SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly report pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934
For the Quarterly Period Ended September 30, 1999
[ ] Transition report pursuant to section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from___________ to___________.
Commission file No. 33-75236
LONGPORT, INC.
(Exact name of small business issuer as specified in its charter)
Delaware 23-2715528
-------- ----------
(State or other jurisdiction of IRS Employer Identification No.
Incorporation or organization)
791 South Chester Rd. Swarthmore, Pa. 19081
(Address of principal executive offices)
610-328-5006
(Issuers telephone number)
Check whether the issuer (1) filed all reports required to be filed by section
13 or 15(d) of the Exchange Act during the past 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
As of September 30, 1999, 18,120,449 shares of common stock were outstanding.
<PAGE>
LONGPORT, INC.
FORM 10-QSB
INDEX
Part I. Financial Information
Item 1. Financial Statements
Consolidated Condensed Balance Sheet
as of September 30, 1999 1-2
Consolidated Condensed Statements of
Operations for the three months and nine months
ended September 30, 1999 and 1998 3-4
Consolidated Condensed Statements of Cash
Flows for the nine months ended September 30, 1999
and 1998 5-6
Notes to Consolidated Condensed Financial Statements 7
Item 2. Management's Discussion and
Analysis of Financial Condition
and Results of Operations 8-12
Part II. Other Information and Signatures 13-14
<PAGE>
LONGPORT, INC. AND SUBSIDIARY SEPTEMBER 30,1999
CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
- --------------------------------------------------------------------------------
ASSETS
CURRENT ASSETS:
CASH $2,250,406
ACCOUNTS RECEIVABLE:
TRADE, NET OF ALLOWANCE FOR DOUBTFUL
ACCOUNTS OF $3,600 294,024
INTEREST AND OTHER 100,500
PREPAID EXPENSES 44,013
INVENTORIES 31,796
NOTE RECEIVABLE 3,750
----------
TOTAL CURRENT ASSETS 2,724,489
----------
PROPERTY AND EQUIPMENT, AT COST:
MEDICAL EQUIPMENT 386,139
COMPUTER EQUIPMENT 10,305
OFFICE FURNITURE AND EQUIPMENT 7,901
----------
404,345
LESS ACCUMULATED DEPRECIATION (78,079)
----------
NET PROPERTY AND EQUIPMENT 326,266
----------
OTHER ASSETS:
ACCOUNTS RECEIVABLE 584,375
INTANGIBLE ASSETS, NET OF ACCUMULATED
AMORTIZATION OF $43,333 95,867
DEPOSIT 1,175
----------
TOTAL OTHER ASSETS 681,417
----------
TOTAL ASSETS $3,732,172
==========
The accompanying notes are an integral part of these
consolidated condensed financial statements.
1
<PAGE>
LONGPORT, INC. AND SUBSIDIARY SEPTEMBER 30,1999
CONSOLIDATED CONDENSED BALANCE SHEET (UNAUDITED)
- --------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
ACCOUNTS PAYABLE $ 23,744
ACCRUED PAYROLL TAXES 446
----------
TOTAL CURRENT LIABILITIES 24,190
----------
COMMITMENTS AND CONTINGENCIES --
STOCKHOLDERS' EQUITY:
PREFERRED STOCK: $.001 PAR VALUE
1,000,000 SHARES AUTHORIZED, NONE ISSUED
OR OUTSTANDING --
COMMON STOCK: $.001 PAR VALUE
25,000,000 SHARES AUTHORIZED,
18,120,449 SHARES ISSUED AND OUTSTANDING 18,120
PAID IN CAPITAL 7,378,473
ACCUMULATED DEFICIT (3,666,256)
----------
3,730,337
LESS TREASURY STOCK, AT COST (35,500 COMMON SHARES) (22,355)
----------
TOTAL STOCKHOLDERS' EQUITY 3,707,982
----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,732,172
==========
The accompanying notes are an integral part of these
consolidated condensed financial statements.
2
<PAGE>
FOR THE THREE MONTHS
ENDED SEPTEMBER 30,
LONGPORT, INC. AND SUBSIDIARY ---------------------------
CONSOLIDATED CONDENSED STATEMENTS OF 1999 1998
OPERATIONS (UNAUDITED) (UNAUDITED)
- --------------------------------------------------------------------------------
NET REVENUES:
MEDICAL SUPPLY SALES $ 400 $ 2,621
MEDICAL EQUIPMENT RENTALS 3,200 4,325
MANAGEMENT FEES 48,000 21,472
LICENSE FEES 59,000 33,214
TERRITORIAL LICENSE FEES -- 75,500
SCANNER ENHANCEMENT REVENUE 90,000 --
LICENSE PURCHASE OPTION 90,000 --
----------- -----------
TOTAL REVENUES 290,600 137,132
----------- -----------
OPERATING EXPENSES:
COST OF MEDICAL SUPPLY SALES 1,000 --
COST OF MEDICAL EQUIPMENT RENTALS 1,400 3,223
GENERAL AND ADMINISTRATIVE 205,441 105,009
RESEARCH AND DEVELOPMENT EXPENSE 41,968 --
----------- -----------
TOTAL OPERATING EXPENSES 249,809 108,232
----------- -----------
OPERATING INCOME 40,791 28,900
----------- -----------
OTHER INCOME:
INTEREST INCOME 13,292 --
----------- -----------
TOTAL OTHER INCOME 13,292 --
----------- -----------
INCOME BEFORE PROVISION FOR
INCOME TAXES 54,083 28,900
PROVISION FOR INCOME TAXES -- --
----------- -----------
NET INCOME $ 54,083 $ 28,900
=========== ===========
NET INCOME PER COMMON SHARE:
BASIC $ 0.00 $ 0.00
DILUTED $ 0.00 $ 0.00
COMMON EQUIVALENT SHARES:
BASIC 17,634,412 15,478,130
DILUTED 18,795,556 15,478,130
The accompanying notes are an integral part of these
consolidated condensed financial statements.
3
<PAGE>
FOR THE NINE MONTHS
ENDED SEPTEMBER 30,
LONGPORT, INC. AND SUBSIDIARY -----------------------------
CONSOLIDATED CONDENSED STATEMENTS OF 1999 1998
OPERATIONS (UNAUDITED) (UNAUDITED)
- --------------------------------------------------------------------------------
NET REVENUES:
MEDICAL SUPPLY SALES $ 10,322 $ 7,844
MEDICAL EQUIPMENT RENTALS 6,400 7,525
MANAGEMENT FEES 144,000 76,500
LICENSE FEES 230,000 125,214
TERRITORIAL LICENSE FEES 1,100,000 75,500
SCANNER ENHANCEMENT REVENUE 120,000 --
LICENSE PURCHASE OPTION 120,000 --
------------ ------------
TOTAL REVENUES 1,730,722 292,583
------------ ------------
OPERATING EXPENSES:
COST OF MEDICAL SUPPLY SALES 6,833 3,403
COST OF MEDICAL EQUIPMENT RENTALS 2,400 5,024
GENERAL AND ADMINISTRATIVE 593,295 535,346
RESEARCH AND DEVELOPMENT EXPENSE 65,185 --
------------ ------------
TOTAL OPERATING EXPENSES 667,713 543,773
------------ ------------
OPERATING INCOME (LOSS) 1,063,009 (251,190)
OTHER INCOME:
INTEREST INCOME 13,887 --
------------ ------------
TOTAL OTHER INCOME 13,887 --
------------ ------------
INCOME (LOSS) BEFORE PROVISION FOR
INCOME TAXES 1,076,896 (251,190)
PROVISION FOR INCOME TAXES -- --
------------ ------------
NET INCOME (LOSS) $ 1,076,896 ($ 251,190)
============ ============
NET INCOME (LOSS) PER COMMON SHARE:
BASIC $ 0.06 ($ 0.02)
DILUTED $ 0.06 ($ 0.02)
COMMON EQUIVALENT SHARES:
BASIC 17,005,734 15,275,294
DILUTED 17,851,907 15,275,294
The accompanying notes are an integral part of these
consolidated condensed financial statements.
4
<PAGE>
FOR THE NINE MONTHS
ENDED SEPTEMBER 30,
-------------------------
LONGPORT, INC. AND SUBSIDIARY 1999 1998
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (UNAUDITED)
- --------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME (LOSS) $1,076,896 ($251,190)
ADJUSTMENTS TO RECONCILE NET INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 21,225 18,000
CHANGES IN ASSETS AND LIABILITIES:
(INCREASE) IN ACCOUNTS RECEIVABLE (867,521) (62,526)
(INCREASE) DECREASE IN OTHER RECEIVABLES (500) 1,200
(INCREASE) DECREASE IN PREPAID EXPENSES (14,062) 16,750
(INCREASE) IN INVENTORIES (6,329) (1,200)
INCREASE (DECREASE) IN ACCOUNTS PAYABLE
AND ACCRUED EXPENSES (12,202) 42,818
---------- ---------
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 197,507 (236,148)
---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
CAPITAL EXPENDITURES (305,815) (103,490)
PAYMENTS RECEIVED ON NOTES RECEIVABLE -- 11,250
PAYMENT FOR EUROPEAN LICENSEE RIGHTS (87,952) --
PAYMENT FOR PATENTS AND COPYRIGHTS (1,248) --
---------- ---------
NET CASH (USED) BY INVESTING ACTIVITIES (395,015) (92,240)
---------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
ISSUANCE OF COMMON STOCK 2,508,500 343,500
PURCHASE OF TREASURY STOCK (17,355) --
PAYMENT OF DIVIDENDS (171,084) --
---------- ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES 2,320,061 343,500
---------- ---------
NET INCREASE IN CASH AND CASH EQUIVALENTS 2,122,553 15,112
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 127,853 36,397
---------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,250,406 $ 51,509
========== =========
The accompanying notes are an integral part of these
consolidated condensed financial statements.
5
<PAGE>
<TABLE>
<CAPTION>
FOR THE NINE MONTHS ENDED
SEPTEMBER 30,
-------------------------
LONGPORT, INC. AND SUBSIDIARY 1999 1998
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) (UNAUDITED)
- -----------------------------------------------------------------------------------
<S> <C> <C>
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
CASH PAID DURING THE PERIOD FOR:
INTEREST $ -- $ --
INCOME TAXES -- --
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING
AND FINANCING ACTIVITIES:
COMMON STOCK ISSUED FOR MEDICAL EQUIPMENT $ -- $ 62,500
COMMON STOCK ISSUED FOR STOCK SUBSCRIPTION RECEIVABLE 100,000 --
The accompanying notes are an integral part of these
consolidated condensed financial statements.
6
</TABLE>
<PAGE>
LONGPORT, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. The accompanying financial information of the Company is prepared in
accordance with the rules prescribed for filing condensed interim financial
statements and, accordingly, does not include all disclosures that may be
necessary for complete financial statements prepared in accordance with
generally accepted accounting principles. The disclosures presented are
sufficient, in management's opinion, to make the interim information presented
not misleading. All adjustments, consisting of normal recurring adjustments,
which are necessary so as to make the interim information not misleading, have
been made. Results of operations for the nine months ended September 30, 1999
are not necessarily indicative of results of operations that may be expected for
the year ending December 31, 1999. It is recommended that this financial
information be read with the complete financial statements included in the
Company's Form 10-KSB dated December 31, 1998 previously filed with the
Securities and Exchange Commission.
2. Basic earnings per common share is calculated by dividing net income (loss)
for the period by the weighted-average number of common shares outstanding
during the period. Diluted earnings per share is calculated by dividing net
income (loss) for the period by the weighted average number of common shares
outstanding during the period, increased by the dilutive potential common shares
("dilutive securities") that were outstanding during the period. Dilutive
securities include outstanding stock options and warrants. Dilutive securities
relating to stock options and warrants are included in the calculation of
diluted earnings per share using the treasury stock method.
The schedule below summarizes the elements included in the calculation of basic
and diluted net income (loss) per common share for the periods ended September
30, 1999 and 1998. For the period ended September 30, 1998 options and warrants
to purchase 1,785,714 common shares were excluded from the calculations of
diluted net (loss) per share, as their effect would have been antidilutive.
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net income (loss) $ 54,083 $ 28,900 $ 1,076,896 $ (251,190)
============ ============ ============ ============
Weighted-average common shares outstanding:
Weighted average common shares outstanding -
Basic 17,634,412 15,478,130 17,005,734 15,275,294
Dilutive securities 1,161,144 -- 846,173 --
------------ ------------ ------------ ------------
Weighted-average common shares outstanding -
Diluted 18,795,556 15,478,130 17,851,907 15,275,294
============ ============ ============ ============
Net income (loss) per common share:
Basic $ 0.00 $ 0.00 $ .06 $ (.02)
Diluted $ 0.00 $ 0.00 $ .06 $ (.02)
7
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of operations
The three months ended September 30, 1999 vs.
the three months ended September 30, 1998.
Revenues for 1999 were $290,600 compared to $137,132 for 1998. Revenues
from medical supplies and equipment sales and rentals decreased $3,346. Revenues
generated from wound center management fees increased 123.6%, from $21,472 to
$48,000. Licensing and marketing fees increased $40,286, from $108,714 to
$149,000. This change reflects the shift in the Company's business philosophy
from reliance on sales and rentals. The Company expects licensing and marketing
fees to increase in the future. Scanner enhancement revenue, at $30,000 per
month, is derived from a contract with a customer, wherein revenue payments
began in June, 1999.
The Company's operations have undergone a significant transformation as
management has become totally focused on the development of the Scanner
technology. Total expenses increased to $249,809 in 1999 from $108,232 in 1998.
The Company has begun production of the Longport Digital Scanner, since
obtaining 510K marketing clearance from the FDA to market the scanner on June
23, 1999. Research and development, and administrative expenses have increased
as a result of the activity required in the production of the scanners. Research
and development expenditures of $41,968 were incurred, versus none in 1998.
Administrative salaries increased to $48,000, from $21,000. Consulting fees
increased to $32,612, from $19,250. Travel and outside services expenses
increased to $42,097 from $28,494. All other administrative expenses increased
$45,644.
The Company's stability and focus can be seen in the comparison of
Stockholders' Equity. There has been an increase of over $3,477,300 from 1998 to
1999.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of operations
The nine months ended September 30, 1999 vs.
the nine months ended September 30, 1998
Comparison of the Company's operations for the nine-month period
essentially follows that of the three-month period comparison described above.
The Company has increased revenues over 491% for the nine-month period in 1999,
as compared to 1998, to $1,730,722, from $292,583. However, $1,100,000 of that
increase was the result of the sale of territorial licenses. The Company expects
that there will be additional sales of territorial licenses, but cannot predict
the revenue to be derived from such sales. Expenses for the nine months ended
September 30, 1999 have increased by $123,940. The Company's operations have
undergone a significant transformation, as management has become totally focused
on the development of the Scanner technology. The Company has begun production
of the Longport Digital Scanner, since obtaining 510K marketing clearance from
the FDA to market the scanner on June 23, 1999. Research and development
expenses of $65,185 have been incurred, versus none for 1998. All other
administrative expenses increased $58,755.
9
<PAGE>
Strategy to Achieve Profitable Operations
Management expects the revenues for 1999 to continue to grow over and above
those for 1998, directly as a result of the licensing relationships it now
promotes. This will likely correspond with increasing expenses related to the
development of the Scanner. The Company received FDA Medical Device marketing
clearance on June 23, 1999. The Company anticipates obtaining future licensing
and consulting service clients, which should lead to additional revenues from
the rental and sales of equipment to those clients. The Company continues to
negotiate with other healthcare providers to provide consulting services.
Management continues negotiating for business relationships for the marketing of
the Scanner technology.
The Company's revenues currently permit it to meet its regular obligations,
including salaries. Cash on hand and in banks at September 30, 1999 was
$2,250,406. The Company seeks outside sources for additional capital as needed
to fund research projects or significant portions of the Scanner development
projects. Otherwise, the Company utilizes the cash remaining on a monthly basis
to support ongoing research and marketing activities. Management intends to
negotiate future relationships that will not damage the Company's current cash
flow, or incur significant expenses. See Liquidity and Capital Resources and
Part II, Legal Proceedings.
Overall, the Company anticipates growth in revenues in 1999. Management
looks to create new relationships that will increase revenues, while controlling
the Company's expenses and debt. The Company continues to explore the
possibility of additional equity financing to provide additional capital, for
the development of the Scanner technology and the expansion of the business, but
can make no assurances that financing can be obtained.
Liquidity and Capital Resources
The Company's current assets significantly exceed its current liabilities.
Management does not expect to incur significant liabilities in the near future.
As for the stockholders' equity, it has increased to $3,707,982 for 1999 versus
$230,647 for 1998.
On June 7, 1999, the Company declared a one cent ($.01) dividend on it's
common stock. The dividend was paid on July 31st, 1999 to shareholders of record
as of June 30th, 1999.
On August 12, 1999, the Company announced that the Board of Directors,
having determined that the Company's common stock was significantly undervalued,
in the Board's opinion, authorized the Company to repurchase up to 100,000
shares of it's common stock in open market transactions from time to time over
the next six months. During September, 1999, the Company purchased 5,500 shares
of it's common stock, at an average price of $3.16 per share.
As of September 30, 1999, the Company's working capital was $2,700,299.
Management anticipates that it will have to sell additional shares of restricted
Common Stock to fund any expansions of the business and the development of the
Scanner technology. Management does not expect to incur any significant
short-term or long-term debt within the next twelve months.
10
<PAGE>
The Company anticipates growth from additional license agreements,
management fees, and sales and rentals of equipment during 1999. New license
agreements and Wound Healing Center contracts will essentially mirror the
agreements the Company now has in place. The Company intends to continue its
practice of acting as a management consultant to healthcare providers, for a
fixed monthly fee.
In September 1997, the Company was notified of a Medicare Hearing Officer's
decision that the Company is liable for repayment of Medicare Benefit
overpayments of $269,120. The alleged Overpayments are from calendar years 1994
and 1995. The Company appealed the Hearing Officer's decision, and an
Administrative Law Judge heard the Appeal on January 5, 1999. The Administrative
Law Judge reviewed fourteen cases out of approximately 500 cases in dispute. The
Administrative Law Judge rendered his decision on February 18, 1999 regarding
the fourteen cases as follows:
A. Five cases were dismissed.
B. Three cases were decided as partially unfavorable resulting in an
overpayment of $1,434 and two cases need to be recalculated.
C. Six cases were decided as unfavorable resulting in an overpayment of
$6,420.
The other cases were not reviewed and the Company does not know if they will be
reviewed by the Administrative Law Judge. The Company has the right to appeal
the Administrative Law Judge's decision with the Appeals Council. The Appeal
must be written and filed within sixty days. The Company appealed the
Administrative Law Judge's decision in April 1999. The Company is unable to
predict the outcome of the Appeal. However, Management believes that there were
no Medicare Benefit Overpayments in 1994 and 1995 and will vigorously defend its
position.
Payment of any judgement or settlement in connection with the Medicare Benefit
Overpayments Appeal together with the costs of defending the Appeal could
adversely affect the Company's results of operations and financial condition.
The Company raised capital through the private sale of stock to current and new
shareholders through September 30, 1999. Between July 1, 1999 and September 30,
1999, the Company sold 550,000 shares, at an average price of $1.909 per share,
for total proceeds of $1,050,000.
To date, there have been no sales of the Company's convertible redeemable
preferred stock, which was made available through a confidential Private
Placement Memorandum.
Computer Systems - The Year 2000 Issue
Many computers, software programs and other equipment with embedded computer
chips (systems) in use today utilize two digits to specify the year, such as
"98" for 1998 (the Y2K issue). As a result of the Y2K issue, such systems may
recognize a date using "00" as the year 1900 rather than the year 2000. In some
cases, the date "00" may cause system(s) failure(s) or miscalculations causing
disruptions of the Company's operations.
11
<PAGE>
In early 1998 the Company began formulating a comprehensive plan to assess the
Company's Y2K issues. The plan called for the identification of those systems,
both internal and external, which are critical to the Company's ability to
continue normal operations, the assessment of any required remediation
(including any upgrading, modification and replacement of computer hardware and
software and adequate testing to ensure Y2K compliance), and the resources
needed to bring those critical systems into Y2K compliance.
The internal systems under evaluation included the Company's point-of-sale,
accounting, data processing, telephone and other miscellaneous information
technology systems, as well as alarm systems, printers, fax machines and modems.
The Company believes that it has identified the internal systems that were
susceptible to failure or potential processing errors as a result of theY2K
issue. The Company concentrated its Y2K efforts on these systems. The Company
believes that its Y2K identification, assessment and remediation efforts for
critical internal systems are essentially complete. However, testing for Y2K
compliance will be an on-going process.
The Company believes that its computer hardware and related peripherals are
currently Y2K compliant based upon representations made by the providers of such
equipment. The Company also believes that its accounting and payroll software
systems are Y2K compliant, and testing to ensure such compliance is essentially
complete.
The Company is reviewing, and has initiated written communications with other
third parties providing goods or services, such as financial institutions and
utility companies, which may be critical to the Company's operations to; (i)
ascertain the extent to which the Company may be exposed to adverse affects for
any failure by such third parties to remediate their Y2K issues; and (ii)
resolve, to the extent practicable, such problems. However, the Company has no
control over and has only limited ability to influence such third parties Y2K
compliance. The failure of such third parties to achieve Y2K compliance in a
timely manner and the potential inability to replace such a third party
provider, could adversely impact the Company's operations.
The Company estimates that the total identifiable cost of its Y2K compliance
effort has not exceeded $10,000.00. As of September 30, 1999, the Company had
incurred approximately $10,000.00 to upgrade its computer hardware and software.
The Company does not track personnel costs associated with its Y2K compliance
effort. The Company has funded Y2K expenditures from internal sources.
Based on the progress made to date and its timetable for further progress in
attaining Y2K compliance, the Company does not currently anticipate any
significant risks associated with its Y2K issues. However, management believes
that it is not possible to determine with absolute certainty that all Y2K issues
pertaining to the Company have or will be identified and corrected. The Company
has essentially completed the Y2K assessment and a comprehensive contingency
plan.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The Statements made under the Management's Discussion and Analysis of
Financial Condition and Results of Operations, and other statements within this
document, that are not based on historical facts, are forward looking statements
that involve risks and uncertainties, including but not limited to, market
acceptance risks, the effect of economic conditions, the impact of competition
and pricing, product development, commercialization and technology difficulties,
the results of financing efforts, and other risks detailed in the Company's
Securities and Exchange Commission filings.
12
<PAGE>
Part II
Other Information
Item 1. Legal Proceedings
The Company continues in its pursuit of recovery for damages against the
attorneys who brought the federal lawsuit against the Company on behalf of Supra
Medical Corp. There have been no significant events to report during this
three-month period.
Item 2. Changes in Securities
None.
Item 3. Defaults 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 None.
13
<PAGE>
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.
Longport, Inc.
Dated: November 9, 1999 /s/ James R. McGonigle
- ----------------------- ----------------------
James R. McGonigle
Chief Executive Officer/Chief Accounting Officer
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-QSB
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-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 2,250,406
<SECURITIES> 0
<RECEIVABLES> 881,999
<ALLOWANCES> 3,600
<INVENTORY> 31,796
<CURRENT-ASSETS> 2,724,489
<PP&E> 404,345
<DEPRECIATION> 78,079
<TOTAL-ASSETS> 3,732,172
<CURRENT-LIABILITIES> 24,190
<BONDS> 0
0
0
<COMMON> 18,120
<OTHER-SE> 3,689,862
<TOTAL-LIABILITY-AND-EQUITY> 3,732,172
<SALES> 10,322
<TOTAL-REVENUES> 1,730,722
<CGS> 6,833
<TOTAL-COSTS> 667,713
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 1,076,896
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,076,896
<EPS-BASIC> 0.06
<EPS-DILUTED> 0.06
</TABLE>
