U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the 6 month period ended September 30, 1999.
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to
Commission File No. 0-14840
BERES INDUSTRIES, INC.
(Name of Small Business Issuer in its Charter)
New Jersey 22-1661772
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1785 Swarthmore Avenue
Lakewood, New Jersey 08701
(Address of Principal Executive Offices)
Registrant's telephone number, including area code (732) 367-5700
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.
(1) Yes X (2) Yes X No
State the number of shares outstanding of each of the
Registrant's classes of common equity, as of the latest
applicable date:
12,411,934 - July 19, 1999
Beres Industries, Inc.
September 30, 1999
Form 10-QSB
Index
Part I: Financial Information
Item 1. Financial Statements
Balance Sheets at September 30, 1999 and March 31, 1999
Statements of Operations for the Three Months Ended
September 30, 1999 and 1998
Statements of Comprehensive Income (Loss) for the Three
Months Ended September 30, 1999 and 1998
Statements of Operations for the Six Months Ended
September 30, 1999 and 1998
Statements of Comprehensive Income (Loss) for the Six
Months Ended September 30, 1999 and 1998
Statement of Changes in Stockholders Equity for the
Six Months Ended September 30, 1999
Statements of Cash Flows for the Six Months Ended
September 30, 1999 and 1998
Notes to Financial Statements
Item 2. Management's Discussion and Analysis, Material Changes
in Financial Condition and Results of Operations
Part I - Item 1
BERES INDUSTRIES, INC.
BALANCE SHEETS
9/30/99 3/31/99
ASSETS
Current Assets
Cash and Cash Equivalents $ 335,000 $ 458,000
Marketable Securities 4,000 3,000
Accounts Receivable - Trade:
Less Allowance for Doubtful
Accounts of $23,000 and $23,000
Respectively 220,000 181,000
Inventories - Raw Materials 42,000 47,000
- Work in Process 164,000 37,000
- Finished Goods 82,000 85,000
Prepaid Expenses and Other
Current Assets 9,000 17,000
Total Current Assets 856,000 828,000
Property, Plant and Equipment - Less
Accumulated Depreciation of
$4,718,000 and $4,674,000
Respectively 1,220,000 1,264,000
Other Assets 48,000 48,000
Net Assets of Discontinued Operations 45,000 45,000
Total Assets $ 2,169,000 $ 2,185,000
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
BALANCE SHEETS (Continued)
9/30/99 3/31/99
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
Current Maturities of Long-Term
Debt $ 84,000 $ 83,000
Current Maturities of Capital
Lease Obligations 34,000 34,000
Accounts Payable and Accrued
Expenses 248,000 251,000
Customer Deposits 222,000 23,000
Total Current Liabilities 588,000 391,000
Long-Term Debt - Less Current
Maturities 690,000 731,000
Capital Lease Obligations -
Less Current Maturities 9,000 23,000
Total Liabilities 1,287,000 1,145,000
Stockholders Equity
Common Stock - Par Value $0.02 Per
Share:
Authorized 21,000,000 Shares
Issued and Outstanding -
12,412,000 Shares 248,000 248,000
Capital in Excess of Par Value 3,445,000 3,445,000
Accumulated Other Comprehensive
Income (Loss) 4,000 3,000
Accumulated Deficit (2,645,000) (2,486,000)
1,052,000 1,210,000
Less:Common Stock Receivable 170,000 170,000
Total Stockholders Equity 882,000 1,040,000
Total Liabilities and Stockholders
Equity $ 2,169,000 $ 2,185,000
Unaudited -See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENTS OF OPERATIONS
Three Months Three Months
Ended Ended
9/30/99 9/30/98
Net Sales $ 427,000 $ 557,000
Costs and Expenses
Cost of Goods Sold 314,000 435,000
Selling, General and
Administrative Expenses 154,000 155,000
Total Costs and Expenses 468,000 590,000
Operating Loss (41,000) (33,000)
Other Income (Expenses):
Interest and Other Income 3,000 14,000
Interest Expense (19,000) (19,000)
Total Other Income (Expenses)- Net (16,000) (5,000)
Loss From Continuing
Operations (57,000) (38,000)
Income (Loss) From Discontinued
Operations -0- -0-
Net Loss Applicable
To Common Shareholders $ (57,000) $ (38,000)
Loss Per Common Share Outstanding
Loss From Continuing Operations
Applicable Per Common Share-
Basic and Diluted $ (0.005) $ (0.003)
Income (Loss) From Discontinued
Operations Applicable Per Common
Share - Basic and Diluted -0- -0-
Net Loss Applicable Per Common Share-
Basic and Diluted $ (0.005) $ (0.003)
Number of Shares Outstanding Per Common
Share-Basic and Diluted Used in Per
Share Calculation 12,412,000 12,412,000
Unaudited - See Accompanying Notes to Financial Statements
PART I - ITEM 1
BERES INDUSTRIES, INC.
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three Months Three Months
Ended Ended
9/30/99 9/30/98
Net Loss Applicable To Common Shareholders $ (57,000) $ (38,000)
Other Comprehensive Income (Loss), Net Of Tax:
Unrealized Holding Gain (Loss) Arising During
The Period -0- (11,000)
Net Comprehensive Loss $ (57,000) $ (49,000)
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENTS OF OPERATIONS
Six Months Six Months
Ended Ended
9/30/99 9/30/98
Net Sales $ 846,000 $ 1,175,000
Costs and Expenses
Cost of Goods Sold 651,000 861,000
Selling, General and
Administrative Expenses 324,000 340,000
Total Costs and Expenses 975,000 1,201,000
Operating Loss (129,000) (26,000)
Other Income (Expenses):
Interest and Other Income 7,000 20,000
Interest Expense (37,000) (41,000)
Total Other Income (Expenses)- Net (30,000) (21,000)
Loss From Continuing
Operations (159,000) (47,000)
Income (Loss) From Discontinued
Operations -0- -0-
Net Loss Applicable
To Common Shareholders $ (159,000) $ (47,000)
Loss Per Common Share Outstanding
Loss From Continuing Operations
Applicable Per Common Share-
Basic and Diluted $ (0.013) $ (0.004)
Income (Loss) From Discontinued
Operations Applicable Per Common
Share - Basic and Diluted -0- -0-
Net Loss Applicable Per Common Share-
Basic and Diluted $ (0.013) $ (0.004)
Number of Shares Outstanding Per Common
Share-Basic and Diluted Used in Per
Share Calculation 12,412,000 12,412,000
Unaudited - See Accompanying Notes to Financial Statements
PART I - ITEM 1
BERES INDUSTRIES, INC.
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Six Months Six Months
Ended Ended
9/30/99 9/30/98
Net Loss Applicable To Common Shareholders $ (159,000) $ (47,000)
Other Comprehensive Income (Loss), Net Of Tax:
Unrealized Holding Gain (Loss) Arising During
The Period 1,000 (14,000)
Net Comprehensive Loss $ (158,000) $ (61,000)
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999
<TABLE>
Accumulated
Common Stock Capital in Other Common
Excess of Comprehensive Accumulated Stock
Shares Par Value Par Value Income Deficit Receivable
Balances -
<C> <C> <C> <C> <C> <C> <C> <C>
April 1, 1999 12,412,000 $ 248,000 $3,445,000 $ 3,000 $(2,486,000) $ (170,000)
Net Loss
for the Period - - - - (159,000) -
Other Comprehensive
Income, Net Of Tax,
Unrealized Holding
Gain Arising During
The Period - - - 1,000 - -
Balances -
Sept. 30,1999 12,412,000 $ 248,000 $3,445,000 $ 4,000 $(2,645,000) $(170,000)
</TABLE>
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
1999 1998
Cash Flows from Operating Activities:
Net Loss for the Period $ (159,000) $ (47,000)
Adjustments to Reconcile Net
Loss to Net Cash Provided by
(Used in) Operating Activities:
Depreciation and Amortization 44,000 54,000
Decrease in Bad Debt Allowance
from Continuing Operations -0- (8,000)
Changes in Operating Assets and
Liabilities:
Accounts Receivable - Trade (39,000) 126,000
Inventories (119,000) (8,000)
Prepaid Expenses and Other
Current Assets 8,000 8,000
Other Assets -0- 1,000
Accounts Payable and Accrued
Expenses (3,000) (75,000)
Customer Deposits 199,000 1,000
Net Cash Provided By (Used In)
Operating Activities (69,000) 52,000
Cash Flows from Investing Activities:
Aquisitions of Property and
Equipment -0- -0-
Net Cash Provided By (Used in)
Investing Activities $ -0- $ -0-
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
STATEMENTS OF CASH FLOWS (Continued)
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
1999 1998
Cash Flows from Financing Activities:
Principal Payments on Long-Term Debt $ (40,000) $ (34,000)
Principal Payments on Capital
Lease Obligations (14,000) (14,000)
Net Cash Used in Financing
Activities (54,000) (48,000)
Net Increase (Decrease) in Cash and Cash
Equivalents (123,000) 4,000
Cash and Cash Equivalents,
Beginning of Period 458,000 518,000
Cash and Cash Equivalents,
End of Period $ 335,000 $ 522,000
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash Paid for Interest $ 37,000 $ 41,000
Cash Paid for Income Taxes $ 250 $ 250
Unaudited - See Accompanying Notes to Financial Statements
Part I - Item 1
BERES INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30,1999
Note 1 - Basis of Presentation
The March 31, 1999 balance sheet at the end of the preceding
fiscal year has been derived from the audited balance sheet
contained in the Company's Form 10-KSB and is presented for
comparative purposes. All other financial statements and
financial information presented are unaudited. In the opinion
of Management, all adjustments which include only normal
recurring adjustments necessary to present fairly the financial
position for all periods presented have been made. The results
of operations for the interim periods are not necessarily
indicative of the operating results for the full year.
Footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting
principles have been omitted in accordance with the published
rules and regulations of the Securities and Exchange Commission.
However, the footnote below was added to disclose required
segment information in this reporting quarter. These financial
statements should be read in conjunction with the financial
statements and notes thereto included in the Company's
Form 10-KSB for the most recent fiscal year ended March 31, 1999.
Note 2 - Interim Segment Information Reporting
Segment Information - In 1997, the Financial Accounting Standards
Board issued SFAS No. 131, Disclosures about Segments of an
Enterprise and Related Information, which has been adopted by
the Company. SFAS No. 131 requires companies to report financial
and descriptive information about its reportable operating
segments on an interim basis. The Company discusses its segments
in its Management s Discussion and Analysis appearing elsewhere
herein. The segment descriptions are an integral part of this
footnote.
Unaudited
Part I - Item 1
BERES INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
Note 2 - Segment Information (Cont d)
The Precision Molds Segment provides materials, labor and
overhead at cost determined on the same basis as for sales to
unaffiliated parties. Such intersegment costs which are not
included in revenues or costs of Precision Molds were $4,000 for
the three months ended September 30, 1999 as compared to $6,000
for the three months ended September 30, 1998 and were $13,000
for the six months ended September 30, 1999 as compared to
$11,000 for the six months ended September 30, 1998.
Information about the Company's segments is as follows for the
three months ended September 30, 1999 and 1998 and for the six
months ended September 30, 1999 and 1998:
Three Months Ended Three Months Ended
Sept. 30, 1999 Sept. 30, 1998
Operating Operating
Segment Sales Income(Losses) Sales Income(Losses)
Precision Molds $137,000 $ (33,000) $ 187,000 $ (28,000)
Custom Molding 236,000 21,000 308,000 27,000
Finished Ribbons 54,000 (29,000) 62,000 (32,000)
Discontinued Operation -0- -0- -0- -0-
Totals $427,000 $ (41,000) $ 557,000 $ (33,000)
Six Months Ended Six Months Ended
Sept. 30, 1999 Sept. 30, 1998
Operating Operating
Segment Sales Income(Losses) Sales Income(Losses)
Precision Molds $241,000 $ (77,000) $ 327,000 $ (34,000)
Custom Molding 474,000 14,000 663,000 61,000
Finished Ribbons 131,000 (66,000) 185,000 (53,000)
Discontinued Operation -0- -0- -0- -0-
Totals $846,000 $(129,000) $1,175,000 $ (26,000)
Unaudited
Part I - Item 1
BERES INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1999
Note 2 - Segment Information (Cont d)
Reconciliation of Segment Operating Income (Losses) to Total
Company Net Loss for the Three Months Ended September 30, 1999
and 1998 and for the Six Months Ended September 30, 1999 and
1998:
Three Months Ended Three Months Ended
Sept. 30, 1999 Sept. 30, 1998
Total Segment Operating Income (Losses) $ (41,000) $ (33,000)
Interest Expense (19,000) (19,000)
Interest and Other Income 3,000 14,000
Net Loss $ (57,000) $ (38,000)
Six Months Ended Six Months Ended
Sept. 30, 1999 Sept. 30, 1998
Total Segment Operating Income (Losses) $(129,000) $ (26,000)
Interest Expense (37,000) (41,000)
Interest and Other Income 7,000 20,000
Net Loss $(159,000) $ (47,000)
As of the last annual report (Form 10-KSB) as of March 31, 1999,
there have been no material changes in total assets during the
six months ended September 30, 1999 and there have been no
material changes in the basis of measurement of segment
accounting during the six months ended September 30, 1999.
Unaudited
PART I - ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
RESULTS OF OPERATIONS
Net Sales for the six months and three months ended September 30, 1999
decreased by $329,000 or 28.0% and $130,000 or 23.3% from the
respective 1998 periods. Net Sales by segment were as follows:
Six Months Three Months
Ended September 30, Ended September 30,
1999 1998 1999 1998
Precision Molds $ 241,000 $ 327,000 $ 137,000 $ 187,000
Custom Molding 474,000 663,000 236,000 308,000
Finished Ribbons 131,000 185,000 54,000 62,000
$ 846,000 $1,175,000 $ 427,000 $ 557,000
Precision Molds sales vary from quarter to quarter depending on the
production time required to build various tools and the amount of
backlog. During the six months and three months ended September 30,
1999, sales for this segment decreased $86,000 or 26.3% and $50,000
or 26.7% from the respective 1998 periods. These decreases are
primarily the result of the time required to build various tools and
the timing of shipments. The current backlog for this product area
is exceptionally strong and Management anticipates that precision
mold sales for the current fiscal year will be approximately the
same as those for the fiscal year ended March 31, 1999.
Custom molding consists of the Company's injection molding
operations, including ribbon cartridge kits molded and sold to
outside customers in the ribbon industry, and the sale of custom
molded contract products to plastic product manufacturers. Sales
for this segment decreased approximately $189,000 or 28.5% and
$72,000 or 23.4% for the six months and three months ended September
30, 1999 as compared to the respective 1998 periods. These decreases
are primarily the result of the lower levels of ribbon cartridges
molded for customers in the ribbon industry which continues to
suffer significant decreases as impact ribbons disappear from the
market. Management will continue to make a concentrated effort to
increase sales of custom contract molded product in this segment to
replace impact ribbon cartridge kit sales. The Company will
continue its efforts of exhibiting at various industry trade shows
to generate leads for new business. Management remains hopeful that
these efforts will result in increased sales for the custom molding
product segment.
Finished ribbon cartridge sales decreased approximately $54,000 or
29.2% and $8,000 or 12.9% for the six months and three months ended
September 30, 1999 as compared to the six month three month periods
ended September 30, 1998. These decreases in sales for this product
segment are primarily the result of a continued shrinking market for
impact printer ribbon products which continue to lose market share
to the ink jet and laser printers that do not use ribbons. Although
increasing sales and attaining true profitability is doubtful for
this segment, Management is confident that the ribbon products that
are produced and sold contribute positively to covering certain
fixed overhead, which costs would remain if ribbon manufacturing
were discontinued. Therefore, it is Management's intention at this
time to continue manufacturing impact printer ribbons.
Contract costs and costs of goods sold varies based upon sales
volume and product mix. Cost of sales increased to 76.9% from 73.3%
for the six months ended September 30, 1999 when compared to the
similar 1998 period. Cost of sales decreased to 73.5% from 78.1%
for the three months ended September 30, 1999 as compared to the
three months ended September 30, 1998. These variations are
primarily the result of product mix.
Selling, general and administrative expenses decreased approximately
$16,000 and $1,000 for the six month and three month periods ended
September 30, 1999 as compared to the similar 1998 periods. These
decreases are primarily the result of lower commissions paid on the
decreased sales volume in addition to a reduction in certain
expenses directly resulting from cost cutting measures.
Interest and other income decreased approximately $13,000 and
$11,000 for the six months and three months ended September 30, 1999
as compared to the six months and three months ended September 30,
1998. These decreases are primarily the result of lower interest and
dividends earned on the lower invested cash balances.
Interest expense decreased approximately $4,000 for the six months
ended September 30, 1999 as compared to the similar 1998 period.
For the three months ended September 30, 1999, interest expense
remained approximately the same as that for the three months ended
September 30, 1998 at $19,000. The overall decrease is primarily
the result of the repayment of net borrowings. During the three
month period, the Company borrowed approximately $8,000 to purchase
an automobile which was at the end of its lease. The interest
incurred on this borrowing caused the overall interest expense to
remain unchanged during this period.
Net Income (loss) for the six months ended September 30, 1999
increased to($159,000)from a net loss of ($47,000) for the
comparable 1998 period. For the three months ended September 30,
1999, the Company posted a net loss of ($57,000) as compared to a
net loss of ($38,000) for the three months ended September 30, 1998.
The increase in loss is mainly attributed to the lower sales volume
and the nature of certain fixed operating expenses. The reduction
in loss during the most recent three months is the result of a more
favorable product mix.
Management is continuing to monitor the performance of all segments
with an emphasis on attempting to increase sales. Additional cost
cutting measures are being evaluated. Absent a downturn in the
overall economy, Management remains hopeful for an improvement in
long term operating results.
MATERIAL CHANGES IN FINANCIAL POSITION
The Company had working capital of $268,000 at September 30, 1999 as
compared to working capital of $437,000 at March 31, 1999.
Operations generated a net cash loss of ($69,000) for the six months
ended September 30, 1999. Approximately ($64,000) of the ($69,000)
operating net cash loss occurred during the first three months of
that period. Additionally, payments of principal on long term debt
and capital leases resulted in utilizing cash of ($54,000) netting a
total decrease in cash and cash equivalents of approximately
($123,000). The Company's cash and cash equivalent position at the
end of the period was $335,000.
The Company intends to continue operating under the assumption that
no significant new financing will be available. Scheduled
obligations are expected to be met by operating cash flows.
Reviewing these most recent results, Management is evaluating
implementing further cost cutting measures and voluntary salary
reductions to conserve cash and decrease the net loss while sales
are at these reduced levels.
Management continues to evaluate the possibility of raising capital
to invest in new products or attempting to seek out a strategic
partner who could utilize the Company's capabilities. The potential
success of accomplishing either of these avenues is not determinable
at this time. Management will continue its efforts to increase
sales and improve cost controls. Absent any unanticipated
operating expenses or a significant downturn in the overall economy,
Management remains hopeful for an improvement in long term
operating results.
Year 2000 Issue
The term "Year 2000 ('Y2K') Issue" is a general term used to
describe the various problems that may result from the improper
processing of dates and date-sensitive calculations by computers and
other machinery as the year 2000 is approached and reached. These
problems generally arise from the fact that most of the world's
computer hardware and software have historically used only two
digits to identify the year in a date, often meaning that the
computer will fail to distinguish dates in the "2000's" from the
date in the "1900's." These problems may also arise from other
sources as well, such as the use of special codes and conventions in
software that make use of the date field. The Y2K computer software
compliance issues may affect the Company and most companies in the
world.
The Company does not believe that its information technology
(IT) systems used for financial accounting record keeping and other
administrative systems, will be materially affected by the Y2K
issue.
The Company further believes that various Non-IT
micro-controllers utilized in conjunction with the Company's
production equipment are not date sensitive and will not be
materially affected by the Y2K issue. To the extent that
production equipment is date sensitive and is not Y2K compliant, the
Company believes that such equipment may be modified quickly and at
a minimum expense, to achieve Y2K compliance.
As of the date of this disclosure, the Company has consulted
with its chief suppliers of raw materials (primarily plastic
resins) and has received what the Company considers to be adequate
assurances as to Y2K readiness. In the event of any interruption of
the Company's raw material supplies, the Company believes that
alternate suppliers would be available. However, the Company is
unable to predict the effects upon raw material costs, as may result
from reduced supply. A catastrophic breakdown of supply
availability, or a catastrophic breakdown of other services or
utilities required to operate the Company's business would, of
course, have a materially adverse effect upon the Company's
operations. Likewise, interruption of customer demand, resulting
from Y2K failures, could have a materially adverse affect upon the
Company's financial condition.
As of the date of this disclosure, the Company's expenditures
relative to Y2K compliance, have been nominal. Based upon
information presently available to the Company, Company Management
believes that costs associated with Y2K compliance, should not be
material.
The failure to correct a material Y2K problem could result in
an interruption in, or failure of,certain normal business activities
or operations. Such failures could materially and adversely affect
the Company's results of operations, liquidity and financial
condition. Due to the general uncertainty inherent in the Y2K
problem, resulting in part from the uncertainty of the Y2K readiness
of the Company's customers and suppliers, the Company is unable to
determine at this time whether the consequences of any Y2K failures
will have a material impact on the Company's results of operations,
liquidity or financial condition.
FORWARD LOOKING STATEMENTS
The preceding Management's Discussion and Analysis contains
various forward-looking statements which represent the Company's
beliefs or expectations regarding future events. The words
"believes," "expects," "estimates" and similar expressions are
intended to identify forward-looking statements. Forward-looking
statements include, without limitation, discussions as to sales
outlooks, outlooks for operating results, the estimated cost of
becoming Y2K compliant,the Company's belief that its equipment
will be Y2K compliant in a timely manner and that the readiness
of its customers and suppliers to be Y2K compliant will not have
a material impact on the Company. All forward-looking statements
involve a number of risks and uncertainties that could cause the
actual results to differ materially from the projected results,
including problems that may arise on the part of third parties
over whom the Company has little or no control. The impact of
the foregoing could, in turn, have a material adverse effect on
the Company's results of operations and financial condition.
PART II-OTHER INFORMATION
Item 1 Legal Proceedings:
There have been no material changes in legal proceedings from as
previously reported in the Company's 10-KSB for the fiscal year ended
March 31, 1999.
Item 2 Change in Securities:
None
Item 3 Default Upon Senior Securities:
None
Item 4 Submission of Matters to a Vote of Security Holders:
None
Item 5 Other Information:
None
Item 6 Exhibits and Reports on Form 8-K:
None
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.
BERES INDUSTRIES, INC.
Date: November 15, 1999 (Registrant)
/s/ Charles Beres, Jr.
Charles Beres, Jr., President
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 335,000
<SECURITIES> 4,000
<RECEIVABLES> 243,000
<ALLOWANCES> 23,000
<INVENTORY> 288,000
<CURRENT-ASSETS> 856,000
<PP&E> 5,938,000
<DEPRECIATION> 4,718,000
<TOTAL-ASSETS> 2,169,000
<CURRENT-LIABILITIES> 588,000
<BONDS> 699,000
<COMMON> 248,000
0
0
<OTHER-SE> 634,000
<TOTAL-LIABILITY-AND-EQUITY> 2,169,000
<SALES> 846,000
<TOTAL-REVENUES> 846,000
<CGS> 651,000
<TOTAL-COSTS> 975,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 37,000
<INCOME-PRETAX> (159,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> (159,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (159,000)
<EPS-BASIC> (0.013)
<EPS-DILUTED> (0.013)
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