<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                FORM 10-K/A No. 1

              [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF
               THE SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)

                     For the fiscal year ended July 31, 1996

                                       OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

Commission File Number:  0-13011

                               TNR TECHNICAL, INC.
              -----------------------------------------------------
             (Exact name of Registrant as specified in its charter)

            New York                                        11-2565202
-------------------------------                        ----------------------
(State of jurisdiction of                                (I.R.S. Employer
 incorporation or organization)                        Identification Number)

301 Central Park Drive
Sanford, Florida                                                     32771
----------------------------------------                            ----------
(Address of principal executive offices)                            (Zip Code)

Registrant's telephone number,
including area code:                                            (407) 321-3011
                                                                --------------
Securities registered pursuant to Section 12(b) of the Act:

                                      None
          -----------------------------------------------------------
          Securities registered pursuant to Section 12(g) of the Act:

                          Common Stock, $.02 Par Value
                      ------------------------------------
                                (Title of Class)

         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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. Yes X . No ___.

         Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K (ss.229.405 of this chapter) is not contained herein,
and will not be contained, to the best of Registrant's knowledge, in definitive
proxy or information statements incorporated by reference in part III of this
Form 10-K or any amendment to this Form 10-K [x].

         As of September 16, 1996, the number of shares held by non-affiliates
was approximately 155,000 shares. Due to the limited market for the Company's
Common Stock, no value has been attributed to the shares held by non-affiliates.

         The number of shares outstanding of the issuer's Common Stock, as of
September 16, 1996 was 262,437.


<PAGE>



Item 7.    Managements Discussion and Analysis of Financial Condition
           and Results of Operations.

Liquidity and Capital Resources

         Working capital amounted to $1,569,635 at July 31, 1996 as compared to
$1,456,548 at July 31, 1995 as compared to $1,272,929 at July 31, 1994. Cash and
short-term investments amounted to $774,570 at July 31, 1996 as compared to
$608,161 at July 31, 1995 as compared to $727,573 at July 31, 1994. As more
fully described in the "Statements of Cash Flows" included in the Company's
Financial Statements elsewhere herein, net cash provided by (used in) operating
activities for the fiscal years ended July 31, 1996, July 31, 1995 and July 31,
1994 were $242,858, ($83,021) and $51,533, respectively. During 1996, 1995 and
1994, the Company's net income contributed to cash flows from operating
activities. In 1996, cash flow from operating activities were increased
substantially by decreases in inventories partially offset by increases in
accounts receivable. In 1995 and 1994, cash flows from operating activities were
substantially reduced by increases in accounts receivable and inventories.
During 1996 net cash was provided by investing activities as a result of
reduction in short term investments partially offset by purchase of property and
equipment. During 1995 and 1994, net cash was used in investing activities to
increase short term investments and purchase property and equipment. During the
past three years, the Company did not have any external sources of financing.

         Management purchased larger than customary volumes of product during
the latter half of 1995 primarily to take advantage of certain price breaks
offered at the time and in anticipation of increased sales in fiscal 1996 over
fiscal 1995. In early 1996 as a result of strong, but not dramatically increased
sales, further purchases of inventory were substantially reduced which caused
inventory levels to decrease to more manageable and appropriate level given the
volume of sales experienced over the past three years.

         With respect to accounts payable, the balance of accounts payable was
decreased approximately $150,000 during the year ended July 31, 1996, as a
result of the availability of cash which was primarily caused by substantially
decreased levels of inventory purchases for the reasons discussed above.

         During the past three years, the Company's liquidity needs has been
satisfied from internal sources including cash from operations and amounts
available from the Company's working capital. During fiscal 1997, Management
expects this trend to continue. There are no material commitments for capital
expenditures or any long-term credit arrangements as of July 31, 1996.

Results of Operations

         Sales for 1996 increased by approximately $82,000 or 2% as compared to
fiscal 1995. Sales for fiscal 1995 increased by approximately $125,000 or 3% as
compared to fiscal 1994. The sales increases were due to increased demand for
the Company's

                                        2


<PAGE>



products from the Company's existing client base and from new customers. During
fiscal 1994, one customer accounted for 13% of the Company's revenues. The
Company's gross margin fluctuated slightly over the past three years primarily
due to changes in product mix.

         Operating (selling, general and administrative) expenses increased
during fiscal 1996 as compared to fiscal 1995 and for fiscal 1995 as compared to
fiscal 1994, substantially due to increases in administrative salaries and bad
debt expense. Operating expenses when expressed as a percentage of net sales was
22.7%, 21.5%, and 21.2%, for fiscal 1996, fiscal 1995 and fiscal 1994,
respectively.

         During the past three years, the Company did not charge its operations
with any research and development costs.

         Net income for fiscal 1996 was $135,398 as compared to $437,982, for
fiscal 1995 as compared to a net income for fiscal 1994 of $148,238. Net income
per share for fiscal 1996, fiscal 1995 and 1994 were $.52, $1.67 and $.56,
respectively. The substantial increase in net income for fiscal 1995 over fiscal
1994 was due to a $250,000 credit to income tax expense as a result of the
elimination of a valuation allowance with respect to existing deferred tax
assets as of July 31, 1995. See Note 6 to the financial statements included
elsewhere herein.

         Management of TNR Technical, Inc. has received a number of comments
from its odd lot stockholders regarding the costs associated with any sale of
their odd lots. Further, Management would like to reduce TNR's expense of
maintaining mailings to odd lot holders. Accordingly, TNR will from time-to-time
privately purchase from odd lot holders of its common stock, such odd lots (i.e.
99 shares or less) from its stockholders of record on December 15, 1995 so long
as such purchases would not have the effect of reducing TNR's record holders to
500 or less. The purchase price to be paid will be based upon the closing asked
price on the NASD electronic bulletin board of TNR's Common Stock for the
preceding trading day. Stockholders will not be permitted to breakup their
stockholdings into odd lots and stockholders or their legal representatives must
affirm to TNR that the odd lot shares submitted for payment represent the
stockholder's entire holdings and that such holdings do not exceed 99 shares.
(This offer shall be open to all odd lot beneficial holders even those held in
street or nominee name so long as the proper representations can be obtained
satisfactory to TNR that the shares are odd lot shares, were owned by the
beneficial stockholder as of December 15, 1995 and represent such stockholder's
entire holdings of TNR). This offer will not be valid in those states or
jurisdictions where such offer or sale would be unlawful.

Item 8.           Financial Statements and Supplementary Data.

         The information required by Item 8, and an index thereto, appears at
pages F-1 through F-12 (inclusive) of this Report, which pages follow Item 9.

                                        3



<PAGE>

                               TNR TECHNICAL, INC.

                          Index to Financial Statements


<TABLE>
<CAPTION>


<S>                                                                                 <C>
Independent Auditors' Report  --  July 31, 1996                                      F-1

Report of Independent Certified Public Accountant  -- July 31, 1995                  F-2

Financial Statements:

     Balance Sheets  --  July 31, 1996 and 1995                                      F-3

     Statements of Operations  --  Three years ended July 31, 1996                   F-4

     Statements of Stockholders' Equity  --  Three years ended July 31, 1996         F-5

     Statements of Cash Flows  --  Three years ended July 31, 1996                   F-6

Notes to Financial Statements                                                        F-7


</TABLE>




<PAGE>









                          Independent Auditors' Report


The Shareholders and Board of Directors
TNR Technical, Inc.:

We have audited the accompanying balance sheet of TNR Technical, Inc. as of July
31, 1996, and the related statements of operations, shareholders' equity and
cash flows for the year then ended. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of TNR Technical, Inc. as of July
31, 1996 and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting principles.


                                     /s/ James, Park, Tschopp & Whitcomb, P.A.
                                     -----------------------------------------




August 30, 1996
Maitland, Florida




                                     F-1




<PAGE>







                Report of Independent Certified Public Accountant


The financial statements of TNR Technical, Inc. as of July 31, 1995 and for the
two years then ended were audited by Burton R. Abrams, CPA, a sole practitioner
who died in November 1995. The Company's Form 10-K for the fiscal year ended
July 31, 1995 includes his report dated August 25, 1995 wherein Mr. Abrams
expressed an unqualified opinion on the financial statements of TNR Technical,
Inc. as of July 31, 1995 and for the two years then ended which he manually
executed. However, his report cannot be included herein without his consent, and
as a result of his death has not been included. Based upon the audit of the
financial statements of TNR Technical, Inc. as of July 31, 1996 and the year
then ended, the firm of James, Parks, Tschopp and Whitcomb, P.A. has indicated
that no matters have come to their attention which might have a material effect
on, or require disclosure in, the financial statements reported on previously by
Mr. Abrams.




                                     F-2




<PAGE>





                               TNR TECHNICAL, INC.

                                 Balance Sheets

                             July 31, 1996 and 1995

                                     Assets
<TABLE>
<CAPTION>

                                                                           1996             1995
                                                                           ----             ----

<S>                                                                     <C>                <C>    
Current assets:
    Cash and cash equivalents                                           $   426,320        100,298
    Short-term investments (note 2)                                         348,250        507,863
    Accounts receivable - trade, less allowance for doubtful accounts
     of $20,000 in 1996 and $18,000 in 1995                                 442,181        380,302
    Income taxes receivable                                                   1,685           --
    Inventories (note 3)                                                    440,586        715,438
    Prepaid expenses and other current assets                                 5,198          5,842
    Deferred income taxes (note 6)                                           13,000         15,000
                                                                        -----------    -----------
             Total current assets                                         1,677,220      1,724,743

Deferred income taxes (note 6)                                              197,000        235,000

Property and equipment, at cost, net of accumulated depreciation and
  amortization (note 4)                                                     109,796         56,877

Other assets:
    Deposits                                                                 13,383          5,991
                                                                        -----------    -----------
             Total assets                                               $ 1,997,399      2,022,611
                                                                        ===========    ===========

                      Liabilities and Shareholders' Equity

Current liabilities:
    Accounts payable                                                    $    61,077        220,038
    Accrued expenses                                                         46,508         42,657
    Income taxes payable                                                       --            5,500
                                                                        -----------    -----------
             Total current liabilities                                      107,585        268,195
                                                                        -----------    -----------

Shareholders' equity:
    Common stock - $.02 par value, authorized 500,000 shares; issued
     and outstanding 301,581 shares (note 5)                                  6,032          6,032
    Additional paid in capital                                            2,640,001      2,640,001
    Accumulated deficit                                                    (561,949)      (697,347)
                                                                        -----------    -----------
                                                                          2,084,084      1,948,686
Less cost of treasury stock - 39,159 shares                                 194,270        194,270
                                                                        -----------    -----------
             Total shareholders' equity                                   1,889,814      1,754,416
                                                                        -----------    -----------
Commitment (note 7)                                                     $ 1,997,399      2,022,611
                                                                        ===========    ===========
</TABLE>

See accompanying notes to financial statements.


                                      F-3
<PAGE>



                               TNR TECHNICAL, INC.

                            Statements of Operations

                    Years ended July 31, 1996, 1995 and 1994

<TABLE>
<CAPTION>

                                                       1996         1995          1994
                                                    ----------   ----------    ----------

<S>                                                <C>            <C>           <C>
Revenues:
     Net sales                                      $3,792,537    3,710,805     3,585,872
                                                    ----------   ----------    ----------

Costs and expenses:
     Cost of goods sold                              2,779,595    2,746,734     2,690,768
     Selling, general and administrative (note 9)      859,047      799,572       758,706
                                                    ----------   ----------    ----------
                                                     3,638,642    3,546,306     3,449,474
                                                    ----------   ----------    ----------
          Operating income                             153,895      164,499       136,398

Non-operating revenue (expense):
     Interest income                                    30,538       34,483        19,340
                                                    ----------   ----------    ----------
             Income before income taxes                184,433      198,982       155,738

Income tax expense (benefit) (note 6)                   49,035     (239,000)        7,500
                                                    ----------   ----------    ----------
          Net income                                $  135,398      437,982       148,238
                                                    ==========   ==========    ==========

Net income per share                                $      .52         1.67           .56
                                                    ==========   ==========    ==========

Weighted average number of shares                      262,422      262,422       262,422
                                                    ==========   ==========    ==========

</TABLE>








See accompanying notes to financial statements.

                                      F-4
<PAGE>

                               TNR TECHNICAL, INC.

                       Statements of Shareholders' Equity

                    Years ended July 31, 1996, 1995 and 1994

<TABLE>
<CAPTION>


                                                                      Additional
                                          Common Stock                  Paid-in          Accumulated        Treasury
                                     Shares          Amount             Capital             Deficit           Stock
                                     ------          ------           ----------         -----------        --------

<S>                                  <C>          <C>                 <C>               <C>                <C>      
Balance, July 31, 1993                301,581      $    6,032          2,640,001         (1,283,567)        (194,270)

Net income                               -              -                 -                 148,238            -
                                  -----------      ----------          ---------         ----------         --------

Balance, July 31, 1994                301,581           6,032          2,640,001         (1,135,329)        (194,270)

Net income                               -              -                 -                 437,982            -
                                  -----------      ----------          ---------         ----------         --------

Balance, July 31, 1995                301,581           6,032          2,640,001           (697,347)        (194,270)

Net income                               -              -                 -                 135,398            -
                                  -----------      ----------          ---------         ----------         --------

Balance, July 31, 1996                301,581      $    6,032          2,640,001           (561,949)        (194,270)
                                  ===========      ==========          =========         ==========         ========




</TABLE>




See accompanying notes to financial statements.




   
                                   F-5



<PAGE>

                               TNR TECHNICAL, INC.

                            Statements of Cash Flows

                    Years ended July 31, 1996, 1995 and 1994
<TABLE>
<CAPTION>

                                                                     1996           1995           1994
                                                                  -----------    -----------    -----------

<S>                                                                   <C>            <C>            <C>    
Cash flows from operating activities:
    Net income                                                        135,398        437,982        148,238
    Adjustments to reconcile net income to net cash provided
     by operations:
       Deferred income taxes                                           40,000       (250,000)          --
       Depreciation and amortization                                   23,530         17,028         14,730
       Gain on sale of transportation equipment                          --             --           (2,728)
       Provision for doubtful accounts                                 24,820          6,000         20,721
       Changes in operating assets and liabilities:
         Accounts receivable                                          (86,699)       (91,912)       (23,777)
         Inventories                                                  274,852       (270,260)      (118,170)
         Prepaid expenses and other assets                                644         15,727         (7,127)
         Accounts payable and accrued expenses                       (155,110)        52,414         19,646
         Deposits                                                      (7,392)          --             --
         Income taxes                                                  (7,185)          --             --
                                                                  -----------    -----------    -----------

            Net cash provided by (used in) operating activities       242,858        (83,021)        51,533
                                                                  -----------    -----------    -----------

Cash flows from investing activities :
    Purchases of short-term investments                            (1,047,304)      (758,442)      (218,769)
    Maturities of short-term investments                            1,206,917        624,348        175,000
    Purchase of property and equipment                                (76,449)       (36,391)       (16,531)
                                                                  -----------    -----------    -----------
            Net cash provided by (used in) investing activities        83,164       (170,485)       (60,300)
                                                                  -----------    -----------    -----------

Increase (decrease) in cash and cash equivalents                      326,022       (253,506)        (8,767)

Cash and cash equivalents - beginning of year                         100,298        353,804        362,571
                                                                  -----------    -----------    -----------
Cash and cash equivalents - end of year                           $   426,320        100,298        353,804
                                                                  ===========    ===========    ===========

Supplemental disclosures of cash flow information:
    Cash paid during the year for interest                        $      --             --              461
                                                                  ===========    ===========    ===========

    Cash paid during the year for income taxes                    $    10,860         13,000           --
                                                                  ===========    ===========    ===========
</TABLE>


See accompanying notes to financial statements.



                                      F-6

<PAGE>

                               TNR TECHNICAL, INC.

                          Notes to Financial Statements

                             July 31, 1996 and 1995


(1) Summary of Significant Accounting Policies

     (a) Nature of Operations

               TNR Technical, Inc. (TNR or the Company) designs, assembles and
               markets batteries and multi-cell battery packs to a wide
               variety of industrial markets. The Company is a distributor for
               a number of major U.S. battery manufacturers and markets its
               products nationally.

     (b) Inventories

               Inventories are stated at the lower of cost or market. Cost is
               determined by the first-in, first-out method.

     (c) Property and Equipment

               Property and equipment are recorded at cost. The Company
               provides depreciation for machinery and equipment using the
               straight-line method over the estimated useful lives of the
               respective assets which range from five to ten years.
               Amortization of leasehold improvements is computed using the
               straight-line method over the lesser of the lease term or
               estimated useful lives of the improvements.

     (d) Research and Development Costs

               Research and development costs are charged against income in
               the year incurred.

     (e) Revenue Recognition

               The Company recognizes revenue upon shipment of its product
               from its warehouse facilities.

     (f) Use of Estimates

               Management of the Company has made certain estimates and
               assumptions relating to the reporting of assets and liabilities
               and disclosure of contingent assets and liabilities to prepare
               these financial statements in conformity with generally
               accepted accounting principles. Actual results could differ
               from those estimates.


                                                                    (Continued)

                                      F-7
   




<PAGE>

                               TNR TECHNICAL, INC.

                          Notes to Financial Statements

                             July 31, 1996 and 1995

(1) Continued

     (g) Financial Instruments Fair Value, Concentration of Business
         and Credit Risks

               The carrying amount reported in the balance sheet for cash,
               short-term investments, accounts receivable, accounts payable
               and accrued expenses approximates fair value because of the
               immediate or short-term maturity of these financial
               instruments. Financial instruments which potentially subject
               the Company to concentrations of credit risk consist
               principally of trade accounts receivable which amount to
               approximately $450,000. The Company performs periodic credit
               evaluations of its trade customers and generally does not
               require collateral.

     (h)  Income Taxes

               Deferred tax assets and liabilities are recognized for the
               future tax consequences attributable to differences between the
               financial statement carrying amounts of existing assets and
               liabilities and their respective tax bases. Deferred tax assets
               and liabilities are measured using enacted tax rates expected
               to apply to taxable income in the years in which those
               temporary differences are expected to be recovered or settled.
               The effect on deferred tax assets and liabilities of a change
               in tax rates is recognized in income in the period that
               includes the enactment date.

     (i)  Cash Flows

               For purposes of cash flows, the Company considers all highly
               liquid investments with a maturity of three months or less to
               be cash equivalents.

     (j)  Earnings Per Common Share

               Earnings per common share has been computed based upon the
               weighted average number of common shares outstanding during the
               years presented.

     (k)  Reclassifications

               Certain amounts from 1995 and 1994 have been reclassified to
               conform with the 1996 presentation.



                                                                     (Continued)


                                      F-8

<PAGE>

                               TNR TECHNICAL, INC.

                          Notes to Financial Statements

                             July 31, 1996 and 1995

(2) Short-Term Investments

     Short-term investments in 1996 and 1995 consist of the following:
<TABLE>
<CAPTION>

        
                      Description                Face Value       Price           Maturity                Balance
                      -----------                ----------       -----           --------                -------
        1996:                                                                                   
        -----
        <S>                                       <C>             <C>  <C>         <C>   <C>             <C>        
        United States Treasury Bill               $   350,000     99-1/2           08-29-96              $   348,250
                                                                                                         ===========
        
        1995:
        -----
        United States Treasury Bill               $   100,000     99-5/8           08-24-95              $    99,625
        United States Treasury Bill                   100,000     99-1/2           08-31-95                   99,500
        United States Treasury Bill                    65,000     99-1/4           11-16-95                   63,862
        United States Treasury Bill                    75,000     99-1/8           11-30-95                   73,594
        United States Treasury Bill                   175,000     97-7/8           12-14-95                  171,282
                                                                                                         -----------
                                                                                                         $   507,863
                                                                                                         ===========

</TABLE>

(3) Inventories

     Inventories consist of the following:
<TABLE>
<CAPTION>

                                                                                     1996                    1995
                                                                                     ----                    ----
<S>                                                                             <C>                          <C>    
      Finished goods                                                            $    430,061                 706,430
      Work-in-process                                                                   -                       -
      Purchased parts and material                                                    10,525                   9,008
                                                                                ------------                 -------
                                                                                $    440,586                 715,438
                                                                                ============                 =======
</TABLE>

(4) Property and Equipment

     Property and equipment consists of the following:
<TABLE>
<CAPTION>

                                                                                     1996                   1995
                                                                                     ----                   ----

<S>                                                                             <C>                          <C>    
      Machinery and equipment                                                   $    164,450                 114,605
      Leasehold improvements                                                          23,467                   3,701
                                                                                ------------                 -------
                                                                                     187,917                 118,306

      Less:  Accumulated depreciation and amortization                                78,121                  61,429
                                                                                ------------                 -------
                                                                                $    109,796                  56,877
                                                                                ============                 =======
</TABLE>

                                                                     (Continued)
                                      F-9
<PAGE>

                               TNR TECHNICAL, INC.

                          Notes to Financial Statements

                             July 31, 1996 and 1995


(5) Stock Option Plan

     In November 1992, the Board of Directors approved an Incentive and
     Non-Qualified Stock Option Plan which was ratified by the stockholders in
     January 1993. The plan covers 60,000 shares of Common Stock, subject to
     adjustment of shares under the anti-dilution provisions of the Plan. The
     plan authorizes the issuance of the options covered thereby as either
     "Incentive Stock Options" within the meaning of the Internal Revenue Code
     of 1986, as amended, or as "Non-Statutory Stock Options." No options may
     be granted after November 16, 2002.

     Under the Plan, the aggregate fair market value (determined at the time
     the option is granted) of the optioned stock for which Incentive Stock
     Options are exercisable for the first time by any employee during any
     calendar year shall not exceed $100,000.

     No options have been granted under the Plan as of July 31, 1996.


(6) Income Taxes

     The income tax provision (benefit) for the years ended December 31, 1996,
     1995 and 1994 consists of the following:

                                  1996         1995         1994    
                               ---------    ---------    ---------
              Current:
                 Federal       $    --           --           --
                 State             9,035       11,000        7,500
                               ---------    ---------    ---------
              
                                   9,035       11,000        7,500
                               ---------    ---------    ---------
              Deferred:
                 Federal          40,000     (250,000)        --
                 State              --           --           --
                               ---------    ---------    ---------
                                  40,000     (250,000)        --
                               ---------    ---------    ---------
                       Total   $  49,035     (239,000)       7,500
                               =========    =========    =========
              




                                                                     (Continued)

                                      F-10

<PAGE>

                               TNR TECHNICAL, INC.

                          Notes to Financial Statements

                             July 31, 1996 and 1995


(6) Continued

     Income tax expense (benefit) attributable to income before income tax
     differed from the amount computed by applying the U.S. Federal income tax
     rate of 34% to income (loss) from operations before income taxes as a
     result of the following:

<TABLE>
<CAPTION>

                                                                      1996         1995         1994     
                                                                    ---------    ---------    ---------
       
       <S>                                                          <C>             <C>          <C>   
       Computed "expected" tax expense                              $  62,700       67,700       53,000
       Increase (reduction) in income tax expense (benefit)
         resulting from:
            State income taxes, net of federal income tax benefit
                                                                        6,000        7,000        5,500
            Utilization of net operating loss carryforwards              --        (52,500)     (39,000)
            Rate differences                                          (19,965)     (11,200)     (12,000)
            Reduction in valuation allowance                             --       (250,000)        --
                                                                    ---------    ---------    ---------
                                                                    $  49,035     (239,000)       7,500
                                                                    =========    =========    =========

</TABLE>

     The tax effects of temporary differences that give rise to significant
     portions of the deferred tax assets at July 31, 1996 and 1995 are
     presented below:
<TABLE>
<CAPTION>

       
                                                                               1996                   1995
                                                                               ----                   ----
       <S>                                                                  <C>                     <C>
       Deferred tax assets:
           Inventories, principally due to additional costs
            inventoried for tax purposes                                    $      8,000              11,000
           Accounts receivable, due to allowance for uncollectible
            accounts                                                               5,000               4,000
           Net operating losses                                                  197,000             235,000
                                                                            ------------             -------
                                                                                 210,000             250,000
       Less valuation allowance                                                     -                  -
                                                                            ------------             -------
                 Total                                                      $    210,000             250,000
                                                                            ============             =======
</TABLE>




                                                                     (Continued)



                                      F-11

<PAGE>

                               TNR TECHNICAL, INC.

                          Notes to Financial Statements

                             July 31, 1996 and 1995


(6) Continued

     Deferred taxes are presented in the accompanying balance sheets as:

                                                    1996                1995
                                                    ----                ----

      Current deferred tax assets             $      13,000            15,000
      Noncurrent deferred tax assets                197,000           235,000
                                              -------------           ------- 
                                              $     210,000           250,000
                                              =============           =======

     In the year ended July 31, 1994, the Company adopted the Financial
     Accounting Board Statement No. 109, "Accounting for Income Taxes" and
     recorded a gross deferred tax asset of $250,000 which was offset by a
     valuation allowance in the same amount as of July 31, 1994. During fiscal
     1995, the Company reversed the entire valuation allowance and,
     accordingly, credited $250,000 to income tax expense.

     In assessing the realizability of deferred tax assets, management
     considers whether it is more likely than not that some portion or all of
     the deferred tax assets will be realized. Management considers the
     projected future taxable income and tax planning strategies in making
     this assessment. The Company believes that future earnings in addition to
     the amount of taxable differences which will reverse in future periods,
     will be sufficient to offset recorded deferred tax assets and,
     accordingly, a valuation allowance is not considered necessary at July
     31, 1996 and 1995.

     At July 31, 1996, the Company has net operating loss carryforwards of
     approximately $780,000 which will expire as follows:

             Year Ending July 31,
             --------------------
                     2002                            $   150,000
                     2003                                380,000
                     2004                                250,000





                                                                     (Continued)

                                      F-12

<PAGE>

                               TNR TECHNICAL, INC.

                          Notes to Financial Statements

                             July 31, 1996 and 1995


(7) Lease Commitment

     Commencing in June 1996, the Company entered into an agreement to lease
     its office, warehouse and distribution facilities from a partnership
     controlled by an executive officer, shareholder and director of TNR. The
     lease agreement provides for a term of ten years including the payments
     as indicated below:

                   Year Ending July 31,
                   --------------------
                           1997                     $     60,298
                           1998                           63,313
                           1999                           66,480
                           2000                           69,804
                           2001                           73,293
                        Thereafter                       409,007
                                                    ------------
                                                    $    742,195
                                                    ============

(8) Sales to Major Customers

     During the years ended July 31, 1996 and 1995, no customer accounted for
     more than 10% of total revenues. During the year ended July 31, 1994, one
     customer accounted for approximately 13% of total revenues.


(9) Supplementary Information

                                                  1996      1995      1994
                                                 -------   -------   -------

Advertising costs                                $37,244    56,810    78,249
Provision for doubtful accounts                   24,820     6,000    20,721

The provision for doubtful accounts and advertising costs are included in
selling, general and administrative costs in the accompanying statements of
operations.





                                      F-13





<PAGE>


                               TNR TECHNICAL, INC.

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                               TNR TECHNICAL, INC.
                                         -----------------------------------
                                                  (Registrant)

Dated: March 6, 1997

                                         /s/ Jerrold Lazarus
                                         -----------------------------------
                                         Jerrold Lazarus (Chairman of the
                                         Board, Chief Executive Officer,
                                         Chief Accounting and Financial
                                         Officer and Treasurer)

                                        4