United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
ý Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 2002.
OR
o Transaction report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from to .
Commission File Number 0-21421
VCAMPUS CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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54-1290319 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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incorporation or organization) |
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1850 Centennial Park Drive |
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20191 |
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Suite 200, |
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(Zip Code) |
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Reston, Virginia |
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(Address of principal executive offices) |
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703-893-7800
(Registrant’s telephone number, including area code)
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 the past 90 days. Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Common Stock, $0.01 par value |
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1,522,722 shares |
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(Class) |
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(Outstanding at August 8, 2002) |
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
VCAMPUS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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2001 |
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2002 |
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2001 |
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2002 |
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Revenues: |
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Online tuition revenues |
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$ |
1,742,137 |
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$ |
1,470,818 |
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$ |
3,209,100 |
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$ |
2,819,705 |
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Virtual campus software revenues |
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19,812 |
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— |
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42,471 |
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— |
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Development and other revenues |
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159,587 |
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138,518 |
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316,674 |
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233,337 |
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Product sales revenues |
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19,072 |
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— |
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38,135 |
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— |
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Other service revenues |
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21,373 |
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23,872 |
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71,834 |
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45,867 |
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Instructor-led training revenues |
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7,380 |
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— |
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102,584 |
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— |
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Net revenues |
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1,969,361 |
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1,633,208 |
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3,780,798 |
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3,098,909 |
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Costs and expenses: |
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Cost of revenues |
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369,644 |
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355,438 |
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714,124 |
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572,364 |
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Sales and marketing |
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1,314,732 |
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649,213 |
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2,677,850 |
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1,374,380 |
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Product development and operations |
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604,414 |
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509,298 |
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1,218,966 |
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1,137,559 |
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General and administrative |
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576,564 |
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371,566 |
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1,109,586 |
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789,017 |
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Depreciation and amortization |
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511,173 |
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367,832 |
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1,058,342 |
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804,279 |
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Stock-based compensation |
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15,000 |
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51,999 |
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440,898 |
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53,199 |
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Total costs and expenses |
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3,391,527 |
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2,305,346 |
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7,219,766 |
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4,730,798 |
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Loss from operations |
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(1,422,166 |
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(672,138 |
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(3,438,968 |
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(1,631,889 |
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Interest income (expense) |
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9,018 |
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(45,451 |
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14,692 |
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(257,065 |
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Loss on debt extinguishment |
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— |
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(235,758 |
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— |
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(503,246 |
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Net loss |
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(1,413,148 |
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(953,347 |
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(3,424,276 |
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(2,392,200 |
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Dividends to preferred stockholders |
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(95,469 |
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(853,153 |
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(230,521 |
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(925,352 |
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Net loss attributable to common stockholders |
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$ |
(1,508,617 |
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$ |
(1,806,500 |
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$ |
(3,654,797 |
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$ |
(3,317,552 |
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Net loss per share, basic |
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$ |
(1.26 |
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$ |
(1.23 |
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$ |
(3.37 |
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$ |
(2.26 |
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Net loss per share — assuming dilution |
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$ |
(1.26 |
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$ |
(1.23 |
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$ |
(3.37 |
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$ |
(2.26 |
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See accompanying notes.
2
VCAMPUS CORPORATION
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December 31, |
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June 30, |
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2001 |
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2002 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
2,027,771 |
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$ |
1,359,025 |
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Accounts receivable, less allowance of $99,000 and $78,000 at December 31, 2001 and June 30, 2002, respectively |
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668,180 |
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544,483 |
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Loans receivable from related parties |
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140,183 |
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144,183 |
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Loans receivable — current |
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159,736 |
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58,504 |
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Prepaid expenses and other current assets |
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287,393 |
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286,346 |
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Total current assets |
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3,283,263 |
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2,392,541 |
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Property and equipment, net |
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944,795 |
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483,569 |
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Capitalized software costs and courseware development costs, net |
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1,146,230 |
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1,082,941 |
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Acquired online publishing rights, net |
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6,230 |
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2,066 |
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Loans receivable — less current portion |
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95,441 |
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80,694 |
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Other assets |
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242,886 |
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199,668 |
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Other intangible assets, net |
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1,022,165 |
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856,420 |
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Goodwill, net |
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270,499 |
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328,317 |
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Total assets |
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$ |
7,011,509 |
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$ |
5,426,216 |
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