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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
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X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Quarter ended June 30, 1996
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: 0-11586
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INTERNATIONAL MANAGEMENT & RESEARCH CORPORATION
(Exact name of registrant as specified in its charter)
Pennsylvania 23-0350710
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
810 Lombard Street
Philadelphia, Pennsylvania 19147
(Address of principal executive offices)
(215) 923-6850
(Registrant's telephone number including area code)
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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
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As of August _____, 1996, there were outstanding 12,760,140 shares of the
Registrant's Common Stock, $.005 par value.
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Page 1 of 10 pages
Exhibit Index is on Page 9
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INTERNATIONAL MANAGEMENT & RESEARCH CORPORATION
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INDEX
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Page
Number
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PART I FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets:
June 30, 1996 and December 31, 1995 2
Consolidated Statements of Loss:
Three and Six Months Ended June 30, 1996 and 1995 3
Consolidated Statements of Accumulated Deficit:
Six Months Ended June 30, 1996 and 1995 4
Consolidated Statements of Cash Flows:
Six Months Ended June 30, 1996 and 1995 5
Note to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II OTHER INFORMATION
Item 1. Legal Proceedings 8
Item 6. Exhibits and Reports on Form 8-K 8
Signatures
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INTERNATIONAL MANAGEMENT & RESEARCH CORPORATION
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CONSOLIDATED BALANCE SHEETS
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<TABLE>
<CAPTION>
Assets
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Unaudited
JUNE, 30 DECEMBER 31,
1996 1995
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<S> <C> <C>
Current assets
Cash $ 27,967 $ 84,156
Accounts receivable (net of allowance for doubtful
accounts of $6,000 at 3/31/96 and 12/31/95) 16,211 21,013
Note Receivable 20,000 20,000
Inventory 65,889 70,084
Prepaid expenses and other current assets 12,198 13,819
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Total current assets 142,265 209,072
Property, equipment, furniture and leaseholds, net
of accumulated depreciation and amortization 22,341 25,011
Deposits 8,431 8,431
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Total assets $ 173,037 $ 242,514
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Liabilities and Shareholders' Deficit
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Current liabilities
Note payable $ 413,900 $ 654,900
Accounts payable and accrued expenses 2,063,076 1,981,066
Proceeds for bonds unissued 187,000 187,000
Proceeds from common stock unissued 462,761 462,761
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Total current liabilities 3,126,737 3,285,727
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Shareholders' deficit
Common stock - $.005 par value, 50,000,000
shares authorized 12,760,140 shares
issued and outstanding 63,801 63,801
Capital in excess of par value 7,997,047 7,632,047
Accumulated deficit (11,014,548) (10,739,061)
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Total shareholders' deficit (2,953,700) (3,043,213)
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Total liabilities and
shareholders' deficit $ 173,037 $ 242,514
========= =========
</TABLE>
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The accompanying note is an integral part of these financial statements.
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INTERNATIONAL MANAGEMENT & RESEARCH CORPORATION
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CONSOLIDATED STATEMENTS OF LOSS
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(UNAUDITED)
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<TABLE>
<CAPTION>
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SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
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1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Revenue
Sale of medical devices $ 29,125 $ 22,526 $ 11,609 $ 11,931
----------- ---------- ----------- -----------
Direct expenses
Costs of goods -
medical devices 16,166 15,075 13,111 8,098
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Gross profit 12,959 7,451 ( 1,502) 3,833
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Other expenses
Expenses of development
stage subsidiary
Professional fees 41,665 53,524 18,044 12,039
Research and development
expenses 0 0 0 0
Other development stage
expenses 208,835 253,468 118,388 137,615
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Total expenses of develop
ment stage subsidiary 250,500 314,316 136,432 155,594
General and administrative
expenses 38,021 64,041 17,732 20,594
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Total other expenses 288,521 378,357 154,164 176,188
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Investment and other
income (expense)
Investment income - 159 - -
Other income 75 5,264 - 83
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Total other income 75 5,423 - 83
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Net loss ($ 275,487) ($365,483) ($ 155,666) ($ 172,272)
=========== ========== =========== ==========
Loss per common share
outstanding ($.0216) ($.0286) ($.0132) ($.0135)
=========== ========== =========== ===========
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</TABLE>
The accompanying note is an integral part of these financial statements.
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INTERNATIONAL MANAGEMENT & RESEARCH CORPORATION
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CONSOLIDATED STATEMENTS OF ACCUMULATED DEFICIT
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(UNAUDITED)
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<TABLE>
<CAPTION>
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SIX MONTHS ENDED
JUNE 30 ,
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1996 1995
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<S> <C> <C>
BALANCE - BEGINNING OF THE PERIOD ($ 10,739,061) ($ 10,282,226)
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NET LOSS FOR THE PERIOD ( 275,487) ( 365,483)
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BALANCE - END OF THE PERIOD ($ 11,014,548) ($ 10,647,709)
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</TABLE>
The accompanying note is an integral part of these financial statements.
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INTERNATIONAL MANAGEMENT & RESEARCH CORPORATION
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(UNAUDITED)
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<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
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1996 1995
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<S> <C> <C>
Cash flows from operating activities
Net loss ($275,487) ($365,483)
Adjustments to reconcile net loss to net cash used in
operating activities
Depreciation and amortization 2,670 7,324
Change in Accounts receivable 4,802 (8,274)
Inventory 4,195 1,887
Prepaid expenses and other current assets 1,621 10,850
Accounts payable and accrued expenses 72,010 138,489
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Total adjustments 85,298 150,276
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Net cash used in operating activities (190,189) (215,207)
Cash flows from investing activities
Capital expenditures ( - ) (26,731)
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Net cash used in investing activities ( - ) (26,731)
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Cash flows from financing activities
Proceeds from issuance of notes payable - 50,000
Principal payments of notes payable (231,000) -
Proceeds for common stock unissued 1,600
Proceeds from issuance of Preferred Stock
of consolidated subsidiary 365,000 50,000
Net cash provided by financing activities 134,000 101,600
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Net increase (decrease) in cash and cash equivalents (56,189) (140,338)
Cash and cash equivalents, beginning 84,156 174,374
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Cash and cash equivalents, ending $ 27,967 $ 34,036
========== ==========
</TABLE>
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The accompanying note is an integral part of these financial statements.
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INTERNATIONAL MANAGEMENT & RESEARCH CORPORATION
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NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
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JUNE 30 , 1996
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Note 1 - The unaudited financial statements presented herein have been
prepared in accordance with the instructions to Form 10-Q and do not
include all of the information and note disclosures required by
generally accepted accounting principles. These statements should be
read in conjunction with the financial statements and notes thereto
included in the Company's Form 10-K for the year ended December 31,
1995. In the opinion of management, these financial statements
include all adjustments, consisting only of normal recurring
adjustments, necessary to summarize fairly the Company's financial
position and results of operations. The results of operations for
the Six month period ended June 30, 1996 may not be indicative of
the results that may be expected for the year ending December 31,
1996.
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Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Liquidity and Capital Resources
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The Company is essentially a holding company. Except for certain
management services provided to Biosonics, Inc. ("Biosonics"), a subsidiary of
the Company, the Company presently conducts no business of its own. Aside from
the officer's salary and certain overhead expenses, substantially all of the
consolidated results of operations relate to the operations of Biosonics.
As a holding company, the Company does not have any substantial assets
other than common stock of Biosonics.
Biosonics' primary source of funds to date has been proceeds from the sale
of its securities, investment income on such proceeds and loans. Biosonics will
require additional funds in the immediate future to continue its operations.
Biosonics may receive a portion of such funds from sales of the SALITRON System.
Biosonics is considering obtaining funds through venture capital or other
private or public financing, joint venture or merger transactions, the sale of
certain assets and research and development partnership financing. Biosonics
has engaged a consultant to assist in obtaining additional funding. There is no
assurance that any such funding or other financing will be completed.
Biosonics does not have any material commitments for capital expenditures,
although Biosonics may make capital expenditures during 1996 or in connection
with the manufacture of the SALITRON and CYSTOTRON System, if funds are
available. The extent of the development or testing, if any, of Biosonics'
other devices will depend on the availability of funds.
Results of Operations
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Biosonics' development stage expenses for the six and three months ended
June 30,1996 ($250,500 and $136,432 respectively) were lower than those for the
comparable periods of the prior year ($314,316 and $155,594) due to a decrease
in funds being spent on advertising and training of tele-marketers relating to
the discontinuation of Biosonics' marketing program. The Company's professional
fees for the three months ended June 30, 1996 ($18,044) were higher than those
for the comparable period of the prior year ($12,039) due to expenses relating
to the Company's Shareholders meeting. Other development stage expenses include
primarily salaries, rent, supplies, transfer agent fees, manufacturing,
marketing, public relations and travel expenses. Biosonics' sales for the six
and three months ended June 30,1996 were $29,125 and $11,609 respectivly as
compared to $22,526 and $11,931 respectively for the same periods of the prior
year. These increases in sales resulted primarily from a change in Biosonics'
approach to marketing its SALITRON System.
7
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PART II OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
None.
(b) Reports on Form 8-K:
None.
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 thereunder duly authorized.
INTERNATIONAL MANAGEMENT &
RESEARCH CORPORATION
Date: August ______, 1996 By:
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Jack Paller, President, Chairman
(Principal Executive Officer),
Principal Financial Officer and
Principal Accounting Officer
