-----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, RBZy545NScyAfcYcmv/bB5bd2FUJsQCNOku1Rjx9YhZBztXu2g8Jg3c4iOaPn1Dm ndWnsus0GWra8ukObFxWaA== 0001047469-98-006653.txt : 19980218 0001047469-98-006653.hdr.sgml : 19980218 ACCESSION NUMBER: 0001047469-98-006653 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980217 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: NUMED SURGICAL INC CENTRAL INDEX KEY: 0000921878 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HEALTH SERVICES [8000] IRS NUMBER: 341755390 STATE OF INCORPORATION: NV FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-24362 FILM NUMBER: 98543320 BUSINESS ADDRESS: STREET 1: 6505 ROCKSIDE RD STREET 2: STE 425 CITY: INDEPENDENCE STATE: OH ZIP: 44131 BUSINESS PHONE: 2165736522 MAIL ADDRESS: STREET 1: 6505 ROCKSIDE RD STREET 2: STE 425 CITY: INDEPENDENCE STATE: OH ZIP: 44131 10QSB 1 FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended December 31, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 0-24362 NUMED SURGICAL, INC. (Exact name of small business issuer in its charter) STATE OF NEVADA 34-1755390 --------------- ----------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 7270 Sawgrass Point Drive, Pinellas Park, FL 33782 -------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Issuer's telephone number, including area code: (813) 524-3227 Securities registered pursuant to Section 12(b) of the Act: (Title of each class) (Name of each exchange on which registered) None Not applicable Securities registered pursuant to Section 12(g) of the Act: Common stock, Par value $.001 per share --------------------------------------- (Title of Class) Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 outstanding of the Issuer's common stock at $.001 par value as of February 16, 1998, was 8,775,685. Form 10-QSB 1 NUMED SURGICAL, INC. STATEMENTS OF NET DEFICIENCY IN LIQUIDATION (UNAUDITED)
DECEMBER 31, 1997 MARCH 31, 1997 ----------------- -------------- ASSETS Current assets: Cash $ 9,638 35,341 Accounts receivable 13,270 63,322 Allowable for bad debts (13,270) (16,370) Inventories 8,651 8,272 Prepaid expenses and other assets 300 300 --------- -------- Total assets $ 18,589 90,865 --------- -------- --------- -------- LIABILITIES AND NET DEFICIENCY Current liabilities: Accounts payable $ 21,728 32,708 Accrued expenses 16,437 14,760 Due to AMATECH 13,008 47,695 --------- -------- Total current liabilities 51,173 95,163 --------- -------- Net deficiency in liquidation, attribute to 8,775,685 shares $ (32,584) (4,298) --------- -------- --------- --------
See notes to financial statements. 2 NUMED SURGICAL, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 1997 1996 --------- --------- Net sales $ - 145,118 Cost of goods sold - 65,803 --------- --------- Gross profit (loss) - 79,315 Selling, general and administrative expenses: Salary and benefits - 25,348 Professional fees 2,024 9,132 Travel and entertainment - 2,348 Occupancy - 2,626 Advertising and marketing - 4,552 Shareholder relations - 1,819 Office expense 848 3,660 Depreciation and amortization - 8,041 --------- --------- Total selling, general and administrative expenses 2,872 57,526 --------- --------- Operating income (loss) (2,872) 21,789 Other income (expense): Interest expense - (1,590) --------- --------- Total other income (expense) - (1,590) --------- --------- Net income (loss) $ (2,872) 20,199 --------- --------- --------- --------- Net loss per share $ (0.00) (0.00) --------- --------- --------- --------- Shares used in computing per share information 8,775,685 8,775,685 --------- --------- --------- ---------
See notes to financial statements. 3 NUMED SURGICAL, INC. STATEMENTS OF OPERATIONS (UNAUDITED)
NINE MONTHS ENDED DECEMBER 31, 1997 1996 ---------- --------- Net sales $ 3,918 376,133 Cost of goods sold 8,109 207,182 --------- --------- Gross profit (loss) (4,191) 168,951 Selling, general and administrative expenses: Salary and benefits - 88,084 Professional fees 14,024 18,273 Travel and entertainment - 6,858 Occupancy 6,432 8,090 Advertising and marketing - 17,445 Shareholder relations - 3,286 Office expense 1,024 14,401 Depreciation and amortization - 25,610 Other 5,716 - --------- --------- Total selling, general and administrative expenses 27,196 182,047 --------- --------- Operating loss (31,387) (13,096) Other income (expense): Interest income - 3 Interest expense - (5,140) Bad debt recovery 3,101 - --------- --------- Total other income (expense) 3,101 (5,137) --------- --------- Net loss $ (28,286) (18,233) --------- --------- --------- --------- Net loss per share $ (0.00) (0.00) --------- --------- --------- --------- Shares used in computing per share information 8,775,685 8,775,685 --------- --------- --------- ---------
See notes to financial statements. 4 NUMED SURGICAL, INC. STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED DECEMBER 31, 1997 1996 --------- ------- Cash flows from operating activities: Net loss $ (28,286) (18,233) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization - 25,610 Increase (decrease) in cash due to net changes in operating assets and liabilities: Accounts receivable 46,952 (9,862) Inventories (379) 16,151 Prepaid expenses and other current assets - (11,685) Accounts payable (10,980) (1,201) Accrued expenses (33,010) (23,596) --------- ------- Net cash provided by (used in) operating activities (25,703) (22,816) --------- ------- Cash flows from investing activities - Purchase of intangibles - (2,870) Purchase of property and equipment - 169 --------- ------- Net cash used in investing activities - (2,701) --------- ------- Cash flows from financing activities - Proceeds from short-term borrowings - 23,000 --------- ------- Decrease in cash (25,703) (2,517) Cash at beginning of period 35,341 7,229 --------- ------- Cash at end of period $ 9,638 4,712 --------- ------- --------- -------
See notes to financial statements. 5 NUMED SURGICAL, INC. STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) NINE MONTHS ENDED DECEMBER 31, 1997 AND YEAR ENDED MARCH 31, 1997 (UNAUDITED)
Common stock Net assets ------------ Paid-in Accumulated (deficiency) in Shares Value capital deficit Total liquidation ---------- -------- --------- ------------- ---------- ----------------- Balance at March 31, 1996 8,775,685 $ 8,776 473,222 (392,939) 89,059 - Net loss - - - (93,357) (93,357) - --------- -------- --------- --------- -------- ---------- Balances at March 31, 1997 before liquidation basis of accounting 8,775,685 8,776 473,222 (486,296) (4,298) - Changes in basis of accounting - (8,776) (473,222) 486,296 4,298 (4,298) --------- -------- --------- --------- -------- --------- Balances at March 31, 1997 after the liquidation basis of accounting 8,775,685 - - - - (4,298) Net loss - - - - - (28,286) --------- -------- --------- --------- -------- --------- Balances at December 31, 1997 8,775,685 $ - - - - (32,584) --------- -------- --------- --------- -------- --------- --------- -------- --------- --------- -------- ---------
See notes to financial statements. 6 NUMED SURGICAL, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1997 NOTE A - BASIS OF PRESENTATION GENERAL: The accompanying interim financial statements are unaudited, but reflect all adjustments which are, in the opinion of the Company's management necessary to present fairly the financial position as of December 31, 1997 and the results of operations and cash flows for the nine months ended December 31, 1996 and 1997. The results for the nine months ended December 31, 1997 are not necessarily indicative of results to be expected for the full year. References should be made to the Company's Form 10-KSB for the year ended March 31, 1997, for additional disclosure. ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION: The following is an analysis of the operations of NuMed Surgical for the three months ended December 31, 1997 and 1996 and should be read in conjunction with the Company's financial statements that appear elsewhere in this report. RESULTS OF OPERATIONS: The Company ceased operations on April 1, 1997 and liquidated the "patient positioning" assets. The Company ceased operations due to continued losses caused by increased competition and the loss of exclusivity of patient positioning products. Also, the Company was never able to find an acceptable industry partner to enter into a joint venture on the Liftmate Product which was acquired in 1995. The Company did not have adequate internal resources to pursue the "Liftmate" market on its own. The "patient positioning" product line was where most of the sales of the Company were coming from since the inception of the Company. The Company had no sales activity for the three months ended December 31, 1997. This decrease is due to the fact that the Company ceased operations. The Company's net loss of $2,872 for the three months ended December 31, 1997 was due to the cessation of operations while the comparable period in 1996 resulted in net income of $20,199. The net loss for the nine month period ended December 31, 1997 was $28,286 compared to a net loss of $18,233 for the comparable period in 1996. 7 NUMED SURGICAL, INC. NOTES TO FINANCIAL STATEMENTS FINANCIAL POSITION, LIQUIDITY AND CAPITAL RESOURCES: The Company's cash and cash equivalents decreased to $9,638 at December 31, 1997 from $35,341 at March 31, 1997, which is a net increase of $25,793 resulting mostly from liquidation of assets, net of the payment of liquidation. 8 PART II: OTHER INFORMATION ITEMS 1 - 5: Not Applicable ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K a. Exhibits: None b. Reports on Form 8-K: None 9 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. Date: February 16, 1998 /s/ JUGAL K. TANEJA ___________________________________ JUGAL K. TANEJA CEO, Chief Accounting Officer and Director 10 EX-27 2 EXHIBIT 27 FDS
5 9-MOS MAR-31-1998 DEC-31-1997 9638 0 13270 (13270) 8651 18589 0 0 18589 51173 0 0 0 0 0 (32584) 0 0 0 0 2872 0 0 (2872) 0 0 0 0 0 (2872) 0 0
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