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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES |
EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2006
[ ] | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT |
For the transition period from to
Commission File Number 2-5916
CHASE GENERAL CORPORATION
(Exact name of small business issuer as specified in its charter)
Missouri | 36-2667734 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
1307 South 59th, St. Joseph, Missouri 64507
(Address of principal executive offices, Zip Code)
(816) 279-1625
(Issuer’s telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section 12, 13 or 15(d) of the 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 [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes [ ] No [X]
As of October 31, 2006, there were 969,834 shares of common stock, $1 par value, issued and outstanding.
Transitional Small Business Disclosure Format Yes [ ] No [X]
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Index
Form 10-QSB for the Quarter Ended September 30, 2006
PART I -FINANCIAL INFORMATION | ||||
Condensed Consolidated Balance Sheets at September 30, 2006 (Unaudited) | 3 | |||
5 | ||||
6 | ||||
Notes to Condensed Consolidated Financial Statements (Unaudited) | 7 | |||
Item 2.Management’s Discussion and Analysis or Plan of Operation | 10 | |||
Item 3.Controls and Procedures | 13 | |||
PART II -OTHER INFORMATION | ||||
Item 1.Legal proceedings | 14 | |||
Item 2. Unregistered Shares of Equity Securities and Use of Proceeds - None | ||||
14 | ||||
Item 4. Submission of Matters to a Vote of Security Holders - None | ||||
Item 5. Other Information - None | ||||
Item 6.Exhibits | 14 | |||
14 | ||||
Exhibit 31 - | Certification of Chief Executive Officer and Treasurer Pursuant to Section 302 of the Sarbanes Oxley Act of 2002 | 15 | ||
Exhibit 32 - | Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | 17 |
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CHASE GENERAL CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
September 30, 2006 | June 30, 2006 | |||||
(Unaudited) | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | $ | 24,500 | $ | 26,558 | ||
Trade receivables, net | 209,003 | 111,217 | ||||
Advance to shareholder | — | 9,000 | ||||
Income tax refund claims receivable | 29,197 | 29,197 | ||||
Inventories: | ||||||
Finished goods | 323,094 | 71,631 | ||||
Goods in process | 8,440 | 4,515 | ||||
Raw materials | 71,831 | 37,202 | ||||
Packaging materials | 105,537 | 80,675 | ||||
Prepaid expenses | 5,527 | 12,446 | ||||
Deferred income taxes | 29,275 | 16,051 | ||||
Total current assets | 806,404 | 398,492 | ||||
PROPERTY AND EQUIPMENT - NET | 334,900 | 349,301 | ||||
TOTAL ASSETS | $ | 1,141,304 | $ | 747,793 | ||
The accompanying notes are an integral part of these
condensed consolidated financial statements.
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CHASE GENERAL CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS’ EQUITY
September 30, 2006 | June 30, 2006 | |||||||
(Unaudited) | ||||||||
CURRENT LIABILITIES | ||||||||
Note payable - bank | $ | 175,000 | $ | — | ||||
Current maturities of forgivable loan - bank | 5,000 | 5,000 | ||||||
Accounts payable | 295,410 | 61,515 | ||||||
Accrued expenses | 34,708 | 17,070 | ||||||
Deferred income | 1,299 | 1,299 | ||||||
Total current liabilities | 511,417 | 84,884 | ||||||
LONG-TERM LIABILITIES | ||||||||
Deferred income | 2,727 | 3,052 | ||||||
Deferred income taxes | 18,698 | 18,953 | ||||||
Forgivable loan - bank, less current maturities | 15,000 | 15,000 | ||||||
Total long-term liabilities | 36,425 | 37,005 | ||||||
Total liabilities | 547,842 | 121,889 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Capital stock issued and outstanding: | ||||||||
Prior cumulative preferred stock, $5 par value: | ||||||||
Series A (liquidation preference $1,957,500 and $1,950,000 respectively) | 500,000 | 500,000 | ||||||
Series B (liquidation preference $1,912,500 and $1,905,000 respectively) | 500,000 | 500,000 | ||||||
Cumulative preferred stock, $20 par value | ||||||||
Series A (liquidation preference $4,507,038 and $4,492,405 respectively) | 1,170,660 | 1,170,660 | ||||||
Series B (liquidation preference $734,506 and $732,121 respectively) | 190,780 | 190,780 | ||||||
Common stock, $1 par value | 969,834 | 969,834 | ||||||
Paid-in capital in excess of par | 3,134,722 | 3,134,722 | ||||||
Accumulated deficit | (5,872,534 | ) | (5,840,092 | ) | ||||
Total stockholders’ equity | 593,462 | 625,904 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,141,304 | $ | 747,793 | ||||
The accompanying notes are an integral part of these
condensed consolidated financial statements.
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CHASE GENERAL CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30 | ||||||||
2006 | 2005 | |||||||
NET SALES | $ | 459,499 | $ | 422,949 | ||||
COST OF SALES | 333,409 | 370,000 | ||||||
Gross profit on sales | 126,090 | 52,949 | ||||||
OPERATING EXPENSES | ||||||||
Selling expense | 54,413 | 55,085 | ||||||
General and administrative expenses | 117,350 | 89,332 | ||||||
Total operating expenses | 171,763 | 144,417 | ||||||
Loss from operations | (45,673 | ) | (91,468 | ) | ||||
OTHER INCOME (EXPENSE) | (248 | ) | (166 | ) | ||||
Net loss before income taxes | (45,921 | ) | (91,634 | ) | ||||
CREDIT FOR INCOME TAXES | (13,479 | ) | (21,775 | ) | ||||
NET LOSS | (32,442 | ) | (69,859 | ) | ||||
Preferred dividends | (32,018 | ) | (32,018 | ) | ||||
Net loss applicable to common stockholders | $ | (64,460 | ) | $ | (101,877 | ) | ||
NET LOSS PER SHARE OF COMMON STOCK - BASIC AND DILUTED | $ | (.07 | ) | $ | (.11 | ) | ||
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | 969,834 | 969,834 | ||||||
The accompanying notes are an integral part of these
condensed consolidated financial statements.
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CHASE GENERAL CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended September 30 | ||||||||
2006 | 2005 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (32,442 | ) | $ | (69,859 | ) | ||
Adjustments to reconcile net loss to net cash (used in) operating activities: | ||||||||
Depreciation and amortization | 14,401 | 15,932 | ||||||
Provision for bad debts | 300 | 528 | ||||||
Deferred income amortization | (325 | ) | — | |||||
Deferred income taxes | (13,479 | ) | — | |||||
Effects of changes in operating assets and liabilities: | ||||||||
Trade receivables | (98,086 | ) | 15,999 | |||||
Income tax refund claims receivable | — | (21,775 | ) | |||||
Inventories | (314,879 | ) | (244,255 | ) | ||||
Prepaid expenses | 6,919 | (3,743 | ) | |||||
Accounts payable | 233,895 | 165,358 | ||||||
Accrued expenses | 17,638 | 13,497 | ||||||
Net cash (used in) operating activities | (186,058 | ) | (128,318 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Decrease in advance to officer | 9,000 | — | ||||||
Purchases of property and equipment | — | (17,211 | ) | |||||
Net cash provided by (used in) investing activities | 9,000 | (17,211 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Proceeds from note payable - bank | 175,000 | 125,000 | ||||||
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (2,058 | ) | (20,529 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 26,558 | 60,805 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 24,500 | $ | 40,276 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||||||||
Cash payments for: | ||||||||
Income taxes | $ | — | $ | — | ||||
Interest | $ | 925 | $ | 201 | ||||
The accompanying notes are an integral part of these
condensed consolidated financial statements.
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CHASE GENERAL CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1 - GENERAL
The condensed consolidated balance sheet of Chase General Corporation (“Chase” or “we”, “us”, or “our”) at June 30, 2006 has been taken from audited consolidated financial statements at that date and condensed. The condensed consolidated financial statements as of and for the three months ended September 30, 2006 and for the three months ended September 30, 2005 are unaudited and reflect all normal and recurring accruals and adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods presented in this quarterly report. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-KSB for the year ended June 30, 2006. The results of operations and cash flows for the three months ended September 30, 2006 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2007. Where appropriate, items within the condensed consolidated financial statements have been reclassified from the previous periods’ presentation.
NOTE 2 - NET LOSS PER SHARE
The loss per share was computed on the weighted average of outstanding common shares as follows:
Three Months Ended September 30 | ||||||||
2006 | 2005 | |||||||
Net loss | $ | (32,442 | ) | $ | (69,859 | ) | ||
Preferred dividend requirements: | ||||||||
6% Prior Cumulative Preferred, $5 par value | 15,000 | 15,000 | ||||||
5% Convertible Cumulative Preferred, $20 par value | 17,018 | 17,018 | ||||||
Total dividend requirements | 32,018 | 32,018 | ||||||
Net loss common stockholders | $ | (64,460 | ) | $ | (101,877 | ) | ||
Weighted average of outstanding common shares | 969,834 | 969,834 | ||||||
Net loss per share - basic | $ | (.07 | ) | $ | (.11 | ) | ||
No computation was made on common stock equivalents outstanding because loss per share would be anti-dilutive.
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CHASE GENERAL CORPORATION AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 2 - NET LOSS PER SHARE(CONTINUED)
Cumulative Preferred Stock dividends in arrears at September 30, 2006 and 2005, totaled $6,700,104 and $6,572,032, respectively. Total dividends in arrears, on a per share basis, consist of the following at September 30:
Three Months Ended September 30 | ||||||
2006 | 2005 | |||||
6% Convertible | ||||||
Series A | $ | 14 | $ | 14 | ||
Series B | 14 | 14 | ||||
5% Convertible | ||||||
Series A | 57 | 56 | ||||
Series B | 57 | 56 |
Six percent convertible prior cumulative preferred stock may, upon thirty days prior notice, be redeemed by the Corporation at $5.25 a share plus unpaid accrued dividends to date of redemption. In the event of voluntary liquidation, holders of this stock are entitled to receive $5.25 per share plus accrued dividends. It may be exchanged for common stock at the option of the shareholders in the ratio of 4 common shares for one share of Series A and 3.75 common shares for one share of Series B.
The Company has the privilege of redemption of 5% convertible cumulative preferred stock at $21.00 a share plus unpaid accrued dividends. In the event of voluntary or involuntary liquidation, holders of this stock are entitled to receive $20.00 a share plus unpaid accrued dividends. It may be exchanged for common stock at the option of the shareholders, in the ratio of 3.795 common shares for one of preferred.
NOTE 3 - FORGIVABLE LOAN AND DEFERRED INCOME
During 2004, the Company received a $25,000 economic development incentive from Buchanan County, which is a five year forgivable loan at a rate of $5,000 per year. The Nodaway Valley Bank has established an Irrevocable Standby Letter of Credit in the amount of $25,000 as collateral for this loan, with a maturity date of December 31, 2009. The Company has met the criteria of occupying a 20,000 square foot building and the criteria of creating a minimum of two new full-time equivalent jobs during the first year of operation in the new facility. In addition, the Company maintained 19 existing jobs the year thereafter and will be required to do so until the five year term has expired. Once the Company is no longer legally entitled to return the monies, the liability will be reclassified as deferred revenue and amortized into income over the life on the lease term of the new facility. As of September 30, 2006, $5,000 was reclassified to deferred revenue and $974 has been amortized into income.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 4 - NOTE PAYABLE - BANK
Effective June 3, 2006 the Company has a $250,000 line-of-credit agreement with an original maturity date of December 31, 2006. The line-of-credit is collateralized by certain equipment and bears interest at an annual rate of 8%. At September 30, 2006 the outstanding balance on the line-of-credit was $175,000.
NOTE 5 - LEGAL PROCEEDINGS
On December 16, 2005, a lawsuit was filed by 3600 S. Leonard Road, LLC., (the Plaintiff) against the Company in the Circuit Court of Buchanan County, Missouri. The Plaintiff alleges that the Company failed to honor certain sections of a lease agreement, for its former facility, entered into between the Plaintiff, as owner and landlord of the premises subject to the lease agreement, and the Company, as tenant to the premises. The Plaintiff is seeking damages in an amount in excess of $200,000. The Company has filed a response with the Circuit Court denying all material allegations made by the Plaintiff. A status review hearing was held March 15, 2006 in the Circuit court where upon the Judges ruled for the parties to meet again to a scheduling order. The Company is expecting to go to trial in December 2006. The Company believes the claim is without merit and intends to contest it vigorously, however, the outcome of this lawsuit cannot be predicted at this time.
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CHASE GENERAL CORPORATION AND SUBSIDIARY
ITEM 2. - MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This Management’s Discussion and Analysis or Plan of Operation section and other parts of this Report contain forward-looking statements that involve risks and uncertainties. The Company’s actual results and the timing of certain events may differ significantly from the results and timing discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed or referred to in this report and in Item 6 of the Annual Report on Form 10-KSB for the year ended June 30, 2006.
The following discussion is intended to provide a better understanding of the significant changes in trends relating to Chase’s financial condition and results of operations. Management’s Discussion and Analysis should be read in conjunction with the accompanying condensed consolidated financial statements and notes thereto.
OVERVIEW
Chase General is a holding company for its wholly-owned subsidiary, Dye Candy Company. This subsidiary is the main operating Company that is engaged in the manufacture of confectionery products which are sold primarily to wholesale houses, grocery accounts, vendors, and repackers. The subsidiary (Company) operates two divisions, Chase Candy Company and Poe Candy Company, which share a common labor force and utilize the same basic equipment and raw materials. Therefore, segment reporting for the two divisions is not maintained by Management.
RESULTS OF OPERATIONS
The following table sets forth certain items as a percentage of net sales and revenues for the periods presented:
Three Months Ended | ||||
2006 | 2005 | |||
Net sales | 100% | 100% | ||
Cost of sales | 73 | 87 | ||
Gross profit | 27 | 13 | ||
Operating expenses | 37 | 35 | ||
Loss from operations | (10) | (22) | ||
Net loss before income taxes | (10) | (22) | ||
Credit for income taxes | (3) | (5) | ||
Net loss | (7)% | (17)% | ||
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CHASE GENERAL CORPORATION AND SUBSIDIARY
ITEM 2. - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (CONTINUED)
NET SALES
Net sales increased $36,550 or 9% for the three months ended September 30, 2006 to $459,499 as compared to $422,949 for the three months ended September 30, 2005. Gross sales for Chase Candy Company decreased $39,027 to $366,637 for the three months ended September 30, 2006 compared to $405,664 for 2005. Gross sales for Poe Candy Company increased $75,067 to $101,837 for the three months ended September 30, 2006 compared to $26,770 for 2005.
The overall increase in net sales for the three month period ended September 30, 2006 is primarily due to the fact the Government would not allow new crop peanuts to be shipped to wholesalers or manufacturers, such as Chase, until the current year’s crop of peanuts had been used. Therefore, production for these sales was not held up for arrival of new crop peanuts. In addition, a customer of Poe Candy ordered earlier this year so that the sale occurred in the first quarter of the current year which represented the majority of the increase in Poe sales. The weather was also cooperative this year so that sales could be shipped when ready and not held due to high temperatures. Even though the Poe sales were accelerated into the first quarter, the second quarter 2006 sales are not expected to be as high as they were in the prior year quarter ended December 31, 2005. Therefore, the Company is not expecting overall sales for the fiscal year ended June 30, 2007 to grow as reflected in this first quarter. The Chase sales decrease of $39,027 was due to a customer ordering the 12 count packaging product rather than 24 count packaging product.
COST OF SALES
The cost of sales decreased $36,591 to $333,409 decreasing to 73% of related revenues for the three months ended September 30, 2006, compared to $370,000 or 87% of related revenues for the three months ended September 30, 2005.
This dollar decrease in cost of sales included 18% or $36,444 in direct materials and labor costs for the three months ended September 30, 2006 to $165,906 as compared to $202,350 for the three months ended September 30, 2005. The Company was able to build finished goods inventory for three months ended September 30, 2006 to $323,094 or 451% increase above June 30, 2006 finished goods inventory of $71,631. This is the height of the Company’s busy season which also explains having raw materials inventory of $71,831 and packaging materials inventory of $105,537 or 150% higher than the June 30, 2006 inventories of $37,202 raw materials and $80,675 packaging.
SELLING EXPENSES
Selling expenses for the three months ended September 30, 2006 decreased $672 to $54,413, and decreased to 12% of sales, compared to $55,085 or 13% of sales for the three months ended September 30, 2005. The decrease in selling expenses is due to lower travel and vehicle expenses for the period. Travel and vehicle expense decreased 31% to $9,873 for the three months ended September 30, 2006 from $14,377 for the three months ended September 30, 2005.
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CHASE GENERAL CORPORATION AND SUBSIDIARY
ITEM 2. - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (CONTINUED)
GENERAL AND ADMINISTRATIVE EXPENSES
General and administrative expenses for the three months ended September 30, 2006 increased $28,018 to $117,350, and increased to 25% of sales, compared to $89,332 or 22% of sales for the three months ended September 30, 2005. The increased costs are due to increased professional fees of $27,450 or 165% for the three months ended September 30, 2006 to $69,888 as compared to $42,438 for the three months ended September 30, 2005.
OTHER INCOME (EXPENSE)
Other income and expense increased by $82 for the three months ended September 30, 2006 to $(248), compared to $(166) for the three months ended September 30, 2005. This increase was due to increase in interest expense.
CREDIT FOR INCOME TAXES
The Company recorded a tax benefit for the three months ended September 30, 2006 of $13,479 as compared to the tax benefit of $21,775 for the three months ended September 30, 2005.
NET LOSS
The Company reported a net loss for the quarter ended September 30, 2006 of $32,442, compared to a net loss of $69,859 for the quarter ended September 30, 2005. This decrease of $37,417 is explained above.
PREFERRED DIVIDENDS
These amounts reflect additional preferred stock dividends in arrears for the three months ended September 30, 2006 and 2005, respectively, on the Company’s Series A and Series B $5 par value preferred stock and its Series A and Series B $20 par value preferred stock.
NET LOSS APPLICABLE TO COMMON STOCKHOLDERS
Net loss applicable to common stockholders for the three months ended September 30, 2006 was $(64,460) which is a decrease in net loss of $37,417 as compared to the three months ended September 30, 2005. The decrease is explained above.
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CHASE GENERAL CORPORATION AND SUBSIDIARY
ITEM 2. - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES
During the quarter ended September 30, 2006, the Company obtained bank financing totaling $175,000, which was used to fund operations as well as the repayment of the advance to officer of $9,000.
Cash and cash equivalents decreased $2,058 to $24,500 at September 30, 2006 from $26,558 at June 30, 2006. To date, there are no material commitments by the Company for capital expenditures. At September 30, 2006, the Company’s accumulated deficit was $5,872,534, compared to accumulated deficit of $5,840,092 as of June 30, 2006. Working capital as of September 30, 2006 decreased 6% to $294,987 from $313,608 as of June 30, 2006.
In order to maintain funds to finance operations and meet debt obligations, it is the intention of management to continue its efforts to expand the present market area and increase sales to its existing customers. Management also intends to continue tight control on all expenditures.
There has been no material impact from inflation and changing prices on net sales or on income from continuing operations for the last three months.
ITEM 3. - CONTROLS AND PROCEDURES
As of the end of the period covered by this report, the Company conducted an evaluation, under the supervision and with the participation of the principal executive officer and principal financial officer, of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on this evaluation, the principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. There was no change in the Company’s internal control over financial reporting during the Company’s most recently completed fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
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On December 16, 2005, a lawsuit was filed by 3600 S. Leonard Road, LLC., (the Plaintiff) against the Company in the Circuit Court of Buchanan County, Missouri. The Plaintiff alleges that the Company failed to honor certain sections of a lease agreement, for its former facility, entered into between the Plaintiff, as owner and landlord of the premises subject to the lease agreement, and the Company, as tenant to the premises. The Plaintiff is seeking damages in an amount in excess of $200,000. The Company has filed a response with the Circuit Court denying all material allegations made by the Plaintiff. A status review hearing was held March 15, 2006 in the Circuit court where upon the Judges ruled for the parties to meet again to a scheduling order. The Company is expecting to go to trial in December 2006. The Company believes the claim is without merit and intends to contest it vigorously, however, the outcome of this lawsuit cannot be predicted at this time.
a. None | ||||
b. The total cumulative preferred stock dividends contingency at September 30, 2006 is $6,700,104. |
Exhibits. | ||||
31 | Certification of Chief Executive Officer and Treasurer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
32 | Certification of Chief Executive Officer and Treasurer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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.
CHASE GENERAL CORPORATION
Registrant
Dated: November 13, 2006 | By: | /s/ Barry M. Yantis | ||||
Barry M. Yantis | ||||||
President, Chief Executive Officer, | ||||||
Treasurer and Chairman of the | ||||||
Board |
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