HomeMy WebLinkAboutCOM 0212.337 1996-1998
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PA&t I
L'LM 1. 33usineaa
800d TeC hnOlagy service, ITC., iaraerly VindiCALOr, I11C., :the °COmpany"),
W6B Organized 63 d S1CSida eorpordLlan On DfCembeT 11, 19x6. Tht COmppny ownB
and opera:e3 en ::^adiation Eacillty, Lhat uses games radiation produced by
CoDdlt 60, to treat or process various foods !or inseo: diainteatation, ahel!
life lxtenafon and control of certain disease caufins miCrooraanisma. in April
1991, the Company COapletad its initial public oitering, snd the proceada
therefrom, apFraxiaately :12,000,000, were used primarily Lo pay for a portion of
the scat of Duildtng the Compan;r~9 irradiation faeili:y in Mulberry, Ftorida.
Con9Lruction of the laeility was completed in DeCepbar; 1991 and iL became
operational in January 1992.
the benefits of radiation in preventing food-borne illness ors well known.
Food irradiation is supported by the united Stataa Departaent oP Agriculture
:•U~A^:, the world Haelth OrgpnisatlOn, the United States Public He61th
SCr'9 ice, :be American Medical AaaaCiatl.On, th! Inatitu O! SOOd TtChnOlOgiata,
and reFutable SaSentiPic and medical organizations throtuholsL America. Ln
addition, mare than farts countri:s have approved the irradiation of food
precasts. She United Stata9 Food D Drug Administrption (^FDA^) hsa approved
irradiation as a Safe and eitectire neaps o! procaaaing a variety cf iooda. 'ro
daL~n, Lhe FDA Loa dpprcved the irradiation of (i) pork, t0 control trio+inosis;
::i) peal ;ry, fur the corrLral Os disease-causing pathogens; tail) spitta, iar
sterili.,u~:ian; and (LV) all fresh fruits and ve8etablea, for insect
dasinfestution, and tc de:lay matuosLion, which extanda the shelf life o! many
Yresh fruits and v:getables.
the C~smpany exaects :hat its success will be dependant upon the processing
of Doultr;,, meat and Rhellffsh. idawever. the FDA has no: yeL approved She
irradiol.ian of }.'i3e, .1re11fiah, or meat, nor has it-approved a standard
polystyrene icon tray for the packaging of poultry. the delays at the Yaderal
level are ?recEM:ing the Ganpany from implementing the technology Por the
irradiation Of neat Bad ahellf ieh which h89 bean proven to Da effective in
Control 3.ing a. call, lis :..rie and other pathogens in meat, and in oiiminating
vibrio, includinr; cholera, found in raw ahelifieh. The petition to irradiate
neaLS wens 5ubritted tc the FDA in Ta ly 199x. A petition !er the aDProval of Lhe
irradiation cf fish end atselifis bas been pending sore than eight (8> years,
)'e; no l:inaL FDF, action hag been taken. The information neCeBaary to approve
the stanc4lyd Folystyrene foss, tray has been at the FDA !or nearly two years. Dut
_t has not yet acted Lo approvC the use of this material Sor packaging.
Management is working diliF;enLly with gone neat proaeaeors and with a major
retailer :a gain t:+e necaaa0ry approvals. ao that the :echnoloey which can
protest cansumeru fret dangerous pathogens will be implemented. The Company
presently irrpdiutes tea: !or as:ronauta. shish hoe bean approved Dy the FDa,
bu: it Cannot, as yet, o:ter fta Services to proceeaora to irradiate meat for
the American ptople. Y.any harvesters of shrimp end cya:era have been forced into
bankrDptvy, as u .result o! the warnings to the public aDOUt the dangers of
enjoyfnF raw shc;'.:ifish, while the technology of irradiation, which hna Daen
proven to De er. effective aethad ai making aheiifiah oaf! !or human consumption,
awaits FI)A approval. The Company is unable to predict when the Federal
approvals will be finalized, however, the Company antioipates that rho petition
for the irradiat-on of meat will 9e approved in 199?. The numerous problems that
Gave Deen encountered in gpining the 2'DA approvals have DeOn very discouraging
for the Company, and revenues to date have Deen nominal as a result hereof.
7~
Revenues "_or 1FE0 were 5196.E47, •7f which approximately TOlE wag attributable to
the Arcce::aing aY Seeaonings and s,Pices. A nominal anwunt of poultry was also ,y
processed and shipped. II~~
n. ct P
~ 7biPresented
MAY ~ 7 1997
1Ref. llmte_
° '
Personnel ~ ? ~ ~ ,jam'
~o ~
At peceaMr 31, 1996, She Company erployed .~isvan persons, tive of which ors
otifde personnel and two are plant enployeea. L!-' taoiiity beoamOaw ;
Sully aperatianal. the Company antiaipataa tact it sill Head to hire
approximately seven additional emp20yees for cash Ohitt the laollity operates.
RaquireQ pdtecnnol will inaludad a shift eupergisar, a Oontraller/scheduler, a
quality aesnranoe supervisor, a plant operator, and three loaders/unloadsrs.
All handling at the CCbA1t s0 BaRrCa, phieh OOMIrs parladleally tar she purpose
of adding ar rescuing Cobalt 80, is done by Kordion. :lee "AgreemeaLS wlt6 MDs
Nordiort+• belcw-
Cobalt f.0 Supply
Sha Company has in pipes approximately 1.9 million curies of Cobalt e0- 't'ho
3eve1 of radioactivity of Cebalt 80 daCiines at approximately 184 per year, and
Hey Cobalt 80 Host iron tint to tins be purchased to malntpin an appropriate
radiation level. presthtly, the price Ot Cobalt g0 la approximately sl.a6 par
curie. Nordics has agreed Lo sell the Company all Ltt requlrenents !or Cobalt
80, and to accept Lhe return 0i all used Cobalt 90 that bile reaohad the end of
its weetul lift- see "AgreOaente with MD$ sardian" below.
Additional Uaee for irradiation
Aeaearch services
She Company uses its iaeilft;~ Lo irradiate various products as requtrid in
reasarcll activities being conducted by others, inclodin$ state and federal
governaen: agencies.
Medical and Cenauasr Fraducis
She Company tloea not expect :a provide irradiation treatment for medical
products, because under t5s teraa of its agreement with Nordian the Company will
under some circumsLancea be prohibited iron proeassin$ my product other than
food and zelated products. eowavsr, it the Company~a iaailit; does nos operate
aweaeeafu:ly ea a lpod irradiation taoility, it coald be comatrted at liSils or
no volt to a rtedicai end oonpuaer products irradiation facility. sea
"Agreecen:s sit}, MDS sordion" below-
F3ant 3atety
Saiety to Surrounding Community
while a radiation source does require special handling, the nseeeeary
preaaations ors well undarsteod and practiced daily at nuraraus medical supply
irradiation plants already In ope.ation. Unlike a nuclear power plant, Lhe
procaes does not Involve any nuclear reaetien. An irradiator is not a nuclear
raasLor. SL is simply a processing plant containing a ahiaided area where foods
are exposed Lo a source of ionizing radiation.
the Company+a irradiation activities will produce n0 harmful solid, liquid
qr gas of°luenis or pcllutanta. the Company uaOa~Caba1S s0 as its irradiation
source, which is a manufactured product and not a byproduct trop a nuclear
raaotor ar otherwise.
~0'd 9bR999F,RRRS ?1 "INT ?I~INM R (Tnn-I Wn?la W.14ic,~7 ~cciac~_ca
REPfl@T CP 3NALPEI~ENT CEBTITIED F'tA3r.IC ACCODNSANT3
So She ward Of Dize0tOra
And EtOCkhOldera
Food TeCh1ro10gY StFV1Ce, IaC-
ME have audited the aecwopanying balance aheete OS TOpd Technology Cerviee, tne.
:a 7fevslopment stage Campany> as of Decambar sl, 1988 and lass and 'Cho rslatsd
atateeemia of oporationa, gtocahOlders~ eQaity and cash flows tOr each of the:
throe years in the period ended Deoenber sl, 1999. those tinanoial atatarenta
are the responsibility of the Company~a Hanageaant. Our responsibility is to
axprege an opinion on these linancial atateHents basal! on our audits.
Be eonduc.ed cur audits in accordance with gerx~rally aocepteA auditing
standards. Thcae atanderda reguire that we plan and parlors th! audit to obtain
raasonabie aaauranes about whether the financial statements are area of apterial
miaststement. An audit inCladaa exanining, On a fast basis, evidence supporting
the oncosts and discioau;ea in the financial statements. An audlt also
includes A99eaairig th! accounting principles usa4 and aignitiasnt estimates mods
by eanageaent, as well as avalwting the overall linaneial statameM
preaantation.
Xe believe that our audits provide a reasonable basis !or our opinion.
In our opinion, the linanCiai atataeenta referred to lbove Fraean! lairly, in
all eatorial respects, the financial position of 3ood Rtchnology sarviee, Inc.
AB Of LeCmCDer 81., 1896 and 1885 and the results Of its Oparatl0np and its sash
flows for cash of tl+e three years in the period ended Daeaeber Si, 1896, in
cOnformitY with generally accepted sccaunting principles.
The aeconpanying financial statements Nava been praparad assuming that the
Company will Continue a8 a acing Concern. Aa diseaasad Ln Mote 9 t0 the
rinanc iel atatementa, the Coapeny is in the davelepnant stags and has not
received significant revenue and has incurred losses since inception.
Accordingly,, there _i. s sub3tantial, dokbe_.gpout tae, Conpany!p,,,p~,litx.,S~.,aoq~nu„~.
as
a`sai~ng, concezn_.. kanageeen~'~'y plans in regard"t"o`"$;li~se Herrera are also
~es"c'ribed in Notc 9. the financial stateasnta do not include Adjustments that
might reaAli from the OUta0ee of thin uncertainty. FOpd Technology SErvi0e, 2110.
b0'd 9b89996808~ Ol 'ONI NCI tlI'1 B QOO,d WOL'd Wd6£:zT l.F,fi-9A-CR
SYi O IOlUl
FOOD Tsa+NOLOOx saarscs. IMC.
(e D~ms~.oreaNr sre(~ coea°Arx~ -
ETATHidFNT$ QF OFiSlATIONF
Decewber li, 1985
:INCB:PLION)
Year Traded Deeenber 31. YhroaBh
- Deeewblr $i,
1884 1986 1896 1996
Ne: Salea 83E9,88t 1878,316 8188,647 81,019,048
PsoeeeBinB CDat9 884,899 538.3bT 876,788 1,S1S,838
General,
ndainiatrativ!
and Dlvelopelrt 88G,885 b07,867 881,788 $,638,813
Depreciation 348,802 888,939 307,987 1,968,984
Imeere64 ExAen,e 8818,237 8380,380 8848,934 8L,8T0,348
81,b?1,928 53,68b,488 81,849,485 88,081,383
LoaB froei
OAeretiOn9 '1,242,103) :I, 26S, 1a8) :1,Oba, 788) :7, 08E, 82b)
Other LnCeale
:LOBS):
T.ntereBt LACCLe 1,145 a80 5 188,884
Miscellaneous 14,400
Foreign Exchange 34,945 :83, aaa) 6,497 331,0.87
Equity in
Net Lo99
of Alfiliate :3S,OT1) (1,777) :83,114) :69,962)
Loss before
xnceae 2axeB :1,241,083) :1,327,867) :1.070,400) :8,667,808)
TBC4a! iaxe9 0 0 0 0
Nat LO6a :81,E41,083) (81,527,887) :81,070,400) (86,587,908)
NCL LoBB PBr ~
Coawcn Share C80.41) (80.38) C80.a3) (81.33)
SEE NOTE6 TO FINeNCLAL $TAIl~l6NT$
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COrpany F722850000
DOCimCT1t SypO: 10-K
Docewtlnt ntlte: i2!E.!98
eoend~eent:
DOe1We»t is 975716[8
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