þ
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QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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¨
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TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
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Delaware
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98-0233941
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(State
or other jurisdiction of incorporation or organization)
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(I.R.S.
Employer Identification No.)
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March
31,
2008
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September
30,
2007
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|||||||
(unaudited)
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||||||||
ASSETS
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||||||||
Current
Assets
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||||||||
Cash
and cash equivalents
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$ | 935,300 | $ | 484,295 | ||||
Accounts
receivable, less allowance for doubtful accounts of $nil at March 31, 2008
and September 30, 2007
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3,315,241 | 2,488,056 | ||||||
Inventories
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937,512 | 719,760 | ||||||
Prepaid
expenses and other current assets
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31,818 | 136,979 | ||||||
Total
Current Assets
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5,219,871 | 3,829,090 | ||||||
Property
and Equipment, net
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2,718,766 | 2,648,155 | ||||||
Financial
Assets
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210,847 | - | ||||||
Other
Assets
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||||||||
Intangibles
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- | - | ||||||
Other
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12,332 | 11,937 | ||||||
Total
Assets
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$ | 8,161,816 | $ | 6,489,182 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
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||||||||
Current
Liabilities
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||||||||
Notes
payable, current portion
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$ | 60,840 | $ | 58,891 | ||||
Notes
payable, officers, current portion
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- | 62,377 | ||||||
Accrued
officers’ salaries
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169,258 | 330,078 | ||||||
Royalties
payable, related party
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648,938 | 503,617 | ||||||
Loan
payable, related party
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- | 77,330 | ||||||
Current
tax payable
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702,120 | 553,067 | ||||||
Accounts
payable and other current liabilities
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1,182,768 | 1,237,109 | ||||||
Total
Current Liabilities
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2,763,924 | 2,822,469 | ||||||
Long-Term
Liabilities
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||||||||
Notes
payable, less current portion
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171,435 | 199,429 | ||||||
Notes
payable, officers, less current portion
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- | 58,051 | ||||||
Employee
entitlement provisions
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18,913 | 10,928 | ||||||
Deferred
tax liability
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84,455 | 38,295 | ||||||
Total
Long-Term Liabilities
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274,803 | 306,703 | ||||||
Commitments
and Contingencies
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||||||||
Stockholders’
Equity
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||||||||
Preferred
Stock: $0.01 par value; authorized 3,000,000 shares; issued and
outstanding – none
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- | - | ||||||
Common
Stock: $0.01 par value; authorized 50,000,000 shares; 16,950,000 issued
and outstanding
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169,500 | 169,500 | ||||||
Capital
in excess of par value
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1,773,382 | 1,773,382 | ||||||
Accumulated
other comprehensive income
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1,260,799 | 1,086,631 | ||||||
Accumulated
income
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1,919,408 | 330,497 | ||||||
Total
Stockholders’ Equity
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5,123,089 | 3,360,010 | ||||||
Total
Liabilities and Stockholders’ Equity
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$ | 8,161,816 | $ | 6,489,182 |
Three
Months Ended
March
31,
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Six
Months Ended
March
31,
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|||||||||||||||
2008
(unaudited)
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2007
(unaudited)
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2008
(unaudited)
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2007
(unaudited)
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|||||||||||||
Sales
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$ | 4,206,235 | 1,753,814 | $ | 7,386,574 | $ | 3,412,121 | |||||||||
Cost
of Sales
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1,762,635 | 1,047,900 | 3,563,501 | 1,786,463 | ||||||||||||
Gross
Profit
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2,443,600 | 705,914 | 3,823,073 | 1,625,658 | ||||||||||||
Operating
Expenses
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||||||||||||||||
Selling,
general and administrative expenses
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785,594 | 564,304 | 1,552,175 | 1,091,722 | ||||||||||||
Income
(Loss) From Operations
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1,658,006 | 141,610 | 2,270,898 | 533,936 | ||||||||||||
Other
Income (Expense)
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||||||||||||||||
Interest
income
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20,059 | 8,145 | 29,673 | 8,149 | ||||||||||||
Interest
expense
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(4,144 | ) | (5,858 | ) | (8,849 | ) | (14,242 | ) | ||||||||
Insurance
recovery
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12,438 | 391 | 23,275 | 2,193 | ||||||||||||
Other
income
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7,961 | 4,649 | 15,182 | 4,765 | ||||||||||||
Impairment
expense
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(44,199 | ) | - | (44,199 | ) | - | ||||||||||
(7,885 | ) | 7,327 | 15,082 | 865 | ||||||||||||
Income
(Loss) Before Income Tax Expense
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1,650,121 | 148,937 | 2,285,980 | 534,801 | ||||||||||||
Income
tax expense
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(495,915 | ) | (176,498 | ) | (697,069 | ) | (176,498 | ) | ||||||||
Net
Income (Loss)
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$ | 1,154,206 | $ | (27,561 | ) | $ | 1,588,911 | $ | 358,303 | |||||||
Basic
Income (Loss) and Diluted Income (Loss) per Common Share
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$ | 0.068 | $ | (0.002 | ) | $ | 0.094 | $ | 0.021 | |||||||
Weighted
Average Common Shares Outstanding
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16,950,000 | 16,950,000 | 16,950,000 | 16,950,000 | ||||||||||||
Comprehensive
Income (Loss)
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||||||||||||||||
Net
Income (Loss)
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$ | 1,154,206 | $ | (27,561 | ) | $ | 1,588,911 | $ | 358,303 | |||||||
Other
Comprehensive Income (Loss)
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||||||||||||||||
Foreign
currency translation adjustment
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237,688 | 58,035 | 174,168 | 184,384 | ||||||||||||
Comprehensive
Income (Loss)
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$ | 1,391,894 | $ | 30,474 | $ | 1,763,079 | $ | 542,687 |
Six
Months Ended
March
31,
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||||||||
2008
(unaudited)
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2007
(unaudited)
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|||||||
Cash
Flows From Operating Activities
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Net
income (loss)
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$ | 1,588,911 | $ | 358,303 | ||||
Adjustments
to reconcile net income (loss) to net cash provided byoperating
activities:
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||||||||
Depreciation
and amortization
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89,031 | 83,607 | ||||||
Impairment
expense
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44,199 | - | ||||||
Increase
(decrease) in cash and cash equivalents attributable to changes
inoperating assets and liabilities:
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||||||||
Accounts
receivable
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(728,517 | ) | (594,737 | ) | ||||
Inventories
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(189,682 | ) | (47,722 | ) | ||||
Prepaid
expenses and other current assets
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107,289 | 4,369 | ||||||
Accrued
officers’ salaries
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(160,820 | ) | 38,829 | |||||
Accounts
payable and other current liabilities
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60,094 | 217,695 | ||||||
Income
taxes payable
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171,792 | 251,885 | ||||||
Net
Cash Provided by Operating Activities
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982,297 | 312,229 | ||||||
Cash
Flows From Investing Activities
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||||||||
Purchase
of property and equipment
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(72,380 | ) | (72,681 | ) | ||||
Purchase
of listed financial assets
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(250,424 | ) | - | |||||
Net
Cash Provided by (Used in) Investing Activities
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(322,804 | ) | (72,681 | ) | ||||
Cash
Flows From Financing Activities
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||||||||
Repayments
on notes and loans payable
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(232,246 | ) | (207,725 | ) | ||||
Net
Cash Used in Financing Activities
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(232,246 | ) | (207,725 | ) | ||||
Effect
of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
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23,758 | 59,203 | ||||||
Net
Increase (Decrease) in Cash and Cash Equivalents
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451,005 | 91,026 | ||||||
Cash
and Cash Equivalents at Beginning of Period
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484,295 | 18,955 | ||||||
Cash
and Cash Equivalents at End of Period
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$ | 935,300 | $ | 109,981 | ||||
Supplemental
disclosure of cash flow information, cash paid for
interest
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$ | 8,849 | $ | 14,242 | ||||
Supplemental
disclosure of non cash information, equipment acquired under note
payable
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$ | - | $ | 28,865 |
Mar
31, 2008
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Sept
30, 2007
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Raw
materials
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$ | 797,863 | $ | 574,084 | ||||
Work
in progress
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57,361 | 45,959 | ||||||
Finished
goods
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82,288 | 99,717 | ||||||
$ | 937,512 | $ | 719,760 |
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Certification
of the Chief Executive Officer required by Rule 13a-14(a) or Rule
15d-14(a).
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Certification
of the Chief Financial Officer required by Rule 13a-14(a) or Rule
15d-14(a).
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Certification
of the Chief Executive Officer required by Rule 13a-14(b) or Rule
15d-14(b) and 18 U.S.C. 1350.
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Certification
of the Chief Financial Officer required by Rule 13a-14(b) or Rule
15d-14(b) and 18 U.S.C. 1350.
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Date: May
7, 2008
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ALLOY
STEEL INTNERATIONAL, INC.
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By:
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/s/ Alan Winduss
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Alan
Winduss, Chief Financial Officer
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(Principal
Financial Officer)
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