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U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period Ended September 30, 1997
Commission File No. 0-29282
MEDICONSULT.COM, INC.
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(Exact name of small business issuer as specified in its charter)
Delaware 84-1341886
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(State or other jurisdiction of (IRS Employer Identification Number)
Incorporation or Organization)
33 Reid Street, 4th Floor, Hamilton HM 12, Bermuda
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(Address of Principal Executive Offices including zip code)
(441) 296-0736
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(Issuer's telephone number)
Indicate by check mark 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.
Yes [ X ] No [ ]
There were 17,209,400 shares of the Registrant's Common Stock outstanding as
of September 30, 1997.
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MEDICONSULT.COM, INC.
FORM 10-QSB
INDEX
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Part I. Financial Information
Item 1. Financial Statements Page
Condensed Consolidated Balance Sheets - September 30, 1997
and December 31, 1996 3
Consolidated Statement of Loss and Deficit for the three
and nine month periods ended September 30, 1997 4
Consolidated Statement of Cash Flows for the nine month
period ended September 30, 1997 5
Note to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
Part II. Other Information and Signatures 8
Signatures 8
2
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MEDICONSULT.COM, INC.
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30, December 31,
1997 1996
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CURRENT ASSETS
Cash $ 274,269 $ 393,130
Accounts receivable 106,783
Deferred medical costs 40,500 161,600
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TOTAL CURRENT ASSETS 421,552 544,730
FIXED ASSETS 320,101 205,298
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TOTAL ASSETS 741,653 760,028
CURRENT LIABILITIES
Accounts payable and
accrued liabilities 26,994 39,033
Interest payable 0 22,667
Advances from shareholders 0 51,841
Notes payable 0 500,000
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TOTAL CURRENT LIABILITIES 26,994 613,541
SHAREHOLDERS EQUITY
Capital stock 3,408,585 1,008,585
Deficit (2,693,926) (862,098)
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TOTAL SHAREHOLDERS EQUITY 714,659 146,487
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TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 741,653 $ 760,028
3
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MEDICONSULT.COM INC.
CONSOLIDATED STATEMENTS OF LOSS AND DEFICIT
(Unaudited)
Three Months Ended Nine Months Ended
September 30, 1997 September 30, 1997
------------------ ------------------
REVENUES $ 69,269 $ 172,868
EXPENSES
Salaries 234,144 740,322
Office 134,182 277,463
Travel 63,513 125,380
Legal 21,807 42,892
Medical content 51,363 319,376
Computer maintenance 121,913 221,994
Depreciation and amortization 91,842 257,258
TOTAL EXPENSES 718,765 1,984,686
NET OPERATING LOSS FOR THE PERIOD 649,496 1,811,828
Interest expense 0 20,000
LOSS FOR THE PERIOD 649,496 1,831,828
DEFICIT - BEGINNING OF PERIOD 2,044,430 862,098
DEFICIT - END OF PERIOD 2,693,926 2,693,926
4
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MEDICONSULT.COM INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
(Unaudited)
OPERATING ACTIVITIES
Loss for the period $(1,831,828)
Adjustments to reconcile loss for the period
to net cash provided by operating activities
Depreciation and amortization 257,258
(Decrease) increase in accounts receivable (106,783)
Increase (decrease) in accounts payable and
accrued liabilities (12,039)
Decrease in interest payable (22,667)
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NET CASH (USED IN) OPERATING ACTIVITIES (1,716,059)
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INVESTING ACTIVITIES
Fixed asset purchases (250,961)
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NET CASH (USED IN) INVESTING ACTIVITY (250,961)
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FINANCING ACTIVITIES
Sale of Preferred Shares 1,900,000
Redemption of Promissory Note (500,000)
Sale of Common Shares 500,000
Advances from shareholder (51,841)
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NET CASH PROVIDED BY FINANCING ACTIVITIES 1,848,159
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INCREASE (DECREASE) IN CASH (118,861)
CASH - BEGINNING OF PERIOD 393,130
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CASH - END OF PERIOD 274,269
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5
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MEDICONSULT.COM INC.
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. The consolidated financial statements included herein have been
prepared pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures have been condensed
or omitted pursuant to such rules and regulations. In the opinion of
Management, all adjustments, which were of a normal recurring nature,
necessary to present fairly the consolidated financial position and results of
operations and cash flows for the period presented have been included. These
consolidated financial statements should be read in conjunction with the
financial statements and the notes thereto for the fiscal year ended December
31, 1996.
6
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1997
During the three months ended September 30, 1997, the Company focused on the
launch of the MediXperts service which happened on November 4. The
recruitment of the first 25 "best in the world" physicians was a significant
accomplishment, one which was recognized by the print, television, radio and
online media during the launch of the new service in the fourth quarter. New
physicians are being recruited and added to the web site on a weekly basis.
The summer period is traditionally a slow period for all forms of the media,
and the Internet is no exception. Management had not anticipated any new
revenue for the summer period and was pleasantly surprised when one large
pharmaceutical company began a new advertising campaign. This campaign
development evolved into two additional campaigns that are being developed in
the fourth quarter, and will result in new revenue being earned in 1998.
A new revenue area was developed in the corporate Intranet market and initial
presentations were made to several large companies. The presentations
resulted in requests for proposals for two significant contracts. The Company
is continuing to develop the proposal process with the prospective clients in
the fourth quarter.
The Company continues to follow the policy of expensing virtually all
expenditures. While this policy may seem unduly conservative, management
believes that, given the dynamic nature of the Internet, it is prudent.
There was no significant activity in the Company's business during the three-
and nine- month periods ended September 30, 1996. Therefore, these numbers
are not presented in the Form 10-QSB, and there are no meaningful comparisons
that could be made.
CONSOLIDATED STATEMENT OF LOSS AND DEFICIT
March 31, June 30, September 30,
1997 1997 1997
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REVENUES $ 16,078 $ 87,512 $ 69,269
EXPENSES
Salaries 244,900 261,278 234,144
Office 61,100 82,181 134,182
Travel 31,740 30,127 63,513
Legal 11,762 9,323 21,807
Medical content 191,789 76,224 51,363
Computer maintenance 58,711 41,370 121,813
Amortization 77,753 87,663 91,842
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TOTAL EXPENSES 677,755 588,166 718,765
NET OPERATING LOSS FOR THE PERIOD 661,678 500,654 649,496
Interest expense 10,000 10,000 0
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LOSS FOR THE PERIOD $ 671,678 $510,654 $ 649,496
7
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LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 1997 the Company has working capital of $394,558 compared
with a working capital deficit of $68,811 at December 31, 1996. The increase
was due to the sale of approximately $1,900,000 of preferred stock to the
Company's President and majority shareholder and the issuance of common stock
on the conversion of $500,000 of debentures. These investments were offset by
the loss of $1,831,828 for the nine months ended September 30, 1997.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings. None.
Item 2. Changes in Securities. None.
Item 3. Defaults Upon Senior Securities. None.
Item 4. Submission of Matters to a Vote of Security Holders. None.
Item 5. Other Information. None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 Financial Data Schedule Filed herewith
electronically
(b) Reports on Form 8-K.
The Company filed a Current Report on Form 8-K dated June 30,
1997 which reported on Item 9.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
MEDICONSULT.COM INC.
Date: November 18, 1997 By/s/ Robert Jennings
Robert Jennings
President
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EXHIBIT INDEX
EXHIBIT METHOD OF FILING
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27. Financial Data Schedule Filed herewith electronically
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheets and statements of operations found on pages 3-5 of the
Company's Form 10-QSB for the year to date, and is qualified in its entirety
by reference to such financial statements.
</LEGEND>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1997
<CASH> 274,269
<SECURITIES> 0
<RECEIVABLES> 106,783
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 421,552
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 741,653
<CURRENT-LIABILITIES> 26,994
<BONDS> 0
<COMMON> 1,008,585
0
2,400,000
<OTHER-SE> (2,693,926)
<TOTAL-LIABILITY-AND-EQUITY> (741,653)
<SALES> 172,868
<TOTAL-REVENUES> 172,868
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,984,686
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 20,000
<INCOME-PRETAX> (1,831,828)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,831,828)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
