-----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, OqQthSPXPq53+WRI7l/o42R9NIOqEMAuXProkYPHssrw75LP72F/utgvFUMNgU3h RWDWkhx+/IEH3ML0YhlatA== 0000897101-96-000623.txt : 19960813 0000897101-96-000623.hdr.sgml : 19960813 ACCESSION NUMBER: 0000897101-96-000623 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960812 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDAMICUS INC CENTRAL INDEX KEY: 0000833140 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 411533300 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-19467 FILM NUMBER: 96608519 BUSINESS ADDRESS: STREET 1: 15301 HGHWY 55 W CITY: PLYMOUTH STATE: MN ZIP: 55447 BUSINESS PHONE: 6125592613 10QSB 1 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 June 30, 1996 OR - ----- TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT - ----- OF 1934 For the transition period from ____________ to ___________ COMMISSION FILE NUMBER 0-19467 MEDAMICUS, INC. (Exact name of small business issuer in its charter) MINNESOTA 41-1533300 (State of Incorporation) (IRS Employer Identification No.) 15301 HIGHWAY 55 WEST, PLYMOUTH, MN 55447 (Address of principal executive office, including zip code) (612) 559-2613 (Registrant's telephone number, including area code) N/A Former name, former address and former fiscal year, if changed since last report 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, as amended, 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 ___ The number of shares of Registrant's Common Stock outstanding on June 30, 1996 was 4,060,774 Transitional Small Business Disclosure Format. Yes ____ No __X__ MEDAMICUS, INC. INDEX Page # PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS Balance Sheets as of June 30, 1996 and December 31, 1995 3 Statements of Operations for the three months and six months ended June 30, 1996 and 1995 4 Statement of Shareholders' Equity for the six months ended June 30, 1996 5 Statements of Cash Flows for the six months ended June 30, 1996 and 1995 6 Condensed Notes to the Financial Statements 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 8-10 PART II. OTHER INFORMATION ITEM 6(b). REPORTS ON FORM 8-K 10 MEDAMICUS, INC. BALANCE SHEETS (UNAUDITED)
JUNE 30, 1996 DECEMBER 31, 1995 ----------- ----------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,683,464 $ 143,273 Marketable securities 0 896,145 Accounts receivable 751,973 734,926 Inventories 942,794 785,768 Prepaid expenses and other assets 12,827 23,637 ----------- ----------- TOTAL CURRENT ASSETS 3,391,058 2,583,749 ----------- ----------- PROPERTY AND EQUIPMENT: Equipment 1,584,586 1,433,357 Office furniture, fixtures and computers 282,712 237,207 Leasehold improvements 330,441 326,211 2,197,739 1,996,775 Less accumulated depreciation and amortization (1,261,532) (1,100,723) ----------- ----------- NET PROPERTY AND EQUIPMENT 936,207 896,052 ----------- ----------- CERTIFICATE OF DEPOSIT, RESTRICTED 0 100,000 PATENT RIGHTS, NET OF ACCUMULATED AMORTIZATION OF $90,421 AND $77,296, RESPECTIVELY 40,983 53,198 =========== =========== TOTAL ASSETS $ 4,368,248 $ 3,632,999 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Note payable to bank $ 299,872 $ 0 Accounts payable 730,410 640,478 Accrued expenses 142,437 209,928 Notes payable to private investors 0 477,963 Current installments of note payable to customer 14,400 14,400 Current installments of capital lease obligations 32,853 39,609 TOTAL CURRENT LIABILITIES 1,219,972 1,382,378 ----------- ----------- LONG-TERM LIABILITIES: Note payable to customer, less current installments 10,022 17,222 Capital lease obligations, less current installments 10,602 12,508 TOTAL LONG-TERM LIABILITIES 20,624 29,730 ----------- ----------- TOTAL LIABILITIES 1,240,596 1,412,108 ----------- ----------- SHAREHOLDERS' EQUITY: Preferred stock-undesignated, authorized 1,000,000 shares, no shares issued or outstanding 0 0 Common stock-$.01 par value, authorized 9,000,000 shares, issued and outstanding 4,060,774 and 3,434,774 shares, respectively 40,608 34,348 Additional paid-in capital 8,529,797 6,871,803 Accumulated deficit (5,442,753) (4,685,260) ----------- ----------- TOTAL SHAREHOLDERS' EQUITY 3,127,652 2,220,891 =========== =========== TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 4,368,248 $ 3,632,999 =========== ===========
SEE ACCOMPANYING CONDENSED NOTES TO FINANCIAL STATEMENTS MEDAMICUS, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, 1996 JUNE 30, 1995 JUNE 30, 1996 JUNE 30, 1995 ---------------------------- ---------------------------- Sales $ 1,323,451 $ 1,373,892 $ 2,557,397 $ 2,783,810 Cost of sales 883,641 851,389 1,659,598 1,742,358 ----------- ----------- ----------- ----------- GROSS PROFIT 439,810 522,503 897,799 1,041,452 ----------- ----------- ----------- ----------- OPERATING EXPENSES: Research and development 271,205 229,657 467,318 474,838 Selling, general and administrative 594,055 356,313 1,153,289 823,855 ----------- ----------- ----------- ----------- TOTAL OPERATING EXPENSES 865,260 585,970 1,620,607 1,298,693 ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- OPERATING LOSS (425,450) (63,467) (722,808) (257,241) ----------- ----------- ----------- ----------- OTHER INCOME (EXPENSE): Interest expense (9,268) (30,323) (52,230) (62,121) Interest income 11,822 18,968 20,666 23,497 Other (1,369) (3,584) (3,121) (1,870) ----------- ----------- ----------- ----------- TOTAL OTHER INCOME (EXPENSE) 1,185 (14,939) (34,685) (40,494) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- NET LOSS $ (424,265) $ (78,406) $ (757,493) $ (297,735) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- NET LOSS PER SHARE $ (0.11) $ (0.02) $ (0.21) $ (0.09) ----------- ----------- ----------- ----------- ----------- ----------- ----------- ----------- WEIGHTED AVERAGE SHARES OUTSTANDING 3,772,532 3,268,309 3,608,576 3,218,921 ----------- ----------- ----------- -----------
SEE ACCOMPANYING CONDENSED NOTES TO FINANCIAL STATEMENTS MEDAMICUS, INC. STATEMENT OF SHAREHOLDERS' EQUITY SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
Common Stock Additional ------------------------ Paid In Accumulated Shares Amount Capital Deficit Total --------- ----------- ----------- ----------- ----------- BALANCES AT DECEMBER 31, 1995 3,434,774 $ 34,348 $ 6,871,803 $(4,685,260) $ 2,220,891 Stock options exercised 16,000 160 20,240 0 20,400 Common stock purchased by private investors, net of offering costs 610,000 6,100 1,637,754 0 1,643,854 Net loss for the six months ended June 30, 1996 0 0 0 (757,493) (757,493) --------- ----------- ----------- ----------- ----------- BALANCES AT JUNE 30, 1996 4,060,774 $ 40,608 $ 8,529,797 $(5,442,753) $ 3,127,652 --------- ----------- ----------- ----------- -----------
SEE ACCOMPANYING CONDENSED NOTES TO FINANCIAL STATEMENTS MEDAMICUS, INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, 1996 JUNE 30, 1995 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (757,493) $ (297,735) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 173,934 150,102 Interest accretion on notes payable to private investors 22,037 18,545 Interest added to investments 0 (14,550) Changes in operating assets and liabilities: Accounts receivable (17,047) (259,303) Inventories (157,026) 58,256 Prepaid expenses and other assets 10,810 11,339 Accounts payable 89,932 211,040 Accrued expenses (67,491) 68,220 ----------- ----------- NET CASH (USED IN) OPERATING ACTIVITIES (702,344) (54,086) ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment, net of retirements (200,964) (155,073) Additions to patent rights (910) (5,444) Purchase of available-for-sale marketable securities, including reinvestment of securities which matured 0 (248,744) Sale of available-for-sale marketable securities, including sales of securities which matured 996,145 0 ----------- ----------- NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 794,271 (409,261) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on capital lease obligations (8,662) (22,792) Proceeds from sales of stock, net of offering costs 1,643,854 477,193 Proceeds from exercise of stock options 20,400 17,340 Payments on notes payable to private investors (500,000) 0 Proceeds from note payable to bank 299,872 0 Payments on note payable to customer (7,200) (8,400) ----------- ----------- NET CASH PROVIDED BY FINANCING ACTIVITIES 1,448,264 463,341 ----------- ----------- ----------- ----------- NET INCREASE IN CASH AND CASH EQUIVALENTS 1,540,191 (6) ----------- ----------- ----------- ----------- CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 143,273 3,006 ----------- ----------- ----------- ----------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 1,683,464 $ 3,000 ----------- ----------- SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for interest $ 30,193 $ 43,577
SEE ACCOMPANYING CONDENSED NOTES TO FINANCIAL STATEMENTS CONDENSED NOTES TO FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED) 1. BASIS OF PRESENTATION The financial statements included in this Form 10-QSB have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, pursuant to such rules and regulations, although management believes the disclosures are adequate to make the information presented not misleading. These statements should be read in conjunction with the Company's annual report on Form 10-KSB for the year ended December 31, 1995, filed by the Company with the Securities and Exchange Commission. The financial statements presented herein as of June 30, 1996 and for the three and six months ended June 30, 1996 and 1995 reflect, in the opinion of management, all material adjustments consisting only of normal recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows for these interim periods. 2. COMMON STOCK Two former employees exercised their stock options for 16,000 shares of the Company's common stock at an exercise price of $1.275 per share, totaling $20,400. The Company also sold 610,000 shares of stock for $3.00 per share in a private stock offering on May 13, 1996, resulting in net proceeds to the Company of $1,643,854. These shares are subject to registration with the Securities and Exchange Commission after 90 days which will allow those who invested to trade their stock on the open market. 3. CASH EQUIVALENTS AND MARKETABLE SECURITIES Cash equivalents consist of highly liquid investments with original maturities of less than three months. The Company terminated its line of credit agreement to which the certificate of deposit (restricted) had been pledged. 4. INVENTORIES Inventories are stated at the lower of cost, determined on a first-in, first-out (FIFO) basis, or market. Inventories consist of the following: JUNE 30, 1996 DECEMBER 31, 1995 --------------- ------------------- Purchased parts and subassemblies $549,806 $419,314 Work in process 249,995 170,353 Finished goods 142,993 196,101 =============== =================== $942,794 $785,768 =============== =================== 5. NET LOSS PER SHARE Net loss per common share is determined by dividing the net loss by the weighted average number of shares of common stock outstanding. Common stock equivalents have been excluded from the calculation of the net loss per share since they are antidilutive. 6. NOTES PAYABLE In March 1996, the Company obtained a revolving line of credit with a financial institution. The line of credit availability is $1,200,000, subject to borrowing base requirements, bears interest at 3% over the financial institution's base rate, is secured by substantially all assets and expires in May, 1997. Advances on the line are at the discretion of the lender. The line of credit also contains a net worth covenant to which the Company will have to adhere. The Company used the line to retire the $500,000 notes payable to private investors which were due June 30, 1996. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion and analysis provides information that the Company's management believes is relevant to an assessment and understanding of the Company's results of operations and financial condition. This discussion should be read in conjunction with the accompanying financial statements and footnotes. RESULTS OF OPERATIONS SIX MONTHS ENDED JUNE 30, 1996 COMPARED TO SIX MONTHS ENDED JUNE 30, 1995 Total revenues were $2,557,397 for the six months ended June 30, 1996 compared to $2,783,810 for the six months ended June 30, 1995, representing a 8.1% decline. Sales of vessel introducers, primarily to Medtronic and Bard Access Systems under exclusive distribution arrangements, were $1,618,282 for the six months ended June 30, 1996, compared to $2,290,070 for the six months ended June 30, 1995. In both the first and second quarters of 1995, Medtronic made an unusually large purchase of vessel introducers in support of its launch of new pacemaker and defibrillator lines. Without this large purchase from Medtronic to build their inventory, sales during the comparable periods would have been approximately the same. Contract manufacturing sales were $197,533 for the six months ended June 30, 1996, compared to $182,353 for the six months ended June 30, 1995. The primary reason for the increase is that one of the Company's contract manufacturing customers placed orders on hold in the second quarter of 1995 in order to deplete excess inventory and to convert to new manufacturing facilities. The Company expects contract manufacturing revenues for the second half of 1996 to approximate those of the first half. The Company also does some contract research and development work periodically for Medtronic and realized sales of $127,888 for the six months ended June 30, 1996 compared to $5,373 for the six months ended June 30, 1995. This contract research and development work is not expected to be a continuous revenue item for the Company. Sales of the Company's fiber optic pressure sensing catheter and monitor transducer products were $613,694 for the six months ended June 30, 1996, compared to $306,014 for the six months ended June 30, 1995. Monitor sales increased 83.1% or $230,221 and catheter and accessory sales increased 267% or $77,459 over the comparable period. The Company continued to actively market the LuMax(TM) System into the gynecology office market during the second quarter, but postponed the launch of an upgraded version of its LuMax System to the urology market. The delay negatively impacted the anticipated sales for the LuMax System during the second quarter. The Company anticipates the launch of this product to occur in the third quarter. Total gross profit decreased from $1,041,452 for the six months ended June 30, 1995, to $897,799 for the six months ended June 30, 1996, a decline of 13.8%. Total gross profit as a percent of sales decreased from 37.4% to 35.1% in such periods. The gross profit percentage on vessel introducers and contract manufacturing totaled 41.7% for the six months ended June 30, 1996, compared to 46.1% in the six months ended June 30, 1995. The decrease in the gross profit percentage was primarily due to the lower sales to Medtronic, which resulted in the existing overhead being allocated over less units. The Company has also had some employee turnover in the introducer and contract manufacturing area which has resulted in additional training costs which have impacted the gross profits. For fiber optic products, the gross profit percent totaled 14.2% or $87,324 for the six month period ended June 30, 1996 compared to a loss of $100,354 for the six month period ended June 30, 1995. As the Company's revenues increase, the gross profit percent related to fiber optic products should improve as a result of greater efficiencies and more effective utilization of manufacturing capabilities. Total research and development expenditures were $467,318 or 18.2% of sales for the six months ended June 30, 1996, compared to $474,838 or 17.1% of sales for the six months ended June 30, 1995. The Company had anticipated a reduction in research and development expenditures in 1996 compared to 1995 but, due to unforeseen software development issues in completing the development work on the upgraded LuMax System, the overall expenditures remained relatively constant during the comparable periods. Selling, general and administrative expenses increased from $823,855 for the six months ended June 30, 1995 to $1,153,289 for the six months ended June 30, 1996. Sales and marketing expenses increased $266,787 for the six months ended June 30, 1996 over the comparable period in 1995 as the Company continued to invest heavily in sales and marketing activities in 1996 compared to 1995. The Company is now supporting approximately 77 independent sales representatives, attending many shows and conventions, and advertising in several key publications relating to the Ob/Gyn and urology markets. General and administrative expenses increased $62,647 for the first six months of 1996 over the comparable period in 1995. This increase is primarily due to additional spending on outside consultants, investor relations and salaries expense. The Company has contracted with an outside consulting firm to provide MIS support for the Company in 1996. The Company has also hired a public relations firm to assist with investor relations. Salary expense increased in the first six months of 1996 from the comparable period in 1995 because of one additional head count in the accounting department and general salary increases from last year. Interest expense decreased from $62,121 for the six months ended June 30, 1995 to $52,230 for the six months ended June 30, 1996. The decrease in interest expense is due to the Company retiring the $500,000 notes payable to investors in April 1996 which was at a 15% interest rate, resulting in smaller average outstanding borrowings. As a result, the Company incurred a net loss of $757,493 or $.21 per share for the six months ended June 30, 1996, compared to a net loss of $297,735 or $.09 per share for the six months ended June 30, 1995. THREE MONTHS ENDED JUNE 30, 1996 COMPARED TO THREE MONTHS ENDED JUNE 30, 1995 Total revenues were $1,323,451 for the three months ended June 30, 1996 compared to $1,373,892 for the three months ended June 30, 1995, representing a 3.7% decline. Sales of vessel introducers, primarily to Medtronic and Bard Access Systems under exclusive distribution arrangements, were $763,315 for the three months ended June 30, 1996, compared to $1,111,056 for the three months ended June 30, 1995. In the second quarter of 1995, Medtronic made an unusually large purchase of vessel introducers in support of its launch of new pacemaker and defibrillator lines. Without this large purchase from Medtronic to build their inventory, sales of vessel introducers during the comparable periods would have been approximately the same. Contract manufacturing sales were $77,784 for the three months ended June 30, 1996, compared to $54,032 for the three months ended June 30, 1995. Contract research and development sales were $127,888 for the three months ended June 30, 1996 compared to $0 for the three months ended June 30, 1995. These sales increases are primarily due to those factors discussed above. Sales of the Company's fiber optic pressure sensing catheter and monitor transducer products were $354,464 for the three months ended June 30, 1996, compared to $208,804 for the three months ended June 30, 1995. Monitor sales increased 56.8% or $106,854 and catheter and accessory sales increased 188% or 38,806 in the three months ended June 30, 1996 over the comparable period in 1995. As stated above, the Company's second quarter results were negatively impacted due to a delay in the release of the upgraded LuMax System. The Company is continuing to strengthen its sales and marketing efforts for these products and expects to see increased sales growth in the future. Total gross profit decreased from $522,503 for the three months ended June 30, 1995, to $439,810 for the three months ended June 30, 1996, a decline of 15.8%. Total gross profit as a percent of sales decreased from 38% in the three months ended June 30, 1995 to 33.2% in the comparable period in 1996. The gross profit percentage on vessel introducers and contract manufacturing totaled 40.7% in the second quarter of 1996, compared to 49.3% in the second quarter of 1995, primarily due to the factors discussed above. For fiber optic products, the gross profit percent totaled 12.8% or $45,247 in the second quarter of 1996 compared to a loss of $52,299 in the second quarter of 1995. As the Company's revenues for these products increase, the gross profit percentage should increase due to improved efficiencies. Total research and development expenditures were $271,205 or 20.5% of sales for the three months ended June 30, 1996, compared to $229,657 or 16.7% of sales for the three months ended June 30, 1995. The increase in research and development expenditures is primarily due to the additional work required in completing the development of the uroflow upgrade for the LuMax System. Selling, general and administrative expenses increased from $356,313 for the three months ended June 30, 1995 to $594,055 for the three months ended June 30, 1996. Sales and marketing expenses increased $177,473 and general and administrative expenses increased $60,269 in the second quarter of 1996 compared to the second quarter of 1995 primarily for the reasons discussed above. Interest expense decreased from $30,323 for the three months ended June 30, 1995 to $9,268 for the three months ended June 30, 1996 primarily due to the factors stated above. As a result, the Company incurred a net loss of $424,265 or $.11 per share for the three months ended June 30, 1996, compared to a net loss of $78,406 or $.02 per share for the three months ended June 30, 1995. LIQUIDITY AND CAPITAL RESOURCES Net cash used in operating activities for the six months ended June 30, 1996 was $702,344, consisting of a net loss of $757,493 less adjustments for depreciation and amortization of $173,934 and interest accretion of $22,037. In addition, cash was used to fund net changes in operating assets and liabilities of $140,822. The Company has experienced increased inventory in 1996 in anticipation of the sales growth of its LuMax System, and expects to see increases in accounts receivable and inventory levels as sales of these products continue to grow. Net cash provided by investing activities for the six months ended June 30, 1996 was $794,271. Marketable securities of $996,145 were sold and $200,964 of equipment was purchased during the period. Net cash provided by financing activities for the six months ended June 30, 1996 was $1,448,264. At the end of March 1996, the Company used its new revolving line of credit (described below) to retire the $500,000 notes payable to private investors and began to use the line for working capital. The Company had a balance due on the line of $299,872 as of June 30, 1996. Additionally, two former employees exercised stock options for 16,000 shares of the Company's common stock at an exercise price of $1.275 per share, totaling $20,400. The Company also sold 610,000 shares of stock at $3.00 per share in a private stock offering, netting $1,643,854 in proceeds. The Company also made principal debt payments totaling $15,862. As a result, the Company's cash and cash equivalents and marketable securities were $1,683,464 as of June 30, 1996 compared to $1,039,418 at December 31, 1995. Working capital increased from $1,201,371 as of December 31, 1995 to $2,171,086 as of June 30, 1996. In March 1996, the Company entered into a fifteen month agreement with a financial institution for a $1,200,000 revolving line of credit. The availability under the line is subject to borrowing base requirements, and advances are at the discretion of the lender. The agreement calls for interest at the rate of 3% over the financial institution's base rate with minimum interest due over the term of the agreement of $75,000. The line is secured by substantially all of the Company's assets. If sales estimates and working capital needs meet the Company's projections, the Company believes its available cash and investments, along with borrowing availability under its $1,200,000 line of credit will be sufficient to meet the Company's anticipated operating expenses and cash requirements for the foreseeable future. If the sales estimates are not realized or working capital requirements exceed those projected, the Company may need to secure additional capital or, if capital is not available, to curtail its marketing efforts. PART II - OTHER INFORMATION ITEM 6(B) - REPORTS ON FORM 8-K None SIGNATURE Pursuant to the requirements of Section 13 or 15(d) 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: MEDAMICUS, INC. Date: August 8, 1996 By: /s/ James D. Hartman President, Chief Executive Officer and Chief Financial Officer EX-27 2 FINANCIAL DATA SCHEDULE
5 6-MOS DEC-31-1996 JUN-30-1996 1,683,464 0 751,973 0 942,794 3,391,058 2,197,739 1,261,532 4,368,248 1,219,972 20,624 0 0 40,608 3,087,044 4,368,248 2,557,397 2,557,397 1,659,598 1,659,598 271,205 0 9,268 (424,265) 0 (424,265) 0 0 0 (424,265) (0.11) (0.11)
-----END PRIVACY-ENHANCED MESSAGE-----