SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended Commission File Number O-6421
March 31, 2000
SYNERGISTICS, INC.
MASSACHUSETTS 04-2283157
(State of Incorporation) (IRS Employer ID Number)
9 Tech Circle, Natick, MA 01760
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number,
including area code (508)655-1340
Securities registered pursuant to Section 12(g) of the Act.
Common Stock $0.01 Par Value
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 preceeding 12 months (or 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
There is no public market for, and thus no aggregate market value of,
the registrants securities.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the last practicable date.
Class Outstanding at April 30, 2000
Common Stock, one cent par value 9,632,561
NO DOCUMENTS INCORPORATED BY REFERENCE
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SYNERGISTICS, INC.
BALANCE SHEET
ASSETS
(UNAUDITED)
Mar 31 Dec 31
2000 1999
CURRENT ASSETS
Cash 63,454 52,325
Accounts receivable 499,420 500,015
Allowance for doubtful accts (14,898) (20,000)
Inventories 388,277 377,344
Prepaid expenses 22,484 12,468
------- -------
TOTAL CURRENT ASSETS 958,737 922,152
EQUIPMENT, less allowances of $70,523 40,837 43,073
and $123,891 for depreciation
DEFERRED TAXES 759,674 759,674
--------- ---------
TOTAL ASSETS 1,759,248 1,724,899
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable 301,404 218,080
Accrued expenses and other current liabil 45,543 91,235
Amount due stockholder 150,000 0
------- -------
TOTAL CURRENT LIABLITIES 496,947 309,315
STOCKHOLDERS' EQUITY
Common Stock ( 9,632,561 shares issued
including shares held in Treasury) 96,326 96,326
Additional paid-in capital 6,873,887 6,873,887
Retained earnings (deficit) (5,700,777) (5,547,494)
--------- ---------
1,269,436 1,422,719
Cost of Common Stock held in Treasury (7,135) (7,135)
--------- ---------
1,262,301 1,415,584
TOTAL LIABILITIES. PREFERRED STOCK --------- ---------
AND SHAREHOLDERS' EQUITY 1,759,248 1,724,899
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SYNERGISTICS, INC.
STATEMENT OF OPERATIONS
PERIOD OF THREE MONTHS ENDED
MARCH 31, 2000 AND 1999
(UNAUDITED)
2000 1999
Sales, net 610,976 651,259
Interest income 147 441
------- -------
611,123 651,700
Costs and expenses:
Cost of sales 459,679 424,800
Selling, general and administrative expen 305,203 229,373
Interest expense 273 211
------- -------
765,155 654,384
------- -------
Net gain (loss) (154,032) (2,684)
Gain (loss) per share of Common Stock
Assuming no dilution ($0.02) ($0.00)
Assuming full dilution ($0.02) ($0.00)
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SYNERGISTICS, INC.
STATEMENT OF CASH FLOWS
PERIODS OF THREE MONTHS MARCH 31, 2000 AND 1999
(UNAUDITED)
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) (154,032) (2,684)
Adjustments to reconcile net loss to net cash
(used) provided by operating activities:
Depreciation 4,485 5,025
(Increase) decrease in accounts receivabl 595 149,775
(Increase) decrease in inventories (10,933) (61,103)
(Increase) decrease in prepaid expenses
and other assets (15,119) (2,777)
Increase (decrease) in accounts payable 83,323 10,993
Increase (decrease) in accrued expenses
and other current liabilities (44,941) (41,250)
Increase (decrease) in amounts due
shareholder 150,000 (12,692)
------- ------
TOTAL ADJUSTMENTS 167,410 47,971
------- ------
NET CASH PROVIDED BY OPERATING ACTIVITIES 13,378 45,287
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures 2,249 1,717
Stock issued 0 0
------- ------
NET CASH (USED) BY INVESTING ACTIVITIES 2,249 1,717
------- ------
NET CHANGE IN CASH 11,129 43,570
CASH AT BEGINNING OF YEAR 52,325 84,376
------ -------
CASH AT END OF PERIOD 63,454 127,946
====== =======
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SYNERGISTICS, INC.
SELECTED INFORMATION
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
financial statements and notes thereto included in the Company's Annual
Report Form 10-K. The results of operations for the period ended March 31,
2000 are not necessarily indicative of the operating results of the
full year.
Basis of Presentation
It is the opinion of management that all significant adjustments which are
routine recurring adjustments reflected in the accompanying March 31,
financial statements which are necessary to present fairly such interim
financial statements.
Accounting Policy for Revenues and Costs of Sales
Revenues are recognized at the time of product shipment. Cost of sales
is computed using the "gross profit" method based upon historical
results of operations. Other cost, included in costs of sales, are
based upon such costs as actually incurred.
Inventories
Inventories are comprised of the following:
* 3/31/00 12/31/99
Raw Materials 48,594 45,528
Finished Goods & WIP 339,683 331,816
------- -------
Total Inventories 388,277 377,344
======= =======
*Allocation Based Upon Estimate
(Loss) per Common Share
The weighted average number of shares of common stock outstanding used
in computing (loss) per share does not include the effect of the conversion
of the stock options as the exercise price exceeds the current market value
of the security.
The following schedule sets forth the number of shares used in computing
earnings per share:
Period of Three Months
Ended March 31
2000 1999
Assuming no dilution
Common Stock Outstanding April 30, 9,632,561 9,632,561
Shares held in Treasury 16,445 16,445
Total Shares Authorized 12,000,000 12,000,000
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 63,454
<SECURITIES> 0
<RECEIVABLES> 499,420
<ALLOWANCES> 14,898
<INVENTORY> 388,277
<CURRENT-ASSETS> 958,737
<PP&E> 111,360
<DEPRECIATION> 70,523
<TOTAL-ASSETS> 1,759,248
<CURRENT-LIABILITIES> 496,947
<BONDS> 0
0
0
<COMMON> 96,326
<OTHER-SE> 1,165,975
<TOTAL-LIABILITY-AND-EQUITY> 1,759,248
<SALES> 610,976
<TOTAL-REVENUES> 611,123
<CGS> 459,679
<TOTAL-COSTS> 459,679
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 273
<INCOME-PRETAX> (154,032)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (154,032)
<EPS-BASIC> (.02)
<EPS-DILUTED> (.02)
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