================================================================================
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the quarterly period ended March 31, 2000.
[ ] Transition Report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the transition period from to .
--------- ----------
Commission File Number 0-21819
------------------------------
MC INFORMATICS, INC.
(Exact name of small business issuer as specified in its charter)
CALIFORNIA 94-3165144
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
18881 VON KARMAN AVENUE, SUITE 100, IRVINE, CALIFORNIA 92612
(Address of principal executive offices)
949-261-7100
(Company's telephone number, including area code)
Check whether the issuer (1) 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 [ ]
As of May 10, 2000, there were 15,589,291 shares of the Company's Common Stock
outstanding and warrants to purchase 2,345,000 shares of Common Stock
outstanding.
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<PAGE>
Part I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
MC INFORMATICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2000
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 321,310
Accounts receivable, net 1,183,747
Prepaid expenses and other current assets 284,707
------------
Total current assets 1,789,764
Property and equipment, net 370,318
Goodwill, net 2,078,110
Other assets 71,243
------------
Total assets $ 4,309,435
=============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Revolving lines of credit $ 1,002,211
Current obligations related to business acquisitions 790,589
Notes payable to related parties 250,000
Accounts payable 501,964
Accrued liabilities 240,911
Other current liabilities 156,099
------------
Total current liabilities 2,941,774
------------
Stockholders' equity:
Preferred Stock, no par value. Authorized 3,000,000
shares. Series C 6% Convertible Preferred Stock,
$.01 par value. Issued and outstanding 1,012,500
(aggregate liquidation preference of $2,025,000) 2,432,257
Common Stock, no par value. Authorized 40,000,000
shares; issued and outstanding 15,589,291 shares 4,206,890
Unearned compensation (258,931)
Accumulated deficit (5,012,555)
------------
Total stockholders' equity 1,367,661
------------
Total liabilities and stockholders' equity $ 4,309,435
============
See accompanying notes to condensed consolidated financial statements.
2
<PAGE>
<TABLE>
MC INFORMATICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three Months Ended March 31,
------------------------------
2000 1999
------------- -------------
<S> <C> <C>
Revenues $ 1,394,754 $ 1,968,150
Direct expenses 1,453,534 1,252,244
------------- -------------
Gross profit (loss) (58,780) 715,906
General and administrative expenses 792,968 768,129
------------- -------------
Loss from operations (851,748) (52,223)
Interest expense 36,530 --
------------- -------------
Loss before provision for income taxes (888,278) (52,223)
Provision for income taxes 1,830 400
------------- -------------
Net loss $ (890,108) $ (52,623)
============= =============
Net loss per share, basic and diluted $ (0.06) $ (0.01)
============= =============
Weighted average number of shares of common stock, basic and diluted 15,584,016 8,730,258
============= =============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
3
<PAGE>
MC INFORMATICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended March 31,
2000 1999
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (890,108) $ (52,623)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 97,728 5,993
Amortization of unearned compensation for employee options 15,519 --
Changes in operating assets and liabilities:
Accounts receivable 649,855 (554,518)
Prepaid expenses and other current assets 57,753 (112,967)
Other assets (15,901) (33,327)
Accounts payable (156,040) 257,043
Accrued expenses (88,249) (125,089)
Other current liabilities 36,951 --
------------ ------------
Net cash used in operating activities (292,492) (615,488)
------------ ------------
Cash flows from investing activities:
Purchases of property and equipment -- (150,706)
Proceeds from disposal of equipment 37,248 --
Cash received upon reverse acquisition -- 871,267
Advances to related parties -- (129,186)
------------ ------------
Net cash provided by investing activities 37,248 591,375
------------ ------------
Cash flows from financing activities:
Repayment of notes payable to the bank (200,000) --
Proceeds from notes payable to and advances from related parties 250,000 400,000
Repayment of notes payable and obligations to related parties (109,950) (12,500)
Collection of pre-merger subscription receivable -- 725,000
------------ ------------
Net cash provided by (used in) financing activities (59,950) 1,112,500
------------ ------------
Net increase (decrease) in cash and cash equivalents (315,194) 1,088,387
Cash and cash equivalents at beginning of period 636,504 17,730
------------ ------------
Cash and cash equivalents at end of period $ 321,310 $ 1,106,117
============ ============
</TABLE>
See accompanying notes to condensed consolidated financial statements.
4
<PAGE>
MC INFORMATICS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation and Business
The accompanying unaudited condensed financial statements have been prepared
by the Company pursuant to the rules and regulations of the Securities and
Exchange Commission without audit. The unaudited condensed financial statements
include all adjustments, consisting of all normal recurring adjustments, which
are in the opinion of management necessary to fairly state the financial
position as of March 31, 2000 and the results of operations and cash flows for
the related interim periods ended March 31, 2000 and 1999. Certain information
and footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, although the Company believes
that the disclosures included herein are adequate to make the information
presented not misleading. Operating results for the three months ended March 31,
2000 are not necessarily indicative of the results that may be expected for the
year ending December 31, 2000 or any other period.
The accounting policies followed by the Company and other information are
contained in the notes to the Company's consolidated financial statements filed
on April 17, 2000 as part of the Company's annual report on Form 10-KSB/A. This
quarterly report should be read in conjunction with such annual report.
2. Earnings (Loss) Per Common Share
Basic earnings (loss) per share are computed by dividing earnings available
to common shareholders by the weighted average number of common shares
outstanding during the period. Diluted earnings per share reflect per share
amounts that would have resulted from the dilutive potential effect of common
stock instruments. The net loss for the three months ended March 31, 2000 has
been adjusted by $30,375 for dividends during such period on the Company's
preferred stock to arrive at the basic loss per share of Common Stock.
3. Revolving Lines of Credit
On May 28, 1999, the Company entered into an agreement with a bank for a
revolving line of credit of up to $1,700,000, which includes a $200,000
sub-facility for an equipment term loan and a $150,000 sub-limit for the
issuance of letters of credit. As of March 31, 2000, the Company had $825,000
outstanding under the revolving line of credit and $142,211 outstanding on the
equipment term loan. No amounts are available under this revolving line of
credit at March 31, 2000.
The line of credit is collateralized by substantially all assets of the
Company and bears interest at the bank's prime rate plus 1.5%. The revolving
line of credit is payable in monthly installments of interest only, with the
unpaid principal balance and accrued interest due on May 26, 2000. The equipment
term loan is payable in monthly installments of interest only at the bank's
prime rate plus 1.5% through May 27, 2000, at which time the outstanding balance
was to be payable in equal monthly principal and interest installments through
May 26, 2003.
The bank financing agreement contains certain restrictive financial
covenants. At March 31, 2000, the Company was not in compliance with certain of
these covenants and was in default of certain other provisions of the bank
financing agreement.
On April 11, 2000, the Company entered into an agreement with the bank which
amended the bank financing agreement. Pursuant to this amendment, the bank
extended the maturity date to the earlier of (i) January 31, 2001, or (ii) the
date upon which the Company successfully raises $3,000,000 or more of debt or
equity financing, as defined in the amended agreement. In addition, the bank
waived all violations of the financial covenants included in the bank financing
agreement from inception up to and including March 31, 2000, and as of April 1,
2000, eliminated all previous financial covenants and added one new financial
covenant. As consideration for the amendment to the bank financing agreement,
the Company repaid the over-advances on its borrowings under the revolving line
of credit in the aggregate amount of approximately $499,000. Additionally, all
borrowings with the bank are now personally guaranteed by an individual who is a
member of the board of directors and a significant stockholder. In connection
with the amended bank financing agreement, all amounts due have been presented
in revolving lines of credit in the accompanying condensed consolidated balance
sheet.
4. Notes Payable to Related Parties
During March 2000, the Company received an aggregate of $250,000 from
certain members of the Company's board of directors and related parties. In
April 2000, the Company received an additional $500,000 from certain members of
its board of directors and related parties. It is the intent of the Company that
such advances will be exchanged for 10% convertible subordinated secured
promissory notes, pursuant to which interest will accrue at a rate of 10% per
annum and will be payable in semi-annual installments. All principal and accrued
but unpaid interest is due and payable in 2002, or may be due and payable upon
demand. The terms of these notes have been finalized but the notes have not yet
been executed.
5
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
The following discussion and analysis should be read in conjunction with
the Company's condensed consolidated financial statements and notes thereto
included elsewhere in this quarterly report on Form 10-QSB. Except for the
historical information contained herein, the following discussion contains
certain forward-looking statements that involve risks and uncertainties, such as
statements of the Company's plans, objectives, expectations and intentions. The
cautionary statements made in this document should be read as being applicable
to all related forward-looking statements wherever they appear herein. The
Company's actual results may differ materially from those anticipated in these
forward-looking statements. The Company undertakes no obligation publicly to
update any forward-looking statements for any reason, even if new information
becomes available or other events occur in the future.
OVERVIEW
MC Informatics, Inc. (the "Company") is a provider of business-to-business
applications services, consulting services and information technology solutions
to the healthcare industry. The Company was established in August 1992 under the
name HealthDesk Corporation ("HealthDesk"). In 1998, HealthDesk underwent a
major change in its strategic direction through the implementation of a plan to
discontinue its then-current operations and to sell substantially all of its
assets, including its HealthDesk online operations and substantially all of its
intellectual property rights, inventories, certain office equipment and packaged
software to Patient Infosystems, Inc. ("PATI"). In August 1998, HealthDesk
entered into an Agreement and Plan of Reorganization with MC Acquisition
Corporation, a California corporation and a wholly owned subsidiary of
HealthDesk, MC Informatics, Inc., a California corporation ("MCII"), and certain
shareholders of MCII, pursuant to which, among other things, MCII merged with
and into MC Acquisition Corporation through the issuance of 5,645,230 shares of
HealthDesk common stock in exchange for all of the outstanding shares of MCII
common stock. The HealthDesk shareholders approved the sale of assets to PATI
and the merger with MCII on February 26, 1999 and, contemporaneously with the
closing of the two transactions on March 2, 1999, HealthDesk changed its name to
MC Informatics, Inc. Although HealthDesk was the legal entity surviving the
HealthDesk/MCII merger, the merger has been accounted for as a reverse
acquisition whereby MCII has been identified as the acquiring corporation for
financial reporting purposes, as HealthDesk had no ongoing business or
operations at the time of the merger and the executive officers and members of
the Board of Directors of the post-merger entity were primarily comprised of
individuals previously associated with MCII. As a result of the foregoing, the
discussion below relates to the current business of MC Informatics, Inc. and,
solely for the purposes of financial reporting, periods prior to March 2, 1999
reflect the accounts of the pre-merger MCII entity. Unless otherwise indicated,
references herein to the Company refer to the merged HealthDesk/MCII entity.
The Company provides a broad spectrum of applications services, consulting
services, strategic and operations management services and IT solutions for the
healthcare industry. The Company's focus is to assist healthcare organizations
maximize the benefits of their information systems and enable technology to
serve their strategic objectives. As an applications service provider, or ASP,
the Company additionally offers proprietary Web-based software and
non-proprietary software applications to healthcare providers and payors. In
addition, the Company provides complete operational support for all IT
functions, including Internet services, e-mail, Web hosting, Web publishing and
business-to-business and business-to-consumer connectivity; distance learning
programs; network services; desktop services; secure Internet access to
application servers in compliance with the Health Insurance Portability and
Accountability Act; electronic medical record support; and related applications
services as may be required by a healthcare organization. Through its IT
consulting services, the Company provides healthcare entities with direction in
developing long-term IT strategy through the selection of technology and
products, system implementation, integration and management, and contract
negotiations.
The Company serves a national client base across a broad cross-section of
the healthcare industry. The Company performs services for its clients
principally on a project-by-project basis through the development of a
custom-tailored solution for each client based upon the client's specific needs
and requirements. The Company believes that its in-depth institutional
knowledge, long-term relationships, extensive knowledge of its clients' needs
and its broad range of services provide it with significant advantages over its
competitors in marketing additional services and winning new engagements. The
6
<PAGE>
Company's objective is to become a leading provider of applications services and
IT solutions in the healthcare industry.
RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE MONTHS ENDED MARCH 31,
1999
The following table sets forth, for the periods indicated, certain financial
data as a percentage of net sales:
Three Months Ended March 31,
----------------------------
2000 1999
------------- -------------
Revenues . . . . . . . . . . . . . . . . . . . . . 100.0% 100.0%
Direct expenses. . . . . . . . . . . . . . . . . . 104.2 63.6
------------- -------------
Gross profit (loss). . . . . . . . . . . . . . . . (4.2) 36.4
General and administrative expenses. . . . . . . . 56.9 39.0
------------- -------------
Loss from operations. . . . . . . . . . . . . . . (61.1) (2.7)
Interest expense . . . . . . . . . . . . . . . . . 2.6 --
------------- -------------
Loss before provisions for income taxes . . . . . (63.7) (2.7)
Provision for income taxes . . . . . . . . . . . . .1 --
------------- -------------
Net loss. . . . . . . . . . . . . . . . . . . . . (63.8) (2.7)
============= =============
REVENUES. The Company's revenues for the quarter ended March 31, 2000 were
$1.4 million as compared to $2.0 million for the quarter ended March 31, 1999, a
decrease of $600,000 or 29%. This decrease was primarily a result of a reduction
in the Company's overall business in the first quarter of 2000. This reduction
in business resulted in several consultants not being billable for a period of
time or being laid off.
GROSS PROFIT (LOSS). The Company reported a gross loss of $59,000 for the
quarter ended March 31, 2000 as compared to a gross profit of $716,000 for the
same period in 1999. The decrease in gross profit was primarily due to the
establishment of a new ASP division which incurred significant startup costs
consisting principally of salary and travel expenses, and the reduction in the
Company's overall business in the first quarter of 2000. This reduction in
business during the first quarter of 2000 resulted in several consultants not
being billable for a period of time or being laid off.
SELLING AND GENERAL ADMINISTRATIVE. During the first quarter of 2000,
general and administrative expenses increased by 3% to $793,000 from $768,000
for the same period in 1999. This increase was primarily due to the merger with
HealthDesk, the acquisition of Medical System Solutions and Inteck and an
increase in personnel. This increase was also attributable to the execution of
agreements to lease new facilities in Colorado, Iowa and Massachusetts.
INTEREST EXPENSE. During the first quarter of 2000, interest expense
increased to $37,000 from $0 for the same period in 1999. The increase was
primarily due to borrowings under the Company's revolving line of credit entered
into in May 1999.
INCOME TAXES. Income taxes were nominal in both respective periods as the
Company is in a loss carryforward position for federal income tax purposes. At
March 31, 2000, the components of the Company's deferred tax assets and
liabilities were comprised primarily of the future tax benefit of the Company's
net operating loss carryforwards of approximately $5.6 million.
The utilization of the net operating loss carryforwards could be limited due
to restrictions imposed under federal and state laws upon a change in ownership.
The amount of the limitation, if any, has not been determined at this time. A
valuation allowance is provided when it is more likely than not that some
portion or all of the deferred tax assets will not be realized. As a result of
the Company's continued losses and uncertainties surrounding the realization of
the net operating loss carryforwards, management has determined that the
realization of deferred tax assets is not more likely than not. Accordingly, a
valuation allowance equal to the net deferred tax asset amount has been recorded
as of March 31, 2000.
NET LOSS. Net loss for the quarter ended March 31, 2000 was $890,000 as
compared to a net loss of $53,000 for the same period in 1999. The net loss in
2000 was primarily attributable to the establishment a new ASP division that
incurred significant start-up expenses without realizing significant revenues
7
<PAGE>
and the severe decrease in revenue during the first quarter of 2000. This
decline in business during the first quarter of 2000 resulted in an unusual
number of Company consultants not being billable and/or being laid off, which
further resulted in the Company incurring significant costs associated with the
severance of these consultants.
LIQUIDITY AND CAPITAL RESOURCES
As of March 31, 2000, the Company had a working capital deficiency of $1.2
million, an accumulated deficit of $5.0 million and $321,000 in cash.
Cash used in the Company's operating activities decreased from $615,000
during the first quarter of 1999 to $292,000 in the first quarter of 2000
primarily as a result of the net loss partially offset by a decrease in accounts
receivable.
Cash provided in the Company's investing activities totaled $37,000 for the
first quarter of 2000 as compared to cash provided by investing activities of
$591,000 during the first quarter of 1999. During 1999, the Company received
proceeds of $871,000 upon the reverse merger with HealthDesk, which proceeds
were offset by $151,000 in capital expenditures and $129,000 in advances to
shareholders.
Cash used in the Company's financing activities totaled $60,000 for the
first quarter of 2000. The Company repaid $200,000 of its revolving line of
credit and paid $110,000 to a related party. This amount was offset by proceeds
of $250,000 received from related parties.
Cash provided by the Company's financing activities totaled $1.1 million for
the first quarter of 1999. That amount consisted of the collection of a
pre-merger subscription receivable aggregating $725,000 and net proceeds of
$387,500 received from the issuance of notes to certain related parties.
In May 1999, the Company entered into an agreement with a financial
institution for a revolving line of credit of up to $1,700,000, which includes a
$200,000 sub-facility for an equipment term loan and a $150,000 sub-facility for
the issuance of letters of credit. The line of credit bears interest at the
bank's prime rate plus 1.5%. This line of credit is collateralized by
substantially all of the assets of the Company. At March 31, 2000, the Company
had $825,000 outstanding under the revolving line of credit and $142,000
outstanding under the equipment term loan. As of March 31, 2000, the Company had
no amounts available under the line of credit.
The bank financing agreement contains certain restrictive financial
covenants. At March 31, 2000, the Company was not in compliance with certain of
these covenants and was in default of certain other provisions of the bank
financing agreement. On April 11, 2000, the Company entered into an agreement
with the bank which amended the bank financing agreement. The bank waived all
violations of the financial covenants included in the financing agreement from
inception up to and including March 31, 2000, and, as of April 1, 2000,
eliminated all previous financial covenants and added one new financial
covenant. As consideration for the amendment to the bank financing agreement, as
of May 12, 2000 the Company had repaid the over-advances on its borrowings under
the revolving line of credit in the aggregate amount of approximately $499,000.
Additionally, all borrowings with the bank are now personally guaranteed by an
individual who is a member of the Board of Directors and a significant
stockholder of the Company.
The accompanying condensed consolidated financial statements contained
elsewhere in this report have been prepared assuming that the Company will
continue as a going concern. The Company has suffered recurring losses from
operations and negative cash flows from operations. In addition, as described
above, the Company had a working capital deficiency at March 31, 2000. These
factors, among others, raise substantial doubt about the Company's ability to
continue as a going concern. As a result, the Company's report from its
independent auditors for its consolidated financial statements as of and for the
year ended December 31, 1999 contains an explanatory paragraph that describes
the uncertainty as to the Company's ability to continue as a going concern. The
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
The Company believes that it will have to obtain additional funds to meet
its projected cash requirements and fund its operations for the next twelve
months. During early 2000, the Company took certain actions in an effort to
become profitable and improve cash flow from operations in the future.
Management implemented a cost reduction program and developed and continues to
implement plans to reduce existing cost structures, improve operating
efficiencies and strengthen the Company's operating infrastructure. The Company
is also implementing a corporate finance program designed to improve its working
8
<PAGE>
capital structure by considering certain financing alternatives. Such
alternatives include a proposed private placement of certain debt and/or equity
securities during the second or third quarter of 2000. In addition, the Company
has amended its existing bank financing agreement. Although the Company has been
successful in obtaining working capital to fund operations to date, there can be
no assurances that the Company will be able to generate additional capital in
the future or secure additional financing with reasonable terms, if at all. In
addition, there can be no assurance that the Company's funding requirements or
cash used in operating activities will not increase significantly as a result of
unforeseen circumstances. The inability to obtain such financing could have a
material adverse effect on the business, financial condition and results of
operations of the Company.
In the event the Company exceeds its projected cash requirements, there can
be no assurance that the Company would be able to obtain public or private
third-party sources of financing or that favorable terms for such financing
would be available. In addition, given the trading history of the Company's
common stock and warrants to purchase common stock, there can be no assurance
that the Company will be able to raise additional cash through public or private
offerings of its common stock. If additional funds are raised by issuing equity
or convertible debt securities, options or warrants, further dilution to the
Company's existing shareholders may result.
YEAR 2000 ISSUES
The year 2000 issue is the result of computer programs being written
using two digits rather than four to define the applicable year. Any of the
Company's programs that have time-sensitive software may recognize a date using
"00" as the year 1900 rather than the year 2000, which could result in major
system failure or miscalculations. A failure to identify and correct any
mission-critical internal or third-party year 2000 processing problem could have
a material adverse operational or financial consequence to the Company. The
Company believes that its most reasonably likely worst-case scenario would
relate to problems with the systems of third parties rather than with its
internal systems. The Company is limited in its ability to address the year 2000
issue as it relates to third parties and must rely solely on the assurances of
these third parties as to their year 2000 preparedness.
Thus far, the Company has not experienced any significant problems
related to year 2000 issues associated with the computer systems, software,
other property and equipment used by the Company. However, the Company cannot
guarantee that the year 2000 problem will not adversely affect its business,
operating results or financial condition at some point in the future.
EFFECT OF INFLATION
The Company believes that inflation has not had a material effect on
its net sales or profitability in recent years.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
None.
9
<PAGE>
Part II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
Recent Sales of Unregistered Securities. In January 2000, the Company
issued an aggregate of 120,000 shares to related parties at a price of $2.50 per
share.
Dividends. Pursuant to state laws, the Company may be restricted from
paying dividends to its shareholders as a result of its accumulated deficit as
of March 31, 2000. In addition, the terms of the Company's bank financing
agreement restrict the Company's ability to pay dividends on the Company's
capital stock.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
During the first quarter of 2000, the Company was not in compliance
with certain restrictive financial covenants under its bank financing agreement,
and was in default of certain other provisions of the agreement. The agreement
provides for a revolving line of credit of up to $1,700,000, which is
collateralized by substantially all of the assets of the Company. As of March
31, 2000, the Company had $825,000 outstanding under this revolving line of
credit.
On April 11, 2000, the Company entered into an agreement with the bank
which amended the bank financing agreement. The bank waived all violations of
the financial covenants included in the financing agreement from inception up to
and including March 31, 2000. As consideration for the amendment to the
agreement, the Company repaid the over-advances on its borrowings under the line
of credit in the aggregate amount of $499,000.
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) Exhibits.
27.1 Financial Data Schedule
(b) Reports on Form 8-K.
The Company did not file any reports on Form 8-K during the
quarter ended March 31, 2000.
10
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant has caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
MC INFORMATICS, INC.
Dated: May 15, 2000 By: /s/ DONALD JACOBS
----------------------------------
Donald Jacobs
Acting Chief Financial Officer and
Principal Accounting Officer
11
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
27.1 Financial Data Schedule
12
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 321,310
<SECURITIES> 0
<RECEIVABLES> 1,435,140
<ALLOWANCES> (251,393)
<INVENTORY> 0
<CURRENT-ASSETS> 1,789,764
<PP&E> 456,952
<DEPRECIATION> (86,634)
<TOTAL-ASSETS> 4,309,435
<CURRENT-LIABILITIES> 2,941,774
<BONDS> 0
0
2,432,257
<COMMON> 4,206,890
<OTHER-SE> (5,271,486)
<TOTAL-LIABILITY-AND-EQUITY> 4,309,435
<SALES> 1,394,754
<TOTAL-REVENUES> 1,394,754
<CGS> 1,453,534
<TOTAL-COSTS> 1,453,534
<OTHER-EXPENSES> 792,968
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (888,278)
<INCOME-TAX> 1,830
<INCOME-CONTINUING> (890,108)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (890,108)
<EPS-BASIC> (0.06)
<EPS-DILUTED> (0.06)
</TABLE>
