AXS ONE INC - 10-Q Quarterly Report

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 quarter ended June 30, 2004

Commission File Number

1-13591

AXS-ONE INC.
(Exact name of registrant as specified in its charter)

Delaware		13-2966911
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
301 Route 17 North
Rutherford, New Jersey		07070
(Address of principal executive offices)		(Zip Code)

(201) 935-3400
(Registrant’s telephone number, including area code)

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

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

YES

Number of shares outstanding of the issuer’s common stock as of August 4, 2004

	Class	Number of Shares Outstanding
Common Stock, par value $0.01 per share			28,082,164

AXS-ONE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)

	June 30, 2004			December 31, 2003
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	9,163		$	2,946
Restricted cash		53			56
Accounts receivable, net of allowance for doubtful accounts of $282 and $200 at June 30, 2004 and December 31, 2003, respectively.		7,549			5,541
Due from joint venture		96			107
Prepaid expenses and other current assets .		773			603
Total current assets		17,634			9,253
Equipment and leasehold improvements, at cost:
Computer and office equipment		11,278			11,098
Furniture and fixtures		915			924
Leasehold improvements .		877			873
		13,070			12,895
Less—accumulated depreciation and amortization .		12,658			12,559
		412			336
Capitalized software development costs, net of accumulated amortization of $10,045 and $9,487 at June 30, 2004 and December 31, 2003, respectively		2,348			2,364
Other assets		199			197
		$	20,593		$	12,150
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Current portion of long-term debt.		$	—		$	547
Accounts payable .		1,861			1,737
Accrued expenses .		4,347			3,111
Due to joint venture		62			4
Deferred revenue		10,879			8,946
Total current liabilities		17,149			14,345
Long-term liabilities:
Long-term deferred revenue		915			1,504
Commitments and contingencies
Stockholders’ equity (deficit):
Preferred stock, $.01 par value, authorized 5,000 shares, no shares issued and outstanding		—			—
Common stock, $.01 par value, authorized 50,000 shares; 28,064 and 25,026 shares issued and outstanding at June 30, 2004 and December 31, 2003, respectively		281			250
Additional paid-in capital		80,179			72,148
Accumulated deficit .

			Page Number
PART I	FINANCIAL INFORMATION
	Item 1. Financial Statements
	Consolidated Balance Sheets June 30, 2004 (unaudited) and December 31, 2003		3
	Consolidated Statements of Operations (unaudited) Three and six months ended June 30, 2004 and 2003		4
	Consolidated Statements of Comprehensive Income (Loss) (unaudited) Three and six months ended June 30, 2004 and 2003		5
	Consolidated Statements of Cash Flows (unaudited) Three and six months ended June 30, 2004 and 2003		6
	Notes to Consolidated Interim Financial Statements		7
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
	Item 3. Quantitative and Qualitative Disclosures About Market Risk		29
	Item 4. Controls and Procedures		29
PART II	OTHER INFORMATION
	Item 1. Legal Proceedings		30
	Item 2. Changes in Securities and Use of Proceeds		30
	Item 4. Submission of Matters to a Vote of Security Holders		31
	Item 6. Exhibits and Reports on Form 8-K		31
SIGNATURES
		Signatures	32