-----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, EdUbVqYPG/7Zx/8DcqWCdeBUcU0z0UnLNs/kdHsA1ziAea7djIzz6tcTXy/iyjvx XlKt9p3W+Nf904P6V53HZw== 0000789318-96-000005.txt : 19960216 0000789318-96-000005.hdr.sgml : 19960216 ACCESSION NUMBER: 0000789318-96-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960214 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: 1934 Act SEC FILE NUMBER: 033-04882-D FILM NUMBER: 96518577 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 FORM 10-QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1995 OR TRANSITION REPORT PURSUANT TO SECTION 13 0R 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: Indicated the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 336,889,147 common shares were outstanding as of February 9, 1996. CLANCY SYSTEMS INTERNATIONAL, INC. INDEX Page No. PART I. FINANCIAL INFORMATION Balance Sheet - September 30, 1995 and December 31, 1995 2 and 3 Statement of Operations - For the Three Months Ended December 31, 1994 and 1995 4 Statement of Stockholders' Equity - For the Three Months Ended December 31, 1995 5 Statement of Cash Flows - For the Three Months Ended December 31, 1994 and 1995 6 Notes to Unaudited Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II. OTHER INFORMATION 8 CLANCY SYSTEMS INTERNATIONAL, INC. BALANCE SHEET SEPTEMBER 30, 1995 AND DECEMBER 31, 1995 (Unaudited) ASSETS September December ---------- ---------- Current assets: Cash, including interest bearing accounts of $166,616 (September) and $167,978 (December) $ 236,404 $ 200,630 Accounts receivable, less allowance for doubtful accounts of $0 175,281 171,313 Inventories (Note 2) 178,154 173,498 Income taxes refundable 12,000 17,000 Deferred tax asset (Note 3) 5,000 5,000 Other current assets - 2,768 ---------- --------- Total current assets 606,839 570,209 Furniture and equipment, at cost: Office furniture and equipment 98,278 119,748 Equipment under service contracts 1,207,529 1,206,434 ---------- ---------- 1,305,807 1,326,182 Less accumulated depreciation 848,617 844,099 ---------- ---------- Net furniture and equipment 457,190 482,083 Other assets: Deposits and other 19,947 21,927 Software licenses 16,882 16,882 Software development costs 205,692 211,227 ---------- ---------- 242,521 250,036 Less accumulated amortization 147,237 156,468 ---------- ---------- Net other assets 95,284 93,568 $1,159,313 $1,145,860 ========== ========== CLANCY SYSTEMS INTERNATIONAL INC. Balance Sheet September 30, 1995 and December 31, 1995 (Unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY September December ---------- ---------- Current liabilities: Warranty reserve $ 7,300 $ 6,900 Deferred revenue 62,521 63,786 ---------- ---------- Total current liabilities 69,821 70,686 Deferred tax liability (Note 3) 9,000 9,000 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 16,129 1,811 ---------- ---------- Total stockholders' equity 1,080,492 1,066,174 ---------- ---------- $1,159,313 $1,145,860 ========== ========== CLANCY SYSTEMS INTERNATIONAL, INC. STATEMENT OF OPERATIONS For the Three Months Ended December 31, 1994 and 1995 (Unaudited) 1994 1995 ---- ---- Revenues $ 268,826 $ 257,416 Costs and expenses: Cost of sales 4,983 20,564 Contract support costs 45,024 50,229 General and administrative 101,072 128,667 Depreciation and amortization 61,445 56,755 Research and development 6,157 17,328 Loss on disposal of fixed assets - 4,552 ---------- ---------- Total costs and expenses 218,681 278,095 Income (loss) from operations 50,145 (20,679) Other income (expense) Interest income 305 1,361 Interest expense (206) - ---------- ---------- Total other income (expense) 99 1,361 Income (loss) before income taxes provision for income taxes 50,244 (19,318) Current income tax expense (benefit) (Note 3) - (5,000) ---------- ---------- Net income (loss) $ 50,244 $ (14,318) ========== ========== Net income (loss) per share $ * $ (*) Weighted average number of shares outstanding 336,900,000 336,900,000 =========== =========== * less than $.01 per share CLANCY SYSTEMS INTERNATIONAl, INC. STATEMENT OF STOCKHOLDER'S EQUITY For the Three Months Ended December 31, 1995 (Unaudited) Additional Common Stock paid-in Retained Shares Amount capital earnings -------------------- ---------- ---------- Balance, September 30, 1995 336,889,149 $33,689 $1,030,674 $ 16,129 Net loss for the three months ended December 31, 1995 - - - (14,318) ------------ ---------- ---------- ---------- Balance December 31, 1995 336,889,149 $33,689 $1,030,674 $ 1,811 =========== ========= ========== ========== CLANCY SYSTEMS INTERNATIONAL, INC. STATEMENT OF CASH FLOWS For the Three Months Ended December 31, 1994 and 1995 (Unaudited) 1994 1995 ---- ---- Cash flows from operating activities: Net income (loss) $ 50,244 $(14,318) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 61,445 56,755 Increase (decrease) in deferred revenue (28,732) 1,265 Decrease in accounts receivable 97,117 3,968 Decrease in inventories 4,818 4,656 Increase in income taxes refundable - (5,000) Increase in other current assets - (3,690) Decrease in accounts payable (7,580) - Decrease in accrued expenses (2,000) - Decrease in warranty reserve - (400) Loss on disposal of fixed assets - 4,552 ---------- ---------- Total adjustments 125,068 62,106 ---------- ---------- Net cash provided by operating activities 175,312 47,788 Cash flows from investing activities: Acquisition of furniture and equipment and software development costs and patent costs (27,535) (81,582) Increase in deposits and other (1,445) (1,980) ---------- ---------- Net cash used in investing activities (28,980) (83,562) ---------- ---------- Cash flows from financing activities: Repayment of notes payable (59,530) - ---------- ---------- Net cash used in financing activities (59,530) - ---------- ---------- Increase (decrease) in cash 86,802 (35,774) Cash at beginning of period 44,705 236,404 ---------- ---------- Cash at end of period $131,507 $200,630 ========== ========== CLANCY SYSTEMS INTERNATIONAL, INC. NOTES TO UNAUDITED FINANCIAL STATEMENTS December 31, 1995 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, 1995 and December 31, 1995, and the results of operations and cash flows for the periods ended December 31, 1994 and 1995. 2. Inventories Inventories consist of the following at: September 30, December 31, 1995 1995 ---------- ------------ Finished goods $ 8,800 $ 8,675 Work in process 2,587 26,025 Purchased parts and supplies 166,767 138,798 ---------- ---------- $178,154 $173,498 ========== ========== 3. Income taxes The provision for income taxes for the quarter ended December 31, 1995 is based on the expected tax rate for the year. As of September 30, 1995 and December 31, 1995, total deferred tax assets and liabilities are as follows: September 30, December 31, 1995 1995 ---------- ---------- Deferred tax assets $ 3,000 $ 3,000 Deferred tax assets resulting from loss carryforward 2,000 2,000 Deferred tax liabilities (9,000) (9,000) ---------- ---------- $ (4,000) $ (4,000) ========== ========== Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Material Changes in Financial Condition At December 31, 1995 the Company had working capital of $499,523 derived primarily from contract sales, as compared to working capital of $537,018 at September 30, 1995. 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 December 31, 1995 the Company generated revenues from contract sales to the City of Oklahoma City, the Hertz Corporation, New Orleans, Berkeley California, Auraria Higher Education Center, Richmond Virginia and other professional service contract installations. Hertz Corporation, Oklahoma City, OK and Berkeley, CA each represented in excess of 5% of total revenues. New clients added to customer base during this period are Yonkers, NY; Naperville, IL; Piedmont Triad Airport in Greensboro, NC; Burnaby BC, and South Carolina State University in Orangeburg, SC. Revenue for the 1995 quarter was lower than the prior year's quarter, due to lower sales volume as a result of a weather-related decline of ticket issuance by several clients. The Company reported a net loss of $14,318 for the 1995 quarter as compared to net income of $50,244 for the prior year's quarter as a result of increased R & D expenses, increased travel expenses, and weather-related decline of ticket issuance by several clients. PART II - OTHER INFORMATION Item 1. Legal Proceedings The registrant reported in its annual report filed on Form 10-KSB for the fiscal year ended September 30, 1995 under Item 3 Legal Proceedings a lawsuit filed by the Registrant on November 4, 1995 in the United States District Court for the District of Colorado naming Symbol Technologies, Inc. as defendant, alleging patent infringement. See the Form 10-KSB for more complete description of such lawsuit. Item 6. Exhibits and Reports on Form 8-K (b) During the quarter ended December 31, 1995 the Registrant has filed no reports on Form 8-K. 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: February 12, 1996 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 -----END PRIVACY-ENHANCED MESSAGE-----