UNITED STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the Quarterly Period Ended September 30, 2002
Commission File Number 0-18044
PROCYTE CORPORATION
(Exact name of the registrant as specified in its charter)
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Washington |
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91-1307460 |
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(State of incorporation) |
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(I.R.S. Employer Identification No.) |
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8511 154th Avenue N.E., Redmond, WA |
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98052 |
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(Address of principal executive offices) |
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(Zip code) |
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Registrant’s telephone number, including area code: |
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(425) 869-1239 |
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
As of November 5, 2002, there were issued and outstanding 15,732,244 shares of common stock, par value $.01 per share.
ProCyte Corporation
Index
2
Part I - Financial Information
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September 30, 2002 |
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December 31, 2001 |
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Assets |
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Cash and cash equivalents |
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$ |
3,845,507 |
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$ |
3,002,579 |
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Accounts receivable, net of allowance for doubtful accounts |
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1,457,752 |
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956,024 |
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||
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Inventory |
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1,869,916 |
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2,218,556 |
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Other current assets |
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270,777 |
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328,666 |
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Total current assets |
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7,443,952 |
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6,505,825 |
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Property and equipment, net |
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1,346,625 |
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1,554,387 |
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Intangible assets, net |
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2,906,998 |
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2,919,004 |
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Note due from sale of contract manufacturing operations, net |
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1,818,000 |
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1,794,600 |
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Other assets |
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140,286 |
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36,782 |
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Total Assets |
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$ |
13,655,861 |
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$ |
12,810,598 |
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Liabilities and Stockholders’ Equity |
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Accounts payable and other accrued liabilities |
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$ |
772,418 |
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$ |
1,084,338 |
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Deferred revenue |
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22,000 |
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62,728 |
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Total current liabilities |
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794,418 |
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1,147,066 |
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Other liabilities |
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89,081 |
|
101,753 |
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Deferred proceeds on sale of contract manufacturing operations |
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1,293,405 |
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1,494,106 |
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Total Liabilities |
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2,176,904 |
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2,742,925 |
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Common stock and additional paid-in-capital |
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85,285,019 |
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85,219,011 |
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Accumulated deficit |
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(73,806,062 |
) |
(75,151,338 |
) |
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Stockholders’ Equity |
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11,478,957 |
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10,067,673 |
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Total Liabilities and Stockholders’ Equity |
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$ |
13,655,861 |
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$ |
12,810,598 |
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See notes to condensed consolidated financial statements
3
Statements of Operations - Three & Nine Months Ended September 30, 2002 and 2001
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Three
months ended |
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Nine
months ended |
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2002 |
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2001 |
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2002 |
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2001 |
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Revenues |
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Product sales |
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$ |
2,735,068 |
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$ |
1,756,609 |
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$ |
8,403,713 |
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$ |
6,170,913 |
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Licenses and royalties |
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391,427 |
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577,852 |
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1,028,376 |
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924,363 |
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Contract manufacturing |
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— |
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— |
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— |
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195,620 |
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Total revenue |
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3,126,495 |
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2,334,461 |
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9,432,089 |
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7,290,896 |
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Cost of product sales |
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1,285,907 |
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703,061 |
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3,308,490 |
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2,649,887 |
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Gross profit |
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1,840,588 |
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1,631,400 |
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6,123,599 |
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4,641,009 |
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Operating Expenses |
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Marketing and selling |
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728,094 |
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719,634 |
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2,278,591 |
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2,326,750 |
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General, research and administrative |
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840,121 |
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958,876 |
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2,642,052 |
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3,186,033 |
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Loss on sale of contract manufacturing operations |
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— |
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9,955 |
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— |
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109,594 |
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Total operating expenses |
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1,568,215 |
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1,688,465 |
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4,920,643 |
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5,622,377 |
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Operating income (loss) |
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272,373 |
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(57,065 |
) |
1,202,956 |
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(981,368 |
) |
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Interest and other income |
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49,357 |
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44,996 |
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142,320 |
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102,993 |
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Net income (loss) |
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$ |
321,730 |
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$ |
(12,069 |
) |
$ |
1,345,276 |
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$ |
(878,375 |
) |
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Net earnings (loss) per share |
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Basic |
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$ |
0.02 |
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$ |
(0.00 |
) |
$ |
0.09 |
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$ |
(0.06 |
) |
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Diluted |
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$ |
0.02 |
|
$ |
(0.00 |
) |
$ |
0.08 |
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$ |
(0.06 |
) |
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Shares used in per share computation |
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Basic |
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15,721,705 |
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15,595,502 |
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15,703,200 |
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15,563,318 |
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Diluted |
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