-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OPE9kuEaEovmqMW+KJTnHRWxekkNc2nR6gWCHrCyyO1uGylZjOLUggnspcbQlkI6 uBoQKznXX4N+CIpIva45/Q== 0000868267-06-000006.txt : 20060512 0000868267-06-000006.hdr.sgml : 20060512 20060512103543 ACCESSION NUMBER: 0000868267-06-000006 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060331 FILED AS OF DATE: 20060512 DATE AS OF CHANGE: 20060512 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FOOD TECHNOLOGY SERVICE INC CENTRAL INDEX KEY: 0000868267 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 592618503 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-19047 FILM NUMBER: 06832601 BUSINESS ADDRESS: STREET 1: 502 PRARIE MINE RD CITY: MULBERRY STATE: FL ZIP: 33860 BUSINESS PHONE: 8634250039 MAIL ADDRESS: STREET 1: 502 PRARIE MINE RD CITY: MULBERRY STATE: FL ZIP: 33860 FORMER COMPANY: FORMER CONFORMED NAME: VINDICATOR INC /FL/ DATE OF NAME CHANGE: 19930328 FORMER COMPANY: FORMER CONFORMED NAME: VINDICATOR OF FLORIDA INC /FL/ DATE OF NAME CHANGE: 19600201 10QSB 1 form10qsb.txt FORM 10QSB FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Three Months Ended March 31, 2006 Commission File Number 0-19047 -------------- INCORPORATED IN FLORIDA IRS IDENTIFICATION NO. 59-2618503 FOOD TECHNOLOGY SERVICE, INC. 502 Prairie Mine Road, Mulberry, FL 33860 (863) 425-0039 "Indicate by check mark whether the registrant has filed all annual, quarterly and other reports required to be filed with the Commission within the past 90 days and in addition has filed the most recent annual report required to be filed. Yes X . No ." -- -- "Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the last practicable date." Outstanding as of March 31, 2006 and December 31, 2005 Class 2006 2005 ----- ---- ---- Common Stock $.01 Par Value 11,003,038 Shares 11,003,038 Shares FOOD TECHNOLOGY SERVICE, INC. BALANCE SHEETS MARCH 31, DECEMBER 31, 2006 2005 ASSETS ---- ---- ------ (unaudited) * Current Assets: Cash $ 209,532 $ 524,731 Accounts Receivable 301,585 286,951 Prepaid Expenses 47,138 20,949 ---------- ---------- Total Current Assets 558,255 832,631 ---------- ---------- Property and Equipment: Cobalt 3,100,973 2,675,756 Furniture and Equipment 1,768,676 1,764,624 Building 2,884,475 2,883,675 Less Accumulated Depreciation (4,574,543) (4,479,057) ---------- ---------- Total Property & Equipment 3,179,581 2,844,998 Land 171,654 171,654 Other Assets: Deposits 5,000 5,000 Loan Costs 11,429 11,429 ---------- ---------- Total Other Assets 16,429 16,429 ---------- ---------- Total Assets $ 3,925,919 $ 3,865,712 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY ----------------------------------- Current Liabilities: Accounts Payable and Accrued Expense $ 23,270 $ 28,589 Financing Agreement and Debenture Payable 748,979 733,741 ---------- ---------- Total Current Liabilities 772,249 762,330 ---------- ---------- Stockholders' Equity: Common Stock $.01 par value, 20,000,000 shares authorized, 11,003,038 shares outstanding on March 31, 2006 and 11,003,038 shares outstanding on December 31, 2005 110,030 110,030 Paid in Capital 11,976,657 11,976,657 Deficit (8,933,017) (8,983,305) ---------- ---------- 3,153,670 3,103,382 ---------- ---------- Total Liabilities and Stockholders' Equity $ 3,925,919 $ 3,865,712 ========== ========== * Condensed from audited financial statements FOOD TECHNOLOGY SERVICE, INC. STATEMENTS OF OPERATIONS FOR THE QUARTERS ENDED MARCH 31,2006 AND 2005 2006 2005 ---- ---- (unaudited) (unaudited) Net Sales $ 424,095 $ 392,877 Processing Costs: 93,246 88,878 --------- -------- Income from Operations 330,849 303,999 General Administrative and Development 169,834 177,815 Depreciation 95,489 91,885 Interest Expense 15,238 12,125 --------- -------- Income/(Loss) Before Income Taxes 50,288 22,174 Income Taxes Provision for Income Taxes 15,086 6,652 Tax Benefit from Net Operating Loss (15,086) (6,652) --------- -------- Net Income/(Loss) $ 50,288 $22,174 ========= ======== Net Income/(Loss) per Common Share $0.005 $0.002 ========= ======== NOTE 1: BASIS OF PRESENTATION The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normally recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim period. The results of operations for the three month periods ended March 31, 2006 are not necessarily indicative of the results to be expected for the full year. FOOD TECHNOLOGY SERVICE, INC. STATEMENTS OF CASH FLOWS Three Months Three Months Ended Ended March 31, 2006 March 31, 2005 -------------- -------------- (unaudited) (unaudited) Cash Flows from Operations: Sales Income Received $ 409,461 $ 330,066 Interest Received 253 383 Interest Paid - - Cash Paid for Operating Expenses (305,321) (275,174) --------- --------- 104,393 55,275 Cash Flows from Investing: Property & Equipment Purchase (419,592) (3,716) ---------- ---------- (419,592) (3,716) Cash Flows from Financing Activities: Proceeds from Issue of Stock - 1,100 Repayment of Loans - (100,000) ---------- ---------- - (98,900) Net Increase (Decrease) in Cash (315,199) (47,341) Cash at Beginning of Period 524,731 231,877 ---------- ---------- Cash at End of Period $209,532 $184,536 ========== ========== _______________________________________________________________________________ Reconciliation of Net Income to Net Cash Provided by Operations Net Income /(Loss) $ 50,288 $ 22,174 Adjustments to Reconcile Net Income to Cash Provided by Operations: Depreciation 95,489 91,885 Accrued Interest 15,238 12,125 (Increase) Decrease in Inventories - (1,263) (Increase) Decrease in Receivables (14,636) (62,428) (Increase) Decrease in Prepaids (26,189) (37,500) Increase (Decrease)in Payables and Accruals (15,797) 30,282 ---------- ---------- Net Cash Provided by Operating Activities $104,393 $55,275 ========== ========== Management's Analysis of Quarterly Income Statements Operations - ---------- Food Technology Service Inc., had revenue of $424,095 during the first quarter of 2006. This compares to revenues of $392,877 for the same period in 2005. This is an increase of eight percent. The Company had a profit during the first quarter of 2006 of $50,288 compared to a profit of $22,174 during the first quarter of 2005. This is an increase of 127 percent. Management attributes increased revenue to a growing demand for sterilization of medical products. During the past several months, the Company has made enhancements to attract manufacturers of medical products. These enhancements include the attainment of certification to ISO 13485:2003 standards in September, 2005 and the installation of additional Cobalt energy source in January, 2006. The additional Cobalt accommodates customer growth by increasing the production capacity of the facility. Expenses during the first quarter of 2006 were about $3,600 higher than in the same period in 2005. This was primarily due to higher depreciation associated with the additional Cobalt and preventative maintenance performed during the Cobalt installation. The Company used about $415,000 of its cash reserves to purchase and install the Cobalt and incurred no additional debt for that purchase. Management anticipates increased revenue during the remaining quarters of 2006 based on growing customer demand. Operating and marketing expenses are expected to increase slightly due to higher depreciation costs associated with the additional Cobalt and a new warehouse that the Company is constructing. The warehouse is expected to be completed during the third quarter of 2006 due to general delays in the permitting process for construction projects in central Florida. When completed, the warehouse will be leased to a large customer, which will provide space to accommodate new customers in the existing facility. Liquidity and Capital Resources - ------------------------------- As of March 31, 2006, the Company has cash on hand of $209,532 and accounts receivable of $301,585. PART II OTHER INFORMATION Item 1 Legal Proceedings The company is not involved in any legal proceedings. Item 2-6 Not applicable 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. Date: May 12, 2006 FOOD TECHNOLOGY SERVICE, INC. /S/ Richard Hunter --------------------------------- Richard Hunter, Ph.D., Chief Executive Officer and Chief Financial Officer EX-31 2 exhibit31.txt EXHIBIT 31 CERTIFICATION EXHIBIT 31 I Certify that: 1. I have reviewed this Quarterly Report on Form 10-QSB of Food Technology Service, Inc. for the three months ended March 31, 2006. 2. Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statement made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report; 3. Based on my knowledge, the Financial Statements, and other financial information included in the Quarterly Report fairly present in all material respects, the financial condition, results of operations and cash flows of the registrant as of and for the periods presented in this Quarterly Report; 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13A-14 and 15D-14 for the registrant and we have: a) Designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared; b) Evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this Quarterly Report (the "Evaluation Date") and; c) Presented in this Quarterly Report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) All significant deficiencies in the design or operation of internal controls, which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this Quarterly Report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: May 12, 2006 FOOD TECHNOLOGY SERVICE, INC. By: / s/ Richard G. Hunter ---------------------------- Richard G. Hunter, Ph.D. Chief Executive Officer and Chief Financial Officer EX-32 3 exhibit32.txt EXHIBIT 32 Certification of Periodic Report EXHIBIT 32 Section 906 of The Sarbanes-Oxley Act of 2002 In connection with the Quarterly Report of Food Technology Service, Inc.(the "Company") on Form 10-QSB for the period ending March 31, 2006 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Richard G. Hunter, Ph.D. as Chief Executive Officer and Chief Financial Officer, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge, that: 1. The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. /S/ Richard Hunter - ------------------ Richard G. Hunter, Ph.D. Chief Executive Officer and Chief Financial Officer May 12, 2006 -----END PRIVACY-ENHANCED MESSAGE-----