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 June 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
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(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 June 30, 1999 was
7,924,149.
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
INDEX TO UNAUDITED
CONSOLIDATED FINANCIAL STATEMENTS
PAGE
----
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1999 AND DECEMBER 31, 1998 F-2
CONSOLIDATED STATEMENTS OF OPERATIONS
SIX AND THREE MONTHS ENDED JUNE 30, 1999 AND 1998 F-3
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY
SIX MONTHS ENDED JUNE 30, 1999 F-4
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1999 AND 1998 F-5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F-6/11
* * *
F-1
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 1999 AND DECEMBER 31, 1998
<TABLE>
<CAPTION>
June December
ASSETS 30, 1999 31, 1998
------------ ------------
(Unaudited) (See Note 1)
<S> <C> <C>
Current assets:
Cash $ 817,044 $ 1,344,608
Accounts receivable, net of allowance for doubtful accounts
of $179,400 and $262,100 51,500 96,500
Inventories 187,900 197,500
Net assets of discontinued operations 230,639
Other current assets 47,600 101,900
------------ ------------
Total current assets 1,104,044 1,971,147
Property and equipment, net of accumulated depreciation of
$253,930 and $230,030 30,042 47,837
Goodwill, net of accumulated amortization of $66,264 in 1999 77,307 143,571
Other assets 166,389 167,290
------------ ------------
Totals $ 1,377,782 $ 2,329,845
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Current portion of long-term debt $ 226,550 $ 226,260
Notes payable:
Related parties 428,811 428,811
Other 25,000 25,000
Accounts payable and accrued liabilities 640,965 642,417
------------ ------------
Total current liabilities 1,321,326 1,322,488
Long-term debt, net of current portion 1,943,850 2,092,140
------------ ------------
Total liabilities 3,265,176 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 (14,295,984) (13,493,373)
------------ ------------
Total stockholders' deficiency (1,887,394) (1,084,783)
------------ ------------
Totals $ 1,377,782 $ 2,329,845
============ ============
</TABLE>
See Notes to Consolidated Financial Statements.
F-2
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
SIX AND THREE MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
<TABLE>
<CAPTION>
Six Months Three Months
Ended June 30, Ended June 30,
-------------------------- --------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues:
Sales $ 165,300 $ 234,000 $ 84,600 $ 91,000
Other income 53,793 1,338 21,285 532
----------- ----------- ----------- -----------
Totals 219,093 235,338 105,885 91,532
----------- ----------- ----------- -----------
Operating expenses:
Cost of sales 43,400 72,100 9,700 40,500
Research and development 260,863 241,839 58,300 125,039
Interest 98,848 42,228 57,369 22,833
Depreciation of property
and equipment 23,900 27,800 14,000 14,200
Amortization of other assets 66,264 33,132
Amortization of unearned
compensation 56,875 28,438
Consulting and professional
fees 144,385 206,306 62,147 100,802
Other operating expenses 384,044 202,299 160,531 90,906
----------- ----------- ----------- -----------
Totals 1,021,704 849,447 395,179 422,718
----------- ----------- ----------- -----------
Net loss $ (802,611) $ (614,109) $ (289,294) $ (331,186)
=========== =========== =========== ===========
Basic net loss per common share $ (.10) $ (.08) $ (.04) $ (.04)
=========== =========== =========== ===========
Weighted average common shares
outstanding 7,924,149 7,697,215 7,924,149 7,697,215
=========== =========== =========== ===========
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY
SIX MONTHS ENDED JUNE 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 (802,611) (802,611)
---------- ------------ ------------ ------------ ------------ ------------ ------------
Balance, June 30, 1999 -- $ -- 7,924,149 $ 7,924 $ 12,400,666 $(14,295,984) $ (1,887,394)
========== ============ ============ ============ ============ ============ ============
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1999 AND 1998
(Unaudited)
<TABLE>
<CAPTION>
1999 1998
----------- -----------
<S> <C> <C>
Operating activities:
Net loss $ (802,611) $ (614,109)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation of property and equipment 23,900 27,800
Loss on disposal of property and equipment 22,097
Amortization of other assets 66,264
Amortization of unearned compensation 56,875
Changes in operating assets and liabilities:
Accounts receivable 45,000 25,700
Inventories 9,600 11,100
Other current assets 54,300 15,600
Other assets 901 (4,532)
Accounts payable and accrued liabilities (1,452) 31,694
----------- -----------
Net cash used in operating activities (604,098) (427,775)
----------- -----------
Investing activities:
Capital expenditures (6,105) (599)
Net proceeds from disposal of discontinued real estate
operations 230,639 174,681
----------- -----------
Net cash provided by investing activities 224,534 174,082
----------- -----------
Financing activities:
Proceeds from note payable to related party 11,400
Proceeds from other short-term obligations 250,000
Principal payments on long-term obligations (148,000) (44,300)
----------- -----------
Net cash provided by (used in) financing
activities (148,000) 217,100
----------- -----------
Net decrease in cash (527,564) (36,593)
Cash, beginning of period 1,344,608 506,930
----------- -----------
Cash, end of period $ 817,044 $ 470,337
=========== ===========
Supplemental disclosure of cash flow data:
Interest paid $ 38,331 $ 42,228
=========== ===========
</TABLE>
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 June 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.
F-6
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1 - Business and basis of presentation (concluded):
Business (concluded):
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 $66,264 and $33,132 in
the six and three months ended June 30, 1999, respectively.
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 June 30, 1999, its
results of operations for the six and three months ended June 30,
1999 and 1998, its changes in stockholders' equity for the six
months ended June 30, 1999 and its cash flows for the six months
ended June 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 "primary" and "diluted"
earnings (loss) per common share, as further explained in Note 1 in the
10-KSB.
Since the Company had losses for the six and three months ended June 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.
F-7
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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 six months ended June 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 June 30, 1999.
Note 4 - Income taxes:
As of June 30, 1999, the Company had net operating loss carryforwards of
approximately $8,043,000 available to reduce future Federal taxable income
which, if not used, will expire at various dates through 2019. Due to
changes in the ownership of the Company, the utilization of these loss
carryforwards may be subject to substantial annual limitations.
Deferred tax assets of approximately $2,734,000 and $2,346,000
attributable to the potential benefits from such net operating loss
carryforwards as of June 30, 1999 and December 31, 1998, respectively,
were offset by equivalent valuation allowances due to the uncertainties
related to the extent and timing of the Company's future taxable income.
There were no other material temporary differences as of these dates.
Note 5 - Short-term notes payable:
Related parties:
At June 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 $22,000 and $11,000 for the
six and three month periods ended June 30, 1999 and 1998,
respectively.
F-8
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 5 - Short-term notes payable (concluded):
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 June 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.
Note 6 - Long-term debt:
Long-term debt at June 30, 1999 and December 31, 1998 consisted of the
following:
June December
30, 1999 31, 1998
---------- ----------
Term loans payable monthly in varying install-
ments, including interest at rates ranging
from 6.95% to 9.5%, through December
2001 (A) $ 312,500 $ 388,700
Noninterest bearing advances initially scheduled
to be paid in monthly installments through
2002 (B) 357,900 429,700
8% callable convertible promissory notes
payable (C) 1,500,000 1,500,000
---------- ----------
2,170,400 2,318,400
Less current portion 226,550 226,260
---------- ----------
Long-term debt $1,943,850 $2,092,140
========== ==========
(A) The loans were secured by equipment with a net carrying value of
approximately $30,000 at June 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 six months ended
June 30, 1999 and 1998.
F-9
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 6 - Long-term debt (concluded):
(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.
Principal payment requirements on long-term obligations in each of the
years subsequent to June 30, 1999 are as follows:
Year Ending
June 30, Amount
-------- ------
2000 $ 226,550
2001 351,050
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 June 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. As of June 30, 1999, there were no options outstanding under
the Plan.
F-10
<PAGE>
BIOCORAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
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.
Information about the Company's operations in different geographic
locations for the six months ended June 30, 1999 and 1998 is shown below:
United
States France Other Consolidated
--------- --------- ---------- ------------
1999
Revenues:
Sales $ 165,300 $ 165,300
Other income $ 21,764 32,029 53,793
--------- --------- ---------
Totals $ 21,764 $ 197,329 $ 219,093
========= ========= =========
Net loss $(386,639) $(408,900) $ (7,072) $(802,611)
========= ========= ========== =========
1998
Revenues:
Sales $ 234,000 $ 234,000
Other income $ 703 635 1,338
--------- --------- ---------
Totals $ 703 $ 234,635 $ 235,338
========= ========= =========
Net loss $(318,311) $(276,200) $ (19,598) $(614,109)
========= ========= ========== =========
The Company had total assets of $1,377,782 as of June 30, 1999, of which
$824,741 and $553,041 represented the total assets of the Company's
operations in the United States and France, respectively.
* * *
F-11
<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 $289,000 for the three
months ended June 30, 1999 as compared to approximately $331,000 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 $67,000. This decrease was
slightly offset by increases in other expenditures. The Company's net loss for
the six months ended June 30, 1999 increased by approximately $189,000 to
$803,000 from the net loss of approximately $614,000 for the comparable period
ending June 30, 1998. The primary reason for this increase was: (1) a decrease
in Inoteb's sales from approximately $234,000 to approximately $165,000; (2)
approximately $56,000 of increased interest cost resulting from the Company's
increased borrowings; and (3) approximately $67,000 of amortization on the
goodwill which resulted from the Company increasing its ownership in Inoteb from
67% to 100% during December 1998.
The above resulted in the Company incurring a net loss per common share
for the three and six months ending June 30, 1999 of $.04 and $.08 per share as
compared to a net loss of $.08 and $.04 per share for the comparable periods
ending June 30, 1998.
Financial Condition, Liquidity and Capital Resources.
At June 30, 1999, the Company had a working capital deficiency of
approximately $217,000 as compared to a working capital balance of approximately
$649,000 at December 31, 1998. The decrease in working capital during the six
months ended June 30, 1999 of approximately $866,000 was used to fund the
company's loss for the period as well as repaying some long-term obligations.
Total assets decreased by $952,063 from December 31, 1998 to June 30, 1999,
primarily due to funding the Company's losses during Stub 1999. Cash decreased
significantly, by $527,564 while total liabilities decreased slightly by
$149,452.
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
$750,000 together with the anticipated cash flow from the Company's operations
to satisfy its cash requirements for at least twelve months. However, the
Company's president has committed to fund $500,000 and if needed will arrange
the funding of the balance of the Company's cash requirements for the next
twelve months. 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 additional financing. Accordingly,
there can be no assurances that additional financing will be available to the
Company when needed, on commercially reasonable terms, or at all which could
have a material adverse effect on the Company's long-term viability.
Current Plans of Registrant
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. 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 has made certain assumptions regarding, among other things, the
successful and timely completion of
<PAGE>
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: August 16, 1999 /s/ Nasser Nassiri
----------------------------------------
Nasser Nassiri, Chairman
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from BioCoral
Inc. and Subsidiaries and is qualified in it's entirety by references to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 817,044
<SECURITIES> 0
<RECEIVABLES> 230,900
<ALLOWANCES> 179,400
<INVENTORY> 187,900
<CURRENT-ASSETS> 1,104,044
<PP&E> 283,972
<DEPRECIATION> 253,930
<TOTAL-ASSETS> 1,377,782
<CURRENT-LIABILITIES> 1,321,326
<BONDS> 2,624,211
0
0
<COMMON> 7,924
<OTHER-SE> (1,895,318)
<TOTAL-LIABILITY-AND-EQUITY> 1,377,782
<SALES> 165,300
<TOTAL-REVENUES> 219,093
<CGS> 43,400
<TOTAL-COSTS> 43,400
<OTHER-EXPENSES> 879,456
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 98,848
<INCOME-PRETAX> (802,611)
<INCOME-TAX> 0
<INCOME-CONTINUING> (802,611)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (802,611)
<EPS-BASIC> (.10)
<EPS-DILUTED> 0
</TABLE>
