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 June 30, 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 1010397
PHYSIOMETRIX, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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77-0248588 |
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(State or other
jurisdiction of |
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(IRS Employer
identification |
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Five Billerica Park, N. Billerica, MA |
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01862-1256 |
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(Address of principal executive offices) |
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(Zip code) |
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(978) 670-2422 |
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(Registrant’s telephone number, including area code) |
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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 requirements for the past 90 days. ITEM 1 - Yes ý No o
ITEM 2 - Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of Exchange Act). Yes o No ý
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.
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Class |
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Outstanding at July 30, 2004 |
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Common Stock, $.001 par value |
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13,654,266 |
PHYSIOMETRIX, INC.
TABLE OF CONTENTS
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PART I |
FINANCIAL INFORMATION |
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Item 1 |
Unaudited Condensed Financial Statements |
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Unaudited Condensed Balance Sheets as of December 31, 2003 and June 30, 2004 |
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Unaudited Condensed Statements of Cash Flows for the Six Months Ended June 30, 2003 and 2004 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
PHYSIOMETRIX, INC.
UNAUDITED CONDENSED BALANCE SHEETS
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December 31 |
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June 30 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
4,099,155 |
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$ |
1,302,607 |
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Short-term investments |
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3,526,894 |
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3,195,811 |
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Accounts receivable, net |
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304,392 |
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710,421 |
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Inventories |
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560,294 |
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234,820 |
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Prepaid expenses |
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101,798 |
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191,675 |
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Total current assets |
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8,592,533 |
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5,635,334 |
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Property, plant and equipment |
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1,360,960 |
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1,394,387 |
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Less allowances for depreciation |
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(1,181,292 |
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(1,245,396 |
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179,668 |
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148,991 |
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Total assets |
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$ |
8,772,201 |
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$ |
5,784,325 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) |
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Current liabilities: |
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Accounts payable |
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$ |
147,762 |
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$ |
182,330 |
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Accrued expenses |
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823,519 |
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502,290 |
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Warrant derivative contract |
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11,342,730 |
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— |
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Total current liabilities |
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12,314,011 |
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684,620 |
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Stockholders’ equity (deficit) |
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Preferred stock: $.001 par value; 10,000,000 shares authorized; none issued and outstanding |
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— |
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— |
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Common stock: $.001 par value; 50,000,000 shares authorized; 13,380,481 shares in 2003 and 13,654,266 shares in 2004 issued and outstanding |
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13,380 |
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13,654 |
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Additional paid-in capital |
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56,098,127 |
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68,405,645 |
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Unrealized gain on available-for-sale securities |
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— |
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(3,743 |
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Accumulated deficit |
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(59,653,317 |
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(63,315,851 |
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Total stockholders’ equity (deficit) |
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(3,541,810 |
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5,099,705 |
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Total liabilities and stockholders’ equity (deficit) |
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$ |
8,772,201 |
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$ |
5,784,325 |
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See accompanying notes
3
PHYSIOMETRIX, INC.
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Three
Months Ended |
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Six Months
Ended |
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2003 |
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2004 |
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2003 |
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2004 |
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Revenues |
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$ |
200,524 |
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$ |
831,123 |
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$ |
439,268 |
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$ |
1,028,317 |
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Cost of products sold |
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331,130 |
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708,965 |
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671,246 |
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1,039,091 |
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Gross profit (deficit) |
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(130,606 |
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122,158 |
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(231,978 |
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(10,774 |
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Costs and expenses: |
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Research and development |
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426,615 |
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404,553 |
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797,424 |
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786,372 |
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Selling, general and administrative |
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743,042 |
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915,195 |
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1,470,573 |
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1,853,406 |
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1,169,657 |
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1,319,748 |
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2,267,997 |
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2,639,778 |
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Operating loss |
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(1,300,263 |
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(1,197,590 |
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(2,499,975 |
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(2,650,552 |
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Other income (expense): |
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Change in fair value of warrant derivative |
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— |
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(1,046,080 |
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Interest income |
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5,834 |
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15,055 |
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16,077 |
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34,098 |
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Net loss |
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$ |
(1,294,429 |
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$ |
(1,182,535 |
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$ |
(2,483,898 |
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(3,662,534 |
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Basic and diluted net loss per common share |
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$ |
(0.15 |
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$ |
(0.09 |
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$ |
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