ROVAC CORP
10QSB, 2000-06-15
COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH
Previous: ROLLINS TRUCK LEASING CORP, 8-K, EX-16, 2000-06-15
 Next: ROVAC CORP, 10QSB, EX-27, 2000-06-15

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 April 30, 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 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, April 30, 2000, was 39,943,073 shares of Common Stock, $0.01 par value.

 

 

 

THE ROVAC CORPORATION

Item 1 - Financial Information

Condensed Balance Sheets

April 30, 2000

July 31, 1999

(Unaudited)

Assets

Current Assets

Accounts receivable

$ 700

$ 700

Accounts receivable - other

44,454

61,174

Inventory

3,720

2,003

Total current assets

48,874

63,877

Property and equipment

Machinery and equipment

72,112

72,112

Furniture and fixtures

32,336

30,283

Leasehold improvements

28,121

28,121

132,569

130,516

Less accumulated depreciation

125,784

123,384

Net property and equipment

6,785

7,132

Patents and patent applications, net of

accumulated amortization of $18,109

($15,334 at July 31, 1999)

68,150

68,935

Total assets

$ 123,809

$ 139,944

See accompanying notes to condensed financial statements.

 

 

 

 

 

 

 

THE ROVAC CORPORATION

Item 1 - Financial Information

Condensed Balance Sheets

April 30, 2000

July 31, 1999

(Unaudited)

Liabilities and Stockholders' Deficiency

Current liabilities

Bank overdraft

$ 1,547

$ 1,587

Notes payable - officer

666,615

665,515

Notes payable - other

3,250

3,250

Accounts payable:

Trade

130,931

113,345

Parent company

837,993

780,620

Accrued expenses

1,012,963

953,871

Total current liabilities

2,653,299

2,518,188

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

(12,398,753)

(12,247,507)

Total stockholders' deficit

(2,529,490)

(2,378,244)

Total liabilities and stockholders' deficit

$ 123,809

$ 139,944

See accompanying notes to condensed financial statements.

 

 

 

 

 

 

 

THE ROVAC CORPORATION

Statement of Operations

(Unaudited)

Three

months

Nine

months

ended April 30

ended April 30

2000

1999

2000

1999

Revenues:

Contract Income

$ 6,000

$ 9,000

$ 24,000

$ 77,000

Product

2,044

5,691

11,941

10,364

Total revenues

8,044

14,691

35,941

87,364

Operating expenses:

Cost of sales

7,381

-

18,058

-

General and administrative

47,184

36,456

99,766

111,514

Research and development

1,926

5,690

6,122

12,987

Depreciation and amortization

1,725

1,313

5,175

3,938

Total operating expenses

58,216

43,458

129,121

128,439

Operating loss

(50,172)

(28,767)

(93,180)

(41,074)

Other income (expense)

Interest expense

(19,317)

(18,318)

(58,066)

(57,153)

(19,317)

(18,318)

(58,066)

(57,153)

Net Loss

(69,489)

(47,085)

(151,246)

(98,227)

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)

Nine Months

Nine Months

Ended April 30

Ended April 30

2000

1999

Cash flows from operating activities:

Net loss

(151,246)

(98,227)

Adjustments to reconcile net loss to net

cash used in operating activities:

Depreciation and amortization

5,175

3,938

(Increase) decrease in assets:

Accounts and loan receivable

16,720

-

Inventory/other assets

(1,717)

(4,826)

Increase (decrease) in liabilities:

Accounts payable

17,586

7,717

Accrued expenses

59,092

131,296

Total adjustments

96,856

138,125

Net cash provided by (used in)

operating activities:

(54,390)

39,898

Cash flows from investing activities:

Costs of patents and patent applications

(1,990)

(2,353)

Costs of furniture and fixtures

(2,053)

-

Net cash used in investing activities

(4,043)

(2,353)

Cash flows from financing activities:

Proceeds from notes payable - officers

1,100

(25,491)

Advance from parent

57,373

40,219

Net cash provided by financing activities

58,473

14,728

Net change in cash

40

52,273

Cash (bank overdraft), beginning of period

(1,587)

(4,830)

Cash, end of period

(1,547)

47,442

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 nine months and three months ended April 30, 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 the nine months and three months ended April 30, 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, 1999 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 ended April 30, 2000, the Company completed its negotiations with NIBCO resulting in a sales agreement effective May 1, 2000. This will provide the Company with numerous additional thermoplastic markets for the CinchLockâ technology that the Company has developed.

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 three months ended April 30, 2000 and 1999

The total operating expenses are $58,216 for the quarter ending April 30, 2000 as compared to $43,458 for the corresponding quarter in 1999. The increase is mainly attributable to increased legal and public relations costs.

(c) Results of Operations for the nine months ended April 30, 2000 and 1999

The total operating expenses were $129,121 for the nine-month period ending April 30, 2000 as compared to $128,439 for the corresponding nine-month period in 1999. This is mainly attributable to the Company's effort to contain costs during the period.

Revenues for the nine months ended April 30, 2000 were 35,941 as compared to 87,364 for the nine months ended April 30, 1999. The decrease was mainly attributable to contract revenue with a customer that was not renewed.

 

 

 

 

 

 

 

 

 

 

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: June 15, 2000

Raymond E. Shea, Jr.

Vice President and Treasurer



© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission