FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2004
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 0-28290
AKSYS, LTD.
(Exact name of registrant as specified in its charter)
|
Delaware |
|
36-3890205 |
|
(State of Incorporation) |
|
(I. R. S.
Employer |
|
|
|
|
|
Two Marriott Drive, Lincolnshire, Illinois |
|
60069 |
|
(Address of principal executive offices) |
|
(Zip Code) |
|
|
|
|
|
Registrant’s telephone number: 847-229-2020 |
||
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 twelve months, and (2) has been subject to such filing requirements for the past 90 days. YES ý NO
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). YES ý NO
The number of shares of Common Stock, $.01 Par Value, outstanding as of May 3, 2004 was 29,813,919.
AKSYS, LTD.
FORM 10-Q
For the Quarterly Period Ended March 31, 2004
TABLE OF CONTENTS
|
|
Page |
|
|
PART 1 – FINANCIAL INFORMATION |
|
|
|
|
|
|
|
Item 1. |
Consolidated Financial Statements |
|
|
|
|
|
|
|
Consolidated
Balance Sheets as of March 31, 2004 (Unaudited) |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
Management’s
Discussion and Analysis of Financial |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
2
AKSYS, LTD. AND SUBSIDIARIES
|
|
|
March 31, |
|
December
31, |
|
||
|
|
|
(unaudited) |
|
|
|
||
|
Assets |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
46,057,778 |
|
$ |
15,397,453 |
|
|
Short-term investments |
|
— |
|
4,777,644 |
|
||
|
Accounts receivable, less allowance for doubtful accounts of $14,739 at March 31, 2004 and December 31, 2003 |
|
301,047 |
|
338,432 |
|
||
|
Other receivables |
|
29,347 |
|
5,076 |
|
||
|
Inventories |
|
7,508,711 |
|
5,995,438 |
|
||
|
Prepaid expenses |
|
675,820 |
|
101,614 |
|
||
|
Deposits with vendors |
|
1,873,354 |
|
109,541 |
|
||
|
Total current assets |
|
56,446,057 |
|
26,725,198 |
|
||
|
|
|
|
|
|
|
||
|
Long-term investments |
|
600,000 |
|
600,000 |
|
||
|
Leased assets, net |
|
1,552,441 |
|
1,132,533 |
|
||
|
Property and equipment, net |
|
1,266,274 |
|
1,139,774 |
|
||
|
Other assets |
|
36,464 |
|
40,646 |
|
||
|
|
|
$ |
59,901,236 |
|
$ |
29,638,151 |
|
|
|
|
|
|
|
|
||
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
3,832,642 |
|
$ |
4,940,329 |
|
|
Accrued liabilities |
|
672,032 |
|
1,298,008 |
|
||
|
Deferred revenue |
|
185,140 |
|
65,813 |
|
||
|
Other liabilities |
|
43,834 |
|
28,686 |
|
||
|
|
|
|
|
|
|
||
|
Total current liabilities |
|
4,733,648 |
|
6,332,836 |
|
||
|
|
|
|
|
|
|
||
|
Other long-term liabilities |
|
181,440 |
|
177,253 |
|
||
|
Notes payable |
|
12,656,285 |
|
— |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities |
|
17,571,373 |
|
6,510,089 |
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ equity: |
|
|
|
|
|
||
|
Preferred stock, par value $.01 per share, 1,000,000 shares authorized, 0 shares issued and outstanding at March 31, 2004 and December 31, 2003 |
|
— |
|
— |
|
||
|
Common stock, par value $.01 per share, 50,000,000 shares authorized, 29,806,475 and 29,800,904 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively |
|
298,065 |
|
298,009 |
|
||
|
Additional paid-in capital |
|
177,781,132 |
|
151,738,776 |
|
||
|
Accumulated other comprehensive income |
|
18,692 |
|
20,277 |
|
||
|
Accumulated deficit |
|
(135,768,026 |
) |
(128,929,000 |
) |
||
|
|
|
|
|
|
|
||
|
Total stockholders’ equity |
|
42,329,863 |
|
23,128,062 |
|
||
|
|
|
|
|
|
|
||
|
|
|
$ |
59,901,236 |
|
$ |
29,638,151 |
|
See accompanying notes to consolidated financial statements.
3
AKSYS, LTD. AND SUBSIDIARIES
Consolidated Statements of Operations
For the three-month periods ended March 31, 2004 and 2003
(Unaudited)
|
|
|
Three-month
periods ended |
|
||||
|
|
|
2004 |
|
2003 |
|
||
|
Revenue: |
|
|
|
|
|
||
|
Product |
|
$ |
489,811 |
|
$ |
81,848 |
|
|
Service and supplies |
|
192,172 |
|
20,973 |
|
||
|
|
|
|
|
|
|
||
|
Total revenue |
|
681,983 |
|
102,821 |
|
||
|
|
|
|
|
|
|
||
|
Cost of sales: |
|
|
|
|
|
||
|
Product |
|
1,341,247 |
|
863,575 |
|
||
|
Service and supplies |
|
1,157,588 |
|
517,622 |
|
||
|
|
|
|
|
|
|
||
|
Total cost of sales |
|
2,498,835 |
|
1,381,197 |
|
||
|
|
|
|
|
|
|
||
|
Operating expenses: |
|
|
|
|
|
||
|
Research and development |
|
1,661,560 |
|
1,209,481 |
|
||
|
Sales and marketing |
|
1,156,275 |
|
890,606 |
|
||
|
General and administrative |
|
2,196,506 |
|
1,364,058 |
|
||
|
|
|
|
|
|
|
||
|
Total operating expenses |
|
5,014,341 |
|
||||