UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934.
For the quarter ended September 30, 1999 Commission file number 000-25523
Anonymous Data Corporation
(Exact name of registrant as specified in its charter)
Nevada 86-0857752
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6170 W. Desert Inn
Las Vegas, Nevada 89146
(Address of principal executive offices) (Zip Code)
(702) 221-0756
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 past 90 days.
Yes No X
As of September 30, 1999, there were 9,413,160 shares of common stock
outstanding.
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ANONYMOUS DATE CORPORATION
FOR THE QUARTER ENDED
SEPTEMBER 30, 1999
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheet as of September 30, 1999 3
Statement of changes in stockholder's equity
for the three months ending September 30, 1999 4
Statement of changes in stockholder's equity
for the nine months ending September 30, 1999 5
Income Statement for the three months
ending September 30, 1999 and September 30, 1998 6
Income Statement for the nine months
ending September 30, 1999 and September 30, 1998 7
Statement of Cash Flow for the three months
ending September 30, 1999 and September 30, 1998 8
Statement of Cash Flow for the nine months
ending September 30, 1999 and September 30, 1998 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operation 10-11
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 12
Item 2. Changes in Securities 12
Item 3. Defaults by the Company upon its
Senior Securities 12
Item 4. Submission of Matter to a Vote of
Security Holders 12
Item 5. Other Information 12
Item 6. Exhibits and Reports of Form 8-K 12
SIGNATURES 12
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ANONYMOUS DATA CORPORATION
BALANCE SHEET
SEPTEMBER 30, 1999
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ASSETS
<S> <C>
Current Assets
Cash or Cash Equivalents 4,647.15
--------------
Total Current Assets 4,647.15
Property and Equipment
Furniture Fixtures & Equipment 67,687.42
Accum. Depr. F.F. & E. (9,762.00)
--------------
Total Property and Equipment 57,925.42
Other Assets
Suspense 2,750.00
Prepaid Expenses 1,000.00
Patents 91,738.49
--------------
Total Other Assets 95,488.49
--------------
Total Assets $158,061.06
==========
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<TABLE>
LIABILITIES & CAPITAL
<S> <C>
Current Liabilities
Accounts Payable $5,869.61
Federal Tax Withheld 1,449.47
--------------
Total Current Liabilities $7,319.08
Long-Term Liabilities
Total Long-Term Liabilities 0
--------------
Total Liabilities 7,319.08
Capital
Common Stock Issued 9,413.05
Additional Paid-In Capital 1,647,401.53
Accumulated Deficit (1,506,072.60)
--------------
Total Capital 150,741.98
--------------
Total Liabilities & Capital $158,061.06
===========
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ANONYMOUS DATA CORPORATION
SSTATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE THREE MONTHS ENDING SEPTEMBER 30, 1999
Common Stock Additional Accumulated
Paid-In Deficit
Capital
Shares Par
Value
--------- ------ ---------- -----------
<S> <C> <C> <C> <C>
Balance 6-30-99 9,413,160 $9,413 $1,647,401 (1,405,087)
Shares Issued To:
Officer/Directors for 0 0 0
services
Consultants for services 0 0 0
Other cash 0 0 0
Offering Costs 0 0 0
Net (loss) (100,986)
--------- ------ ---------- -----------
Balance 9-30-99 9,413,160 $9,413 $1,647,401 (1,506,073)
========= ====== ========== =========
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<TABLE>
ANONYMOUS DATA CORPORATION
SSTATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE NINE MONTHS ENDING SEPTEMBER 30, 1999
Common Stock Additional Accumulated
Paid-In Deficit
Capital
Shares Par
Value
--------- ------ ---------- -----------
<S> <C> <C> <C> <C>
Balance 12-31-98 8,494,000 $8,494 $906,860 (695,509)
Shares Issued To:
Officer/Directors for 143,000 143 142,857
services
Consultants for services 233,210 233 232,977
Other cash 542950 543 542,407
Offering Costs (177,700)
Net (loss) (810,563)
--------- ------ ---------- -----------
Balance 9-30-99 9,413,160 $9,413 $1,647,401 (1,506,073)
========= ====== ========== ==========
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<TABLE>
INCOME STATEMENT
FOR THE THREE MONTHS PERIOD ENDING
SEPTEMBER 30, 1999 and SEPTEMBER 30, 1998
1999 1998
<S> <C> <C>
Revenues
Interest Income $2,108.78
Other Income 1,000.00
---------- -----------
Total Revenues 3,108.78 0
--------- -----------
Cost of Sales 0.00 0
---------- -----------
Total Cost of Sales 0.00 0
--------- -----------
Gross Profit 3,108.78 0
---------- -----------
Expenses
Total Expenses 104,094.90 13,534
---------- -----------
Net Income (Loss) ($100,986) (13,534)
========== ===========
Loss Per Share (0.01) (0.01)
========== ===========
Weighted average of number of shares outstanding 9,413,160 8,182,667
========== ===========
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INCOME STATEMENT
FOR THE NINE MONTHS PERIOD ENDING
SEPTEMBER 30, 1999 and SEPTEMBER 30, 1998
1999 1998
<S> <C> <C>
Revenues
Interest Income $ 2,108.78
Other Income 5,928.66
Sales/Fee Refunds 2,231.22
Sales/Fee Discount 17.49 0
----------- -----------
Total Revenues $10,286.15 0
----------- -----------
Cost of Sales 0.00 0
----------- -----------
Total Cost of Sales 0.00 0
----------- -----------
Gross Profit 10,286.15 0
----------- -----------
Expenses
Total Expenses 820,850 62,804
----------- -----------
Net Income (Loss) ($810,563) (62,804)
========== ===========
Loss Per Share (0.09) (0.01)
========== ===========
Weighted average of number of shares outstanding 9,222,360 6,710,778
========== ===========
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<TABLE>
STATEMENT OF CASH FLOWS
THREE MONTHS
1999 1998
<S> <C> <C>
Cash Flow from operating activities
Cash paid to suppliers and employees $(104,095) (13,624)
Interest Income 2,109
Other receipts 1,000
----------- -------------
Net cash applied to operating activities $(100,986) $ (13,624)
----------- -------------
Cash flows from investing activities,
Capital expenditures $(35,205)
Patent expenditures (7,635) (6,096)
----------- -------------
Net cash applied to investing activities $(42,840) $(6,096)
Cash flows from financing activities:
Principal payment under capital lease $(1,319) $(,1,117)
obligations
Proceeds from issuance of common stock 10,000
----------- ------------
Net cash (applied to) provided by financing $(1,319) $8,883
activities
---------- ------------
Net increase in cash and cash equivalents $(145,145) $(10,837)
Cash and cash equivalents at beginning of 149,792 19,340
period
----------- -------------
Cash and cash equivalents at end of period $4,647 $8,503
========= =========
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<TABLE>
RECONCILIATION OF NET INCOME TO NET CASH
APPLIED TO OPERATING ACTIVITIES:
<S> <C> <C>
Net (loss) $(100,986) $(13,534)
Adjustments to reconcile net income to net
cash applied to operating activities:
Decrease in accounts payable (90)
----------- ------------
Net cash applied to operating activities $(100,986) $ (13,624)
=========== ============
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<TABLE>
STATEMENT OF CASHFLOWS
NINE MONTHS
1999 1998
<S> <C> <C>
Cash Flow from operating activities
Cash received from customers $ 2,239 $
Cash paid to suppliers and employees (679,600) (56,648)
Interest Income 2,109
Other receipts 5,939
------------- -----------
Net cash applied to operating activities $(669,313) $ (56,648)
------------- -----------
Cash flows from investing activities,
Capital expenditures $(44,946) $(13,511)
Patent expenditures (31,100) (22,396)
------------- -----------
Net cash applied to investing activities $(76,046) $(35,907)
------------- -----------
Cash flows from financing activities:
Principal payment under capital lease $(5,247) $(1,117)
obligations
Proceeds from long-term debt 17,918
Proceeds from issuance of common stock 741,460 84,257
------------- -----------
Net cash (applied to) provided by $736,213 $101,058
financing activities
------------- -----------
Net increase in cash and cash equivalents $(9,146) $8,503
Cash and cash equivalents at beginning of 13,793
period
------------ -----------
Cash and cash equivalents at end of period $4,647 $8,503
============ ===========
</TABLE>
<TABLE>
RECONCILIATION OF NET INCOME TO NET CASH
APPLIED TO OPERATING ACTIVITIES:
<S> <C> <C>
Net (loss) $(810,563) $(62,804)
Adjustments to reconcile net income to net cash
applied to operating activities:
Depreciation 4,597
(Increase) decrease in:
Deferred offering costs 144,000
Other assets (2,750)
Increase in accounts payable 1,559
------------ -----------
Net cash applied to operating activities $(669,313) $ (56,648)
============ ===========
</TABLE>
SUPPLEMENTAL SCHEDULE OF NONCASH FINANCING ACTIVITIES:
During the nine months ended September 30, 1999, the Company incurred
expenses for services totaling $376,210 in exchange for issuance of common
stock.
<PAGE>
1. Statement of Information Furnished
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Form 10-QSB instructions and in the opinion of
management contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of
September 30, 1999, the results of operations for the nine months ended
September 30, 1999 and 1998 and the cash flows for the nine months ended
September 30, 1999 and 1998. These results have been determined on the
basis of generally accepted accounting principles and practices and applied
consistently with those used in the preparation of the Company's Audited
Financials ending December 31, 1998 as filed in Form 10SB.
Certain information and footnote disclosures included in the financial
statements presented in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that the
accompanying consolidated financial statements be read in conjunction with
financial statements and notes thereto incorporated by reference in the
Company's Audited Financials ending December 31, 1998 as filed in Form
10SB.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
The following discussion and analysis should be read in conjunction with
the Company's financial statements and the notes thereto contained
elsewhere in this filing.
Overview
Anonymous Data Corporation, a Nevada corporation (the "Company")
formed in November 1996, is a development stage company engaged in the
business of medical data management systems utilizing a medical biometric
identification system that; (i) links individuals to the medical specimen
they donate for testing by scanning a portion of their anatomy as ID; and,
(ii) after testing, permits access control of the test results to the
benefit of the tested person and/or an authorized person interested in
viewing those results.
In the opinion of management, all adjustments have been made to the
interim financial statements in order to make them not misleading in all
material respects.
Results of Operations for the three months ended September 30, 1999
Total operating expenses from continuing operations were $104,095 for
the three months ended September 30, 1999, as compared to the operating
expenses of $13,534 for the three months ended September 30, 1998.
Utilizing an average daily calculation of operating expenses of $1,131 for
the period ending September 30, 1999, and an average daily calculation of
operating expenses of $147 for the period ending September 30, 1998, this
represented a 669% increase in average daily operating expenses.
Increase operating expenses in the current period are a result of
professional fees, consulting fees and other expenses related to product
research, development and marketing.
<PAGE>
Results of Operations for the nine months ended September 30, 1999
Total operating expenses from continuing operations were $810,563 for
the nine months ended September 30, 1999, as compared to the operating
expenses of $62,804 for the period ended September 30, 1998. Utilizing an
average daily calculation of operating expenses of $2,969 for the period
ending September 30, 1999, and an average daily calculation of operating
expenses of $230 for the period ending September 30, 1998, this represented
a 1191% increase in average daily operating expenses.
Increase operating expenses in the current period are a result of
professional fees, consulting fees and other expenses related to product
research, development and marketing.
Forward-Looking Statements and Associated Risks
This Quarterly Report on Form 10-QSB contains forward-looking
statements made pursuant to the safe harbor provisions of the Securities
Litigation Reform Act of 1995. These forward looking statements are based
largely on the Company's expectations and are subject to a number of risks
and uncertainties, many of which are beyond the Company's control,
including, but not limited to, economic, competitive and other factors
affecting the Company's operations, markets, products and services,
expansion strategies and other factors discussed elsewhere in this report
and the documents filed by the Company with the Securities and Exchange
Commission. Actual results could differ materially from these forward-
looking statements. In light of these risks and uncertainties, there can
be no assurance that the forward-looking information contained in this
report will in fact prove accurate. The Company does not undertake any
obligation to revise these forward-looking statements to reflect future
events or circumstances.
Liquidity and Capital Reserves
As of September 30, 1999 (Unaudited)
As of September 30, 1999, the Company's assets were $158,061 and its
liabilities were $7,319 resulting in an excess of assets of $150,741. Cash
was $4,647 at September 30, 1999 as compared to cash of $149,792 on June
30, 1999, a decrease of $145,145. This represented a 97% decrease in
available cash.
The Company has continued to fund its deficit cash flow from private
placements of the Company's common stock. It is anticipated that loans and
the sale of the Company's stock will continue until such time as the
Company generates sufficient revenues from its operations to cover
operating expenses.
Year 2000 Issues
Certain of the Company's computer systems and software may interpret
the year 2000 as some other date. The operating system generally employed
by the Company is Windows 95, which is year 2000 compliant. The networking,
general ledger and accounts payable and facility point-of-sale and software
programs require software updates or modifications to address the year 2000
problem. The Company is further addressing the matter by replacing certain
older computers and installing off-the-shelf and other third-party software
<PAGE>
that is year 2000 compliant, at an estimated cost of less than $1,000. The
Company anticipates that installation of year 2000 compliant software and
hardware will be completed by the end of 1999. The Company does not believe
that the year 2000 problem will have a material affect on the Company's
operations, however, no assurance can be given that the software updates
and new computers will resolve the problem as scheduled or at all. The
Company's major vender Laser Barcode Solutions, Inc has provided the
Company with certification of year 2000 compliance.
PART II--OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None.
Item 3. Defaults by the Company upon its Senior Securities.
None.
Item 4. Submission of Matter to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports of Form 8-K.
None
<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.
ANONYMOUS DATA CORPORATION
(Registrant)
By: /s/ James E. Beecham By: /s/ Karen Cavallaro
James E. Beecham Karen Cavallaro
Chairman of the Board Secretary
Date: November 15, 1999 Date: November 15, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 150,092
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 150,092
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 418,365
<CURRENT-LIABILITIES> 8,637
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 418,365
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 360,545
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (353,367)
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<INCOME-CONTINUING> (353,367)
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<NET-INCOME> (353,367)
<EPS-BASIC> (.04)
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</TABLE>
