United states
securities and exchange commission
Washington, D.C. 20549
Form 10-QSB/A
Amendment #1
[x] Quarterly Report PURSuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934
For the quarterly period ended July 31, 1999
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or
[ ] Transition report pursuant to Section 13 or 15(d) of the securities Exchange
Act of 1934
For the transition period from to
Commission File Number 0-15362
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Compuflight, Inc.
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(Exact name of small business issuer as specified in its charter)
Delaware 11-2883366
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(State or other jurisdiction of
incorporation or organization) (IRS Employer Identification No.)
125 Mineola Ave., Roslyn Heights, NY 11577
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(Address of principal executive offices) (Zip code)
516-625-0202
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(Registrant's telephone number, including area code)
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(Former name,former address and former fiscal year,if changed since last report)
Indicate by check 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 (or for 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 No X
Applicable only to issuers involved in bankruptcy
proceedings during the preceding five years
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes No
Applicable only to corporate issuers
The number of shares outstanding of the issuer's common stock as of September
30, 1999 was 2,001,980 shares.
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Compuflight, Inc. and subsidiaries
Nine Months Ended July 31, 1999
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I n d e x
Page
Number
Part I. Financial Information
Item 1. Unaudited Financial Statements
Condensed Consolidated Balance Sheet (Unaudited)as of July 31, 1999...3
Consolidated Statements of Operations and Comprehensive Income -
(Unaudited) For the Nine Months Ended and the Three Months Ended
July 31, 1999 and July 31, 1998.....................................4
Condensed Consolidated Statements of Cash Flows - (Unaudited)
For the Nine Months Ended July 31, 1999 and July 31, 1998...........5
Notes to Condensed Consolidated Financial Statements..................6
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Compuflight, Inc.
Condensed Consolidated Balance Sheet
(Unaudited)
July 31,
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1999
ASSETS
CURRENT ASSETS
Accounts receivable, net of allowance for doubtful accounts of $312,569 $ 203,224
Investment tax credits receivable, net of allowance 499,935
Prepaid expenses and other 91,361
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Total current assets 794,520
FIXED ASSETS, NET 312,402
RESTRICTED CASH 50,000
DUE FROM RELATED PARTIES 424,993
OTHER ASSETS 19,317
$ 1,601,232
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Cash Overdraft $ 57,397
Bank revolving demand loans 76,199
Accounts payable and accrued liabilities 1,396,058
Deferred lease inducements - current portion 14,406
Due to related parties - current portion 105,152
Long term debt - current portion 173,018
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Total current liabilities 1,822,230
DUE TO RELATED PARTIES 80,477
LONG TERM DEBT 111,100
DEFERRED LEASE INDUCEMENTS 90,037
MINORITY INTERESTS 237,343
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' DEFICIENCY
Capital stock, par value $.001 per share; authorized 2,500,000
shares; issued and outstanding 2,001,980 shares 2,002
Additional paid-in capital 1,680,445
Accumulated other comprehensive income 50,742
Accumulated deficit (2,473,144)
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(739,955)
$ 1,601,232
See notes to unaudited condensed consolidated financial statements.
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Compuflight, Inc.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
Nine Months Ended Three Months Ended
July 31, July 31,
1999 1998 1999 1998
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Revenue
Service fees $ 3,369,987 $ 2,298,709 $ 1,137,836 $ 764,024
Hardware, software and license sales 314,706 249,966 - 246,807
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3,684,693 2,548,675 1,137,836 1,010,831
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Costs and Expenses
Operating 2,809,745 1,884,365 931,855 663,209
Research and development, net of
Investment Tax Credits 17,475 18,600 5,941 6,084
Selling, general and administrative 564,058 558,209 167,210 177,619
Depreciation and amortization 63,124 101,362 20,647 30,944
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3,454,402 2,562,536 1,125,653 877,856
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Operating income (loss) 230,291 (13,861) 12,183 132,975
Other income (expense)
Interest income 78,799 18,576 52,958 6,729
Interest expense - related parties (29,739) (38,765) (4,886) (20,024)
Interest expense - other (234,002) (95,311) (73,582) (40,362)
Other
Provision for bad debt - related party - (349,542) - (349,542)
Realized foreign exchange gain (loss) (15,993) (10,005) 14,382 (8,918)
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NET EARNINGS (LOSS) 29,356 (488,908) 1,055 (279,142)
Other comprehensive income (expense)
Foreign currency translation adjustment (6,708) 17,302 (6,745) 12,628
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COMPREHENSIVE INCOME (LOSS) $ 22,648 $ (471,606) $ (5,690) $ (266,514)
========= ========== ========== =========
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Net earnings (loss) per share $ 0.01 $ (0.28) $ - $ (0.15)
========= ========== ========== ==========
Weighted Average Number of Common
Shares Outstanding 2,001,980 1,735,313 2,001,980 1,801,980
========= ============ ========== =========
See notes to unaudited condensed consolidated financial statements.
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Compuflight, Inc. and SUBSIDIARIES
Condensed Consolidated Statements of Cash Flow
(Unaudited)
For The Nine Months Ended July 31, 1999 1998
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Cash flows from operating activities
Net earnings (loss) $ 29,356 $ (488,908)
Adjustments to reconcile net earnings (loss) to net cash
provided by operating activities
Depreciation and amortization 63,124 101,362
Provision for uncollectable accounts 3,491 9,196
Provision for bad debt related party - 349,542
(Increase) decrease in operating assets - net 175,386 (218,992)
Increase in operating liabilities - net 59,128 305,139
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Net cash provided by operating activities 330,485 57,339
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Cash flows from investing activities
Purchase of fixed assets (58,582) (5,874)
(Advances to) repayments from Navtech Applied Research Inc. (163,837) (378,608)
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Net cash used in investing activities (222,419) (384,482)
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Cash flows from financing activities
Cash Overdraft (1,263) 5,891
Proceeds from issue of common shares 135,000
Advances from (payment to) related parties - net (74,785) 11,216
Proceeds from long term debt 20,914 184,339
Payment of long term debt (33,314) (32,041)
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Net cash (used in) provided by financing activities (88,448) 304,405
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Effect of foreign translations on cash (19,618) 22,738
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NET DECREASE IN CASH AND EQUIVALENTS - -
Cash and equivalents at beginning of year - -
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Bank indebtedness at end of period $ - $ -
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See notes to unaudited condensed consolidated financial statement
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Compuflight, Inc. and SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements
For The Nine Months Ended July 31, 1999
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NOTE A. DESCRIPTION OF BUSINESS AND ORGANIZATION
Compuflight, Inc. (the "Company"), directly or indirectly through its
wholly-owned Canadian subsidiaries, Navtech Systems Support Inc. ("Support"),
and Efficient Aviation Systems Inc. ("EAS"), is engaged in the business of
developing, marketing, licensing and supporting computerized flight planning and
aircraft performance engineering services for the aviation industry.
NOTE B. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The condensed consolidated balance sheet as of July 31, 1999, and the
consolidated statements of operations for each of the three months and nine
months ended July 31, 1999 and 1998, and the condensed consolidated statements
of cash flows for each of the nine months ended July 31, 1999 and 1998 have been
prepared by the Company without audit. In the opinion of management, all
adjustments (which include only normal recurring accrual adjustments) necessary
to present fairly the financial position, results of operations and cash flows
for all periods presented have been made.
The condensed consolidated financial statements include the accounts of
Compuflight, Inc. ("Compuflight") and its wholly-owned Canadian subsidiaries,
Support and EAS. All material intercompany balances and transactions have been
eliminated. In accordance with Statement of Financial Accounting Standards No.
52, "Foreign Currency Translations," assets and liabilities of foreign
operations are translated at current rates of exchange while results of
operations are translated at average rates in effect for that period. Unrealized
translation gains or losses are shown as a separate component of shareholders'
equity.
For information concerning the Company's significant accounting policies,
reference is made to the Company's Annual Report on Form 10-KSB for the year
ended October 31, 1998. Results of operations for the nine months ended July 31,
1999 are not necessarily indicative of the operating results for the full year.
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Compuflight, Inc. and subsidiaries
Nine Months Ended July 31, 1999
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Signatures
In accordance with Section 13 or 15(d) of the Securities Exchange Act
of 1934, the registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Dated: December 3, 1999
COMPUFLIGHT, INC.
By: /s/ Duncan Macdonald
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Duncan Macdonald
Chief Executive Officer