<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Amendment No. 1
to
Form 10-Q
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934, for the Quarter Ended September 30, 1997.
or
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934, for the Transition Period from ________ to ________
Commission file number 1-9748
AMERICAN FILM TECHNOLOGIES, INC.
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(Exact name of registrant as specified its charter)
Delaware 23-2359277
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(State or other juridiction of (IRS Employer Identification
incorporation or organization) Number)
4105 Sorrento Valley Blvd., San Diego, CA
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92121 (Address of principal executive offices)
Registrant's telephone number including area code: (619) 623-0830
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 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
APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed
all documents and reports required to be filed by Section 12, 13 or 15(d) of
the Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court. YES NO X
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As of September 30, 1997, there were 72,008,051 shares of common
stock outstanding.
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PART 1. FINANCIAL INFORMATION
American Film Technologies, Inc.
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
September 30,
1997 June 30,
Assets (unaudited) 1997
------------ ------------
<S> <C> <C>
Current Assets:
Cash $ 95,212 $ 159,730
Other current assets 121,474 122,787
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Total current assets 216,686 282,517
Equipment and software, at cost, net 255,144 350,754
Film library, net 121,875 187,500
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$ 593,705 $ 820,771
============ ============
Liabilities and stockholders' equity/(deficit):
Current Liabilities:
Notes payable: 405,307 405,307
Other loans 12,300 35,274
Accounts payable and accrued expenses 533,038 549,869
Accrued compensation 135,780 134,580
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Total current liabilities 1,086,425 1,125,030
Long-term notes payable 1,284,493 1,250,213
Stock options & subscriptions subject to repurchase 620,000 620,000
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Total liabilities 2,990,918 2,995,243
Stockholders' equity/(deficit):
Common stock, $.002 par value:
Authorized shares - 225,000,000: issued and outstanding shares
72,008,051 and 69,567,310 at September 30, 1997
and June 30, 1997 respectively 147,402 147,402
Capital in excess of par value 16,051,185 15,879,186
Deferred compensation (1,282,000) (1,342,000)
Accumulated deficit (17,313,800) (16,859,060)
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Total stockholders' equity/(deficit) 2,397,213 (2,174,472)
------------ ------------
$ 593,705 $ 820,771
============ ============
</TABLE>
See accompanying notes
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American Film Technologies, Inc.
Condensed Consolidated Statements of Cash Flows
For the Three months ended September 30, 1997 and 1996
(Unaudited)
<TABLE>
<CAPTION>
September 30, September 30,
CASH FLOWS FROM OPERATION ACTIVITIES: 1997 1996
--------- ---------
<S> <C> <C>
Net (loss) ($454,740) ($487,045)
Adjustments to reconcile net (loss) to net cash
(used) by operating activities:
Depreciation and amortization 161,235 139,707
Amortization of Deferred compensation 60,000 60,000
Changes in assets and liabilities:
Other current assets 1,313 49,910
Accounts payable and accrued expenses (16,831) (12,165)
Accrued compensation 1,200 (6,731)
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Net cash (used) by operating activities 247,823 (256,324)
Cash Flows From Financing Activities:
Principal payments on notes payable - other 11,306 (19,057)
Proceeds from sale of common stock 171,999 200,000
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Net cash provided by financing activities 183,305 180,943
Net increase/(decrease) in cash (64,518) (75,381)
Cash, beginning of period 159,730 338,669
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Cash, end of period $ 95,212 $ 263,288
Supplemental disclosures of cash flow information:
Cash paid during the period for interest $ 752 $ 4,708
Reduction of Long term debt written down against
Reorganization value in excess of identifiable assets $ 13,176
</TABLE>
See accompanying notes.
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PART II : OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
The following exhibits are filed with this report:
4.1 Senior Secured Convertible Promissory
Note, dated as of October 14, 1997, issued
to Gerald M. Wetzler by the Company.
10.1 Senior Secured Note Purchase Agreement,
dated as of October 14, 1997, between
American Film Technologies, Inc., on the
one hand, and York Capital Management,
L.P., Neil Flanzraich, Gerald M. Wetzler,
Robert L. Frome, Robert Eide Family Trust,
and Howard M. Lorder Irrevocable Trust, on
the other hand.
10.2 Security Agreement, dated as of October
14, 1997, between American Film
Technologies, Inc., on the one hand, and
York Capital Management, L.P., Neil
Flanzraich, Gerald M. Wetzler, Robert L.
Frome, Robert Eide Family Trust, and
Howard M. Lorder Irrevocable Trust, on the
other hand.
(b) Reports on Form 8-K.
None.
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Signatures
In accordance with the requirements 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.
AMERICAN FILM TECHNOLOGIES, INC.
Date: March 18, 1998 By: /s/ Gerald M. Wetzler,
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Gerald M. Wetzler,
Chairman, Chief Executive Officer and
Acting Chief Financial and Accounting
Officer
