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 nine months ended September 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)
September 30, September 30,
1997 1996
-----------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $ (14) $ 783
Inventories 486,274 1,409,917
Prepaid Expenses - 3,620
Accounts and other receivables - 14,745
-----------------------------------------------------------
Total current assets 486,260 1,429,066
Property & Equipment 111,928 768,688
Other Assets 1,850 85,744
-----------------------------------------------------------
Total assets $ 600,038 $ 2,283,498
===========================================================
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 700,796 $ 1,210,519
Accrued expenses 213,199 257,446
Other payables 286,935 -
Loans payable to related parties - 487,024
Customer deposits 25,000 25,000
----------------------------------------------------------
Total current liabilities 1,225,930 2,189,988
----------------------------------------------------------
Long term liabilities
Loans payable to
related parties 1,317,489 -
Notes payable 250,000 -
Total long term liabilities 1,567,489 -
----------------------------------------------------------
Total liabilities 2,793,419 2,189,988
----------------------------------------------------------
Stockholders' equity
Common stock,
par value $.01 per $ 536,395 $ 536,395
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 36,786,109
Accumulated deficit (39,515,886) (37,228,994)
----------------------------------------------------------
Total stockholders' equity (2,193,381) 93,510
----------------------------------------------------------
Total liabilities and
stockholders' equity $ 600,038 $ 2,283,498
==========================================================
See accompanying notes to unaudited condensed financial
statements.
Vector Aeromotive Corporation
Condensed Statements of Operations
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
-----------------------------------------------------------
Sales $ 118,500 $ (9,483) $ 118,500 $ 610,878
Cost of sales 84,160 - 84,160 625,638
-----------------------------------------------------------
Gross profit
(loss) 34,340 (9,483) 34,340 (14,760)
-----------------------------------------------------------
Costs and expenses
Manufacturing
overhead - 164,995 - 605,132
General and
administra-
tive 257,232 271,252 680,747 1,792,985
Research and
development - 449,593 - 1,184,245
-----------------------------------------------------------
Total costs
and expenses 257,232 691,256 680,747 3,582,363
-----------------------------------------------------------
Operating
profit (loss) (222,892) (700,739) (646,407)(3,597,123)
Other income
(expense)
Interest and
other income 500,000 25,929 500,000 111,572
Interest
expense (12,398) - (31,102) -
----------------------------------------------------------
Net profit
(loss) 264,710 (674,809) (177,509)(3,485,550)
===========================================================
Net profit (loss)
Per share $0.00 ($0.01) ($0.00) ($0.07)
===========================================================
Weighted average
common shares
outstanding 53,609,387 53,609,387 53,609,387 52,559,514
===========================================================
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) (177,510) (177,510)
-----------------------------------------------------------
Balance,
Sept 30,
1997
53,639,599 $536,396 $36,786,109$(39,515,886)$(2,193,381)
===========================================================
See accompanying notes to unaudited condensed financial
statements.
Vector Aeromotive Corporation
Condensed Statements of Cash Flow
(Unaudited)
Nine Months Nine Months
Ended Ended
September 30, 1997 September 30, 1996
-----------------------------------------------------------
Cash flows from operating
activities:
Net profit (loss) $ (177,510) $(3,485,550)
Adjustments to reconcile
net profit
loss) to net cash
used in operating
activities
Depreciation and
amortization 12,070 328,865
(Increase) decrease in
Accounts receivable 155,000 -
Inventories 70,338 (608,357)
Prepaid expenses and
other assets 15,628 260,941
Increase (decrease) in
Accounts payable (9,415) (288,148)
Accrued expenses 13,185 (145,448)
Other payables (14,557) -
Customer deposits - 15,000
-----------------------------------------------------------
Net cash from operating
activities 64,739 3,608,390)
-----------------------------------------------------------
Cash flows used in investing activities:
Acquisition of property
and equipment - (239,622)
-----------------------------------------------------------
Net cash used in investing
activities - (239,622)
-----------------------------------------------------------
Vector Aeromotive Corporation
Condensed Statements of Cash Flow
(Unaudited)
Nine Months Nine Months
Ended Ended
September 30, 1997 September 30, 1996
-----------------------------------------------------------
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 (423,407) (1,000,000)
Loan payable
American Dream Int'l 324,789 -
-----------------------------------------------------------
Net cash from financing
activities ( 98,618) 3,839,042
-----------------------------------------------------------
Net increase (decrease)
in cash and
cash equivalents (33,879) (11,587)
Cash and cash equivalents,
beginning of period 33,864 12,370
-----------------------------------------------------------
Cash and cash equivalents,
end of period (14) 783
===========================================================
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.
<PAGE>
2. Inventories
The components of inventory consist of the following:
September 30, September 30,
1997 1996
-----------------------------------------------------------
Raw Material $ 224,388 $ 644,314
Work-in Progress 48,666 214,136
Finished Goods 213,220 349,307
-----------------------------------------------------------
Total $ 486,274 $1,207,757
3. Payables to Related Parties
As of September 30, 1997, the Company owed a total of
$424,123 to Automobili Lamborghini S.p.A., $568,577 to
Automobili Lamborghini U.S.A., Inc., and $324,789 to
American Dream International Limited.
4. Notes Payable to Unrelated Parties
As of September 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 September 30, 1997 American Dream had
loaned $324,789 to the Company of which $118,359 was loaned
in the 3rd quarter of 1997.
The Company sold one new vehicle in the quarter. In
addition, the Company sold technology to V'Power
Corporation in exchange for debt and cash.
Results of Operations
For the three months ended September 30, 1997, the Company
had a net profit of $264,710 compared to a net loss of
$674,809 for the comparable period of 1996. For the period
ended September 30, 1997, the Company had a net loss of
$177,510 compared to a net loss of $3,485,550 for the
comparable period of 1996.
Liquidity and Capital Resources
During the third quarter the Company borrowed $118,359 from
American Dream. In addition, the Company sold a new
vehicle for $118,500 and sold technology for $500,000 of
which $451,104 was debt forgiveness and $48,896 was cash.
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. Management believes the arrangements
with Amwerican Dream provided the Company an opportunity to
survive as a business.
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>
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<RESTATED>
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-END> SEP-30-1997 SEP-30-1997
<CASH> (14) (14)
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 486,274 486,274
<CURRENT-ASSETS> 486,260 486,260
<PP&E> 461,418 461,418
<DEPRECIATION> (349,490) (349,490)
<TOTAL-ASSETS> 600,038 600,038
<CURRENT-LIABILITIES> 1,225,930 1,225,930
<BONDS> 0 0
0 0
0 0
<COMMON> 536,396 536,396
<OTHER-SE> (2,729,776) (2,729,776)
<TOTAL-LIABILITY-AND-EQUITY> 600,038 600,038
<SALES> 118,500 118,500
<TOTAL-REVENUES> 618,500 618,500
<CGS> 84,160 84,160
<TOTAL-COSTS> 341,392 764,907
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 12,398 31,102
<INCOME-PRETAX> 264,710 (177,509)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 264,710 (177,509)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 264,710 (177,509)
<EPS-PRIMARY> .004 (.003)
<EPS-DILUTED> .004 (.003)
</TABLE>
