UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
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ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2003
Or
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from To
MFIC CORPORATION
(Exact name of registrant as specified in its charter)
|
Delaware |
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04-2793022 |
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(State or Other
Jurisdiction |
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(I.R.S. Employer |
(Address of principal Executive Offices) (Zip Code)
617-969-5452
(Registrant’s Telephone Number, Including Area Code)
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 ý No o
Registrant had 7,516,962 shares of common stock, par value $.01 per share, outstanding on November 10, 2003.
MFIC CORPORATION
INDEX
2
MFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
September 30, |
|
December 31, |
|
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|
|
|
(unaudited) |
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|
|
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ASSETS |
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|
|
|
|
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Current Assets: |
|
|
|
|
|
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Cash and cash equivalents |
|
$ |
104,080 |
|
$ |
84,956 |
|
|
Accounts receivable (less allowance for doubtful accounts of $54,611 and $45,233 at September 30, 2003 and at December 31, 2002, respectively) |
|
1,410,685 |
|
2,458,108 |
|
||
|
Inventories |
|
4,156,104 |
|
3,898,098 |
|
||
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Prepaid expenses |
|
150,600 |
|
192,518 |
|
||
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Other current assets |
|
132,191 |
|
166,030 |
|
||
|
Note receivable – current |
|
16,429 |
|
16,429 |
|
||
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Total current assets |
|
5,970,089 |
|
6,816,139 |
|
||
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Property and equipment |
|
|
|
|
|
||
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Furniture, fixtures and office equipment |
|
317,444 |
|
288,472 |
|
||
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Machinery and equipment |
|
384,553 |
|
397,359 |
|
||
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Leasehold improvements |
|
159,674 |
|
133,522 |
|
||
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Total property and equipment |
|
861,671 |
|
819,353 |
|
||
|
Less: accumulated depreciation & amortization |
|
(552,815 |
) |
(379,680 |
) |
||
|
Net property and equipment |
|
308,856 |
|
439,673 |
|
||
|
Note receivable – long term |
|
58,869 |
|
71,190 |
|
||
|
Goodwill |
|
2,100,000 |
|
2,100,000 |
|
||
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Patents, licenses and other intangible assets (net of accumulated amortization of $302,835 at September 30, 2003 and $299,985 at December 31, 2002) |
|
56,928 |
|
59,778 |
|
||
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Total assets |
|
$ |
8,494,742 |
|
$ |
9,486,780 |
|
See notes to condensed consolidated financial statements.
3
MFIC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (continued)
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|
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September 30, |
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December 31, |
|
||
|
|
|
(unaudited) |
|
|
|
||
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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|
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|
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Current Liabilities: |
|
|
|
|
|
|
|
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Line of credit |
|
$ |
2,236,331 |
|
$ |
2,681,987 |
|
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Accounts payable and accrued expenses |
|
1,493,995 |
|
1,899,113 |
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||
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Accrued interest – related party |
|
5,035 |
|
14,980 |
|
||
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Accrued compensation |
|
86,540 |
|
158,119 |
|
||
|
Customer advances |
|
272,984 |
|
320,224 |
|
||
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Current portion of long term debt—related party |
|
75,000 |
|
75,000 |
|
||
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Current portion of note payable |
|
82,486 |
|
95,004 |
|
||
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Total current liabilities – |
|
4,252,371 |
|
5,244,427 |
|
||
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Term note – net of current portion |
|
0 |
|
58,735 |
|
||
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Long term debt – net of current portion – related party |
|
25,000 |
|
81,250 |
|
||
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Stockholders’ equity |
|
|
|
|
|
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Common stock, par value $.01 per share, 20,000,000 shares authorized; 7,749,281 and 7,705,064 shares issued and outstanding at September 30, 2003 and December 31, 2002, respectively |
|
77,493 |
|
77,051 |
|
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Additional paid-in capital |
|
12,959,116 |
|
12,945,520 |
|
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Accumulated deficit |
|
(8,131,537 |
) |
(8,232,502 |
) |
||
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Less: Treasury stock, at cost, 260,446 shares |
|
(687,701 |
) |
(687,701 |
) |
||
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Total stockholders’ equity |
|
4,217,371 |
|
4,102,368 |
|
||
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Total liabilities and stockholders’ equity |
|
$ |
8,494,742 |
|
$ |
9,486,780 |
|
See notes to condensed consolidated financial statements.
4
MFIC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
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Three months |
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Three months |
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Nine months |
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Nine months |
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|
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(unaudited) |
|
(unaudited) |
|
(unaudited) |
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(unaudited) |
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Revenues |
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$ |
2,617,887 |
|
$ |
3,599,687 |
|
$ |
10,560,353 |
|
$ |
10,825,761 |
|
|
Cost of goods sold |
|
1,469,682 |
|
2,029,248 |
|
5,740,834 |
|
6,033,361 |
|
||||
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Gross profit |
|
1,148,205 |
|
1,570,439 |
|
4,819,519 |
|
4,792,400 |
|
||||
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Operating expenses: |
|
|
|
|
|
|
|
|
|
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Selling |
|
671,971 |
|
733,427 |
|
2,256,731 |
|
2,236,210 |
|
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Research and development |
|
293,361 |
|
202,465 |
|
785,332 |
|
644,921 |
|
||||
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General and administrative |
|
501,686 |
|
575,398 |
|
1,593,867 |
|
1,607,082 |
|
||||
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Total operating expenses |
|
1,467,018 |
|
1,511,290 |
|
4,635,930 |
|
4,488,213 |
|
||||
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(Loss) income from operations |
|
(318,813 |
) |
59,149 |
|
183,589 |
|
304,187 |
|
||||
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Interest income |
|
2,465 |
|
2,285 |
|
6,965 |
|
5,219 |
|
||||
|
Interest expense |
|
(26,998 |
) |
(47,748 |
) |
(89,589 |
) |
(140,042 |
) |
||||
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Net (loss) income before cumulative effect of accounting change |
|
(343,346 |
) |
13,686 |
|
100,965 |
|
169,364 |
|
||||
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Cumulative effect of accounting change |
|
— |
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— |
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— |
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