As a result of the above reductions in exercise and conversion prices, for the six months ended January 31, 2009 investors have converted $342,042 of debt for 684,084 common stock shares. The Company has recognized an
Induced Conversion cost related to these conversions of $205,911 for the six months ended January 31, 2009 compared to a $944,362 Induced Conversion cost for the same six month period last year.
Note 3 - Nasdaq Notification
On August 26, 2008 Conolog received a Nasdaq Staff Deficiency Letter stating that, as the bid price of the Companys common stock has closed below the minimum $1.00 per share requirement for continued listing on
the Nasdaq Capital Market set forth in Marketplace Rule 4310( c)(4), in accordance with Marketplace Rule 4310( c) (8)(D), the Company will be provided 180 calendar days , or until February 23, 2009, to regain compliance. If at any time before
February 23, 2009, the bid price of the Companys stock closes at $1.00 per share or more for a minimum of 10 consecutive business days Nasdaq will provide written notification that the Company complies with the rule.
On October 16, 2008, NASDAQ implemented a temporary suspension of the Marketplace Rule 4310(c ) (4) regarding the minimum closing bid price of $1.00. This temporary suspension will allow Conolog until May 24, 2009 to
regain compliance.
Note 4 Major Customers
The Companys revenues from three customers accounted for $643,473 or 68% of total revenues in the six months ended January 31, 2009. Total amounts due from these customers at January 31, 2009 were $255,107 or
86% of total accounts receivable. These three customers accounted for 10% or more of total revenues, which is the definition of a major customer.
Note 5 Subsequent Events
On February 25, 2009 the Company held its Annual Meeting of Shareholders. The shareholders approved a proposal to effect a reverse stock split of the Companys common stock at a ratio not less than two-for-one and not
greater than six-for-one, with the exact ratio to be set within such range in the discretion of the Board of Directors. On February 26, 2009 by unanimous written consent of the Board of Directors, the Board declared a one (1) for five (5) reverse
split effective upon the filing of the Certificate of Amendment with the Secretary of State of Delaware.
On March 16, 2009 the Company received a NASDAQ Staff Notification that its common stock had maintained a minimum bid price of $1.00 per share or greater for at least 10 consecutive business day and accordingly had
regained compliance with Marketplace Rule 4301 ( c) (4).
ITEM 2 MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED January 31, 2009
Product revenues for the six months ended January 31, 2009 totaled $945,640 representing an increase of 81% from the $522,727 reported for the same six month period last year. Product
revenues for the three months ended January 31, 2009 totaled $488,959, representing an increase of 45% from $338,174 for the same three month period last year. The Company attributes this to increased order releases from
utilities.
Product Cost (Material and Direct Labor) for the three months ended January 31, 2009 and 2008 totaled $130,331 and $93,453. Product Cost (Material and Direct Labor) for the six months
ended January 31, 2009 and January 31, 2008 totaled $234,363 (25% of Product revenues) and $196,602 (38% of Product revenues [excluding $100,000 inventory write down]) respectively. This reflects a net reduction of 13 % in Product Cost.
The Company attributes this improvement to Product Costs to the standardizing of costs to build our new PDR-2000 systems; the outsourcing of assemblies and continued use of assembly standards under ISO-9000.
Gross Profit for the six months ended January 31, 2009 and January 31, 2008 amounted to $711,277 or 75% and $226,125 or 43% respectively, the increase is a direct result of the increase
in sales deliveries as of January 31, 2009.
Selling, general and administrative expenses for the six months ended January 31, 2009 amounted to $1,133,547, a reduction of $1,055,443 from the same period last year. Selling, general
and administrative expenses for the three months ended January 31, 2009 amounted to $614,129, a reduction of $702,475 for the same period last year..
Non-cash non-operating expenses for the six-month period totaled $543,459 and included expenses related to the induced conversion cost of $205,911; $101,524 for amortization of
deferred debenture discount and $236,024 for amortization of deferred debenture costs.
8
As a result of the foregoing, the Company reported a net loss from operations of ($665,924) or ($.21) per share compared to a loss of ($4,177,068) or ($3.36) per share for the
six months ended January 31, 2009 and 2008, respectively.
LIQUIDITY AND FINANCIAL CONDITION
Inventories from the Companys product segment increased from $850,507 at July 31, 2008 to $1,087,055 for the six months ended January 31, 2009, an increase of $236,548. This
additional inventory is required to satisfy the Companys current backlog of over $300,000 in purchase orders and expected orders for the remainder of the 3
nd
quarter of fiscal year 2009 of $400,000.
Accounts Receivable-trade decreased to $298,261 for the six months ended January 31, 2009 from $360,846 as of July 31, 2008.
The Company expects to meet its cash requirements for the next 12 months through existing cash balances.
STATEMENT REGARDING PRESENT OPERATIONS
There were no material changes in the nature of the operations of the Registrant during the six months ended January 31, 2009. Detailed information is contained in the Registrants annual
report on Form 10-K for the fiscal year ended July 31, 2008.
FORWARD LOOKING STATEMENTS
This quarterly report contains certain forward-looking statements within the meaning of Section 27A of The Securities Act of 1933, as amended and section 21E of The Securities Act
of 1934, as amended. Such Statements are subject to certain risks and uncertainties, including, among other things, significant variations in recognizing revenue due to customer-caused delays, and intense competition from more well known companies,
that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as
of the date made. The Company wishes to advise readers that the factors listed above, among other factors, could affect the Companys financial performance and could cause the Companys actual results for future periods to differ
materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically declines any obligations, to publicly release the results of any revisions, which may be
made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of unanticipated events.
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
N/A
ITEM 4T CONTROLS AND PROCEDURES
(a) Evaluation of disclosure controls and procedures
Pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, the Company carried out an evaluation, under the supervision and with the participation of the Companys management,
including the Companys principal executive officer and principal financial officer, of the effectiveness of the design and operation of the Companys disclosure controls and procedures (as defined under Rule 13a-15 (e) under the
Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Companys principal executive officer and principal financial officer concluded that the Companys disclosure controls and
procedures are effective for gathering, analyzing and disclosing the information we are required to disclose under the Securities and Exchange Act of 1934.
(b) Changes in internal controls
There have been no significant changes in the Companys internal controls or, to its knowledge, in other factors that could significantly affect internal controls subsequent to the date
the Company carried out its evaluation.
9
PART II - OTHER
INFORMATION
Item 1. Legal Proceedings
Meyers Associates, L.P. v. Conolog Corporation, Supreme Court of the State of New York, County of New York
Index No. 600824/07.
On March 13, 2007, Meyers Associates, L.P. commenced an action against Conolog Corporation, asserting that: (1) Conolog breached a purported contract it had with Meyers pursuant to which it claims Meyers was to act as lead
underwriter in connection with a Regulation D securities offering for Conolog, and (2) Conolog misappropriated a purported confidential list of potential investors. Conolog denies the allegations in the complaint and intends to vigorously defend
against Meyerss claims. On January 10, 2008 the Court heard arguments on Conologs motion to dismiss, or, in the Alternative, for Summary Judgment. On March 5, 2008 the Court granted Conologs motion for summary judgment and on April
1, 2008 a Court conference was held to determine the remaining portion of the complaint in the amount of under $5,000. The complainant did not appear for this conference.
Allen Wolfson v. Conolog Corporation, United States District Court for the Southern District of New York, Case Number 08-cv-3790.
On April 22, 2008, Allen Wolfson filed an action against Conolog Corporation, asserting that there was a breach of contract in connection with four consulting contracts allegedly entered into with plaintiff and
entities controlled by plaintiff. On June 10, 2008, the company filed a motion to dismiss Plaintiffs complaint on the grounds that the Court lacks personal jurisdiction over the Company or, in the alternative, for Plaintiffs
failure to state a claim upon which relief can be granted. The motion to dismiss was fully briefed and submitted to the Court on June 26, 2008. On February 25, 2009 the United States District Court for the Southern District of New York dismissed
Wolfsons claim.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds: During the quarter ended January 31, 2009, three Note Holders exercised conversion rights to convert $58,680 principal and interest to 117,359
unregistered shares of common stock.
Item 3. Defaults upon Senior Securities None
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - None
ITEM 5. Other Information None
ITEM 6 . Exhibits
Exhibit Number Description
31.1 Certification of Chief Executive Officer
pursuant to Section 302 of the Sarbanes Oxley Act
31.2 Certification of Chief Financial
Officer pursuant to Section 302 of the Sarbanes Oxley Act
32
Certification
of Chief Executive Officer and Chief Financial Officer pursuant to Section
906 of the Sarbanes Oxley Act.
SIGNATURES
In
accordance with the requirements of the Exchange Act, the Registrants caused
this report to be signed on its behalf by the undersigned, thereunto and duly
authorized
|
|
CONOLOG CORPORATION
|
|
|
Date: March 23, 2009
|
|
By /s/ Robert S. Benou
|
|
|
Robert S. Benou
|
|
|
Chairman, Chief Executive Officer,
|
|
|
Chief Financial Officer and Treasurer
|
10
Conolog (MM) (NASDAQ:CNLGD)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Conolog (MM) (NASDAQ:CNLGD)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024