UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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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, 2004 |
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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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Commission file number 0-28701 |
HealthGate Data Corp.
(Exact name of registrant as specified in its charter)
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Delaware |
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04-3220927 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification No.) |
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25 Corporate Drive, Suite 310, Burlington, Massachusetts 01803 |
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(Address of principal executive offices) (Zip Code) |
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Registrant’s telephone number, including area code: (781) 685-4000 |
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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 at least the past 90 days. Yes o No ý
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
The number of shares outstanding of the registrant’s common stock as of July 23, 2004 was 5,482,266.
HealthGate Data Corp.
FORM 10-Q
For the Quarter Ended June 30, 2004
INDEX
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Condensed Consolidated Balance Sheets at June 30, 2004 and December 31, 2003 (unaudited) |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
HEALTHGATE DATA CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
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June 30, 2004 |
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December 31, 2003 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
2,269,191 |
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$ |
3,431,230 |
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Accounts receivable, including receivables from related parties of $32,000 and $0 and net of allowance for doubtful accounts of $2,278 and $1,818 at June 30, 2004 and December 31, 2003 respectively |
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874,165 |
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158,989 |
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Prepaid expenses and other current assets |
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302,539 |
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110,675 |
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Total current assets |
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3,445,895 |
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3,700,894 |
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Fixed assets, net |
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208,635 |
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281,524 |
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Intangible assets, net |
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374,506 |
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546,585 |
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Goodwill |
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231,468 |
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231,468 |
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Other assets |
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318,760 |
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318,613 |
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Total assets |
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$ |
4,579,264 |
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$ |
5,079,084 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
381,125 |
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$ |
375,309 |
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Accrued expenses |
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1,184,525 |
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1,796,181 |
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Deferred revenue |
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2,483,837 |
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2,083,924 |
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Total current liabilities |
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4,049,487 |
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4,255,414 |
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Other long-term liabilities |
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— |
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299,818 |
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Total liabilities |
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4,049,487 |
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4,555,232 |
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Stockholders’ equity: |
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Common stock, $.03 par value; |
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Authorized: 100,000,000 shares Issued and outstanding: 5,482,266 and 5,382,185 shares at June 30, 2004 and December 31, 2003, respectively |
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164,467 |
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161,465 |
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Additional paid in capital |
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99,921,494 |
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99,918,667 |
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Accumulated deficit |
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(99,556,184 |
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(99,556,280 |
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Total stockholders’ equity |
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529,777 |
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523,852 |
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Commitments and contingencies (Notes 4 and 7) |
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— |
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— |
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Total liabilities and stockholders’ equity |
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$ |
4,579,264 |
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$ |
5,079,084 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
3
HEALTHGATE DATA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three
Months |
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Three
Months |
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Six Months |
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Six Months |
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Revenue, including revenue from related parties of $3,600 and $0 for the three months ended June 30, 2004 and 2003, respectively, and $7,300 and $0 for the six months ended June 30, 2004 and 2003, respectively. |
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$ |
1,571,196 |
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$ |
1,538,728 |
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$ |
3,082,857 |
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$ |
2,925,999 |
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Costs and expenses |
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Cost of revenue |
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352,296 |
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605,854 |
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765,111 |
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1,439,768 |
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Research and development |
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358,130 |
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469,257 |
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736,712 |
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977,827 |
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Sales and marketing |
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371,489 |
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277,978 |
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669,338 |
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511,009 |
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General and administrative |
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544,568 |
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738,968 |
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1,159,967 |
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1,618,481 |
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Lease exit costs |
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(112,427 |
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105,861 |
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(112,427 |
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105,861 |
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Total costs and expenses |
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1,514,056 |
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2,197,918 |
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3,218,701 |
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4,652,946 |
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Income/(loss) from operations |
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57,140 |
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(659,190 |
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(135,844 |
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(1,726,947 |
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Interest and other income/(expense), net |
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104,213 |
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108,821 |
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135,940 |
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972,783 |
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Net income/(loss) |
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$ |
161,353 |
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$ |
(550,369 |
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$ |
96 |
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(754,164 |
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Basic net income/(loss) per share |
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$ |
0.03 |
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$ |
(0.11 |
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0.00 |
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$ |
(0.14 |
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