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, 2003
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
DATATAB, INC. .
(Exact name of registrant as specified in its charter)
NEW YORK 13-1917838
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
350 FIFTH AVENUE, SUITE 1729, NEW YORK, NEW YORK 10010
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(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, 2003 (EXCLUSIVE OF 83,119 SHARES IN TREASURY)
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DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
ASSETS
SEPTEMBER 30, DECEMBER 31,
2003 2002
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(UNAUDITED)
Current assets:
Cash .............................................. $ 281 $2,203
Accounts receivable ............................... 3,113 3,960
Inventories of work in process .................... 1,000 1,000
Miscellaneous receivables ......................... 344 200
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Total current assets .......... 4,738 7,363
Furniture, fixtures, equipment and
improvements (at cost, less
accumulated depreciation of
$126,626 in 2003 and $126,517
in 2002) ......................................... 109 163
Other assets ................................................. 150 150
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Total ......................... $4,997 $7,676
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(Continued)
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DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
LIABILITIES
SEPTEMBER 30, DECEMBER 31,
2003 2002
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(UNAUDITED)
Current liabilities:
Accounts payable ...................................................... $ 16,220 $ 13,167
Accrued expenses and taxes ............................................ 226,239 167,361
Customer advances ..................................................... 70,000 70,000
Payable to Data Probe, Inc. ........................................... 99,891 89,186
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Total current liabilities ......................... 412,350 339,714
Other liabilities ................................................................ 10,600 10,600
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Total liabilities ........................................... 422,950 350,314
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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 $1 a share; issued
788,955 (including
shares held in treasury) .............................................. 788,955 788,955
Additional paid in capital ....................................................... 2,490,471 2,490,471
Deficit .......................................................................... (3,565,922) (3,490,607)
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(286,496) (211,181)
Less cost of 83,119 common shares
held in treasury ...................................................... 131,457 131,457
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Total Shareholders' Equity .................................. (417,953) (342,638)
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TOTAL . . . . . . . . . . . . . . . . . . .$ ..................................... 4,997 $ 7,676
=========== ===========
See accompanying notes to financial statements
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DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
Nine Months Ended
September 30,
2003 2002
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Sales ........................................... $ 125,452 $ 195,963
Cost of sales ................................... 81,928 183,904
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Gross profit .................................... 43,524 12,059
Selling and administrative
expenses ............................. 115,344 113,325
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(Loss) from operations .......................... (71,820) (101,266)
Interest(Expense)/income ........................ (3,495) 1,886
Miscellaneous income ............................ -- 9,402
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(Loss) before
provision for income taxes ........... $ (75,315) $ (89,978)
Income tax provision ............................ -- --
--------- ---------
Net (Loss) ...................................... $ (75,315) $ (89,978)
========= =========
(Loss) per share ................................ $ (.11) $ (.13)
========= =========
Weighted average number
of shares outstanding ................ 705,836 705,836
========= =========
Dividends per share ............................. NONE NONE
========= =========
The attached notes are made a part hereof.
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DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(NOTES A AND B)
(UNAUDITED)
Three Months Ended
September 30,
2003 2002
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Sales ................................................ $ 13,029 $ 52,168
Cost of sales ........................................ 22,014 29,936
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Gross profit. (loss) ................................ (8,985) 22,232
Selling and administrative
expenses .................................. 40,088 38,943
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(Loss) from operations ............................... (49,073) (16,711)
Interest income ...................................... -- 78
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(Loss) before
provision for income taxes ................ $ (49,073) $ (16,633)
Income tax provision ................................. -- --
--------- ---------
Net (loss) ........................................... $ (49,073) $ (16,633)
========= =========
(Loss) per share ..................................... $ (.07) $ (.02)
========= =========
Weighted average number
of shares outstanding ..................... 705,836 705,836
========= =========
Dividends per share .................................. NONE NONE
========= =========
The attached notes are made a part hereof.
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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, 2003 decreased
by 36% to $125,452 as compared to $195,936 for the corresponding period of 2002.
Revenue for the three months period ended September 30, 2003 decreased 75% to
$13,029 as compared to $52,168 for the corresponding period of 2002. 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. To cut costs, a major
customer decided to perform its market research data processing in house,
resulting in a loss of that client.
Cost of sales during the nine months period ended September 30, 2003
decreased by $101,976 or 55% when compared to the similar period of 2002. During
the three months period ended September 2002 the cost of sales decreased by 26%
to $22,014 as compared to $29,936 for the corresponding period in 2002. 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 and
the three months period ended September 30, 2003 remained relatively the same.
During the nine months period ended September 30, 2003 the Registrant
had to pay $3,495 interest on funds advanced to it by it's parent Data Probe,
Inc. In the comparable period of fiscal year 2002 the Registrant earned interest
in the amount of $1,886 for funds advanced by it to Data Probe, Inc. (See NOTE F
of "Notes to Form 10-Q" contained in this report for additional information).
The Registrant had a loss of $(75,315) during the nine month period
ended September 30, 2003 as compared to a loss of $(89,978) in the similar
period of 2002. The Registrant also reported a loss of $(49,073) for the three
months period ending September 30, 2003 as compared to a loss of $(16,633) for
the same period of 2002.
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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 2003.
LIQUIDITY AND CAPITAL RESOURCES.
Working capital decreased by 67,898 in the first nine months of 2003
from a negative balance of ($339,714) at December 31, 2002 to a negative balance
of ($407,612) at September 30, 2003.
There is no assurance that the stream of sales and revenue from the
Registrant's clients will continue. If additional profitable revenues from new
clients 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.
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DATATAB, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT
CASH FLOWS
(NOTES A AND B)
(UNAUDITED)
Nine Months Ended
September 30,
2003 2002
-------- ---------
Cash flows from operating activities:
Net (loss) ............................................. $(75,315) $(89,978)
Adjustments to reconcile net (loss) to
net cash used in operating activities:
Depreciation and amortization ........................ 54 47
Decrease in accounts receivable ...................... 847 14,625
Increase (Decrease) in prepaid expenses and
other assets ................................ (144) 445
Decrease (Increase) in accounts payable .............. 3,053 (12,628)
Increase (Decrease) in accrued expenses
and taxes ................................... 58,878 (6,472)
Increase in Miscellaneous Income .................... -- 9,402
-------- --------
Net cash flow (used in)
operating activities .............................. $(12,627) $(84,559)
-------- --------
Cash flows from investing activities:
Repayment of receivable from Data Probe, Inc. ........ -- 52,591
Advances from Data Probe, Inc. ....................... 10,705 21,528
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Net cash flow provided by
investing activities ................................. 10,705 74,119
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Net (Decrease) Increase in cash ........................ (1,922) (10,440)
Cash at beginning of period ............................ 2,203 9,483
-------- --------
Cash at end of period .................................. $ 281 $ (957)
======== ========
The notes to financial statements are made a part hereof.
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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, 2002. 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, 2003 are not necessarily indicative of the results of operations for the
year ending December 31, 2003.
(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, 2002, the Registrant had available net operating loss
carry-forwards in excess of $1,023,000, of which $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, 2003 December 31, 2002
------------------ -----------------
Work in process $ 1,000 $ 1,000
================== =================
(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, 2003 the Registrant indebtedness to Data Probe was $99,891 and was
evidenced by a demand note bearing interest at 2% above the prime rate.
For the nine months ended September 30, 2003, Data Probe, Inc.
charged the Registrant $10,406 for services rendered and 35,836 in rent related
expenses. In addition, Data Probe, Inc. charged the Registrant, in the same nine
months period, $3,495 for interest. During the first nine months period of the
fiscal year the Registrant charged Data Probe, $108,869 for services rendered.
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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, 2003.
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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, 2003 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, 2003 /S/ YITZHAK N. BACHANA
---------------------------------
Yitzhak N. Bachana, President,
Treasurer, Principal Executive
Officer, Principal Financial
Officer, Director
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