-----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, PT6lHLehm3dhj22SXaGHu+5baKWmKEj8bQrlPv2d8nfkY/slb95RCnAeJO3cawtN VgmuqoK5WaBZeYynSN89QA== 0000849145-96-000016.txt : 19960624 0000849145-96-000016.hdr.sgml : 19960624 ACCESSION NUMBER: 0000849145-96-000016 CONFORMED SUBMISSION TYPE: 10QSB/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19960621 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDCROSS INC CENTRAL INDEX KEY: 0000849145 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISC HEALTH & ALLIED SERVICES, NEC [8090] IRS NUMBER: 592291344 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-17973 FILM NUMBER: 96584219 BUSINESS ADDRESS: STREET 1: 3227 BENNET ST N CITY: ST PETERSBURG STATE: FL ZIP: 33713 BUSINESS PHONE: 8135211793 MAIL ADDRESS: STREET 1: 3227 BENNET STREET NORTH CITY: ST PETERSBURG STATE: FL ZIP: 33713 10QSB/A 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB/A#1 (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1995 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 0-17973 MEDCROSS, INC. (Exact name of small business issuer as specified in its charter) FLORIDA 59-2291344 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 3227 Bennet Street North, St. Petersburg, Florida 33713 (Address of principal executive offices) (813) 521-1793 (Issuer's telephone number) 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 12 months (or for such shorter period that the issuer 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 issuer's classes of common equity, as of the latest practicable date. Class Outstanding at October 31, 1995 Common Stock, par value $0.007 1,751,243 Traditional Small Business Disclosure Format (Check One): Yes No X 1 PART I - FINANCIAL INFORMATION Item 1 - Financial Statements
MEDCROSS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (unaudited) Assets September 30 1995 ------------ Current Assets Cash and cash equivalents $ 78,692 Accounts receivable less allowance of $727,640 878,851 Inventory 798,839 Prepaid expenses 75,378 --------- Total current assets 1,831,760 --------- Property and equipment 3,388,737 Less accumulated depreciation 1,677,603 --------- Net property and equipment 1,711,134 --------- Intangible assets, net of amortization of $223,910 556,445 Other assets 70,945 --------- Total assets $ 4,170,284 ========= Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $ 545,258 Advance deposits received 191,735 Reserve for warranty liability 40,144 Note payable - related party 218,000 Note payable - other 400,000 Current portion of long-term debt 119,434 Current obligations under capital lease 219,007 --------- Total current liabilities 1,733,578 --------- Long-term debt 675,000 Minority equity interest in consolidated subsidiaries 378,843 Commitments and contingencies - Stockholders' equity Preferred stock 2,075,000 Common stock 12,244 Other stockholders' deficit ( 704,381) --------- Total stockholders' equity 1,382,863 --------- Total liabilities and stockholders' equity $ 4,170,284 =========
The accompanying notes are an integral part of these consolidated financial statements. 2
MEDCROSS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three Months Ended Nine Months Ended September 30 September 30 -------------------------- ------------------------- 1995 1994 1995 1994 ------------ ------------ ----------- ----------- Net operating revenue $ 607,014 $ 1,152,859 $ 2,482,866 $ 2,981,139 --------- --------- --------- --------- Cost of goods sold - equipment sales and service ( 46,601) 473,460 193,197 473,460 Salaries and benefits 262,787 319,885 903,205 928,937 Repairs and maintenance 78,673 76,800 233,161 238,931 Provision for doubtful accounts 18,444 43,135 342,089 99,507 Depreciation and amortization 113,901 122,722 348,594 368,689 Other operating expenses 341,950 335,921 956,486 939,367 --------- --------- --------- --------- Operating loss ( 162,140) ( 219,064) ( 493,866) ( 67,752) Interest expense 44,066 41,880 124,886 128,058 Other income ( 16,493) ( 7,023) ( 39,892) ( 24,540) Gain on sale of interest in unconsolidated subsidiary ( 20,500) - ( 20,500) - Equity in net income of unconsolidated subsidiary - 1,139 - 14,444 --------- --------- --------- --------- Loss before minority interest in net income (loss) of consolidated subsidiaries and income tax provision ( 169,213) ( 255,060) ( 558,360) ( 185,714) Minority interest in net income (loss) of consolidated subsidiaries 4,160 ( 22,394) ( 3,684) 16,123 --------- --------- --------- --------- Loss before income tax provision ( 173,373) ( 232,666) ( 554,676) ( 201,837) Income tax provision - ( 73,280) - ( 68,094) --------- --------- --------- --------- Net loss $( 173,373) $( 159,386) $( 554,676) $( 133,743) ========= ========= ========= ========= Loss per common and equivalent share after preferred dividends $( .12) $( .12) $( .37) $( .14) ========= ========= ========= ========= Weighted average common and equivalent shares outstanding 1,749,841 1,520,683 1,749,389 1,520,436 ========= ========= ========= =========
The accompanying notes are an integral part of these consolidated financial statements. 3
MEDCROSS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) Nine Months Ended September 30 -------------------------- 1995 1994 ---------- ------------ Cash provided (used) by operating activities $ 156,525 $( 414,598) ------- --------- Cash flows from investing activities Purchase of property and equipment ( 18,321) ( 41,488) Proceeds from sale of property and equipment 4,900 425 Proceeds from sale of interest in unconsolidated subsidiary 28,000 - Investment in unconsolidated subsidiary - ( 3,750) ------- --------- Net cash provided (used) by investing activities 14,579 ( 44,813) ------- --------- Cash flows from financing activities Proceeds of note payable - related party 218,000 - Proceeds (reduction) of note payable - other (151,000) 200,000 Reduction of long-term debt (280,997) ( 291,858) Reduction of capital lease obligations (182,589) ( 165,781) Issuance of common stock - 8 Additional paid-in capital - 263,391 Minority interest distributions ( 54,750) ( 36,267) ------- --------- Net cash used by financing activities (451,336) ( 30,507) ------- --------- Effect of foreign currency translation on cash flows ( 2,233) ( 87,306) ------- --------- Decrease in cash and cash equivalents (282,465) ( 577,224) Cash and cash equivalents at beginning of period 361,157 1,176,757 ------- --------- Cash and cash equivalents at end of period $ 78,692 $ 599,533 ======= ========= Supplemental cash flow information In February 1995 a holder of Class B Preferred Stock converted 9,350 shares into 227,714 shares of Common Stock.
The accompanying notes are an integral part of these consolidated financial statements. 4 MEDCROSS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Financial Statements In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair statement of (a) the results of operations for the three-month and nine-month periods ended September 30, 1995 and September 30, 1994, (b) the financial position at September 30, 1995, and (c) cash flows for the nine-month periods ended September 30, 1995 and September 30, 1994, have been made. The unaudited consolidated financial statements and notes are presented as permitted by Form 10-QSB. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted. The accompanying consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes of the Company for the fiscal year ended December 31, 1994. The results of operations for the nine-month period ended September 30, 1995 are not necessarily indicative of those to be expected for the entire year. Note 2 - Related Party Transactions The Company received advances from Mortgage Network International. The Company issued a promissory note bearing interest at one percent over the prime rate at Southwest Bank of Texas, N.A. with maturity of October 1, 1995. The Company's Vice Chairman/President has management control over Mortgage Network International. The principal balance due at September 30 is $218,000. Mortgage Network International has agreed to extend the term of the note to three years provided the Company makes monthly principal and interest payments beginning December 1, 1995. Note 3 -Earnings Per Common Share Earnings per common share are based upon the weighted average number of common shares outstanding and the dilutive effect of common stock equivalents consisting of stock options and convertible preferred stock. Fully diluted earnings per share are not presented because it approximates earnings per common share. Note 4 - Geographic Segment Information The Company's operations consist of providing diagnostic and clinical outpatient health care services domestically and the sale and service of used medical equipment in the People's Republic of China (PRC). The corporate office provides management and operational services for domestic outpatient health care services. The eliminations represent charges for these services to entities included in the consolidation. Financial information for the different geographic segments is as follows: Nine Months Ended Corporate/ September 30, 1995 Domestic China Management Eliminations Consolidated - ----------------------- ------------ ------------ ------------ ------------ ------------ Revenue $ 1,907,911 $ 337,889 $ 340,036 $( 102,970) $ 2,482,866 ========= ========= ========= ========= ========= Operating Profit (Loss) $ 258,469 $( 197,230) $( 452,135) $( 102,970) $( 493,866) ========= ========= ========= ========= ========= Identifiable Assets $ 3,106,345 $ 1,043,769 $ 167,384 $( 147,214) $ 4,170,284 ========= ========= ========= ========= ========= 5
Nine Months Ended Corporate/ September 30, 1994 Domestic China Management Eliminations Consolidated - ----------------------- ------------ ------------ ------------ ------------ ------------ Revenue $ 2,118,420 $ 443,600 $ 499,020 $( 79,901) $ 2,981,139 ========= ========= ========= ========= ========= Operating Profit (Loss) $ 607,388 $( 255,810) $( 339,429) $( 79,901) $( 67,752) ========= ========= ========= ========= ========= Identifiable Assets $ 3,854,289 $ 1,284,576 $ 488,766 $( 74,979) $ 5,552,652 ========= ========= ========= ========= =========
6 PART II - OTHER INFORMATION Item 6(a) - Exhibits 4(a) Series CS Warrant to purchase common shares of Medcross, Inc. 1/ 10(a) Consulting Agreement by Medcross, Inc., Kalo Acquisitions, L.L.C., and Jason H. Pollak. 2/ 10(b) Consulting Agreement, dated as of August 6, 1995, between the Company and Timothy R. Barnes. 1/ 10(c) Medcross, Inc. 1995 Director's Stock Option and Appreciation Rights Plan. 3/ 10(d) Medcross, Inc. 1995 Employee Stock Option and Appreciation Rights Plan. 3/ 11 Statement regarding computation of earnings per common share. PAGE 12 - ------------------------------------------- 1/ Incorporated by reference to the Company's registration statement on Form S-8, filed October 27, 1995 (File Number 33-63751). 2/ Incorporated by reference to the Company's registration statement on Form S-8, filed on October 27, 1995 (File Number 33-63749). 3/ Incorporated by reference to the Company's Proxy Statement filed on September 25, 1995 (File Number 0-17973). Item 6(b) - Reports on Form 8-K None. 10 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 thereunder duly authorized. MEDCROSS, INC. (Registrant) Date: November 14, 1995 By: /s/ HENRY TOH Henry Toh President (Acting Principal Financial Officer & Acting Principal Accounting Officer) EX-11 2
EXHIBIT 11 COMPUTATION OF EARNINGS PER COMMON SHARE Three Months Ended Nine Months Ended September 30 September 30 -------------------------- -------------------------- 1995 1994 1995 1994 ------------ ------------ ------------ ------------ Earnings per common and common equivalent share Net income (loss) available to common and equivalent shares $( 206,060) $( 189,709) $( 650,658) $( 216,482) ========= ========= ========= ========= Weighted average common shares outstanding 1,749,163 1,514,213 1,710,593 1,506,941 Adjustments Assumed conversion of Class B Variable Rate Cumulative Convertible Preferred Stock - 6,470 - 13,495 --------- --------- --------- --------- Total common and equivalent shares 1,749,841 1,520,683 1,749,389 1,520,436 ========= ========= ========= ========= Loss per common and equivalent share after preferred dividends $( .12) $( .12) $( .37) $( .14) ========= ========= ========= ========= Fully diluted earnings per common and common equivalent share Net income (loss) available to common and equivalent shares $( 206,060) $( 189,709) $( 650,658) $( 216,482) ========= ========= ========= ========= Weighted average common shares outstanding 1,749,163 1,514,213 1,710,593 1,506,941 Adjustments Assumed conversion of Class B Variable Rate Cumulative Convertible Preferred Stock - 6,470 - 13,495 --------- --------- --------- --------- Total common and equivalent shares 1,749,841 1,520,683 1,749,389 1,520,436 ========= ========= ========= ========= Loss per common and equivalent share after preferred dividends $( .12) $( .12) $( .37) $( .14) ========= ========= ========= =========
12 EX-27 3
5 THIS DOCUMENT CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MEDCROSS, INC. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S FORM 10-QSB FOR THE NINE MONTHS ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS. 9-MOS DEC-31-1995 SEP-30-1995 78692 0 1606491 727640 798839 75378 3388737 1677603 4170284 1733578 0 12244 0 2075000 (704381) 4170284 337889 2482866 193197 193197 2441446 342089 124886 (554676) 0 (554676) 0 0 0 (554676) (.37) (.37)
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