UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from .....................to.......................
Commission file number: 0-22319
PATIENT INFOSYSTEMS, INC.
(Exact name of registrant as specified in its charter)
__________Delaware_________________ _________16-1476509________________
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
46 Prince Street, Rochester, NY 14607
(Address of principal executive offices)
(Zip Code)
(716) 242-7200
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (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 last 90 days. Yes __X___ No _____
As of July 31,1997, 7,971,802 shares of common stock were outstanding.
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements.
PATIENT INFOSYSTEMS, INC.
CONDENSED BALANCE SHEETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS June 30, 1997 December 31, 1996
------------- -----------------
<S> <C> <C>
Unaudited) (Audited)
CURRENT ASSETS:
Cash and cash equivalents......................... $ 2,303,039 $15,666,609
Marketable securities ............................ 13,170,820 --
Accounts receivable .............................. 405,788 386,215
Accrued interest receivable ...................... 131,748 --
Prepaid expenses and other current assets ........ 201,739 170,526
---------- ----------
Total current assets ....................... 16,213,134 16,223,350
PROPERTY AND EQUIPMENT, net ........................ 984,576 862,037
OTHER ASSETS ....................................... 250,000 --
---------- ----------
TOTAL ASSETS ....................................... $ 17,447,710 $ 17,085,387
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ................................. $ 396,591 $ 196,674
Accrued salaries and wages ....................... 226,841 127,029
Accrued expenses ................................. 131,306 211,457
Accrued initial public offering costs ............ -- 446,568
Deferred revenue ................................. 409,485 582,783
Accrued loss on development contracts ............ 57,896 67,139
--------- ---------
Total current liabilities .................. 1,222,119 1,631,650
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock - $.01 par value: shares authorized:
20,000,000; issued and outstanding:
June 30, 1997- 7,971,802; December 31, 1996 -
7,653,202 79,718 76,532
Additional paid-in capital ....................... 21,543,746 19,300,293
Unrealized gain on investments available for sale 6,645 --
Retained earnings ................................ (5,404,518) (3,923,088)
---------- ----------
Total stockholders' equity ................. 16,225,591 15,453,737
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ......... $ 17,447,710 $ 17,085,387
============ ============
</TABLE>
See notes to condensed financial statements.
<PAGE>
PATIENT INFOSYSTEMS, INC.
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES ....................... $ 570,330 $ 299,180 $ 1,093,806 $ 465,416
----------- ----------- ----------- -----------
COSTS AND EXPENSES:
Cost of sales ................ 534,491 283,851 886,143 447,312
Sales and marketing .......... 394,148 206,796 803,660 389,756
General and administrative ... 573,558 513,897 984,934 902,188
Research and development ..... 179,985 18,107 337,169 26,736
--------- --------- --------- ---------
Total costs and expenses 1,682,182 1,022,651 3,011,906 1,765,992
--------- --------- --------- ---------
OPERATING LOSS ................. (1,111,852) (723,471) (1,918,100) (1,300,576)
INTEREST INCOME ................ 218,946 11,770 436,670 20,669
--------- --------- --------- ---------
NET LOSS ....................... $ (892,906) $ (711,701) $(1,481,430) $(1,279,907)
=========== =========== =========== ===========
NET LOSS PER COMMON AND
COMMON SHARE
EQUIVALENTS .................. $ (.11) $ (.12) $ (.19) $ (.21)
=========== ========== =========== ===========
WEIGHTED AVERAGE COMMON
AND COMMON SHARE
EQUIVALENTS .................. 7,971,802 6,181,249 7,957,220 6,118,749
========= ========= ========= =========
</TABLE>
See notes to condensed financial statements.
<PAGE>
PATIENT INFOSYSTEMS, INC.
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Six Months
Ended Ended
June 30, 1997 June 30, 1996
------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss ..................................................................... $ (1,481,430) $ (1,279,907)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization ............................................ 142,161 82,437
Amortization of premiums and discounts on available-for-sale
marketable securities .............................................. (118,014) --
Compensation expense related to issuance of stock warrants ............... 9,040 10,133
(Increase) in accounts receivable ........................................ (19,573) (68,207)
(Increase) in accrued interest receivable ................................ (117,046) (9,000)
(Increase) in prepaid expenses and other current assets .................. (45,915) (72,189)
Increase (decrease) in accounts payable .................................. 199,916 (214,101)
Increase in accrued salaries and wages ................................... 99,812 127,898
(Decrease) increase in accrued expenses .................................. (80,151) 54,789
(Decrease) increase in deferred revenue .................................. (173,298) 286,371
(Decrease) increase in accrued loss on development contracts ............. (9,243) 46,923
--------- ---------
Net cash used in operating activities ............................... (1,593,741) (1,034,853)
--------- ---------
INVESTING ACTIVITY:
Property and equipment additions ............................................. (264,699) (239,178)
Purchases of available-for-sale marketable securities ........................ (14,539,161) --
Maturities of available-for-sale marketable securities ....................... 1,493,000 --
Purchase of long-term investments ............................................ (250,000) --
---------- ---------
Net cash used in investing activities ............................... (13,560,860) (239,178)
---------- ---------
FINANCING ACTIVITIES:
Proceeds from issuance of common and preferred stock, net .................... 2,237,599 2,996,750
(Decrease) in accrued initial public offering costs .......................... (446,568) --
---------- ----------
Net cash provided by financing activities ........................... 1,791,031 2,996,750
---------- ----------
DECREASE IN CASH AND CASH EQUIVALENTS ......................................... (13,363,570) 1,722,719
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD .......................................................... 15,666,609 1,182,080
---------- ----------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD ................................................................ $ 2,303,039 $ 2,904,799
============ ============
</TABLE>
<PAGE>
PATIENT INFOSYSTEMS, INC.
Notes to Condensed Financial Statements
1. The condensed financial statements for the three and six month
periods ended June 30, 1997 and 1996 are unaudited and reflect all
adjustments (consisting only of normal recurring adjustments) which are, in
the opinion of management, necessary for a fair presentation of the
financial position and operating results for the interim periods. The
condensed financial statements should be read in conjunction with the
financial statements and notes thereto, together with management's
discussion and analysis of financial condition and results of operations
contained in the Company's Annual Report on Form 10-K for the year ended
December 31, 1996. The results of operations for the six months ended June
30 , 1997 are not necessarily indicative of the results for the entire
fiscal year ending December 31, 1997.
2. In March 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards (SFAS) No. 128,
"Earnings Per Share." This new standard requires dual presentation of basic
and diluted earnings per share (EPS) on the face of the earnings statement
and requires a reconciliation of the numerators and denominators of basic
and diluted EPS calculations. This statement will be effective for the
Company's 1997 fiscal year. The Company has not performed the calculation
for the pro forma financial statement effect of the application of this
standard, however management believes the results would not materially
differ from earnings per share as shown.
In June 1997, FASB issued SFAS No. 130, "Reporting Comprehensive Income"
and SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information." SFAS No. 130 establishes standards for reporting and
disclosure of comprehensive income and its components in financial
statement format. Comprehensive income is defined as the change in equity
of a business enterprise during a period from transactions and other events
and circumstances from nonowner sources. Items considered comprehensive
income include foreign currency items, minimum pension liability
adjustments and unrealized gains and losses on certain investments in debt
and equity securities. SFAS No. 130 is effective for financial statements
for fiscal years beginning after December 15, 1997.
SFAS No. 131 establishes standards for the reporting information about
operating segments by public entities in annual financial statements and
requires that those entities report selected information about operating
segments in interim financial reports issued for shareholders. This
Statement supercedes SFAS No. 14, "Financial Reporting for Segments of a
Business Enterprise" and amends SFAS No. 94, "Consolidation of
All-Majority-Owned Subsidiaries." SFAS No. 131 requires that public
entities report financial and descriptive information about its reportable
business segments. This statement is effective for financial statements for
periods beginning after December 15, 1997.
3. During the six month period ended June 30, 1997, the Company purchased
marketable investment securities which are considered available for sale
and are recorded at fair value, based on quoted market prices. The net
unrealized holding gain or loss on marketable investment securities is
included as a separate component of stockholders' equity. A decline in the
fair value of any marketable investment security below cost, that is deemed
other than temporary, is charged to earnings resulting in a new cost basis
for the security. Costs of investments sold are determined on the basis of
specific identification.
The cost or amortized cost and estimated market values of
investments were as follows at June 30, 1997:
Cost or Gross Estimated
Amortized Unrealized Market
Cost Gains Value
U.S. Treasury securities and
obligations of U.S. government
corporations and agencies $13,164,175 $ 6,645 $13,170,820
=========== ======= ===========
<PAGE>
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Management's discussion and analysis provides a review of the Company's
operating results for the three and six month periods ended June 30, 1997 and
1996, and its financial condition at June 30, 1997. The focus of this review is
on the underlying business reasons for significant changes and trends affecting
the revenues, net earnings and financial condition of the Company. This review
should be read in conjunction with the accompanying condensed financial
statements.
In an effort to give investors a well-rounded view of the Company's current
condition and future opportunities, this Quarterly Report on Form 10-Q may
include forecasts by the Company's management about future performance and
results. Because they are forward-looking, these forecasts involve
uncertainties. These uncertainties include risks of market acceptance of or
preference for the Company's systems and services, competitive forces, the
impact of, and changes in, government regulations, general economic factors in
the healthcare industry and other factors discussed in the Company's filings
with the Securities and Exchange Commission.
Results of Operations
Revenues
The Company generated revenue of $570,330 during the three months ended
June 30, 1997, a 91% increase over revenue of $299,180 for the three months
ended June 30, 1996. For the six months ended June 30, 1997, revenue was
$1,093,806, a 135% increase over revenue of $465,416 during the six months ended
June 30, 1996. The following is a summary of revenue by category:
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
---- ---- ---- ----
Revenues
- --------
Development $197,020 $285,958 $ 603,104 $451,393
Licensing 195,833 5,556 283,333 5,556
Operations 177,476 7,667 207,369 8,468
------- ----- ------- -----
$570,330 $299,180 $1,093,806 $465,416
======== ======== ========== ========
Program development revenue represents the fees that the Company charges
its customers for the development of its customized programs. Program
development revenue declined from the second quarter of 1996 to the second
quarter of 1997 as the Company reduced its development fees charged to certain
customers, and entered into arrangements providing for development fees based
upon a program outcome to be measured at a later date. The increase in program
development revenue from the first six months of 1996 to the first six months of
1997 reflects the increase from 1996 to 1997, primarily during the first quarter
of 1997, in the number of different programs which produced program development
revenue. The program development revenue for the six months ended June 30, 1997
also reflects the recognition of deferred development revenue of $80,021 related
to a weight management program which was under development pursuant to a
Services Agreement with a customer. The customer has been denied regulatory
approval for the use of their pharmaceutical product for the indication which
was the focus of the program, and, therefore, because the Company believes that
no further development of this program will occur pursuant to this Services
Agreement the remaining deferred development revenue was recognized. As the
Company expands its operations, it intends to continue to emphasize operations
revenue to the exclusion of development revenues.
Licensing revenue represents amounts that the Company charges its customers
for the right to enroll patients in or the right to market to other entities
certain of its programs, primarily the Company's standardized asthma and
diabetes programs, and the right to have access to data collected from patients
enrolled in such programs. The Company did not initiate any licensing activity
until the second quarter of 1996, therefore licensing revenues for the three and
six month periods ended June 30, 1997 were significantly higher than those
generated during the corresponding periods in 1996.
Operations revenues are generated as the Company provides services to the
Company's customers. These revenues increased significantly for the three and
six month periods ended June 30, 1997 as compared to the corresponding periods
in 1996, due to initiation of patient enrollments in the Company's disease state
management programs during the fourth quarter of 1996 and the Company's
initiation of its physician education programs during the second quarter of
1997.
The Company anticipates that it will begin to provide other services to
customers in the healthcare industry during 1997 which involve new applications
of its information capture and delivery system. These services include patient
surveys, health risk assessments, nursing support lines and marketing support
functions.
Interest income was $218,946 for the three months ended June 30, 1997, as
compared to $11,770 for the three month period ended June 30, 1996. For the six
months ended June 30, 1997 interest income was $436,670, as compared to $20,669
for the six months ended June 30, 1996. The increase in interest income reflects
the deposit of additional funds available to the Company for investment as a
result of the closing of its initial public offering on December 19, 1996.
Costs and Expenses
Cost of sales includes salaries and related benefits, services provided by
third parties, and other expenses associated with the development of the
Company's customized disease state management programs, as well as the operation
of each of its disease state management programs. In addition, cost of sales
includes accrued losses on program development in accordance with the Company's
policy of recognizing such losses, if any, in full as identified. Cost of sales
was $534,491 for the three months ended June 30, 1997, as compared to $283,851
during the three months ended June 30, 1996. For the six months ended June 30,
1997, cost of sales was $886,143, as compared to $447,312 for the six months
ended June 30, 1996. The increase in these costs from 1996 to 1997 reflects an
increased level of program development and operational activities, as well as
the Company's creation of the capacity necessary to handle anticipated increases
in the number of individuals to whom the Company intends to provide services.
Sales and marketing expenses for the three months ended June 30, 1997 were
$394,148, as compared to $206,796 for the three month period ended June 30,
1996. For the six months ended June 30, 1997 sales and marketing expenses were
$803,660, as compared to $389,756 for the same period in 1996. These costs
consist primarily of salaries, related benefits, travel costs, sales materials
and other marketing related expenses. Spending in this area has increased due to
significant expansion of the Company's sales and marketing staff. It is
anticipated that the Company will continue to make significant investments in
the sales and marketing process, and that such expenses will increase in future
periods.
General and administrative expenses include the costs of corporate
operations, finance and accounting, human resources and other general operating
expenses of the Company. General and administrative expenses for the three
months ended June 30, 1997 were $573,558, as compared to $513,897 for the three
month period ended June 30, 1996. For the six months ended June 30, 1997 general
and administrative expenses were $984,934 as compared to $902,188 for the six
months ended June 30, 1996. These expenditures have been incurred in order to
maintain the corporate infrastructure necessary to support anticipated program
development and operations. The increase in these costs was caused by an
increase in the Company's level of business activity, and the addition of
required administrative personnel. The Company expects that general and
administrative expenses will continue to increase in future periods.
Research and development expenses consist primarily of salaries and related
benefits and administrative costs allocated to the Company's research and
development personnel for development of certain components of its integrated
information capture and delivery system and the conduct of a clinical trial of
the Company's asthma program and development of the Company's standardized
disease state management programs. Research and development expenses for the
three months ended June 30, 1997 were $179,985, and were $18,107 for the three
months ended June 30, 1996. For the six months ended June 30, 1997 research and
development costs were $337,169, as compared to $26,736 for the same period in
1996. The increase in these costs reflects the development activities related to
the Company's standardized disease state management programs for patients
suffering from asthma and diabetes and the costs associated with the clinical
trial of its asthma program. The Company anticipates that research and
development expenses will continue at the current level, or increase slightly in
future periods, as the Company continues to expand the number of programs that
it develops and makes available to its customers on a standardized basis.
Liquidity and Capital Resources
At June 30, 1997 the Company had working capital of $14,994,016, as
compared to working capital of $14,591,700 at December 31, 1996. Since its
inception, the Company has primarily funded its operations, working capital
needs and capital expenditures from the sale of equity securities. The Company's
initial capitalization of $500,000 was completed in February 1995. The Company
received $1,800,000 from the sale of equity securities in a private placement
during the third quarter of 1995, and $3,000,000 from the sale of additional
equity securities in a private placement during the second quarter of 1996. On
December 19, 1996 the Company completed an initial public offering of its common
stock which generated net proceeds to the Company of $14,082,048. The
underwriters of the Company's initial public offering exercised their
over-allotment option on January 8, 1997, resulting in net proceeds to the
Company of $2,232,000. The Company's net loss of $1,481,430 for the first six
months of 1997 was offset by the receipt of the proceeds of the sale of
additional securities upon the closing of the over-allotment option, however it
is anticipated that the Company's continuing losses will result in continuing
reduction of working capital.
Certain of the Company's development contracts require that payments be
made by the customer at the time of contract execution and at the achievement of
certain milestones in the development process. These payments are normally
received in advance of the Company's recognition of the associated revenue. The
timing of customer payments for program operation services varies by contract,
but has often occured prior to the associated services being provided. The
Company recognizes deferred revenue for amounts billed for these services in
advance of the rendering of the services. The advance payments have been a
source of liquidity for the Company. The Company anticipates that although such
billing practices are likely to continue in this manner in the foreseeable
future they will become less frequent as they Company absorbs more costs related
to program development.
The Company has been substantially dependent upon the public and private
sale of securities to fund its research and development activities and working
capital requirements. In order to implement programs using the Company's
integrated information capture and delivery system, the Company will be required
to devote substantial additional assets to the development of technology, the
construction of physical facilities and the acquisition of telephone and
computer equipment. The Company will also be required to retain the services of
employees in advance of obtaining contracts to provide services.
Inflation
Inflation did not have a significant impact on the Company's costs during
either the first six months of 1997 or the first six months of 1996. The Company
continues to monitor the impact of inflation in order to minimize its effects
through pricing strategies, productivity improvements and cost reductions.
Recent Accounting Pronouncements
In March 1997, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings Per
Share," which will be effective during the fourth quarter of 1997. SFAS No. 128
will require the Company in its fourth quarter and in its annual report to
restate all previously reported earnings per share information to conform with
the new pronouncement's requirements. See Note 2 of the Notes to Financial
Statements.
FASB recently issued SFAS No. 130 on "Reporting Comprehensive Income" and
SFAS No. 131 on "Disclosures about Segments of an Enterprise and Related
Information." The "Reporting Comprehensive Income" standard is effective for
fiscal years beginning after December 15, 1997. This standard changes the
reporting of certain items currently reported in the common stock equity section
of the balance sheet and is not expected to have a material effect on the
Company's financial statements. The "Disclosures about Segments of an Enterprise
and Related Information" standard is also effective for fiscal years beginning
after December 15, 1997. This standard requires that public companies report
certain information about operating segments in their financial statements. It
also establishes related disclosures about products and services, geographic
areas, and major customers. The Company is currently evaluating what impact this
standard will have on its disclosures. See Note 2 of the Notes to Financial
Statements.
Forward Looking Statements
When used in this and in future filings by the Company with the Securities
and Exchange Commission, in the Company's press releases and in oral statements
made with the approval of an authorized executive officer of the Company, the
words or phrases "will likely result," "expects," "plans," "will continue," "is
anticipated," "estimated," "project," or "outlook" or similar expressions
(including confirmations by an authorized executive officer of the Company of
any such expressions made by a third party with respect to the Company) are
intended to identify "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. The Company wishes to caution
readers not to place undue reliance on any such forward-looking statements, each
of which speak only as of the date made. Such statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from historical earnings and those presently anticipated or projected. These
uncertainties include risks of market acceptance of or preference for the
Company's systems and services, competitive forces, the impact of, and changes
in, government regulations, general economic factors in the healthcare industry
and other factors discussed in the Company's filings with the Securities and
Exchange Commission. The Company has no obligation to publicly release the
result of any revisions which may be made to any forward-looking statements to
reflect anticipated or unanticipated events or circumstances occurring after the
date of such statements.
<PAGE>
PART II - OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
The Company's annual meeting of stockholders was held in Rochester, New
York at 10:00 a.m. local time, on Tuesday, June 17, 1997. Proxies for the
meeting were solicited pursuant to Regulation 14 under the Securities Exchange
Act of 1934, as amended. There was no solicitation in opposition to the nominees
for election as directors as listed in the proxy statement, and all nominees
were elected.
Out of a total of 7,971,802 shares of the Company's common stock
outstanding and entitled to vote, 6,125,948 shares were present at the meeting
in person or by proxy, representing approximately 76.8 percent. Matters voted
upon at the meeting were as follows:
a) Election of five directors to serve on the Company's board of directors.
Drs. Schaffer, Kohrt and McNeil and Messrs. Carlberg and Pappajohn were elected
to serve until the next annual meeting of stockholders or until their successors
are duly elected and qualified. The vote tabulation with respect to each nominee
was as follows:
Nominee Votes For Votes Against
------- --------- -------------
Dr. Derace L. Schaffer 6,125,948 0
Donald A. Carlberg 6,125,948 0
Dr. Carl F. Kohrt 6,125,948 0
Dr. Barbara J. McNeil 6,125,948 0
John Pappajohn 6,125,948 0
b) To ratify the selection of Deloitte & Touche, LLP as the Company's
independent auditors for the fiscal year ending December 31, 1997. The selection
was approved with 6,125,948 votes for the selection and no votes against the
selection.
Item 5. Other Information
The Company's Sr. Vice President, Chief Financial Officer, Secretary and
Treasurer, Mr. Gregory D. Brown, has announced his resignation from those
offices effective August 15, 1997.
Item 6. Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed during the quarter ended June 30, 1997.
Exhibits:
(11) Statements of Computation of Per Share Earnings
See Page 11 of this Quarterly Report on Form 10-Q.
(27) Financial Data Schedule
Filed electronically
Exhibit 11. Statement of Computation of Per Share Earnings
PATIENT INFOSYSTEMS, INC.
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Net Loss ........................................... $ (892,$06) $ (711,701) $(1,481,430) $1,279,907)
========== ========== =========== ==========
Weighted average Common Stock outstanding .......... 7,971,802 3,602,880 7,957,220 3,602,880
Weighted average Series A Convertible
Stock outstanding ........................... - 1,296,000 - 1,296,000
Staff Accounting Bulletin Common Stock equivalents:
Series B Convertible Preferred Stock
issued May and June of 1996, calculated using the
treasury stock method ........................... - 500,000 - 437,500
Dilutive effect of stock options granted in
the preceding twelve months, calculated
using the treasury stock method ................ - 782,369 - 782,369
--------- --------- --------- ---------
Number of shares to be used in calculation ......... 7,971,802 6,181,249 7,957,220 6,118,749
--------- --------- --------- ---------
Loss per common share ................................ $ (0.11) $ (0.12) $ (0.19) $ (0.21)
========== ========== ========== ==========
</TABLE>
<PAGE>
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: August 14, 1997
PATIENT INFOSYSTEMS, INC.
(Registrant)
/s/ Gregory D. Brown
Gregory D. Brown
Senior Vice President, Chief Financial Officer,
Secretary and Treasurer
/s/ Lynda J. Bates
Lynda J. Bates, CPA
Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 2,303,039
<SECURITIES> 13,170,820
<RECEIVABLES> 405,788
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 333,487
<PP&E> 1,339,209
<DEPRECIATION> 354,633
<TOTAL-ASSETS> 17,447,710
<CURRENT-LIABILITIES> 1,222,119
<BONDS> 0
0
0
<COMMON> 79,718
<OTHER-SE> 16,145,873
<TOTAL-LIABILITY-AND-EQUITY> 17,447,710
<SALES> 1,093,806
<TOTAL-REVENUES> 1,093,806
<CGS> 886,143
<TOTAL-COSTS> 3,011,906
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,481,430)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,481,430)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,481,430)
<EPS-PRIMARY> (0.19)
<EPS-DILUTED> (0.19)
</TABLE>
