U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-QSB/A
Quarterly report under section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended October 31,
1995.
Commission file number: 0-8289
THE ROVAC CORPORATION
(Exact name of small business issuer as specified in its charter)
Delaware 59-1461320
(State or other jurisdiction (IRS Employer
of incorp. or organization) Identification No.)
1030 Stafford Street, Rochdale, MA 01542
(Address of principal executive offices)
(508)892-1121
(Issuer's telephone number)
Check whether the issuer (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the
past 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to
such filing requirement for the past 90 days. Yes [ ] No [X]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issu-
er's classes of common equity, as of the latest practicable date,
July 31, 1995: 39,546,681 shares of Common Stock, $.01 par
value.
[CAPTION]
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
See attached.
Item 2. Management's Discussion and Analysis or Plan of
Operation.
(a) Liquidity and Capital Resources
ROVAC produced key CinchLock(tm) pipe connector components
for field testing. The Company continued to contact potential
customers to enter into discussions for test marketing programs.
ROVAC identified a number of markets for its CinchLock(tm) con-
nectors and has supplied metal and plastic samples of the connec-
tors to potential manufacturers, wholesalers and distributors for
evaluation. The company continues to receive favorable field
test results for the company's CinchLock(tm) pipe connectors.
During the quarter, the Company continued to install produc-
tion machinery and equipment in order to improve the Company's
capability of manufacturing a larger volume of key pipe connector
components in its existing facilities in Rochdale, Massachusetts.
The Company also continued discussions and negotiations for fi-
nancing and capital sources in order to meet its working capital
requirements and tooling costs to implement proposed projects.
Management continues to fund the capital requirements of the
Company as they become necessary.
(b) Results of Operation for the first quarter ended
October 31, 1995
General and Administrative Costs were $41,022 for the quar-
ter ending October 31, 1995, as compared to $42,269 for the
corresponding quarter in 1994, a decrease of $1,247. The decrease
of 3% was primarily due to reduction in legal expenses. Research
and Development Costs were $11,589 for the quarter ending October
31, 1995, as compared to $2,702 for the corresponding quarter in
1994, an increase of $8,887. The increase was due to purchases
of machinery and material for CinchLock(tm) production.
THE ROVAC CORPORATION
Item 1 - Financial Information
Condensed Balance Sheets
October 31, 1995 July 31, 1995
(Unaudited)
Assets
Current Assets
Cash - 1,939
Accounts receivable 8,672 1,665
Accounts receivable-other 183 -
Loan receivable-officer 698 233
Inventory 2,191 475
Prepaid expenses 5,200 7,150
__________ __________
Total current assets 16,944 11,462
__________ __________
Property and equipment
Machinery and equipment 69,094 69,094
Furniture and fixtures 30,283 30,283
Leasehold improvements 28,121 28,121
__________ __________
127,498 127,498
__________ __________
Less accumulated depreciation -113,321 -112,721
__________ __________
14,177 14,777
__________ __________
Patent and patent applications,
net of accumulated amortization
of $52,055 ($50,105 at July
31, 1995) 86,102 82,661
__________ __________
86,102 82,661
__________ __________
117,223 108,900
========== ==========
See accompanying notes to condensed financial statements.
THE ROVAC CORPORATION
Item 1 - Financial Information
Condensed Balance Sheets
October 31, 1995 July 31, 1995
(Unaudited)
Liabilities and Stockholders'
Deficiency
Current liabilities
Bank overdraft 6,693 -
Notes payable-officers 647,908 647,021
Notes payable-other 3,250 3,250
Accounts payable:
Trade 112,068 110,846
Parent 440,771 401,908
Accrued expenses 568,416 544,298
_________ ____________
Total current liabilities 1,779,106 1,707,323
_________ ____________
Stockholders' deficiency
8% nonvoting preferred 1,200,000 1,200,000
stock, $100 par value.
Authorized 25,000 shares
12,000 shares issued.
Common stock, $.01 par 395,467 395,467
Authorized 40,000,000 shares
issued and outstanding
39,546,681 and 39,546,681
shares
Common stock issuable, $.01 2,775 2,775
par value, 25,000 shares
Additional paid-in capital 8,243,276 8,243,276
Accumulated deficit -11,503,401 -11,439,941
__________ ____________
Total stockholders'
deficiency -1,661,883 -1,598,423
__________ ____________
117,223 108,900
========== ============
See accompanying notes to condensed financial statements.
THE ROVAC CORPORATION
Statement of Operations
(Unaudited)
Three Months
Ended October 31
1995 1994
____________ ____________
Revenues:
Technology Sale 11,922 -
Contract Income - -
____________ ____________
Total Revenues 11,922 -
____________ ____________
Operating Expenses
General and Administrative 41,022 42,269
Research and Development 11,589 2,702
Depreciation and amortization 2,550 2,481
____________ ____________
Total Operating Expense 55,161 47,452
____________ ____________
Operating Loss -43,239 -47,452
____________ ____________
Other income (expense)
Interest expense -20,221 -20,675
Miscellaneous income - 400
____________ ____________
-20,221 -20,275
____________ ____________
Net Loss -63,460 -67,727
============ ============
Net loss per share of
common stock (0.00) (0.00)
============ ============
Weighted average number of
common shares outstanding
and issuable 39,368,135 39,368,135
============ ============
See accompanying notes to condensed financial statements.
THE ROVAC CORPORATION
Statement of Cash Flows
(Unaudited)
Three Months
Ended October 31
1995 1994
____________ ____________
Cash flows from operating
activities:
Net loss -63,460 -67,727
Adjustments to reconcile net
loss to net cash used in
operating activities:
Depreciation and amortization 2,550 2,481
(Increase) decrease in assets:
Prepaid expenses 1,950 2,000
Receivables -7,655 -298
Inventories -1,716 -723
Increase (decrease) in
liabilities:
Accounts payable 1,222 8,673
Accrued expenses 24,118 23,318
____________ ____________
Net cash used in operating
activities: -42,991 -32,276
____________ ____________
Cash flows from investing
activities:
Acquisition of property
and equipment - -7,000
Acquisition of patents and
patent applications -5,391 -
____________ ____________
Net cash used in investing
activities: -5,391 -7,000
____________ ____________
Cash flows form financing
activities:
Proceeds from issuance of
notes payable-officers, net 886 1,999
Advance from parent 38,864 37,391
____________ ____________
Net cash provided by
financing activities: 39,750 39,390
____________ ____________
Net change in cash -8,632 114
____________ ____________
Cash (bank overdraft) at
beginning of period 1,939 -814
____________ ____________
Cash (bank overdraft) at
end of period -6,693 -700
============ ============
See accompanying notes to condensed financial statements.
[CAPTION]
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K.
Exhibit 27, Financial Data Schedule, 10/31/95.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
THE ROVAC CORPORATION
(Registrant)
Date: April 15, 1996 Raymond E. Shea, Jr.
Raymond E. Shea, Jr.
Vice President, Treasurer