UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form 10-QSB
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 (Fee Required)
For the quarterly period ended December 31, 1291
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 (No Fee Required)
For the transition period from -------- to --------
Commission file number 0-15179
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NEUROTECH CORPORATION
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(Name of small business issuer in its charter)
Delaware 06- 1100063
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(State of incorporation (I.R.S. Employer
or organization) Identification No.)
45 Orchard Street, Manhasset, New York 11030
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(Address of principal executive offices) (Zip Code)
Issuer's telephone number: (516) 869-9663
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(Not applicable)
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(Former name, former address and former fiscal
year if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 of 15(d) of the Exchange Act during the past 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 ( )
19,508,748 shares of issuer's common stock, $.Ol par value, were outstanding
at June 30, 1994.
<PAGE>
NEUROTECH CORPORATION AND SUBSIDIARY
Index
December 31, 1995
Page
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Consolidated balance sheet........................ 3
December 31, 1995
Consolidated statements of income................. 4
Three and six months ended
December 31, 1995 and 1994
Consolidated statements of cash flows............. 5
Three and six months ended
December 31, 1995 and 1994
Notes to consolidated financial statements........ 6
December 31, 1995
Item 2. MANAGEMENT'S DISCUSSION & ANALYSIS OF
FINANCIAL CONDITION & RESULTS OF OPERATION 7
PART II - OTHER INFORMATION 8
SIGNATURES 9
<PAGE>
NEUROTECH CORPORATION AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
December 31, June 30,
1995 1995
------------ ---------
<CAPTION>
ASSETS
<S> <C> <C>
Current Assets:
Prepaid Expenses $6,500 $6,500
Current assets attributable
to discontinued operations 104,474 128,617
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Total current assets 110,974 135,117
Property and Equipment
attributable to discontinued
operations, net 9,835 23,297
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$120,809 $158,414
======== ========
<CAPTION>
LIABILITIES &
SHAREHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Due to affiliate $137,702 $69,099
Current liabilities attributable
to discontinued operations 129,704 67,237
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Total current liabilities 267,406 136,336
Shareholders' equity:
Common stock, par value $.Ol/share;
20,000,000 shares authorized;
19,608,748 shares outstanding 196,088 196,088
Additional paid-in-capital 4,004,376 4,004,376
Retained deficit (4,197,061) (4,028,386)
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3,403 172,078
(Less) treasury stock, at cost (150,000) (150,000)
Total shareholders' equity (deficit) (146,597) 22,078
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$120,809 $158,414
========= ========
</TABLE>
The accompanying notes to the consolidated financial statements are an
integral part of these statements and should also be read in conjunction
with those notes which accompanied the Company's annual report.
<PAGE>
NEUROTECH CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31 December 31
1995 1994 1995 1994
------ ------ ------ ------
<S> <C> <C> <C> <C>
Net sales $0 $0 $0 $0
Cost of sales 0 0 0 0
------- ------- ------- -------
Gross profit 0 0 0 0
Selling, general &
administrative expenses 24,695 24,187 106,695 94,028
------- ------- ------- -------
Loss from continuing
operations (24,695) (24,187) (106,695) (94,028)
Loss from discontinued
operations (37,193) (103,236) (61,980) (323,163)
------- ------- ------- -------
Net loss ($61,888) ($127,423) ($168,675) ($417,191)
Loss per share from
continuing operations ($0.01) ($0.01)
Loss per share from
discontinued operations ($0.01) ($0.01)
Net loss per share 0 ($0.01) ($0.01) ($0.02)
Weighted average number
of common shares
outstanding 19,608,748 19,608,748 19,608,748 19,608,748
</TABLE>
The accompanying notes to consolidated financial statements are an integral
part of these statements and should also be read in conjunction with those
notes which accompanied the Company's annual report.
<PAGE>
NEUROTECH CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31 December 31
1995 1994 1995 1994
------ ------ ------ ------
<S> <C> <C> <C> <C>
Cash flows from operating
activities
Net loss ($61,888) ($127,423) ($168,675) ($417,191)
Changes in operating assets
liabilities
Inventory 0 (303,113) 0 (164,102)
Due to affiliate 24,695 485,786 68,603 272,715
Discontinued operations 37,193 (55,250) 100,072 308,578
------- ------- ------- -------
Net increase (decrease) in
cash & cash equivalents $0 $0 $0 $0
Cash & cash equivalents,
beginning of period $0 $0 $0 $0
------ ------- ------- -------
Cash & cash equivalents,
end of period $0 $0 $0 $0
</TABLE>
The accompanying notes to the consolidated financial statements are an
integral part of these statements and should also be read in conjunction
with those notes which accompanied the Company's annual report.
<PAGE>
NEUROTECH CORPORATION AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31,1995
(UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and the instructions to Form IO-QSB and
article 10 of Regulation S-X. Accordingly, they do not include all
information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments considered necessary for a fair presentation have been
included. Operating results for the six month period ended December 31,
1995 are not necessarily indicative of results that may be expected for
the year ending June 30, 1996. For further information, refer to the
consolidated financial statements and footnotes, thereto included in the
Company's annual report on Form 10-KSB for the year ended June 30, 1995.
In August 1996, the Company determined to discontinue its previous core
businesses, manufacturing intracranial pressure monitoring systems, custom
delay lines and visual systems. The operations, assets and liabilities of
these previous core businesses are reported as discontinued operations or
as attributable thereto in the accompanying financial statements. The
accompanying proforma financial statements have been reclassified accordingly.
In the course of the annual audit for the year ended June 30, 1995, various
corrections and adjustments to the fmancial records were deemed necessary.
Due to the inadvertent omission of this data, the previously issued 10-QSB
is being amended by this filing.
<PAGE>
NEUROTECH CORPORATION AND SUBSIDIARY
Management's Discussion and Analysis of Financial
Condition and Results of Operations
As disclosed in Notes 1, 6C and 7A, of the Company's annual report 10-KSB
for the year ended June 30, 1995 filed herewith:
a) The Company determined to discontinue its previous core businesses.
b) Effective June 1, 1994, the Company through the acquisition of a 49
bed acute care hospital and an affiliated home health care agency
both located in Jasper, Texas, has commenced a new line of business.
c) Pursuant to a stock purchase agreement on June 28, 1994 is also in
the business of distribution of non-ozone depleting flammable
refrigerant products.
If applicable, net sales from continuing operations resulted from the only
sale to date of refrigerant products. Future sales of refrigerant products
are dependent upon various factors and the ability of the Company to provide
adequate financial resources for same. In that regard, the Company is
actively seeking investors.
Effective June 1, 1996, revenues from continuing operations will be provided
through its health care operations. The subsidiary which owns the hospital
is currently in default on certain obligations arising from the acquisitions.
In addition, the Company does not presently have substantial working capital
reserves. Future operations of the health care operations could be
significantly impacted by this present lack of liquidity.
Management is actively seeking to restructure its present financial
obligations.
Selling, general and administrative expenses are comprised of various
one-time charges relating to the acquisition and start-up of the health care
operations as well as certain developmental and marketing costs relating to
the refrigerant products.
Expenditures attributable to refrigerant products are minimal due to the
Company's lack of financial resources. Effective June 1, 1996, selling,
general and administrative expenses will consist of predominately the
health care operations solely until such time as financial resources warrant
otherwise.
Effective August, 1996, operations and related cash flows from discontinued
operations are expected to be minimal.
<PAGE>
NEUROTECH CORPORATION AND SUBSIDIARY
PART 11 - OTHER INFORMATION
Item 1 Legal Proceedings
In November, 1993 the Company and it's former legal counsel
have agreed to discontinue their respective lawsuits against
each other, with full releases being exchanged.
Items 2-5 Inapplicable
Item 6 Exhibits and Reports on Form 8-K
(a) Exhibits None
(b) Reports on Form 8-K None
(Balance of this page left blank intentionally)
<PAGE>
NEUROTECH CORPORATION AND SUBSIDIARY
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
NEUROTECH CORPORATION
BY: /s/ Bernard Artz
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Chairman of the Board
January 28, 1997
