<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 JANUARY 31, 1996
( ) 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 March 13, 1996
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 January 31, 1996 and
April 30, 1995............................................................ 4
Consolidated Statements of Operations for the three and nine month periods
ended January 31, 1996, January 31, 1995 and Since Being a Development
Stage Company............................................................. 5
Consolidated Statements of Cash Flows for the year-to-date periods ended
January 31, 1996, January 31, 1995, 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
JANUARY 31, 1996
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>
JANUARY 31, APRIL 30,
1996 1995
<S> <C> <C>
ASSETS
CURRENT
Cash and cash equivalents $ 217,150 $ 227,122
Accrued interest receivable 1,616 0
Prepaid expenses 500 0
---------- ----------
$ 219,266 $ 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 January 31, 1996 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 (160,701) (152,846)
---------- ----------
Total stockholders' equity 219,206 227,061
---------- ----------
$ 219,266 $ 227,122
---------- ----------
---------- ----------
</TABLE>
Form 10-QSB
Page 4 of 8
<PAGE>
APPLIED MEDICAL DEVICES, INC.
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS THREE MONTHS NINE MONTHS NINE MONTHS SINCE BEING
ENDED ENDED ENDED ENDED A
JAN. 31, 1996 JAN. 31, 1995 JAN. 31, 1996 JAN. 31, 1995 DEVELOPMENT
STAGE COMPANY
<S> <C> <C> <C> <C> <C>
EXPENSES
General and administrative $ 7,493 $ 5,180 $ 21,311 $ 18,581 $ 321,291
---------- ---------- ---------- ---------- ---------
TOTAL EXPENSES 7,493 5,180 21,311 18,581 321,291
---------- ---------- ---------- ---------- ---------
OTHER INCOME
Interest income 2,921 2,117 9,053 5,361 97,001
Other income - 2 63 4 32,536
Gain from sale of in-
vestment in common stocks - - 4,340 675 31,053
---------- ---------- ---------- ---------- ---------
TOTAL OTHER INCOME 2,921 2,119 13,456 6,040 160,590
---------- ---------- ---------- ---------- ---------
NET LOSS $ (4,572) $ (3,061) $ (7,855) $ (12,541) $(160,701)
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
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>
NINE MONTHS NINE MONTHS SINCE BEING
ENDED ENDED A DEVELOPMENT
JAN. 31, 1996 JAN. 31, 1995 STAGE COMPANY
<S> <C> <C> <C>
OPERATING ACTIVITIES
Net loss $ (7,855) $(12,541) $(160,701)
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) (556) (43,050)
Other - - 10
Accrued interest receivable (1,616) (800) (1,616)
(Increase) prepaid expenses (500) (500) (500)
-------- -------- ---------
NET CASH USED BY
OPERATING ACTIVITIES (14,312) (15,072) (224,442)
-------- -------- ---------
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 (9,972) (13,647) 59,966
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 227,122 243,787 157,184
-------- -------- ---------
CASH AND CASH EQUIVALENTS,
END OF PERIOD $217,150 $230,140 $ 217,150
-------- -------- ---------
-------- -------- ---------
</TABLE>
Form 10-QSB
Page 6 of 8
<PAGE>
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.
NINE MONTHS ENDED JANUARY 31, 1996 AND JANUARY 31, 1995.
During the nine months ended January 31, 1996, the Company had a
loss of approximately $7,900. The Company incurred general and
administrative costs of approximately $21,300. 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 $9,100. During the nine months ended January 31, 1995, the
general and administrative costs were approximately $18,600 and the Company's
revenues consisted of primarily interest income of approximately $5,400 and
approximately $700 from the gain on the sale of investment securities. The
Company incurred a loss of approximately $12,500 for the period ended
January 31, 1995.
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
JANUARY 31, 1996
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: March 14, 1996 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> 9-MOS
<FISCAL-YEAR-END> APR-30-1996
<PERIOD-START> MAY-01-1995
<PERIOD-END> JAN-31-1996
<CASH> 217,150
<SECURITIES> 0
<RECEIVABLES> 1,616
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 219,266
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 219,266
<CURRENT-LIABILITIES> 60
<BONDS> 0
0
0
<COMMON> 4,831,906
<OTHER-SE> (4,612,700)
<TOTAL-LIABILITY-AND-EQUITY> 219,266
<SALES> 0
<TOTAL-REVENUES> 13,456
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 21,311
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (7,855)
<INCOME-TAX> 0
<INCOME-CONTINUING> (7,855)
<DISCONTINUED> (7,855)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (7,855)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
