-----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, Ny5yGCsgdzZEa3TV8GR2Virb50ACKD3ieI7OMZD10OdOJOeov/kXGFb3IDBFmXmP CVVyeIuzx8nRcgmt1bJV6Q== 0000868267-07-000008.txt : 20070514 0000868267-07-000008.hdr.sgml : 20070514 20070514094240 ACCESSION NUMBER: 0000868267-07-000008 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070331 FILED AS OF DATE: 20070514 DATE AS OF CHANGE: 20070514 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: 07844312 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 form10qsba.txt 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, 2007 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." Class March 31, 2007 ----- --------------- Common Stock $.01 Par Value 2,756,458 shares** ** reflects 1 for 4 reverse stock split on July 3, 2006 FOOD TECHNOLOGY SERVICE, INC. BALANCE SHEETS MARCH 31, DECEMBER 31, 2007 2006 ASSETS ---- ---- ------ (unaudited) * Current Assets: Cash $ 46,984 $ 425,110 Accounts Receivable Less Allowance For Doubtful Accounts of $2,500 in 2006 and 2007 358,743 362,684 Prepaid Expenses 39,402 27,852 ---------- ---------- Total Current Assets 445,129 815,646 ---------- ---------- Property and Equipment: Cobalt 3,888,251 3,100,973 Furniture and Equipment 1,794,362 1,792,601 Building 3,277,209 3,277,209 Less Accumulated Depreciation (4,956,621) (4,868,623) ---------- ---------- Total 4,003,201 3,302,160 Land 171,654 171,654 ---------- ---------- Total Property and Equipment 4,174,855 3,473,814 --------- --------- Other Assets: Deposits 5,000 5,000 Loan Costs 10,858 11,429 Deferred Income Tax 650,000 650,000 ---------- ---------- Total Other Assets 665,858 666,429 ---------- ---------- Total Assets $ 5,285,842 $ 4,955,889 =========== ========== FOOD TECHNOLOGY SERVICE, INC. BALANCE SHEETS March 31, DECEMBER 31, 2007 2006 LIABILITIES AND STOCKHOLDERS' EQUITY - ----------------------------------- ------ ------ (unaudited) * Current Liabilities: Current Portion of Note Payable $ 5,497 $ 3,113 Accounts Payable and Accrued Expenses 328,764 80,855 Financing Agreement and Debenture Payable 818,818 801,576 ---------- ---------- Total Current Liabilities 1,153,079 885,544 ---------- -------- Note Payable After One Year 244,403 246,787 ---------- -------- Total Liabilities 1,397,482 1,132,331 ---------- ---------- Stockholders' Equity: Common Stock $.01 par value, 5,000,000 shares authorized, 2,756,458 shares issued on March 31, 2007 and 2,756,458 shares outstanding on December 31, 2006 ** 27,565 27,565 Paid in Capital 12,059,122 12,059,122 Deficit (8,179,836) (8,244,638) Treasury Stock, 5,155 shares at cost ( 18,491) (18,491) ---------- ---------- 3,888,360 3,823.558 ---------- ---------- Total Liabilities and Stockholders' Equity $ 5,285,842 $ 4,955,889 ========== ========== * Condensed from audited financial statements ** reflects 1 for 4 reverse stock split on July 3, 2006 FOOD TECHNOLOGY SERVICE, INC. STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2007 AND 2006 2007 2006 ---- ---- (unaudited) (unaudited) Net Sales $ 480,517 $ 424,095 Processing Costs 113,600 93,246 --------- -------- Income from Operations 366,917 330,849 General Administrative and Development 191,979 169,834 Depreciation 87,998 95,489 Interest Expense 22,138 15,238 --------- -------- Income Before Income Taxes 64,802 50,288 Income Taxes Current 24,625 15,674 --------- -------- Income (Loss) before Benefit of Tax Loss Carryovers 40,177 34,614 Benefit of Tax Loss Carryovers 24,625 15,674 --------- -------- Net Income $ 64,802 $ 50,288 ========= ======== Net Income per Common Share ** $0.024 $0.018 ========= ======== 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 period ended March 31, 2007 are not necessarily indicative of the results to be expected for the full year. ** reflects 1 for 4 reverse stock split on July 3, 2006 FOOD TECHNOLOGY SERVICE, INC. STATEMENTS OF CASH FLOWS Three Months Three Months Ended Ended March 31, March 31, 2007 2006 -------------- -------------- (unaudited) (unaudited) Cash Flows from Operations: Sales Income Received $ 484,458 $ 409,461 Interest Received 335 253 Interest Paid (4,896) - Cash Paid for Operating Expenses (334,219) (305,321) --------- --------- 145,678 104,393 Cash Flows from Investing: Property & Equipment Purchase (523,804) (419,592) ---------- --------- (523,804) (419,592) Cash Flows from Financing Activities: - - ---------- --------- Net Increase (Decrease) in Cash (378,126) (315,199) Cash at Beginning of Period 425,110 524,731 ---------- ---------- Cash at End of Period $ 46,984 $ 209,532 ========== ========== _______________________________________________________________________________ Reconciliation of Net Income to Net Cash Provided by Operations Net Income $ 64,802 $ 50,288 Adjustments to Reconcile Net Income to Cash Provided by Operations: Depreciation 87,998 95,489 Amortization 571 - Accrued Interest 17,242 15,238 (Increase) Decrease in Inventories - - (Increase) Decrease in Receivables 3,941 (14,636) (Increase) Decrease in Prepaids (11,550) (26,189) Increase (Decrease)in Payables and Accruals (17,326) (15,797) ---------- ---------- Net Cash Provided by Operating Activities $145,678 $104,393 ========== ========== Management's Analysis of Quarterly Income Statements Operations - ---------- Food Technology Service Inc., had revenue of $480,517 during the first quarter of 2007. This compares to revenues of $424,095 for the same period in 2006. This is an increase of 13.3 percent. The Company had net income during the first quarter of 2007 of $64,802 compared to net income of $50,288 during the first quarter of 2006. This is an increase of about 29 percent. Management attributes increased revenue to increased production capacity resulting from the purchase of additional Cobalt in January 2007. This increased capacity allowed the Company to meet a growing demand for sterilization of medical products. These new customers require irradiation of their products on a regular basis and will provide continuing revenues. Expenses during the first quarter of 2007 were about $42,000 higher than in the same period in 2006. This was primarily due to increased insurance costs, expensing of stock options, consumable supplies and costs associated with the loading of additional Cobalt. The Company used about $400,000 of its cash reserves to purchase and install the Cobalt and incurred no additional long-term debt for that purchase. Management anticipates increased revenue during the remaining quarters of 2007 based on growing customer demand. Operating and marketing expenses are expected to decrease slightly. This reduction will be partially off-set by some routine maintenance to be conducted during the third quarter of 2007. Liquidity and Capital Resources - ------------------------------- As of March 30, 2007, the Company has cash on hand of $46,984 and accounts receivable of $358,743. 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 11, 2007 FOOD TECHNOLOGY SERVICE, INC. /S/ Richard Hunter --------------------------------- Richard Hunter, Ph.D., Chief Executive Officer and Chief Financial Officer EX-31 2 ex31.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, 2007. 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 11, 2007 FOOD TECHNOLOGY SERVICE, INC. By: / s/ Richard G. Hunter ---------------------------- Richard G. Hunter, Ph.D. Chief Executive Officer and Chief Financial Officer EX-32 3 ex32.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, 2007 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 11, 2007 -----END PRIVACY-ENHANCED MESSAGE-----