-----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, TZy0Ff7AFY1TczAbpCEUuXeW88bLQ+ekduG48135FcEyLdzaf4+890wr57fUydxg lRZjWI5pJC4M/3jhBO68vQ== 0000095986-98-000005.txt : 19981116 0000095986-98-000005.hdr.sgml : 19981116 ACCESSION NUMBER: 0000095986-98-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981113 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: 98747896 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, 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 October 31, 1998 Common Stock, one cent par value 9,557,561 NO DOCUMENTS INCORPORATED BY REFERENCE - --- SYNERGISTICS, INC. BALANCE SHEET ASSETS (UNAUDITED) Sept 30 Dec 31 1998 1997 CURRENT ASSETS Cash 69,648 36,686 Accounts receivable 522,573 529,682 Allowance for doubtful accts 0 (20,000) Inventories 420,887 335,088 Prepaid expenses 22,761 15,026 ------- ------- TOTAL CURRENT ASSETS 1,035,869 896,482 EQUIPMENT, less allowances of $93,667 and $79,267 for depreciation 58,560 62,921 DEFERRED TAXES 817,776 817,776 ------- ------- TOTAL ASSETS $ 1,912,205 $ 1,777,179 ============ ============ LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable $ 297,827 $ 307,033 Accrued expenses and other current liabilities 50,341 56,779 Amount due stockholder 148,220 86,297 --------- --------- TOTAL CURRENT LIABLITIES 496,388 450,109 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) (5,472,261) (5,561,008) --------- --------- 1,422,952 1,334,205 Cost of Common Stock held in Treasury (7,135) (7,135) --------- --------- 1,415,817 1,327,070 TOTAL LIABILITIES. PREFERRED STOCK --------- --------- AND SHAREHOLDERS' EQUITY $ 1,912,205 $ 1,777,179 ========= ========= SYNERGISTICS, INC. STATEMENT OF OPERATIONS PERIOD OF NINE MONTHS ENDED SEPTEMBER 30, 1998 AND 1997 (UNAUDITED) 1998 1997 Sales $ 1,911,049 $ 1,609,146 Other income 98,151 31,531 --------- --------- 2,009,200 1,640,677 Costs and expenses: Cost of sales 1,176,747 1,226,261 Selling, general and administrative expenses 743,535 669,318 Interest expense 172 965 -------- --------- 1,920,454 1,896,544 --------- --------- Net gain (loss) $ 88,746 $ (255,867) ========= ========= Gain (loss) per share of Common Stock Assuming no dilution $ 0 $ (0) Assuming full dilution $ 0 $ (0) SYNERGISTICS, INC. STATEMENT OF CHANGES IN FINANCIAL POSITION PERIODS OF NINE MONTHS SEPTEMBER 30, 1998 AND 1997 (UNAUDITED) 1998 1997 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $ 88,746 $ (255,867) Adjustments to reconcile net income to net cash (used) provided by operating activities: Depreciation 14,400 12,600 (Increase) decrease in accounts receivable (12,891) 125,332 (Increase) decrease in inventories (85,798) (50,525) (Increase) decrease in prepaid expenses and other assets (7,735) 2,431 Increase (decrease) in accounts payable (9,206) (33,559) Increase (decrease) in accrued expenses and other current liabilities (6,438) (6,280) Increase (decrease) in amounts due shareholder 61,923 (41,250) ------- ------- TOTAL ADJUSTMENTS (45,745) 8,749 ------- ------- NET CASH USED BY OPERATING ACTIVITIES 43,001 (247,118) CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (10,039) (8,853) Stock issued 0 210,000 ------ ------- NET CASH (USED) BY INVESTING ACTIVITIES (10,039) 201,147 NET CHANGE IN CASH 32,962 (45,971) CASH AT BEGINNING OF YEAR 36,686 101,550 ------- ------- CASH AT END OF PERIOD $ 69,648 $ 55,579 ======= ======= 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 Sept. 30, 1998 are not necessarily indicative of the operating results 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 Sept. 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: * 9/30/98 12/31/97 Raw Materials $ 105,200 $ 80,746 Finished Goods & WIP $ 315,687 $ 254,342 Total Inventories $ 420,887 $ 335,088 *Allocation Based Upon Estimate Gain per Common Share The weighted average number of shares of common stock outstanding used in computing gain 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 1998 1997 Assuming no dilution Common Stock Outstanding, October 31, 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 nine months ended September 30, 1998, the Company recorded sales of $1,911,049 compared to $1,609,146 for the nine months ended September 30, 1997. At September 30, 1998 the Company had a backlog of $38,643 compared to $88,376 at September 30, 1997. Cost of sales as a percentage of sales decreased to 61.6% from 76.2% for the nine months ended September 30, 1998 and 1997, respectively.This decrease is due to the reduction of new product development. For the period of nine months ended September 30, 1998, selling, general and administrative expenses increased by $74,217 over the period of nine months ended September 30, 1997. 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 first nine months of calendar year 1998. ITEM 3. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS A Special meeting in lieu of an annual meeting was held on May 28, 1998. William Tetrick, Dave Longworth, Larry Bishop, Thomas Gehman and Robert Pogorelc were re-elected as directors. A vote was taken to approve Livingston & Haynes, P.C. to continue as auditors for the coming year. 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, the undersigned thereunto being duly authorized. DATE November 13,1998 BY/S/WILLIAM M. TETRICK William M. Tetrick Chairman of the Board DATE November 13, 1998 BY/S/DAVID S. LONGWORTH David S. Longworth President and Clerk EX-27 2
5 9-MOS DEC-31-1997 SEP-30-1997 69,648 0 522,573 0 420,887 22,761 152,227 93,667 1,912,205 496,388 0 0 0 95,576 1,320,241 1,912,205 1,911,049 2,009,200 1,176,747 1,176,747 0 0 0 88,746 0 0 0 0 0 88,746 0.00 0.00
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