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Food Technology Service Inc. Reports Operating Results (10-Q)

August 16, 2010 | About:
10qk

10qk

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Food Technology Service Inc. (VIFL) filed Quarterly Report for the period ended 2010-06-30.

Food Technology Service Inc. has a market cap of $5.84 million; its shares were traded at around $2.12 with a P/E ratio of 4.93 and P/S ratio of 2.32.

Highlight of Business Operations:

Three Months Ended Six Months Ended

June 30, June 30,

2010 2009 2010 2009

- - - -

Current

Federal $ - $ - $ - $ -

State - - - -

- - - -

$ - $ -

= = = =

Deferred

Federal $ 94,400 $ - $ 171,800 $ -

State 10,100 - 18,300 -

- - - -

$ 104,500 $ - $ 190,100 $ -

= = = =



As of June 30, 2010 As of December 31, 2009

Current Non-Current Current Non-Current

- - - -

Deferred tax assets

NOL carryforwards $ 321,800 $ 802,100 $ 186,000 $ 1,128,000

- - - -

Deferred tax asset $ 321,800 $ 802,100 $ 186,000 $ 1,128,000

= = = =



As mentioned in Note B, effective January 1, 2006, the Company adopted the

fair value recognition provisions of FASB ASC 718. As a result, additional

compensation expense of $7,357 and $8,000 was recorded for the three months

ended June 30, 2010 and 2009, respectively. For the six months ended June 30,

2010 and 2009 additional compensation expenses recorded were $18,580 and

$16,000, respectively. An additional $41,232 could be recorded over

the remaining vesting period of 60 months. The Company used the following

assumptions in applying the Black-Scholes pricing method:



Out of the money options excluded Three Six

Months Ended Months Ended

June 30, June 30,

2010 2009 2010 2009

- - - -

Stock option with exercise price of $3.60 5,000 5,000 5,000 5,000

Stock option with exercise price of $4.56 - 2,500 - 2,500

Stock option with exercise price of $4.12 - 7,000 - 7,000

Stock option with exercise price of $3.56 2,250 2,250 2,250 2,250

Stock option with exercise price of $3.36 2,500 2,500 2,500 2,500

Stock option with exercise price of $3.28 10,000 10,000 10,000 10,000

Stock option with exercise price of $3.24 100,000 100,000 100,000 100,000

Stock option with exercise price of $2.52 10,000 10,000 10,000 10,000

Stock option with exercise price of $2.57 20,000 20,000 20,000 20,000

Stock option with exercise price of $2.18 11,500 - 11,500 -

- - - -

Total anti-dilutive options

excluded from EPS 161,250 159,250 161,250 159,250

= = = =



Food Technology Service Inc. had revenues of $761,230 during the second quarter

of 2010 compared to revenues of $652,724 for the same period in 2009. This is

an increase of approximately 16.4 percent. The Company had net income before

taxes during the second quarter of 2010 of $277,624 compared to net income of

$165,926 during the second quarter of 2009. This is an increase of

approximately 67.3 percent. For the first half of 2010, the Company had

revenues of $1,423,054 and net income before taxes of $505,215. Revenues

during the first half of 2009 were $1,327,554 and the Company had net income

before taxes of $347,798. Revenues increased by about 7.2 percent and net

income before taxes increased by approximately 45.3 percent in the first half

of 2010 compared to the same period in 2009.



The Company's statement of operations reflects non-cash deferred income tax

expense for the three months ended June 30, 2010 in the amount of $104,500. In

reporting periods prior to December 31, 2009, the Company had presented income

tax expense with a corresponding benefit as management continued to reduce its

valuation allowance for the deferred tax asset. For reporting periods after

December 31, 2009, management discontinued reducing the valuation allowance

resulting in a non-cash expense for income taxes. This resulted in net income

during the second quarter of 2010 of $173,124 versus net income of $165,296

during the second quarter of 2009. Similarly, the Company's statement of

operations reflects non-cash deferred income tax expense for the six months

ended June 30, 2010 in the amount of $190,100, with net income of $315,115

during the first half of 2010 verses $347,798 during the same period of 2009.



Read the The complete Report

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