FCCC INC - Quarter Report: 2011 September (Form 10-Q)

fcc_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2011

	OR

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from _______________ to _______________

Commission File number: 811-0969

FCCC, INC.

(Exact name of small business issuer as specified in its charter)

Connecticut		06-0759497
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

200 Connecticut Avenue, Norwalk, Connecticut 06854

(Address of principal executive offices)

(203) 855-7700

(Issuer’s telephone number)

n/a

(Former name, former address and former fiscal year, if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes x No o

The number of shares outstanding of the issuer’s Common Stock, as of October 28, 2011, was: 1,561,022

Transitional Small Business Format: Yes o No x

FCCC, INC.

FORM 10-Q

INDEX

		PAGE
ITEM 1.	FINANCIAL STATEMENTS
	Balance Sheets		3
	Statements of Operations		4-5
	Statements of Changes in Stockholders’ Equity		6
	Statements of Cash Flows		7
	Notes to Condensed Financial Statements		8-9

ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION		10

ITEM 3.	CONTROLS AND PROCEDURES		11

	SIGNATURES		12

	EXHIBIT INDEX		13

	EXHIBITS

ITEM 1. FINANCIAL STATEMENTS

FCCC, INC.

BALANCE SHEETS

(Dollars in thousands, except share data)

	September 30, 2011 (Unaudited)			March 31, 2011 (Audited)
ASSETS
Current assets:
Cash and cash equivalents	$	144		$	179

Total current assets		144			179

Other assets		1			1

TOTAL ASSETS	$	145		$	180

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable and other accrued expenses	$	8		$	12

Total current liabilities		8			12

Commitments and contingencies		-			-

TOTAL LIABILITIES		8			12

Stockholders’ equity:
Common stock, no par value, stated value $.50 per share,
authorized 22,000,000 shares, issued and outstanding
1,561,022 shares at September 30, 2011 and March 31, 2011		781			781
Additional paid-in capital		8,035			8,035
Accumulated deficit		(8,679	)		(8,648	)
Total stockholders’ equity		137			168

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	145		$	180

See notes to financial statements.

FCCC, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except share data)

	Three Months Ended September 30,
	2011			2010

Income:
Interest income	$	1		$	1

Total income		1			1

Expense:
Operating and administrative expenses		17			18
Legal expenses		2			3

Total expense		19			21

Loss before income taxes	$	(18	)	$	(20	)
Income tax expense		-			-

Net Loss	$	(18	)	$	(20	)

Basic and Diluted loss per share	$	(0.01	)	$	(0.01	)

Weighted average common shares outstanding:
Basic and Diluted		1,561,022			1,561,022

See notes to financial statements.

FCCC, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except share data)

	Six Months Ended September 30,
	2011			2010

Income:
Interest income	$	2		$	2

Total income		2			2

Expense:
Operating and administrative expenses		28			31
Legal expenses		5			6

Total expense		33			37

Loss before income taxes		(31	)		(35	)
Income tax expense		-			-


Net Loss	$	(31	)	$	(35	)

Basic and Diluted loss per share	$	(0.02	)	$	(0.02	)

Weighted average common shares outstanding:
Basic and Diluted		1,561,022			1,561,022

See notes to financial statements.

FCCC, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Dollars in thousands, except share data)

	Common Stock				Paid-in			Accumulated
	Shares		Amount		Capital			Deficit			Total

Balance, March 31, 2009 (audited)		1,561,022	$	781	$	9,284		$	(8,504	)	$	1,561

Net Loss – Year Ended March 31, 2010 (audited)		-		-		-			(73	)		(73	)

Cash Distribution – August 2009		-		-		(1,249	)		-			(1,249	)

Balance, March 31, 2010 (audited)		1,561,022	$	781	$	8,035		$	(8,577	)	$	239

Net loss – year ended March 31, 2011 (audited)		-		-		-			(71	)		(71	)

Balance – March 31, 2011 (audited)		1,561,022	$	781	$	8,035		$	(8,648	)	$	168

Net loss – Six months ended September 30, 2011 (unaudited)		-		-		-			(31	)		(31	)

Balance – September 30, 2011 (unaudited)		1,561,022	$	781	$	8,035		$	(8,679	)	$	137

See notes to financial statements.

FCCC, INC

STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(unaudited)

	Six Months Ended September 30,
	2011			2010

Cash Flows from Operating Activities:

Net Loss	$	(31	)	$	(35	)

Adjustments to reconcile net loss to cash used in operating activities:
Changes in assets and liabilities:

Accounts payable and accrued expenses		(4	)		(3	)

Net cash used in operating activities		(35	)		(38	)

Net decrease in cash and cash equivalents		(35	)		(38	)
Cash and cash equivalents, beginning of period		179			250
Cash and cash equivalents, end of period	$	144		$	212

Supplemental cash flow disclosures:
Cash payments of interest	$	-		$	-
Cash payments of income taxes	$	-		$	-

See notes to financial statements.

FCCC, INC.

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS (Unaudited)

NOTE A - BASIS OF PRESENTATION

The accompanying unaudited condensed financial statements of FCCC, Inc. (the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X, promulgated by the Securities and Exchange Commission. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements.

In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair representation have been included herein. Operating results are not necessarily indicative of the results which may be expected for the year ending March 31, 2012 or other future periods. For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2011.

NOTE B - RELATED PARTY TRANSACTIONS

The Company currently has one executive officer, who has a consulting arrangement with the Company. Specifically, on July 1, 2003, the Company and Mr. Bernard Zimmerman, currently the President, Chief Executive Officer and Principal Financial Officer of the Company, entered into a Consulting Agreement (the “Zimmerman Consulting Agreement”) which provided for monthly payments of $2,000 to Mr. Zimmerman or his affiliate plus reasonable and necessary out-of-pocket expenses. Effective August 1, 2011, Mr. Zimmerman reduced his monthly fee to $1,500 per month. In addition, our legal counsel and our audit firm also instituted fee reductions. Upon the expiration of the Zimmerman Consulting Agreement on July 1, 2006, the Board of Directors authorized the extension of the Zimmerman Consulting Agreement, on a month-to-month basis. Management of the Company expects to use consultants, attorneys and accountants as necessary, and it is not expected that FCCC will have any full-time or other employees, except as may be the result of completing a transaction.

NOTE C – NEW PRONOUNCEMENTS AND SHARE BASED AWARDS

Recently Issued Accounting Pronouncements:

In January 2010, the FASB issued Accounting Standards Update (“ASU”) No. 2010-01, Accounting for Distributions to Shareholders with Components of Stock and Cash-a consensus of the FASB Emerging Issues Task Force,(Topic 505). This Accounting Standards Update clarifies that the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a potential limitation on the total amount of cash that all shareholders can elect to receive in the aggregate is considered a share issuance that is reflected in EPS prospectively and is not a stock dividend for purposes of applying Topics 505 and 260 (Equity and Earning Per Share). The Company is currently evaluating the impact of ASU 2010-01 on the Company’s financial statements.

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Earnings Per Common Share:

The Company follows FASB ASC 260 (formerly, SFAS No. 128), “Earnings Per Share”. ASC 260 simplifies the standards for computing earnings per share (EPS) and makes them comparable to international EPS standards. Basic EPS is based on the weighted average number of common shares outstanding for the period, excluding the effects of any potentially dilutive securities. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period.

Basic and diluted loss per common share was calculated using the following number of shares for the three months ended September 30:

	2011		2010

Weighted average number of common shares outstanding		1,561,022		1,561,022

Share Based Awards:

The company adopted “Share-Based Payment” FASB ASC 718 (formerly, FAS 123(R)), ASC 718 requires expense for all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Pro forma disclosure is no longer an alternative. For the Company, this statement was effective as of April 1, 2006. The Company adopted the modified prospective method, under which compensation cost is recognized beginning with the effective date. The modified prospective method recognizes compensation cost based on the requirements of ASC 718 for all share-based payments granted after the effective date and, based on the requirements of ASC 718, for all awards granted to employees prior to the effective date that remain unvested on the effective date. The Company does not expect to record any significant expenses under ASC 718 for options currently outstanding. However, the amount of expense recorded under ASC 718 will depend upon the number of options granted in the future and their valuation.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS AND PLAN OF OPERATION.

FORWARD-LOOKING STATEMENTS

This quarterly report and other reports issued by the Company, including reports filed with the Securities and Exchange Commission, may contain “forward-looking” statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that deal with future results, plans or performances. In addition, the Company’s management may make such statements orally, to the media, or to securities analysts, investors or others. Accordingly, forward-looking statements deal with matters that do not relate strictly to historical facts. The Company’s future results may differ materially from historical performance and forward-looking statements about the Company’s expected financial results or other plans are subject to a number of risks and uncertainties. This section and other sections of this quarterly report may include factors that could materially and adversely impact the Company’s financial condition and results of operations. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The Company undertakes no obligation to revise or update any forward-looking statements after the date hereof.

ANALYSIS OF OPERATIONS AND FINANCIAL CONDITION

The Company has limited operations and is actively seeking merger, reverse merger, acquisition or business combination opportunities with an operating business or other financial transaction opportunities. Until a transaction is effectuated, the Company does not expect to have significant operations. Accordingly, during such period, the Company does not expect to achieve sufficient income to offset its operating expenses, resulting in operating losses requiring the Company to use and thereby reduce its cash balance. Until the Company completes a merger, reverse merger or other financial transaction, and unless interest rates increase dramatically, the Company expects to continue to incur a loss of between $15,000 to $18,000 per quarter.

During the quarter ended September 30, 2011, the Company had a loss from operations of $(18,000). The loss is attributable to the operational and administrative expenses incurred during the quarter less minimal interest income earned. During the quarter ended September 30, 2010, the loss from operations was $(20,000). The decreased loss in the current quarter is primarily due to lesser amounts expended with respect to reverse merger activities and reductions in fees paid to the Company’s professionals.

During the six months ended September 30, 2011 the Company had a loss from operations of $(31,000) compared to a loss from operations in the six months ended September 30, 2010 of $(35,000). In both six months periods the Company had minimal interest income. The decrease in the loss in the current six month period is due to lesser amounts expended for reverse merger activities and reductions in fees paid to the Company’s professionals.

Stockholder’s equity as of September 30, 2011 was $137,000 as compared to $168,000 at March 31, 2011. The decrease is attributable to the net loss incurred by the Company during the six months ended September 30, 2011.

The Company had cash on hand at September 30, 2011 of $144,000 as compared to $179,000 at March 31, 2011. The decrease in cash on hand is primarily due to losses sustained by the Company in the six months ended September 30, 2011.

The Company does not have any arrangements with banks or financial institutions with respect to the availability of financing in the future.

The payment of any cash distribution is subject to the discretion of the Company’s Board of Directors. At this time the Company has no plans to pay any additional cash distributions in the foreseeable future.

SUBSEQUENT EVENTS

The Company has evaluated events that occurred subsequent to September 30, 2011, through the financial statement issue date of November 2, 2011 and determined that there were no recordable or reportable subsequent events.

PLAN OF OPERATION

As noted above, the Company has limited operations. The Company plans to continue as a public entity and continues to seek merger, acquisition and business combination opportunities with an operating business or other appropriate financial transactions. Until such an acquisition or business combination is effectuated, the Company does not expect to have significant operations. Accordingly, during such period, the Company does not expect to achieve sufficient income to offset its operating expenses, which will create operating losses requiring the Company to use and thereby reduce its cash on hand. See Analysis of Operations and Financial Condition (see above).

ITEM 3. CONTROLS AND PROCEDURES.

Report of Management on Internal Controls Over Financial Reporting

The Company’s management is responsible for establishing and maintaining adequate internal controls over financial reporting, as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Our internal controls over financial reporting is a process designed by, or under the supervision of, the Company’s Chief Executive Officer, who is also the Company’s Chief Financial Officer, to provide reasonable assurance to the Company’s Board of Directors regarding the reliability of financial reporting and the preparation and fair presentation of published financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Internal controls over financial reporting including those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the Company’s transactions and dispositions of the Company’s assets; (2) provide reasonable assurances that the Company’s transactions are recorded as necessary to permit preparation of the Company’s financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of the Company’s management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the Company’s financial statements.

The Company’s management assessed the effectiveness of the Company’s internal controls over financial reporting as of September 30, 2011 and for the fiscal year ended March 31, 2011 and concluded that such internal controls are effective. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in Internal Controls – Integrated Framework.

SIGNATURES

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 duly authorized.

	FCCC, INC.

Date: November 3, 2011	By:
		Name: Bernard Zimmerman
		Title: President, Chief Executive Officer and Principal Financial Officer

EXHIBIT INDEX

Exhibit No.		Description

31.1		Certificate of the Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1		Certificate of the Principal Executive and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS **		XBRL Instance Document

101.SCH **		XBRL Taxonomy Extension Schema Document

101.CAL **		XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF **		XBRL Taxonomy Extension Definition Linkbase Document

101.LAB **		XBRL Taxonomy Extension Label Linkbase Document

101.PRE **		XBRL Taxonomy Extension Presentation Linkbase Document

** XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.