10-Q 1 t24976.txt QUARTERLY REPORT 9/30/02 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q +---+ _ x _ QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE +---+ SECURITIES EXCHANGE ACT OF 1934 For the quarterly period SEPTEMBER 30, 2002 ------------------ OR +---+ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) _ _ OF THE SECURITIES EXCHANGE ACT OF 1934 +---+ For the transition period from to Commission file no. 0-3677 ------ DATATAB, INC. --------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) NEW YORK 13-1917838 ---------------------------------- ----------------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 49 EAST 21ST STREET, NEW YORK, NEW YORK 10010 ----------------------------------------------------- ------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 228-6800 ------------------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ------- ------- COMMON SHARES $1.00 PAR VALUE - 705,836 SHARES OUTSTANDING AS OF November 14, 2002 (EXCLUSIVE OF 83,119 SHARES IN TREASURY)

(Continued)

DATATAB, INC. AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Revenue for the nine months period ended September 30, 2002 decreased by 61% to $195,963 as compared to $500,290 for the corresponding period of 2001. Revenue for the three months period ended September 30, 2002 decreased 54% to $52,168 as compared to $113,460 for the corresponding period of 2001. The decrease in revenue for the nine month and three month periods was due to major cutbacks in the advertising and market research industries following the September 11, 2001 terror attacks. These cutbacks resulted in a severe slow down in demand for market research data processing services. In line with the decrease in revenue the Registrant managed to reduce its costs. Cost of sales during the nine months period ended September 30, 2002 decreased by $277,612 or 60% when compared to the similar period of 2001. During the three months period ended September 2002 the cost of sales decreased by 79% to $29,936 as compared to $143,002 for the corresponding period in 2001. The large decreases in cost of sales during the nine months period and the third quarter of the fiscal year were due to cost reductions that were put into effect due to the decrease in sales volume. Selling and Administrative expenses during the nine months period ended September 30, 2002 decreased by $12,635 or 10%. Interest income was lower by 81% during the nine months period ended September 30, 2002 when compared to the similar period of 2001. The majority of the interest income being recognized is from Data Probe, Inc. and it's note payable to the Registrant. During the nine months period of the current fiscal year Data Probe has repaid its note payable to the Registrant and also made advances of $21,528 to the Registrant. (See NOTE F of "Notes to Form 10-Q" contained in this report for additional information). The Registrant had a loss of $(89,987) during the nine month period ended September 30, 2002 as compared to a loss of $(77,208) in the similar period of 2001. The Registrant also reported a loss of $(16,633) for the three months period ending September 30, 2002 as compared to a loss of $(66,245) for the same period of 2001. CAPITAL EXPENDITURES. The Registrant incurred no capital expenditures during the current fiscal year. The registrant does not anticipate any material capital expenditures during the balance of fiscal year 2002. LIQUIDITY AND CAPITAL RESOURCES. Working capital decreased by 89,931 in the first nine months of 2002 from a negative balance of ($228,414) at December 31, 2001 to a negative balance of ($318,345) at September 30, 2002. There is no assurance that the stream of sales and revenue from the Registrant's clients will continue. If additional profitable revenues cannot be generated the Registrant will once again realize losses, and its ability to continue to operate would be severely affected in the absence of securing some type of supplemental financing, the availability of which there can be no assurance.

The notes to financial statements are made a part hereof. DATATAB, INC. AND SUBSIDIARIES NOTES TO FORM 10-Q (UNAUDITED) (NOTE A): The financial information contained in this Form 10-Q represents condensed financial data and, therefore, does not include all footnote disclosures required to be included in financial statements prepared in conformity with generally accepted accounting principles. Such footnote information was included in the Registrant's annual 10K report to the SEC for the year ended December 31, 2001. The condensed financial data included herein should be read in conjunction with that report. (NOTE B): (1) In management's opinion, all necessary adjustments have been made in order to present fairly the consolidated results of operations for the interim periods. (2) The results of operations for the interim period ending September 30, 2002 are not necessarily indicative of the results of operations for the year ending December 31, 2002. (NOTE C): Profit and loss per share is based on the average number of shares of common stock outstanding during each period after deducting treasury shares and taking into consideration the dilutive effect of outstanding stock options when applicable. (NOTE D): At December 31, 2001, the Registrant had available net operating loss carry-forwards in excess of $1,326,000, of which $199,000 expires in 2002, $120,000 in 2003, $87,000 in 2004, $94,000 in 2005, $84,000 in 2006, $99,000 in 2007 and the balance in 2008 and thereafter. (NOTE E): Inventories are summarized as follows: September 30, 2002 December 31, 2001 ------------------ ----------------- Work in process $ 1,100 $ 1,175 ================== ================= (NOTE F:) During the fiscal year Data Probe, Inc., the majority stockholder, has paid its debt to the Registrant and also made some advances to it. At September 30, 2002 the Registrant indebtedness to Data Probe was $21,528 and was evidenced by a demand note bearing interest at 2% above the prime rate. For the nine months ended September 30, 2002, Data Probe, Inc. charged the Registrant $122,748 for services rendered and 51,962 in rent related expenses. In addition, the Registrant charged Data Probe, Inc. in the same nine months period, $1,886 for interest, and $150,999 for services rendered. PART II ITEM 1. LEGAL PROCEEDINGS. NONE ITEM 2. CHANGE IN SECURITIES AND USE OF PROCEEDS. NONE 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 AND REPORTS ON FORM 8-K. (a) The Company did not file any reports on Form 8-K during The nine months ended September 30, 2002. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DATATAB, INC. Dated: November 14, 2002 By: /S/ YITZHAK N. BACHANA ---------------------------- Yitzhak N. Bachana, President Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated: Dated: November 14, 2002 /S/ YITZHAK N. BACHANA --------------------------------- Yitzhak N. Bachana, President, Treasurer, Principal Executive Officer, Principal Financial Officer, Director SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. DATATAB, INC. Dated: November 14, 2002 By: ---------------------- Yitzhak N. Bachana, President Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated: Dated: November 14, 2002 --------------------------------- Yitzhak N. Bachana, President, Treasurer, Principal Executive Officer, Principal Financial Officer, Director

DATATAB INC 10-Q