-----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, TYDbwRP+Gd4n6BgdHxMX4aIm28dOqZ6G/3YKtQhCj6aGEM9gCXvoXTT3+Nhr8/Af kPUIGC0FbHI5Jw3bzPjJkg== 0000919607-98-000292.txt : 19980924 0000919607-98-000292.hdr.sgml : 19980924 ACCESSION NUMBER: 0000919607-98-000292 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980923 SROS: NONE 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: 98713661 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 six months ended June 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; 53,639,599 shares outstanding as of June 30, 1998 Vector Aeromotive Corporation Condensed Balance Sheets (Unaudited) June 30, June 30, 1998 1997 Assets Current Assets Cash and cash equivalents $ 351 $ 7,382 Inventories 543,837 556,612 Prepaid Expenses 2,251 - Accounts and other receivables 67,066 - Total current assets 613,505 563,994 Property & Equipment 101,124 115,952 Other Assets 1,850 1,850 Total assets $ 716,479 $ 681,796 Liabilities and Stockholders' Equity Current Liabilities Accounts payable $ 585,977 $ 728,218 Accrued expenses 173,442 198,994 Other payables 357,191 315 138 Loans payable to related parties - 423,407 Customer deposits 50,000 25,000 Total current liabilities 1,166,610 1,690,757 Long term liabilities Loans payable to related parties 1,589,301 1,199,130 Notes payable 250,000 250,000 Total long term liabilities 1,839,301 1,449,130 Total liabilities 3,005,911 3,139,887 Stockholders' equity Common stock, par value $.01 per $ 536,395 $ 536,395 share, 600,000,000 shares authorized; issued and outstanding: 53,639,599 in 1998 and 53,639,599 in 1997 Capital in excess of par value 36,786,109 36,786,109 Accumulated deficit (39,611,936) (36,780,595) Total stockholders' equity (2,289,433) (2,458,091) Total liabilities and stockholders' equity $ 716,479 $ 681,796 See accompanying notes to unaudited condensed financial statements. Vector Aeromotive Corporation Condensed Statements of Operations (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 1998 1997 1998 1997 Sales $ 152,300 $ - $ 443,903 $ - Cost of sales 125,349 - 326,687 - Gross profit (loss) 26,951 - 117,216 - Costs and expenses Marketing 31,342 - 34,131 - Race program (3,914) - (1,776) - Research & Developemnt 8,484 - 16,880 - Quality & Warranty 5,000 - 15,000 - General and administrative 69,119 173,972 123,810 423,515 Total costs and expenses 110,031 173 972 188,405 423,515 Operating profit (loss) (83,080) (173,972) (71,189) (423,515) Other income (expense) Interest and other income 40,149 - 40,149 - Interest expense (18,122) (9,352) (26,065) (18,705) Other expense (3,440) - (3,440) - Net profit (loss) (64,493) (183,325) (60,545) (442,220) Net profit (loss) per share ($0.00) ($0.00) ($0.00) ($0.01) Weighted average common shares outstanding 53,639,599 53,639,599 53,639,599 53,639,599 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 $(39,551,392) $(2,228,887) Net Profit (loss) (60,545) (60,545) Balance, June 30, 1998 53,639,599 $536,396 $36,786,109 $(39,611,936) $(2,289,433) See accompanying notes to unaudited condensed financial statements. Vector Aeromotive Corporation Condensed Statements of Operations (Unaudited) Six Months Six Months Ended Ended June 30, 1998 June 30, 1997 Cash flows from operating activities: Net profit (loss) $ (60,545) $ (442,220) Adjustments to reconcile net profit (loss) to net cash used in operating activities Depreciation and amortization 11,026 8,046 (Increase) decrease in Accounts receivable (67,076) 155,000 Inventories (104,180) - Prepaid expenses and other assets (2,251) 15,628 Increase (decrease) in Accounts payable (91,928) 18,007 Accrued expenses (40,241) (1,020) Other payables 49,165 13,646 Customer deposits 25,000 - Net cash from operating activities (281,030) (232,913) 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: Proceeds from issuance of common stock and warrants - - Proceeds from exercise of warrants - - Repayment of loan payable to Related party - Loan payable American Dream Int'l 285,627 206,430 Net cash from financing activities 285,627 206,430 Net increase (decrease) in cash and cash equivalents 351 (26,483) Cash and cash equivalents, beginning of period - 33,864 Cash and cash equivalents, end of period 351 7,381 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 pri nciples for inte rim financial information and with the instructions t o Form 10-Q and Article 10 of the Regulation S- X. Accordi ngly, they do not include all of the information and foo tnot es 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 six months ended June 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: June 30, June 30, 1998 1997 Raw Material $ 219,622 $ 223,666 Work in progress 221,887 48,666 Finished Goods 102,328 284,280 Total $ 543,837 $ 556,612 3. Payables to Related Parties As of June 30, 1998, the Company owed a total of $1,589,301 to related parties: Automobili Lamborghini S.p.A. $424,123 Automobili Lamborghini U.S.A., Inc. 568,577 American Dream International Limited 596,601 4. Notes Payable to Unrelated Parties As of June 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 June 30, 1998, the Company had cash and cash equivalents of $351, compared to $-0- at December 31, 1997; however, the Company had accounts receivable of $67,066, compared to $-0- at 1997 year end. The Company sold one M-12 automobile, which generated cash flow during the quarter of $160,000. The sale of the automobile also resulted in an additional short-term tax liability of $7,700. Finally the Company increased the balance of its loan from American Dream in the second quarter from $404,896 at March 31, 1998 to $596,601. The amount of Company's liabilities still exceeds its assets by $2,289,433. 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 June 30, 1998, of $160,000, which resulted from the sale of one M-12 automobile. After expenses associated directly with the production of the automobile and general operating expenses of $110,031, the Company had a net loss of $64,493. This compares to a $183,325 loss for the same period in 1997 during which time the Company was not in production. For the period ended June 30, 1998, the Company had a net loss of $60,545 compared to a net loss of $442,220 loss for the comparable period of 1997. In spite of the second quarter loss, the management of the Company is encouraged by the completion of two M-12 automobiles one of which was sold in the second quarter, the other sold in the third quarter. 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: September 21, 1998 By: /s/ Timothy J Enright Timothy J Enright, President Date: September 21, 1998 By: /s/ Thomas Hallquest Thomas Hallquest Chief Financial Officer EX-27 2
5 3-MOS 6-MOS DEC-31-1998 DEC-31-1998 APR-01-1998 JAN-01-1998 JUN-30-1998 JUN-30-1998 351 351 0 0 67,066 67,066 0 0 543,837 543,837 613,505 613,505 465,664 465,664 (364,540) (364,540) 716,479 716,479 1,166,610 1,166,610 0 0 0 0 0 0 536,396 536,396 (2,825,828) (2,825,828) 716,479 716,479 152,300 443,903 152,300 443,903 125,349 326,687 235,381 515,092 0 0 0 0 18,122 26,065 (64,493) (60,545) 0 0 (64,493) (60,545) 0 0 0 0 0 0 (64,493) (60,545) (.00) (.00) (.00) (.00)
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