UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 1999
-----------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from_________________ to ____________________________
Commission file number: 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 October 31, 1999, 8,045,202 common shares were outstanding.
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
PATIENT INFOSYSTEMS, INC.
CONDENSED BALANCE SHEETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ASSETS September 30, 1999 December 31, 1998
(Unaudited)
<S> <C> <C>
Cash and cash equivalents ................................................................... $ 1,377,850 $ 6,316,955
Available-for-sale securities ............................................................... -- 1,029,674
Accounts receivable ......................................................................... 1,302,886 1,320,626
Prepaid expenses and other current assets ................................................... 223,972 219,978
------- -------
Total current assets .................................................................. 2,904,708 8,887,233
PROPERTY AND EQUIPMENT, net ................................................................... 1,359,171 1,182,494
OTHER ASSETS .................................................................................. 768,780 450,000
------- -------
TOTAL ASSETS .................................................................................. $ 5,032,659 $ 10,519,727
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable ............................................................................ $ 462,151 $ 304,436
Accrued salaries and wages .................................................................. 289,552 277,931
Accrued expenses ............................................................................ 23,204 58,904
Deferred revenue ............................................................................ 242,108 253,068
------- -------
Total current liabilities ............................................................. 1,017,015 894,339
STOCKHOLDERS' EQUITY:
Common stock - $.01 par value: shares authorized:
20,000,000; issued and outstanding: September 30,
1999 - 8,045,202; December 31, 1998 - 8,020,042 .......................................... 80,452 80,200
Additional paid-in capital .................................................................. 21,590,247 21,561,093
Accumulated Deficit ......................................................................... (17,655,055) (12,015,905)
Total stockholders' equity ............................................................ 4,015,644 9,625,388
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .................................................... $ 5,032,659 $ 10,519,727
============ ============
</TABLE>
See notes to condensed financial statements.
<PAGE>
PATIENT INFOSYSTEMS, INC.
CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES
Operations Fees ..................................................... $ 845,964 $ 465,181 $ 2,682,720 $ 825,836
Development Fees .................................................... -- -- -- 634,373
Licensing Fees ...................................................... 30,000 -- 30,000 169,444
------ ------ -------
Total revenues ................................................. 875,964 465,181 2,712,720 1,629,653
------- ------- --------- ---------
COSTS AND EXPENSES
Cost of sales ....................................................... 1,447,869 1,020,536 4,162,140 2,612,063
Sales and marketing ................................................. 626,725 495,480 1,921,364 1,378,413
General and administrative .......................................... 422,124 406,679 1,381,205 1,014,989
Research and development ............................................ 284,838 27,679 712,285 170,744
------- ------ ------- -------
Total costs and expenses ...................................... 2,781,556 1,950,374 8,176,994 5,176,209
--------- --------- --------- ---------
OPERATING LOSS ........................................................ (1,905,592) (1,485,193) (5,464,274) (3,546,556)
Investment loss ....................................................... (7,697) -- (335,202) --
Other income .......................................................... 30,754 136,350 160,326 462,658
------ ------- ------- -------
NET LOSS .............................................................. $(1,882,535) $(1,348,843) $(5,639,150) $(3,083,898)
=========== =========== =========== ===========
NET LOSS PER SHARE - BASIC
AND DILUTED ........................................................ $ (.23) $ (.17) $ (.70) $ (.38)
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON
AND POTENTIAL COMMON SHARES ......................................... 8,033,400 8,020,042 8,030,003 8,017,844
========= ========= ========= =========
</TABLE>
See notes to condensed financial statements
<PAGE>
PATIENT INFOSYSTEMS, INC.
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
Sept 30, 1999 Sept 30, 1998
------------- -------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss ......................................................................................... $ (5,639,150) $ (3,083,898)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization ................................................................ 374,130 269,591
Loss on investments .......................................................................... 335,202 --
Increase in other assets ..................................................................... (58,935) (200,000)
Amortization of premiums and discounts on available-for-sale securities ...................... -- (112,190)
Compensation expense related to issuance of stock warrants ................................... 10,830 7,827
Decrease (increase) in accounts receivable, net .............................................. 17,740 (890,380)
(Increase) decrease in prepaid expenses and other current assets ............................. (3,994) 172,883
Increase in accounts payable ................................................................. 157,716 97,705
Increase in accrued salaries and wages ....................................................... 11,621 13,096
Decrease in accrued expenses ................................................................. (35,700) (17,179)
(Decrease) increase in deferred revenue ...................................................... (10,960) 193,118
------- -------
Net cash used in operating activities .................................................. (4,841,500) (3,549,427)
---------- ----------
INVESTING ACTIVITY:
Property and equipment additions ................................................................. (550,807) (401,081)
Purchases of available-for-sale securities ...................................................... (21,073) (6,797,236)
Maturities of available-for-sale securities ...................................................... 1,050,747 11,089,959
Purchase of HealthDesk Intellectual Property, net ................................................ (595,048) --
-------- -----------
Net cash provided by (used in) investing activities ...................................... (116,181) 3,891,642
-------- ---------
FINANCING ACTIVITIES:
Proceeds from issuance of common and preferred stock, net ........................................ 18,576 3,781
------ -----
Net cash provided by financing activities .............................................. 18,576 3,781
------ -----
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS .................................................. (4,939,105) 345,996
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD .............................................................................. 6,316,955 779,317
--------- -------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD .................................................................................... $ 1,377,850 $ 1,125,313
============ ============
Supplemental disclosures of cash flow information
Cash paid and received for income taxes, net .................................................... $ 32,041 $ 37,577
============ ============
</TABLE>
See notes to condensed financial statements.
<PAGE>
PATIENT INFOSYSTEMS, INC.
Notes to Condensed Financial Statements
1. The condensed financial statements for the three month periods ended
September 30, 1999 and September 30, 1998 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, 1998. The results of operations for
the three and nine months ended September 30, 1999 are not necessarily
indicative of the results for the entire year ending December 31, 1999.
2. Effective January 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income." This statement
requires that all items recognized under accounting standards as components of
comprehensive earnings be reported in an annual financial statement that is
displayed with the same prominence as other annual financial statements. This
statement also requires that an entity classify items of other comprehensive
earnings by their nature in an annual financial statement. For example, other
comprehensive earnings may include foreign currency translation adjustments,
minimum pension liability adjustments, and unrealized gains and losses on
marketable securities classified as available-for-sale. Annual financial
statements for prior periods will be reclassified, as required. The Company's
total comprehensive earnings were as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net losses ....................................... $(1,882,535) $(1,348,843) $(5,639,150) $(3,083,898)
Other comprehensive earnings:
Unrealized losses on
available-for-sale securities ............. -- 1,886 -- (8,207)
--------- --------- --------- ---------
Comprehensive earnings ........................... $(1,882,535) $(1,346,957) $(5,639,150) $(3,092,105)
=========== =========== =========== ===========
</TABLE>
3. Certain 1998 amounts have been reclassified to conform with 1999
presentations.
<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 nine month periods ended September 30, 1999
and September 30, 1998 and its financial condition at September 30, 1999. 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
includes 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
Revenues consist of revenues from operations, development and licensing
fees. Revenues increased from $465,181 during the three months ended September
30, 1998 to $875,964 during the three months ended September 30, 1999, or 88%,
and increased from $1,629,653 for the nine months ended September 30, 1998 to
$2,712,720 or 66% for the nine months ended September 30, 1999.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
Revenues 1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C> >
Operations Fees
Disease Management and Compliance .................................... $ 319,787 $ 200,183 $ 875,240 $ 374,278
Surveys .............................................................. 286,236 129,342 1,067,411 262,114
Demand Management .................................................... 205,424 135,656 597,427 338,109
Other ................................................................ 34,517 -- 142,642 --
------ ------- ------- -------
Total Operations Fees .................................................. 845,964 465,181 2,682,720 974,501
Development Fees ....................................................... -- -- -- 485,708
Licensing Fees ......................................................... 30,000 -- 30,000 169,444
------ ------- ------ -------
Total Revenues ......................................................... $ 875,964 $ 465,181 $2,712,720 $1,629,653
========== ========== ========== ==========
</TABLE>
Operations revenues are generated as the Company provides services to its
customers for their disease-specific programs. Operations revenues increased
from $465,181 during the three months ended September 30, 1998 to $845,964
during the three months ended September 30, 1999 and increased from $974,501 for
the nine months ended September 30, 1998 to $2,682,720 for the nine months ended
September 30, 1999. Operations revenues increased significantly during the nine
months ended September 30, 1999, as compared to the nine months ended September
30, 1998, as the Company continues to increase the enrollment levels in the
Company's disease state management programs, demand management programs and
patient surveys.
Development revenue represents the amounts that the Company charges its
customers for the development of its customized programs. There were no
development revenues in the three and nine months ended September 30, 1999.
During the nine months ended September 30, 1998, the Company provided services
to a single customer with respect to the development of a single program for
which the Company received $485,708. The Company has not entered into new
development agreements and does not anticipate that it will be paid for program
development in the future.
The Company has developed an Internet based Case Management Support System
to assist nurse case managers in triage, decision-making and documentation of
actions taken in the management of patients with chronic conditions. The System
provides access and focus to disease management data to assist a case manager in
quickly and effectively identifying patients who require assistance and to
document actions and effectiveness. The introduction of this new product marks
the Company's entry into client/user installed software systems.
The Company has entered into an agreement with Insulin Infusion Specialties
(IIS) to provide a customized version of the Case Management Support System to
be used in the management of diabetic patients. In addition to the IIS
agreement, the Company has entered into a letter of agreement with Greater
Rochester Independent Practice Association (GRIPA) to provide a customized
version of the Case Management Support System. The amount of license revenues
recognized from the Case Management Support Systems for the three and nine
months ended September 30, 1999 was $30,000.
Other licensing revenues are amounts the Company charges its customers, on
a one-time fee basis, for the right to enroll patients in or the right to
license other entities certain of its programs, primarily, but not limited to
the Company's standardized asthma and diabetes programs. License fees of
$169,445 for the nine months ended September 30, 1998, were primarily attributed
to the Company's licensing agreement with ReCall Services, Inc., in the amount
of $150,000, for the development and operation of a database service bureau.
Costs and Expenses
Cost of sales include salaries and related benefits, services provided by
third parties, and other expenses associated with the implementation and
delivery of the Company's standard and customized population, demand, and
disease management programs. Cost of sales for the three months ended September
30, 1999 consisting of costs associated with the operation of the Company's
programs was $1,447,869 as compared to $1,020,536 for the three month period
ended September 30, 1998. For the nine months ended September 30, 1999, cost of
sales was $4,162,140, as compared to $2,612,063 for the nine months ended
September 30, 1998. The increase in these costs primarily reflects an increased
level of population and disease management operational activities, the
operations of a demand management call center in Wayne, Pennsylvania, and the
Company's creation of additional capacity necessary to handle anticipated
increases in the number of individuals to whom the Company provides services.
Although the Company's revenues have increased, the Company's gross margin
continues to be negative. The Company anticipates that revenues must increase
further before it will recognize economies of scale. No assurance can be given
that revenues will increase or that if they do, they will exceed expenses.
Sales and marketing expenses consist primarily of salaries, related
benefits, travel costs, sales materials and other marketing related expenses
Sales and marketing expenses for the three months ended September 30, 1999 were
$626,725 as compared to $495,480 for the three month period ended September 30,
1998. For the nine months ended September 30, 1999, sales and marketing expenses
was $1,921,364 as compared to $1,378,413 for the nine months ended September 30,
1998. Spending in this area has increased due to expansion of the Company's
sales and marketing staff. It is anticipated that the Company will continue to
invest in the sales and marketing process, and that such expenses may 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 September 30, 1999 was $422,124, as compared to $406,679 for the
three month period ended September 30, 1998. For the nine months ended September
30, 1999, general and administrative expenses were $1,381,205, as compared to
$1,014,989 for the nine months ended September 30, 1998. These expenditures have
been incurred to maintain the corporate infrastructure necessary to support
anticipated program operations. The increase in these costs was caused by an
increase in the Company's level of business activity, and the addition of
required management and administrative personnel. The Company expects that
general and administrative expenses will remain relatively constant in future
periods.
Research and development expenses consist primarily of salaries and related
benefits and administrative costs associated with the development of certain
components of the Company's integrated information capture and delivery system,
as well as development of the Company's standardized disease state management
programs and the Company's Internet based technology products. Research and
development expenses for the three months ended September 30, 1999 were
$284,838, as compared to $27,679 for the three months ended September 30, 1998.
For the nine months ended September 30, 1999, research and development expenses
were $712,285, as compared to $170,744 for the nine months ended September 30,
1998. The increase in research and development expenses from the third quarter
of 1998 to the third quarter of 1999 reflects the Company's investment in its
primary disease management programs and Internet based products. The Company
uses the core technologies associated with these products to support the
Company's other programs which include disease management, case management,
demand management, patient surveys and clinical studies.
The Company recorded an investment loss for the three months ended
September 30, 1999 in the amount of $7,697, which includes investment losses
associated with the Company's investment in Patient Infosystems Canada, Inc.
Patient Infosystems Canada, Inc. is dedicated to the development of a
commercially viable business built around the sale, marketing and service of the
Company's products and services in Canada. During the third quarter of 1999, the
Company opened an international Call Center facility in Toronto, Canada to
service multinational pharmaceutical companies operating in Canada. The
investment loss for the nine months ended September 30, 1999 was $335,202, which
includes the investment loss for the Pulse Group, which investment was deemed of
no value as of June 30, 1999. The initial total investment of $250,000 was
recorded as an investment loss. There were no recorded investment gains or
losses in the three and nine months ended September 30, 1998.
The Company generates interest income from cash balances and investments.
For the three months ended September 30, 1999, the Company generated interest
income of $30,754 as compared to interest income of $136,350 for the three month
period ended September 30, 1998. For the nine months ended September 30, 1999,
interest income is $160,326 as compared to interest income of $462,658 for the
nine months ended September 30, 1998. The decrease in interest income is due to
a reduction in the Company's available cash balances.
The Company had a net loss of $1,882,535 for the three months ended
September 30, 1999, and a net loss of $1,348,843 for the three months ended
September 30, 1998. For the nine months ended September 30, 1999, the Company
had a net loss of $5,639,150, as compared to $3,083,898 for the nine months
ended September 30, 1998. This represents a net loss per share of $.23 for the
third quarter of 1999, as compared to a net loss of $.17 per share in the third
quarter of 1998. For the nine months ended September 30, 1999, the net loss per
share is $.70, as compared to $.38 per share for the nine months ended September
30, 1998.
Liquidity and Capital Resources
At September 30, 1999 the Company had working capital of $1,887,692 as
compared to working capital of $7,992,894 at December 31, 1998. Since its
inception the Company has primarily funded its operations, working capital needs
and capital expenditures from the sale of equity securities. The Company
completed an initial public offering of its common stock January 8, 1997, at
which time, it generated net proceeds to the Company of $16,314,048.
The Company has continued to expend increasing amounts to expand its
operational capabilities and strengthen its infrastructure which at the same
time has increased its administrative and technical costs. In addition, the
Company's cash has been steadily depleted as a result of operating losses. To
the extent that the Company's losses continue or increase, the Company's
available capital will continue to decline. Accordingly, the Company will be
required to seek additional capital to maintain its operations in the immediate
future. The Company is currently seeking to raise capital privately through the
sale of convertible preferred stock in a private placement to accredited
investors through the efforts of its officers and directors. The Company will
seek to raise $2 million during the quarter ending December 31, 1999. No
assurance can be given that the Company will successfully raise the necessary
funds. In addition, the Company anticipates that it will need to raise
additional funds during 2000. However, no assurance can be given that the
Company will be able to obtain additional financing on favorable terms, if at
all. In addition, any additional financing which includes the issuance of
additional securities of the Company, may be dilutive to the Company's exisiting
stockholders.
Inflation
Inflation did not have a significant impact on the Company's costs during
the three and nine month periods ended September 30, 1999 and September 30,
1998. The Company continues to monitor the impact of inflation in order to
minimize its effects through pricing strategies, productivity improvements and
cost reductions.
Year 2000 Issues
The Year 2000 issue refers to the inability of computerized systems and
technologies to recognize and process dates beyond December 31, 1999. The
Company has reviewed its information technology, cable network equipment and
other embedded systems. The Company has also evaluated the potential impact as a
result of its reliance on third-party systems that may have year 2000 issues.
Based upon the Company's internal testing and relying upon representations made
by certain third party suppliers, the Company believes that the Y2K problem will
not cause a material disruption in its ability to provide products and/or
services to our customers. The Company anticipates that its products and
services should perform substantially the same after 2000 as they did before
2000. The software and hardware used in our operations should recognize four
digit dates and has been tested on machines simulated to be in the year 2000 and
beyond. The transition from 1999 to 2000 has also been tested.
Computerized business applications that could be adversely affected by the
year 2000 issue include:
* information processing and financial reporting systems,
* customer billing systems,
* customer service systems,
* telecommunication transmission and reception systems, and
* facility systems.
System failure or miscalculation could result in an inability to process
transactions, send invoices, accept customer orders or provide customers with
products and services. Customers could also experience a temporary inability to
receive or use the Company's products and services.
Costs incurred to date directly related to addressing the year 2000 were
approximately $60,000. Although the Company will continue to incur substantial
capital expenditures in the ordinary course of meeting its telecommunications
system upgrade through the year 2000, it will not specifically accelerate its
expenditures to facilitate year 2000 readiness, and accordingly such
expenditures are not included in the above estimate.
The Company has communicated with others with whom it does significant
business to determine their year 2000 readiness. The Company purchases much of
its technology from third parties. Accordingly, in order to determine whether
certain third party technology is Year 2000 compliant, the Company relied upon
written affidavits of third parties. In addition, in certain situations, the
Company conducted its own additional verification of these systems to determine
whether they are Year 2000 compliant. The Company identified secondary sources
to supply its systems or services and in some cases, did displace existing
vendors with an alternate product that was Year 2000 ready. The Company believes
it has taken the necessary steps to resolve Year 2000 issues, however, given the
possible consequences of failure to resolve significant Year 2000 issues, there
can be no assurance that any one or more such failures would not have a material
adverse effect on the Company.
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.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to changes in interest rates primarily in its cash
transactions. The Company does not believe it is exposed to changes in foreign
currency exchange rates because it does not currently invest in foreign currency
instruments. A discussion of the Company's accounting policies for financial
instruments is included in the Summary of Significant Accounting Policies in the
Notes to the Financial Statements. The Company currently does not have any
international operations nor does it invest its cash in foreign currency
instruments. The balances the Company has in cash or cash equivalents are
generally available without legal restrictions to fund ordinary business
operations. The Company regularly invests excess operating cash in certificates
of deposit and U.S. government bonds and other bonds that are subject to changes
in short-term interest rates. Accordingly, the Company believes that the market
risk arising from its holding of these financial instruments is minimal. The
Company did not make any purchases of available-for-sale securities in the three
months ended September 30, 1998 and 1999. The Company made purchases of
available-for-sale securities in the amount of $21,073 for the nine months ended
September 30, 1999 and $6,797,236 for the nine months ended September 30, 1998.
<PAGE>
PART II - OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds
Use of Proceeds
The Company has used and continues to use the proceeds from its initial
public offering of Common Stock on December 23, 1996 (File No. 333-07643) for
capital improvements and expansion of its telephone and computer capabilities
for sales and marketing and during the last nine months primarily for general
corporate purposes and to fund operational losses more fully discussed in the
financial statements and the notes thereto appearing elsewhere herein.
Item 6. Exhibits and Reports on Form 8-K
Exhibits:
a. (11) Statements of Computation of Per Share Earnings
(27) Financial Data Schedule
b. No reports on Form 8-K were filed during the quarter ended September 30,
1999.
<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: November 15, 1999
PATIENT INFOSYSTEMS, INC.
-------------------------
(Registrant)
Date: November 15, 1999 /s/ Donald A. Carlberg
----------------- ----------------------
Donald A. Carlberg
Director, President and
Chief Executive Officer
Date: November 15, 1999 /s/ John V. Crisan
----------------- ------------------
John V. Crisan
Chief Financial Officer
Exhibit 11. Statement of Computation of Per Share Earnings
PATIENT INFOSYSTEMS, INC.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net Loss ............................................................... $(1,882,535) $(1,348,843) $(5,639,150) $(3,083,898)
=========== =========== =========== ===========
Weighted average common and
potential common shares ........................................... 8,033,400 8,020,042 8,030,003 8,017,844
========= ========= ========= =========
Net Loss per share - Basic and Diluted ................................. $ (0.23) $ (0.17) $ (0.70) $ (0.38)
=========== =========== =========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001017813
<NAME> Patient Infosystems, Inc.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 1,377,850
<SECURITIES> 0
<RECEIVABLES> 1,327,886
<ALLOWANCES> 25,000
<INVENTORY> 0
<CURRENT-ASSETS> 2,904,708
<PP&E> 2,572,235
<DEPRECIATION> 1,213,064
<TOTAL-ASSETS> 5,032,659
<CURRENT-LIABILITIES> 1,017,016
<BONDS> 0
0
0
<COMMON> 80,452
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<NET-INCOME> (1,882,535)
<EPS-BASIC> (.23)
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</TABLE>