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 March 31, 2003
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.
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Yes ý |
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No o |
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2).
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Yes o |
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No ý |
As of May 8, 2003, there were issued and outstanding 15,764,687 shares of common stock, par value $.01 per share.
ProCyte Corporation
Index
2
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March 31, 2003 |
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December 31, 2002 |
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Assets |
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Cash and cash equivalents |
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$ |
4,387,698 |
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$ |
4,555,985 |
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Accounts receivable, net of allowance for doubtful accounts |
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1,461,829 |
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1,327,956 |
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||
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Inventory |
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1,672,743 |
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1,717,813 |
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||
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Prepaid expenses |
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46,519 |
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326,386 |
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Other current assets |
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4,067 |
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3,319 |
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Total current assets |
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7,572,856 |
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7,931,459 |
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Property and equipment, net |
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1,214,042 |
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1,285,776 |
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Intangible assets, net |
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2,898,994 |
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2,902,996 |
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Note due from sale of contract manufacturing operations, net |
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1,833,600 |
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1,825,800 |
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Other assets |
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142,781 |
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142,781 |
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Total Assets |
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$ |
13,662,273 |
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$ |
14,088,812 |
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|
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|
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Liabilities and Stockholders’ Equity |
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|
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Accounts payable, trade |
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$ |
199,925 |
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$ |
277,178 |
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Accrued salaries and benefits |
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157,425 |
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404,282 |
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Other accrued liabilities |
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274,780 |
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259,880 |
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Deferred revenue |
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75,247 |
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21,000 |
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||
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Total current liabilities |
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707,377 |
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962,340 |
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Other liabilities |
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93,394 |
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91,258 |
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Deferred proceeds on sale of contract manufacturing operations |
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1,149,990 |
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1,216,891 |
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Total Liabilities |
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1,950,761 |
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2,270,489 |
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||
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Common stock and additional paid-in-capital |
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85,326,776 |
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85,311,638 |
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Deferred compensation |
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— |
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(10,830 |
) |
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Accumulated deficit |
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(73,615,264 |
) |
(73,482,485 |
) |
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Stockholders’ Equity |
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11,711,512 |
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11,818,323 |
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Total Liabilities and Stockholders’ Equity |
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$ |
13,662,273 |
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$ |
14,088,812 |
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See notes to condensed consolidated financial statements
3
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Three
months ended |
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2003 |
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2002 |
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Revenues |
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Product sales |
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$ |
2,881,916 |
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$ |
2,753,400 |
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Licenses and royalties |
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464,486 |
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289,000 |
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Total revenue |
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3,346,402 |
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3,042,400 |
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Cost of product sales |
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1,183,201 |
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926,081 |
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Gross profit |
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2,163,201 |
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2,116,319 |
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Operating Expenses |
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|
|
|
|
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Marketing and selling |
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1,399,575 |
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771,784 |
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Research, general, and administrative |
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967,028 |
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902,456 |
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Total operating expenses |
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2,366,603 |
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1,674,240 |
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Operating income (loss) |
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(203,402 |
) |
442,079 |
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Interest and other income |
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88,123 |
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46,797 |
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Net income (loss) before tax |
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(115,279 |
) |
488,876 |
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Provision for income tax |
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(17,500 |
) |
— |
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Net income (loss) |
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$ |
(132,779 |
) |
$ |
488,876 |
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Net earnings (loss) per share |
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|
|
|
|
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Basic |
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$ |
(0.01 |
) |
$ |
0.03 |
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Diluted |
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$ |
(0.01 |
) |
$ |
0.03 |
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Shares used in per share computation |
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|
|
|
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Basic |
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15,745,696 |
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15,682,473 |
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Diluted |
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15,745,696 |
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16,000,865 |
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See notes to condensed consolidated financial statements
4
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Three months ended March 31, |
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2003 |
|
2002 |
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Operating Activities |
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|
|
|
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Net income (loss) |
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$ |
(132,779 |
) |
$ |
488,876 |
|
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Adjustments to reconcile net income (loss) to net cash provided by (used) in operating activities: |
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|
|
|
|
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Depreciation and amortization |
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75,737 |
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78,085 |
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Amortization of deferred proceeds |
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(66,900 |
) |
(66,901 |
) |
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