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 September 30, 1995
Commission File Number: 0-16375
THERMOGENESIS CORP.
(Exact name of Small Business issuer as specified in its charter)
Delaware 94-3018487
(State or other jurisdiction (I.R.S. Employer of
incorporation or organization) Identification No.)
11431 Sunrise Gold, Ste. A, Rancho Cordova, CA 95742
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (916) 638-8357
Former name, former address and former fiscal year, if changed since last
report.
Check whether the issuer: (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__
The issuer had 20,355,434 shares of common stock outstanding on October 28,
1995.
Total of sequentially numbered pages _____
Exhibit index on sequential page ___
<PAGE>
THERMOGENESIS CORP.
INDEX
PART I
Condensed Financial Statements (Unaudited):
Page Number
Condensed Balance Sheets at September
30, 1995 and June 30, 1995 2
Condensed Statements of Operations
for the Three Months ended
September 30, 1995 and 1994 4
Condensed Statements of Cash Flows
for the Three Months Ended September
30, 1995 and 1994 5
Notes to Condensed Financial Statements 6
Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II
Item 6. Exhibits and Reports on Form 8-K. 9
SIGNATURES 10
<PAGE>
THERMOGENESIS CORPORATION
Condensed Balance Sheet
(Unaudited)
September 30, June 30,
ASSETS 1995 1995
____________ __________
Current assets:
Cash $193,450 $325,965
Accounts receivable, net of allowance for doubt-
ful of $72,913 ($72,913 at June 30, 1995) 815,478 675,240
Net investment in sales-type leases 35,731 35,731
Inventory 934,437 1,014,309
Prepaid expenses 21,434 9,711
___________ __________
Total current assets 2,000,530 2,060,956
Equipment, at cost less accumulated depreciation
of $216,674 ($200,557 at June 30, 1995) 289,973 176,535
Long-term net investment in sales-type leases 77,692 86,460
Prepaid royalties, net of accumulated amortization
of $296,122 ($277,259 at June 30, 1995) 263,378 277,241
Leased equipment, net 34,748 40,778
Other assets 20,224 20,869
__________ __________
$2,686,545 $2,662,839
__________ __________
__________ __________
See accompanying notes.
<PAGE>
THERMOGENESIS CORPORATION
Condensed Balance Sheet (Cont'd)
(Unaudited)
September 30, June 30
1995 1995
____________ ________
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $400,038 $512,931
Current portion of long-term lease
obligations 30,624 -
Accrued payroll and related expenses 104,309 55,346
Deferred revenue 38,300 60,000
Customer deposits 19,925 19,523
___________ __________
Total current liabilities 593,196 647,800
Deferred rent 13,397 14,456
Long-term lease obligations 79,756 -
Commitments
Shareholders' equity:
Common stock, $.001 par value;
50,000,000 shares authorized:
20,355,434 issued and outstanding 20,356 20,356
Paid in capital in excess of par 7,794,621 7,794,621
Accumulated deficit (5,814,781) (5,814,394)
___________ ___________
Total shareholders' equity 2,000,196 2,000,583
___________ ___________
$2,686,545 $2,662,839
___________ ___________
___________ ___________
See accompanying notes.
<PAGE>
THERMOGENESIS CORPORATION
Condensed Statements of Operations
(Unaudited)
Three Months Ended
September 30, September 30,
1995 1994
_____________ _____________
Net Sales $851,903 $800,633
Cost of Sales 443,535 459,386
Gross profit 408,368 341,247
Expenses:
General and administrative expense 84,307 66,727
Selling and marketing expense 169,121 169,918
Research and development expense 155,214 70,814
_____________ _____________
Total expenses 408,642 307,459
Interest income 2,823 2,381
Interest expense 2,936 -
_____________ _____________
Net income (loss) ($387) $36,169
_____________ _____________
_____________ _____________
Net income (loss) per share ($0.00) $0.00
_____________ _____________
_____________ _____________
Shares used in computing
net income (loss) per share 20,355,000 20,593,000
_____________ _____________
_____________ _____________
See accompanying notes.
<PAGE>
THERMOGENESIS CORPORATION
Condensed Statements of Cash Flows
Three Months Ended September 30, 1995 and 1994
Increase (Decrease) in Cash
(Unaudited)
1995 1994
____________ ____________
Cash flows from operating activities:
Net income (loss) ($387) $36,169
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 36,655 33,434
Net changes in operating
assets and liabilities:
Accounts receivable (140,238) (215,865)
Investment in sales type leases 8,768 10,287
Inventory 79,872 (89,144)
Prepaid expenses (11,723) 5,069
Accounts payable and
accrued liabilities (112,893) 69,406
Accrued payroll and related
expenses 48,963 (39,159)
Customer deposits 402 (28,132)
Deferred revenue (21,700) -
Deferred rent (1,059) -
____________ _____________
Total adjustments (112,953) (254,104)
____________ _____________
Net cash used by operating activities (113,340) (217,935)
Cash flows from investing activities:
Capital expenditures - (78,998)
____________ _____________
Net cash used in investing activities - (78,998)
Cash flows from financing activities:
Principal payments on long-term
lease obligations (19,175) -
____________ _____________
Net decrease in cash (132,515) (296,933)
Cash at beginning of period 325,965 347,769
____________ _____________
Cash at end of period $193,450 $50,836
____________ _____________
____________ _____________
See accompanying notes.
<PAGE>
THERMOGENESIS CORP.
Notes to Condensed Financial Statements
September 30, 1995
(Unaudited)
1. Interim Reporting.
These Condensed Financial Statements should be read in conjunction with the
Company's Annual Report (Form 10-KSB) for the year ended June 30, 1995. In
the opinion of management, all adjustments (which consist of only normally
recurring adjustments) necessary for a fair presentation of the condensed
financial statements have been made. The results of operations for the three
months ended September 30, 1995 are not necessarily indicative of the results
to be expected for the full year.
Inventories
Inventories are stated at the lower of cost (First-In, First-Out) or market
and consist approximately of the following:
September 30, June 30,
1995 1995
____________ ___________
Raw materials $ 417,945 $ 453,669
Work in process 104,570 113,508
Finished goods 411,922 447,132
____________ ___________
Total $ 934,437 $1,014,309
____________ ___________
____________ ___________
Net Investment in Sales Type Leases
The net investment in sales type leases consists of the
following:
September 30, June 30,
1995 1995
____________ ___________
Total minimum lease payments receivable $ 128,741 $ 140,020
Less unearned interest (15,318) (17,829)
____________ ___________
Net investment in sales type leases $ 113,423 $ 122,191
____________ ___________
____________ ___________
Statement of Cash Flows
The Company incurred approximately $130,000 in long-term lease obligations
for the purchase of computer equipment.
<PAGE>
Management's Discussion and Analysis of
Financial Condition and Results of Operation
for the Three Months Ended September 30, 1995
The following is Management's discussion and analysis of certain significant
factors which have affected the Company's financial condition and results of
operations during the periods included in the accompanying financial
statements.
Results of Operations
Sales and revenues:
Net sales increased for the three months ended September 30, 1995 by 6% from
the corresponding quarter in 1994. Sales increases were primarily due to
increased sales of the Company's human blood plasma freezer products while
sales of human blood plasma thawer products decreased from the same quarter of
the prior year.
Cost of sales as a percent of sales for the quarter ended September 30, 1995
was approximately 52% as compared to 57% for the corresponding quarter in 1994.
The decrease in cost of sales as a percent of sales was due to increased sales
of human blood plasma freezer products which have a higher profit margin.
General and administrative expenses for the quarter ended September 30, 1995
increased by 26% from the corresponding quarter in 1994 due to increased
salaries for additional personnel.
Selling and marketing expenses for the quarter ended September 30, 1995
increased slightly over the corresponding quarter in 1994. While salaries
increased due to added personnel, these increases were offset by decreases in
phone, commission and other operating expenses due to soliciting foreign sales
from the United States.
Research and development expenses for the quarter ended September 30, 1995,
increased 119% over the respective 1994 quarter. The increase was due to
development efforts for a computerized human blood plasma sample storage and
retrieval system, a computerized liquid nitrogen biological storage and
retrieval freezer system, continuing development of a device for creating
autologous fibrinogen sealant and continued development of computer
controllers for plasma thawers and freezers. Management believes that research
and development is essential to maintaining the Company's market position.
Therefore, the Company considers such costs a continuing cost of doing
business.
Liquidity and Capital Resources
The Company has consumed cash resources for operating activities. These
resources have been primarily consumed for marketing activities and product
development.
Working capital decreased modestly by $5,822 from June 30, 1995. This decrease
was primarily due to a decrease in current assets primarily offset by a
decrease in current liabilities.
<PAGE>
Management's Discussion and Analysis of
Financial Condition and Results of Operation
for the Three Months Ended September 30, 1995 (Cont'd)
Liquidity and Capital Resources (Cont'd)
The Company continues to contain operating costs. The Company is currently
seeking equity financing to supplement its current cash position. While no
assurances can be given, management believes that with a combination of
increased sales volume, further financing, and cost containment, the Company
can continue to operate for the next twelve months.
The Company has no significant outstanding capital commitments at September
30, 1995.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal proceedings.
None.
Item 2. Changes in Securities.
None.
Item 3. Default Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
None.
(b) Reports on Form 8-K.
Current Report on Form 8-K for event date
September 27, 1995.
<PAGE>
THERMOGENESIS CORP.
Signatures
In accordance with the requirements of the Exchange Act, the
registrant has caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THERMOGENESIS CORP.
(Registrant)
Dated October 30, 1995
Merrill L. Parker,
Controller (Principal Financial and
Accounting Officer)
Philip H. Coelho,
President and Chief Executive Officer
(Principal Executive Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB
FOR THE QUARTER ENDED SEPTEMBER 30, 1995 FOR THERMOGENESIS CORP. AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000811212
<NAME> THERMOGENESIS CORP.
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