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 six months ended June 30, 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)
June 30, June 30,
1997 1996
--------------------------------------------------------
Assets
Current Assets:
Cash and cash equivalents $ 7,382 $ 3,400
Inventories 556,612 1,207,757
Prepaid Expenses - 84,201
Accounts and other receivables - 15,251
-------------------------------------------------------
Total current assets 563,994 1,310,609
Property & Equipment 115,952 813,345
Other Assets 1,850 179,594
--------------------------------------------------------
Total assets $ 681,796 $ 2,303,549
========================================================
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable $ 728,218 $ 852,794
Accrued expenses 198,994 487,443
Other payables 315,138 -
Loans payable to
related parties 423,407 178,200
Customer deposits 25,000 25,000
-------------------------------------------------------
Total current liabilities 1,690,757 1,543,437
-------------------------------------------------------
Long term liabilities
Loans payable to
related parties 1,199,130 -
Notes payable 250,000 -
-------------------------------------------------------
Total long term liabilities 1,449,130 -
-------------------------------------------------------
Total liabilities 3,139,887 1,543,437
-------------------------------------------------------
Stockholders' equity
Common stock, par value $ 536,395 $ 536,179
$.01 per share,
600,000,000 shares
authorized; issued
and outstanding:
53,609,387 in 1997
and 53,609,387 in 1996
Capital in excess of
par value 36,786,109 36,778,117
Accumulated deficit (39,780,595) (36,554,184)
--------------------------------------------------------
Total stockholders' equity (2,458,091) 760,112
--------------------------------------------------------
Total liabilities and
stockholders' equity $ 681,796 $ 2,303,549
======================================================
See accompanying notes to unaudited condensed financial
statements.
Vector Aeromotive Corporation
Condensed Statements of Operations
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
---------------------------------------------------------
Sales $ - $ 470,891 $ - $ 620,361
Cost of sales
- 458,225 - 625,638
---------------------------------------------------------
Gross profit (loss)
- 2,666 - (5,277)
---------------------------------------------------------
Costs and expenses
Manufacturing overhead
- 245,238 - 440,137
General and administrative
173,972 908,842 423,515 1,521,733
Research and development
- 449,593 - 929,237
---------------------------------------------------------
Total costs and expenses
173,972 1,603,673 423,515 2,891,107
---------------------------------------------------------
Operating profit (loss)
(173,972) (1,591,006) (423,515) (2,896,384)
---------------------------------------------------------
Other income (expense)
Interest and other income
- 49,641 - 85,643
Interest expense
(9,352) - (18,705) -
-----------------------------------------------------------
Net profit (loss)
$ (183,325) (1,541,366) (442,220) (2,810,740)
=========================================================
Net profit (loss) per share
($0.00) ($0.03) ($0.01) ($0.05)
Weighted average
common shares
outstanding
53,609,387 53,477,754 53,609,387 52,034,578
===========================================================
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) (442,220) (442,220)
-----------------------------------------------------------
Balance,June 30, 1997
53,639,599 $536,396 $36,786,109 $(39,780,595) $(2,458,091)
===========================================================
See accompanying notes to unaudited condensed financial
statements.
Vector Aeromotive Corporation
Condensed Statements of Cash Flows
(Unaudited)
Six Months Six Months
Ended Ended
June 30, 1997 June 30, 1996
----------------------------------------------------------
Cash flows from operating activities:
Net profit (loss) $ (442,220) $(2,810,741)
Adjustments to reconcile net profit
(loss) to net cash used in operating
activities
Depreciation and amortization 8,046 235,015
(Increase) decrease in
Accounts receivable 155,000 -
Inventories - (406,197)
Prepaid expenses and other assets 15,628 179,854
Increase (decrease) in
Accounts payable 18,007 (645,873)
Accrued expenses (1,020) (145,448)
Other payables 13,646 -
Customer deposits - 15,000
----------------------------------------------------------
Net cash used in
operating activities (232,913) (3,608,390)
----------------------------------------------------------
Cash flows used in investing activities:
Acquisition of property and equipment - (239,622)
----------------------------------------------------------
Net cash used in
investing activities - (239,622)
----------------------------------------------------------
Cash flows from financing activities:
Proceeds from issuance of common
stock and warrants - 4,704,733
Proceeds from exercise of warrants - 134,309
Repayment of loan payable to
related party - (1,000,000)
Loan payable American Dream Int'l 206,430 -
----------------------------------------------------------
Net cash from financing activities 206,430 3,839,042
----------------------------------------------------------
Net increase (decrease) in cash and
cash equivalents (26,483) (8,970)
Cash and cash equivalents, beginning
of period 33,864 12,370
----------------------------------------------------------
Cash and cash equivalents, end of
period 7,38 3,400
==========================================================
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 six months ended June 30, 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:
June 30, June 30,
1997 1996
-------------------------------------------
Raw Material $ 223,666 $ 644,314
Work-in Progress 48,666 214,136
Finished Goods 284,280 349,307
-------------------------------------------
Total $ 556,612 $1,207,757
===========================================
3. Payables to Related Parties
As of June 30, 1997, the Company owed a total of $847,229
to Automobili Lamborghini S.p.A., $568,577 to Automobili
Lamborghini U.S.A., Inc., and $206,430 to American Dream
International Limited.
4. Notes Payable to Unrelated Parties
As of June 30, 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 June 30, 1997 American Dream had loaned
$206,429 to the Company of which $94,077 was loaned in the
2nd quarter of 1997.
Results of Operations
For the three months ended June 30, 1997, the Company had a
net loss of $183,325 compared to a net loss of $1,541,366
for the comparable period of 1996. For the period ended
June 30, 1997, the Company had a net loss of $442,220
compared to a net loss of $2,810,741 loss for the
comparable period of 1996. The Company was not in
operation during this period in 1997 except to negotiate
with American Dream.
Liquidity and Capital Resources
During the second quarter the Company borrowed $ 94,077
from American Dream. This was the only source 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
<TABLE> <S> <C>
<ARTICLE> 5
<RESTATED>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-END> JUN-30-1997 JUN-30-1997
<CASH> 7,382 7,382
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 556,612 556,612
<CURRENT-ASSETS> 563,994 563,994
<PP&E> 461,418 461,418
<DEPRECIATION> (345,466) (345,466)
<TOTAL-ASSETS> 681,796 681,796
<CURRENT-LIABILITIES> 1,960,757 1,960,757
<BONDS> 0 0
0 0
0 0
<COMMON> 536,396 536,396
<OTHER-SE> (2,458,091) (2,458,091)
<TOTAL-LIABILITY-AND-EQUITY> 681,796 681,796
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 173,972 423,515
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 9,352 18,705
<INCOME-PRETAX> (183,325) (442,220)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> (183,325) (442,220)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (183,325) (442,220)
<EPS-PRIMARY> (.003) (.008)
<EPS-DILUTED> (.003) (.008)
</TABLE>
