U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB AMENDED
(Mark One)
x 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 February 28, 1998
Commission file number 1-10069
ENVIRONMENTAL TESTING TECHNOLOGIES, INC.
Washington 93-0845837
(State of Incorporation) (IRS Employer ID No.)
7500 Perimeter Road South
Seattle, Washington 98108
(Address of principal executive offices) (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 ____ NO __X__
10Q for Quarter Ending 2/28/96, 8/31/96, 11/30/96 and 2/28/97 were not filed.
Common stock, no par value, $1,682,065 shares outstanding as of
03/29/98.
<PAGE>
Table of Contents Page
PART I - Financial Information
Page No.
Item 1 Condensed Consolidated Balance Sheet 3
Condensed Consolidated Statement of Operations 4
Notes to Financial Statement 5
Item 2 Management Discussion & Analysis of 5
Financial Condition & Results of Operations
PART II - Other
Legal Proceedings 5
PART III - Working Capital 6
PART IV - Stockholders' Equity 6
PART V - Reports on Form 8K 6
Signatures 6
</PAGE>
<PAGE>
Part I - Financial Information
Environmental Testing Technologies, Inc. & its subsidiaries
Balance Sheet
02/28/98 5/31/97
Unaudited Audited
- -------------------------------------------------------------------
ASSETS
Current Assets
Cash $ -0- $ -0-
Accounts Receivable
- net of allowances 485,438 247,684
Other current assets 127,160 35,037
------------ ------------
TOTAL current assets 612,598 282,721
Property, Plant & Equipment Assets
Property, Plant & Equipment 2,585,058 2,373,015
Less accumulated depreciation <2,032,151> <1,932,241>
------------ ------------
Property, Plant & Equip. (Net) 552,907 440,774
Other Assets
Deposits 22,654 18,548
------------- -------------
TOTAL ASSETS $1,188,159 $742,043
LIABILITIES & STOCKHOLDER'S DEFICIT
Current Liabilities
Line of Credit $ 318,204 $ 175,679
Accounts Payable 458,595 250,778
Accrued Liabilities 213,297 142,500
Current portion of long term debt 632,424 604,511
----------- -----------
TOTAL current liabilities 1,622,520 1,173,468
Long Term Debt 103,278 226,551
Redeemable Preferred Stock 176,959 176,958
Stockholder's (Deficit) Equity
Preferred Stock 100,000 100,000
Common Stock (no par value) 752,557 677,557
Accumulated deficit <1,567,173> <1,612,491>
------------ ------------
TOTAL Stockholder's Deficit <714,596> <834,934>
TOTAL LIABILITIES & STOCKHOLDER'S DEFICIT $1,188,159 $742,043
</PAGE>
<PAGE>
Environmental Testing Technologies, Inc. & its subsidiaries
Statement of Operations
<TABLE>
3 Months Ended 9 Months Ended
02/28/98 02/28/97 02/28/98 02/28/97
<S> <C> <C> <C> <C>
Sales $896,212 $367,805 $2,231,498 $1,309,002
Cost of Sales 609,624 280,826 1,495,469 944,184
- -----------------------------------------------------------------------
Gross Profit $286,588 $ 86,979 $ 736,029 $ 364,818
Operating Expenses:
Selling, General
& Administrative $197,975 $160,449 $ 538,573 $ 507,197
Operating Income
<Loss> 88,613 <73,470> 197,456 68,908
Other Income <Expense>:
Interest 57,926 38,526 146,759 109,904
Other Expenses 738 --- 5,358 15,246
- ------------------------------------------------------------------------
Total Income <Loss>
Before Income Taxes 29,953 <111,996> 45,339 <267,529>
Federal Income Tax -0- -0- -0- -0-
- ------------------------------------------------------------------------
Net Income <Loss> 29,953 <111,996> 45,339 <267,529>
Net Income Per Share
<Loss> .01 <.07> .02 <.16>
Weighted Average
Shares Outstanding $1,682,065 $1,598,315 $1,682,065 $1,598,315
</TABLE>
</PAGE>
<PAGE>
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, 1997.
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 the nine months ended February 28, 1998 and February 28,
1997, were $2,231,498 and $1,309,002 respectively. The sales increase
of $922,496, or 70%, was attributable to a resurgence in basic
nondestructive testing revenues stimulated by the current demand
for increase aircraft shipments by the Boeing Company, and by revenues
generated from the acquisition of Worldwide Tank Services assets in
July 1997.
Cost of sales for the six months ended February 28, 1998 and
February 28, 1997, were $1,495,469 and $944,184 respectively. The
cost of sales resulted in gross profits of $736,029 and $364,818
respectively, or a 101% increase in gross profits in 1998 over the
comparable 1997 period. The increase in gross profit is attributable
to higher sales levels and improved utilization of manpower as well
as improved pricing.
Selling, general and administrative expenses increased from $507,197
for the nine months ended February 28, 1997, to $538,573 for the nine
months ended February 28, 1998. This increase was related to increased
marketing efforts introducing the tank lifting business to the marketplace.
The increase of $31,376 is a 6% increase and compares favorably with the
70% increase in sales for the comparable period.
Other expense is principally interest expense and late payment penalties.
This increased from $125,150 in 1997 to $152,117 in 1998. The increase
is due to the financing costs of higher accounts receivable levels created
by higher revenue levels in 1998 as compared to 1997.
Net income <loss> for the nine months ended February 28, 1998, was
$45,339 which compares favorably to the February 28, 1997, loss of
<$267,529>. The improved overall profitability is attributable to higher
revenue levels while holding selling, general and administrative expenses
at a relative constant period to period comparable level.
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.
PART III - Working Capital
The continuing lack of working capital raises substantial doubt
about the Company's ability to continue as a going concern.
The Company continues to seek new financing to cure this negative
working capital problem.
PART IV - Stockholders' Equity
The negative stockholders' equity at February 28, 1998, of <$714,596>
shows an improvement over the year ended May 31, 1997, balance of
<$834,934>. The improvement in Stockholders' equity was caused by the
profit generated for the nine month period and by the acquisition of
Worldwide Tank Services assets acquired for Common Stock valued at
$75,000.00.
The Company continues to seek new equity financing to cure this
negative working position.
PART V - Exhibits and Reports on Form 8K
Form 8K regarding a change in accountants was filed on August 15, 1997.
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:
ENVIRONMENTAL TESTING TECHNOLOGIES, INC.
March 31, 1998 s/s G.B. Maitland
- --------------------------------------------------------------------
Date George B. Maitland, VP Finance
March 31, 1998 s/s L.G. Connel
- --------------------------------------------------------------------
Date Lee G. Connel, Director
</PAGE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MONTHS
<FISCAL-YEAR-END> MAY-31-1998
<PERIOD-END> FEB-28-1998
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 485,438
<INVENTORY> 0
<CURRENT-ASSETS> 612,598
<PP&E> 552,907
<DEPRECIATION> <2,032,151>
<TOTAL-ASSETS> 1,188,159
<CURRENT-LIABILITIES> 1,622,520
<BONDS> 0
<COMMON> 752,557
176,959
100,000
<OTHER-SE> <1,567,153>
<TOTAL-LIABILITY-AND-EQUITY> 1,188,159
<SALES> 896,212
<TOTAL-REVENUES> 286,588
<CGS> 609,624
<TOTAL-COSTS> 286,588
<OTHER-EXPENSES> 58,658
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 57,926
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 29,953
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 29,953
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</PAGE>
