VALLEY FORGE SCIENTIFIC CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, September 30,
ASSETS 2001 2000
---------- -----------
(Unaudited) (Unaudited)
Current Assets:
Cash and cash equivalents $ 869,362 $ 965,240
Accounts receivable, net 870,534 627,255
Inventory 1,451,512 1,177,847
Prepaid items and other assets 133,272 114,042
Deferred income tax asset 130,140 209,314
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Total Current Assets 3,454,820 3,093,698
Property, Plant and Equipment, Net 155,300 168,535
Intangible Assets, Net 521,755 582,200
Other Assets 5,865 7,646
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$4,137,740 $3,852,079
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses $ 337,205 $ 182,185
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Total Current Liabilities 337,205 182,185
Deferred Income Tax Payable 5,074 20,661
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Total Liabilities 342,279 202,846
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Commitments and Contingencies
Stockholders' Equity:
Preferred stock - -
Common stock (no par, 20,000,000 shares
authorized, 8,067,812 shares issued and
outstanding at June 30, 2001 and
8,151,862 at September 30, 2000) 3,748,724 3,859,430
Retained earnings 46,737 (210,197)
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Total Stockholders' Equity 3,795,461 3,649,233
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$4,137,740 $3,852,079
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See accompanying notes to these financial statements.
VALLEY FORGE SCIENTIFIC CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Three Months Ended For the Nine Months Ended
June 30, June 30,
2001 2000 2001 2000
Net Sales $ 1,554,642 $ 1,262,207 $ 3,871,552 $ 3,078,261
Cost of Sales 750,679 644,544 1,903,629 1,637,180
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Gross Profit 803,963 617,663 1,967,923 1,441,081
--------- --------- --------- ---------
Other Costs:
Selling, general and
administrative 464,846 423,277 1,246,184 1,243,131
Research and development 83,733 101,385 277,474 273,275
Amortization 20,148 20,148 60,445 60,445
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Total Other Costs 568,727 544,810 1,584,103 1,576,851
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Income (Loss) from Operations 235,236 72,853 383,820 (135,770)
Other Income:
Interest income 6,431 7,925 30,651 26,437
----- ----- ------ ------
Income (Loss) before
Income Taxes 241,667 80,778 414,471 (109,333)
Provision for (Benefit of:)
Income Taxes 86,137 32,805 157,537 (28,475)
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Net Income (Loss) $ 155,530 $ 47,973 $ 256,934 $ (80,858)
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Earnings (Loss) Per Share:
Basic earnings (loss) per
common share $ 0.02 $ 0.01 $ 0.03 $ (0.01)
==== ==== ==== ====
Diluted earnings
(loss) per
common sahre $ 0.02 $ 0.01 $ 0.03 $ (0.01)
==== ==== ==== ====
Basic common shares
outstanding 8,067,812 8,187,465 8,086,635 8,205,821
Diluted common shares
outstanding 8,140,984 8,210,394 8,137,107 8,205,821
See accompanying notes to these financial statements.
VALLEY FORGE SCIENTIFIC CORP. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the Nine Months Ended
June 30,
2001 2000
Cash Flow from Operating Activities:
Net income (loss) $ 256,934 $ (80,858)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 88,905 89,504
Changes in assets and liabilities, net
of effect from:
Increase in accounts receivable (243,279) (397,913)
Increase in inventory (273,665) (290,523)
Decrease (Increase) in deferred
income tax benefit 79,174 (22,721)
Increase in prepaid items and other
current assets (19,230) (31,673)
Decrease in other assets 1,781 265
Increase in accounts payable and
accrued expenses 155,020 151,204
Decrease in deferred income taxes
payable (15,587) -
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Net cash provided by (used in)
operating activities 30,053 (582,715)
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Cash Flows from Investing Activities:
Purchase of property, plant and equipment (15,225) (1,138)
Acquisition of other assets - (3,825)
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Net cash used in investment activities (15,225) (4,963)
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Cash Flows from Financing Activities:
Purchase and retirement of common stock (110,706) (120,731)
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Net cash used in financing activities (110,706) (120,731)
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Net Decrease in Cash and Cash Equivalents (95,878) (708,409)
Cash and Cash Equivalents, beginning of period 965,240 1,158,462
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Cash and Cash Equivalents, end of period $ 869,362 $ 450,053
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Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Income Taxes $ - $ -
==== ====
Interest $ - $ -
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See accompanying notes to these financial statements.