SECURITIES AND EXCHANGE COMMISSION
FORM 10Q
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: June 30, 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: June 30, 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 June 30, 2002 June 30, 2001 Change
Current Assets
Cash 45,392.22 (33,801.23) 79,193.45
Accounts Receivable 120,425.98 131,758.07 (11,332.09)
Allowance for bad debt (3,000.00) (3,000.00) 0.00
Inventory 248,997.14 131,399.80 117,597.34
Deposits 5,481.67 2,916.67 2,565.00
Prepaid expenses 10,590.00 (2,092.58) 12,682.58
Total Current Assets $427,887.01 $227,180.73 $200,706.28
Property and Equipment
Equipment 21,231.50 14,747.00 6,484.50
Tooling 7,730.00 7,730.00 0.00
Accum Depreciation (23,669.00) (22,477.00) (1,467.00)
Total Property and Equipment $5,292.50 0.00 $5,017.50
Other Assets
Life Insurance - Current Value 17,706.00 30,507.00 (12,801.00)
Deferred Taxes 281,153.17
Total Other Assets $298,859.17 $330,507.00 (12,801.00)
Total Assets $732,038.68 $557,687.73 $192,922.78
DI-AN CONTROLS, INC.
BALANCE SHEET (continued)
LIABILITIES AND CAPITAL June 30, 2002 June 30, 2001 Change
Current Liabilities
Accounts Payable 2,627.41 42,709.79 (40,082.38)
Note Payable Officer 1,297,741.04 1,297,741.04 0.00
Customer Deposits 20,703.00 19,175.25 1,527.75
Unearned Income 20,528.25 105,508.76 (84,980.51)
Reserve for Warranty 10,000.00 10,000.00 0.00
Payroll tax payable 692.42 21,223.22 (20,530.80)
Sales tax payable $0.00 (162.11) 162.11
Other accrued expenses 4,381,904.70 4,380,160.79 1,743.91
Total Current Liabilities $5,753,712.79 $5,876,356.74 (122,643.95)
Total Long-Term Liabilities $0.00 $0.00 0.00
Total Liabilities $5,753,712.79 $5,876,356.74 (122,643.95)
Capital
Beginning Balance Equity 1,207,092.24 1,207,091.24 0.00
Retained earnings (6,271,893.86) (6,232,168.70) (73,902.55)
Net Income 43,127.75 (109,094.55) 210,971.52
Total Capital (5,021,674.11) ($5,134,172.01) 137,069.73
Total Liabilities & Capital $732,038.68 $742,184.73 $14,425.78
DI-AN CONTROLS, INC.
STATEMENT OF OPERATIONS AND STOCKHOLDERS' DEFICIT
June 30, 2002 June 30, 2001 Change
Revenue
Product Sales 438,405.83 112,795.00 325,610.83
Service Income 7,284.52 5,921.00 1,363.52
Maintenance Contract Revenues 15,664.50 48,020.97 32,356.47)
Other income 361.90 (361.90)
Total Revenues 461,354.85 167,098.87 294,255.98
Expenses
Cost of sales & service 207,184.10 80,704.48 126,479.62
Salaries & wages, administration 40,284.18 40,467.03 (182.85)
Overhead & other 88,771.77 19,812.95 68,958.82
Interest 66,987.05 39,932.23 27,054.82
Total expenses 403,227.10 180,916.69 222,310.41
Net gain (loss) 58,127.75 (13,817.82) 56,945.57
Taxes 15,000.00 0.00 0.00
Net Income $43,127.75 ($13,817.82) $56,945.57
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
First half of year 2002 sales were a 176% increase over first half
year 2001 sales. Sales of
$461,355 were 98% for the DI-AN CONCESSION/MASTER System
and customer support for
that system. Sales were to Baseball teams, Fairs, Convention
Centers, Universities, and Food
Concession Contractors.
NET INCOME
The company's revenue in the first half of 2002 was in excess of expenses
resulting in a positive
net income of $43,127.75, an improvement of $57 thousand
over first half last year.
Interest expense of $66,987.05 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 June 30, 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 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