UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM 10-Q
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Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2002 |
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Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to . |
Commission File No. 0–22233
Endocardial Solutions, Inc.
(Exact name of registrant as specified in its charter)
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Delaware |
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41-1724963 |
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(State or other jurisdiction of incorporation or organization |
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(IRS Employer Identification Number) |
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1350 Energy Lane |
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(651) 523-6900 |
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(Address of principal executive offices and zip code) |
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(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)
Securities Exchange Act of 1934 during the preceding twelve (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, $.01 par value |
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16,616,473 |
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(Class) |
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(Number of Shares Outstanding at August 9, 2002 |
INDEX
Endocardial Solutions, Inc.
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Consolidated Balance Sheets—June 30, 2002 and December 31, 2001 |
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Consolidated Statements of Operations–—Three and six months ended June 30, 2002 and June 30, 2001 |
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Consolidated Statements of Cash Flows—Three and six months ended June 30, 2002 and June 30, 2001 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Items 1 through 3 and 5 have been omitted since all items are inapplicable or answers negative. |
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1
PART I — FINANCIAL INFORMATION
Endocardial Solutions, Inc.
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June 30, |
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December
31, |
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(Unaudited) |
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(Note) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
6,102,323 |
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$ |
4,550,059 |
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Short-term investments |
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— |
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— |
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Accounts Receivable, net of reserve for doubtful accounts (2002 — $60,000; 2001 — $60,000) |
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8,635,845 |
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5,084,412 |
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Inventories |
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3,712,896 |
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2,733,145 |
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Prepaid expenses and other current assets |
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621,644 |
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554,202 |
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Total current assets |
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19,072,708 |
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12,921,818 |
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Furniture and equipment |
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7,997,606 |
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7,329,598 |
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Less accumulated depreciation |
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(5,265,970 |
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(4,721,350 |
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2,731,636 |
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2,608,248 |
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Deposits |
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49,125 |
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49,947 |
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Patents, net of
accumulated amortization |
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15,088 |
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19,809 |
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Software
development costs, net of accumulated amortization |
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— |
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197,185 |
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Total assets |
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$ |
21,868,557 |
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$ |
15,797,007 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable and accrued expenses |
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$ |
4,224,598 |
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$ |
4,650,538 |
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Bank line of credit |
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750,000 |
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750,000 |
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Current portion of capital lease obligations |
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673,267 |
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594,010 |
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Current portion of deferred revenue |
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746,324 |
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586,104 |
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Total current liabilities |
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6,394,189 |
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6,580,652 |
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Long-term Liabilities: |
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Capital lease obligations |
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615,606 |
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301,187 |
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Deferred revenue |
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206,627 |
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199,368 |
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Total long-term liabilities |
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822,233 |
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500,555 |
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Stockholders’ equity: |
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Undesignated Preferred Stock, par value $.01 per share: |
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Authorized shares-10,000,000 |
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Issued and outstanding shares-none |
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— |
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— |
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Common Stock, $.01 par value |
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Authorized shares-40,000,000 |
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Issued and outstanding shares-June 30, 2002-16,615,640; December 31, 2001-14,934,624 |
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166,156 |
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149,346 |
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Additional paid-in capital |
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89,094,997 |
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79,707,845 |
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Less notes receivable from officer |
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(371,250 |
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(371,250 |
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Accumulated deficit |
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(74,211,008 |
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(70,486,214 |
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Accumulated other comprehensive income/(loss) |
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217,582 |
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(9,556 |
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Deferred compensation |
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(244,342 |
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(274,371 |
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Total stockholders’ equity |
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14,652,135 |
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8,715,800 |
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Total liabilities and stockholders’ equity |
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$ |
21,868,557 |
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$ |
15,797,007 |
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Note: The balance sheet at December 31, 2001 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
See accompanying notes.
2
Endocardial Solutions, Inc.
Consolidated Statements of Operations
(Unaudited)
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For the Three Months Ended |
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For the Six Months Ended |
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June 30, |
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June 30, |
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June 30, |
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June 30, |
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Revenue |
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$ |
7,531,826 |
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$ |
5,577,704 |
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$ |
14,640,122 |
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$ |
10,179,870 |
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Cost of goods sold |
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2,789,072 |
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2,223,112 |
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5,390,366 |
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4,301,171 |
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Gross margin |
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4,742,754 |
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3,354,592 |
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9,249,756 |
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5,878,699 |
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Operating expenses: |
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Research and development |
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1,287,046 |
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1,456,515 |
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2,593,968 |
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2,469,842 |
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General and administrative |
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677,754 |
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602,961 |
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