-----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, BLt5bbNeRBLHtsUVSFGdJ5O6NJAPhWN3lHKCwL6UVNT7pHoeDsQGWPNvv9Y9Jcn0 ZZAbP57sqtrpmI482Y2wpg== 0000919607-99-000003.txt : 19990108 0000919607-99-000003.hdr.sgml : 19990108 ACCESSION NUMBER: 0000919607-99-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19990107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VECTOR AEROMOTIVE CORP CENTRAL INDEX KEY: 0000830664 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLES & PASSENGER CAR BODIES [3711] IRS NUMBER: 330254334 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-10559 FILM NUMBER: 99502192 BUSINESS ADDRESS: STREET 1: 975 MARTIN AVENUE CITY: GREEN COVE SPRINGS STATE: FL ZIP: 32043 BUSINESS PHONE: 9045290092 MAIL ADDRESS: STREET 1: 975 MARTIN AVENUE CITY: GREEN COVE SPRINGS STATE: FL ZIP: 32043 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the nine months ended September 30, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] for the transition period from to Commission file number 0-17303 VECTOR AEROMOTIVE CORPORATION (Exact name of registrant as specified in its charter) NEVADA 33-0254334 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 975 MARTIN AVENUE GREEN COVE SPRINGS, FLORIDA 32043 (Address of principal executive offices, including Zip Code) Registrant's telephone number, including area code (904) 529-0092 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 No X APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ______ 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. Common Stock, $.01 par value per share; 53,609,387 shares outstanding as of September 30, 1998 Vector Aeromotive Corporation Condensed Balance Sheets (Unaudited) September 30, December 31, 1998 1997 Assets Current Assets Cash and cash equivalents $ 606 $ 783 Inventories 536,630 1,409,917 Prepaid Expenses 1,566 3,620 Accounts and other receivables 61,566 14,745 Total current assets 600,369 1,429,066 Property & Equipment 93,111 768,688 Other Assets 1,850 85,744 Total assets $ 695,330 $ 2,283,498 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 553,843 $ 1,210,519 Accrued expenses 182,605 257,446 Other payables 377,647 - Loans payable to related parties - 487,024 Customer deposits 25,000 25,000 Total current liabilities 1,139,095 2,189,988 Long term liabilities Loans payable to related parties 1,621,836 - Notes payable 250,000 - Total long term liabilities 1,871,836 - Total liabilities 3,010,932 2,189,988 Stockholders' equity Common stock, par value $.01 per $ 536,395 $ 536,395 share, 600,000,000 shares authorized; issued and outstanding: 53,609,387 in 1998 and 53,609,387 in 1997 Capital in excess of par value 36,786,109 36,786,109 Accumulated deficit (39,638,106) (37,228,994) Total stockholders' equity (2,315,602) 93,510 Total liabilities and stockholders' equity $ 695,330 $ 2,283,498 See accompanying notes to unaudited condensed financial statements. Vector Aeromotive Corporation Condensed Statements of Operations (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 1998 1997 1998 1997 Sales $ 304,600 $ 118,500 $ 748,503 $ 118,500 Cost of sales 226,520 84,160 469,762 84,160 Gross profit (loss) 78,080 34,340 278,741 34,340 Costs and expenses Manufacturing overhead 50,585 - 147,254 - General and administrative 65,981 257,232 223,922 680,747 Research and development 936 - 18,177 - Total costs and expenses 117,503 257,232 389,353 680,747 Operating profit (loss) (39,423) (222,892) (110,612) (646,407) Other income (expense) Interest and other income 23,051 500,000 63,200 500,000 Interest expense (5,056) (12,398) (31,121) (31,102) Legal settlements (4,741) (8,181) Net profit (loss) (26,169) 264,710 (86,715) (177,509) Net profit (loss) per share ($0.0005) ($0.0049) ($0.0016) ($0.0034) Weighted average common shares outstanding 53,609,387 53,609,387 53,609,387 52,559,514 See accompanying notes to unaudited condensed financial statements. Vector Aeromotive Corporation Condensed Statement of Shareholders' Equity (Unaudited) Common Stock Capital in Excess Accumulated Shares Amount Of Par Value Deficit Total Balance, December 31, 1997 53,639,599 $536,396 $36,786,109 $(39,551,391) $(2,228,886) Net Profit (loss) (86,715) (86,715) Balance, Sept 30,1998 53,639,599 $536,396 $36,786,109 $(39,515,886) $(2,315,601) See accompanying notes to unaudited condensed financial statements. Vector Aeromotive Corporation Condensed Statements of Cash Flows (Unaudited) Nine Months Nine Months Ended Ended September 30, 1998 September 30, 1997 Cash flows from operating activities: Net profit (loss) $ (86,715) $ (177,510) Adjustments to reconcile net profit (loss) to net cash used in operating activities Depreciation and amortization 19,049 12,070 (Increase) decrease in Accounts receivable (61,566) 155,000 Inventories (96,993) 70,338 Prepaid expenses and other assets 1,566 15,628 Increase (decrease) in Accounts payable (124,062) (9,415) Accrued expenses 41,400 13,185 Other payables (2,857) (14,557) Customer deposits - - Net cash from operating activities (313,310) 64,739 Cash flows used in investing activities: Acquisition of property and equipment (4,246) - Net cash used in investing activities (4,246) - Cash flows from financing activities: Repayment of loan payable to Related party - (423,407) Loan payable American Dream Int'l 318,162 324,789 Net cash from financing activities 318,162 (98,618) Net increase (decrease) in cash and cash equivalents 606 (33,879) Cash and cash equivalents, beginning of period - 33,864 Cash and cash equivalents, end of period (14) (15) See accompanying notes to unaudited condensed financial statements. Vector Aeromotive Corporation Notes to Financial Statements 1. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of the Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements and should be read in conjunction with Notes to Financial Statements contained in the Company's Annual Report on Form 10-K for the year ended December 31, 1997. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 1998 are not necessarily indicative of the results that may be expected for the year ended December 31, 1998. 2. Inventories The components of inventory consist of the following: September 30, September 30, 1998 1997 Raw Material $ 186,355 $ 224,388 Work-in Progress 350,275 48,666 Finished Goods - 213,220 Total $ 536,630 $ 486,274 3. Payables to Related Parties As of September 30, 1998, the Company owed a total of $424,123 to Automobili Lamborghini S.p.A., $568,577 to Automobili Lamborghini U.S.A., Inc., and $629,136 to American Dream International Limited. 4. Notes Payable to Unrelated Parties As of September 30, 1998, the Company had borrowed a total of $250,000 uncollateralized, from an unrelated party accruing interest at 9%. No principle or interest payments have been made. PART 1 - FINANCIAL INFORMATION ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION General In November, 1996, the Company ceased operations due to a lack of funds. At year-end 1996, the Company had cash and cash equivalents of $33,864 and current liabilities of $2,902,824. In 1997, the Company entered into, among other agreements, a Loan Agreement with American Dream International, Limited, a corporation organized in the Bahamas. Under the Loan Agreement cash is funded on a discretionary basis only. The Company's Board of Directors and management also changed at the time. The operating philosophy currently in place at the Company is one of recommencing operations in a controlled manner with minimized operating expenses and gradually resolving the burdens of past due liabilities. Liquidity and Capital Resources At the quarter end September 30, 1998, the Company had cash and cash equivalents of $606, compared to $-0- at December 31, 1997; however, the Company had accounts receivable of $14,834, compared to $-0- at 1997 year end. The Company sold two M-12 automobiles, which generated cash flow during the quarter of $320,000. The sale of the automobiles also resulted in an additional short-term tax liability of $15,400. Finally the Company increased the balance of its loan from American Dream in the third quarter from $596,601 at June 30, 1998 to $629,136. The amount of Company's liabilities still exceeds its assets by $2,315,602. The Company's only source of capital at the present time remains a loan from American Dream, which is provided on a discretionary basis. There can be no assurance that this financing source will be sufficient to provide cash necessary for the Company to recommence production in full, to pay existing commitments such as rent or pay all or any significant portion of the existing creditors of the Company. The Company currently has no other commitment from others to provide additional capital, and there can be no assurance that such funding will be available if or when needed, or if available, that its terms will be favorable or acceptable to the Company. Should the Company be unable to obtain additional capital, when and if needed., it could be forced to either curtail operations or again cease business activities altogether. The lack of liquidity and capital resources continues to raise substantial doubt about the Company's ability to continue as a going concern. At the same time, the Company's sales of M12 automobiles and participation in nationally televised races offers potential for success for the Company's current plan of operations. Results of Operations The Company had revenues for the quarter ended September 30, 1998, of $320,000, which resulted from the sale of two M-12 automobiles. After expenses associated directly with the production of the automobile and general operating expenses of $117,503, the Company had a net operating loss of $39,423 for the quarter ended September 30, 1998. This compares to a $222,892 loss for the same period in 1997 during which time the Company was not in production. For the nine months ended September 30, 1998, the Company had a net loss of $86,715 compared to a net loss of $177,509 loss for the comparable period of 1997. In spite of the third quarter loss, the management of the Company is encouraged by the sale of two M-12 automobiles and the in process production of two more M-12 automobiles. PART 2 - OTHER INFORMATION ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K Exhibit 27 attached SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. VECTOR AEROMOTIVE CORPORATION Date: December 31, 1998 By: /s/ Timothy J Enright Timothy J Enright, President Date: December 31, 1998 By: /s/ Thomas Hallquest Thomas Hallquest Chief Financial Officer EX-27 2
5 3-MOS 9-MOS DEC-31-1998 DEC-31-1998 JUL-01-1998 JAN-01-1998 SEP-30-1998 SEP-30-1998 606 606 0 0 61,566 61,566 0 0 536,630 536,630 600,369 600,369 465,164 465,164 (372,054) (372,054) 695,330 695,330 1,139,095 1,139,095 0 0 0 0 0 0 536,396 536,396 (2,851,997) (2,851,997) 695,330 695,330 304,600 748,503 304,600 748,503 226,520 469,762 344,023 859,115 0 0 0 0 5,056 31,121 (26,169) (86,715) 0 0 (26,169) (86,715) 0 0 0 0 0 0 (26,169) (86,715) 0 0 0 0
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