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, 2000 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 X No
As of September 30, 2000, there were 12,158,600 shares of common stock
outstanding.
<PAGE>
ANONYMOUS DATA CORPORATION
FOR THE QUARTER ENDED
SEPTEMBER 30, 2000
INDEX
PART I - FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets as of September 30, 2000
and December 31, 1999 3
Income Statements for the three-month periods
ended September 30, 2000 and September 30, 1999 4
Income Statements for the nine-month periods
ended September 30, 2000 and September 30, 1999 5
Statement of Stockholders' Equity
for the nine-months ended September 30, 2000 6
Statements of Cash Flow for the nine-month
periods ended September 30, 2000 and September 30, 1999 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operation 8-12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults by the Company upon its
Senior Securities 13
Item 4. Submission of Matter to a Vote of
Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports of Form 8-K 13
SIGNATURES 14
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<TABLE>
ANONYMOUS DATA CORPORATION
(A Development Stage Enterprise)
BALANCE SHEETS
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
ASSETS
September 30, December 31,
2000 1999
(unaudited)
<S> <C> <C>
Current assets:
Cash $ 5,371 $ 3,939
Prepaid expenses 275,408
280,779 3,939
Furniture, fixtures and equipment 292,969 125,449
Less accumulated depreciation (56,070 ) (36,224)
--------- --------
236,899 89,225
Unamortized patent costs 113,536 96,038
--------- ---------
631,214 189,202
========== ========
</TABLE>
<TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Accounts payable 37,569
Payroll taxes payable 6,623 7,089
Accrued interest, related party 20,850 5,100
Other 1,528
---------- ---------
27,473 51,286
Long-term debt, related party 350,906 51,000
---------- ---------
Total liabilities 378,379 102,286
---------- ---------
Stockholders' equity:
Common stock, $.001 par, 100,000,000 shares
authorized, 12,158,160 shares issued
and outstanding 12,158 9,438
Preferred stock, $.001 par, 25,000,000 shares
authorized, none issued and outstanding
Additional paid-in capital 5,558,262 1,692,376
Deficit accumulated during development stage (5,317,585 ) (1,614,898)
------------ -----------
252,835 86,916
------------ -----------
$ 631,214 $ 189,202
============ ===========
</TABLE>
See notes to financial statements.
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<TABLE>
ANONYMOUS DATA CORPORATION
(A Development Stage Enterprise)
INCOME STATEMENTS
FOR THE THREE MONTH PERIODS ENDED
SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
(Unaudited)
2000 1999
<S> <C> <C>
Operating costs and expenses:
Research and development $ 882,404 $ 7,859
Administrative 81,528 95,551
Depreciation 6,615
Interest 7,746 685
----------- ----------
978,293 104,095
Income, other 3,109
----------- ----------
Net loss $ (978,293) $ (100,986)
============ ===========
Loss per share $ (0.09) $ (0.01)
============= ===========
Weighted average of number of
shares outstanding 11,154,246 9,413,160
============= ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
ANONYMOUS DATA CORPORATION
(A Development Stage Enterprise)
INCOME STATEMENTS
FOR THE NINE MONTH PERIODS ENDED
SEPTEMBER 30, 2000 AND SEPTEMBER 30, 1999
(Unaudited)
2000 1999
<S> <C> <C>
Operating costs and expenses:
Research and development $ 3,488,885 $ 236,253
Administrative 180,380 583,912
Depreciation 19,846
Interest 16,051 685
------------ -----------
3,705,162 820,850
Income, other 2,475 10,286
------------ -----------
Net loss $ (3,702,687) $ (810,564)
============= ===========
Loss per share $ (0.33) $ (0.09)
============= ===========
Weighted average of number of
shares outstanding 11,154,246 9,222,360
============= ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
ANONYMOUS DATA CORPORATION
(A Development Stage Enterprise)
STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE NINE MONTHS ENDING SEPTEMBER 30, 2000
(Unaudited)
Common Stock Additional Accumulated
Shares Par Value Paid-In Capital Deficit Total
<S> <C> <C> <C> <C> <C>
Balance,
December 31,
1999 9,438,160 $ 9,438 $ 1,692,376 $ (1,614,898) $ 86,916
Shares issued
to consultants
for services 2,705,000 2,705 3,835,901 3,838,606
Shares issued
to employees
for services 15,000 15 29,985 30,000
Net loss (3,702,687) (3,702,687)
----------- ------- ---------- ------------- -----------
Balance,
September 30,
2000 12,158,160 $ 12,158 $ 5,558,262 $ (5,317,585) $ 252,835
============ ======== =========== ============= ===========
</TABLE>
See notes to financial statements.
<PAGE>
<TABLE>
ANONYMOUS DATA CORPORATION
(A Development Stage Enterprise)
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2000
AND SEPTEMBER 30, 1999
2000 1999
(unaudited)
<S> <C> <C>
Net cash used by operating activities $ (111,928) $ (437,103)
Investing activities:
Purchase of equipment (167,520 ) (44,946)
Patent costs (17,498 ) (31,100)
Deferred offering costs 144,000
------------- -------------
Net cash used in investing activities (185,018) 67,954
Financing activities:
Payments on lease purchase obligation (1,528) (5,247)
Sale of common stock 365,250
Loan from officer/principal shareholder 299,906
------------- -------------
Net cash provided by financing activities 298,378 360,003
------------- -------------
Net increase in cash 1,432 (9,146)
Cash, beginning 3,939 13,793
------------- -------------
Cash, ending $ 5,371 $ 4,647
============= =============
</TABLE>
See notes to financial statements.
<PAGE>
ANONYMOUS DATA CORPORATION
(A Development Stage Enterprise)
NOTES TO FINANCIAL STATEMENTS
1. Basis of presentation.
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-QSB and Item 310(b) of
Regulation S-B. Accordingly, they do not include all of the information and
disclosures required by generally accepted accounting principles for annual
financial statements. In the opinion of management, all adjustments
(consisting only of normal recurring adjustments) considered necessary for a
fair presentation have been included. The results of operations for any
interim period are not necessarily indicative of results for the full year.
These statements should be read in conjunction with the financial statements
and related notes, that appear in the Company's Annual Report on Form 10-KSB
for the year ended December 31, 1999. The balance sheet at December 31,
1999, was derived from the audited financial statements included in that
report.
2. Related party transactions:
The Chairman has loaned the Company during the nine months ended September
30, 2000, $299,906 at 10% annually. The balance due at September 30, 2000 is
$350,906 plus accrued interest of $20,850. Interest payments are due
annually with principal balance due in its entirety at the five year maturity
date.
3. Common stock issuances:
For the period ended September 30, 2000, the Company issued 2,720,000 shares
for services. Of these, 1,720,000 shares previously registered using Form S-
8 were issued to employees and consultants under established stock based
employee benefit programs. Accordingly, these shares were valued at market
value on the date of grant. The remaining shares issued by the Company
(1,000,000) are restricted shares to others for services pursuant to Rule
144, which were valued based on the market value at the time of grant, less a
10% discount. Prepaid expenses in the amount of $275,408 represents the
unamortized portion of future services to be rendered through January 31,
2001.
4. Going concern contingency:
The Company's ability to complete certain research projects and development
of its equipment and software development is dependent upon obtaining
additional equity or debt financing. This condition could prevent the
Company from commencing business operations and continuing as a going
concern. The financial statements, however, have been prepared assuming the
Company will continue as a going concern and reflect no adjustments that
might result from the outcome of this uncertainty. However, because of this
uncertainty, no effect has been given in the balance sheet to any future
income tax benefit of the loss recorded to date.
<PAGE>
ANONYMOUS DATA CORPORATION
(A Development Stage Enterprise)
NOTES TO FINANCIAL STATEMENTS
4. Going concern contingency (continued):
Management expects to raise additional equity capital by offering its common
stock for sale to investors through private placement or by registration with
the SEC under the Securities Act of 1933 or obtain debt financing to complete
its research projects and equipment and obtain the related additional
patents. Management expects that the Company's medical data management
equipment, when completed, will have a wide range of applications in medical
testing data storage. Management's ability to effectively implement its
plans could have a material and adverse effect upon the Company's business,
financial condition and future operations.
<PAGE>
Item 2. Management's Discussion and Analysis or Plan 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" or "ADC")
formed in November 1996, is a development stage enterprise engaged in the
business of data management using a biometric identification system. The
biometric identification system; (i) archives individual data, such as
medical educational information, for access by registered users through rapid
sorting using scanning of a portion of their anatomy as a preliminary search
method; and, (ii) permits a second method of identification of individuals
volunteering for payment as plasma donors.
Background
We have obtained rights to a method of linking files of archived data to the
anatomy of an individual. This method allows the search function for records
to be more rapid and accurate and re-checked according to the name of the
individual. We have spent $281,438 during 1999 and $3,488,885 through
September 30, 2000 toward research and development toward the refinement of
our biometric individual data identification system.
The term BIOMETRIC derives from the words body (BIO) and measurement
(METRIC). The science of biometrics has in recent years developed the
technology to take a reading from a human (such as electronic scan of a
fingerprint, iris scan, facial recognition, palm print, voice sample, etc).
The electronic scan is then matched with the same biometric marker for
purposes of recognition and verification of identity. The United States
Patent and Trademark Office has issued two U.S. patents to Dr. James E.
Beecham, Chairman of the Company. The Patents, Patent Numbers U.S. 5,876,926
[PCT/U.S. 98/16435]) and U.S. 5,897,989 [PCT/U.S. 97/08015], pertain to a
method, system and apparatus that permit an individual to submit biologic
test specimens for medical testing under biometric identification. The system
then allows for the subsequent retrieval of test results from a computerized
database utilizing the same biometric personal identification. These Patents
have been exclusively licensed to us from Dr. Beecham.
Plan of Operation over the Next 12 Months
The patented applications, in non-U.S. territories, are used to collect
medical specimens in containers labeled by "biometric index". For example, a
biometric index may be obtained from the scan of a fingerprint and/or the
scan of the iris of the eye of the specimen donor. After testing in a
certified laboratory, the test data is stored electronically under linkage to
that same personal biometric index. Access to such "biometrically" stored
information is controlled by the re-scan of the specimen donor. Since viewing
the data requires "unlocking" the computer file by scanning the same
fingerprint and/or eye as was used for sending the specimen to the lab in the
first place, our system provides the secure protection of the donors sample
and limits mistakes that are sometimes made in the donation process.
<PAGE>
We have developed a plan and are in the process of developing a method for
providing services and products worldwide based on our exclusive patent
licenses. These products are being offered as turnkey systems and we are
also offering services directly to subscribers domestically and abroad.
Financing and Liquidity
As of September 30, 2000 and September 30, 1999 (Unaudited)
As of September 30, 2000, the Company's assets were $631,214 and its
liabilities were $378,379, resulting in an excess of assets of $252,835. The
assets include prepaid expenses of $256,702 representing the unamortized
portion of future services to be rendered through January 31, 2001 by
consultants who received the Company's common shares for such service. Cash
was $5,731 at September 30, 2000 as compared to cash of $3,939 on September
30, 1999, an increase of $1,792. This increase was primarily the result of
additional loans by the chairman.
Prior to the year 2000, the Company has funded its deficit cash flow from
private placements of the Company's common stock. It is anticipated that
proceeds from 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.
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.
PART II--OTHER INFORMATION
Item 1. Legal Proceedings.
The Company recently settled a suit filed on January 14, 2000, by Asia
Pacific, Inc., a Nevada Corporation, dba Laser Barcode Solutions, which was
filed in District Court in Clark County, Nevada, Case Number A413603
Department XII against Anonymous Data Corporation and the President James
Beecham claiming Breach of Contract, Tortious Breach of Contract and
Negligent/Intentional Misrepresentation.
<PAGE>
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
James E. Beecham
President
Date: November 17, 2000
