-----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, HmuBkWLIvKGdDR1cNHUjKiOz6oOku6rNGGgGweOVSDRr9i22cikHxWBSGHoxxy6V AevECSCVJFlKc9rj9vwLCw== 0000868267-08-000005.txt : 20080515 0000868267-08-000005.hdr.sgml : 20080515 20080515095109 ACCESSION NUMBER: 0000868267-08-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080515 DATE AS OF CHANGE: 20080515 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: 08834372 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 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, 2008 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, 2008 ----- --------------- Common Stock $.01 Par Value 2,756,458 shares FOOD TECHNOLOGY SERVICE, INC. BALANCE SHEETS MARCH 31, DECEMBER 31, 2008 2007 ASSETS ---- ---- ------ (unaudited) * Current Assets: Cash $ 440,439 $ 257,286 Accounts Receivable Less Allowance For Doubtful Accounts of $2,500 in 2008 and 2007 277,311 337,414 Prepaid Expenses 49,211 28,269 ---------- ---------- Total Current Assets 766,961 622,969 ---------- ---------- Property and Equipment: Cobalt 3,900,496 3,900,496 Furniture and Equipment 1,887,894 1,799,621 Building 3,282,029 3,282,029 Less Accumulated Depreciation (5,327,388) (5,236,601) ---------- ---------- Total 3,743,031 3,745,545 Land 171,654 171,654 ---------- ---------- Total Property and Equipment 3,914,685 3,917,199 --------- --------- Other Assets: Deposits 5,000 5,000 Loan Costs 8,572 9,143 Deferred Income Tax 650,000 650,000 ---------- ---------- Total Other Assets 663,572 664,143 ---------- ---------- Total Assets $ 5,345,218 $ 5,204,311 =========== ========== FOOD TECHNOLOGY SERVICE, INC. BALANCE SHEETS MARCH 31, DECEMBER 31, 2008 2007 LIABILITIES AND STOCKHOLDERS' EQUITY - ----------------------------------- ------ ------ (unaudited) * Current Liabilities: Current Portion of Note Payable $ 9,033 $ 9,033 Accounts Payable and Accrued Liabilities 109,741 68,334 Financing Agreement and Debenture Payable 793,878 777,726 ---------- ---------- Total Current Liabilities 912,652 885,093 ---------- -------- Note Payable After One Year 233,568 235,681 ---------- -------- Total Liabilities 1,146,220 1,090,774 ---------- ---------- Stockholders' Equity: Common Stock $.01 par value, 5,000,000 shares authorized, 2,756,458 shares issued and outstanding on December 31, 2007 27,564 27,564 Paid in Capital 12,123,258 12,114,350 Deficit (7,933,333) (8,009,886) Treasury Stock, 5,155 shares at cost (18,491) (18,491) ---------- ---------- Total Stockholders' Equity 4,198,998 4,113,537 ---------- ---------- Total Liabilities and Stockholders' Equity $ 5,345,218 $ 5,204,311 ========== ========== * Condensed from audited financial statements FOOD TECHNOLOGY SERVICE, INC. STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2008 AND 2007 2008 2007 ---- ---- (unaudited) (unaudited) Net Sales $ 558,869 $ 480,517 Processing Costs 135,987 113,600 --------- -------- Income from Operations 422,882 366,917 General Administrative and Development 233,875 191,979 Depreciation 90,787 87,998 Interest Expense 21,666 22,138 --------- -------- Income Before Income Taxes 76,554 64,802 Income Taxes Current 29,091 24,625 --------- -------- Income (Loss) before Benefit of Tax Loss Carryovers 47,463 40,177 Benefit of Tax Loss Carryovers 29,091 24,625 --------- -------- Net Income $ 76,554 $ 64,802 ========= ======== Net Income per Common Share $0.028 $0.024 ========= ======== 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, 2008 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, March 31, 2008 2007 -------------- -------------- (unaudited) (unaudited) Cash Flows from Operations: Sales Income Received $ 618,972 $ 484,458 Interest Received 13 335 Interest Paid (5,514) (4,896) Cash Paid for Operating Expenses (400,650) (334,219) --------- --------- 212,821 145,678 Cash Flows from Investing: Property & Equipment Purchase (27,555) (523,804) ---------- --------- (27,555) (523,804) Cash Flows from Financing Activities: Repayment on Note Payable (2,113) - ---------- --------- (2,113) - ---------- --------- Net Increase (Decrease) in Cash 183,153 (378,126) Cash at Beginning of Period 257,286 425,110 ---------- ---------- Cash at End of Period $ 440,439 $ 46,984 ========== ========== _______________________________________________________________________________ Reconciliation of Net Income to Net Cash Provided by Operations Net Income $ 76,554 $ 64,802 Adjustments to Reconcile Net Income to Cash Provided by Operations: Depreciation 90,787 87,998 Amortization 571 571 Accrued Interest 16,152 17,242 (Increase) Decrease in Inventories - - (Increase) Decrease in Receivables 60,103 3,941 (Increase) Decrease in Prepaids (20,942) (11,550) Increase (Decrease)in Payables and Accruals (10,404) (17,326) ---------- ---------- Net Cash Provided by Operating Activities $ 212,821 $ 145,678 ========== ========== Management's Analysis of Quarterly Income Statements Operations - ---------- Food Technology Service Inc., had revenues of $558,869 during the first quarter of 2008. This compares to revenues of $480,517 for the same period in 2007. This is an increase of 16.3 percent. The Company had net income during the first quarter of 2008 of $76,554 compared to net income of $64,802 during the first quarter of 2007. This is an increase of about 18.1 percent. Management attributes increased revenue to growing demand from both existing and new customers, particularly those requiring sterilization of medical devices. Irradiation of food and consumer goods is growing at a lesser rate. The Company plans to install additional Cobalt during the second quarter of 2008 to provide capacity to meet growing demand. During the first quarter of 2008, processing costs as a percentage of sales were 24.3 percent compared to 23.6 percent in the first quarter of 2007. General administrative and development costs as a percentage of sales during the first quarter of 2008 were 41.8 percent compared to 40 percent in the first quarter of 2007. The slight increases in processing costs and general, administrative and development expenses, as a percentage of sales, were due primarily to increased salary expense. Management anticipates increased revenue during the remaining quarters of 2008. Liquidity and Capital Resources - ------------------------------- As of March 30, 2008, the Company has cash on hand of $440,439 and accounts receivable of $277,311. 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 15, 2008 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, 2008. 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 15, 2008 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, 2008 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 15, 2008 -----END PRIVACY-ENHANCED MESSAGE-----