative 330,496 355,221
Interest expense, net 78,288 81,621
Net Profit After Tax 63,217 49,254
Net earnings (loss) per share $ .001 $ .001
Weighted average number
of shares of common
stock outstanding 113,961,563 114,111,563
MICROENERGY, INC.
STATEMENTS OF CASH FLOWS
Three Months Three Months
Ending Ending
9/30/95 9/30/94
Cash flows from operating
activities:
Net (losses) earnings $ 63,217 $ 49,254
Adjustments to reconcile net
(losses) earnings to net cash
provided by operations:
Depreciation 143,560 143,361
Changes in assets and
liabilities:
Accounts receivable (507,992) (672,144)
Inventories (27,893) (50,148)
Other current assets 7,949 17,389
Accounts payable (34,034) 220,456
Accrued expenses 41,128 (161,853)
(377,282) (502,939)
Net cash provided (used) by
operating activities (314,065) (453,685)
Cash flows (used in) provided by
investing activities:
Additions to equipment (159,372) (69,935)
Cash flows provided by (used in)
financing activities:
Notes Payable 452,622 497,570
Long-term debt, net of payments (96,678) (14,396)
Equity Transactions 13,500 13,500
Net cash provided by (used in)
financing activities 369,444 496,674
Net increase (decrease) in cash (103,993) (26,946)
Cash at beginning of year 113,227 45,792
Cash at end of year $ 9,234 $ 18,846
MICROENERGY, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. CONDENSED FINANCIAL STATEMENTS
The condensed balance sheet as of September 30, 1995, the
consolidated statement of income for the three month periods
ending September 30, 1995 and September 30, 1994 and the
condensed statement of cash flows for the three month period
ending September 30, 1995 and September 30, 1994 have been
prepared by the Company, without audit. In the opinion of
management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position,
results of operations and changes in financial position at
September 30, 1995 and for all periods presented have been made.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted.
It is suggested that these condensed statements be read in
conjunction with the financial statements and notes thereto
included in the Company's June 30, 1995 10K report. The results
of operations for the period ended September 30, 1995 is not
necessarily indicative of the operating results for the full
year.
Part 1
Item 2
MICROENERGY, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
Net sales for the three months ended September 30, 1995, were
$3,387,265 versus net sales of $3,676,865 for the year earlier
period ending September 30, 1994. The profit for the three month
period was $63,217 versus a profit of $49,254 in the prior year
period. The profit increase was a direct result of improved
efficiencies within the production process, and the cost control
efforts in the non-manufacturing areas of the business.
Manufacturing costs were reduced to 80% of revenues as compared
to 82% in the prior year period. Research and development costs
were increased by 26%, as the company is working on a number of
new projects. Selling, General and Administrative were reduced
by 7% compared to the prior year. Interest expense was
relatively flat on a year to year basis.
Liquidity and Capital Resources
The Company at September 30, 1995, had positive working capital
of $426,393 versus a working capital level of $443,359 at the end
of the fiscal year, June 30, 1995. Accounts receivable increased
by $507,992. The increase in accounts receivable was due to a
major customer paying just subsequent to the close of the
quarter ending September 30, 1995. The delay was due to an
administrative error, and has now been corrected. The inventory
levels have remained at virtually the same level as the year end
balances. The Company is current will all of its debt
obligations. Management expects that its current cash and
working capital position combined with cash expected to be
generated from operations will be sufficient to service the
Company's debt and fund the Company for the coming fiscal year.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1933, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Date November 1, 1995 By(s) Robert G. Gatza
Robert G. Gatza
President and CEO
Date November 1, 1995 By(s) Robert J. Fanella
Robert J. Fanella
Chief Financial Officer
and Treasurer
