UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-23512
-------
BIOCORAL INC.
- --------------------------------------------------------------------------------
(Exact name of Small Business Issuer as specified in its charter)
Delaware 33-0601504
- ------------------------------- -----------------------
(State or other jurisdiction of (IRS Employer I.D. No.)
incorporation or organization)
38 rue Anatole France, Levallois Perret Cedex, France
- --------------------------------------------------------------------------------
(Address of principal executive offices)
011-3314-757-9843
- --------------------------------------------------------------------------------
(Issuer's telephone number, including area code)
Check whether the Issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 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 |_|
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares of common stock outstanding as of September 30, 1999 was
7,924,149.
<PAGE>
PART I
Item 1. Financial Statements. Attached.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Results of Operations
The Company experienced a net loss of approximately $215,000 for the three
months ended September 30, 1999 as compared to approximately $318,000 for the
same period in 1998. The primary reason in the reduction of the net loss is the
reduction in the research and development expenditures made by the Company's
Inoteb subsidiary in the amount of approximately $108,000. This decrease was
slightly offset by increases in other expenditures. The Company's net loss for
the nine months ended September 30, 1999 increased by approximately $86,000 to
$1,018,000 from the net loss of approximately $932,000 for the comparable period
ending September 30, 1998. The primary reason for this increase was: (1)
approximately $96,000 of increased interest cost resulting from the Company's
increased borrowings; (2) approximately $99,000 of amortization on the goodwill
which resulted from the Company increasing its ownership in Inoteb from 67% to
100% during December 1998 ; and (3) an increase in miscellaneous operating
expenses.
The above resulted in the Company incurring a net loss per common share
for the three and nine months ending September 30, 1999 of $.03 and $.13 per
share as compared to a net loss of $.04 and $.12 per share for the comparable
periods ending September 30, 1998.
Financial Condition, Liquidity and Capital Resources.
At September 30, 1999, the Company had a working capital deficiency of
approximately $376,000 as compared to a working capital balance of approximately
$649,000 at December 31, 1998. The decrease in working capital during the nine
months ended September 30, 1999 of approximately $1,025,000 was used to fund the
company's loss for the period as well as repaying some long-term obligations.
Total assets decreased by approximately $1,166,000 from December 31, 1998 to
September 30, 1999, primarily due to funding the Company's losses during such
period. Cash decreased significantly, by approximately $716,000 while total
liabilities decreased slightly by approximately $148,000.
During the first quarter of 1999, the Company completed a private
placement of $1,500,000 of units of its securities, each unit consisting of
$25,000 of 8% callable convertible three year promissory notes of the Company
due December 31, 2001. As a result of the closing of such offering, Management
believes that the Company has sufficient cash flow to sustain its activities
through the end of fiscal 1999.
<PAGE>
The Company anticipates that it will need to raise at least an additional
$650,000 together with the anticipated cash flow from the Company's operations
to satisfy its cash requirements through the end of calendar 2000. However, the
Company's chairman has committed to fund up to $500,000 and, if needed, will
arrange the funding of the balance of the Company's cash requirements through
the end of calendar 2000. In the event the Company's plans change (due to
unanticipated expenses or difficulties or otherwise), or the projected cash flow
otherwise proves insufficient to fund operations, the Company could be required
to seek additional financing sooner than currently anticipated. Although the
Company is currently in the process of negotiating additional financing, it has
no current arrangements with respect to, or resources of such additional
financing.
Current Plans of Registrant
The Company's focus during the past few years has been primarily on
research and development of Inoteb's products, primarily on the autologous glue
and on osteoporosis applications for its coralline implant products. Inoteb has
been selling its products, principally within the European Community, for
several years, but does not yet have approval for the sale of its products in
the United States, a significant market. Moreover, sales of Inoteb's products at
present levels are not sufficient to fund the Company's operations. Management
believes that the US market, together with other as-yet-unserviced markets,
presents a significant opportunity for the Company's growth. Management is aware
of a company in the US which is selling in the US its own coral-based products
for use in human bone regeneration which has FDA approval for its products and
is substantially better capitalized than the Company; however, management
believes that the Company's products are superior to such competitor's products.
The Company has made arrangements for the commencement of clinical trials for
its products with a view toward FDA approval thereof . In the interim, the
Company will focus on increasing its European and other sales of its products,
entering into joint ventures with key strategic partners for distribution of its
products, research and development and the like. No assurance can be had that
any such arrangements will be reached or that they will be profitable.
The Company is less computer reliant than many small companies of similar
size. The Company has reviewed its computer systems to identify those which
could be affected by the "Y2K" problem. The Company believes that with minor
modifications to its existing hardware and software, the "Y2K" problem will not
pose significant operational difficulties for the Company's computer systems as
so modified. No such modification or conversion has or will require material
expenditures.
Statements contained herein regarding, among other things, the dates upon
which the Company anticipates commencing clinical trials for certain of its
products constitute forward-looking statements under the Federal securities
laws. Such statements are subject to certain risks and uncertainties that could
cause the actual timing of such clinical trials or other events to differ
materially from those projected. With respect to such dates, the Company's
management
<PAGE>
has made certain assumptions regarding, among other things, the successful and
timely completion of pre-clinical tests, obtaining certain approvals of the
clinical trials from the FDA, the availability of adequate clinical supplies,
the absence of delays in patient enrollment and the availability of adequate
capital resources necessary to complete the clinical trials. The Company's
ability to commence clinical trials on the dates anticipated is subject to
certain risks. Undue reliance should not be placed on the dates on which the
Company anticipates commencing clinical trials. These estimates are based upon
the current expectations of Company's management, which may change in the future
due to a large number of potential events, including unanticipated future
developments.
<PAGE>
PART II
Item 1. Legal Proceedings. There are no reportable events relating to this item.
Item 2. Changes in Securities. There are no reportable events relating to this
item.
Item 3. Defaults Upon Senior Securities. There are no reportable events relating
to this item.
Item 4. Submission of Matters to a Vote of Security Holders. There are no
reportable events relating to this item.
Item 5. Other Information. There are no reportable events relating to this
item.
Item 6. Exhibits and Reports on Form 8-K.
(A) Not applicable.
(B) None.
<PAGE>
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.
BIOCORAL, INC.
Date: November 11, 1999 /s/ Nasser Nassiri
-----------------------------
Nasser Nassiri, Chairman
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
INDEX TO UNAUDITED
CONSOLIDATED FINANCIAL STATEMENTS
PAGE
----
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998 F-2
CONSOLIDATED STATEMENTS OF OPERATIONS
NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 F-3
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY
NINE MONTHS ENDED SEPTEMBER 30, 1999 F-4
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998 F-5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F-6/11
* * *
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
September December
ASSETS 30, 1999 31, 1998
------------ ------------
(Unaudited) (See Note 1)
<S> <C> <C>
Current assets:
Cash $ 628,771 $ 1,344,608
Accounts receivable, net of allowance for doubtful accounts
of $179,400 and $262,100 98,600 96,500
Inventories 189,600 197,500
Net assets of discontinued operations 230,639
Other current assets 13,100 101,900
------------ ------------
Total current assets 930,071 1,971,147
Property and equipment, net of accumulated depreciation of
$261,130 and $230,030 23,942 47,837
Goodwill, net of accumulated amortization of $99,396 in 1999 44,175 143,571
Other assets 165,789 167,290
------------ ------------
Totals $ 1,163,977 $ 2,329,845
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Current portion of long-term debt $ 193,950 $ 226,260
Notes payable:
Related parties 428,811 428,811
Other 25,000 25,000
Accounts payable and accrued liabilities 657,843 642,417
------------ ------------
Total current liabilities 1,305,604 1,322,488
Long-term debt, net of current portion 1,960,750 2,092,140
------------ ------------
Total liabilities 3,266,354 3,414,628
------------ ------------
Commitments and contingencies
Stockholders' deficiency:
Preferred stock, par value $.001 per share; 1,000,000
shares authorized; none issued -- --
Common stock, par value $.001 per share; 20,000,000
shares authorized; 7,924,149 issued and outstanding 7,924 7,924
Additional paid-in capital 12,400,666 12,400,666
Accumulated deficit (14,510,967) (13,493,373)
------------ ------------
Total stockholders' deficiency (2,102,377) (1,084,783)
------------ ------------
Totals $ 1,163,977 $ 2,329,845
============ ============
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
NINE AND THREE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Three Months
Ended September 30, Ended September 30,
----------------------------- -----------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues:
Sales $ 270,600 $ 332,700 $ 105,300 $ 98,700
Other income 56,393 1,782 2,600 444
----------- ----------- ----------- -----------
Totals 326,993 334,482 107,900 99,144
----------- ----------- ----------- -----------
Operating expenses:
Cost of sales 54,400 107,200 11,000 35,100
Research and development 281,063 370,233 20,200 128,394
Interest 160,218 64,641 61,370 22,413
Depreciation of property and
equipment 31,100 45,800 7,200 18,000
Amortization of other assets 99,396 33,132
Amortization of unearned compen-
sation 85,312 28,437
Consulting and professional fees 207,024 307,701 62,639 101,395
Other operating expenses 511,386 285,292 127,342 82,993
----------- ----------- ----------- -----------
Totals 1,344,587 1,266,179 322,883 416,732
----------- ----------- ----------- -----------
Net loss $(1,017,594) $ (931,697) $ (214,983) $ (317,588)
=========== =========== =========== ===========
Basic net loss per common share $ (.13) $ (.12) $ (.03) $ (.04)
=========== =========== =========== ===========
Basic weighted average common
shares outstanding 7,924,149 7,750,872 7,924,149 7,856,436
=========== =========== =========== ===========
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY
NINE MONTHS ENDED SEPTEMBER 30, 1999
(Unaudited)
<TABLE>
<CAPTION>
Preferred Stock Common Stock
----------------------- ------------------
Number Number Additional Total
of of Paid-in Accumulated Stockholders'
Shares Amount Shares Amount Capital Deficit Deficiency
---------- ---------- --------- ------ ----------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance, January 1, 1999 -- $ -- 7,924,149 $7,924 $12,400,666 $(13,493,373) $(1,084,783)
Net loss (1,017,594) (1,017,594)
---------- ---------- --------- ------ ----------- ------------ -----------
Balance, September 30,
1999 -- $ -- 7,924,149 $7,924 $12,400,666 $(14,510,967) $(2,102,377)
========== ========== ========= ====== =========== ============ ===========
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
(Unaudited)
<TABLE>
<CAPTION>
1999 1998
----------- ---------
<S> <C> <C>
Operating activities:
Net loss $(1,017,594) $(931,697)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation of property and equipment 31,100 45,800
Gain on disposal of property and equipment (8,702)
Amortization of other assets 99,396
Amortization of unearned compensation 85,312
Changes in operating assets and liabilities:
Accounts receivable (2,100) 13,100
Inventories 7,900 (5,800)
Other current assets 88,800 (35,300)
Other assets 1,501 (6,119)
Accounts payable and accrued liabilities 15,426 135,815
----------- ---------
Net cash used in operating activities (775,571) (707,591)
----------- ---------
Investing activities:
Capital expenditures (7,205) (2,400)
Net proceeds from disposal of discontinued real estate
operations 230,639 199,361
----------- ---------
Net cash provided by investing activities 223,434 196,961
----------- ---------
Financing activities:
Proceeds from long-term obligations, net of amounts held
in escrow 382,227
Principal payments on long-term obligations (163,700) (70,800)
----------- ---------
Net cash provided by (used in) financing activities (163,700) 311,427
----------- ---------
Net decrease in cash (715,837) (199,203)
Cash, beginning of period 1,344,608 506,930
----------- ---------
Cash, end of period $ 628,771 $ 307,727
=========== =========
Supplemental disclosure of cash flow data:
Interest paid $ 88,014 $ 20,688
=========== =========
</TABLE>
Supplemental schedule of noncash financing activities:
During the nine months ended September 30, 1998, the Company issued
172,333 shares of common stock to pay accrued liabilities of $172,333 and
issued long-term obligations with an aggregate principal balance of
$250,000 for outstanding short-term notes payable with an equivalent
carrying value.
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Business and basis of presentation:
Business:
BioCoral, Inc. ("BioCoral") was incorporated under the laws of the
State of Delaware on May 4, 1992 and originally organized as a
"blind pool" or "blank check" company for the purpose of either
merging with or acquiring an operating company. BioCoral was a
"development stage company" for accounting purposes until March 25,
1994 when it acquired all of the issued and outstanding stock of
Cabestan, Inc. ("Cabestan"), which concurrently acquired commercial
real estate properties from a commonly-controlled related party. As
further explained in Note 2 of the notes to the consolidated
financial statements in the Company's Annual Report on Form 10-KSB
for the year ended December 31, 1998 (the "10-KSB") previously filed
with the United States Securities and Exchange Commission (the
"SEC") and in Note 3 herein, Cabestan discontinued its real estate
operations and entered into an agreement to sell its real estate
properties in October 1996 and consummated the sale in February
1997.
During 1995, BioCoral acquired an option to purchase a controlling
interest in Inoteb SA ("Inoteb"), a French corporation, that
develops and manufactures medical products. During July 1996,
BioCoral exercised its option for the purchase of the controlling
interest in Inoteb and increased its interest through additional
purchases of common stock to 67% in 1997 and 100% in 1998 (see Note
2 in the 10-KSB).
BioCoral, Inoteb, Cabestan and BioCoral's other subsidiaries are
referred to collectively herein as the "Company."
As of September 30, 1999, substantially all of the Company's
continuing operations were biomaterials operations conducted through
Inoteb. Such operations consist primarily of developing,
manufacturing and marketing bone substitute materials made from
coral and other orthopedic, oral and maxillo-facial products,
including products marketed under the trade name of BioCoral. The
Company has not received the regulatory approvals needed to market
its products in the United States. Obtaining such approvals could
take a long time and involve substantial expenditures.
As further explained in Note 2 in the 10-KSB, the cost of the
increase in the Company's interest in Inoteb's outstanding capital
stock from 67% to 100% in December 1998 was $143,571 which was
allocated to goodwill. Based on the uncertainties related to its
ability to generate profits in the future from the Inoteb
technology, the goodwill associated with the purchase of the
additional interest will be written off over thirteen months (the
shortest period allowable under generally accepted accounting
principles). Amortization of goodwill totaled $99,396 and $33,132 in
the nine and three months ended September 30, 1999, respectively.
F-6
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Business and basis of presentation (concluded):
Basis of presentation:
In the opinion of management, the accompanying unaudited
consolidated financial statements reflect all adjustments,
consisting of normal recurring accruals, necessary to present fairly
the financial position of the Company as of September 30, 1999, its
results of operations for the nine and three months ended September
30, 1999 and 1998, its changes in stockholders' equity for the nine
months ended September 30, 1999 and its cash flows for the nine
months ended September 30, 1999 and 1998. Information included in
the consolidated balance sheet as of December 31, 1998 has been
derived from the audited balance sheet in the 10-KSB. Pursuant to
rules and regulations of the SEC, certain information and
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted from these financial statements unless
significant changes have taken place since the end of the most
recent fiscal year. Accordingly, these unaudited consolidated
financial statements should be read in conjunction with the
financial statements, notes to financial statements and the other
information in the 10-KSB.
Note 2 - Loss per common share:
Effective December 31, 1997, the Company adopted the provisions of
Statement of Financial Accounting Standards No. 128, Earnings per
Share ("SFAS 128"), which requires the presentation of "basic" and
"diluted" earnings (loss) per common share, as further explained in
Note 1 in the 10-KSB.
Since the Company had losses for the nine and three months ended
September 30, 1999 and 1998, the assumed effects of the exercise of
outstanding stock options and conversion of notes payable were
anti-dilutive and, accordingly, diluted per share amounts have not
been presented in the accompanying consolidated statements of
operations.
Note 3 - Sale of discontinued real estate operations:
As further explained in Note 2 in the 10-KSB, in October 1996, the
Company decided to discontinue its real estate operations and
entered into an agreement to sell the commercial real estate owned
by Cabestan for total consideration of approximately $6,800,000
before costs directly related to the sale. The sale was consummated
on February 18, 1997. During the period from February 18, 1997 to
December 31, 1997, the purchaser paid approximately $4,748,000 by
assuming a mortgage note on the properties and paying $1,945,000 in
cash at various dates. Of the total cash payments, approximately
$1,515,000 was remitted to the Company and $430,000 was initially
deposited in escrow to secure certain minimum rent guarantees made
to the purchaser. During the nine months ended September 30, 1999,
the remaining balance of $230,639 was released from escrow and,
accordingly, there were no remaining assets or liabilities
attributable to discontinued real estate operations as of September
30, 1999.
F-7
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 4 - Income taxes:
As of September 30, 1999, the Company had net operating loss
carryforwards of approximately $8,220,000 available to reduce future
Federal taxable income which, if not used, will expire at various
dates through 2019. The Company had no other material temporary
differences as of that date. Due to the uncertainties related to,
among other things, the changes in the ownership of the Company,
which could subject those loss carryforwards to substantial annual
limitations, and the extent and timing of its future taxable income,
the Company offset the deferred tax assets attributable to the
potential benefits of approximately $2,794,000 from the utilization
of those net operating loss carryforwards by an equivalent valuation
allowance as of September 30, 1999.
The Company had also offset the potential benefits from net
operating loss carryforwards by equivalent valuation allowances
during 1998. As a result of the increases in the valuation allowance
of $448,000 and $317,000 during the nine months ended September 30,
1999 and 1998, respectively, no credits for income taxes are
included in the accompanying consolidated statements of operations.
Note 5 - Short-term notes payable:
Related parties:
At September 30, 1999 and December 31, 1998, the Company had
outstanding notes payable to related parties with a principal
balance of $428,811 that are due on demand and bear interest at 10%.
The notes are secured by 5,221 shares of Inoteb's common stock. The
noteholders have the option to convert the notes at any time into a
total of 500,000 shares of common stock of the Company (which is
equivalent to a conversion rate of $.8576 per share). Interest on
such borrowings totaled approximately $33,000 and $11,000 for the
nine and three month periods ended September 30, 1999 and 1998,
respectively.
Other:
The Company sold six month, 12% notes (the "Regulation D notes") in
the principal amount of $1,975,000 in 1994 and 1995 through an
offering that was exempt pursuant to Regulation D of the Securities
Act of 1933 of which notes in the principal amount of $25,000 were
outstanding at September 30, 1999 (see Note 5 in the 10-KSB).
Management anticipates that the Company will repay the remaining
balance as soon as it can locate the remaining noteholder.
F-8
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 6 - Long-term debt:
Long-term debt at September 30, 1999 and December 31, 1998 consisted
of the following:
September December
30, 1999 31, 1998
---------- ----------
Term loans payable monthly in varying
installments, including interest
at rates ranging from 7.75% to 9.5%,
through December 2001 (A) $ 329,000 $ 388,700
Noninterest bearing advances initially
scheduled to be paid in monthly
installments through 2002 (B) 325,700 429,700
8% callable convertible promissory
notes payable (C) 1,500,000 1,500,000
---------- ----------
2,154,700 2,318,400
Less current portion 193,950 226,260
---------- ----------
Long-term debt $1,960,750 $2,092,140
========== ==========
(A) The loans were secured by equipment with a net carrying value
of approximately $24,000 at September 30, 1999.
(B) The advances were made to Inoteb by an agency of the French
government that finances or subsidizes certain research and
development projects. If the research does not result in a
commercially feasible product and certain other conditions are
met, Inoteb will not have to pay some or all of the advances.
The Company did not receive any material subsidies in the nine
months ended September 30, 1999 and 1998.
(C) The 8% callable convertible promissory notes payable (the "8%
Notes") are due on December 31, 2001 and convertible at any
time at the holder's option at the rate of $3.50 per share
(see Note 6 in the 10-KSB). Interest on the 8% Notes is
payable annually, at the Company's option, either in cash or
shares of the Company's common stock.
F-9
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 6 - Long-term debt (concluded):
Principal payment requirements on long-term obligations in each of
the years subsequent to September 30, 1999 are as follows:
Year Ending
September 30, Amount
------------- ----------
2000 $ 193,950
2001 367,950
2002 1,592,800
Management of the Company believes that the term loans, the
noninterest bearing advances and the 8% Notes had carrying values
that approximated their fair values as of September 30, 1999 because
the interest rates and other relevant terms of such financial
instruments were the equivalent of those that the Company could have
obtained for new loans as of that date.
Note 7 - Stock option plan:
As further explained in Note 8 in the 10-KSB, on May 4, 1992, the
Company adopted a stock option plan (the "Plan") pursuant to which
options to purchase an aggregate of up to 2,000,000 shares of common
stock may be issued. On October 1, 1998, the Company cancelled the
options for the purchase of 1,958,334 shares of common stock then
outstanding, which represented the total of all of the options that
had been issued up to that date.
Note 8 - Segment and geographic information:
During 1998, the Company adopted the provisions of Statement of
Financial Accounting Standards No. 131, Disclosures about Segments
of an Enterprise and Related Information ("SFAS 131"). Pursuant to
the provisions of SFAS 131, the Company is reporting segment
information in the same format reviewed by the Company's management
(the "management approach"). The Company operates principally in one
industry segment which includes the development, manufacture and
sale of biomedical materials used in medical products. The Company
conducts operations outside of the United States, principally in
France.
F-10
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 8 - Segment and geographic information (concluded):
Information about the Company's operations in different geographic
locations for the nine months ended September 30, 1999 and 1998 is
shown below:
United
States France Other Consolidated
--------- --------- -------- ------------
1999
Revenues:
Sales $ 270,600 $ 270,600
Other income $ 21,764 34,629 56,393
--------- --------- ------------
Totals $ 21,764 $ 305,229 $ 326,993
========= ========= ============
Net loss $(549,422) $(461,100) $ (7,072) $ (1,017,594)
========= ========= ======== ============
1998
Revenues:
Sales $ 332,700 $ 332,700
Other income $ 703 1,079 1,782
--------- --------- ------------
Totals $ 703 $ 333,779 $ 334,482
========= ========= ============
Net loss $(456,685) $(444,900) $(30,112) $ (931,697)
========= ========= ======== ============
The Company had total assets of $1,163,977 as of September 30, 1999,
of which $691,536 and $472,441 represented the total assets of the
Company's operations in the United States and France, respectively.
* * *
F-11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from BIOCORAL INC
AND SUBSIDIARIES 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> 628,771
<SECURITIES> 0
<RECEIVABLES> 278,000
<ALLOWANCES> 179,400
<INVENTORY> 189,600
<CURRENT-ASSETS> 930,071
<PP&E> 285,072
<DEPRECIATION> 261,130
<TOTAL-ASSETS> 1,163,977
<CURRENT-LIABILITIES> 1,305,604
<BONDS> 2,608,511
0
0
<COMMON> 7,924
<OTHER-SE> (2,110,301)
<TOTAL-LIABILITY-AND-EQUITY> 1,163,977
<SALES> 270,600
<TOTAL-REVENUES> 326,993
<CGS> 54,400
<TOTAL-COSTS> 54,400
<OTHER-EXPENSES> 1,129,969
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 160,218
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