SECURITIES AND EXCHANGE COMMISION
FORM 10Q
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 2002 Commission File Number 2-2996
DI-AN CONTROLS, INC.
Exact Name of Registrant as specified in its charter
MASSACHUSETTS 04-2237138
State of Incorporation I.R.S. Employer Identification Number
530 West Street
Braintree, Massachusetts, 02184
Address of principal executive offices, Zip Code
Shares of Common Stock outstanding as of: March 31, 2002 826,405 shares
Registrant's telephone number, including area code: 781-848-1299
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, and (2) has been subject to such filing requirements for the
past 90 days.
YES NO x
DI-AN CONTROLS, INC.
BALANCE SHEET
ASSETS MARCH 31, 2002 MARCH 31, 2001 CHANGE
Current Assets
Cash 3,687.52 (18,753.73)
22,441.25
Accounts Receivable 252,352.43 159,451.97 92,900.46
Travel Advances 5,050.00 5,050.00
Allowance for bad debt (3,000.00) (3,000.00)
0.00
Inventory 253,755.28 88,625.00 165,130.28
Deposits 2,565.00 2,916.00 (351.00)
Total Current Assets $514,410.23 $229,239.24 285,170.99
Property and Equipment
Equipment 21,231.50 14,985.00
6,246.50
Tooling 7,730.00 7,730.00 0.00
Accum. Depreciation-Tooling (23,944.00) (22,477.00)
(1,467.00)
Total Property and Equipment $5,017.50 $238.00 4,779.50
Other Assets 0 47.50
(47.50)
Life Insurance - Current Value 17,706.00 33,358.00
(17,652.00)
Deferred Taxes 300,000.00 300,000.00 0.00
Total Other Assets $317,706.00 $335,405.50
(17,699.50)
Total Assets $837,133.73 $564,882.74 272.250.99
DI-AN CONTROLS, INC.
BALANCE SHEET- CONTINUED
LIABILITIES AND CAPITAL MARCH 31, 2002 MARCH 31, 2001 CHANGE
Current Liabilities
Accounts Payable 37,265.18 (13,959.42) 51,224.60
Note Payable Officer 1,317,741.04 1,287,741.04
30,000.00
Customer Deposits 20,703.00 31,200.00
(10,497.00)
Unearned Income 20,528.25 (92,604.79)
113,133.04
Reserve For Warranty 10,000.00 10,000.00 0.00
Payroll Tax Payable 3,465.91 14,312.88
(10,846.97)
Other accrued expenses 4,336,625.83 4,070,625.53 265,973.30
Total Current Liabilities $5,746,329.21 $5,307,342.24 438,986.97
Total Long-Term Liabilities $0.00 $0.00
0.00
Total Liabilities $5,746,329.21 $5,307,342.24 438,986.97
Capital
Beginning Balance Equity (12,064,082.10) 1,207,091.24
(13,271,173.34)
Retained earnings 6,951,651.47 (5,935,731.60)
12,887,383.07
Net Income 203,235.15
(13,817.82)
217,052.97
Total Capital ($4,909,195.48) ($4,742,458.18) (166,737.30)
Total Liabilities & Capital 837,133.73 564,884.06
272,249.67
DI-AN CONTROLS, INC.
STATEMENT OF OPERATIONS AND STOCKHOLDERS' DEFICIT
INCOME STATEMENT MARCH 31, 2002 MARCH 31, 2001 CHANGE
Revenue
Product Sales 358,202.58 112,795.00 245,407.58
Services Income 2,042.00 5,921.00
(3,879.00)
Maintenance Contract Revenue 8,334.00 48,020.97 (39,686.97)
Other Income 0.00 361.90
(391.60)
Total Revenues 368,578.58 167,098.87
201,479.71
Expenses
Cost Of Sales & Service 127,965.85 80,704.48
47,261.37
Salaries & Wages, Admin. 21,250.32 40,467.03
(19,216.71)
Overhead & Other 39,793.48 19,812.95
19,980.53
Interest 40,032.23 39,932.23
100.00
Total Expenses 229,041.88 180,916.69 48,125.19
Net gain (loss) 139,536.70 (13,817.82) 153,354.52
Stockholders beginning deficit (5,981,478.00) (5,820,446.00)
(161,032.00)
Stockholders ending deficit (5,841,941.30) (5,834,263.82)
(7,677.48)
Net per share gain (loss) 0.17
(0.02)
0.19
MANAGEMENT DISCUSSION
SUMMARY OF RESULTS OF OPERATIONS (UNAUDITED)
Sales for the first quarter 2001 of $358,203 was an increase of $245,408
over the prior
years first quarter. The decrease in Service Revenue by $39,687 off set
the sales gain for
a net revenue increase of $201,480 for the quarter over the
prior years quarter.
Expense increased by $48, 125 over the comparable quarter leaving a net gain of
$139,537 for the quarter compared to a loss of $139,818 for the
prior year quarter.
Interest expense of $40, 032 was incurred on short term loans to fund
current operations.
LIQUIDITY
A principal stockholder has loaned the company funds to carry out
company operations.
Improved cash flow:
BASIS OF PRESENTATION
The financial information included herein is unaudited; however,
such information
reflects all adjustments (consisting solely of normal
recurring adjustments) which are, in
the opinion of management, necessary for a fair statement
of results for the interim
periods.
The results of operations for the period ending
March 31, 2002 are not necessarily
indicative of the results to be expected for the full year.
SALES OF UNREGISTERED SECURITIES (DEBT OR EQUITY): NONE
Pursuant 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.
DI-AN CONTROLS, INC.
By Robert D. Kodis
Robert D. Kodis
Date
President/Treasurer