FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(MARK ONE)
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ý 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 JUNE 30, 2003 |
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OR |
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o 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: 0-30859 |
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CARESCIENCE, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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PENNSYLVANIA |
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23-2703715 |
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(STATE OR OTHER JURISDICTION |
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(I.R.S. EMPLOYER |
3600 MARKET STREET
PHILADELPHIA, PA 19104
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(ZIP CODE)
(215) 387-9401
(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE)
(FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
IF CHANGED SINCE LAST REPORT)
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
Indicated by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
The number of shares of the registrant’s Common Stock outstanding, as of August 7, 2003 was 13,291,461.
CARESCIENCE, INC.
FORM 10-Q
JUNE 30, 2003
INDEX
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
CARESCIENCE, INC. AND
SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
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June 30, |
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December 31, |
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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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$ |
8,636,209 |
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$ |
11,677,225 |
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Short-term investments |
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5,989,790 |
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5,489,095 |
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Interest receivable |
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7,358 |
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15,244 |
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Accounts receivable, net of allowance for doubtful accounts of $85,000 and $79,370, respectively |
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2,021,106 |
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2,388,204 |
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Prepaid expenses and other |
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850,781 |
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434,244 |
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Total current assets |
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17,505,244 |
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20,004,012 |
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Property and equipment: |
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Computer equipment |
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5,592,629 |
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5,536,460 |
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Office equipment |
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517,387 |
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546,857 |
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Leasehold improvements |
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197,500 |
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169,956 |
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Furniture and fixtures |
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504,086 |
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516,059 |
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6,811,602 |
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6,769,332 |
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Less—Accumulated depreciation and amortization |
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(5,015,444 |
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(4,644,588 |
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Net property and equipment |
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1,796,158 |
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2,124,744 |
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Other assets |
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247,519 |
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263,557 |
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Total assets |
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$ |
19,548,921 |
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$ |
22,392,313 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Current portion of capital lease obligations and notes payable |
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$ |
152,601 |
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$ |
248,162 |
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Accounts payable |
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292,554 |
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524,504 |
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Accrued expenses |
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1,271,364 |
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965,738 |
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Deferred revenues |
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5,080,180 |
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4,061,859 |
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Total current liabilities |
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6,796,699 |
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5,800,263 |
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Capital lease obligations |
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71,347 |
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116,612 |
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Notes payable |
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183,760 |
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215,837 |
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Commitments and contingencies |
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Shareholders’ equity: |
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Preferred stock, no par value, 20,000,000 shares authorized, no shares issued or outstanding |
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— |
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— |
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Common stock, no par value, 100,000,000 shares authorized, 14,731,461 shares issued and 13,291,461 shares outstanding, and; 14,721,461 shares issued and 13,281,461 shares outstanding, respectively |
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60,266,226 |
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60,263,726 |
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Additional paid-in capital |
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4,771,046 |
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4,777,128 |
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Deferred compensation |
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(523,155 |
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(935,281 |
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Accumulated other comprehensive income |
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13,227 |
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24,136 |
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Accumulated deficit |
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(51,084,229 |
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(46,705,442 |
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Subscriptions receivable |
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(46,000 |
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(264,666 |
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Treasury stock, at cost, 1,440,000 shares |
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(900,000 |
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(900,000 |
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Total shareholders’ equity |
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12,497,115 |
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16,259,601 |
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Total liabilities and shareholders’ equity |
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$ |
19,548,921 |
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$ |
22,392,313 |
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The accompanying notes are an integral part of these statements.
CARESCIENCE, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
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For the Three Months Ended |
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For the Six Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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(unaudited) |
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(unaudited) |
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Revenues |
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$ |
3,152,203 |
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$ |
3,536,062 |
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$ |
6,308,745 |
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$ |
6,812,630 |
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Cost of revenues |
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1,574,084 |
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1,668,239 |
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3,183,173 |
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3,388,476 |
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Gross profit |
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1,578,119 |
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1,867,823 |
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3,125,572 |
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3,424,154 |
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Operating expenses: |
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Research and development |
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1,194,438 |
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628,634 |
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2,447,559 |
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1,354,380 |
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Selling, general and administrative |
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2,873,989 |
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2,383,623 |
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5,142,407 |
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4,809,697 |
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Total operating expenses |
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4,068,427 |
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3,012,257 |
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7,589,966 |
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6,164,077 |
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Operating loss |
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(2,490,308 |
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(1,144,434 |
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(4,464,394 |
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(2,739,923 |
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Interest income |
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(30,365 |
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(74,116 |
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(101,832 |
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(182,852 |
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Interest expense |
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5,811 |
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10,438 |
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16,225 |
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21,279 |
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Net loss |
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$ |
(2,465,754 |
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$ |
(1,080,756 |
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$ |
(4,378,787 |
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(2,578,350 |
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Net loss per common share: |
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