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: September 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: September 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 September 30, 2002 September 30, 2001
Current Assets
Cash 21,869.69 30,402.40
Accounts Receivable 112,998.82 31,061.36
Allowance for bad debt (3,000.00) (3,000.00)
Inventory 216,766.46 127,041.97
Deposits 5,481.67
Prepaid expenses 10,590.00
Total Current Assets 364,706.64
Property and Equipment
Equipment 21,231.50 14,474.00
Tooling 7,730.00 7,730.00
Accum Depreciation (23,944.00) (22,477.00)
Total Property and Equipment 5,017.50
Other Assets
Life Insurance - Current Value 17,706.00 30.507.00
Deferred Taxes 300,000.00 317,706.00
Total Assets 687,430.14 740,698.21
DI-AN CONTROLS, INC.
BALANCE SHEET (continued)
LIABILITIES AND CAPITAL September 30, 2002 September 30, 2001
Current Liabilities
Accounts Payable 11,366.17
Note Payable Officer 1,297,741.04
Customer Deposits 20,703.00
Unearned Income 20,528.25
Reserve for Warranty 10,000.00
Payroll tax payable (6,923.67)
Sales tax payable
Other accrued expenses 4,451,795.21
Total Liabilities 5,805,210.17
Capital
Beginning Balance Equity 1,207,092.24
Retained earnings (6,312,071.49)
RE Accrual (12,800.78)
Total Capital (5,117,780.03)
Total Liabilities & Capital 687,430.14 740,698.21
DI-AN CONTROLS, INC.
STATEMENT OF OPERATIONS AND STOCKHOLDERS' DEFICIT
September 30, 2002 September 30, 2001
Revenue
Product Sales 510,238.65
Service Income 11,049.52
Maintenance Contract Revenues 21,204.79
Other income
Total Revenues 542,492.96
Expenses
Cost of sales & service 343,049.79
Salaries & wages, administration 66,880.12
Overhead & other 89,732.33
Interest 118,896.69
Total expenses 618,558.93
Net gain (loss) (76,065.97)
Taxes 0
Net Income (76,065.97)
Stockholders beginning deficit (5,841,941.30)
Stockholders ending deficit (5,918,007.27)
Net per share gain (loss) (9.2)
MANAGEMENT DISCUSSION
SUMMARY OF RESULTS OF OPERATIONS (UNAUDITED)
NET INCOME
The company's revenue in the third quarter of 2002 was a loss of
$76,065.97. Prior to the cost of
financing, a positive income from operations of $42,830.72, represented
sales in excess of cost of
goods and ordinary operating expenses.
Interest expense of $118,896.69 YTD was incurred on short-term loans
to fund current operations.
LIQUIDITY
A principal stockholder has loaned the company funds to carry out company
operations.
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 September 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