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Previous: BUCYRUS INTERNATIONAL INC, 10-Q, 1997-11-19 |
Next: OLD POINT FINANCIAL CORP, 8-K, 1997-11-19 |
<PAGE> 1
- --------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM 10-Q
-----------------------
X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
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
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) (Zip Code)
(215) 923-6850
---------------------------------------------------
(Registrant's telephone number including area code)
N/A
--------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Securities registered pursuant to Section 12(b) of the Act: NONE.
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, $.001 par value
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
----- ------
Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ ]
The company is unable to give an aggregate market value of the Registrant's
Common Stock due to the inactivity of the stock.
Indicate the number of shares outstanding of each of the issuers shares of
common stock, as of the latest practicable date: As of December 31st 1996,
there were outstanding 13,815,453 shares of the Registrant's Common Stock,
$.005 par value.
Documents Incorporated by Reference: None
- --------------------------------------------------------------------------------
Page 1 of 17 pages
<PAGE> 2
INTERNATIONAL MANAGEMENT & RESEARCH CORP.
INDEX
<TABLE>
<CAPTION>
Page
Number
------
<S> <C> <C>
PART I FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets:
September 30, 1997 and December 31, 1996 3
Consolidated Statements of Loss:
Three and Nine Months Ended September 30, 1997 and 1996 4
Consolidated Statements of Accumulated Deficit:
Nine Months Ended September 30, 1997 and 1996 5
Consolidated Statements of Cash Flows:
Nine Months Ended September 30, 1997 and 1996 6
Note to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II OTHER INFORMATION
Item 1. Legal Proceedings 8
Item 6. Exhibits and Reports on Form 8-K 9
Signatures
</TABLE>
2
<PAGE> 3
INTERNATIONAL MANAGEMENT & RESEARCH CORP.
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS
Unaudited
SEPTEMBER DECEMBER
30, 1997 31, 1996
------------------ ------------------
<S> <C> <C>
Current Assets
Cash $ 21,461 $ 7,138
Accounts receivable 440 -
Note receivable 37,000 37,000
------------------ -----------------
Total assets $ 58,901 $ 44,138
================== =================
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities
Accounts payable and accrued expenses $ 428,125 $ 395,286
Due to affiliates 62,146 15,677
------------------ -----------------
Total current Liabilities 490,271 410,963
------------------ -----------------
Shareholders' deficit
Common stock - $.005 par value, 50,000,000 shares 63,801 63,801
authorized 12,760,140 shares issued and outstanding
Capital in excess of par value 1,072,812 1,072,812
Accumulated deficit (1,567,983) (1,503,438)
------------------ -----------------
Total shareholders' deficit (431,370) (366,825)
------------------ -----------------
Total liabilities and shareholders, deficit $ 58,901 $ 44,138
================== =================
</TABLE>
- --------------------------------------------------------------------------------
The accompanying note is an integral part of these financial statements.
3
<PAGE> 4
INTERNATIONAL MANAGEMENT & RESEARCH CORP.
CONSOLIDATED STATEMENTS OF LOSS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED THREE MONTHS
SEPTEMBER 30, ENDED
SEPTEMBER 30,
1997 1996 1997 1996
------------------ ----------------- -------------- ----------------
<S> <C> <C> <C> <C>
Other expenses
Professional fees $ 24,639 $ 7,018 $ 6,888 $ 2,353
General and administrative expenses 41,054 79,756 11,992 11,735
------------------ ----------------- -------------- ----------------
Total other expenses 65,693 86,774 18,880 14,088
Investment and other income
Investment income - 85,000 - 85,000
Interest income 1,148 14,722 383 3,320
Other income - - - -
------------------ ----------------- -------------- ----------------
Total investment and other
income 1,148 99,722 383 88,320
------------------ ----------------- -------------- ----------------
Net loss $ (64,545) $ 12,948 $ (18,497) $ 74,232
================== ================= ============== ================
Loss per common share ($.00) $.00 ($.00) $.00
</TABLE>
- --------------------------------------------------------------------------------
The accompanying note is an integral part of these financial statements.
4
<PAGE> 5
INTERNATIONAL MANAGEMENT & RESEARCH CORP.
CONSOLIDATED STATEMENTS OF ACCUMULATED DEFICIT
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
1997 1996
-------------------- ---------------------
<S> <C> <C>
Balance - Beginning of the period $ (1,503,438) $ (1,503,386)
Net (Loss) Gain for the period (64,545) 12,948
-------------------- ---------------------
Balance - End of the period $ (1,567,983) $ (1,490,438)
==================== =====================
</TABLE>
- --------------------------------------------------------------------------------
The accompanying note is an integral part of these financial statements.
5
<PAGE> 6
INTERNATIONAL MANAGEMENT & RESEARCH CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
1997 1996
---------------------- ---------------------
<S> <C> <C>
Cash flows from operating activities
Net income (loss) $ (64,545) $ 12,948
---------------------- ---------------------
Adjustments to reconcile net loss to net cash used in
operating activities
Change in
Accounts receivable (440) 0
Increase in notes receivable 0 60,085
Prepaid expenses and other current assets 0 4,968
Accounts payable and accrued expenses 32,839 47,906
Due to affiliate 46,469 24,571
---------------------- ---------------------
Total adjustments 78,868 137,530
---------------------- ---------------------
Net cash provided by (used in) operating activities 14,323 150,478
---------------------- ---------------------
Cash flows from financing activities
Principal payments of notes payable - (231,000)
---------------------- ---------------------
Net cash provided by (used in) financing activities - (231,000)
---------------------- ---------------------
Net increase (decrease) in cash and cash equivalents 14,323 (80,522)
Cash and Cash equivalents, beginning 7,138 83,895
---------------------- ---------------------
Cash and cash equivalents, ending $ 21,461 $ 3,373
====================== =====================
Schedule of noncash financing transactions:
In 1996, the company forgave notes and accrued interest
receivable from Biosonics, Inc. totaling $379,968 in
exchange for Biosonics, Inc. assuming liability of the
Company.
</TABLE>
- --------------------------------------------------------------------------------
The accompanying note is an integral part of these financial statements.
6
<PAGE> 7
INTERNATIONAL MANAGEMENT & RESEARCH CORP.
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
- --------------------------------------------------------------------------------
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 annual report
for the year ended December 31, 1996. 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 nine-month period ended September
30, 1997 may not be indicative of the results that may be
expected for the year ending December 31, 1997.
NOTE 2 The 1996 consolidated financial statements include the
accounts of International Management & Research
Corporation and its wholly-owned subsidiary IMRC Holdings,
Inc. (IMRCH). In accordance with guidelines established
by the United States Securities and Exchange Commission,
the 1996 financial statements prior to the period ending
December 31, 1996 also include the accounts of Biosonics,
Inc., which the Company had majority ownership of until
September 1996. All intercompany balances and
transactions have been eliminated.
- --------------------------------------------------------------------------------
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS.
Liquidity and Capital Resources
During the period ending September 30, 1996, Biosonics, Inc. ("Biosonics")
increased its authorized shares and issued new shares to numerous individuals,
primarily in exchange for debt, and from the conversion of preferred stock,
IMRCH's ownership of common stock of Biosonics decreased to less than 50%. The
Company through its wholly owned subsidiary IMRCH owned 110,138,930 shares or
38.26% of Biosonics common stock. Accordingly IMRC is no longer able to
consolidate with Biosonics' financial statements. Financial statements prior to
the period of September 30, 1996 include consolidated financial statements with
Biosonics, Inc.
The Company is essentially a holding company. Except for certain management
services provided to Biosonics, the company presently conducts no business of
its own. Aside from certain overhead expenses, substantially all of the
consolidated results of operations in 1996 relate to the operations of
Biosonics. As previously noted, the Company's 1997 financial statements do not
include the accounts of Biosonics.
In his capacity as an executive officer of IMRC, Mr. Paller deferred his salary
from IMRC for the years ended December 31, 1989 through 1996, including $42,000
of deferred salary per year for the years ended December 31, 1994, 1995 and
1996
As a holding company, the Company does not have any substantial assets other
than common stock of Biosonics.
Results of Operations
The Company had no operating activities except for certain services provided in
connection with IMRCH's holding of Biosonics' common stock, as well as legal
and accounting expenses related to reporting matters under federal securities
laws.
IMRC loaned $17,000 to a non-affiliated party of the company, thereby
generating interest income at 9% per annum, from this loan.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES.
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None
8
<PAGE> 9
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
*3.1 Articles of Incorporation (Exhibit to Registrant's
Registration Statement on Form 10 ["Form 10"]
*3.5 By-laws of Registrant, as amended. (Exhibit to
Registrant's Form 10 ["Form 10"]
27 Financial Data Schedule
(b) Reports on Form 8-K:
None
- -------------------------------------
* Incorporated by reference
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 CORP.
Date: November 17 , 1997 By: /s/Jack Paller
----------- --------------------
Jack Paller, President, Chairman
(Principal Executive Officer),
Principal Financial Officer and
Principal Accounting Officer and
Sole Director
9
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000740892
<NAME> INTERNATIONAL MANAGEMENT & RESEARCH CORPORATION
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 21,461
<SECURITIES> 0
<RECEIVABLES> 37,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 58,901
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 58,901
<CURRENT-LIABILITIES> 490,271
<BONDS> 0
0
0
<COMMON> 63,801
<OTHER-SE> (431,370)
<TOTAL-LIABILITY-AND-EQUITY> 58,901
<SALES> 0
<TOTAL-REVENUES> 1,148
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 65,693
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,314
<INCOME-PRETAX> (64,545)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (64,545)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
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