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 quarterly period ended SEPTEMBER 30,2000
[ ] Transition Report Under to Section 13 or 15(d) of The Securities
Exchange Act of 1934
Commission File Number: 0-16052
QUADRAX CORPORATION
--------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 05-0420158
------------ -----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
618 Main Street, West Warwick, Rhode Island 02893
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(Address of principal executive offices) (Zip Code)
(401) 821-1700
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(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last
report)
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
Check whether the issuer has filed all documents and reports required to be
filed by Section 12,13, or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
Yes No X
As of September 30, 2000, there were outstanding 24,512,899 shares of Common
Stock, par value $.000009 per share.
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Part I - Financial Information
Page
Item 1 Consolidated Financial Statements
Consolidated Balance Sheets at September 30, 2000
and at December 31, 1999 (Unaudited) 3
Consolidated Statements of Operations for the
three and nine months ended September 30, 2000
and September 30, 1999 (Unaudited) 5
Consolidated Statements of Cash Flows for the
nine months ended September 30, 2000 and
September 30, 1999 (Unaudited) 6
Notes to Consolidated Financial Statements
(Unaudited) 8
Item 2 Management's Discussion and Analysis of Financial
Conditions and Results of Operations. 12
Part II - Other Information
Item 6 Exhibits and Reports on Form 8-K 17
Signature 18
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<TABLE>
<CAPTION>
Quadrax Corporation
Consolidated Balance Sheets
(Unaudited)
ASSETS
September 30, December 31,
2000 1999
--------- ---------
Current assets
<S> <C> <C>
Cash and cash equivalents $ 8,162 $ 72,567
Accounts receivable, less allowances
of $329,518, at September 30, 2000 and
at December 31, 1999 208,662 2,256,486
Inventories 143,745 2,315,918
Attorney's escrow -0- 40,460
Unamortized loan premium -0- 1,242,698
Other current assets 77,390 117,818
--------- ---------
TOTAL CURRENT ASSETS 437,959 6,045,947
Property, plant and equipment, net 1,919,083 2,319,941
--------- ---------
Other assets 146,894 114,317
--------- ---------
TOTAL ASSETS $2,503,936 $8,480,205
========= =========
</TABLE>
See accompanying notes to the consolidated financial statements.
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Quadrax Corporation
Consolidated Balance Sheets (continued)
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
--------- ---------
Current liabilities:
<S> <C> <C>
Accounts payable $3,249,999 2,705,493
Accrued expenses 794,810 608,835
Current portion of long term debt 1,386,857 3,222,052
--------- ---------
TOTAL CURRENT LIABILITIES 5,431,666 6,536,380
Long-term debt, less current portion 4,204,699 4,672,967
----------- -----------
TOTAL LIABILITIES 9,636,365 11,209,347
----------- -----------
Stockholders' equity:
Common stock 221 221
Additional paid-in capital 77,055,257 77,055,257
Retained earnings, deficit (82,461,358) (78,058,071)
----------- -----------
(5,405,880) (1,002,593)
Less: Treasury stock, at cost (1,726,549) (1,726,549)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (7,132,429) (2,729,142)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,503,936 $ 8,480,205
========== ==========
</TABLE>
See accompanying notes to the consolidated financial statements.
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Quadrax Corporation
Condensed Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Nine Months
Ended September 30, Ended September 30,
------------------------------ -------------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
NET SALES $1,390,070 $3,401,159 $8,399,000 $10,479,797
COST OF GOODS SOLD 1,112,056 3,177,285 9,380,090 9,747,191
--------- --------- --------- ----------
Gross Profit 278,014 223,874 (981,090) 732,606
OPERATING EXPENSES:
Selling, general and
administrative 350,800 518,946 1,901,514 1,561,969
--------- --------- --------- ---------
Income(Loss)
from operations (72,786) (295,072) (2,882,604) (829,363)
OTHER INCOME (EXPENSE):
Interest expense (225,270) (136,734) (645,204) (407,833)
Other, net -0- (16,505) (5,590) (30,857)
Loan premium discount -0- -0- (869,889) -0-
-------- -------- --------- --------
Income(Loss)
Continuing Operations (298,056) (448,311) (4,403,287) (1,268,053)
-------- -------- --------- ---------
NET INCOME(LOSS) ($298,056) ($448,311) ($4,403,287) ($1,268,053)
========= ========= ========= =========
NET LOSS PER COMMON SHARE ($0.01) ($0.03)
========= ========= ========= =========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 24,512,899 44,453,334 24,512,899 44,453,334
========== ========== ========== ===========
See accompanying notes to the consolidated financial statements.
</TABLE>
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Quadrax Corporation
Consolidated Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
September 30, 2000 September 30, 1999
---------------- ----------------
Cash flows from operating activities:
<S> <C> <C>
Net loss ($4,403,287) ($1,268,053)
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation & amortization of fixed assets 481,746 387,090
Amortization of intangibles 1,242,698 15,480
Increase (decrease) in cash resulting
from changes in:
Accounts receivable 2,047,824 (325,977)
Inventories 2,172,173 (697,286)
Prepaid expenses and other (32,577) 307,018
Accounts payable and accrued expenses 730,481 (925,605)
----------- ----------
Net cash used in operating activities 2,239,058 (2,507,333)
----------- ----------
Cash flows from investing activities:
Capital expenditures, net -0- (122,257)
Other intangible assets purchased -0- (53,197)
----------- ----------
Net cash used in investing activities -0- (175,454)
----------- ----------
Cash flows from financing activities:
Advances by private investor -0- 1,705,000
Issuance of debt -0- 11,677,400
Repayment of debt (2,303,463) (10,743,942)
----------- ----------
Net cash provided by financing activities (2,303,463) 2,638,458
----------- ----------
Net increase (decrease) in cash
and cash equivalents (64,405) (44,329)
Cash and cash equivalents at
beginning of period 72,567 44,805
----------- ----------
Cash and cash equivalents
at end of period $ 8,162 $ 476
========== ==========
Supplemental cash flow information:
Cash interest paid $ -0- $ 256,121
========== ==========
</TABLE>
See accompanying notes to the consolidated financial statements.
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QUADRAX CORPORATION
Consolidated Statements of Cash Flows (continued)
for the Nine Months Ended
September 30, 2000 and September 30, 1999
Supplemental schedule of significant noncash transactions:
2000:
None
1999:
None
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Quadrax Corporation
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Significant Accounting Policies.
The unaudited condensed consolidated financial statements presented herein have
been prepared in accordance with the instructions to Form 10-QSB and do not
include all of the information and note disclosures required by generally
accepted accounting principles. In the opinion of management, such condensed
consolidated financial statements include all adjustments, consisting only of
normal recurring adjustments, necessary to present fairly the Company's
financial position as of September 30, 2000 and the results of operations for
the nine months ended September 30, 2000 and September 30, 1999. The results of
operations for the nine month period ended September 30, 2000 may not be
indicative of the results that may be expected for the year ending December 31,
2000. These Condensed Consolidated Financial Statements should be read in
conjunction with the Consolidated Financial Statements and the notes thereto
included in the Company's latest annual report to the Securities and Exchange
Commission on Form 10-KSB for the year ended December 31, 1999.
2. Debt
Note Payable -Revolver and Bank
The Company has entered into a $5,000,000 loan agreement with Congress Financial
Corporation ("Congress"). The loan arrangement with Congress provides for a
three-year revolving credit facility of up to $3,550,000, a $950,000 fully
amortizing five-year term loan and an equipment financing facility of up to
$500,000, also based upon a five year fully amortizing repayment schedule. All
of such loans bear interest at a rate of prime plus 1.5%. The total amount due
Congress pursuant to this loan agreement was $1,386,857 and $3,729,802 as of
September 30, 2000 and December 31, 1999, respectively.
This Agreement is secured by substantially all of the Company's assets
including, but not limited to, inventory, receivables, and fixed assets. The
amount available under the revolving loan is limited by a formula based on
accounts receivable and inventory.
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3. Liquidity
The Company acquired its operating entity, Victor Electric Wire and Cable, Inc.,
in May 1997. Since this acquisition, the Company has incurred significant losses
and expects to continue to incur losses in the year 2000. The Company's working
capital needs are being provided for by ColeVic, LLC ("ColeVic") whose
principals have a controlling interest in Quadrax Corporation. ColeVic will
reimburse the Company for use of any pre-existing inventory used in the
manufacturing process. Currently, ColeVic is compensating the Company for
material and labor costs associated with the generation of new revenues.
The Company's revolving line of credit with its primary lender, Congress,
expired May 7, 2000. On May 9, 2000, Congress notified the Company that it is in
default of its loan agreement and elected to take the following actions, without
waiving its other rights and remedies: a) raising the interest rate on the
Company's loan to 4.5 % per annum in excess of the Prime Rate; b)reducing the
maximum credit to $4,000,000.00; and c) reducing the amount that can be borrowed
against inventory to a maximum of $1,000,000. Congress has a first priority
security interest in all the assets of the Company. Subsequent to May 9, 2000,
the Company's Primary Lender ceased advancing money to the Company.
On August 16, 2000, Congress obtained an ex parte Equitable Attachment and
Temporary Restraining Order in Massachusetts Superior Court against the Company
seeking to prevent the Company from continuing to conduct business pursuant to
the terms of its arrangement with ColeVic (the "Temporary Orders"). Congress
based its action, inter alia, on an allegation that the arrangement with ColeVic
illegally circumvented the Company's agreement that Congress would have a first
perfected security interest in the assets of the Company, including its accounts
receivable. On August 22, 2000, a Preliminary Injunction hearing was held at
which the Judge modified the Temporary Orders to allow the Company and ColeVic
to continue to operate and pay payroll and related employee expenses, utility
charges and vendors for material purchases for inventory. The Company does not
believe that the Court in this matter has jurisdiction to issue the relief
sought by Congress. In addition, the Company intends to defend this matter
vigorously on the merits. The Company continues to operate on the basis on the
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<PAGE>
Temporary Orders as modified. No preliminary injunction or other definitive
ruling has been issued in this matter.
A second factor which could affect the Company's operations in year 2000 is that
the Company and its landlord are involved in a dispute regarding certain rights,
privileges and obligations which if not resolved could cause the Company to be
evicted from its principal manufacturing premises. The Company has ceased
operations in West Warwick and is in the process of vacating the premises.
Litigation with the landlord of this premises is currently pending negotiations
between the Company and the landlord to reach a compromise on termination of the
lease.
Notwithstanding the above, during the first nine months of 2000, the Company has
taken significant steps to increase its gross margins and reduce costs, the
Company has hired certain professionals including a new chief executive officer
to review all aspects of the Company's operations and to implement procedures in
order to achieve profitability. Gross margins on product sales have been
increased and costs have been reduced. However, based on current sales
commitments, the Company will still need additional funding in order to meet its
working capital needs through the year 2000. The Company will also need to
obtain new bank financing.
4. Stockholders' Equity
The Company's capital shares are as follows:
Class A Convertible Preferred Stock, $10.00 par value, 300,000 shares authorized
at September 30, 2000 and December 31, 1999, and -0-shares issued and
outstanding at September 30, 2000 and December 31, 1999.
Common Stock, $.000009 par value, 90,000,000 shares authorized September 30,
2000 and December 31, 1999, 24,540,170 shares were issued at September 30, 2000
and December 31, 1999, respectively, and 24,512,899, shares were outstanding at
September 30, 2000 and December 31, 1999, respectively. The treasury shares of
25,271 account for the difference in the issued and outstanding shares.
5. Earnings Per Share
For the fiscal periods ending September 30, 2000 and September 30, 1999, the net
loss per share was computed using the weighted number of average shares
outstanding during the respective periods. Common Stock
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<PAGE>
equivalents did not enter into the computation because the impact would have
been anti-dilutive.
6. Bankruptcy Proceedings
On February 27, 1998 (the "Petition Date"), the Company filed a Voluntary
Petition under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy
Court, District of Rhode Island. The Company's wholly owned subsidiaries Victor
and Victel were not party to the bankruptcy filing on the Petition Date.
Pursuant to the filing of the voluntary petition, the Company filed a petition
for financial reorganization in December 1998.
This Plan was approved by the United States Bankruptcy Court on October 21,
1999, with an effective date of November 5, 1999. On April 12, 2000, the Court
issued its final decree discharging the Company from Chapter 11 Bankruptcy
proceedings. The details of the Plan and its implementation are more fully
discussed in the Company's Form 10-KSB for the fiscal year ending December 31,
1999.
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<PAGE>
ITEM II
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain matters discussed in this
section and elsewhere in this Form 10-QSB are forward-looking statements. These
forward-looking statements involve risks and uncertainties including, but not
limited to, economic conditions, product demand and industry capacity,
competition and other risks.
Bankruptcy Filing
Since the Petition Date, the Company was operated as a
Debtor-in-Possession under Chapter 11 of the Bankruptcy Code. Accordingly,
claims which were the subject of pre-petition litigation were stayed and those
claims together with claims arising from pre-petition defaults and events of
default caused by the filing of the petition were resolved in the bankruptcy
proceedings. The bankruptcy case itself was resolved by a confirmation of a plan
of reorganization proposed by the Company and agreed to by its creditors and
confirmed by the United States Bankruptcy Court on October 21, 1999 with an
effective date of November 5, 1999. On April 12, 2000, the Court issued its
final decree discharging the Company from Chapter 11 Bankruptcy proceedings.
(See Note 6. Bankruptcy Proceedings)
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AS COMPARED
TO THE THREE MONTHS ENDED SEPTEMBER 30, 1999
Total revenues recognized during the three months ended September 30,
2000 ("2000 period") were $1,390,070, a decline of $2,011,089 from revenues
of $3,401,159 for the three months ended September 30, 1999, ("1999 Period").
This decrease in sales is due to the Company's lack of working capital to
purchase raw materials.
Cost of goods sold for the third quarter of 2000 of $1,112,056
decreased $2,065,229 in the three months ended September 30, 2000 compared
to the three months ended September 30, 1999 from $3,177,285. The reason for
this decrease is reflective of the Company's purchase of less raw materials.
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Selling, general and administrative ("SG&A") expenses incurred in the
three months ended September 30, 2000 were $350,800 compared to $518,946 in
the three months ended September 30, 1999, a decrease of $168,146. The reason
for this decrease is that the Company reduced corporate overhead.
Interest expense for the third quarter of 2000 of $225,270 was an
increase of $88,536 over the 1999 third quarter of $136,734. The reason for
this increase is the advances made by the Private Investor Group to the
Company during the fiscal 2000 quarter.
Other income decreased $16,505 in the 2000 period to zero. This
decrease is a result of no assets being disposed of or other sources of
income being generated.
The Company's net loss in the 1999 period of $298,056 decreased
$150,255 as compared to the 1999 period loss of $448,311 primarily for the
reasons discussed above.
RESULTS OF OPERATIONS FOR NINE MONTHS ENDED SEPTEMBER 30, 2000 AS COMPARED TO
NINE MONTHS ENDED SEPTEMBER 30, 1999
Total revenues recognized during the nine months ending September 30,
2000 ("2000 period") were $8,399,000, a decline of $2,080,797, from revenues
of $10,479,797 for the nine months ending September 30, 1999, ("1999
Period"). This decrease in sales is primarily attributable to the Company's
lack of working capital to purchase raw materials.
The cost of goods sold for the 2000 period was $9,380,090, a decrease
of $367,101 from the cost of goods sold for the 1999 period of $9,747,191.
The primary reason for this decrease is reflective of the Company's purchase
of less raw materials.
SG&A expenses increased by $339,545 in the 2000 period to $1,901,514,
compared to $1,561,969 in the 1999 period. The primary reason for this
increase is the additional legal and consulting costs during this period.
Interest expense increased $237,371 to $645,204 in the 2000 period from
$407,833 in the 1999 period. The reasons for this increase are: one, funds
loan to the Company by the Private Investor Group;
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and two, an increase in the revolving line of credit during the first quarter
of 2000 as well as an increase in the interest rate to prime plus 4 1/2.
The Company's net loss in the 2000 period of $4,403,787 increased by
$3,135,234, as compared to the 1999 period loss of $1,268,053, primarily for
the reasons discussed above.
FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES
At September 30 2000, the Company had total assets of $2,903,936 and a
stockholders' deficit of $7,132,429. Current assets were $837,959 and
current liabilities were $5,831,666 resulting in a working capital deficit
of $4,993,707. The primary reasons for the working capital deficit are: one,
a decrease in accounts receivable resulting from fewer sales; and two, the
inventory adjustment that the Company recorded in the 2000 period to reflect
potential inventory obsolescence and writedowns.
Accounts receivable decreased by approximately $2,047,824, from
December 1999 to $508,662 at September 30, 2000. The primary reason for this
decrease is the collection of large overdue balances in the second quarter of
2000 and fewer sales in the third quarter.
The inventory decrease of $2,172,173, reflects an adjustment to the
carrying value of its inventory at June 30, 2000 for potential writedowns and
obsolescence and fewer purchases in the third quarter.
Attorney's escrow decreased by $40,460 to zero at September 30, 2000,
as a result of the finalization of the Company's Chapter 11 Reorganization
proceedings on April 12, 2000, and the payment of monies to creditors
pursuant to the Company's Reorganization Plan approved by the Bankruptcy
Court in November 1999.
Unamortized loan premium decreased $1,242,698 to zero at September 30,
2000. The reason for this decrease reflects the amortization of the value
placed on the shares of the Company's stock received by the Private Investor
Group at the time of the Bankruptcy Reorganization in November 1999.
The current portion of long-term debt decreased by $1,835,195 to
$1,386,857 at September 30, 2000. This decrease reflects a more aggressive
accounts receivable collection and the fact that Congress stopped advancing
funds at the end of the second quarter.
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Accounts payable and accrued expenses increased by $730,481 to
$4,044,809 at September 30, 2000. This reflects the accrual of expenses in
the first and second quarter as result of increased business activity and
interest expense.
Long term debt, net of the current portion, decreased $468,268 in the
2000 period to $4,204,699 at September 30, 2000. The reason for this decrease
is twofold: one, the Private Investor Group advanced an additional $470,000
to the Company in the 2000 period; and two, offsetting these advances was the
reclassification of all the long-term monies due Congress, to being a current
liability as of March 31, 2000.
The Company generated revenues of approximately $8,399,000 in the first
nine months of fiscal 2000, and, as a result, operations were not a total
source of funds or liquidity for the Company. The Company continues to depend
on outside financing for the cash required to fund its operations.
The Company's revolving line of credit with the Primary Lender matured
May 7, 2000. On May 9, 2000, the Company's Primary Lender notified the
Company that it was in default on its loan agreement and elected to take the
following actions, without waiving its other rights and remedies: a) raising
the interest rate on the Company's loan to 4.5% per annum in excess of the
Prime Rate; b) reducing the maximum credit to $4,000,000.00; and c) reducing
the amount that can be borrowed against inventory to a maximum of $1,000,000.
The Primary Lender has a first priority security interest in all the assets
of the Company. Subsequent to May 9, 2000, the Company's Primary Lender
ceased advancing money to the Company.
On August 16, 2000, Congress obtained an ex parte Equitable Attachment
and Temporary Restraining Order in Massachusetts Superior Court against the
Company seeking to prevent the Company from continuing to conduct business
pursuant to the terms of its arrangement with ColeVic (the "Temporary
Orders"). Congress based its action, inter alia, on an allegation that the
arrangement with ColeVic illegally circumvented the Company's agreement that
Congress would have a first perfected security interest in the assets of the
Company, including its accounts receivable. On August 22, 2000, a Preliminary
Injunction hearing was held at which the Judge modified the Temporary Orders
to allow the Company and ColeVic to continue to operate and pay payroll and
related employee expenses, utility charges and vendors for material purchases
for inventory. The Company does not believe that the Court in this matter has
jurisdiction to issue the relief sought by Congress. In addition, the Company
intends to defend this matter vigorously on the merits. The Company continues
to operate on the basis on the Temporary Orders as modified. No preliminary
injunction or other definitive ruling has been issued in this matter.
Congress has consented to the Company's intention to sell some of its
manufacturing equipment to ColeVic.
The Company's working capital needs are being provided for by ColeVic
whose principals have a controlling interest in Quadrax Corporation. As a
result of
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<PAGE>
this arrangement, ColeVic will reimburse the Company for use of any
pre-existing inventory used in the manufacturing process. Currently, ColeVic
is compensating the Company for material and labor costs associated with the
generation of new revenues. The Company intends to sell some of its
manufacturing equipment to ColeVic, all of the proceeds of which the Company
will use to repay its debt.
A second factor which could affect the Company in the year 2000 is that
the Company and its landlord are involved in a dispute regarding certain
rights, privileges and obligations under the lease. The company has ceased
operations in West Warwick and is in the process of vacating the premises.
The Company intends to sell some of its manufacturing equipment to ColeVic.
As a consequence of this sale, the Company expects to derive revenue in the
future from a percentage of goods sold to customers by ColeVic. The company
is currently negotiating with the landlord and is involved in litigation to
reach a comprise on termination of the lease. The Company has ceased
operations in West Warwick and is in the process of vacating the premises.
Litigation with the landlord of this premises is currently pending
negotiations between the Company and the landlord to reach a compromise on
termination of the lease.
Notwithstanding the above, the Company during the first nine months of
2000 has taken significant steps to increase its gross margins and reduce
costs. The Company has hired certain professionals to review all aspects of
the Company's operations and to implement procedures in order to achieve
profitability. Gross margins on product sales have been increased and costs
have been reduced. On August 31, 2000, the Company began to move some of its
wire and cable equipment to a manufacturing facility in El Paso, Texas; this
step is the first in a larger initiative to outsource certain of the
Company's manufacturing functions. On October 20, 2000 the company completely
ceased operations at its West Warwick RI facility. By doing so, Management
believes it can significantly reduce it operating and manufacturing costs,
become more competitive and better serve its customers. The Company intends
to sell some of its manufacturing equipment to ColeVic. As a consequence of
this sale, the Company expects to derive revenue in the future from a
percentage of goods sold to customers by ColeVic. The company is currently
shipping a portion of the product line out of the El Paso facility and
expects to have a full complement of products being produced and shipped by
the end of the quarter ending March 31, 2001.
However, based on current sales commitments, the Company will still
need additional funding in order to meet its working capital needs through
the year 2000. The Company will also need to obtain new bank financing.
At this time, it is difficult for the Company to predict with accuracy
the point at which the Company will be viable and profitable or whether it
can achieve viability or profitability at all, due to the difficulty of
predicting accurately the amount of revenues that the Company will generate,
the amount of expenses that will be required by its operations, and the
Company's ability to raise additional capital.
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QUADRAX CORPORATION
PART II - OTHER INFORMATION
Item 3. Defaults Upon Senior Securities
As of May 9, 2000, the Company was notified that it was in default on its
Congress debt. On August 16, 2000, Congress demanded that all monies due as of
August 15, 2000, $1,616,928, be paid immediately. The amount of the Congress
debt outstanding at September 30, 2000 was approximately $1,386,857.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
None
Exhibit 27. Financial Data Schedule
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QUADRAX CORPORATION
SIGNATURES
In accordance with the requirements of the Securities Exchange
Act of 1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
QUADRAX CORPORATION
By: /s/Thomas V. Desmond
--------------------------
Thomas V. Desmond
Chief Executive Officer
(Principal Executive Officer
and Principal Financial Officer)
Dated: November 21, 2000
