SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: May 31, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File No.: 0-16035
SONO-TEK CORPORATION
(Exact name of registrant as specified in its charter)
New York 14-1568099
(State or other jurisdiction of ( IRS Employer
incorporation or organization) Identification No.)
2012 Rt. 9W, Milton, NY 12547
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone no., including area code: (845) 795-2020
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 (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 X NO _____
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Outstanding as of
Class July 12, 2001
Common Stock, par value $.01 per share 9,092,354
SONO-TEK CORPORATION
INDEX
Part I - Financial Information Page
Item 1 - Consolidated Financial Statements: 1 - 3
Consolidated Balance Sheets - May 31, 2001 (Unaudited) and
February 28, 2001 1
Consolidated Statements of Operations - Three Months Ended
May 31, 2001 and 2000 (Unaudited) 2
Consolidated Statements of Cash Flows - Three Months Ended
May 31, 2001 and 2000 (Unaudited) 3
Notes to Consolidated Financial Statements 4 - 8
Item 2 - Management's Discussion and Analysis of Financial Condition
and Results of Operations 9 - 11
Item 3 - Quantitative and Qualitative Disclosure About Market Risk 11 - 12
Part II - Other Information 12
Signatures 13
SONO-TEK CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS
May 31, February 28,
2001 2001
Current Assets Unaudited__ Audited_
Cash and cash equivalents $ 148,629 $ 3,232
Accounts receivable (less allowance of
$29,769 and $116,581 at May 31 and February 28,
respectively) 565,497 593,605
Inventories (Note 4) 698,348 796,696
Prepaid expenses and other current assets 88,738 97,093
Total current assets 1,501,212 1,490,626
Equipment, furnishings and leasehold improvements
(less accumulated depreciation of $511,007
and $508,928 at May 31 and February 28,
respectively) 186,383 209,675
Intangible assets, net:
Patents and patents pending (Note 1) 24,277 25,640
Deferred financing fees 23,683 25,459
Total intangible assets 47,960 51,099
Net assets of discontinued operations (Note 3) 520,808 1,759,276
Net investment in affiliate 8,051 8,068
Other assets 7,417 100
TOTAL ASSETS $2,271,831 $3,518,844
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable $610,755 $841,267
Accrued expenses 356,945 369,386
Revolving Line of Credit 350,000 350,000
Short term loans-related parties (Notes 6) 286,084 459,605
Current maturities of long term debt 22,138 21,777
Current maturities of subordinated mezzanine
debt (Note 7) 188,896 76,390
Total current liabilities 1,814,818 2,118,425
Subordinated mezzanine debt 529,109 411,547
Long term debt, less current maturities 37,629 43,311
Subordinated convertible loans 150,000 150,000
Estimated future costs of discontinued
operations (Note 3) 1,020,934 1,306,814
Total liabilities 3,552,490 4,030,097
Commitments and Contingencies - -
Put Warrants (Note 7) 174,778 94,111
Stockholders' Equity
Common stock, $.01 par value; 25,000,000
shares authorized, 9,092,354 shares issued
and outstanding at May 31 andFebruary 28,
respectively 90,924 90,924
Additional paid-in capital 5,568,692 6,007,037
Accumulated deficit (7,115,053) (6,703,325)
Total stockholders' deficiency (1,455,437) (605,364)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIENCY $2,271,831 $3,518,844
See notes to consolidated financial statements.
SONO-TEK CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended May 31,
Unaudited
2001 2000
Net Sales $704,285 $967,005
Cost of Goods Sold 320,180 432,987
Gross Profit 384,105 534,018
Operating Expenses
Research and product development costs 85,536 104,283
Marketing and selling expenses 178,144 201,107
General and administrative costs 137,359 116,315
Total Operating Expenses 401,039 421,705
Operating (Loss) Income (16,934) 112,313
Interest Expense (43,429) (116,424)
Loss from Affiliate (9,858) (34,004)
Interest and Other Income 1,472 1,607
Loss from Continuing Operations
Before Income Taxes (68,749) (36,508)
Income Tax Expense 0 0
Loss from continuing operations (68,749) (36,508)
Loss from discontinued operations (781,324) (227,221)
Net Loss $(850,073) $(263,729)
Basic Loss Per Share
Loss from continuing operations $(0.01) $(0.00)
Loss from discontinued operations $(0.08) $(0.03)
Net loss $(0.09) $(0.03)
Weighted Average Shares - Basic and Diluted 9,092,354 8,953,156
See notes to consolidated financial statements.
SONO-TEK CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended May 31,
Unaudited
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(850,073) $(263,729)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Non-cash charge for issuance of warrants 0 75,831
Imputed interest expense on subordinated
mezzanine debt 10,735 5,436
Loss on equity investment (8,052) 1,394
Depreciation and amortization 20,278 16,656
Provision for doubtful accounts (86,812) 3,000
(Increase) decrease in:
Accounts receivable 114,920 86,806
Inventories 98,348 4,376
Prepaid expenses and other current assets 9,107 (4,831)
Increase (decrease) in:
Accounts payable and accrued expenses (242,952) (41,044)
Net Cash Used In Continuing Operations (934,501) (116,105)
Net Cash Provided By Discontinued Operations 1,042,668 447,160
Net Cash Provided By Operating Activities 108,167 331,055
CASH FLOW FROM INVESTING ACTIVITIES:
Sale (Purchase) of equipment and furnishings 6,153 (73,796)
Net Cash Provided By (Used In) Investing Activities 6,153 (73,796)
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from revolving line of credit 0 15,693
Proceeds from bank loan for production equipment 0 45,359
Proceeds from subordinated mezzanine debt 300,000 0
Proceeds from exercise of warrants 0 55,692
Proceeds from stock options 0 1,602
Repayments of short term borrowings (173,521) (126,000)
Repayments of subordinated mezzanine debt 0 (100,000)
Repayments of note payable and equipment loans (5,322) (2,671)
Net Cash Provided By (Used In) Continuing Operations 121,157 (110,325)
Net Cash Used In Discontinued Operations (90,080) (75,889)
Net Cash Provided By (Used In) Financing Activities 31,077 (186,214)
NET INCREASE IN CASH AND CASH EQUIVALENTS 145,397 71,045
CASH AND CASH EQUIVALENTS
Beginning of period 3,232 6,131
End of period $148,629 $77,176
SUPPLEMENTAL DISCLOSURE:
Interest paid $43,197 $40,554
See notes to consolidated financial statements.
SONO-TEK CORPORATION
Notes to Consolidated Financial Statements
Three Months Ended May 31, 2001 and 2000
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
Consolidation - The accompanying consolidated financial statements of Sono-Tek
Corporation, a New York Corporation (the "Company"), include the accounts of the
Company and its wholly owned subsidiary, Sono-Tek Cleaning Systems, Inc., a New
Jersey Corporation ("SCS"), which the Company acquired on August 3, 1999 (the
"Acquisition"). On April 23, 2001, the Company adopted a plan to discontinue the
operations of the cleaning and drying systems segment, which includes SCS and
Serec. These operations were discontinued and were classified as discontinued
operations. All significant intercompany accounts and transactions are
eliminated in consolidation.
Interim Reporting - The attached summary consolidated financial information does
not include all disclosures required to be included in a complete set of
financial statements prepared in conformity with accounting principles generally
accepted in the United States of America. Such disclosures were included with
the financial statements of the Company at February 28, 2001, and included in
its report on Form 10-K. Such statements should be read in conjunction with the
data herein. The financial information reflects all adjustments which, in the
opinion of management, are necessary for a fair presentation of the results for
the interim periods presented. The results for such interim periods are not
necessarily indicative of the results to be expected for the year. Goodwill -
Goodwill is being amortized on a straight-line basis over 15 years. Goodwill is
written off if the asset or assets to which it relates becomes impaired Patent
and Patent Pending Costs - Cost of patent applications are deferred and charged
to operations over seventeen years for domestic patents and twelve years for
foreign patents. However, if it appears that such costs are related to products
which are not expected to be developed for commercial application within the
reasonably foreseeable future, or are applicable to geographic areas where the
Company no longer requires patent protection, they are written off to
operations. The accumulated amortization is $87,409 and $86,056 at May 31, 2001
and February 28, 2001, respectively. Computation of Loss Per Share - There are
no reconciling items in the computation of loss per share, as all items are
antidilutive. Reclassifications - Certain February 28, 2001 balances have been
reclassified to conform with the current period presentation.
NOTE 2: FINANCIAL CONSIDERATIONS AND MANAGEMENT'S PLANS
Both the Company and its wholly owned subsidiary, SCS, incurred losses in Fiscal
Year 2000 and 2001. These losses led to an increase in the Company's debt and
negative cash flow. During Fiscal Year 2001, the Company increased its borrowing
from a bank, an investment banker, and officers and directors of the Company. At
February 28, 2001, the Company was late on its payments to various vendors and
in default on its subordinated mezzanine debt with Norwood Venture Corp.
("Norwood") for failure to make interest payments when due. The Company
subsequently paid the interest and the default was cured. In addition, during
the three months ended May 31, 2001, SCS was in default on a bank note for
failure to make interest and principal payments when due. This default was cured
in July 2001 when SCS brought all its payments up to date. During Fiscal Year
2001, the Company received additional cash from the sale of common stock and the
exercise of warrants. These influxes of cash were not able to provide the
Company with adequate amounts to pay its debts. The Company continues to have
difficulty paying vendors and purchasing necessary raw materials. During the
quarter ended May 31, 2001, the Company took actions to limit its losses and
reduce negative cash flow. The spraying systems segment was downsized to reflect
the decline in market demand, and the sales force was refocused to increase
nozzle sales instead of fluxer sales. The cleaning and drying segment,
represented by SCS, terminated production of capital equipment. By decreasing
operating costs and terminating thirty-two employees, the Company anticipates
positive cash flow beginning in the second quarter of Fiscal Year 2002. It is
anticipated that this income will be sufficient to cover current operating
costs, and will permit partial payments to vendors and payment of the required
principal payments on all debt. During the first quarter of Fiscal Year 2002,
the Company received additional financing from Norwood, directors, an officer
and an affiliate of the Company. At present, the Company may not have access to
adequate funds to meet its operating and financial needs and to repay its past
due vendor obligations, creditors may take legal action for the repayment of
past due indebtedness, and the Company may not be able to restructure its past
due obligations. In order to decrease its losses, the Company adopted a plan to
discontinue operations of cleaning and drying systems segment during the first
quarter of Fiscal 2002 (see Note 3). The Company is refocusing on the sales of
ultrasonic nozzles and attempting to increase sales through diversifying the
product line while decreasing the reliance on the electronics industry. Although
the results of these actions cannot be predicted, the Company believes that
these steps are appropriate and will help the Company return to profitability in
Fiscal Year 2002. The consolidated financial statements do not include any
adjustments relating to the recoverability and classification of recorded
asset amounts or the amounts and classification of liabilities that might be
necessary should the Company be unable to continue as a going concern. The
Company's continuation as a going concern is dependent upon its ability to
generate sufficient cash flow to meet its obligations on a timely basis, to
obtain additional financing and refinancing as may be required, and to timely
dispose or sell off assets related to its discontinued operating segment. NOTE
3: DISCONTINUED OPERATIONS In order to decrease its losses, the Company adopted
a plan to discontinue the operations of cleaning and drying systems segment
during the first quarter of Fiscal 2002. The accompanying statements of
operations have been reclassified so that the results for the cleaning and
drying systems segment are classified as discontinued operations for all periods
presented. The assets and liabilities of the discontinued operations have been
reclassified in the May 31, 2001 and balance sheet as "net assets of
discontinued operations" and "estimated future costs of discontinued
operations". The statements of cash flows and related notes to the consolidated
financial statements have also been reclassified to conform to the discontinued
operations presentation. Summary operating results of the discontinued
operations for each fiscal quarter are as follows: May 31, May 31, 2001 2000
Revenues $891,665 $1,006,028 Expenses 1,672,989 1,233,249 Loss from discontinued
operations $(781,324) $(227,221) The Company wrote off goodwill in the amount of
$477,377 during the three month period ended May 31, 2001. This goodwill is
related to the acquisition of its discontinued operations and was deemed to be
impaired as the Company estimated that it would not likely realize positive
future cash flows from the residual assets and uncompleted orders of this
business. A summary of the net assets of the discontinued operations is as
follows:
May 31, February 28,
2001 2001
Assets
Cash $22,328 $183
Accounts Receivable, net 262,859 551,028
Inventory, net 133,382 631,970
Prepaid Expenses 10,851 783
Total current assets 429,420 1,183,963
Goodwill 10,000 487,377
Equipment and furnishings, net 81,388 87,935
Total assets $520,808 $1,759,276
Liabilities
Current Liabilities
Notes payable $156,595 $238,917
Accounts payable 514,599 603,146
Accrued expenses 247,386 239,200
Customer deposits 67,500 182,940
Total current liabilities 986,081 1,326,524
Long term debt 34,853 42,611
Total liabilities 1,020,934 1,306,814
Net (liabilities) assets $(500,126) $452,462
NOTE 4: INVENTORIES
Inventories at May 31, 2001 are comprised of:
Finished goods $224,284
Work in process 92,232
Consignment 9,037
Raw materials and subassemblies 587,076
Total 912,629
Less: Allowance (214,281)
Net inventories $698,348
NOTE 5: LONG-TERM EQUITY INVESTMENT - NET
The Company has a 49% ownership interest in PNR America, LLC, a Delaware limited
liability company. During the three month period ended May 31, 2001, PNR America
incurred a loss of $20,119 and the Company recorded its share of this loss in
the amount of $9,858. The Company is currently negotiating the sale of its share
of equity and the resolution of expenditure items that were spent on behalf of
PNR America. Shared rent, utilities and other minimal costs are being recorded
on the Company's books pending final resolution of negotiations.
NOTE 6: RELATED PARTY TRANSACTIONS
Short term loans - related parties - From time to time the Company has required
short term loans to meet its cash requirements. All of these loans have been
provided by officers and directors of the Company, at the fixed rate of prime
plus 2% at the date of the loans (9.75% to 11.50% at May 31, 2001). During the
three month period ended May 31, 2001, a total of $173,521 plus interest was
repaid to these individuals. Accrued interest on these short term loans was
$39,568 and $37,075 at May 31, 2001 and February 28, 2001, respectively. During
the three month period ended May 31, 2001 and 2000, interest expense relating to
these loans was $5,099 and $4,766, respectively
On April 30, 2001, in order to induce the advance of the additional $300,000 by
Norwood, certain of the Company's directors, an officer and an affiliate of the
Company participated in the amount of $216,750 in the additional subordinated
mezzanine financing (see Note 7).
NOTE 7: SUBORDINATED MEZZANINE DEBT
On April 30, 2001, Norwood amended the Norwood Note and Warrant Purchase
Agreement to increase the Note to $850,000 and the Warrant shares to 2,077,777.
The monthly principal payments to commence in October 2001 are increased to
$23,612 per month accordingly, and the balance sheet reflects this monthly rate
in reporting the related current maturities. The additional 733,333 Warrant
shares are valued at $80,667 which is accounted for as a discount and is being
imputed as additional interest expense over the term of the loan.
Certain of the Company's directors, an officer and an affiliate are participants
with Norwood in its subordinated mezzanine financing (see Note 6).
SONO-TEK CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Forward-Looking Statements
Certain statements made in this report may constitute "forward-looking
statements" within the meaning of the Federal Securities Laws. Such
forward-looking statements include statements regarding the intent, belief or
current expectations of the Company and its management and involve known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among other things, the
following:
- - the Company's access to adequate funds to meet the Company's
operating and financial needs and to repay its past due debt, and the Company's
ability to continue as a going concern if it is unable to access adequate
financing;
- - the possibility that the Company's creditors may take legal action for the
repayment of past due indebtedness and the ability of the Company to continue as
a going concern if any such action is taken;
- - the Company's ability to restructure its debt;
- - the possibility of additional impairment write downs of assets;
- - the Company's ability to respond to competition in its markets;
- - general economic conditions in the Company's markets;
- - the risk that the Company's analyses of these risks could be incorrect
and/or the strategies developed to address them could be unsuccessful; and
- - various other factors discussed in the Annual Report on Form 10-K.
The Company undertakes no obligation to update publicly any forward-looking
statement.
Liquidity and Capital Resources
The Company's working capital deficiency decreased $314,193 from a working
capital deficiency of $627,799 at February 28, 2001 to $313,606 at May 31, 2001.
The decrease in working capital deficiency was a result of an increases in cash
of $145,000 and short term mezzanine debt of $113,000, decreases in accounts
receivable of $98,000 that was offset by decreases in related party loans of
$146,000 and accounts payable and accrued expenses of $270,000. The
stockholders' deficiency increased $850,073 from $605,364 at February 28, 2001
to $1,455,437 at May 31, 2001. The increase in stockholders' equity was the
result of the loss of $850,073 for the three months ended May 31, 2001.
On April 30, 2001, the Company amended its agreement with Norwood pursuant to
which the Company increased its five year loan in the principal amount of
$300,000 of which $216,750 was loaned by certain of the Company's directors, an
officer and an affiliate of the Company. The terms of the loan require interest
payments only through September 2002 followed by monthly payments of $23,612
plus interest through September 30, 2004. The Company was also required to grant
a warrant to purchase 733,333 shares of the Company's common stock at an
exercise price of $0.10 per share, which can be put to the Company. Such
warrants were valued at $80,667, which is accounted for as a discount and will
be imputed as additional interest expense over the term of the loan.
The Company currently has a $350,000 line of credit with a bank. The loan is
collateralized by accounts receivable, inventory and all other personal property
of the Company and is guaranteed by James Kehoe, former Chief Executive Officer
of the Company and is subject to certain priority liens on SCS assets. As of May
31, 2001 the outstanding balance was $350,000. Subsequent to May 31, 2001, the
Company paid $6,000 in principal to the bank in order to comply with terms of
the loan.
Due to the consolidated Company losses incurred during Fiscal Years 2001, 2000
and 1999, the Company was required to borrow on a short term basis from officers
and directors of the Company. During the three month period ended May 31, 2001
$173,521 plus interest was repaid. As of May 31, 2001, the balance owed the
officers and directors was $286,084.
During the first quarter of Fiscal Year 2002, SCS received a default notice
regarding its bank loan. This default was cured in July 2001 when SCS brought
all its payments up to date. Due to the limited operations of SCS, the cash
generated may not be sufficient to complete the monthly principal and interest
payments through January 2002, when the loan matures.
It is anticipated that future cash flows may not allow the Company to repay its
current debt and trade creditors in a timely manner. During the first quarter of
Fiscal Year 2002, the Company discontinued the production of capital equipment
in the cleaning and drying systems segment and began to focus on its original
product lines, specifically the sales of ultrasonic nozzles. Although there can
be no assurances, management believes that by taking these steps the Company
will be able to return to profitability in the remaining quarters of Fiscal Year
2002.
Results of Continuing Operations
For the three months ended May 31, 2001, the Company's sales decreased $262,720
to $704,285 as compared to $967,005 for the three months ended May 31, 2000. The
decrease was a result of a decrease in fluxer sales of $305,000 offset by an
increase in MCS and specials of $35,000.
The Company's gross profit decreased $148,913 to $384,105 for the three months
ended May 31, 2001 from $534,018 for the three months ended May 31, 2000. The
decrease was primarily a result of decreased sales of the Company's products
that were offset by the related material costs and labor. The gross profit
margin was 55% of sales for the three months ended May 31, 2001 and 2000.
Research and product development costs decreased $18,747 to $85,536 for the
three months ended May 31, 2001 from $104,283 for the three months ended May 31,
2000. The decrease was a result of decreased compensation and fringe benefits
due to a smaller engineering staff.
Marketing and selling costs decreased $22,963 to $178,144 for the three months
ended May 31, 2001 from $201,107 for the three months ended May 31, 2000. The
decrease was a result of decreases in trade show of $24,000 and professional
fees of $8,000 that were offset by increases in personnel costs and travel of
$11,000.
General and administrative costs increased $21,044 to $137,359 for the three
months ended May 31, 2001 from $116,315 for the three months ended May 31, 2000.
The increase was primarily attributable to increased personnel costs of $4,000,
increased travel expense of $7,000, increased banks fees of $4,000 offset by
reduced consulting expense of $5,000.
Interest expense decreased $72,995 to $43,429 for the three months ended May 31,
2001 from $116,424 for the three months ended May 31, 2000. The decrease is
primarily due to a non- recurring, non-cash charge of $64,033 reflecting the
value of warrants issued in the quarter ended May 31, 2000.
The Company's net loss before discontinued operations increased $32,241 from a
loss of $36,508 or $(0.00) per share for the three months ended May 31, 2000 to
a loss of $68,749 or $(0.01) per share for the three months ended May 31, 2001.
Results of Discontinued Operations
The Company's loss from discontinued operations increased by $554,103 from a
loss of $227,221 for the three months ended May 31, 2000 to a loss of $781,324
for the three months ended May 31, 2001. The increase in the loss was due to the
impairment of goodwill of $477,377, an increase in the inventory reserves, plus
the lack of sales to support the necessary amount of overhead.
SONO-TEK CORPORATION
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company is exposed to market risk related to changes in interest rates. The
interest rate on the Company's debt is based on fluctuations in the prime rates.
If the prime rate increased by 1
percentage point from the levels at February 29, 2000, the negative effect on
the Company's results of operations would approximate $1,000 for the quarter
ended May 31, 2001.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities and Use of Proceeds.
None
On April 30, 2001, the Company issued 733,333 Warrant shares to Norwood
Venture Corporation as part of the increase in the Norwood Note and Warrant
Purchase Agreement. The above issuance of warrants was made in reliance on
exemptions from registration provided under Section 4(2) of the Securities Act
of 1933, as amended.
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
(a) Exhibits
None
(b) Reports on Form 8-K
On May 30, 2001, the Company filed a Current Report on Form 8-K announcing the
resignation of James L. Kehoe as CEO of the Company, the appointment of Dr.
Christopher L. Coccio as CEO and President, the Company's adoption of a plan to
discontinue the operations of its cleaning systems operating segment, the
Company's preliminary agreement with the majority shareholder of PNR America to
purchase the Company's interest in PNR America, and certain short term financing
obtained by the Company.
On July 6, 2001, the Company filed a Current Report on Form 8-K announcing that
the Company had engaged Radin, Glass & Co., LLP to audit the Company's February
28, 2002 financial statements, and filed as an exhibit to such Current Report a
letter from Deloitte & Touche LLP confirming the cessation of the Company's
client-auditor relationship with Deloitte & Touche LLP.
SIGNATURES
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.
Dated: July 13, 2001
SONO-TEK CORPORATION
(Registrant)
/s/ Christopher L. Coccio
By: ____________________________________
Christopher L. Coccio
Chief Executive Officer and President
/s/ Kathleen N. Martin
By: ____________________________________
Kathleen N. Martin
Treasurer & Chief Financial Officer
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