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 |
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For the Quarterly Period Ended March 31, 2003 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Transition Period From to |
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Commission File Number 000-49871
HEALTHETECH, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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77-0478611 |
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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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523 Park Point Drive, 3rd Floor, |
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80401 |
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(Address of principal executive office) |
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(Zip code) |
Registrant’s telephone number, including area code: (303) 526-5085
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 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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
As of May 2, 2003, the number of shares outstanding of the registrant’s common stock, par value $0.001 per share, was 19,615,292.
INDEX
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3 |
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4 |
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5 |
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6 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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21 |
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22-23 |
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24 |
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2
PART I. FINANCIAL INFORMATION
Item 1. Unaudited Condensed Financial Statements
HEALTHETECH, INC.
UNAUDITED CONDENSED BALANCE SHEETS
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March 31, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
15,278,485 |
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16,878,263 |
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Investments |
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1,497,114 |
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5,242,726 |
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Receivables, net of allowance of $85,000 and $29,000 in 2003 and 2002 |
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804,522 |
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3,156,686 |
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Inventory |
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2,433,707 |
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2,359,809 |
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Prepaid expenses |
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488,984 |
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3,082,412 |
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Other current assets |
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183,167 |
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17,420 |
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Total current assets |
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20,685,979 |
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30,737,316 |
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Property and equipment, net |
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2,769,395 |
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2,997,244 |
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Deposits |
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266,363 |
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266,363 |
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Restricted cash |
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1,371,170 |
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1,372,497 |
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Intangible assets, net of accumulated amortization of $885,000 and $741,000 in 2003 and 2002, respectively |
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3,366,849 |
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3,406,326 |
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TOTAL ASSETS |
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$ |
28,459,756 |
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38,779,746 |
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LIABILITIES & STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
1,460,193 |
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2,243,769 |
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Accrued liabilities |
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2,974,130 |
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2,956,560 |
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Current portion of deferred revenue |
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692,681 |
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689,851 |
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Note payable to related party |
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— |
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10,000 |
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Total current liabilities |
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5,127,004 |
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5,900,180 |
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Other liabilities: |
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Deferred revenue, less current portion |
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502,325 |
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669,767 |
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Other liabilities |
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227,843 |
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332,306 |
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Total other liabilities |
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730,168 |
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1,002,073 |
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Total liabilities |
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5,857,172 |
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6,902,253 |
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Stockholders’ equity: |
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Common stock, $0.001 par value, 100,000,000 shares authorized in 2003 and 2002, 19,615,292 and 19,562,680 shares issued and outstanding in 2003 and 2002, respectively |
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19,615 |
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19,563 |
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Deferred stock-based charges |
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(2,203,585 |
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(2,509,183 |
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Additional paid-in capital |
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98,988,256 |
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98,566,849 |
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Accumulated deficit |
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(74,201,702 |
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(64,199,736 |
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Total stockholders’ equity |
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22,602,584 |
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31,877,493 |
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Commitments and contingencies |
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TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
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$ |
28,459,756 |
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38,779,746 |
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The accompanying notes are an integral part of these unaudited condensed financial statements.
3
HEALTHETECH, INC.
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
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Three months ended March 31, |
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2003 |
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2002 |
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Revenue: |
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Product sales |
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$ |
928,117 |
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2,017,611 |
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Software and other |
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689,938 |
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337,443 |
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Total revenue |
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1,618,055 |
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2,355,054 |
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Cost of revenue: |
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Product sales |
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873,789 |
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1,666,533 |
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Software and other |
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273,520 |
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217,587 |
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Total cost of revenue |
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1,147,309 |
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1,884,120 |
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Gross profit |
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470,746 |
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470,934 |
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Operating expenses: |
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Research and development, excluding $83,613 and $62,909 of stock-based charges, respectively |
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2,434,821 |
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1,434,621 |
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Selling, general and administrative, excluding $535,234 and $524,384 of stock-based charges, respectively |
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7,490,208 |
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2,382,973 |
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Stock-based charges |
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618,847 |
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587,293 |
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Total operating expenses |
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10,543,876 |
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4,404,887 |
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Loss from operations |
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(10,073,130 |
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(3,933,953 |
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Interest income |
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73,056 |
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74,847 |
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Interest expense |
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(1,892 |
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(3,075 |
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Net loss |
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$ |
(10,001,966 |
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(3,862,181 |
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Loss per common share: |
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