U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [Fee Required]
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [No Fee Required]
For the Quarter Ended August 31, 1995
Commission file number 1-10069
ENVIRONMENTAL TESTING TECHNOLOGIES, INC.
(formerly Peripheral Systems, Inc.)
Washington
(State of Incorporation)
7500 Perimeter Road South
Seattle, WA
(Address of principal executive offices)93-0845837
(IRS Employer ID No.)
98108
(Zip Code)
206-763-1919
(Telephone Number)
Check whether the registrant filed all documents and reports to be
filed by Section 12, 13 or 15(d) of the
Securities Exchange Act of 1934 after the distribution of
securities under a plan confirmed by the bankruptcy
court.
YES X NO
Common stock, no par value, $1,481,315 shares outstanding as of
10/31/95
Table of Contents Page
PART I - Financial Information
Item 1 Condensed Consolidated Balance
Sheet
Condensed Consolidated Statement of
Operations
Notes to Financial Statement
Item 2 Management Discussion & Analysis
of Financial Condition & Results
of OperationsPage No.
1
2
3
4PART II - Other
Item 1 Legal Proceedings
Item 2 Reports on Form 8K
Signatures
5
5
6
ODDHEADER: Environmental Testing Technologies, Inc. & its subsidiaries
Part I - Financial Information
Environmental Testing Technologies, Inc. & its subsidiaries
Balance Sheet
8/31/95
Unaudited5/31/95
Audited
ASSETS
Current Assets
Cash
Accounts Receivable - net of
allowances
Other current assets
TOTAL current assets
Property, Plant & Equipment
Building & leasehold improvements
Machinery & equipment
Vehicles & office trailers
Furniture & fixtures
Less accumulated depreciation
Property, Plant & Equip. (Net)
Other Assets
Deposits
$11,600
211,324
51,421
274,348
115,912
1,952,582
242,052
60,405
(1,670,70
2)
700,249
20,009
$12,659
535,299
225,570
773,528
126,178
2,205,328
325,943
86,112
(1,735,668
)
1,007,893
30,058
TOTAL ASSETS$994,606$1,811,479LIABILITIES & STOCKHOLDER'S DEFICIT
Current Liabilities
Line of Credit
Accounts Payable
Accrued Liabilities
Current portion of long term debt
TOTAL current liabilities
Long Term Debt
Income Tax Payable
Redeemable Preferred Stock
Stockholder's (Deficit) Equity
Preferred Stock
Common Stock (no par value)
Accumulated deficit
TOTAL Stockholder's Deficit
$109,579
339,825
185,241
575,507
1,210,152
229,874
175,000
176,958
100,000
617,557
(1,514,93
5)
(797,398)
522,452
370,284
164,473
529,041
1,786,250
222,389
175,000
176,958
200,000
608,557
(1,357,675
)
(549,118)TOTAL LIABILITIES & STOCKHOLDER'S
DEFICIT$994,606$1,811,479
Environmental Testing Technologies, Inc. & its subsidiaries
Statement of Operations
3 Months
ended3 Months
Ended8/31/958/31/94 Sales
- - Cost of Sales
Gross Profit$537,706
434,678
103,028$988,965
625,454
363,511
Operating Expenses:
Selling, General &
Administrative
$226,056
231,552Operating Income <Loss>(123,028)131,959Other Income <Expense>:
Interest
Net Loss on Discontinued
Operations
Gain on Sale of Discontinued
Business
(54,817)
(22,554)
43,139
(26,921)
(4,451)
- - -
Total Income <Loss> Before
Income Taxes(157,260)100,587Federal Income Tax00Net Income
<Loss>($157,260)(100,587)
Net Income <Loss> Per ShareNIL01Weighted Average Shares
Outstanding1,472,3151,386,315
Notes to Condensed Consolidated Financial Statements
Item 1 - The unaudited consolidated financial statements and
related notes have been prepared pursuant to the rules and
regulations of the Securities and Exchange Commission.
Accordingly, certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been omitted
pursuant to such rules and regulations. The accompanying
consolidated financial statements and related notes should be read
in conjunction with the audited financial statements of the
Company, and notes thereto, for the fiscal year ended May 31,
1995.
The information furnished reflects, in the opinion of management,
all adjustments, consisting of normal recurring accruals,
necessary for a fair presentation of the results of the interim
periods presented.
Item 2 - Management's Discussion and Analysis of Financial
Condition & Results of Operations
Sales for quaters ended August 31, 1995 and August 31, 1994, were
$537,706 and $988,965 respectively. The sales reductions of
$451,259 were the result of an abnormal decline in business volume
at X-Ray,Inc., coupled with the near disappearance of TankTek
business caused by former mangements leaving the Company and
taking the business with it. In 1994 TankTek enjoyed a large
Alaskan contract that did not reoccur in 1995.
Cost of Sales for the Quarters ended August 31, 1995,and August
31, 1994, were $434,678 and $625,454 respectively. These cost of
sales resulted in gross profits of $103,028 in 1995 and $363,511
in 1994. The loss of gross profit is directly attributable to the
lower sales volumes between this time period.
Selling, general and administrative expenses remained relativel
constant between this time period.
Interest expense increased in 1995 over 1994 due to increased
borrowings to cover the operating losses, as well as financing new
equipment for TankTek's expected sales increases.
Losses for discontinued operations of $22,554, and gains on sales
of disposed assets of $43,139, are directly attributable to the
sale of Accu-Inspect, Inc. in June 1995. Future gains on the sale
will be recorded as realized with the collection of the
outstanding notes totaling $202,000.
Net income loss for the quarters ended Augsut 31, 1995 were
$157,260 and $100,587 in 1994. The loss incurred was caused by
the Company's failure to achieve the sales levels anticipated.
PART II - Other Information
1. Legal Proceedings.
The Company is not a party to any material pending legal
proceedings other than ordinary routine litigation incidental to
the business, except for a suit filed by Mr. Anton Kurtz, the
owner of the Class A Preferred Stock. ETT is one of the
defendents in this suit and intends to vigorously defend against
this suit on a number of grounds and does not expect Mr. Kurtz to
prevail in his assertions.
Item 6 Exhibits and Reports on Form 8K
No reports on Form 8K were filed for the 3 month period ending
August 31, 1995.
Signatures
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf, by the
undesigned, thereunto duly authorized:
ENVIRONMENTAL TESTING TECHNOLOGIES, INC.
__________________________________________________________________
Date George B. Maitland, VP Finance
__________________________________________________________________
Date Lee G. Connel, Director
