-----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, DhKnIy/tKQaTA03lpa+hNIqJPbqIPWr+I6d3xX3ir5fDkdIVqPPEvDXenqebwK8Y h7qJRC2DipToK9DVdthIGw== 0000312066-98-000003.txt : 19980514 0000312066-98-000003.hdr.sgml : 19980514 ACCESSION NUMBER: 0000312066-98-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980513 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: SEC FILE NUMBER: 000-09255 FILM NUMBER: 98618519 BUSINESS ADDRESS: STREET 1: 1450 WEST EVANS CITY: DENVER STATE: CO ZIP: 80223 BUSINESS PHONE: 3039221888 MAIL ADDRESS: STREET 1: 1450 W EVANS 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 March 31, 1998 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 as 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 issued, at April 24, 1998. 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 March 31 December 31 1998 1997 (unaudited) CURRENT ASSETS: Cash $ 700 $ 8,300 Accounts Receivable, net of allowance for doubtful accounts of $6,700 70,900 20,500 Inventories 135,900 149,700 Other 16,800 6,100 TOTAL CURRENT ASSETS 224,300 184,600 Furniture & Equipment 213,300 213,300 Less Accumulated Depreciation (213,300) (213,300) - - Long term receivables, net of allowance for doubtful receivables of $9,400 16,800 17,100 $241,100 $201,700 LIABILITIES & SHAREHOLDERS' DEFICIT CURRENT LIABILITIES: Notes Payable - Shareholders $127,500 $118,500 Accounts Payable 55,500 51,500 Accrued Compensation and Benefits 55,600 36,600 Accrued Interest - Shareholders 78,800 72,200 Warranty Reserve 6,300 6,300 Other 1,700 2,100 TOTAL CURRENT LIABILITIES 325,400 287,200 SHAREHOLDERS' DEFICIT Common Stock, no par value, authorized 5,000,000 shares; issued & outstanding, 3,671,304 shares 1,147,600 1,147,600 Deficit (1,231,900) (1,233,100) Shareholders' Deficit (84,300) (85,500) $ 241,100 $ 201,700 See notes to condensed financial statements DENCOR ENERGY COST CONTROLS, INC. STATEMENTS OF OPERATIONS (unaudited) Three Months Ended March 31 1998 1997 REVENUES: Net Sales $ 116,900 $ 113,100 Interest and Other 2,800 1,800 TOTAL REVENUES 119,700 114,900 COSTS AND EXPENSES; Cost of Products Sold 53,800 54,600 Selling 5,500 6,100 General and Administrative 34,000 33,100 Research and Development 18,700 17,900 Interest 6,500 4,700 118,500 116,400 NET EARNINGS (LOSS) $ 1,200 $ (1,500) NET (LOSS) PER COMMON SHARE: $ * $ * WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 3,671,304 3,671,304 * Less than $0.01 per common share See notes to condensed financial statements DENCOR ENERGY COST CONTROLS, INC. STATEMENT OF CASH FLOWS (unaudited) Three Months Ended March 31 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES: Net earnings (loss) $ 1,200 $ (1,500) Adjustments to reconcile net earnings (loss) to net cash provided by (used in) operating activities: Depreciation 1,000 Changes in operating assets and liabilities: Accounts and other receivables (50,100) 3,200 Inventories 13,800 11,400 Other assets (10,700) (9,000) Accounts payable 4,000 9,100 Accrued compensation and benefits 19,000 (5,300) Accrued interest - shareholders 6,600 2,900 Deposit 0 (5,700) Other liabilities (400) (200) Total adjustments (17,800) 7,400 Net cash provided by (used in) operating activities (16,600) 5,900 Cash flows from financing activities: Proceeds from notes payable-shareholders 9,000 Net cash provided by financing activities 9,000 Net increase (decrease) in cash (7,600) 5,900 CASH, beginning of year 8,300 1,600 CASH, end of quarter $ 700 $ 7,500 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 March 31, 1998, and the results of operations and cash flows for the three months ended March 31, 1998 and 1997. The results of operations for the three-month periods ended March 31, 1998 and 1997, 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 First Quarter, 1998, the Company had no long-term debt. C. Common Stock: During the First Quarter, 1998, the Company sold no restricted stock. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NET SALES First Quarter sales of $116,900 were approximately 3.4% greater than the $113,100 for the comparable Period in 1997. The increase is primarily a result of an increase in sales to utilities. COST AND EXPENSE Cost of Products Sold as a percentage of net sales decreased 2% for the first quarter of 1998 compared with the same period in the prior year. This increase in gross margin is primarily due to an increase in the percentage of sales of our new Energy Administration System which has a higher margin than other products. Selling expenses as a percentage of net sales for the first quarter of 1998 decreased to 4.7% compared to 5.4% for the same period in the prior year. DENCOR ENERGY COST CONTROLS, INC. General and Administrative expenses for the first quarter 1998 were essentially the same as for the same period in the prior year. Research and Development expenses as a percentage of net sales were essentially the same as for the period in the prior year. EARNINGS The net earnings for the first quarter were $1,200 compared to a net loss of $1,500 for the same period in the prior year. The increase in net earnings was due to the decrease in cost of goods sold as a percentage of sales. LIQUIDITY The Independent Auditor's Report on Dencor Energy Cost Controls, Inc. Financial Statements for the year ended December 31, 1997 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, 1997 Financial Statements. The Company's current ratio is .69 at the Quarter ended March 31, 1998. Management believes the acid ratio (cash and accounts receivable divided by current liabilities) of 0.22 is within the limits of reasonable liquidity. PART II - OTHER INFORMATION Items 1 through 5 would appear to require no answers according to the instructions. Item 6. Exhibits and Reports On Form 8-K (a) The following Exhibit is filed as part of this Quarterly Report on Form 10-Q: 27. Financial Data Schedule. (b) During the quarter ended March 31, 1998, the Registrant filed one report on Form 8-K on March 11, 1998. 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 and Principal Accounting Officer Date: April 24, 1998 EX-27 2 ART. 5 FDS FOR 10-KSB FOR YEAR 1997
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-KSB FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. YEAR DEC-31-1997 DEC-31-1997 8,300 0 53,700 16,100 149,700 201,700 213,300 213,300 201,700 287,200 0 1,147,600 0 0 0 201,700 437,700 444,500 231,300 518,700 261,100 5,300 21,000 (74,200) 0 0 0 0 0 (74,200) 0 0
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