UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-QSB/A
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT 1934
For the quarterly period ended September 30, 1998
Commission file Number 0-23892
ENVIROMETRICS, INC.
(Exact name of registrant as specified in its charter.)
DELAWARE 57-0941152
(State or other jurisdiction of I.R.S. Employer
incorporation or organization) Identification No.)
9229 UNIVERSITY BOULEVARD
CHARLESTON, SC 29406
(Address of principal executive offices)
Registrant's telephone number, including area code:
(843) 553-9456
Indicate by check mark whether the registrant(1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 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]
As of September 30, 1998 the Registrant had outstanding 3,012,686 shares of
common Stock. Transitional small business disclosure format (check one):
YES [ ] NO [X]
<PAGE>
INDEX
PART I. FINANCIAL INFORMATION Page #
Item 1. Financial Statements
Condensed Consolidated Balance Sheet at
September 30, 1998 and December 31, 1997 2
Condensed Statement of Operations for the
Third Quarter ended September 30, 1998 and 1997 3
Condensed Statement of Cash Flows for the
Third Quarter ended September 30, 1998 and 1997 4
Notes to Consolidated Financial Statements 5-6
Item 2.Management's Discussion and Analysis of Results of
Operations and Financial Conditions 7-11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 5. Other Information 12
Item 6. Exhibits and Reports 12
Signature 12
<PAGE>
ENVIROMETRICS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 1998 and December 31, 1997
<TABLE>
<CAPTION>
September 30, 1998 December 31, 1997
ASSETS (Unaudited) (Unaudited)
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 21,658 $ 54,096
Current portion of notes
receivable 337,817 100,548
Trade receivables less allowance
for doubtful accounts 1998 $4,918
and 1997 $18,082 129,109 117,625
Other receivables 2,166 4,367
Inventories 14,973 17,334
Prepaid expenses 27,745 53,821
-------- --------
TOTAL CURRENT ASSETS 533,468 347,791
-------- --------
OTHER ASSETS AND INTANGIBLES
Deposits 1,902 21,093
Notes receivable,
less current portion 282,863 596,197
Organization and loan costs,
net of accumulated amortization
1998 $61,838; 1997 $51,958 - 9,880
Other, including amounts due
amounts due from stockholders 147,007 146,148
------- -------
431,772 773,318
------- -------
PROPERTY AND EQUIPMENT
Furniture and equipment 1,079,738 1,079,738
Vehicles 9,490 44,033
--------- ---------
1,089,228 1,123,771
Less accumulated depreciation
and amortization (976,107) (963,843)
--------- ---------
113,121 159,928
--------- ---------
$1,078,361 $1,281,037
========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES
Current maturities of
long-term debt $ 242,872 $ 336,106
Accounts payable 297,571 546,605
Accrued expenses 121,818 174,037
--------- ---------
TOTAL CURRENT LIABILITIES 662,261 1,056,748
--------- ---------
LONG-TERM DEBT,
less current maturities 106,585 544,506
---------- ----------
STOCKHOLDERS' EQUITY
Common stock par value $.001;
authorized 10,000,000 shares;
issued 1998 - 3,012,686 shares
and 1997 - 2,544,899 shares 3,013 2,670
Preferred stock, no par value;
authorized 2,500,000 shares;
issued 1998 - 351,268
and 1997 - 70,000 shares 3,513 700
Additional paid-in capital 5,820,023 5,320,369
Retained earnings(deficit) (5,517,034) (5,643,956)
---------- ----------
309,515 ( 320,217)
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,078,361 $1,281,037
========== ==========
<FN>
See Notes to Condensed Financial Statements
</TABLE>
<PAGE>
ENVIROMETRICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THE QUARTER ENDED SEPTEMBER 30, 1998 and 1997
<TABLE>
<CAPTION>
NINE MONTHS ENDED
September 30, September 30,
1998 1997
--------- --------
<S> <C> <C>
NET SERVICE REVENUE $ 579,865 $ 730,663
DIRECT SERVICE COSTS 392,080 480,509
---------- ----------
GROSS PROFIT 187,785 250,154
---------- ----------
32.3% 34.2%
OTHER OPERATING REVENUE 20,325 16,406
----------- ----------
OPERATING EXPENSES
Sales and marketing 30,963 36,308
General and administrative 282,032 423,044
Depreciation and
amortization 35,087 56,770
--------- ---------
348,082 516,122
--------- ---------
OPERATING LOSS (139,972) (249,562)
--------- ---------
FINANCIAL INCOME (EXPENSE)
Interest income 40,399 45,462
Interest expense (26,221) (66,450)
Gain (loss) on disposition
of property (9,966) 1,606
Gain (loss) on vendor
balances negotiated 298,787 -
Other - -
Amortization of loan costs (9,880) (16,125)
-------- ---------
293,119 (35,507)
-------- ----------
INCOME (LOSS) BEFORE
DISCONTINUED OPERATIONS 153,147 (285,069)
DISCONTINUED OPERATIONS (26,225) (89,488)
-------- --------
NET INCOME (LOSS) $ 126,922 $ (374,557)
========= ==========
Weighted average number of
common shares outstanding 2,733,805 2,559,274
========== ==========
Net loss per common share $ (0.046) $ (0.146)
========= ==========
Dividends per common share $ - $ -
========= ==========
<FN>
See Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
ENVIROMETRICS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
THIRD QUARTER ENDED SEPTEMBER 30, 1998 AND 1997
<TABLE>
<CAPTION>
<C> <C>
September 30,1998 September 30,1997
Cash Flows From Operating Activities:
Net income (loss) $ 126,922 $ (374,557)
Adjustments To Reconcile net
income (loss) to net cash used
in operating activities
Depreciation, including $30,130
from 1997 discontinued operations 35,087 86,900
Amortization 9,880 16,125
Gain on vendor debt mediation (298,787) (1,556)
Loss on disposal of equipment 9,961 3,450
Common stock issued for interest
and loan costs 3,554 -
Change in assets and liabilities:
(Increase)Decrease in accounts
receivable (9,283) 170,318
Decrease in inventory 2,361 179,800
Decrease in prepaid expenses 26,076 39,429
Increase(decrease)in accounts payable
and accrued expenses 4,391 (100,948)
-------- ---------
Net cash (used in) provided by
operating activities (89,833) 18,961
--------- ---------
Cash Flows From Investing Activities:
Collections of notes receivable 76,065 80,079
Cash received on disposition of
assets and product line 3,400 5,100
Loss on disposition of product line - 454
Book value of assets sold in connection with
disposition of asbestos product line,
net of cash paid to third party - (5,554)
Decrease in deposits 19,191 2,121
(Increase) in other assets (859) (36,531)
--------- ----------
Net cash provided by (used in) investing
activities 97,797 45,669
--------- ----------
Cash Flows From Financing Activities:
Proceeds from borrowings on
short-term notes 30,000 25,000
Principal payments on short-term
notes, net - (65,711)
Principal payments on long-term borrowing (70,402) -
-------- ---------
Net cash provided by investing activitiess (40,402) (40,711)
--------- ----------
Net (decrease) increase in cash and
cash equivalents (32,438) 23,919
Cash and cash equivalents, beginning 54,096 29,604
--------- ----------
Cash and cash equivalents, ending $ 21,658 $ 53,523
========= ==========
Supplemental Disclosure of Cash Flows
Information
Cash payments for interest $ 6,664 $ 41,258
========= ==========
Disposition of asbestos product line
Book value of inventory - (65,200)
Book value of equipment - (96,326)
Loss on disposition of above - 454
Cash paid to third party - 155,972
----------- -----------
Cash received $ - $ (5,100)
=========== ==========
Supplemental Disclosure of Non Cash Financing Activities
Issuance of common stock for
warrants, loan costs and other $ 3,554 $ 141
========== ==========
Issuance of common stock for
debt conversion $ 76,877 $ -
========== ==========
Issuance of preferred stock for
debt conversion $ 422,379 $ -
========== ===========
<FN>
See Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
ENVIROMETRICS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1998
(1) The unaudited condensed financial statements and related notes have
been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission. Accordingly, certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been omitted pursuant to
such rules and regulations. The accompanying condensed consolidated
financial statements of the Company, and notes thereto, should be read in
conjunction with the audited financial statements and related notes
included in the Company's Annual Report on Form 10-KSB for the year ended
December 31, 1995. The Company has not completed its audits of the
consolidated financial statements for the years ended December 31, 1997 and
1996 and has not filed form 10-KSB for the years ended December 31, 1997
and 1996.
The results of operations for the interim periods shown in this report are
not necessarily indicative of results to be expected for the fiscal year.
In the opinion of management, the information contained herein reflects all
adjustments necessary to present fairly the consolidated financial position,
results of operations and changes in cash flow for the interim periods. All
such adjustments are of a normal recurring nature.
(2) Net loss per common share is computed using the weighted average number
of common shares outstanding, after giving effect for the 1 for 2 reverse
split effective with the initial public offering in 1994.
(3) Shakespeare Partners, LTD, whose general partner is a stockholder of the
Company, had outstanding notes payable due from the Company amounting to
$200,000 at September 30, 1998 and $287,700 at December 31, 1997. No
interest was paid by the Company during 1997 or year to date 1998.
Shakespeare Partners, LTD, loaned an additional $20,000 to the Company in
May 1998 in connection with negotiation and settlement of certain vendor
debt. Approximately $149,700 of debt was converted to 74,878 preferred
shares which have dividend and preference in liquidation rights.
The United States Company had outstanding notes payable due from the Company
amounting to $209,100 at December 1997. Accrued interest due at September
30, 1998 amounted to $16,000. No interest was paid during 1997 or year to
date during 1998. Approximately $85,000 of debt was converted to 111,648
preferred shares which have dividend and preference in liquidation rights.
$124,100 was forgiven by the United States Company. Two Directors of the
Company are officers of the United States Company. The Secretary and Treasurer
is a Principal in The United States Company.
The President and CEO had outstanding notes payable due from the Company
amounting to approximately $15,000 at December 1997. No interest was paid
during 1997 or year to date during 1998. Approximately $17,700 (original
debt plus accrued interest) was converted to 8,835 preferred shares which
have dividend and preference in liquidation rights.
(4) The Company sold its asbestos product line (inventory and equipment) to
a large customer during May 1997 for $161,072 cash. Proceeds from the
disposition were used to reduce vendor trade amounts. The Company sold its
remaining Air Chemical Technology (ACT) product line to its exclusive
distributor for a $354,850 reduction in prepaid purchase deposits. In
addition, $10,000 cash was paid and 70,000 shares of preferred stock were
issued at a value of $140,000, which eliminated the prepaid purchase deposits
liability.
(5) The Company has a $230,000 note receivable (due no later than December
31, 1998) from the Buyer of its real property in December 1996. The buyer
pays interest only monthly at 10%. The note is secured by the real estate.
(6) The Company's common stock and warrants were deleted from The Nasdaq
SmallCap Market(tm) on December 3, 1996 for failure to meet the capital and
surplus requirement for continued listing. The Company is listed on the
OTC-Bulletin Board.
(7) On April 1, 1997 the Company issued 125,000 shares of its common stock
to The United States Company in exchange for 640,000 warrants to purchase
its common stock. On that same date the Company issued 5,000 shares of
common stock to Walter H. "Skip" Elliott, III, President and CEO, 5,000
shares of common stock to Elsie L. Rose, Treasurer, 5,000 shares of common
stock to Robin A. Bowers, Secretary at that date, and 1,000 shares of
common stock to another employee. The Company issued 125,000 shares to
Shakespeare Partners Ltd. in connection with a prior loan. On June 29, 1998
the Company granted 700,000 options to purchase common stock to its Directors
and Officers.
(8) During October 1997 the Company settled employment agreements with two
employees at termination of their employment by agreeing to grant warrants
for each to purchase 50,000 shares of Company common stock. No amounts have
been recorded in the financial statements.
(9) During 1998 the Company issued 180,287 shares of common stock in
connection with the negotiation and settlement of vendor trade payable balances.
<PAGE>
Three Months Ended September 30, 1998 Compared to Three Months Ended September
30, 1997
The following financial information reports operating trends taking into
account the discontinued operations of the Products Group for 1997.
Net service revenue for the Service group, which is comprised of the
industrial hygiene laboratory and the health and safety consulting, for the
third quarter of 1998 amounted to $199,000 which was $6,300 (3.0%)lower than
the $205,300 reported for the third quarter of 1997. Additional sales that
would have been reported without the discontinued Products line amounted
to $97,400 for the third quarter of 1997.
Direct service costs decreased by 9.9% or $14,700 to $134,300 for the third
quarter of 1998 as compared to $149,200 reported for the third quarter of
1997. Additional cost of sales that would have been reported without the
discontinued Products line amounted to $31,300 for the third quarter of 1997.
The gross profit for the third quarter ended September 30, 1998 increased by
$8,500, an increase of 15.2%, to $64,700 as compared to $56,200 for the
three months ended September 30, 1997. Additional 1997 third quarter gross
profit that would have been reported without the discontinued Products line
was $56,500.
The Company reported a 32.5% gross margin for the third quarter of 1998 as
compared to a 27.4% margin for the third quarter in 1997. The reason for the
improvement in gross margin in the Services Division and the $8,500 increase
in the amount of gross profit reported by that division is due primarily to
reduced personnel costs.
Other operating expense was $300 for the quarter ended September 30, 1998 as
compared to $10,200 of revenue for the quarter ended September 30, 1997.
Operating expenses were $57,700 lower and amounted to $106,400 for the three
months ended September 30, 1998, as compared to $164,100 reported for the
three months ended September 30, 1997. Sales and marketing expenses decreased
by $3,700, which savings were mostly attributable to a reduction in staff
for 1998. General and administrative costs decreased by $46,300 to $86,300
for the three months ended September 30, 1998, as compared to $132,600
reported for the three months ended September 30, 1997. This decrease is
primarily attributable to a reduction in personnel and lower insurance costs.
Depreciation and amortization costs decreased overall by $7,600 due to the
reduction in vehicles of the Service Group for the second quarter of 1998.
The Company incurred an operating loss of $42,100 for the three months ended
September 30, 1998 as compared to an operating loss of $97,800 for the three
months ended September 30, 1997. Additional operating loss that would have
been reported without the discontinued Products line amounted to $4,700 for
the third quarter of 1997.
Interest income for the quarter ended September 30, 1998 was $13,100 compared
to $14,800 of interest income recorded for the quarter ended September 30,
1997. The decrease is due to the reduction in the principal balance
outstanding for a note receivable that was executed during 1996 in
connection with the disposition of the Environmental Consulting and
Engineering and Civil Engineering and Surveying Division. Interest expense of
$4,300 for the three months ended September 30, 1998 was $15,300 lower than
than the amount reported for the third quarter of 1997 which was $19,600.
The decrease in interest expense is attributable to elimination of borrowing
under the Company's asset based lending arrangement for the Products Group
which was disposed during the fourth quarter of 1997 and conversion of
long-term debt to equity at June 30, 1998. The Company recorded a net
gain of $14,500 for the third quarter of 1998 on vendor trade payables and
notes payable that were negotiated. Loan costs were fully amortized at the
end of the second quarter of 1998, so no amounts were amortized during the
third quarter of 1998. Amortization of loan costs for the third quarter of
1997 was $5,400.
The Company incurred a loss before discontinued operations of $23,400 for the
three months ended September 30, 1998 as compared to a loss before
discontinued operations of $108,100 for the three months ended September 30,
1997. The improvement of $84,700 is due to the items discussed above.
Discontinued operations related to the Products line for the third quarter
ended September 30, 1998 was a trailing expense of $100 and for the same
period in 1997 was $1,500 of income due to sales of remaining inventory items
and a small amount of trailing expenses. Net loss for the third quarter
ended September 30, 1998 was $23,500 which is $83,000 lower than the net
loss of $106,500 reported for the third quarter ended September 30, 1997.
Nine Months Ended September 30, 1998 Compared to Nine Months Ended
September 30, 1997
The following financial information reports operating trends taking into
account the discontinued operations of the Products Group for 1997.
Net service revenue for the Service group, which is comprised of the
industrial hygiene laboratory and the health and safety consulting, for the
first nine months of 1998 amounted to $580,000 which was $150,700 (20.6%)
lower than the $730,700 reported for the first nine months of 1997.
$123,100 of the decrease is attributable to reduced sample analysis during
the first nine months of 19987. $32,400 of the decrease resulted from the
elimination of air quality services from the consultative service offering
when employee positions were not filled. Additional sales that would have been
reported without the discontinued Products line amounted to $711,300 for the
first nine months of 1997.
Direct service costs decreased by 18.4% or $88,300 to $392,200 for the first
nine months of 1998 as compared to $480,500 reported for the first nine
months of 1997. Most of the the decrease is due to reduced laboratory revenue
volume discussed above. The consultative group experienced higher direct
service costs from the use of subcontractors. Additional cost of sales that
would have been reported without the discontinued Products line amounted to
$484,300 for the first nine months of 1997.
The gross profit for the nine months ended September 30, 1998 decreased by
$62,400, a decrease of 24.9%, to $187,800 as compared to $250,200 for the
nine months ended September 30, 1997. Additional gross profit that would
have been reported without the discontinued Products line amounted to
$227,100 for the first nine months of 1997.
The Company reported a 32.4% gross margin for the first nine months of 1998
as compared to a 34.2% margin for the same period in 1997. The reason for
the deterioration in gross margin in the Services Division is due to the
consultative group costs discussed above.
Other operating revenue was $20,300 for the nine months ended September 30,
1998 as compared to $16,400 of revenue for the nine months ended September
30, 1997. Most of the increase was due to refunds and reimbursements
related to insurance and rent.
Operating expenses were $168,000 lower and amounted to $348,100 for the nine
months ended September 30, 1998, as compared to $516,100 reported for the
nine months ended September 30, 1997. Sales and marketing expenses decreased
by $5,300, which savings were mostly attributable to a reduction in staff
for 1998. General and administrative costs decreased by $141,000 to
$282,000 for the nine months ended September 30, 1998, as compared to
$423,000 reported for the nine months ended September 30, 1997 due to reduced
personnel costs and related benefits, lower insurance and lower outside service
costs. Depreciation and amortization costs decreased overall by $21,700 due
to the reduction in service vehicles of the Service Group for the first nine
months of 1998 and sale of the Products line operations during 1997.
The Company incurred an operating loss of $140,000 for the nine months ended
September 30, 1998 as compared to an operating loss of $249,600 for the nine
months ended September 30, 1997. Additional operating loss that would have
been reported without the discontinued Products line amounted to $86,000 for
the first nine months of 1997.
Interest income for the nine months ended September 30, 1998 was $40,400
compared to $45,500 of interest income recorded for the nine months ended
September 30, 1997. The decrease is due to the reduction in the principal
balance outstanding for a note receivable that was executed during 1996 in
connection with the disposition of the Environmental Consulting and
Engineering and Civil Engineering and Surveying Division. Interest expense
of $26,200 for the nine months ended September 30, 1998 was $40,200 lower
that the amount reported for the first nine months of 1997 which was $66,400.
The decrease in interest expense is attributable to elimination of borrowing
under the Company's asset based lending arrangement for the Products Group which
was disposed during the fourth quarter of 1997 and conversion of long-term
debt to equity at June 30, 1998. The Company recorded a net gain of
$298,800 for the nine months ended September 30, 1998 on vendor trade
payables and notes payable that were negotiated. Amortization of loan costs
for the first nine months of 1998 was $9,900 and $16,100 for the same period
in 1997.
The Company reported income before discontinued operations of $153,100 for
the nine months ended September 30, 1998 as compared to a loss before
discontinued operations of $285,100 for the nine months ended September 30,
1997. Discontinued operations for the first nine months ended September 30,
1998 were $26,200 from trailing operating expenses of personnel and facility
costs related to the Products line. Discontinued operations for the first
nine months ended September 30, 1997 were $89,500 related to the Products line.
Net income for the nine months ended September 30, 1998 was $126,900 which is
a $501,500 improvement over the net loss of $374,600 reported for the first
nine months of 1997.
<PAGE>
FINANCIAL CONDITION
The Company's financial condition significantly improved during the second
three months of 1998 and continued into the third quarter due principally to
conversion of debt of secured creditors to equity and negotiation of trade
payable balances with vendors. However, the Company is continuing to
experience cash flow problems.
The working capital deficiency has decreased by $580,200 from $709,000 at
December 31, 1997 to $128,900 at September 30, 1998. This is primarily due
to the conversion of debt owed to related party secured creditors to equity
of $422,400 and forgiveness of debt by a secured creditor of $124,100.
Vendor trade payables were reduced by a net amount of $174,700 which was
recorded as a gain and $80,400 which was converted to common stock at
September 30, 1998.
Trade accounts receivable increased approximately $11,500 to $129,100 at
September 30, 1998 from $117,600 at December 31, 1997.
The Company receives interest income in 1998 of approximately $5,000 per
month from two notes receivable executed during 1996, related to the
disposition of the Environmental Consulting and Engineering and Civil
Engineering and Surveying Division on July 31, 1996 and sale of the real
estate in December 1996. The $230,000 note receivable from the sale of the
real estate is due no later than December 1998.
RECENT DEVELOPMENTS
In September 1998 the Company, through its wholly owned subsidiary, Azimuth,
Inc. (Azimuth), entered into a strategic alliance with PHT Services, Ltd.
(PHTS) for the marketing and selling of environmental, health and safety
services to health care organizations in South Carolina. The alliance
between Azimuth and PHTS will be formalized under a contract that outlines
the environmental, health and safety services PHTS will market to its
clients. Azimuth and PHTS will share the revenue generated. During
November 1998 the Company received its first engagement under this arrangment.
In November 1998 the Company, through its wholly owned subsidiary, Azimuth,
Inc.(Azimuth), entered into a strategic alliance with Enviro-Guard, Ltd. to
cross sell services into the respective customer bases of each company.
Enviro-Guard has a complete service line for medical environmental monitoring,
including medical gas systems evaluation and decontamination. The alliance
will compliment the existing menu of services offered by Azimuth to hospitals.
The alliance between Azimuth and Enviro-Guard will be formalized under a
contract that outlines the services to be provided by each company.
YEAR 2000
Historically, certain computer programs were written using two digits rather
that four to define the applicable year. Accordingly, the Company's software
may recognize a date using "00" as 1900 reather than the year 2000, which could
result in computer systems failures or miscalculations, commonly referred to
as the Year 2000 ("Y2K") issue. The Y2K issue can arise at any point in the
Company's supply, lab analysis processing, and financial applications.
Incomplete or untimely resolution of the Y2K issue by the company, key
suppliers, customers and other parties could have a material adverse effect on
the company's results of operations, financial condition and cash flows.
The Company has developed a plan to modify its information technology to
recognize the Year 2000 and has, to the extent necessary, begun analyzing
and converting, where necessary, its critical data processing systems.
Since many of the Company's systems and software are relatively new, management
does not expect Year 2000 issues related to its own internal systems to be
significant and does not anticipate that it will incur significant operating
expenses or be required to invest heavily in computer systems improvements
to be Year 2000 compliant. The Company is planning to initiate formal
communications with certain of its significant lab equipment suppliers and
service providers to determine the extent to which the Company's systems may
be vulnerable to embedded technology such as microcontrollers. The Company
currently expects the project to be completed in the third quarter of 1999.
There can be no guarantee that the systems of suppliers or other companies
on which the Company relies will be converted in a timely manner and will not
have a material adverse effect on the Company's systems. To date the Company
has not developed a formal contingency plan. The Company believes it is
taking the steps necessary regarding Year 2000 compliance with respect to
matters within its control. However, no assurance can be given that the
Company's systems will be made Year 2000 compliant in a timely manner or that
the Year 2000 problem will not have a material adverse effect on the
Company's business, prospects, financial condition and results of operations.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 5. Other Information - None
Item 6. Exhibits and Reports - None
SIGNATURE
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.
ENVIROMETRICS, INC.
<TABLE>
<S> <C>
Date: January 20, 1999 Walter H. Elliott, III
_______________________
Walter H. Elliott, III
President and CEO
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 21,658
<SECURITIES> 0
<RECEIVABLES> 474,010
<ALLOWANCES> (4,918)
<INVENTORY> 14,973
<CURRENT-ASSETS> 505,723
<PP&E> 1,089,228
<DEPRECIATION> 976,107
<TOTAL-ASSETS> 1,078,361
<CURRENT-LIABILITIES> 662,261
<BONDS> 0
0
3,513
<COMMON> 3,013
<OTHER-SE> 302,989
<TOTAL-LIABILITY-AND-EQUITY> 1,078,361
<SALES> 579,865
<TOTAL-REVENUES> 600,190
<CGS> 392,080
<TOTAL-COSTS> 392,080
<OTHER-EXPENSES> 54,967
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 26,221
<INCOME-PRETAX> 126,922
<INCOME-TAX> 0
<INCOME-CONTINUING> 126,922
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 126,922
<EPS-PRIMARY> (.046)
<EPS-DILUTED> (.046)
</TABLE>
