UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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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 September 30, 2002
OR
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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 number: 000-27127
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iBasis, Inc. |
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(Exact name of registrant as specified in its charter) |
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Delaware |
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04-3332534 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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20 Second Avenue, Burlington, MA 01803 |
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(Address of executive offices, including zip code) |
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(781) 505-7500 |
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(Registrant’s telephone number, including area code) |
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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 10, 2002, there were 45,785,055 shares of the Registrant’s Common Stock, par value $0.001 per share, outstanding.
iBASIS, INC.
Index
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PART I — FINANCIAL INFORMATION |
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Item 1 — |
Condensed Consolidated Financial Statements |
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Consolidated Balance Sheets at September 30, 2002 and December 31, 2001 |
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Consolidated Statements of Operations for the Three Months Ended September 30, 2002 and 2001 |
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Consolidated Statements of Operations for the Nine Months Ended September 30, 2002 and 2001 |
5 |
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Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2002 and 2001 |
6 |
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7-12 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
12-31 |
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31 |
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31 |
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31-32 |
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32 |
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32 |
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32 |
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33 |
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34-35 |
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2
iBasis, Inc.
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September 30, |
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December 31, |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
24,504,622 |
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$ |
75,798,935 |
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Marketable securities |
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— |
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25,613,530 |
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Restricted cash |
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7,666,666 |
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8,866,667 |
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Accounts receivable, net of allowance for doubtful accounts of approximately $7.7 million and $5.8 million, respectively |
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22,434,118 |
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24,449,173 |
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Prepaid expenses and other current assets |
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6,795,437 |
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7,292,483 |
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Assets of discontinued operations |
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— |
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84,253,779 |
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Total current assets |
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61,400,843 |
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226,274,567 |
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Property and equipment, at cost |
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Equipment under capital lease |
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19,155,098 |
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70,783,992 |
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Network equipment |
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57,031,538 |
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39,087,362 |
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Computer software |
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6,678,348 |
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8,804,445 |
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Construction in process |
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3,060,534 |
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5,280,191 |
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Leasehold improvements |
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3,503,624 |
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4,831,794 |
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Furniture & fixtures |
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1,043,046 |
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1,060,771 |
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90,472,188 |
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129,848,555 |
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Less: Accumulated depreciation and amortization |
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(52,306,128 |
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(45,569,484 |
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Property and equipment, net |
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38,166,060 |
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84,279,071 |
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Deferred debt financing costs, net |
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1,538,371 |
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2,859,814 |
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Long term investment in non-marketable security |
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5,000,000 |
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5,000,000 |
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Long term investments in marketable securities |
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— |
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8,411,362 |
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Other assets |
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2,252,485 |
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2,000,266 |
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$ |
108,357,759 |
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$ |
328,825,080 |
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Liabilities and Stockholders’ Equity (Deficit) |
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Current liabilities: |
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Accounts payable |
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$ |
9,292,519 |
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$ |
10,659,138 |
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Accrued expenses |
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21,477,968 |
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28,847,080 |
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Liabilities of discontinued operations |
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— |
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4,949,313 |
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Long term debt, current portion |
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7,457,668 |
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26,309,611 |
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Total current liabilities |
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38,228,155 |
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70,765,142 |
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Long term debt, net of current portion |
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93,061,818 |
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171,343,316 |
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Stockholders’ equity (deficit): |
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Common stock, $0.001 par value, authorized—85,000,000 shares; issued and outstanding—45,785,055 and 45,271,318 shares, respectively |
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45,785 |
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45,271 |
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Preferred stock, $0.001 par value, authorized 15,000,000 shares; issued and outstanding none |
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— |
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— |
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Additional paid-in capital |
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369,253,703 |
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369,692,193 |
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Deferred compensation |
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(561,313 |
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(2,225,074 |
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Accumulated deficit |
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(391,670,389 |
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(280,795,768 |
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Total stockholders’ equity (deficit) |
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(22,932,214 |
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86,716,622 |
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$ |
108,357,759 |
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$ |
328,825,080 |
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