I am still confused with your conclusions. Anyway, I list the discussion of the management. I don't see any revenues came from the issurance of the stocks. If you are right, the management has misled the investors in the news release and quarter report and can be jailed.
November 14, 1997
MEDICAL INDUSTRIES OF AMERICA INC (MIOA)
Quarterly Report (SEC form 10QSB)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS GENERAL During 1996, the Company principally derived its revenues from its mobile cardiac catheterization laboratories. In the first three quarters of 1997, the Company derived revenue from Florida Physicians Internet, Inc., a group practice acquired in January 1997 and its mobile cardiac catheterization laboratories.
COMPARISON OF THE RESULTS OF OPERATIONS FOR NINE MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996 Revenues increased 361% to $4,292,387 for the nine months ended September 30, 1997 from $931,272 for the nine months ended September 30, 1996, principally as a result of the acquisition of FPII in January 1997, and the revenue from the sale of equipment. During the 1st three quarters of 11 1997, FPII recorded revenues of $2,178,211. Revenues from the Company's mobile cardiac catheterization labs increased 41% to $1,314,176 from $931,272 for the nine months ended September 30, 1997 and September 30, 1996, respectively. This increase is primarily due to the Company obtaining contracts that fully utilize two of its mobile labs and the addition of a third mobile lab. Balance of the revenues was from the sale of the mobile lab. Other income for the nine months ended September 30, 1997 consists of a cash legal settlements less $382,240 of direct expenses. Cost of revenues which includes medical supplies, technical salaries and benefits and other expenses directly associated with the Company's services increased to $2,483,118 from $455,606 for the nine months ended September 30, 1997 and 1996, respectively. This increase is due to the acquisition of FPII, the increased use of the mobile labs and the cost of the equipment sold. FPII has a higher cost of services due to the cost of the physicians. As a percentage of revenue, cost of services increased to 58% of revenue from 49% of revenue for the nine months ended September 30, 1997 and 1996, respectively. General and administrative expenses decreased 1% to $1,800,181 for the nine months ended September 30, 1997 compared to $1,816,277 for the nine months ended September 30, 1996. This decrease is primarily due to the reduction in salaries and consulting fees. Interest expense increased to $121,260 for the nine months ended September 30, 1997 as compared to $74,458 for the nine months ended September 30, 1996. This increase is attributable to the Company entering into an accounts receivable financing arrangement . Income from continuing operations increased to $1,454,000 for the nine months ended September 30, 1997 compared to a net loss of $1,884,616 for the nine months ended September 30, 1996 resulting from an increase in the results of operations and other income. Net income for the nine months ended September 30, 1997 was $1,354,235 compared to a loss of $2,868,040 for the nine months ended September 30, 1996. This increase is primarily attributable to an increase in revenue, a decrease in expenses, the acquisition of a profitable practice, a reduction in salaries and consulting fees and other income.
COMPARISON OF THE RESULTS OF OPERATIONS FOR THREE MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996 Revenues increased to $1,189,419 for the three months ended September 30, 1997 from $256,196 for the three months ended September 30, 1996, principally as a result of the acquisition of FPII in January 1997 and the revenue from the mobile catheterization labs. During the 3rd quarter of 1997, FPII recorded revenues of $782,220. Revenues from the Company's mobile cardiac catheterization labs increased 59% to $407,199 from $256,196 for the three months ended September 30, 1997 and 1996, respectively. This increase is primarily due to the Company obtaining contracts that fully utilize two of its mobile labs and the addition of a third mobile lab. Other income for the three months ended September 30, 1997 consists of a cash legal settlements less $117,343 of direct expenses. Cost of revenues, which included medical supplies, technical salaries and benefits and other expenses directly associated with the Company's services increased to $947,623 from $177,702 for the three months ended September 30, 1997 and 1996, respectively. This increase is primarily due to the 12 acquisition of FPII and the increased use of the mobile labs. FPII has a higher cost of services due to the cost of the physicians. As of percentage of revenue, costs of services increased to 80% of revenue from operations from 69% of revenue from operations for the three months ended September 30, 1997 and 1996, respectively. This resulted from the seasonality of the practice during the off season. General and Administrative expenses increased 66% to $707,290 for the three months ended September 30, 1997 compared to $425,993 for the three months ended September 30, 1996. This increase is primarily due to the acquisition of FPII and staffing for the acquisitions expected to be made. Interest expense increased to $25,015 for the three months ended September 30, 1997 as compared to $925 for the three months ended September 30, 1996. This increase is attributable to the company entering into an accounts receivable financing arrangement. Income from continuing operations increased to $600,569 for the three months ended September 30, 1997 compared to a net loss of $335,155 for the three months ended September 30, 1996 resulting from an increase in the results of operations and other income. Net income for the three months ended September 30, 1997 was $596,834 compared to a net loss of $736,436 for the three months ended September 30, 1996. This increase is primarily attributable to an increase in revenue, a decrease in expenses, the acquisition of the medical practice and other income. In September 1997, the Company entered into a settlement agreement with Glick Enterprises, Inc. and certain other investors who had sued the Company in March 1997 claiming in the Supreme Court of the State of New York, County of New York, that the Company had issued an inadequate number of shares in January 1996 when they converted 62,150.5 shares of Series D convertible preferred stock and that the Company was liable under the penalty provisions of the subscription agreement. As part of the settlement, the Company was required to issue 4.7 million unrestricted common shares to Glick and the other investors and Glick and the other investors shall return to the Company 62,120.5 shares of Series D convertible preferred which they still possessed along with a full release. The Company released Glick and the other investors for any claims which the Company had against them with respect to their purchase, sale or trading of the Company's stock. Glick and the other investors paid $1.5 million in cash to the Company as part of their settlement. All Series C and D previously issued by Medical Industries of America, Inc. has now been converted into common stock. The Company had a working capital surplus of $1,776,723 at September 30, 1997 compared to working capital surplus of $1,252,382 at September 30, 1996. 13 |
