================================================================================
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Under Section 13 of 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended December 31, 2001 Commission File Number 0-16397
APPLIED SPECTRUM TECHNOLOGIES, INC.
-----------------------------------
(Exact name of registrant as specified in its charter)
Minnesota 41-1419457
--------- ----------
(State or other jurisdiction of IRS Employer Identification Number
incorporation or organization)
c/o Norwood Venture Corp.
65 Norwood Avenue
Upper Montclair, NJ 07043
Registrant's Telephone Number
Including Area Code
(973) 783-1117
Not Applicable
--------------
(Former name, former address and former fiscal year,
if changed from last report)
------------------------------------
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 [_]
------------------------------------
The number of shares of registrant's Common Stock, par value $.01 per share,
outstanding as of January 31, 2002, was 2,953,941.
================================================================================
APPLIED SPECTRUM TECHNOLOGIES, INC.
INDEX
PAGE
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
----------------------------
Statements of Operations for the three 3
months ended December 31, 2001 and 2000
Balance Sheets as of December 31, 2001 4
and September 30, 2001
Statements of Cash Flows for the 5
three months ended December 31, 2001 and 2000
Notes to Financial Statements - 6
December 31, 2001
Item 2. Management's Discussion and Analysis of 7
-----------------------------------------------
Financial Condition and Results of Operations
---------------------------------------------
Part II. Other Information 8
Signature 9
2
PART 1. FINANCIAL INFORMATION
APPLIED SPECTRUM TECHNOLOGIES, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED
DECEMBER 31
----------------------------
2001 2000
----------- -----------
REVENUES
Net sales $ -- $ --
Sublicensing revenues -- --
Total revenues -- --
Cost of product sold -- --
----------- -----------
Gross profit -- --
General and administrative expense 130 5,542
----------- -----------
Operating profit (loss) (130) (5,542)
Interest expense -- --
Interest income 192 3,925
Other income (expense) -- --
----------- -----------
Net profit (loss) $ 62 $ (1,617)
Net profit (loss) per share $ 0.00 $ 0.00
Weighted average number of shares outstanding 2,953,941 2,953,941
See notes to financial statements
3
APPLIED SPECTRUM TECHNOLOGIES, INC.
BALANCE SHEETS
(UNAUDITED)
DECEMBER 31, SEPTEMBER 30,
2001 2001
---- ----
ASSETS
CURRENT ASSETS
Cash $ 36,968 $ 36,906
Other -- --
Total current assets 36,968 36,906
PROPERTY AND EQUIPMENT
Equipment at fair market value -- --
------------ ------------
$ 36,968 $ 36,906
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 8,035 $ 8,035
Other accrued expenses 18,626 18,626
------------ ------------
Total current liabilities $ 26,661 $ 26,661
SHAREHOLDERS' EQUITY
Common Stock, par value $.01 per share
authorized 10,000,000 shares, issued
and outstanding - 2,953,941 29,539 29,539
Additional paid-in capital 16,044,973 16,044,973
Accumulated deficit (16,064,205) (16,064,267)
------------ ------------
10,307 10,245
------------ ------------
$ 36,968 $ 36,906
============ ============
See notes to financial statements
4
APPLIED SPECTRUM TECHNOLOGIES, INC.
STATEMENT OF CASH FLOWS
(UNAUDITED)
THREE MONTHS ENDED
DECEMBER 31
-----------------------
OPERATING ACTIVITIES 2001 2002
--------- ---------
Net profit (loss) $ 62 $ (1,617)
Net cash flow from (used for)
working capital -- --
Net cash from operating activities 62 (1,617)
INVESTING ACTIVITIES -- --
Net cash from investing activities -- --
--------- ---------
-- --
FINANCING ACTIVITIES
Proceeds from issuance of stock -- --
--------- ---------
Net cash from financing activities -- --
INCREASE (DECREASE) IN CASH 62 (1,617)
Cash beginning of period 36,906 262,376
--------- ---------
CASH END OF PERIOD $ 36,968 $ 260,759
========= =========
See notes to financial statements
5
APPLIED SPECTRUM TECHNOLOGIES, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE A-- BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have been
included. For further information, refer to the financial statements and
footnotes thereto included in the Company's annual report on Form 10-K for the
year ended September 30, 2001.
NOTE B-- WEIGHTED AVERAGE SHARES
Weighted average number of shares includes shares of common stock outstanding
during the period. Outstanding stock options and warrants are not included in
the loss per share calculations as they are considered anti-dilutive.
NOTE C-- SIGNIFICANT EVENTS
At a Special Shareholders' Meeting on November 17, 2000, the Shareholders
revoked the Plan of Dissolution. In August, 2001 a liquidating dividend of
approximately $229,000 was paid pro-rata to shareholders.
NOTE D-- OWNERSHIP
On January 20, 1995, Norwood Venture Corp. (Norwood), the Company's major
shareholder, exercised warrants to 957,877 shares of common stock at a price of
$.01 per share. Following the exercise, Norwood owned 2,282,564 shares or 77.27%
of the Company.
6
APPLIED SPECTRUM TECHNOLOGIES, INC.
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 2001
- -------------------------------------------------------
Revenues
- --------
The Company was inactive and had no sales revenue during the period.
Expenses
- --------
General and Administrative expenses of $130 during the period were for
accounting services.
Interest Income
- ---------------
Interest income of $192 in the period was earned on cash balances. Interest
income of $3,925 in 2000 was earned on higher cash balances that were
subsequently reduced by the liquidating divident of $229,000, paid in August,
2001.
Capital Resources and Liquidity
- -------------------------------
The Company's cash position was virtually unchanged during the period.
7
Part II. Other Information
None.
8
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this Quarterly Report on Form 10-Q for the period
ended December 31, 2001 to be signed on its behalf by the undersigned thereunto
duly authorized.
APPLIED SPECTRUM TECHNOLOGIES, INC.
Date: July 1, 2002 /s/ Mark R. Littell
----------------------------
Mark R. Littell
Chief Executive Officer
/s/ Mark R. Littell
----------------------------
Mark R. Littell
Director
9