<PAGE>
U.S. Securities and Exchange Commission
Washington, D.C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 1995
( ) TRANSITION REPORT UNDER TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM __________ TO __________
Commission file number 0-9064
APPLIED MEDICAL DEVICES, INC.
(Exact name of small business issuer as specified in its charter)
Colorado 84-0789885
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
8100 W. Crestline Avenue, Suite A-15,
#330, Littleton, CO 80123-1200
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including
area code (970) 479-2800
191 University Blvd., #302, Denver, CO 80206
(Former address)
Check whether the Issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
State the number of shares outstanding of each of the Issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at December 7, 1995
Common Stock, $.01 par value 65,977,800
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APPLIED MEDICAL DEVICES, INC.
Form 10-QSB
Table of Contents
Part I. Financial Information........................................ 3
Consolidated Balance Sheets as of October 31, 1995 and
April 30, 1995........................................................ 4
Consolidated Statements of Operations for the three and six
month periods ended October 31, 1995, October 31, 1994 and Since
Being a Development Stage Company..................................... 5
Consolidated Statements of Cash Flows for the year-to-date
periods ended October 31, 1995, October 31, 1994, and Since
Being a Development Stage Company..................................... 6
Management's Discussion and Analysis of Financial Condition
and Results of Operations............................................. 7
Part II. Other Information........................................... 7
Signature Page........................................................ 8
Form 10-QSB
Page 2 of 8
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APPLIED MEDICAL DEVICES, INC.
FORM 10-QSB
OCTOBER 31, 1995
PART I. FINANCIAL INFORMATION
ITEM I. FINANCIAL STATEMENTS
The unaudited financial statements reflect all adjustments and contain all
information necessary, in the opinion of management, for a fair presentation
of the financial position and results of operation for the interim periods
reported when these statements are read in conjunction with the notes to
financial statements included in the Registrant's Form 10-KSB for the year
ended April 30, 1995.
Form 10-QSB
Page 3 of 8
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APPLIED MEDICAL DEVICES, INC.
(A Developmental Stage Company)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
OCTOBER 31, APRIL 30,
1995 1995
<S> <C> <C>
ASSETS
CURRENT
Cash and cash equivalents $ 221,248 $ 227,122
Accrued interest receivable 1,590 0
Prepaid expenses 1,000 0
----------- -----------
$ 223,838 $ 227,122
----------- -----------
----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 60 $ 61
----------- -----------
COMMITMENT
STOCKHOLDERS' EQUITY
Common Stock - $.01 par value,
75,000,000 shares authorized,
issued and outstanding 65,977,800
as of October 31, 1995 and April 30, 1995 659,778 659,778
Additional paid-in capital 4,172,128 4,172,128
Accumulated deficit (4,451,999) (4,451,999)
Deficit accumulated during the
development stage (156,129) (152,846)
----------- -----------
Total stockholders' equity 223,778 227,061
----------- -----------
$ 223,838 $ 227,122
----------- -----------
----------- -----------
</TABLE>
Form 10-QSB
Page 4 of 8
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APPLIED MEDICAL DEVICES, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS SIX MONTHS SIX MONTHS SINCE BEING
ENDED ENDED ENDED ENDED A DEVELOPMENT
OCT. 31, 1995 OCT. 31, 1994 OCT. 31, 1995 OCT. 31, 1994 STAGE COMPANY
<S> <C> <C> <C> <C> <C>
EXPENSES
General and administrative $ 6,666 $ 6,503 $ 13,818 $ 13,401 $ 313,798
---------- ---------- ---------- ---------- ---------
TOTAL EXPENSES 6,666 6,503 13,818 13,401 313,798
---------- ---------- ---------- ---------- ---------
OTHER INCOME
Interest income 3,084 1,733 6,132 3,244 94,080
Other income - 1 63 2 32,536
Gain from sale of in-
vestment in common stocks - 675 4,340 675 31,053
---------- ---------- ---------- ---------- ---------
TOTAL OTHER INCOME 3,084 2,409 10,535 3,921 157,669
---------- ---------- ---------- ---------- ---------
NET LOSS $ (3,582) $ (4,094) $ (3,283) $ (9,480) $(156,129)
---------- ---------- ---------- ---------- ---------
---------- ---------- ---------- ---------- ---------
NET LOSS PER SHARE OF
COMMON STOCK $ NIL $ NIL $ NIL $ NIL
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING 65,977,800 65,977,800 65,977,800 65,977,800
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
Form 10-QSB
Page 5 of 8
<PAGE>
APPLIED MEDICAL DEVICES, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
SIX MONTHS SIX MONTHS SINCE BEING
ENDED ENDED A DEVELOPMENT
OCT. 31, 1995 OCT. 31, 1994 STAGE COMPANY
<S> <C> <C> <C>
OPERATING ACTIVITIES
Net loss $ (3,283) $ (9,480) $(156,129)
Adjustments to reconcile net loss to
cash used in operating activities:
Gain from sale of investment in
common stocks (4,340) (675) (31,053)
Issuance of common stock for services - - 7,565
Cash provided by (used for):
Accounts receivable - - 4,903
Accounts payable (1) (56) (43,050)
Other - - 10
Accrued interest receivable (1,590) (1,000) (1,590)
(Increase) prepaid expenses (1,000) - (1,000)
-------- -------- ---------
NET CASH USED BY
OPERATING ACTIVITIES (10,214) (11,211) (220,344)
-------- -------- ---------
INVESTING ACTIVITIES
Proceeds from sale of investment
in common stock 4,340 1,425 47,040
-------- -------- ---------
FINANCING ACTIVITIES
Proceeds from issuance of common stock - - 139,368
Proceeds from exercise of stock warrants - - 98,000
-------- -------- ---------
NET CASH PROVIDED BY
FINANCING ACTIVITIES - - 237,368
-------- -------- ---------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (5,874) (9,786) 64,064
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 227,122 243,787 157,184
-------- -------- ---------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $221,248 $234,001 $ 221,248
-------- -------- ---------
-------- -------- ---------
</TABLE>
Form 10-QSB
Page 6 of 8
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION.
PLAN OF OPERATION.
The Company has continued its efforts to acquire, merge with or enter
into another form of business combination with another entity, and the
Company plans to continue these efforts in the current fiscal year. The
Company is presently exploring a potential business combination, but has not
entered into any agreements. It is presently unknown whether a transaction
will be concluded. The Company considers its current cash and cash
equivalent balances adequate to satisfy its cash requirements for the next
twelve months, even if legal and accounting and other expenses were to
increase significantly in connection with a business combination. Due to the
nature of the Company's present activities, however, the Company is unable to
predict its likely expenditures for professional fees and other expenses.
The Company has no major capital commitments.
The Company has no significant equipment or plant, and has not engaged
in any research or development activities during the past two fiscal years.
At present, the Company employs one person, on a part-time basis. The
Company does not expect any changes unless a suitable business combination is
identified.
SIX MONTHS ENDED OCTOBER 31, 1995 AND OCTOBER 31, 1994.
During the six months ended October 31, 1995, the Company had a loss of
approximately $3,300. The Company incurred general and administrative costs
of approximately $13,800. The Company's revenues consisted primarily of
$4,300 from the gain on the sale of investment securities and interest on
temporary cash and other money market instruments of approximately $6,200.
During the six months ended October 31, 1994, the general and administrative
costs were approximately $13,400 and the Company's revenues consisted of
primarily interest income of approximately $3,200 and approximately $700 from
the gain on the sale of investment securities. The Company incurred a loss
of approximately $9,500 for the period ended October 31, 1994.
As stated above in the Plan of Operations, due to the nature of the
Company's activities, the Company's prospects for the future are dependent on
a number of variables which cannot be predicted. Generally, the Company
could incur significant costs in evaluating the desirability of an
acquisition or other form of business combination. Should the Company
determine to proceed with the business combination, the transaction costs
could be substantial. Thereafter, results of operations would likely be
materially affected by the business acquired by the Company.
PART II. OTHER INFORMATION
Not Applicable
Form 10-QSB
Page 7 of 8
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APPLIED MEDICAL DEVICES, INC.
FORM 10-Q
OCTOBER 31, 1995
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
APPLIED MEDICAL DEVICES, INC.
Date: December 11, 1995 By: /s/ Allan K. Lager
---------------------------------
Allan K. Lager, President
and Chief Financial Officer
Form 10-QSB
Page 8 of 8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1996
<PERIOD-START> MAY-01-1995
<PERIOD-END> OCT-31-1995
<CASH> 221,248
<SECURITIES> 0
<RECEIVABLES> 1,590
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 223,838
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 223,838
<CURRENT-LIABILITIES> 60
<BONDS> 0
<COMMON> 4,831,906
0
0
<OTHER-SE> (4,608,128)
<TOTAL-LIABILITY-AND-EQUITY> 223,838
<SALES> 0
<TOTAL-REVENUES> 10,535
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 13,818
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (3,283)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,283)
<DISCONTINUED> (3,283)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,283)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
