-----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, B+acvDW8eIW/T4BIaPrtoYC0LdvgNQ1uh+FDZhgx+SxkvHArS8kipwMXlCW+44iJ iaLhj84my+ZPNYotYakt6A== 0000095986-98-000002.txt : 19980518 0000095986-98-000002.hdr.sgml : 19980518 ACCESSION NUMBER: 0000095986-98-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 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: 98623433 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-QSB Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended Commission File Number O-6421 March 31, 1998 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's classes of common stock, as of the last practicable date. Class Outstanding at April 30, 1998 Common Stock, one cent par value 9,557,561 NO DOCUMENTS INCORPORATED BY REFERENCE - ----------------------------------------------------------- SYNERGISTICS, INC. BALANCE SHEET ASSETS (UNAUDITED) Mar 31 Dec 31 1998 1997 CURRENT ASSETS Cash $ 82,917 $ 36,686 Accounts receivable 440,723 529,682 Allowance for doubtful accts (21,248) (20,000) Inventories 323,774 335,088 Prepaid expenses 18,646 15,026 ------- ------- TOTAL CURRENT ASSETS 844,812 896,482 EQUIPMENT, less allowances of $84,067 and $79,267 for depreciation 58,929 62,921 DEFERRED TAXES 817,776 817,776 --------- --------- TOTAL ASSETS $1,721,517 $1,777,179 ========== ========== LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable $206,997 $307,033 Accrued expenses and other current 62,774 56,779 Amount due stockholder 73,605 86,297 ------- ------- TOTAL CURRENT LIABLITIES 343,376 450,109 STOCKHOLDERS' EQUITY Common Stock (9,557,561 shares issued including shares held in Treasury 95,576 95,576 Additional paid-in capital 6,799,637 6,799,637 Retained earnings (deficit) (5,509,937)(5,561,008) 1,385,276 1,334,205 Cost of Common Stock held in Treasury (7,135) (7,135) --------- --------- 1,378,141 1,327,070 TOTAL LIABILITIES. PREFERRED STOCK --------- --------- AND SHAREHOLDERS' EQUITY $1,721,517 $1,777,179 ========= ========= - ----------------------------------------------------------- SYNERGISTICS, INC. STATEMENT OF OPERATIONS PERIOD OF THREE MONTHS ENDED MARCH 31, 1998 AND 1997 (UNAUDITED) 1998 1997 Sales $ 603,920 $ 469,309 Other income 66,414 3,133 ------- ------- 670,334 472,442 Costs and expenses: Cost of sales 382,023 360,602 Selling, general and administrative 237,170 208,686 Interest expense 71 472 ------- ------- 619,264 569,760 ------- ------- Net gain (loss) $ 51,070 $(97,318) Gain (loss) per share of Common Stock Assuming no dilution $0.01 ($0.01) Assuming full dilution $0.01 ($0.01) - ----------------------------------------------------------- SYNERGISTICS, INC. STATEMENT OF CHANGES IN FINANCIAL POSITION PERIODS OF THREE MONTHS MARCH 31, 1998 AND 1997 (UNAUDITED) 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 51,070 $(97,318) Adjustments to reconcile net loss to net cash (used) provided by operating activities: Depreciation 4,800 4,200 (Increase) decrease in accounts receivable 90,207 160,677 (Increase) decrease in inventories 11,314 (60,361) (Increase) decrease in prepaid expenses and other assets (3,620) (11,889) Increase (decrease) in accounts payable (100,035) 7 Increase (decrease) in accrued expenses and other current liabilities 5,995 150,788 Increase (decrease) in amounts due shareholder (12,692) (13,750) ------- ------- TOTAL ADJUSTMENTS (4,031) 229,672 NET CASH USED BY OPERATING ACTIVITIES 47,039 132,354 CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (808) 0 Stock issued 0 0 ------- ----- NET CASH (USED) BY INVESTING ACTIVITIES (808) 0 ------ ------- NET CHANGE IN CASH 46,231 132,354 ------ ------- CASH AT BEGINNING OF YEAR 36,686 101,550 ------ ------- CASH AT END OF PERIOD 82,917 233,904 ====== ======= - ----------------------------------------------------------- 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 Annual Report Form 10-K. The results of operations for the period ended March 31, 1998 are not necessarily indicative of the operations for the full year. Basis of Presentation It is the opinion of management that all significant adjustments which are routine recurring adjustments reflected in the accompanying March 31 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 costs, included in costs of sales, are based upon such costs as actually incurred. Inventories Inventories are comprised of the following: * 3/31/98 12/31/97 Raw Materials 75,705 80,746 Finished Goods & WIP 248,069 254,342 Total Inventories 323,774 335,088 *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 Three Month Ended March 31 1998 1997 Assuming no dilution Common Stock Outstanding April 30, 1998 9,557,561 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 three months ended March 31, 1998, the Company recorded sales $603,920 compared to $469,309 for the three months ended March 31, 1997 At March 31, 1998 the Company had a backlog of $76,291 compared to $64,596 at March 31, 1997. Cost of sales as a percentage of sales decreased to 63.3% from 76.8% for the three months ended March 31, 1998 and 1997, respectively. This decrease is due to the reduction of new product development. For the period of three months ended March 31, 1998, selling, general and administrative expenses increased by $28,484 over the period of three months ended March 31, 1997. PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS There are currently no pending legal proceedings to which the Compan 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 first three months of calendar year 1998. ITEM 3. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None 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, t undersigned thereunto being duly authorized. DATE______May 14, 1998 BY/S/ WILLIAM M. TETRICK William M. Tetrick Chairman of the Board DATE______May 14, 1998 BY/S/ DAVID S. LONGWORTH David S. Longworth President and Clerk - -------------------------------------------------------------------- EX-27 2
5 3-MOS DEC-31-1998 MAR-31-1998 82,917 0 440,723 21,248 323,774 844,812 142,996 84,067 1,721,517 343,376 0 0 0 95,576 1,282,565 1,721,517 1,668,236 670,334 382,023 382,023 237,170 0 71 51,070 0 51,070 0 0 0 51,070 .01 .01 -----END PRIVACY-ENHANCED MESSAGE-----