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.
<PAGE>
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheet as of June 30, 1999 3
Income Statement for the three months
ending June 30, 1999 4
Income Statement for the six months
ending June 30, 1999 5
Statement of Cash Flow for the three months
ending June 30, 1999 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operation 7-8
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 9
Item 2. Changes in Securities 9
Item 3. Defaults by the Company upon its
Senior Securities 9
Item 4. Submission of Matter to a Vote of
Security Holders 9
Item 5. Other Information 9
Item 6. Exhibits and Reports of Form 8-K 9
SIGNATURES 9
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BALANCE SHEET
JUNE 30, 1999
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ASSETS
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Current Assets
Cash on Hand $300.00
Bank West Checking Account 4,565.89
Nevada State Bank Checking 45,225.69
Other Current Assets - CD 100,000.00
--------------
Total Current Assets $150,091.58
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
Offering Costs 157,700.00
--------------
Total Other Assets 245,553.49
--------------
Total Assets $418,365.45
==============
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<TABLE>
LIABILITIES & CAPITAL
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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
Capital Stock Issued 12,682.05
Additional Paid-In Capital 1,445.922.53
Retained Earnings (695,509)
Net Income (353,367.48)
--------------
Total Capital 409,728.10
--------------
Total Liabilities & Capital 418,365.45
==============
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INCOME STATEMENT
THREE MONTHS ENDING JUNE 30, 1999
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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 0.00
---------------
Gross Profit 5,667.68
Expenses
Total Expenses 163,649.22
--------------
Net Income (Loss) ($157,981.54)
==============
</TABLE>
<PAGE>
<TABLE>
INCOME STATEMENT
SIX MONTHS ENDING JUNE 30, 1999
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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 0.00
--------------
Gross Profit 7,177.37
Expenses
Total Expenses 360,544.85
--------------
Net Income (Loss) ($353,367.48)
==============
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<TABLE>
STATEMENT OF CASH FLOWS
SIX MONTHS ENDING JUNE 30, 1999
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Cash Flow from operating activities
Net Income (Loss) $ (353,367.48)
Adjustments to reconcile net ----------------
income to net cash provided by
operating activities
Other Current Assets (100,000.00)
Current Portion-Lease 6,564.50
-----------------
Total Adjustments (93,435.50
-----------------
Net Cash provided by Operations (446,802.98)
=================
Cash Flows from investing activities
Used For
Furniture Fixtures & Equipment (9,741.38)
Suspense (2,750.00)
Patents (23,539.99)
Offering costs (13,700.00)
-----------------
Net cash used in investing (49,731.37)
=================
Cash Flows from financing activities
Capital Stock Issued 543,250.00
Additional Paid-In Capital 982,787.85
Beginning Balance Equity 156,786.35
Capital Stock Issued (539,736.95)
Net cash used in financing 1,143,087.25
---------------
Net increase (decrease) in cash $ 646,552.90
===============
Summary
Cash Balance at End of Period $ 50,091.58
Cash Balance at Beginning of Period (13,793.39)
---------------
Net Increase (Decrease) in Cash $ 36,298.19
===============
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<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.
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
$2,188 for the period ending March 31, 1999, this represented a 22%
decrease in average daily operating expenses.
The decrease in expenses was primarily the result of the Company
decreasing legal and professional expenses during the period ending June
30, 1999.
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 $1,992 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 360% 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
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.
<PAGE>
Liquidity and Capital Reserves
As of June 30, 1999 (Unaudited)
As of June 30, 1999, the Company's assets were $418,365 and its
liabilities were $8,637 resulting in an excess of assets of $409,728. Cash
was $150,092 at June 30, 1999 as compared to cash of $324,437 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 2, 1999 Date:September 2, 1999
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