SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20459
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED June 30, 2002
COMMISSION FILE NUMBER 0-20970
VISION-SCIENCES, INC.
(Exact name of registrant as specified in its charter)
|
Delaware |
|
13-3430173 |
|
(State or other
jurisdiction of |
|
(IRS Employer |
|
|
|
|
|
9 Strathmore Road, Natick, MA |
|
01760 |
|
(Address of principal executive offices) |
|
(Zip Code) |
(508) 650-9971
(Registrant’s telephone number, including area code)
None
(Former name, former address, and
former fiscal year if changed since last report)
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 requirement 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 July 31, 2002.
|
Common Stock, par value of $.01 |
|
27,198,712 |
|
(Title of Class) |
|
(Number of Shares) |
VISION-SCIENCES, INC.
TABLE OF CONTENTS
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
2
PART I - FINANCIAL INFORMATION
VISION-SCIENCES, INC. AND SUBSIDIARIES
(Unaudited)
|
|
|
June 30, |
|
March 31, |
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current Assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
1,542,255 |
|
$ |
2,890,364 |
|
|
Marketable securities |
|
1,100,965 |
|
251,445 |
|
||
|
Accounts receivable, net of allowance for doubtful accounts of $77,654 and $76,641, respectively |
|
941,167 |
|
834,577 |
|
||
|
Inventories |
|
1,344,743 |
|
1,193,181 |
|
||
|
Prepaid expenses and deposits |
|
83,785 |
|
76,932 |
|
||
|
Total current assets |
|
5,012,915 |
|
5,246,499 |
|
||
|
|
|
|
|
|
|
||
|
Property and Equipment, at cost: |
|
|
|
|
|
||
|
Machinery and equipment |
|
3,305,471 |
|
3,283,341 |
|
||
|
Furniture and fixtures |
|
208,934 |
|
208,934 |
|
||
|
Leasehold improvements |
|
466,505 |
|
462,882 |
|
||
|
|
|
3,980,910 |
|
3,955,157 |
|
||
|
Less-Accumulated depreciation and amortization |
|
3,348,405 |
|
3,297,582 |
|
||
|
|
|
632,505 |
|
657,575 |
|
||
|
|
|
|
|
|
|
||
|
Other assets, net of accumulated amortization of $36,331 and $34,746, respectively |
|
94,515 |
|
96,100 |
|
||
|
Total assets |
|
$ |
5,739,935 |
|
$ |
6,000,174 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Current Liabilities: |
|
|
|
|
|
||
|
Acceptances payable to a bank |
|
$ |
36,911 |
|
$ |
43,226 |
|
|
Current portion of note payable |
|
9,739 |
|
23,989 |
|
||
|
Accounts payable |
|
582,548 |
|
286,730 |
|
||
|
Accrued expenses |
|
948,799 |
|
1,103,156 |
|
||
|
Total current liabilities |
|
1,577,997 |
|
1,457,101 |
|
||
|
|
|
|
|
|
|
||
|
Potential obligations to non-qualified option holders |
|
222,150 |
|
421,110 |
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ Equity: |
|
|
|
|
|
||
|
Common stock,
$.01 par value — Authorized — 50,000,000 shares |
|
271,986 |
|
271,052 |
|
||
|
Additional paid-in capital |
|
58,510,521 |
|
58,386,502 |
|
||
|
Accumulated deficit |
|
(54,842,719 |
) |
(54,535,591 |
) |
||
|
Total stockholders’ equity |
|
3,939,788 |
|
4,121,963 |
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
5,739,935 |
|
$ |
6,000,174 |
|
See accompanying notes to consolidated financial statements.
3
VISION-SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
Three
Months Ended |
|
||||
|
|
|
2002 |
|
2001 |
|
||
|
Net sales |
|
$ |
1,734,459 |
|
$ |
1,731,880 |
|
|
Cost of sales |
|
1,272,486 |
|
1,144,992 |
|
||
|
|
|
|
|
|
|
||
|
Gross profit |
|
461,973 |
|
586,888 |
|
||
|
|
|
|
|
|
|
||
|
Selling, general and administrative expenses (1) |
|
788,058 |
|
644,816 |
|
||
|
Research and development expenses(1) |
|
94,540 |
|
33,140 |
|
||
|
Stock-based compensation |
|
(94,507 |
) |
— |
|
||
|
Loss from operations |
|
(326,118 |
) |
(91,068 |
) |
||
|
|
|
|
|
|
|
||
|
Interest income |
|
12,147 |
|
43,929 |
|
||
|
Interest expense |
|
(578 |
) |
(2,182 |
) |
||
|
Equity in losses of 3DV Systems Ltd |
|
— |
|
(500,000 |
) |
||
|
Other income, net |
|
7,421 |
|
1,645 |
|
||
|
|
|
|
|
|
|
||
|
Net loss before cumulative effect of change in accounting principle |
|
(307,128 |
) |
(547,676 |
) |
||
|
|
|
|
|
|
|
||
|
Cumulative effect of change in accounting principle (Note 2) |
|
— |
|
327,169 |
|
||
|
|
|
|
|
|
|
||
|
Net loss after cumulative effect of change in accounting principle |
|
$ |
(307,128 |
) |
$ |
(874,845 |
) |
|
|
|
|
|
|
|
||
|
Basic and diluted net loss per common share |
|
$ |
(0.01 |
) |
$ |
(0.03 |
) |
|
|
|
|
|
|
|
||
|
Shares used in computing basic and diluted net loss per common share |
|
27,185,845 |
|
26,636,627 |
| ||