-----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, VzFtv36phe87DS0S/TwQdPRw3d6nTD3+3VIVZJB6b8ZH/N3F3aY3Rj+pG3TUgjh5 eTDDZzFGFDcJ039myiOZPw== 0000789318-98-000003.txt : 19980225 0000789318-98-000003.hdr.sgml : 19980225 ACCESSION NUMBER: 0000789318-98-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980224 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: 98547821 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, 1997 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: 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: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. 336,889,149 common shares were outstanding as of February 13, 1998. CLANCY SYSTEMS INTERNATIONAL, INC. INDEX Page No. -------- PART I. FINANCIAL INFORMATION - ----------------------------- Balance Sheet - September 30, 1997 and December 31, 1997 2 and 3 Income Statement - For the Three Months Ended December 31, 1996 and 1997 4 Statement of Stockholders' Equity - For the Nine Months Ended December 31, 1997 5 Statement of Cash Flows - For the Nine Months Ended December 31, 1996 and 1997 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 1 CLANCY SYSTEMS INTERNATIONAL, INC. BALANCE SHEET September 30, 1996 and December 31, 1998 (Unaudited) ASSETS ------ September December --------- -------- Current assets: Cash and cash equivalents $ 199,195 $ 326,477 Accounts receivable 196,646 247,382 Inventories (Note 2) 210,608 206,534 Income taxes refundable 1,970 1,970 Deferred tax asset (Note 3) 1,000 - ------------ --------- Total current assets 609,419 782,363 Furniture and equipment, at cost: Office furniture and equipment 228,680 228,680 Equipment under service contracts 1,182,632 1,263,212 ------------ --------- 1,411,312 1,491,892 Less accumulated depreciation 994,732 1,040,542 ------------ --------- Net furniture and equipment 416,580 451,350 Other assets: Deposits and other 26,835 26,835 Software licenses 16,882 16,882 Software development costs 286,763 304,723 ------------ -------- 330,480 348,440 Less accumulated amortization 167,41 180,667 ------------ -------- Net other assets 163,065 167,773 ------------ -------- $1,189,064 $1,401,486 ============ ========== See accompanying notes. 2 CLANCY SYSTEMS INTERNATIONAL, INC. BALANCE SHEET September 30, 1997 and December 31, 1997 (Unaudited) LIABILITIES AND STOCKHOLDERS' EQUITY September December --------- -------- Current liabilities: Note payable - bank $ - $ 190,000 Other accrued expenses 2,286 - Warranty reserve 400 - Income taxes payable - 6,000 Deferred revenue 52,026 56,519 -------- --------- Total current liabilities 54,712 252,519 Deferred tax liability (Note 3) 2,000 2,000 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 82,604 --------- --------- Total stockholders' equity 1,132,352 1,146,967 --------- --------- $1,189,064 $1,401,486 ========== ========== See accompanying notes. 3 CLANCY SYSTEMS INTERNATIONAL, INC. INCOME STATEMENT For the Three Months Ended December 31, 1996 and 1997 (Unaudited) 1996 1997 ---- ---- Revenues: Sales $ 16,278 $ 83,003 Service contract income 288,587 230,228 Parking ticket collections 239,310 5,415 --------- --------- Total revenues 544,175 318,646 Costs and expenses: Cost of sales 15,387 36,377 Cost of services 135,666 126,226 Cost of parking ticket collections 255,685 20,719 General and administrative 98,590 101,459 Research and development 6,283 14,325 -------- ------- Total costs and expenses 511,611 299,106 -------- -------- Income from operations 32,564 19,540 Other income (expense): Interest income 429 2075 Interest expense (8,136) - --------- ------- Total other income (expense) (7,707) 2,075 --------- -------- Income before provision for income taxes 24,857 21,615 Provision for income taxes (Note 3) 7,000 7,000 --------- -------- Net income $ 17,857 $ 14,615 ========== ========= Net income per common share $ * $ * ========== ========= Weighted average numer of shares 336,900,000 336,900,000* outstanding less than $.01 per share See accompanying notes 4 CLANCY SYSTEMS INTERNATIONAL, INC. STATEMENT OF STOCKHOLDERS' EQUITY For the Nine Months Ended December 31, 1997 (Unaudited) Additional Common Stock Paid-in Retained Shares Amount capital earnings ------------------ ---------- ----------- Balance, 336,889,149 $33,689 $1,030,674 $ 67,989 September 30, 1997 Net income for the three months ended December 31, 1997 - - - 14,615 ------------ ------- --------- --------- Balance 336,889,149 $33,689 $1,030,674 $ 82,604 December 31, 1997 =========== ======= ========== ========= See accompanying notes. 5 CLANCY SYSTEMS INTERNATIONAL, INC. STATEMENT OF CASH FLOWS For the Three Months Ended December 31, 1996 and 1997 (Unaudited) 1996 1997 ---- ---- Cash flows from operating activities: Net income $17,857 $14,615 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 256,238 59,062 Deferred Income Tax Expense 7,000 7,000 Increase in accounts receivable (9,128) (50,736) Decrease (increase) in inventories (9,867) 4,074 Decrease in accounts payable (15,046) - Decrease in accrued expenses - (2,286) Increase in income taxes payable - 6,000 Increase (decrease) in deferred revenue (24,554) 4,493 Decrease in warranty reserve (900) (400) -------- ------- Total adjustments 203,743 21,207 -------- ------- Net cash provided by operating activities 221,600 35,822 Cash flows from investing activities: Acquisition of furniture and equipment (46,224) (80,580) Increase in software license and software development costs (24,663) (17,960) Decrease in deposits and other assets 29,860 - -------- -------- Net cash used in investing activities (41,027) (98,540) Cash flows from financing activities: Proceeds from note payable - bank - 190,000 Repayment of notes payable - bank (113,000) - -------- ------- Net cash provided by (used in) financing activities (113,000) 190,000 --------- ------- Increase (decrease) in cash equivalents 65,573 127,282 Cash and cash equivalents at begging period 90,510 199,195 -------- ------- Cash and cash equivalents at end of period $ 158,083 $326,477 ========= ======== See Accompanying Notes 6 CLANCY SYSTEMS INTERNATIONAL, INC. NOTES TO UNAUDITED FINANCIAL STATEMENTS December 31, 1997 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 December 31, 1997, and the results of operations and cash flows for the periods ended December 31, 1996 and 1997. 2. Inventories Inventories consist of the following at: September 30, December 31 1997 1997 ------------- ------------ Finished goods $ - $ 10,326 Work in process 13,570 41,307 Purchased parts and supplies 197,038 154,901 ------- -------- $210,608 $206,534 ======== ======== 3. Income taxes The provision for income taxes for the quarter ended December 31, 1997 is based is based on the expected tax rate for the year. As of September 30, 1997 and December 31, 1997, total deferred tax assets and liabilities are as follows: September 30, December 31, 1997 1997 ------------ ----------- Deferred tax assets $ 1,000 $ - Deferred tax liabilities (2,000) (2,000) --------- ---------- $ (1,000) $(2,000) ========= =========== 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Material Changes in Financial Condition - --------------------------------------- At December 31, 1997 the Company had working capital of $529,844 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 December 31, 1997 the Company generated revenues from contract sales to the City of Oklahoma City, the Hertz Corporation, Berkeley California, Yonkers NY, and other professional service contracts. Berkeley, CA each represents revenues in excess of 5% of total revenues. New clients added to customer base during this period include Southwest Texas State University, Parking Control Service, Regional Parking and Maywood, Illinois. Revenues for the 1997 quarter were lower than the prior year's quarter. The Company reported a net profit of $14,615 for the 1997 quarter as compared to net profit of $17,857 for the prior year's quarter. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K - ----------------------------------------- (b) During the quarter ended June 30, 1997 the Registrant has filed no reports on Form 8-K. 8 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 13, 1998 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 9 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB FOR PERIOD ENDED 12/31/97 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FOR 10-QSB FOR PERIOD ENDED 12/31/97 3-MOS SEP-30-1998 DEC-31-1997 326,477 0 247,382 0 206,534 782,363 1,491,892 1,040,542 1,401,486 252,519 0 0 0 33,689 1,113,278 1,401,486 83,003 318,646 36,377 183,322 115,784 0 0 21,615 7,000 14,615 0 0 0 14,615 0 0
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