FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended March 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
Commission file number 000-22083
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GLOBAL MED TECHNOLOGIES, INC.
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(Exact name of small business issuer as specified in its charter)
COLORADO 84-1116894
------------------------------ -------------------------------
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
12600 West Colfax, Suite C-420, Lakewood, Colorado 80215
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(Address of principal executive offices)
(303) 238-2000
-------------------------
(Issuer's telephone number)
Not Applicable
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(Former name, former address and former fiscal year,
if changed since last report)
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 registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
Yes [X] No [ ]
As of May 15, 2000, 12,341,786 shares of the issuer's Common Stock were
outstanding.
Transitional Small Business Disclosure Format Yes [ ] No [X]
<PAGE>
GLOBAL MED TECHNOLOGIES, INC.
FORM 10-QSB
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
TABLE OF CONTENTS
PAGE NO.
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
a. Unaudited Consolidated Balance Sheets as of March 31, 2000
and December 31, 1999.......................................... 3
b. Unaudited Consolidated Statements of Operations for the
three months ended March 31, 2000 and 1999..................... 5
c. Unaudited Consolidated Statement of Stockholders' Deficit
for the three months ended March 31, 2000...................... 6
d. Unaudited Consolidated Statements of Cash Flows for the three
months ended March 31, 2000 and 1999........................... 7
e. Notes to Unaudited Financial Statements....................... 9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations................................. 12
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits....................................................... 14
b. Reports on Form 8-K............................................ 15
Signatures................................................................... 15
2
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, December 31,
2000 1999
--------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ........................................................ $ 387 330
Accounts receivable-trade, net of allowance for uncollectible accounts
of $50 at March 31, 2000 and December 31, 1999, respectively ................. 368 445
Accrued revenues, net of allowance for uncollectible accounts of
$15 at March 31, 2000 and December 31, 1999 .................................. 481 324
Prepaid expenses and other assets ................................................ 443 66
-------- --------
Total current assets ................................................................ 1,679 1,165
EQUIPMENT, FURNITURE AND FIXTURES, AT COST:
Furniture and fixtures ........................................................... 167 167
Machinery and equipment .......................................................... 306 306
Computer hardware and software ................................................... 1,596 1,583
-------- --------
2,069 2,056
Less accumulated depreciation and amortization ................................... (1,699) (1,564)
-------- --------
Net equipment, furniture and fixtures ............................................... 370 492
DEFERRED FINANCING COSTS,
Net of accumulated amortization of $10,969 and $10,853 at
March 31, 2000 and December 31, 1999, respectively ............................... 184 300
CAPITALIZED SOFTWARE DEVELOPMENT COSTS,
net of accumulated amortization of $1,291 and $1,126 at
March 31, 2000 and December 31, 1999, respectively ............................... 1,630 1,566
OTHER ASSETS ........................................................................ 378 65
-------- --------
Total assets ........................................................................ $ 4,241 3,588
======== ========
See accompanying notes to unaudited consolidated financial statements.
3
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<CAPTION>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(In thousands)
March 31, December 31,
2000 1999
--------- ------------
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable ................................................................. $ 195 303
Accrued expenses ................................................................. 677 808
Accrued payroll .................................................................. 98 87
Accrued compensated absences ..................................................... 408 412
Noncompete accrual ............................................................... 35 35
Deferred revenue ................................................................. 1,558 1,502
Financing agreements, related party .............................................. 5,100 --
Current portion of capital lease obligations ..................................... 123 145
-------- --------
Total current liabilities ........................................................... 8,194 3,292
CAPITAL LEASE OBLIGATIONS, less current portion ..................................... 171 179
FINANCING AGREEMENTS, RELATED PARTY, less current portion ........................... -- 4,400
-------- --------
Total liabilities ................................................................... 8,365 7,871
-------- --------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT:
Preferred stock, $.01 par value: Authorized shares - 10,000;
none issued or outstanding .................................................... -- --
Common stock, $.01 par value: Authorized shares - 40,000;
issued and outstanding shares - 12,182 and 11,638 at March 31, 2000
and December 31, 1999, respectively ........................................... 122 116
Additional paid-in capital ....................................................... 28,006 27,158
Accumulated deficit .............................................................. (32,252) (31,557)
-------- --------
Total stockholders' deficit ......................................................... (4,124) (4,283)
-------- --------
Total liabilities and stockholders' deficit ......................................... $ 4,241 3,588
======== ========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
4
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<TABLE>
<CAPTION>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share information)
Threee months ended
March 31,
2000 1999
---- ----
<S> <C> <C>
REVENUES:
License fee and maintenance revenues ................................. $ 625 905
Implementation and consulting services revenues ...................... 313 331
-------- --------
938 1,236
-------- --------
COST OF REVENUES:
Software sales and consulting ........................................ 528 530
Hardware and software sales, obtained from vendors ................... -- 14
-------- --------
528 544
-------- --------
Gross profit ............................................................ 410 692
OPERATING EXPENSES:
General and administrative ........................................... 482 589
Sales and marketing .................................................. 226 155
Research and development ............................................. 0 16
Depreciation and amortization ........................................ 135 128
-------- --------
Loss from operations before other income (expense) ...................... (433) (196)
OTHER INCOME (EXPENSE):
Interest income ...................................................... 2 3
Interest expense ..................................................... (148) (127)
Financing costs ...................................................... (116) (3,985)
-------- --------
Net loss ................................................................ $ (695) (4,305)
======== ========
Basic and diluted loss per common share ................................. $ (0.06) (0.49)
======== ========
Weighted average number of common shares outstanding-
basic and diluted .................................................... 11,860 8,868
======== ========
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
5
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<TABLE>
<CAPTION>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
(In thousands)
Common Stock Additional
--------------------- paid-in Accumulated
Shares Amount capital Deficit Total
------ ------ ---------- ----------- -----
<S> <C> <C> <C> <C> <C>
Balances, December 31, 1999 ........................... 11,638 $ 116 27,158 (31,557) (4,283)
Exercise of stock options .......................... 44 1 40 -- 41
Common stock issued for services ................... 500 5 745 -- 750
Contributed capital ................................ -- -- 63 -- 63
Net loss ........................................... -- -- -- (695) (695)
------- ------- ------- ------- -------
Balances, March 31, 2000 .............................. 12,182 $ 122 28,006 (32,252) (4,124)
======= ======= ======= ======= =======
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
6
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<TABLE>
<CAPTION>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Three months ended
March 31,
2000 1999
---- -----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss ....................................................................... $ (695) (4,305)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and amortization ............................................. 135 128
Amortization of software development costs ................................ 165 48
Amortization of financing costs ........................................... 116 3,985
Changes in allowances for uncollectible amounts ........................... -- 5
Loss on disposal of assets ................................................ -- 38
Common stock, options and warrants issued
for services and other, net ............................................. -- (20)
Changes in operating assets and liabilities:
Accounts receivable-trade .............................................. 77 (7)
Accrued revenues, net .................................................. (157) (245)
Prepaid expenses and other assets ...................................... 60 76
Accounts payable ....................................................... (108) (16)
Accrued expenses ....................................................... (131) (171)
Accrued payroll ........................................................ 11 69
Accrued compensated absences ........................................... (4) 14
Deferred revenue ....................................................... 56 (86)
------ ------
Net cash used in operating activities .......................................... (475) (487)
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment, furniture and fixtures ................................. (13) (54)
Proceeds from sales of equipment ............................................... -- 5
Increase in software development costs ......................................... (229) (345)
------ ------
Net cash used in investing activities .......................................... (242) (394)
------ ------
See accompanying notes to unaudited consolidated financial statements.
7
<PAGE>
<CAPTION>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(In thousands)
Three months ended
March 31,
2000 1999
---- -----
<S> <C> <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on financing agreements ............................................. $ 700 850
Exercise of common stock options ............................................... 41 --
Contributed capital ............................................................ 63 --
Principal payments on short-term debt .......................................... -- (400)
Principal payments under capital lease obligations ............................. (30) (37)
------ ------
Net cash provided by financing activities ...................................... 774 413
------ ------
Net Increase (Decrease) In Cash And Cash Equivalents ........................... 57 (468)
Cash And Cash Equivalents At Beginning Of Period ............................... 330 821
------ ------
Cash And Cash Equivalents At End Of Period ..................................... $ 387 353
====== ======
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest ......................................................... $ 273 127
====== ======
Common stock issued to consultant for future services recorded in
prepaid expense and other assets .......................................... $ 750 --
====== ======
</TABLE>
See accompanying notes to unaudited consolidated financial statements.
8
<PAGE>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2000
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements of Global Med
Technologies, Inc. and Subsidiary (the Company or Global Med) have been prepared
by management in accordance with generally accepted accounting principles for
interim financial information and with the regulations of the Securities and
Exchange Commission. Accordingly, they do not include all information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments consisting
of only normal recurring adjustments considered necessary for a fair
presentation of their financial position at March 31, 2000 and the results of
their operations for the three months ended March 31, 2000 and 1999 have been
included.
While management believes the disclosures presented are adequate to prevent
misleading information, it is suggested that the accompanying unaudited
consolidated financial statements be read in conjunction with the audited
consolidated financial statements and the notes thereto contained in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 1999, as
filed with the Securities and Exchange Commission. The interim results of
operations for the three months ended March 31, 2000 are not necessarily
indicative of the results that may be expected for any other interim period of
2000 or for the year ending December 31, 2000.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the Company's management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
2. RELATED PARTIES
Global Med is effectively controlled by Online Credit International Limited
(Online International), formerly Heng Fung Holdings Company Limited, and its
subsidiary Online Credit Limited, formerly Heng Fung Finance Company Limited
(Online Credit) per the terms of the 1998 Financing Agreements. In addition,
Online International is a significant shareholder of Global Med. Online
International also is a majority shareholder of eVision USA.Com, Inc. (eVision)
and of a subsidiary of eVision, eBanker USA.com, Inc. (eBanker). eVision holds
warrants to purchase 1,000,000 shares of common stock of Global Med at $0.25 per
share. Global Med has outstanding balances on various financing agreements with
eBanker. (See Note 3). eBanker owns a significant number of shares of common
stock of Global Med and holds warrants to purchase 9,000,000 shares of common
stock of Global Med at $0.25 per share. eVision has a wholly owned subsidiary,
American Fronteer Financial Corporation (American Fronteer or AFFC) which is a
broker dealer. Online International, Online Credit, eVision, eBanker and AFFC
are related parties to Global Med.
9
<PAGE>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
3. FINANCING AGREEMENTS, RELATED PARTY
In April 2000, the loan agreements with eBanker for $2,650,000 and $2,000,000
that were due in April 2000 were extended to January 9 and January 7, 2001,
respectively. Payment of interest was also extended to the respective dates in
January 2001. The conversion rate of the $2,650,000 loan agreement was increased
to $1.6875 per share. Other terms of the loans remain the same. In consideration
of the extension, Global Med agreed to pay a fee of 137,778 shares of its common
stock. Based on the market price of the stock on the date of the agreements, the
shares have a value of $262,130, which will be recorded as deferred financing
costs and amortized over the extension period. If the loan's accrued interest or
principal is not repaid in 270 days the loan's interest and principal due date
will be automatically extended to April 15, 2001. The loan will become a
straight loan, without conversion features. Interest will continue to accrue on
the balance at 12% interest per annum. If the loan's accrued interest or
principal is not repaid in 270 days, 10-year warrants convertible into common
shares of Global Med at an exercise price of $0.50 will be issued to eBanker.
The number of shares will be equal to the entire principal and interest amount
divided by the new exercise price.
The bridge loan with eBanker of $750,000, as extended was due to mature on
September 30, 2000. In April 2000, eBanker agreed to extend the due date to
January 1, 2001. Payment of interest was also extended to January 1, 2001.
Global Med agreed to pay a fee of 22,222 shares of its common stock. Based on
the market price of the stock on the date of the agreements, the shares have a
value of $37,500, which will be recorded as deferred financing costs and
amortized over the extension period.
4. PEOPLEMED.COM, INC.
During 1999, Global Med Technologies, Inc. formed a subsidiary, PeopleMed.com,
Inc., (PeopleMed) a Colorado corporation, which is approximately 85% owned by
the Company, to develop a software application designed to give HMO providers
and other third party payers access to clinical information for chronic disease
patients. This application will allow doctors and other medical employees access
to a patient's history. The remaining 15% of PeopleMed is owned by certain
officers and directors of Global Med Technologies, Inc. PeopleMed received
$12,750 during the three months ended March 31, 2000 in payment of subscriptions
for common stock. There is no minority interest reflected in the March 31, 2000
or December 31, 1999 balance sheets because PeopleMed had a stockholders'
deficit at those dates. PeopleMed's operations were not material for the three
months ended March 31, 2000.
In February 2000, PeopleMed commenced a private placement of 2,000,000 shares of
its $.001 par value common stock at $1.00 per share for a total of $2,000,000.
As of March 31, 2000, the Company had received proceeds of $50,000 for 50,000
shares. The cash payments received during the three months ended March 31, 2000
are reflected as contributed capital in the accompanying financial statements.
10
<PAGE>
GLOBAL MED TECHNOLOGIES, INC. AND SUBSIDIARY
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
MARCH 31, 2000
5. STOCKHOLDERS' EQUITY
Stock Option Exercises
During the three months ended March 31, 2000, options to purchase 44,000 shares
of common stock were exercised for a total of $41,000.
Consultancy Agreement
The Company entered into a consultancy agreement, effective as of February 24,
2000, for a period of twenty-four (24) months, with National Financial
Communications Corporation, dba OTC Financial Network (OTC Financial). OTC
Financial will provide consulting services, with the expressed intent and goal
of getting the Company, or its successor or assigns, listed on the Nasdaq Stock
Market which include providing financial community and investor relations for
the Company; and advising the Company, as requested, regarding the financial
community and investor relations.
Upon execution of this agreement, the Company agreed to: (a) issue to OTC
Financial 250,000 shares of restricted common stock; and (b) deposit into
escrow, in the name of OTC Financial, an additional 250,000 shares of restricted
common stock. Upon the Company's listing on the Nasdaq Stock Market, the stock
held in escrow will be released to the consultant. The shares of common stock
held in escrow may be returned to Company in the event of: (a) the term of the
consultancy agreement should expire before the Company is listed on the Nasdaq
Stock Market; or (b) the agreement is terminated before the Company is listed on
the Nasdaq Stock Market; or (c) the Company gives notice to OTC Financial of OTC
Financial's breach of the agreement.
On the effective date of the agreement, the shares of common stock had a fair
value of $750,000 based on quoted market prices of the Company's common stock.
The amount has been recorded as a prepaid expense and other noncurrent asset and
is being amortized over the term of the agreement.
6. RECLASSIFICATIONS
Certain prior period amounts have been reclassified to conform with the current
period presentation.
11
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Overview
Global Med Technologies, Inc. and subsidiary (the Company or Global Med),
designs, develops, markets and supports information management software products
for blood banks, hospitals, centralized transfusion centers and other healthcare
related facilities. Revenues are derived from the licensing of software, the
provision of consulting and other value-added support services and the resale of
hardware and software obtained from vendors.
In April 2000, the loan agreements with eBanker for $2,650,000 and $2,000,000
that were due in April 2000 were extended to January 9 and January 7, 2001,
respectively. Payment of interest was also extended to the respective dates in
January 2001. The conversion rate of the $2,650,000 loan agreement was increased
to $1.6875 per share. Other terms of the loans remain the same. In consideration
of the extension, Global Med agreed to pay a fee of 137,778 shares of its common
stock. Based on the market price of the stock on the date of the agreements, the
shares have a value of $262,130, which will be recorded as deferred financing
costs and amortized over the extension period. If the loan's accrued interest or
principal is not repaid in 270 days the loan's interest and principal due date
will be automatically extended to April 15, 2001. The loan will become a
straight loan, without conversion features. Interest will continue to accrue on
the balance at 12% interest per annum. If the loans and accrued interest are not
repaid in 270 days, ten-year warrants, exercisable to purchase common stock of
Global Med at an exercise price of $0.50 per share, will be issued to eBanker.
The number of common shares to be included in the warrant to be issued will be
equal to the entire principal and interest amount divided by the exercise price
of $0.50.
The bridge loan with eBanker of $750,000 matures on September 30, 2000. In April
2000, eBanker agreed to extend the due date to January 1, 2001. Payment of
interest was also extended to January 1, 2001. Global Med agreed to pay a fee of
22,222 shares of its common stock. Based on the market price of the stock on the
date of the agreements, the shares have a value of $37,500, which will be
recorded as deferred financing costs and amortized over the extension period.
Global Med is in the process of negotiating possible alternative financing
arrangements.
The following discussion of the Company's results of operations and of its
liquidity and capital resources is derived from and should be read in
conjunction with the unaudited financial statements and the related notes
herein.
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1999 COMPARED TO THREE MONTHS ENDED MARCH 31,
1998
Revenues. Revenues are comprised of license fee and maintenance revenues and
implementation and consulting services revenues.
Revenues from license fee and maintenance revenues decreased by $280,000, or
30.9%, for the three months ended March 31, 2000 compared to the same three
months in 1999. This decrease in license fee and maintenance revenues is
primarily the result of decreased sales of the SAFETRACE and SAFETRACE Tx(TM)
12
<PAGE>
products due to lingering Year 2000 effects on potential purchasers of software.
Although the Company experienced no adverse results when the Year 2000 occurred,
software purchasers were delaying decisions until more time had passed to ensure
no Year 2000 issues surfaced during the first three months of 2000. These
purchasing delays were experienced by the software industry overall and are not
particular to Global Med.
Implementation and consulting services revenues decreased marginally,
approximately 5.4%, during the three months ended March 31, 2000 compared to the
same three months in 1999. This decrease was primarily due to decreases in the
number of customers which required these services.
Cost of revenue. Cost of revenue as a percentage of total revenues was 56.3% and
44.0% for the three months ended March 31, 2000 and 1999, respectively. This
cost increase was primarily a result of decreased revenues derived from sales of
SAFETRACE(R) and SAFETRACE TX (TM) software product licenses which are typically
priced at higher profit margins than revenues from consulting and implementation
related services.
Gross profit. Gross profit as a percentage of total revenue was 43.7% and 55.9%
for the three months ended March 31, 2000 and 1999, respectively. This decrease
in gross profit was primarily a result of the decreased revenues derived from
sales of the higher margin SAFETRACE(R) and SAFETRACE TX(TM) software products
discussed above.
General and administrative. General and administrative expenses decreased
$107,000, or 18.2%, for the three months ended March 31, 2000 compared to the
same three months in 1999. This decrease was attributable primarily to the
reduction in force in October 1999 and reductions in other administrative
overhead costs such as rent and professional services, which was partially
offset by the Consultancy Agreement with OTC Financial.
Sales and marketing. Sales and marketing expenses increased $71,000 or 45.8%,
for the three months ended March 31, 2000 compared to the same three months in
1999. This increase in sales and marketing expenses was primarily due to the
increased sales and marketing efforts related to SAFETRACE TX(TM) and the
introduction of PeopleMed during the three months ended March 31, 2000.
Research and development. Research and development expenses decreased $16,000 to
zero, for the three months ended March 31, 2000 compared to the same three
months in 1999. The decrease in research and development expenses was primarily
due to the capitalization of software development costs of $229,000 for the
three months ended March 31, 2000; for a total of capitalized software
development costs of $2,921,000 through March 31, 2000, resulting from SAFETRACE
TX(TM) achieving technological feasibility in 1999.
Interest expense. Interest expense increased $21,000 or 16.5% for the three
months ended March 31, 2000 compared to the same three months in 1999. This
increase was primarily due to the borrowings on the Financing Agreements.
Loss from operations before other income (expense). The Company's loss from
operations during the three months ended March 31, 2000 of $472,000 is $276,000
more than the loss for the same three months in 1999 of $196,000. The increased
loss experienced during the three months ended March 31, 2000 was primarily
attributable to the decrease in sales due to the Year 2000 concerns and the
introduction of PeopleMed.
13
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Net loss. The Company's net loss for the three months ended March 31, 2000 and
1999 was $695,000 and $4,305,000, respectively. The difference of $3,610,000
relates primarily to the noncash financing costs incurred in 1999.
LIQUIDITY AND CAPITAL RESOURCES
The Company had cash and cash equivalents of $387,000 as of March 31, 2000
compared to $330,000 at December 31, 1999, none of which was restricted.
The Company had a net working capital deficit of $6,515,000 as of March 31, 2000
and $2,127,000 at December 31, 1999. The primary reason for the decrease in
working capital is the classification of the Financing Agreements as current
liabilities as of March 31, 2000.
The Company used $475,000 in net cash for operating activities during the three
months ended March 31, 2000. The cash used during the three months ended March
31, 2000 consisted primarily of the loss from operations of $472,000.
Net cash used by investing activities was $242,000 during the three months ended
March 31, 2000 compared to $394,000 during the same period of 1999. The Company
invested $229,000 and $345,000 in software development during the three months
ended March 31, 2000 and 1999, respectively.
Net cash provided by financing activities was $774,000 during the three months
ended March 31, 2000, compared to net cash provided by financing activities of
$413,000 during the three months ended March 31, 1999. These amounts primarily
include proceeds from the Financing Agreements.
In view of the Company's current cash position, financing activities, and
projected cash flow, management believes the Company has the financial
resources, or can obtain the financial resources, to maintain its planned level
of operations for the next twelve months, although the Company anticipates that
it may continue to incur operating losses, negative cash flows and capital
expenditures during that period.
It is expected that the net proceeds generated by the Financing Agreements as
discussed above, are sufficient to fund the Company's liquidity and capital
requirements in the short term excluding acquisitions or major new product
development initiatives. Management anticipates that the net proceeds from the
Financing Agreements, proceeds from the exercise of warrants, and any future
financing activities will be used to fund the Company's anticipated research and
software development costs, sales and marketing efforts, and negative cash flows
during the remainder of 2000 and for general working capital purposes.
As stated above, Global Med is in the process of negotiating possible
alternative financing arrangements. If these efforts are unsuccessful, the
Company will adjust its operations accordingly.
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit No. Description
---------- -----------
10.1 Agreement between eBanker and Global Med Technologies
dated April 12, 2000 pertaining to the extension of the
$2,000,000 note receivable
14
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10.2 Agreement between eBanker and Global Med Technologies
dated April 14, 2000 pertaining to the extension of the
$2,650,000 note receivable
10.3 Agreement between eBanker and Global Med Technologies
dated April 14, 2000 pertaining to the extension of the
$750,000 note receivable
27 Financial Data Schedule for March 31, 2000
(b) Reports on Form 8-K:
There were no reports on Form 8-K filed during the three months
ended March 31, 2000.
SIGNATURES
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.
GLOBAL MED TECHNOLOGIES, INC.
A Colorado Corporation
Date: May 22, 2000 By /s/ Michael I. Ruxin
---------------------------------------
Michael I. Ruxin, Chairman of the Board
and Chief Executive Officer
Date: May 22, 2000 By /s/ Alan K. Geddes
---------------------------------------
Alan K. Geddes Vice President, Finance,
Chief Financial Officer and Treasurer,
Principal Accounting Officer
15
EXHIBIT 10.1
To: The Board of eBanker USA.com, Inc.
From: Michael Ruxin, Director, Chairman and CEO; Gordon Segal, Director; and
Gerald Willman, Director, Global Med Technologies, Inc.
Global Med Technologies, Inc. (Global) Hereby Requests the Proposed Terms for a
Loan Extension from eBanker USA.com, Inc. (eBanker)
April 12, 2000
Loan: $2,000,000 loan, convertible into shares of Global at $1.15
(the original loan's previous conversion price), at 12%
interest per annum, interest and principal due in 270 days
following the date of this agreement. eBanker will have the
right to elect conversion on the due date prior to repayment
being accepted.
Global will provide eBanker with 30-days advance notice
should it choose to repay of the Loan early. In that time
eBanker will have the right to elect for conversion or
repayment.
Commitment: 59,259 free common shares of Global (5% fee, based on a
Fee price of $1.6875).
Auto Extension: If the Loan's accrued interest or principal is not repaid in
270 days the Loan's interest and principal due date will be
automatically extended to April 15, 2001. The Loan will
become a straight loan, without conversion features.
Interest will continue to accrue on the balance at 12%
interest per annum.
If the Loan's accrued interest or principal is not repaid in
270 days, 10-year warrants convertible into common shares of
Global at an exercise price of $0.50 will be issued to
eBanker. The quantity will be equal to the entire principal
and interest amount divided by the new exercise price.
Underlying: The Global agrees to provide all eBanker-owned common stock
Registration and derivatives on common stock with piggyback registration
rights.
Global commits to completing this registration prior to 180
days follow the date of this agreement.
Global commits to maintain registration of all Global
eBanker-owned common stock and derivatives on common stock.
Confirmation of: Except for the terms above, the terms of the underlying loan
Terms of agreement, including but not limited to the default and
Underlying remedy provisions, shall remain unaffected, unchanged, and
Agreement unimpaired by reason of this amendment
For and on Behalf of:
Global Med Technologies, Inc.
/s/ Michael Ruxin /s/ Gordon Segal
- -------------------------------- -----------------------------
Michael Ruxin, Director Gordon Segal, Director
Date: April 21, 2000 Date: April 21, 2000
<PAGE>
EXHIBIT 10.1 (continued)
/s/ Gerald Willman
- -------------------------------
Gerald Willman, Director
Date: April 21, 2000
Agreed and accepted by:
eBanker USA.com, Inc.
/s/ Robert Trapp
- -------------------------------
Robert Trapp, Director
Date: April 25, 2000
EXHIBIT 10.2
To: The Board of eBanker USA.com, Inc.
From: Michael Ruxin, Director, Chairman and CEO; Gordon Segal, Director; and
Gerald Willman, Director, Global Med Technologies, Inc.
Global Med Technologies, Inc. (Global) Hereby Requests the Proposed Terms for a
Loan Extension from eBanker USA.com, Inc. (eBanker)
April 14, 2000
Loan: $2,650,000 loan, convertible into shares of Global at
$1.6875 (market close on 4/14/2000), at 12% interest per
annum, interest and principal due in 270 days following the
date of this agreement. eBanker will have the right to elect
conversion on the due date prior to repayment being
accepted.
Global will provide eBanker with 30-days advance notice
should it choose to repay of the Loan early. In that time
eBanker will have the right to elect for conversion or
repayment.
Commitment: 78,519 free common shares of Global (5% fee, based on a
Fee market price of $1.6875).
Auto Extension: If the Loan's accrued interest or principal is not repaid in
270 days the Loan's interest and principal due date will be
automatically extended to April 15, 2001. The Loan will
become a straight loan, without conversion features.
Interest will continue to accrue on the balance at 12%
interest per annum.
If the Loan's accrued interest or principal is not repaid in
270 days, 10-year warrants convertible into common shares of
Global at an exercise price of $0.50 will be issued to
eBanker. The quantity will be equal to the entire principal
and interest amount divided by the new exercise price.
Underlying: The Global agrees to provide all eBanker-owned common stock
Registration and derivatives on common stock with piggyback registration
rights.
Global commits to completing this registration prior to 180
days follow the date of this agreement.
Global commits to maintain registration of all Global
eBanker-owned common stock and derivatives on common stock.
Confirmation of: Except for the terms above, the terms of the underlying loan
Terms of agreement, including but not limited to the default and
Underlying remedy provisions, shall remain unaffected, unchanged, and
Agreement unimpaired by reason of this amendment.
For and on Behalf of:
Global Med Technologies, Inc.
/s/ Michael Ruxin /s/ Gordon Segal
- ------------------------------- ---------------------------
Michael Ruxin, Director Gordon Segal, Director
Date: April 21, 2000 Date: April 21, 2000
<PAGE>
EXHIBIT 10.2 (continued)
/s/ Gerald Willman
- -------------------------------
Gerald Willman, Director
Date: April 21, 2000
Agreed and accepted by:
eBanker USA.com, Inc.
/s/ Robert Trapp
- -------------------------------
Robert Trapp, Director
Date: April 25, 2000
EXHIBIT 10.3
To: The Board of eBanker USA.com, Inc.
From: Michael Ruxin, Director, Chairman and CEO; Gordon Segal, Director; and
Gerald Willman, Director, Global Med Technologies, Inc.
Global Med Technologies, Inc. (Global) Hereby Requests the Proposed Terms for a
Loan Extension from eBanker USA.com, Inc. (eBanker)
April 14, 2000
Loan: eBanker agrees to commit to extend the $750,000 convertible
loan at 12% interest per annum with interest and principal
due January 1, 2001. eBanker will have the right to elect
conversion on the due date prior to repayment being
accepted.
Global will provide eBanker with 30-days advance notice
should it choose to repay of the Loan early. In that time
eBanker will have the right to elect for conversion or
repayment.
Commitment: 22,222 free common shares of Global (5% fee, based on a
Fee market price of $1.6875).
Underlying: The Global agrees to provide all eBanker-owned common stock
Registration and derivatives on common stock with piggyback registration
rights.
Global commits to completing this registration prior to 180
days follow the date of this agreement.
Global commits to maintain registration of all Global
eBanker-owned common stock and derivatives on common stock.
Confirmation of: Except for the terms above, the terms of the underlying loan
Terms of agreement, including but not limited to the default and
Underlying remedy provisions, shall remain unaffected, unchanged, and
Agreement unimpaired by reason of this amendment.
For and on Behalf of:
Global Med Technologies, Inc.
/s/ Michael Ruxin /s/ Gordon Segal
- -------------------------------
Michael Ruxin, Director Gordon Segal, Director
Date: April 21, 2000 Date: April 21, 2000
/s/ Gerald Willman
- -------------------------------
Gerald Willman, Director
Date: April 21, 2000
<PAGE>
EXHIBIT 10.3 (continued)
Agreed and accepted by:
eBanker USA.com, Inc.
/s/ Robert Trapp
- -------------------------------
Robert Trapp, Director
Date: April 25, 2000
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<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
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0
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<COMMON> 122
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