SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended March 31, 1999
-------------------------
COMMISSION FILE NUMBER O-17580
-------------------------
FIRETECTOR INC.
(Exact name of small business issuer as specified in its charter)
Delaware 11-2941299
(State or jurisdiction of (IRS Employer identification
incorporation or organization) Number)
262 Duffy Avenue, Hicksville, New York 11801
(Address of principal executive offices Zip Code)
(516) 433-4700
(Registrant's telephone number, including area code)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for
such shorter period that 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: As of May 12 1999, 1,571,097
shares of Registrant's Common Stock were issued and outstanding.
Transitional Small Business Disclosure Format (check one):
Yes [ ] No [ X ]
<PAGE>
INDEX
Page
Part I - Financial Information (unaudited)
Item 1. Financial Statements.
Consolidated Balance Sheet as at March 31, 1999 3
Consolidated Statement of Operations for the Three Month 4
Period Ended March 31, 1999
Consolidated Statements of Income for the Six Month 5
Period Ended March 31, 1999
Consolidated Statements of Cash Flows for the Six 6
Month Periods Ended March 31, 1999 and 1998
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial 11
Condition and Results of Operations
Part II - Other Information
Item 1. Legal Proceedings. 14
Item 2. Changes in Securities. 14
Item 3. Defaults Upon Senior Securities. 14
Item 4. Submission of Matters to a Vote of Security 14
Holders.
Item 5. Other Information. 14
Item 6. Exhibits and Reports on Form 8-K 14
Signatures 15
<PAGE>
Part I - FINANCIAL INFORMATION
Firetector Inc. and Subsidiaries
Consolidated Balance Sheet
Unaudited
March 31,
1999
----------------
ASSETS
Current assets:
Cash and cash equivalents $ 26,744
Accounts receivable, principally
trade, less allowance for
doubtful accounts of $226,441 4,800,179
Inventories 2,439,954
Deferred taxes 168,000
Prepaid expenses and other current assets 250,473
-------------
Total current assets 7,685,350
-------------
Property, Plant and Equipment at cost, less
accumulated depreciation and
amortization of $901,689 312,418
Software Development Costs, net 1,935
Other Assets 266,241
Deferred Taxes 154,000
-------------
Total assets $8,419,944
=============
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
Firetector Inc. and Subsidiaries
Consolidated Balance Sheet (continued)
Unaudited
March 31,
1999
------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Note payable to Mirtronics $ 412,867
Notes payable-principally to affiliate 58,385
Accounts payable and accrued expenses 2,125,725
Unearned service revenue 317,729
Current portion of capital lease obligations 26,361
---------------
Total current liabilities 2,941,067
Note payable to bank 1,625,307
Other notes payable, less current portion 191,041
Capital lease obligations, less current portion 25,707
--------------
Total liabilities 4,783,122
--------------
Stockholders' equity:
Convertible preferred stock, 2,000,000
shares authorized - none issued and outstanding
Common stock, 25,000,000 shares authorized,
$.001 par value; issued and outstanding
1,571,097 shares 1,571
Capital in excess of par 5,158,624
Deficit (1,523,373)
-----------
Total stockholders' equity 3,636,822
-----------
Total liabilities and stockholders' equity $8,419,944
===========
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
Firetector Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
For The Three Months Ended
March 31,
1999 1998
---------- ----------
Net sales $3,016,458 $2,376,370
Service revenues 1,092,632 1,053,569
---------- ----------
Total revenues 4,109,090 3,429,939
---------- ----------
Cost of sales 2,075,226 1,475,248
Cost of service 722,476 697,716
Selling, general and administrative 1,083,234 1,052,148
Interest expense 54,676 56,225
Depreciation and amortization expense 52,586 52,816
Other (income) net (10,278)
---------- ----------
3,988,198 3,323,875
---------- ----------
Income from operations before
provision for income taxes 120,892 106,064
Provision for income taxes:
Current 13,000 6,000
Deferred 17,000
---------- ----------
30,000 6,000
---------- ----------
Net income 90,892 $100,064
========== ==========
Earnings per common share
Basic earnings per share $.06 $.07
Diluted earnings per share $.05 $.05
============ ==========
Weighted average number of common
shares outstanding 1,571,097 1,372,762
Weighted average number of common
and potential dilutive common
shares outstanding 1,695,715 2,164,758
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
Firetector Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
For the Six Months Ended
March 31,
1999 1998
----------- ----------
Net sales $5,575,527 $4,096,182
Service revenues 2,093,879 2,181,110
----------- ----------
Total revenues 7,669,406 6,277,292
----------- ----------
Cost of sales 3,689,714 2,584,614
Cost of service 1,397,953 1,366,992
Selling, general and administrative 2,100,049 2,013,468
Interest expense 105,972 111,464
Depreciation and amortization expense 104,390 104,893
Other (income) net (20,333)
----------- ----------
7,398,078 6,161,098
----------- ----------
Income from operations before
provision for income taxes 271,328 116,194
Provision for income taxes:
Current 28,000 10,000
Deferred 52,000
----------- ----------
80,000 10,000
----------- ----------
----------- ----------
Net income $191,328 $ 106,194
=========== ==========
Earnings per common share
Basic earnings per share $.12 $.08
Diluted earnings per share $.11 $.05
============ ==========
Weighted average number of common
shares outstanding 1,571,097 1,273,596
Weighted average number of common
and potential dilutive common
shares outstanding 1,665,590 2,180,334
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
Firetector Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
For The Six Months Ended
March 31,
1999 1998
----------- ---------
OPERATING ACTIVITIES
Net income $191,328 $106,194
Adjustments to reconcile net income to
net cash provided by (used in)
operating activities:
Depreciation and amortization 104,390 123,285
Provision for doubtful accounts 36,000 36,000
Changes in operating assets and liabilities:
Accounts receivable 32,263 (16,403)
Inventories, prepaid expenses and other
current assets (663,068) (72,602)
Other assets 50,683 (785)
Accounts payable and accrued expenses 387,826 (134,581)
Unearned service revenue (25,206) (58,648)
Accounts receivable from affiliated
companies (21,819)
Due to affiliated companies 3,547
--------- ---------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 114,216 (35,812)
INVESTING ACTIVITIES
Purchases of property and equipment (33,276) (20,213)
---------- ---------
NET CASH USED IN INVESTING ACTIVITIES (33,276) (20,213)
FINANCING ACTIVITIES
Principal payments on revolving line of
credit, long term debt, notes payable
and capital lease obligations (179,004) (84,875)
Proceeds from revolving line of credit,
notes payable and capital
lease obligations 3,849
Due to affiliated company 19,894 (1,969)
Issuance of common stock in connection with
exercise of option 552,000
Repurchase of common stock (552,000)
---------- --------
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES (159,110) (82,995)
---------- --------
NET (DECREASE) INCREASE IN CASH AND
CASH EQUIVALENTS (78,170) (139,020)
Cash and cash equivalents at beginning
of period 104,914 579,052
---------- --------
Cash and cash equivalents at end of period 26,744 $440,032
========== =========
Supplemental Cash Flow Information:
Cash paid during the year for:
Income taxes $66,924 $145,594
Interest 86,105 105,937
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
During the six months ended March 31, 1999, the Company incurred capital lease
obligations of $23,520 for the acquisition of equipment. There were no capital
lease obligations incurred in the six month period ended march 31, 1998.
See accompanying Notes to the Consolidated Financial Statements.
<PAGE>
FIRETECTOR INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements In
the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Results for the six months ended March 31, 1999 are not necessarily indicative
of the results that may be expected for the fiscal year ending September 30,
1999. For further information, refer to the consolidated financial statements
and footnotes thereto included in the Registrant Company ("the Company") and
Subsidiary's annual report on Form 10-KSB for the year ended September 30, 1998.
2. INVENTORY
Inventories are priced at the lower of cost (first-in, first-out) or market and
consist primarily of raw materials.
3. LONG TERM DEBT
The Company has a revolving Credit Facility with Citizens Business Credit
Company of Boston, Mass, (the "Credit Facility"). The credit facility provides
for a $3,000,000 revolving line of credit for the three year period ending June
2001. The Credit Facility provides for interest at prime rate plus 3/4% on
outstanding balances. At March 31, 1999 $1,625,307 was outstanding under this
facility. Advances under the Credit Facility are measured against a borrowing
base calculated on eligible receivables and inventory. The Credit Facility is
secured by all of the assets of the Company and all of its operating
subsidiaries, as well as a $300,000 letter of credit provided by Mirtronics
Inc., the Company's largest stockholder "Mirtronics"),
The Credit Facility includes certain restrictive covenants, which among other
things impose limitations on declaring or paying dividends, acquisitions and
capital expenditures. The Company is also required to maintain certain financial
ratios. At March 31, 1999, the Company was not in default of any of its
covenants.
4. NOTES PAYABLE TO MIRTRONICS
At March 31, 1999, the note payable to Mirtronics totaled $412,867. While this
note is payable on demand, it is subordinate to and subject to a payment
restriction under the Company's Credit Facility with it's bank. Also see Note 5
- - Transactions with Related Parties.
<PAGE>
FIRETECTOR INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued
SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
5. TRANSACTIONS WITH RELATED PARTIES
In consideration of collateral support for a previous credit facility for the
Company and various loans over several years, the Company had granted to
Mirtronics options to purchase the Company's Common Stock. Mirtronics had the
right to acquire up to an aggregate of 613,333 shares of common stock at an
exercise price of $.90 per share, a portion of which were held for the benefit
of the Company's Chairman. These options were to expire on December 31, 1998. In
addition, the Company had previously entered into a Debt/Equity Agreement with
Mirtronics, that provided for the retirement of debt and the issuance to
Mirtronics of $675,000 of Preferred Stock, which could also be converted into
450,000 shares of common stock.
In February 1998, the Company and Mirtronics reached an agreement to reorganize
the options, convertible debt and preferred stock held by Mirtronics so as to
reduce the potential dilution of these securities by 366,667 shares of common
stock. Under this agreement, Firetector redeemed the $675,000 of Convertible
Preferred Stock and $170,000 of convertible debt for an aggregate price of
$845,000. These securities were convertible into 563,333 shares of common stock.
In satisfaction thereof, Firetector issued a $620,000 Convertible Note with
interest at 10% (payable upon demand and convertible into 413,333 shares of
common stock at a conversion price of $1.50 per share until December 31, 2002),
and a $225,000 Note (without a convertible feature), with interest at 10%,
payable upon demand. The foregoing notes are limited as to repayment based upon
covenant requirements and borrowing availability under the terms of the
Company's Credit Facility. Also in connection with this reorganization,
Mirtronics exercised 613,333 options for common stock for an aggregate
consideration of $552,000 and Firetector simultaneously repurchased and retired
216,667 of the newly issued shares for $552,000.
In September 1998, the Company entered into a Debt Matching Agreement with
Mirtronics whereby an aggregate of $508,619 due to Firetector by Mirtronics was
applied to reduce the notes payable and interest due by Firetector to
Mirtronics. As a consequence of this debt matching agreement, the $225,000
Non-Convertible note with interest of $13,870 was satisfied in full and the
$620,000 Convertible Note with interest of $38,219 was reduced to a new balance
of $392,973. In addition, the right to convert this note into 413,333 shares of
common stock was surrendered in consideration for a new warrant to purchase
310,000 shares of common stock (the "1998 warrants"). These 1998 warrants are
exercisable at anytime until December 31, 2003 at an exercise price of $1.02 per
share.
In consideration of collateral support for the Company's Credit Facility in
1994, the Company granted Genterra Capital Corporation, an Ontario Corporation,
("GCC" formerly known as First Corporate Capital Inc.) options for 166,667
unregistered shares of the Company's common stock at $.90 per share through
December 31, 1999. In July 1996, GCC exercised 33,334 of these options at $.90
per share. An officer of GCC is also a director of Mirtronics.
At the termination of employment of an officer/director of the Company (other
than for cause), the officer was granted the right to cause the Company to
repurchase up to 8,437 shares of common stock from the officer/director at a
price of $38.88 per share by means of a seven year installment promissory note
bearing interest of 4% per annum. On December 1, 1996 the officer exercised the
option and, commencing January 1, 1997, the Company repurchased 8,437 shares at
a price of $38.88 payable monthly over seven years at an interest rate of 4% per
annum.
<PAGE>
FIRETECTOR INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Continued
SIX MONTHS ENDED MARCH 31, 1999
(UNAUDITED)
6. EARNINGS PER SHARE
The Financial Accounting Standards Board issued SFAS No. 128 "Earnings Per
Shares" which requires companies to report basic and diluted earnings per share
("EPS") computations effective with the Company's quarter ending December 31,
1997. Basic EPS excludes dilution and is based on the weighted-average common
shares outstanding and diluted EPS gives effect to potential dilution of
securities that could share in the earnings of the Company. Diluted EPS reflects
the assumed issuance of shares with respect to the Company's employee stock
options, non-employee stock options, warrants and convertible notes and
preferred stock. The computation for the three and six months ending March 31,
1998 has been restated to conform to the requirements of SFAS N0. 128. Shown
below is a table that sets forth the respective calculations for basic and
diluted EPS:
<TABLE>
<CAPTION>
Three Months ended March 31, Six Months ended March 31,
Basic EPS Computation 1998 1997 1998 1997
---------------------- -----------------------
<S> <C> <C> <C> <C>
to common
shareholders $ 90,892 $100,064 $191,328 $106,194
Weighted average
outstanding 1,571,097 1,372,762 1,571,097 1,273,596
Basic $.06 $.07 $.12 $.08
---- ==== ==== ====
Three Months ended March 31, Six Months ended March 31,
Diluted EPS Computation 1998 1997 1998 1997
----------------------- ----------------------
Income available to common
shareholders $ 90,892 $100,064 $191,328 $106,194
Impact of convertible notes 12,400 6,200
-------- -------- -------- --------
Diluted net income $ 90,892 $112,464 $191,328 $112,394
-------- -------- -------- --------
Weighted-average shares 1,571,097 1,372,762 1,571,097 1,273,596
--------- --------- --------- ---------
Plus Incremental shares from
assumed conversions
Non Employee Stock Options 43,334 326,524 35,833 427,035
Convertible debt 413,333 413,333
Employee Stock Options 16,400 50,716 12,160 49,270
Warrants* 64,884 1,423 46,500 433
------ ----- ------ ---
Dilutive potential
common shares 124,618 791,996 94,493 890,071
------- ------- ------- --------
Adjusted weighted-average
shares 1,695,715 2,164,758 1,665,590 2,163,667
Diluted EPS $.05 $.05 $.11 $.05
</TABLE>
*Warrants convertible into 33,334 shares were antidilutive in both 1999 periods.
Warrants convertible into 16,667 shares were antidilutive in both 1998 periods.
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
(Unaudited)
Liquidity and Capital Resources
In June 1998, the Company signed a three-year revolving credit facility with
Citizens Business Credit Company of Boston, (the "Credit Facility"). The Credit
Facility provides for a $3,000,000 revolving line of credit for a three year
period through June, 2001. The Credit Facility provides for interest at prime
plus 3/4% on outstanding balances. Advances under the Credit Facility are
measured against a borrowing base calculated on eligible receivables and
inventory. The Credit Facility is secured by all assets of the Company and all
of its operating subsidiaries, as well as a $300,000 letter of credit provided
by Mirtronics.
The Credit Facility includes various covenants, which among other things, impose
limitations on declaring or paying dividends, acquisitions and capital
expenditures. The Company is also required to maintain certain financial ratios.
At March 31, 1999, the Company was not in default with any of its financial
covenants.
Initial proceeds from the Credit Facility amounting to $1,716,415 were used to
pay off principal and interest due on the Company's previous loan agreement with
another bank. The Company owed $1,625,307 under the Credit Facility at March 31,
1999.
Net cash provided by operations for the six months ended March 31, 1999 amounted
to $114,216 as compared to cash being used by operations of $35,812 for the
comparable prior year period. The primary reason for the improved cash flow from
operations was the increase in income from operations. However, inventories
increased $538,000 since September 30, 1998 and represent purchases of materials
for projects to be shipped over the next three to six months. This increase was
funded in part by a $387,000 increase in accounts payable and accrued expenses.
The ratio of the Company's current assets to current liabilities increased to
approximately 2.61 to 1 at March 31, 1999 from 2.15 to 1 at March 31, 1998 due
to the non-current classification of the Credit Facility.
Results of Operations
The Company's product revenues during the three and six months ended March 31,
1999 increased to $3,016,458 and $5,575,527 as compared to $2,376,370 and
$4,096,182 for the comparable prior year periods representing a 27% increase and
a 37% increase for the respective periods. These product revenue increases
resulted from delivery to certain large NYC commercial and transit projects
where the Company acts as prime contractor and/or resells equipment manufactured
by a third party vendor. These projects included several audio/visual projects
at an auction house and a museum, shipments of a life safety system to a major
entertainment company and communication equipment at a subway complex. A portion
of these projects amounting to $509,000 during the 1999 quarter and $782,000
during the 1999 six month period were completed by subcontractors for the
Company and/or included purchases from a third party vendor for resale; both of
which involved limited gross margin for the Company.
Service revenues during the same three and six month periods of 1999 were
$1,092,632 and $2,093,879 as compared to $1,053,569 and $2,181,110,
respectively, for the comparable prior year periods. The increase in the current
year quarter reflects higher call-in service on fire systems. However, this
increase in call-in service revenue was not enough to offset the lower than
normal call-in service revenue experienced during the first quarter of fiscal
1999. Competition for new product revenues and retention of existing service
contracts continues to remain high in New York.
Gross profit percentage on product revenues for the three and six month periods
ended March 31, 1999 was 31% and 34%, respectively, was compared with 38% and
37%, respectively, for comparable 1998 periods. The lower gross profit
percentage on products revenues for the three and six months ended March 31,
1999 relates primarily to a different product mix compared to the 1998 periods
as discussed above.
<PAGE>
2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
(Unaudited)(continued)
Gross profit percentage on service revenues for the three and six months periods
ended March 31, 1999 was 34% and 33% respectively, as compared with 34% and 37%,
respectively, for the comparable 1998 period. The lower gross profit percentage
on service revenues for the six months ended March 31, 1999 is due to the
decrease in call-in service on essentially a fixed overhead structure.
Income from operating activities for the three and six month periods ended March
31, 1999 was $120,892 and $271,328, respectively as compared with income from
operations of $106,064 and $116,194 for the comparable 1998 periods. This
increase in operating income is primarily attributed to the increase in product
revenues and related gross margin, during the three and six month periods of
1999 as compared with comparable periods in 1998. However, this contribution to
operating income was mitigated to some extent by increased selling, general and
administrative expenses. During the past fifteen months, the Company has
intensified its marketing efforts and expanded its product territory. While this
effort has offset certain other savings in selling, general and administrative
cost, the Company has experienced higher revenue and an improvement in new order
bookings and quotation activity (see new order information below). The new
marketing and support structure that is in place can support a higher level of
shipments. During the 1998 periods, other income represents interest on notes
receivable from Mirtronics. These obligations where extinguished in September
1998 through a Debt Matching agreement that reduced a like amount of notes
payable due to Mirtronics.
The Company had a deferred income tax provision in 1999 which reflects the
reduction of the deferred tax asset due to utilization of that portion of its
net operating loss that was recorded in prior years. The deferred tax provision
will not require the outlay of cash as the Company has a net operating loss for
tax purposes of approximately $585,000 at March 31, 1999. The Company's current
income tax provision represents state and local taxes and the alternative
minimum tax for federal income purposes.
The Company order position, excluding service, at March 31, 1999 amounted to
$8,200,000 as compared to $9,300,000 at December 31, 1998 and $6,200,000 at
March 31, 1998. The higher level of order position during the last two quarters
as compared to March 31, 1998 reflects in part the Company's recent intensified
marketing efforts. The higher order position reflects the receipt of significant
new orders from several major subway complexes and a museum. Due to the fact
that the Company's products are sold and installed as part of larger
construction on mass transit projects, there is typically a delay between the
booking of the contract and its revenue realization. The Company expects to
fulfill the majority of its backlog over the next twelve months. The order
position includes, and the Company continues to bid on projects that might
include significant subcontractor labor, involving low margin but setting a
platform for future product additions, tenant installations and service
revenues.
Year 2000
The Company has conducted an evaluation of the actions necessary in order to
ensure that its computer systems will be able to function without disruption
with respect to the application of dating systems in the Year 2000. As a result
of these evaluations the Company has begun upgrading and replacing certain of
its computer information and other computer systems so as to be able to operate
without disruption due to Year 2000 issues. The Company has purchased and
installed new software for its computer information system that is Year 2000
compliant. Performance of the Company's proprietary products is not date
sensitive. However, date information is displayed on certain console equipment.
The Company has completed software changes so that its proprietary equipment is
also compliant with respect to display information and the Company is installing
these software upgrades to customer equipment in buildings as part of normal
maintenance service. The Company does not anticipate that the costs of its
remedial actions taken or to be taken will be material to the results of
operations or financial condition. However, there can be no assurance that all
the remedial actions being implemented by the Company will be completed by the
time necessary to avoid dating systems problems or that the cost of doing so
will not be material. In addition, disruptions with respect to the computer
systems of vendors or customers, which systems are outside the control of the
Company, could impair the ability of the Company to obtain necessary materials
or products or to sell to or service their
<PAGE>
2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
(Unaudited)(continued)
customers. The Company continues to review Year 2000 issues with its major
suppliers of product and its service providers. However, there can be no
guarantee that the systems of other companies on which the Company's systems
rely will be timely converted, or that a failure to convert by another company,
or a conversion that is incompatible with the Company's systems would not have a
material adverse effect on the Company.
<PAGE>
Part II - OTHER INFORMATION
Item 1. Legal Proceedings.
Not Applicable
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders.
Subsequent to March 31, 1999, the Registrant's Annual Meeting of Stockholders
was held on April 20, 1999. At the meeting, Stockholders considered and voted
upon (1) the election of five (5) directors to Firetector's Board of Directors,
an amendment to the Registrant's Certificate of Incorporation to reduce the
number of authorized shares of Common Stock from 25,000,000 to 10,000,000, and
appointment of Moore Stephens, P.C. as Firetector's Auditors for the fiscal year
ending September 30, 1999.
The five nominees for director were unopposed and were, accordingly elected by
the Stockholders. The following table details the votes cast for, against and
abstained from voting on each matter considered by the Stockholders.
MATTER FOR AGAINST ABSTAINED
Daniel Tamkin 1,373,066 12,349 0
John Poserina 1,373,066 12,349 0
Henry Schnurbach 1,373,066 12,349 0
Joseph Vitale 1,373,066 12,349 0
Dennis McConnell 1,373,066 12,349 0
Reduction of 1,365,313 13,649 6,451
Authorized Common
Shares
Auditors 1,375,676 4,735 5,003
Item 5. Other Information.
Item 6. Exhibits and Reports on Form 8-K.
a. Exhibits.
Ex-27 Financial Data Schedule
b. Reports on Form 8-K.
No Reports on Form 8-K were filed during the quarter ended March 31,
1999.
<PAGE>
SIGNATURES
Pursuant to 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.
FIRETECTOR, INC.
(Registrant)
Date: May 14, 1999 JOHN A. POSERINA
------------------------------------
JOHN A. POSERINA, SECRETARY
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from this
Consolidated Statement of Financial Condition at March 31, 1999 (Unaudited) and
the Consolidated Statement of Income for the Six Months Ended March 31, 1999
(Unaudited) and is qualified in its entirety by reference to such financial
statements. </LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> MAR-31-1999
<CASH> 26,744
<SECURITIES> 0
<RECEIVABLES> 5,026,620
<ALLOWANCES> 226,441
<INVENTORY> 2,439,954
<CURRENT-ASSETS> 7,685,350
<PP&E> 1,214,107
<DEPRECIATION> 901,689
<TOTAL-ASSETS> 8,419,944
<CURRENT-LIABILITIES> 2,941,067
<BONDS> 0
0
0
<COMMON> 1,571
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 8,419,944
<SALES> 7,669,406
<TOTAL-REVENUES> 7,669,406
<CGS> 5,087,667
<TOTAL-COSTS> 7,398,078
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 105,972
<INCOME-PRETAX> 271,328
<INCOME-TAX> 80,000
<INCOME-CONTINUING> 191,328
<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<NET-INCOME> 191,328
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</TABLE>
