FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] for the transition
period from
to
Commission file number 0-17303
VECTOR AEROMOTIVE CORPORATION
(Exact name of registrant as specified in its charter)
NEVADA 33-0254334
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
975 MARTIN AVENUE
GREEN COVE SPRINGS, FLORIDA 32043
(Address of principal executive offices, including Zip Code)
Registrant's telephone number, including area code
(904) 529-0092
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 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 No X
APPLICABLE ONLY TO ISSUERS 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 Sections 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 ______
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, $.01 par value per share;
53,609,387 shares outstanding as of June 30, 1997
Vector Aeromotive Corporation
Condensed Balance Sheets
(Unaudited)
March 31, March 31,
1997 1996
--------------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $ 30,617 $ 1,090,457
Inventories 556,612 1,380,833
Prepaid Expenses 15,628 167,534
Accounts and other receivables - 7,427
-------------------------------------------------------------------------
Total current assets 602,857 2,646,251
Property & Equipment 119,977 749,172
Other Assets 1,850 141,905
--------------------------------------------------------------------------
Total assets $ 724,683 $ 3,537,328
==========================================================================
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 678,404 $ 668,238
Accrued expenses 209,615 550,605
Other payables 307,971 -
Loans payable to related parties 423,407 178,200
Customer deposits 25,000 50,000
--------------------------------------------------------------------------
Total current liabilities 1,644,397 1,447,043
--------------------------------------------------------------------------
Long term liabilities
Loans payable to related parties 1,105,053 -
Notes payable 250,000 -
--------------------------------------------------------------------------
Total long term liabilities 1,355,053 -
--------------------------------------------------------------------------
Total liabilities 2,999,450 1,447,043
--------------------------------------------------------------------------
Stockholders' equity
Common stock, par value $.01 per $ 536,395 $ 530,831
share, 600,000,000 shares authorized;
issued and outstanding: 53,609,387
in 1997 and 53,083,199 in 1996
Capital in excess of par value 36,786,109 36,565,703
Accumulated deficit (39,597,271) (35,006,249)
--------------------------------------------------------------------------
Total stockholders' equity (2,274,766) 2,090,285
--------------------------------------------------------------------------
Total liabilities and
stockholders' equity $ 724,683 $ 3,537,328
=========================================================================
See accompanying notes to unaudited condensed financial statements.
Vector Aeromotive Corporation
Condensed Statements of Operations
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 1997 March 31, 1996
-------------------------------------------------------------------------
Sales $ - $ 149,470
Cost of sales - 167,413
-------------------------------------------------------------------------
Gross profit (loss) - (17,946)
-------------------------------------------------------------------------
Costs and expenses
Manufacturing overhead - 194,899
General and administrative 249,543 612,891
Research and development - 473,076
-------------------------------------------------------------------------
Total costs and expenses 249,543 1,280,865
-------------------------------------------------------------------------
Operating profit (loss) (249,543) (1,298,809)
-------------------------------------------------------------------------
Other income (expense)
Interest and other income - 36,002
Interest expense (9,352) -
-------------------------------------------------------------------------
Net profit (loss) $ (258,895) $(1,262,806)
=========================================================================
Net profit (loss) per shar $ (0.00) $ (0.02)
=========================================================================
Weighted average common shares
outstanding 53,609,387 50,575,366
=========================================================================
See accompanying notes to unaudited condensed financial statements.
Vector Aeromotive Corporation
Condensed Statement of Shareholders' Equity
(Unaudited)
Capital in
Common Stock Excess Of Accumulated
Shares Amount Par Value Deficit Total
-------------------------------------------------------------------------
Balance,
December 31,
1996 53,639,599 $536,396 $36,786,109 $(39,338,376) $(2,015,871)
Net Profit (loss) (258,895) (258,895)
-------------------------------------------------------------------------
Balance,
March 31,
1997 53,639,599 $536,396 $36,786,109 $(39,597,271) $(2,274,766)
==========================================================================
See accompanying notes to unaudited condensed financial statements.
Vector Aeromotive Corporation
Condensed Statements of Cash Flows
(Unaudited)
Three Months Three Months
Ended Ended
March 31, 1997 March 31, 1996
--------------------------------------------------------------------------
Cash flows from operating activities:
Net profit (loss) $ (258,895) $(1,262,806)
Adjustments to reconcile net profit (loss)
to net cash used in operating activities:
Depreciation and amortization 4,022 59,031
(Increase) decrease from changes in:
Accounts receivable 155,000 -
Inventories - (579,273)
Prepaid expenses and other assets - 104,345
Accounts payable (31,807) (830,429)
Accrued expenses 9,600 -
Other payables 6,480 (82,286)
Customer deposits - 10,000
--------------------------------------------------------------------------
Net cash from operating activities (115,600) (2,581,418)
--------------------------------------------------------------------------
Cash flows used in investing activities:
Acquisition of property and equipment - (136,775)
--------------------------------------------------------------------------
Net cash used in investing activities - (136,775)
--------------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from issuance of common
stock and warrants - 4,704,733
Proceeds from exercise of warrants - 91,547
Repayment of loan payable to
related party - (1,000,000)
Loan payable American Dream Int'l 112,353 -
--------------------------------------------------------------------------
Net cash from financing activities 112,353 3,796,280
--------------------------------------------------------------------------
Net increase (decrease) in cash and
cash equivalents ( 3,247) 1,078,087
Cash and cash equivalents, beginning
of period 33,864 12,370
--------------------------------------------------------------------------
Cash and cash equivalents, end of
period 30,617 1,090,457
==========================================================================
See accompanying notes to unaudited condensed financial statements.
Vector Aeromotive Corporation
Notes to Financial Statements
1. Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article
10 of the Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements and should be read in
conjunction with Notes to Financial Statements contained in the
Company's Annual Report on Form 10-K for the year
ended December 31, 1996. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three months ended
March 31, 1997 are not necessarily indicative of the results that may be
expected for the year ended December 31, 1997.
2. Inventories
The components of inventory consist of the following:
March 31, March 31,
1997 1996
-------------------------------------------------------------------------
Raw Material $ 223,666 $ 530,785
Work-in Progress 48,666 353,443
Finished Goods 284,280 496,605
-------------------------------------------------------------------------
Total $ 556,612 $1,380,833
=========================================================================
3. Payables to Related Parties
As of March 31, 1997, the Company owed a total of$847,229 to Automobili
Lamborghini S.p.A., $568,577 to Automobili Lamborghini U.S.A., and $112,353
to American Dream International Limited.
4. Notes Payable to Unrelated Parties
As of March 31, 1997, the Company had borrowed a total of $250,000
uncollateralized, from an unrelated party accruing interest at 9%.
No principle or interest payments have been made.
PART 1 - FINANCIAL INFORMATION
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATION
General
Vector Aeromotive Corporation (the "Company") ceased operations November
1996 due to a lack of funds. In January 1997, a letter of intent was
exchanged among the Company, V'Power Corporation, Automobili
Lambourghini U.S.A., Inc., Automobili Lambourghini S.p.A. and American
Dream International Limited (formally Tradelink International Limited)
("American Dream"). Based upon the letter of intent American Dream
commenced funding a loan to the Company pending preparation and signing
of final agreements. By March 31, 1997 American Dream had loaned
$112,352 to the Company.
Results of Operations
For the period ended March 31, 1997, the Company had a net loss of
$258,895 compared to a net loss of $1,262,806 for the comparable
period of 1996. The Company was not in operation during this period.
Liquidity and Capital Resources
During the first quarter the Company collected accounts receivable
of $155,000 and borrowed $112,352 from American Dream. These were
the only sources of cash for the quarter. The Company did not have
any other sources available to it to raise additional capital.
The Company was negotiating with American Dream for the possibility
of additional funding. The lack of liquidity and capital resources
raised substantial doubt about the Company's ability to continue as
a going concern.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
VECTOR AEROMOTIVE CORPORATION
By: /s/ Timothy J. Enright
Timothy J Enright, President
Date: March 27, 1998
By: /s/ Lily Beter
Lily Beter, Chief Financial Officer
Date: March 27, 1998
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