FORM 10-QSB-QUARTERLY REPORT UNDER SECTION 13 0R 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarterly or Transitional Report
U.S. Securities and Exchange Commission
Washington, D.C. 20549
(Mark One)
[XX] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For Quarterly period ended April 30, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
ACT OF 1934
For the transition period from to
Commission File Number: 0-25024
TITAN TECHNOLOGIES, INC.
(Exact name of small business issuer as specified in its charter)
NEW MEXICO 85-0388759
(State or other jurisdiction (I.R.S. Identification No.)
of incorporation or organization)
3206 Candelaria Road NE. Albuquerque, NM 87107
(Address of principal executive offices)
(505) 884-0272
(Issuer's telephone number)
N/A
(Former name, former address and former three-months, 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 Securities 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 [ ]
The number of shares of the registrant's common stock outstanding as of
June 4, 1996, was: No Par Value Common 18,236,411
Transitional Small Business Format: Yes [ ] No [ X ]
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
Titan Technologies, Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEET
April 30, 1996
UNAUDITED
ASSETS
Current Assets
Cash ...................................................... $ 366,087
Accounts receivable - stockholder ......................... 609
-----------
Total Current Assets ................................. 366,696
Property and Equipment, at cost
Furniture and fixtures .................................... 5,737
Machinery ................................................. 2,738
-----------
8,475
Less accumulated depreciation ............................. (6,409)
-----------
Net property and equipment ........................... 2,066
Other assets
Trade secrets, net of accumulated
amortization of $52,864 .............................. 79,502
-----------
$ 448,264
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable .......................................... $ --
Current maturities of notes payable, to stockholders ...... 9,105
Other accrued liabilities ................................. 157,654
-----------
Total Current Liabilities ............................ 166,759
Notes payable to stockholders, net of current maturities .... 73,228
Stockholders' Equity
Common stock - no par value; authorized,
50,000,000 shares; issued and
outstanding, 18,236,411 shares ............................ 1,160,694
Accumulated deficit ......................................... (952,417)
-----------
208,277
-----------
$ 448,264
===========
Titan Technologies, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended April 30
UNAUDITED
1996 1995
------ ------
REVENUES
Plant licensing ......................... $ -- $ --
Other income ............................ 4,965 3,837
------------ ------------
4,965 3,837
COSTS AND EXPENSES
General and administrative .............. 83,724 70,691
Outside services ........................ 10,246 9,043
Depreciation and amortization ........... 1,456 3,795
Interest ................................ 1,608 1,392
------------ ------------
97,034 84,921
------------ ------------
Income (loss) before income taxes ....... (92,069) (81,084)
------------ ------------
Provision for income taxes .............. -- --
------------ ------------
Net income (loss) ...................... $ (92,069) $ (81,084)
============ ============
Weighted average common shares
outstanding (Note 2) .................. 17,989,497 17,125,300
============ ============
Net income (loss) per common share ...... $ 0.00 $ 0.00
============ ============
Titan Technologies, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Nine Months Ended April 30
UNAUDITED
1996 1995
------ ------
REVENUES
Plant licensing .......................... $ -- $ 302,500
Other income ............................. 15,420 12,507
------------ ------------
15,420 315,007
COSTS AND EXPENSES
General and administrative ............... 231,236 196,151
Outside services ......................... 34,959 19,992
Depreciation and amortization ............ 10,095 11,399
Interest ................................. 4,894 5,384
------------ ------------
281,184 232,926
------------ ------------
Earnings (loss) before income taxes ...... (265,764) 82,081
Provision for income taxes ............... -- 48,390
------------ ------------
Net earnings (loss) ...................... $ (265,764) $ 33,691
============ ============
Weighted average common shares
outstanding (Note 2) ................... 17,989,497 17,125,300
============ ============
Net earnings
(loss) per common share ................ $ (0.02) $ 0.00
============ ============
Titan Technologies, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended April 30
UNAUDITED
1996 1995
------ ------
Cash flows from operating activities
Cash received from licensing ...................... $ -- $ 302,500
Interest received ................................. 15,420 12,507
Cash paid for operating expenses .................. (263,039) (216,230)
Interest paid ..................................... (4,894) (4,634)
Cash paid for income taxes ........................ (48,390)
--------- ---------
Net cash provided by (used in)
operating activities .............................. (252,513) 45,753
Cash flows from investing activities
Purchase of furniture and fixtures ................ -- (984)
Cash flows from Financing Activities
Payments on borrowing ............................. (893) (3,366)
Proceeds from issuance of common stock ............ 450,000 --
--------- ---------
449,107 (3,366)
--------- ---------
Net increase (decrease) in cash ................... 196,594 41,403
Cash at beginning of year ......................... 169,493 203,568
--------- ---------
Cash at end of period ............................. $ 366,087 $ 244,971
========= =========
Reconciliation of Net earnings (loss) to
Cash Provided by (used in) Operating Activities
Net earnings (loss) ............................... $(265,764) $ 33,691
Adjustments
Depreciation and amortization ..................... 10,095 11,399
Changes in assets and liabilities
(Decrease) Increase
in accounts payable ............................. (1,398) (217)
Increase in interest payable ...................... 3,728 750
Increase in other liabilities ..................... 826 130
--------- ---------
Net cash provided by (used in)
operating activities ............................ $(252,513) $ 45,753
========= =========
Titan Technologies, Inc. and Subsidiaries
NOTES TO FINANCIAL STATEMENTS
For the Nine Months Ended April 30, 1996
1) NOTES TO FINANCIAL STATEMENTS
The balance sheet at April 30, 1996, the statement of operations for the three
and nine month periods ended April 30, 1996 and 1995 and the statement of cash
flow for the nine months ended April 30, 1996 and 1995 have been prepared
without audit. In the opinion of management, all adjustments, including normal
recurring adjustments necessary to present fairly the financial position,
results of operations and cash flows, have been made. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted. It is suggested that these financial statements be read in conjunction
with the Company's audited financial statements at July 31, 1995. The results of
operations for the nine months ended April 30, 1996 are not necessarily
indicative of operating results for the full year.
2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Net (loss) income per common share has been computed based on the weighted
average number of shares outstanding during the periods ended April 30, 1996 and
1995.
3. ISSUANCE OF COMMON STOCK
On October 3, 1995 the company sold 1,111,111 shares of common stock to Wolfgang
Reiger Gembh, for which it received $450,000.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Results of Operations
During the nine months ended April 30, 1996, the Company had no licensing
revenue. In the same period of the prior fiscal year $302,500 of revenue was
recognized. During fiscal 1995, revenue was deferred until plant operation was
effected. At July 31, 1995, the Company had received all sums contracted in the
construction management and technology licensing of two tire recycling plants
built in Korea. Once operations have begun, the Company will receive a 3.75%
royalty on product sales from one of the Korean plants. Further, management is
negotiating several large contracts which could create activity for the next
several years. Consummation of these negotiations is anticipated when the Korean
projects begin continuing commercial operations. As a result of these activities
by management general and administrative expenses increased $35,085 to $231,236
and outside services increased $14,967 to $34,959 for the nine months ended
April 30, 1996 as compared to the nine months ended April 30, 1995 The Company
anticipates revenues in the amount of $1,500,000 from the sale of a tire
recycling plant to be built in Austria. This amount will be paid to a foreign
sales corporation the Company is in the processing for forming to achieve the
benefit of deferred taxation of the proceeds from its foreign sales and
operations.
Financial Condition
The Company's liquidity increased in the nine months ended April 30,1996 as cash
increased by $196,594 since July 31, 1995. Although operations used $ 252,513
compared to the same period of the prior year in which operations provided $
45,753, $450,000 was provided by the sale of 1,111,111 shares of common stock.
Based on the results of fiscal 1995 and its prospects for 1996, management
considers the Company's liquidity position adequate with funds sufficient to
meet its operating needs.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is involved as defendant in an action resulting from an automobile
accident involving a company employee in 1994 on a theory of vicarious
liability. It is the opinion of the Company's counsel that the accident in
question occurred outside the scope of that person's employment and that the
litigation will not result in any liability or significant expense for the
Company. Other than that, management knows of no legal proceedings or
unsatisfied judgments which have not been provided for in any court or agency to
which the Company or any of its officers or directors are or may be a party.
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS IN 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) There are no exhibits required by Item 601 of Regulation S-K.
(b) Reports on Form 8-K. State whether any reports on Form 8-K have been
filed during the quarter for which this report is filed, listing the items
reported, any financial statements filed, and the dates of any such reports.
NONE
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
TITAN TECHNOLOGIES, INC. AND SUBSIDIARIES
June 4, 1996 Ronald L. Wilder
-------------------------------------------------------
Ronald L. Wilder, President and Chief Executive Officer
June 4, 1996 Bruce R. Clark
--------------------------------------------------------
Bruce R. Clark, General Counsel, Chief Financial Officer
and Chief Accounting Officer
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