UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|
x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2003
or
|
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number 0-28701
HealthGate Data Corp.
(Exact name of registrant as specified in its charter)
|
Delaware |
04-3220927 |
|
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
|
|
|
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25
Corporate Drive, Suite 310, |
01803 |
|
(Address of principal executive offices) |
(Zip Code) |
Registrant’s telephone number, including area code: (781) 685-4000
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 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 at least the past 90 days. Yes x No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The number of shares outstanding of the registrant’s common stock as of November 3, 2003 was 5,346,988.
HealthGate
Data Corp.
FORM 10-Q
For the Quarter Ended September 30, 2003
INDEX
2
HEALTHGATE DATA CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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|
|
September 30, 2003 |
|
December 31, 2002 |
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Assets |
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Current assets: |
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|
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|
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Cash and cash equivalents |
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$ |
3,535,667 |
|
|
|
$ |
4,449,086 |
|
|
|
Accounts receivable, net of allowance for doubtful accounts of $5,701 and $3,781 at September 30, 2003 and December 31, 2002, respectively. |
|
|
279,341 |
|
|
|
128,113 |
|
|
||
|
Prepaid expenses and other current assets |
|
|
233,966 |
|
|
|
378,131 |
|
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Total current assets |
|
|
4,048,974 |
|
|
|
4,955,330 |
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|
||
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Fixed assets, net |
|
|
318,148 |
|
|
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1,355,241 |
|
|
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Other assets |
|
|
542,401 |
|
|
|
582,039 |
|
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Total assets |
|
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$ |
4,909,523 |
|
|
|
$ |
6,892,610 |
|
|
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Liabilities and Stockholders’ Equity |
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|
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|
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Current liabilities: |
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|
|
|
|
|
|
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Current portion of capital lease obligation |
|
|
$ |
— |
|
|
|
$ |
5,821 |
|
|
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Accounts payable |
|
|
290,091 |
|
|
|
797,694 |
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||
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Accrued expenses |
|
|
1,631,406 |
|
|
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1,899,148 |
|
|
||
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Deferred revenue |
|
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2,507,294 |
|
|
|
2,165,893 |
|
|
||
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Total current liabilities |
|
|
4,428,791 |
|
|
|
4,868,556 |
|
|
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Other long-term liabilities |
|
|
449,727 |
|
|
|
807,124 |
|
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Total liabilities |
|
|
4,878,518 |
|
|
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5,675,680 |
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Stockholders’ equity: |
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Common stock, $.03 par value; |
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Authorized: 100,000,000 shares |
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Issued and outstanding: 4,261,606 and 6,014,676 shares at September 30, 2003 and December 31, 2002, respectively |
|
|
127,848 |
|
|
|
180,440 |
|
|
||
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Additional paid in capital |
|
|
99,114,621 |
|
|
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99,202,276 |
|
|
||
|
Accumulated deficit |
|
|
(99,211,464 |
) |
|
|
(98,165,786 |
) |
|
||
|
Total stockholders’ equity |
|
|
31,005 |
|
|
|
1,216,930 |
|
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Commitments and contingencies |
|
|
— |
|
|
|
— |
|
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Total liabilities and stockholders’ equity |
|
|
$ |
4,909,523 |
|
|
|
$ |
6,892,610 |
|
|
The accompanying notes are an integral part of these financial statements.
3
HEALTHGATE DATA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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Three Months |
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Three Months |
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Nine Months |
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Nine Months |
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Revenue, including revenue from related parties of $115,583 for the nine months ended September 30, 2002 |
|
$ |
1,594,965 |
|
$ |
1,508,363 |
|
$ |
4,520,964 |
|
$ |
4,653,634 |
|
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
||||
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Cost of revenue |
|
516,373 |
|
759,496 |
|
1,956,142 |
|
1,973,057 |
|
||||
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Research and development |
|
403,426 |
|
566,193 |
|
1,381,253 |
|
1,870,957 |
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||||
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Sales and marketing |
|
340,903 |
|
302,432 |
|
851,912 |
|
1,200,300 |
|
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General and administrative |
|
664,255 |
|
996,233 |
|
2,282,737 |
|
3,211,105 |
|
||||
|
Lease exit costs |
|
(28,905 |
) |
— |
|
76,956 |
|
— |
|
||||
|
Total costs and expenses |
|
1,896,052 |
|
2,624,354 |
|
6,549,000 |
|
8,255,419 |
|
||||
|
Loss from operations |
|
$ |
(301,087 |
) |
$ |
(1,115,991 |
) |
$ |
(2,028,036 |
) |
$ |
(3,601,785 |
) |
|
Interest and other income, net |
|
9,576 |
|
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