SECURITIES AND EXCHANGE COMMISSION
Washington, DC. 20549
FORM 10-Q
(x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000 or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to _______________
Commission file number 0-9643
MEGATECH CORPORATION
(Exact name of registrant as specified in its charter)
|
Massachusetts
(State or other jurisdiction of
incorporation of organization) |
04-2461059
(IRS. Employer
Identification No.) |
|
555 WOBURN Street, TEWKSBURY, MA
(Address of principal executive offices) |
01876
(Zip Code) |
(978) 937-9600
(Registrant's telephone number, including area code)
__________________________________________
(Former name, former address and former fiscal
year, if changed since last report)
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 and 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. Yes X No
There were 3,813,708 shares of common stock outstanding at
May 2, 2000.
MEGATECH CORPORATION
QUARTERLY REPORT FORM 10-Q
March 31, 2000
|
PART 1. |
FINANCIAL INFORMATION |
|
|
ITEM 1. |
Financial Statements (Unaudited) |
Page |
| |
Balance Sheet - March 31, 2000 and December 31, 1999 |
3 |
| |
Statement of Operations- for the three months ended
March 31, 2000 and March 31, 1999 |
4 |
| |
Statement of Cash Flows- for the three months ended
March 31, 2000 and March 31, 1999 |
5
|
| |
Notes to Financial Statements- March 31, 2000 |
6 |
|
ITEM 2. |
Management's Discussion and Analysis of Financial
Condition and Results of Operations |
7
|
|
ITEM 3. |
Quantitative and Qualitative Disclosures About Market Risk |
8 |
|
PART II. |
OTHER INFORMATION |
|
|
ITEM 1. |
Legal Proceedings |
8 |
|
ITEM 2. |
Changes in Securities and Use of Proceeds |
8 |
|
ITEM 3. |
Defaults Upon Senior Securities |
8 |
|
ITEM 4. |
Submission of Matters to a Vote of Security Holders |
8 |
|
ITEM 5. |
Other Information |
8 |
|
ITEM 6. |
Exhibits and Reports on Form 8-K |
8 |
| |
Signature Page |
9 |
PART 1. FINANICIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MEGATECH CORPORATION
BALANCE SHEET
|
MARCH 31, 2000
(UNAUDITED) |
DEC. 31, 1999
(AUDITED) |
|
ASSETS
Current assets:
Cash and cash equivalents
Accounts receivable:
Trade
Other
Inventories
Prepaid expenses
Total current assets
Property, plant and equipment, net
Other assets
Total Assets |
$ 110,016
221,561
2,931
319,345
10,429
664,282
63,914
7,666
$ 735,862
|
$ 75,857
280,389
3,581
357,662
4,361
721,850
65,731
7,666
$ 795,247
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts Payable:
Trade
Affiliate
Accrued Liabilities
Total current liabilities |
$ 134,316
4,671
94,200
233,187
|
77,192
0
267,675
344,867
|
|
Long-Term Debt |
37,500 |
37,500 |
|
Stockholders' equity:
Common Stock, par value $.0143 per share,
5,000,000 shares authorized; 3,813,708 (3,812,308
@ 1999) shares issued and outstanding
Additional paid-in capital
Deficit
Total stockholders' equity
Total liabilities and stockholders' equity |
54,536
4,014,949
(3,604,310)
465,175
$ 735,862
|
54,516
4,014,661
(3,656,297)
412,880
$ 795,247
|
See notes to financial statements
MEGATECH CORPORATION
STATEMENT OF OPERATIONS (UNAUDITED)
| |
QUARTER ENDED |
| |
MARCH 31, 2000 |
MARCH 31, 1999 |
|
Sales
Cost of sales
Gross profit |
681,465
374,756
306,709 |
520,654
304,470
216,184 |
|
Operating expenses
Selling
General and administrative
Research and development
Total operating expenses
Income from operations |
204,985
40,624
9,211
254,820
51,889
|
168,305
36,447
5,389
210,141
6,043
|
|
Other income (expense):
Interest income
Interest expense
Other income (expense), net
Net income |
930
(832)
98
$ 51,987
|
1,667
0
1,667
$ 7,710
|
|
Net income per share - basic and diluted |
$0.014 |
$0.002 |
|
Weighted average number of common shares outstanding |
3,813,708 |
3,792,308 |
See notes to financial statements.
MEGATECH CORPORATION
STATEMENT OF CASH FLOWS
| |
QUARTER ENDED |
| |
MARCH 31, 2000 |
MARCH 31, 1999 |
|
Cash flows from operating activities:
Net income (loss)
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization
Common stock issued as compensation
Changes in operating assets and liabilities:
Accounts receivable
Prepaid expenses
Inventories
Accounts payable
Accrued liabilities
Net cash provided (used) by operating activities
Cash flows from investing activities:
Purchases of property and equipment
Net increase (decrease) in cash and cash equivalents
Cash & cash equivalents, beginning of period
Cash & cash equivalents, end of period |
$ 51,987
4,617
308
77,789
(6,068)
38,317
61,795
(191,786)
36,959
(2,800)
34,159
75,857
$ 110,016
|
$ 7,710
4,617
0
(84,032)
(12,772)
12,258
16,686
37,679
(17,854)
0
(17,854)
187,580
$ 169,726
|
See notes to financial statements.
MEGATECH CORPORATION
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000
1. BASIS OF PRESENTATION:
The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim
financial information and pursuant to the rules
and regulations of the Securities and Exchange Commission. 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 considered necessary for a fair presentation of the financial position, results of operations and cash flows have been included. Operating results for interim periods are not necessarily indicative of the
operating results that may be expected for the full year.
For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K.
2. INVENTORIES:
Inventories consisted of the following:
| |
MARCH 31, 2000 |
DEC. 31, 1999 |
|
Raw materials
Work in process
Finished goods
|
$193,219
49,603
76,523
$319,345 |
$182,614
29,903
145,145
357,662 |
3. MAJOR CUSTOMER INFORMATION:
For the period ended March 31, 2000 and 1999, sales to one unrelated sales representative comprised 61% and 65% of total sales, respectively.
ITEM 2.
MEGATECH CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR QUARTER ENDED MARCH 31, 2000 AND 1999
RESULTS OF OPERATIONS:
Quarter Ended March 31, 2000 compared to quarter ended March 31, 1999
Sales for the quarter ended March 31, 2000 were $681,465, compared to $520,654 for the same quarter last year. The increase was primarily due to an increase in international sales.
Gross profit for the quarter ended March 31, 2000 was $306,709 or 45% of sales, compared to $216,184 or 41% of sales, for the same quarter last year. The increase is the result of lower materials and labor costs.
Operating expenses for the quarter ended March 31, 2000 were $254,820 or 37% of sales, compared to $210,141 or 40% of sales, for the same quarter last year. The increase is attributable to an increase in selling and marketing costs.
The net income for the quarter ended March 31, 2000 was $51,987 compared to a net income of $7,710 for the same quarter last year. The increase is the result of the items discussed above.
LIQUIDITY AND CAPITAL RESOURCES:
Working capital as of March 31, 2000 was $431,095 compared to $376,983 in working capital at December 31, 1999. The increase was attributable to the net income for the quarter.
The company maintains a secured line of credit in the amount of $100,000. At March 31, 2000, no borrowings were outstanding under this line. The company believes that cash generated from operations, together with existing sources of debt financing,
will be sufficient to meet forseeable cash requirements for the next twelve months.
The firm's backlog as of March 31, 2000 was approximately $338,211 compared to $399,513 for the same period ended in 1999.
MEGATECH CORPORATION
ITEM 3. QUANITATIVE AND QUALITATIVE DISCLOSURE ABOUT
MARKET RISK
Not applicable.
PART II: OTHER INFORMATION
|
Item 1. Legal Proceedings: |
None. |
|
Item 2. Changes in Securities: |
None. |
|
Item 3. Defaults Upon 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: |
None. |
SIGNATURES
Pursuant to the requirement of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
| |
MEGATECH CORPORATION
(Registrant) |
|
May 8, 2000
___________________________
Date |
______________________________
Vahan V. Basmajian
President, Treasurer
|
