U. S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB -- Quarterly or Transitional Report
(Added by 34-30968, eff. 8/13/93, as amended)
(Mark One)
[ X ] Quarterly Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1997
[ ] Transition Report Under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to ________________ to _________________
Commission file number 0-17032
PROTEIN DATABASES, INC.
- -----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 13-3186604
- --------------------------------- -----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
405 Oakwood Road, Huntington Station, New York 11746
- ---------------------------------------------- ----------
(Address of principle executive offices) (Zip Code)
(516) 673-3939
- -------------------------
Issuer's telephone number
(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 or 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___.
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.
Class Outstanding at June 30, 1997
- --------------------------- -----------------------------
Common Stock $.01 par value 1,459,724
<PAGE>
PROTEIN DATABASES, INC.
BALANCE SHEET
June 30,1997
( UNAUDITED )
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $145,274
Accounts receivable 139,277
Inventory 28,572
Prepaid expenses 8,672
--------
Total current assets 321,795
--------
PROPERTY AND EQUIPMENT-NET 154,365
--------
OTHER ASSETS 9,020
--------
TOTAL $485,180
========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $87,967
Accrued expenses 58,064
Unearned revenue 24,520
--------
Total current liabilities 170,551
--------
STOCKHOLDERS' EQUITY:
Common stock 14,597
Additional paid-in capital 8,519,636
Accumulated deficit (8,219,604)
----------
Stockholders' Equity 314,629
----------
TOTAL $485,180
==========
<PAGE>
PROTEIN DATABASES, INC.
CONDENSED STATEMENTS OF OPERATIONS
( UNAUDITED )
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------- ------------------
1997 1996 1997 1996
---- ---- ---- ----
Revenues $245,430 $547,436 $780,382 $909,349
-------- -------- -------- --------
Expenses
Cost of sales 142,374 173,127 236,652 349,089
General
and administrative 140,980 175,887 294,853 334,081
Marketing
and sales 132,056 187,725 268,346 388,351
Research
and development 83,293 138,992 184,474 289,715
------- ------- ------- -------
Total expenses 498,703 675,731 984,325 1,361,236
------- ------- --------- ---------
Net (loss) $(253,273) $(128,295) $(203,943) $(451,887)
======== ======== ========= ========
Net income (loss)
per common share $(.17) $(.09) $(.14) $(.31)
======== ======== ======== ========
Weighted average number of
shares used in computing
earnings per share
1,459,724 1,459,724 1,459,724 1,459,724
========= ========= ========= =========
<PAGE>
PROTEIN DATABASES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
( UNAUDITED )
For the Six Months
Ended June 30,
--------------------
1997 1996
---- ----
Cash flow from operations:
Net income (loss) $(203,943) ($451,887)
Adjustments to reconcile
net income to net cash
provided by
(used in) operations:
Depreciation and amortization 48,000 48,000
Changes in operating assets
and liabilities:
Accounts receivable 224,568 23,878
Inventory 30,911 19,930
Prepaid expenses
and deposits 2,641 (4,048)
Accounts payable and
accrued expenses (78,761) (77,769)
Unearned revenue (18,066) 4,641
-------- --------
Net cash provided by operations 5,350 (437,255)
======== ========
Cash flows from (investments in)
sale of property and
equipment, net 20,572 (60,867)
-------- --------
Increase (decrease) in cash
and cash equivalents 25,922 (498,122)
-------- --------
Cash and cash equivalents,
beginning of period 119,352 778,718
-------- --------
Cash and cash equivalents,
end of period $145,274 $280,596
======== ========
<PAGE>
( Unaudited )
PROTEIN DATABASES, INC.
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1997
NOTE 1 - GENERAL:
The accompanying unaudited financial statements include all adjustments,
consisting of normal recurring accruals, which are, in the opinion of
management, necessary for a fair statement of the results of the interim
periods. The statements have been prepared in accordance with the
requirements for quarterly reports on Form 10-QSB and, therefore, do not
include all disclosures or financial details required by generally
accepted accounting principles. These condensed financial statements
should be read in conjunction with the financial statements and the notes
thereto included in the Company's Annual Report on Form 10-KSB for the
year ended December 31, 1996.
The results of operations for the interim periods are not necessarily
indicative of results to be expected for a full year's operations.
<PAGE>
PROTEIN DATABASES, INC.
-----------------------
Management's Discussion and Analysis of Operations
--------------------------------------------------
Liquidity and Capital Resources
The Company's present liquidity position is critical. During the year ended
December 31, 1996, the Company had a net loss from operations of $811,323.
As of June 30, 1997, the Company's total current assets were $321,795
(including cash of $145,274) and its total liabilities were $170,551
(see accompanying Balance Sheet).
On July 21, 1997, the Company announced that it had entered into a
an agreement to sell all of its intellectual property, fixed assets
and property, plant and equipment for $1 million to Bio-Rad Laboratories,
Inc. of Hercules, California. The transaction is subject to the approval of
the Company's shareholders at a meeting expected to be held in the fall of
1997 and certain other conditions. Shareholders will also be asked at the
meeting to approve the dissolution and liquidation of the Company following
consummation of the sale to Bio-Rad. In contemplation of the Bio-Rad
transaction, the Company has ceased all development and marketing activities.
As a result of the limited amount of funds currently available to finance
the Company's operations, the report of the Company's independent
Certified Public Accountants on the Financial Statements as of December
31, 1996 contains an explanatory paragraph indicating that there is
substantial doubt about the Company's ability to continue as a going
concern.
The Company had no material commitments for capital equipment additions
at June 30, 1997.
Revenues
The Company generates revenues primarily by selling software systems
and,to a lesser extent, from contract research and development, royalties
and other income sources.
<PAGE>
PROTEIN DATABASES, INC.
--------------------------------------------------------------
Management's Discussion and Analysis of Operations (Continued)
1997's revenues include approximately $280,000 of revenue from Toyobo Co. Ltd.,
("Toyobo"), the exclusive distributor of the Company's products in Japan,
which amount essentially constitutes all of Toyobo's purchase commitments
from the Company for 1997.
Expenses
The Company's cost of sales decreased in the three months and six months ended
June 30, 1997 from the comparable periods of the prior year as a result of
lower costs for supplies and equipment and fewer employees in the department.
The Company's sales and marketing expenses decreased in the three months
and six months ended June 30, 1997 from the comparable periods in the prior
year principally as a result of lower salary and related expenses, due to
two less employees, and lower costs for supplies, travel and promotional
expenses.
The decrease in the Company's research and development expenses in the
three months and six months ended June 30, 1997 from the comparable periods
in the prior year was primarily attributable to fewer employees in the
department and lower costs for supplies and travel expenses.
<PAGE>
Part II - Other Information
Item 6. Exhibits and Reports on Form 8-K
( a ) Exhibits: EX-27.
( b ) Reports on Form 8-K: There were no reports on
Form 8-K filed by the Company during the three months
ended June 30, 1997.
<PAGE>
Signatures
In accordance with the requirements of the Securities and Exchange Act of
1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Protein Databases, Inc.
-----------------------
(Registrant)
Dated July 31, 1997 S/Stephen H. Blose
Stephen H. Blose
Director, President and
Chief Executive Officer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PROTEIN
DATABASES, INC.'S JUNE 30, 1997 FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<NAME> PROTEIN DATABASES, INC.
<CIK> 0000770131
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 145,274
<SECURITIES> 0
<RECEIVABLES> 139,277
<ALLOWANCES> 0
<INVENTORY> 28,572
<CURRENT-ASSETS> 321,795
<PP&E> 959,466
<DEPRECIATION> (805,101)
<TOTAL-ASSETS> 485,180
<CURRENT-LIABILITIES> 170,551
<BONDS> 0
0
0
<COMMON> 14,597
<OTHER-SE> 300,032
<TOTAL-LIABILITY-AND-EQUITY> 485,180
<SALES> 780,382
<TOTAL-REVENUES> 780,382
<CGS> 156,290
<TOTAL-COSTS> 984,323
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (203,943)
<INCOME-TAX> 0
<INCOME-CONTINUING> (203,943)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (203,943)
<EPS-PRIMARY> .14
<EPS-DILUTED> .14
</TABLE>
