-----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, AzA3OqGV7r4ow/dxDgbHIT9qqL5D9i20qkzlIIUGMU78hvdYXYbrD83HGmWXkOsY tjW1nzz7MzklyaKry3dnog== 0000312066-99-000007.txt : 19991018 0000312066-99-000007.hdr.sgml : 19991018 ACCESSION NUMBER: 0000312066-99-000007 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990817 DATE AS OF CHANGE: 19991013 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DENCOR ENERGY COST CONTROLS INC CENTRAL INDEX KEY: 0000312066 STANDARD INDUSTRIAL CLASSIFICATION: 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: 99694167 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, DC 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, 1999 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: 4,803,804 shares outstanding at June 30, 1999. 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 1999 1998 (unaudited) CURRENT ASSETS: Cash $ 6,600 $ 8,300 Accounts Receivable,net of allowance for doubtful accounts of $18,700 48,300 20,000 Inventories 155,100 138,100 Prepaids and Other 12,100 6,100 TOTAL CURRENT ASSETS 222,100 172,500 Furniture & Equipment 213,300 213,300 Less Accumulated Depreciation (213,300) (213,300) 0 0 Long term receivables, net of allowance for doubtful receivables of $11,400 12,400 12,600 $234,500 $185,100 LIABILITIES & STOCKHOLDERS' DEFICIT CURRENT LIABILITIES: Notes Payable - Shareholders $123,300 $ 118,300 Notes Payable - Others 25,000 5,000 Accounts Payable 71,700 36,500 Accrued Compensation and Benefits 196,700 133,700 Accrued Interest - Shareholders & Others 114,100 97,900 Warranty Reserve 3,200 3,200 Other 500 800 TOTAL CURRENT LIABILITIES 534,500 395,400 STOCKHOLDERS' DEFICIT Common Stock, no par value, authorized 5,000,000 shares; issued & outstanding, 4,803,804 shares 1,175,900 1,175,900 Accumulated deficit (1,475,900) (1,386,200) (300,000) (210,300) $ 234,500 $ 185,100 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 1999 1998 1999 1998 REVENUES: Net Sales $ 65,000 $ 72,100 $ 126,400 $ 189,000 Interest and Other 1,400 2,000 3,600 4,800 TOTAL REVENUES 66,400 74,100 130,000 193,800 COSTS AND EXPENSES: Cost of Products Sold 34,800 34,100 72,900 87,900 Selling 1,400 4,700 9,800 10,200 General and Administrative 40,300 37,000 77,900 71,000 Research and Development 19,400 18,400 42,900 37,100 Interest 8,400 6,500 16,200 13,000 106,400 100,700 219,700 219,200 NET LOSS $ ( 40,000) $( 26,600) $( 89,700) $( 25,400) NET LOSS PER COMMON SHARE: $ (0.01) $ (0.01) $ (0.02) $ (0.01) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 4,803,804 3,894,820 4,803,804 3,783,680 See notes to condensed financial statements DENCOR ENERGY COST CONTROLS, INC. STATEMENT OF CASH FLOWS (unaudited) Six Months Ended June 30 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(89,700) $( 25,400) Adjustments to reconcile net loss to net cash used in operating activities: Changes in operating assets and liabilities: Accounts and other receivables (28,300) 5,800 Inventories (17,000) (9,100) Other assets ( 6,000) (14,900) Long term receivables 200 0 Accounts payable 35,200 (700) Accrued compensation and benefits 63,000 23,400 Accrued interest - shareholders & others 16,200 12,500 Other liabilities ( 300) (3,100) Total adjustments 63,000 13,900 Net cash used in operating activities (26,700) (11,500) Cash flows from financing activities: Proceeds from Private Placement of Stock 0 3,300 Proceeds from Notes Payable-Shareholders 5,000 9,000 Proceeds from Notes Payable - Others 20,000 0 Principal payment on Notes Payable Shareholder (0) (6,000) Net cash provided by financing activities 25,000 6,300 Net decrease in cash (1,700) (5,200) Cash beginning of year 8,300 8,300 Cash end of quarter 6,600 $ 3,100 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 dis- closures 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 Management, the 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, 1999, and the results of operations and cash flows for the six months and three months ended June 30, 1999 and 1998. The results of operations for the three and six month periods ended June 30, 1999 and 1998, 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, 1999, the Company had no long-term debt. C. Common Stock: During the Second Quarter of 1999, the Company sold no restricted stock. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS NET SALES Second quarter sales of $65,000 were approximately 10% less than the $72,100 for the comparable period in 1998. The decrease is primarily a result of a decrease in sales to dealers. The first half year sales were 33% less than the first half year sales the previous year. The decrease was due to a de- crease in both utility sales and dealer sales. COST AND EXPENSE Cost of Products Sold as a percentage of net sales increased 6.2% for the second quarter of 1999 compared with the same period in the prior year. For the six month period the cost of products sold increased 10% compared to the same period the prior year. This decrease in gross margin percentage is primarily due to a decrease in the production efficiency resulting from lower production volume. Selling expenses for the second quarter of 1999, as percentage of net sales, decreased by 4.4% compared to the same period in the prior year. General and Administrative expenses as a percentage of net sales for the second quarter of 1999 increased to 62% compared to 51% in the same period in the prior year. The total administrative expense remained about the same as the prior year. Research and Development expenses, as a percentage of net sales, for the second quarter increased to 29.8% from 25.5% in the same quarter in the prior year. EARNINGS The net loss for the second quarter was $40,000 compared to a net loss of $26,600 for the same period in the prior year. The losses were due to the decrease in sales and decreased margin. LIQUIDITY The Independent Auditor's Report on Dencor Energy Cost Controls, Inc. Financial Statements for the year ended December 31, 1998 included a "going concern" explanatory paragraph that describes 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, 1998 Financial Statements. The Company's current ratio is .42 at the Quarter ended June 30, 1998. Man- agement believes the acid ratio (cash and accounts receivable divided by current liabilities) of .10 is below the limits of reasonable liquidity. YEAR 2000 The Company has installed new software to make its accounting system year 2000 compliant. The Company has determined its products are year 2000 compliant and that there are no year 2000 issues in its production processes. The Company is surveying its vendors for year 2000 compliance. Also, several potential suppliers have been identified for each part purchased. The Company will be dependent on the power, communication, transportion and water infra- structures. The cost of complaince is not expected to be material. DENCOR ENERGY COST CONTROLS, INC. PART II - OTHER INFORMATION Items 1 through 5 would appear to require no answers according to the instructions. Item 5. 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 June 30, 1999, the Registrant filed no reports on Form 8-K. 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: August 13, 1999 EX-27 2 ART.5 FDS FOR 10-QSB FOR JUNE 30, 1999 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10K-QSB FOR THE QUARTER ENDED JUNE 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS SIX MONTHS DEC-31-1999 JUNE-30-1999 6,600 0 [TEXT] 60,700 30,100 155,100 222,100 213,300 [TEXT] 213,300 234,500 534,500 0 1,175,900 0 0 0 234,500 126,400 130,000 72,900 219,700 0 0 [TEXT] 16,200 (89,700) 0 0 0 0 0 (89,700) 0 0
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