CONFORMED COPY
FORM 10-QSB
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(X) 15, QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarter ended January 31, 2000
OR
( ) 15, TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-17378
VITRO DIAGNOSTIC, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Nevada 84-1012042
______________________________ _________________________________
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
8100 Southpark Way, Bldg B-1 , Littleton, Colorado 80120
_________________________________________________________________________
(Address of principal executive offices) (Zip Code)
(303) 794-2000
________________________________________________________________
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: None
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
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant
to Item 405 of Regulation S-K is not contained herein, and will not be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-QSB or any amendment to this form 10-QSB.
Yes X No
--- ---
The number of shares outstanding of each of the issuer's classes of
common equity as of March 14, 2000, was 8,455,087.
<PAGE>
PART I - FINANCIAL INFORMATION
Vitro Diagnostics, Inc.
Balance Sheets
Assets
(Unaudited)
January 31
2000
------------
Current Assets
Cash Equivalents $ 28,135
Accounts Receivable 242,792
Inventories 482,075
Prepaid Expense 56,376
Current portion of note receivable
------------
Total Current Assets 809,378
------------
Property, Plant and Equipment
Leasehold Improvements 27,645
Office Equipment & Furniture 14,793
Lab & EDP Hardware & SW 177,400
------------
Total Cost 219,838
Less Depreciation (149,529)
------------
Net Property & Equipment 70,309
------------
Other Assets
Deposits 6,925
Inventory - Non Current 51,471
Patents 118,236
Note Receivable, net of current 6,014
------------
Total Other Assets 182,646
------------
Total Assets $ 1,062,333
============
2
<PAGE>
Vitro Diagnostics, Inc.
Balance Sheets
Liabilities & Stockholders Equity
(Unaudited)
January 31
2000
------------
Current Liabilities
Accounts Payable $ 16,020
Payroll Taxes Payable 2,369
Accrued Expenses 1,032
Current portion of Notes Payable 195,640
------------
Total Current Liabilities 215,061
------------
Note payable, net of current portion 97,300
Shareholders' Equity
Common Stock: 500,000,000 Shares
Authorized; par $.001;
8,455,087 shares outstanding
at 01/31/00 283,036
Paid in Capital in Excess of Par 3,656,593
Accumulated Deficit (3,189,657)
------------
Total Shareholders' Equity 749,972
------------
Total Liabilities and
Shareholders' Equity $ 1,062,333
============
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
Vitro Diagnostics, Inc.
Statement of Operations
(Unaudited)
Three Months Ended
January 31,
2000 1999
------------ -------------
Revenue
Product Sales $ 269,242 $ 322,091
------------ ------------
Gross Revenue 269,242 322,091
Cost of Sales
Product 143,342 123,254
------------ ------------
Total Cost of Sales 143,342 123,254
------------ ------------
Gross Profit 125,900 198,837
------------ ------------
Operating Expenses
Selling, General & Admin 78,207 76,124
Research and Development 64,552 56,853
------------ ------------
Total Expenses 142,759 132,977
------------ ------------
Gain (Loss) from Operations (16,859) 65,860
------------ ------------
Other Income (Expense)
Other Income 400 1,275
Interest Expense (4,033) (6,216)
------------ -----------
Total Other Income & Expense (3,633) (4,941)
------------ -----------
Net Gain (Loss) $ (20,492) $ 60,919
============ ===========
Gain (Loss) Per Share of Common Stock
(8,455,087 Shares outstanding
at 01/31/00 and 6,413,702
outstanding at 01/31/99) $ (0.00) $ 0.01
============ ===========
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
Vitro Diagnostics, Inc.
Statements of Cash Flows
Three Months Ending 01/31/00 and 99
<TABLE>
<S> <C> <C>
(Unaudited) (Unaudited)
January 31, January 31,
2000 1999
----------- -----------
Cash Flows from Operating Activities
Net Income (Loss) $ (20,492) $ 60,919
Adjustments to Reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation & Amortization 2,039 2,969
Expenses Incurred for Stock - -
Changes in Assets & Liabilities:
Decrease (increase) in-
Accounts Receivable (134,265) (18,618)
Inventories 33,936 14,936
Prepaid Expenses 11,880 (1,001)
Deposits - 10,000
Intangible Assets (14,901) -
(Decrease) increase in-
Accounts Payable (879) (45,248)
Salaries & Wages Payable - (950)
Payroll Taxes Payable (3,556) (9,025)
Accrued Expenses - -
---------- ----------
Net Cash Provided (Used) by
Operating Activities (126,238) 13,982
---------- ----------
Cash Flows From Investing Activities
Capital Expenditures (41,272) (6,837)
Patents
Increase in note receivable 486 -
Payments on note receivable - -
---------- ----------
Net Cash Used by Investing Activities (40,786) (6,837)
---------- ----------
Cash Flows from Financing Activities
Proceeds from Note Payable Bank - -
Payments on Notes Payable, Bank - -
Increase (Decrease) in Short Term
Notes Payable, Bank 150,868 2,853
Sales of common stock - -
---------- ----------
Net Cash from Financing Activities 150,868 2,853
---------- ----------
Net Increase (Decrease) in Cash (16,156) 9,998
Cash (Bank Overdraft) beginning 44,291 (4,248)
------------ ----------
Cash (Bank Overdraft) Ending $ 28,135 $ 5,750
============ ==========
Supplemental disclosures of cash flow information
Cash paid during the year for:
Interest $ 4,033 $ 6,216
============ ==========
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<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 accounts, 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 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.
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 $596,686,
consisting of current assets of $809,378 and current liabilities of $212,692.
This represents an increase in working capital of $172085 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 $20,492 on total revenues of $269,242. The net loss is a decrease
of $81,411 from the net income for the first quarter 1999. The decrease in
revenue is attributable to lower sales and increased cost of goods sold.
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 47% 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.
6
<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
March 14, 2000.
Vitro Diagnostics, Inc.
(Company)
By: /s/ Roger Hurst
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 March 14, 2000.
Principal Executive, Financial and Accounting Officer
and Director: /s/ Roger Hurst
Roger Hurst
<PAGE>
March 14, 2000
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Vitro Diagnostics, Inc.
Form 10-QSB for the quarter ending January 31, 2000
SEC file no. 0-17378
Dear Sir or Madam:
Transmitted herewith through the EDGAR system is Form 10-QSB for the
quarter ended January 31, 2000 for Vitro Diagnostics, Inc. Should you have
any questions or comments concerning this matter please contact the
undersigned at 303-794-2000.
Sincerely,
Roger Hurst
President
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Statement of Financial Condition at January 31, 2000 (Unaudited) and the
Statement of Income for the Quarter Ended January 31, 2000 (Unaudited). It
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Oct-31-1999
<PERIOD-END> Jan-31-2000
<CASH> 28135
<SECURITIES> 0
<RECEIVABLES> 242792
<ALLOWANCES> 0
<INVENTORY> 482075
<CURRENT-ASSETS> 809378
<PP&E> 219838
<DEPRECIATION> 149529
<TOTAL-ASSETS> 1062333
<CURRENT-LIABILITIES> 215061
<BONDS> 0
<COMMON> 283036
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1062333
<SALES> 269242
<TOTAL-REVENUES> 269242
<CGS> 143342
<TOTAL-COSTS> 142759
<OTHER-EXPENSES> 3633
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (20492)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (20492)
<EPS-BASIC> 0.00
<EPS-DILUTED> 0.00
</TABLE>
