UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10Q-SB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED June 30, 2000
Securities and Exchange Commission File Number
000-26369
Dicom Imaging Systems, Inc.
(Exact name of registrant as specified in its charter)
Nevada 88-0422026
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
Suite 432, 114 West Magnolia Street
Bellingham, Washington
98225
(Address of principal executive offices, including zip code)
(877) 624-6243
(Registrant's Telephone Number, Including Area Code)
(877) 284-7590
(Registrant's Facsimile 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
requirements for the past 90 days. YES X NO
The number of issued and outstanding shares of the Registrants Common Stock,
$0.001 par value, as of June 30, 2000, was 21,600,000.
<PAGE>
DICOM IMAGING SYSTEMS, INC.
PART I-FINANCIAL INFORMATION
Page
Item 1. Financial Statements:
Consolidated Balance Sheet at June 30, 2000 and December 31, 1999......... 4
Consolidated Statements of Operations for the three and six months
ended June 30, 2000 and June 30, 1999..................................... 5
Consolidated Statements of Cash Flows for the six months
ended June 30, 2000 and June 30, 1999..................................... 6
Consolidated Statements of Stockholders' Deficit for the six months
ended June 30, 2000 and the year ended December 31, 1999 ................. 7
Notes to Unaudited Consolidated Financial Statements......................8-9
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations ................................................10-13
PART II-OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities............................................ 14
Item 3. Defaults Upon Senior Securities.................................. 14
Item 4. Submission of Matters to a Vote of Security Holders............. 14
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K................................ 14
Signatures.............................................................. 15
Exhibit 27.1 Financial Data Schedule.................................... 16
<PAGE>
Information Required in Quarterly Report
Certain Forward-Looking Information
The information contained in this Quarterly Report includes forward-looking
statements. Since this information is based on current expectations which
involve risks and uncertainties, actual results could differ materially from
those expressed in the forward-looking statements. Information contained in this
quarterly report is qualified in its entirety by reference to Dicom's filing
with the Securities and Exchange Commission on form 10KSB, fiscal year 1999.
Particular attention should be given to the risk factors contained therein.
Part I . Financial Information
Item 1. Financial Statements
Additional information relevant to the following interim unaudited
financial information is included in by reference to Dicom's audited financial
statements and notes contained on its filing with the Securities and Exchange
Commission on Form 10KSB, as amended for the fiscal year ending December 31,
1999.
<PAGE>
CONSOLIDATED BALANCE SHEET
(Expressed in U.S. dollars)
As At June 30, 2000
June 30, 2000 December 31, 1999
(Unaudited) (Audited)
Assets
Current Assets:
Cash and cash equivalents $ 361,705 $ 18,263
Accounts receivable 118,527 48,215
Inventory 48,337 -
Prepaid expenses 83,634 30,468
-------------------------------
612,203 96,946
Intangible assets 295,298 15,237
Equipment 102,308 46,639
-------------------------------
$ 1,009,809 $ 158,822
===============================
Liabilities and Stockholders' Deficit
Current liabilities:
Accounts payable $ 48,649 $ 56,431
Accrued liabilities 258,088 89,673
-------------------------------
306,737 146,104
-------------------------------
Deferred revenue 884,129 248,699
Stockholders' deficit:
Authorized: 10,000,000 preferred stock,
$.001 par value
50,000,000 common stock,
$.001 par value
Issued:
21,600,000 common stock
(December 31, 1999 - 7,200,000) 21,600 7,200
Additional paid in capital 1,027,499 912,815
Deficit (1,230,156) (1,155,996)
---------------------------------
(181,057) (235,981)
$ 1,009,809 $ 158,822
=================================
<PAGE>
CONSOLIDATED STATEMENT OF OPERATIONS
(Expressed in U.S. dollars)
(Unaudited)
3 months ended 3 months ended 6 months ended 6 months ended
June 30, 2000 June 30, 1999 June 30, 2000 June 30, 1999
-------------------------------------------------------------------------------
Sales $ 447,430 $ - $ 1,195,658 $ -
Cost of sales 229,482 - 364,873 -
---------------------------------------------------------------
Gross profit 217,948 - 830,785 -
---------------------------------------------------------------
Operating
expenses:
-Depreciation 33,948 - 41,683 -
-General and
admin. 327,334 341,618 458,135 647,552
Research and
develop. 136,490 10,769 210,572 10,769
Selling and
marketing 113,451 - 194,555 -
---------------------------------------------------------------
611,223 352,387 904,945 658,321
---------------------------------------------------------------
Net income
(loss) (393,275) (352,387) (74,160) (658,321)
===============================================================
Net income
(loss) per
share, basic (0.02) (0.02) (0.00) (0.03)
and diluted ---------------------------------------------------------------
Weighted
average common
shares
outstanding
21,600,000 21,600,000 21,600,000 21,600,000
----------------------------------------------------------------
<PAGE>
CONSOLIDATED STATEMENT OF CASH FLOWS
(Expressed in U.S. dollars)
(Unaudited)
6 months ended 6 months ended
June 30, 2000 June 30, 1999
---------------------------------------
Cash flows from operating activities:
Net income (loss) (74,160) (658,321)
Items not involving cash:
Stock based compensation 129,084 -
Depreciation and amortization 41,683 -
Loss on sale of fixed assets 3,011 -
Changes in operating assets and liabilities:
Accounts receivable (70,312) (44,202)
Inventory (48,337) -
Prepaid expenses (53,166) -
Accounts payable (7,782) 21,295
Accrued liabilities 168,415 -
Deferred revenue 635,430 -
-----------------------------------
Net cash provided by
(used in) operating
activities 723,866 (681,228)
Cash flows from financing activities:
Issue of common shares - 639,250
----------------------------------
Net cash provided by
financing activities - 639,250
Cash flows from investing activities:
Sale of equipment 2,500 -
Purchase of equipment (76,054) (25,541)
Purchase of medical license (250,000) -
Purchase of trademarks (56,870) -
----------------------------------
Net cash used in investing activities (380,424) (25,541)
----------------------------------
Net increase (decrease) in
cash and cash equivalents 343,442 (67,519)
Cash and cash equivalents, beginning of period 18,263 222,902
----------------------------------
Cash and cash equivalents, end of period $ 361,705 $ 155,383
---------------------------------
Supplementary information:
Interest paid $ 191 $ -
<PAGE>
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
(Expressed in U.S. dollars)
As At June 30, 2000
(Unaudited)
Total
Common stock Additional Income stockholders'
Shares Amount paid-in capital (Deficit) equity
-------------------------------------------------------------------------------
Balance,
12-31-99 7,200,000 $ 7,200 $ 912,815 $(1,155,996) $ (235,981)
Issuance
of stock
options - - 1,424,934 - 1,424,934
Deferred
compensation
of stock
options - - (1,295,850) - (1,295,850)
Net loss - - - (74,160) (74,160)
3:1 Stock
split
completed
on
4-5-00 14,400,000 14,400 (14,400) - -
--------------------------------------------------------------------------------
Balance,
6-30-00 21,600,000 $ 21,600 $ 1,027,499 $(1,230,156) $ (181,057)
--------------------------------------------------------------------------------
<PAGE>
Dicom Imaging Systems, Inc.
Notes to Consolidated Financial Statements
(Expressed in U.S. dollars)
Three months ended June 30, 2000
1. Nature of business:
These consolidated financial statements have been prepared on a going concern
basis in accordance with United States generally accepted accounting principles.
The going concern basis of presentation assumes the Company will continue in
operation for the foreseeable future and will be able to realize its assets and
discharge its liabilities and commitments in the normal course of business.
Certain conditions, discussed below, currently exist which raise substantial
doubt upon the validity of this assumption. The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
The Company's future operations are dependant upon the market's acceptance
of its product and the Company's ability to license their product around the
world. There can be no assurance that the Company's product will be able to
secure market acceptance or that they will be able to license their product. As
of June 30, 2000, the Company has not generated sufficient revenues to meet it's
operating costs, is continuing to develop its business, and has experienced
negative cash flow from operations. Operations have primarily been financed
through the issuance of common stock. The Company does not have sufficient
working capital to sustain operations until the end of the year ended December
31, 2000. Additional debt or equity financing will be required and may not be
available or may not be available on reasonable terms.
2. Significant accounting policies:
(a) Basis of presentation:
These unaudited interim consolidated financial statements have been prepared in
accordance with generally accepted accounting principles in the United States.
The unaudited interim financial statements include all adjustments, consisting
solely of normal recurring adjustments, which in management's opinion are
necessary for a fair presentation of the financial results for the interim
periods. The financial statements include the accounts of the Company's wholly
owned subsidiary, 527403 B.C. Limited. All significant intercompany balances and
transactions have been eliminated in the unaudited consolidated financial
statements. The financial statements have been prepared on a basis consistent
with the annual financial statements of the Company and should be read in
conjunction therewith.
(b) Use of estimates:
The preparation of the unaudited consolidated financial statements in accordance
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and recognized revenues and expenses for the
reporting periods. In these unaudited consolidated financial statements, the
significant areas requiring the use of estimates include the valuation of
long-lived assets, including intangible assets, the fair value of stock options
and the recognition of revenue. Actual results may significantly differ from
these estimates.
(c) Revenue recognition:
The Company generates revenues through three sources: hardware sales, software
license revenues and services revenues. Hardware revenues are recognized when
goods are shipped and title passes. Software license revenues are normally
generated from licensing the perpetual right to use the Company's products
directly to end-users and indirectly through resellers. The Company recognizes
as revenue only the fee payable from the reseller, net of any discount. Service
revenues are generated from telephone support services.
Revenues from software license agreements are recognized upon delivery of
software if persuasive evidence of an arrangement exists, collection is
probable, the fee is fixed or determinable, and vendor-specific objective
evidence exists to allocate the total fee to elements of the arrangement.
Vendor-specific objective evidence is typically based on the price charged when
an element is sold separately, or, in the case of an element not yet sold
separately, the price established by authorized management, if it is probable
that the price, once established, will not change before market introduction.
Elements included in multiple element arrangements could consist of software
products, upgrades, enhancements or customer support services. The Company's
agreements with its customers and resellers do not contain product return
rights.
Service revenues are recognized ratably over the term of the contract, typically
one year. If a transaction includes both license and service elements, license
fee revenues are recognized on shipment of the software, provided services do
not include significant customization or modification of the base product, and
the payment terms for licenses are not subject to acceptance criteria. Revenues
that have been prepaid or invoiced but do not yet qualify for recognition under
that Company's policies are reflected as deferred revenues.
(d) Inventories
Inventories are stated at the lower of cost, determined on a first-in,
first-out basis, and net realizable value.
3. Net income (loss) per share:
The basic and diluted weighted average number of common shares outstanding
gives effect on a retroactive basis to the 3 for 1 stock split which occurred on
April 5, 2000 for all shareholders as of record on March 31, 2000 and reflects
the issued and outstanding shares as of June 30, 2000. As all outstanding
dilutive securities, such as options, are anti-dilutive, basic and diluted loss
per share is the same.
<PAGE>
Item 2.
MANAGEMENT's DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATION FOR THE PERIOD ENDING JUNE 30, 2000
OPERATIONS FOR THE PERIOD ENDED JUNE 30, 2000
REVENUES
Revenues for the three months ended June 30, 2000 were $447,430. Of this
revenue, $78,112 represents revenue recognized from previously deferred
long-term license agreements and support contracts. The remaining $369,318 was
derived primarily from the sale of hardware and software licenses directly to
dentists in the United States. There were no sales in the period ended June
30,1999 as the Company was still in a start-up position. Revenues for the six
months ended June 30, 2000 total $1,195,658. $500,000 of this revenue was
recorded as deferred revenue at December 31, 1999 and was derived from the
termination of the agreement with Mr. Doug Campbell that resulted in a
settlement, whereby the Company fulfilled all of its obligations by delivering
to him 650 copies of the software license. Of the total sales amount, only
$65,541 remains in accounts receivable; the remainder was received in cash. All
of our revenues were paid in US currency.
The Company has recorded deferred revenue as at June 30, 2000 in the amount of
$884,129. This consists primarily of monies received in exchange for issuing
exclusive three and four-year contracts to distributors in the United Kingdom,
as well as Spain, Brazil, Mexico, Portugal ("the Spanish deal"), and Australia.
This deferred revenue will be recognized ratably over the term of the contracts
(3 to 4 years). These contracts also provide the Company with a royalty based on
sales by these distributors. The royalties are receivable starting in the second
year of these contracts. There was no deferred revenue as at June 30, 1999 as
the Company was still in a start-up position.
GROSS MARGIN
Cost of sales for the three months ended June 30, 2000 were $229,482,
leaving a gross margin of $217,948, which equates to 49% of sales. 38% of this
gross margin relates to the sales of hardware and software licenses directly to
dentists. The total cost of sales for the six months ended June 30, 2000 was
$364,873, leaving a gross margin of $830,785. 40% of this gross margin relates
to the sales of hardware and software licenses directly to dentists. The reason
for the fluctuation in gross margin relates to the proportion of hardware sales
versus software sales. In the second quarter of 2000, 56% of sales to dentists
were derived from hardware sales, compared to 44% in the first quarter. Hardware
sales have a higher associated cost of sales than software sales. Cost of sales
included software burning and hardware costs, freight costs and credit card
transaction charges, as well as support related salaries and telephone charges.
There were no cost of sales in the period ended June 30,1999 as the Company was
still in a start-up position.
OPERATING EXPENSES
Operating expenses for the three months ended June 30, 2000 include:
- Depreciation and amortization in the amount of $33,948 primarily on
computer and camera equipment used for demonstration purposes at tradeshows.
Depreciation and amortization was $41,683 for the six months ended June 30,
2000. The increase in the second quarter of 2000 is made up of increased
amortization due to the acquisition of the medical license, increased
depreciation due to the purchase of computer hardware and furniture related to
personnel increases and increased depreciation due to the purchase of new
demonstration equipment. The total cost of new computer hardware and furniture
purchased in the first six months of 2000 is $53,828. The total cost of new
demonstration equipment purchased in the first six months of 2000 is $19,956 and
is made up primarily of Compucam cameras. There was no depreciation in the
period ended June 30, 1999 because the Company owned no fixed assets at the
time.
-General and administrative costs in the amount of $327,334, compared to
$341,618 for the three months ended June 30, 1999. General and administrative
costs in 2000 include administrative salaries, audit and legal charges, investor
relations' charges, rent, insurance costs and office expenses. The general and
administrative costs in 1999 were made up almost exclusively of start-up
expenses. The total general and administrative expenses for the six months ended
June 30, 2000 are $458,135. The increase in the second quarter of 2000 was due
to increased personnel and hiring costs relating to new personnel, increased
investor relations costs related to the hiring of DeMonte Associates, increased
insurance premiums because of new directors, increased rent and telephone costs
related to new personnel, increased consulting costs due to business
opportunities assessment, non-recoverable financing fees and a loss on sale of a
fixed asset, as well as increases in office expenses such as additional printing
of business cards, office supplies and parking for new personnel.
- Research and development costs in the amount of $136,490 for software
development, compared to $10,769 for the three months ended June 30, 1999. The
increase is due to the hiring of a new IT officer and new staff members as well
as increased charges from outside developers. We expect our research and
development costs to increase in the next months as we complete the development
of the Xray and LabRX modules, as well as the medical version of the software.
The total research and development costs for the six months ended June 30, 2000
are $210,572.
- Selling and marketing costs of $113,451. The total selling and marketing
costs for the six months ended June 30 are $194,555. Selling and marketing costs
includes trade show costs, advertising, mailings, and web site maintenance.
These costs have increased in order to effect higher sales volumes. There were
no selling and marketing costs in the period ended June 30, 1999 as the Company
was still in a start-up position.
The resulting net loss for the three months ended June 30, 2000 was
$393,275, which equates to a fully diluted loss per share, after accounting for
the April 5, 2000 stock split, of $.02 per share, increasing the accumulated
deficit to $1,230,156. The net loss for the three months ended June 30, 1999 was
$352,387, which equated to a fully diluted loss per share of $.02 per share. The
amount of weighted average common shares outstanding for the period ended June
30, 1999 did not include any options, as these options did not have a dilutive
effect at the time.
We have implemented a stock option plan. The plan is an essential tool to
attract and retain the qualified personnel needed to implement our business
strategy. At June 30, 2000, we have granted 13,833,000 options (after accounting
for the April 5, 2000 stock split). While no options have been exercised as yet,
we recorded a non-cash charge to the income statement for the three months ended
June 30, 2000 of $97,568. The total deferred compensation expense relating to
the issuance of these options is $1,295,850.
The operations for the three months ended June 30, 2000 were funded primarily
from the cash generated from operating activities, including the monies received
for the license agreements with the United Kingdom and for the "Spanish deal".
CAPITIALIZATION, LIQUIDITY AND TRENDS
Purchases of Plant and Equipment
Dicom anticipates purchasing between $250,000 and $500,000 in computer
equipment and related hardware in the next 12 months. In addition, the Company
may need to expand its currently available office space to accommodate increased
growth. Additional space is available in White Rock, British Columbia and
Bellingham, Washington to expand the existing Dicom facility, though such space
may not be sufficient to accommodate Dicom's need for expansion.
Increases in the Number of Employees
Dicom may hire an additional 15 employees over the next 12 months in the
fields of software and web development, sales, marketing, business development
and administration. Faster than anticipated growth may increase this number.
Planned Financings for the Next 12 Months
Dicom will need to do one or more financings involving sale of its equity
or debt instruments during the next twelve months in order to sustain present
operations and to provide for future growth. The Company hopes to raise between
$4,000,000 and $10,000,000 from financings over the next twelve months.
Management of the Company has not determined the terms and conditions of such a
financing or whether such a financing would be for equity or debt or some
combination thereof. There can be no assurance that such financing would be
available under terms acceptable to the Company. Failure to secure such
financing would have a material adverse impact on the Company's ability to
conduct its business as presently operated or to develop any expansion plans.
Dicom's vision is to become a dynamic player in selected fields of dental
and medical imaging and related technologies within the global e-health care
market. It is the Company's current strategy to offer comprehensive imaging and
practice management software, hardware, Internet and support solutions to the
health professions. The Company's software products utilize the Microsoft
Windows family of operating systems on the desktop and over the Internet. In the
next 12 months of operations, the Company's general business approach is to
capture market share of imaging software in dentistry by producing and
distributing, free of charge, a quality imaging software application known as
ImagExplorer(TM) to each and every dentist, dental specialist, dental
laboratory, dental insurance company, and educational facility throughout North
America.
Presently, Dicom derives income from direct and indirect sales of software
modules, associated hardware, and international distribution licenses. Dicom
however, plans to introduce new hardware and software products this year, as
part of a general end-to-end solution strategy within an imaging e-health care
portal.
Dicom currently provides DICOM compliant software and related
technology to capture, manipulate, analyze and store digital dental images.
DICOM represents the emerging technical standard for the exchange of images
in dentistry and medicine.
Dicom's core competencies relate to the creation of industry-leading
dental imaging software, and the marketing of this software in conjunction
with related technologies such as camera hardware and associated software.
Currently, the software is distributed on CD or downloaded from the
Web for individual PC or Local Area Network client/server installation. It
is the Company's intention to develop the provision of its software within
an integrated end-to-end service environment, which incorporates hardware
technology, practice management software, electronic claims processing and
software support. Alongside the traditional software distribution model, we
envisage this service also being available over the Internet, which should
bring an advantage to the user by eliminating the hardware and computing
skill requirements of Dicom's product from the end-user, the dental
practice, as these would be handled remotely by the service provider.
Product Development
In addition to developing our existing and new software modules, we
seek to extend our offer to provide a world-class end-to-end solution for
dentists, encompassing all related technologies. This means adding practice
management and electronic insurance claim software together with a full
portfolio of high performance yet cost-efficient imaging hardware. We hope
to make this software available both on an installed client/server basis,
as appropriate, and for delivery over the Internet in an Application
Service Provider mode.
In our view, there is a strong belief among the major players in the
computing industry that software provision will swiftly migrate to a rental
model delivered over the Internet, as this provides a number of advantages
to the user such as: o Access to the latest technology at a reduced entry
price (renting vs. buying) o Immediate availability of upgrades with no
requirement for installation, minimizing of IT and networking headaches, as
well as maintenance requirements o Reduction of the cost of required
hardware (a simple browser with Internet access will replace high powered
computer processing requirements)
Ultimately, as dental businesses realize and start to leverage the
commercial advantages the Internet provides, we hope that our web presence
will evolve into an Internet dentistry portal. This portal could link
together all the elements of the supply chain in an industry trading hub -
dentists, insurers, pharmacies, wholesalers and supply product
manufacturers. Each would be able to interact with all the other components
in the supply chain in a more efficient manner with all the speed,
flexibility and superior economics that an e-commerce business model
provides. Dicom anticipates operating the trading hub on a transaction
based revenue model.
International Distribution
In addition to the above, Dicom anticipates formalizing distribution of its
products in Japan and China, as well as elsewhere in Asia, within the next
twelve months. Dicom also plans to have formalized distribution agreements in
Europe and Latin America over the next 12 months.
The computing industry has started to change its approach to software
distribution and ownership. Businesses today are increasingly shifting their
focus towards their core competency rather than the implementation and
maintenance of information technology. Networks play an increasingly important
role in our day-to-day lives and the Internet, the largest network of all, is
having the greatest impact in the business market today and will continue to do
so in the future. The Internet is acting as the main enabler, allowing
organizations to focus on their core business, outsourcing their overhead and
technology, and switching to an Internet-centric, hosted computing model.
To compete and thrive, it is imperative for any software manufacturer to
recognize this reality and to leverage the power of the Internet to its benefit
by modifying its product offering to enable new centrally hosted versions. In
this context, Dicom is no exception. In order to be increasing successful, the
Company will need to start diverting resources in 2001 towards the
re-engineering and adaptation of its product line to a hosted model.
<PAGE>
Presently, Dicom has operations in White Rock, British Columbia and
Bellingham, Washington. The White Rock office contains all of the corporate
functions and operations with the exception of some related marketing
activities, which take place in Bellingham, Washington. White Rock and
Bellingham are within 30 miles of each other.
The Company's intent is to move the majority of its operations to the United
States before the end of the current calendar year. These operations include
finance, research and development, testing and quality assurance, technical
operations, Internet production facilities, and marketing and sales. Some
important corporate functions and operations such as the chief executive office,
investor relations, business development and product development are to remain
in Canada. The Company is likely to maintain a small office in the Bellingham
area.
<PAGE>
PART II-OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
None.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
In March of 2000, Dicom had entered into a Software Agreement with CLG
Investments Limited ("Software Agreement") whereby CLG would pay a License Fee
of $2,250,000 for a license to certain Dicom software. CLG is granted the
exclusive right to distribute copies of Dicom's as ImagExplorer(TM), ImagEditor
(TM), Whitener and Simulator ("Licensed Products") dental imaging software
("License") within the territories of Mexico, Brazil, Spain and Portugal
("Territory"). $750,000 of the License Fee was paid by CLG upon the signing of
the Software Agreement. The remaining $1,500,000 of the License Fee was due in
two equal installments due by August 1, 2000 and December 20, 2000 respectively.
Dicom and CLG have agreed to an extension of their mutual obligations under the
Software Agreement for a sixty-day period. Under the terms of the extension, CLG
will not be required to make the August 1, 2000 payment until October 15, 2000
and Dicom will have until October 15, 2000 to deliver the software modules due
under the Software Agreement.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits.
Exhibit 27.1 Financial Data Schedule
(b) Reports on 8-K
None.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities Exchange Act of
1934, the Registrant has duly caused this registration statement to be signed on
its behalf by the undersigned, thereunto duly authorized.
DICOM IMAGING SYSTEMS, INC.
---------------------------
(Registrant)
Date: August 14, 2000
By: /s/ David Gane
David Gane
President and Chief Executive Officer
