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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2003
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
For the transition period from ______ to ______
Commission File Number 000-29211
DAC Technologies Group International, Inc.
(Name of Small Business Issuer in its charter)
Florida 65-0847852
------------------------------- ------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1601 Westpark Drive #4C Little Rock, AR 72204
(Address of principal executive offices) (Zip Code)
(501) 661-9100
(Issuer's telephone number)
Check whether the Issuer (1) has filed all reports required to be filed
by the 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.
(1) Yes [X] No [ ] (2) Yes [X] No [ ]
State the number of shares outstanding of each of the issuer's class of
common equity, as of the latest practicable date. As of November 9, 2003,
5,713,056 shares of Common Stock are issued and outstanding.
Transitional Small Business Disclosure Format: Yes [ ] No [X]
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TABLE OF CONTENTS
PART I.................................................................. 3
ITEM 1. FINANCIAL STATEMENTS........................................... 3
PART F/S................................................................ 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION
Background............................................ 11
Financial Condition and Results of Operations......... 12
Liquidity and Capital Resources....................... 14
Trends................................................ 14
PART II ................................................................ 15
ITEM 1. LEGAL PROCEEDINGS ............................................. 15
ITEM 2. CHANGES IN SECURITIES ......................................... 16
ITEM 3. DEFAULTS UPON SENIOR SECURITIES ............................... 16
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS ........... 16
ITEM 5. OTHER INFORMATION ............................................. 16
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K .............................. 16
SIGNATURES ............................................................. 17
2
PART I
ITEM 1. FINANCIAL STATEMENTS
Our financial statements are contained in pages 4 through 9 following.
3
DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
Balance Sheet (Consolidated)
September 30, 2003
Unaudited
Assets
Current assets
Cash $ 25,914
Accounts receivable 1,068,781
Inventories 1,134,643
Note receivable 44,317
Advances to related parties 97,075
Prepaid expenses 54,231
Current deferred income tax benefit 8,850
-----------
Total current assets 2,433,811
-----------
Property and equipment
Furniture and fixtures 123,733
Molds, dies, and artwork 467,180
-----------
590,913
Accumulated depreciation (364,022)
-----------
Net property and equipment 226,891
-----------
Other assets
Patents and trademarks, net of
accumulated amortization of $38,897 172,351
Deferred income tax benefit 145,692
-----------
Total other assets 318,043
-----------
Total assets $ 2,978,745
===========
4
DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
Balance Sheet (Consolidated)
September 30, 2003
Unaudited
Liabilities and Stockholders' equity
Current liabilities
Due to factor $ 699,490
Notes payable 352,798
Notes payable - stockholders 171,635
Accounts payable-trade 915,324
Accrued payroll tax withholdings 91,767
Accrued expenses-other 18,725
-----------
Total current liabilities 2,249,739
-----------
Stockholders' equity
Common stock, $.001 par value; authorized
50,000,000 shares; issued and outstanding
5,713.056 shares 5,843
Treasury stock receivable, 130,000 shares (101,400)
Preferred stock, $.001 par value; authorized
10,000,000 shares; none issued and outstanding --
Additional paid-in capital 1,249,065
Retained earnings (deficit) (424,502)
-----------
Total stockholders' equity 729,006
-----------
Total liabilities and stockholders' equity $ 2,978,745
===========
5
DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
Statements of Operations (Consolidated)
For the Nine Months Ended September 30, 2003 and 2002
Unaudited
Sept. 30, Sept. 30,
2003 2002
----------- -----------
Net sales $ 2,793,927 $ 1,739,530
Cost of sales 1,664,880 921,803
----------- -----------
Gross profit 1,129,047 817,727
----------- -----------
Operating expenses
Selling 366,848 297,238
General and administrative 531,667 502,395
----------- -----------
Total operating expenses 898,515 799,633
----------- -----------
Income from operations 230,532 18,094
----------- -----------
Other income (expense)
Other income 76,610 46,713
Interest expense (95,453) (75,758)
----------- -----------
Total other income (expense) (18,843) (29,045)
----------- -----------
Income (loss) before income tax expense 211,689 (10,951)
Provision for income taxes 82,522 --
----------- -----------
Net income (loss) $ 129,167 $ (10,951)
=========== ===========
Numerator - net income (loss) $ 129,167 $ (10,951)
Denominator - weighted average number of shares outstanding 5,791,005 5,753,597
----------- -----------
Basic earnings (loss) per share $ 0.02 $ (0.00)
=========== ===========
6
DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
Statements of Operations (Consolidated)
For the Three Months Ended September 30, 2003 and 2002
Unaudited
Sept. 30, Sept. 30,
2003 2002
----------- -----------
Net sales $ 1,107,385 $ 621,670
Cost of sales 657,248 353,129
----------- -----------
Gross profit 450,137 268,541
----------- -----------
Operating expenses
Selling 169,968 83,204
General and administrative 181,317 173,923
----------- -----------
Total operating expenses 351,285 257,127
----------- -----------
Income from operations 98,852 11,414
----------- -----------
Other income (expense)
Other income 75,133 46,713
Interest expense (33,178) (35,185)
----------- -----------
Total other income (expense) 41,955 11,528
----------- -----------
Income (loss) before income tax expense 140,807 22,942
Provision for income taxes 58,356 --
----------- -----------
Net income (loss) $ 82,451 $ 22,942
=========== ===========
Numerator - net income (loss) $ 82,451 $ 22,942
Denominator - weighted average number of shares outstanding 5,773,817 5,763,956
----------- -----------
Basic earnings (loss) per share $ 0.01 $ 0.00
=========== ===========
7
DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
Statements of Cash Flows (Consolidated)
For the Nine Months Ended September 30, 2003 and 2002
Unaudited
Sept. 30, Sept. 30,
2003 2002
-------- --------
Cash flows from operating activities
Net income (loss) 129,167 (10,951)
Adjustments to reconcile net income to
net cash provided (used in) operating activities:
Issuance of common stock for services 12,873 32,866
Depreciation and amortization 53,386 54,628
Deferred income tax provision 82,522 --
Changes in operating assets and liabilities
Accounts receivable (76,676) (231,090)
Inventories (537,876) (138,344)
Note receivable (1,985) (41,713)
Advances to employees 11,046 (4,642)
Prepaid expenses 28,470 (32,438)
Accounts payable - trade 643,156 150,207
Accrued payroll tax withholdings (39,744) (37,025)
Accrued expenses other 465 (31,096)
-------- --------
Net cash provided by (used in) operating activities 175,637 (278,647)
-------- --------
Cash flows from investing activities
Purchases of property and equipment (13,710) (17,423)
Purchases of patents and trademarks (60,000) (2,750)
-------- --------
Net cash used in investing activities (73,710) (20,173)
-------- --------
Cash flows from financing activities
Increase (decrease) in due to factor (35,545) 167,482
Net change in notes payable (60,748) (48,685)
Net change in notes payable-stockholders (20,865) 75,000
Proceeds from treasury stock (101,400) --
Proceeds from issuance of common stock -- 40,000
Payments on stock subscriptions receivable -- 25,000
-------- --------
Net cash provided by (used in) financing activities (218,558) 258,797
-------- --------
Increase (decrease) in cash 12,536 (50,974)
Cash - beginning of period 13,378 72,633
-------- --------
Cash - end of period 25,914 21,659
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8
DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
Statements of Cash Flows (Consolidated)
For the Three Months Ended September 30, 2003 and 2002
Unaudited
Sept. 30, Sept. 30,
2003 2002
-------- --------
Cash flows from operating activities
Net income (loss) 82,451 22,942
Adjustments to reconcile net income to
net cash provided (used in) operating activities:
Issuance of common stock for services -- 32,866
Depreciation and amortization 14,501 18,800
Deferred income tax provision 58,356 --
Changes in operating assets and liabilities
Accounts receivable (211,577) (64,702)
Inventories (535,312) (79,703)
Note receivable (682) (41,713)
Advances to employees 3,016 (850)
Prepaid expenses 32,055 (16,155)
Accounts payable - trade 685,455 50,257
Accrued payroll tax withholdings (18,410) (15,583)
Accrued expenses other 4,476 2,673
-------- --------
Net cash provided by (used in) operating activities 31,878 (114,110)
-------- --------
Cash flows from investing activities
Purchases of property and equipment (6,074) (1,279)
Purchases of patents and trademarks (60,000) --
-------- --------
Net cash used in investing activities (66,074) (1,279)
-------- --------
Cash flows from financing activities
Increase (decrease) in due to factor 106,097 124,287
Net change in notes payable (17,128) (20,842)
Net change in notes payable-stockholders (13,640) --
Proceeds from treasury stock (101,400) --
-------- --------
Net cash provided by (used in) financing activities (26,071) 103,445
-------- --------
Increase in cash 22,184 10,998
Cash - beginning of period 3,730 10,661
-------- --------
Cash - end of period 25,914 21,659
======== ========
9
PART F/S
DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
SELECTED NOTES TO FINANCIAL STATEMENTS
o Nature of Business
DAC Technologies Group International, Inc. (the "Company"), a
Florida corporation, is in the business of developing, manufacturing and
marketing various consumer products, patented and non-patented, which are
designed to provide security for the consumer and their property. In addition,
the Company has developed a wide range of security and non_security products for
the home, automobile and individual. The majority of the Company's products are
manufactured and imported from mainland China and are shipped to the Company's
central warehouse facility in Little Rock, Arkansas. These products, along with
other items manufactured in the United States, are sold primarily to mass
merchants and sporting goods retailers throughout the United States and
international locations.
o Organization and Summary of Significant Accounting Policies
Organization and basis of presentation - The Company was
incorporated as a Florida corporation in July 1998 under the name DAC
Technologies of America, Inc. In July 1999, the Company changed its name to DAC
Technologies Group International, Inc.
Unaudited interim financial statements - The accompanying
financial statements of the Company for the nine months ended September 30, 2003
and 2002 and for the three months ended September 30, 2003 and 2002 are
unaudited, but, in the opinion of management, reflect the adjustments, all of
which are of a normal recurring nature, necessary for a fair presentation of
such financial statements in accordance with accounting principles generally
accepted in the United States. The significant accounting policies applied to
these interim financial statements are consistent with those applied to the
Company's December 31, 2002 audited financial statements included in the
Company's Form 10KSB. The results of operations for an interim period are not
necessarily indicative of the results for a full year.
o Equity Transactions
On August 13, 2003, the Company was awarded 165,000 shares of
its previously issued common stock as part of the damages awarded the Company in
its lawsuit against its former manufacturer. As of September 30, 2003, these
shares had not been transferred to the Company by the transfer agent. During the
fourth quarter of 2003, the Company expects 130,000 of these shares to be
returned to the Company as treasury shares and 35,000 to be issued as payment
for legal expenses connected with the lawsuit.
10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION
The following Management Discussion and Analysis of Financial Condition is
qualified by reference to and should be read in conjunction with our Financial
Statements and the Notes thereto as set forth at the end of this document. We
include the following cautionary statement in this Form 10QSB for any
forward-looking statements made by, or on behalf of, the Company.
Forward-looking statements include statements concerning plans, objectives,
goals, strategies, expectations, future events or performances and underlying
assumptions and other statements which are other than statements of historical
facts. Certain statements contained herein are forward-looking statements and,
accordingly, involve risks and uncertainties which could cause actual results or
outcomes to differ materially from those expressed in the forward-looking
statements. The Company's expectations, beliefs and projections are expressed in
good faith and are believed by the Company to have a reasonable basis, including
without limitations, management's examination of historical operating trends,
data contained in the Company's records and other data available from third
parties, but there can be no assurance that management's expectations, beliefs
or projections will result or be achieved or accomplished.
(a) Summary
The third quarter saw the Company continue its significant sales and profits
growth. Net sales for the third quarter were $1,107,385, the second million
dollar quarter in the past twelve months, and a 78% increase over the third
quarter of 2002. This performance was followed up with the first million dollar
sales month in October 2003.
Net sales for the first nine months of 2003 total $2,793,927, which
exceeded the sales of $2,756,193 for the entire year in 2002. Management
projects sales for 2003 to reach $4,400,000, a 60% increase over the previous
year.
The success enjoyed in the third quarter is directly related to sales
of the Company's new line of "Gunmaster" gun cleaning kits. First introduced in
the second quarter of 2003, sales of these gun cleaning kits has exceeded the
Company's expectations. Because of the strong response to the four kits
currently being offered, the Company has developed over 30 new kits and
accessory items, scheduled to be available by the end of this fiscal year or in
the first quarter of 2004.
In August 2003, in the Circuit Court of Pulaski County, Arkansas, the
Company was awarded damages in a suit against its former manufacturer in the
amount of $1,650,560, which included the return of 165,000 shares of the
Company's common stock previously issued to the former manufacturer. The
expected return of these shares to the Company is reflected in the Company's
third quarter financial statements. The Company intends to pursue the
collection of this monetary award.
11
Details
We are in the business of developing, marketing and outsourcing the
manufacture of various consumer products, patented and non-patented, designed to
enhance and provide security for the consumer and for his property. We have
placed particular emphasis on large original equipment ("OEM") gun
manufacturers, gun cleaning kits and gun accessories. In particular, our
products consist of gun locks, trigger locks, gun cleaning and accessory items,
security safes, specialty safes, personal protection devices and items for the
health care industry.
A significant portion of our business is with mass market retailers
such as Wal Mart, Walgreens and Kmart, as well as OEM gun manufacturers. With
the addition of our "Gunmaster" gun cleaning kits, we have increased our
business with sporting goods retailers and distributors.
The Company's business plan and strategy for growth continues to focus on:
o increased penetration of our existing market
o aggressive targeting and penetration of other
markets, i.e. sporting goods retailers
o diversification of products and services to provide a
base for continued growth
o adoption of new product lines
o identification and recruitment of effective
manufacturer's representatives to actively market
these products on a national and international basis
o aggressive cost containment
The principal key to increasing the rate of the Company's growth is the
availability of capital to maintain additional inventory, develop or acquire new
products and secure motivated professional employees.
Management believes that continued growth will require the Company to
continually innovate and improve its existing line of products and services to
meet consumer, industry and governmental demands. In addition, we must continue
to develop or acquire new and unique products that will appeal to gun owners.
All of our products are available via e-commerce on our website at
www.dactec.com.
(b) Financial Condition and Results of Operations
Nine Months Ended September 30, 2003
For the nine months ended September 30, 2003, the Company recorded net
income of $129,167 on net sales of $2,793,927, as compared to a net loss of
$10,951 on net sales of $1,739,530 for the same period in 2002.
The increase in net income of $140,118 (and increase in net income
before income taxes
12
of $222,640) was mainly due to the increase in sales. The increase in net sales
of $1,054,397 represents a 61% increase over the same nine month period of 2002.
The Company's line of Gunmaster gun cleaning kits, a new product line rolled out
in the second quarter of 2003, accounted for 60% of the increase. Sales of the
Company's gun locks, primarily to OEM gun manufacturers, accounted for 34% of
the increase.
Gross profit for the nine months ended September 30, 2003 was
$1,129,047 as compared to $817,727 for the prior year, an increase of $311,320,
or 38%. Gross margin percentages decreased from 47% in 2002 to 40% in 2003. The
decrease in gross margin percentages is directly related to the increase in
sales of gun locks to OEM gun manufacturers. This is a highly competitive
market, and gross margins are significantly lower than for sales of other
Company products to the Company's mass merchant and distributor customers.
Operating expenses for the nine months ended September 30, 2003 were
$898,515 as compared to $799,633 for the prior year. This is an increase of
$98,882, or 12% due to our expanding sales efforts.
Income from operations increased from $18,094 in 2002 to $230,532 in
2003, an increase of 117%.
Interest expense for the nine months ended September 30, 2003 was
$95,453 as compared to $75,758 for the prior year. This is an increase of
$19,695 or 26%. The Company finances its cash flow needs through a factoring
agreement, wherein it borrows against its accounts receivable. Because of the
record sales in the fourth quarter of 2002, and higher inventory levels, the
Company's borrowing under this factoring agreement during the first nine months
of 2003 were significantly higher than in the previous year.
Due to the fact that the Company has been profitable for six
consecutive quarters, the Company's overall financial condition has improved
significantly since December 31, 2002. At September 30, 2003, the Company had
net working capital of $184,072 as compared to net working capital of $81,233 at
December 31, 2002. This is an increase of $102,539. In addition, the Company's
total assets have increased from $2,451,386 to $2,978,745, and stockholders'
equity has increased from $688,365 to $729,006. Earnings per share for the first
nine months of 2003 were 2.2 cents per share, as compared to 0.2 cents per share
for the entire year of 2002.
Three Months Ended September 30, 2003
For the three months ended September 30, 2003, the Company had net
income of $82,451 on net sales of $1,107,385 as compared to net income of
$22,942 on net sales of $621,670 for the three months ended September 30, 2002.
The increase in net sales of $485,715 represents a 78% increase over
the third quarter of 2002. This increase is due to sales of the Company's new
Gunmaster gun cleaning kits, introduced in the second quarter of 2003.
Net income for the third quarter of 2003 increased $59,509, or 259%
over the third quarter
13
of 2002. Net income before income taxes increased 514%, from $22,942 to
$140,807. Because the Company had a cumulative loss for the first three quarters
of 2002, there was no income tax expensed for the third quarter of 2002. The
Company currently has approximately $334,000 in net operating loss carry
forwards available for federal and state income tax purposes.
Gross profit for the three months ended September 30, 2003 was $450,137
as compared to $268,541 for the three months ended September 30, 2002. This
increase was due to the increase in sales, offset by the decrease in gross
margins from 43% to 41%. The gross margin decrease, as discussed above, was due
to the increase in sales of gun locks to OEM gun manufacturers, where gross
margins are significantly lower than for other products sold by the Company.
Operating expenses for the third quarter of 2003 were $351,285 as
compared to $257,127 for the previous year. This is an increase of $94,158, or
37%. Of this increase, the two most significant categories were sales
commissions which accounted for 64% and consulting fees related to financial
public relations services which accounted for 20%.
Interest expense decreased $2,007 over the third quarter of 2002.
(c) Liquidity and Capital Resources
Our primary source of cash is funds from our operations. We believe
that external sources of liquidity could be obtained in the form of bank loans,
letters of credit, etc. We maintain an account receivable factoring arrangement
in order to insure an immediate cash flow. The factor may also, at its
discretion, advance funds prior to the collection of our accounts. Advances are
payable to the factor on demand. Should our sales revenues significantly
decline, it could affect our short_term liquidity. For the period ending
September 30, 2003, we owed our factor approximately $699,490. For the
comparable period ending September 30, 2002, we owed our factor approximately
$444,594. The increase is due to increased sales and marketing particularly as
related to the gun cleaning kits.
(d) Trends
Even with the election of a new President and the change in the
Administration, handgun safety remains a major concern, and interest may
continue to increase in the next few years, particularly in light of the
continued accidental and intentional shootings involving children. The focus is
expected to become more of gun safety rather than on of attempts to ban guns.
Gun safety issues are expected to be moved from the Federal level to the state
level, while those at the federal level are seemingly becoming more rational
with the approach being taken by the Consumer Products Safety Commission to set
measurable standards of performance for gun locking devices. The Company, with
developed products that address preventive handgun safety, anticipates that it
will be in a position to benefit from this trend-although this, of course,
cannot be guaranteed. We believe that the continued focus on handgun safety, the
use of gun locks by law enforcement agencies, the litigation aimed at gun
manufacturers and corresponding about-face regarding gun safety locks begun by
Smith & Wesson, as well as the gun legislation will hopefully enhance our
product line revenues.
14
Moreover, the tragic terrorist attack against the United States on September 11,
2001, caused many Americans to become concerned about their personal security.
As a result, many people are purchasing firearms to maintain for home defense
purposes. While they are purchasing handguns, many are also concerned with the
safe storage of the firearm in the home and want to purchase affordable gun
safes to increase security. As a result, we have seen an increase in sales of
safes and gunlocks.
The State of Maryland has passed legislation to require gun manufacturers to
incorporate safety devices similar to the Company's products into all handguns
sold. The State of California enacted legislation to establish performance
standards for "firearm Safety devices," "lock-boxes," and "safes". These
standards permit an attack on the gun lock or safe with hand tools, such as
hammers, screwdrivers, electric drills, screw and hack saws. This legislation
requires manufacturers to have their products tested by an independent testing
laboratory in order to be listed as an approved device. This testing has
resulted in significant expenditures to the Company. We anticipate that similar
standards will be adopted throughout the United States in the next few years.
PART II
ITEM 1. LEGAL PROCEEDINGS
In August 2000, we commenced suit against our former manufacturer Skit
International, Ltd. and Uni_Skit Technologies, Inc. alleging breach of a
manufacturing contract which required defendants to manufacture certain of our
products within the range of "competitive pricing," a defined term. We sought
damages and recission of 165,000 shares of our common stock as part of the
compensation paid to the defendants. The defendants denied the allegations and
counterclaimed for an outstanding balance of $182,625, for recission of the
manufacturing agreement and for damage to its business reputation.
In August of 2003, this suit went to trial before a twelve member jury
in the Circuit Court of Pulaski County, Arkansas. The jury awarded the Company
damages in the amount of $1,650,560, which includes the value of the returned
165,000 shares of stock previously issued to the defendants. In addition, all
counterclaims of the defendants were dismissed.
On October 23, 2003, the Company initiated suit, seeking unspecified
damages, in the Circuit Court of Pulaski County, Arkansas against former
manufacturers, Uni-Tat International, Inc., Uni-Champion Ltd., and their
respective principals, Victor Lee and Arthur Yung, for common law fraud (as to
Uni-Tat, Yung and Lee), breach of contract, and violation of the Deceptive Trade
Practice Act, and for vicarious liability.
We instituted suit along with The Collins Family Trust, our affiliate
in which David Collins, our Chairman claims a beneficial interest, and DAC
Technologies of America, Inc., our
15
predecessor, against Larry Legel, a former Director and the Trustee of The
Collins Family Trust. The suit, commenced in March, 2001 alleged a transfer of
180,000 shares of our common stock for services which the Defendant did not
provide. The suit also alleges that the Defendant breached an agreement not to
sell his shares before certain private investors had recouped their investment.
In October 2002, the Arkansas Court ordered the transfer rescinded and the stock
returned to David Collins. Mr. Legel has noticed the appeal of the Court's
October Order.
Subsequent to the Arkansas action, in August of 2001, Mr. Legel instituted an
action against the Company, alleging failure by the Company and its officers to
permit the sale of his shares of the Company, which were the same shares that
were the subject of the Arkansas action. A Motion to Dismiss was filed and
granted. In February 2003, Mr. Legel filed an amended complaint, alleging that
the Company failed to honor his request to sell the shares. The Company has
filed a motion to dismiss or abate the Amended Complaint due to the decision and
pendency of the Arkansas appeal. The Court granted the Company's Motion and has
stayed the Florida action.
ITEM 2. CHANGES IN SECURITIES
During the third quarter of 2003, the Company was awarded 165,000
shares of its previously issued common stock as part of the damages awarded the
Company in its lawsuit against its former manufacturer. The Company anticipates
these shares will transferred during the fourth quarter of 2003.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
The following documents are incorporated by reference from Registrant's
Form 10SB filed with the Securities and Exchange Commission (the "Commission"),
File No. 000-29211, on January 28, 2000:
EXHIBITS
3(i) Articles of Incorporation
3(ii) By-laws EXHIBITS
Exhibits and Reports on Form 8-K
(a) Exhibits required by Item 601 of Regulation S-B
31.1 Certification of David A. Collins Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
31.2 Certification of Robert C. Goodwin Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
32.1 Certification of David A. Collins Pursuant to 18 U.S.C. Section
1350, Section 906 of the Sarbanes-Oxley Act of 2002
32.2 Certification of Robert C. Goodwin Pursuant to 18 U.S.C. Section
1350, Section 906 of the Sarbanes-Oxley Act of 2002
16
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
hereunto duly authorized DAC Technologies Group International, Inc.
By: /s/ David A. Collins
-----------------------------------------------------
David A. Collins, Chairman and CEO, November 12, 2003
By:/s/ Robert C. Goodwin
-----------------------------------------
Robert C. Goodwin, CFO, November 12, 2003
17