-----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, TulVTbTr2ZjEYUUrclfnRsE8AWj2I/S9xOlTCLbX59+JsHJ/U68vtcnvW+OIyOQl DSvZD9okLJ6N+9woh0P/cA== 0000095986-97-000009.txt : 19971117 0000095986-97-000009.hdr.sgml : 19971117 ACCESSION NUMBER: 0000095986-97-000009 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SYNERGISTICS INC CENTRAL INDEX KEY: 0000095986 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690] IRS NUMBER: 042283157 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-06421 FILM NUMBER: 97722231 BUSINESS ADDRESS: STREET 1: 9 TECH CIRCLE CITY: NATICK STATE: MA ZIP: 01760 BUSINESS PHONE: 5086551340 MAIL ADDRESS: STREET 1: 9 TECH CIRCLE CITY: NAHCK STATE: MA ZIP: 01760 FORMER COMPANY: FORMER CONFORMED NAME: KILBANON CORP DATE OF NAME CHANGE: 19600201 10QSB 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended Commission File Number O-6421 September 30, 1997 SYNERGISTICS, INC. MASSACHUSETTS 04-2283157 (State of Incorporation) (IRS Employer ID Number) 9 Tech Circle, Natick, MA 01760 (Address of Principal Executive Office) (Zip Code) Registrant's telephone number, including area code (508) 655-1340 Securities registered pursuant to Section 12(g) of the Act. Common Stock $0.01 Par Value 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 preceeding 12 months (or 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 There is no public market for, and thus no aggregate market value of the registrants securities. Indicate the number of shares outstanding of each of the registrant classes of common stock, as of the last practicable date. Class Outstanding at October 31,1997 Common Stock, one cent par value 9,507,561 NO DOCUMENTS INCORPORATED BY REFERENCE - ---------------------------------------------------------- SYNERGISTICS, INC. BALANCE SHEET ASSETS (UNAUDITED) Sept 30 Dec 31 1997 1996 CURRENT ASSETS Cash $ 55,579 $ 101,550 Accounts receivable 374,480 527,559 Allowance (7,253) (35,000) Inventories 290,343 239,818 Prepaid expenses 18,279 20,710 ------- ------- TOTAL CURRENT ASSETS 731,428 854,637 EQUIPMENT, less allowances of $72,963 and $60,363 for depreciation 58,543 62,289 DEFERRED TAXES 817,776 817,776 ---------- --------- TOTAL ASSETS 1,607,747 1,734,702 LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable 186,760 220,275 Accrued expenses and other current 58,983 65,263 Amount due stockholder 100,047 141,297 ------- ------- TOTAL CURRENT LIABLITIES 345,790 426,835 STOCKHOLDERS' EQUITY Common Stock (9,507,561 shares issued including shares held in Treasury) 95,076 92,976 Additional paid-in capital 6,750,137 6,542,237 Retained earnings (deficit) (5,576,121)(5,320,211) ----------- ----------- 1,269,092 1,315,002 Cost of Common Stock held in Treasury (7,135) (7,135) ----------- ---------- 1,261,957 1,307,867 TOTAL LIABILITIES, PREFERRED STOCK ----------- ---------- AND SHAREHOLDERS' EQUITY $ 1,607,747 $ 1,734,702 =========== ========== - ---------------------------------------------------------- SYNERGISTICS, INC. STATEMENT OF OPERATIONS (UNAUDITED) Three Months Ending Nine Months ending September 30, September 30, 1997 1996 1997 1996 Sales 537,101 527,516 1,609,146 1,668,236 Other income 7,577 7,398 8,469 2,342 -------- ------- --------- --------- 544,678 534,914 1,617,615 1,670,578 Costs and expenses: Cost of sales 408,485 319,436 1,203,199 977,652 Selling, general and administrative 240,048 220,655 669,362 635,816 Interest expense 90 639 965 648 -------- ------- --------- --------- 648,623 540,739 1,873,526 1,614,116 Net income (loss) (103,945) (5,825) (255,911) 56,462 Income (loss) per share of Common Stock Assuming no dilution (.01) (.00) ($0.03) $0.01 Assuming full dilution (.01) (.00) ($0.03) $0.01 - ---------------------------------------------------------- SYNERGISTICS, INC. STATEMENT OF CHANGES IN FINANCIAL POSITION PERIODS OF NINE MONTHS SEPTEMBER 30, 1997 AND 1996 (UNAUDITED) 1997 1996 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) (255,911) 56,462 Adjustments to reconcile net loss to net cash (used) provided by operating activities: Depreciation 12,600 10,819 (Increase) decrease in: accounts receivable 125,332 (12,138) inventories (50,525) (63,666) prepaid expenses and other assets 2,431 (18,756) accounts payable (33,515) (39,151) accrued expenses and other current liabilities (6,280) (6,312) amounts due to shareholder (41,250) (41,249) -------- ------- TOTAL ADJUSTMENTS 8,793 (170,453) NET CASH USED BY OPERATING ACTIVITIES (247,118) (113,991) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (8,853) (24,130) Stock issued 210,000 0 -------- --------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 201,147 (24,130) ------- ------- NET CHANGE IN CASH (45,971) (138,121) CASH AT BEGINNING OF YEAR 101,550 332,151 -------- -------- CASH AT END OF PERIOD 55,579 194,030 ======== ======= - ---------------------------------------------------------- SYNERGISTICS, INC. SELECTED INFORMATION Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's An Report Form 10-K. The results of operations for the period ended September 30, 1997 are not necessarily indicative of the operating results for full year. Basis of Presentation It is the opinion of management that all significant adjustments which are routine recurring adjustments reflected in the accompanying September 30 financial statements which are necessary to present fairly such interim financial statements. Accounting Policy for Revenues and Costs of Sales Revenues are recognized at the time of product shipment. Cost of sales is computed using the "gross profit" method based upon historical results of operations. Other cost, included in costs of sales, are based upon such costs as actually incurred. Inventories Inventories are comprised of the following: * 9/30/97 12/31/96 Raw Materials 72,585 62,170 Finished Goods & WIP 217,758 177,648 ------- ------- Total Inventories 290,343 239,818 *Allocation Based Upon Estimate (Loss) per Common Share The weighted average number of shares of common stock outstanding used in computing (loss) per share does not include the effect of the conversion of the stock options as the exercise price exceeds the current market value of the security. The following schedule sets forth the number of shares used in computing earnings per share: Period of Nine Months Ended Sept 30, 1997 1996 Assuming no dilution Common Stock Outstanding October 31, 1997 9,507,561 9,297,561 Shares held in Treasury 16,445 16,445 Total Shares Authorized 12,000,000 12,000,000 - ---------------------------------------------------------- PART I FINANCIAL INFORMATION ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS For the nine months ended September 30, 1997, the Company recorded sales of $1,609,146 compared to $1,668,236 for the nine months ended September 30,1996 At September 30, 1997 the Company had a backlog of $88,376 compared to $48,631 at September 30, 1996. Cost of sales as a percentage of sales increased to 74.8% from 58.6% for the nine months ended September 30, 1997 and 1996, respectively. This increase is due to the development of new products demanded by our customers For the period of nine months ended September 30, 1997, selling, general and administrative expenses increased by $33,546 over the period of nine months ended September 30, 1996. PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS There are currently no pending legal proceedings to which the Company is a party or to which any of its property is subject. ITEM 2. CHANGE IN SECURITIES There have been no changes in the instruments defining the rights of holders of any class of securities of the Company during the quarter ending September 30, 1997. ITEM 3. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There have been no matters submitted for a vote of the security holders during the quarter ending September 30, 1997. ITEM 4. EXHIBITS AND FORM 8-K None. Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf, undersigned thereunto being duly authorized. DATE_Nov 15, 1997______________ BY/S/WILLIAM M.TETRICK_______________ William M. Tetrick Chairman of the Board DATE_Nov 15, 1997______________ BY_/S/DAVID S. LONGWORTH____________ David S. Longworth President and Clerk - ------------------------------------------------------------------- EX-27 2
5 9-MOS DEC-31-1997 SEP-30-1997 55,579 0 374,480 7,253 290,343 731,428 131,506 72,963 1,607,747 345,790 0 0 0 95,076 1,166,881 1,607,747 1,609,146 1,617,615 1,203,199 1,203,199 0 0 965 (255,911) 0 0 0 0 0 (255,911) (0.03) (0.03)
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