-----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, WTJ9XTbryVB1ZmBhIo6WvUymMY5uuUbZft0Q5k6DnD9vBi0vA6N+AlSFXkWI1C8n oH/zlZ2S3q9ltIBrpuNjsQ== 0001121887-01-500007.txt : 20010906 0001121887-01-500007.hdr.sgml : 20010906 ACCESSION NUMBER: 0001121887-01-500007 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010630 FILED AS OF DATE: 20010905 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: 1934 Act SEC FILE NUMBER: 000-06421 FILM NUMBER: 1731262 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 syn10q61.txt FORM 10QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-QSB [ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____________ to ____________ For the quarterly period ended: June 30, 2001 Commission File No.: 0-6421 SYNERGISTICS, INC. Massachusetts 04-2283157 (State of Incorporation) (IRS Employer I.D. Number) 9 Tech Circle, Natick, MA 01760 (Address of Principal Executive (Zip Code) Office) Registrant's telephone number (508) 655-1340 Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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. [ X ] Yes [ ] No Indicate the number of shares Common Stock $0.01 Par Value outstanding of each of the 9,632,561 shares outstanding registrant's classes of common as of July 31, 2001 stock, as of the latest practicable date. Transitional Small Business Disclosure Format (check one); [ X] Yes [ ] No PART I - FINANCIAL INFORMATION Item 1. Financial Statements SYNERGISTICS, INC. BALANCE SHEET ASSETS (UNAUDITED) June 30, 2001 Dec 31, 2000 CURRENT ASSETS Cash $ 33,820 64,881 Accounts receivable 420,837 470,958 Allowance for doubtful (26,000) (20,000) accounts Inventories 411,334 466,916 Prepaid expenses 20,592 11,013 -------- -------- TOTAL CURRENT ASSETS 860,583 993,768 EQUIPMENT, less allowances 26,888 33,683 of $93,435 and $84,435 for depreciation DEFERRED TAXES 759,674 759,674 -------- -------- TOTAL ASSETS 1,647,145 1,787,125 LIABILITIES, PREFERRED STOCK AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Trade accounts payable $328,610 $317,010 Accrued expenses and other 76,045 140,135 current liabilities -------- -------- TOTAL CURRENT LIABILITIES 404,655 457,145 STOCKHOLDERS' EQUITY Common stock (9,632,561 96,326 96,326 shares issued including shares held in Treasury) Common stock subscribed 700,000 500,000 Additional paid-in capital 6,873,887 6,873,887 Retained earnings (deficit) (6,420,588) (6,133,098) Cost of Common Stock held in Treasury (7,135) (7,135) -------- -------- TOTAL CAPITAL 1,242,490 1,329,980 -------- -------- TOTAL LIABILITIES AND 1,647,145 1,787,125 SHAREHOLDERS' EQUITY SYNERGISTICS, INC. STATEMENT OF OPERATIONS Six Months Ended June 30, 2001 (Unaudited) 2000 Sales, net $1,110,736 $1,322,841 Interest income 352 365 -------- -------- TOTAL REVENUE 1,111,088 1,323,206 Costs and expenses: Cost of sales 857,277 949,724 Selling, general and 540,035 617,199 administrative expenses Interest expense 1,265 1,028 -------- -------- TOTAL EXPENSES 1,398,577 1,567,951 -------- -------- NET INCOME (LOSS) $(287,489) $(244,745) Gain (loss) per share of Common Stock Assuming no dilution ($0.03) ($0.02) Assuming full dilution ($0.03) ($0.02) SYNERGISTICS, INC. STATEMENT OF CHANGES IN FINANCIAL POSITION Six Months Ended June 30 2001 (Unaudited) 2000 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $(287,489) $(244,745) Adjustments to reconcile net loss to net cash (used) provided by operating activities: Depreciation 9,000 8,970 (Increase) decrease in 56,121 (38,092) accounts receivable (Increase) decrease in 55,582 (19,267) inventories (Increase) decrease in (9,580) (11,024) prepaid expenses and other assets Increase (decrease) in 11,599 118,762 accounts payable Increase (decrease) in (64,089) (30,402) accrued expenses and other current liabilities Increase (decrease) in 200,000 200,000 amounts due shareholders -------- -------- TOTAL ADJUSTMENTS 258,633 228,947 -------- -------- NET CASH USED BY OPERATING (28,856) (15,798) ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (2,204) (9,008) -------- -------- NET CASH (USED) BY INVESTING (2,204) (9,008) ACTIVITIES -------- -------- NET CHANGE IN CASH (31,060) (24,806) CASH AT BEGINNING OF YEAR 64,880 52,325 -------- -------- CASH AT END OF PERIOD $33,820 $27,519 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-KSB. The results of operations for the period ended June 30, 2001 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 which are necessary to present fairly such interim financial statements are reflected in the accompanying June 30, 2001 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 are comprised of the following: (Unaudited) June 30, December 31, 2001 2000 Raw Materials $ 54,296 $ 60,232 Finished Goods & WIP 357,038 406,684 -------- -------- Total Inventories $411,334 $466,916 *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: Six Months Ended June 30, 2001 2000 Assuming no dilution Common Stock Outstanding 9,632,561 9,632,561 April 30, 2001 Shares held in Treasury 16,445 16,445 Total Shares Authorized 12,000,000 12,000,000 Item 2. Management's Discussion and Analysis or Plan of Operation. For the six months ended June 30, 2001, the Company recorded sales of $1,110,736 compared to $1,322,841 for the six months ended June 30, 2000. In the 2nd Quarter of the year 2001 decreases in sales continued. This sales trend contributed significantly towards a loss in revenue in Q2 of 2001. The Company believes that this decrease in sales was due to downward trends in the National economy and not due to any changes in the Company's products or it's marketing of same. Because this trend has continued for the first 2 quarters of 2001, corrective action will be taken in Q3 to bring expenses more in line with sales. At June 30, 2001 the Company had a backlog of $184,798 compared to $32,262 at June 30, 2000. Cost of sales as a percentage of sales increased to 77% from 72% for the three months ended June 30, 2001 and 2000, respectively. This is mainly due to New Product Development expense, lower sales then expected and lower margins on some products sold, mostly in the overseas market. For the period of six months ended June 30, 2001, selling and general and administrative expenses decreased by $77,164 over the period of six months ended June 30, 2000. This was mainly due to a decrease in the sales force during the 4th quarter of 2000. PART II - OTHER INFORMATION Item 1. Legal Proceedings No material legal proceedings are pending to which the Company is a party or to which any of its property is subject. Item 2. Changes in Securities and Use of Proceeds There have been no changes in the instruments defining the rights of holders of any class of securities of the Company during the first six months of calendar year 2001. Item 3. Defaults upon Senior Securities None. Item 4. Submission of Matters to a Vote of Security Holders No matter was submitted to a vote of the security holders during the Second Quarter of 2001. Item 5. Other Information None. Item 6. Exhibits and Reports on Form 8-K None. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Date August 24, 2001 By:/S/WILLIAM M. TETRICK ____________________________ William M. Tetrick Chairman of the Board Date August 24,2001__ By:/S/DAVID S. LONGWORTH ____________________________ David S. Longworth President and Clerk -----END PRIVACY-ENHANCED MESSAGE-----