Form 10Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For Quarter Ended: Nov. 30, 2002
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Commission File Number: 0-11050
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Mammatech Corporation
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(Exact name of registrant as specified in its charter)
Florida 59-2181303
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
930 N.W. 8th Avenue, Gainesville, Florida 32601
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(Address of principal executive offices) (Zip Code)
(904) 375-0607
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(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 ninety days. Yes No X
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Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Number of shares outstanding on
Nov. 30, 2002
100,352,500 shares of which
6,208,500 are treasury shares
TITLE OF EACH CLASS
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Common stock $.0001 par value
The total number of pages of this report is 11.
Mammatech Corporation
INDEX
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PART I.
FINANCIAL INFORMATION PAGE NO.
Item 1. Financial Statements
Statements of Operations for Three Months
Ended Nov. 30, 2002 and Nov. 30, 2001................................3
Balance Sheets for Nov. 30, 2002 and
August 31, 2002....................................................4-5
Statement of Cash Flow for the Quarter
Ended Nov. 30, 2002..................................................6
Statement of Cash Flow for the Quarter
Ended Nov. 30, 2001..................................................7
Notes to Financial Statements for the Quarter
Ended Nov. 30, 2002..................................................8
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of Operations.......................9
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K...........................10
SIGNATURES..........................................................11
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Mammatech Corporation
Statements of Operations
(Unaudited)
Three Months Ended
November, 2002 November, 2001
Sales, net $ 138,158 $ 68,500
Cost of sales $ 26,361 $ 21,160
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Gross Profit $ 111,797 $ 47,340
Selling, general and
administrative expense $ 96,526 $ 94,213
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Operating Income (Loss) $ 15,271 $ (46,873)
Other income
(expense)
Reimbursement (SBIR Grant) 25,118 -0-
Interest & Dividend Income 7,280 8,072
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Net income 47,669 (38,801)
Net Income before taxes $ 47,669 (38,801)
Provision for income taxes (6,150) -0-
NET INCOME (LOSS) 41,519 (38,801)
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Net income (loss) per share .0004 (.0003)
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Weighted average shares 100,458,333 100,456.333
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The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Balance Sheets
Nov. 30, 2002 Aug. 31, 2002
(Unaudited) (Audited)
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ASSETS
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Cash and Cash Equivalents $ 561,462 $ 503,556
Available for sale:
securities 269,129 269,129
Accounts receivable:
Trade 38,707 54,434
Other -0- -0-
Inventory 73,901 78,446
Deferred tax asset-
current portion 6,150 5,100
Other current assets
Total Current Assets 949,349 910,665
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Property and equipment 31,115 24,651
Deferred tax asset-
Non current portion 160,840 159,680
Other assets:
Other investments
Patents, trademarks, and
other intangibles, net of
accumulated amortization
of $66,955 and $64,675
respectively 9,484 17,724
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Total other assets 201,439 202,055
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TOTAL ASSETS $1,150,788 $1,112,720
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The accompanying notes are an integral part of the financial statements.
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Mammatech Corporation
Balance Sheets
As of August 31, 2002
and Nov. 30, 2002
(continued)
Nov.2002 Aug 2002
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Current portion of long term debt 6,260 6,260
Accounts payable-trade $ 5,607 $ 16,598
Customer deposits -0- -0-
Accrued payable-officer 6,630 6,630
Accrued salaries 540,675 541,495
Accrued royalties 79,705 79,705
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TOTAL CURRENT LIABILITIES 638,877 650,688
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COMMITMENTS
Long term debt -0- -0-
Stockholders' equity:
Common stock, par value $.0001;
200,000,000 shares authorized;
100,352,500 shares issued
and outstanding $ 10,046 $ 10,046
Additional paid-in capital 2,811,183 2,811,183
Accumulated deficit (2,035,365) (2,085,243)
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785,864 735,986
Valuation allowance: mkt. sec (125,903) (125,903)
Treasury stock at cost,
6,208,500 shares (148,051) (148,051)
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511,910 462,032
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,150,788 $ 1,112,720
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The accompanying notes are an integral part of these statements.
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Statements of Cash Flows
November 2001
Net income (loss) $ (38,801)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 4,500
Common stock issued for services 0
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 77,456
(Increase) decrease in available for sale securities 0
(Increase) decrease in inventory 9,268
(Increase) decrease in other assets (2,075)
(Increase) decrease in deferred tax asset (2,210)
Increase (decrease) in accounts payable (22,981)
Increase (decrease) in accrued expenses (10,921)
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Total adjustments 53,037
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Net cash provided by
operating activities 14,236
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Cash flows from investing activities:
Acquisition of property and equipment (2,706)
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Net cash (used in) investing activities (2,706)
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Increase (decrease) in accrued expenses (10,921)
Cash flows from financing activities:
Repayment of note payable 0
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Net cash (used in)
financing activities 0
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Increase (decrease) in cash 11,530
Cash and cash equivalents,
beginning of period 578,054
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Cash and cash equivalents,
end of period $ 589,584
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See accompanying notes to financial statements.
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Statements of Cash Flows
November 2002
Net income (loss) $ 47,669
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation and amortization 3,000
Common stock issued for services 0
Changes in assets and liabilities:
(Increase) decrease in accounts receivable 15,727
(Increase) decrease in available for sale securities 0
(Increase) decrease in inventory 4,545
(Increase) decrease in other assets (1,008)
(Increase) decrease in deferred tax asset 0
Increase (decrease) in accounts payable (10,991)
Increase (decrease) in accrued expenses (820)
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Total adjustments 10,453
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Net cash provided by
operating activities 58,122
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Cash flows from investing activities:
Acquisition of property and equipment (214)
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Net cash (used in) investing activities (214)
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Cash flows from financing activities:
Repayment of note payable 0
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Net cash (used in)
financing activities 0
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Increase (decrease) in cash 57,908
Cash and cash equivalents,
beginning of period 503,556
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Cash and cash equivalents,
end of period $ 561,464
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See accompanying notes to financial statements.
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Mammatech Corporation
Notes to Financial Statements
Nov. 30, 2002
Note 1. In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal
recurring accruals) necessary to present fairly the financial position
as of Nov. 30, 2002, and the results of operations and changes in
financial position for the three months ended Nov. 30, 2002.
Note 2. Loss per share is based on the weighted average number of shares
outstanding during each period.
Note 3. Gives effect to the Company's repurchasing 7,558,500 shares of stock
from shareholders for treasury stock.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATION FOR MAMMATECH CORPORATION
Results for the first quarter of Fiscal 2002 were encouraging. Sales increased
by 37% from the previous quarter and 102% compared to the first quarter of 2001.
Operating costs of $96,526 represent a 2.5% increase relative to the prior year
quarter. The net income of $41,159 for the quarter contrasts with losses for
both the previous quarter and the first quarter of 2001. A portion of this
figure represents reimbursement on a new SBIR grant (see below), but $15,271 is
actual operation income resulting from sales and training revenues.
During the quarter, the Company participated in the opening of a MammaCare
Training Center in Frankfurt, Germany. This facility is located in the
Gynecology Department of Wolfgang Goethe University Medical School and will
teach MammaCare Breast self-examination to patients in addition to training
European professionals in the skills of MammaCare Clinical Breast examination.
The Company also started work on a Phase I SBIR project aimed at extending the
MammaCare Clinical Breast Examination technology to disabled women who have
difficulty assuming the optimal positions for this procedure. Early activities
have centered on acquiring and modifying special equipment to assist in the
training process.
Finally, the Company launched a new model for providing MammaCare training at
the institutional level. A prototype agreement creates a MammaCare Training
Center at an institution dedicated to training healthcare professionals. The
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first such agreement has been concluded with the University of Florida College
of Nursing and others are in various stages of negotiation. The intent is to
expand the availability of the high level of professional training now available
only at MammaCare headquarters and George Washington University. There can be no
assurance, however, that this strategy will succeed or that substantial revenue
will result.
With the exception of a small note to an unaffiliated supplier for a
manufacturing facility, the Company remains debt free and has no immediate
liquidity problems. The Company continues to seek a larger partner in the
healthcare industry.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a.) Exhibits - Exhibit 99.1 Certification Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
(b.) There were no reports filed on Form 8-K during the three months
ending Nov. 30, 2002.
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10-Q
For the three months ended Nov. 30, 2002
Signatures
Pursuant to the requirements 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.
MAMMATECH CORPORATION
DATE: BY: /s/ Henry S. Pennypacker
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Henry S. Pennypacker
President and Director
BY: /s/ Mary Sellers
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Mary Sellers, Treasurer
and Chief Financial
Officer
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