ROVAC CORP
10QSB, 2000-03-01
COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH
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U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-QSB

(Mark One)

[X] QUARTERLY REPORT UNDER SECTION 13 or 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended January 31, 1998

[ ] TRANSITION REPORT UNDER SECTION 13 or 15 (d) OF THE

EXCHANGE ACT

For the transition period from _____ to _____

Commission File No. 0-8289

 

 

THE ROVAC CORPORATION

(Exact name of small business issuer as

specified in its charter)

Delaware 59-1461320

(State or other jurisdiction (I.R.S. Employer

of incorporation or organization) Identification No.)

1030 Stafford Street, Rochdale, MA 01542

(Address of principal executive offices)

(508) 892-1121

(Issuer's telephone number)

 

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 past 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 CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date, January 31, 2000, was 39,943,073 shares of Common Stock, $0.01 par value.

 

 

THE ROVAC CORPORATION

Item 1 - Financial Information

Condensed Balance Sheets

January 31, 1998

July 31, 1997

(Unaudited)

*

Assets

Current Assets

Cash

-

-

Accounts receivable

872

833

Accounts receivable - other

36,484

2,705

Total current assets

37,356

3,538

Property and equipment

Machinery and equipment

72,112

72,112

Furniture and fixtures

30,283

30,283

Leasehold improvements

28,121

28,121

130,516

130,516

Less accumulated depreciation

119,359

118,018

Net property and equipment

11,156

12,498

Patents and patent applications, net of

Accumulated amortization of $10,335.

($9,029 at July 31, 1997)

63,173

61,433

Total assets

111,685

77,469

See accompanying notes to financial statements.

 

 

 

 

 

 

THE ROVAC CORPORATION

Item 1 - Financial Information

Condensed Balance Sheets

January 31, 1998

July 31, 1997

(Unaudited)

*

Liabilities and Stockholders' Deficiency

Current liabilities

Bank overdraft

4,387

2,944

Notes payable - officer

663,141

660,341

Notes payable - other

11,250

11,250

Accounts payable:

Trade

100,932

107,580

Parent company

679,666

594,535

Accrued expenses

786,431

734,895

Total current liabilities

2,245,807

2,111,545

Stockholders' deficiency

8% nonvoting preferred stock, $100 par

1,200,000

1,200,000

value. Authorized 25,000 shares,

12,000 shares issued.

Common stock, $.01 par value.

399,431

399,431

Authorized 40,000,000 shares, issued and

outstanding 39,943,073 shares

Common stock issuable, $.01 par value,

400

400

40,000 shares

Additional paid-in capital

8,269,432

8,269,432

Accumulated deficit

(12,003,385)

(11,903,339)

Total stockholders' deficit

(2,134,122)

(2,034,076)

Total liabilities and stockholders' deficit

111,685

77,469

See accompanying notes to condensed financial statements.

 

 

 

 

 

 

THE ROVAC CORPORATION

Statement of Operations

(Unaudited)

Three months

Six months

ended January 31

ended January 31

1998

1997

1998

1997

Revenues:

Contract Income

9,000

4,000

18,000

9,500

Product

230

142

1,080

2,942

Total revenues

9,230

4,142

19,080

12,442

Operating expenses:

Cost of sales

-

-

-

22

General and administrative

37,647

29,267

67,385

66,046

Research and development

3,549

11,316

7,396

24,640

Depreciation and amortization

1,324

1,185

2,648

2,371

Total operating expenses

42,520

41,768

77,429

93,079

Operating loss

(33,290)

(37,626)

(58,349)

(80,637)

Other income (expense)

Interest expense

(20,935)

(20,233)

(41,697)

(40,377)

Miscellaneous income

-

-

-

-

(20,935)

(20,233)

(41,697)

(40,377)

Net Loss

(54,225)

(57,859)

(100,046)

(121,014)

Net loss per share of

common stock

(0.00)

(0.00)

(0.00)

(0.00)

Weighted average number of

common shares outstanding

and issuable

39,983,073

39,983,073

39,983,073

39,983,073

See accompanying notes to condensed financial statements.

 

 

 

 

THE ROVAC CORPORATION

Statement of Cash Flows

(Unaudited)

Six Months

Six Months

Ended January 31

Ended Jan 31

1998

1997

Cash flows from operating activities:

Net loss

(100,046)

(121,014)

Adjustments to reconcile net loss to net

cash used in operating activities:

Depreciation and amortization

2,648

2,370

(Increase) decrease in assets:

Accounts and loan receivable

(33,818)

498

Inventory

-

(234)

Increase (decrease) in liabilities:

Accounts payable

(6,648)

4,997

Accrued expenses

51,536

42,764

Total adjustments

13,718

50,395

Net cash provided by (used in)

operating activities:

(86,328)

(70,619)

Cash flows from investing activities:

Costs of patents and patent applications

(3,046)

(7,795)

Net cash used in investing activities

(3,046)

(7,795)

Cash flows from financing activities:

Proceeds from notes payable - officers

2,800

(113)

Proceeds from notes payable - other

-

8,000

Advance from parent

85,131

58,975

Net cash provided by financing activities

87,931

66,861

Net change in cash

(1,443)

(11,552)

Cash (bank overdraft), beginning of period

(2,944)

9,747

Cash (bank overdraft), end of period

(4,387)

(1,805)

See accompanying notes to condensed financial statements.

THE ROVAC CORPORATION

Notes to Condensed Financial Statements

(Unaudited)

 

(1) Basis of Presentation

The unaudited financial statements for the three months ended January 31, 1998 and 1997 are unaudited but reflect all adjustments (consisting solely of normal recurring adjustments) which the Company considers necessary for a fair statement of results for the interim periods.

The results of operations for three months ended January 31, 1998 and 1997 are not necessarily indicative of the results for the entire year.

These financial statements supplement and should be read in conjunction with the Company's audited financial statements for the year ended July 31, 1997 as contained in the Company's Form 10KSB, as filed with the United States Securities and Exchange Commission.

(2) Income (Loss) Per Share of Common Stock

Income (loss) per share of common stock as computed is based on the Weighted average of the number of shares outstanding and issuable during the periods.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements.

See attached

Item 2. Management's discussion and Analysis or Plan of Operation.

(a) Liquidity and Capital Resources

During the quarter, the company earned revenues in accordance with the NIBCO Agreement signed in the quarter ended October 31, 1997. The company also continued to produce key CinchLockâ components for field testing.

The company continued with discussions and negotiations for financing and capital sources in order to meet its working capital requirements and tooling cost to implement proposed projects. Management and/or affiliate continues to fund the capital requirements of the Company, as they become necessary.

(b) Results of Operations for the quarter ended January 31, 1997

The total operating expenses are approximately $42,000 for the quarter ending January 31, 1998 as compared to approximately $42,000 for the corresponding quarter in 1997. The expenses for the quarter ended January 1998 were comparable to the expenses for quarter ended January 1997.

(c) Results of Operations for the six-month period ended January 31, 1998

The total operating expenses were approximately $77,000 for the six-month period ending January 31, 1998 as compared to approximately $93,000 for the corresponding six-month period in 1997. The $16,000 decrease in operating expenses for the six-months ended January 31, 1998 as compared to the six-months ended January 31, 1997 is mainly attributable to the company's decrease in research and development expenses.

 

 

 

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 2. Changes in Securities.

None.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Submission of Matters to a Vote of Security Holders.

None.

Item 5. Other Information.

None.

Item 6. Exhibits and Reports of Form 8-K.

None.

 

 

 

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

THE ROVAC CORPORATION

(Registrant)

 

Date: March 1, 2000

Raymond E. Shea, Jr.

Vice President and Treasurer



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