Conolog Corp. Reports Operating Results (10-Q)
Conolog Corp. has a market cap of $2.8 million; its shares were traded at around $0 .
Highlight of Business Operations:Sales for the first quarter ended October 31, 2011 were significantly lower as compared to the prior year three month period, the sales revenue decreased $468,474 or 89% to $58,437, compared to total revenues of $526,911. The significant decrease is a result of the timing of orders and contract deliveries dates. In 2010, the Company was completing a significant contract order for the delivery of the PDR-2000. In 2011, the orders for PDR-2000 were low but the Company expects orders for the PDR-2000 to be equal or better than prior years annual sales. The timing and delivery of products will be different than prior years quarterly sales. Military sales was another area with a significant decline in sales, military sales declined $25,734 mainly due to cut backs in government military spending.
Total product cost of goods sold for the quarter ended October 31, 2011, amounted to $28,420 compared to $269,804 for the quarter ended October 31, 2010, a decrease of $241,384 or 89%. The decrease in cost of goods sold is a result of the sales volume decrease of 89% versus the prior year.
The Company recorded a net loss of $618,372 for the quarter ended October 31, 2011, as compared to a net loss of $831,585 for quarter ended October 31, 2010. The decrease in net loss of $213,213 can mainly be attributed to noncash transactions related to the subscription agreement entered into in August 2009, which resulted in amortization costs related to derivative financial instruments of $304,468. For the quarter ended October 31, 2011, gross profit decreased $227,090, general and administrative costs were $92,539 lower than the prior period, research and development was also down versus the prior period in the approximate amount of $33,962, and selling expense was $1,072 lower. As a result of the foregoing, the Company reported a net loss applicable to
At October 31, 2011, the Company had total current assets of $747,863 and total current liabilities of $1,616,628, resulting in a working capital deficit of $868,765 compared to a working capital deficit of $765,966 at the fiscal year ended July 31, 2011. The Companys current assets consists of $249,883 in cash and cash equivalents, $19,454 in accounts receivable, $463,278 in inventory and $15,248 in prepaid expenses and other current assets. Accounts receivable decreased from $476,435 at July 31, 2011 to $19,454 at October 31, 2011, resulting from the timing of collections and lower sales during the quarter ended October 31, 2011.
Cash expenditures have exceeded revenues for the prior quarters and Management expects this consumption of cash to continue into the next three quarters. Our operations have been, and will continue to be, funded from existing cash balances and private placements of equity funding. During the fiscal year ended July 31, 2011, we raised $316,350 from loans made to the company by Robert Benou. To date, Mr. Benou has received repayments totaling $146,350, of which, repayments totaling $86,350 were made during the quarter ended October 31, 2011. We are dependent on improved operating results and raising additional funds over the next twelve month period. There are no assurances that we will be able to raise additional funding. In the event that we are unable to generate sufficient cash flow or receive proceeds from offerings of debt or equity securities, the Company may be forced to curtail or cease it activities and/or operations.
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