<PAGE> 1
Securities and Exchange Commission
Washington, D.C. 20549
Form 10 - K /A
Annual Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the fiscal year ended February 29, 1996
Commission File No. 1-9542
TECHKNITS, INC.
(Exact Name of Company as specified in its charter)
New York 11-2343548
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
10 Grand Avenue, Brooklyn, New York 11205
(Address of Principal Executive Office)
The Company's telephone number including area code: (718) 875-3299
Securities Registered Pursuant to Section 12(b) of the Act: None
Securities Registered Pursuant to Section 12(g) of the Act:
Title of Each Class Name of each exchange on which registered
------------------- -----------------------------------------
Common Stock NASDAQ
(Par Value $.003 per Share)
Indicate by check mark whether the Company (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 for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirement for 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-K or any amendment to this
form 10-K. [ ]
<PAGE> 2
[Letterhead of Mayer Rispler & Company, P.C.]
INDEPENDENT AUDITORS' REPORT
Board of Directors:
TechKnits, Inc. & Subsidiary
Brooklyn, New York
We have audited the accompanying consolidated balance sheet of TechKnits,
Inc. & Subsidiary as of February 29, 1996 and February 28, 1995, and the related
consolidated statements of operations, shareholders' equity and cash flows for
each of the years in the three-year period ended February 29, 1996. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of TechKnits, Inc. & Subsidiary at February 29,
1996 and February 28, 1995, and the results of its operations and cash flows for
each of the years in the three year period ended February 29, 1996, in
conformity with generally accepted accounting principles.
Respectfully submitted,
/s/ Mayer Rispler & Company, P.C.
Mayer Rispler & Company, P.C.
Certified Public Accountants
New York, New York
May 27, 1996,
Except as to the first paragraph above,
statement of cash flows and note 11
which are as of March 20, 1997
<PAGE> 3
TECHKNITS, INC. & SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
------
February 29, February 28,
1996 1995
---- ----
<S> <C> <C>
Current Assets
Cash $ 133,644 $ 112,615
Certificate of deposit (Note 5) 2,570,648 2,439,865
Accounts receivable, (net of allowance for
doubtful accounts of $29,388 and $14,548 in
1996 and 1995, respectively) (Notes 2 & 5) 1,174,175 303,679
Inventories (Notes 3 & 5) 4,833,332 4,804,838
Prepaid expenses and other current assets 228,045 99,829
Loan receivable - officer (Note 11) 95,863 175,000
----------- -----------
Total Current Assets $ 9,035,707 $ 7,935,826
Property and Equipment - Net (Notes 4 & 6) 3,946,975 4,277,427
Other assets 215,001 235,747
Loan receivable - officer (Net of Current Portion) - 0 - 137,910
----------- -----------
TOTAL ASSETS $13,197,683 $12,586,910
=========== ===========
LIABILITIES & SHAREHOLDERS' EQUITY
----------------------------------
Current Liabilities
Notes payable bank (Note 5) $ 2,235,000 $ 2,050,000
Accounts payable and accrued expenses 1,533,031 857,900
Current maturities of long-term debt and
capital leases (Note 6) 116,153 132,361
Income taxes payable (Note 10) 311,341 340,080
----------- -----------
Total Current Liabilities $ 4,195,525 $ 3,380,341
Long-term debt and capital leases (Note 6) 539,037 648,429
Deferred income taxes (Note 10) 860,441 900,634
----------- -----------
TOTAL LIABILITIES $ 5,595,003 $ 4,929,404
----------- -----------
Commitments and Contingencies (Notes 8 and 9)
Shareholders' Equity (Note 12)
Preferred stock, $.003 par value 2,500,000
shares authorized, none issued
Common stock, $.003 par value 10,000,000
shares authorized, 1,900,000 shares issued
and outstanding $ 5,700 $ 5,700
Additional paid-in capital 4,648,729 4,648,729
Retained earnings 3,257,217 3,227,317
Less: Treasury stock, 179,562 and 124,662
shares of common stock - at February 29, 1996
and February 28, 1995, respectively, at cost (308,966) (224,240)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 7,602,680 7,657,506
----------- -----------
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY $13,197,683 $12,586,910
=========== ===========
</TABLE>
The accompanying notes are an integral part of this financial statement.
<PAGE> 4
TECHKNITS, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED
<TABLE>
<CAPTION>
February 29, February 28, February 28,
1996 1995 1994
---- ---- ----
<S> <C> <C> <C>
Revenues - Net (Note 2) $ 14,191,292 $ 19,307,010 $ 15,318,354
Cost of Goods Sold 12,096,245 16,465,146 13,273,279
------------ ------------ ------------
Gross Profit 2,095,047 2,841,864 2,045,075
------------ ------------ ------------
Operating Expenses
Selling and shipping expenses 871,102 1,218,829 1,176,345
General & administrative expenses 731,845 892,260 893,938
------------ ------------ ------------
Total Operating Expenses 1,602,947 2,111,089 2,070,283
------------ ------------ ------------
Operating Income (Loss) 492,100 730,775 (25,208)
------------ ------------ ------------
Other Income (Expense)
Interest income (Note 5) 138,997 95,110 65,941
Interest expense (498,969) (514,123) (388,821)
------------ ------------ ------------
Total (359,972) (419,013) (322,880)
------------ ------------ ------------
Income (Loss) Before
Income Tax Provision (Benefit) 132,128 311,762 (348,088)
Provision (Benefit) for
Income Taxes (Note 10) 47,921 135,837 (129,658)
------------ ------------ ------------
NET INCOME (LOSS) $ 84,207 $ 175,925 $ (218,430)
============ ============ ============
Earnings (Loss) Per Share $ .05 $ .10 $ (.12)
============ ============ ============
Average Number of Common Shares
Outstanding During the Period 1,736,389 1,822,427 1,850,000
============ ============ ============
</TABLE>
The accompanying notes are an integral part of this financial statement.
<PAGE> 5
TECHKNITS, INC. & SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED
<TABLE>
<CAPTION>
February 29, February 28, February 28,
1996 1995 1994
---- ---- ----
<S> <C> <C> <C>
Cash Flows From Operating Activities
Net income (loss) $ 84,207 $ 175,925 $ (218,430)
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating activities:
Depreciation and amortization 603,452 570,552 537,031
Deferred income taxes (40,193) - 0 - 10,618
Decrease (Increase) In Assets:
Certificate of Deposit (130,783) (89,227) 343,201
Accounts receivable (870,496) 1,229,356 (1,155,243)
Inventory (28,494) 451,836 (406,573)
Prepaid expenses and other current assets (128,216) 56,360 (81,093)
Increase (Decrease) In Liabilities:
Accounts payable & accrued expenses 675,131 (684,826) 363,962
Income taxes payable (28,739) (30,179) (150,203)
--------- ----------- -----------
Net Cash Provided By (Used in)
Operating Activities 135,869 1,679,797 (756,730)
--------- ----------- -----------
Cash Flows From Investing Activities
Acquisition of fixed assets (270,318) (730,231) (344,166)
Other assets 18,064 (53,101) (27,702)
--------- ----------- -----------
Cash Used in Investing Activities (252,254) (783,332) (371,868)
--------- ----------- -----------
Cash Flows From Financing Activities
(Repayment) Proceeds of bank loan 185,000 (1,000,000) 1,300,000
Borrowings - 0 - 387,170 - 0 -
Payments on long-term debt (125,600) (156,673) (94,237)
Loans receivable officer - net 217,047 74,330 (22,922)
Purchase of Treasury Stock (84,726) (126,844) - 0 -
Dividends (54,307) (67,131) - 0 -
--------- ----------- -----------
Net Cash (Used In) Provided By
Financing Activities 137,414 (889,148) 1,182,841
--------- ----------- -----------
NET INCREASE IN CASH 21,029 7,317 54,243
CASH, BEGINNING OF YEAR 112,615 105,298 51,055
--------- ----------- -----------
CASH, END OF YEAR $ 133,644 $ 112,615 $ 105,298
========= =========== ===========
</TABLE>
The accompanying notes are an integral part of this financial statement.
<PAGE> 6
TECHKNITS, INC. & SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED
Supplemental Disclosures of Cash Flow Information:
<TABLE>
<CAPTION>
February 29, February 28, February 28,
1996 1995 1994
---- ---- ----
<S> <C> <C> <C>
Operating activities:
Cash paid during the year for:
Interest $489,418 $ 512,971 $ 428,657
======== =========== ===========
Income taxes $ 77,093 $ 223,928 $ 8,882
======== =========== ===========
Supplemental Schedule of Noncash
Investing and Financing Activities:
Capital lease obligations incurred
for purchase of fixed assets $ - 0 - $ 387,170 $ - 0 -
======== =========== ===========
</TABLE>
The accompanying notes are an integral part of this financial statement.
<PAGE> 7
TECHKNITS, INC. & SUBSIDIARY
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED FEBRUARY 29, 1996, FEBRUARY 28, 1995 AND FEBRUARY 28, 1994
<TABLE>
<CAPTION>
Additional Treasury Loans
Capital Stock Paid-In Retained Stock Receivable
Shares Dollars Capital Earnings Shares Dollars Officer Totals
--------- ------ ---------- ---------- ------ --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance - February 28, 1993 1,900,000 $5,700 $4,648,729 $3,336,953 50,334 $ (97,396) $(364,318) $7,529,668
Net loss (218,430) (218,430)
Increase in loans receivable
officer (22,922) (22,922)
--------- ------ ---------- ---------- ------ --------- --------- ----------
Balance - February 28, 1994 1,900,000 $5,700 $4,648,729 $3,118,523 50,334 $ (97,396) $(387,240) $7,288,316
Net Income 175,925 175,925
Purchase of Treasury Stock 74,328 (126,844) (126,844)
Recharacterization of loans
receivable officer (Note 11) 320,109 320,109
Constructive Dividend
(Pursuant to an Internal
Revenue Service audit of
officer's personal return) (67,131) 67,131
--------- ------ ---------- ---------- ------ --------- --------- ----------
Balance - February 28, 1995 1,900,000 $5,700 $4,648,729 $3,227,317 124,662 $(224,240) $ - 0 - $7,657,506
Net Income 84,207 84,207
Purchase of Treasury Stock 54,900 (84,726) (84,726)
Dividend (Note 13) (54,307) (54,307)
--------- ------ ---------- ---------- ------ --------- --------- ----------
Balance - February 29, 1996 1,900,000 $5,700 $4,648,729 $3,257,217 179,562 $(308,966) $ - 0 - $7,602,680
========= ====== ========== ========== ====== ========= ========= ==========
</TABLE>
The accompanying notes are an integral part of this financial statement.
<PAGE> 8
TECHKNITS, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. DESCRIPTION OF OPERATIONS
The Company is a vertically integrated manufacturer of knitted sweaters,
which it markets throughout the U.S.A. on a pre-order basis to multi-unit
stores and to wholesalers that sell under their own private labels.
2. SIGNIFICANT ACCOUNTING POLICIES
Concentration of Credit Risk - The Company maintains credit insurance on
most of its accounts. For those accounts which are not insured the Company
monitors its exposure for credit losses and maintains allowances for
anticipated losses.
Inventories - Inventories consist of finished garments, work in progress,
yarns, fabrics and supplies. Inventories are stated at the lower of cost or
market, using a first-in first-out (FIFO) basis.
Property and Equipment - Property and equipment is stated at cost.
Depreciation and amortization are computed on the straight-line method over
estimated useful lives:
Leasehold Improvements - Life of the related lease, which is not in
excess of the estimated useful life.
Furniture, Fixtures and Office Equipment - 6 to 10 years.
Manufacturing Equipment - 12 years.
Revenue Recognition - The Company recognizes revenue at the time goods are
shipped and title to goods sold passes to the customer.
Principles of Consolidation - The consolidated financial statements include
the results of operations of the Company and its subsidiary. All
intercompany transactions and balances have been eliminated in
consolidation.
Earnings Per Share - Earnings (loss) per share is calculated by dividing
net income (loss) by the weighted average number of shares of common stock
outstanding during the year.
<PAGE> 9
TECHKNITS, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Income Taxes - Income taxes are provided for all transactions, regardless
of the year the transactions are reported for income tax purposes. The
differences in the timing of recognition of income and expenses for income
tax purposes are reflected as deferred income taxes.
Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of the revenues and
expenses during the reported period. Actual results could differ from those
estimates.
3. INVENTORIES
Inventories consist of the following:
February 29, February 28,
1996 1995
---- ----
Raw materials and supplies $2,064,189 $1,162,731
Finished goods 2,521,187 3,115,298
Work in progress 247,856 526,809
---------- ----------
Total $4,833,232 $4,804,838
========== ==========
4. PROPERTY AND EQUIPMENT
Balances of major classes of assets and allowances for depreciation and
amortization are as follows:
February 29, February 28,
1996 1995
---- ----
Factory machinery and equipment $7,153,109 $6,954,130
Leasehold improvements 1,138,100 1,087,425
Furniture and fixtures 158,529 145,050
Computers 126,085 118,900
---------- ----------
Property and equipment - at cost 8,575,823 8,305,505
Less accumulated depreciation 4,628,848 4,028,078
---------- ----------
Property and equipment - net $3,946,975 $4,277,427
========== ==========
Depreciation expense for the years ended February 29, 1996, and February
28, 1995 were $600,770 and $567,871, respectively.
<PAGE> 10
TECHKNITS, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
5. LOAN PAYABLE TO BANK
The Company has a $6,000,000 line-of-credit agreement (the "Agreement")
with a bank expiring September 1, 1996 which provides for funds to be
advanced based on a specific formula. At February 29, 1996, the Company had
outstanding borrowings under this agreement of $2,235,000. Such loan bears
interest at the rate of 3/4 percent above the bank prime rate (prime rate
being 8 1/4 percent at February 29, 1996) and is collateralized by a
certificate of deposit and related interest, accounts receivables, work in
process and finished goods, inventory and certain machinery as well as
assignment of Keyman's life insurance, and credit insurance covering
accounts receivable. The loan is also guaranteed by the President of the
Company.
6. LONG TERM DEBT
Long term debt for the purchase and financing of knitting machinery
consists of the following:
Principal
Monthly Amounts Payable At
Annual Installments ------------------
Financial Interest (Including February February
Institution Rate Interest) 29, 1996 28, 1995
----------- ---- --------- -------- --------
New York Business
Development Corp. (1) 7.5% $ 4,857 $395,846 $422,909
Various 12.25% - 15.5% 8,464 259,344 357,881
-------- -------- --------
Totals $ 13,321 $655,190 $780,790
======== ======== ========
(1) In 1990, the Company obtained from New York Business Development Corp.
a term loan to purchase machinery, repayable at the rate of $4,857 per
month, including interest at the rate of 7.5 percent per annum. The
loan is secured by a first mortgage on real property, at 10 Grand
Avenue, owned by the Company's President and a first security interest
in certain machinery. The loan is also guaranteed by the Company's
President and by 10 Grand Realty Corporation. The loan agreement has
various stipulations, which include minimum net current assets,
minimum net worth, and maximum officers' compensation.
<PAGE> 11
TECHKNITS, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Annual maturities of long term debt are as follows:
Year Ending
February 28,
------------
1997 116,153
1998 112,392
1999 112,531
2000 56,443
Thereafter 257,671
--------
Total 655,190
Less Current Portions 116,153
--------
Long term debt $539,037
========
7. CONCENTRATION
For the years ended February 29, 1996 and February 28, 1995, revenues
derived from sales to customers accounting for at least 10 percent of total
sales amounted 65 percent and 57 percent, respectively.
8. COMMITMENTS AND CONTINGENCIES
The Company leases an entire building (totalling 65,000 sq. ft.) at 10
Grand Avenue, Brooklyn, New York, with 10 Grand Realty Corp., a company
owned by the President of the Company, for manufacturing, administrative
and executive offices. This lease, which expires July 31, 1999, provides
for an annual base rent of $165,000 plus real estate taxes, assessments,
insurance, utilities and repairs.
The Company also leases space in various buildings from the President of
the Company as follows:
Annual Rent
Excluding Real
Estate Taxes
Square and
Location Feet Other Expenses
-------- ---- --------------
17-21 Grand Ave 7,500 $48,000
23-27 Grand Ave 15,000 84,000
6 Grand Ave 16,000 72,000
All leases expire July 31, 1999.
The Company leases a showroom in New York City at an annual base rent of
$31,200. The lease expires January 31, 1998.
<PAGE> 12
TECHKNITS, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
Future minimum lease payments for rental of manufacturing, warehousing and
administrative offices are as follows:
Minimum
Rental
Year Commitment
---- ----------
1997 $400,200
1998 397,600
1999 369,000
2000 153,750
Rent charged to operations excluding related expenses in years ended
February 29, 1996, February 28, 1995 and February 28, 1994 were $406,850,
$330,367, and $251,780, respectively.
9. LEGAL PROCEEDINGS
In March 1993, the Company and its President were added as defendants to an
action brought by Chubb & Son, Inc., in the United States District Court
for the Eastern District of New York, for conspiracy. The basis of the
claim against the Company, in the amount of $1,200,000 plus punitive
damages, is that Chubb paid the Company an excessive sum for fire, water
and smoke damage based on inflated figures in an amount to be determined at
trial. The Company and its President have denied the allegations of the
complaint and intend to defend against the claims. As per company counsel,
the claims have no merit and are vigorously being contested.
10. INCOME TAXES
The components of income tax expense (benefit) are as follows:
Years Ended
February February February
29, 1996 28, 1995 28, 1994
--------- --------- ---------
Income (loss) before taxes: $ 132,128 $ 311,762 $(348,088)
========= ========= =========
Current:
Federal provision (benefit) $ 29,836 $ 104,837 $ (89,431)
State and local 19,629 31,000 - 0 -
Deferred:
Federal (1,136) - 0 - (14,139)
State and Local (408) - 0 - - 0 -
Provision for 1989 IRS audit
assessment - 0 - - 0 - 120,637
Benefit from abatement of City
Corporation tax assessment
previously provided for - 0 - - 0 - (146,725)
--------- --------- ---------
Income tax expense (benefit) $ 47,921 $ 135,837 $(129,658)
========= ========= =========
<PAGE> 13
TECHKNITS, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
10. INCOME TAXES (CONTINUED)
Deferred income taxes consists primarily of accelerated depreciation
recognized in different periods for financial reporting and income tax
purposes.
The provision (benefit) for income taxes differs from amounts computed at
statutory rates as follows:
1996 1995 1994
---- ---- ----
Federal statutory income tax
(benefit) rate 22.0% 34.0% (34.0%)
Tax on non-deductible expenses - 0 - - 0 - 4.0%
State and local corporate tax
net of net operating loss benefit
for 95 and 94 14.0% 9.5% - 0 -
Prior period IRS audit - 0 - - 0 - 34.7%
Abatement of City Corporation
tax assessment - 0 - - 0 - (42.0%)
----- ----- -----
Total effective tax (benefit) rates 36.0% 43.5% (37.3%)
===== ===== =====
The Company has adopted Financial Accounting Standard No. 109 "Accounting
for Income Taxes", which does not have a material effect on the Company's
financial statements.
11. RELATED PARTY TRANSACTIONS
For fiscal years ended, February 29, 1996, 1995 and 1994, the Company was
owed by its President non interest bearing loans of $95,863, $312,910 and
$387,240, respectively. Effective June 15, 1995, these loans are being
repaid at a rate of $25,000 a month including interest at 7%.
During the years ended February 29, 1996, 1995 and 1994, the Company
incurred professional fees of $15,324, $7,553 and $14,989, respectively, to
Edwin Schwimmer, Esq., a member of the Board of Directors.
The Company leases space for its manufacturing and administrative
facilities in various buildings owned by the president of the Company, as
disclosed in note 8.
<PAGE> 14
TECHKNITS, INC. & SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)
12. SHAREHOLDERS' EQUITY
In December 1990, the Company's shareholders approved a resolution of the
Board of Directors authorizing a one for three reverse stock split (of
three old shares of common stock par value $.001 per share for one new
share of common stock par value $.003 per share). Accordingly, the number
of shares of common stock outstanding was reduced to 1,900,000 shares $.003
par value per share. At the same time, the Company amended its Certificate
of Incorporation to change the number of authorized shares from 20,000,000
shares $.001 par value per share to 12,500,000 shares $.003 par value per
share.
In connection with its public offering in July of 1987, the Company issued
to the Underwriters 100,000 five-year Underwriters' Warrants, each warrant
entitling the Underwriters to purchase a Unit for $7.50. Each Unit consists
of 2 shares of Common Stock, $.001 par value, one Class A Warrant and one
Class B Warrant each exercisable at $3.75 and $4.50 per share,
respectively, into one share of Common Stock $.001 par value. In April of
1992, the Company extended the expiration date of such warrants to July 1,
1995. As of July 1, 1995, none of these warrants were exercised and they
expired.
13. CASH DIVIDEND
On September 15, 1995, the Board of Directors declared a cash dividend of
$.07 per common share to shareholders of record on that date, which was
paid on October 30, 1995.
This special dividend was the result of a constructive dividend given to an
officer of the corporation as determined by an Internal Revenue Service
audit. (see consolidated statement of shareholders' equity)
14. SUBSEQUENT EVENT
On March 11, 1996, the Company sustained inventory losses of $900,000 due
to a flood which will be covered by insurance. As of the date of this
report, the Company has received an advance of $250,000 from the insurance
company.
<PAGE> 15
TECHKNITS, INC. & SUBSIDIARY
SCHEDULE II - AMOUNTS DUE FROM DIRECTORS, OFFICERS
AND PRINCIPAL HOLDERS OF EQUITY SECURITIES
FOR THE YEARS ENDED
February 29, February 28, February 28,
1996 1995 1994
---- ---- ----
Balance at Beginning of Period $312,910 $387,240 $364,318
Additions - 0 - 368,479 112,780
Deductions 217,047 442,809 89,858
-------- -------- --------
Balance at End of Period $ 95,863 $312,910 $387,240
======== ======== ========
<PAGE> 16
TECHKNITS, INC. & SUBSIDIARY
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT
Balance at Balance
Beginning Additions at End
Description of Property of period at Cost of Period
--------- ------- ---------
February 29, 1996:
Machinery and Equipment $6,954,129 $ 198,980 $7,153,109
Leasehold Improvements 1,087,425 50,675 1,138,100
Furniture and Fixtures 145,050 13,479 158,529
Office Computers 118,900 7,185 126,085
---------- ---------- ----------
Total $8,305,504 $ 270,319 $8,575,823
========== ========== ==========
February 28, 1995:
Machinery and Equipment $6,390,586 $ 563,543 $6,954,129
Leasehold Improvements 932,610 154,815 1,087,425
Furniture and Fixtures 144,300 750 145,050
Office Computers 107,778 11,122 118,900
---------- ---------- ----------
Total $7,575,274 $ 730,230 $8,305,504
========== ========== ==========
February 28, 1994:
Machinery and Equipment $6,115,914 $ 274,672 $6,390,586
Leasehold Improvements 913,581 19,029 932,610
Furniture and Fixtures 106,812 37,488 144,300
Office Computers 94,801 12,977 107,778
---------- ---------- ----------
Total $7,231,108 $ 344,166 $7,575,274
========== ========== ==========
<PAGE> 17
TECHKNITS, INC. & SUBSIDIARY
SCHEDULE VI - ACCUMULATED DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT
Balance at Additions/ Balance
Beginning Changes to at End
Description of Property of period Cost & Expenses of Period
--------- --------------- ---------
February 29, 1996:
Machinery and Equipment $3,432,483 $ 537,442 $3,969,925
Leasehold Improvements 446,864 27,333 474,197
Furniture and Fixtures 81,033 9,272 90,305
Office Computers 67,697 26,723 94,420
---------- ---------- ----------
Total $4,028,077 $ 600,770 $4,628,847
========== ========== ==========
February 28, 1995:
Machinery and Equipment $2,928,902 $ 503,581 $3,432,483
Leasehold Improvements 422,598 24,266 446,864
Furniture and Fixtures 72,032 9,001 81,033
Office Computers 36,675 31,022 67,697
---------- ---------- ----------
Total $3,460,207 $ 567,870 $4,028,077
========== ========== ==========
February 28, 1994:
Machinery and Equipment $2,455,417 $ 473,485 $2,928,902
Leasehold Improvements 401,172 21,426 422,598
Furniture and Fixtures 61,370 10,662 72,032
Office Computers 7,900 28,775 36,675
---------- ---------- ----------
Total $2,925,859 $ 534,348 $3,460,207
========== ========== ==========
<PAGE> 18
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this amended report to be signed on
its behalf by the undersigned, thereunto duly authorized, in the City of New
York, State of New York, on the 20th day of March 1997.
TECHKNITS, INC.
/s/ Simon Taub
By:_____________________________________
Simon Taub, Chairman of the Board
Pursuant to the requirements of the Securities Exchange Act of 1934 this amended
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and the dates indicated.
Signature Title Date
- --------- ----- ----
/s/ Simon Taub
______________________
Simon Taub Chairman of the Board, March 20, 1997
President, and Chief
Executive Officer
/s/ Moshe Taub
______________________
Moshe Taub Director, Vice President, March 20, 1997
Treasurer, and Chief
Financial Accounting Officer
/s/ Mark Terkeltaub
______________________
Mark Terkeltaub Director, Vice President March 20, 1997
and Secretar
/s/ Edwin Schwimmer
______________________
Edwin Schwimmer Director March 20, 1997
