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 30,1999 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, 1999 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
SEPTEMBER 30 SEPTEMBER 30
1999 1998
ASSETS
CURRENT ASSETS
CASH 99,861 51,145
ACCOUNTS RECEIVABLE 79,405 59,351
LESS: ALLOWANCE, BAD DEBTS ( 0) (13,715)
INVENTORY 140,777 275,105
TOTAL 320,044 371,886
EQUIPMENT AND IMPROVEMENTS
MACHINERY AND EQUIPMENT 63,938 63,938
LEASEHOLD IMPROVEMENTS 0 34,322
LESS: ACCUM DEPRECIATION (63,938) (98,260)
NET 0 0
OTHER ASSETS
CASH SURRENDER VALUE
OFFICER'S LIFE INSURANCE 31,947 32,231
DEPOSITS 2,917 2,917
DEFERRED CHARGES 0 34,344
OTHER 5,057 641
TOTAL, OTHER ASSETS 39,921 70,133
TOTAL ASSETS 359,964 442,020
DI-AN CONTROLS, INC.
LIABILITIES AND STOCKHOLDERS DEFECIT
SEPTEMBER 30 SEPTEMBER 30
1999 1998
CURRENT LIABILITIES
ACCOUNTS PAYABLE 11,171 47,992
RESERVE, WARRANTIES 10,000 10,000
DEFERRED REVENUE 12,000 0
NOTE, PRINCIPAL STOCKHOLDER 1,582,741 1,586,400
DUE TO RELATED PARTIES 3,712,717 3,408,237
PAYROLL TAXES PAYABLE 1,449 0
UNEARNED INCOME 0 27,730
TOTAL LIABILITIES 5,330,078 5,080,359
STOCKHOLDERS' DEFICIT
COMMON STOCK 82,641 82,641
CAPITAL, EXCESS OF PAR 1,124,451 1,124,451
RETAINED EARNINGS (6,044,120) (5,891,744)
CURRENT EARNINGS (133,086) 46,312
TOTAL STOCKHOLDERS' DEFICIT (4,970,114) (4,648,340)
TOTAL LIABILITIES
AND STOCKHOLDERS' DEFICIT (4,970,114) (4,638,340)
DI-AN CONTROLS, INC.
STATEMENT OF OPERATIONS AND STOCKHOLDERS' DEFICIT
SEPTEMBER 30 SEPTEMBER 30
1999 1998
REVENUE
NET SALES 467,789 547,670
SERVICE REVENUES 19,292 19,567
OTHER INCOME 0 0
TOTAL REVENUE 487,081 567,237
COSTS AND EXPENSES
COST OF SALES & SERVICES 281,570 195,760
SELLING EXPENSES 53,948 54,218
GENERAL AND ADMIN EXPENSE 137,892 128,172
INTEREST 153,742 142,319
TOTAL EXPENSES 627,152 520,925
NET GAIN (LOSS) (141,759) 34,700
STOCKHOLDERS BEGINNING DEFICIT (6,044,120) (4,684,653)
STOCKHLDERS' DEF. END OF QUARTER (4,970,114) (4,638,341)
NET GAIN (LOSS) PER SHARe ($0.17) $0.04
MANAGEMENT DISCUSSION
SUMMARY OF RESULTS OF OPERATIONS (UNAUDITED)
Interest expense of $141,496.00 was incurred on short term loans to fund
current operations.
Management has determined that the consequences of its YEAR 2000 issues
would not have any material affect on the results of operations or on the
company's financial condition. This determination is the result of thorough
testing by company staff.
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 June 30, 1999 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.
Date November 18, 1999 By Robert D. Kodis
Robert D. Kodis
President/Treasurer