-----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, UkWrGzEDMOKm6DIiaZNlyn2GoqSNt7gYS0xenOdqghX+hKb1wryLdZ0mEDoX/4QI PJLHot8PezmQAOk4vFj0eA== 0000897101-96-000005.txt : 19960111 0000897101-96-000005.hdr.sgml : 19960111 ACCESSION NUMBER: 0000897101-96-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19951130 FILED AS OF DATE: 19960109 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BIOSENSOR CORP CENTRAL INDEX KEY: 0000708282 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 411427114 STATE OF INCORPORATION: MN FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-11408 FILM NUMBER: 96502141 BUSINESS ADDRESS: STREET 1: 13755 FIRST AVE NORTH CITY: PLYMOUTH STATE: MN ZIP: 55441 BUSINESS PHONE: 6124499100 MAIL ADDRESS: STREET 1: 13755 FIRST AVE NO CITY: PLYMOUTH STATE: MN ZIP: 55441 10QSB 1 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 November 30, 1995 [ ] TRANSITION REPORT UNDER SECTION 13 or 15(d) OF THE EXCHANGE ACT For the transition period from _____ to _____ COMMISSION FILE NUMBER 0-11408 BIOSENSOR CORPORATION - ------------------------------------------------------------------------------ MINNESOTA 41-1427114 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 13755 First Avenue North, Plymouth, Minnesota 55441 (Address of principal executive offices) (Zip Code) Issuer's telephone number (612) 449-9100 Check whether the Issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the 12 months (or for such shorter period that registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES __ X __ NO______ The number of shares outstanding of the registrant's common stock, $.05 par value, as of December 31, 1995 is 2,805,555. BIOSENSOR CORPORATION CONDENSED BALANCE SHEETS - ------------------------------------------------------------------------------- November 30, May 31, 1995 1995 (Unaudited) - -------------------------------------------------------------------------------- ASSETS - -------------------------------------------------------------------------------- CURRENT ASSETS Cash $4,617 $4,750 Receivables 496,747 395,309 Inventories 391,728 432,486 Prepaid expenses and other 21,091 22,032 - -------------------------------------------------------------------------------- Total Current Assets 914,183 854,577 - -------------------------------------------------------------------------------- DEPOSITS 8,666 9,643 - -------------------------------------------------------------------------------- PROPERTY AND EQUIPMENT at cost, net 62,185 65,334 - -------------------------------------------------------------------------------- $985,034 $929,554 ================================================================================ - -------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY - -------------------------------------------------------------------------------- CURRENT LIABILITIES Note Payable to bank $20,000 $20,000 Accounts payable Trade 105,849 96,120 Other - 20,000 Accrued expenses Commissions 12,654 22,350 Compensation 52,492 43,333 Warranty 20,525 22,467 Other 30,654 27,182 - -------------------------------------------------------------------------------- Total Current Liabilities 242,174 251,452 - -------------------------------------------------------------------------------- DEFERRED RENT 2,181 5,195 - -------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY Common stock, par value $.05 per share 140,153 140,028 Additional paid-in capital 2,940,135 2,939,947 Accumulated deficit (2,339,609) (2,407,068) - -------------------------------------------------------------------------------- Total stockholders' equity 740,679 672,907 - -------------------------------------------------------------------------------- $985,034 $929,554 ================================================================================
BIOSENSOR CORPORATION CONDENSED STATEMENTS OF INCOME (Unaudited) - ------------------------------------------------------------------------------------------------------------------------------- For the Three Months Ended For the Six Months Ended November 30, November 30, -------------------------------------------------------------------------- 1995 1994 1995 1994 - -------------------------------------------------------------------------------------------------------------------------------- NET SALES $570,056 $640,646 $1,098,928 $1,358,908 - -------------------------------------------------------------------------------------------------------------------------------- COSTS AND EXPENSES Cost of products sold 200,125 251,228 399,426 576,587 Research, development and engineering 40,342 69,521 79,939 138,044 Sales and marketing 150,133 235,569 303,034 475,406 General and administrative 119,594 130,990 245,773 252,135 - -------------------------------------------------------------------------------------------------------------------------------- 510,194 687,308 1,028,172 1,442,172 - -------------------------------------------------------------------------------------------------------------------------------- Operating income (loss) 59,862 (46,662) 70,756 (83,264) Nonoperating Income (Expense), net (951) 1,340 (1,607) 3,311 - -------------------------------------------------------------------------------------------------------------------------------- Income (Loss) before income taxes 58,911 (45,322) 69,149 (79,953) Federal and State Income Taxes -- -- 1,689 2,622 - -------------------------------------------------------------------------------------------------------------------------------- Net Income (Loss) $58,911 $(45,322) $67,460 $(82,575) ================================================================================================================================ EARNINGS (LOSS) PER COMMON SHARE AND COMMON EQUIVALENT SHARE $ .02 $(.02) $ .02 $(.03) ================================================================================================================================ WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES 2,802,286 2,800,555 2,801,420 2,795,637 ================================================================================================================================
BIOSENSOR CORPORATION STATEMENTS OF CASH FLOWS (Unaudited) - ----------------------------------------------------------------------------------------------------- Six Months Ended November 30, 1995 1994 - ----------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $67,460 $(82,575) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 12,313 10,908 (Gain) loss on sale of property and equipment 74 (73) Changes in assets and liabilities: (Increase) decrease in: Receivables (101,438) 68,409 Inventories 40,758 (43,554) Other Assets 1,918 (5,200) Increase (decrease) in: Accounts payable 9,729 1,508 Accrued expenses (2,022) (76,007) - ----------------------------------------------------------------------------------------------------- Net cash provided by (used in) operations 28,792 (126,584) - ----------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Payment for purchase of product line (20,000) (40,000) Purchase of property and equipment (10,238) -- Proceeds from sale of property and equipment 1,000 600 - ----------------------------------------------------------------------------------------------------- Net cash used in investing activities (29,238) (39,400) - ----------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Borrowing from note payable to bank 110,000 110,000 Payments on note payable to bank (110,000) (60,000) Net proceeds from issuance of common stock 313 1,500 - ----------------------------------------------------------------------------------------------------- Net cash provided by financing activities 313 51,500 - ----------------------------------------------------------------------------------------------------- Decrease in cash and cash equivalents (133) (114,484) CASH AND CASH EQUIVALENTS Beginning of period 4,750 125,208 - ----------------------------------------------------------------------------------------------------- End of period $4,617 $10,724 =====================================================================================================
BIOSENSOR CORPORATION NOTES TO CONDENSED FINANCIAL STATEMENTS NOTE 1. NATURE OF BUSINESS The Company is engaged in the development, manufacture and marketing of diagnostic equipment for physicians' offices, clinics and hospitals. The 24-hour ambulatory cardiac monitoring, EKG telemetry, pulmonary function, EKG and ambulatory blood pressure systems operate independently or in unison on an IBM compatible office computer. The company also manufactures cardiac monitors for OEM distributors. NOTE 2. CONDENSED FINANCIAL STATEMENTS The accompanying condensed financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and changes in cash flows have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's Form 10-KSB for the year ended May 31, 1995. The results of operations for the three months and six months ended November 30, 1995, are not necessarily indicative of the operating results for the full year. MANAGEMENT'S DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS The Company's sales were $570,000 and $1,099,000 for the second quarter and six months ended November 30, 1995, respectively, compared to $641,000 and $1,359,000 for the second quarter and six months ended November 30, 1994. Cost of goods sold as a percentage of sales were 35% for the second quarter and 36% for the six months ended November 30, 1995. This is down from 39% and 42% for those same periods in the previous year. In the second and third quarters of fiscal 1995, the Company reorganized its US sales force by moving to the use of independent sales representatives and increasing the emphasis on the profitability versus volume of sales in the United States. This reorganization has resulted in a lower volume but more profitable sales in the US market. The decrease in sales was also the result of decreased OEM equipment sales. The Company believes U.S. healthcare reforms have resulted in a reduction in purchases of diagnostic equipment sold. These decreases in sales were slightly offset by increases in international sales. Research, development and engineering expenditures decreased approximately $29,000 for the second quarter and $58,000 for the six months ended November 30, 1995 compared to the previous year. These decreases are due to decreases in research supplies and personnel expenditures. Sales and marketing expenses decreased $85,000 for the second quarter and $172,000 for the six months ended November 30, 1995. These decreases are a result of the reorganization of the US sales force to change to sales representatives who are compensated solely through commission on sales versus base salaries and expense paid to employee sales representatives in the previous year. General and administrative costs decreased $11,000 and $6,000 for the second quarter and six months ended November 30, 1995. These decreases are the result of decreased administrative costs relating to the OEM equipment sales. LIQUIDITY AND CAPITAL RESOURCES For the six month period ending November 30, 1995, cash provided by operations totaled $29,000. The net income of $67,000, decrease in inventory of $41,000 and increase in liabilities were offset by an increase in receivables. The Company used cash of $30,000 for payments on the product line purchased in 1994 and for purchases of property and equipment. At November 30, 1995 the Company had working capital of $672,000. The Company also has a bank line of credit available of $150,000 due October 31, 1996 with interest at 2 percent over prime. The balance outstanding on the line was $20,000 at November 30, 1995. Advances are limited to a percentage of receivables and are secured by substantially all the assets of the Company. The line contains certain financial and other covenants which include current ratio and tangible net worth covenants, and prohibit the payment of dividends. Management believes that these sources, along with anticipated cash flows from operations will be sufficient to fund operations for fiscal 1996. PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Not Applicable. ITEM 2. CHANGES IN SECURITIES Not Applicable ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not Applicable ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not Applicable ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K None SIGNATURES In accordance with the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BIOSENSOR CORPORATION /s/ B. Steven Springrose B. Steven Springrose President and Chief Executive Officer Date January 2, 1995 EX-27 2
5 3-MOS MAY-31-1996 NOV-30-1996 4,617 0 508,777 12,000 391,728 914,183 333,718 271,533 985,034 242,174 0 0 0 140,153 600,526 985,034 570,056 570,056 200,125 190,475 118,158 0 1,436 58,911 0 58,911 0 0 0 58,911 .02 .02
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