ROVAC CORP
10QSB, 2000-12-13
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 October 31, 2000

[ ] 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 XNO

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, October 31, 2000, was 39,958,073 shares of Common Stock, $0.01 par value.

 

 

THE ROVAC CORPORATION

Item 1 - Financial Information

Condensed Balance Sheets

October 31, 2000

July 31, 2000

(Unaudited)

*

Assets

Current Assets

Accounts receivable

62,575

700

Loan receivable - officer

14,569

23,692

Inventory

8,427

8,427

Total current assets

85,571

32,819

Property and equipment

Machinery and equipment

72,112

72,112

Furniture and fixtures

32,335

32,335

Leasehold improvements

28,121

28,121

132,568

132,568

Less accumulated depreciation

126,959

126,214

Net property and equipment

5,609

6,354

Patents and patent applications, net of

Accumulated amortization of $19,862

($18,956 July 31, 2000)

71,382

67,303

Total assets

162,562

106,476

See accompanying notes to condensed financial statements.

 

 

 

 

 

 

 

 

THE ROVAC CORPORATION

Item 1 - Financial Information

Condensed Balance Sheets

October 31, 2000

July 31, 2000

(Unaudited)

*

Liabilities and Stockholders' Deficiency

Current liabilities

Cash overdraft

$ 1,981

$ 1,766

Notes payable - officer

666,615

666,615

Notes payable - other

1,950

3,250

Accounts payable:

Trade

106,342

105,850

Parent company

835,224

813,500

Accrued expenses

1,067,833

1,036,842

Advanced revenues

70,688

35,344

Total current liabilities

2,750,633

2,663,167

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.

399,581

399,581

Authorized 40,000,000 shares, issued and

outstanding 39,958,073 shares

Common stock issuable, $.01 par value,

250

250

25,000 shares

Additional paid-in capital

8,269,432

8,269,432

Accumulated deficit

(12,457,334)

(12,425,954)

Total stockholders' deficit

(2,588,071)

(2,556,691)

Total liabilities and stockholders' deficit

162,562

106,476

See accompanying notes to condensed financial statements.

 

 

 

 

 

 

THE ROVAC CORPORATION

Statement of Operations

(Unaudited)

Three Months

Three Months

Ended Oct. 31

Ended Oct. 31

2000

1999

Revenues:

Contract Income

26,531

9,000

Product

182

7,428

Total revenues

26,713

16,428

Operating expenses:

Cost of sales

3,811

5,541

General and administrative

28,077

25,233

Research and development

4,436

2,907

Depreciation and amortization

1,651

1,725

Total operating expenses

37,975

35,406

Operating loss

(11,262)

(18,978)

Other income (expense)

Interest expense

(20,118)

(19,500)

(20,118)

(19,500)

Net Loss

(31,380)

(38,478)

Net loss per share of

common stock

(0.00)

(0.00)

Weighted average number of

common shares outstanding

and issuable

39,983,073

39,983,073

See accompanying notes to condensed financial statements.

 

 

 

 

 

 

THE ROVAC CORPORATION

Statement of Cash Flows

Unaudited

Three Months

Three Months

October 31

October 31

2000

1999

Cash flows from operating activities:

Net loss

(31,380)

(38,478)

Adjustments to reconcile net loss to net

cash used in operating activities:

Depreciation and amortization

1,651

1,725

(Increase) decrease in assets:

Accounts and loan receivable

(52,752)

9,924

Inventory

-

(473)

Increase (decrease) in liabilities:

Accounts payable

492

(934)

Accrued expenses

30,991

25,533

Advanced revenues

35,344

-

Total adjustments

15,726

35,775

Net cash provided by (used in)

operating activities:

(15,654)

(2,703)

Cash flows from investing activities:

Costs of patents and patent applications

(4,985)

(465)

Acquisition of equipment

-

(2,053)

Net cash used in investing activities

(4,985)

(2,518)

Cash flows from financing activities:

Payment on notes payable - other

(1,300)

1,099

Advances from parent

21,724

4,041

Net cash provided by financing activities

20,424

5,140

Net change in cash

(215)

(81)

Cash (cash overdraft), beginning of period

(1,766)

(1,587)

Cash (cash overdraft), end of period

(1,981)

(1,668)

See accompanying notes to condensed financial statements.

Notes to Condensed Financial Statements

(Unaudited)

 

(1) Basis of Presentation

The unaudited financial statements for the three months ended October 31, 2000 and 1999 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 October 31, 2000 and 1999 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, 2000 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 continued to earn revenues in accordance with its current NIBCO contract. The current NIBCO Agreement requires minimal payments, which increase during the contract period, which expires on April 30, 2004. The Company's production plans are intended to meet NIBCO's requirements, which are expected to increase during the first six months of calendar year 2001.

Additionally, the Company is currently evaluating how to proceed with its CinchLockâ product introduction into the metals markets. One option under consideration would be to secure additional licenses for metal market applications. The second option under consideration would be for the Company to internally develop, produce, market and distribute a product line of CinchLockâ metal market repair couplings.

The Company intends to receive additional income pursuant to its NIBCO Agreement and also intends to receive funding from its parent company in order to meet its cash requirements for the upcoming fiscal year. However, there can be no assurance that such sources of funding will continue.

 

(b) Results of Operations for the quarter ended October 31, 2000

The revenues for the quarter ended October 31, 2000 were $26,713 as compared to $16,428 for the quarter ended October 31, 1999. This increase is mainly attributable to the NIBCO Agreement which commenced May 1, 2000.

The total operating expenses are $37,975 for the quarter ending October 31, 2000 as compared to $35,406 for the corresponding quarter in 1999. The expenses for both quarters are comparable.

 

 

 

 

 

PART II - OTHER INFORAMTION

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: _________________________________________

Raymond E. Shea, Jr.

Vice President and Treasurer



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