UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES EXCHANGE ACT OF 1934.
For the Quarterly Period Ended June 30, 2004
Commission File Number 0-18044
PROCYTE CORPORATION
(Exact name of the registrant as specified in its charter)
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Washington |
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91-1307460 |
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(State of incorporation) |
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(I.R.S. Employer Identification No.) |
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8511 154th Avenue N.E., Redmond, WA |
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98052 |
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(Address of principal executive offices) |
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(Zip code) |
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Registrant’s telephone number, including area code: |
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(425) 869-1239 |
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 Exchange Act Rule 12b-2).
Yes o No ý
As of July 31, 2004, there were issued and outstanding 15,807,171 shares of common stock, par value $.01 per share.
ProCyte Corporation
Index
2
Part I - Financial Information
Item 1. Condensed Consolidated Financial Statements (unaudited)
Balance Sheets - as of June 30, 2004 and December 31, 2003 (unaudited)
(in thousands)
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June 30, |
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December 31, |
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ASSETS |
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Current Assets |
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Cash and cash equivalents |
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$ |
5,729 |
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$ |
3,796 |
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Accounts receivable, net of allowance for doubtful accounts |
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1,202 |
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1,336 |
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Inventory |
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2,625 |
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2,942 |
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Prepaid and other |
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217 |
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289 |
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Total current assets |
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9,773 |
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8,363 |
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Property and equipment |
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Equipment |
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325 |
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315 |
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Leasehold improvements |
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3,226 |
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3,520 |
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Less accumulated depreciation and amortization |
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(3,380 |
) |
(3,294 |
) |
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Property and equipment, net |
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171 |
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541 |
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|
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Intangible assets |
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3,205 |
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3,212 |
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Note due from related party, net |
|
781 |
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781 |
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Deferred tax asset |
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7,055 |
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7,068 |
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Other assets |
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38 |
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38 |
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Total Assets |
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$ |
21,023 |
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$ |
20,003 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities |
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Accounts payable, trade |
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$ |
631 |
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$ |
147 |
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Accrued salaries and benefits |
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310 |
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246 |
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Other accrued liabilities |
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195 |
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239 |
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Deferred revenue |
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527 |
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60 |
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Total current liabilities |
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1,663 |
|
692 |
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Other liabilities |
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93 |
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93 |
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Total Liabilities |
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1,756 |
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785 |
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Stockholders’ Equity |
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Common stock and additional paid-in-capital |
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85,440 |
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85,419 |
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Deferred compensation |
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(52 |
) |
(59 |
) |
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Accumulated deficit |
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(66,121 |
) |
(66,142 |
) |
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Stockholders’ Equity |
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19,267 |
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19,218 |
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Total Liabilities and Stockholders’ Equity |
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$ |
21,023 |
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$ |
20,003 |
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See notes to condensed consolidated financial statements
3
Statements of Operations - Three and Six Months Ended June 30, 2004 and 2003 (unaudited)
(in thousands, except per share amounts)
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Three months ended |
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Six months ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Revenues |
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Product sales |
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$ |
3,454 |
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$ |
2,313 |
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$ |
6,315 |
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$ |
5,195 |
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Licenses and royalties |
|
230 |
|
319 |
|
589 |
|
783 |
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Total revenues |
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3,684 |
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2,632 |
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6,904 |
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5,978 |
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Cost of product sales |
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1,157 |
|
619 |
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2,018 |
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1,802 |
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Gross profit |
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2,527 |
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2,013 |
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4,886 |
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4,176 |
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Operating Expenses |
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Marketing and selling |
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1,260 |
|
814 |
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2,458 |
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2,213 |
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Research, general, and administrative |
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1,057 |
|
967 |
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2,148 |
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1,934 |
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Loss on asset impairment |
|
294 |
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— |
|
294 |
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— |
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Total operating expenses |
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2,611 |
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1,781 |
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4,900 |
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4,147 |
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Operating income (loss) |
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(84 |
) |
232 |
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(14 |
) |
29 |
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Interest and other income |
|
43 |
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37 |
|
50 |
|
125 |
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Net income (loss) before tax |
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(41 |
) |
269 |
|
36 |
|
154 |
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Provision (benefit) for income tax |
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(12 |
) |
— |
|
15 |
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