-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, eshn7WzP6Q5rUT9rhhfpAodbMmvbnTnQtrAfUzrv4G4o7tUp/ROzncVvsM/a023G yUNrEtxApiZOoTdiQmwLpg== 0000912057-95-006344.txt : 19950814 0000912057-95-006344.hdr.sgml : 19950814 ACCESSION NUMBER: 0000912057-95-006344 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: PC QUOTE INC CENTRAL INDEX KEY: 0000745774 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY & COMMODITY BROKERS, DEALERS, EXCHANGES & SERVICES [6200] IRS NUMBER: 363131704 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-11108 FILM NUMBER: 95561840 BUSINESS ADDRESS: STREET 1: 300 SOUTH WACKER DRIVE STREET 2: SUITE 300 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3129132800 MAIL ADDRESS: STREET 1: 300 S WACKER STREET 2: SUITE 300 CITY: CHICAGO STATE: IL ZIP: 60606 10QSB 1 10QSB QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-QSB ------------------------------------------------ /X/ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended June 30, 1995 Or / / Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to ------------------------------------------------ Commission file number 0-13093 I.R.S. Employer Identification Number 36-3131704 PC QUOTE, INC. (a Delaware Corporation) 300 S. Wacker Chicago, Illinois 60606 Telephone (312) 913-2800 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past twelve months, (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes _X_ No ___ State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date: 7,044,065 shares of the Company's common stock ($.001 par value) were outstanding as of August 9, 1995. [This Page Intentionally Left Blank] Page 2 PC QUOTE, INC. INDEX - ------------------------------------------------
Page --------- PART I. Financial Information Item 1. Balance Sheets as of June 30, 1995 and December 31, 1994 4-5 Statements of Operations for the six month periods ended June 30, 1995 and 1994 6-7 Statements of Cash Flows for the six month periods ended June 30, 1995 and 1994 8-9 Notes to Financial Statements 10-11 Item 2. Management's Discussion and Analysis of: Results of Operations and Financial Condition 12 Liquidity and Capital Resources 13 PART II. Other Information NONE Company's Signature Page
Page 3 PC QUOTE, INC. BALANCE SHEETS JUNE 30, 1995 AND DECEMBER 31, 1994 - ------------------------------------------------
June 30, December 31, 1995 1994 (Unaudited) (Audited) ----------- ------------- Assets Current assets: Cash and cash equivalents $1,274,212 $ 1,384,086 Accounts receivable, net of allowance for doubtful accounts of $54,466 (1995) and $100,000 (1994) 946,985 555,234 Accounts receivable due from related party 124,528 287,334 Prepaid expenses and other current assets 376,309 314,793 ----------- ------------- Total current assets 2,722,034 2,541,447 ----------- ------------- Property and equipment: Satellite receiving equipment 728,515 702,069 Computer equipment 5,943,290 5,722,462 Communication equipment 2,421,149 2,342,936 Furniture and fixtures 253,646 232,428 Leasehold improvements 340,270 326,285 ----------- ------------- 9,686,870 9,326,180 Less accumulated depreciation and amortization 6,099,852 5,486,442 ----------- ------------- 3,587,018 3,839,738 ----------- ------------- Software development costs, net of accumulated amortization of $2,701,915 (1995) and $2,158,915 (1994) 3,015,306 2,514,927 Deposits and other assets 292,918 175,619 ----------- ------------- Total assets $9,617,276 $ 9,071,731 ----------- ------------- ----------- -------------
Page 4 PC QUOTE, INC. BALANCE SHEETS JUNE 30, 1995 AND DECEMBER 31, 1994 - ------------------------------------------------
June 30, December 31, 1995 1994 (Unaudited) (Audited) ----------- ------------- Liabilities and Stockholders' Equity Current liabilities: Note payable to bank $ 100,000 $ 100,000 Capital lease obligations 811,978 835,913 Accounts payable 692,059 1,349,735 Unearned revenue 1,104,977 437,546 Accrued expenses 502,837 464,711 ----------- ------------- Total current liabilities 3,211,851 3,187,905 ----------- ------------- Note payable to bank, noncurrent 141,617 200,000 Capital lease obligations, noncurrent 314,636 714,361 Unearned revenue, noncurrent 348,940 139,096 ----------- ------------- Total liabilities 4,017,044 4,241,362 ----------- ------------- Stockholders' equity: Common stock, par value $.001; 10,000,000 shares authorized; 6,992,467 (1995) and 6,969,174 (1994) shares issued and outstanding 6,992 6,969 Paid in capital 12,086,396 12,021,444 Cumulative foreign currency translation adjustment 0 0 Accumulated deficit (6,493,156) (7,198,044) ----------- ------------- Total stockholders' equity 5,600,232 4,830,369 ----------- ------------- Total liabilities and stockholders' equity $9,617,276 $ 9,071,731 ----------- ------------- ----------- -------------
Page 5 PC QUOTE, INC. STATEMENTS OF OPERATIONS (UNAUDITED) - ------------------------------------------------
For The Six Months Ended June 30, 1995 1994 ---------- ---------- Net revenues: Services $6,422,765 $6,463,613 Direct costs of services 2,609,987 3,157,150 ---------- ---------- 3,812,778 3,306,463 ---------- ---------- Operating costs and expenses: Amortization of software development 543,000 486,000 Research and development 302,991 444,267 Selling and marketing 1,116,752 1,211,331 General and administrative 1,038,941 915,901 ---------- ---------- 3,001,684 3,057,499 ---------- ---------- Operating income 811,094 248,964 Other income (expense): Interest income 6,801 16,418 Interest expense (113,009) (130,209) ---------- ---------- Income before income taxes 704,886 135,173 Provision for Income Taxes 0 15,305 ---------- ---------- Net income $ 704,886 $ 119,868 ---------- ---------- ---------- ---------- Net income per common share $ 0.101 $ 0.017 ---------- ---------- ---------- ----------
Page 6 PC QUOTE, INC. STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED) - ------------------------------------------------
Quarter Ended June 30, 1995 1994 ---------- ---------- Net revenues: Services $3,223,096 $3,268,305 Direct costs of services 1,186,002 1,621,871 ---------- ---------- 2,037,094 1,646,434 ---------- ---------- Operating costs and expenses: Amortization of software development 300,000 240,000 Research and development 165,238 224,967 Selling and marketing 568,440 642,865 General and administrative 560,698 437,466 ---------- ---------- 1,594,376 1,545,298 ---------- ---------- Operating income 442,718 101,136 Other income (expense): Interest income 5,081 8,314 Interest expense (63,909) (65,490) ---------- ---------- Income before income taxes 383,890 43,960 Provision for Income Taxes 0 15,305 ---------- ---------- Net income $ 383,890 $ 28,655 ---------- ---------- ---------- ---------- Net income per common share $ 0.055 $ 0.004 ---------- ---------- ---------- ----------
Page 7 PC QUOTE, INC STATEMENTS OF CASH FLOWS (UNAUDITED) - ------------------------------------------------
For The Six Months Ended June 30, 1995 1994 ---------- ---------- Cash flows from operating activities: Net income $ 704,886 $ 119,868 ---------- ---------- Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization of property and equipment 613,410 715,580 Amortization of software development cost 543,000 486,000 Changes in assets and liabilities: Accounts receivable, net of allowance (228,945) (169,512) Prepaid expenses and other current assets (61,516) (125,070) Deposits and other assets (117,299) (59,801) Accounts payable (657,676) 69,512 Unearned revenue 877,275 17,473 Accrued expenses 38,127 (175,837) ---------- ---------- Total adjustments 1,006,376 758,345 ---------- ---------- Net cash provided by operating activities 1,711,262 878,213 ---------- ----------
Page 8 PC QUOTE, INC STATEMENTS OF CASH FLOWS (CONTINUED) - ------------------------------------------------
For The Six Months Ended June 30, 1995 1994 ---------- ---------- Cash flows from investing activities: Purchase of property and equipment (360,690) (430,837) Software development costs capitalized (1,043,378) (668,376) ---------- ---------- Net cash used by investing activities (1,404,068) (1,099,213) ---------- ---------- Cash flows from financing activities: Proceeds from issuance of common stock 64,975 35,274 Principal payments under capital leases obligations (423,660) (394,449) Principal payments on note payable to banks (58,383) (50,000) ---------- ---------- Net cash used by financing activities (417,068) (409,175) ---------- ---------- Effect of exchange rate changes on cash and cash equivalents 0 (2,787) ---------- ---------- Net change in cash and cash equivalents (109,874) (632,962) Cash and cash equivalents at the beginning of the period 1,384,086 1,624,970 ---------- ---------- Cash and cash equivalents at the end of the period $1,274,212 $ 992,008 ---------- ---------- ---------- ---------- - ------------------------------------------------------------- - ------------------------------------------------------------- Supplemental disclosure of cash flow information: Interest paid $ 113,009 $ 64,719 Debt incurred under capital lease obligations $ 208,200 $ 216,229 Income taxes paid None None - ------------------------------------------------------------- - -------------------------------------------------------------
Page 9 PC QUOTE, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 1995 ------------------------------------------------ (1) Basis of Presentation The accompanying financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The interim financial statements include all adjustments which, in the opinion of management, are necessary in order to make the financial statements not misleading. The amounts indicated as "audited" have been extracted from the Company's December 31, 1994 annual report. For further information, refer to the consolidated financial statements and footnotes included in PC Quote's annual report on Form 10-KSB for the year ended December 31, 1994. Certain reclassifications have been made to conform to the current presentation. Costs associated with the planning and designing phase of software development, including coding and testing activities necessary to establish technological feasibility of computer software products to be sold, leased or otherwise marketed, are charged to research and development costs as incurred. Once technological feasibility has been determined, costs incurred in the construction phase of software development, including coding, testing and product quality assurance, are capitalized. Page 10 PC QUOTE, INC. NOTES TO FINANCIAL STATEMENTS JUNE 30, 1995 ------------------------------------------------ (2) Income Taxes At December 31, 1994, the Company had domestic net operating loss carryforwards of approximately $7,079,000 for federal income tax purposes, approximately $5,112,000 for alternative minimum tax purposes, and approximately $67,000 of investment tax credit carryforwards. The net operating loss carryforwards will expire in the years 1999 to 2006 and the investment tax carryforwards will expire in the years 1999 to 2000, if not previously utilized. Page 11 PC QUOTE, INC. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION - ------------------------------------------------ RESULTS OF OPERATIONS: FOR THE SIX MONTHS AND QUARTER ENDED JUNE 30, 1995 Service revenues for the six months and quarter ended June 30, 1995 slightly decreased .6% and 1.4%, respectively, from the same periods of 1994. New sales and additional services increased steadily over the first two quarters vs. cancellations. This additional service revenue will be reflected in the third and fourth quarter results. Selling and marketing costs decreased 9.8% and 11.6%, respectively, for the six months and quarter ended June 30, 1995, over the same periods in 1994. Sales have increased during this period with fewer sales people due to our increased focus on platform and data feed sales. Direct costs of services for the six months and quarter ended June 30, 1995 decreased 17.3% and 26.9%, respectively, over the same periods last year. This reflects the overall decrease in costs mainly related to the reallocation of resources into the developmental capitalized costs. Research and Development costs decreased 31.8% and 26.6%, respectively, for the six months and quarter ended June 30, 1995, from the corresponding periods in 1994. There was a substantial increase in development costs versus research and design which is reflected in the overall increase in the capitalized software costs. General and administrative expenses increased 13.4% and 28.2%, respectively, for the six months and quarter ended June 30, 1995, from the same periods in 1994. The main increase was due to the decrease of chargeable costs to software development to be capitalized. Interest income decreased 58.9% and 38.9%, respectively, for the six months and quarter ended Page 12 June 30, 1995, from the corresponding periods in 1994. Interest income decreased due to our use of cash over credit for some equipment needs. Expenditures for capital needs decreased the cash available for investment. Interest expense decreased 13.2% and 2.4%, respectively, for the six months and quarter ended June 30, 1995 over the same periods in 1994. A switch to operating leases versus capital leases, lower interest rates, and an increase in cash purchases of equipment resulted in the decrease. LIQUIDITY AND CAPITAL RESOURCES: FOR THE SIX MONTHS AND QUARTER ENDED JUNE 30, 1995 Operating activities provided the principal source of cash for the Company for the six months ended June 30, 1995. Receivables increased as the result of the change in the billing cycle to industry standard advance billing. The Company believes that the advanced billing cycle instituted during the first quarter will increase positive cash flow over the balance of this year. With regard to investing activities, the Company's investing activities were for purchases of equipment and costs associated with the development of software. Financing activities used cash principally for payments of a bank note and for capital and operating lease obligations. The Company expects existing cash and cash generated by operations will be sufficient to finance the Company's operations through the remainder of 1995. The Company believes general inflation does not materially impact its sales and operating results nor is it expected that the effect of existing tax reform will significantly affect the Company's future position, liquidity or operating results. Page 13 PC QUOTE, INC. PART II OTHER INFORMATION - ------------------------------------------------ ITEM 1. LEGAL PROCEEDINGS None. ITEM 2. CHANGES IN SECURITIES None. ITEM 3. DEFAULT UPON SENIOR SECURITIES None. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None. ITEM 5. OTHER INFORMATION None. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K None. Page 14 SIGNATURES ------------------------------------------------ In accordance with Section 13 or 15(d) of the Exchange Act, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PC QUOTE, INC. (Company) Date: August 9, 1995 --------------------------- By: --------------------------- Louis J. Morgan Chairman and Treasurer By: --------------------------- Richard F. Chappetto Chief Financial Officer
Page 15 EX-27 2 EX-27
5 6-MOS DEC-31-1995 JAN-01-1995 JUN-30-1995 1,274,212 0 1,125,979 54,466 0 2,722,034 6,099,852 3,587,018 9,617,276 3,211,851 0 6,992 0 0 5,593,240 9,617,276 0 6,422,765 0 2,609,987 2,958,168 43,516 113,009 704,886 0 704,886 0 0 0 704,886 .101 .101
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