FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarter 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 from ___________________ to _______________________
Commission file number 0-15355
J.A.M., INC.
(Exact name of registrant as specified in its charter)
NEW YORK 16-1092174
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
530 WILLOWBROOK OFFICE PARK, FAIRPORT, NEW YORK 14450
(Address of principal executive offices)
(716) 385-6740
(Registrant's telephone number, including area code)
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 __________
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
JUNE 30, 1995: 12,274,447 SHARES.
-1-
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
J.A.M., INC.
Balance Sheets
As of June 30, 1995 with Comparative Amounts for December 31, 1994
________________________________________________________________________
<TABLE>
<CAPTION>
6/30/95 12/31/94
<S> <C> <C>
Current Assets: UNAUDITED Unaudited
Cash and cash equivalents $5,704 $0
Trade accounts receivable, less
allowance for doubtful accounts
of $3,600 in 1994 and 1993 234,104 200,557
Inventories 3,285 2,814
Prepaid expenses 6,126 6,549
Deposits 5178 0
Total current assets $254,397 $209,920
Property, plant and equipment 581,061 560,570
Less: accumulated depreciation
and amortization 462,129 442,371
Net property, plant and equipment 118,932 118,199
$373,329 $328,119
Current Liabilities:
Loan -- Officer $351,050 $323,504
Other 158,000 135,000
Binghamton 100,000 0
Checks drawn in excess of deposits 0 34,370
Billing in excess of costs 0 19,262
Accrued payroll--Officer 31,621 0
SARSEP 1,109 0
Account payable-trade 114,512 155,564
Payroll taxes 0 53,075
Accrued expenses 8,594 12,784
Total current liabilities $764,886 $733,559
Stockholders' Equity:
Common stock, $.01 par value.
Authorized 16,000,000 shares;
issued and outstanding 12,274,447
shares in 1995 and 1994 $122,744 $122,744
Additional paid-in capital 3,027,227 3,027,227
Accumulated deficit (3,541,528) (3,555,411)
Total stockholders' equity ($391,557) ($405,440)
$373,329 $328,119
</TABLE>
See accompanying notes to financial statements
-3-
J.A.M., INC.
Statements of Operations
For the Six-Month Interim Period Ended
June 30, 1995 with Comparative Amounts to June 30, 1994
____________________________________________________________________
<TABLE>
<CAPTION>
Quarter Quarter Six Six
<S> <C> <C> <C> <C>
Ended Ended Months Months
6/30/95 6/30/94 6/30/95 6/30/94
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net sales $537,424 $41,246 $670,916 $187,656
Cost of sales 215,080 20,360 359,677 120,356
Gross profit $322,344 $20,886 $311,239 $67,300
Selling, general and administrative
expenses 137,622 17,037 269,049 157,090
Operating profit (loss) $184,722 $3,849 $42,190 ($89,790)
Other income (expense):
Gain/loss on disposal of asset 5,000 1,100 5,000 16,712
Interest income 0 0 0 0
Interest expense -18,424 -1,640 -33,308 -7,339
-13,424 -540 -28,308 9,373
Net earnings (loss)
before income taxes $171,298 $3,309 $13,882 ($80,417)
Income taxes 0 0 0 374
Net earnings (loss) $171,298 $3,309 $13,882 ($80,791)
Net earnings (loss) per common share,
based upon the weighted average
common shares outstanding during
each period $0.01 $0.00 $0.00 ($0.01)
Weighted average number of shares 12,274,447 12,274,447 12,274,447 12,274,447
</TABLE>
See accompanying notes to financial statements
-4-
J. A.M., INC.
Statements of Cash Flows
For the Six-Month Interim Period Ended
June 30, 1995 with Comparative Amounts to June 30, 1994
_____________________________________________________________________
<TABLE>
<CAPTION>
Six Six
<S> <C> <C>
Months Months
Ended Ended
6/30/85 6/30/94
(UNAUDITED) (Unaudited)
Cash flow from operating activities:
Net earnings (loss) $171,298 $3,310
Adjustment to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 10,749 2,000
Changes in assets and liabilities:
(Increase) decrease in:
Trade accounts receivable -213,973 1,840
Inventories 121
Prepaid expenses 0
Costs and estimated earnings in excess
of billings on uncompleted contracts 0
Deposits -4,979 0
Increase (decrease) in:
Checks in excess of deposits 0
Accounts payable, trade -22,523 -18,779
Accrued expenses 7,563 203
Net cash provided by (used in) operating ($51,865) ($11,305)
activities
Cash flows from investing activities:
Capital expenditures ($17,377) $0
Sale of vehicle -5,000 0
Net cash used in investing activities ($22,377) $0
(continued)
</TABLE>
See accompanying notes to financial statements
-5-
J.A.M., INC.
Statements of Cash Flows
For the Six-Month Interim Period Ended
June 30, 1995 with Comparative Amounts to June 30, 1994
______________________________________________________________________
<TABLE>
<CAPTION>
Six Six
<S> <C> <C>
Months Months
Ended Ended
6/30/95 6/30/94
(UNAUDITED) (Unaudited)
Cash flow from financing activities:
Principal payments under long-term debt $100,000 $0
Principal payments of obligations under
capital leases 0 0
Loan from officer 6,792 -3,908
Loan from shareholder -22,000 33,800
Restricted cash converted by cash and
cash equivalents 0 0
Net cash provided by financing activities $84,792 $29,892
Net increase (decrease) in cash $10,550 $18,587
Cash and cash equivalents at beginning of period -4,847 -4,454
Cash and cash equivalents at end of period $5,703 $14,133
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $18,424 $0
Income taxes $0 $0
</TABLE>
See accompanying notes to financial statements
-6-
J.A.M., INC.
Notes to Financial Statements
June 30, 1995 and 1994
(1) Management's Representation
The information furnished herein reflects all adjustments which are, in the
opinion of management, necessary to a fair statement of the results for the
interim period.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
OPERATIONS
Net sales for the second quarter 1995 increased 1300% from the same period in
1994 to $537,424. This $496,178 increase from $41,246 for the comparable
1994 quarter was due to custom development contracts with Fortune 50 customers
in the area of interactive multimedia training.
At the end of the second quarter of 1995, the Company had a backlog of $295,000
compared to no order backlog in 1994. The Company realizes the revenues
generated in the 2nd quarter, 1995 must be maintained in order to have
sufficient backlog to sustain operations.
Net earnings for the second quarter of 1995 totaled $171,298 compared to net
profit of $3,309 for the respective 1994 quarter. This $167,989 increase was
largely due to the Company maintaining control of operating expenses.
The Company sold some assets which were reinvested in upgrading computer
resources.
LIQUIDITY
Earnings of $171,298 for the second quarter of 1995 decreased the Company's
equity to $(391,557), compared to $(247,480) as of June 30, 1994.
At June 30, 1995, the Company did not have any working capital. Cash on hand
totaled $5,704. Net trade receivables, less allowance for doubtful accounts
of $3,600, totaled $234,104 at the end of the second quarter.
In April, 1995, the Company developed a banking relationship for a line of
credit. The line of credit helped the Company deal with backlogs and advance
payments. The Company does not have any other borrowing capabilities.
PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
See Exhibit Index
(b) Reports on Form 8-K:
There were no reports on Form 8-K filed during the quarter ended June 30,
1995.
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.
J.A.M., INC.
(Registrant)
Dated: August 4, 1995 /s/ John A.Marszalek
John A. Marszalek
President, Chief Executive and
Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit
Number Description Location
27 Financial Data Schedule Filed only with EDGAR
filing, per Reg. S-K,
Rule 601(c)(1)(v)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE FOLLOWING SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S JUNE 30, 1995 FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000765449
<NAME> J.A.M., INC.
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-1-1995
<PERIOD-END> JUN-30-1995
<EXCHANGE-RATE> 1
<CASH> 5,704
<SECURITIES> 0
<RECEIVABLES> 237,704
<ALLOWANCES> 3,600
<INVENTORY> 3,285
<CURRENT-ASSETS> 254,397
<PP&E> 581,061
<DEPRECIATION> 462,129
<TOTAL-ASSETS> 373,329
<CURRENT-LIABILITIES> 764,886
<BONDS> 0
0
0
<COMMON> (391,557)
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 373,329
<SALES> 670,916
<TOTAL-REVENUES> 670,916
<CGS> 359,677
<TOTAL-COSTS> 628,726
<OTHER-EXPENSES> 28,308
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 33,308
<INCOME-PRETAX> 13,882
<INCOME-TAX> 0
<INCOME-CONTINUING> 13,882
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 13,882
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
