UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report: April 3, 2000
Medix Resources, Inc.
(Exact name of registrant as specified in its charter)
Colorado 0-24768 84-1123311
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
7100 E. Belleview Avenue, Englewood, CO 80111
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (303) 741-2045
None
(Former name or former address, if changes since last report)
Item 5. Other Events. Press release announcing fourth quarter and year end
- ---------------------- results.
Exhibits
Exhibit 99.1 - Press release dated April 3, 2000 announcing fourth quarter and
year end results
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 hereunto duly authorized.
MEDIX RESOURCES, INC.
Date: April 6, 2000 By:/s/ David Kinsella
Secretary and Controller
Exhibit 99.1
R O B I N S C H O E N P U B L I C R E L A T I O N S
526 Penn Street Newtown, PA 18940 t: 215/504-2122 f: 215/504-2123 e-m:
[email protected]
FOR IMMEDIATE RELEASE
April 3, 2000
MEDIX RESOURCES REPORTS 1999 FOURTH QUARTER AND YEAR-END RESULTS
Company Receives Clean Opinion In Independent Auditors' Report
New York, NY -- John Prufeta, president and chief executive officer of Medix
Resources, Inc. [OTCBB: MDIX] today announced financial results for the
Company's fourth quarter and year ended December 31, 1999. Medix provides
Internet-based health care communication, data integration, and transaction
processing software through its Cymedix.com product line.
Revenues from continuing operations for the fourth quarter 1999 were $24,000
compared with $0 for the fourth quarter 1998. Net loss from continuing
operations increased 251% from $900,000 ($0.04 per common share) in the fourth
quarter 1998 to $2,380,000 ($0.15 per common share) in the fourth quarter 1999.
Net loss from discontinued operations decreased 96% from $2,362,000 ($0.11 per
common share) in the fourth quarter 1998 to $99,000 ($0.003 per common share) in
the fourth quarter 1999. Net loss decreased 25% from $3,309,000 ($0.15 per
common share) in the fourth quarter 1998 to $2,479,000 ($0.15 per common share)
in the fourth quarter 1999.
Revenues from continuing operations for the year ended December 31, 1999 (1999)
were $24,000 compared with $0 for the year ended December 27, 1998 (1998). Net
loss from continuing operations increased 181% from $2,513,000 ($0.12 per common
share) in 1998 to $4,548,000 ($0.29 per common share) in 1999. Net loss from
discontinued operations decreased 90% from $2,909,000 ($0.14 per common share)
in 1998 to $299,000 ($0.01 per common share) in 1999. Net loss decreased 11%
from $5,422,000 ($0.26 per common share) in 1998 to $4,847,000 ($0.30 per common
share) in 1999.
"Our financial performance reflects the successful completion of our transition
to an iHealth software provider," stated Prufeta. "We have made tremendous
progress toward creating a world class iHealth enterprise."
Additionally, the Company reported a clean opinion in its Independent Auditors'
Report, has increased the amount of available cash and working capital, expects
to generate additional net cash from the February 2000 sale of its remaining
staffing businesses, and anticipates receipt of additional cash from the
exercise of callable warrants.
For the past several years, Medix's Independent Auditors' Report has contained a
statement regarding substantial doubt about the Company's ability to continue as
a going concern. This year's report includes a clean opinion and contains no
such statement. The Company had $1,229,000 in cash as of December 31, 1999
compared with $40,000 in cash as of December 27, 1998. Net working capital was
$644,000 as of December 31, 1999 compared with a working capital deficit of
($2,612,000) as of December 27, 1998.
In February of 2000, Medix sold the assets of its remaining staffing businesses
for $1,000,000. The purchase price was paid with $500,000 cash at closing and a
$500,000 subordinated note, payable in May 2001. During 2000, Medix expects to
generate approximately $800,000 in net cash related to this sale.
Subsequent to year-end and through March 17, 2000, Medix received approximately
$2,080,000 from the exercise of options and warrants. As of March 17, 2000, the
Company had 1,026,000 warrants with a total exercise price of $633,000, which
are callable for $.01 per warrant with thirty days written notice. Also, as of
March 17, 2000, Medix had 7,980,000 warrants with a total exercise price of
$3,990,000, callable for $.01 per warrant with thirty days written notice
provided the trading price of the Company's common stock remains above $2.00 for
ten consecutive days subsequent to April 1, 2000. The Company anticipates
receiving $4,623,000 from the exercise of these callable warrants over the next
several months, although there can be no assurance that any of these warrants
will be exercised.
Medix Resources, through Cymedix Lynx Corporation, offers Cymedix.com, a suite
of fully-secure, patented Internet communications software products, to the
healthcare industry. Additional information about Medix Resources and its
products and services can be found by visiting its Web sites,
www.medixresources.com and www.cymedix.com, or by calling 800/326-8773.
# # #
Information in this press release contains forward-looking statements that
involve risks and uncertainties that might adversely affect the Company's
operating results in the future to a material degree. Such risks and
uncertainties include, without limitation, the ability of the Company to raise
capital to finance the development of its software products, the effectiveness
and the marketability of those products, the ability of the Company to protect
its proprietary information, and the establishment of an efficient corporate
operating structure as the Company grows. These and other risks and
uncertainties are presented in detail in the Company's Form 10-KSB for 1999,
which was filed with the Securities and Exchange Commission on March 30, 2000.
This information is available from the SEC or the Company.
Contacts: General and Press Inquiries Investor Inquiries
Robin Schoen Josh Golomb
Robin Schoen Public Relations SmallCaps Online Communications
215/504-2122 212/554-4158
