PCYN.. $0.15 10Q
PROCYON CORPORATION & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2010 and June 30, 2010
(unaudited) (audited)
ASSETS September 30, June 30,
2010 2010
CURRENT ASSETS
Cash $ 817,826 $ 827,512
Certificates of Deposit, plus accrued interest 104,338 54,028
Accounts Receivable, less allowance for doubtful accounts of $1,000. 177,946 184,130
Inventories 205,006 188,287
Prepaid Expenses 104,070 116,815
Deferred Tax Asset 103,624 121,391
TOTAL CURRENT ASSETS 1,512,810 1,492,163
PROPERTY AND EQUIPMENT, NET 525,077 513,925
OTHER ASSETS
Deposits 792 1,854
Deferred Tax Asset 831,058 861,945
831,850 863,799
TOTAL ASSETS $ 2,869,737 $ 2,869,887
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 141,145 $ 184,942
Accrued Expenses 106,717 128,006
Current Portion of Mortgage Payable 27,210 26,335
TOTAL CURRENT LIABILITIES 275,072 339,283
LONG TERM LIABILITIES
Mortgage Payable 390,360 397,367
TOTAL LONG TERM LIABILITIES 390,360 397,367
STOCKHOLDERS' EQUITY
Preferred Stock, 496,000,000 shares - -
authorized, none issued.
Series A Cumulative Convertible Preferred Stock, 154,950 154,950
no par value; 4,000,000 shares authorized;
199,100 shares issued and outstanding.
Common Stock, no par value, 80,000,000 shares 4,416,676 4,416,676
authorized; 8,055,388 shares issued and outstanding.
Paid-in Capital 6,000 6,000
Accumulated Deficit (2,373,321 ) (2,444,389 )
TOTAL STOCKHOLDERS' EQUITY $ 2,204,305 2,133,237
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,869,737 $ 2,869,887
The accompanying notes are an integral part of these financial statements.
3
--------------------------------------------------------------------------------
PROCYON CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended September 30, 2010 and 2009
(unaudited) (unaudited)
Three Months Three Months
Ended Ended
Sep. 30, 2010 Sep. 30, 2009
NET SALES $ 654,245 $ 671,816
COST OF SALES 138,646 139,018
GROSS PROFIT 515,599 532,798
OPERATING EXPENSES
Salaries and Benefits 215,875 248,233
Selling, General and Administrative 173,222 205,900
389,097 454,133
INCOME FROM OPERATIONS 126,502 78,665
OTHER INCOME (EXPENSE)
Interest Expense (7,734 ) (8,250 )
Interest Income 954 2,189
(6,780 ) (6,061 )
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 119,722 72,604
INCOME TAX EXPENSE (48,654 ) (29,291 )
NET INCOME FROM CONTINUING OPERATIONS 71,068 43,313
DISCONTINUED OPERATIONS
Income from Operations of Discontinued Component - 56,576
Provision for Income Tax Expense - (21,289 )
NET INCOME FROM DISCONTINUED OPERATIONS - 35,287
NET INCOME 71,068 78,600
Dividend requirements on preferred stock (4,978 ) (4,978 )
Basic net income available to common shares $ 66,090 $ 73,622
Basic net income per common share
Continuing Operations $ 0.01 $ 0.01
Discontinued Operations $ - $ 0.00
Total Basic Net Income Per Share $ 0.01 $ 0.01
Weighted average number of common shares outstanding 8,055,388 8,055,388
Diluted net income per common share
Continuing Operations $ 0.01 $ 0.01
Discontinued Operations $ - $ 0.00
Total Diluted Net Income Per Share $ 0.01 $ 0.01
Weighted average number of common shares outstanding, diluted 8,254,488 8,254,488
The accompanying notes are an integral part of these financial statements.
4
--------------------------------------------------------------------------------
PROCYON CORPORATION & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ending September 30, 2010 and 2009
(unaudited) (unaudited)
September 30, September 30,
2010 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 71,068 $ 78,600
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation 7,293 7,108
Deferred Income Taxes 48,654 50,580
Allowance for Doubtful Accounts - 500
Accrued Interest on Certificates of Deposit (310 ) 4,031
Decrease (increase) in:
Accounts Receivable 6,184 3,468
Inventory (16,719 ) (8,721 )
Prepaid Expenses 12,745 (34,038 )
Other Assets 1,062 -
Increase (decrease) in:
Accounts Payable (43,797 ) 13,592
Accrued Expenses (21,289 ) 1,128
NET CASH PROVIDED BY OPERATING ACTIVITIES 64,891 116,248
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of Certificate of Deposit (50,000 ) 191,645
Purchase of property & equipment (18,445 ) (1,846 )
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (68,445 ) 189,799
CASH FLOW FROM FINANCING ACTIVITIES
Payments on Mortgage Payable (6,132 ) (5,748 )
NET CASH USED BY FINANCING ACTIVITIES (6,132 ) (5,748 )
NET CHANGE IN CASH (9,686 ) 300,299
CASH AT BEGINNING OF PERIOD 827,512 403,030
CASH AT END OF PERIOD $ 817,826 $ 703,329
SUPPLEMENTAL DISCLOSURES
Interest Paid $ 7,783 $ 8,261
Taxes Paid $ - $ -
Non Cash Transaction Disclosure
Marketing Expense paid for by Accounts Receivable $ - $ 9,900
