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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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For
the transition period from ____________ to
____________
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Commission
file number 0-32875
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ALLOY
STEEL INTERNATIONAL, INC.
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(Exact
name of registrant as specified in its
charter)
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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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Item
1.
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Financial
Statements
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December 31,
2009
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September 30,
2009
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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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$ | 2,721,387 | $ | 424,090 | ||||
Accounts
receivable, less allowance for doubtful accounts of $nil at December 31,
2009 and September 30, 2009
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1,709,404 | 3,104,393 | ||||||
Inventories
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3,048,500 | 2,247,759 | ||||||
Prepaid
expenses and other current assets
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98,689 | 82,948 | ||||||
Total
Current Assets
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7,577,980 | 5,859,190 | ||||||
Property
and Equipment, net
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3,706,479 | 3,350,600 | ||||||
Other
Assets
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||||||||
Investments
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234,850 | 222,702 | ||||||
Other
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17,863 | 17,863 | ||||||
Total
Other Assets
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252,713 | 240,565 | ||||||
Total
Assets
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$ | 11,537,172 | $ | 9,450,355 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
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Current
Liabilities
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Notes
payable, current portion
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$ | 136,938 | $ | 93,868 | ||||
Accrued
officers’ salaries
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3,798 | 11,745 | ||||||
Royalties
payable, related party
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1,036,839 | 936,829 | ||||||
Current
tax payable
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718,880 | - | ||||||
Accounts
payable and other current liabilities
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1,848,852 | 2,338,297 | ||||||
Total
Current Liabilities
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3,745,307 | 3,380,739 | ||||||
Long-Term
Liabilities
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||||||||
Notes
payable, less current portion
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302,498 | 145,843 | ||||||
Notes
payable, officers, current portion
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225 | 255 | ||||||
Employee
entitlement provisions
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13,230 | 11,916 | ||||||
Deferred
Tax Liabilities
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12,420 | 212,338 | ||||||
Total
Long-Term Liabilities
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328,403 | 370,352 | ||||||
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: $0.01 par value; authorized 50,000,000 shares;
17,350,000 issued and outstanding
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173,500 | 173,500 | ||||||
Capital
in excess of par value
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1,767,512 | 1,767,512 | ||||||
Accumulated
other comprehensive income
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4,419,790 | 2,830,721 | ||||||
Accumulated
income
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1,108,805 | 931,743 | ||||||
Non
controlling interest
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(6,145 | ) | (4,212 | ) | ||||
Total
Stockholders’ Equity
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7,463,462 | 5,699,264 | ||||||
Total
Liabilities and Stockholders’ Equity
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$ | 11,537,172 | $ | 9,450,355 |
Three
Months Ended
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December 31,
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||||||||
2009
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2008
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(unaudited)
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(unaudited)
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Sales
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$ | 5,842,028 | $ | 1,845,504 | ||||
Cost
of Sales
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2,488,865 | 1,149,433 | ||||||
Gross
Profit
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3,353,163 | 696,701 | ||||||
Operating
Expenses
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Selling,
general and administrative expenses
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1,126,539 | 677,265 | ||||||
Income
(Loss) From Operations
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2,226,624 | 18,806 | ||||||
Other
Income (Expense)
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Interest
income
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3,721 | 15,019 | ||||||
Interest
expense
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(10,266 | ) | (4,949 | ) | ||||
Insurance
recovery
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7,336 | 6,093 | ||||||
Impairment
expense
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(3,684 | ) | (11,355 | ) | ||||
Other
income
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13,551 | 7,735 | ||||||
10,658 | 12,543 | |||||||
Income
(Loss) Before Income Tax Expense (Benefit)
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2,246,097 | 31,349 | ||||||
Income
tax expense (benefit)
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740,074 | 30,977 | ||||||
Net
Income (Loss)
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1,506,023 | 372 | ||||||
Net
(income) loss attributable to non-controlling interests
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1,929 | 2,578 | ||||||
Net
Income (Loss) attributable to Stockholders
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$ | 1,507,952 | $ | 2,950 | ||||
Basic
Income (Loss) and Diluted Income (Loss) per Common Share
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$ | 0.087 | $ | 0.000 | ||||
Weighted
Average Common Shares Outstanding
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17,350,000 | 17,350,000 | ||||||
Comprehensive
Income (Loss)
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Net
Income (Loss)
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$ | 1,507,952 | $ | 2,950 | ||||
Other
Comprehensive Income (Loss)
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Foreign
currency translation adjustment
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139,566 | (963,467 | ) | |||||
Comprehensive
Income (Loss)
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$ | 1,647,518 | $ | (960,517 | ) |
Three
Months Ended
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December 31,
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2009
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2008
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(unaudited)
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(unaudited)
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Cash
Flows From Operating Activities
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Net
income (loss)
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$ | 1,507,952 | $ | 2,950 | ||||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
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Depreciation
and amortization
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70,157 | 40,904 | ||||||
Dividends
reinvested directly to investments
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(3,419 | ) | (1,499 | ) | ||||
Reversal
of write down of investment assets
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(3,684 | ) | 11,355 | |||||
Profit
on disposal of fixed assets
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(1,447 | ) | - | |||||
Loss
attributable to non-controlling interests
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(1,929 | ) | (2,578 | ) | ||||
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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1,673,274 | 526,405 | ||||||
Inventories
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(654,276 | ) | (428,238 | ) | ||||
Prepaid
expenses and other current assets
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(29,346 | ) | (6,958 | ) | ||||
Accrued
officers’ salaries
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(7,496 | ) | (3,253 | ) | ||||
Accounts
payable and other current liabilities
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(449,01 | ) | 84,852 | |||||
Income
taxes payable
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538,127 | (166,166 | ) | |||||
Net
Cash Provided by Operating Activities
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2,638,903 | 57,774 | ||||||
Cash
Flows From Investing Activities
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Purchase
of property and equipment
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(352,272 | ) | (81,551 | ) | ||||
Investment
in joint venture
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- | (18,524 | ) | |||||
Purchase
of listed financial assets
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(11 | ) | - | |||||
Net
Cash Provided by (Used in) Investing Activities
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352,283 | (100,075 | ) | |||||
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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205,893 | (15,060 | ) | |||||
Net
Cash Used in Financing Activities
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205,893 | (14,805 | ) | |||||
Effect
of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
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(195,216 | ) | (106,961 | ) | ||||
Net
Increase (Decrease) in Cash and Cash Equivalents
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2,297,297 | (164,067 | ) | |||||
Cash
and Cash Equivalents at Beginning of Period
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424,090 | 664,054 | ||||||
Cash
and Cash Equivalents at End of Period
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$ | 2,721,387 | $ | 499,987 | ||||
Supplemental
disclosure of cash flow information, cash paid for
interest
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$ | 10,266 | $ | 4,949 | ||||
Supplemental
disclosure of non cash information, equipment acquired under note
payable
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$ | 206,915 | $ | - |
Dec 31, 2009
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Sept 30
, 2009
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(unaudited)
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Raw
materials
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$ | 1,150,115 | $ | 642,461 | ||||
Work
in progress
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181,833 | 124,343 | ||||||
Finished
goods
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1,716,552 | 1,480,955 | ||||||
$ | 3,048,500 | $ | 2,247,759 |
Item
2.
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Management’s
Discussion and Analysis
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Item
3.
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Quantitative and
Qualitative Disclosures About Market
Risk
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Item
4.
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Controls and
Procedures
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Item
6.
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Exhibits
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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: February
11, 2010
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ALLOY STEEL INTNERATIONAL, INC. | |||
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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