-----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, WueC+DhHtmJ29wVbCyYtOwtSMrNfeoaJCT5Rf7bKh4xa8Ekf3w+X9VSKeasMMquv fR9rXN0QEjYpJtyhgmxTJA== 0000812152-96-000002.txt : 19960814 0000812152-96-000002.hdr.sgml : 19960814 ACCESSION NUMBER: 0000812152-96-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960813 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OZO DIVERSIFIED AUTOMATION INC /CO/ CENTRAL INDEX KEY: 0000812152 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 840922701 STATE OF INCORPORATION: CO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-16335 FILM NUMBER: 96611277 BUSINESS ADDRESS: STREET 1: 7450 EAST JEWELL AVE STE A CITY: DENVER STATE: CO ZIP: 80231 BUSINESS PHONE: 3033680401 MAIL ADDRESS: STREET 1: 7450 E JEWELL AVE STREET 2: STE A CITY: DENVER STATE: CO ZIP: 80231 10QSB 1 FORM 10QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10QSB QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1996 Commission File No. 0-16335 OZO DIVERSIFIED AUTOMATION, INC. 7450 East Jewell Avenue, Suite A Denver, Colorado 80231 Telephone: (303) 368-0401 Colorado 84-0922701 (State of Incorporation) (IRS Employer Identification No.) Indicate by check mark whether the Issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 As of June 30, 1996, Registrant had 452,664 shares of its $.10 par value common stock outstanding. 1 PART I - FINANCIAL INFORMATION OZO Diversified Automation, Inc. BALANCE SHEETS ASSETS
June 30, December 31, 1996 1995 (Unaudited) CURRENT ASSETS Cash $ 8,051 $ 3,162 Accounts and notes receivable, net of allowance for doubtful accounts of $11,022 (1995) 136,339 180,960 Inventories (Note 3) 421,665 506,396 Prepaid expenses 8,300 15,144 Other 9,548 0 ------------ ------------- Total Current Assets 583,902 705,662 ------------ ------------- PROPERTY AND EQUIPMENT Manufacturing 160,186 160,186 Furniture and fixtures 156,958 154,062 Capitalized Lease 14,620 14,620 Vehicle 10,820 10,820 ------------ ------------- 342,584 339,688 Less accumulated depreciation 322,500 315,909 ------------ ------------- Total Property and Equipment 20,084 23,779 OTHER ASSETS Deferred Financing Costs 20,467 24,380 ------------ ------------- Total Assets $ 624,453 $ 753,821 ------------ ------------- ------------ -------------
See notes to financial statements 2 PART I - FINANCIAL INFORMATION (CONTINUED) OZO DIVERSIFIED AUTOMATION, INC. BALANCE SHEETS (CONTINUED) LIABILITIES AND SHAREHOLDERS' DEFICIENCY
June 30, December 31, 1996 1995 (UNAUDITED) CURRENT LIABILITIES Current portion of notes payable $ 115,903 $ 22,899 Accounts payable and accrued expenses 367,155 522,780 Note payable - Bank 53,812 27,500 ------------ ------------ Total Current Liabilities 536,870 573,179 ------------ ------------ OTHER LIABILITIES Long Term Debt and Capitalized Lease Obligation 244,306 248,406 Total Liabilities 781,176 821,585 ------------ ------------ SHAREHOLDERS' DEFICIENCY Preferred stock, $.10 par value authorized 1,000,000 shares issued - none Common stock, $.10 par value authorized, 5,000,000 shares issued and outstanding - 452,664 shares (1996) 452,664 shares (1995) 45,261 45,261 Capital in excess of par value 1,169,809 1,169,809 Accumulated deficit (1,371,793) (1,282,834) ------------ ------------ Total Shareholders' Deficiency (156,723) (67,764) ------------ ------------ Total Liabilities & Stockholders' Deficiency $ 624,453 $ 753,821 ------------ ------------ ------------ ------------
See notes to financial statements 3 OZO DIVERSIFIED AUTOMATION, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
Six Months Ended June 30, 1996 1995 Net Sales $ 1,072,048 $ 778,719 Cost of Sales 589,527 418,397 ----------- ----------- Gross Profit 482,521 360,322 Operating Expenses: Marketing & Sales 204,100 128,402 Research & Development 81,309 84,322 General and Administrative 286,071 235,390 ----------- ----------- 571,480 448,114 ----------- ----------- Income (loss) before taxes (88,959) (87,792) ----------- ----------- NET INCOME (LOSS) $ (88,959) $ (87,792) ----------- ----------- ----------- ----------- INCOME (LOSS) PER SHARE $ ( 0.20) $ (0.19) ----------- ----------- ----------- -----------
See notes to financial statements 4 OZO DIVERSIFIED AUTOMATION, INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
Six Months Ended June 30, 1996 1995 Cash flows from operating activities: Net Income (loss) $ (88,959) $ (87,792) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 6,591 8,716 Amortization of deferred financing costs 3,913 3,913 Other (9,548) (2,697) Decrease (increase) in assets: Accounts receivable 44,621 (33,218) Inventories 84,731 (127,932) Prepaid expenses 6,844 8,210 Increase (decrease) in accounts payable and accrued expenses (129,313) 210,833 ----------- ----------- Total adjustments 7,839 67,825 ----------- ----------- Net cash used in operating activities (81,120) (19,967) ----------- ----------- Cash flows from investing activities: Capital Expenditures (2,895) 0 ----------- ----------- Net cash provided (used) in investing activities (2,895) 0 ----------- ----------- Cash flows from financing activities: Increase (decrease) in notes payable 88,904 (8,187) ----------- ----------- Net cash provided (used) by financing activities 88,904 (8,187) ----------- ----------- Net increase (decrease) in cash 4,889 (28,154) Cash at beginning of period 3,162 47,111 ----------- ----------- Cash at end of period $ 8,051 $ 18,957 ----------- ----------- ----------- -----------
See notes to financial statements 5 OZO DIVERSIFIED AUTOMATION, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended June 30, 1996 1995 Net Sales $ 359,497 $ 485,017 Cost of Sales 209,114 250,463 ----------- ----------- Gross Profit 150,383 234,554 Operating Expenses: Marketing & Sales 73,862 66,677 Research & Development 41,118 43,789 General and Administrative 149,724 140,482 ----------- ------------ 264,704 250,948 ----------- ------------ Income (loss) before taxes (114,321) (16,394) ----------- ------------ NET INCOME (LOSS) $ (114,321) $ (16,394) ----------- ------------ ----------- ------------ EARNINGS (LOSS) PER COMMON SHARE $ (0.25) $ (0.04) ----------- ------------ ----------- ------------ See notes to financial statements 6 OZO DIVERSIFIED AUTOMATION, INC. NOTES TO FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 1996 AND 1995 (UNAUDITED) In the opinion of management of OZO Diversified Automation, Inc. (the Company), the accompanying unaudited financial statements reflect all adjustments (consisting only of normal recurring accruals) necessary to present fairly the financial position of the Company as of June 30, 1996 and the results of operations and changes in financial position for the the six months ended June 30, 1996. The results of operations for the six months ended June 30, 1996 are not necessarily indicative of the results that may be expected for the year ending December 31, 1996. These unaudited financial statements should be read in conjunction with the Company's annual report on Form 10-KSB for the year ended December 31, 1995. NOTE 1 - A summary of significant accounting policies is currently on file with the Securities and Exchange Commission on Form 10-KSB. NOTE 2 - Income Taxes: At December 31, 1995, the Company had net operating loss carryforwards totaling approximately $1,119,000 that may be offset against future taxable income through 2010 and research and development credits of approximately $63,000 expiring through 2010. The Company has fully reserved the tax benefits of these operating losses because the likelihood of realization of the tax benefits cannot be determined. These carryforwards are subject to review by the Internal Revenue Service. Temporary differences between the time of reporting certain items for financial and tax reporting purposes, primarily from using different methods of reporting depreciation costs and warranty and vacation accruals, are not considered significant by management of the Company. NOTE 3 - Inventories:
June 30, December 31, 1996 1995 Raw Materials $ 256,619 $ 293,230 Work in process 82,684 81,521 Finished Goods 82,362 131,645 $ 421,665 $ 506,396
7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the first six months ended June 30, 1996, the Company had revenues of $1,072,048, a 38% increase from revenues of $778,719 for the comparable period in 1995. During the quarter ended June 30, 1996, the Company had revenues of $359,497, a 26% decrease over revenues of $485,017 for the comparable period in 1995. The loss for the first half ended June 30, 1996 was $88,959, compared with a loss of $87,792 for the comparable period in 1995. The loss for the quarter was $114,321 compared to a loss of $16,394 in 1995. Working capital, although limited, is expected to be adequate to fund operations and order backlog. Contributing to the loss in the second quarter were shipment delays due to delays in receipt of customer engineering information necessary to complete in-line depaneling systems. The increase in sales and marketing expenses was due to increased trade show activity and sales commissions incurred. The increase in general and administrative expenses was due to increases in costs of travel, payroll costs and fringe benefits, office equipment rental, and incremental increases in the majority of general and administrative categories. However, as a percentage of revenues, general and administrative costs were 3% less than the period for the previous year in 1995. Management is continuing focused marketing efforts in the depaneling application. The Company participated in the NEPCON East industry trade show held in June, 1996. The Company's PanelMASTER HS product, introduced in 1995, and the PanelROUTER product, introduced in 1994, continue to be well received in the industry. These products were developed by the Company over the past two years to keep the Company's products viable in a competitive marketplace that demanded higher speed performance and factory automation requirements. As of August 2, 1996 the Company had a backlog of open orders of $557,000 compared to a backlog at August 2, 1995 of open orders of $625,000. The current backlog of the Company and forecasted orders, in management's opinion, provide the opportunity for the Company to continue as a going concern. 8 PART II - OTHER INFORMATION OZO Diversified Automation, Inc. Items 1-5 Not Applicable. Item 6 Exhibits and Reports on Form 8-K a) Exhibits - none. b) No Reports on Form 8-K were filed during the quarter ending June 30, 1996. 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. OZO DIVERSIFIED AUTOMATION, INC. By: Marjorie Zimdars-Orthman Marjorie Zimdars-Orthman Principal Executive Officer Principal Financial Officer Dated: August 12, 1996 10 EX-27 2 FINANCIAL DATA SCHEDULE
5 6-MOS DEC-31-1996 JUN-30-1996 8,051 0 136,339 0 421,665 583,902 342,584 322,500 624,453 781,176 240,000 0 0 45,261 (201,984) 624,453 1,072,048 1,072,048 589,527 589,527 0 0 0 (88,959) 0 0 0 0 0 (88,959) (.20) 0
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