-----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, WrR/AU8+X/uDA0DkZq/EIVmmKtqfwezYxGPX0DfndYTR6GQgyCcAKhHgF8W7wLuL B8RTSL8RmiplWFmO8/L5Dw== 0001055323-98-000008.txt : 19981110 0001055323-98-000008.hdr.sgml : 19981110 ACCESSION NUMBER: 0001055323-98-000008 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981109 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MATERIAL TECHNOLOGIES INC /CA/ CENTRAL INDEX KEY: 0001036668 STANDARD INDUSTRIAL CLASSIFICATION: INDUSTRIAL INSTRUMENTS FOR MEASUREMENT, DISPLAY, AND CONTROL [3823] IRS NUMBER: 954622822 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 333-23617 FILM NUMBER: 98740749 BUSINESS ADDRESS: STREET 1: 11835 OLYMPIC BLVD STREET 2: SUITE 705 EAST TOWER CITY: LOS ANGELES STATE: CA ZIP: 90064 BUSINESS PHONE: 3102085589 MAIL ADDRESS: STREET 1: 11835 OLYMPIC BLVD STREET 2: SUITE 705 EAST TOWER CITY: LOS ANGELES STATE: CA ZIP: 90064 10-Q 1 14 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended: September 30, 1998 Commission file number: 33-23617 MATERIAL TECHNOLOGIES, INC. ---------------------------- (Exact name of registrant as specified in its charter) Delaware 95-4622822 - ---------------- ---------------------- (State or other jurisdiction of (IRS Employer incorporation or organization) identification No.) 11661 San Vicente Boulevard Suite 707 Los Angeles, California 90049 ------------------------------- (address of principal executive offices) (310) 208-5589 (Registrant's telephone number including area code) Securities Registered pursuant to Section 12(g) of the Act: Common ------ 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 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. Yes X No - Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 or Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment of this form 10-K. [ ] The aggregate market value of the voting stock held by Non-affiliates of the registrant at October 30, 1998 was approximately $1,440,606.- Documents incorporated by reference-None. INDEX PAGE ---- Part 1. Financial Statements Balance Sheets 3 - 4 Statements of Operations - Third Quarter Ended September 30, 1997 and 1998 and from the Company's inception (October 21, 1983) through September 30, 1998 5 Statements of Cash Flows - Third Quarter Ended September 30, 1997 and 1998 and from the Company's inception (October 21, 1983) through September 30, 1998 6 - 7 Notes to Financial Statements 8 Management's Discussion and Analysis 9 - 11 Part 2. Other Information 11 NOTE 1. In the opinion of the Company's management, the accompanying unaudited financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position of the Company as of September 30, 1997 and 1998 and the results of operations and cash flows for the three month periods then ended. The operating results of the Company on a quarterly basis may not be indicative of operating results for the full year. NOTE 2. On October 9, 1998, the Company served notice to SecureFone, Inc. of their default on the $50,000 Note due the Company for expense reimbursement. On October 19, 1998, the Company received back 560,000 shares of its Common stock which was pledged as collateral on the $50,000 Note. The shares were subsequently returned to the Company's treasury and canceled. RESULTS OF OPERATIONS - ----------------------- FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 AND 1998 During the nine month period ended September 30, 1997, the Company generated approximately $351,986 which consisted of $196,070 under its research and development contract with Southwest Research, Inc., rental income of $2,655 from the sublease of its offices, rental income of $1,188 from the short term lease of a residence on which the Company foreclosed upon, $13,901 from the sale of marketable securities, net gain of $17,614 from the sale of the above indicated residence, and reimbursed expenses in the amount $120,558. During the nine month period ended September 30, 1998, the Company generated approximately $327,844 which consisted of $158,594 under its research and development contract with Southwest Research, Inc., and $169,250 from the sale of marketable securities. During the nine month periods ended September 30, 1997 and 1998, the Company incurred approximately $41,889, and $141,907, respectively, in development costs all of which related to the above indicated contract with Southwest Research Institute, Inc. Under the terms of the arrangement with Southwest Research Institute, Inc. the Company invoices the expenses it incurs under the agreement which includes direct labor and other direct costs, and related general and administrative overhead expenses. It is not intended that the Company earn any significant profit under the agreement. General and administration costs were $916,598, and $507,282, respectively, for the nine-month periods ended September 30, 1997 and 1998. The major expenses incurred during the nine month period ended September 30, 1997, consisted of officer's salary of $550,500 of which $475,500 was accrued for past services, professional fees of $118,365, consulting services of $71,396, salaries of $38,500, payroll taxes of $28,708, travel expenses of $17,428, outside services of $21,102, interest expense of $16,572, and telephone of $12,062. The major expenses incurred during the nine-month period ended September 30, 1998, consisted of $121,455 in consulting fees, $67,500 in officer's salary, bad debt of $50,000, $33,933 in interest expense, $130,996 in professional fees, $15,161 in telephone expense, $16,562 in salaries, and $11,582 in travel costs. FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1997 AND 1998 During the three month period ended September 30, 1997, the Company generated approximately $213,506 which consisted of $91,348 under its research and development contract with Southwest Research Institute, Inc., net gain of $1,600 from the sale of the above indicated a residence, and reimbursed expenses in the amount $120,558. During the three month period ended September 30, 1998, the Company generated approximately $128,371 which consisted of $13,000 under its research and development contract with Southwest Research Institute, Inc., and a net gain of $115,371 from the sale of marketable securities. During the three month period ended September 30, 1997, the Company incurred approximately $10,505 in development costs all of which related to the above indicated contract with Southwest Research Institute, Inc During the three month period ended September 30, 1998, the Company incurred approximately $46,993 in development costs all of which related to the above indicated contract with Southwest Research Institute, Inc The deficiency in research costs over the revenue generated from the Southwest Research contract was due to the maturity of the contract during the third quarter of 1998. General and administration costs were $639,310 and $191,044, respectively, for the three-month periods ended September 30, 1997 and 1998. The major expenses incurred in 1997, consisted of officer's salaries of $505,500 of which $475,500 was accrued for past services, professional fees of $43,887, office salaries of $7,672, consulting of $16,080, contractual services of $21,000, rent of $5,638, and office expense of $4,951. The major expenses incurred in 1998, consisted of bad debt of $50,000, $22,500 in officer's salary, $9,625 in interest expense, $49,224 in consulting fees, and $26,101 in professional fees. LIQUIDITY AND CAPITAL RESOURCES - ---------------------------------- Cash and cash equivalents as of September 30, 1997 and 1998 were $.00, and $82,495, respectively. During 1997, the Company received $113,902 through the issuance of its common stock, $71,750 through advances made by its President, $44,555 from the sale of a residence which was foreclosed on by the Company, $102,841 from its arrangement with Southwest Research Institute, Inc., and $3,843 in rental income. Of the $336,891 received in 1997, $278,063 was used in operations, $6,328 was used to purchase a computer system, and $52,500 was used to pay down loans made by the Company's President. During 1998, the Company received $125,000 through the issuance of its common stock, $106,500 through advances made by its President, $205,391 from its arrangement with Southwest Research Institute, Inc., and $250,200 from the sale of marketable securities. Of the $687,091 received in 1998, $503,947 was used in operations, $90,000 was used to purchase marketable securities, and $13,100 was used to pay down loans made by the Company's President. PART II. OTHER INFORMATION ITEM 2. CHANGES IN SECURITIES On August 10, 1998, the Company filed an Amendment to the Articles of Incorporation that raised the authorized number of shares of common stock to 30,000,000 shares and increased the voting power of the Class B common stock from 200 votes per share to 500 votes per share. These amendments were approved by a majority vote of stockholders and by the Board on July 31, 1998. As Robert M. Bernstein owns all of the 60,000 outstanding shares of Class B Common Stock, this action increased from 12,000,000 to 30,000,000 the number of votes he is entitled to cast based on his ownership of Class B common stock. This action assured Mr. Bernstein's continuing voting control of the Company. On June 25, 1998, the Board authorized and the Company issued to Robert M. Bernstein and Joel Freedman warrants to purchase 2,000,000 shares of Common Stock at $.50 per share with an expiration date of June 30, 2002. Mr. Bernstein received a Warrant to Purchase 1,800,000 shares and Mr. Freedman received a Warrant to Purchase 200,000 shares. In August 1998, the Board adopted the Company's 1998 Stock Option Plan and authorized the issuance of 800,000 shares of Common Stock under that Plan and registered those shares on Form S-8. Also in August 1998, the Board authorized and the Company issued options to purchase 500,000 shares of Common Stock under that Plan to consultants for the Company. Those options were exercised for $125,000. In September 1998, the Board adopted the Company's 1998 Stock Plan and authorized the issuance of 800,000 shares of Common Stock under that Plan and registered those shares on Form S-8. Also in September, 1998, the Board authorized and the Company issued 200,000 shares of Common Stock under that plan to two consultants for services rendered to the Company. In October 1998, the Board authorized the issuance of an additional 100,000 shares under its Stock Plan to another consultant for services to the Company. In October 1998, the Board increased the number of options and shares available for issuance under the Stock Option Plan from 800,000 to 1,700,000, an increase of 900,000. In addition, the Board approved the issuance of options to a consultant to purchase 400,000 shares at $.25 per share. PURSUANT TO THE REQUIREMENTS OF SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. MATERIAL TECHNOLOGIES, INC. --------------------------- REGISTRANT /s/ Robert M. Bernstein______________ ---------------------------------------- ROBERT M. BERNSTEIN, PRESIDENT AND CHIEF FINANCIAL OFFICER DATE: NOVEMBER 2, 1998
MATERIAL TECHNOLOGIES, INC. (A Development Stage Company) BALANCE SHEETS ASSETS December 31, September 30, 1997 1998 -------------- ---------------- (Unaudited) CURRENT ASSETS Cash and Cash Equivalents $2,451 $82,495 Accounts Receivable - Net 62,332 14,048 Employee Advances - 1,500 Note Receivable on Reimbursed Expenses - Net - - Prepaid Expenses 1,500 - -------------- ---------------- TOTAL CURRENT ASSETS 66,283 98,043 -------------- ---------------- FIXED ASSETS Property and Equipment, Net of Accumulated Depreciation 95,227 93,133 -------------- ---------------- OTHER ASSETS Note Receivable 50,000 - Intangible Assets, Net of Accumulated Amortization 18,679 17,188 Investment in Marketable Securities 55,200 9,050 Refundable Deposit 1,868 1,868 -------------- ---------------- TOTAL OTHER ASSETS 125,747 28,106 -------------- ---------------- TOTAL ASSETS $ 287,257 $ 219,282 ============== ================ See accompanying notes
MATERIAL TECHNOLOGIES, INC. (A Development Stage Company) BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' (DEFICIT) ---------------------------------------- December 31, September 30, 1997 1998 --------------- ----------------- (Unaudited) CURRENT LIABILITIES Legal Fees Payable $103,757 $128,765 Consulting Fees Payable 67,778 67,067 Accounts Payable - Other 17,108 30,516 Wages Payable - 22,298 Accrued Payroll Taxes 24,269 19,124 Loan Payable - Officer 118,863 47,958 Loan Payable-Others 68,807 68,807 --------------- ----------------- TOTAL CURRENT LIABILITIES 400,582 384,535 --------------- ----------------- Payable on Research and Development Sponsorship 218,000 245,000 --------------- ----------------- REDEEMABLE PREFERRED STOCK Class B Preferred Stock, $.001 Par Value Authorized 15 Shares, Outstanding 15 Shares at December 31, 1997 and September 30, 1998; Redeemable at $10,000 Per Share After January 31, 2004 150,000 150,000 --------------- ----------------- STOCKHOLDERS' EQUITY (DEFICIT) Common Stock, $.001 Par Value, Authorized 30,000,000 Shares, Outstanding 5,787,000, at December 31, 1997, and 10,211,897 Shares at September 30, 1998 5,787 10,212 Class B Common Stock, $.001 Par Value, Authorized 100,000 Shares, Outstanding 60,000 Shares 60 60 Class A Preferred, $.001 Par Value, Authorized 900,000 Shares Outstanding 350,000 Shares 350 350 Additional Paid in Capital 2,436,445 2,741,969 Less Notes Receivable - Common Stock (14,720) (14,720) Deficit Accumulated During the Development Stage (2,964,447) (3,298,124) Unrealized Holding Gain on Investments in Securities 55,200 - --------------- ----------------- TOTAL STOCKHOLDERS' (DEFICIT) (481,325) (560,253) --------------- ----------------- TOTAL LIABILITIES AND STOCKHOLDERS' $ 287,257 $ 219,282 =============== ================= See accompanying notes
MATERIAL TECHNOLOGIES, INC. (A Development Stage Company) STATEMENTS OF OPERATIONS From Inception For the Three Months Ended For the Nine Months Ended (October 21, 1983) September 30, September 30, Through 1997 1998 1997 ---------------------------- --------------------------- ------------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) REVENUES Sale of Fatigue Fuses $- $- $- Sale of Royalty Interests - - - Research and Development Revenue 91,348 13,000 196,070 Test Services - - - ---------------------------- --------------------------- ------------------- TOTAL REVENUES 91,348 13,000 196,070 ---------------------------- --------------------------- ------------------- COSTS AND EXPENSES Research and Development 10,505 46,993 41,889 General and Administrative 639,310 191,044 916,598 ---------------------------- --------------------------- ------------------- TOTAL COSTS AND EXPENSES 649,815 238,037 958,487 ---------------------------- --------------------------- ------------------- INCOME (LOSS) FROM OPERATIONS (649,815) (225,037) (958,487) ---------------------------- --------------------------- ------------------- OTHER INCOME (EXPENSE) Expense Reimbursed 120,558 - 120,558 Rental Income - - 3,843 Interest Income - - - Gain on Sale of Marketable Securities - 115,371 13,901 Gain on Sale of Real Estate 1,600 - 1,600 Gain on Foreclosure of Real Estate - - 16,014 Miscellaneous Income - - - Loss on Sale of Equipment - - - Settlement of Teaming Agreement - - - Cancellation of Royalty - - - Litigation Settlement - - - ---------------------------- --------------------------- ------------------- TOTAL OTHER INCOME 122,158 115,371 155,916 ---------------------------- --------------------------- ------------------- NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS AND PROVISION FOR INCOME TAXES (436,309) (109,666) (606,501) PROVISION FOR INCOME TAXES - - - ---------------------------- --------------------------- ------------------- NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS (436,309) (109,666) (606,501) EXTRAORDINARY ITEMS Forgiveness of Debt - - - Utilization of Operating Loss Carry forward - - - NET INCOME (LOSS) $ (436,309) $ (109,666) $ (606,501) ============================ =========================== =================== PER SHARE DATA Income (Loss) Before Extraordinary Item - (0.011) - =========================== Extraordinary Items NET INCOME (LOSS) COMMON SHARES OUTSTANDING - 10,211,897 - =========================== 1998 September 30, 1998 ---------------- --------------------- (Unaudited) (Unaudited) REVENUES Sale of Fatigue Fuses $- $64,505 Sale of Royalty Interests - 198,750 Research and Development Revenue 158,594 1,207,584 Test Services - 10,870 ---------------- --------------------- TOTAL REVENUES 158,594 1,481,709 ---------------- --------------------- COSTS AND EXPENSES Research and Development 141,907 1,728,612 General and Administrative 507,282 3,093,012 ---------------- --------------------- TOTAL COSTS AND EXPENSES 649,189 4,821,624 ---------------- --------------------- INCOME (LOSS) FROM OPERATIONS (490,595) (3,339,915) ---------------- --------------------- OTHER INCOME (EXPENSE) Expense Reimbursed - 4,510 Rental Income - - Interest Income - 39,495 Gain on Sale of Marketable Securities 169,250 200,901 Gain on Sale of Real Estate - - Gain on Foreclosure of Real Estate - 18,697 Miscellaneous Income - 25,145 Loss on Sale of Equipment - (12,780) Settlement of Teaming Agreement - 50,000 Cancellation of Royalty (12,332) (12,332) Litigation Settlement - 18,095 ---------------- --------------------- TOTAL OTHER INCOME 156,918 331,731 ---------------- --------------------- NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS AND PROVISION FOR INCOME TAXES (333,677) (3,008,184) PROVISION FOR INCOME TAXES - (7,000) ---------------- --------------------- NET INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS (333,677) (3,015,184) EXTRAORDINARY ITEMS Forgiveness of Debt - (289,940) Utilization of Operating Loss Carry forward - 7,000 NET INCOME (LOSS) $ (333,677) $ (3,298,124) ================ ===================== PER SHARE DATA Income (Loss) Before Extraordinary Item (0.033) - ================ Extraordinary Items NET INCOME (LOSS) COMMON SHARES OUTSTANDING 10,211,897 - ================
MATERIAL TECHNOLOGIES, INC. (A Development Stage Company) STATEMENTS OF CASH FLOWS From Inception For the Three Months Ended For the Nine Months Ended (October 21, 1983) September 30, September 30, Through 1997 1998 1997 ---------------------------- --------------------------- ------------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (436,309) $ (109,666) $ (606,501) ---------------------------- --------------------------- ------------------- Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities Depreciation and Amortization 1,194 1,195 3,585 Bad Debt - 50,000 - Gain on Sale of Marketable Securities - (115,371) (13,901) Gain on Real Estate Foreclosure 4,045 - (17,202) Gain on Sale of Real Estate (1,600) - (1,600) Charge off of Deferred Offering Costs - - - Loss on Sale of Equipment - - - Issuance of Common Stock for Services - 2,000 2,000 Issuance of Stock for Agreement Modification - - - Forgiveness of Indebtedness - - - (Increase) Decrease in Accounts Receivable (48,055) (4,454) (93,229) (Increase) in Receivable on Reimbursed Expenses (50,000) - (50,000) Decrease in Prepaid Expenses 5,223 - 6,472 Increase (Decrease) in Accounts Payable and Accrued Expenses 485,968 2,930 583,897 Interest Accrued on Note Payable 403 - 15,100 Increase in Research and Development Sponsorship Payable - 9,000 - (Increase) in Note for Litigation Settlement - - - (Increase) in Deposits - - - ---------------------------- --------------------------- ------------------- TOTAL ADJUSTMENTS 397,178 (54,700) 435,122 ---------------------------- --------------------------- ------------------- NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (39,131) (164,366) (171,379) ---------------------------- --------------------------- ------------------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds From Sale of Equipment - - - Proceeds from Sale of Marketable Securities - 133,321 - Purchase of Marketable Securities - - - Net Proceeds from Sale of Real Estate 44,555 - 44,555 Purchase of Property and Equipment - - (6,328) (Increase) in Other Assets - - - Payment for License Agreement - - - ---------------------------- --------------------------- ------------------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 44,555 133,321 38,227 ---------------------------- --------------------------- ------------------- 1998 September 30, 1998 ------------ --------------------------- (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (Loss) $ (333,677) $ (3,298,124) ------------ --------------------------- Adjustments to Reconcile Net Income (Loss) to Net Cash Provided (Used) by Operating Activities Depreciation and Amortization 3,585 168,079 Bad Debt 50,000 50,000 Gain on Sale of Marketable Securities (169,250) (187,000) Gain on Real Estate Foreclosure - (18,697) Gain on Sale of Real Estate - - Charge off of Deferred Offering Costs - 36,480 Loss on Sale of Equipment - 12,780 Issuance of Common Stock for Services 7,617 306,052 Issuance of Stock for Agreement Modification 7,332 7,484 Forgiveness of Indebtedness - 165,000 (Increase) Decrease in Accounts Receivable 48,284 (15,548) (Increase) in Receivable on Reimbursed Expenses - (50,000) Decrease in Prepaid Expenses - 321 Increase (Decrease) in Accounts Payable and Accrued Expenses 54,858 639,769 Interest Accrued on Note Payable 5,695 45,512 Increase in Research and Development Sponsorship Payable 27,000 245,000 (Increase) in Note for Litigation Settlement - (25,753) (Increase) in Deposits - (2,189) ------------ --------------------------- TOTAL ADJUSTMENTS 35,121 1,377,290 ------------ --------------------------- NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES (298,556) (1,920,834) ------------ --------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds From Sale of Equipment - 10,250 Proceeds from Sale of Marketable Securities 250,200 267,950 Purchase of Marketable Securities (90,000) (90,000) Net Proceeds from Sale of Real Estate - 44,450 Purchase of Property and Equipment - (226,109) (Increase) in Other Assets - (69,069) Payment for License Agreement - (6,250) ------------ --------------------------- NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES 160,200 (68,778) ------------ ---------------------------
See accompanying notes 6 MATERIAL TECHNOLOGIES, INC. (A Development Stage Company) STATEMENTS OF CASH FLOWS From Inception For the Three Months Ended For the Nine Months Ended (October 21, 1983) September 30, September 30, Through 1997 1998 1997 ---------------------------- --------------------------- ------------------------ (Unaudited) (Unaudited) (Unaudited) (Unaudited) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of Common Stock Net of Offering Costs $- $125,000 $113,902 Costs incurred in Offering - - - Sale of Common Stock Warrants - - - Sale of Preferred Stock - - - Sale of Redeemable Preferred Stock - - - Capital Contributions - - - Loans From Officers - - 71,750 Repayments to Officer (8,500) (13,100) (52,500) ( Increase) in Loans - Other - - - ---------------------------- --------------------------- ------------------------ CASH FLOWS FROM FINANCING ACTIVITIES: (8,500) 111,900 133,152 ---------------------------- --------------------------- ------------------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,076) 80,855 - BEGINNING BALANCE CASH AND CASH EQUIVALENTS 3,076 1,640 - ---------------------------- --------------------------- ------------------------ ENDING BALANCE CASH AND CASH EQUIVALENTS $ - $ 82,495 $ - ============================ =========================== ======================== 1998 September 30, 1998 --------------- ------------------------------- (Unaudited) (Unaudited) CASH FLOWS FROM FINANCING ACTIVITIES Issuance of Common Stock Net of Offering Costs $125,000 $ 957,319 ------------------------------- Costs incurred in Offering - (36,480) Sale of Common Stock Warrants - 18,250 Sale of Preferred Stock - 258,500 Sale of Redeemable Preferred Stock - 150,000 Capital Contributions - 301,068 Loans From Officers 106,500 581,807 Repayments to Officer (13,100) (323,021) ( Increase) in Loans - Other - 164,664 --------------- ------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES: 218,400 2,072,107 --------------- ------------------------------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 80,044 82,495 BEGINNING BALANCE CASH AND CASH EQUIVALENTS 2,451 - --------------- ------------------------------- ENDING BALANCE CASH AND CASH EQUIVALENTS $ 82,495 $ 82,495 =============== =============================== See accompanying notes
Material Technologies, Inc. 10-Q Period Ended September 30, 1998 Schedule 27 Period Type 9-Mos Fiscal Year End 2/31/98 Period End 9/30/98 Cash 82495 Securities 9050 Receivables 65548 Allowances -50000 Inventory 0 Current Assets 98043 PP&E Depreciation Total Assets 219282 Current Liabilities 384535 Bonds 0 Preferred - Mandatory 150000 Preferred 350 Common 10272 Other SE -570875 Total Liability and Equity 219282 Sales Total Revenue 158594 CGS 0 Total Costs Other Expenses 649189 Interest Expense 33933 Income (Pretax) -333677 Income Tax 0 Income Continuing -333677 Discontinued 0 Extraordinary 0 Changes 0 Net Income -333677 EPS Primary 0.033 EPS Diluted 0 -----END PRIVACY-ENHANCED MESSAGE-----