|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: COATES INTERNATIONAL LTD \DE\, 10KSB/A, 1998-10-01 |
Next: PENN STREET FUND INC, DEF 14A, 1998-10-01 |
FORM 10-QSB/A1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1998
OR
[ ]TRANSITION REPORT PURSUANT O SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from _______ to _______
Commission file number 33-94884
COATES INTERNATIONAL, LTD.
(Exact Name of Registrant as Specified in its Charter)
Delaware 22-2925432
(State or other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
Highway 34 & Ridgewood Road, Wall Township, New Jersey 07719
(Address of Principal Executive Office) (Zip Code)
(908) 449-7717
(Registrant's telephone number including area code)
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.
Ye s X No
The number of shares of Registrant's Preferred Stock Series A, $0.001
par value, outstanding as of June 30, 1998, was 6,572,424 shares.
1
<PAGE>
Coates International, Ltd.
(A Development Stage Company)
Balance Sheet
June 30, 1998
(Unaudited)
(Restated)
<TABLE>
<CAPTION>
Assets
Current Assets
<S> <C>
Cash $ 203,555
Restricted cash 112,000
--------------
Total Current Assets 315,555
--------------
Property, Plant and Equipment, - Net of Accumulated Depreciation of $355,771 1,580,448
--------------
Other Assets
Mortgage Loan Costs, Net of Accumulated Amortization of $0 39,461
Deposit 2,500
--------------
Total Assets 1,937,964
==============
Liabilities and Stockholders' Equity
Current Liabilities
Mortgage payable 500,000
Accounts payable and accrued expenses 886,881
Accrued interest payable 106,559
Due to stockholder 5,462
--------------
Total Current Liabilities 1,498,902
--------------
Stockholders' Equity
Preferred stock, Series A, $.001 par value, 14,000,000 shares authorized -
voting, non-cumulative convertible, 6,572,424 shares issued and
outstanding 6,572
Common stock, $.001 par value, 20,000,000 shares authorized - no shares
issued - Additional paid-in capital 10,582,158
Deficit accumulated during the development stage (10,149,668)
--------------
Total Stockholders' Equity 439,062
--------------
$ 1,937,964
Total Liabilities and Stockholders' Equity
==============
</TABLE>
See notes to the condensed financial statements.
2
<PAGE>
Coates International, Ltd.
(A Development Stage Company)
Statements of Operations
<TABLE>
<CAPTION>
Period From
August 31,
1988 (Date of
Inception)
Through
June 30,
1998
----------------
Three Months Ended Six Months Ended
March 31, June 30,
-------------------------------- --------------------------------- ----------------
1998 1997 1998 1997
--------------- --------------- --------------- --------------- ----------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------- --------------- --------------- --------------- ----------------
(Restated) (Restated) (Restated)
--------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
Revenue $ - $ - $ - $ - $ 687,375
--------------- --------------- --------------- --------------- ----------------
Operating Expenses:
Research and development costs 91,808 64,744 184,548 136,191 3,237,770
General and administrative
expenses 123,415 347,151 212,808 572,911 7,156,878
Depreciation expense - 6,419 1,606 19,950 321,276
--------------- --------------- --------------- --------------- ----------------
Total Operating Expenses 215,223 418,314 398,962 729,052 10,715,924
--------------- --------------- --------------- --------------- ----------------
Loss From Operations (215,223) (418,314) (398,962) (729,052) (10,028,549)
--------------- --------------- --------------- --------------- ----------------
Other Income (Expense):
Interest income 298 7 392 13 125,258
Interest expense (3,781) (3,600) (7,381) (7,200) (246,377)
--------------- --------------- --------------- --------------- ----------------
Total Other Income (Expense) (3,483) (3,593) (6,989) (7,187) (121,119)
--------------- --------------- --------------- --------------- ----------------
Net (Loss) $ (218,706) $ (421,907) $ (405,951) $ (736,239) $ (10,149,668)
=============== =============== =============== =============== ================
(Loss) Per Share $ (0.03) $ (0.07) $ (0.06) $ (0.12)
=============== =============== =============== ===============
6,572,424 5,963,600 6,571,757 5,963,600
Weighted Average Number of Shares
Outstanding
=============== =============== =============== ===============
</TABLE>
See notes to the condensed financial statements.
3
<PAGE>
Coates International, Ltd.
(A Development Stage Company)
Statements of Cash Flows
<TABLE>
<CAPTION>
Period From
August 31,
1988 (Date of
Inception)
Through
June 30,
1998
-----------------
Six Months Ended
June 30,
--------------------------------- -----------------
1998 1997
--------------- --------------- -----------------
(Unaudited) (Unaudited) (Unaudited)
--------------- --------------- -----------------
<S> <C> <C> <C>
Cash Flows From Operating Activities $ (422,170) $ (561,363) $ (8,413,344)
--------------- --------------- -----------------
Cash Flows From Investing Activities - - (1,621,710)
--------------- --------------- -----------------
Cash Flows From Financing Activities
Proceeds from mortgage payable 460,539 - 460,539
Repayment of mortgage payable (160,000) - (160,000)
Proceeds of additional paid-in capital 168,037 550,347 2,475,475
Proceeds from issuance of stock 129,000 - 7,467,148
Payment for treasury stock - - (30,000)
Proceeds from (repayment of) stockholder loans (7,100) 13,638 25,447
--------------- --------------- -----------------
Net Cash Provided by Financing Activities 590,476 563,985 10,238,609
--------------- --------------- -----------------
Net Increase in Cash 168,306 2,622 203,555
Cash - Beginning of Periods 35,249 13,641 -
--------------- --------------- -----------------
Cash - End of Periods $ 203,555 $ 16,263 $ 203,555
=============== =============== =================
</TABLE>
See notes to the condensed financial statements.
4
<PAGE>
Coates International, Ltd.
(A Development Stage Company)
Notes to the Condensed Financial Statements
BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Item 310 of Regulation
S-B. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three months and six months ended
June 30, 1998 and 1997 are not necessarily indicative of the results that
may be expected for the years ended December 31, 1998 and 1997,
respectively. The unaudited condensed financial statements should be read in
conjunction with the consolidated financial statements and footnotes thereto
included in the Company's annual report on Form 10-K for the year ended
December 31, 1997.
RELATED PARTY TRANSACTION
Subcontract Labor - The Company subcontracts its project expense (payroll,
insurance and supplies) from an entity in which George J. Coates is the sole
stockholder. During the six months ended June 30, 1998 and 1997, $48,885 and
$107,000, respectively, were paid for these services.
COMMITMENTS AND CONTINGENCIES
The Company is a defendant in various lawsuits incident to the ordinary
course of business which are not possible to determine the probable outcome
or the amount of liability, if any, under these lawsuits. However, in the
opinion of management, the disposition of these lawsuits will not have a
material adverse effect on the Company's financial position, results of
operations, or cash flows.
MORTGAGE PAYABLE
The Company acquired a new mortgage during June 1998. The old mortgage of
$160,000 was settled from the proceeds of the new mortgage. Terms of the new
mortgage are such that the principal amount will be due in one year, monthly
interest payments only will be made at 18% per annum, and the mortgage is
secured by a first mortgage on the land and buildings of the Company with a
net book value at June 30, 1998 of $1,552,875. The Company's principal
stockholder and Chief Executive Officer has also personally guaranteed the
mortgage.
5
<PAGE>
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.
Date: October 1, 1998 COATES INTERNATIONAL, LTD.
By: s/ George J. Coates
George J. Coates
Chief Executive and Chief Financial Officer
coat10q.698
6
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
JUNE 30, 1998 FINANCIAL STATEMENTS OF COATES INTERNATIONAL, LTD AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000948426
<NAME> Coates International, Ltd.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Dec-31-1998
<PERIOD-START> Apr-01-1998
<PERIOD-END> Jun-30-1998
<CASH> 315,555
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 315,555
<PP&E> 1,936,219
<DEPRECIATION> 355,771
<TOTAL-ASSETS> 1,937,964
<CURRENT-LIABILITIES> 1,498,902
<BONDS> 500,000
0
6,572
<COMMON> 0
<OTHER-SE> 432,490
<TOTAL-LIABILITY-AND-EQUITY> 1,937,964
<SALES> 0
<TOTAL-REVENUES> 392
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 398,962
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 7,381
<INCOME-PRETAX> (405,951)
<INCOME-TAX> 0
<INCOME-CONTINUING> (405,951)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (405,951)
<EPS-PRIMARY> (0.06)
<EPS-DILUTED> (0.06)
</TABLE>
|
|