U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the quarterly period ended September 30, 2000
----------------------
[ ] Transition report under Section 13 or 15(d) of the exchange act of
1934 for the transition period from ______________ to ______________
COMMISSION FILE NUMBER 0-30917
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GLOBAL WATER TECHNOLOGIES, INC.
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(Exact name of small business issuer as specified in its charter)
Delaware 84-1148204
--------------------------------- ---------------------------------
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
1767 Denver West Boulevard Golden, Colorado 80401
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(Address of principal executive offices)
(Zip Code)
(Issuer's telephone number): (303) 215-1100
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NA
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(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) 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 X No
--- ---
Shares of Common Stock, $0.0006 par value, outstanding as of November 14,
2000: 5,990,048.
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<PAGE>
GLOBAL WATER TECHNOLOGIES, INC. (GWTR)
INDEX
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited):
Consolidated Statements of Operations Three months and nine
months ended September 30,
2000 and 1999
Consolidated Balance Sheet As of September 30,
2000 and December 31, 1999
Consolidated Statements of Cash Flows Nine months ended
September 30, 2000 and 1999
Notes to Financial Statements September 30, 2000 and 1999
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
GLOBAL WATER TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended
----------------------------------
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
Net revenues:
United States $ 6,046,512 $ 11,121,979
International 2,698,066 3,403,757
------------ ------------
Total revenues 8,744,578 14,525,736
------------ ------------
Costs and expenses:
Cost of sales 8,293,771 13,291,969
Selling, general and administrative 1,639,108 1,371,736
Research and development 9,288 4,869
------------ ------------
Total costs and expenses 9,942,167 14,668,574
------------ ------------
Operating income (loss) (1,197,589) (142,838)
Other income (expense):
Interest expense, net (81,468) (94,100)
Other, net 35,749 100
------------ ------------
Income (loss) before income taxes (1,243,308) (236,838)
Income taxes (benefit) (354,342) (73,419)
------------ ------------
Net income (loss) before preferred dividend (888,966) (163,419)
Preferred stock dividend 3,000 5,000
------------ ------------
Net income (loss) for common stockholders $ (891,966) $ (168,419)
============ ============
Income (loss) per share:
Basic weighted average shares outstanding 5,990,048 4,916,661
Basic income (loss) per share available for common $ (0.149) $ (0.034)
============ ============
Fully diluted weighted average shares outstanding 5,990,048 4,916,661
Fully diluted income (loss) per share $ (0.149) $ (0.034)
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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<PAGE>
GLOBAL WATER TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
----------------------------------
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
Net revenue:
United States $ 33,173,783 $ 49,587,466
International 3,711,942 4,278,745
------------ ------------
Total revenues 36,885,725 53,866,211
------------ ------------
Costs and expenses:
Cost of sales 33,023,758 48,787,634
Selling, general and administrative 5,972,637 3,725,200
Research and development 100,936 23,482
------------ ------------
Total costs and expenses 39,097,331 52,536,316
------------ ------------
Operating income (loss) (2,211,606) 1,329,895
Other income (expense):
Interest expense, net (280,418) (231,140)
Other, net 36,949 2,902
------------ ------------
Income (loss) before income taxes (2,455,075) 1,101,657
Income taxes (benefit) (783,806) 341,514
------------ ------------
Net income (loss) before preferred dividend (1,671,269) 760,143
Preferred stock dividend 11,000 15,000
------------ ------------
Net income (loss) available for common stockholders $ (1,682,269) $ 745,143
============ ============
Income (loss) per share:
Basic weighted average shares outstanding 5,751,382 4,915,054
Basic income (loss) per share $ (0.292) $ 0.152
============ ============
Fully diluted weighted average shares outstanding 5,751,382 4,924,981
Fully diluted income (loss) per share $ (0.292) $ 0.151
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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GLOBAL WATER TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
September 30, 2000 December 31, 1999
------------------ -----------------
(Unaudited)
-----------
<S> <C> <C>
ASSETS
------
Current assets:
Cash and cash equivalents $ 21,903 $ 707,264
Accounts receivable, net of allowance for doubtful
accounts of $219,159 and $136,029, respectively 10,697,914 11,569,520
Costs and estimated earnings in excess of billings
on uncompleted contracts 15,621,795 10,968,967
Other current assets 2,728,686 1,167,561
------------ ------------
Total current assets 29,070,298 24,413,312
------------ ------------
Other assets 1,796,617 850,618
------------ ------------
$ 30,866,915 $ 25,263,930
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Current maturities of long-term debt $ 4,226,901 $ 1,935,394
Accounts payable 19,906,813 13,718,901
Other current liabilities 2,056,596 3,818,681
------------ ------------
Total current liabilities 26,190,310 19,472,976
------------ ------------
Long-term debt 405,981 1,989,390
Other liabilities 55,368 55,368
Stockholders' equity:
Preferred stock, $0.00001 par value, 20,000,000 shares
authorized:
- Series A; 1,000,000 shares authorized issued,
outstanding at December 31, 1999 only;
stated at redemption value of $0.0001 - 100
- Series B; 1,000 shares authorized, 150 and
250 issued and outstanding respectively; stated at
redemption value of $1,000 150,000 250,000
- Series C; 876,341 shares authorized, issued
and outstanding; at September 30, 2000 only;
no par; no redemption value - -
Common stock, $0.0006 par value; 13,333,333 shares
authorized; 5,990,048 and 5,139,238 shares
issued and outstanding, respectively 3,594 3,083
Capital in excess of par value 3,787,278 1,504,208
Retained earnings 274,384 1,988,805
------------ ------------
Total stockholders' equity 4,215,256 3,746,196
------------ ------------
$ 30,866,915 $ 25,263,930
============ ============
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
GLOBAL WATER TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
----------------------------------
September 30, 2000 September 30, 1999
------------------ ------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (1,682,269) $ 745,143
Adjustments to reconcile net income (loss) to
net cash provided (used) by operating activities:
Depreciation 185,383 147,808
Amortization 8,010 8,253
Deferred income taxes - (121,137)
(Increase) decrease in working capital:
Trade accounts receivable 462,079 (9,502,921)
Other receivables (167,298) (602,356)
Net costs in excess of billings and
billings in excess of cost (5,567,493) (1,680,237)
Inventories (320,976) (432,888)
Prepaid expenses (989,796) (360,721)
Deposits (1,930) 54,465
Accounts payable 6,187,912 8,940,059
Income taxes payable (837,146) 414,468
Accrued liabilities (260,627) (238,604)
------------ ------------
Net cash (used) by operating
activities (2,984,151) (2,628,668)
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (592,789) (205,944)
------------ ------------
Net cash (used in) investing activities (592,789) (205,944)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change on the lines-of-credit 525,988 957,000
Proceeds from issuance of common stock 2,283,481 960,500
Redemption of preferred stock (100,000) -
Proceeds from issuance of debt 255,043 -
Repayments of debt (72,933) (207,857)
------------ ------------
Net cash provided (used) by
financing activities 2,891,579 1,709,643
------------ ------------
NET (DECREASE) IN CASH AND CASH EQUIVALENTS (685,361) (1,124,969)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 707,264 1,751,299
------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 21,903 $ 626,330
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
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GLOBAL WATER TECHNOLOGIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 2000 AND 1999
1. INTERIM FINANCIAL STATEMENTS
The consolidated balance sheet as of September 30, 2000, and the related
consolidated statements of operations for the nine and three months ended
September 30, 2000 and 1999, and the statements of cash flows for the nine
months ended September 30, 2000 and 1999 are unaudited; in the opinion of
management, all adjustments necessary for a fair presentation of such
financial statements have been included. These financial statements and
notes are presented as permitted by Form 10-Q and should be read in
conjunction with the Company's financial statements and notes included in
Form 10-KSB for the year ended December 31, 1999.
2. STOCK OPTIONS
On March 8, 1999, the Company issued 79,980 stock options to employees as
part of the 1998 Stock Option Plan approved by the Company's shareholders
at its 1998 annual meeting. The options vest to employees on a schedule of
20% immediately and 20% over each of the next four years. As of September 30,
2000, 1,960 of the options were exercised. An additional 8,403 options
were forfeited. The options can be exercised when vested, but no later than
5 years from the issuance date.
On February 9, 2000, the Company issued 104,539 stock options to employees
as part of the 1998 Stock Option Plan. The options vest to employees on a
schedule of 20% immediately and 20% over each of the next four years. As
of September 30, 2000, 196 of the options were exercised. An additional
7,612 options were forfeited.
Statement of Financial Accounting Standards (SFAS) No. 123, "Accounting for
Stock-Based Compensation" defines a fair value based method of accounting
for an employee stock option or similar equity instrument. This statement
gives entities a choice of recognizing related compensation expense by
adopting the new fair value method or to continue to measure compensation
using the intrinsic value approach under Accounting Principles Board (APB)
Opinion No. 25, the former standard. If the former standard for
measurement is elected, SFAS No. 123 requires supplemental disclosure to
show the effects of using the new measurement criteria. The Company
intends to continue using the measurement prescribed by APB Opinion No. 25.
3. BUSINESS SEGMENT DATA
The Company's primary business is the design, sale, manufacture and
building of new industrial cooling towers and in retrofitting existing
industrial cooling towers and cooling tower components for both the
international and domestic markets. All of its operations are within the
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United States. Based on risks, financial resources, profitability and
internal resources consumed, management has determined that the most
relevant segment information is international and domestic transactions.
The Company's export sales were $3,711,942 and $4,278,745 for the nine
months ended September 30, 2000 and 1999, respectively. The following
schedule summarizes the segmentation of the international and domestic
business segments for the nine months ended September 30, 2000 and 1999.
BUSINESS SEGMENT STATEMENTS OF OPERATIONS
For the nine months ended September 30, 2000 and 1999
<TABLE>
<CAPTION>
2000
-----------------------------------------------------
DOMESTIC INTERNATIONAL OTHER TOTAL
-------- ------------- ----- -----
<S> <C> <C> <C> <C>
Revenues $33,173,783 $ 3,711,942 $ - $36,885,725
Costs $29,714,556 $ 3,309,202 $ 6,073,573 $39,097,331
Segment profit (loss) $ 3,459,227 $ 402,740 $(6,073,573) $(2,211,606)
Assets $25,561,668 $ 3,834,532 $ 1,470,715 $30,866,915
</TABLE>
<TABLE>
<CAPTION>
1999
-----------------------------------------------------
DOMESTIC INTERNATIONAL OTHER TOTAL
-------- ------------- ----- -----
<S> <C> <C> <C> <C>
Revenues $49,587,466 $ 4,278,745 $ - $53,866,211
Costs $46,231,829 $ 2,555,805 $ 3,748,682 $52,536,316
Segment profit $ 3,355,637 $ 1,722,940 $(3,748,682) $ 1,329,895
Assets $22,871,613 $ 903,150 $ 1,645,464 $25,420,227
</TABLE>
4. NEW CONTRACTS AND BACKLOG
The Company has a backlog of $29,867,104 at September 30, 2000, compared to
a backlog amount of $28,584,257 for the similar period ended in 1999 and a
backlog of $20,846,108 at December 31, 1999. Backlog represents the amount
of revenue the Company expects to realize from work on uncompleted contracts.
5. STOCKHOLDERS' EQUITY
Effective June 30, 2000, the Company underwent a 1-for-60 reverse split of
its common shares. The number of authorized common shares was reduced from
800,000,000 to 13,333,333 and par value was increased from $0.00001 to
$0.0006. Unless otherwise indicated, all share and per share amounts in
these financial statements have been restated to reflect the split.
8
<PAGE>
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
GENERAL
Global Water Technologies, Inc. (the "Company"), primarily through its
wholly owned subsidiary, Psychrometric Systems, Inc., is in the business of
designing, selling, manufacturing and building industrial cooling towers,
repairs and maintenance in the retrofit of existing industrial cooling
towers and cooling tower components for these and similar facilities. The
Company markets its products and services worldwide to the following
industries: electric power utilities; process (such as agricultural,
industrial and pharmaceutical process industries); petrochemical; chemical;
heating, ventilation and air-conditioning ("HVAC"); manufacturing; pulp &
paper and other industries utilizing cooling towers. Typical customers
include companies such as Archer Daniels Midland, Amoco, Mitsubishi, Mobil,
Texaco, Bechtel, Fluor Daniel, Inc. and other large corporations around the
world.
The Company derives revenue from the following principal sources: new
cooling tower sales, retrofits to existing cooling tower construction
repair projects, and spare parts and supplies to existing cooling tower
customers. The Company custom designs and constructs wooden, fiberglass
and concrete towers for its customer base worldwide.
The Company recognizes revenues using the percentage-of-completion
method, based primarily on contract costs incurred to date compared with
total estimated contract costs. Contracts on selected projects where there
are both repair and new tower components are segmented between the two
distinct phases and accordingly, gross margin related to each activity is
recognized as those separate phases are completed using the percentage-of-
completion method, based primarily on contract costs incurred to date
compared with total estimated contract costs. Changes to total estimated
contract costs and to contract revenues via change orders are recognized in
the period in which they are determined. In addition, a provision is made
for the entire amount of future estimated losses, if any, on contracts in
progress in the period in which such losses are determined.
THREE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1999
Total revenues were derived from engineering, construction, retrofits,
spare parts of cooling towers and services from both Global Water Services
products and Applied Water Technologies' water treatment program. For the
three month period ended September 30, 2000, total tower revenue decreased
39.8% to $8,744,578 as compared to $14,525,736 for the three month period
ended September 30, 1999. International revenues comprised 30.9% of total
revenues in 2000 versus 23.4% in 1999.
The Company's cost of sales decreased 37.6% from $14,525,739 in 1999
to $8,293,771 in 2000. As a percentage of revenues, cost of sales
increased from 91.5% in 1999 to 94.8% in 2000. Due to significant
competition, there can be no assurance that the Company can maintain its profit
9
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margins in the future.
Selling, general and administrative expenses increased 19.5% from
$1,371,736 in 1999 to $1,639,108 in 2000. As a percentage of revenues,
these expenses increased from 9.4% in 1999 to 18.7% in 2000. Increased
personnel resources and related costs due to the startup of the Company's
two new businesses, Applied Water Technologies and Global Water Services,
was approximately $265,000 of the difference between the two quarters.
Higher costs in the areas of marketing and corporate costs accounted for
the remainder of the difference. As a percentage of new bookings, these
expenses decreased from 7.8% in 1999 to 7.5% in 2000. Management believes
that current and future investments in personnel resources will have a
favorable impact on the Company and its future operating results.
Research and development costs increased to $9,288 in 2000 from $4,869
in 1999. During the second quarter of the current year, the Company has
preliminary indications that it successfully passed the fire criteria tests
for Factory Mutual Research certification for a line of its cooling tower
products. This certification allows customers to forego sprinkler system
installations and may result in lower capital and operating costs for the
Company's product.
Operating (loss), based on the explanations noted above, decreased to
($1,197,589) in 2000 from an operating (loss) of ($142,838) in 1999.
Other income and expense primarily consisted of interest expense,
which decreased from $94,100 in 1999 to $81,468 in 2000, due to the
Company's various debt financings. Other income increased from $100 to
$35,749 in 2000. Income taxes (benefit) increased from a benefit of $73,419
with an effective 31.0% tax rate in 1999 to a tax benefit of ($354,342)
with an effective tax rate of 28.5% in 2000.
Net income (loss) available to common stockholders decreased from
($168,419) in the three month period ended September 30, 1999 to a net
(loss) of ($891,966) in the similar period in 2000. This amount includes a
preferred stock dividend of $3,000 in 2000 and $5,000 in 1999. Basic and
fully diluted (loss) per share was $(0.034) in the three month period ended
September 30, 1999 and ($0.149) in 2000.
NINE MONTHS ENDED SEPTEMBER 30, 2000 COMPARED TO NINE MONTHS ENDED
SEPTEMBER 30, 1999
Total revenues were derived from engineering, construction, retrofits,
spare parts of cooling towers and services from both Global Water Services
products and Applied Water Technologies' water treatment program. For
the nine month period ended September 30, 2000, total tower revenue
decreased 31.5% to $36,885,725 as compared to $53,866,211 for the nine
month period ended September 30, 1999. International revenues comprised
10.1% of total revenues in 2000 versus 7.9% in 1999.
Contracts awarded ("bookings") during the nine month period ended
September 30, 2000 increased 33.1% to $21,735,000 in 2000. Backlog increased
from $16,876,473 at June 30, 2000 to $29,867,104 at September 30, 2000.
10
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The Company's cost of sales decreased 32.3% from $48,787,634 in 1999
to $33,023,758 in 2000. As a percentage of revenues, cost of sales
decreased from 90.5% in 1999 to 89.5% in 2000. The absolute decrease in
cost of sales resulted primarily from a 31.5% decrease in corresponding
revenues. Due to significant competition, there can be no assurance that
the Company can maintain its profit margins in the future.
Selling, general and administrative expenses increased 60.3% from
$3,725,200 in 1999 to $5,972,637 in 2000 as the Company continues to make
an investment in its future. As a percentage of revenues, these expenses
increased from 6.9% in 1999 to 16.2% in 2000 mainly due to the impact from
its two new businesses. Increased personnel resources and related costs due
to the startup of the Company's two new businesses, Applied Water Technologies
and Global Water Services, was approximately $872,000 of the difference
between the two periods. Management believes that the increases in selling
expenses will have a positive impact on the increase in bookings and the
recognition of the related revenues for future periods.
Research and development costs increased to $100,936 in 2000 from
$23,482 in 1999. These costs include a portion of the research and
development facility in Idaho. During the second quarter of the current
year, the Company has preliminary indications that it successfully passed
the fire criteria tests for Factory Mutual Research certification for a
line of its cooling tower products. This certification allows customers to
forego sprinkler system installations and may result in lower capital and
operating costs for the Company's product.
Operating income (loss), based on the explanations noted above,
decreased from an income of $1,329,895 in 1999 to an operating loss of
($2,211,606) in 2000.
Other income and expense primarily consisted of interest expense.
Income taxes (benefit) decreased from a cost of $341,514 with an effective
31.0% tax rate in 1999 to a tax (benefit) of ($783,806) with an effective
tax rate of 32.0% in 2000.
Net income (loss) available for common stockholders was ($1,682,269)
in the nine month period ended September 30, 2000 compared to a net income
of $745,143 in the similar period in 1999. Basic and fully diluted income
(loss) per share was ($0.292) in the nine month period ended September 30,
2000. Basic and fully diluted income per share was and $0.152 and $0.151
respectively in 1999.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 2000, the Company had working capital of $2,879,988
compared to working capital of $2,779,514, at September 30, 1999 and working
capital of $4,940,336 at December 31, 1999. The Company's cash flow
provided by and used in its operating, investing and financing activities
during the first nine months of 2000 and 1999 are as follows:
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2000 1999
---- ----
Operating activities $ (2,984,151) $ (2,628,668)
Investing activities (592,789) (205,944)
Financing activities 2,891,579 1,709,643
------------ ------------
Net (decrease) in cash
and cash equivalents $ (685,361) $ (1,124,969)
============ ============
The Company's capital requirements for its continuing operations
consists of its general working capital needs, scheduled payments on its
debt obligations, new business opportunities and capital expenditures.
Management anticipates that due to the growth in sales volume and
contracted advanced payments from projects, the Company's operating
activities will provide a cash increase during the remainder of the year.
Management believes that its current debt facilities and/or possible
capital market funding will be sufficient for its operational cash
investment requirements during the next four quarters.
At September 30, 2000, net costs in excess of billings and estimated
earnings on uncompleted contracts were $15,231,597 as compared to net costs
in excess of billings and estimated earnings on uncompleted contracts of
$3,617,607 at September 30, 1999 and $9,664,104 at December 31, 1999. This
net increase is primarily due to contracted payment terms, project delays
and timing of billings. Management expects this net investment to decrease
over the next two quarters.
Budgeted capital expenditures during the remainder of the year consist
of ongoing amounts for computer equipment, software, vehicles and office
equipment for anticipated growth.
The Company has a line of credit with a commercial lender totaling
$2,800,000 to finance its working capital needs. This is partially secured
by a stockholder's certificates of deposit. As of September 30, 2000,
$2,200,000 was outstanding on this line of credit. A portion of the line
($1,000,000) matures in December, 2000 and the balance matures on January
15, 2001. Management expects that this line of credit will be refinanced
into a long-term obligation when the obligation becomes due. The interest
rate on the note is tiered as follows: 6.69% on the first $770,000 and
10.5% on the remaining portion. In addition to the interest rate stated,
the Company pays the above noted stockholder additional interest of $8,131
per month on his certificates of deposit securing the above mentioned
Company notes.
The Company also has a line of credit with a commercial lender
totaling $2,000,000 to finance its working capital needs on foreign
projects. This line of credit is guaranteed by the Export Import Bank of
the United States and subjects the Company to certain financial covenants
including minimum net worth requirements. The line of credit bears
interest at prime plus 1% and matures on December 15, 2000. As of
September 30, 2000, there was an outstanding balance of $1,855,988 on this
line of credit. Management expects that the line will be renewed when it
comes due.
The Company has a term loan secured by the Small Business
Administration with an outstanding balance at September 30, 2000 of
$256,277. Scheduled principal payment on this
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note is $95,004 over the next twelve months and interest rates are stated
at one percent over prime. The Company has various term notes secured by
Company vehicles. The outstanding balance on these notes at September 30,
2000 was $320,617 with scheduled principal payments over the next twelve
months of $75,909 with interest rates ranging from 8.5% to 10.5%.
Management believes that the Company will have sufficient capital
resources to fund its ordinary capital requirements for at least the next
four quarters for continuing operations. No assurance can be made that the
Company will have sufficient working capital to continue its requirements
for continuing operations beyond the next four quarters.
FORWARD LOOKING STATEMENTS
Statements of the Company's or management's intentions, beliefs,
anticipations, expectations and similar expressions concerning future
events contained in this document constitute "forward looking statements"
as defined in the Private Securities Litigation Reform Act of 1995. As
with any future event, there can be no assurance that the events described
in forward looking statements made in this report will occur or that the
results of future events will not vary materially from those described in
the forward looking statements made in this report. Important factors that
could cause the Company's actual performance and operating results to
differ materially from the forward looking statements include, but are not
limited to, changes in the general level of economic activity in the
markets served by the company, competition in the cooling tower industry
and other industries where the Company markets its products and the
introduction of new products by competitors in those industries, delays in
refining the Company's manufacturing and construction techniques, cost
overruns on particular projects, availability of capital sufficient to
support the Company's level of activity and the ability of the Company to
implement its business strategy.
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PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) The following exhibits required by Item 601 of Regulation S-X are
filed herewith:
Exhibit No. Description
----------- -----------
27 Financial Data Schedule
(b) No Reports on Form 8-K were filed during the three months ended
September 30, 2000.
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SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GLOBAL WATER TECHNOLOGIES, INC.
Date: November 14, 2000 By: /s/ George A. Kast
------------------------------------
George A. Kast
Chief Executive Officer
and Chairman of the Board
Date: November 14, 2000 By: /s/ Martin Hout
------------------------------------
Martin Hout
Chief Financial Officer
15
