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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 March 31, 1998
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 17,307,400 shares of the Registrant's Common Stock outstanding as
of March 31, 1998.
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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 - March 31, 1998
and December 31, 1997 3
Consolidated Statements of Loss and Deficit for the three
month periods ended March 31, 1998 and March 31, 1997 4
Consolidated Statement of Cash Flows for the three month
period ended March 31, 1998 5
Note to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
Part II. Other Information and Signatures 6
Signatures 7
2
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MEDICONSULT.COM, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Expressed in U.S. Dollars)
March 31, December 31,
1998 1997
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CURRENT ASSETS
Cash $ 258,270 $ 400,949
Accounts receivable 274,308 157,810
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TOTAL CURRENT ASSETS 532,578 558,759
CAPITAL ASSETS (Note 4) 184,279 193,004
TOTAL ASSETS 716,857 751,763
CURRENT LIABILITIES
Accounts payable and accrued liabilities 140,443 82,634
Advances from shareholder 93,339 143,838
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TOTAL CURRENT LIABILITIES 233,782 226,472
SHAREHOLDERS' EQUITY
Capital stock 4,413,035 4,012,435
Deficit (3,929,960) (3,487,144)
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TOTAL SHAREHOLDERS' EQUITY 483,075 525,291
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TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 716,857 $ 751,763
3
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MEDICONSULT.COM INC.
CONSOLIDATED STATEMENTS OF LOSS
(Unaudited)
(Expressed in U.S. Dollars)
Three Months Ended March 31,
1998 1997
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REVENUES
Advertising $192,500 $ 16,078
Sales 13,692
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206,192 16,078
EXPENSES
Salaries 258,758 244,900
Advertising and promotion 35,998 -
Office 102,928 61,100
Amortization and depreciation 38,950 77,753
Travel 104,839 31,740
Medical content 65,543 191,789
Computer maintenance 28,000 58,711
Selling expenses 12,865 -
Accounting and legal 1,127 11,762
649,008 677,755
OPERATING LOSS FOR THE PERIOD (442,816) (661,677)
Interest expense 0 20,000
LOSS FOR THE PERIOD (442,816) (671,678)
4
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MEDICONSULT.COM INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(Expressed in U.S. Dollars)
Three Months Ended
March 31, 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Loss for the period $(442,816)
Adjustment to reconcile loss for the year
to net cash used in operating activities:
Depreciation of capital assets 38,950
Change in assets and liabilities
Accounts receivable (116,498)
Accounts payable and accrued liabilities 57,809
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NET CASH USED IN OPERATING ACTIVITIES (462,555)
CASH FLOWS FROM INVESTING ACTIVITY:
Capital asset purchases (30,225)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from shareholder (50,499)
Issue of preferred stock 400,000
Issue of common stock 600
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NET CASH PROVIDED BY FINANCING ACTIVITIES 350,101
DECREASE IN CASH (142,679)
CASH - BEGINNING OF PERIOD 400,949
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CASH -- END OF PERIOD 258,270
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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, 1997.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
THREE MONTHS ENDED MARCH 31, 1998
During the three months ended March 31, 1998, the Company began to earn
significant revenues from advertising contracts. This revenue was a
continuation of the successes enjoyed from the sales in the fourth quarter of
1997. In addition, small amounts of revenue from the private label side of
the business were earned. The revenue was 1300% higher than for the first
quarter of 1997.
The Company continues to manage its expenses in a manner that saw the expenses
for the first quarter this year actually decline from the comparative period
last year. This, despite significantly higher revenue. Expenditures were
shifted from an emphasis on building the Internet site to selling advertsing
contracs.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 1998, the Company has working capital of $298,796 compared
with a working capital of $332,287 at December 31, 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. None.
6
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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: May 19, 1998 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 loss found on pages 3 and 4 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> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1998
<CASH> 258,270
<SECURITIES> 0
<RECEIVABLES> 274,308
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 532,578
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 716,857
<CURRENT-LIABILITIES> 233,782
<BONDS> 0
<COMMON> 4,413,035
0
0
<OTHER-SE> (3,929,960)
<TOTAL-LIABILITY-AND-EQUITY> 716,857
<SALES> 206,192
<TOTAL-REVENUES> 206,192
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 649,008
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (442,816)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (442,816)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
