<PAGE> 1
- -----------------------------------------------------------------
- -----------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
----------------------------------
FORM 10-Q
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly 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:
------------------------------
Commission file number 0-29462
------------------------------
MEDICAL MANAGEMENT SYSTEMS, INC.
(Exact name of Registrant as specified in its charter.)
COLORADO 95-4121451
(State of other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
5459 South Iris Street
Littleton, Colorado 80123
(Address of principal executive offices, including zip code.)
(303) 932-9998
Registrant's telephone 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 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 number of shares outstanding of the Registrant's Common Stock, no
par value per share, at September 30, 1999 was 263,156 shares.
- -----------------------------------------------------------------
- -----------------------------------------------------------------
<PAGE> 2
PART I
ITEM 1. FINANCIAL STATEMENTS.
Medical Management Systems, Inc.
(A Development Stage Company)
BALANCE SHEET
September 30, 1999 (Unaudited)
<TABLE>
<CAPTION>
ASSETS
<S> <C>
Cash $ -
-----------
Total Assets $ -
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable $ -
Salaries & bonuses payable 300,000
Advances from related parties -
-----------
Total Liabilities 300,000
Stockholders' Equity
Preferred stock, 10,000,000 shares authorized,
no par value; none issued and outstanding -
Common stock, 40,000,000 shares authorized,
no par value; 263,256 shares issued and
outstanding 1,287,718
Accumulated deficit (1,587,718)
-----------
Total Stockholders' Equity $ (300,000)
-----------
Total Liabilities and Stockholders' Equity $ -
===========
</TABLE>
1
<PAGE> 3
Medical Management Systems, Inc.
(A Development Stage Company)
STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended September 30, 1999 and 1998
and For the Period From Inception as a Development Stage
Company to September 30, 1999
<TABLE>
<CAPTION>
From
Inception of
Three Three Nine Nine Development
Months Months Months Months Stage to
1999 1998 1999 1998 09/30/99
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S>. <C> <C> <C> <C> <C>
CONTINUING OPERATIONS
Revenues $ - $ - $ - $ 90 $ 90
General and
administrative
expenses 2,218 5,350 310,058 10,709 357,757
------- ------- --------- -------- ---------
Loss from
continuing
operations (2,218) (5,350) (310,058) (10,619) (357,667)
DISCONTINUED OPERATIONS
Loss on disposal
of business - - - - (60,000)
Gain from recovery
of bad debts - - - - 10,000
------- ------- --------- -------- ---------
Income (loss) from
discontinued
operations - - - - (50,000)
------- ------- --------- -------- ---------
INCOME (LOSS) BEFORE
EXTRAORDINARY
ITEM (2,218) (5,350) (310,058) (10,619) (407,667)
EXTRAORDINARY ITEM
Relief of
liabilities - - - - 6,358
------- ------- --------- -------- ---------
NET INCOME
(LOSS) $(2,218) $(5,350) $(310,058) $(10,619) $(401,309)
======= ======= ========= ======== =========
</TABLE>
2
<PAGE> 4
Medical Management Systems, Inc.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
For the Nine Months Ended September 30, 1999 and 1998
and For the Period From Inception as a Development Stage Company
to September 30, 1999
<TABLE>
<CAPTION>
From Inception
of Development
Stage Company
to September
1999 1998 30, 1999
(Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C>
CASH FLOWS FROM OPERATIONS
Net loss $ (2,218) $ (10,619) $ (401,309)
Adjustments to reconcile
net loss to net cash used
by operating activities:
(Gain) loss on disposal
of business - - 43,642
Changes in current assets
and liabilities (11,036) (989) 284,022
--------- ---------- -----------
Net cash used by
operating activities (13,254) (11,608) (73,645)
CASH FLOWS FROM INVESTING ACTIVITIES
Collection of note
receivable - 1,500 10,000
--------- ---------- ----------
Net cash provided by
investing activities - 1,500 10,000
CASH FLOWS FROM FINANCING ACTIVITIES
Advances from related
parties - 10,140 41,427
Issue of common stock 13,254 13,254
--------- ---------- ----------
Net cash provided by
financing activities 13,254 10,140 54,681
--------- ---------- ----------
NET INCREASE (DECREASE)
IN CASH - 32 (8,964)
CASH, beginning of period - 451 8,964
--------- ---------- ----------
CASH, end of period $ - $ 483 $ -
========= ========== ==========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION
Settlement of account
payable $ - $ - $ 6,358
========= ========== ==========
Common stock issued to
retire notes payable and
accrued liabilities $ - $ - $ 235,000
========= ========= ==========
</TABLE>
3
<PAGE> 5
Medical Management Systems, Inc.
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Medical Management Systems, Inc. (the "Company") was incorporated as
Apache Investments, Inc. in 1987 under the laws of the State of
Colorado. In February 1992, the Company commenced its initial principal
operations of owning and operating a pet school and kennel in Grand
Prairie, Texas. In September 1991, the name of the Company was changed
to Dog World, Inc. In June 1993, the Company acquired a veterinary
practice in Irving, Texas. In April 1995, substantially all the
Company's assets and business operations were sold. The Company
subsequently changed its name to Medical Management Systems, Inc. and
has been in the development stage since the sale.
The Company currently has no business operations and intends to
actively seek, locate, evaluate, structure and complete mergers or
acquisitions of private companies, partnerships or sole
proprietorships.
2. OTHER INCOME AND NOTE RECEIVABLE
On May 7, 1997, the Company reached an agreement with a director of the
Company whereby the director agreed to pay $8,500 in cash along with a
promissory note for $1,500 in settlement of a dispute involving the
sale of Company assets in April 1995. In addition, the director agreed
to surrender options granted him to acquire 985,333 shared of the
Company's common stock, execute a Consent of Directors previously
executed by all other directors, transfer 25,000 shares of common stock
to another officer and director and release the Company from all
claims, demands and obligations. The Company accepted the cash and note
in satisfaction of a $60,000 note due from the director which had been
written off and recorded as a loss in its financial statements for the
year ended December 31, 1996.
The Company used $8,000 of the cash received to settle an outstanding
trade payable. The difference between the amount that had been due,
$14,358, and the amount paid has been recognized as income from relief
of indebtness.
The $1,500 note, along with interest accrued at 12%, was paid in full
in February 1998.
3. RELATED PARTY TRANSACTION
On October 15, 1998 the Company issued 3,344,934 shares of its common
stock to each of two stockholders and directors of the Company in
consideration of cash advances made to the Company prior to that date.
Total shares issued amounted to 6,689,868 shares at $.0005 per share
for the advances of $33,449.
On April 9, 1999, the Board of Directors agreed to award bonuses to its
officers for services rendered to the Company totaling $300,000 and the
Company has accrued the liability at June 30, 1999.
4
<PAGE> 6
Medical Management Systems, Inc.
NOTES TO FINANCIAL STATEMENTS
3. RELATED PARTY TRANSACTIONS (continued)
In July 1999 the Board of Directors agreed to issue 11,036 restricted
shares of its common stock to two shareholders in satisfaction of
$11,036 owed to them for payments made from personal funds for Company
expenses. In September 1999 the Board agreed to issue an additional
2,218 shares of its restricted common stock to the two shareholders in
satisfaction of an additional $2,218 paid by them from personal funds.
4. REVERSE STOCK SPLIT
In January 1999, the Company's stockholders approved a 100 to 1 reverse
stock split. The Company's authorized shares and stated capital remain
unchanged.
5
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Results of Operations - Through September 30, 1999.
There have been no operations since April 1995 when the Company
sold substantially all of its assets in pet care and veterinary
services. Since April 1995, the Company has been basically dormant;
except the Company incurred $14,262 of expenses in 1998 for legal and
accounting costs and $24,473 of expenses in 1997, primarily for legal
and accounting costs associated with filing its Form 10; $8,964 in 1996
for various administrative expenses and $102,098 in 1995 for costs
incurred subsequent to the disposal of the business in an initial
effort to enter other business ventures. The Company's expenses in
1997 and 1998 were funded by advanced from shareholders.
The Company expenses in 1998 were funded by advances from
shareholders. During October 1998, 6,689,868 shares of Common Stock
were issued to two shareholders in consideration of $33,449 of the
advances. The balance, $3,208 at December 31, 1998 is payable without
interest when the Company has funds available. On January 19, 1999,
the Company reverse split its shares on a one-for-one hundred basis,
which is not reflected herein.
On May 7, 1997, the Company reached an agreement with a former
director of the Company whereby the former director agreed to pay
$8,500 in cash along with a promissory note for $1,500 in settlement of
a dispute involved in the sale of Company assets in April 1995. In
addition, the former director agreed to surrender options granted him
to acquire 985,333 shares of the Company's common stock and release the
Company from all claims, demands and obligations. The Company accepted
the cash and note in satisfaction of a $60,000 note due from the former
director which had been written off and recorded as a loss in its
financial statements for the year ended December 31, 1996. The
promissory note carries interest at 12%, is unsecured and is due with
accrued interest six months from the agreement date. The promissory
note was repaid in February 1998.
The Company used $8,000 of the cash received to settle an
outstanding trade payable. The difference between the amount that had
been due, $14,358, and the amount paid has been recorded with gain on
disposal of business, along with the $10,000 settlement referred to
above.
In August 1995, the Company changed its business purpose to a
blank check company.
In July 1999, the Board of Directors agreed to issue 11,036
restricted shares of its common stock to two shareholders in
satisfaction of $11,036 owed to them for payments made from personal
funds for Company expenses. In September 1999 the Board agreed to
issue an additional 2,218 shares of its restricted common stock to the
two shareholders in satisfaction of an additional $2,218 paid by them
from personal funds.
<PAGE> 8
Liquidity and Capital Resources.
For the three months ended September 30, 1999 losses decreased
$3,132 to $(2,218) from $(5,350) as compared to the same period ended
1998. For the nine months ended September 30, 1999 losses increased
$299,439 to $(310,058) from $(10,619) as compared to the same period in
1998. For the nine month period ended September 30, 1999 the increase
in losses is directly attributed to $300,000 in bonuses, awarded to its
officers for services rendered. Currently, the Company does not have
the funds to pay the bonuses.
PART II.
Item 1. Legal Proceedings.
There are no material legal proceedings commenced or maintained
by, or against, the Registrant.
Item 2. Changes in Securities.
There are no material legal proceedings commenced or maintained
by, or against, the Registrant.
Item 3. Defaults Upon Senior Securities.
The Registrants has no debt securities outstanding.
Item 4. Submission of Matters to a Vote of Security Holders.
There were no matters submitted for a vote of the security
holders.
Item 5. Other Information.
There is no other material information.
Item 6. Exhibits and Reports on Form 8-K.
(a) Reports on Form 8-K
No reports were filed on Form 8-K during the quarter ended
September 30, 1999.
(b) Exhibits.
EXHIBIT INDEX
Exhibit
No. Description.
27 Financial Data Schedule
<PAGE> 9
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.
Dated this 12th day of November, 1999.
MEDICAL MANAGEMENT SYSTEMS, INC.
(the "Registrant")
BY: /s/ Philip J. Davis
Philip J. Davis
President, Treasurer and member of
the Board of Directors
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Statement of Financial Condition at September 30, 1999 (Unaudited) and the
Statement of Income for the nine months ended September 30, 1999 (Unaudited)
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 0
<CURRENT-LIABILITIES> 300,000
<BONDS> 0
0
0
<COMMON> 1,287,718
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 310,058
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (310,058)
<EPS-BASIC> (1.18)
<EPS-DILUTED> (1.18)
</TABLE>
