FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2004
OR
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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)
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Delaware |
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36-3890205 |
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(State of Incorporation) |
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(I. R. S. Employer |
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Two Marriott Drive, Lincolnshire, Illinois |
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60069 |
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(Address of principal executive offices) |
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(Zip Code) |
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Registrant’s telephone number: 847-229-2020 |
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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 twelve months, 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 Rule 12b-2 of the Exchange Act). YES ý NO o
The number of shares of Common Stock, $.01 Par Value, outstanding as of November 5, 2004 was 29,835,229.
AKSYS, LTD.
FORM 10-Q
For the Quarterly Period Ended September 30, 2004
TABLE OF CONTENTS
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PART 1 – FINANCIAL INFORMATION |
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Item 1. |
Consolidated Financial Statements |
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Consolidated Balance Sheets as of September 30, 2004 (Unaudited) and December 31, 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
AKSYS, LTD. AND SUBSIDIARIES
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September 30, |
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December 31, |
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(unaudited) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
9,930,919 |
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$ |
15,397,453 |
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Short-term investments |
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16,510,089 |
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4,777,644 |
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Restricted short-term investments |
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6,666,666 |
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— |
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Accounts receivable, less allowance for doubtful accounts of $14,739 at September 30, 2004 and December 31, 2003 |
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293,870 |
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338,432 |
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Other receivables |
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120,045 |
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5,076 |
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Inventories |
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6,988,440 |
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5,995,438 |
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Prepaid expenses |
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290,007 |
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101,614 |
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Deposits with vendors |
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3,480,537 |
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109,541 |
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Total current assets |
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44,280,573 |
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26,725,198 |
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Long-term investments |
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10,705,735 |
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— |
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Restricted long-term investments |
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600,000 |
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600,000 |
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Leased assets, net |
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2,132,723 |
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1,132,533 |
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Property and equipment, net |
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1,406,738 |
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1,139,774 |
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Other assets |
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31,076 |
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40,646 |
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Total assets |
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$ |
59,156,845 |
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$ |
29,638,151 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable |
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$ |
1,309,203 |
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$ |
4,940,329 |
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Accrued liabilities |
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2,118,114 |
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1,298,008 |
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Deferred revenue |
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111,119 |
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65,813 |
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Income tax payable |
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105,512 |
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— |
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Short term line of credit |
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3,400,000 |
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— |
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Other current liabilities |
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49,554 |
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28,686 |
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Total current liabilities |
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7,093,502 |
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6,332,836 |
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Other long-term liabilities |
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174,556 |
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177,253 |
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Notes payable |
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13,302,430 |
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— |
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Total liabilities |
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20,570,488 |
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6,510,089 |
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Stockholders’ equity: |
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Preferred stock, par value $.01 per share, 1,000,000 shares authorized, 0 shares issued and outstanding at September 30, 2004 and December 31, 2003 |
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— |
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— |
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Common stock, par value $.01 per share, 50,000,000 shares authorized, 29,824,013 and 29,800,904 shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively |
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298,240 |
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298,009 |
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Additional paid-in capital |
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187,021,974 |
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151,738,776 |
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Accumulated other comprehensive income (loss) |
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(2,319 |
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20,277 |
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Accumulated deficit |
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(148,731,538 |
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(128,929,000 |
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Total stockholders’ equity |
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38,586,357 |
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23,128,062 |
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Total liabilities and stockholders’ equity |
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$ |
59,156,845 |
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$ |
29,638,151 |
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See accompanying notes to consolidated financial statements.
3
AKSYS, LTD. AND SUBSIDIARIES
Consolidated Statements of Operations
For the three- and nine-month periods ended September 30, 2004 and 2003
(Unaudited)
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Three-month periods ended |
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Nine-month periods ended |
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2004 |
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2003 |
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2004 |
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