<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly report under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 1999 Commission file number 0-15148
---------
SCIENTIFIC NRG, INCORPORATED
(Exact name of registrant as specified in its charter)
Minnesota
(State or Other Jurisdiction of Incorporation or Organization)
2246 Lindsay Way
Glendora, California 91740
(Address of Principal Executive Offices)
41-1457271
(I.R.S. Employer Identification No.)
Registrant's telephone number, including area code: (909) 305-0322
------------
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. At May 10, 1999 the
registrant had 5,586,163 shares of common stock, no par value, issued and
outstanding.
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
PART I
<S> <C> <C>
Item 1. FINANCIAL STATEMENTS. 3
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS. 3
PART II
Item 1. LEGAL PROCEEDINGS. 11
Item 2. CHANGES IN SECURITIES. 11
Item 3. DEFAULT UPON SENIOR SECURITIES. 11
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY-HOLDERS. 11
Item 5. OTHER INFORMATION. 11
Item 6. EXHIBITS AND REPORTS ON FORM 8-K. 13
</TABLE>
2
<PAGE> 3
PART I
Item 1. Financial Statements.
The Company's unaudited condensed balance sheet as of the end of
the Company's most recent quarter, March 31, 1999 and unaudited condensed
statements of operations for the three and nine month period and statements of
cash flow for the nine month period up to the date of the balance sheet and the
comparable period of the preceding fiscal year are attached hereto as pages 5
through 10 and are incorporated herein by this reference.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
The following discussion and analysis should be read in
conjunction with the Company's audited financial statements and management's
Discussion and Analysis of Financial Condition and results of Operations
included in the Company's Annual Report on Form 10-KSB, filed with the
Securities and Exchange Commission on August 15, 1998.
The following discussion includes "forward looking statements" (
"FLS" ) that represent management's assessment of future performance and its
goals. There are no assurances that the forward looking statements will be
achieved.
RESULTS OF OPERATIONS
The three and nine month period ended March 31, 1999 compared to
the three and nine month period ended March 31, 1998.
The Company realized a net gain of $4,073, or $.00 per share for
the three month period ended March 31, 1999, compared to a net loss of $41,174
or $(.01) per share for the corresponding period of the prior fiscal year. The
Company realized a net gain of $7,187 or $ .00 per share for the nine month
period ended March 31, 1999, compared to a net loss of $91,240 or $(.02) per
share for the corresponding period of the prior fiscal year. Management
attributes these gains to the Company's reduced overhead.
Net sales of the Company during the three months ended March 31,
1999 increased $15,158 or 17.9% from the corresponding period of the prior
fiscal year. Net sales of the Company during the nine months ended March 31,
1999 increased $3,614 or 1.0% from the corresponding period of the prior fiscal
year.
Gross profit from operations during the three months ended March
31, 1999 increased $17,692 or 82.9% from the gross profit from the corresponding
period of the prior fiscal year. Gross profit from operations during the nine
months ended March 31, 1999 increased $29,201 or 25.3% from the corresponding
period of the prior fiscal year. Management attributes these improvements to the
Company's reduced fixed overhead, and an increase in higher margin custom
fixture sales.
General, administrative and selling costs for the three months
ended March 31, 1999 decreased by $27,578, and decreased as a percentage of
sales from 73.2% of sales to 34.4% of sales in comparison to the corresponding
period of the prior fiscal year. General, administrative and selling costs for
the nine months ended March 31, 1999 decreased by $69,195 and decreased as a
percentage of sales from 60.1% of sales to 39.3% of sales in comparison to the
corresponding period of the prior fiscal year. The reduction in overhead for the
three and six months ended March 31, 1999 indicates management's continued
efforts to reduce costs.
3
<PAGE> 4
LIQUIDITY AND CAPITAL RESOURCES
The nine month period ended March 31, 1999 compared to the nine
month period ended March 31, 1998.
The Company had positive cash flow from operating activities for
the nine month period ended March 31, 1999 of $2,056 compared to a negative cash
flow of $26,603 for the nine month period ended March 31, 1998.
At March 31, 1999, the Company had net working capital of $65,992,
compared to a net negative working capital of $37,792 at June 30, 1998. An
increase in working capital of $103,784, is primarily the result of the issuance
of common stock as discussed below.
During the quarter ended September 30, 1998, the Company issued
1,382,740 shares of its common stock, no par value, in exchange for legal
services and administrative service rendered and for future services during the
fiscal year ended June 30, 1999. The shares were valued at nine cents per share.
The Company registered these shares by filing form S-8 with the Securities
Exchange Commission on August 14, 1998.
4
<PAGE> 5
SCIENTIFIC NRG, INCORPORATED
PART I. FINANCIAL INFORMATION
Item 1. Condensed Financial Statements
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
March 31 June 30,
1999 1998
ASSETS (Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash $ 16,423 $ 14,367
Trade receivables, less allowance for
doubtful accounts at March 31, 1999
and June 30, 1998 of $9,658 58,685 52,755
Inventories (Note 2) 93,423 80,623
Prepaid expenses 200 1,708
----------- -----------
Total current assets 168,731 149,453
Property and Equipment, net 829 2,129
----------- -----------
Total assets $ 169,560 $ 151,582
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable $ 17,156 $ 40,245
Accrued compensation 25,532 45,000
Other accrued expenses 60,051 102,000
----------- -----------
Total current liabilities 102,739 187,245
----------- -----------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, no par value;
authorized 40,000,000 shares;
issued and outstanding:
March 31,1999 5,586,163 shares
June 30, 1998 4,203,423 shares 3,642,006 3,546,707
Additional paid-in capital 11,970 11,970
Accumulated deficit (3,587,155) (3,594,340)
----------- -----------
Total stockholders' equity (deficit) 66,821 (35,663)
$ 169,560 $ 151,582
=========== ===========
</TABLE>
See accompanying notes to unaudited
condensed financial statements
5
<PAGE> 6
SCIENTIFIC NRG, INCORPORATED
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31, Nine Months Ended March 31,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Net sales $ 99,730 $ 84,572 $ 343,969 $ 340,355
Cost of sales 60,694 63,228 199,397 224,984
----------- ----------- ----------- -----------
Gross profit 39,036 21,344 144,572 115,371
Operating expenses:
General, administrative,
and selling costs 34,363 61,941 135,386 204,581
Research and development 400 377 1,399 1,430
----------- ----------- ----------- -----------
Income (Loss) from operations 4,273 (40,974) 7,787 (90,640)
Other income -- -- -- --
Interest expense -- -- -- --
----------- ----------- ----------- -----------
Income (Loss) before provision for taxes 4,273 (40,974) 7,787 (90,640)
Provision for taxes (200) (200) (600) (600)
----------- ----------- ----------- -----------
Net Income (Loss) $ 4,073 $ (41,174) $ 7,187 $ (91,240)
=========== =========== =========== ===========
Weighted average number
of shares outstanding 5,586,163 4,203,423 5,586,163 4,203,423
=========== =========== =========== ===========
Net Income (Loss) per common share $ 0.00 $ (0.01) $ 0.00 $ (0.02)
=========== =========== =========== ===========
</TABLE>
See accompanying notes to unaudited
condensed financial statements
6
<PAGE> 7
SCIENTIFIC NRG, INCORPORATED
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
Nine Months Ended March 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Additional
Common Stock Paid-In Accumulated Stockholders'
Shares Amount Capital Equity (Deficit) Equity (Deficit)
<S> <C> <C> <C> <C> <C>
Balance, June 30, 1998 4,203,423 $ 3,546,707 $ 11,970 $(3,594,340) $ (35,663)
Common stock issued in connection
with legal services rendered (Note 3) 502,740 45,246 -- -- 45,246
Common stock issued in connection
with services rendered under
the service contract (Note 3) 880,000 79,200 -- -- 79,200
Common stock issued in connection
with services not yet rendered by related
parties (Note 3) -- (46,832) -- -- (46,832)
Net loss - First Quarter -- -- -- (26,296) (26,296)
Balance, September 30, 1998 5,586,163 $ 3,624,321 $ 11,970 $(3,620,636) $ 15,655
=========== =========== =========== =========== ===========
Common stock issued in connection
with legal services rendered (Note 3) -- 105 -- -- 105
Common stock issued in connection
with services rendered by related
parties (Note 3) -- 9,000 -- -- 9,000
Net Income - Second Quarter -- -- -- 29,408 29,408
Balance, December 31, 1998 5,586,163 $ 3,633,426 $ 11,970 $(3,591,228) $ 54,168
=========== =========== =========== =========== ===========
Common stock issued in connection
with legal services rendered (Note 3) -- 2,580 -- -- 2,580
Common stock issued in connection
with services rendered by related
parties (Note 3) -- 6,000 -- -- 6,000
Net Income - Third Quarter -- -- -- 4,073 4,073
Balance, March 31, 1999 5,586,163 $ 3,642,006 $ 11,970 $(3,587,155) $ 66,821
=========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to unaudited
condensed financial statements
7
<PAGE> 8
SCIENTIFIC NRG, INCORPORATED
CONDENSED STATEMENTS OF CASH FLOW
Nine Months Ended March 31, 1999 and 1998
(UNAUDITED)
<TABLE>
<CAPTION>
March 31, March 31,
1999 1998
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES
Cash received from customers $ 347,863 $ 336,227
Cash paid to suppliers and employees (345,807) (361,230)
Interest paid -- --
Income Taxes Paid -- (1,600)
--------- ---------
Net cash used in operating activities 2,056 (26,603)
--------- ---------
CASH FLOW USED IN INVESTING ACTIVITIES
Purchase of equipment and
leasehold improvements $ -- $ --
CASH FLOW FROM FINANCING ACTIVITIES
Net decrease in line of credit -- --
Proceeds from advances and notes from
Company's officer and/or director -- --
Principal payments under
capital lease obligations -- --
Principal payments on advances -- --
Proceeds from issuance of common stock -- --
--------- ---------
Net cash provided by financing activities $ -- $ --
--------- ---------
Net increase (decrease) in cash $ 2,056 $ (26,603)
CASH
Beginning of period 14,367 35,300
--------- ---------
Ending of period $ 16,423 $ 8,697
========= =========
</TABLE>
See accompanying notes to unaudited
condensed financial statements
8
<PAGE> 9
SCIENTIFIC NRG, INCORPORATED
CONDENSED STATEMENTS OF CASH FLOW (Continued)
Nine Months Ended March 31, 1999 and 1998
(UNAUDITED)
<TABLE>
<CAPTION>
March 31, March 31,
1999 1998
<S> <C> <C>
RECONCILIATION OF NET INCOME (LOSS)
TO NET CASH USED IN OPERATING ACTIVITIES
Net Income (loss) $ 7,187 $(91,240)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Depreciation and amortization 1,299 2,061
Compensation expense arising from
professional services and service contracts 95,299 30,100
Change in assets and liabilities:
Trade receivables (5,931) 2,354
Inventories (12,800) (7,619)
Prepaid expenses and deposits 1,508 (3,192)
Accounts payable, accrued compensation
and other accrued expenses (84,506) 40,933
-------- --------
Net cash used in operating activities $ 2,056 $(26,603)
======== ========
</TABLE>
See accompanying notes to unaudited
condensed financial statements
9
<PAGE> 10
SCIENTIFIC NRG, INCORPORATED
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
For The Nine Months Ended March 31, 1999
Note 1. Basis of Presentation
In the opinion of the Company's management, the accompanying unaudited condensed
financial statements include all adjustments (consisting of normal accruals)
necessary for the fair presentation of its financial position at March 31, 1999,
results of operations for the nine months ended March 31, 1999 and 1998 and
cashflows for the nine months ended March 31, 1999 and 1998. Although the
Company believes that the disclosures in these financial statements are adequate
to make the information presented not misleading, certain information and
disclosures normally included in the financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
These financial statements should be read in conjunction with the Company's
audited financial statements included in the Company's Annual Report on Form
10-KSB filed with the Securities and Exchange Commission on August 15, 1998.
Operating results for the nine month period ended March 31, 1999 are not
necessarily indicative of the results that may be expected for the Company's
entire year ending June 30, 1999. The Financial Accounting Standards Board has
issued Statement of Financial Accounting Standards 128, "Earnings per Share" (
SFAS 128 ), which was effective for financial statements issued for periods
ending after December 15, 1997. The effect of adopting SFAS 128 has not yet been
determined.
Note 2. Inventories
Inventories are stated at the lower of cost or net realizable value. Cost is
determined under the standard cost method. Costs include materials, direct
labor, and an allocable portion of manufacturing overhead. The Company operates
in an industry in which its products are subject to design changes and
manufactured based upon customer specifications. Accordingly, should design
requirements change significantly or customer orders be canceled, the ultimate
net realizable value of such products could be less than the carrying value of
such amounts. At March 31, 1999, management believes that inventories are
carried at their net realizable value.
Note 3. Issuance of Common Stock for Services
The Company filed form S-8 on August 14, 1998 to register 1,382,740 shares of
common stock to related parties as compensation for legal and administrative
services rendered, and future services to be rendered during the fiscal year
ending June 30, 1999. The shares were valued at nine cents per share.
10
<PAGE> 11
PART II
Item 1. Legal Proceedings.
None.
Item 2. Changes in Securities.
During the quarter ended September 30, 1998, the Company issued
1,382,740 shares of its common stock, no par value, in exchange for legal
services and administrative service rendered and for future services during the
fiscal year ended June 30, 1999. The Company registered these shares by filing
form S-8 with the Securities Exchange Commission on August 14, 1998.
Item 3. Default Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security-Holders.
A Special Meeting of the Shareholders was held on August 15, 1998 which
resulted in the passing of two resolutions. First, the shareholders approved the
sale of the Company's downlight business which constitutes substantially all of
the Company's assets and operations. Secondly, the shareholders approved a
reverse split of up to one for every ten shares of outstanding common stock. The
second resolution was approved in conjunction with the Company's management
negotiations with non-affiliated companies regarding a potential reverse merger
acquisition (see Note 13 of the Company's Audited financial statements for the
fiscal year ended June 30, 1998 ).
During the quarter ended December 31, 1998 the aforementioned
negotiations were terminated. However, other companies, to consider potential
reverse mergers have approached the Company. Management may be required to sell
all operating assets of the Company as a condition precedent to a merger. (FLS)
Item 5. Other Information.
Subsequent to June 30, 1998, Daniel W. Parke who was the Company's chief
executive officer, resigned from his position as a director and officer of the
Company. This action was a condition subsequent to the acquisition of the
affiliated company, Parke Industries, by Strategic Resource Solutions. Wherein
Mr. Parke agreed to disengage from the Company to avoid any potential conflicts
of interest.
11
<PAGE> 12
Item 5. Other Information (continued).
Year 2000 Readiness
The Company has completed a year 2000 review of its information technology and
non-information technology systems in preparation for the year 2000.
The Company's material inventory and financial computer software systems were
purchased by third-party vendors and are used with minor modifications by the
Company. Many of these software vendors have provided, and the Company believes
that others will provide, updated software versions as part of the normal
periodic software upgrade process that address, or will address, the year 2000
issue. Generally, this upgrade process is expected to be completed by the end of
fiscal 1999 and does not cost the Company additional amounts beyond normal
recurring annual software maintenance fees paid by it. While the Company will
incur internal staff costs as well as certain outside consulting and other
expenditures related to its year 2000 readiness efforts, the total incremental
expenses are not expected to have a material impact on the Company's financial
condition or results of operations. As of March 31, 1999, the Company had
incurred less than $2,000 in expenses relating to its year 2000 readiness
efforts. The source of funds for these expenses has been the Company's working
capital, and the Company anticipates that it will fund its additional year 2000
expenses from its working capital.
The Company's most significant software system includes manufacturing-bill of
materials, purchase order management, open order reporting, receiving, inventory
and price management, general ledger, inventory, accounts receivable and
accounts payable functions. This system will be upgraded by the end of fiscal
1999, and has been certified by the software vendor as year 2000 compliant.
With regard to the Company's vendors, the Company is currently contacting its
significant raw materials vendors regarding their state of the year 2000
readiness. Management plans to complete the Company's assessment of the year
2000 readiness of its significant vendors by the end of the second quarter of
fiscal 1999. The Company uses numerous third-party vendors to provide other
goods and services, as well as office, and other supplies to the Company. There
is no assurance that the system of the vendors from whom the Company receives
inventory, goods and services will be year 2000 ready or that any failure on
their part to be year 2000 ready would not have an adverse impact on the Company
if a number of such vendors fail to be year 2000 ready on a timely basis.
The year 2000 issue presents a number of risks and uncertainties that could
impact the Company, from the failure of one or several of the Company's
significant vendors to timely fill the Company's inventory orders, to public
utility failures affecting the Company. The Company is currently analyzing these
risks and uncertainties and plans to develop contingency plans to address
certain of the material risks and uncertainties. While the Company continues to
believe the year 2000 issues described above will not materially affect its
financial position or results of operations, it remains uncertain as to what
extent, if any, the Company may be impacted.
12
<PAGE> 13
Item 6. Exhibits and Reports on Form 8-K.
(a) Documents filed as part of this Form 10-QSB
(1) Financial Statements.
Included in Part I of this report:
Condensed Balance Sheets as of March 31,1999 and June 30, 1998.
Condensed Statements of Operations for the Nine Months Ended March 31, 1999 and
1998.
Condensed Statements of Stockholders' Equity (Deficit) for the Nine Months Years
Ended March 31, 1999.
Condensed Statements of Cash Flows for the Nine Months Ended March 31,1999 and
1998.
Notes to Financial Statements.
(2) Financial Data Schedule.
(3) Exhibits.
The following exhibits are incorporated herein by reference from the Company's
initial Form 10 filing on or about November 12, 1986 or in other reports filed
pursuant to the Securities Exchange Act of 1934, as amended.
3.1 Articles of Incorporation as in effect on the date hereof (including
Amendment thereto effective December 28, 1988).
3.3 Bylaws.
4.1 Specimen of Share Certificate
4.6 Incentive Stock Option Plan.
10.7 Agreement (assigning patent rights).
10.8 Agreement Between Scientific Component Systems, Inc. and NRG, Inc., June
29, 1983.
10.9 Agreement, July, 1983 (assigning patent rights, with Exhibit 10.7 as
exhibit).
10.10 Assignment of Patent Rights from Scientific Component Systems, Inc. to
NRG, Inc., April 20, 1984.
10.11 Assignment of Patent Rights from Rhett McNair and James Helling to NRG,
Inc., April 20, 1984.
10.12 Assignment of Patent Rights from Rhett McNair, James Helling, William R.
Ingles and Gerald L. Fullerton to NRG, Inc., April 20, 1984.
10.13 Agreement Assigning Patent Rights from Scientific Component Systems, Inc.,
to NRG, Inc., April 20, 1984.
10.14 Assignment with Possibility of Reverter of Patent Rights from Rhett McNair
to NRG, Inc., January 21, 1986.
10.20 Form of Warrant Certificate.
10.27 New Lease for Company Headquarters in Tustin, California.
10.28 Royalty Agreement with Rhett McNair.
10.29 Consulting Agreement with MLF & Associates, Inc., April 1, 1990.
10.30 Promissory Note Payable to Oliver Washburn and Extension Thereto.
10.31 Promissory Note Payable to Malcolm Fickel and Extension Thereto.
10.32 Promissory Note Payable to Malcolm Fickel and Extension Thereto.
10.33 Promissory Note Payable to Malcolm Fickel and Extension Thereto.
10.34 Promissory Note Payable to Malcolm Fickel and Extension Thereto.
10.35 Deferred Compensation Agreement Between the Company and Malcolm Fickel.
10.36 Line of Credit Agreement with Bank.
10.37 Promissory Note Payable to Peter C. Kreft.
13
<PAGE> 14
10.38 Stock Purchase Agreement Between the Company and MLF & Associates, Inc.
Retirement Trust, April 30, 1993.
10.39 Stock Purchase Agreement Between the Company and Malcolm L. Fickel, April
30, 1993.
10.40 Stock Purchase Agreement Between the Company and Oliver K. Washburn, April
30, 1993.
10.41 Stock Purchase Agreement Between the Company and Peter C. Kreft, April 30,
1993.
10.42 Stock Purchase Agreement Between the Company and Thomas C. Moceri, April
30, 1993.
10.43 Financing Agreement Between the Company and Pre-Banc Business Credit,
Inc., May 21, 1993.
10.44 Addendum to Consulting Agreement between the Company and Malcolm L.
Fickel, June 30, 1993.
10.45 Leasing Agreement Between the Company and Autocar Leasing Company,
September 9, 1993.
10.46 Stock Warrant Agreement Between the Company and Eddie R. Fischer,
September 9, 1993.
10.47 Note and Revolving Loan Agreement Between the Company and William T.
Moceri, IRA, November 15, 1994.
10.48 Promissory Note Payable to Thomas C. Moceri, Trustee, Thomas C. Moceri
Profit Sharing Plan, September 28, 1994.
10.49 Promissory Note Payable to Oliver Washburn, March 7, 1995.
10.50 Promissory Note Payable to Oliver Washburn, March 7, 1995.
10.51 General Release Agreement Between the Company and Peter Kreft, June 9,
1995.
10.52 Promissory Note Payable to Oliver Washburn, September 14, 1995.
10.53 Promissory Note Payable to Oliver Washburn, November 13, 1995.
10.54 Promissory Note Payable to Oliver Washburn, April 26, 1996.
10.55 Promissory Note Payable to Oliver Washburn, July 18, 1996.
10.56 Workout Agreement dated August 30, 1996.
10.57 Secured Promissory Note to Malcolm L. Fikel, September 11, 1996.
10.58 Secured Promissory Note to Oliver K. Washburn, September 11, 1996.
10.59 Subordinated Cash Flow Promissory Note to Oliver K. Washburn, September
30, 1996.
10.60 Debt For Equity Swap Agreement.
10.61 Administrative Services Agreement.
10.62 Non-Qualified Stock Option Agreement.
10.63 Employment Agreement with Jonathan D. Forgy.
10.64 Employment Agreement with Daniel W. Parke.
28.2 Patent No. 4,520,436 (X-18 Series Downlight).
28.4 Patent No. 4,595,969 (Lamp Mounting Apparatus and Method)-EXPIRED.
28.5 Patent No. 4,641,228 (Lamp Mounting Apparatus and Method)-EXPIRED.
28.6 Patent No. 4,700,110 (Lamp Switching)-EXPIRED.
28.7 Patent No. 4,704,664 (Lamp Apparatus)-EXPIRED.
28.8 Trademarks Registered (Lightning Bolt Logo, Scientific NRG Component
Systems, SCS, X-18) and Notice of Publication of Trademark, "Switchit"-EXPIRED.
28.9 Patent No. 4,922,393 (Lamp Apparatus)-EXPIRED.
(b) Reports on Form 8-K
There were no reports of Form 8-K filed during the third quarter of the fiscal
year ending June 30,1999.
14
<PAGE> 15
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
Date: May 10, 1999
SCIENTIFIC NRG, INCORPORATED,
a Minnesota Corporation
By: /s/ Jonathan D. Forgy
Name: Jonathan D. Forgy
Title: President
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 registrant and
in the capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signatures Title Date
- ---------- ----- ----
<S> <C> <C>
/s/ Jonathan D. Forgy (1) (2) May 10, 1999
- ----------------------------
Jonathan D. Forgy
/s/ Oliver K. Washburn (1) (3) May 10, 1999
- ----------------------------
Oliver K. Washburn
/s/ Richard O. Weed (1) May 10, 1999
- ----------------------------
Richard O. Weed
</TABLE>
(1) Director of the registrant.
(2) President of the registrant.
(3) Treasurer of the registrant.
15
<PAGE> 16
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Description
- ------- -----------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AUDITED
FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FORM 10-KSB.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-START> JUL-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 16,423
<SECURITIES> 0
<RECEIVABLES> 68,343
<ALLOWANCES> 9,658
<INVENTORY> 93,423
<CURRENT-ASSETS> 168,731
<PP&E> 18,274
<DEPRECIATION> 17,445
<TOTAL-ASSETS> 169,560
<CURRENT-LIABILITIES> 102,739
<BONDS> 0
0
0
<COMMON> 3,642,006
<OTHER-SE> (3,472,446)
<TOTAL-LIABILITY-AND-EQUITY> 169,560
<SALES> 343,969
<TOTAL-REVENUES> 343,969
<CGS> 199,397
<TOTAL-COSTS> 336,182
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 7,787
<INCOME-TAX> 600
<INCOME-CONTINUING> 7,187
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,187
<EPS-PRIMARY> 0.00
<EPS-DILUTED> 0.00
</TABLE>
