SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20459
FORM 10-Q
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QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) |
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FOR THE QUARTER ENDED December 31, 2003 |
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COMMISSION FILE NUMBER 0-20970 |
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VISION-SCIENCES, INC. |
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(Exact name of registrant as specified in its charter) |
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Delaware |
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13-3430173 |
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(State or other jurisdiction of |
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(IRS Employer |
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9 Strathmore Road, Natick, MA |
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01760 |
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(Address of principal executive offices) |
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(Zip Code) |
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(508) 650-9971 |
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(Registrant’s telephone number, including area code) |
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None |
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(Former name, former address, and |
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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 requirement 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 each of the issuer’s classes of common stock, as of December 31, 2003.
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Common Stock, par value of $.01 |
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30,243,028 |
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(Title of Class) |
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(Number of Shares) |
VISION-SCIENCES, INC.
TABLE OF CONTENTS
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures about Market Risk |
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Exhibits |
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2
PART I - FINANCIAL INFORMATION
VISION-SCIENCES, INC. AND SUBSIDIARIES
(Unaudited)
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December 31, |
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March 31, |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
2,236,965 |
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$ |
2,744,143 |
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Marketable securities |
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125,371 |
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125,072 |
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Accounts receivable, net of allowance for doubtful accounts of $71,567 and $77,185, respectively |
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1,249,759 |
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736,711 |
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Inventories |
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1,294,412 |
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1,160,372 |
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Prepaid expenses and deposits |
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86,144 |
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51,113 |
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Total current assets |
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4,992,651 |
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4,817,411 |
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Property and Equipment, at cost: |
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Machinery and equipment |
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3,504,346 |
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3,393,099 |
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Furniture and fixtures |
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212,002 |
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208,934 |
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Leasehold improvements |
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473,411 |
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467,620 |
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4,189,759 |
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4,069,653 |
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Less-Accumulated depreciation and amortization |
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3,681,531 |
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3,529,977 |
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508,228 |
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539,676 |
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Advance to Three BY Ltd |
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267,500 |
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— |
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Other assets, net of accumulated amortization of $45,844 and $41,087, respectively |
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68,336 |
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89,759 |
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Total assets |
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$ |
5,836,715 |
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$ |
5,446,846 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Acceptances payable to a bank |
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$ |
89,642 |
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$ |
10,621 |
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Accounts payable |
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685,598 |
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294,312 |
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Accrued expenses |
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869,325 |
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804,139 |
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Total current liabilities |
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1,644,565 |
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1,109,072 |
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Potential obligations to non-qualified option holders |
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690,917 |
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201,648 |
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Stockholders’ Equity: |
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Common stock, $.01 par value— |
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302,429 |
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295,882 |
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Additional paid-in capital |
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60,570,290 |
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60,082,930 |
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Accumulated deficit |
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(57,371,486 |
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(56,242,686 |
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Total stockholders’ equity |
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3,501,233 |
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4,136,126 |
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Total liabilities and stockholders’ equity |
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$ |
5,836,715 |
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$ |
5,446,846 |
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See accompanying notes to consolidated financial statements.
3
VISION-SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three
Months Ended |
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Nine
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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Net sales |
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$ |
2,717,775 |
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$ |
1,636,788 |
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$ |
6,785,012 |
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$ |
4,883,371 |
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Cost of sales |
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1,826,106 |
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1,289,857 |
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4,333,773 |
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3,654,020 |
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Gross profit |
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891,669 |
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346,931 |
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2,451,239 |
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1,229,351 |
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Selling, general and administrative expenses (1) |
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847,537 |
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766,308 |
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2,655,289 |
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2,349,463 |
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Research and development expenses (1) |
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159,452 |
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128,897 |
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454,785 |
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319,359 |
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Stock-based compensation |
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(132,531 |
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(10,070 |
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502,457 |
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(196,153 |
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Income (loss) from operations |
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17,211 |
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(538,204 |
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(1,161,292 |
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