-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Al9ihonb+TFR6NFYHcZX3R8j+FXwaEnzzucDFeJoh2SjwSU/a5uiuzzweJz64xi8 GOX9zaGAdW+X2LAL1vgtJA== 0000912057-01-527257.txt : 20010810 0000912057-01-527257.hdr.sgml : 20010810 ACCESSION NUMBER: 0000912057-01-527257 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010809 FILED AS OF DATE: 20010809 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VISIBLE GENETICS INC CENTRAL INDEX KEY: 0001010819 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-28550 FILM NUMBER: 1701878 BUSINESS ADDRESS: STREET 1: 700 BAY ST STREET 2: SUITE 1000 CITY: TORONTO ONTARIO CANA STATE: A6 BUSINESS PHONE: 2127025700 MAIL ADDRESS: STREET 1: 700 BAY ST STE 1000 STREET 2: TORONTO ONTARIO CANADA CITY: M5G 1Z6 6-K 1 a2056336z6-k.txt FORM 6-K - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------ FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13A-16 OR 15D-16 OF THE SECURITIES EXCHANGE ACT OF 1934 FILING NO. 1 FOR THE MONTH OF AUGUST, 2001 VISIBLE GENETICS INC. (Exact name of Registrant) 700 BAY STREET, SUITE 1000, TORONTO ON, CANADA M5G 1Z6 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F Form 20-F X Form 40-F __ Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes __ No X - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- VISIBLE GENETICS INC. On August 9, 2001, we reported our financial results for the second quarter of 2001. We reported sales of $3.9 million for the second quarter ended June 30, 2001, compared to $3.4 million for the same period in 2000. The net loss attributable to common shareholders for the quarter was $10.2 million or $0.62 per share, compared to a net loss attributable to common shareholders of $8.6 million or $0.59 per share for the same period in 2000. Sales for the first six months of 2001 were $7.5 million with a net loss attributable to common shareholders of $19.6 million or $1.20 per share, compared to sales of $7.1 million and a net loss attributable to common shareholders of $15.3 million or $1.13 per share, for the corresponding period in 2000. Sales of genotyping kits and consumables in the first half of 2001 increased 52% from such sales in the first six months of 2000. Total expenses for the second quarter of 2001 increased to $11.3 million, up from $10.5 million, exclusive of Exit and Termination Costs, for the first quarter of 2001. The increased costs in the quarter were due primarily to expenses related to the startup of the Atlanta kit manufacturing facility, consolidation costs, and an increase in sales and marketing expenses as we prepare for the US launch of the TRUGENE-TM- HIV-1 Genotyping Test and OpenGene-TM- system. (All amounts are in US dollars.) This Form 6-K may contain forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and other factors which may cause our results to differ materially from expectations. These include risks relating to the ability to obtain regulatory approval, market acceptance of genotyping and our products, delays in product development, delays in making the new Atlanta manufacturing facility operational, and other risks detailed from time to time in our SEC filings, including our most recent Annual Report on Form 20-F. These forward-looking statements speak only as of the date hereof. We disclaim any intent or obligation to update these forward-looking statements. We hereby incorporate by reference this Form 6-K into our Registration Statements on Form F-3, and into the prospectuses contained therein, (File Nos. 333-67607, 333-68939, 333-91155, 333-94649 and 333-40616) and our outstanding Registration Statements on Form S-8 and into the reoffer prospectuses contained therein. Exhibit 1. Second Quarter Financial Results 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. VISIBLE GENETICS INC. By: /s/ THOMAS CLARKE ------------------------------ Name: Thomas Clarke Title: Chief Financial Officer Date: August 9, 2001 EX-1.1 3 a2056336zex-1_1.txt EXHIBIT 1.1 EXHIBIT 1 VISIBLE GENETICS INC. CONSOLIDATED BALANCE SHEETS (UNITED STATES DOLLARS)
JUNE 30 2001 DECEMBER 31 (UNAUDITED) 2000 ------------ ------------ ASSETS CURRENT ASSETS Cash and cash equivalents................................. $ 3,518,781 $ 18,476,303 Short-term investments.................................... 47,503,382 61,922,687 Trade receivables, net of allowance for doubtful accounts................................................ 3,963,992 3,214,934 Other receivables......................................... 1,225,090 884,995 Prepaid and deposits...................................... 623,997 452,124 Inventory................................................. 2,542,637 2,268,877 ------------ ------------ TOTAL CURRENT ASSETS........................................ 59,377,879 87,219,920 ------------ ------------ FIXED ASSETS................................................ 18,321,969 10,292,282 PATENTS AND LICENSES........................................ 15,778,826 12,182,112 OTHER LONG TERM ASSETS...................................... 290,168 290,633 ------------ ------------ $ 93,768,842 $109,984,947 ============ ============ LIABILITIES CURRENT LIABILITIES Accounts payable.......................................... $ 5,015,950 $ 3,847,364 Accrued liabilities....................................... 5,102,830 5,265,864 ------------ ------------ TOTAL CURRENT LIABILITIES................................... 10,118,780 9,113,228 ------------ ------------ MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED SHARES......... 25,121,139 24,397,398 ------------ ------------ SHAREHOLDERS' EQUITY Share capital............................................... 171,274,436 169,717,379 Other equity................................................ (2,611,237) (1,017,321) Cumulative translation adjustment........................... (974,500) (1,013,459) Deficit..................................................... (109,159,776) (91,212,278) ------------ ------------ 58,528,923 76,474,321 ------------ ------------ $ 93,768,842 $109,984,947 ============ ============
VISIBLE GENETICS INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNITED STATES DOLLARS) (UNAUDITED)
THREE MONTHS ENDED JUNE 30 SIX MONTHS ENDED JUNE 30 -------------------------- --------------------------- 2001 2000 2001 2000 ------------ ----------- ------------ ------------ SALES Products.............................. $ 3,819,814 $ 3,299,410 $ 7,352,501 $ 6,740,877 Services.............................. 108,680 108,078 149,820 310,666 ------------ ----------- ------------ ------------ 3,928,494 3,407,488 7,502,321 7,051,543 ------------ ----------- ------------ ------------ COST OF SALES Products.............................. 2,620,080 2,322,050 4,904,767 4,459,946 Services.............................. 108,384 60,306 136,827 206,791 ------------ ----------- ------------ ------------ 2,728,464 2,382,356 5,041,594 4,666,737 ------------ ----------- ------------ ------------ GROSS MARGIN............................ 1,200,030 1,025,132 2,460,727 2,384,806 EXPENSES Sales, general and administrative..... 8,630,281 7,299,700 16,387,841 12,799,611 Research and development.............. 2,645,764 2,941,160 5,365,824 4,942,010 Exit and termination costs............ -- -- 540,000 -- ------------ ----------- ------------ ------------ 11,276,045 10,240,860 22,293,665 17,741,621 ------------ ----------- ------------ ------------ LOSS FROM OPERATIONS BEFORE INTEREST.... (10,076,015) (9,215,728) (19,832,938) (15,356,815) Interest income......................... 709,744 1,568,461 1,887,939 1,998,014 Interest and financing expense.......... (1,544) (2,754) (2,499) (6,798) ------------ ----------- ------------ ------------ NET LOSS FOR THE PERIOD................. (9,367,815) (7,650,021) (17,947,498) (13,365,599) Cumulative preferred dividends and accretion of discount attributable to preferred stock....................... (829,016) (969,382) (1,661,962) (1,937,149) ------------ ----------- ------------ ------------ NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS.......................... $(10,196,831) $(8,619,403) $(19,609,460) $(15,302,748) ------------ ----------- ------------ ------------ Weighted average number of common shares outstanding........................... 16,407,406 14,567,520 16,343,924 13,486,119 ------------ ----------- ------------ ------------ BASIC AND FULLY DILUTED LOSS PER SHARE................................. $ (0.62) $ (0.59) $ (1.20) $ (1.13) ------------ ----------- ------------ ------------
VISIBLE GENETICS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNITED STATES DOLLARS) (UNAUDITED)
SIX MONTHS ENDED JUNE 30 --------------------------- 2001 2000 ------------ ------------ CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Net loss for the period................................... $(17,947,498) $(13,365,599) Add: Items not involving cash-- Depreciation............................................ 2,086,776 1,072,461 Amortization............................................ 1,514,287 648,084 Foreign exchange........................................ 35,498 (106,689) Increase (decrease) from changes in-- Trade receivables....................................... (803,052) 1,499,818 Other receivables....................................... (390,817) (71,972) Prepaid and deposits.................................... (179,172) (357,551) Inventory............................................... (278,019) (974,841) Other long term assets.................................. 465 -- Accounts payable........................................ 1,250,004 2,161,389 Accrued liabilities..................................... 24,865 (359,292) ------------ ------------ (14,686,663) (9,854,192) ============ ============ INVESTING ACTIVITIES Purchase of fixed assets................................ (10,105,541) (4,196,548) Licenses and patents acquired........................... (5,111,001) (12,216,273) Purchase of short-term investments...................... (57,868,464) (78,738,530) Redemption of short-term investments.................... 72,287,769 24,565,066 ------------ ------------ (797,237) (70,586,285) ============ ============ FINANCING ACTIVITIES Common shares issued, net of expenses................... 725,841 78,750,832 ------------ ------------ 725,841 78,750,832 ============ ============ EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH BALANCES....... (199,463) 218,189 ------------ ------------ INCREASE (DECREASE) IN CASH DURING THE YEAR................. (14,957,522) (1,471,456) CASH, BEGINNING OF PERIOD................................... 18,476,303 2,792,985 ------------ ------------ CASH, END OF PERIOD......................................... $ 3,518,781 $ 1,321,529 ============ ============ SUPPLEMENTAL INFORMATION Interest paid............................................. $ 1,544 $ 2,754 Income taxes paid......................................... $ -- $ --
VISIBLE GENETICS INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNITED STATES DOLLARS) (UNAUDITED)
SIX MONTHS ENDED JUNE 30 --------------------------- 2001 2000 ------------ ------------ Net loss for the period.................................. $(17,947,498) $(13,365,599) Other comprehensive income: Foreign currency translation adjustments............... 38,959 (332,691) ------------ ------------ Comprehensive loss for the period........................ $(17,908,539) $(13,698,290) ============ ============
VISIBLE GENETICS INC. CONSOLIDATED STATEMENTS OF DEFICIT (UNITED STATES DOLLARS) (UNAUDITED)
SIX MONTHS ENDED JUNE 30 ---------------------------- 2001 2000 ------------- ------------ Deficit, beginning of year.............................. $ (91,212,278) $(59,438,142) Net loss for the period................................. (17,947,498) (13,365,599) ------------- ------------ Deficit, end of the period.............................. $(109,159,776) $(72,803,741) ============= ============
VISIBLE GENETICS INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1--SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying financial statements have been prepared in United States dollars, in accordance with accounting principles generally accepted in the United States. The principal accounting policies of the Company have been applied on a consistent basis. See the Company's 2000 Annual Report for a description of the Company's significant accounting policies. These interim financial statements do not include all of the information and note disclosure required by generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of results for the reported periods have been included. NOTE 2--INVENTORY
JUNE 30, ----------------------- 2001 2000 ---------- ---------- Raw materials........................................ $1,072,408 $1,860,757 Work in process...................................... 393,658 592,671 Finished goods....................................... 1,076,571 1,034,474 ---------- ---------- $2,542,637 $3,487,902 ========== ==========
NOTE 3--CONVERSION OF SERIES A MANDATORILY REDEEMABLE CONVERTIBLE PREFERRED SHARES On March 15, 2001 a holder of 3,948 shares of the Company's Series A Mandatorily Redeemable Convertible Preferred Shares (the Series A Shares) converted a total of 1,000 of the Series A Shares, plus a total of $139,050 of dividends that accrued on those shares, into 103,550 of the Company's common shares. Upon conversion of the 1,000 Series A Shares, approximately $938,221 attributable to such shares and carried in Mandatorily Redeemable Convertible Preferred Shares on the Balance Sheet was transferred to Share Capital. As of June 30, 2001, a total of 25,153 Series A Shares remain outstanding, and such shares, including dividends accrued on such shares through June 30, 2001, are convertible into 2,707,406 shares of the Company's common stock. NOTE 4--EXIT COSTS During the first quarter of 2001 the Company approved a plan to close its Pittsburgh facility and move all of its kit manufacturing to productions lines that are currently undergoing validation in the Company's facility in Atlanta. It is expected that the Pittsburgh facility will be closed in the second half of 2001. As a result of the decision to centralize kit manufacturing in Atlanta certain employees will be terminated and the Pittsburgh facility will be vacated. Accordingly, the Company recorded a charge of $540,000 in the statement of operations in the first quarter of 2001. This amount represents the expected severance payments to be made to terminated employees, the remaining future lease commitments, the unamortized balance of leasehold improvements and other costs related to closure of the facility. NOTE 5--SEGMENT INFORMATION The Company's reportable segments are Sequencing Systems, Gene Kits and Other Consumables, and Testing, Sequencing and Other Services. Total assets shown below are as of June 30th, while all other numbers are for the six-month period ended June 30th, of the respective year. JUNE 30, 2001
GENEKITS TESTING, SEQUENCING AND OTHER SEQUENCING AND RECONCILING SYSTEMS CONSUMABLES OTHER SERVICES ITEMS(A) TOTAL ---------- ----------- -------------- ----------- ----------- Revenues....................... $1,508,823 $ 5,843,678 $ 149,820 -- $ 7,502,321 Depreciation & Amtz............ 834,075 2,358,946 408,042 -- 3,601,063 (Loss) from operations before interest..................... (4,136,029) (15,622,147) (74,762) -- (19,832,938) Additions to fixed assets...... 185,550 9,786,307 133,684 -- 10,105,541 Total assets................... 3,589,618 37,489,071 1,667,990 51,022,163 93,768,842
JUNE 30, 2000 Revenues....................... $2,872,304 $ 3,868,573 $ 310,666 $ -- $ 7,051,543 Depreciation & Amtz............ 619,181 913,283 188,081 -- 1,720,545 (Loss) from operations before interest..................... (6,301,638) (9,010,688) (44,489) -- (15,356,815) Additions to fixed assets...... 455,477 2,281,445 1,459,626 -- 4,196,548 Total assets................... 5,198,575 22,615,133 2,615,103 95,389,971 125,818,782
- ------------------------ (A) Reconciling items consist of cash, cash equivalents and short-term investments. 2 -----END PRIVACY-ENHANCED MESSAGE-----