10QSB 1 usw3310210q.htm CURRENT REPORT ON FORM 10-QSB--MARCH 31, 2002 U.S. Wireless 03/31/02 HTML 10-QSB

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-QSB

[X] Quarterly Report under Section 13 or Section 15(d) of the Securities Exchange Act
of 1934 for the quarterly period ended March 31, 2002

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 0-22848

U.S. Wireless Data, Inc.
(Exact name of small business issuer as specified in its charter)

Delaware
(State of incorporation)

84-1178691
(IRS Employer Identification No.)

750 Lexington Avenue, 20th Floor
New York, NY 10022
(Address of principal executive offices, including zip code)

(212) 750-7766
(Registrant's Telephone Number, including area code)

Check whether the issuer (1) has 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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the past ninety days. Yes [X] No [ ]

As of April 30, 2002, there were outstanding 14,666,164 shares of the Registrant’s Common Stock ($0.01 par value per share).

Transitional Small Business Disclosure Format. Yes [ ] No [X]

U.S. WIRELESS DATA, INC.
TABLE OF CONTENTS

Part I — FINANCIAL INFORMATION Page

ITEM 1. Financial Statements

        Consolidated Balance Sheets as of
            March 31, 2002 and June 30, 2001................................     3

        Consolidated Statements of Operations for the three and nine months
            ended March 31, 2002 and 2001...................................     4

        Consolidated Statements of Stockholders' Equity for the nine
            months ended March 31, 2002.....................................     5

        Consolidated Statements of Cash Flows for the nine months ended
            March 31, 2002 and 2001.........................................     6

        Pro Forma Condensed Consolidated Statement of Operations for the
            nine months ended March 31, 2001................................     7

        Notes to Consolidated Financial Statements..........................     8-19

ITEM 2. Management's Discussion and Analysis of Financial
            Condition and Results of Operations.............................    19-44

Part II — OTHER INFORMATION

ITEM 1. Legal proceedings....................................................   44
ITEM 2. Changes in securities and use of proceeds............................   44
ITEM 3. Defaults upon senior securities......................................   44
ITEM 4. Submission of matters to a vote of security holders..................   44
ITEM 5. Other information....................................................   44
ITEM 6. Exhibits and Reports on Form 8-K ....................................   45

Part I — FINANCIAL INFORMATION

ITEM 1. Financial Statements

U.S. WIRELESS DATA, INC.
CONSOLIDATED BALANCE SHEETS

                                                                                    March 31,        June 30,
                                                                                      2002             2001
                                                                                    --------         -------
ASSETS                                                                            (Unaudited)
Current assets:
     Cash and cash equivalents ..............................................   $   6,175,000    $  18,205,000
     Accounts receivable, net of allowance for
        doubtful accounts of $134,000 and $55,000
        at March 31, 2002 and June 30, 2001, respectively ...................       1,040,000        1,515,000
     Inventory, net .........................................................       4,184,000        3,923,000
     Notes receivable .......................................................          88,000           87,000
     Other current assets ...................................................         616,000          472,000
                                                                                -------------    -------------
                Total current assets ........................................      12,103,000       24,202,000

Property and equipment, net .................................................       2,532,000        2,818,000
Segregated cash .............................................................         715,000          769,000
Intangible assets, net ......................................................      14,016,000       15,739,000
Other assets ................................................................          61,000           93,000
                                                                                -------------    -------------

                Total assets ................................................   $  29,427,000    $  43,621,000
                                                                                =============    =============

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
     Accounts payable .......................................................   $   1,868,000    $   2,258,000
     Accrued liabilities ....................................................       1,357,000        1,538,000
     Other current liabilities ..............................................          47,000          261,000
     Accrued restructuring expense, current portion .........................         371,000        1,000,000
     Obligation under capital lease, current portion ........................       1,104,000          793,000
     Purchase price payable, current portion ................................         466,000        2,557,000
                                                                                -------------    -------------

                Total current liabilities ...................................       5,213,000        8,407,000
                                                                                -------------    -------------

Deferred rent expense .......................................................         178,000          275,000
Accrued restructuring expense, less current portion .........................       1,543,000        1,400,000
Other liabilities, less current portion .....................................          47,000          109,000
Obligation under capital lease, less current portion ........................         177,000        1,074,000
Purchase price payable, less current portion ................................            --            455,000
                                                                                -------------    -------------

                Total liabilities ...........................................       7,158,000       11,720,000
                                                                                -------------    -------------
Commitments and contingencies

Stockholders' equity:
   Preferred stock, 25,000,000 shares authorized:
       Series C convertible, at $.01 par value, liquidation value
           $10.00 per share, aggregating $40,893,000 and $55,145,000
           at March 31, 2002 and June 30, 2001, respectively; 8,450,000
           shares authorized, 4,089,325 and 5,514,475 issued and
           outstanding at March 31, 2002 and June 30, 2001, respectively ....          41,000           55,000
   Common stock, 200,000,000 shares authorized at $.01 par value;
       14,567,832 and 11,478,419 shares issued and outstanding at
       March 31, 2002 and June 30, 2001, respectively .......................         145,000          115,000
   Additional paid-in capital ...............................................     143,376,000      142,873,000
   Unearned compensation ....................................................      (1,517,000)      (2,639,000)
   Accumulated deficit ......................................................    (119,776,000)    (108,503,000)
                                                                                -------------    -------------

                Total stockholders' equity ..................................      22,269,000       31,901,000
                                                                                -------------    -------------


                Total liabilities and stockholders' equity ..................   $  29,427,000    $  43,621,000
                                                                                =============    =============