UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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(Mark One) |
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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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or |
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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: 33-7106-A |
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NATURADE, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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23-2442709 |
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(State or other jurisdiction of
incorporation or |
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(I. R. S. Employer Identification No.) |
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14370 Myford Rd., Irvine, California 92606 |
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(Address of principal executive offices) (Zip code) |
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(714) 573-4800 |
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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
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
Indicate the number of shares outstanding of the registrant’s common stock, as of the latest practicable date: 44,533,886 shares as of May 13, 2003.
FORM 10-Q
QUARTERLY REPORT
Quarter Ended March 31, 2003
TABLE OF CONTENTS
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PART I: |
FINANCIAL INFORMATION |
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Item 1. |
Financial Statements |
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Balance Sheets as of March 31, 2003 (unaudited) and December 31, 2002 (audited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
NATURADE, INC.
Balance
Sheets
As of March 31, 2003 and December 31, 2002
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March 31, 2003 |
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December 31, 2002 |
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(Unaudited) |
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(Audited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
401,779 |
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$ |
722,583 |
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Accounts receivable, net |
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1,183,797 |
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1,427,058 |
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Inventories, net |
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1,125,239 |
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1,689,131 |
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Prepaid expenses and other current assets |
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256,493 |
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105,135 |
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Total current assets |
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2,967,308 |
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3,943,907 |
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Property and equipment, net |
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209,524 |
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228,723 |
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Other assets |
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58,594 |
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49,594 |
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Total assets |
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$ |
3,235,426 |
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$ |
4,222,224 |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
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$ |
2,584,169 |
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$ |
2,750,477 |
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Accrued expenses |
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527,821 |
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604,194 |
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Current portion of Note Payable to Related Party |
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202,345 |
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202,345 |
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Current portion of long-term debt |
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1,272,996 |
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1,816,662 |
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Total current liabilities |
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4,587,331 |
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5,373,678 |
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Long-term portion of Notes Payable to Related Parties, less current maturities |
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Long-term debt, less current maturities |
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29,942 |
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37,735 |
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COMMITMENTS AND CONTINGENCIES |
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REDEEMABLE CONVERTIBLE PREFERRED STOCK |
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Redeemable convertible preferred stock, Series B, less discount of $1,642,857 at March 31, 2003, and $1,714,286 at December 31, 2002, par value $0.0001 per share: authorized 50,000,000 shares; issued and outstanding, 13,540,723 at March 31, 2003 and December 31, 2002 ($2,000,000 redemption value) |
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382,666 |
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256,112 |
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WARRANT |
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500,000 |
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500,000 |
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STOCKHOLDERS’ DEFICIT: |
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Common stock, par value $0.0001 per share; authorized, 100,000,000 shares; issued and outstanding, 44,533,886 at March 31, 2003 and December 31, 2002 |
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4,453 |
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4,453 |
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Non-Voting Common stock, par value $0.0001 per share; authorized, 2,000,000 shares; issued and outstanding, 117,284 at March 31, 2003 and December 31, 2002 |
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12 |
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12 |
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Additional paid-in capital |
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18,987,458 |
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18,987,458 |
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Accumulated deficit |
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(21,256,436 |
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(20,937,224 |
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Total stockholders’ deficit |
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(2,264,513 |
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(1,945,301 |
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Total liabilities and stockholders’ deficit |
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$ |
3,235,426 |
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$ |
4,222,224 |
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See accompanying notes to financial statements.
3
NATURADE, INC
Statements of Operations for the Three-Month
Periods
Ended March 31, 2003 and March 31, 2002
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Three
Months |
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Three
Months |
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(Unaudited) |
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(Unaudited) |
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Net sales |
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$ |
3,866,055 |
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$ |
3,373,016 |
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Cost of sales |
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2,078,236 |
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1,885,113 |
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Gross profit |
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1,787,819 |
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1,487,903 |
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Costs and expenses: |
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Selling, general and administrative expenses |
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1,933,129 |
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2,110,055 |
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Depreciation and amortization |
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19,198 |
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23,263 |
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Total operating costs and expenses |
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1,952,327 |
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2,133,318 |
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Operating loss |
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(164,508 |
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