United States |
For Quarter Ended February 28, 2001 | Commission File | ||
Number 0-16101 |
INOTEK Technologies Corp. |
Delaware | 75-1986151 | ||
(State or other jurisdiction of | (I.R.S. Employer | ||
incorporation or organization) | Identification No.) |
11212 Indian Trail, Dallas, Texas | 75229 | ||
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number including area code, 972-243-7000. Not Applicable 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. |
Yes _x_ | No __ |
4,754,088 shares of common stock,$.01 par value (the issuer’s only class of common stock), were outstanding as of February 28, 2001. |
INOTEK Technologies Corp.INDEX |
Page No. | |||
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Part I. Financial information | |||
Item 1. Financial Statements: | |||
Balance Sheets as of February 28, 2001 (unaudited) and May 31, 2000 | 1 | ||
Statements of Operations for the Three Months Ended February 28, 2001 | |||
and February 29, 2000 (unaudited) | 2 | ||
Statements of Operations for the Nine Months Ended February 28, 2001 | |||
and February 29, 2000 (unaudited) | 3 | ||
Statements of Cash Flows for the Nine Months Ended February 28, 2001 | |||
and February 29, 2000 (unaudited) | 4 | ||
Notes to Financial Statements | 5 | ||
Item 2. Management’s Discussion and Analysis of Financial | |||
Condition and Results of Operations | 6 | ||
Part II. Other Information | |||
Item 1. Legal Proceedings | 7 | ||
Item 4. Submission of Matters to a Vote of Security Holders | 7 | ||
Item 6. Exhibits and Reports on Form 8-K | 7 | ||
Signatures | 8 | ||
Index to Exhibits | |||
Exhibit (20)-Report Furnished to Security Holders | 9 |
INOTEK Technologies Corp.Balance Sheets |
February 28 2001 (unaudited) | May 31 2000 | ||||
---|---|---|---|---|---|
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ 320,837 | $ 632,970 | |||
Trade receivables, net of allowance for doubtful accounts | |||||
of $125,422 at February 28 and $111,837 at May 31 | 2,572,858 | 2,336,758 | |||
Inventories | 1,249,946 | 1,247,903 | |||
Deferred taxes | 66,685 | 89,028 | |||
Income tax receivable | 48,235 | 74,899 | |||
Prepaid expenses and other assets | 97,334 | 156,314 | |||
Total current assets | 4,355,895 | 4,537,872 | |||
Property and equipment, net | 758,115 | 801,553 | |||
Goodwill, net of accumulated amortization of $765,593 at | |||||
February 28 and $716,157 at May 31 | 1,876,359 | 1,925,795 | |||
Other assets | 39,561 | 63,332 | |||
Total assets | $ 7,029,930 | $ 7,328,552 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ 1,353,769 | $ 1,281,474 | |||
Accrued expenses | 277,434 | 308,374 | |||
Total current liabilities | 1,631,203 | 1,589,848 | |||
Deferred tax liability | 18,070 | 38,191 | |||
Shareholders’ equity: | |||||
Common shares, $.01 par value: | |||||
Authorized shares, 10,000,000 | |||||
Issued and Outstanding shares | |||||
4,854,088 at February 28 and 4,604,088 May 31 | 48,541 | 46,041 | |||
Additional paid-in-capital | 3,434,547 | 3,367,046 | |||
Retained earnings | 1,936,949 | 2,326,806 | |||
Total shareholders’ equity | 5,420,037 | 5,739,893 | |||
Less: Common stock in treasury at cost, 100,000 shares | (39,380 | ) | (39,380 | ) | |
$ 5,380,657 | $ 5,700,513 | ||||
Total Liabilities and Shareholders’ Equity | $ 7,029,930 | $ 7,328,552 | |||
See accompanying notes |
INOTEK Technologies Corp.Statements of Operations(unaudited) |
Three Months Ended | |||||
---|---|---|---|---|---|
February 28 2001 | February 29 2000 | ||||
Net Sales | $ 4,697,851 | $ 4,779,322 | |||
Cost of goods sold: | 3,252,343 | 3,357,695 | |||
Gross margin | 1,445,508 | 1,421,627 | |||
Operating expenses: | |||||
Sales and marketing | 911,868 | 879,265 | |||
General and administrative | 668,354 | 603,056 | |||
1,580,222 | 1,482,321 | ||||
Operating loss | (134,714 | ) | (60,694 | ) | |
Interest income | 7,421 | 11,835 | |||
Loss before income taxes | (127,293 | ) | (48,859 | ) | |
Income tax benefit | — | (20,521 | ) | ||
Net loss | $ (127,293 | ) | $ (28,338 | ) | |
Net loss per share - basic and diluted | $ (.03 | ) | $ (.01 | ) | |
Weighted average shares outstanding | 4,754,088 | 4,504,088 | |||
See accompanying notes 2 |
INOTEK Technologies Corp.Statements of Operations(unaudited) |
Nine Months Ended | |||||
---|---|---|---|---|---|
February 28 2001 | February 29 2000 | ||||
Net sales | $ 13,871,266 | $ 14,265,490 | |||
Cost of goods sold: | 9,610,408 | 10,075,248 | |||
Gross margin | 4,260,858 | 4,190,242 | |||
Operating expenses: | |||||
Sales and marketing | 2,757,247 | 2,674,249 | |||
General and administrative | 1,966,510 | 1,879,578 | |||
4,723,757 | 4,553,827 | ||||
Operating loss | (462,899 | ) | (363,585 | ) | |
Interest income | 34,514 | 16,672 | |||
Loss before income taxes | (428,385 | ) | (346,913 | ) | |
Income tax benefit | (38,648 | ) | (82,728 | ) | |
Net loss | $ (389,737 | ) | $ (264,185 | ) | |
Net loss per share - basic and diluted | $ (.08 | ) | $ (.06 | ) | |
Weighted average shares outstanding | 4,673,502 | 4,541,587 | |||
See accompanying notes 3 |
INOTEK Technologies Corp.Statements of Cash Flows(unaudited) |
Nine Months Ended | |||||
---|---|---|---|---|---|
February 28 2001 | February 29 2000 | ||||
Operating Activities | |||||
Net loss | $(389,737 | ) | $(264,185 | ) | |
Adjustments to reconcile net earnings | |||||
to net cash provided by (used in) operating activities: | |||||
Depreciation and amortization | 248,951 | 211,211 | |||
Deferred taxes | 2,222 | (48,600 | ) | ||
Provision for losses on accounts receivable | 13,585 | 32,295 | |||
Net changes in operating assets and liabilities: | |||||
Accounts receivable | (249,685 | ) | (208,003 | ) | |
Inventories | (2,041 | ) | 152,604 | ||
Prepaid expenses and other assets | 58,979 | (68,079 | ) | ||
Accounts payable | 72,133 | 568,073 | |||
Accrued expenses | (30,940 | ) | (97,151 | ) | |
Income tax receivable | 26,664 | 372,766 | |||
Other assets | 23,334 | (50,277 | ) | ||
Net cash provided by (used in) operating activities | (226,535 | ) | 600,654 | ||
Investing Activities | |||||
Purchase of property and equipment | (155,598 | ) | (85,750 | ) | |
Net cash used in investing activities | (382,133 | ) | (85,750 | ) | |
Financing Activities | |||||
Proceeds from stock issued | 70,000 | 70,000 | |||
Net cash (used in) financing activities | 70,000 | 70,000 | |||
Change in cash and cash equivalents | (312,133 | ) | 584,904 | ||
Cash and cash equivalents beginning period | 632,970 | 173,668 | |||
Cash and cash equivalents, end of period | $ 320,837 | $ 758,572 | |||
Supplemental Disclosures of Cash Flow Information: | |||||
Cash received during the period for: | |||||
Interest | $ 7,421 | $ 11,835 |
See accompanying notes 4 |
INOTEK Technologies Corp. |
The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Rule 10-01 of Regulation S-X. 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 necessary for a fair presentation of the results for the interim periods presented have been made. The results of operations for such interim periods are not necessarily indicative of the results of operations for a full year. The interim unaudited financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended May 31, 2000. |
2. Line of Credit |
On September 15, 2000, the Company secured a new agreement with Bank One, Texas, N.A. for a one-year revolving credit arrangement of up to $500,000. The credit arrangement provides for borrowings based on the Company’s trade receivables, at the bank’s prime rate plus one per cent and is collateralized by trade receivables and inventories. |
5 |
Item 2. Management’s Discussion and Analysis of Financial |
Part II — Other InformationItem 1. Legal ProceedingsNone pending Item 4. Submission of Matters to a Vote of Security HoldersNone Item 6. Exhibits and Reports on Form 8-K |
(a) | Exhibits: |
1. | Exhibit (20)-Report furnished to security holders. |
(b) | Reports on 8-K: |
No reports on Form 8-K were filed in the quarter for which this report is filed. |
7 |
SignaturesPursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. |
Date: April 15, 2001 | INOTEK Technologies Corp. (Registrant) By: /s/ Neal E. Young —————————————— (Officer) Neal E. Young Chairman of the Board |
Date: April 15, 2001 | By: /s/ Dennis W. Stone —————————————— (Officer) Dennis W. Stone Cheif Executive Officer |
8 |