<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For Period Ended June 30, 1999
--------------------------------------------------------------
[ ] Transition Report Pursuant to Section 13 or 15 (d) of the Securities
Exchange Act of 1934
For the transition period from to
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Commission File Number 333-76427
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Panoramic Care Systems, Inc.
------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 84-1165714
- ----------------------------------- --------------------------------
(State of Incorporation) (IRS Employer ID Number)
5181 Ward Road Wheat Ridge, CO 800033
- ---------------------------------------- --------------------------------
(Address of principle executive offices) (city) (state) (zip code)
(303) 422-3886
-------------------------------------------------------
Registrant's telephone number including area code
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
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
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Transitional Small Business Disclosure format (check one):
YES NO X
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The number of shares outstanding of the Registrant's $0.001 par value common
stock on August 17, 1999 was 4,875,000.
<PAGE>
PANORAMIC CARE SYSTEMS, INC.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page No.
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements 3 - 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8 - 11
PART II. OTHER INFORMATION ITEM 13
</TABLE>
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
PANORAMIC CARE SYSTEMS, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
--------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and equivalents $ 568,979 $ 350,122
Accounts receivable:
Trade, net of allowance for doubtful accounts 50,670 -
Subscription Receivable - 99,400
Prepaid expense and other 34,659 -
------------ ------------
Total current assets 654,308 449,522
PROPERTY AND EQUIPMENT, AT COST: 126,710 45,282
------------ ------------
Less accumulated depreciation (43,011) (35,011)
------------ ------------
Net property and equipment 83,699 10,271
CAPITALIZED SOFTWARE COSTS, net of accumulated
amortization of $19,800 and $0, respectively 369,836 75,000
TOTAL ASSETS $ 1,107,843 $ 534,793
------------ ------------
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities $ 55,076 $ 32,257
Deferred revenue 10,890 -
------------ ------------
Total current liabilities 65,966 32,257
STOCKHOLDERS' EQUITY
Common stock, par value $.001 per share;
authorized 50,000,000 shares; 4,710,000 and
3,016,000 issued and outstanding June 30, 1999 and
December 31, 1998, respectively 4,710 3,016
Additional paid-in capital 2,303,071 1,202,765
Accumulated deficit (1,265,904) (703,245)
------------ ------------
Total stockholders' equity 1,041,877 502,536
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,107,843 $ 534,793
------------ ------------
------------ ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
PANORAMIC CARE SYSTEMS, INC
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED
JUNE 30, JUNE 30,
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REVENUES:
Software license fees $ 36,190 $ - $ 36,190 $ -
Royalties - 11,348 21,008
Consulting fees - 7,941 7,941
Other - 713 - 713
------------ ------------ ------------ -----------
Total revenues 36,190 20,002 36,190 29,662
OPERATING EXPENSES
Cost of Sales 36,796 - 36,796 -
Salaries 157,205 50,000 207,114 100,000
Management fee - 5,641 - 11,741
Consulting fees 30,783 - 52,859 -
Recruiting fees - - 60,500 -
Other general and administrative 198,318 2,639 244,669 5,032
------------ ------------ ------------ -----------
423,102 58,280 601,938 116,773
Operating loss (386,912) (38,278) (565,748) (87,111)
OTHER INCOME (EXPENSE):
Interest income 549 - 3,089 -
------------ ------------ ------------ -----------
NET INCOME (LOSS) $ (386,363) $ (38,278) $ (562,659) $ (87,111)
------------ ------------ ------------ -----------
------------ ------------ ------------ -----------
BASIC AND DILUTED LOSS
PER COMMON SHARE: $ (0.12) $ (0.02) $ (0.18) $ (0.04)
------------ ------------ ------------ -----------
------------ ------------ ------------ -----------
BASIC AND DILUTED
WEIGHTED AVERAGE
SHARES OUTSTANDING 3,200,000 2,000,000 3,158,000 2,000,000
------------ ------------ ------------- ------------
------------ ------------ ------------- ------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
PANORAMIC CARE SYSTEMS, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JUNE 30,
1999 1998
------------- -------------
<S> <C> <C>
CASH FLOW FROM OPERATING ACTIVITIES:
Net loss $ (562,659) $ (87,111)
Adjustments to reconcile net loss to net cash from operating activities:
Contributed services - 68,500
Depreciation & software amortization 27,800 4,750
(Increase) decrease in accounts receivable (50,670) 9,640
Increase in prepaid expenses (34,659) -
Increase in accounts payable 22,819 3,800
Increase in deferred revenue 10,890 -
------------- -------------
Net cash provided by (used in) operating activities (586,479) (421)
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property plant and equipment (81,428) -
Capitalized software costs (214,636) -
------------- -------------
Net cash used in investing activities (296,064) -
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock, net of offering costs 1,002,000 -
Stock subscriptions receivable 99,400 -
------------- -------------
Net cash provided by financing activities 1,101,400 -
NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 218,857 (421)
CASH AND EQUIVALENTS, BEGINNING OF PERIOD 350,122 741
------------- -------------
CASH AND EQUIVALENTS, END OF PERIOD $ 568,979 $ 320
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
PANORAMIC CARE SYSTEMS, INC.
NOTES TO FINANCIAL STATEMENTS
1. INTERIM FINANCIAL INFORMATION - BASIS OF PRESENTATION
The accompanying financial statements of Panoramic Care Systems, Inc. (the
"Company") have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions for Form 10-QSB and Article 10 of Regulation S-X. The balance
sheet as of June 30, 1999 and the statements of operations for the three
and six months ended June 30, 1999 and 1998, and the statements of cash
flows for six months ended June 30, 1999 and 1998, are unaudited but
include all adjustments (consisting of normal recurring adjustments) which
the Company considers necessary for a fair presentation of the financial
position at such date and the operating results and cash flows for those
periods. Although the Company believes that the disclosures in these
financial statements are adequate to make the information presented not
misleading, certain information normally included in financial statements
and related footnotes prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to the rules
and regulations of the Securities and Exchange Commission. The accompanying
financial statements should be read in conjunction with the financial
statements and notes included in the Company's prospectus filed on June 24,
1999 with the Securities and Exchange Commission.
Results for any interim period are not necessarily indicative of results
for any other interim period or for the entire year. In the opinion of
management, the accompanying unaudited financial statements contain all
adjustments necessary to present fairly the financial position as of June
30, 1999 and the results of operations and statement of cash flows for the
periods presented. These statements reflect all adjustments, consisting of
normal recurring adjustments, which in the opinion of management, are
necessary for fair presentation of information contained therein. The
results of operations for the six month periods ending June 30, 1999 and
1998 are not necessarily indicative of results to be expected for the full
year.
2. TRADE RECEIVABLES
The following information summarizes trade receivables:
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1999 1998
---------- -----------
<S> <C> <C>
Accounts Receivable 50,670 -
Less allowance for doubtful accounts ( - ) -
---------- -----------
$ 50,670 $ -
---------- -----------
---------- -----------
</TABLE>
The Company had one distributor, which comprised 100% or more of the
quarterly sales through the period ending June 30, 1999.
3. REVENUE RECOGNITION
The Company recognizes software license fees revenue at the time the
product is installed at the customers site. During the period ending June
30, 1999, two installations were completed, and software license and
maintenance agreement fees for the period were $36,190. The Company had a
backlog of $55,890 for software not yet installed at a customer site.
Revenue from support and software maintenance agreements is deferred at the
time the agreement is executed and recognized ratably over the contractual
period of twelve months. At the end of June 30, 1999 the Company had
deferred revenue of $10,890 associated with software maintenance
agreements. The Company recognizes revenues from consulting services when
such services are provided. All costs associated with licensing of software
products, support and update services, and training and consulting services
are expensed as incurred.
6
<PAGE>
4. NET INCOME (LOSS) PER SHARE
Basic earnings (loss) per share are calculated by dividing the net loss by
the weighted average common shares outstanding during the period. For
purposes of computing diluted earnings per share, dilutive securities are
not included when the effect is antidilutive.
Options to employees to purchase 455,000 and warrants to purchase 540,000
shares of common stock were not included in the computation of diluted
earnings per share because their effect was anti-dilutive for the period
ending June 30, 1999.
7
<PAGE>
FORWARD-LOOKING STATEMENTS
Statements made in this Form 10-QSB that are not historical or current
facts are "forward-looking statements" made pursuant to the safe harbor
provisions of Section 27A of the Securities Act of 1933 ("The ACT") and
Section 21E of the Securities Exchange Act of 1934. These statement often
can be identified by the use of terms such as "may," "will," "expect,"
"believes," "anticipate," "estimate," "approximate" or "continue," or the
negative thereof. The Company intends that such forward-looking statements
be subject to the safe harbors for such statements. The Company wishes to
caution readers not to place undue reliance on any such forward-looking
statements, which speak only as of the date made. Any forward-looking
statements represent management's best judgment as to what may occur in the
future. However, forward-looking statements are subject to risks,
uncertainties and important factors beyond the control of the Company that
could cause actual results and events to differ materially from historical
results of operations and events and those presently anticipated or
projected. These factors include adverse economic conditions, entry of new
and stronger competitors, inadequate capital, unexpected costs and failure
to capitalize upon access to new markets. You should understand that
various factors, in addition to those discussed elsewhere in this document
and in the documents referred to in this document, could affect the future
results of the Company and could cause results to differ materially from
those expressed in such forward-looking statements. The Company disclaims
any obligation subsequently to revise any forward-looking statements to
reflect events or circumstances after the date of such statement or to
reflect the occurrence of anticipated or unanticipated events.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following is a discussion and analysis of Panoramic Care Systems,
Inc. financial condition and results of operations for the three months and
six months ended June 30, 1999 and 1998. We also discuss certain factors
that may affect our prospective financial condition and results of
operations. This section should be read in conjunction with the Condensed
Financial Statements and the Company's Prospectus dated June 24, 1999 which
has been filed with the Securities and Exchange Commission and is available
from the Company at no charge.
The company sells computer software and provides consulting services
to healthcare professionals to assist in identifying, estimating, and
managing costs and expenses related to the provision of patient care
services in extended stay healthcare facilities. The computer software uses
patient symptoms to develop a detailed treatment plan and forecast expected
costs of treatment to the healthcare provider.
In the second quarter of 1999 Panoramic completed the beta testing of
"Pathfinder SC", formerly "Panoramic Care Post Acute Manager", and released
the product for sale. The Company was able to complete its first sales and
installations of the product, even though there was a delay in completing
the contractual agreement with a second distributor. Subsequent to the end
of the second quarter, the Company has announced that it has signed a
distribution agreement with Solomon Healthcare consulting. Solomon
Healthcare Consulting is a nationally recognized consulting firm
specializing in consulting and management services for long term care
providers. They have earned a national reputation for providing high
quality professional services to skilled nursing facilities, home health
agencies, and health care vendors by producing positive financial and
operational results. Panoramic and Solomon will be positioned to assist
skilled nursing facilities and other long term care providers to succeed
under the challenges faced by today's health care environment such as
Medicare's Prospective Payment System.
Panoramic developed Pathfinder SC with the aim of: (i) automating
access to all pertinent guidelines; (ii) providing standardized guidance as
to when and where to most appropriately deliver each service a patient
requires; and (iii) automating the documentation to assure timely
reimbursement and compliance.
Panoramic is attempting to achieve four goals with this product:
1. Minimize costs by effectively managing the clinical services
delivered;
2. Reduce the administrative time associated with regulatory
and guideline compliance;
3. Provide users with the ability to accurately diagnose and
track services delivered to assist in delivering adequate
quality of care, efficiently; and
8
<PAGE>
4. Enable the sharing of information between care-giving
facilities.
Our limited operating history and the early stage of development in
the markets for our software makes it difficult or impossible to predict
our revenues and operating results. We believe that our prospects should be
considered in light of the risks and difficulties encountered by companies
at early stage development. We may not be successful in addressing these
risks and difficulties.
RESULTS OF OPERATIONS FOR THREE MONTHS ENDED JUNE 30, 1999
COMPARED TO THE THREE MONTHS ENDED JUNE 30, 1998
Net revenue for the three months ended June 30, 1999 was $36,190. This
was an increase of $16,188 or 81% from $20,002 in the three months ended
June 30, 1998 The increase is associated with the release of Pathfinder SC
in the quarter and the installation at two sites during the quarter,
including software maintenance fees. Contribution to the increase in sales
includes the addition of one software distributor who was trained on the
installation of the software package. For the quarter ending June 1999 the
Company experienced sales growth of $39,190 compared to no software license
fee revenue during the first quarter. The Company's revenues in previous
quarters were mainly derived from royalties and consulting fees versus
software licensing fees in 1999.
Cost of Revenues in the current quarter was 102% of revenue ($36,796)
compared to ($0) for the three months ended June 30, 1998. It is
anticipated that the cost of revenues will improve as training of new
system installers is completed and they become more familiar with
installation of new systems.
General and Administrative Expenses (G&A) increased $328,026 or 568%
from $58,280 in 1999 to $386,306 for the quarter ending June 1999. Salaries
increased $107,205 from $50,000 in 1998 to $157,205 in 1999. This increase
in G&A expenses and salaries is associated with the hiring of additional
personnel and relocation to new office facilities in anticipation of the
release of Pathfider SC. Consulting fees increased $30,783 in 1999 compared
to $ 0 in the same period in 1998. This is the result of the Company
utilizing outside services relating to the growth and financing of the
Company. Other general and administrative expenses increased $195,679 in
1999 from $2,639. The increased expenditure is the result of marketing
costs and amortization of software costs
Interest income increased $549 in the three months ended June 30, 1999
from $ 0 in 1998 to $549 in 1999. This increase in interest income is
attributed to the initial public offering in the quarter.
Net Loss was $386,363 for the three months ended June 30, 1999,
compared to $38,278 net loss for the same period in 1998, or an increase of
$348,085 loss over the same period. The net losses are associated with the
increased G&A necessary to maintain a continued quarterly sales growth rate
with the rollout of the new software products. Losses are anticipated to
continue through the current fiscal year due to expenditures leading sales
growth rates.
RESULTS OF OPERATIONS FOR SIX MONTHS ENDED JUNE 30, 1999
COMPARED TO THE SIX MONTHS ENDED JUNE 30, 1998
Net revenue for the six months ended June 30, 1999 was $36,190
compared to revenues of $29,662 for the same period in 1998. This
represents an increase of $6,528 or 22% over the six month ending June 30,
1998. The increase is associated with delivery of the Pathfinder SC
software and installation of the product in two skilled nursing facilities
in the first six months of 1999.
Cost of Revenues was $36,796 or 102% of revenue compared to $0 for the
six months ended June 30, 1998. It is anticipated that cost of revenues
will improve through the remainder of the fiscal year as installations grow
and the resellers have more experience with the installation process.
General and Administrative Expenses (G&A) increased $448,369 or 384%
from $116,773 for the first six months in 1998 to $565,142 for the same six
months period in the 1999. Salaries increased $107,114 from $100,000 in
1998 to $207,114 in 1999. This increase is associated with the addition of
professional staff in Q1 and Q2 required to meet the ramp of the Company's
anticipated sales growth rates and continued product development. This
represents 37% of the total expenses for the six months. Recruiting and
consulting fees totaled $113,359 for the six months compared to $ 0 in
9
<PAGE>
the previous period in 1998. This increase is associated with the
recruitment of a new CEO, Vice President Sales and Marketing, Director
of Technical Support, and the use of consulting service to fill roles
schedule to be added in the future. Other general and administrative
expense increased $239,637 from $5,032 in the 1998 period compared to total
expenses of $244,669 year to date. The increase in SG&A is attributed to
the Company's intentional plan to expand the sales volume of the Company's
software products requiring the addition of personnel and primarily
consists of marketing costs and amortization of software development costs.
Interest income increase $3,089 in the six months ended June 30, 1999
from $0 in 1998. This increase in interest income is attributed to the
completion of the private placements and the initial public offering in the
first six months of 1999.
Net loss totaled $ 562,659 for the six months ended June 30, 1999,
compared to $87,111 net loss for the same period in 1998, an increase of
$475,548 net loss over the same period. The net loss is associated with the
increased G&A necessary to ramp quarterly sales growth rate. Losses are
anticipated to continue through the current fiscal year due to expenditures
leading sales growth rates.
LIQUIDITY AND CAPITAL RESOURCES
During the first quarter the Company completed a $92,000 private
placement of 184,000 shares of the Company's common stock, all at a price
of $.50 per share to officers, directors, key employees, consultants and
friends of the Company. The Company received $71,975 from the offering net
of offering costs of $20,025.
In June 1999, the Company completed its initial public offering of
1,100,000 shares of the Company's common stock at an offering price of
$1.00 per share. As part of the initial public offering the holders of
the $100,000 8% convertible notes, at their option, converted the notes
into 100,000 shares of common stock at $1.00 per share. Additionally,
the Agent was issued 110,000 shares of the Company's common stock in the
Canadian Offering along with warrants to purchase 165,000 shares of the
Company's common stock at a price of $1.00 for the first 12 months and
at a price of $1.15 for the next 12 months. The net cash proceeds to the
Company from the initial public offering were approximately $930,025
after payment of expenses of approximately $168,000.
Net proceeds from the issuances by the Company for the above listed
offerings were approximately $1,002,000.
As a result of the private placement and the Company's IPO in June
1999, the Company's cash position increased by $218,857 since December 31,
1998 and its working capital increased from $417,265 at December 31, 1998
to $588,342 at June 30, 1999. The Company has incurred losses since
inception. In addition to having to rely upon cash generated from
operations, the Company has had to rely upon the sale of equity securities
for cash required for administration, research and development, capital
improvements, sales and marketing programs and advertising, among other
things. Management anticipates to continue to incur losses and to increase
its accounts receivables as the growth of sales is expected to continue
with the installation of new systems. Management believes that its current
cash position and the anticipated receipts will be sufficient to meet its
working capital needs for the foreseeable future. If, however, cash flow is
insufficient to cover cash expenditures, the Company will have to continue
to rely upon equity and debt financing during such period. There can be no
assurance that financing, whether debt or equity, will always be available
to the Company in the amount required at any particular time or particular
period or, if available, that it can be obtained on terms satisfactory to
the Company.
The Company currently has 490,000 stock options and 540,000
warrants outstanding. All the options and warrants are exercisable at
a price of at least, $1.00 per share. If all stock options and warrants
were exercised, the Company would receive proceeds of $1,030,000. All
of these funds would be available to the Company as working capital.
Cash Flow
During the six months ended June 30, 1999, cash increased by
$218,857. Net cash used in operating activities for the six months
ended June 30, 1999 was $586,479 compared to $421 for the six months
ended June 30, 1998. The increase of $586,058 was primarily due to an
increase in the net loss. This resulted from additional employees hired
to continue software development, support and sales of the new product,
as well as primarily marketing costs.
10
<PAGE>
Net cash used in investing activities for the six months ended June
30, 1999 was $296,064 compared to $0 for the comparable period in 1998. The
increase was due primarily from the capitalization of software development
costs totaling $214,636 associated with the completion of the PCM software.
Additionally, the company acquired $81,428 in property plant and equipment
for new office space.
Net Cash provided from financing activities for the six months ended
June 30, 1999 was $1,101,400 compared to $0 for the same period in 1998.
This increase is associated with the private placements, initial public
offering and collection of stock subscription receivable.
The Company will continue to capitalize software development costs
consistent with its strategy of the development of the software for the
marketplace.
IMPACT OF THE YEAR 2000 ISSUE
The Year 2000 computer problem refers to the potential for system and
processing failures of date-related data as a result of computer-controlled
systems using two digits rather than four to define the applicable year.
For example, computer programs that have time-sensitive software may
recognize a date represented as "00" as the year 1900 rather than the year
2000. This could result in a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary
inability to process transactions, send invoices, or engage in similar
normal business activities.
State of Readiness
All Panoramic products and upgrades will be Year 2000 compliant.
Panoramic, however, may be affected by Year 2000 issues related to
non-compliant internal systems developed by third party vendors. Panoramic
has reviewed its internal systems, including its accounting system, and has
found them to be Year 2000 compliant. Panoramic is not currently aware of
any Year 2000 problem relating to any of its internal, material systems.
Panoramic does not believe that it has any material systems that contain
embedded chips that are not Year 2000 compliant.
Management believes that absent a systemic failure outside the control
of Panoramic, such as a prolonged loss of electrical or telephone service,
Year 2000 problems at third parties will not have a material impact on
Panoramic. Panoramic has no contingency plan for systemic failures such as
loss of electrical or telephone services. Panoramic's contingency plan in
the event of a non-systemic failure is to establish relationships with
alternative suppliers or vendors to replace failed suppliers or vendors.
Panoramic has no other contingency plans or intention to create other
contingency plans.
Cost Associated With Year 2000 Compliance
Panoramic does not separately track expenditures relating to Year 2000
compliance. Such expenditures are primarily absorbed within the product
development organization. Based on its overall development expenditure and
the amount of time people in the organization are spending on Year 2000
compliance, Panoramic believes that its spending on compliance to date has
not been material.
Any failure of Panoramic to make its products Year 2000 compliant
could result in a decrease in sales of its products, an increase in
allocation of resources to address Year 2000 problems of its customers
without additional revenue commensurate with such dedication of resources,
or an increase in litigation costs relating to losses suffered by
Panoramic's customers due to such Year 2000 problems. Failure of
Panoramic's internal systems could temporarily prevent it from processing
orders, issuing invoices, and developing products, and could require to
devote significant resources to correcting such problems. To Panoramic's
knowledge, however, the internal accounting systems have been attested by
the suppliers as Year 2000 compliant. Due to the general uncertainty
inherent in the Year 2000 computer problem resulting from the uncertainty
of the Year 2000 readiness of third party suppliers and vendors, Panoramic
is unable to determine at this time whether the consequences of Year 2000
failures will have a material impact on its business, results of
operations, and financial condition.
11
<PAGE>
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
Not applicable
Item 2. CHANGES IN SECURITIES
Not applicable
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable
Item 5. OTHER INFORMATION
Not applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits
27 Financial Data Schedule.
b) Reports on Form 8-K.
During the quarter covered by this report, the Company filed
the following reports on Form 8-K.
None
12
<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.
(Registrant)
Date: August 20, 1999 /s/ William M. Hunter
------------------------------- -----------------------------------
William M. Hunter
President, Chief Executive Officer
Date: August 20, 1999 /s/ Kent A. Nuzum
------------------------------- -----------------------------------
Kent A. Nuzum
Chief Financial Officer
13
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 568,979
<SECURITIES> 0
<RECEIVABLES> 50,670
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 654,308
<PP&E> 126,710
<DEPRECIATION> (43,011)
<TOTAL-ASSETS> 1,107,843
<CURRENT-LIABILITIES> 65,966
<BONDS> 0
0
0
<COMMON> 4,710
<OTHER-SE> 1,037,167
<TOTAL-LIABILITY-AND-EQUITY> 1,107,843
<SALES> 36,190
<TOTAL-REVENUES> 36,190
<CGS> 36,796
<TOTAL-COSTS> 565,142
<OTHER-EXPENSES> (3,089)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (562,659)
<INCOME-TAX> 0
<INCOME-CONTINUING> (562,659)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (562,659)
<EPS-BASIC> 0.18
<EPS-DILUTED> 0.18
</TABLE>
