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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Large
accelerated filer ¨
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Accelerated
filer ¨
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Non-accelerated
filer ¨ (Do not check if
a smaller reporting company)
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Smaller
reporting company þ
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March
31,
2009
(unaudited)
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September
30,
2008
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|||||||
ASSETS
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||||||||
Current
Assets
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||||||||
Cash
and cash equivalents
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$ | 750,963 | $ | 664,054 | ||||
Accounts
receivable, less allowance for doubtful accounts of $nil at March 31, 2009
and September 30, 2008
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546,308 | 2,290,147 | ||||||
Inventories
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2,479,476 | 2,365,049 | ||||||
Prepaid
expenses and other current assets
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44,330 | 70,161 | ||||||
Total
Current Assets
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3,821,077 | 5,389,411 | ||||||
Investments
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138,703 | 173,422 | ||||||
Property
and Equipment, net
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2,521,268 | 2,976,200 | ||||||
Other
Assets
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||||||||
Intangibles
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17,863 | 17,863 | ||||||
Other
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18,524 | - | ||||||
Total
Other Assets
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36,387 | 17,863 | ||||||
Total
Assets
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$ | 6,517,435 | $ | 8,556,986 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
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||||||||
Current
Liabilities
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||||||||
Notes
payable, current portion
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$ | 63,047 | $ | 75,739 | ||||
Accrued
officers’ salaries
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11,745 | 14,998 | ||||||
Royalties
payable, related party
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828,335 | 763,176 | ||||||
Current
tax payable
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471,234 | 1,100,129 | ||||||
Accounts
payable and other current liabilities
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605,142 | 1,026,329 | ||||||
Total
Current Liabilities
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1,979,503 | 2,980,371 | ||||||
Long-Term
Liabilities
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||||||||
Notes
payable, less current portion
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157,206 | 225,728 | ||||||
Employee
entitlement provisions
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8,578 | 9,402 | ||||||
Deferred
tax liability
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31,053 | 19,342 | ||||||
Total
Long-Term Liabilities
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196,837 | 254,472 | ||||||
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: $0.01 par value; authorized 50,000,000 shares; 17,350,000 issued
and outstanding
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173,500 | 173,500 | ||||||
Capital
in excess of par value
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1,767,512 | 1,769,382 | ||||||
Accumulated
other comprehensive income
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(478,863 | ) | 538,986 | |||||
Accumulated
income
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2,880,358 | 2,838,409 | ||||||
Noncontrolling
interest
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(1,412 | ) | 1,866 | |||||
Total
Stockholders’ Equity
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4,341,095 | 5,322,143 | ||||||
Total
Liabilities and Stockholders’ Equity
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$ | 6,517,435 | $ | 8,556,986 |
Three
Months Ended
March
31,
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Six
Months Ended
March
31,
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|||||||||||||||
2009
(unaudited)
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2008
(unaudited)
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2009
(unaudited)
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2008
(unaudited)
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Sales
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$ | 1,479,774 | 4,206,235 | $ | 3,325,278 | $ | 7,386,574 | |||||||||
Cost
of Sales
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764,780 | 1,762,635 | 1,914,213 | 3,563,501 | ||||||||||||
Gross
Profit
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714,994 | 2,443,600 | 1,411,065 | 3,823,073 | ||||||||||||
Operating
Expenses
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Selling,
general and administrative expenses
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647,745 | 785,594 | 1,325,011 | 1,552,175 | ||||||||||||
Income
(Loss) From Operations
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67,249 | 1,658,006 | 86,054 | 2,270,898 | ||||||||||||
Other
Income (Expense)
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Interest
income
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5,241 | 20,059 | 20,260 | 29,673 | ||||||||||||
Interest
expense
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(4,788 | ) | (4,144 | ) | (9,737 | ) | (8,849 | ) | ||||||||
Insurance
recovery
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8,001 | 12,438 | 14,094 | 23,275 | ||||||||||||
Other
income
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8,775 | 7,961 | 16,510 | 15,182 | ||||||||||||
Impairment
expense
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3,338 | (44,199 | ) | (8,017 | ) | (44,199 | ) | |||||||||
20,567 | (7,885 | ) | 33,110 | 15,082 | ||||||||||||
Income
(Loss) Before Income Tax Expense
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87,816 | 1,650,121 | 119,164 | 2,285,980 | ||||||||||||
Income
tax expense
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(49,051 | ) | (495,915 | ) | (80,028 | ) | (697,069 | ) | ||||||||
Net
Income (Loss)
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38,765 | 1,154,206 | 39,136 | 1,588,911 | ||||||||||||
Net
(income) loss attributable to noncontrolling interests
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235 | - | 2,813 | - | ||||||||||||
Net
Income (Loss) attributable to Stockholders
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$ | 39,000 | $ | 1,154,206 | $ | 41,949 | $ | 1,588,911 | ||||||||
Basic
Income (Loss) and Diluted Income (Loss) per Common Share
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$ | 0.002 | $ | 0.067 | $ | 0.002 | $ | 0.092 | ||||||||
Weighted
Average Common Shares Outstanding
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17,350,000 | 17,350,000 | 17,350,000 | 17,350,000 | ||||||||||||
Comprehensive
Income (Loss)
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Net
Income (Loss)
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$ | 39,000 | $ | 1,154,206 | $ | 41,949 | $ | 1,588,911 | ||||||||
Other
Comprehensive Income (Loss)
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Foreign
currency translation adjustment
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(54,383 | ) | 237,688 | (1,017,849 | ) | 174,168 | ||||||||||
Comprehensive
Income (Loss)
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$ | (15,383 | ) | $ | 1,391,894 | $ | (975,900 | ) | $ | 1,763,079 |
Six
Months Ended
March
31,
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||||||||
2009
(unaudited)
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2008
(unaudited)
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Cash
Flows From Operating Activities
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Net
income (loss)
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$ | 41,949 | $ | 1,588,911 | ||||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
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Depreciation
and amortization
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81,799 | 89,031 | ||||||
Dividends
reinvested directly to investments
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(2,476 | ) | - | |||||
Write
down of investments for Impairment
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8,017 | 44,199 | ||||||
Loss
attributable to noncontrolling interests
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(2,813 | ) | - | |||||
Increase
(decrease) in cash and cash equivalents attributable to changes in
operating assets and liabilities:
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Accounts
receivable
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960,797 | (728,517 | ) | |||||
Inventories
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(507,227 | ) | (189,682 | ) | ||||
Prepaid
expenses and other current assets
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15,743 | 107,289 | ||||||
Accrued
officers’ salaries
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(3,253 | ) | (160,820 | ) | ||||
Accounts
payable and other current liabilities
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196,712 | 60,094 | ||||||
Income
taxes payable
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(420,721 | ) | 171,792 | |||||
Net
Cash Provided by Operating Activities
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368,527 | 982,297 | ||||||
Cash
Flows From Investing Activities
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Purchase
of property and equipment
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(121,216 | ) | (72,380 | ) | ||||
Investment
in joint venture
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(18,524 | ) | - | |||||
Purchase
of listed financial assets
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- | (250,424 | ) | |||||
Net
Cash Provided by (Used in) Investing Activities
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(139,740 | ) | (322,804 | ) | ||||
Cash
Flows From Financing Activities
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Proceeds
from borrowings
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255 | - | ||||||
Repayments
on notes and loans payable
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(30,315 | ) | (232,246 | ) | ||||
Net
Cash Used in Financing Activities
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(30,060 | ) | (232,246 | ) | ||||
Effect
of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
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(111,818 | ) | 23,758 | |||||
Net
Increase (Decrease) in Cash and Cash Equivalents
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86,909 | 451,005 | ||||||
Cash
and Cash Equivalents at Beginning of Period
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664,054 | 484,295 | ||||||
Cash
and Cash Equivalents at End of Period
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$ | 750,963 | $ | 935,300 | ||||
Supplemental
disclosure of cash flow information, cash paid for
interest
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$ | 9,737 | $ | 8,849 |
Mar
31, 2009
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Sept
30, 2008
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Raw
materials
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$ | 1,744,243 | $ | 1,564,030 | ||||
Work
in progress
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68,191 | 35,573 | ||||||
Finished
goods
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667,042 | 765,446 | ||||||
$ | 2,479,476 | $ | 2,365,049 |
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For
the Three and Six Months Ended March 31, 2009 Compared with the Three and
Six Months Ended March 31, 2008
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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
11, 2009
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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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