SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For The Three Months Ended March 31, 1998
Commission file number:2-85175W
ELECTRO-KINETIC SYSTEMS, INC.
(Name of small business issuer in its charter)
PENNSYLVANIA 22-1954716
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
270 Rocky Run Road, Glen Gardner New Jersey 08826
(Address of principal executive offices) (Zip Code)
Issuer's telephone number 908-537-4378
Securities registered pursuant to section 12(b) of the Act: None
Securities registered pursuant to section 12(g) of the Act:
Class A Common Stock
(Title of class)
Check whether issuer (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 ___.
Number of shares of Class A Common Stock, no par value, issued as of
March 31, 1998: 30,166,069 (Common Stock outstanding 20,431,069 and to
be issued 9,735,000)
Transitional Small Business Disclosure Format
Yes ___ No _X_.
ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
The following discussion should be read in conjunction with the selected
financial data and the financial statements appearing elsewhere in this report.
Management Report
General
Following the bankruptcy of its principal distributor in March 1995,
the Company suspended all operations related to radon testing and
analysis of environmental hazards. In 1996, the Company abandoned its efforts
in the magazine publishing field.
Results of Operations
The only recurring item of income (loss) is the Company's equity in
its 50% owned subsidiary, Printone Media.
Liquidity and Capital Resources
Working capital declined as a result of operating expenses for
the three months ended March 31, 1998 in the amount of $19,315 and from the
reclassification of the amounts due to officers of $56,314 from long term to
current liabilities.
For the Company to become a viable entity, it must operate
profitably and raise sufficient capital to fund its operations. The Company is
making continuing efforts in this regard but there is no assurance of success.
The Company previously acquired certain preliminary designs for
potential developments of computer decision models for trading securities
and in the fields of medical compliance and book publishing. It is currently
seeking financing to continue the developments as well as to enter into
strategic partnerships with other companies in these and related fields.
There is no assurance of success in these endeavors.
Other
The Company's unconsolidated affiliate has lost money since
acquisition; accordingly during the second quarter of 1998, the Company
will establish a reserve of $85,000 or about $0.03 per share against the
carrying value of the Investment in and Advances to this affiliate.
The Company is anticipating merging DMA Radtech, Inc. with another entity
and selling some of its' proprietary developments. The anticipated profit
from this transaction should be approximately $40,000. There is no
assurance that this transaction will be completed or on these terms.
PART 11 - OTHER INFORMATION
Item 1: Legal Proceedings:
NONE
Item 2: Changes in Securities:
There have been no instruments defining the rights of any holder of any
class of any registered security which has been materially modified.
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 of form 8-K:
See Reports filed on 01/03/96 and 01/11/96.
SIGNATURES
Pursuant to the requirements of Section 13 or 15 ( d )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:
ELECTRO-KINETIC SYSTEMS, INC.
Dated : __________________ By:__________________________
Julius Cherny, PhD., President
Pursuant to the requirements of the Securities and Exchange Act of
1934, this report has been signed below by the following person(s) on behalf
of the Registrant and in the capacities indicated and on the Dates indicated.
SIGNATURE CAPACITY DATED
_____________________________ Chairman of the ___________
Julius Cherny, PhD. Board, Director (DATE)