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Previous: E TRADE GROUP INC, S-1MEF, 1997-08-20 |
Next: SPLASH TECHNOLOGY HOLDINGS INC, 424B4, 1997-08-20 |
<PAGE>
FINANCIAL STATEMENTS
VISCORP
(A DEVELOPMENT STAGE ENTERPRISE)
Condensed Consolidated Balance Sheets
ASSETS
<TABLE>
<CAPTION>
Unaudited Unauditd
Six Six
Months Months
Ended Ended
June 30, June 30,
1997 1996
--------- ---------
<S> <C> <C>
CURRENT ASSETS
Cash and cash Equivalents 436,215 72,604
Receivables
Stockholders 12,740
Other 199,870 57,445
-
Prepaid expenses 40,785 588,988
--------- ---------
Total Current Assets 689,610 719,037
--------- ---------
PROPERTY AND EQUIPMENT , AT COST
Equipment and Furnitue 104,197 93,697
Equipment and Furniture under
capital lease 46,589 -
Test Equipment 35,130 4,883
--------- ---------
185,916 98,580
--------- ---------
Less accumulated depreciation (45,733) (31,244)
--------- ---------
Total Property and Equipment, Net 140,183 67,336
--------- ---------
OTHER ASSETS
Investment securities-Digital Sciences, Inc. - 578,907
Investments 100,000 -
Intangible assets (Net of accumulated
amortization) 75,766 93,243
Other 5,753 5,670
--------- ---------
Total Other Assets 181,519 677,820
--------- ---------
Totals 1,011,312 1,464,193
--------- ---------
--------- ---------
</TABLE>
page 1
<PAGE>
VISCORP
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
<TABLE>
<CAPTION>
Unaudited Unauditd
Six Six
Months Months
Ended Ended
June 30, June 30,
1997 1996
----------- -----------
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable 741,194 785,614
Accrued expenses 115,380 24,223
Notes payable to related parties 644,385 285,397
Other notes payable 105,962 -
Due to former officer and consultant 203,522 -
----------- -----------
Total Current Liabilities 1,810,443 1,095,234
----------- -----------
NOTES PAYABLE (NET OF PORTION INCLUDED
in current liabilities) 29,895 -
MINIMUM ROYALTY OBLIGATIONS 450,000 -
----------- -----------
Total Liabilities 2,290,338 1,095,234
----------- -----------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock 221,280 221,280
Preferred stock 20,318 -
Additional paid-in capital (common) 15,096,123 8,435,497
Additional paid-in capital (preferred) 2,680,928 -
Dividend cost (preferred) (113,985) -
Deferred compensation for grant stock option (3,713,542) -
Deficit accumulated during the
development stage (15,470,148) (8,237,037)
Net unrealized investment losses (gaines) - (50,781)
----------- -----------
Total Stockholders' Equity (Deficit) (1,279,026) 368,959
----------- -----------
Totals 1,011,312 1,464,193
----------- -----------
----------- -----------
</TABLE>
page 2
<PAGE>
VISCORP
(A Development Stage Enterprise)
Condensed Consolidated Statement of Income
<TABLE>
<CAPTION>
Unaudited Unaudited Period from
Six Six May 1, 1990
Months Months (Inception)
Ended Ended through
June 30, June 30, June 30,
1997 1996 1997
----------- ----------- ------------
<S> <C> <C> <C>
LICENSE INCOME - - (629,688)
OPERATING EXPENSES
Research and development 43,098 808,305 3,841,278
Minimum royalty expense - - 900,000
Travel and entertainment 94,682 234,090 1,604,114
Unallocated - - 300,000
Legal fees
Former employee litigation 30,183 151,312 892,967
Other 151,575 106,483 1,186,591
Consulting 209,017 232,448 933,972
Stock option compensation - - 2,927,083
Fund raising fees for failed offerings - - 118,237
Rent expense -related parties - - 39,400
Other general and administrative 532,919 474,048 2,959,187
----------- ----------- ------------
Total Operating Expenses 1,061,474 2,006,686 15,702,829
----------- ----------- ------------
------------
OPERATING LOSS 1,061,474 2,006,686 15,073,141
----------- ----------- ------------
OTHER EXPENSE (INCOME)
Interest expense - Stockholder debt 30,976 6,002 268,904
Interest expense - Other 5,024 - 28,088
Interest income (14,074) (5,480) (34,615)
Loss on disposal of equipment - - 4,642
Loss on investment - - 129,688
----------- ----------- ------------
Total Other (Income) Expense, Net 21,926 522 397,007
----------- ----------- ------------
NET LOSS 1,083,400 2,007,208 15,470,148
----------- ----------- ------------
----------- ----------- ------------
AVERAGE SHARES OUTSTANDING (COMMON) 22,128,000 21,628,000
AVERAGE SHARES OUTSTANDING (PREFERRED) 2,031,832 -
LOSS PER SHARE 04 09
----------- -----------
</TABLE>
<PAGE>
VISCORP
(A DEVELOPMENT STAGE ENTERPRISE)
Condensed and Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
Unaudited Unaudited Period from
Six Six Six
Months Months Months
Ended Ended Ended
June 30, June 30, June 30,
1997 1996 1997
-------------------------------------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss (1,083,400) (2,007,208) (15,470,148)
Adjustments to reconciled net loss to net
cash used in operating activities -
Depreciation and amortization 19,861 81,568 121,047
License income received in stock - - (629,688)
Stock option compensation - - 2,927,083
Unallocated - - 300,000
Loss on investment - - 129,688
Services paid in stock - - 416,250
Interest on stockholder loans 30,976 - 268,906
Interest on nonstockholder loans 6,665 - 12,747
Provision for losses on advances - - 36,509
Loss on disposal of equipment - - 4,642
(Increase) in accounts receivable (191,091) - (191,091)
(Increase) decrease in prepaid expenses (10,307) (488,988) (40,785)
Increase (decrease) in
Accounts payable (839,464) 480,725 599,819
Accrued expenses (49,753) 11,289 82,975
Minimum royalty obligation - - 450,000
-------------------------------------------
Total Adjustments (1,033,113) 84,594 4,488,102
-------------------------------------------
Net Cash Used in Operating Activities (2,116,513) (1,922,614) (10,982,046)
-------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of equipment - - 500
Capital expenditures (58,394) (38,269) (159,068)
Advances to employees (net) - (57,445) (36,509)
Patents and other expenditures - - (142,234)
Advances to stockholders - - (116,478)
-------------------------------------------
Net Cash used in Investing Activities (58,394) (95,714) (453,789)
</TABLE>
<PAGE>
VISCORP
(A DEVELOPMENT STAGE ENTERPRISE)
Condensed Consolidated Statement of Cash Flows
<TABLE>
<CAPTION>
Unaudited Unaudited Period from
Six Six May 1, 1997
Months Months (Inception)
Ended Ended through
June 30, June 30, June 30,
1997 1996 1997
----------------------------------------
<S> <C> <C> <C>
CASH FLOW FROM FINANCING ACTIVITIES
(Repayments of checks issued in excess
of funds on deposit) -- -- --
Net borrowings from nonstockholders -- 51,002 100,000
Net borrowings from stockholders 20,000 1,300,000 4,103,384
Principal payments under notes payable (4,793) -- (10,763)
Repayments to affiliated company -- -- --
Proceeds from issuance of common stock -- -- 5,586,000
Payment of stock issuance costs (346,502) -- (740,335)
Repayment of stockholder borrowings -- (100,000)
Proceeds from issuance of preferred stock 3,047,748 -- 3,047,748
Dividends paid (113,985) -- (113,985)
----------------------------------------
Net Cash Provided by Financial Activities 2,602,468 1,351,002 11,872,049
----------------------------------------
NET INCREASE IN CASH & CASH EQUIVALENTS 427,561 (667,326) 436,215
CASH & CASH EQUIVALENTS, BEG OF YEAR 8,654 739,930 --
----------------------------------------
CASH & CASH EQUIVALENTS, END OF PERIOD 436,215 72,604 436,215
----------------------------------------
----------------------------------------
</TABLE>
<PAGE>
VisCorp
4764 Park Granada
Suite 110
Calabasas, CA 91302
RESULTS OF OPERATIONS
Six Months Ended June 30, 1997 Compared to Six Months Ended June 30, 1996.
The company had no license income during the period nor did it have
any during the same period of the previous year.
Research and Development Expenses decreased to $43,098 for the second
quarter of 1997 from $808,305 for the second quarter of fiscal 1996, a
decrease of $765,207. This is due to abandoning the development of the ED
and UITI devices.
Travel and entertainment expenses decreased to $94,682 for the second
quarter of fiscal 1997 from $234,090 for the second quarter of fiscal 1996, a
decrease of $139,408. This is due to the overall reduction in the number of
employees, the discontinuation of the development of the ED and UITI devices
as well as a tightened travel policy began by management.
Consulting expenses decreased to $209,017 for the second quarter of 1997
from $232,448 for the second quarter of fiscal 1996, a decrease of $23,431.
This decrease is due to the reduced use of consultants during the period.
Legal fees for litigation decreased to $30,183 for the second quarter of
fiscal 1997 from $151,312 for the second quarter of fiscal 1996, a decrease
of $121,129. Legal fees for other activities increased $151,575 for the
second quarter of fiscal 1997 from $106,483 for the second quarter of fiscal
year 1996 an increase of $45,092. The decrease in litigation expenses is
largely due to the negotiation of an out of court settlement in the
Serlin/Lerch lawsuit. The rise in other legal expenses is due to the
relocation of the offices to California and a brief period when new counsel
was retained before the dismissal of Chicago counsel.
Other General and Administrative expenses increased to $532,919 for the
second quarter of 1997 from $474,048 for the second quarter of fiscal 1996,
an increase of $58,871. This increase is due primarily to the relocation of
the office from Chicago to California and associated costs as well as
increased compensation for key executives.
<PAGE>
VisCorp
4764 Park Granada
Calabasas, California 901302
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.
VisCorp
Date: June 30, 1997 LAWRENCE D. SIEGEL
--------------- --------------------------------------------
Lawrence D. Siegel
(President, Chief Executive Officer
and Director (Principal Executive Officer))
Date: June 30, 1997 HUGH A. JENCKS
--------------- --------------------------------------------
Hugh A. Jencks
Vice President, Secretary and Chief
Operating Officer (Principal Financial and
Accounting Officer))
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM JUNE 30,
1992 AND IS QUALIFIED IN ITS ENTIRETY TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1997
<CASH> 436,215
<SECURITIES> 100,000
<RECEIVABLES> 253,395
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 789,610
<PP&E> 302,723
<DEPRECIATION> (81,021)
<TOTAL-ASSETS> 1,011,312
<CURRENT-LIABILITIES> 1,810,443
<BONDS> 479,895
0
20,318
<COMMON> 221,280
<OTHER-SE> (1,520,624)
<TOTAL-LIABILITY-AND-EQUITY> 1,011,312
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,083,400
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,083,400
<EPS-PRIMARY> 0
<EPS-DILUTED> (.04)
</TABLE>
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