10-Q posted in several posts
TYPE: 10-Q OTHERDOC
SEQUENCE: 1
FILENAME: b311722_10q.txt
DESCRIPTION: QUARTERLY REPORT
OTHERDOC AVAILABLE Series=b311722_10q.txt Ver="": Document is copied.
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 10-Q
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
AND EXCHANGE ACT OF 1934
For the transition period from ______________to___________________
Commission File Number: 33-2822-A
MSU Corporation
(Exact name of registrant as specified in its charter)
Florida 22-2748288
(State or other jurisdiction of (I R S Employer I D No)
incorporation or organization)
2901 North Dallas Parkway, Suite 460, Plano, Texas 75093
(Address of principal executive offices)
972-473-6915
(Registrant's telephone number, including area code)
Indicate by check mark whether 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 as 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 [ ]
The number of shares of common stock of the Registrant outstanding as of April
30, 2001 was 29,074,051.
Form 10-Q INDEX
PART 1 - FINANCIAL INFORMATION
Page No.
Item 1 Unaudited Condensed Consolidated Financial Statements
Consolidated Balance Sheets as at March 31, 2001 and June 30, 2000 3
Consolidated Statements of Operations for the three and nine months ended 4
March 31, 2001 and the three and nine months ended March 31, 2000
Consolidated Statements of Cash Flows for the nine months ended March 31, 5
2001 and 2000
Notes to Unaudited Condensed Consolidated Financial Statements 6-7
Item 2 Management's Discussion and Analysis of Financial Condition and Results of 7-11
Operations
PART 11 - OTHER INFORMATION
Item 1 Legal Proceedings 11
Item 2 Changes in Securities 11
Item 3 Defaults upon Senior Securities 11
Item 4 Submission of Matters to a Vote of Security Holders 11
Item 5 Other Information 12
Item 6 Exhibits and Reports on Form 8-K 12
SIGNATURE PAGE 12
EXHIBIT INDEX 12
2
PART 1 - FINANCIAL INFORMATION
Item 1 Unaudited Condensed Consolidated Financial Statements
MSU Corporation
Consolidated Balance Sheets (Unaudited)
March 31 June 30
2001 2000
------------ ------------
CURRENT ASSETS
Cash and cash equivalents $ 1,746,783 $ 1,990,207
Accounts receivable 19,460 345,363
Deferred Financing Costs 718,438 --
Inventory, net 357,500 1,166,347
Prepaid expenses and other 258,841 468,143
------------ ------------
TOTAL CURRENT ASSETS 3,101,022 3,970,060
EQUIPMENT, net of accumulated depreciation of $264,797 and $225,645 at 152,159 155,884
March 31, 2001 and June 30, 2000, respectively
INVESTMENTS -- 218,981
------------ ------------
TOTAL ASSETS $ 3,253,181 $ 4,344,925
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)
CURRENT LIABILITIES
Bank overdraft $ -- 18,835
Current portion of debt 1,330,000 825,000
Convertible Notes 2,034,764 --
Accounts payable and accrued liabilities 3,107,367 1,691,095
Related party notes, advances and payables 16,740 125,140
------------ ------------
TOTAL CURRENT LIABILITIES 6,488,871 2,660,070
LONG TERM DEBT -- 505,000
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS'EQUITY/(DEFICIT)
Common stock, $0.01 par value; 50,000,000 shares authorized 29,074,051
and 29,051,202 shares issued and outstanding as of March 31, 2001 and
June 30, 2000, respectively 290,740 290,512
Additional paid-in capital 22,830,633 22,076,718
Stock subscriptions receivable (145,000) (145,000)
Accumulated other comprehensive income 1,198,871 389,207
Accumulated deficit (27,410,934) (21,431,582)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY/(DEFICIT) (3,235,690) 1,179,855
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT) $ 3,253,181 $ 4,344,925
============ ============
See notes to condensed consolidated financial statements
3
MSU Corporation
Consolidated Statements of Operations (Unaudited)
Three months ended Nine months ended
March 31 March 31
----------------------------- ---------------------------
2001 2000 2001 2000
------------ ------------ ------------ ------------
REVENUES $297,687 $397,013 $1,732,332 $397,517
EXPENSES
Cost of revenues, including provision for 1,746,899 394,995 3,012,745 394,995
obsolescence
Selling, general and administrative 2,034,642 592,796 3,422,277 1,462,207
Restructuring - UK operations 241,188 - 241,188 -
Depreciation 16,831 18,217 54,141 64,875
Interest expense 84,544 25,584 154,792 81,985
Research and development 198,311 447,594 896,977 1,418,170
------------ ------------ ------------ ------------
TOTAL EXPENSES 4,322,415 1,479,186 7,782,120 3,422,232
------------ ------------ ------------ ------------
OPERATING LOSS (4,024,728) (1,082,173) (6,049,788) (3,024,715)
NON-OPERATING INCOME (EXPENSE)
Interest income 20,067 (81) 70,437 32,098
Amortization on discount -- (291,251) -- (441,251)
------------ ------------ ------------ ------------
TOTAL NON-OPERATING
INCOME (EXPENSE) 20,067 (291,332) 70,437 (409,153)
------------ ------------ ------------ ------------
NET LOSS $ (4,004,661) $ (1,373,505) $ (5,979,351) $ (3,433,868)
============ ============ ============ ============
BASIC AND DILUTED NET LOSS PER COMMON SHARE $(0.14) $(0.05) $(0.21) $(0.13)
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING 29,074,051 25,558,230 29,071,512 25,448,784
============ ============ ============ ============
See notes to condensed consolidated financial statements
4
MSU Corporation
Consolidated Statements of Cash Flows (Unaudited)
Nine months ended March 31
-------------------------------
2001 2000
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $(5,979,351) $(3,433,868)
Adjustments to reconcile net loss to net
cash used in operating activities 2,831,330 27,972
----------- -----------
NET CASH USED IN OPERATING ACTIVITIES (3,148,021) (3,405,896)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of equipment (net) (50,414) (106,460)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from advances 2,034,764 900,000
Proceeds from issuance of promissory notes - 3,750
Issuance of common stock for cash - 169,125
Repayment of related party borrowings (108,400) -
----------- -----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,926,364 1,072,875
----------- -----------
EFFECT OF EXCHANGE RATE CHANGES 1,028,647 40,952
----------- -----------
NET DECREASE IN CASH (243,424) (2,398,529)
CASH AT BEGINNING OF PERIOD 1,990,207 2,604,504
----------- -----------
CASH AT END OF PERIOD $1,746,783 $205,975
=========== ===========
See notes to condensed consolidated financial statements
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