-----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, OlB+JytVBRkht7T3an2VPLFr4xPYn5EEj5qHXkeMqocPbnUn8DAmt1iJZJWD0jN0 bSnQ4J4xkA4ezSHVH2htdA== 0000789318-98-000007.txt : 19980817 0000789318-98-000007.hdr.sgml : 19980817 ACCESSION NUMBER: 0000789318-98-000007 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CLANCY SYSTEMS INTERNATIONAL INC /CO/ CENTRAL INDEX KEY: 0000789318 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 841027964 STATE OF INCORPORATION: CO FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 033-04882-D FILM NUMBER: 98687936 BUSINESS ADDRESS: STREET 1: 2250 S ONEIDA STREET 2: STE 308 CITY: DENVER STATE: CO ZIP: 80224 BUSINESS PHONE: 3037530197 MAIL ADDRESS: STREET 1: 2250 S ONEIDA STREET 2: STE 3308 CITY: DENVER STATE: CO ZIP: 80224 FORMER COMPANY: FORMER CONFORMED NAME: OXFORD FINANCIAL INC DATE OF NAME CHANGE: 19600201 10QSB 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE - ---- SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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: Act No. 33-4882-D CLANCY SYSTEMS INTERNATIONAL, INC. (Exact name of Registrant as specified in its charter) Colorado 84-1027964 (State or other jurisdiction of (IRS Employer Identification incorporation or organization) Number) 2250 S. Oneida #308, Denver, Colorado 80224 (Address of principal executive offices and Zip Code) (303) 753-0197 (Registrant's telephone number) (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 APPLICABLE ONLY TO CORPORATE ISSUERS: The number of shares outstanding of the issuer's common stock, as of August 10, 1998 was 336,889,149 shares, $.0001 par value. Transitional Small Business Disclosure Format: Yes ___No X CLANCY SYSTEMS INTERNATIONAL, INC. INDEX Page No. PART I. FINANCIAL INFORMATION Balance Sheet - September 30, 1997 and June 30, 1998 (unaudited) 2 and 3 Statement of Operations - For the Three Months Ended June 30, 1997 and 1998 (unaudited) 4 Statement of Operations - For the Nine Months Ended June 30, 1997 and 1998 (unaudited) 5 Statement of Stockholders' Equity - For the Nine Months Ended June 30, 1998 (unaudited) 6 Statement of Cash Flows - For the Nine Months Ended June 30, 1997 and 1998 (unaudited) 7 Notes to Unaudited Financial Statements 8 Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II. OTHER INFORMATION 9 1 CLANCY SYSTEMS INTERNATIONAL, INC. BALANCE SHEET September 30, 1997 and June 30, 1998 (Unaudited) ASSETS September June --------- ---- Current assets: Cash and cash equivalents $ 199,195 $ 190,283 Accounts receivable 196,646 279,209 Inventories (Note 2) 210,608 188,492 Prepaid expenses - 32,084 Income taxes refundable 1,970 1,970 Deferred tax asset (Note 1,000 - ---------- ---------- Total current assets 609,419 692,038 Furniture and equipment, at cost: Office furniture and equipment 228,680 233,580 Equipment under service contracts 1,182,632 1,363,198 ---------- ---------- 1,411,312 1,596,778 Less accumulated depreciation 994,732 1,140,724 ---------- ---------- Net furniture and equipment 416,580 456,054 Other assets: Deposits and other 26,835 103,310 Software licenses 16,882 16,882 Software development costs 286,763 335,237 ---------- ---------- 330,480 455,429 Less accumulated amortization 167,415 208,054 ---------- ---------- Net other assets 163,065 247,375 ---------- ---------- $1,189,064 $1,395,467 ========== ========== See accompanying notes. 2 CLANCY SYSTEMS INTERNATIONAL, INC. BALANCE SHEET September 30, 1997 and June 30, 1998 (Unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY September June --------- ----- Current liabilities: Other accrued expenses $ 2,286 $ - Note payable - bank - 100,000 Warranty reserve 400 - Income taxes payable - 39,000 Deferred revenue 52,026 22,128 ---------- ---------- Total current liabilities 54,712 161,128 Deferred tax liability (Note 3) 2,000 4,000 Stockholders' equity: Preferred stock, $.0001 par value; 100,000,000 shares authorized, none issued - - Common stock, $.0001 par value; 800,000,000 shares authorized, 336,889,149 shares issued and outstanding 33,689 33,689 Additional paid-in capital 1,030,674 1,030,674 Retained earnings 67,989 165,976 ---------- ---------- Total stockholders' equity 1,132,352 1,230,339 ---------- ---------- $1,189,064 $1,395,467 =========== ========== See accompanying notes. 3 CLANCY SYSTEMS INTERNATIONAL, INC. STATEMENT OF OPERATIONS For the Three Months Ended June 30, 1997 and 1998 (Unaudited) 1997 1998 ---- ---- Revenues: Sales $ 28,036 $ 36,416 Service contract income 337,882 304,995 Parking ticket collections 20,994 64,777 -------- ---------- Total revenues 386,912 406,188 Costs and expenses: Cost of sales 20,096 12,828 Cost of services 154,327 119,404 Cost of parking ticket collections 18,849 49,189 General and administrative 141,863 94,720 Research and development 5,019 11,509 -------- -------- Total costs and expenses 340,154 287,650 -------- -------- Income from operations 46,758 118,538 Other income (expense); Interest income 985 678 Interest expens (1,631) - -------- -------- Total other income (expense) (646) 678 -------- -------- Income before provision for income taxes 46,112 119,216 Provision for income taxes 10,000 35,000 -------- -------- Net income $ 36,112 $ 84,216 ======== ======== Basic income per common share $ * $ * ======== ======== Weighted average number of shares outstanding 336,900,000 336,900,000 =========== =========== * Less than $.01 per share See accompanying notes. 4 CLANCY SYSTEMS INTERNATIONAL, INC. STATEMENT OF OPERATIONS For the Nine Months Ended June 30, 1997 and 1998 (Unaudited) 1997 1998 ---- ---- Revenues: Sales $ 98,054 $ 178,887 Service contract income 872,760 813,821 Parking ticket collections 286,289 129,227 ---------- ---------- Total revenues 1,257,103 1,121,935 Costs and expenses: Cost of sales 65,662 102,225 Cost of services 419,782 404,186 Cost of parking ticket collections 301,234 98,738 General and administrative 349,904 336,387 Research and development 24,310 37,024 ---------- ---------- Total costs and expenses 1,160,892 978,560 ---------- ---------- Income from operations 96,211 143,375 ---------- ---------- Other income (expense); Interest income 1,795 5,950 Interest expense (14,063) (8,507) ---------- ---------- Total other income (expense) (12,268) (2,557) ---------- ---------- Income before provision for income taxes 83,943 140,818 Provision for income taxes 20,000 42,831 ---------- ---------- Net income $ 63,943 $ 97,987 ========== ========== Basic income per common share $ * $ * ========== ========== Weighted average number of shares outstanding 336,900,000 336,900,000 =========== =========== * Less than $.01 per share See accompanying notes. 5 CLANCY SYSTEMS INTERNATIONAL, INC. STATEMENT OF STOCKHOLDERS' EQUITY For the Nine Months Ended June 30, 1998 (Unaudited)
Additional Common stock paid-in Retained Shares Amount capital earnings Balance, September 30, 1997 336,889,149 $ 33,689 $ 1,030,674 $ 67,989 Net income for the nine months ended June 30, 1998 - - - 97,987 ----------- -------- ----------- -------- Balance, June 30, 1998 336,889,149 $ 33,689 $ 1,030,674 $ 165,976 =========== ========= =========== =========
See accompanying notes. 6 CLANCY SYSTEMS INTERNATIONAL, INC. STATEMENT OF CASH FLOWS For the Nine Months Ended June 30, 1997 and 1998 (Unaudited) 1997 1998 ---- ---- Cash flows from operating activities: Net income $ 63,943 $ 97,987 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 591,549 186,631 Increase in accounts receivable (20,111) (82,563) Decrease (increase) in inventories (13,819) 22,116 Increase in prepaid expense - (32,084) Decrease/increase in deferred tax asset/liability 5,000 3,000 Decrease in accounts payable (6,774) - Decrease in accrued expenses - (2,286) Increase in income taxes payable 10,000 39,000 Decrease in deferred revenue 14,098 (29,898) Decrease in warranty reserve (2,700) (400) --------- ------- Total adjustments 577,243 103,516 --------- ------- Net cash provided by operating activities 641,186 201,503 Cash flows from investing activities: Acquisition of furniture and equipment - net (121,421) (185,466) Increase in software development costs (69,709) (48,474) Decrease (increase) in deposits and other assets 23,975 (76,475) --------- -------- Net cash used in investing activities (167,155) (310,415) Cash flows from financing activities: Proceeds from note payable - bank - 100,000 Payments on note payable - bank (393,000) - --------- ------- Net cash provided by (used in) financing activities (393,000) 100,000 --------- ------- Increase (decrease) in cash and cash equivalents 81,031 (8,912) Cash and cash equivalents at beginning of year 90,510 199,195 --------- ------- Cash and cash equivalents at end of year $ 171,541 $ 190,283 ========== ========= See accompanying notes. 7 CLANCY SYSTEMS INTERNATIONAL, INC. NOTES TO UNAUDITED FINANCIAL STATEMENTS June 30, 1998 1. Basis of presentation The accompanying financial statements have been prepared by the Company, without audit. In the opinion of management, the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary for a fair presentation of the financial position as of September 30, 1997 and June 30, 1998, and the results of operations and cash flows for the periods ended June 30, 1997 and 1998. 2. Inventories Inventories consist of the following at: September 30, June 30, 1997 1998 ---- ---- Finished goods $ - $ 18,849 Work in process 13,570 75,397 Purchased parts and supplies 197,038 94,246 --------- --------- $ 210,608 $ 188,492 ========= ========= 3. Income taxes The provision for income taxes for the three months and nine months ended June 30, 1997 and 1998 is based on the expected tax rate for the year. As of September 30, 1997 and June 30, 1998, total deferred tax assets and liabilities are as follows: September 30, June 30, 1997 1998 Deferred tax assets $ 1,000 $ - Deferred tax liabilities (2,000) (4,000) -------- -------- $ (1,000) $ (4,000) ======== ======== 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Material Changes in Financial Condition At June 30, 1998, the Company had working capital of $530,910 derived primarily from contract sales, as compared to working capital of $554,707 at September 30, 1997. The Company anticipates that working capital will be sufficient to meet its working capital requirements for the current year. Funds will continue to be used for general and administrative purposes, equipment purchases, equipment manufacturing, travel, marketing and research and development. Material Changes in Results of Operations During the quarter ended June 30, 1998, the Company generated revenues from contract sales from its professional services contracts, sales, and privatization. Berkeley, CA and Oklahoma City, OK each generated revenues in excess of 5% of total revenues. New clients added during the quarter include Logan, UT; West Los Angeles College; and Fresno County. Revenues for the 1998 quarter were higher than the prior year's quarter. Expenses for the 1998 quarter decreased by 15% over the prior year's quarter due to a decrease in cost of services which corresponds to the decrease in service contract income and a decrease in general and administrative expenses due to employee turnover. The Company reported a net profit of $84,216 for the 1998 quarter as compared to a net profit of $36,112 for the prior year's quarter. Parking ticket collection revenues for the nine month period ended June 30, 1998 decreased by 55% or $157,062 which was attributable to the conclusion of the Cicero, IL contract. Also because of the conclusion of the Cicero, IL contract,the cost of parking ticket collections decreased by $202,496, or 67%, as compared to the prior year's nine month period. PART II - OTHER INFORMATION Item 1. Legal Proceedings None. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 3.1 Articles of Incorporation filed with the Colorado Secretary of State on March 3, 1986. 3.1(a) Articles of Amendment to Articles of Incorporation 3.3 Bylaws 27.1 Financial Data Schedule (1) (b) During the quarter ended June 30, 1998, the Registrant has filed no reports on Form 8-K (1) Filed herewith 9 Signatures 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. Date: 8/14/98 Clancy Systems International, Inc. (Registrant) By: /s/ Stanley J. Wolfson Stanley J. Wolfson, President and Chief Executive Officer By: /s/ Lizabeth M. Wolfson Lizabeth M. Wolfson, Secretary- Treasurer and Chief Financial and Chief Accounting Officer 10 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM 10-QSB STATEMENTS FOR PERIOD ENDED 6/30/98 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-QSB FOR THE PERIOD ENDED 6/30/98. 9-MOS SEP-30-1998 JUN-30-1998 190,283 0 279,209 0 188492 692038 1,596,778 1,140,724 1,395,467 161,128 0 0 0 33,689 1,196,650 1,395,467 178,887 1,121,935 102,225 605,149 373,411 0 8,507 140,818 42,831 97,987 0 0 0 97,987 0 0
-----END PRIVACY-ENHANCED MESSAGE-----