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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q/A
(Mark One)
X Quarterly report pursuant to Section 13 or 15(d) of the Securities
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Exchange Act of 1934. For the quarterly period ended September 30, 1997.
_____ Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934, For the transition period from ________to_______.
Commission File Number: 0-19749
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CHEM TRAK INCORPORATED
Delaware 77-0295388
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(State or other jurisdiction of (I.R.S Employer Identification No.)
incorporation or organization)
929E. Arques Avenue, Sunnyvale, CA 94086
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(Address of principal executive offices)
Registrant's telephone number, including area code: (408) 773-8156
Securities registered pursuant to Section 12(g) of the Act:
Common Stock $.001 par value
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(Title of Class)
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
filing requirements for the past 90 days.
Yes X No________
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Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class: Common Stock $.001 par value Outstanding at October 31, 1997: 13,643,145
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EXPLANATORY NOTE
This Form 10-Q/A is being filed solely for the purpose of amending the revenue
recognition policy in Note 2 to the Quarterly Report on Form 10-Q for the
quarterly period ending September 30, 1997.
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CHEMTRAK INCORPORATED
INDEX
PART 1. FINANCIAL INFORMATION PAGE
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NO.
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Item 1: Financial Statements
Notes to Condensed Financial Statements 3
SIGNATURES 4
2
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CHEMTRAK INCORPORATED
NOTES TO CONDENSED FINANCIAL STATEMENTS
September 30, 1997
(unaudited)
Note 2. Revenue Recognition
Product revenues are generally recognized at the time of shipment to
customers or distributors. Initial license revenues are recorded when earned,
which is upon signing of the license agreement, confirmation of collectibility
and when no future obligations remain. The Company recognizes license
termination and conversion fees when earned, which is upon signing of the
license agreement, confirmation of collectibility and when no future obligation
remains. These fees are recognized as operating income to recover the operating
expenses and inventory costs that have been recorded prior to termination or
conversion of the contract. These operating expenses were incurred by the
Company to build and supply the expected product pipeline as part of the
original license agreement. The Company recognized license termination and
conversion fees of $2,750,000 for the nine months ended September 30, 1997.
Funded research and other revenues are recorded upon the completion of specific
milestones or when associated performance obligations are complete. The Company
recognized a $333,000 initial license fee in its entirety as revenue in the
three months ended March 31, 1997. The fee was non-refundable in any manner and
the Company had no further obligations under the contract relating to the
non-refundable fee.
3
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CHEMTRAK INCORPORATED
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Date: April 3, 1998 CHEMTRAK INCORPORATED
/s/ Donald V. Fluken
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Donald V. Fluken
Chief Financial Officer
(Principal Financial and
Accounting Officer)
4
