They filed :
Form 10QSB for ADVANCED HEALTHCARE TECHNOLOGIES INC
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3-Sep-2003
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7
Part II None
Signatures 10
Advanced Healthcare Technologies, Inc.
(A Development Stage Company)
Balance Sheet
June 30, 2003
(Unaudited)
ASSETS
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Current assets: 2003
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Cash $ 93
Advances to affiliated company 5,380
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Total current assets 5,473
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$ 5,473
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STOCKHOLDERS' EQUITY
Current liabilities: Note payable $ 37,500 Accrued expenses 37,523
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Total current liabilities 75,023
Loans from shareholders 693,964
Stockholders' equity: Preferred stock, $.01 par value, 10,000,000 shares authorized, no shares issued and outstanding -
Common stock, $.001 par value,- 100,000,000 shares authorized, 20,512,625 shares issued and outstanding 20,513 Additional paid in capital 1,528,819 (Deficit) accumulated during development stage (2,312,846)
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(763,514)
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$ 5,473
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See accompanying notes to financial statements.
Advanced Healthcare Technologies, Inc.
(A Development Stage Company)
Statements of Operations
Three Months Ended June 30, 2003 and 2002
For the Period From Inception (March 28, 2000) to June 30, 2003
(Unaudited)
Period From
Three Months Ended Inception To
June 30, June 30,
2003 2002 2003
---------- ---------- ----------
Revenue:
Loan processing fees $ - $ 1,100 $ 4,350
Interest income - 1,065 3,302
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- 2,165 7,652
Operating expenses:
Loan processing costs - 500 7,050
Professional fees 3,000 1,275 90,526
Consulting services 246,609 - 956,490
Web site design expenses 92 - 23,592
Investor relations costs 6,829 - 659,589
Rent 1,600 475 13,275
Purchased research & development - - 525,000
Other expenses 22,798 830 44,976
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280,928 3,080 2,320,498
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(Loss from operations) and
net (loss) $ (280,928) $ (915) $(2,312,846)
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Per share information: Basic and diluted (loss)
per common share $ (0.02) $ (0.00) $ (0.18)
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Weighted average shares
outstanding 18,645,958 12,507,000 12,846,971
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See accompanying notes to financial statements.
Advanced Healthcare Technologies, Inc.
(A Development Stage Company)
Statements of Cash Flows
Three Months Ended June 30, 2003 and 2002
For the Period From Inception (March 28, 2000) to June 30, 2003
(Unaudited)
Period From
Three Months Ended Inception To
June 30, June 30,
2003 2002 2003
---------- ---------- ----------
Net income (loss) $ (280,928) $ (915) $(2,312,846)
Adjustments to reconcile net income to net
cash provided by operating activities:
Services provided for common stock 215,282 - 771,182
Technology acquired for common stock - 525,000
Expenses contributed to capital by
shareholder - - - 8,500
Services provided for shareholder advances 41,204 693,964
Changes in assets and liabilities:
Increase (decrease) in accounts payable (8,672) 1,250 -
Increase (decrease) in accrued espenses (32,477) - 37,523
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Total adjustments 215,337 1,250 2,036,169
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Net cash provided by (used in)
operating activities (65,591) 335 (276,677)
Cash flows from financing activities:
Common stock sold for cash - - 253,150
Proceeds from note payable 25,000 - 37,500
Repayment of related party loans - - (70,325)
Advances to affiliated company - (20,000) (55,380)
Repayment of advances to affiliated company 28,000 - 50,000
Loans from related party - - 61,825
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Net cash provided by (used in)
financing activities 53,000 (20,000) 276,770
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Increase (decrease) in cash (12,591) (19,665) 93
Cash and cash equivalents,
beginning of period 12,684 143,114 -
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Cash and cash equivalents,
end of period $ 93 $ 123,449 $ 93
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See accompanying notes to financial statements.
Advanced Healthcare Technologies, Inc.
Notes to Unaudited Financial Statements
Basis of presentation
The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions incorporated in Regulation SB of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments and accruals) considered necessary for a fair presentation have been included.
The results of operations for the periods presented are not necessarily indicative of the results to be expected for the full year. The accompanying financial statements should be read in conjunction with the Company's financial statements for the year ended March 31, 2003.
Basic loss per share was computed using the weighted average number of common shares outstanding.
The Company had an outstanding advance balance due to shareholders of $699,786 at June 30, 2003.
During the quarter ended June 30, 2003 the Company issued 4,305,625 shares of its common stock for services provided. The shares were valued at $.05 per share, which represents the fair value of the stock and is based on quoted market prices for the stock on the date the issuances were approved. Two million of the shares issued were to two individuals who are no longer affiliated with the Company and who did not, in the opinion of the Company, provide the services agreed to with the Company. The Company is attempting to recover the shares.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Trends and Uncertainties. Demand for Advanced Healthcare products and services will be dependent on, among other things, market acceptance of the Advanced Healthcare's concept, the quality of its services, and general economic conditions, which are cyclical in nature. Inasmuch as a major portion of Advanced Healthcare's activities will be the receipt of revenues from our services, Advanced Healthcare's business operations may be adversely affected by Advanced Healthcare's competitors and prolonged recessionary periods.
Capital and Source of Liquidity. All of the initial working capital has been obtained from the sale of common shares to the current officers, directors and principal shareholder and advances from shareholders of ($699,786) as of June 30, 2003. We do not have the liquidity to fund our operations and will require additional capital. We currently have little working capital and will rely on further loans to continue operations until completion of the current public offering. Advanced Healthcare's requires these additional loans to expand our current and strategic business plans. We do not have any funding arrangements with any third party or any affiliates.
For the three months end June 30, 2003, we received the proceeds from a note payable of $25,000 and proceeds from the repayment of advances to an affiliated company of $28,000. As a result, net cash provided by financing activities was $53,000 for the three months ended June 30, 2003.
For the three months ended June 30, 2002, we made advances to an affiliated company of $20,000 resulting in net cash used in financing activities of $20,000.
For the three months ended June 30, 2003 and 2003, we did not pursue any investing activities.
On a long-term basis, liquidity is dependent on continuation and expansion of operation and receipt of revenues, additional infusions of capital, and debt financing. Advanced Healthcare believes that additional capital and debt financing in the short term will allow Advanced Healthcare to increase its marketing and sales efforts and thereafter result in increased revenue and greater liquidity in the long term. However, there can be no assurance that Advanced Healthcare will be able to obtain additional equity or debt financing in the future, if at all.
Results of Operations. Since inception, Advanced Healthcare has not received any significant revenues from operations.
For the three months ended June 30, 2003, we received no revenue. We had a net loss of $280,928 for the three months ended June 30, 2003. Operating expenses for that same period were $280,928 consisting of professional fees of $3,000, consulting services of $246,609, web site expenses of $92, rent of $1,600, investor relations costs of $6,829 and other expenses of $22,798.
For the three months ended June 30, 2003, we received revenue of only $1,100 from loan processing fees and interest income of $1,065. We had a net loss of $915 for the three months ended June 30, 2002. Operating expenses for that same period were $3,080 consisting of loan processing costs of $500, professional fees of $1,275, rent of $475, investor relations costs of $475 and other expenses of $830.
Plan of Operation. Advanced Healthcare is in the development stage and has not conducted any significant operations to date or received significant operating revenues. We will not need to conduct any research and development regarding our business plan.
During the quarter ended June 30, 2003, Advanced Healthcare issued 4,305,625 common shares for services provided. Two million of the common shares issued were to two individuals who are no longer affiliated with Advanced Healthcare and who did not, in the opinion of Advanced Healthcare, provide the services agreed to. Advanced Healthcare is attempting to recover the common shares.
We do not expect to purchase any plant or significant equipment.
Advanced Healthcare may experience problems; delays, expenses, and difficulties sometimes encountered by an enterprise in Advanced Healthcare's stage of development, many of which are beyond Advanced Healthcare's control. These include, but are not limited to, unanticipated problems relating to the development of the system, manufacturing costs, production and marketing problems, additional costs and expenses that may exceed current estimates, and competition.
Controls and Procedures. The Chief Executive Officer and the Chief Financial Officer of the Company have made an evaluation of the disclosure controls and procedures relating to the quarterly report on Form 10QSB for the period ended June 30, 2003 as filed with the Securities and Exchange Commission and have judged such controls and procedures to be effective as of June 30, 2003 (the evaluation date).
There have not been any significant changes in the internal controls of the Company or other factors that could significantly affect internal controls relating to the Company since the evaluation date. |
