Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : PYNG Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Jack Rayfield who wrote (6765)	5/31/2002 4:55:50 PM
From: m. jacobs	Read Replies (1) \| Respond to of 8117

Dear Jack, Here is the Report, Financial Statements will be listed on SEDAR. PYNG TECHNOLOGIES CORP. Unit #7 – 13511 Crestwood Place, Richmond B.C. V6V 2E9, Canada Fax 604 303-7964 Phone 604 303-7987 Website: pyng.com E-mail: pyngmed@axionet.com TSX Venture—PYT – OTCBB- PYNGF QUARTERLY REPORT ENDING MARCH 30TH, 2002 Dear Shareholder, This report will outline Pyng Technologies Corp. and Pyng Medical Corp. We will endeavor to cover all aspects of operations and financial reporting. The financial statements are attached and have been prepared by Jung and Lee, our auditors. Comparisons are also attached to the financial statements This Report covers primarily all operations at Pyng Medical Corp the operating subsidiary that is now producing the F.A.S.T.1. 1 System for Adult Intraosseous Infusion and is the primary source of income for the Company. Pyng Medical Corp. Sales for the first three months of this fiscal quarter were $203,523.00 providing average sales per month of $67,841.00. This is indicative of a trend upwards in overall sales and movement towards breakeven and profits ahead. The Costs of Sales for the period ending March 30, 2002 were $88,803.00 providing a Gross Profit of $131,089.00 prior to expenses and inclusive of $16,369.00 in interest. Total expenditures for the period for both Pyng Technologies and Pyng Medical Corp. were $250,447.00. Here again we see a downward trend. The combined net loss for both Pyng Technologies and Pyng Medical during this quarter was $119,358.00 compared to $210,473.00 during the fiscal period March 30th, 2001. This represents earnings per share loss of .010 compared to .020 for the same period in fiscal 2001. Contributions to this increased sales have been made on all fronts including Domestic, International, and Military Sales. Continued strengths in the Military sector particularly have enhanced sales in this quarter and we are confident that this trend will continue as we make more in roads into this market place. Sales to Puerto Rico, a new customer base, contributed in this quarter as well and we have received numerous inquiries from this area opening up the Caribbean market. Negotiations are currently being undertaken with distribution channels in China and India and will be announced when and if satisfactory contracts reach completion. We have also been in direct contact with the officials of AMEDD ( US Army Medical Department) for possible inclusion in the medics kits. Special Operations for the US Military have also shown a continued interest through increased sale to this sector. Continued negotiations with the Veterans Affairs Department of the US Government are expected to result in a V.A. Contract for Worldwide Supply. While cash flow increase in this quarter ongoing expenditures drew down our available cash. We stated that we were going to raise additional capital this year and we started this process in this quarter. We have subsequently completed a Private Placement for 782,887 units priced at 45 cents with a warrant attached at 55 cents. Debt settlement for $29,573.10 was also arranged for stock at 45 cents but without a warrant attached. The injection of capital will be used primarily for marketing and ongoing expenses and we intend to raise more capital during the year as opportunities become available. Amortization and Depreciation for This quarter was $24,677.00. Cash and term deposits and accounts receivable at the end of this quarter, but not including the Private Placement, were $254,590.00 with Inventory and prepaid totaling $194,443.00 Total liabilities including long-term loans payable of $202,495.00 were $612,618.00. Expenses for the period less amortization and depreciation were $225,770.00. Accounts payable are primarily made up of Accounting, Legal, and other expenses that are associated with Pyng Technologies Corp. as a public company. See Attached financials for full details. Other Business v To date we have not signed nor have any involvement with third party investor relation’s contracts. Legal proceedings: In late December Pyng Technologies became aware of a nuisance lawsuit self filed by a former employee. The bases of this suit are for claimed wrongful dismissal. It is interesting to note this self-filed claim was made some seven years after the employee no longer worked for the company. We consider the lawsuit to be spurious at best and the claimant has made no formal claim. v All regulatory filings for British Columbia, Alberta, and the US Securities Commission have been filed. v Pyng Medical Corp. has arranged for a line of credit with the Richmond Savings Credit Union totaling $400,000 that can be drawn on at any time. $200,000 of this line of credit is for capital equipment needs and $200,000 for operating needs. BPI Industries, the minority shareholder in Pyng Medical Corp., has a commitment to pay 10.99 percent of the expenditures for the fiscal period October 1st 2000 to September 30th 2001 BPI Industries portion is $99,938.00 v Failure to make this payment will reduce the share holdings of BPI into Pyng Medical Corp. by the appropriate amount and increase Pyng Technologies Corp. holdings in Pyng Medical Corp. v BPI had not made payments to date for fiscal 2001 and it is our intention to reduce their shareholdings should they not pay within the next 30 days. v There have been no management changes during this quarter v Full accounting details are attached and Jung details notes to the financials and Lee chartered accountants. Management has been and continues to implement strong costs control measures. While expenditures in administration, production, and engineering are being closely watched for reductions there will be an increase costs in marketing associated with the FAST1 System. The task is to penetrate the market place more effectively through our expanding distribution network and through increase target market advertising and presents. Increased media advertising, conference presence, distribution channels, and educational forums will contribute to continue increased sales. We look forward to the next quarter as it presents new marketing challenges for the FAST1 System. One again we thank the shareholders for their support. On behalf of the Board. Michael W. Jacobs, Chairman / Founder