-----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, MSR84D7p7ZSGjoBGvSC4f6qOxED8fpQv+5CbAWIDCvvwR3gEtgyDbid20NTFGMQO 2ehYNqMdBRCzL2AKSO4VOw== 0000932440-97-000143.txt : 19970512 0000932440-97-000143.hdr.sgml : 19970512 ACCESSION NUMBER: 0000932440-97-000143 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970509 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDJET INC CENTRAL INDEX KEY: 0000932265 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 223283541 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-11765 FILM NUMBER: 97599812 BUSINESS ADDRESS: STREET 1: 1090 KING GEORGE POST RD STREET 2: STE 301 CITY: EDISON STATE: NJ ZIP: 08837 BUSINESS PHONE: 9087383990 MAIL ADDRESS: STREET 1: 1090 KING GEORGES POST ROAD STREET 2: SUITE 301 CITY: EDISON STATE: NJ ZIP: 08837 10QSB 1 ========================================================================== U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------ FORM 10-QSB (Mark One) |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 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: 1-11765 MEDJET INC. (Exact name of Small Business Issuer as Specified in its Charter) DELAWARE 22-3283541 (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 1090 KING GEORGES POST ROAD, SUITE 301 EDISON, NEW JERSEY 08837 (Address of Principal Executive Offices) (908) 738-3990 (Registrant's Telephone Number, Including Area Code) - ------------------------------------------------------------------------------- (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) 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 90 days. |X| Yes |_| No Common Stock, par value $.001 per share, outstanding as of April 30, 1997: 3,648,666 shares Transitional Small Business Disclosure format: |_| Yes |X| No ================================================================================ MEDJET INC. INDEX PART I. FINANCIAL INFORMATION PAGE NO. - ------------------------------ -------- ITEM 1. Financial Statements Condensed Interim Balance Sheet as of March 31, 1997 (Unaudited) ........................................................ 3 Condensed Interim Statements of Operations for the Three Months Ended March 31, 1997 and 1996 and the Period From December 16, 1993 (Date of Inception) to March 31, 1997 (Unaudited) ...................................... 4 Condensed Interim Statements of Cash Flows for the Three Months Ended March 31, 1997 and 1996 and the Period from December 16, 1993 (Date of Inception) to March 31, 1997 (Unaudited) ...................................... 5 Notes to Condensed Interim Financial Statements .................... 6 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ................................ 7 PART II. OTHER INFORMATION - -------------------------- ITEM 6. Exhibits and Reports on Form 8-K ................................... 8 SIGNATURES -2- PART I - FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS MEDJET INC. (A Development Stage Company) Condensed Interim Balance Sheet March 31, 1997 (Unaudited) ASSETS CURRENT ASSETS: - --------------- Cash and cash equivalents $3,616,893 Prepaid expenses 27,668 ----------------- 3,644,561 ----------------- PROPERTY, PLANT & EQUIPMENT - - ----------------------------- Less accumulated depreciation of $120,290 188,854 ----------------- ORGANIZATION COSTS - - -------------------- Less accumulated amortization of $22,006 15,381 ----------------- PATENTS AND TRADEMARKS - - ------------------------ Less accumulated amortization of $3,327 52,784 ----------------- SECURITY DEPOSITS 7,650 - ----------------- ----------------- DEFERRED TAX ASSET 139,500 - ------------------ ----------------- Total Assets $4,048,730 ================= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 87,345 Accrued interest payable 10,380 Income taxes payable 150 Notes payable - officer 165,000 ----------------- Total Liabilities 262,875 ----------------- STOCKHOLDERS' EQUITY: - -------------------- Common stock, $.001 par value, 7,000,000 shares authorized, 3,682,455 shares issued and 3,648,666 shares outstanding 3,682 Preferred stock, $.01 par value, 1,000,000 shares authorized, no shares issued - Additional paid-in capital 4,870,880 Accumulated deficit (including deficit accumulated during development stage of $2,643,218 of which $1,556,211 was applied to additional paid in capital upon conversion from an "S" to a "C" corporation) (1,087,007) Less: Treasury stock, 33,789 shares, at cost (1,700) ----------------- Total Stockholders' Equity 3,785,855 ----------------- Total Liabilities and Stockholders' Equity $4,048,730 ================= See Notes to the Condensed Interim Financial Statements. -3-
MEDJET INC. (A Development Stage Company) Condensed Interim Statements of Operations For The Three Months Ended March 31, 1997 and 1996 And The Period From December 16, 1993 (Date of Inception), to March 31, 1997 (Unaudited) Three Months Ended Period from March 31, December 16, ------------------------------- 1993 (Inception) to 1997 1996 March 31, 1997 -------------- -------------- ----------------- REVENUES: - --------- Net Sales $ - $ - $ - Cost of Sales - - - --------------- --------------- ---------------- Gross Profit - - - --------------- --------------- ---------------- EXPENSES: - --------- Research, development, general and administrative 589,937 166,956 2,897,837 --------------- --------------- ---------------- Total costs and expenses 589,937 166,956 2,897,837 --------------- --------------- ---------------- Loss from operations (589,937) (166,956) (2,897,837) OTHER INCOME (EXPENSE): - ----------------------- Interest income 49,140 - 151,105 Interest expense (3,268) (5,368) (35,336) --------------- --------------- ---------------- 45,872 (5,368) 115,769 --------------- --------------- ---------------- LOSS BEFORE PROVISION FOR (BENEFIT FROM) INCOME TAX (544,065) (172,324) (2,782,068) Provision for (benefit from) income tax (139,500) 401 (138,850) --------------- --------------- ---------------- NET LOSS $ (404,565) $ (172,725) $(2,643,218) =============== =============== ================ Net Loss Per Share $ (0.11) $ (0.07) $ (1.01) =============== =============== ================ Weighted Average Common Shares Outstanding 3,648,666 2,450,312 2,607,780 =============== =============== ================ See Notes to the Condensed Interim Financial Statements. -4- MEDJET INC. (A Development Stage Company) Condensed Interim Statements of Cash Flows For The Three Months Ended March 31, 1997 and 1996 And The Period From December 16, 1993 (Date of Inception), to March 31, 1997 (Unaudited) For the Three Months Ended March 31, Period from -------------------------------------- December 16, 1993 (Inception) to 1997 1996 March 31, 1997 ---------------- ----------------- -------------------- Cash Flows from Operating Activities $ (451,000) $(174,687) $(2,427,388) Cash Flows from Investing Activities (174,092) (18,314) (549,792) Cash Flows from Financing Activities - 200,000 6,594,073 --------------- ----------------- ------------------- Net Increase (Decrease) in Cash and Cash Equivalents (625,092) 6,999 3,616,893 Cash and Cash Equivalents - Beginning of Period 4,241,985 57,678 - --------------- ----------------- ------------------ Cash and Cash Equivalents - End of Period $3,616,893 $ 64,677 $ 3,616,893 =============== ================= ================== Supplemental Disclosures of Non-Cash Financing Activities: Increase in Accounts Payable for Accrual of Deferred Charges $ - $ 120,717 $ 156,980 ================ ================= ================== See Notes to the Condensed Interim Financial Statements.
-5- MEDJET INC. (A DEVELOPMENT STAGE COMPANY) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOTE A - NATURE OF ORGANIZATION AND BASIS OF PRESENTATION: (1) NATURE OF ORGANIZATION: ---------------------- Medjet Inc. (the "Company") is a development stage company incorporated in the State of Delaware on December 16, 1993. The Company was organized as a medical device company with the goal of developing, manufacturing and selling new cutting, drilling, layer removal and shaping tools for a variety of surgical procedures. The core technology is based on small-diameter, fluid or ice jets moving at high speeds. The Company believes that such jets will bring new surgical capability and performance to the clinic or operating room. The initial product area is devices for surgical use in ophthalmology. (2) BASIS OF PRESENTATION: --------------------- The Condensed Interim Financial Statements included herein 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. The Condensed Interim Financial Statements included herein reflect, in the opinion of management, all adjustments (consisting primarily only of normal recurring adjustments) necessary to present fairly the results for the interim periods. The results of operations for the three months ended March 31, 1997 are not necessarily indicative of results to be expected for the entire year ending December 31, 1997. NOTE B - INITIAL PUBLIC OFFERING: On August 14, 1996, the Company consummated its initial public offering (the "Offering") and, accordingly, issued and sold to the public 1,071,429 Units (the "Units"), each Unit consisting of one share of common stock, $.001 par value, of the Company (the "Common Stock"), and one redeemable Common Stock Purchase Warrant (the "Warrants") to purchase one share of Common Stock at $10.00 for a period of 24 months commencing on November 6, 1996. The Units became separable on November 6, 1996, and the Common Stock and the Warrants began trading on November 8, 1996. In conjunction with an option granted to the underwriter of the Offering to purchase additional Units solely to cover over-allotments from the Offering, the Company issued and sold an additional 160,714 Units on September 13, 1996. The proceeds from these transactions (amounting to approximately $6 million) were used, in part, to repay outstanding indebtedness of approximately $550,000 and legal, accounting and other expenses (totaling approximately $500,000) associated with the Offering; the balance (to be used to fund future operations, research and development) was invested in short-term money market instruments. In connection with the Offering, the Company increased the number of shares of Common Stock it is authorized to issue to 7,000,000 and, immediately prior to the Offering, effected a 1.987538926-to-1 stock split of the then outstanding Common Stock. -6- NOTE C - NET LOSS PER SHARE: Net loss per share is computed by dividing net loss by the weighted average number of shares of Common Stock outstanding during the period, after giving effect to the 1.987538926-to-1 stock split of the Common Stock explained above. Common stock equivalents have not been included in this computation as the effect would be anti-dilutive. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS THIS QUARTERLY REPORT ON FORM 10-QSB CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. ACTUAL RESULTS, EVENTS AND CIRCUMSTANCES COULD DIFFER MATERIALLY FROM THOSE SET FORTH IN SUCH STATEMENTS DUE TO VARIOUS FACTORS. GENERAL Medjet Inc. (the "Company"), formed in December 1993, is engaged in the research and development of medical technology, with an initial emphasis on corneal surgical technology and equipment. The Company is a development stage company. RESULTS OF OPERATIONS The Company has not yet initiated sales of its products and, consequently, had no revenues during the three months ended March 31, 1997. Total costs and expenses during the three months ended March 31, 1997 increased by $422,981 (253%) to $589,937 from $166,956 for the comparable period of 1996. This was primarily due to the net increase in staff (from seven full-time and one part-time employees to fifteen full-time employees) and an increase in professional fees and consultant costs as the Company continued its research and development activities. Expenses were also higher during the 1997 period due to increased purchases for materials, testing and analysis and higher occupancy costs (reflecting additional office and laboratory space assumed on April 1, 1996). Other income and expense for the three months ended March 31, 1997 shows net interest income of $45,872 compared to a $5,368 expense for the comparable period of 1996. This reflects interest income earned on the Company's short-term investments, reduced by interest charges on short-term loans made to the Company during 1996. These loans were substantially repaid during the three months ended September 30, 1996 (more fully described under the caption, "Initial Public Offering," following). LIQUIDITY AND CAPITAL RESOURCES From its inception until its initial public offering (the "Offering"), the Company's liquidity requirements were met through private sales of the Company's common stock. During the fourth quarter of 1995, in order to continue to fund its operations, the Company obtained five loans from its president in the aggregate amount of $150,000. Additional loans were obtained during 1996 from two of the Company's directors ($50,000 from each such director during the first quarter), from the Company's president ($165,000 during the second quarter), and, in connection with the Offering, from an affiliate of the underwriter of the Offering ($100,000 during each of the first and second quarters). During the third quarter of 1996, prior to the Offering, an additional $100,000 was borrowed from a stockholder of the Company. All loans -7- made by persons other than the Company's president were repaid during the third quarter of 1996, following the Offering, and all loans except for two loans (totalling $165,00) made by the Company's president were repaid during the fourth quarter of 1996. As a result of the Offering, the Company's liquidity position improved significantly. The Company anticipates that its current cash and cash equivalents, as well as projected cash flows from operations, will be sufficient to cover working capital and capital equipment needs for at least the next 12 months. INITIAL PUBLIC OFFERING On August 14, 1996, the Company consummated the Offering and, accordingly, issued and sold to the public 1,071,429 Units (the "Units"), each Unit consisting of one share of common stock, $.001 par value of the Company (the "Common Stock"), and one redeemable Common Stock Purchase Warrant (the "Warrants") to purchase one share of Common Stock at $10.00 for a period of 24 months commencing on November 6, 1996. The Units became separable on November 6, 1996 and the Common Stock and the Warrants began trading on November 8, 1996. In conjunction with an option granted to the underwriter of the Offering to purchase additional Units solely to cover over-allotments from the Offering, the Company issued and sold an additional 160,714 Units on September 13, 1996. The proceeds from these transactions (amounting to approximately $6 million) were used, in part, to repay outstanding indebtedness of approximately $550,000 and legal, accounting and other expenses (totaling approximately $500,000) associated with the Offering; the balance (to be used to fund future operations, research and development) was invested in short-term money market instruments. In connection with the Offering, the Company increased the number of shares of Common Stock it is authorized to issue to 7,000,000 and, immediately prior to the Offering, effected a 1.987538926-to-1 stock split of the then outstanding Common Stock. PART II - OTHER INFORMATION --------------------------- Item 6. EXHIBITS AND REPORTS ON FORM 8-K. -------------------------------- (a) EXHIBITS 27 Financial Data Schedule (b) REPORTS ON FORM 8-K No Report on Form 8-K was filed during the quarter for which this Quarterly Report on Form 10-QSB is filed. -8- 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 thereunto duly authorized. Dated: May 9, 1997 MEDJET INC. -------------------------------------- (Registrant) /S/ EUGENE I. GORDON -------------------------------------- Eugene I. Gordon President and Chief Executive Officer /S/ THOMAS M. HANDSCHIEGEL -------------------------------------- Thomas M. Handschiegel Chief Financial Officer and Chief Accounting Officer EXHIBIT INDEX - ------------- Exhibit NUMBER DESCRIPTION ------- ----------- 27 Financial Data Schedule -10- EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH 31, 1997 (UNAUDITED) FINANCIAL STATEMENTS OF MEDJET INC. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1 3-MOS DEC-31-1997 MAR-31-1997 3,616,893 0 0 0 0 3,644,561 309,144 120,290 4,048,730 262,875 165,000 0 0 3,682 3,782,173 4,048,730 0 0 0 0 589,937 0 3,268 (544,065) (139,500) (404,565) 0 0 0 (404,565) (.11) (.11)
-----END PRIVACY-ENHANCED MESSAGE-----