SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended Commission File Number O-6421
June 30, 2000
SYNERGISTICS, INC.
MASSACHUSETTS 04-2283157
(State of Incorporation) (IRS Employer ID Number)
9 Tech Circle, Natick, MA 01760
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number,
including area code (508)655-1340
Securities registered pursuant to Section 12(g) of the Act.
Common Stock $0.01 Par Value
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 preceeding 12 months (or such shorter period)
that the registrant was required to file such reports and (2) has been
subject to such filing requirements for the past 90 days.
Yes X No
There is no public market for, and thus no aggregate market value of,
the registrants securities.
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the last practicable date.
Class Outstanding at July 31, 2000
Common Stock, one cent par value 9,632,561
NO DOCUMENTS INCORPORATED BY REFERENCE
SYNERGISTICS, INC.
BALANCE SHEET
ASSETS
(UNAUDITED)
June 30, Dec 31,
2000 1999
CURRENT ASSETS
Cash $ 27,519 $ 52,325
Accounts receivable 534,706 500,015
Allowance for doubtful accts (16,599) (20,000)
Inventories 397,367 377,344
Prepaid expenses 23,491 12,468
--------- ---------
TOTAL CURRENT ASSETS 966,484 922,152
EQUIPMENT, less allowances of $75,008 43,111 43,073
and $123,891 for depreciation
DEFERRED TAXES 759,674 759,674
--------- ---------
TOTAL ASSETS $1,769,269 $1,724,899
========= =========
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 336,843 $ 218,080
Accrued expenses and other current
liabilities 60,082 91,235
Amount due stockholder 200,000 -
--------- --------
TOTAL CURRENT LIABLITIES 596,925 309,315
STOCKHOLDERS' EQUITY
Common Stock ( 9,632,561 shares issued
including shares held in Treasury) 96,326 96,326
Additional paid-in capital 6,873,887 6,873,887
Retained earnings (deficit) (5,790,734) (5,547,494)
Cost of Common Stock held in Treasury (7,135) (7,135)
--------- ---------
1,172,344 1,415,584
TOTAL LIABILITIES. PREFERRED STOCK --------- ---------
AND SHAREHOLDERS' EQUITY $1,769,269 $1,724,899
========= =========
- - - -
SYNERGISTICS, INC.
STATEMENT OF OPERATIONS
PERIOD OF SIX MONTHS ENDED
JUNE 30, 2000 AND 1999
(UNAUDITED)
2000 1999
Sales, net $1,322,841 $1,348,375
Interest income 365 790
--------- ---------
1,323,206 1,349,165
Costs and expenses:
Cost of sales 949,724 896,465
Selling, general and administrative expenses 617,199 481,917
Interest expense 1,028 382
--------- ---------
1,567,951 1,378,764
--------- ---------
Net gain (loss) (244,745) (29,599)
Gain (loss) per share of Common Stock
Assuming no dilution $(0.02) $(0.00)
Assuming full dilution $(0.02) $(0.00)
SYNERGISTICS, INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
PERIODS OF SIX MONTHS JUNE 30, 2000 AND 1999
(UNAUDITED)
2000 1999
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ (244,745) $ (29,599)
Adjustments to reconcile net loss to net cash
(used) provided by operating activities:
Depreciation 8,970 10,050
(Increase) decrease in accounts receivable (38,092) 61,119
(Increase) decrease in inventories (19,267) (100,788)
(Increase) decrease in prepaid expenses
and other assets (11,024) (9,404)
Increase (decrease) in accounts payable 118,762 86,083
Increase (decrease) in accrued expenses
and other current liabilities (30,402) (41,143)
Increase (decrease) in amounts due
shareholder 200,000 (21,154)
-------- -------
TOTAL ADJUSTMENTS 228,947 (15,237)
-------- -------
NET CASH USED BY OPERATING ACTIVITIES (15,798) (44,836)
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (9,008) (2,867)
-------- -------
NET CASH (USED) BY INVESTING ACTIVITIES (9,008) (2,867)
NET CHANGE IN CASH (24,806) (47,703)
CASH AT BEGINNING OF YEAR 52,325 84,376
-------- -------
CASH AT END OF PERIOD 27,519 36,673
SYNERGISTICS, INC.
SELECTED INFORMATION
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. It is suggested
that these financial statements be read in conjunction with the
financial statements and notes thereto included in the Company's Annual
Report Form 10-K. The results of operations for the period ended June 30,
2000 are not necessarily indicative of the operating results for the full year.
Basis of Presentation
It is the opinion of management that all significant adjustments which are
routine recurring adjustments reflected in the accompanying June 30,
financial statements which are necessary to present fairly such interim
financial statements.
Accounting Policy for Revenues and Costs of Sales
Revenues are recognized at the time of product shipment. Cost of sales
is computed using the "gross profit" method based upon historical
results of operations. Other cost, included in costs of sales, are
based upon such costs as actually incurred.
Inventories
Inventories are comprised of the following:
* 6/30/00 12/31/99
Raw Materials 49,670 45,528
Finished Goods & WIP 347,697 331,816
------- -------
Total Inventories 397,367 377,344
*Allocation Based Upon Estimate
(Loss) per Common Share
The weighted average number of shares of common stock outstanding used
in computing (loss) per share does not include the effect of the conversion
of the stock options as the exercise price exceeds the current market value
of the security.
The following schedule sets forth the number of shares used in computing
earnings per share:
Period of Six Months
Ended June 30
2000 1999
Assuming no dilution
Common Stock Outstanding July 31, 2000 9,632,561 9,632,561
Shares held in Treasury 16,445 16,445
Total Shares Authorized 12,000,000 12,000,000
PART I FINANCIAL INFORMATION
ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
For the six months ended June 30, 2000, the Company recorded sales of
$1,322,841 compared to $1,348,375 for the six months ended June 30, 1999.
At June 30, 2000 the Company had a backlog of $32,262 compared to
$97,383 at June 30, 1999.
Cost of sales as a percentage of sales increased to 71.8% from 66.5%
for the six months ended June 30, 2000 and 1999, respectively.
This is due to the increase in the engineering staff & a higher material
content on products sold.
For the period of six months ended June 30, 2000, selling, general
and administrative expenses increased by $135,282 over the period of
six months ended June 30, 1999.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are currently no pending legal proceedings to which the Company is
a party or to which any of its property is subject.
ITEM 2. CHANGE IN SECURITIES
There have been no changes in the instruments defining the rights of
holders of any class of securities of the Company during the first
six months of calendar year 2000.
ITEM 3. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
A Special meeting in lieu of an annual meeting was held on May 25, 2000.
William Tetrick, Dave Longworth, Larry Bishop, Thomas Gehman and Robert
Pogorelc were elected as directors.
A vote was taken to approve Livingston & Haynes, P.C. to continue as auditors
for the coming year.
Both votes were passed and no other votes were taken.
ITEM 4. EXHIBITS AND FORM 8-K
None.
Pursuant to the requirements of the Securities Act of 1934, the
registrant has duly caused this report to be signed on its behalf, the
undersigned thereunto being duly authorized.
DATE July 19, 2000 BY /S/William M. Tetrick
William M. Tetrick
Chairman of the Board
DATE July 19, 2000 BY /S/David S. Longworth
David S. Longworth
President and Clerk