CONFORMED COPY
FORM 10-QSB/A
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarter ended January 31, 2000
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number: 0-17378
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VITRO DIAGNOSTICS, INC.
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(Exact name of registrant as specified in its charter)
Nevada 84-1012042
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
8100 Southpark Way, Bldg B-1 , Littleton, Colorado 80120
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(Address of principal executive offices) (Zip Code)
(303) 794-2000
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(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 Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
at least the past 90 days.
Yes X No
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The number of shares outstanding of each of the issuer's classes of common
equity as of March 14, 2000 was 8,455,087.
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PART I - FINANCIAL INFORMATION
Vitro Diagnostics, Inc.
Balance Sheets
Assets
(Unaudited) (Audited)
January 31, October 31,
2000 1999
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Current Assets
Cash Equivalents $ 28,132 $ 44,291
Accounts Receivable 242,792 108,527
Inventories 188,267 516,011
Prepaid Expense 56,376 68,255
Current portion of note receivable 1,441
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Total Current Assets 515,567 738,525
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Property, Plant and Equipment
Leasehold Improvements 27,645 27,645
Office Equipment & Furniture 14,793 14,793
Lab & EDP Hardware & SW 177,400 136,128
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Total Cost 219,838 178,566
Less Depreciation (149,529) (147,490)
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Net Property & Equipment 70,309 31,076
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Other Assets
Deposits 6,925 6,925
Inventory - Non Current 19,500 51,471
Patents 118,235 103,335
Note Receivable, net of current 6,014 5,059
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Total Other Assets 150,674 166,791
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Total Assets $ 736,550 $ 936,393
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Vitro Diagnostics, Inc.
Balance Sheets
Liabilities & Stockholders Equity
(Unaudited) (Audited)
January 31, October 31,
2000 1999
--------------- -------------
Current Liabilities
Accounts Payable $ 16,020 $ 16,899
Payroll Taxes Payable 2,369 5,925
Accrued Expenses 1,032 1,032
Current portion of Notes Payable 195,640 36,640
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Total Current Liabilities 215,061 165,928
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Note payable, net of current portion 97,300 105,432
Shareholders' Equity
Common Stock: 500,000,000 Shares
Authorized; par $.001;
8,455,087 shares outstanding
at 10/31/99 and 01/31/00 283,036 283,036
Paid in Capital in Excess of Par 3,656,593 3,255,328
Accumulated Deficit (3,515,440) (3,169,164)
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Total Shareholders' Equity 424,189 770,465
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Total Liabilities and
Shareholders' Equity $ 736,550 $ 936,393
=============== =============
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Vitro Diagnostics, Inc.
Statement of Operations
(Unaudited)
Three Months Ended
January 31
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2000 1999
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Revenue
Product Sales $ 269,242 $ 322,091
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Gross Revenue 269,242 322,091
Cost of Sales
Product 163,434 123,254
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Total Cost of Sales 163,434 123,254
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Gross Profit 108,808 198,837
Operating Expenses
Selling, General & Administrative 78,207 76,124
Research and Development 64,552 56,853
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Total Expenses 142,759 132,977
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Income from operations (36,951) 65,860
Other Income (Expense)
Other Income 400 1,275
Cumulative effect of Accounting Change (305,691) 0
Interest Expense (4,033) (6,216)
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Total Other Income and (Expense) (309,324) (4,941)
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Net (Loss) $ (306,091) $ 60,919
=============== =============
Loss Per Share of Common Stock
(8,455,087 Shares outstanding
at 01/31/00 and 6,413,702
outstanding at 01/31/99) $ (0.04) $ 0.01
=============== =============
<PAGE>
Vitro Diagnostics, Inc.
Statements of Cash Flows
(Unaudited) (Unaudited)
Three Months Three Months
Ending Ending
January 31, 2000 January 31, 1999
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Cash Flows from Operating Activities
Net Income (Loss) $ (346,275) $ 60,919
Adjustments to Reconcile Net Income to
Net Cash Used In Operating Activities:
Depreciation & Amortization 2,039 2,969
Accounting Change 305,691
Expenses Incurred for Stock - -
Changes in Assets & Liabilities:
Decrease (increase) in-
Accounts Receivable (134,265) (18,618)
Inventories 54,028 14,936
Prepaid Expenses 11,880 (1,001)
Deposits - 10,000
(Decrease) increase in-
Accounts Payable (879) (45,248)
Salaries & Wages Payable - (950)
Payroll Taxes Payable (3,556) (9,025)
Accrued Expenses - -
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Net Cash Provided (Used) by
Operating Activities (111,337) 13,982
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Cash Flows From Investing Activities
Capital Expenditures (41,272) (6,837)
Patents (14,901)
Payments on note receivable 486
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Net Cash Used by Financing Activities (55,687) (6,837)
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Cash Flows from Financing Activities
Increase (decrease) in Short Term
Proceeds from Notes Payable, Bank 150,868 (4,706)
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Net Cash from Investing Activities 150,868 2,853
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Net Increase (Decrease) in Cash (16,156) 9,998
Cash Beginning 44,291 (4,248)
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Cash Ending $ 28,135 $ 5,750
================= ================
Supplemental disclosures of cash
flow information
Cash paid during the year for:
Interest $ 4,033 $ 6,216
================= ================
<PAGE>
Vitro Diagnostics, Inc.
Notes to the Financial Statements
January 31, 2000 (Unaudited)
Basis of Presentation
The information for the three months ended January 31, 2000 has not been
examined by independent accountants, but includes all adjustments which the
Company considers necessary for a fair presentation of the information presented
for the period.
Note 1 - Unaudited Financial Information
The information furnished herein was taken from the books and records of
the Company without audit. The Company believes, however, that it has made all
adjustments necessary to reflect properly the results of operations for the
three month interim period ended January 31, 2000 and 1999. The adjustments
consists only of normal reoccurring accruals. The results of operations for the
three month interim period ended January 31, 2000 are not necessarily indicative
of the results to be expected for the year ended October 31, 2000.
Note 2- Financial Statements
Management has elected to omit substantially all footnotes relating to
the condensed financial statements of the Company included in the report. For a
complete set of footnotes, reference is made to the Company's Annual Report on
Form 10KSB for the year ended October 31, 1999 as filed with the Securities and
Exchange Commission and the audited financial statements included therein.
Note 3 - Change in Accounting Policy
As of November 1, 1999, the Company changed its method of determining cost of
its finished goods inventory from a method based on costs as a percentage of
gross selling price to cost determined by a study of the manufacturing
processes. Management believes that the new method results in a closer matching
of costs associated with the products, thereby reflecting a more realistic
picture of the Company's financial progress. The effect of the change was to
decrease income for the quarter ended January 31, 2000 by $20,092 ($0.00 per
share). The cumulative effect of the change on prior years of $305,691 ($4.04
per share) is a one time charge to income.
Proforma amounts showing the effect of applying the new method retroactively.
Net income (loss) $(40,584)
Loss per common share $ (0.00)
Management is unable to determine the effect of the change had it occurred on
November 1, 1998 on the quarter ended January 31, 1999.
<PAGE>
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Liquidity and Capital Resources
At quarter end January 31, 2000, the Company had working capital of $300,506,
consisting of current assets of $515,567 and current liabilities of $215,061.
This represents a decrease in working capital of $221,396 from January 31, 1999.
In addition to the working capital available January 31, 2000, the Company had
available two lines of credit in the amount of $300,000 to help finance
operations and capital requirements. At January 31, 2000, $141,000 was available
on these lines. Management is of the opinion that the Company will also require
additional capital from outside sources to finance its capital requirement for
fiscal 2000.
During the first quarter ended January 31, 2000, the Company's operations used,
rather than provided cash. During that time, the Company's operations used
$16,156, compared to cash generated by operations of $9,998 during the first
quarter ended January 31, 1999. Management believes the decrease in cash flow is
primarily attributable to two factors: (i) a reduction in sales and (ii) an
increase in cost of goods sold. The increase in cost of goods sold is due to
substantial discounts for large purchases of antigens to a single user.
Management does not believe the lower sales is significant nor alarming.
Management therefore anticipates that if the Company is unable to obtain capital
from outside sources, it may be required to curtail its research and
development.
Results of Operations
During the first quarter ended January 31, 2000, the Company realized a net loss
of $(306,091) on total revenues of $269,242. The net loss is a decrease of
$367,010 from the net income for the first quarter 1999. The decrease in revenue
is attributable to a change in the valuation of finished goods inventory.
In the first quarter of 2000, the Company sold 765 milligrams of all products.
This compares to 1,152 milligrams sold during the first quarter of 1999. Prices
for the Company's products remained constant since the first quarter of 1999.
Gross profit from sales of the Company's product decreased from the first
quarter of 1999, from 62% for the quarter ended January 31, 1999 to 61% for the
quarter ended January 31, 2000. The greatest increase in operating expenses was
research and development, which increased from $56,853 in the first quarter of
1999 to $64,552 in the first quarter of 2000. This increase is attributable to
increased emphasis on development of new products and techniques. Subject to
availability of working capital, the Company hopes to continue this research and
development.
The Company is actively searching for capital assistance. Possible sources of
capital are strategic alliances, private placements and public offering of the
Company's securities.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Company has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized, on June 21, 2000.
Vitro Diagnostics, Inc.
(Company)
By: /s/ Roger Hurst
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Roger Hurst, President,
Chief Executive Officer
Chief Financial Officer
Chief Accounting Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the Company
in the capacities indicated on June 15, 2000.
Principal Executive, Financial and Accounting Officer and Director:
/s/ Roger Hurst
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Roger Hurst
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