UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1999
Commission file number 000-20989
UROPLASTY, INC.
(Exact name of registrant as specified in its charter.)
Minnesota, U.S.A. 41-1719250
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2718 Summer Street NE,
Minneapolis, Minnesota 55413-2820
(Address of principal executive offices)
Registrant's telephone number, including area code:
(612) 378-1180
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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 [ ]
(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS)
Check whether the registrant filed all documents and reports required to be
filed by Section 12,13 or 15(b) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.
YES [ ] NO [ ] Not subject to Exchange Act at time [X]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 5,923,371 on
November 2, 1999
Transitional Small Business Disclosure Format
YES [ ] NO [X]
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
UROPLASTY, INC. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
September 30, 1999 March 31, 1999
__________________ ______________
<S> <C> <C>
ASSETS
Current Assets
Cash and cash equivalents $ 2,486,179 $ 1,588,984
Marketable securities 754,575 1,503,600
Accounts receivable trade 727,328 825,905
Inventories 818,870 754,813
Prepaid expenses 198,599 187,697
Other current assets 78,509 103,439
_________ _________
Total Current Assets 5,064,060 4,964,438
--------- ---------
Property, plant and equipment, net 1,233,069 1,228,255
Marketable securities-long term 0 761,325
Intangible assets, net 105,601 111,625
_________ _________
TOTAL ASSETS $ 6,402,730 $ 7,065,643
========= =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LIABILITIES AND SHAREHOLDERS' EQUITY
<S> <C> <C>
Current Liabilities
Accounts payable $ 333,612 $ 295,267
Accrued liabilities:
Compensation and payroll taxes 132,126 139,960
Foreign sales tax 0 78,214
Royalties 17,100 34,400
Other 54,821 122,761
Current maturities - long term debt 53,992 46,464
_________ _________
Total Current Liabilities 591,651 717,066
Long term debt - less current maturities 615,553 631,848
_________ _________
Total Liabilities 1,207,204 1,348,914
--------- ---------
Shareholders' Equity
Common stock $.01 par value;
Authorized 20,000,000 shares
Issued and outstanding - 5,923,371
shares at September 30 and
March 31, 1999, respectively. 59,234 59,234
Additional paid-in capital 5,784,045 5,784,045
Retained earnings (deficit) (426,645) 75,277
Accumulated other comprehensive loss (216,108) (196,827)
Note receivable-shareholder (5,000) (5,000)
__________ __________
Total Shareholders' Equity 5,195,526 5,716,729
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' __________ __________
EQUITY $ 6,402,730 $ 7,065,643
========== ==========
<FN>
See accompanying notes to the interim consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
UROPLASTY, INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three months ended Six months ended
September 30 September 30
1999 1998 1999 1998
__________ __________ __________ __________
<S> <C> <C> <C> <C>
Net sales $ 1,100,783 $ 1,194,539 $ 2,570,838 $ 2,510,239
Cost of goods sold 403,248 316,937 845,282 578,524
__________ __________ __________ __________
Gross profit 697,535 877,602 1,725,556 1,931,715
Operating expenses:
General and administrative 323,264 303,376 648,191 545,929
Research and development 369,597 262,503 655,739 480,644
Selling and marketing 426,594 320,346 968,216 652,233
__________ __________ __________ __________
1,119,455 886,225 2,272,146 1,678,806
---------- ---------- ---------- ----------
Operating profit (loss) (421,920) (8,623) (546,590) 252,909
Other income (expense):
Interest income 33,146 47,136 68,234 62,890
Interest expense (7,029) (9,859) (14,017) (18,688)
Foreign currency exchange gain (loss) 46,070 44,898 (8,235) 63,803
Other 0 0 0 (3,532)
---------- ---------- ---------- ----------
72,187 82,175 45,982 104,473
Income (loss) pretax (349,733) 73,552 (500,608) 357,382
Income tax expense (benefit) (2,052) (25,769) 1,314 8,827
__________ __________ __________ __________
Net (loss)income $ (347,681) $ 99,321 $ (501,922) $ 348,555
========== ========== ========== ==========
Net (loss) income per common share $(0.06) $0.02 $(0.08) $0.07
Net (loss) income per common share
assuming dilution $(0.06) $0.02 $(0.08) $0.06
Weighted average common and potential
common shares outstanding:
Basic 5,923,371 5,917,610 5,923,371 5,332,141
Diluted 5,923,371 6,214,707 5,923,371 5,669,228
See accompanying notes to the interim consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
UROPLASTY, INC. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Six months ended
September 30
1999 1998
__________ __________
<S> <C> <C>
Cash flows from operating activities:
Net (loss) income $ (501,922) $ 348,555
Adjustments to reconcile net (loss)
income to net cash (used in) provided
by operations:
Depreciation and amortization 110,812 106,069
Amortization of premium and discounts
marketable securities, net 12,084 0
Changes in operating assets and
liabilities:
Accounts receivable 98,577 (53,979)
Inventories (64,057) (242,183)
Prepaid expenses and other
current assets 14,739 (2,514)
Accounts payable 38,345 26,011
Accrued liabilities (171,999) 39,164
- ------------------------------------------------------------------------
Net cash (used in) provided by
operating activities (463,421) 221,123
- ------------------------------------------------------------------------
Cash flows from investing activities:
Payments for property, plant and equipm. (126,803) (236,742)
Proceeds from sale of property, plant
and equipment 10,440 0
Payments relating to intangible assets (6,054) (18,829)
Sale of marketable securities 1,500,000 0
- ------------------------------------------------------------------------
Net cash provided by (used in)
investing activities 1,377,583 (255,571)
- ------------------------------------------------------------------------
Cash flows from financing activities:
Repayment of long-term obligations (24,878) (27,766)
Proceeds from issuance of notes payable 23,923 75,007
Net proceeds from issuance of stock 0 3,400,297
- ------------------------------------------------------------------------
Net cash (used in) provided by
financing activities (955) 3,447,538
- ------------------------------------------------------------------------
Effect of exchange rates on
cash and cash equivalents (16,012) 227,268
- ------------------------------------------------------------------------
Net increase in cash and cash
equivalents 897,195 3,640,358
Cash and cash equivalents at beginning
of period 1,588,984 889,541
- ------------------------------------------------------------------------
Cash and cash equivalents at end
of period $ 2,486,179 $ 4,529,899
- ------------------------------------------------------------------------
Supplemental disclosure of Cash Flow information:
Cash paid during the quarter for:
interest $ 7,956 $ 10,350
income taxes 15,315 11,222
<FN>
See accompanying notes to the interim consolidated financial statements.
</TABLE>
<PAGE>
UROPLASTY, INC. and Subsidiaries
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(1) Basis of Presentation
The financial statements included in this Form 10-QSB have been prepared by
the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted,
pursuant to such rules and regulations, although management believes the
disclosures are adequate to make the information presented not misleading. The
results of operations for any interim period are not necessarily indicative of
results for a full year. These statements should be read in conjunction with
the financial statements and related notes included in the Company's Annual
Report on Form 10-KSB for the year ended March 31, 1999.
The financial statements presented herein as of September 30, 1999 and for the
three and six months ended September 30, 1999 and 1998 reflect, in the opinion
of management, all material adjustments consisting only of normal recurring
adjustments necessary for a fair presentation of the financial position,
results of operations and cash flows for the interim periods.
Certain prior year amounts have been reclassified to conform with the current
year presentation.
(2) Marketable Securities
The Company accounts for its marketable debt securities in accordance with the
provisions of Statement of Financial Accounting Standards No. 115 ("SFAS
115"), "Accounting for Certain Investments in Debt and Equity Securities". The
Company's marketable debt securities are classified as available-for-sale and
are carried at fair value.
(3) Inventories
Inventories are summarized as follows:
September 30, 1999 March 31, 1999
__________________ ______________
Raw materials $ 147,170 $ 126,364
Work-in-process 353,343 354,521
Finished goods 318,357 273,928
________ ________
$ 818,870 $ 754,813
======== ========
(4) Comprehensive Income
SFAS No. 130 , "Reporting Comprehensive Income", establishes standards for
reporting and presentation of comprehensive income and its components in a
full set of financial statements. Comprehensive income consists of net income,
net unrealized gains (losses) on securities and the translation adjustment and
is presented in the consolidated statements of stockholders' equity and
comprehensive income. The statement requires only additional disclosures in
the consolidated financial statements; it does not affect the Company's
financial position or results of operations. The Company adopted SFAS No. 130
in fiscal 1999. Prior year financial statements have been reclassified to
conform to the requirements of SFAS No. 130. For the three and six months
ended September 30, 1999 and 1998 net (loss) income, items of other
comprehensive income and comprehensive income are as follows:
Three months ended
September 30
1999 1998
__________ __________
Net (loss) income $ (347,681) $ 99,321
Items of other comprehensive (loss) income:
Unrealized loss on marketable securities 2,067 0
Translation adjustment 70,376 131,616
__________ __________
Total comprehensive (loss) income $ (275,238) $ 230,937
========== ==========
Six months ended
September 30
1999 1998
__________ __________
Net (loss) income $ (501,922) $ 348,555
Items of other comprehensive (loss) income:
Unrealized loss on marketable securities 1,734 0
Translation adjustment (21,015) 157,714
__________ __________
Total comprehensive (loss) income $ (521,203) $ 506,269
========== ==========
(5) Reconciliation of earnings and share amounts used in EPS calculation
Basic earnings per common share was computed by dividing net income by the
weighted average number of shares of common stock outstanding during the
period. Diluted earnings per common shares for the three and six months
ended September 30, 1999 and 1998 was calculated using the treasury stock
method to compute the weighted average common stock outstanding assuming the
conversion of dilutive potential common shares.
<TABLE>
<CAPTION>
Basic (loss) Dilutive (loss)
income income
per share Effect of per share
Net (loss) to common dilutive to common
income shareholders securities shareholders
__________ ____________ __________ _____________
<S> <C> <C> <C> <C>
For the three months ended
September 30, 1999
Loss $ (347,681) $ (347,681) - $ (347,681)
Shares - 5,923,371 - 5,923,371
Per share amount - $ (0.06) - $ (0.06)
September 30, 1998
Income $ 99,321 $ 99,321 - $ 99,321
shares - 5,917,610 297,097 6,214,707
Per share amount - $ 0.02 - $ 0.02
For the six months ended
September 30, 1999
Loss $ (501,922) $ (501,922) - $ (501,922)
Shares - 5,923,371 - 5,923,371
Per share amount - $ (0.08) - $ (0.08)
September 30, 1998
Income $ 348,555 $ 348,555 - $ 348,555
shares - 5,332,141 337,087 5,669,228
Per share amount - $ 0.07 - $ 0.06
</TABLE>
(6) Legal Proceedings
In Item 1 of Part II of this filing the legal proceedings of the Company are
listed. The Company has not accrued for potential losses on these cases as the
likelihood of a loss is not probable and the amount in the event of a loss
cannot be reasonably estimated.
<PAGE>
UROPLASTY, INC. and Subsidiaries
ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Forward-looking Statements
The Registrant may from time to time make written or oral "forward-looking
statements", including statements contained in this filing by the Company with
the Securities and Exchange Commission and in its reports to stockholders, as
well as elsewhere. "Forward-looking statements" are statements such as those
contained in projections, plans, objectives, estimates, statements of future
economic performance, and assumptions related to any of the foregoing, and may
be identified by the use of forward-looking terminology, such as "may,
"expect," "anticipate," "estimate, "goal," "continue," or other comparable
terminology. By their very nature, forward-looking statements are subject to
known and unknown risks and uncertainties relating to the Company's future
performance that may cause the actual results, performance or achievements of
the Company, or industry results, to differ materially from those expressed or
implied in any such "forward-looking statements". Any such statement is
qualified by reference to the following cautionary statements.
The Registrant's business operates in highly competitive markets and is
subject to changes in general economic conditions, competition, customer and
market preferences, government regulation, the impact of tax regulation,
foreign exchange rate fluctuations, the degree of market acceptance of
products, the uncertainties of potential litigation, as well as other risks
and uncertainties detailed elsewhere herein and from time to time in the
Registrant's Securities and Exchange Commission filings.
In this filing, the following section contains "forward-looking statements":
"Management's Discussion and Analysis of Financial Condition and Results of
Operation". Various factors and risks (not all of which are identifiable at
this time) could cause the Company's results, performance or achievements to
differ materially from that contained in the Company's forward-looking
statements, and investors are cautioned that any forward-looking statement
contained herein or elsewhere is qualified by and subject to the warnings and
cautionary statements contained above and in the Risk Factors section of this
filing.
The Company does not undertake and assumes no obligation to update any
forward-looking statement that may be made from time to time by or on behalf
of the Company.
Overview
Uroplasty, Inc. develops, manufactures and markets medical products in certain
segments of the urology, wound care and plastic surgery markets. Products
sold by the Company are subject to regulation by the US Federal Food and Drug
Administration ("FDA") and various regulating agencies in countries outside
the United States. Existing sales have been, and future sales growth is
expected to be, derived from Macroplastique(R) and related ancillary products
designed for use by urologists, gynecologists, and uro-gynecologists for the
primary treatment of stress urinary incontinence ("SUI") and for the
treatment of vesicouretal reflux (backflow of urine from the bladder to the
kidneys). Macroplastique is comprised of soft, irregularly textured,
vulcanized, medical grade silicone implants suspended in a hydrogel carrier
solution. When injected via a minimally invasive, day-case procedure in the
soft tissue of the mid-urethra and bladder neck (in the case of SUI), and at
the ureteral orifice (in the case of vesicoureteral reflux), the implants act
as a bulking material to restore urinary continence or to eliminate reflux of
urine from the bladder to the kidneys.
In addition to the urological applications, the Company's implantable bulking
material is also marketed by the Company outside the United States for
reconstructive and cosmetic plastic surgery applications under the trade name
Bioplastique(tm). In the Netherlands and Great Britain, the Company's direct
sales force distributes certain wound care products in accordance with a
Distributor Agreement with Derma Sciences, Inc. Under the terms of the
Distributor Agreement, the Company is not obligated to purchase any minimum
level of wound care products.
The Company's products are currently sold in numerous countries outside the
United States, including Western Europe, Australia, Canada and South America.
In September 1999, the Company received unconditional approval from FDA
pursuant to a previously filed Investigational Devise Exemption application to
initiate human clinical studies in the US for the Company's primary product
Macroplastique in the treatment of female stress urinary incontinence.
The Company's current objectives are to focus on sales and marketing
activities designed to increase market penetration and sales of Macroplastique
for SUI and vesicoureteral reflux applications in countries outside the US,
and to efficiently and effectively execute the Macroplastique human clinical
study for treatment of female stress urinary incontinence
within the U.S.
Set forth below is management's discussion and analysis of the financial
condition and results of operations as of September 30, 1999 and for the three
and six months ended September 30, 1999 and 1998.
Results of Operations
Net Sales
The Macroplastique product line accounts for over 90% of total sales during
the periods presented. During the six months ended September 30, 1999, net
sales of all products were $2,570,838, representing a $60,599 increase when
compared to net sales of $2,510,239 during the six months ended September 30,
1998. Net sales were $1,100,783 during the three months ended September 30,
1999, compared to $1,194,539 for the same period of the prior year,
representing a decrease of $93,756, or 7.8%. The 7.8% decrease in net sales
during the three months ended September 30, 1999, is attributable to various
factors, including a 4.2% decrease in the number of units of Macroplastique
sold together with a higher portion of sales made to distributors at lower
gross profit margins. Also, the Company is restructuring certain sales
forces, including Great Britain where sales staff changes have caused what the
Company believes will be "short term" detrimental effects on sales of
Macroplastique.
Management expects that Macroplastique sales will increase in the third and
fourth quarters of fiscal 2000 and beyond as a result of an expanded sales
force in existing and new geographical markets and as a result of enhancements
to the surgical technique leading to wider spread use by doctors and
penetration of the SUI market. There can be no assurance however, that the
Company's efforts to increase sales and market penetration will be successful.
Gross Profit
Gross profit was $1,725,556 and $1,931,715 for the six months ended September
30, 1999 and 1998, respectively, or 67% and 77% of net sales for the six month
periods then ended. For the three month periods ended September 30, 1999 and
1998, gross profit was $697,535 and $877,602, or 63% and 73% of net sales,
respectively. The decrease in gross profit percentage during the six and
three month periods ended September 30, 1999, when compared to the same
periods of the previous year is due to a higher portion of Macroplastique
sales made to distributors at lower gross margins, and due to increased fixed
manufacturing costs combined with lower production levels. Increased
manufacturing costs represent the Company's investment in upgraded
manufacturing equipment and additional personnel, both of which enhance the
Company's ability to meet future sales demands as they occur.
General and Administrative Expense
General and administrative ("G&A") expenses increased 19% from $545,929 during
the first two quarters of fiscal 1999 to $648,191 during the same period of
fiscal 2000 and increased 7% from $303,376 to $323,264 during the three months
ended September 30 of fiscal 1999 and fiscal 2000, respectively. The increase
in G&A expenses is primarily due to increased costs of professional fees
related to the legal proceeding described in Item 1 and increased office and
sales support personnel costs.
Research and Development Expense
Research and development expenses increased 36% from $480,644 during the first
two quarters of fiscal 1999 to $655,739 during the same period of fiscal 2000
and increased 41% from $262,503 to $369,597 during the three months ended
September 30 of fiscal 1999 and fiscal 2000, respectively. Costs associated
with the Company's Macroplastique IDE application with the FDA and costs
associated with product development are the primary causes of the increase in
R&D expense.
Management believes that initiation of Macroplastique human clinical studies
in the US pursuant to the FDA's recent approval of the Company's IDE
application will cause research and development expenses to continue to
increase during the remainder of fiscal 2000 and 2001. Product development
activities include on-going projects relating to the enhancement of certain
ancillary products used in the Macroplastique procedure. These anticipated
enhancements are intended to broaden the base of physicians using
Macroplastique to treat female SUI.
Selling and Marketing expenses
Selling and marketing costs increased 48% from $652,233 during the first two
quarters of fiscal 1999 to $968,216 during the same period of fiscal 2000, and
increased 33% from $320,346 to $426,594, during the three months ended
September 30 of fiscal 1999 and fiscal 2000, respectively. These increases in
selling and marketing expenses are principally attributable to personnel costs
of the expanding sales forces outside the U.S. and a greater presence at
international and domestic medical conferences intended to increase market
awareness of Macroplastique.
Other Income and Expense
Changes in interest income for the periods presented are directly related to
the Company's cash, cash equivalents and marketable securities balances.
Rates of return earned on cash and marketable securities are relatively
consistent from period to period as such resources are invested in
investment-grade, interest bearing securities and money market funds.
Liquidity and Capital Resources
As of September 30, 1999, the Company's cash and cash equivalent balances
totaled $2,486,179 and investments in marketable securities totaled an
additional $754,575. Marketable securities at September 30, 1999, are
comprised of investments in investment-grade commercial paper. The capital
resources existing at September 30, 1999, principally relate to cash derived
from the Company's sale of approximately 1.7 million shares of common stock in
June 1998, less the cash used in operations and in investing activities since
that date.
The Company currently has no financing arrangements in place with any bank for
general working capital needs, and no material unused sources of liquidity
other than the cash and marketable securities described above, equipment
leasing arrangements, and its accounts receivable and inventory balances at
September 30, 1999 of approximately $727,000 and $819,000, respectively.
The Company has operations in the United States and internationally. United
States net operating loss carryforwards cannot be used to offset taxable
income in foreign jurisdictions. Furthermore, repatriation of dividends to the
U.S. parent may result in additional foreign or U.S. taxes.
Management expects increasing costs associated with the conduct of the US
human clinical study for Macroplastique pursuant to the FDA approved IDE, the
subsequent Pre-Market Approval Application submission and review process, and
pre-commercialization and market launch costs in the US relating to
Macroplastique for female stress urinary incontinence. In the event that
significant increases in current sales levels are not achieved, additional
funds from the sale of the Company's securities or other alternative sources
will be necessary. There can be no assurance that such alternative sources of
funds will be available to the Company when they are needed or pursuant to
terms considered acceptable to the Company at the time.
Conversion to Euro Currency
On January 1, 1999, eleven of the fifteen member countries of the European
Union (the "participating countries") adopted the euro as their common legal
currency and established fixed conversion rates between their existing
sovereign currencies and the euro. The euro trades on currency exchanges and
is available for non-cash transactions. The participating countries will
issue sovereign debt exclusively in euro, and will redenominate outstanding
sovereign debt in euro.
With respect to presently known trends and uncertainties related to the euro
conversion, the Company does not expect there will be any long-term
competitive implications of the conversion (such as effects on product or
service pricing due to increased transparency), nor does it anticipate any
material costs in connection with the conversion nor a lack of ability to pass
any costs that might result along to customers.
Year 2000 Compliance
The Company's existing information system, consisting of hardware and software
supplied by third parties, is year 2000 compliant. However, because most
computer systems are, by their nature, interdependent, it is possible that
non-compliant third party computers could impact the Company's operations. The
Company could be adversely affected by the year 2000 problem if it or
unrelated parties fail to successfully address this problem. The Company has
communicated with unrelated parties, including suppliers and regulatory
consultants with whom it deals, to coordinate year 2000 compliance. Based on
the information obtained, the Company developed a contingency plan which
identifies where the greatest risks of non-compliance exist and what steps the
Company might take in order to deal with the most reasonably likely worst case
scenario. Inventory levels of the Company's products are high enough to meet
product demands for four to six months in case the Company would not be able
to manufacture products due to a worst case scenario. The costs incurred in
addressing year 2000 compliance are expensed as incurred in compliance with
GAAP. The costs were not material.
<PAGE>
UROPLASTY, INC. and Subsidiaries
PART II - OTHER INFORMATION
Except for the following, none of the items contained in PART II of
Form 10-QSB are applicable to the Company for the six months ended
September 30, 1999.
ITEM 1. LEGAL PROCEEDINGS
On July 21, 1998, the Company announced that the United States Patent and
Trademark Office ("USPTO") had informed the Company that the USPTO will, as
requested by the Company, initiate an interference proceeding between the
Company and Advanced UroScience, Inc. ("AUI"), White Bear Lake, Minnesota, to
determine which company was the first to invent carbon-coated micro beads for
use in treating urinary incontinence. The USPTO has not, as of the date
hereof, formally commenced the interference proceeding.
At such time as the interference proceeding is formally commenced, it could
take the USPTO twenty-four months or more to reach a final decision concerning
this matter. Although the USPTO originally granted the applicable patent to
AUI, the interference proceeding may result in a determination that either
Uroplasty, Inc. or AUI is the proper holder, or that a patent should not have
been granted. An interference proceeding, like other patent litigation, can be
complex, time consuming and expensive.
In addition, subsequent to July 21, 1998, the Company commenced a related
lawsuit against AUI for misappropriation of trade secrets, and AUI, subsequent
to December 31, 1998, brought a counterclaim against the Company with respect
to such matter.
On October 1, 1999, the Company announced that the U.S. District Court for
Minnesota had granted a motion by AUI to dismiss the Company's claims against
AUI. On November 1, 1999, the Company announced that it had appealed such
dismissal for misappropriation of trade secrets.
<PAGE>
UROPLASTY, INC. and Subsidiaries
SIGNATURE
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.
UROPLASTY, INC.
Dated: November 2, 1999 By /s/ DANIEL G. HOLMAN
Daniel G. Holman
Chairman, President and CEO
(Principal Executive and Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Mar-31-2000
<PERIOD-START> Apr-01-1999
<PERIOD-END> Sep-30-1999
<CASH> 2,486,179
<SECURITIES> 754,575
<RECEIVABLES> 727,349
<ALLOWANCES> 21
<INVENTORY> 818,870
<CURRENT-ASSETS> 5,064,060
<PP&E> 1,686,248
<DEPRECIATION> 453,179
<TOTAL-ASSETS> 6,402,730
<CURRENT-LIABILITIES> 591,651
<BONDS> 0
<COMMON> 59,234
0
0
<OTHER-SE> 5,136,292
<TOTAL-LIABILITY-AND-EQUITY> 6,402,730
<SALES> 2,570,838
<TOTAL-REVENUES> 2,570,838
<CGS> 845,282
<TOTAL-COSTS> 845,282
<OTHER-EXPENSES> 2,272,146
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (14,017)
<INCOME-PRETAX> (500,608)
<INCOME-TAX> 1,314
<INCOME-CONTINUING> (501,922)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (501,922)
<EPS-BASIC> (.08)
<EPS-DILUTED> (.08)
</TABLE>
