U.S. 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
June 30, 2003
Commission file number: 0-30391
MEDIS TECHNOLOGIES LTD.
(Exact Name of Registrant as Specified in its Charter)
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Delaware |
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13-3669062 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
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805 Third Avenue |
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(Address of Principal Executive Offices and Zip Code) |
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(212) 935-8484 |
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(Registrant’s Telephone Number, Including Area Code) |
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Indicate by checkmark 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 checkmark whether the registrant is an accelerated filer as defined in Rule 12b-2 of the Exchange Act.
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Yes ý |
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No o |
The number of shares of Common Stock, par value $.01 per share, outstanding as of August 6, 2003 was 23,569,443.
MEDIS TECHNOLOGIES LTD.
FOR THE QUARTER ENDED JUNE 30, 2003
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Medis
Technologies Ltd. and Subsidiaries
Condensed Consolidated Balance
Sheets
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December 31, 2002 |
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June 30, 2003 |
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(unaudited) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
6,036,000 |
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$ |
6,667,000 |
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Accounts receivable - trade |
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— |
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80,000 |
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Accounts receivable - other |
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50,000 |
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63,000 |
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Prepaid expenses and other current assets |
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52,000 |
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242,000 |
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Total current assets |
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6,138,000 |
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7,052,000 |
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Property and equipment, net |
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1,199,000 |
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1,254,000 |
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Goodwill, net |
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58,205,000 |
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58,205,000 |
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Intangible assets, net |
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832,000 |
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984,000 |
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Other assets |
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520,000 |
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— |
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Total assets |
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$ |
66,894,000 |
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$ |
67,495,000 |
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LIABILITIES AND |
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Current liabilities |
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Accounts payable |
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$ |
128,000 |
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$ |
210,000 |
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Accrued expenses and other current liabilities |
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973,000 |
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1,129,000 |
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Total current liabilities |
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1,101,000 |
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1,339,000 |
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Accrued severance pay |
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388,000 |
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469,000 |
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Total liabilities |
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1,489,000 |
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1,808,000 |
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Stockholders’ equity |
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Preferred stock, $.01 par value; 10,000 shares authorized; none issued |
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— |
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— |
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Common stock, $.01 par value; 35,000,000 shares authorized; 21,102,301 and 23,562,873 issued and outstanding at December 31, 2002 and June 30, 2003, respectively |
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211,000 |
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236,000 |
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Additional paid-in capital |
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161,584,000 |
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167,139,000 |
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Long-term note secured by the Company’s shares |
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— |
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(155,000 |
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Accumulated deficit |
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(96,390,000 |
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(101,533,000 |
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Total stockholders’ equity |
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65,405,000 |
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65,687,000 |
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Total liabilities and stockholders’ equity |
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$ |
66,894,000 |
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$ |
67,495,000 |
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The accompanying notes are an integral part of these statements.
1
Medis Technologies Ltd. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
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Three
Months Ended |
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Six Months
Ended |
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2002 |
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2003 |
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2002 |
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2003 |
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Sales |
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$ |
36,000 |
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$ |
38,000 |
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$ |
116,000 |
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$ |
75,000 |
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Cost of sales |
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27,000 |
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9,000 |
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78,000 |
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27,000 |
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Gross profit |
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9,000 |
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29,000 |
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38,000 |
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48,000 |
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Operating expenses |
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Research and development costs, net |
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989,000 |
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1,261,000 |
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1,940,000 |
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2,453,000 |
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Selling, general and administrative expenses |
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953,000 |
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1,057,000 |
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2,012,000 |
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1,874,000 |
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Amortization of intangible assets |
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663,000 |
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375,000 |
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1,330,000 |
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893,000 |
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Total operating expenses |
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2,605,000 |
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2,693,000 |
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5,282,000 |
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5,220,000 |
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Loss from operations |
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(2,596,000 |
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(2,664,000 |
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(5,244,000 |
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(5,172,000 |
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