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 June 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.)
4340 South Valley View, Suite 210
Las Vegas, Nevada 89103
(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 June 30, 1999, there were 9,413,160 shares of common stock
outstanding.
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ANONYMOUS DATE CORPORATION
FOR THE QUARTER ENDED
JUNE 30, 1999
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheet as of June 30, 1999 3
Statement of changes in stockholder's equity
for the three months ending June 30, 1999 4
Statement of changes in stockholder's equity
for the six months ending June 30, 1999 5
Income Statement for the three months
ending June 30, 1999 6
Income Statement for the six months
ending June 30, 1999 7
Statement of Cash Flow for the three months
ending June 30, 1999 8
Statement of Cash Flow for the six months
ending June 30, 1999 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
JUNE 30, 1999
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ASSETS
<S> <C>
Current Assets
Bank West Checking Account 4,565.89
Nevada State Bank Checking 45,225.69
Other Current Assets - CD 100,000.00
--------------
Total Current Assets 149,791.58
Property and Equipment
Furniture Fixtures & Equipment 32,482.38
Accum. Depr. F.F. & E. (9,762.00)
--------------
Total Property and Equipment 22,720.38
Other Assets
Suspense 2,750.00
Prepaid Expenses 1,000.00
Patents 84,103.49
--------------
Total Other Assets 87,853.49
--------------
Total Assets $260,365.45
==============
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LIABILITIES & CAPITAL
<S> <C>
Current Liabilities
Accounts Payable $5,869.61
Federal Tax Withheld 1,449.47
Current Portion-Lease 1,318.27
--------------
Total Current Liabilities $8,637.35
Long-Term Liabilities
Total Long-Term Liabilities 0
--------------
Total Liabilities 8,637.35
Capital
Common Stock Issued 9,413.05
Additional Paid-In Capital 1,647,401.53
Accumulated Deficit (1405,086.40)
--------------
Total Capital 251,728.18
--------------
Total Liabilities & Capital $260,365.45
==============
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ANONYMOUS DATA CORPORATION
SSTATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE THREE MONTHS ENDING JUNE 30, 1999
Common Stock Additional
Paid-In Accumulated
Capital Deficit
Par
Shares Value
--------- ------ ---------- -----------
<S> <C> <C> <C> <C>
Balance 3-31-99 9,413,160 $9,413 $1,647,401 (1,247,105)
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) (157,982)
--------- ------ ---------- -----------
Balance 6-30-99 9,413,160 $9,413 $1,647,401 (1,405,087)
========= ====== ========== ===========
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ANONYMOUS DATA CORPORATION
SSTATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
FOR THE SIX MONTHS ENDING JUNE 30, 1999
Common Stock Additional
Paid-In Accumulated
Capital Deficit
Par
Shares 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 services 143,000 143 142,857
Consultants for services 233,210 233 232,977
Other cash 542950 543 542,407
Offering Costs (177,700)
Net (loss) (1,405,087)
--------- ------ ---------- -----------
Balance 6-30-99 9,413,160 $9,413 $1,647,401 (1,405,087)
========= ====== ========== ===========
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ANONYMOUS DATA CORPORATION
INCOME STATEMENT
FOR THE THREE MONTHS ENDING JUNE 30, 1999
<S> <C>
Revenues
Other Income $ 3,428.66
Sales/Fee Refunds 2,221.53
Sales/Fee Discount 17.49
--------------
Total Revenues 5,667.68
Cost of Sales
Total Cost of Sales 0.00
---------------
Gross Profit 5,667.68
---------------
Expenses 163,649.22
---------------
Total Expenses 163,649.22
---------------
Net Income (Loss) ($157,981.54)
===============
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ANONYMOUS DATA CORPORATION
INCOME STATEMENT
FOR THE SIX MONTHS ENDING JUNE 30, 1999
<S> <C>
Revenues
Other Income $ 4,928.66
Sales/Fee Refunds 2,231.22
Sales/Fee Discount 17.49
-------------
Total Revenues 7,177.37
Cost of Sales
Total Cost of Sales 0.00
-------------
Gross Profit 7,177.37
-------------
Expenses
Total Expenses 716,754.85
-------------
Net Income (Loss) ($709,577.48)
=============
Loss Per Share (0.08)
=============
Weighted average of number of shares outstanding 9,222,360
=============
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ANONYMOUS DATA CORPORATION
STATEMENT OF CASH FLOW
SFOR THE THREE MONTHS ENDING JUNE 30, 1999
<S> <C>
Cash Flow from operating activities
Cash received from customers $ 2,239
Cash paid to suppliers and employees (161,350)
Income, other receipts 3,429
--------------
Net cash applied to operating activities $(155,682)
--------------
Cash flows from investing activities,
Capital expenditures $(3,716)
Patent expenditures (10,477)
--------------
Net cash applied to investing activities $(14,193)
--------------
Cash flows from financing activities:
Principal payment under capital lease obligations $(2,170)
--------------
Net increase in cash and cash equivalents $(172,045)
Cash and cash equivalents at beginning of period 321,837
--------------
Cash and cash equivalents at end of period $149,792
==============
RECONCILIATION OF NET INCOME TO NET CASH
APPLIED TO OPERATING ACTIVITIES:
Net (loss) $(157,982)
Adjustments to reconcile net income to net cash applied to
operating activities:
Decrease in Employee advances (2,300)
--------------
Net cash applied to operating activities $(155,682)
==============
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<TABLE>
ANONYMOUS DATA CORPORATION
STATEMENT OF CASH FLOW
FOR THE SIX MONTHS ENDING JUNE 30, 1999
<S> <C>
Cash Flow from operating activities
Cash received from customers $ 2,239
Cash paid to suppliers and employees (575,505)
Income, other receipts 4,939
--------------
Net cash applied to operating activities $(568,327)
--------------
Cash flows from investing activities,
Capital expenditures $(9,741)
Patent expenditures (23,465)
-------------
Net cash applied to investing activities $(33,206)
-------------
Cash flows from financing activities:
Principal payment under capital lease obligations $(3,928)
Proceeds from issuance of common stock 741,460
--------------
Net cash provided by financing activities 737,532
--------------
Net increase in cash and cash equivalents $135,999
Cash and cash equivalents at beginning of period 13,793
--------------
Cash and cash equivalents at end of period $149,792
==============
RECONCILIATION OF NET INCOME TO NET CASH
APPLIED TO OPERATING ACTIVITIES:
Net (loss) $(709,577)
Adjustments to reconcile net income to net cash applied to
operating activities:
(Increase) decrease in:
Deferred offering costs 144,000
Other assets (2,750)
--------------
Net cash applied to operating activities $(568,327)
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SUPPLEMENTAL SCHEDULE OF NONCASH FINANCING ACTIVITIES:
During the three months ended June 30, 1999, the Company incurred expenses
for services totaling $376,210 in exchange for paid in capital investments.
<PAGE>
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 June 30, 1999
Total operating expenses from continuing operations were $163,649 for
the three months ended June 30, 1999, as compared to the operating expenses
of $196,895 for the three months ended March 31, 1999. Utilizing an average
daily calculation of operating expenses of $1,798 for the period ending
June 30, 1999, and an average daily calculation of operating expenses of
$6,146 for the period ending March 31, 1999, this represented a 242%
decrease in average daily operating expenses.
Results of Operations for the six months ended June 30, 1999
Total operating expenses from continuing operations were $360,545 for
the six months ended June 30, 1999, as compared to the operating expenses
of $158,227 for the period of December 31, 1997 through December 31, 1998
its year end. Utilizing an average daily calculation of operating expenses
of $3,960 for the period ending June 30, 1999, and an average daily
calculation of operating expenses of $434 for the period ending December
31, 1998, this represented a 813% increase in average daily operating
expenses.
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
<PAGE>
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 June 30, 1999 (Unaudited)
As of June 30, 1999, the Company's assets were $260,365 and its
liabilities were $8,637 resulting in an excess of assets of $251,728. Cash
was $149,792 at June 30, 1999 as compared to cash of $324,137 on March 31,
1999, a decrease of $174,345. This represented a 54% 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
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.
<PAGE>
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
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/ Thomas Yokoyama By:/s/ Karen Cavallaro
Thomas M. Yokoyama Karen Cavallaro
President Secretary
Date: September 23, 1999 Date: September 23, 1999
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 149,792
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 149,792
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 260,365
<CURRENT-LIABILITIES> 8,637
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 260,365
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 716,755
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (709,577)
<INCOME-TAX> 0
<INCOME-CONTINUING> (709,577)
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (709,577)
<EPS-BASIC> (.08)
<EPS-DILUTED> (.08)
</TABLE>
