-----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, K/B9dPoflZXhobrJs9Vx77Fo5BySECCM+CYN+FMbvmkTjmXo2RSlzumLO4ltyM+V AUE8MAJygHtTYahb5+wizQ== 0000720851-97-000022.txt : 19970520 0000720851-97-000022.hdr.sgml : 19970520 ACCESSION NUMBER: 0000720851-97-000022 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NESTOR INC CENTRAL INDEX KEY: 0000720851 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 133163744 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-12965 FILM NUMBER: 97607370 BUSINESS ADDRESS: STREET 1: ONE RICHMOND SQ CITY: PROVIDENCE STATE: RI ZIP: 02906 BUSINESS PHONE: 4013319640 MAIL ADDRESS: STREET 1: 1 RICHMOND SQUARE CITY: PROVIDENCE STATE: RI ZIP: 02906 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 1997 [ ] 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 0-12965 NESTOR, INC. (Exact name of registrant as specified in its charter) DELAWARE 13-3163744 (State of incorporation) (I.R.S. Employer Identification No.) One Richmond Square, Providence, RI 02906 (Address of principal executive offices)(Zip Code) 401-331-9640 (Registrant's Telephone Number, Including Area Code) 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 than 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 _________ Common stock, par value .01 per share: 9,165,741 shares outstanding as of March 31, 1997 NESTOR, INC. FORM 10Q - March 31, 1997 INDEX PART 1 FINANCIAL INFORMATION Item 1 Financial Statements: Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 1997 and 1996 Consolidated Balance Sheet (Unaudited) March 31, 1997 and December 31, 1996 Statement of Consolidated Cash Flows (Unaudited) Three Months Ended March 31, 1997 and 1996 Notes to Consolidated Financial Statements Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations PART 2 OTHER INFORMATION Nestor, Inc. Consolidated Statements of Operations
Three Months Ended March 31, 1997 March 31, 1996 Revenues: Software licensing $ 525,994 $ 375,380 Engineering services 694,325 547,947 Tangible product sales 20,057 50,726 Total Revenue 1,240,376 974,053 Operating Expenses: Engineering services 583,687 507,868 Tangible product sales 6,084 35,524 Research and development 275,809 129,775 Selling and marketing expenses 462,727 381,212 General and administrative expenses 354,917 255,080 Total costs and expenses 1,683,224 1,309,459 (Loss) from operations (442,848) (335,406) Other income (expense) (21,309) 2,272 (Loss) for the period before income taxes (464,156) (333,134) Income taxes --- --- Net (Loss) for the Period $ (464,156) $ (333,134) Dividends accrued on preferred stock 103,163 83,529 Net Loss Available for Common Stock $ (567,319) $ (416,663) (Loss) Per Share $ (0.06) $ (0.05) Weighted Average Number of Shares Outstanding 8,936,610 7,909,010 The notes to the financial statements are an integral part of this statement.
Nestor, Inc. Consolidated Balance Sheets March 31, December 31, 1997 1996 Current assets: Cash and cash equivalents $ 320,705 $ 774,457 Accounts receivable, net of allowance for doubtful accounts 880,152 1,009,149 Unbilled contract revenue 221,994 126,945 Deferred development costs --- 364,405 Other current assets 266,996 276,615 Total current assets 1,689,847 2,551,571 Long term portion of unbilled contract revenue 400,000 --- Property and equipment at cost - net of accumulated depreciation 250,878 255,590 Intangible assets - net of accumulated amortization 394,518 --- Other assets 5,783 10,783 Total assets $ 2,741,026 $ 2,817,944 Liabilities and Stockholders Deficit Current liabilities: Accounts payable and accrued expenses $ 657,815 $ 670,742 Other current liabilities 284,772 298,848 Deferred income 341,712 338,404 Total current liabilities 1,284,299 1,307,994 Noncurrent liabilities: Long terms obligations under capital leases 9,023 12,212 Total liabilities 1,293,322 1,320,206 Long term portion of deferred income 430,899 430,899 Redeemable preferred stock (see footnote) 5,497,236 5,398,908 Stockholders' deficit: Preferred stock, $1.00 par value, authorized 10,000,000 shares; issued and outstanding: Series A - 452,064 shares at March 31, 1997 and December 31, 1996 (liquidation value $904,128 - $2.00 per share) 452,064 452,064 Series B - 1,590,000 shares at March 31, 1997 (liquidation value $1,590,000 - $1.00 per share) and 1,635,000 shares at December 31, 1996 (liquidation value $1,635,000 - $1.00 per share) 1,590,000 1,635,000 Series D - 175,071 shares at March 31, 1997 (liquidation value $277,164 - $1.50 per share plus accrued dividends) and 179,671 shares at Decem- ber 31, 1996 (liquidation value $279,230 - $1.50 per share plus accrued dividends) 277,164 279,230 Series C, E, F, G and H - redeemable preferred stock (shown above) 4,846 shares at March 31, 1997 and December 31, 1996 (liquidation value $1,000 per share plus accrued dividends) --- --- Common Stock, $.01 par value, authorized 30,000,000 shares; issued and outstanding; 9,165,741 shares at March 31, 1997 and 8,916,141 shares at December 31, 1996 91,657 89,161 Warrants and options 444,121 417,500 Additional paid-in capital 12,261,386 11,927,644 Retained (deficit) (19,596,824) (19,132,668) Total stockholders' equity (deficiency) (4,480,431) (4,332,069) Total Liabilities and Stockholders' Deficit $ 2,741,026 $ 2,817,944 The notes to the financial statements are an integral part of this statement.
Nestor, Inc. Consolidated Statements of Cash Flows
Three Months Ended March 31, 1997 March 31, 1996 Cash flows from operating activities: Net (loss) $(464,155) $ (333,134) Adjustments in reconcile net (loss) to net cash provided by operating activities: Depreciation and amortization 23,891 29,689 Expenses charged to operations relating to options, warrants and capital transactions 26,621 --- Changes in assets and liabilities: Decrease (increase) in accounts receivable 128,997 (362,915) Decrease (increase) in unbilled contract revenue (495,049) 96,992 Decrease in deferred development costs 364,405 --- Decrease in other assets 16,040 --- (Decrease) in accounts payable, accrued expenses and other liabilities (37,460) (483,391) Increase in deferred income 3,308 151,309 Net cash (used) by operating activities (433,402) (901,450) Cash flows from financing activities: Purchase of property and equipment (17,161) (17,579) Net cash (used) by investing activities (17,161) (17,579) Cash flows from financing activities: Repayment of obligations under capital leases (3,189) (2,705) Proceeds from issuance of common stock --- 2,175 Proceeds from issuance of preferred stock --- 1,366,000 Net cash (used) provided by financing activities (3,189) 1,365,470 Net change in cash and cash equivalents (453,752) 446,441 Cash and cash equivalents - beginning of period 774,457 68,780 Cash and cash equivalents - end of period $ 320,705 $ 515,221 Supplemental cash flows information Interest paid $ 396 $ 94 Income taxes paid $ --- $ --- The notes to the financial statements are an integral part of this statement.
Notes to Consolidated Financial Statements Note 1 - Financial statements: In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of (a) the consolidated results of operations for the three months ended March 31, 1997 and 1996; (b) the consolidated statements of cash flows for the three months ended March 31, 1997 and 1996; and (c) consolidated financial position at March 31, 1997 have been made. The accompanying quarterly results of operations and cash flows are not necessarily indicative of the results expected for the entire fiscal year. The accompanying financial statements include the accounts of Nestor, Inc., Nestor, IS, Inc. ("IS"), and Nestor Interactive, Inc. ("Interactive"). IS and Interactive were organized effective January 1, 1997 as two wholly owned subsidiaries of Nestor, Inc. All intercompany transactions and balances have been eliminated. Note 2 - Redeemable convertible preferred stock: 3/31/97 12/31/96 Series E, par value $1.00 per share, 1,444 shares outstanding at March 31, 1997 and December 31, 1996. $217,975 and $189,226 of accumulated dividends at March 31, 1997 and December 31, 1996, respectively. $1,661,975 $1,633,226 Series F, par value $1.00 per share, 599 shares outstanding at March 31, 1997 and December 31, 1996. $66,055 and $51,313 of accumulated dividends at March 31, 1997 and December 31, 1996, respectively. 665,055 650,313 Series G, par value $1.00 per share, 777 shares outstanding at March 31, 1997 and December 31, 1996. $61,377 and $46,875 of accumulated dividends at March 31, 1997 and December 31, 1996, respectively. 838,377 823,875 Series H, par value $1.00 per share, 2,026 shares outstanding at March 31, 1997 and December 31, 1996. $305,829 and $265,494 of accumulated dividends at March 31, 1997 and December 31, 1996, respectively 2,331,829 2,291,494 TOTAL: $5,497,236 $5,398,908 Note 3: Loss per Common Share: Net loss per common share is based on income (loss) available for common stock divided by the weighted- average number of common shares outstanding during each of the periods. Common equivalent shares from stock options are excluded as their effect is antidilutive. In February 1997, the Financial Accounting Standards Board issued Statement No. 128, Earnings Per Share ("FAS 128"), which will be adopted on December 31, 1997. FAS 128 requires companies to change the method currently used to compute earnings per share and to restate all prior periods for comparability. The adoption of FAS 128 is not expected to have any impact on the Company's previously reported earnings per share because the Company was in a net loss position and, consequently, common equivalent shares from stock options were excluded as their effect was antidilutive. During the quarter ended December 31, 1996, the Company modified its method for computing earnings per share to give effect to dividends accrued on preferred stock. The effect of this change on earnings per share is as follows: As Originally Period Ended Reported As Adjusted Qtr. Ended 3/31/96 $(0.04) $(0.05) Note 4 - Intangible Asset: On March 31, 1997, the Company purchased from Cyberiad Software, Inc. ("Cyberiad"), a Rhode Island corporation, substantially all of Cyberiad's assets. In this transaction, the Company issued 200,000 shares of its Common Stock to Cyberiad's owners and agreed to assume approximately $10,500 of Cyberiad's liabilities. Accordingly, the Company recorded as an intangible asset the excess of its acquisition cost over the fair value of the net liabilities assumed ($394,518) and is amortizing this asset over 36 months. No amortization expense was recognized in the quarter ended March 31, 1997. Had the acquisition taken place at the beginning of each respective period, there would be no significant difference on a pro-forma basis other than the amortization of the intangible asset. Prospective Statements The following discussion contains prospective statements regarding Nestor, Inc., its business outlook and results of operations that are subject to certain risks and uncertainties and to events that could cause the Company's actual business, prospects and results of operations to differ materially from those that may be anticipated by, or inferred from, such prospective statements. Factors that may affect the Company's prospects include, without limitation: the Company's ability to successfully develop new contracts for technology development; the impact of competition on the Company's revenues or market share; delays in the Company's introduction of new products; and failure by the Company to keep pace with emerging technologies. Readers are cautioned not to place undue reliance on these prospective statements, which speak only as of the date of this report. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by the Company in this report and in the Company's reports filed with the Securities and Exchange Commission. Liquidity and Capital Resources Cash Position and Working Capital The Company had cash and short term investments of approximately $320,000 at March 31, 1997, as compared with $774,000 at December 31, 1996, and $1,363,000 at September 30, 1996. At March 31, 1997, the Company had working capital of $405,000 as compared with $1,243,000 at December 31, 1996. The Company had a negative net worth of $4,480,000 at March 31, 1997, as compared with negative net worth of $4,332,000 at December 31, 1996. On April 18, 1997, the Company entered into an amendment to the Prism License Agreement with Applied Communications, Inc. ("ACI") allowing ACI expanded rights to distribute the Company's PRISM product line and to share in enhanced future royalty income. Pursuant to this amendment the Company received in April an initial, non-refundable royalty of $2,000,000. Management believes that the Company's revenues will generate sufficient liquidity, when combined with its liquid assets as at March 31, 1997, to meet the company's anticipated cash requirements through the end of its fiscal year ending December 31, 1997. Deferred Income Operations of the Company have been partly funded by prepayments under engineering contracts and licenses of the Company's technology. Such prepayments are recognized as revenue under the percentage-of-completion method as engineering is completed or delivery obligations are fulfilled. The Company bases its estimate of the percentage of completion on the amount of labor applied to a given project, compared with the estimated total amount of labor required. The remainder of such prepaid revenue is reflected on the Company's balance sheet as deferred income, and is treated as a liability. Total deferred income was $772,000 at March 31, 1997, as compared with $769,000 at December 31, 1997. Future commitments During the quarter ended March 31, 1997, the Company acquired additional property and equipment (primarily computing and related equipment) at a cost of $17,000. The Company has no material commitments for capital expenditures although management expects that the Company may make future commitments for the purchase of additional computing and related equipment, for development of hardware, for consulting and for promotional and marketing expenses. The Company has no material commitments other than a commitment to purchase from Intel Corporation a supply of Ni1000 Recognition Accelerator Chips. The Company placed a purchase order in the amount of $195,000 with Intel Corporation in June 1996, and expects to take delivery of this order during the second half of 1997. Results of Operations On June 11, 1996, the Company entered into an exclusive Licensing Agreement with National Computer Systems, Inc. ("NCS") transferring the development, production, and marketing rights of the Company's Intelligent Character Recognition ("ICR") products to NCS. Under the License Agreement the Company received an initial license fee, which was recognized as revenue in the fiscal year ended June 1996, and will receive royalties on sales of the products by NCS. Minimum annual royalties range from $160,000 in the twelve months ending June 1997 to $350,000 in 2001 and beyond. For the quarter ended March 31, 1997, the Company realized a 27% increase in revenues compared to the prior year and an 28% increase in expenses resulting in a 32% increase in the loss from operations. ICR revenues in the quarter ended March 31, 1996, accounted for 47% of total revenues while related expenses accounted for 35% of total expenses. Revenues The following table compares revenues for the quarter ended March 31, 1997 with revenues for the comparable fiscal quarter of the preceding year, including and excluding revenues from ICR operations transferred to NCS: Total Total Total Year-to- Revenues Year-to- Revenues Revenues year Q/E year Q/E Q/E Change March 31, Change March 31, March 31, 1996 1997 1996 Excluding ICR $1,240,000 $974,000 +27% $514,000 +141% The Company's revenues arise from licensing of the Company's products and technology, from the sale of tangible products, and from contract engineering services and are discussed separately below. During the quarter ended March 31, 1997, revenues increased $266,000 to $1,240,000 from $974,000 in the quarter ended March 31, 1996. Revenues in the year-earlier period included $460,000 of revenues associated with the ICR products that were licensed to NCS in June 1996. Engineering Services During the quarter ended March 31, 1997, revenues from engineering contracts increased $146,000 to $694,000 from $548,000 in the corresponding quarter of the prior fiscal year. Prior year revenues included $88,000 of engineering revenues relating to the ICR products. Revenues relating to the customer-funded modification of Nestor's Fraud Detection System totaled $664,000, an increase of $382,000 over year-earlier revenues of $282,000. The Company's contracts with the Defense Advanced Research Projects Agency (DARPA) require engineering services rendered by the Company to develop a generic commercial application of the Company's technology to high-speed pattern recognition through the creation of an integrated circuit, associated circuit boards, and supporting development software. The Company has two contracts with DARPA. The first contract, which was signed in April 1990, is in the amount of $1,630,000; as of March 31, 1997, approximately $1,623,000 had been earned. The second contract, signed August 26, 1993, is in the amount of $776,000; as of March 31, 1997, approximately $773,000 had been earned. On September 1, 1995, the Company signed a contract with the Jet Propulsion Laboratory (JPL) to develop a prototype sensor system designed for vehicular-traffic surveillance and detection. The contract was valued at approximately $597,000. On March 31, 1997, the Company extended its contract with JPL to include in- field evaluation of the prototype system developed under the original JPL contract. The value of the contract was increased to $730,000. The terms of the DARPA and JPL contracts call for delivery of prototype products, but do not specify any subsequent purchasing or licensing provisions. During the quarter ended March 31, 1997, the Company recognized revenues totaling $30,000 under its government contracts. In the year-earlier period such revenues totaled $152,000. Software Licensing Product-licensing revenues totaled $526,000 in the quarter ended March 31, 1997, as compared with $375,000 in the same quarter of the prior year. The increase in software licensing revenues reflects the growth of licensing revenues in the Company's Prism product line. Such revenues totaled $519,000 in the quarter ended March 31, 1997, as compared with none in the year-earlier period. All of the product-licensing revenues in the quarter ended March 31, 1996 were attributable to the ICR product line, which was sold to NCS in June 1996. Subsequent to the signing of the Licensing Agreement with NCS in June 1996, the Company will not receive ICR licensing fees but expects to receive royalties from NCS on future sales of ICR products by NCS. The minimum annual royalty for the twelve months ending June 1997 is $160,000; as of March 31, 1997, the Company had recognized $75,000 of revenue under its Licensing Agreement with NCS. (See Operating Expenses, below, for a discussion of the effect on the Company's expenses of this licensing arrangement.) Sales of Tangible Products The tangible products currently sold by the Company are based upon the Company's Ni1000 Recognition Accelerator Chip, which is marketed along with development software that enables customers to develop high-speed recognition applications. Revenues from the Company's Ni1000 Development System totaled $20,000 in the quarter ended March 31, 1997, as compared with $50,000 in the corresponding quarter of the prior fiscal year. The Company is currently developing its TrafficVision product, which will incorporate the Ni1000 Recognition Accelerator Chip (see "Investment in Product Development and Marketing," below). Operating Expenses Total operating expenses - consisting of engineering, research and development, selling and marketing, and general and administrative expenses - amounted to $1,683,000 in the quarter ended March 31, 1997, an increase of $374,000 over total operating costs of $1,309,000 in the corresponding quarter of the prior fiscal year. Included in operating expenses for the March 1997 quarter is the recognition of $364,000 of costs relating to a project to customize the Company's Prism Fraud Detection System for a customer. These costs were incurred during the six months ended December 31, 1996 but were deferred because the terms of the agreement were not finalized until March 1997. The Company accounted for the costs in accordance with SOP 81-1, "Accounting for Performance of Construction-Type and Certain Production-Type Contracts," which provides that costs be deferred until delivery is made under the terms of an enforceable agreement. The agreement was completed and required deliveries were made in March 1997. Included in expenses for the quarter ended March 1996 are approximately $458,000 of expenses attributable to the ICR products, which were licensed to NCS in June 1996. Most of the expenses associated with the ICR products are no longer incurred by the Company as NCS hired most of the staff assigned to development, sales, and support of the ICR products. Labor costs continue to be the Company's single greatest expense category. In the quarter ended March 31, 1997, the Company paid $698,000 for wages and consulting fees, a decrease of $48,000 from total wages and consulting fees of $746,000 paid in the corresponding quarter of the prior fiscal year. The decrease in labor costs reflects the decline in staffing primarily attributable to the transfer of the ICR products group to NCS: full-time employees totaled 40 at March 31, 1997, as compared with 42 at March 31, 1996. Engineering Services Costs related to engineering services totaled $584,000 in the quarter ended March 31, 1997, as compared to $508,000 in the corresponding quarter of the prior fiscal year. As a percentage of revenues, these costs decreased from 93% last year to 84% this year reflecting the growth in engineering revenues from the Company's financial-services customers, where the Company is able to price its services more aggressively than under its government contracts. Research and Development Research and development expenses totaled $276,000 in the quarter ended March 31, 1997, as compared with $130,000 in the year- earlier period. The increase in such costs reflects the net of increased investment in product development in the Company's Prism and InterSite product lines and the absence of product development relating to the ICR products. Product development in the Company's Prism and InterSite product lines totaled $230,000 in the quarter ended March 31, 1997, as compared with Prism product development in the year-earlier period of $4,000. Product development relating to the ICR products in the quarter ended March 31, 1996, totaled $120,000. Selling and Marketing Selling and marketing costs totaled $462,000 in the quarter ended March 31, 1997, including $79,000 of costs associated with the Prism development project that had been deferred from the six months ended December 1996. In the corresponding quarter of the prior fiscal year, selling and marketing costs totaled $381,000, including $261,000 of selling costs relating to the ICR products. Excluding the costs deferred from December 1996, the increase in selling and marketing costs was spread across all three groups: Prism selling costs totaled $246,000 during the March 1997 quarter as compared with $97,000 in the prior year; selling costs relating to the Company's TrafficVision product and Ni1000 Development System totaled $95,000 in 1997 as compared with $33,000 in the quarter ended March 1996; and selling costs associated with InterSite, which the Company began to develop in July 1996, totaled $41,000 in the quarter ended March 31, 1997. General and Administrative General and administrative expenses totaled $355,000 in the quarter ended March 31, 1997, including $76,000 of costs associated with the Prism development project that had been deferred from the six months ended December 1996. In the corresponding quarter of the prior fiscal year general and administrative costs totaled $255,000. Investment in Product Development and Marketing Revenues relating to the Company's PRISM and Fraud Detection System exceeded expenses by $288,000 in the quarter ended March 31, 1997. The Company has installed its products at Mellon Bank, GE Consumer Credit Financial Services, Banc One, Europay International (an association of 700 banks in Europe), and with a European financial-services company. In September 1996, the Company signed a license agreement with Applied Communications, Inc. ("ACI") enabling ACI to integrate Nestor's products with certain products of ACI. ACI provides authorization and transaction-processing software to nearly 500 financial institutions worldwide. This agreement was amended in April 1997 to broaden ACI's rights. In March 1997, the Company signed an agreement with Total Systems, Inc., which, as one of the world's largest credit, debit, commercial and private-label card processing companies, represents more than 84 million cardholder accounts. The largest investment made by the Company was in its Intelligent Sensors Division, which is responsible for the development and marketing of the TrafficVision products, an outgrowth of work under the JPL contract. The Company extended its contract with JPL and made initial commercial deliveries in the first quarter in 1997. For the quarter ended March 31, 1997, expenses of this group exceeded revenues by $267,000. The Company began development in July 1996 of products for use in internet and intranet environments. Costs associated with this effort totaled $116,000 in the quarter ended March 31, 1997. Net Income Per Share During the quarter ended March 31, 1997, the Company experienced a loss of $464,000 as compared with a loss of $333,000 in the corresponding period of the prior fiscal year. After allowance for preferred stock dividends of $103,000 and $83,000 for the three months ended March 31, 1997 and 1996, respectively, the net loss available for common stock was $567,000 and 417,000, respectively. During the quarter ended March 31, 1997, loss per share available for common stock was $.06 per share, as compared with a loss per share of $.05 in the corresponding period of the prior fiscal year. During the quarter ended March 31, 1997, there were outstanding a weighted average of 8,936,610 shares of Common Stock as compared with 7,909,010 during the corresponding quarter of the previous year. NESTOR, INC. FORM 10-Q - March 31, 1997 Item 6 Exhibits and reports on Form 8-K (a)Exhibits - None (b)Reports on Form 8-K: On April 8, 1997, the Corporation filed with the Securities and Exchange Commission a current report on Form 8-K dated March 28, 1997. (c)Reports on Form 8-K: On April 10, 1997, the Corporation filed with the Securities and Exchange Commission a current report on Form 8-K dated March 31, 1997. FORM 10-Q NESTOR, INC. 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. NESTOR, INC. (REGISTRANT) DATE: May 15, 1997 By:/s/ Nigel P. Hebborn Chief Financial Officer EX-27 2
5 3-MOS DEC-31-1997 MAR-31-1997 320,705 0 880,152 0 0 1,689,847 1,403,413 1,152,535 2,741,026 1,284,299 0 5,497,236 2,319,228 91,657 0 2,741,026 20,057 1,240,376 0 1,683,224 0 0 0 0 0 0 0 0 0 (464,156) 0 0
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