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 No. 0-22233 |
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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 |
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(IRS Employer |
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1350 Energy Lane |
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(651) 523-6900 |
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(Address of principal executive offices |
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(Registrant’s telephone number |
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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act)
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, $.01 par value |
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19,696,593 |
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(Class) |
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(Number of Shares Outstanding at May 5, 2003 |
INDEX
Endocardial Solutions, Inc.
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Consolidated Balance Sheets-March 31, 2003 and December 31, 2002 |
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Consolidated Statements of Operations- Three months ended March 31, 2003 and March 31, 2002 |
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Consolidated Statements of Cash Flows-Three months ended March 31, 2003 and March 31, 2002 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
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Items 1 and 3 through 5 have been omitted since all items are inapplicable or answers negative. |
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1
PART I - FINANCIAL INFORMATION
Endocardial Solutions, Inc.
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March 31, |
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December
31, |
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(Unaudited) |
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(Note) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
5,581,046 |
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$ |
1,347,753 |
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Accounts Receivable, net of reserve for doubtful accounts (2003 - $60,000; 2002 - $60,000) |
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8,948,302 |
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8,148,723 |
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Inventories |
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5,046,516 |
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4,634,635 |
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Prepaid expenses and other current assets |
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1,004,222 |
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872,684 |
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Total current assets |
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20,580,086 |
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15,003,795 |
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Furniture and equipment |
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8,643,243 |
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8,278,575 |
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Less accumulated depreciation |
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(6,094,352 |
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(5,827,679 |
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2,548,891 |
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2,450,896 |
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Deposits |
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49,628 |
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49,344 |
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Notes Receivable |
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206,226 |
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206,226 |
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Patents, net of accumulated amortization (2003 - $122,265; 2002 - $120,494) |
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9,033 |
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10,804 |
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Total assets |
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$ |
23,393,864 |
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$ |
17,721,065 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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$ |
1,842,143 |
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$ |
1,705,316 |
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Accrued compensation expenses |
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1,721,483 |
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2,671,764 |
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Bank line of credit |
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1,000,000 |
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1,000,000 |
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Current portion of capital lease obligations |
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435,100 |
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513,593 |
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Current portion of deferred revenue |
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2,908,147 |
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2,217,285 |
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Total current liabilities |
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7,906,873 |
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8,107,958 |
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Long-term Liabilities: |
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Capital lease obligations |
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284,799 |
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363,195 |
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Deferred revenue |
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434,284 |
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435,170 |
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Total long-term liabilities |
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719,083 |
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798,365 |
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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, $.01 par value |
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Authorized shares–40,000,000 |
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Issued and outstanding shares–March 31, 2003–19,664,593; December 31, 2002–16,567,593 |
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196,646 |
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165,676 |
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Additional paid-in capital |
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96,920,097 |
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88,986,908 |
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Accumulated deficit |
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(82,609,576 |
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(80,447,669 |
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Accumulated other comprehensive gain/(loss) |
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436,637 |
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308,537 |
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Deferred compensation |
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(175,896 |
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(198,710 |
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Total stockholders’ equity |
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14,767,908 |
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8,814,742 |
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Total liabilities and stockholders’ equity |
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$ |
23,393,864 |
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$ |
17,721,065 |
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Note: The balance sheet at December 31, 2002 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
Consolidated Statements of Operations
(Unaudited)
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For the Three Months Ended |
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March 31, |
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March 31, |
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Revenue |
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$ |
7,291,744 |
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$ |
7,108,296 |
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Cost of goods sold |
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2,415,004 |
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2,601,295 |
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Gross margin |
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4,876,740 |
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4,507,001 |
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Operating expenses: |
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Research and development |
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1,545,370 |
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1,306,921 |
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General and administrative |
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747,229 |
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601,699 |
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Sales and marketing |
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4,707,383 |
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4,377,121 |
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Operating loss |
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(2,123,242 |
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(1,778,740 |
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Other income (expense): |
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Interest income |
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11,405 |
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