-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S/Lr34wn8HXHzBwjoxIq8g1r/5aVJTN6d98103qSkBxBDvo9ZBmnaCWSsCU8taaJ B0kU03Z4frwAzFylGMJwIA== 0000312066-96-000002.txt : 19960816 0000312066-96-000002.hdr.sgml : 19960816 ACCESSION NUMBER: 0000312066-96-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DENCOR ENERGY COST CONTROLS INC CENTRAL INDEX KEY: 0000312066 STANDARD INDUSTRIAL CLASSIFICATION: AUTO CONTROLS FOR REGULATING RESIDENTIAL & COMML ENVIRONMENT [3822] IRS NUMBER: 840658020 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-09255 FILM NUMBER: 96611457 BUSINESS ADDRESS: STREET 1: 1450 WEST EVANS CITY: DENVER STATE: CO ZIP: 80223 BUSINESS PHONE: 3039221888 MAIL ADDRESS: STREET 2: 1450 W EVANS CITY: DENVER STATE: CO ZIP: 80223 10QSB 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-9255 DENCOR ENERGY COST CONTROLS, INC. (Exact name of small business issuer specified in its charter) Colorado 84-0658020 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 1450 West Evans, Denver, Colorado 80223 (Address of principal executive office) (Zip Code) (303) 922-1888 (Registrant's telephone number, including area code) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date. No par value per share: 3,671,304 shares outstanding at July 19, 1996. Transitional Small Business Disclosure Format Yes No X DENCOR ENERGY COST CONTROLS, INC. PART 1 - FINANCIAL INFORMATION Item 1. Financial Statements (Condensed Balance Sheets) ASSETS June 30 Dec. 31 1996 1995 (unaudited) CURRENT ASSETS: Cash $ 4,000 $ 3,800 Accounts Receivable,net of allowance for doubtful accounts of $9,200 67,700 77,000 Inventories 169,000 174,200 Other 16,900 8,300 TOTAL CURRENT ASSETS 257,600 263,300 Furniture & Equipment 213,300 213,300 Less Accumulated Depreciation (209,400) (207,400) 3,900 5,900 Other Receivables, net of allowance for doubtful receivables of $1,700 6,800 6,600 $268,300 $275,800 LIABILITIES & STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Notes Payable - Shareholders $ 93,400 $ 93,400 Accounts Payable 58,000 52,800 Accrued Compensation and Benefits 20,500 22,700 Accrued Interest - Shareholders 42,600 33,600 Warranty Reserve 6,300 6,300 Other 900 3,900 TOTAL CURRENT LIABILITIES 221,700 212,700 STOCKHOLDERS' EQUITY Common Stock, no par value, authorized 5,000,000 shares; issued & outstanding, 3,671,304 shares 1,147,600 1,147,600 Deficit (1,101,000) (1,084,500) Stockholders' Equity 46,600 63,100 $ 268,300 $ 275,800 See notes to condensed financial statements DENCOR ENERGY COST CONTROLS, INC. STATEMENTS OF OPERATIONS (unaudited) Three Months Six Months Ended June 30 Ended June 30 1996 1995 1996 1995 REVENUES: Net Sales $ 96,200 $ 179,100 $ 199,900 $ 285,800 Interest and Other 2,000 1,600 3,900 3,400 TOTAL REVENUES 98,200 180,700 203,800 289,200 COSTS AND EXPENSES; Cost of Products Sold 52,300 100,600 111,100 154,300 Selling 4,800 4,300 9,200 9,900 General and Administrative 25,200 34,500 56,000 65,100 Research and Development 15,900 19,700 34,800 36,500 Provision for doubtful accounts receivable Interest 4,800 4,200 9,200 8,900 103,000 163,300 220,300 274,700 NET EARNINGS (LOSS) $ (4,800) $ 17,400 $(16,500) $ 14,500 NET EARNINGS (LOSS) PER COMMON SHARE: Net Earnings (loss) $ (.0014) $ .0048 $ (.0045) $ .0040 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 3,671,304 3,671,304 3,671,304 3,671,304 See notes to condensed financial statements DENCOR ENERGY COST CONTROLS, INC. STATEMENT OF CASH FLOWS (unaudited) Six Months Ended June 30 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings $ (16,500) $ 14,500 Adjustments to reconcile net earnings to net cash used in operating activities: Depreciation 2,000 2,700 Provision for (recovery of) losses on doubtful accounts receivable Changes in operating assets and liabilities: Accounts and other receivables 9,100 (26,400) Inventories 5,200 (26,500) Other assets (8,600) (8,200) Accounts payable 5,200 25,100 Accrued compensation and benefits (2,200) 1,900 Accrued interest - shareholders 9,000 8,300 Warranty reserve 300 Other liabilities (3,000) (600) Total adjustments 16,700 (23,400) Net cash provided by (used in) operating activities 200 (8,900) NET INCREASE (DECREASE) IN CASH 200 (8,900) CASH AND CASH EQUIVALENTS, beginning of year 3,800 13,200 CASH AND CASH EQUIVALENTS, end of quarter $ 4,000 $ 4,300 Supplemental disclosure of cash flow information: Cash paid during the six months ended for interest $ 200 $ See notes to condensed financial statements DENCOR ENERGY COST CONTROLS, INC. NOTES TO CONDENSED FINANCIAL STATEMENTS A. The condensed Financial Statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of the Company, all accompanying unaudited condensed Financial Statements contain all adjustments, which consist only of recurring adjustments, necessary to present fairly the financial position as of June 30, 1996, and the results of operations and cash flows for the six months then ended June 30, 1996 and 1995. The results of operations for the six-month period ended June 30, 1996 and 1995, are not necessarily indicative of the results to be expected for the full year. It is suggested that these Condensed Financial Statements be read in conjunction with the Financial Statements and the notes therein included in the Company's latest annual report on Form 10-KSB. B. Long-Term Debt: As of the end of Second Quarter, 1996, the Company had no long-term debt. C. Common Stock: During the Second Quarter, 1996, the Company sold no stock. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NET SALES Second Quarter sales of $96,200 were approximately 46% less than sales for the comparable period in 1995. The decrease in sales was primarily the result of a decrease in sales of utility products sold through international distribution. COST AND EXPENSE Cost of Products Sold as a percentage of net sales decreased to 54.3% for the second quarter of 1996 compared with 56.2% for the same period in the prior year. The decrease was due to the decreased sales of utility products which have a higher cost per unit of sales than other products. DENCOR ENERGY COST CONTROLS, INC. Selling expenses as a percentage of sales increased to 4.9% for the second quarter compared to 2.4% for the same period in the prior year. The increase was due to decreased sales. General and Administrative expenses decreased from the same quarter in the prior year due to a decrease in personnel. Research and Development expenses decreased slightly compared to the same quarter in the prior year due to decreased development activity. EARNINGS The loss for the second quarter was $4,800 compared to earnings of $17,400 for the same period in the prior year. The loss was due to decreased sales. LIQUIDITY The Independent Auditor's Report on Dencor Energy Cost Controls, Inc. Financial Statements for the year ended December 31, 1995 included a "going concern" explanatory paragraph which means that the Auditors have expressed substantial doubt about the Company's ability to continue as a going concern. Management's plans in regards to the factors which prompted the explanatory paragraph are discussed in Note 2 to the Company's December 31, 1995 Financial Statements. The Company's current ratio is 1.16 at the Quarter ended June 30, 1996. Management believes the acid ratio (cash and accounts receivable divided by current liabilities) of .32 is within the limits of reasonable liquidity. PART II OTHER INFORMATION Items 1 through 6 would appear to require no answers according to the instructions. SIGNATURE 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. DENCOR ENERGY COST CONTROLS, INC. Registrant By: Maynard L. Moe President Date: July 26, 1996 -----END PRIVACY-ENHANCED MESSAGE-----