UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter period ended: October 31, 1999
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:# 0-14754
ELECTRIC & GAS TECHNOLOGY, INC.
(Exact Name of Registrant as specified in its Charter)
TEXAS 75-2059193
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13636 Neutron Road, Dallas, Texas 75244-4410
(Address of Principal Executive Offices) (Zip Code)
(972) 934-8797
(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 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
The number of shares outstanding of each of the Issuer's Classes
of Common Stock, as of the close of the period covered by this
report:
Common - $0.01 Par Value - 8,343,417 shares at November 28, 1999.
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
Index to Form 10-Q
For the Quarter Ended October 31, 1999
Page
Part I - Financial Information
1. Condensed Consolidated Financial Statements:
(a)Condensed Consolidated Balance Sheets as
of October 31, 1999 and July 31, 1999 3
(b)Condensed Consolidated Statements of
Operations for the three months
ended October 31, 1999 and 1998 4
(c)Condensed Consolidated Statements of
Changes in Stockholders' Equity for the
three months ended October 31, 1999 5
(d)Condensed Consolidated Statements of
Cash Flows for the three months ended
October 31, 1999 and 1998 6-7
(e)Notes to Condensed Consolidated
Financial Statements 8-12
2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 13-16
Part II - Other Information
Item 1 - Legal Proceedings 17
Item 6 - Exhibits and Reports on Form 8-K 17
Signature (pursuant to General Instruction E) 18
All other items called for by the instructions are
omitted as they are either inapplicable, not required,
or the information is included in the Condensed
Financial Statements or Notes thereto.
2
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
October 31, 1999 and July 31, 1999
ASSETS
October 31, July 31,
1999 1999
CURRENT ASSETS (Unaudited)
Cash and cash equivalents $ 270,560 $ 378,340
Certificates of deposits 1,706,413 2,810,842
Investments, market 479,234 519,646
Accounts receivable, net 1,858,382 1,606,637
Inventories 2,770,627 2,669,280
Prepaid expenses 53,717 61,906
Total current assets 7,138,933 8,046,651
PROPERTY, PLANT AND EQUIPMENT, net 1,796,279 1,797,363
OTHER ASSETS 4,516,523 3,628,276
TOTAL ASSETS $13,451,735 $13,472,290
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ 1,288,402 $ 1,731,202
Accounts payable 1,432,825 1,330,054
Accrued liabilities 249,961 276,060
Current maturities of long-term obligations 156,724 153,126
Total current liabilities 3,127,912 3,490,442
LONG-TERM OBLIGATIONS
Long-term obligations, less current
maturities 1,180,124 1,210,254
MINORITY INTEREST IN SUBSIDIARY - -
STOCKHOLDERS' EQUITY
Preferred stock, $10 par value, 5,000,000
shares authorized, 90,000 issued and
outstanding 900,000 900,000
Common stock, $.01 par value, 30,000,000
shares authorized and issued 8,343,417 83,434 83,434
Additional paid-in capital 9,258,795 9,258,795
Retained earnings 836,023 496,866
Pension liability adjustment (237,825) (237,825)
Cumulative translation adjustment (496,728) (529,676)
10,343,699 9,971,594
Reserve for preferred stock redemption (1,200,000) (1,200,000)
Total stockholders' equity 9,143,699 8,771,594
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $13,451,735 $13,472,290
See accompanying notes.
3
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended October 31, 1999 and 1998
(Unaudited)
Three months ended
October 31,
1999 1998
Sales $3,036,950 $2,864,000
Cost of goods sold 2,247,788 2,030,984
Gross profit 789,162 833,016
Selling, general and
administrative expenses 836,788 956,060
Operating profit (loss) (47,626 ) (123,044)
Other income and (expenses)
Interest, net 47,638 47,893
Minority interest in subsidiary - 2,879
Investment gain 336,861 -
Other 2,284 16,554
386,783 67,326
NET EARNINGS (LOSS) 339,157 (55,718)
Dividend on preferred stock 15,879 15,879
Net earnings (loss) applicable to
common stock $ 323,278 $ (71,597)
Earnings (loss) available per Common share:
Net income $0.04 $(0.01)
Earnings (loss) available per Common share - assuming dilution:
Net income $0.04 $(0.01)
See accompanying notes.
4
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Three months ended October 31, 1999
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
(Unaudited)
Accumulated Reserve
Other Redemption
Preferred Common Paid-in Retained Comprehensive Preferred
Stock Stock Capital Earnings Income Stock Total
Balance at July 31, 1999 $900,000 $83,434 $9,258,795 $496,866 $(767,501) $(1,200,000) $8,771,594
Net earnings 339,157 339,157
Currency translation
adjustments 32,948 32,948
Comprehensive income 372,105
Balance at October 31, 1999 $900,000 $83,434 $9,258,795 $836,023 $(734,553) $(1,200,000) $9,143,699
</TABLE>
See accompanying notes.
5
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended October 31, 1999 and 1998
(Unaudited)
Three months ended
October 31,
1999 1998
Increase (decrease) in cash:
Cash flows from operating activities:
Net earnings (loss) $ 339,157 $ (55,718)
Adjustments to reconcile net earnings (loss)
to net cash provided by operating activities:
Depreciation and amortization 51,504 48,589
Minority interest in subsidiary - (2,879)
Gain on investments (335,038) -
Changes in assets and liabilities:
Accounts receivable (251,745) 11,054
Inventories (101,347) (48,759)
Prepaid expenses 8,189 (1,240)
Other assets 54,491 298,451
Accounts payable 100,724 (94,473)
Accrued liabilities (26,099) 17,842
Net cash provided by (used in) operating
activities (159,864) 172,867
Cash flows from investing activities:
Investments 1,036,841 63,348
Increase in long-term investments (500,000) -
Purchase of property, plant and equipment (50,420) (19,789)
Net cash provided by (used in) investing
activities 486,421 43,559
Cash flows from financing activities:
Increase (decrease) in notes payable and
long-term obligations (434,337) (122,289)
Purchase and retirement of treasury stock - (64,456)
Net cash provided by (used in) financing
activities (434,337) (186,745)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (107,780) 29,681
Cash and cash equivalents - beginning of
period 378,340 542,086
Cash and cash equivalents- end of period $ 270,560 $ 571,767
See accompanying notes.
6
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Three months ended October 31, 1999 and 1998
(Unaudited)
Three months ended
October 31,
1999 1998
Supplemental disclosures of cash flow information:
Cash paid during the period for Interest $ 69,578 $ 72,835
See accompanying notes.
7
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
October 31, 1999
(Unaudited)
NOTE A - GENERAL
Electric & Gas Technology, Inc.("the Company"or "ELGT") was
organized under the laws of the State of Texas on March 18, 1985,
to serve as a holding company for operating subsidiary
corporations. The Company presently is the owner of 100% of
Reynolds and Hydel and owns 91.5% of AMT and, through such
subsidiaries, operates in three distinct business segments: (1)
production of atmospheric water, filtration and enhanced water
products (AMT); (2) the manufacture and sale of natural gas
measurement, metering and odorization equipment (Reynolds); and
(3) the manufacture and sale of electric meter enclosures and
pole-line hardware for the electric utility industry and the
general public (Hydel). Effective October 1, 1997, the Company
agreed to sell its defense electronics business segment and on
December 31, 1997 it sold its plastics segment. Both such
operations have been treated as discontinued operations.
Effective July 31, 1997, the Company discontinued the operations
of its metal fabrication segment which previously was engaged in
the manufacture and sale of precision metal enclosures for
telecommunication and computer equipment (Logic). The Company
sold its Canadian heating division and its U.S. meter socket and
Test Switch divisions during fiscal 1996 and 1995. These
operations were part of the electric segment.
The accompanying condensed financial statements have been
prepared in accordance with the regulations of the Securities and
Exchange Commission (SEC) for inclusion in the Company's
Quarterly Report on Form 10-Q. They are subject to year-end
audit adjustments; however, they reflect all adjustments of a
normal recurring nature which are, in the opinion of Management,
necessary for a fair statement of the results of operations for
the interim periods.
The statements were prepared using generally accepted accounting
principles. As permitted by the SEC, the statements depart from
generally accepted accounting disclosure principles in that
certain data is combined, condensed or summarized that would
otherwise be reported separately and certain disclosures of the
type that were made in the Notes to Financial Statements for the
year ended July 31, 1999 have been omitted, even though they are
necessary for a fair presentation of the financial position at
October 31, 1999 and 1998 and the results of operations and cash
flows for the periods then ended.
8
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
October 31, 1999
(Unaudited)
NOTE B - INVENTORIES
Inventories are comprised as follows:
October 31, 1999 July 31, 1999
Raw Materials $1,098,195 $1,118,659
Work in process 366,848 370,982
Finished Goods 1,305,584 1,179,639
$2,770,627 $2,669,280
NOTE C - COMMON AND PREFERRED STOCK AND EARNINGS PER SHARE
On December 15, 1995, the Company closed on a Note Purchase
Agreement with Allied Products Corporation ("Allied"), thereby
obtaining Allied's right, title and interest in and to a certain
Promissory Note and all security existing thereunder and
obligations of Cooper Manufacturing Corporation ("Cooper") under
this Note and the Facility Agreement formerly executed by Cooper
and its shareholders in exchange for $100,000 in cash and newly
issued 90,000 shares of Series A, $10.00 par value, 7%
Convertible Preferred stock of the Company. The promissory note
was due on December 31, 1995 and demand for payment was made on
Cooper and its guarantors. The preferred stock is convertible
into common stock of the Company at the ratio of two shares of
common stock for each share of preferred stock. Each holder of
record of the shares of preferred stock is entitled to one vote
per share equal to the voting rights of the common shareholders.
The Company has agreed to make whole any deficiency upon
conversion and subsequent sale after December 31, 1997 of the
Company's common stock for less than $900,000. The Company's
common stock trades at approximately $1.00 per share which if
sold at that price would require 900,000 shares to be sold to
retire the obligation to Allied. The Preferred shares are
redeemable in cash plus accrued dividends at any time as the
result of an underwriting as defined therein. Accumulated and
unpaid dividends to preferred stock amounted to approximately
$244,233 at October 31, 1999.
An Illinois's court awarded a judgement on January 28, 1999 in
favor of Allied and against the Company in the amount of
approximately $1,100,000. The pending lawsuit between Allied and
the Company has now been settled and dismissed. The settlement
required the repurchase by the Company of the 90,000 shares of
preferred stock for $1.1 million which would satisfy a judgement
by the Court requiring such a purchase. An affiliate acquired
said 90,000 shares and the judgement. The transaction was
completed by the affiliate with $1.2 million of collateral
supplied by the Company. The affiliate is pursuing the sale of
the preferred stock, which if unsuccessful, the Company will
repurchase the preferred stock and retire same.
9
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
October 31, 1999
(Unaudited)
NOTE C - COMMON AND PREFERRED STOCK AND EARNINGS PER
SHARE(Continued)
The individuals whose stock was pledged and who personally
guaranteed the Allied Note, petitioned the court on behalf of
Cooper to file for protection under the U.S. Bankruptcy laws in a
Houston, Texas court. The Bankruptcy Court approved the debtor's
plan of reorganization in the Cooper bankruptcy on December 5,
1997. In accordance with such plan, the Company received cash of
$700,000, notes receivable totaling $220,000, a 2.5% royalty
agreement on new rigs sold and 1,000,000 shares of Cabec Energy
Corp. The investment in Cooper was adjusted to the value of the
consideration received.
The following table sets forth the computation of basic and
diluted earnings per share:
Three months ended
1999 1998
Numerator
Net income (loss) $339,157 $(55,718)
Preferred stock dividends (15,879) (15,879)
Numerator for basic earnings per share
Net income (loss) available to
common stockholders operations $323,278 $(71,597)
Effect of dilutive securities
Preferred stock dividends $ 15,879 $ 15,879
Numerator for diluted earnings per share
Net income (loss) available to
common stockholders after
assumed conversion $339,157 $(55,718)
10
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
October 31, 1999
(Unaudited)
NOTE C - COMMON AND PREFERRED STOCK AND EARNINGS PER
SHARE(Continued)
Three months ended
1999 1998
Denominator
Denominator for basic earnings per share
weighted-average shares 8,343,417 8,166,324
Effect of dilutive securities:
Options 74,649 -
Preferred stock 900,000 -
974,649 -
Denominator for dilutive earnings per share
assumed conversion 9,318,066 8,166,324
Assumed conversion of preferred stock and exercise of options in
1998 are anti-dilutive.
Options to purchase shares ranging in price from $.50 to $.55 for
77,207 shares and shares ranging in price from $.50 to $2.75 for
352,000 shares were outstanding during 1999 and 1998,
respectively and were only included in the computation of
dilutive earnings per share for 1999 as the options' exercise
price was less than the average market price of the common shares
and were dilutive.
NOTE D - ACCUMULATED OTHER COMPREHENSIVE INCOME:
The components of other comprehensive income are as follows:
Currency Pension
Translations Liability
Adjustments Adjustments Total
Balance at July 31, 1999 $(529,676) $(237,825) $(767,501)
Currency translation adjustments 32,948 - 32,948
Balance October 31, 1999 $(496,728) $(237,825) $(734,553)
11
<PAGE>
ELECTRIC & GAS TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)
October 31, 1999
(Unaudited)
NOTE E - INDUSTRY SEGMENT DATA:
The Company's business is primarily comprised of three industry
segments: i. water (AMT); ii. natural gas measurement and
recording devices and odorization (Reynolds); and iii. electrical
components and enclosures (Hydel) as set forth below. Operating
profits represent total sales less cost of sales and general and
administrative expenses.
<TABLE>
<S> <C> <C> <C> <C> <C>
Three Months Ended October 31, 1999
General
Water Gas Electric Corporate Consolidated
Sales $ - $ 757,867 $2,279,083 $ - $ 3,036,950
Cost of goods sold 9,814 420,045 1,817,929 - 2,247,788
Selling, gen. & adm. 4,227 297,386 333,958 201,217 836,788
Operating profit(loss) (14,041) 40,436 127,196 (201,217) (47,626)
Interest, net - (12,610) (23,683) 83,931 47,638
Other income(expense) - 35,001 - 304,144 339,145
Net earnings (loss) from
continuing operations $(14,041) $ 62,827 $ 103,513 $186,858 $ 339,157
Assets:
Receivables $ - $ 527,358 $1,347,396 $ (16,372) $ 1,858,382
Inventory $ 51,870 $ 847,985 $1,870,772 $ - $ 2,770,627
Total assets $284,710 $1,980,992 $4,394,046 $6,791,987 $13,451,735
Depreciation $1,189 $18,503 $28,719 $3,093 $51,504
Additions PP&E $ - $25,109 $25,311 $ - $50,420
</TABLE>
Net earnings were materially effected by the Company's successful
resolution of its lawsuit with its former manufacturer's
representative of its discontinued metal fabrication segment.
The Company had previously provided a reserve of approximately
$500,000 against any potential exposure in connection with the
lawsuit and any claims made by the purchaser of the business.
12
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The Company, through its subsidiaries, operates within three
separate industries. These are (i) production of atmospheric
water, filtration and enhanced water products; (ii) the
manufacture of natural gas measurement equipment and gas
odorization products; and (iii) the manufacture and sale of metal
enclosures and other electrical equipment for use in the electric
utility industry.
Results of Operations
Summary. The Company reported net earnings (loss) from of
$339,157 and $(55,718) for the three months ended October 31,
1999 and 1998, respectively. Operating income decreased by
$18,669 to $153,591 the result of lower margins in the gas
segment. Gross margins decreased from 29.09% to 25.99%.
Selling, general and administrative expenses as a relationship to
revenues at the segment level decreased from 23.07% to 20.93% of
revenues. Net earnings were materially effected by the Company's
successful resolution of its lawsuit with its former
manufacturer's representative of its discontinued metal
fabrication segment. The Company had previously provided a
reserve of approximately $500,000 against any potential exposure
in connection with the lawsuit and any claims made by the
purchaser of the business.
Increases(decreases) for the three months period ended October
31, 1999, as compared with the similar period of 1998, for key
operating data were as follows:
Three Months Ended
October 31, 1999
Increase Percent
(Decrease) Change
Operating Revenues $172,950 6.14
Operating Income (18,669) (10.84)
Earnings (loss) from operations
before income taxes 394,875 708.70
Net Earnings Per Share .05 500.00
13
<PAGE>
The following table represents the changes [increase/(decrease)]
in operating revenues, operating income and net earnings before
income taxes by the respective industry segments when compared to
the previous period:
Three Months Ended
October 31, 1999
Increase
(Decrease) Percent
Operating Revenues:
Water $ - -
Gas 3,898 2.25
Electric 169,052 97.75
$172,950 100.00
Operating Income (Loss):
Water $ 21,858 117.08
Gas (63,076) (337.86)
Electric 22,549 120.78
(18,669) 100.00
General Corporate 94,087
Other Income (Expense) 319,457
Earnings from continuing operations
before Income Taxes $394,875
Water segment had no revenues during the first quarter of fiscal
2000. Expenses amounted to $14,041 which were monies expended
for further development and testing of the newly designed
"Watermaker." The Company continues to test and develop this
technology to ultimately produce reliable, safe and marketable
products.
Gas revenues increased by $3,898 for the three months ended
October 31, 1999. Operating income decreased by $(63,076) for
the three months ended October 31, 1999, resulting in operating
profit of $40,436, the result of decreasing margins and offset by
slightly reduced selling, general and administrative expenses.
14
<PAGE>
Electric revenues for the three months ended October 31, 1999,
increasing by $169,052 or 8.01%. Gross margins for the three
months remained relatively unchanged around 20%. Operating
profits increased by $22,549 due to the increased revenue. The
electric segment consist of only the Canadian meter socket and
pole line hardware product lines selling almost entirely in the
Canadian markets.
With the exception of expense relationships discussed above in
the specific segment discussion, such other relationships remain
consistent. Operating profits decreased by 10.84%, the effect of
decreased margins 3.10% and offset by reduced selling, general
and administrative expenses by 2.14%, discussed above, for the
three months ended October 31, 1999.
Liquidity and Capital Resources
Liquidity. Current assets of the Company totaled $7,138,933 at
October 31, 1999 and $8,046,651 at July 31, 1999. Current
liabilities decreased by $(362,530), resulting in a decrease in
working capital (current assets less current liabilities) to
$4,011,021 at October 31, 1999, from $4,556,209 at July 31, 1999.
The Company believes that it has and will generate sufficient
cash to meet its working capital requirements and debt
obligations.
Hydel has a working capital line-of-credit with a Canadian bank
in the amount of approximately $1,500,000. The Canadian credit
facility is secured by receivables, inventories and equipment of
Hydel.
The Company continues to borrow under its CIT Group
Credit/Finance, Inc. revolving and term loan facility. Borrowing
under the revolving portion is based on eligible accounts
receivable and inventory. The outstanding revolving loan balance
was $343,484 and the term loan balance was $53,116 at October 31,
1999.
Capital Expenditures
For Fiscal 2000, the Company (and its subsidiaries) does not
anticipate any significant capital expenditures, other than in
the ordinary course of replacing worn-out or obsolete machinery
and equipment utilized by its subsidiaries.
Dividend Policy
No cash dividends have been declared by the Company's Board of
Directors since the Company's inception. The Company does not
contemplate paying cash dividends on its common stock in the
foreseeable future since it intends to utilize it cash flow to
invest in its businesses. Cumulative dividends on the Series A,
7% Convertible Preferred Stock, have not been paid and amounted
to $244,233 as of October 31, 1999.
15
<PAGE>
Other Business Matters
Year 2000. The Company currently believes that it does not have
any significant exposure to uncertainties nor material
anticipated costs with regard to Year 2000 issues. The Company
has significantly reduced its operating subsidiaries over the
last two years minimizing certain risks. Current systems and any
anticipated upgrades are 2000 compliant.
Accounting for Post-Retirement Benefits. The Company provides no
post-retirement benefits; therefore, FASB No. 106 will have no
impact on the Company's financial position or result of
operations.
Inflation. The Company does not expect the current effects of
inflation to have any effect on its operations in the foreseeable
future. The largest single impact effecting the Company's
overall operations is the general state of the economy and
principally the home construction sector.
Information regarding and factors affecting forward looking
statements. Forward-looking statements include statements
concerning plans, objectives, goals, strategies, future events or
performances and underlying assumption and other statements which
are other than statements of historical facts. Certain statements
contained herein are forward-looking statements and, accordingly,
involve risks and uncertainties which could cause actual results
or outcomes to differ materially from those expressed in the
forward-looking statements. The Company's expectations, beliefs
and projections are expressed in good faith and are believed by
the Company to have a reasonable basis, including without
limitations, management's examination of historical operating
trends, data contained in the Company's records and other data
available from third parties, but there can be no assurance that
management's expectations, beliefs or projections will result, or
be achieved, or accomplished.
16
<PAGE>
PART II
ITEM 1. LEGAL PROCEEDINGS
Ammon & Rizos Co., Inc. Vs. Metal Products, Inc.-Cause No.; 97-
06860-C; District Court Dallas County, Texas. The former
manufacturers representative of Logic, Ammon & Rizos Co, has
filed a suit against the Company, the Company's chairman of the
board, Logic, and New Logic Design Metals, Inc. ("New Logic")(the
purchaser of the assets) for unpaid fees, assumed by New Logic
and a previous adjustment in prior fees plus prospective fees
from New Logic's sales. This case was settled by all parties on
November 17, 1999 with a payment of $500,000 to the plaintiff of
which the Company contributed $200,000 to the settlement. The
balance of $300,000 was paid by New Logic.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a)NONE
(b)Reports on Form 8-K.
NONE
17
<PAGE>
SIGNATURE
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.
ELECTRIC & GAS TECHNOLOGY, INC.
/s/ Edmund W. Bailey
Edmund W. Bailey
Vice President and
Chief Financial Officer
Dated: November 29, 1999
18
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUL-31-2000
<PERIOD-END> OCT-31-1999
<CASH> 270,560
<SECURITIES> 2,185,647
<RECEIVABLES> 1,871,805
<ALLOWANCES> 13,423
<INVENTORY> 2,770,627
<CURRENT-ASSETS> 7,138,933
<PP&E> 4,495,100
<DEPRECIATION> 2,698,821
<TOTAL-ASSETS> 13,451,735
<CURRENT-LIABILITIES> 3,127,912
<BONDS> 0
0
900,000
<COMMON> 83,434
<OTHER-SE> 8,160,265
<TOTAL-LIABILITY-AND-EQUITY> 13,451,735
<SALES> 3,036,950
<TOTAL-REVENUES> 3,036,950
<CGS> 2,247,788
<TOTAL-COSTS> 3,084,576
<OTHER-EXPENSES> (386,783)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 69,578
<INCOME-PRETAX> 339,157
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 339,157
<EPS-BASIC> .04
<EPS-DILUTED> .04
</TABLE>
