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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ____________ to ___________
Commission File Number 0-19260
RENTECH, INC.
(Name of small business issuer in its charter)
COLORADO 84-0957421
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1331 17TH STREET, SUITE 720
DENVER, COLORADO 80202
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(Address of principal executive offices)
Issuer's telephone number, including area code:
(303) 298-8008
Check whether the issuer: (1) filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 X . No .
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The number of shares outstanding of each of the issuer's classes of
common equity, as of December 31, 1998: common stock - 43,295,347.
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RENTECH, INC.
FORM 10-QSB QUARTERLY REPORT
Table of Contents
PART I - FINANCIAL INFORMATION
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Item 1. Consolidated Financial Statements:
Consolidated Balance Sheets as of December 31, 1998
and September 30 1998..........................................3
Consolidated Statements of Operations for the three months
ended December 31, 1998 and December 31, 1997..................5
Consolidated Statement of Stockholders' Equity for
the three months ended December 31, 1998.......................6
Consolidated Statements of Cash Flows for the three
months ended December 31, 1998 and December 31, 1997...........7
Notes to the Consolidated Financial Statements.................8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...........................11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - None......................................15
Item 2. Change in Securities and Use of Proceeds - None...............15
Item 3. Defaults Upon Senior Securities - None........................15
Item 4. Submission of Matters to a Vote of Security Holders - None....15
Item 5. Other Information - None......................................15
Item 6. Exhibits and Reports on Form 8-K..............................15
(a) Exhibits - None
</TABLE>
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RENTECH, INC. AND SUBSIDIARY
Consolidated Balance Sheets
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<CAPTION>
December 31, September 30,
1998 1998
(Unaudited)
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 2,528,370 $ 3,056,379
Accounts receivable , net of $2,154 and $1,800
allowance for doubtful accounts 99,241 224,933
Inventories 111,489 99,574
Prepaid expenses and other current assets 238,520 209,179
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Total Current Assets 2,977,620 3,590,065
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PROPERTY AND EQUIPMENT
Property and equipment, net of accumulated
depreciation of $198,871 and $180,258 462,917 320,057
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OTHER ASSETS
Licensed technology, net of accumulated
amortization of $1,230,137 and $1,172,951 2,201,011 2,258,197
Goodwill, net of accumulated amortization
of $144,495 and $124,333 1,065,220 1,085,382
Investment in ITN/ES 3,079,107 3,079,107
Technology rights, net of accumulated
amortization of $35,558 and $28,776 252,188 258,970
Deposits and other assets 226,137 123,472
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Total Other Assets 6,823,663 6,805,128
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Total Assets $ 10,264,200 $10,715,250
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</TABLE>
See notes to the consolidated financial statements
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RENTECH, INC. AND SUBSIDIARY
Consolidated Balance Sheets (continued)
<TABLE>
<CAPTION>
December 31, September 30,
1998 1998
(Unaudited)
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 215,698 $ 315,116
Accrued liabilities 43,891 79,568
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Total Current Liabilities 259,589 394,684
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COMMITMENTS
STOCKHOLDERS' EQUITY
Series A convertible preferred stock - $10 par value; 200,000 shares
authorized; 0 and 50,000 shares issued and outstanding; $10 per share
liquidation value (in the aggregate $528,347 including
accrued dividends of $28,347 as of September 30, 1998) - 500,000
Series B convertible preferred stock - $10 par value; 800,000
shares authorized; 0 and 107,500 shares issued and outstanding; $10 per
share liquidation value (in the aggregate $1,081,000 including
accrued dividends of $6,000 as of September 30, 1998) - 1,075,000
Common stock - $.01 par value; 100,000,000 shares
authorized; 43,295,347 and 40,075,292 shares
issued and outstanding 432,951 400,750
Additional paid-in capital 23,270,018 21,426,487
Accumulated deficit (13,698,358) (13,081,671)
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Total Stockholders' Equity 10,004,611 10,320,566
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Total Liabilities and Stockholders' Equity $ 10,264,200 $ 10,715,250
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</TABLE>
See notes to the consolidated financial statements.
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RENTECH, INC. AND SUBSIDIARY
Consolidated Statements of Operations (Unaudited)
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Three Months Ended
December 31,
1998 1997
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REVENUES:
Net sales $ 401,288 $ 402,167
Royalty income 160,000 -
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Total Revenues 561,288 402,167
COSTS OF SALES:
Cost of sales 174,137 172,300
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GROSS PROFIT 387,151 229,867
EXPENSES:
General and administrative 744,212 569,822
Research and development 158,046 -
Depreciation and amortization 101,591 90,204
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Total Expenses 1,003,849 660,026
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LOSS FROM OPERATIONS (616,698) (430,159)
OTHER INCOME (EXPENSE):
Interest income 32,433 2,470
Interest expense (230) (75,331)
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Total Other Income (Expense) 32,203 (72,861)
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NET LOSS (584,495) (503,020)
Dividend requirement on Preferred Stock 32,192 -
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LOSS APPLICABLE TO COMMON STOCK $(616,687) $ (503,020)
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Basic and diluted weighted average number
of shares outstanding 41,951,486 29,995,612
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NET LOSS PER SHARE:
Basic and diluted $(0.01) $(0.02)
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</TABLE>
See notes to the consolidated financial statements.
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RENTECH, INC. AND SUBSIDIARY
Condensed Consolidated Statement of Stockholders' Equity
For the Three Months ended December 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Preferred Stock
Series A Series B
Shares Amount Shares Amount
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<S> <C> <C> <C> <C>
Balances, October 1, 1998 50,000 $ 500,000 107,500 $ 1,075,000
Common stock issued,
for cash
Common stock issued
for dividends on Series A
Preferred stock
Common stock issued
for dividends on Series B
Preferred stock
Common stock issued
for conversion of Series A
Preferred stock (50,000) (500,000)
Common stock issued
for conversion of Series B
Preferred stock (107,500) (1,075,000)
Dividends on preferred stock
Net loss for the three
months ended
December 31, 1998
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Balances, December 31, 1998
(unaudited) -0- $ -0- -0- $ -0-
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<CAPTION>
Common Stock Additional
Par Paid-in Accumulated
Shares Value Capital Deficit
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Balances, October 1, 1998 40,075,292 $ 400,750 $ 21,426,487 $(13,081,671)
Common stock issued,
for cash 819,610 8,196 225,998
Common stock issued
for dividends on Series A
Preferred stock 52,068 521 55,241
Common stock issued
for dividends on Series B
Preferred stock 11,436 114 10,663
Common stock issued
for conversion of Series A
Preferred stock 730,549 7,305 492,695
Common stock issued
for conversion of Series B
Preferred stock 1,606,392 16,065 1,058,934
Dividends on preferred stock (32,192)
Net loss for the three
months ended
December 31, 1998 (584,495)
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Balances, December 31, 1998
(unaudited) 43,295,347 $ 432,951 $ 23,270,018 $(13,698,358)
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</TABLE>
See notes to the consolidated financial statements.
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RENTECH, INC. AND SUBSIDIARY
Consolidated Statement of Cash Flows
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<CAPTION>
For the Three Months Ended December 31, (Unaudited) 1998 1997
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OPERATING ACTIVITIES
Net Loss $(584,495) $ (503,020)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 102,743 90,204
Interest paid with Common Stock - 45,621
Changes in operating assets and liabilities:
(Increase) Decrease in accounts receivables 125,692 (4,856)
(Increase) in inventories (11,915) (783)
(Increase) Decrease in prepaids and other current assets (29,341) 4,676
Increase (Decrease) in accounts payable
and other accrued expenses (100,749) 4,905
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Net Cash Used in Operating Activities: (498,065) (363,253)
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INVESTING ACTIVITIES
Purchase of equipment (161,473) (10,065)
(Increase) Decrease in deposits and other assets (102,665) 195
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Net Cash Used in Investing Activities: (264,138) (10,065)
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FINANCING ACTIVITIES
Proceeds from convertible notes payable - 60,000
Proceeds from issuance of common stock 234,194 236,150
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Net Cash Provided by Financing Activities 234,194 296,150
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DECREASE IN CASH AND CASH EQUIVALENTS (528,009) (76,973)
Cash and Cash Equivalents,
Beginning of Period 3,056,379 391,487
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Cash and Cash Equivalents,
End of Period $ 2,528,370 $ 314,514
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</TABLE>
See notes to consolidated financial statements.
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RENTECH, INC. AND SUBSIDIARY
Notes to the Consolidated Financial Statements
December 31, 1998 (Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and
Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. The accompanying statements should be read in
conjunction with the audited financial statements included in the Company's
September 30, 1998 annual report on Form 10-KSB. In the opinion of
management, all adjustments (consisting only of normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three months ended December 31, 1998 are not necessarily
indicative of the results that may be expected for the full fiscal year
ending September 30, 1999.
2. SIGNIFICANT ACCOUNTING POLICIES
Consolidation - The consolidated financial statements include the
accounts of the Company and its wholly-owned subsidiary, Okon, Inc. All
significant intercompany accounts and transactions have been eliminated in
consolidation.
Inventories -Inventory which consist of water protection sealants ,
chemicals and packaging supplies, are recorded at the lower of cost
(first-in, first-out) and market.
Licensed Technology - Capitalized investment in licensed technology
represents costs incurred by the Company primarily for the purpose of
demonstrating the Company's proprietary technology to prospective licensees,
which it licenses to third parties under various fee arrangements. These
capitalized costs are being amortized using the straight line method over 15
years.
Investment in ITN/ES represents a 10% interest in ITN Energy Systems,
Inc. The investment is stated at cost. The investment is evaluated
periodically and is carried at the lower of cost or net realizable value.
Technology Rights - Technology rights are recorded at cost and are being
amortized on a straight-line method over a 10 year estimated life.
Property and Equipment - Property and equipment is stated at cost and
depreciated and amortized using the straight-line method over the estimated
useful lives of the assets, which range from five to seven years except for
leasehold improvements which are amortized over the shorter of the useful
life or the remaining lease term. Maintenance and repairs are expensed as
incurred. Major renewals and improvements are capitalized and assets replaced
are retired. When property and equipment are retired or otherwise disposed
of, the asset and accumulated depreciation or amortization are removed from
the accounts and the resulting profit or loss is reflected in income.
Excess of Cost Over Net Assets Acquired - The excess of cost over net
assets acquired, which relate to the acquisition of Okon, is being amortized
over a 15 year period using the straight-line method.
Long-Lived Assets - Long-lived assets, identifiable intangibles, and
excess of costs over net assets are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount may not be
recoverable. If the expected future cash flow from the use of the asset and
its eventual disposition is less than the
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carrying amount of the asset, an impairment loss is recognized and measured
using the asset's fair value.
Revenue Recognition - The Company reports its royalty income when the
revenue earning activities that are to be provided by the Company have been
performed and no future obligations to perform services exist. Sales of
water-based stains sealers and coatings are recognized when the goods are
shipped to the customers.
Research and Development Costs - Research and development costs are
charged to expense as incurred.
Net Income (Loss) Per Share - Statement of Financial Accounting
Standards No. 128 provides for the calculation of "Basic" and "Diluted"
earnings per share. Basic earnings per share includes no dilution and is
computed by dividing income available to common stockholders by the
weighted-average number of shares outstanding during the period. Diluted
earning per share reflect the potential dilution of securities that could
share in the earnings of the Company, similar to fully diluted earnings per
share. Options and warrants are not considered in the computation of diluted
earnings per share as their inclusion would be antidilutive. For the three
months ended December 31, 1998, total stock options and stock warrants of
4,631,626 were not included in the computation of diluted loss per share
because their effect was anti-dilutive.
The Company has adopted Statement of Financial Accounting Standards No.
130, "Reporting Comprehensive Income" ("SFAS No. 130"). Comprehensive income
is comprised of net income and all changes to the consolidated statements of
stockholders' equity, except those due to investments by stockholders,
changes in paid in capital and distributions to stockholders. The adoption of
SFAS No. 130 does not impact the Company's consolidated financial statements
for 1998 and 1997.
3. PREFERRED STOCK
During the period the Company converted 50,000 shares of Series A
Preferred Stock at $10.00 per share and 1,075,000 shares of Series B
Preferred Stock together with dividends earned on these shares for 782,617
and 1,617,828 common shares respectively.
4. SUBSEQUENT EVENTS
In January 1999 the Company issued 75,000 shares of its Series B
Preferred Stock for net proceeds of $675,000 after offering costs of $75,000.
5. RECENT ACCOUNTING PRONOUNCEMENTS
In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosures
about Pensions and Other Postretirement Benefits" which standardizes the
disclosure requirements for pensions and other post retirement benefits and
requires additional information on changes in the benefit obligations and
fair values of plan assets that will facilitate financial analysis. SFAS No.
132 is effective for years beginning after December 15, 1997 and requires
comparative information for earlier years to be restated, unless such
information is not readily available. Management believes the adoption of
this statement will have no material impact on the Company's financial
statements.
The Financial Accounting Standards Board has recently issued Statements
of Financial Accounting Standards No. 133 "Accounting for Derivative
Instruments and Hedging Activities" ("SFAS No. 133"). SFAS No. 133
establishes standards for recognizing all derivative instruments at fair
value. This Statement is effective foe fiscal years beginning after June 30,
1999. Management believes the adoption of this statement will have no impact
on the Company's consolidated financial statements.
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<PAGE>
The FASB recently issued Statements of Financial Accounting Standards
No. 134 "Accounting for Mortgage-Backed securitization of Mortgage Loans
Held for Sales by a Mortgage Banking Enterprise" ("SFAS No. 134"). SFAS No.
134 establishes accounting and reporting standards for certain activities of
mortgage banking enterprises and other enterprises that conduct operations
that are substantially similar to the primary operations of a mortgage
banking enterprise. This statement is effective for the first fiscal quarter
beginning after December 15, 1998. The Company has not yet determined the
effect of SFAS No. 134 on its financial statements. Management believes the
adoption of this statement will have no impact on the Company's consolidated
financial statements.
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<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1998 AND 1997
RESULTS OF OPERATIONS.
For the three months ended December 31, 1998, the Company recorded
losses of $584,495, compared to net losses of $503,020 for the comparable
period in 1998 fiscal year. The 16% increase for 1999 is primarily due to
increases in general and administrative expenses and research and development
expenses. These increases are partially offset by royalty revenue and
interest income.
Net sales of water-based paints, sealers and coatings by the
Company's Okon subsidiary for the three months ended December 31, 1998 were
$401,288 as compared to $402,167 during the three months ended December 31,
1997. On October 8, 1998, the Company entered into a licensing agreement with
Texaco Natural Gas, Inc. for the Rentech GTL Technology. Under the license,
Texaco have the right to use Rentech's GTL Technology alone and in
combination with Texaco's proprietary gasification technology to produce
liquid hydrocarbon products such as naphtha, fuel and specialty products.
Under this agreement, the Company earned $160,000 in royalty income during
the three months ended December 31, 1998 compared to no royalty income for
the prior comparable period.
Gross profit increased to $387,151 for the three month month periods
ended December 31, 1998 compared to a gross profit of $229,867 for the three
month period ended December 31,1997 because of royalty income which was
earned during the three months ended December 31, 1998
General and administrative expenses increased by $174,390 to
$744,212 for the three month period ended December 31,1998, compared to
$569,822 for the same period in 1998 fiscal year. This increase is caused by
approximately $150,000 in expense from the hiring of additional office and
sales staff and salary increases during 1998.
Depreciation and amortization increased by $11,387 for the three
month periods ended December 31, 1998 compared to the three months ended
December 31,1997 primarily due to depreciation of equipment and amortization
of leasehold improvements associated with setting up the new laboratory and
research facility.
Research and development expenses for the three months ended
December 31, 1998 are $158,046 as compared to nothing for the same period in
the prior fiscal period. These increased costs reflect the addition of
personnel and other costs associated with ongoing research in the gas to
liquid technology.
Loss from operations for the three month period ended December 31,
1998 increased 43% to $616,698 from losses of $430,159 reported for the
comparable period in 1998 fiscal year. The increased loss is primarily due to
increases in office staff , laboratory personnel and other costs associated
with increased research. Cost increases are partially offset by royalty
income which commenced in October 1998.
Interest income was $29,963 higher during the three month period
ended December 31, 1998 as compared to the same period of 1997 because of the
Company's increase in cash on hand.
Interest expense during the three month period ended December 31,
1998 was $230 compared to $75,331 during comparable 1998 period due to
interest charges relating to $1,310,500 in debt which was eliminated in 1998.
LIQUIDITY AND CAPITAL RESOURCES.
At December 31, 1998, the Company had working capital of $2,718,031
as compared to working capital of
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$3,195,381 at September 30, 1998. The decrease in working capital is
primarily due to the use of cash in operations and purchase of capital assets
partially offset by the proceeds from common stock issued for cash.
The cash received by the Company during the fiscal year ended
September 30, 1998 and the cash generated from Okon's operations are expected
to be adequate to fund the Company's operations at the current level through
the 2000 fiscal year.
The Company is discussing other proposals made by several energy
companies for exploitation of the Company's GTL Technology through licenses
or other business ventures. No assurances can be made that these discussions
or arrangements will result in revenues to the Company. In October 1998,
Rentech entered into a license agreement with Texaco Natural Gas, Inc. for
commercialization of Rentech's GTL Technology.
The Company has made significant commitments for capital
expenditures. Management has purchased for $1,413,000 the building housing
its new laboratory and invested $161,000 in building renovations and new
testing equipment during the period ended December 31, 1998. The Company is
in the process of closing its Pueblo testing facility.
The Company has deferred tax assets with a 100 percent valuation
allowance at December 31, 1998 and September 30, 1998. Management is not able
to determine if it is more likely than not that the deferred tax assets will
be realized.
The Company, like most other companies, is faced with the Year 2000
Issue, which is the result of computer programs that are written using two
digits rather than four to define the applicable year. Any computer programs
that affect the Company's activities and that have date-sensitive software
may recognize a date using "00" as the year 1900 rather than the year 2000.
This could result in a system failure or miscalculations causing disruptions
of operations that depend upon such date-sensitive software or computer
hardware. The potential problems include, among other things, a temporary
inability to process transactions, send invoices, transfer funds, or engage
in similar normal business activities. The problems caused by the Year 2000
Issue may be exacerbated and cause widespread business disruption because of
the interdependence of computer and telecommunications systems in the United
States and throughout the world.
The Company has completed an initial assessment of Year 2000
compliance for its own information technology and business infrastructure.
Based upon this assessment, the Company believes its computer software,
hardware and embedded technology would present limited Year 2000 Issues. The
Company believes that its activities do not rely upon date-sensitive computer
software, hardware or embedded technology for its own activities. The Company
has been unable to evaluate whether the software, hardware and embedded
technology used by third parties with whom it conducts business, including
licensees, joint venture parties, and potential licensees, are Year 2000
compliant. If third parties who do business with the Company or governmental
regulatory agencies fail to timely remediate their Year 2000 Issues, then the
Company may experience business interruptions, and in the worst case, the
inability to engage in normal business operations for an unknown length of
time. The effect of these and related difficulties on the Company's
operations, income and financial condition could be materially adverse. To
date, the Company's assessment of the Year 2000 Issue has not resulted in
material costs. The Company does not believe that any material expenditures
will be required to complete its assessment.
The Company recognizes the need for Year 2000 contingency plans
because of the uncertainty associated with the Year 2000 Issue. The Company
does plan to replace its word processing and financial spread sheet software
and its computer hardware if they are impacted by Year 2000 Issues. The cost
of any such replacements is not expected to be material. The Company believes
that it will not be able to require third parties with whom it conducts
business
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or government agencies to resolve their Year 2000 Issues. The Company has not
developed contingency plans that would assure it will not be adversely
impacted by the effect of the Year 2000 Issue, and it does not intend to
prepare such plans.
ANALYSIS OF CASH FLOW
As discussed under "Results of Operations," the Company had net
losses of $584,495 and $503,020 respectively for the three months ended
December 31, 1998 and 1997. The 1997 non-cash expenses include a $45,621
charge for interest on convertible notes payable satisfied with the issuance
of common stock.
There was a $125,692 decrease in accounts receivable during the
three months ended December 31,1998 compared to a $4,856 increase during the
comparable fiscal year 1998 period. The decrease is primarily due to Okon's
December 1998 sales which were at a level approximately one-half of the sales
recorded December 1997.
Accounts payable increased by $100,749 during the three months ended
December 31, 1998 compared to a $4,905 increase for the prior year comparable
period.
During the first quarter of fiscal 1999 $498,065 cash was used by
operating activities compared to a net cash usage of $363,253 for the
comparable period last year.
The Company purchased $161,473 in equipment and leasehold
improvements during the first quarter of fiscal 1999 compared to purchases of
$10,065 during the comparable 1998 period.
Deposits and other assets increased by $102,665 during the first
fiscal quarter compared to a $195 decrease for the comparable 1997 period. An
additional $25,000 was paid on a future joint venture project and $75,000 was
paid on a deposit against a planned future acquisition.
The Company financed a portion of its activities by net proceeds of
$234,194 from an issuance of its common stock during the 1999 period compared
to proceeds of $60,000 from convertible notes payable and $236,150 from
common stock during the comparable period in 1998.
Cash decreased during the first quarter of fiscal 1999 by $528,009
compared to a decrease of $76,973 for the comparable period of 1998. These
changes decreased the ending cash balance to $2,528,370 at December 31, 1998
from $3,056,379 at September 30, 1998. The 1998 changes decreased the
$391,487 September 30, 1997 balance to $315,514 at December 31, 1997.
RECENT ACCOUNTING PRONOUNCEMENTS
In February 1998, the FASB issued SFAS No. 132, "Employers'
Disclosures about Pensions and Other Postretirement Benefits" which
standardizes the disclosure requirements for pensions and other
postretirement benefits and requires additional information on changes in the
benefit obligations and fair values of plan assets that will facilitate
financial analysis. SFAS No. 132 is effective for years beginning after
December 15, 1997 and requires comparative information for earlier years to
be restated, unless such information is not readily available. Management
believes the adoption of this statement will have no material impact on the
Company's financial statements.
The Financial Accounting Standards Board has recently issued
Statements of Financial Accounting Standards No. 133 "Accounting for
Derivative Instruments and Hedging Activities" ("SFAS No. 133"). SFAS No. 133
establishes standards for recognizing all derivative instruments at fair
value. This Statement is effective foe fiscal years beginning
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after June 30, 1999. Management believes the adoption of this statement will
have no impact on the Company's consolidated financial statements.
The FASB recently issued Statements of Financial Accounting
Standards No. 134 "Accounting for Mortgage-Backed securitization of Mortgage
Loans Held for Sales by a Mortgage Banking Enterprise" ("SFAS No. 134"). SFAS
No. 134 establishes accounting and reporting standards for certain activities
of mortgage banking enterprises and other enterprises that conduct operations
that are substantially similar to the primary operations of a mortgage
banking enterprise. This statement is effective for the first fiscal quarter
beginning after December 15, 1998. The Company has not yet determined the
effect of SFAS No. 134 on its financial statements. Management believes the
adoption of this statement will have no impact on the Company's consolidated
financial statements.
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PART II - OTHER INFORMATION
Item 1. Legal Proceedings. None.
Item 2. Change in Securities and Use of Proceeds.
There were no sales of the Company's equity securities sold by the
Company during the period covered by this report that were not
registered under the Securities Act of 1933, as amended.
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 on Form 8-K.
(a) Exhibits. None
(b) Form 8-K dated October 8, 1998 reporting under Item 5, Other
Events, the licensing agreement with Texaco Natural Gas, Inc.
Form 8K dated November 18, 1998 reporting under Item 5, Other
Events, the adoption of a shareholder rights plan.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RENTECH, INC.
/s/ Dennis L. Yakobson
Dated: February 16, 1999 -----------------------------------------
Dennis L. Yakobson, President
/s/ James P. Samuels
Dated: February 16, 1999 -----------------------------------------
James P. Samuels, Vice President-Finance
and Chief Financial Officer
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<S> <C>
<PERIOD-TYPE> 3-MOS
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