-----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, DeM5RyVZbYQ+gJLOsQcknFRjHI0RvW5eW5c2VfGiytpEp/rGJ4iRsRt8/W7GJZMP aGhfaY2JbhzRTdt7+tTOoQ== 0000897101-97-000390.txt : 19970404 0000897101-97-000390.hdr.sgml : 19970404 ACCESSION NUMBER: 0000897101-97-000390 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970228 FILED AS OF DATE: 19970403 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: 97574208 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 February 28, 1997 |_|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 (I.R.S. Employer of incorporation or organization) Identification No.) 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 March 17, 1997 is 2,823,055. BIOSENSOR CORPORATION CONDENSED BALANCE SHEETS - ------------------------------------------------------------------------------- February 28, May 31, 1997 1996 (Unaudited) - ------------------------------------------------------------------------------- ASSETS - ------------------------------------------------------------------------------- CURRENT ASSETS Cash $82,004 $163,422 Receivables 574,213 605,536 Inventories 340,662 308,376 Prepaid expenses and other 28,252 17,163 - ------------------------------------------------------------------------------- Total Current Assets 1,025,131 1,094,497 - ------------------------------------------------------------------------------- DEPOSITS 8,666 11,204 - ------------------------------------------------------------------------------- PROPERTY AND EQUIPMENT at cost, net 58,562 74,411 - ------------------------------------------------------------------------------- $1,092,359 $1,180,112 =============================================================================== - ------------------------------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------------------------------------------------- CURRENT LIABILITIES Trade accounts payable 96,144 166,058 Accrued expenses Commissions 40,526 55,280 Compensation 54,604 55,481 Warranty 29,457 30,657 Litigation (Note 3) 325,000 - Other 9,567 27,348 - ------------------------------------------------------------------------------- Total Current Liabilities 555,298 334,824 - ------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY Common stock, par value $.05 per share 141,152 140,403 Additional paid-in capital 2,940,447 2,940,447 Accumulated deficit (2,544,538) (2,235,562) - ------------------------------------------------------------------------------- Total stockholders' equity 537,061 845,288 - ------------------------------------------------------------------------------- $1,092,359 $1,180,112 =============================================================================== BIOSENSOR CORPORATION CONDENSED STATEMENTS OF INCOME (Unaudited)
- -------------------------------------------------------------------------------------------------------------------------------- For the Three Months Ended For the Nine Months Ended February 28 and 29, February 28 and 29, --------------------------------------------------------------------------- 1997 1996 1997 1996 - -------------------------------------------------------------------------------------------------------------------------------- NET SALES $ 745,867 $ 613,158 $ 1,923,834 $ 1,712,087 - -------------------------------------------------------------------------------------------------------------------------------- COSTS AND EXPENSES Cost of products sold 388,039 249,679 924,031 678,894 Research, development and engineering 74,541 39,124 207,476 119,063 Sales and marketing 191,465 143,973 490,542 447,007 General and administrative 83,854 113,482 283,429 329,466 - -------------------------------------------------------------------------------------------------------------------------------- 737,899 546,258 1,905,478 1,574,430 - -------------------------------------------------------------------------------------------------------------------------------- Operating income 7,968 66,900 18,356 137,657 NONOPERATING INCOME (EXPENSE), Litigation (Note 3) - - (325,000) - Other, net 1,804 (535) 1,363 (2,142) - -------------------------------------------------------------------------------------------------------------------------------- 1,804 (535) (323,637) (2,142) - -------------------------------------------------------------------------------------------------------------------------------- Income (Loss) before income taxes 9,772 66,365 (305,281) 135,515 Federal and State Income Taxes 440 - 2,695 1,689 - -------------------------------------------------------------------------------------------------------------------------------- Net Income (Loss) $ 9,332 $ 66,365 $ (307,976) $ 133,826 ================================================================================================================================ EARNINGS (LOSS) PER COMMON SHARE AND COMMON EQUIVALENT SHARE $ .00 $ .02 $ (.11) $ .02 ================================================================================================================================ WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES 2,823,055 2,805,088 2,820,143 2,802,635 ================================================================================================================================
BIOSENSOR CORPORATION STATEMENTS OF CASH FLOWS (Unaudited)
- ---------------------------------------------------------------------------------------------------- Nine Months Ended February 28 and 29, 1997 1996 - ---------------------------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) $(307,976) $ 133,826 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 26,430 20,977 Loss on sale of property and equipment - (73) Changes in assets and liabilities: (Increase) decrease in: Receivables 31,323 (106,439) Inventories (33,286) 64,761 Other assets (8,551) (1,102) Increase (decrease) in : Accounts payable (69,914) 22,561 Accrued expenses (Note 3) 290,388 5,005 - ---------------------------------------------------------------------------------------------------- Net cash provided by (used in) operations (71,586) 139,516 - ---------------------------------------------------------------------------------------------------- CASH FLOWS FROM INVESTING ACTIVITIES Payment for purchase of product line - (20,000) Purchase of property and equipment (11,655) (35,566) Proceeds from sale of property and equipment 1,074 1,400 - ---------------------------------------------------------------------------------------------------- Net cash used in investing activities (10,581) (54,166) - ---------------------------------------------------------------------------------------------------- CASH FLOWS FROM FINANCING ACTIVITIES Borrowing from note payable to bank 100,000 110,000 Payments on note payable to bank (100,000) (130,000) Net proceeds from issuance of common stock 749 563 - ---------------------------------------------------------------------------------------------------- Net cash provided by financing activities 749 (19,437) - ---------------------------------------------------------------------------------------------------- Decrease in cash and cash equivalents (81,418) 65,913 CASH AND CASH EQUIVALENTS Beginning of period 163,422 4,750 - ---------------------------------------------------------------------------------------------------- End of period $ 82,004 $ 70,663 ====================================================================================================
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 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, 1996. The results of operations for the three months and nine months ended February 28, 1997, are not necessarily indicative of the operating results for the full year. NOTE 3. LITIGATION On September 19, 1996, a jury verdict in the amount of $325,000 was awarded to a former vendor for its claims that the Company owed additional amounts under a 1988 software license agreement. The Company disputes this claim and has filed an appeal. The Company is working with counsel to evaluate its further legal options. The amount of the jury verdict was accrued as of August 31, 1996. MANAGEMENT'S DISCUSSION AND ANALYSIS RESULTS OF OPERATIONS The Company's sales were $746,000 and $1,924,000 for the third quarter and nine months ended February 28, 1997, respectively, compared to $613,000 and $1,712,000 for the third quarter and nine months ended February 29, 1996. The increase in sales is a result of increased sales in the US through independent sales representatives. Cost of goods sold as a percentage of sales increased to 52% for the third quarter and 48% for the nine months ended February 28, 1997. This is up from 40% for both of those same periods in the previous year. These increases are due to lower margins in International sales as a result of competitive activity and normal sales product mix variations and also due to lower margins in the OEM products. Research, development and engineering expenditures increased approximately $35,000 or 89% for the third quarter and $88,000 or 74% for the nine months ended February 28, 1997 compared to the previous year. These increases are due to increased number of research and development personnel involved in the development of new products intended to keep the Company competitive. Sales and marketing expenses increased $47,000 for the third quarter and $43,000 for the nine months ended February 28, 1997. These increases are due to increased commissions paid on increased US sales. In addition, several telemarketing personnel were added to the US sales department during the second and third quarters of 1997. General and administrative costs decreased $30,000 for the third quarter and $46,000 for the nine months ended February 28, 1997 compared to the prior year. These decreases are due to decreases in personnel expenditures. On September 19, 1996, a jury verdict in the amount of $325,000 was awarded to a former vendor for its claims that the Company owed additional amounts under a 1988 software license agreement. The Company disputes this claim and has filed an appeal. The Company is working with counsel to evaluate its further legal options. The amount of the jury verdict had been accrued as of August 31, 1996. LIQUIDITY AND CAPITAL RESOURCES For the nine month period ending February 28, 1997 cash used in operations totaled $72,000 caused by the net loss of $308,000 partially offset by increased accrued expenses of $290,000. At February 28, 1997 the Company had working capital of $470,000. Management believes its current working capital and anticipated cash flows from operations will be sufficient to fund operating activities for the coming 12 months. Legal proceedings described above may require the Company to pay a judgment amount specified by the Court, pursue an appeal, or negotiate a settlement with the plaintiff. If the Company is required to pay an entire judgment amount of $325,000, working capital and cash flows from operations may not be sufficient to pay the judgment amount and/or fund operations. In this event, the Company may be unable to continue operations, and the Company may be required to seek legal protection while the dispute is resolved. PART II OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS See Note 3 to the Financial Statements. 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, Chief Executive Officer and Chief Financial Officer Date: April 2, 1997 EX-27 2 FINANCIAL DATA SCHEDULE
5 0000708282 BIOSENSOR CORPORATION 1,000 9-MOS MAY-31-1997 JUN-01-1996 FEB-28-1997 82 0 574 0 341 1,025 59 0 1,092 555 0 0 0 141 396 1,092 1,924 1,924 924 981 324 0 0 (305) 3 (308) 0 0 0 (308) (.11) 0
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