UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
ý QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES
EXCHANGE ACT OF 1934
o TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES
EXCHANGE ACT OF 1934
HealthGate Data Corp.
(Exact name of Small Business Issuer 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) |
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Issuer’s telephone number, including area code: (781) 685-4000 |
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Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act 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
The number of shares outstanding of the registrant’s common stock as of May 3, 2005 was 5,583,660.
Transitional Small Business Disclosure Format (Check one): Yes o No ý
HealthGate Data Corp.
FORM 10-QSB
For the Quarter Ended March 31, 2005
INDEX
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Condensed Consolidated Balance Sheets at March 31, 2005 and December 31, 2004 (unaudited) |
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Notes to Condensed Consolidated Financial Statements (unaudited) |
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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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March 31, 2005 |
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December 31, 2004 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
1,540,446 |
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$ |
1,908,427 |
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Accounts receivable, net of allowance for doubtful accounts of $1,199 and $2,900 at March 31, 2005 and December 31, 2004, respectively |
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708,865 |
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258,347 |
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Prepaid expenses and other current assets |
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586,172 |
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505,229 |
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Total current assets |
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2,835,483 |
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2,672,003 |
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Fixed assets, net |
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102,539 |
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142,448 |
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Intangible assets, net |
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176,620 |
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226,363 |
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Goodwill |
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183,511 |
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183,511 |
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Total assets |
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$ |
3,298,153 |
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$ |
3,224,325 |
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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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$ |
517,566 |
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$ |
201,854 |
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Accrued expenses |
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909,155 |
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905,010 |
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Deferred revenue |
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2,158,659 |
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1,678,344 |
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Current portion of deferred rent liability |
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12,795 |
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25,590 |
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Current portion of deferred gain |
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75,588 |
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75,588 |
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Total current liabilities |
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3,673,763 |
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2,886,386 |
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Other long-term liabilities |
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105,513 |
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124,410 |
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Total liabilities |
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3,779,276 |
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3,010,796 |
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Commitments and contingencies (Notes 4 and 6) |
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— |
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— |
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Stockholders’ equity (deficit): |
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Common
stock, $.03 par value; Issued and outstanding: 5,583,660 and 5,494,766 shares at March 31, 2005 and December 31, 2004, respectively |
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167,509 |
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164,842 |
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Additional paid in capital |
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99,928,363 |
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99,921,807 |
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Accumulated deficit |
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(100,576,995 |
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(99,873,120 |
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Total stockholders’ equity (deficit) |
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(481,123 |
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213,529 |
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Total liabilities and stockholders’ equity (deficit) |
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$ |
3,298,153 |
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$ |
3,224,325 |
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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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Revenue, including revenue from related parties of of $3,000 and $3,750 for the three months ended March 31, 2005 and 2004, respectively. |
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$ |
1,210,327 |
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$ |
1,511,661 |
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Costs and expenses: |
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Cost of revenue |
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356,318 |
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412,814 |
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Research and development |
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642,097 |
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378,582 |
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Sales and marketing |
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320,836 |
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297,850 |
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General and administrative |
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592,231 |
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615,400 |
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Lease exit costs |
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32,162 |
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— |
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Total costs and expenses |
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1,943,644 |
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1,704,646 |
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Loss from operations |
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(733,317 |
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(192,985 |
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Interest and other income, net |
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29,442 |
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31,727 |
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Net loss |
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$ |
(703,875 |
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(161,258 |
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Basic and diluted net loss per share |
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$ |
(0.13 |
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(0.03 |
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Shares used in computing basic and diluted net loss per share |
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5,538,812 |
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5,416,596 |
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The accompanying notes are an integral part of these condensed consolidated financial statements.
4
HEALTHGATE DATA CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
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Three Months Ended |
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Three Months Ended |
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Cash flows from operating activities: |
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Net loss |
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$ |
(703,875 |
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(161,258 |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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117,170 |
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185,938 |
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Gain recognized on sale of TNP to EBSCO |
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(18,897 |
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Changes in assets and liabilities: |
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Accounts receivable |
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(450,518 |
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(715,503 |
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