Form 8-K

-----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, PGAWRoHIbEOjHzUHWdmFJCuE1kPilb4dz/W5Qqy3uZ1jiaIu15bMX4+0D1bufTlO liH8TLEm14r4Xl4grOqv5A== 0000922907-03-000637.txt : 20031222 0000922907-03-000637.hdr.sgml : 20031222 20031222104247 ACCESSION NUMBER: 0000922907-03-000637 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031128 ITEM INFORMATION: Bankruptcy or receivership ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031222 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ATCHISON CASTING CORP CENTRAL INDEX KEY: 0000911115 STANDARD INDUSTRIAL CLASSIFICATION: IRON & STEEL FOUNDRIES [3320] IRS NUMBER: 481156578 STATE OF INCORPORATION: KS FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12541 FILM NUMBER: 031066678 BUSINESS ADDRESS: STREET 1: 400 S 4TH ST CITY: ATCHISON STATE: KS ZIP: 66002 BUSINESS PHONE: 9133672121 MAIL ADDRESS: STREET 1: 400 SOUTH 4TH STREET CITY: ATCHISON STATE: KS ZIP: 66002 8-K 1 form8k_121603.htm Form 8-K



                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D. C. 20549


                                 --------------


                                    FORM 8-K


                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

       Date of Report (date of earliest event reported): December 16, 2003

                          ATCHISON CASTING CORPORATION
- --------------------------------------------------------------------------------
               (Exact name of registrant as specified in charter)



        Kansas                     1-12541                    48-1156578
        ------                     -------                    ----------
(State of Incorporation)     (Commission File Number)      (I.R.S. Employer
                                                         Identification Number)



                   400 South Fourth Street, Atchison, KS 66002
- --------------------------------------------------------------------------------
               (Address of Principal Executive Offices) (Zip Code)

                                 (913) 367-2121
- --------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

                                 Not Applicable
- --------------------------------------------------------------------------------
          (Former name or former address, if changed since last report)


Item 3.  Bankruptcy or Receivership.

As previously reported on Form 8-K, on August 4, 2003, Atchison Casting
Corporation (the "Company") and certain U.S. subsidiaries filed a voluntary
petition for relief under Chapter 11 of Title 11 of the United States Code (the
"Bankruptcy Code"), in the United States Bankruptcy Court for the Western
District of Missouri (the "Bankruptcy Court") (Case No.03-50965). It is unlikely
that any funds will be left for stockholders of the Company after payment of
secured creditors.

Monthly Operating Report

As a part of the bankruptcy proceedings, the Company is required to file with
the Bankruptcy Court a Monthly Operating Report Summary ("MOR"). The Company
filed with the Bankruptcy Court the MOR as of and for the month ended November
28, 2003. Included in November's results is a charge of approximately $2.1
million recorded by the Company to write-off its net investment in Canadian
Steel Foundries, Ltd. A copy of certain financial information in the MOR is
attached hereto as Exhibit 99.1 and incorporated herein by reference.


Item 7.  Exhibits.

Exhibit 99.1 Financial information in the MOR as of and for the month ended
             November 28, 2003.


                                    SIGNATURE

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 hereunto duly authorized.

Date: December 22, 2003



                                 Atchison Casting Corporation



                                 By:      /s/ Kevin T. McDermed
                                    --------------------------------
                                          Kevin T. McDermed
                                          Chief Financial Officer

EX-99 3 form8k_121603exh991.htm EXHIBIT 99.1 Exhibit 99.1 to Form 8-K


ATCHISON CASTING CORPORATION SUBSIDIARIES AS DEBTORS AND DEBTORS-IN-POSSESSION
CONSOLIDATING BALANCE SHEET
(US $ IN 000s)
November 28, 2003

                                              ATCHISON       AMITE                                       MILWAUKEE       EMPIRE                       PENNSYLVANIA
                                             CASTING        FOUNDRY &       PROSPECT       QUAKER         IMPELLER        STEEL          LaGRANGE    STEEL FOUNDRY
ASSETS                                      CORPORATION   MACHINE, INC.  FOUNDRY, INC.   ALLOY, INC.   CASTINGS, INC. CASTINGS, INC.  FOUNDRY, INC.  & MACHINE CO.                   FELCONSOL.ONS
- ----------------------------------------   -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------  -

CASH                                             $9,045             $0             $0             $1             $0              $1             $0             $0

TRADE RECEIVABLES                                 8,035          1,695          2,020            924              0             229              0              0
OTHER RECEIVABLES                                   280              0              1              0              0              12              0              0
LESS ALLOWANCES                                    (150)            (2)           (25)          (193)             0             (18)             0              0
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------  -
NET ACCOUNT RECEIVABLES                           8,165          1,693          1,996            731              0             223              0              0

GROSS INVENTORY                                   8,952          1,981            677            234              0           1,635              0              0
LIFO RESERVE                                       (790)             0              0              0              0               0              0              0
VALUATION RESERVE                                  (145)           (51)           (42)             0              0               0              0              0
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------  -
NET INVENTORY                                     8,017          1,930            635            234              0           1,635              0              0

DEFERRED INCOME TAXES                            (7,932)             0              0              0              0               0              0              0

OTHER CURRENT ASSETS                              1,404            378            151            213              0              85              0              3
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------  -

TOTAL CURRENT ASSETS                             18,699          4,001          2,782          1,179              0           1,944              0              3

PROPERTY, PLANT, & EQUIPMENT                     54,778         19,075         15,186          7,446              0           3,412              0              0
ALLOWANCE FOR DEPRECIATION                      (34,856)       (10,999)       (11,163)        (3,715)             0          (2,797)             0              0
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------  -
NET PROPERTY                                     19,922          8,076          4,023          3,731              0             615              0              0

OTHER ASSETS - INTANGIBLES                            0              0              0              0              0               0              0              0
ACCUMULATED AMORTIZATION                              0              0              0              0              0               0              0              0
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------  -
NET INTANGIBLES                                       0              0              0              0              0               0              0              0

INVESTMENT IN SUBSIDIARIES                       51,705              0              0              0              0               0              0              0

DEFERRED CHARGES                                      0              0              0              0              0               0              0              0
ACCUMULATED AMORTIZATION                              0              0              0              0              0               0              0              0
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------  -
NET DEFERRED CHARGES                                  0              0              0              0              0               0              0              0

OTHER ASSETS                                      2,426              0              0              0            614             186              0              0

                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------  -

TOTAL ASSETS                                    $92,752        $12,077         $6,805         $4,910           $614          $2,745             $0             $3
                                           =============  =============  =============  =============  =============  ==============  =============  =============  =


ATCHISON CASTING CORPORATION SUBSIDIARIES AS DEBTORS AND DEBTORS-IN-POSSESSION
CONSOLIDATING BALANCE SHEET
(US $ IN 000s)
November 28, 2003

                                           SPRINGFIELD                    INVERNESS                                      NON -
                                              IRON         PRIMECAST       CASTINGS       ACC GLOBAL    CLAREMONT       DEBTOR
ASSETS                                     CORPORATION    INCORPORATED    GROUP, INC.    CORPORATION   FOUNDRY, INC.   SECURITIES    ELIMINATIONS   CONSOLIDATED
- ----------------------------------------   ------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------

CASH                                                $0             $0              $0             $0             $0             $0             $0         $9,047

TRADE RECEIVABLES                                    0              0               0             47              0          1,802              0         14,752
OTHER RECEIVABLES                                    0              0               0              0              0             33              0            326
LESS ALLOWANCES                                      0              0               0            (47)             0            (18)             0           (453)
                                           ------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
NET ACCOUNT RECEIVABLES                              0              0               0              0              0          1,817              0         14,625

GROSS INVENTORY                                      0              0               0              0              0          1,482              0         14,961
LIFO RESERVE                                         0              0               0              0              0              0              0           (790)
VALUATION RESERVE                                    0              0               0              0              0            (16)             0           (254)
                                           ------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
NET INVENTORY                                        0              0               0              0              0          1,466              0         13,917

DEFERRED INCOME TAXES                                0              0               0              0              0              0              0         (7,932)

OTHER CURRENT ASSETS                                 0              0               0              2              0            139              0          2,375
                                           ------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------

TOTAL CURRENT ASSETS                                 0              0               0              2              0          3,422              0         32,032

PROPERTY, PLANT, & EQUIPMENT                         0              0               0              0              0         11,185              0        111,082
ALLOWANCE FOR DEPRECIATION                           0              0               0              0              0         (3,669)             0        (67,199)
                                           ------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
NET PROPERTY                                         0              0               0              0              0          7,516              0         43,883

OTHER ASSETS - INTANGIBLES                           0              0               0              0              0          9,914              0          9,914
ACCUMULATED AMORTIZATION                             0              0               0              0              0         (8,022)             0         (8,022)
                                           ------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
NET INTANGIBLES                                      0              0               0              0              0          1,892              0          1,892

INVESTMENT IN SUBSIDIARIES                           0              0               0              0              0              0        (51,705)             0

DEFERRED CHARGES                                     0              0               0              0              0              0              0              0
ACCUMULATED AMORTIZATION                             0              0               0              0              0              0              0              0
                                           ------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
NET DEFERRED CHARGES                                 0              0               0              0              0              0              0              0

OTHER ASSETS                                        66              0               0              0              0              0              0          3,292

                                           ------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------

TOTAL ASSETS                                       $66             $0              $0             $2             $0        $12,830       ($51,705)       $81,099
                                           ============  =============  ==============  =============  =============  =============  =============  =============



ATCHISON CASTING CORPORATION SUBSIDIARIES AS DEBTORS AND DEBTORS-IN-POSSESSION
CONSOLIDATING BALANCE SHEET
(US $ IN 000s)
November 28, 2003


                                              ATCHISON       AMITE                                       MILWAUKEE       EMPIRE                       PENNSYLVANIA
                                             CASTING        FOUNDRY &       PROSPECT       QUAKER         IMPELLER        STEEL          LaGRANGE    STEEL FOUNDRY
LIABILITIES & NET WORTH                     CORPORATION   MACHINE, INC.  FOUNDRY, INC.   ALLOY, INC.   CASTINGS, INC. CASTINGS, INC.  FOUNDRY, INC.  & MACHINE CO.
- ----------------------------------------   -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------

ACCOUNT PAYABLE                                  $8,292         $1,570         $1,338         $1,541             $0            $170            $38             $0
ACCRUED EXPENSES                                 15,964            643          1,668           (910)           638           2,208          1,322            438
CURRENT PORTION - LONG TERM DEBT                 13,820              0              0              0              0               0              0              0
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------
TOTAL CURRENT LIABILITIES                        38,076          2,213          3,006            631            638           2,378          1,360            438

LONG TERM  LOAN                                  72,358              0              0              0              0               0              0              0
LONG TERM  LOAN - INTRACOMPANY                  (19,331)        12,541        (10,646)        17,474          8,276           7,781          2,739           (435)
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------
TOTAL LOANS                                      53,027         12,541        (10,646)        17,474          8,276           7,781          2,739           (435)

EXCESS ASSETS OVER COST                               0              0              0              0              0               0              0              0
ACCUMULATED AMORTIZATION                              0              0              0              0              0               0              0              0
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------
NET EXCESS ASSETS OVER COST                           0              0              0              0              0               0              0              0

DEFERRED TAXES                                    1,251              0              0              0              0               0              0              0

OTHER LONG TERM LIABILITIES                         841             40              0              0              0               0              0              0

LONG TERM PENSION                                 7,437              0              0              0              0           2,068              0              0

POST RETIREMENT OBLIGATION
   OTHER THAN PENSION                             5,806              0              0              0              0             463              0              0

MINORITY INTEREST IN SUBSIDIARY                     148              0              0              0              0               0              0              0


                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------
TOTAL LIABILITIES                               106,586         14,794         (7,640)        18,105          8,914          12,690          4,099              3

CAPITAL STOCK                                    63,575         12,000          6,678          1,894          3,269           1,400          3,000              0
RETAINED EARNINGS                               (77,409)       (14,717)         7,767        (15,089)       (11,569)        (11,345)        (7,099)             0
                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------
NET WORTH                                       (13,834)        (2,717)        14,445        (13,195)        (8,300)         (9,945)        (4,099)             0

                                           -------------  -------------  -------------  -------------  -------------  --------------  -------------  -------------
TOTAL LIABILITIES &
NET WORTH                                       $92,752        $12,077         $6,805         $4,910           $614          $2,745             $0             $3
                                           =============  =============  =============  =============  =============  ==============  =============  =============


ATCHISON CASTING CORPORATION SUBSIDIARIES AS DEBTORS AND DEBTORS-IN-POSSESSION
CONSOLIDATING BALANCE SHEET
(US $ IN 000s)
November 28, 2003

                                              SPRINGFIELD                     INVERNESS                                     NON -
                                                 IRON         PRIMECAST       CASTINGS       ACC GLOBAL   CLAREMONT        DEBTOR
LIABILITIES & NET WORTH                       CORPORATION    INCORPORATED    GROUP, INC.    CORPORATION   FOUNDRY, INC.  SUBSIDIARIES   ELIMINATIONS   CONSOLIDATED
- ----------------------------------------     -------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------

ACCOUNT PAYABLE                                        $0             $0              $0           $202             $0         $1,066             $0         14,217
ACCRUED EXPENSES                                        0              0               0             44              0            117              0         22,132
CURRENT PORTION - LONG TERM DEBT                        0              0               0              0              0                             0         13,820
                                             -------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
TOTAL CURRENT LIABILITIES                               0              0               0            246              0          1,183              0         50,169

LONG TERM  LOAN                                         0              0               0              0              0              0              0         72,358
LONG TERM  LOAN - INTRACOMPANY                         66              0               0           (138)             0         (2,201)       (16,126)             0
                                             -------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
TOTAL LOANS                                            66              0               0           (138)             0         (2,201)       (16,126)        72,358

EXCESS ASSETS OVER COST                                 0              0               0              0              0              0              0              0
ACCUMULATED AMORTIZATION                                0              0               0              0              0              0              0              0
                                             -------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
NET EXCESS ASSETS OVER COST                             0              0               0              0              0              0              0              0

DEFERRED TAXES                                          0              0               0              0              0          2,305              0          3,556

OTHER LONG TERM LIABILITIES                             0              0               0              0              0              0              0            881

LONG TERM PENSION                                       0              0               0              0              0              0              0          9,505

POST RETIREMENT OBLIGATION
   OTHER THAN PENSION                                   0              0               0              0              0              0              0          6,269

MINORITY INTEREST IN SUBSIDIARY                         0              0               0              0              0              0              0            148


                                             -------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
TOTAL LIABILITIES                                      66              0               0            108              0          1,287        (16,126)       142,886

CAPITAL STOCK                                           0              0               0            100              0          7,238        (35,579)        63,575
RETAINED EARNINGS                                       0              0               0           (206)             0          4,305              0       (125,362)
                                             -------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
NET WORTH                                               0              0               0           (106)             0         11,543        (35,579)       (61,787)

                                             -------------  -------------  --------------  -------------  -------------  -------------  -------------  -------------
TOTAL LIABILITIES &
NET WORTH                                             $66             $0              $0             $2             $0        $12,830       ($51,705)       $81,099
                                             =============  =============  ==============  =============  =============  =============  =============  =============


ATCHISON CASTING CORPORATION SUBSIDIARIES AS DEBTORS AND DEBTORS-IN-POSSESSION
INCOME STATEMENT
FOR THE MONTH ENDED NOVEMBER 28, 2003
(US $ IN 000s)
                                           ATCHISON          AMITE                                         MILWAUKEE         EMPIRE
                                            CASTING        FOUNDRY &        PROSPECT         QUAKER         IMPELLER         STEEL          LaGRANGE
                                          CORPORATION    MACHINE, INC.   FOUNDRY, INC.    ALLOY, INC.    CASTINGS, INC.  CASTINGS, INC.   FOUNDRY, INC.
                                         --------------  --------------- --------------- --------------- --------------- ---------------  --------------

SALES                                           $4,410             $877          $1,269             $91              $0          $1,695              $0

COST OF SALES :
    MATERIAL                                    (1,677)            (230)           (219)           (134)              0               0               0
    LABOR                                         (420)            (147)           (381)            (14)              0             (11)              0
    BURDEN                                      (2,092)            (670)           (546)           (147)              0          (1,438)              0
                                         --------------  --------------- --------------- --------------- --------------- ---------------  --------------
TOTAL STANDARD COST OF SALES                    (4,189)          (1,047)         (1,146)           (295)              0          (1,449)              0


                                         --------------  --------------- --------------- --------------- --------------- ---------------  --------------
STANDARD GROSS MARGIN                              221             (170)            123            (204)              0             246               0

MANUFACTURING VARIANCE                             (99)               0               0               0               0               0               0
                                         --------------  --------------- --------------- --------------- --------------- ---------------  --------------
TOTAL COST OF SALES                             (4,288)          (1,047)         (1,146)           (295)              0          (1,449)              0

GROSS PROFIT (LOSS)                                122             (170)            123            (204)              0             246               0

GENERAL & ADMINISTRATIVE                        (1,360)             (45)           (121)            (79)            (51)             (9)            (42)
SALES & MARKETING                                  (64)             (12)            (25)              1               0              (5)              0
                                         --------------  --------------- --------------- --------------- --------------- ---------------  --------------

NET OPERATING PROFIT (LOSS)                     (1,302)            (227)            (23)           (282)            (51)            232             (42)
OTHER INCOME (EXPENSE)                          (2,082)               0               0               0               0               0               0
                                         --------------  --------------- --------------- --------------- --------------- ---------------  --------------

EARNINGS BEFORE INTEREST & TAX                  (3,384)            (227)            (23)           (282)            (51)            232             (42)
INTEREST EXPENSE                                   149              (87)             46            (130)              0               0               0
MINORITY INTEREST                                    0                0               0               0               0               0               0
                                         --------------  --------------- --------------- --------------- --------------- ---------------  --------------

NET INCOME (LOSS) BEFORE TAX                    (3,235)            (314)             23            (412)            (51)            232             (42)
INCOME TAX                                        (155)             107              (9)            123               0             (66)              0
                                         --------------  --------------- --------------- --------------- --------------- ---------------  --------------

NET INCOME (LOSS)                              ($3,390)           ($207)            $14           ($289)           ($51)           $166            ($42)
                                         ==============  =============== =============== =============== =============== ===============  ==============

ATCHISON CASTING CORPORATION SUBSIDIARIES AS DEBTORS AND DEBTORS-IN-POSSESSION
INCOME STATEMENT
FOR THE MONTH ENDED NOVEMBER 28, 2003
(US $ IN 000s)


                                         PENNSYLVANIA     SPRINGFIELD                      INVERNESS                                         NON -
                                         STEEL FOUNDRY       IRON          PRIMECAST        CASTINGS       ACC GLOBAL      CLAREMONT        DEBTOR
                                         & MACHINE CO.    CORPORATION     INCORPORATED    GROUP, INC.     CORPORATION    FOUNDRY, INC.    SUBSIDIARIES
                                         --------------  --------------  --------------- --------------- --------------- -------------  ---------------

SALES                                               $0              $0               $0              $0              $0              $0            $779

COST OF SALES:
    MATERIAL                                         0               0                0               0               0               0            (297)
    LABOR                                            0               0                0               0               0               0            (145)
    BURDEN                                           0               0                0               0               0               0            (311)
                                         --------------  --------------  --------------- --------------- --------------- --------------- ---------------
TOTAL STANDARD COST OF SALES                         0               0                0               0               0               0            (753)


                                         --------------  --------------  --------------- --------------- --------------- --------------- ---------------
STANDARD GROSS MARGIN                                0               0                0               0               0               0              26

MANUFACTURING VARIANCE                               0               0                0               0               0               0               0
                                         --------------  --------------  --------------- --------------- --------------- --------------- ---------------
TOTAL COST OF SALES                                  0               0                0               0               0               0            (753)

GROSS PROFIT (LOSS)                                  0               0                0               0               0               0              26

GENERAL & ADMINISTRATIVE                           (11)              0                0               0             (10)              0             (40)
SALES & MARKETING                                    0               0                0               0               0               0             (14)
                                         --------------  --------------  --------------- --------------- --------------- --------------- ---------------

NET OPERATING PROFIT (LOSS)                        (11)              0                0               0             (10)              0             (28)
OTHER INCOME (EXPENSE)                               0               0                0               0               0               0              (5)
                                         --------------  --------------  --------------- --------------- --------------- --------------- ---------------

EARNINGS BEFORE INTEREST & TAX                     (11)              0                0               0             (10)              0             (33)
INTEREST EXPENSE                                     0               0                0               0               0               0               9
MINORITY INTEREST                                    0               0                0               0               0               0               0
                                         --------------  --------------  --------------- --------------- --------------- --------------- ---------------

NET INCOME (LOSS) BEFORE TAX                       (11)              0                0               0             (10)              0             (24)
INCOME TAX                                           0               0                0               0               0               0               8
                                         --------------  --------------  --------------- --------------- --------------- --------------- ---------------

NET INCOME (LOSS)                                 ($11)             $0               $0              $0            ($10)             $0            ($16)
                                         ==============  ==============  =============== =============== =============== =============== ===============



ATCHISON CASTING CORPORATION SUBSIDIARIES AS DEBTORS AND DEBTORS-IN-POSSESSION
INCOME STATEMENT
FOR THE MONTH ENDED NOVEMBER 28, 2003
(US $ IN 000s)


                                        ELIMINATIONS    CONSOLIDATED
                                        --------------  --------------

SALES                                            ($38)         $9,083

COST OF SALES:
    MATERIAL                                        0          (2,557)
    LABOR                                           0          (1,118)
    BURDEN                                         38          (5,166)
                                        --------------  --------------
TOTAL STANDARD COST OF SALES                       38          (8,841)


                                        --------------  --------------
STANDARD GROSS MARGIN                               0             242

MANUFACTURING VARIANCE                              0             (99)
                                        --------------  --------------
TOTAL COST OF SALES                                38          (8,940)

GROSS PROFIT (LOSS)                                 0             143

GENERAL & ADMINISTRATIVE                            0          (1,768)
SALES & MARKETING                                   0            (119)
                                        --------------  --------------

NET OPERATING PROFIT (LOSS)                         0          (1,744)
OTHER INCOME (EXPENSE)                              0          (2,087)
                                        --------------  --------------

EARNINGS BEFORE INTEREST & TAX                      0          (3,831)
INTEREST EXPENSE                                    0             (13)
MINORITY INTEREST                                   0               -
                                        --------------  --------------

NET INCOME (LOSS) BEFORE TAX                        0          (3,844)
INCOME TAX                                          0               8
                                        --------------  --------------

NET INCOME (LOSS)                                  $0         ($3,836)
                                        ==============  ==============

-----END PRIVACY-ENHANCED MESSAGE-----