Pro-Tech Industries, Inc. (fka PTCK)

[10 bagger]

PTCK.. $0.15 10Q 3/31/11

PRO-TECH INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS


March 31, 2011 December 31,
(unaudited) 2010
ASSETS
Current Assets:
Cash and cash equivalents $ 290,999 $ 323,472
Contract receivable, net of allowance for doubtful accounts as of March 31, 2011 and December 31, 2010, of $80,000 and $100,000, respectively (Note D) 2,778,822 2,471,505
Costs and estimated earnings in excess of billings (Note E) 556,253 347,254
Inventory 56,366 59,948
Other current assets 105,237 127,399
Deferred financing cost, net 3,979 30,130
Total current assets 3,791,656 3,359,708

Property plant and equipment, net (Note F) 273,909 282,183

Other Assets:
Deposits 10,856 10,856
Total assets $ 4,076,421 $ 3,652,747

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable and accrued expenses (Note H) $ 2,587,930 $ 1,821,676
Short term note payable 17,500 26,658
Notes payable – current portion (Note J) 205,375 214,872
Accruals on uncompleted projects (Note E) 172,429 310,082
Reserve for loss on uncompleted contracts 6,838 6,472
Line of credit (Note I) 925,000 950,000
Warrant and preferred stock derivative liability 456,368 547,472
Discontinued operations (Note C) 146,648 554,114
Total current liabilities 4,518,088 4,431,346

Long -Term Liabilities:
Notes payable- others – long term portion (Note J) 140,564 183,530
Discontinued Operations (Note C) 71,418 123,526
Total Long Term Liabilities 211,982 307,056

Series A 10% convertible redeemable preferred stock, $0.001 par value, 40,000 shares authorized; 23,000 issued and outstanding, (net) at March 31, 2011 and December 31, 2010, respectively (face value $575,000, respectively) 602,079 459,411

Stockholders' Equity (Deficit):
Preferred stock, undesignated, $0.001 par value; 4,960,000 shares authorized, no shares issued and outstanding - -
Common Stock, $0.001 par value; 70,000,000 shares authorized; 18,894,474 and 18,832,808 shares issued and outstanding at March 31, 2011 and December 31, 2010, respectively 18,894 18,833
Additional paid in capital 1,046,939 1,152,934
Accumulated deficit (2,321,561 ) (2,716,833 )
Total stockholders’ equity (deficit) (1,255,728 ) (1,545,066 )

Total liabilities and stockholders' equity (deficit) $ 4,076,421 $ 3,652,747

Three months Ended
March 31, 2011 Three months Ended
March 31, 2010

Net revenue $ 3,549,362 $ 2,807,467
Less: Cost of sales 2,209,933 1,998,567
Gross profit 1,339,429 808,900

Operating Expenses:
Depreciation and amortization (Note F & G) 51,068 75,677
Selling, general and administrative 1,308,223 1,182,430
Total Operating Expenses 1,359,291 1,258,107

Income (Loss) from Operations (19,862 ) (449,207 )

Other Income (Expense):
Gain (loss) on change in fair value of derivative liability 91,104 -
Interest expense, net (21,472 ) (33,737 )
Total Other Income (Expense) 69,632 (33,737 )

Income (loss) income before income taxes 49,770 (482,944 )

Income tax benefit (expense) - 80,490

Income(loss) from continuing operations 49,770 (402,454 )

Income(loss) from discontinued operations 359,679 (650,162 )

Net Income(Loss) 409,449 (1,052,616 )

Preferred stock dividends and amortized discount 154,689 -

Net Income(loss) attributable to common shareholders $ 254,760 $ (1,052,616 )

Net income (loss) per share from continuing operations:
Basic $ 0.00 $ (0.02 )
Diluted $ 0.00 $ (0.02 )

Net income (loss) per share:
Basic $ 0.02 $ (0.06 )
Diluted $ 0.02 $ (0.06 )

Net income (loss) per share attributable to common shareholder:
Basic $ 0.01 $ (0.06 )
Diluted $ 0.01 $ (0.06 )

Weighted average common shares outstanding (Note A):
Basic 18,398,574 18,022,600
Diluted 21,263,353 18,022,600


See accompanying notes to these unaudited condensed consolidated financial statements