SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
+---+
_ x _ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
+---+ SECURITIES EXCHANGE ACT OF 1934
For the quarterly period SEPTEMBER 30, 2002
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OR
+---+ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
_ _ OF THE SECURITIES EXCHANGE ACT OF 1934
+---+
For the transition period from to
Commission file no. 0-3677
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DATATAB, INC.
- ---------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
NEW YORK 13-1917838
- ---------------------------------- -----------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
49 EAST 21ST STREET, NEW YORK, NEW YORK 10010
- ----------------------------------------------------- -------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 228-6800
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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
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COMMON SHARES $1.00 PAR VALUE - 705,836 SHARES OUTSTANDING AS OF
November 14, 2002 (EXCLUSIVE OF 83,119 SHARES IN TREASURY)
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
SEPTEMBER 30, DECEMBER 31,
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2002 2001
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(UNAUDITED)
Current assets:
Cash ........................................... $ 961 $ 9,483
Accounts receivable ............................ 5,093 19,718
Receivable from Data Probe, Inc. ............... (21,528) 64,801
Inventories of work in process ................. 1,100 1,100
Prepaid expenses and other current
assets ............................... 495 50
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Total current assets ....... (13,879) 95,152
Furniture, fixtures, equipment and
improvements (at cost, less
accumulated depreciation of
$126,494 in 2002 and $126,307
in 2001) ...................................... 187 234
Other assets .............................................. 140 140
-------- --------
Total ...................... $(13,552) $ 95,526
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(Continued)
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES
SEPTEMBER 30, DECEMBER 31,
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2002 2001
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(UNAUDITED)
Current liabilities:
Accounts payable .................................. $ 12,650 $ 25,278
Accrued expenses and taxes ........................ 146,816 153,288
Customer advances ................................. 145,000 145,000
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Total current liabilities ..... 304,466 323,566
Other liabilities ............................................ 10,600 10,600
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Total liabilities ....................... 315,066 334,166
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STOCKHOLDERS' EQUITY
Preferred shares - authorized 500,000
shares, par value $1 a share;
none issued ....................................... -- --
Common shares - authorized 2,000,000 shares,
par value $1 a share; issued 788,955 (including
shares held in treasury) .......................... 788,955 788,955
Additional paid in capital ................................... 2,490,471 2,490,471
Deficit ...................................................... (3,476,587) (3,386,609)
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(197,161) 107,183)
Less cost of 83,119 common shares
held in treasury .................................. 131,457 131,457
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Total Shareholders' Equity .............. (328,618) (238,640)
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TOTAL ..................................... $ (13,552) $ 95,526
=========== ===========
See accompanying notes to financial statements
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
Nine Months Ended
SEPTEMBER 30,
----------------------------
2002 2001 .
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Sales ........................................... $ 195,963 $ 500,290
Cost of sales ................................... 183,904 461,516
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Gross profit .................................... 12,059 38,774
Selling and administrative
expenses ............................. 113,325 125,960
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(Loss) from operations .......................... (101,266) (87,186)
Interest income ................................. 1,886 9,978
Miscellaneous income ............................ 9,402 --
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(Loss) before
provision for income taxes ........... $ (89,978) $ (77,208)
Income tax provision ............................ -- --
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Net (Loss) ...................................... $ (89,978) $ (77,208)
========= =========
(Loss) per share ................................ $ (.13) $ (.11)
========= =========
Weighted average number
of shares outstanding ................ 705,836 705,836
========= =========
Dividends per share ............................. NONE NONE
========= =========
The attached notes are made a part hereof.
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
Three Months Ended
SEPTEMBER 30,
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2002 2001
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Sales ................................................ $ 52,168 $ 113,460
Cost of sales ........................................ 29,936 143,002
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Gross profit. (loss) ................................ 22,232 (29,542)
Selling and administrative
expenses .................................. 38,943 39,264
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(Loss) from operations ............................... (16,711) (68,806)
Interest income ...................................... 78 2,561
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(Loss) before
provision for income taxes ................ $ (16,633) $ (66,245)
Income tax provision ................................. -- --
--------- ---------
Net (loss) ........................................... $ (16,633) $ (66,245)
========= =========
(Loss) per share ..................................... $ (.02) $ (.09)
========= =========
Weighted average number
of shares outstanding ..................... 705,836 705,836
========= =========
Dividends per share .................................. NONE NONE
========= =========
The attached notes are made a part hereof.
----------------------------
DATATAB, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Revenue for the nine months period ended September 30, 2002 decreased
by 61% to $195,963 as compared to $500,290 for the corresponding period of 2001.
Revenue for the three months period ended September 30, 2002 decreased 54% to
$52,168 as compared to $113,460 for the corresponding period of 2001. The
decrease in revenue for the nine month and three month periods was due to major
cutbacks in the advertising and market research industries following the
September 11, 2001 terror attacks. These cutbacks resulted in a severe slow down
in demand for market research data processing services. In line with the
decrease in revenue the Registrant managed to reduce its costs. Cost of sales
during the nine months period ended September 30, 2002 decreased by $277,612 or
60% when compared to the similar period of 2001. During the three months period
ended September 2002 the cost of sales decreased by 79% to $29,936 as compared
to $143,002 for the corresponding period in 2001. The large decreases in cost of
sales during the nine months period and the third quarter of the fiscal year
were due to cost reductions that were put into effect due to the decrease in
sales volume.
Selling and Administrative expenses during the nine months period
ended September 30, 2002 decreased by $12,635 or 10%.
Interest income was lower by 81% during the nine months period ended
September 30, 2002 when compared to the similar period of 2001. The majority of
the interest income being recognized is from Data Probe, Inc. and it's note
payable to the Registrant. During the nine months period of the current fiscal
year Data Probe has repaid its note payable to the Registrant and also made
advances of $21,528 to the Registrant. (See NOTE F of "Notes to Form 10-Q"
contained in this report for additional information).
The Registrant had a loss of $(89,987) during the nine month period
ended September 30, 2002 as compared to a loss of $(77,208) in the similar
period of 2001. The Registrant also reported a loss of $(16,633) for the three
months period ending September 30, 2002 as compared to a loss of $(66,245) for
the same period of 2001.
CAPITAL EXPENDITURES.
The Registrant incurred no capital expenditures during the current
fiscal year. The registrant does not anticipate any material capital
expenditures during the balance of fiscal year 2002.
LIQUIDITY AND CAPITAL RESOURCES.
Working capital decreased by 89,931 in the first nine months of 2002
from a negative balance of ($228,414) at December 31, 2001 to a negative balance
of ($318,345) at September 30, 2002.
There is no assurance that the stream of sales and revenue from the
Registrant's clients will continue. If additional profitable revenues cannot be
generated the Registrant will once again realize losses, and its ability to
continue to operate would be severely affected in the absence of securing some
type of supplemental financing, the availability of which there can be no
assurance.
DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT
CASH FLOWS
(NOTES A AND B)
(UNAUDITED)
Nine Months Ended
SEPTEMBER 30,
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2002 2001
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Cash flows from operating activities:
Net (loss) ..............................................$(89,978) $ (77,208)
Adjustments to reconcile net (loss) to net
cash used in operating activities:
Depreciation and amortization ......................... 47 417
Decrease in accounts receivable ....................... 14,625 4,355
Increase (Decrease) in prepaid expenses and
other assets ................................. 445 (605)
(Decrease) Increase in accounts payable ............... (12,628) 3,001
(Decrease) Increase in accrued expenses
and taxes .................................... (6,472) 17,484
Increase in Miscellaneous Income ..................... 9,402 --
-------- --------
Net cash flow (used in)
operating activities ...............................$(84,559) $( 52,556)
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Cash flows from investing activities:
Repayment of receivable from Data Probe, Inc. ......... 52,591 52,570
Advances from Data Probe, Inc. .......................... 21,528 --
-------- --------
Net cash flow provided by
investing activities .................................. 74,119 52,570
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Net (Decrease) Increase in cash ......................... (10,440) 14
Cash at beginning of period ............................. 9,483 986
-------- --------
Cash at end of period ...................................$ 957 $ 1,000
======== ========
The notes to financial statements are made a part hereof.
DATATAB, INC. AND SUBSIDIARIES
NOTES TO FORM 10-Q
(UNAUDITED)
(NOTE A): The financial information contained in this Form 10-Q
represents condensed financial data and, therefore, does not include all
footnote disclosures required to be included in financial statements prepared in
conformity with generally accepted accounting principles. Such footnote
information was included in the Registrant's annual 10K report to the SEC for
the year ended December 31, 2001. The condensed financial data included herein
should be read in conjunction with that report.
(NOTE B):
(1) In management's opinion, all necessary adjustments have
been made in order to present fairly the consolidated results of operations for
the interim periods.
(2) The results of operations for the interim period ending September
30, 2002 are not necessarily indicative of the results of operations for the
year ending December 31, 2002.
(NOTE C):
Profit and loss per share is based on the average number of shares of
common stock outstanding during each period after deducting treasury shares and
taking into consideration the dilutive effect of outstanding stock options when
applicable.
(NOTE D):
At December 31, 2001, the Registrant had available net operating loss
carry-forwards in excess of $1,326,000, of which $199,000 expires in 2002,
$120,000 in 2003, $87,000 in 2004, $94,000 in 2005, $84,000 in 2006, $99,000 in
2007 and the balance in 2008 and thereafter.
(NOTE E):
Inventories are summarized as follows:
September 30, 2002 December 31, 2001
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Work in process $ 1,100 $ 1,175
================== =================
(NOTE F:)
During the fiscal year Data Probe, Inc., the majority stockholder,
has paid its debt to the Registrant and also made some advances to it. At
September 30, 2002 the Registrant indebtedness to Data Probe was $21,528 and was
evidenced by a demand note bearing interest at 2% above the prime rate.
For the nine months ended September 30, 2002, Data Probe, Inc.
charged the Registrant $122,748 for services rendered and 51,962 in rent related
expenses. In addition, the Registrant charged Data Probe, Inc. in the same nine
months period, $1,886 for interest, and $150,999 for services rendered.
PART II
ITEM 1. LEGAL PROCEEDINGS.
NONE
ITEM 2. CHANGE IN SECURITIES AND USE OF PROCEEDS.
NONE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
NONE
ITEM 5. OTHER INFORMATION.
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) The Company did not file any reports on Form 8-K during The
nine months ended September 30, 2002.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
DATATAB, INC.
Dated: November 14, 2002 By: /S/ YITZHAK N. BACHANA
----------------------------
Yitzhak N. Bachana,
President
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated:
Dated: November 14, 2002 /S/ YITZHAK N. BACHANA
---------------------------------
Yitzhak N. Bachana, President,
Treasurer, Principal Executive
Officer, Principal Financial
Officer, Director
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
DATATAB, INC.
Dated: November 14, 2002 By:
----------------------
Yitzhak N. Bachana,
President
Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated:
Dated: November 14, 2002
---------------------------------
Yitzhak N. Bachana, President,
Treasurer, Principal Executive
Officer, Principal Financial
Officer, Director