UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-QSB
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the transition period from
____________ to ____________
For the quarterly period ended: 3/31/2002
Commission File No.: 0-6421
SYNERGISTICS, INC.
Massachusetts 04-2283157
(State of Incorporation) (IRS Employer I.D. Number)
9 Tech Circle, Natick, MA 01760
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number (508) 655-1340
Indicate by check mark whether the registrant (1) filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act
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
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest practicable
date.
Common Stock $0.01 Par Value 10,285,806 shares outstanding as of
April 30, 2002
Transitional Small Business Disclosure Format (check one);
[ X ] Yes [ ] No
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
SYNERGISTICS, INC.
BALANCE SHEET
ASSETS
(UNAUDITED)
31-Mar-02 31-Dec-01
CURRENT ASSETS
Cash $ 49,872 $ 74,294
Accounts receivable 437,610 367,219
Allowance for doubtful accounts -23,000 -20,000
Inventories 323,376 322,708
Prepaid expenses 15,477 19,127
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TOTAL CURRENT ASSETS 803,335 763,348
EQUIPMENT, less allowances of $98,932
and $96,826 for depreciation 23,071 23,497
DEFERRED TAXES 355,500 355,500
--------- ---------
TOTAL ASSETS $1,181,906 $1,142,345
========= ==========
LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 280,677 $ 229,783
Accrued expenses and other
current liabilities 102,495 113,837
Amount due stockholder 100,000 100,000
------- -------
TOTAL CURRENT LIABILITIES 483,172 443,620
STOCKHOLDERS' EQUITY
Common stock (10,285,806 shares issued
including shares held in Treasury) 102,858 102,858
Additional paid-in capital 7,567,355 7,567,355
Retained earnings (deficit) -6,964,353 -6,964,353
------- -------
705,869 705,860
Cost of Common Stock held in Treasury -7,135 -7,135
------- -------
698,734 698,725
------- -------
TOTAL LIABILITIES, PREFERRED STOCK AND
SHAREHOLDERS' EQUITY $1,181,906 $1,142,345
========= =========
SYNERGISTICS, INC.
STATEMENT OF OPERATIONS
Three Months Ended March 31
Unaudited
2002 2001
Sales, net $ 739,139 $ 503,009
Interest income b 97 226
------- -------
739,236 503,235
Costs and expenses:
Cost of sales 504,922 421,586
Selling, general and
administrative expenses 234,027 254,761
Interest expense 296 515
------- -------
739,245 676,862
------- -------
Net gain (loss) -9 -173,627
Gain (loss) per share of Common Stock
Assuming no dilution $0.00 ($0.02)
Assuming full dilution $0.00 ($0.02)
SYNERGISTICS, INC.
STATEMENT OF CHANGES IN FINANCIAL POSITION
Three Months Ended March 31
Unaudited
2002 2001
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 9 $ -173,627
Adjustments to reconcile net loss to net cash (used) provided by
operating activities:
Depreciation 2,106 4,500
(Increase) decrease in accounts receivable -67,391 125,039
(Increase) decrease in inventories -668 19,154
(Increase) decrease in prepaid
expenses and other assets 3,650 -8,265
Increase (decrease) in accounts payable 50,894 -109,463
Increase (decrease) in accrued expenses
and other current liabilities -11,342 -18,136
Increase (decrease) in amounts
due shareholders 0 150,000
------- -------
TOTAL ADJUSTMENTS -22,751 162,829
NET CASH USED BY OPERATING ACTIVITIES -22,742 -10,798
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures -1,680 0
------- -------
NET CASH (USED) BY INVESTING ACTIVITIES -1,680 0
------- -------
NET CHANGE IN CASH -24,422 -10,798
CASH AT BEGINNING OF YEAR 74,294 64,880
------- -------
CASH AT END OF PERIOD $ 49,872 $ 54,082
======= =======
SYNERGISTICS, INC.
SELECTED INFORMATION
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles condensed or omitted. It is suggested that
these financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's Annual Report
Form 10-KSB. The results of operations for the period ended
September 30, 2001 are not necessarily indicative of the operating
results for the full year. Basis of Presentation. It is the opinion
of management that all significant adjustments which are routine
recurring adjustments which are necessary to present fairly such
interim financial statements are reflected in the accompanying
September 30, 2001 financial statements.
Accounting Policy for Revenues and Costs of Sales. Revenues are
recognized at the time of product shipment. Cost of sales is
computed using the "gross profit" method based upon historical
results of operations. Other cost, included in costs of sales, are
based upon such costs as actually incurred.
Inventories are comprised of the following:
31-Mar-02 31-Dec-01
Raw Materials 50,102 48,406
Finished Goods & WIP 273,274 274,302
------- -------
Total Inventories 323,376 322,708
*Allocation Based Upon Estimate
(Loss) per Common Share
The weighted average number of shares of common stock outstanding
used in computing (loss) per share does not include the effect of
the conversion of the stock options as the exercise price exceeds
the current market value of the security. The following schedule
sets forth the number of shares used in computing earnings per
share:
Unaudited
Three Months Ended March 31
2002 2001
Assuming no dilution
Common Stock Outstanding March 31, 2002 10,285,806 10,285,806
Shares held in Treasury 16,445 16,445
Total Shares Authorized 12,000,000 12,000,000
Item 2. Management's Discussion and Analysis or Plan of Operation.
For the three months ended March 31, 2002, the Company recorded
sales of $739,139 compared to $503,009 for the three months ended
March 31, 2001.
In the 1st Quarter of the year 2002 sales increased by 47% compared
to the 1st Quarter of the year 2001. The Company believes that this
increase in sales was due to an upturn in the National economy and
an increase in foreign sales.
At March 31, 2002 the Company had a backlog of $62,534 compared to
$36,102 at March 31, 2001.
Cost of sales as a percentage of sales decreased to 68% from 84% for
the three months ended March 31, 2002 and 2001, respectively. This
is mainly due to a significant increase in sales with labor and
material costs remaining somewhat constant.
For the period of three months ended March 31, 2002, selling and
general and administrative expenses decreased by $20,734 over the
period of three months ended March 31, 2001. This was mainly due to
a decrease in payroll and related expenses in the 2nd Quarter of
2001.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
No material legal proceedings are pending to which the Company is a
party or to which any of its property is subject.
Item 2. Changes in Securities and Use of Proceeds
There have been no changes in the instruments defining the rights of
holders of any class of securities of the Company during the
first three months of calendar year 2002.
Item 3. Defaults upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
No matter was submitted to a vote of the security holders during the
1st Quarter of 2002.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
None.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date April 23, 2002
By: /S/ WILLIAM M. TETRICK___ William M. Tetrick
Chairman of the Board
Date April 23, 2002
By: /S/ DAVID S. LONGWORTH_ David S. Longworth
President and Clerk