8-K 1 c79228e8vk.txt CURRENT REPORT UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): August 19, 2003 DONLAR CORPORATION (Exact name of registrant as specified in its charter) Illinois 000-11472 36-3683785 (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 6502 South Archer Road, Bedford Park, Illinois 60501 Registrant's telephone number, including area code: (708) 563-9200 (Address of principal executive offices) (Zip Code) (Former name or former address, if changed since last report.) ITEM 5. OTHER EVENTS On August 19, 2003, the Company issued the following press release. DONLAR CORPORATION ANNOUNCES SECOND QUARTER AND FIRST HALF 2003 RESULTS BEDFORD PARK, IL -- (AUGUST 19, 2003) -- DONLAR CORPORATION (OTC: DLRC), a world leader in green chemistry, products and technology, today announced that the Company reported revenue of approximately $1.1 million for the second quarter ended June 30, 2003, up 12% from revenue reported for the second quarter of 2002. For the first six months of 2003, the Company reported revenue of approximately $2.2 million, up 17% over the same time period in 2002. The Company reported revenue for the second quarter of 2003 of $1,136,783 compared to $1,014,403 for the second quarter of 2002, an increase of approximately 12%. The Company continues to see its main revenue growth in the oil field services industry and continues to develop sales in the agricultural market. Net loss in the second quarter of 2003 was reduced to approximately $1.2 million, compared to a net loss of $1.6 million for the second quarter of 2002. The decrease in net loss was primarily attributable to a reduction in interest expense relating to conversion of debt. The Company reported revenue for the first half of 2003 of $2,218,898 compared to $1,892,087 for the first six months of 2002, an increase of approximately 17%. The Company reported a net loss in the first six months of 2003 of $5.6 million compared to a net loss of approximately $4.1 million for the comparable six-month period in 2002. The increase in net loss was primarily attributable to expenses relating to the merger of Donlar Corporation and Donlar Biosyntrex Corporation in the first quarter 2003, as well as the conversion of debt. Larry Koskan, President and CEO of Donlar, stated: "We are pleased with the acceptance of Donlar's scale and corrosion inhibitor products in the oil production, water treatment, detergents and mining industries. Our agricultural business has continued to develop with positive results in plant health and yield enhancement in the premium vegetable markets. Our markets are responding to our protein polymer technology, which is leading to revenue growth and wider acceptance of Donlar's products. The Company continues to focus on achieving sales growth in all our markets, maintaining good expense control and developing new products, all demonstrating our commitment of quality products and services to our customers, employees and shareholders." ABOUT DONLAR Donlar Corporation is at the forefront of providing a new class of protein biopolymers that help customers by providing solutions while satisfying environmental concerns for the creation of non-toxic products for a wide range of industrial, agricultural and consumer markets. The Company's non-hazardous, non-toxic, hypoallergenic, environmentally friendly and biodegradable thermal polyaspartate (TPA) biopolymers are protected by 187 Company-owned patents. The Company's applications for its products include the markets of oil field operations, fertilizers, detergents and water treatment. Donlar's beta-protein biopolymers are manufactured in its 50,000 square foot facility located in Peru, Illinois. (www.donlar.com) This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties. The contents of this release should be considered in conjunction with the risk factors in Donlar Corporation's most recent filings with the Securities and Exchange Commission on Forms 10-QSB and 10-KSB and current reports on Form 8-K. DONLAR CORPORATION CONDENSED BALANCE SHEET (UNAUDITED) JUNE 30, 2003 ASSETS Current assets Cash $ 91,320 Receivables 311,920 Inventories, net 724,835 Prepaid expenses 74,173 -------------- Total current assets 1,202,248 Property and equipment, net 8,356,279 Patents 1,748,876 Other assets 239,970 -------------- Total assets $ 11,547,373 ============== LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities Current portion of convertible debt $ 21,033,352 Short term notes payable 71,000 Accounts payable 648,699 Accrued expenses 4,229,738 -------------- Total current liabilities 25,982,789 Shareholders' deficit Common stock, no par value 37,068,228 Senior convertible preferred stock, no par value 19,905,500 Additional paid-in capital 84,258,805 Accumulated deficit (155,667,949) -------------- Total shareholders' deficit (14,435,416) -------------- Total liabilities and shareholders' deficit $ 11,547,373 ==============

DONLAR CORPORATION CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)

DONLAR CORPORATION CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) FOR THE SIX MONTHS ENDED JUNE 30,

SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DONLAR CORPORATION Dated: August 19, 2003 By: /s/ Larry P. Koskan --------------------------------- Larry P. Koskan, Chief Executive Officer

DONLAR CORP 8-K