UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý
Quarterly Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the quarterly period ended June 30, 2003
Or
o
Transition Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the transition period from to
Commission file number 0-13093
I.R.S. Employer Identification Number 36-3131704
HYPERFEED TECHNOLOGIES, INC.
(a Delaware Corporation)
300 S. Wacker, Suite 300
Chicago, Illinois 60606
Telephone (312) 913-2800
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.
As of August 13, 2003, the registrant had 3,043,805 shares of $.001 par value common stock outstanding.
HYPERFEED TECHNOLOGIES, INC.
INDEX
2
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
June 30, 2003 and December 31, 2002
|
|
|
June 30, |
|
December 31, |
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||
|
|
|
(Unaudited) |
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(Audited) |
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Assets |
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||
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Current Assets |
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|
|
|
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||
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Cash and cash equivalents |
|
$ |
946,529 |
|
$ |
1,096,711 |
|
|
Accounts receivable, less allowance for doubtful accounts of: 2003: $104,715; 2002: $82,355 |
|
638,759 |
|
700,942 |
|
||
|
Notes receivable, less allowance for doubtful accounts of: 2003: $75,000; 2002: $150,000 |
|
249,571 |
|
199,142 |
|
||
|
Prepaid expenses and other current assets |
|
429,046 |
|
328,128 |
|
||
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Total Current Assets |
|
2,263,905 |
|
2,324,923 |
|
||
|
|
|
|
|
|
|
||
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Property and equipment |
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|
|
|
|
||
|
Computer equipment |
|
2,371,096 |
|
3,345,614 |
|
||
|
Communication equipment |
|
1,359,624 |
|
1,463,954 |
|
||
|
Furniture and fixtures |
|
82,839 |
|
108,947 |
|
||
|
Leasehold improvements |
|
531,809 |
|
531,397 |
|
||
|
|
|
4,345,368 |
|
5,449,912 |
|
||
|
Less: Accumulated depreciation and amortization |
|
(2,896,565 |
) |
(3,762,376 |
) |
||
|
|
|
1,448,803 |
|
1,687,536 |
|
||
|
Notes receivable, less allowance for doubtful accounts of: 2003: $75,000 |
|
99,571 |
|
— |
|
||
|
Intangible assets, net of accumulated
amortization of: |
|
140,000 |
|
170,000 |
|
||
|
Software development costs, net of accumulated
amortization of: |
|
1,913,736 |
|
2,013,703 |
|
||
|
Deposits and other assets |
|
64,614 |
|
99,428 |
|
||
|
Total Assets |
|
$ |
5,930,629 |
|
$ |
6,295,590 |
|
|
|
|
|
|
|
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Liabilities and Stockholders’ Equity |
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|
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|
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Current Liabilities |
|
|
|
|
|
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Note payable |
|
$ |
23,011 |
|
$ |
— |
|
|
Accounts payable |
|
1,314,638 |
|
1,249,350 |
|
||
|
Accrued expenses |
|
318,946 |
|
717,519 |
|
||
|
Accrued restructuring charge |
|
165,884 |
|
405,301 |
|
||
|
Accrued compensation |
|
148,437 |
|
106,576 |
|
||
|
Unearned revenue |
|
1,054,884 |
|
1,173,402 |
|
||
|
Total Current Liabilities |
|
3,025,800 |
|
3,652,148 |
|
||
|
|
|
|
|
|
|
||
|
Note payable, less current portion |
|
44,104 |
|
— |
|
||
|
Deferred rent |
|
289,743 |
|
36,089 |
|
||
|
Unearned revenue, less current portion |
|
17,303 |
|
12,536 |
|
||
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Total Noncurrent Liabilities |
|
351,150 |
|
48,625 |
|
||
|
Total Liabilities |
|
3,376,950 |
|
3,700,773 |
|
||
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|
|
|
|
|
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Stockholders’ Equity |
|
|
|
|
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Common stock, $.001 par value; authorized 50,000,000 shares; issued and outstanding 3,043,805 shares at June 30, 2003 and 2,503,069 shares at December 31, 2002 |
|
3,044 |
|
2,503 |
|
||
|
Additional paid-in capital |
|
46,039,300 |
|
44,585,588 |
|
||
|
Accumulated deficit |
|
(43,488,665 |
) |
(41,993,274 |
) |
||
|
Total Stockholders’ Equity |
|
2,553,679 |
|
2,594,817 |
|
||
|
|
|
|
|
|
|
||
|
Total Liabilities and Stockholders’ Equity |
|
$ |
5,930,629 |
|
$ |
6,295,590 |
|
See Notes to Unaudited Interim Consolidated Financial Statements.
3
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (Unaudited)
|
|
|
For The Three Months Ended |
|
For The Six Months Ended |
|
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|
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2003 |
|
2002 |
|
2003 |
|
2002 |
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||||
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Revenue |
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|
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||||
|
HyperFeed Services |
|
$ |
2,847,394 |
|
$ |
4,183,725 |
|
$ |
5,877,100 |
|
$ |
8,914,021 |
|
|
PCQuote Services |
|
304,480 |
|
371,278 |
|
624,608 |
|
820,025 |
|
||||
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Total Revenue |
|
3,151,874 |
|
4,555,003 |
|
6,501,708 |
|
9,734,046 |
|
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|
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Direct Cost of Services |
|
|
|
|
|
|
|
|
|
||||
|
HyperFeed Services |
|
2,141,994 |
|
2,390,408 |
|
4,285,081 |
|
5,004,416 |
|
||||
|
PCQuote Services |
|
49,490 |
|
477,423 |
|
109,862 |
|
969,988 |
|
||||
|
Total Direct Cost of Services |
|
2,191,484 |
|
2,867,831 |
|
4,394,943 |
|
5,974,404 |
|
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|
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|
Gross Margin |
|
960,390 |
|
1,687,172 |
|
2,106,765 |
|
3,759,642 |
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