-----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, EvZ4N4a3ruxQaJ9DQBbb44HBZLl9ymNj6d9vPzG6/I1V99yj/W7j/9/1X/17WHd0 9HOvvDRQQp/eGWlf0L2qzw== 0000812152-96-000003.txt : 19961120 0000812152-96-000003.hdr.sgml : 19961120 ACCESSION NUMBER: 0000812152-96-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961115 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: 96667220 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 September 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 September 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
September 30, December 31, 1996 1995 (Unaudited) CURRENT ASSETS Cash $ 1,187 $ 3,162 Accounts and notes receivable, net of allowance for doubtful accounts of $11,022 (1995) 164,941 180,960 Inventories (Note 3) 407,608 506,396 Prepaid expenses 8,500 15,144 Other 9,785 0 ------------ ------------- Total Current Assets 592,021 705,662 ------------ ------------- PROPERTY AND EQUIPMENT Manufacturing 169,050 160,186 Furniture and fixtures 156,958 154,062 Capitalized Lease 195,246 14,620 Vehicle 10,820 10,820 ------------ ------------- 532,074 339,688 Less accumulated depreciation 334,660 315,909 ------------ ------------- Total Property and Equipment 197,414 23,779 OTHER ASSETS Deferred Financing Costs 18,510 24,380 ------------ ------------- Total Assets $ 807,945 $ 753,821 ------------ ------------- ------------ -------------
See notes to financial statements 2 PART I - FINANCIAL INFORMATION (CONTINUED) OZO DIVERSIFIED AUTOMATION, INC. BALANCE SHEETS (CONTINUED) LIABILITIES AND SHAREHOLDERS' DEFICIENCY
September 30, December 31, 1996 1995 (UNAUDITED) CURRENT LIABILITIES Current portion of notes payable $ 150,610 $ 22,899 Accounts payable and accrued expenses 421,997 522,780 Note payable - Bank 45,118 27,500 ------------ ------------ Total Current Liabilities 617,725 573,179 ------------ ------------ OTHER LIABILITIES Long Term Debt and Capitalized Lease Obligation 384,639 248,406 Total Liabilities 1,002,364 821,585 ------------ ------------ 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 (1,409,489) (1,282,834) ------------ ------------ Total Shareholders' Deficiency (194,419) (67,764) ------------ ------------ Total Liabilities & Stockholders' Deficiency $ 807,945 $ 753,821 ------------ ------------ ------------ ------------
See notes to financial statements 3 OZO DIVERSIFIED AUTOMATION, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
Nine Months Ended September 30, 1996 1995 Net Sales $ 1,490,301 $ 1,355,392 Cost of Sales 773,018 699,164 ----------- ----------- Gross Profit 717,283 656,228 Operating Expenses: Marketing & Sales 252,781 256,742 Research & Development 119,992 122,982 General and Administrative 471,165 367,611 ----------- ----------- 843,938 747,335 ----------- ----------- Income (loss) before taxes (126,655) (91,107) ----------- ----------- NET INCOME (LOSS) $ (126,655) $ (91,107) ----------- ----------- ----------- ----------- INCOME (LOSS) PER SHARE $ ( 0.28) $ (0.20) ----------- ----------- ----------- -----------
See notes to financial statements 4 OZO DIVERSIFIED AUTOMATION, INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
Nine Months Ended September 30, 1996 1995 Cash flows from operating activities: Net Income (loss) $ (126,655) $ (91,107) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 18,751 11,373 Amortization of deferred financing costs 5,870 5,870 Other (9,785) (2,697) Decrease (increase) in assets: Accounts receivable 16,019 (93,371) Inventories 98,789 (178,708) Prepaid expenses 6,644 10,385 Increase (decrease) in accounts payable and accrued expenses (83,165) 341,480 ----------- ----------- Total adjustments 53,123 94,332 ----------- ----------- Net cash used in operating activities (73,532) 3,225 ----------- ----------- Cash flows from investing activities: Capital Expenditures (11,760) (642) ----------- ----------- Net cash provided (used) in investing activities (11,760) (642) ----------- ----------- Cash flows from financing activities: Increase (decrease) in notes payable 83,317 (12,148) ----------- ----------- Net cash provided (used) by financing activities 83,317 (12,148) ----------- ----------- Net increase (decrease) in cash (1,975) (9,565) Cash at beginning of period 3,162 47,111 ----------- ----------- Cash at end of period $ 1,187 $ 37,546 ----------- ----------- ----------- -----------
See notes to financial statements 5 OZO DIVERSIFIED AUTOMATION, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended September 30, 1996 1995 Net Sales $ 418,254 $ 576,672 Cost of Sales 183,492 280,767 ----------- ----------- Gross Profit 234,762 295,905 Operating Expenses: Marketing & Sales 44,852 127,809 Research & Development 38,237 38,659 General and Administrative 189,369 132,753 ----------- ------------ 272,458 299,221 ----------- ------------ Income (loss) before taxes (37,696) (3,316) ----------- ------------ NET INCOME (LOSS) $ (37,696) $ (3,316) ----------- ------------ ----------- ------------ EARNINGS (LOSS) PER COMMON SHARE $ (0.08) $ (0.01) ----------- ------------ ----------- ------------ See notes to financial statements 6 OZO DIVERSIFIED AUTOMATION, INC. NOTES TO FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 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 September 30, 1996 and the results of operations and changes in financial position for the nine months ended September 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 $ 295,210 $ 293,230 Work in process 50,573 81,521 Finished Goods 61,825 131,645 ------------- ------------ $ 407,608 $ 506,396
7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the first nine months ended September 30, 1996, the Company had revenues of $1,490,301, a 10% increase from revenues of $1,355,392 for the comparable period in 1995. During the quarter ended September 30, 1996, the Company had revenues of $418,254, a 27% decrease over revenues of $576,672 for the comparable period in 1995. The loss for the nine months ended September 30, 1996 was $126,655, compared with a loss of $91,107 for the comparable period in 1995. The loss for the quarter was $37,696 compared to a loss of $3,316 in 1995. Working capital, although limited, is expected to be adequate to fund operations and to facilitate completion of backlogged orders. Shipment delays, due to late receipt of customer engineering information and deferred customer quality tests, trial runs and sign-off, adversely affected revenues for the third quarter. The increase in general and administrative expenses was due to increases in costs of travel, payroll costs and fringe benefits, and incremental increases in the majority of general and administrative categories. Management is continuing focused marketing efforts in the depaneling application. The Company participated in the Surface Mount Technolgy industry trade show held in September, 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 October 9, 1996 the Company had a backlog of open orders of $743,000 compared to a backlog of $625,000 for the same period a year ago. 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 1-4 Not Applicable. Item 5 Other Information On September 23, 1996 the Company initiated a significant change in management by installing David J. Wolenski as President and Chief Executive Officer. Mr. Wolenski joined the Company following a fourteen year career with Schuller International, Inc. where he held positions in research, engineering, business development, quality assurance, and manufacturing. He succeeds Marjorie Zimdars-Orthman, who held the position of President and CEO since 1992. Ms. Zimdars- Orthman resigned from the position in order to assume a technical role within the Company and to address operational improvements needed within the Company's manufacturing division. Ron C. Carpenter assumed the position of Chief Financial Officer. 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 September 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: David J. Wolenski Ron C. Carpenter David J. Wolenski Ron C. Carpenter Principal Executive Officer Principal Financial Officer Dated: November 14, 1996 10 EX-27 2
5 9-MOS DEC-31-1996 SEP-30-1996 1,187 0 164,941 0 407,608 592,021 532,074 334,660 807,945 1,002,364 240,000 0 0 45,261 (239,680) 807,945 1,490,301 1,490,301 773,018 773,018 0 0 0 (126,655) 0 0 0 0 0 (126,655) (0.28) 0
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