-----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, U3mlrkfaImnE22uJI82JgExtvxSV9hDns2Pbs74QfvCJ2R56KQb1PLp7/zd5brqk /HEK+ggzICgmIpyVcBfijw== /in/edgar/work/0000910647-00-500088/0000910647-00-500088.txt : 20001115 0000910647-00-500088.hdr.sgml : 20001115 ACCESSION NUMBER: 0000910647-00-500088 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEGATECH CORP CENTRAL INDEX KEY: 0000064708 STANDARD INDUSTRIAL CLASSIFICATION: [2741 ] IRS NUMBER: 042461059 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-09643 FILM NUMBER: 763144 BUSINESS ADDRESS: STREET 1: 525 WOBURN STREET CITY: TEWKSBURY STATE: MA ZIP: 01876 BUSINESS PHONE: 6172731900 MAIL ADDRESS: STREET 1: 525 WOBURN STREET CITY: TEWKSBURY STATE: MA ZIP: 01876 10-Q 1 mega-q3.txt BODY OF 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, DC. 20549 FORM 10-Q (x) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2000 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 0-9643 MEGATECH CORPORATION (Exact name of registrant as specified in its charter) Massachusetts 04-2461059 (State or other jurisdiction of (IRS. Employer incorporation of organization) Identification No.) 555 WOBURN Street, TEWKSBURY, MA 01876 (Address of principal executive offices) (Zip Code) (978) 937-9600 (Registrant's telephone number, including area code) ---------------------------------------------- (Former name, former address and former fiscal year, if changed since 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 ( ) There were 3,813,708 shares of common stock outstanding at November 6, 2000. -1- MEGATECH CORPORATION QUARTERLY REPORT FORM 10-Q September 30, 2000 PART 1. FINANCIAL INFORMATION ITEM 1. Financial Statements (Unaudited) Page ---- Balance Sheet - September 30, 2000 and December 31, 1999 3 Statement of Operations- for the quarter and nine months ended September 30, 2000 and September 30, 1999 4 Statement of Cash Flows- for the nine months ended September 30, 2000 and September 30, 1999 5 Notes to Financial Statements- September 30, 2000 6 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 ITEM 3. Quantitative and Qualitative Disclosures About Market Risk 9 PART II. OTHER INFORMATION ITEM 1. Legal Proceedings 9 ITEM 2. Changes in Securities and Use of Proceeds 9 ITEM 3. Defaults Upon Senior Securities 9 ITEM 4. Submission of Matters to a Vote of Security Holders 9 ITEM 5. Other Information 9 ITEM 6. Exhibits and Reports on Form 8-K 9 Signature Page 10 -2- PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS MEGATECH CORPORATION BALANCE SHEET
Sept 30, 2000 Dec. 31, 1999 (UNAUDITED) (AUDITED) ------------------------------ ASSETS Current assets: Cash and cash equivalents $ 77,085 $ 75,857 Accounts receivable: Trade 313,720 280,389 Other 4,355 3,581 Inventories 253,000 357,662 Prepaid expenses 8,455 4,361 ---------------------------- Total current assets 656,615 721,850 ---------------------------- Property, plant and equipment, net 57,244 65,731 Other assets 7,666 7,666 ---------------------------- Total Assets $ 721,525 $ 795,247 ============================ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts Payable: Trade $ 49,689 77,192 Affiliate 120 0 Accrued Liabilities 85,378 267,675 ---------------------------- Total current liabilities 135,187 344,867 ---------------------------- Note payable 37,500 37,500 Stockholders' equity: Common Stock, par value $.0143 per share, 5,000,000 shares authorized; 3,813,708 shares issued and outstanding, 54,536 54,516 Additional paid-in capital 4,014,949 4,014,661 Deficit (3,520,647) (3,656,297) ---------------------------- Total stockholders' equity 548,838 412,880 ---------------------------- Total liabilities and stockholders' equity $ 721,525 $ 795,247 ============================
See notes to financial statements. -3- MEGATECH CORPORATION STATEMENT OF OPERATIONS (UNAUDITED)
NINE MONTHS ENDED QUARTER ENDED -------------------------------- -------------------------------- Sept. 30, 2000 Sept. 30, 1999 Sept. 30, 2000 Sept 30, 1999 --------------------------------------------------------------------- Sales $1,780,976 $1,472,339 $ 512,044 $ 488,322 Cost of sales 867,656 815,581 181,689 278,886 ----------------------------------------------------------------- Gross profit 913,320 656,758 330,355 209,436 ----------------------------------------------------------------- Operating expenses: Selling 619,026 421,261 214,950 117,155 General and administrative 127,325 122,503 43,524 39,749 Research and development 26,002 15,923 7,951 5,047 ----------------------------------------------------------------- Total operating expenses 772,353 559,687 266,425 161,951 ----------------------------------------------------------------- Income from operations 140,967 97,071 63,930 47,485 ----------------------------------------------------------------- Other income (expense): Interest (1,107) 3,659 (820) 729 Other (4,210) (3,225) (4,210) 0 ----------------------------------------------------------------- Other income (expense), net (5,317) 434 (5,030) 729 ----------------------------------------------------------------- Net income $ 135,650 $ 97,505 $ 58,900 $ 48,214 ================================================================ Net income per share - basic and diluted $ 0.036 $ 0.026 $ 0.015 $ 0.013 ================================================================ Weighted average number of common shares outstanding 3,813,708 3,812,308 3,813,708 3,812,308 ================================================================
See notes to financial statements. -4- MEGATECH CORPORATION STATEMENT OF CASH FLOWS
NINE MONTHS ENDED ------------------------------- Sept. 30, 2000 Sept 30, 1999 ------------------------------- Cash flows from operating activities: Net income $ 135,650 $ 97,505 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Non-cash charges (credits) to net income: Depreciation and amortization 14,694 13,569 Common stock issued as compensation 308 0 Changes in operating assets and liabilities: Accounts receivable (34,105) (194,571) Prepaid expenses (4,094) 1,411 Inventories 104,662 78,210 Accounts payable (27,383) 541 Accrued expenses (182,297) (121,353) -------------------------- Net cash provided (used) by operating activities 7,435 (124,688) -------------------------- Cash flows from investing activities: Purchases of property and equipment (6,207) (14,753) Sales of property and equipment 0 3,226 -------------------------- Net cash provided (used) by investing activities (6,207) (11,527) -------------------------- Cash flows from financing activities: Advances on notes payable 0 37,500 -------------------------- Net cash provided by financing activities 0 37,500 -------------------------- Net increase (decrease) in cash and cash equivalents 1,228 (98,715) Cash & cash equivalents, beginning of period 75,857 187,580 -------------------------- Cash & cash equivalents, end of period $ 77,085 $ 88,865 ==========================
See notes to financial statements. -5- MEGATECH CORPORATION NOTES TO FINANCIAL STATEMENTS September 30, 2000 1. BASIS OF PRESENTATION: ---------------------- The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. 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 considered necessary for a fair presentation of the financial position, results of operations and cash flows have been included. Operating results for interim periods are not necessarily indicative of the operating results that may be expected for the full year. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report on Form 10-K. 2. INVENTORIES: ------------ Inventories consisted of the following:
Sept. 30, 2000 Dec. 31, 1999 ------------------------------- Raw materials $180,294 $182,614 Work in process 8,613 29,903 Finished goods 64,093 145,145 -------------------------- 253,000 357,662 ==========================
3. MAJOR CUSTOMER INFORMATION: --------------------------- For the period ended September 30, 2000 and 1999, sales to two and one unrelated sales representatives comprised 61% and 44% of total sales, respectively. -6- ITEM 2. MEGATECH CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 RESULTS OF OPERATIONS: - ---------------------- Quarter Ended September 30, 2000 compared to quarter ended September 30, 1999 Sales for the quarter ended September 30, 2000 were $512,044 compared to $488,322 for the same quarter last year. The increase was primarily due to an increase in domestic sales. Gross profit for the quarter ended September 30, 2000 was $330,355 or 65% of sales, compared to $209,436 or 43% of sales, for the same quarter last year. The increase is the result of lower material and labor costs. Operating expenses for the quarter ended September 30, 2000 were $266,425 or 52% of sales, compared to $161,951 or 33% of sales, for the same quarter last year. The increase is due to an increase in selling and marketing costs. The net income for the quarter ended September 30, 2000 was $58,900 compared to a net income of $48,214 for the same quarter last year. The profits were derived from increased sales and better profit margins. Nine months Ended September 30, 2000 compared to nine months ended September 30, 1999 Sales for the nine months ended September 30, 2000 were $1,780,976, compared to $1,472,339 for the same period last year. The increase was due to an increase in domestic sales. Gross profit for the nine months ended September 30, 2000 was $913,320 or 51% of sales, compared to $656,758 or 45% of sales, for the same period last year. The increase is the result of a decrease in direct labor costs and material costs. Operating expenses for the nine months ended September 30, 2000 were $772,355 or 43% of sales, compared to $559,687 or 38% of sales, for the same period last year. The increase is attributable to an increase in selling and marketing expenses. The net income for the nine months ended September 30, 2000 was $135,650 compared to net income of $97,505 for the same period last year. The increase is the result of the items discussed above. -7- LIQUIDITY AND CAPITAL RESOURCES: - -------------------------------- Working capital as of September 30, 2000 was $521,428 compared to $376,983 in working capital at December 31, 1999. The increase is attributable to the net income for the year. The company maintains a secured line of credit in the amount of $200,000. At September 30, 2000, no borrowings were outstanding under this line. The company believes that cash generated from operations, together with existing sources of debt financing, will be sufficient to meet foreseeable cash requirements for the next twelve months. The firm's backlog as of September 30, 2000 was approximately $94,130 compared to $264,129 for same period ended in 1999. -8- MEGATECH CORPORATION ITEM 3. QUANITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK Not applicable. PART II: OTHER INFORMATION Item 1. Legal Proceedings: None. - ------------------------------------------------------- Item 2. Changes in Securities: None. - ------------------------------------------------------- Item 3. Defaults Upon Senior Securities: None. - ------------------------------------------------------- Item 4. Submission of Matters to a Vote of Security Holders: None. - ------------------------------------------------------- Item 5. Other Information: None. - ------------------------------------------------------- Item 6. Exhibits and Reports on Form 8-K: None. - ------------------------------------------------------- -9- SIGNATURES ---------- Pursuant to the requirement of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MEGATECH CORPORATION (Registrant) November 6, 2000 /s/ Vahan V. Basmajian - --------------------------------------------------------------------- Date Vahan V. Basmajian President, Treasurer -10- EX-27 2 mega3-27.xfd EXHIBIT 27 FDS
5 9-MOS Jan-01-2000 Dec-31-2000 Sep-30-2000 77,085 0 318,075 10,166 253,000 656,615 57,244 422,938 721,525 135,187 0 0 0 54,536 0 721,525 1,780,976 1,780,976 867,656 772,353 5,317 0 0 135,650 0 135,650 0 0 0 135,650 0.036 0.036
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