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
September 30, 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 October 31, 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)
Sept 30 Dec 31
2000 1999
CURRENT ASSETS
Cash 9,599 52,325
Accounts receivable 549,505 500,015
Allowance for doubtful accts (18,300) (20,000)
Inventories 428,239 377,344
Prepaid expenses 18,031 12,468
----------------------
TOTAL CURRENT ASSETS 987,074 922,152
EQUIPMENT, less allowances of $79,493 38,626 43,073
and $123,891 for depreciation
DEFERRED TAXES 759,674 759,674
----------------------
TOTAL ASSETS 1,785,374 1,724,899
======================
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable 326,162 218,080
Accrued expenses and other current 74,305 91,235
Amount due stockholder 350,000 0
----------------------
TOTAL CURRENT LIABLITIES 750,467 309,315
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) (5,928,171)(5,547,494)
1,042,042 1,422,719
Cost of Common Stock held in Treasu (7,135) (7,135)
----------------------
1,034,907 1,415,584
TOTAL LIABILITIES. PREFERRED STOCK ----------------------
AND SHAREHOLDERS' EQUITY 1,785,374 1,724,899
======================
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SYNERGISTICS, INC.
STATEMENT OF OPERATIONS
PERIOD OF NINE MONTHS ENDED
SEPTEMBER 30, 2000 AND 1999
(UNAUDITED)
2000 1999
Sales, net 1,964,782 2,128,516
Interest income 509 933
----------------------
1,965,291 2,129,449
Costs and expenses:
Cost of sales 1,414,560 1,371,121
Selling, general and administrative 930,918 774,615
Interest expense 1,637 1,924
----------------------
2,347,115 2,147,660
----------------------
Net gain (loss) (381,824) (18,211)
======================
Gain (loss) per share of Common Stock
Assuming no dilution ($0.04) ($0.00)
Assuming full dilution ($0.04) ($0.00)
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SYNERGISTICS, INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
PERIODS OF NINE MONTHS SEPTEMBER 30, 2000 AND 1999
(UNAUDITED)
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) (381,824) (18,211)
Adjustments to reconcile net loss to net cash
(used) provided by operating activities:
Depreciation 13,455 15,075
(Increase) decrease in accounts rec (51,190) 113,977
(Increase) decrease in inventories (50,497) (71,510)
(Increase) decrease in prepaid expenses
and other assets (5,564) 6,148
Increase (decrease) in accounts pay 108,081 2,585
Increase (decrease) in accrued expenses
and other current liabilities (16,179) (30,223)
Increase (decrease) in amounts due
shareholder 350,000 (23,269)
----------------------
TOTAL ADJUSTMENTS 348,106 12,783
----------------------
NET CASH USED BY OPERATING ACTIVITIES (33,718) (5,428)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures 9,008 10,032
Stock issued 0 0
----------------------
NET CASH (USED) BY INVESTING ACTIVITI 9,008 10,032
NET CHANGE IN CASH (42,726) (15,460)
CASH AT BEGINNING OF YEAR 52,325 84,376
----------------------
CASH AT END OF PERIOD 9,599 68,916
======================
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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 September
30, 2000 are not necessarily indicative of the operating results for 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 September 30,
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:
* 9/30/00 12/31/99
Raw Materials 47,106 45,528
Finished Goods & WIP 381,133 331,816
----------------------
Total Inventories 428,239 377,344
======================
*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 Nine Months
Ended September 30
2000 1999
Assuming no dilution
Common Stock Outstanding October 31 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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PART I FINANCIAL INFORMATION
ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
For the nine months ended Sept. 30, 2000, the Company recorded sales of
$1,964,782 compared to $2,128,516 for the nine months ended Sept. 30, 1999.
At Sept. 30,, 2000 the Company had a backlog of $62,013 compared to
$36,081 at Sept. 30, 1999.
Cost of sales as a percentage of sales increased to 72% from 64.4%
for the nine months ended Sept. 30, 2000 and 1999, respectively.
This is due to the increase in the engineering staff & a higher material
content of products sold.
For the period of nine months ended Sept. 30, 2000, selling, general
and administrative expenses increased by $156,303 over the period of
nine months ended Sept. 30, 1999.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are currently no pending legal proceedings to which the Company is
a party or to which any of its property is subject.
ITEM 2. CHANGE IN SECURITIES
There have been no changes in the instruments defining the rights of
holders of any class of securities of the Company during the first
nine months of calendar year 2000.
ITEM 3. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
A Special meeting in lieu of an annual meeting was held on May 25, 2000.
William Tetrick, Dave Longworth, Larry Bishop, Thomas Gehman and Robert
Pogorelc were elected as directors.
A vote was taken to approve Livingston & Haynes, P.C. to continue as auditors
for the coming year.
Both votes were passed and no other votes were taken.
ITEM 4. EXHIBITS AND FORM 8-K
None.
Pursuant to the requirements of the Securities Act of 1934, the
registrant has duly caused this report to be signed on its behalf, the
undersigned thereunto being duly authorized.
DATE_____10/27/2000____________ /S/William M. Tetrick
William M. Tetrick
Chairman of the Board
DATE_____10/27/2000____________ /S/David S. Longworth
David S. Longworth
President and Clerk
