AMERITYRE CORP - Quarter Report: 2014 September (Form 10-Q)

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NEVADA	87-0535207
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1501 Industrial Rd., Boulder City, NV	89005
(Address of principal executive offices)	(Zip Code)

		Page
PART I
Item 1.	Financial Statements	3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	16
Item 4.	Controls and Procedures	16
PART II
Item 1.	Legal Proceedings	17
Item 1A.	Risk Factors	17
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	17
Item 3.	Defaults Upon Senior Securities	17
Item 4.	Not Applicable	17
Item 5.	Other Information	17
Item 6.	Exhibits	17
SIGNATURES		18

		September 30, 2014				June 30, 2014
		(Unaudited)
ASSETS
CURRENT ASSETS
Cash		$	626,170			$	728,585
Accounts receivable - net			371,068				384,160
Accounts receivable - related party - net			17,089				17,089
Inventory - net			768,470				770,991
Prepaid and other current assets			50,290				39,631
Total Current Assets			1,833,087				1,940,456
PROPERTY AND EQUIPMENT
Leasehold improvements			162,683				162,683
Molds and models			826,404				824,979
Equipment			2,967,623				2,966,649
Furniture and fixtures			105,622				105,622
Construction in progress			7,038				975
Software			316,602				311,632
Less - accumulated depreciation			(3,952,746	)			(3,915,542	)
Total Property and Equipment			433,226				456,998
OTHER ASSETS
Patents and trademarks - net			278,934				286,947
Deposits			11,000				11,000
Total Other Assets			289,934				297,947
TOTAL ASSETS		$	2,556,247			$	2,695,401

		September 30, 2014				June 30, 2014
		(Unaudited)
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses		$	656,939			$	617,678
Current portion of long-term debt			15,176				16,013
Total Current Liabilities			672,115				633,691
Long-term debt			53,840				53,840
TOTAL LIABILITIES			725,955				687,531
STOCKHOLDERS' EQUITY
Preferred stock: 5,000,000 shares authorized of $0.001 par value, 2,000,000 shares issued and outstanding, respectively			2,000				2,000
Common Stock: 55,000,000 shares authorized of $0.001 par value, 41,441,620 shares issued and outstanding, respectively			41,441				41,441
Additional paid-in capital			62,462,206				62,455,820
Accumulated deficit			(60,675,355	)			(60,491,391	)
Total Stockholders' Equity			1,830,292				2,007,870
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,556,247			$	2,695,401

 

 

NON-CASH FINANCING ACTIVITES
Interest paid		$	-			$	4,500
Income taxes paid		$	-			$	-

 

 

 
 

 

 

 

 

 

 

 

 

 

 

		September 30, 2014				June 30, 2014
		(Unaudited)
Raw Materials		$	304,480			$	358,725
Finished Goods			577,446				525,722
Inventory reserve			(113,456	)			(113,456	)
Total Inventory		$	768,470			$	770,991

Risk free interest rate			1.190	%
Expected life			3.8 – 4.0	years
Expected volatility			212.79 – 215.53	%
Dividend yield			0.00	%

 

 

		September 30,  2014								June 30,  2014
		Shares				Weighted Average Exercise Price				Shares				Weighted Average Exercise Price
Outstanding beginning of period			1,754,000			$	0.17				1,904,000			$	0.23
Granted			100,000			$	0.10				150,000				0.08
Expired/Cancelled			-			$	-				(300,000	)			0.50
Exercised			-			$	-				-				-
Outstanding end of period			1,854,000			$	0.17				1,754,000			$	0.17
Exercisable			1,704,000			$	0.18				1,604,000			$	0.18

 

 

 

 

 

 

 

 

·	Cost of sales, which consists primarily of raw materials, components and production of our products, including applied labor costs and benefits expenses, maintenance, facilities and other operating costs associated with the production of our products;

·	Selling, general and administrative expenses, which consist primarily of salaries, commissions and related benefits paid to our employees and related selling and administrative costs including professional fees;

·	Research and development expenses, which consist primarily of equipment and materials used in new product development and product improvement using our technologies;

·	Consulting expenses, which consist primarily of amounts paid to third-parties for outside services;

·	Depreciation and amortization expenses which result from the depreciation of our property and equipment, including amortization of our intangible assets; and

·	Stock based compensation expense related to stock and stock option awards issued to employees and consultants for services performed for the Company.

 

·	any changes in the market relating to the patents that would decrease the life of the asset;

·	any adverse change in the extent or manner in which the patents are being used;

·	any significant adverse change in legal factors relating to the use of the patents;

·	current period operating or cash flow loss combined with our history of operating or cash flow losses;

·	future cash flow values based on the expectation of commercialization through licensing; and

 

         

·	Net sales, which consists of product sales and equipment sales, if any;

·	Sales, net of returns and trade discounts, which is an indicator of our overall business growth and the success of our sales and marketing efforts;

·	Gross profit, which is an indicator of both competitive pricing pressures and the cost of goods sold of our products and the mix of product and equipment sales and license fees, if any;

·	Growth in our customer base, which is an indicator of the success of our sales efforts; and

·	Distribution of sales across our products offered.

 

 

 

		Periods ended Sept. 30,
		(in 000’s)
		2014				2013
Net cash used by operating activities		$	(88	)		$	(63	)
Net cash used in investing activities			(13	)			(20	)
Net cash (used)/provided by financing activities			(1	)			3
Net decrease in cash during the period		$	(102	)		$	(80	)

 

 

 

 

AMERITYRE CORPORATION
By:
/s/ Timothy L. Ryan
Timothy L. Ryan Chief Executive and Financial Officer (Principal Executive and Financial Officer)