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 September 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 and 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.
SEPTEMBER 30, 1995: 12,274,447 SHARES.
-1-
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
J.A.M., INC.
Balance Sheets
As of September 30, 1995 with Comparative Amounts for December 31, 1994
________________________________________________________________________
<TABLE>
<CAPTION>
9/30/95 12/31/94
<S> <C> <C> <C>
Current Assets: UNAUDITED Unaudited
Cash and cash equivalents $1,581 $0
Trade accounts receivable, less
allowance for doubtful accounts
of $3,600 in 1994 and 1993 306,427 200,557
Inventories 3,286 2,814
Prepaid expenses 6,126 6,549
Deposits 5178 0
Total current assets $322,598 $209,920
Property, plant and equipment 591,255 560,570
Less: accumulated depreciation
and amortization 472,883 442,371
Net property, plant and equipment 118,372 118,199
$440,970 $328,119
</TABLE>
See accompanying notes to financial statements
-2-
J.A.M., INC.
Balance Sheets
As of September 30, 1995 with Comparative Amounts for December 31, 1994
__________________________________________________________________________
<TABLE>
<CAPTION>
9/30/95 12/31/94
<S> <C> <C>
Current Liabilities: UNAUDITED Unaudited
Loan - Officer $352,832 $323,504
Other 175,000 135,000
Binghamton 100,000 0
Checks drawn in excess of deposits 0 34,370
Billing in excess of costs 0 19,262
Accrued payroll - Officer 23,265 0
SARSEP 0 0
Account payable - trade 97,107 155,564
Payroll taxes 6,364 53,075
Accrued expenses 8,594 12,784
Total current liabilities $763,162 $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 (3,472,163) (3,555,411)
Total stockholders' equity ($322,192) ($405,440)
$440,970 $328,119
</TABLE>
See accompanying notes to financial statements
-3-
J.A.M., INC.
Statements of Operations
For the Nine-Month Interim Period Ended
September 30, 1995 with Comparative Amounts to September 30, 1994
____________________________________________________________________
<TABLE>
<CAPTION>
Quarter Quarter Nine Nine
<S> <C> <C> <C> <C>
Ended Ended Months Months
9/30/95 9/30/94 9/30/95 9/30/94
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net sales $461,485 $92,074 $1,132,401 $279,730
Cost of sales 228,264 74,931 587,941 195,287
Gross profit $233,221 $17,143 $544,460 $84,443
Selling, general and administrative
expenses 147,652 82,345 416,701 239,435
Operating profit (loss) $85,569 ($65,202) $127,759 ($154,992)
Other income (expense):
Gain/loss on disposal of asset 0 (21,000) 5,000 (4,288)
Interest income 0 0 0 0
Interest expense (16,203) (8,107) (49,511) (15,445)
(16,203) (29,107) (44,511) (19,733)
Net earnings (loss)
before income taxes $69,366 ($94,309) $83,248 ($174,725)
Income taxes 0 374 0 748
Net earnings (loss) $69,366 ($94,683) $83,248 ($175,473)
Net earnings (loss) per common share,
based upon the weighted average
common shares outstanding during
each period $0.01 ($0.01) $0.01 ($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 Nine-Month Interim Period Ended
September 30, 1995 with Comparative Amounts to September 30, 1994
_____________________________________________________________________
<TABLE>
<CAPTION>
Nine Nine
<S> <C> <C>
Months Months
Ended Ended
9/30/95 9/30/94
(UNAUDITED) (Unaudited)
Cash flow from operating activities:
Net earnings (loss) $69,366 ($175,473)
Adjustment to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 10,754 12,813
Changes in assets and liabilities:
(Increase) decrease in:
Trade accounts receivable (72,323) (31,086)
Inventories 637
Prepaid expenses 0
Costs and estimated earnings in excess
of billings on uncompleted contracts 0
Deposits 0 0
Increase (decrease) in:
Accounts payable, trade (11,041) (67,367)
Accrued payroll, officer (8,356) 0
Accrued expenses (1,109) (20,657)
Net cash provided by (used in) operating ($12,709) ($281,133)
activities
Cash flows from investing activities:
Capital expenditures ($10,194) $48,486
Net cash used in investing activities ($10,194) $48,486
(continued)
</TABLE>
See accompanying notes to financial statements
-5-
J.A.M., INC.
Statements of Cash Flows
For the Nine-Month Interim Period Ended
September 30, 1995 with Comparative Amounts to September 30, 1994
______________________________________________________________________
<TABLE>
<CAPTION>
Nine Nine
<S> <C> <C>
Months Months
Ended Ended
9/30/95 9/30/94
(UNAUDITED) (Unaudited)
Cash flow from financing activities:
Retained earnings, current year $0 ($41,763)
Loan from miscelllaneous 17,000 109,200
Loan from shareholder 1,782 205,698
Net cash provided by financing activities $18,782 $273,135
Net increase (decrease) in cash ($4,121) $40,488
Cash and cash equivalents at beginning of period 5,703 223
Cash and cash equivalents at end of period $1,581 $40,711
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $16,203 $8,107
Income taxes $0 $374
</TABLE>
See accompanying notes to financial statements
-6-
J.A.M., INC.
Notes to Financial Statements
September 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 third quarter 1995 increased 500% from the same period in
1994 to $461,485. This $369,411 increase from $92,074 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 third quarter of 1995, the Company had a backlog of $300,000
compared to no order backlog in 1994. The Company realizes the revenues
generated in the third quarter, 1995 must be maintained in order to have
sufficient backlog to sustain operations.
Net earnings for the third quarter of 1995 totaled $69,366 compared to a
deficit of ($94,683) for the respective 1994 quarter. This $164,049
increase was largely due to the Company maintaining control of operating
expenses.
LIQUIDITY
Earnings of $69,366 for the third quarter of 1995 decreased the Company's
equity to $(322,191), compared to $(383,926) as of September 30, 1994.
At September 30, 1995, the Company did not have any working capital. Cash on
hand totaled $1,581. Net trade receivables, less allowance for doubtful
accounts of $3,600, totaled $306,427 at the end of the third 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: November 20, 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 SEPTEMBER 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> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-1-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1
<CASH> 1,581
<SECURITIES> 0
<RECEIVABLES> 310,027
<ALLOWANCES> 3,600
<INVENTORY> 3,286
<CURRENT-ASSETS> 322,598
<PP&E> 591,255
<DEPRECIATION> 472,883
<TOTAL-ASSETS> 440,970
<CURRENT-LIABILITIES> 763,162
<BONDS> 0
0
0
<COMMON> (322,192)
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 440,970
<SALES> 1,132,401
<TOTAL-REVENUES> 1,132,401
<CGS> 587,941
<TOTAL-COSTS> 1,004,642
<OTHER-EXPENSES> 44,511
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 49,511
<INCOME-PRETAX> 83,248
<INCOME-TAX> 0
<INCOME-CONTINUING> 83,248
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 83,248
<EPS-PRIMARY> 0.01
<EPS-DILUTED> 0.01
</TABLE>
