UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended December 31, 2000
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from __________ to___________
Commission file number 0-5186
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OCG TECHNOLOGY, INC.
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(Exact name of small business issuer as specified in its charter)
DELAWARE 13-2643655
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
56 Harrison Street, New Rochelle, New York 10801
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(Address of principal executive offices)
(914) 576-8457
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(Issuer's telephone number)
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(Former name, address and former fiscal year, if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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. [X] Yes [ ] No
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
Class Shares Outstanding at February 1, 2001
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Common Stock ($.01 par value) 34,793,613 Shares
OCG TECHNOLOGY, INC. AND SUBSIDIARIES
INDEX
PAGE NUMBER
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PART I. - FINANCIAL INFORMATION
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Item 1. Financial Statements
Consolidated Condensed Balance Sheets
December 31, 2000 and June 30, 2000 1
Consolidated Condensed Statements of Loss for
the Three Months and Six Months Ended
December 31, 2000 and 1999 2
Consolidated Condensed Statements of Cash Flows for
the Six Months Ended December 31, 2000 and 1999 3
Notes to Consolidated Condensed Financial Statements 4
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 5
PART II. - OTHER INFORMATION
- ----------------------------
Item 6. Exhibits and Reports on Form 8-K 10
OCG TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
DECEMBER 31, 2000 JUNE 30, 2000
ASSETS (UNAUDITED) (AUDITED)
Current Assets:
Cash $ 62,541 $ 37,829
Accounts receivable 0 7,025
Receivable, Sale of business 0 39,908
Other current assets 2,219 45,304
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Total current assets 64,760 130,066
Property and equipment, net of accumulated depreciation of
($562,298) ($482,020) 57,907 77,656
Capitalized software costs, net of accumulated amortization of
($51,584) ($26,000) 204,254 229,838
Other assets 4,972 4,972
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Total assets $ 331,893 $ 442,532
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 28,428 $ 46,605
Notes Payable 85,000 50,000
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Total current liabilities 113,428 96,605
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Shareholders' equity: (Note 4)
Preferred stock $.10 par value, Series E 10,000 10,000
Common stock $.01 par value 347,936 321,755
Additional paid-in capital 24,617,020 24,391,201
Accumulated Deficit (24,337,991) (23,958,529)
Stock subscriptions receivable (356,000) (356,000)
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280,965 408,427
Less treasury stock, at cost (12,500 shares) (62,500) (62,500)
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Total shareholders' equity 218,465 345,927
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Total liabilities and shareholders' equity $ 331,893 $ 442,532
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See accompanying notes to consolidated condensed financial statements
-1-
OCG TECHNOLOGY, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31,
2000 1999 2000 1999
Revenue:
Sales $ 24,909 $ 25,500 $ 25,730 $ 30,000
---------- ---------- ---------- ----------
Costs and expenses:
Marketing, general and
administrative 43,513 132,295 100,244 287,777
Depreciation and
amortization 25,135 14,625 45,688 29,539
Product development costs 130,922 103,382 259,665 215,379
Interest - net (476) (534) (405) (1,065)
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Total costs and expenses 199,094 249,768 405,192 531,630
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Loss from continuing
operations (174,185) (224,268) (379,462) (501,630)
Profit from discontinued
operations - - - 16,707
Income from sale of business - - - 365,932
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Net profit (loss) $ (174,185) $ (224,268) $ (379,462) $ (118,991)
========== ========== ========== ==========
Weighted average number of
shares outstanding
during the period 32,320,485 30,870,898 33,123,436 30,784,453
========== ========== ========== ==========
Loss per Common Share $(0.01) $(0.01) $(0.01) $(0.01)
========== ========== ========== ==========
See accompanying notes to consolidated condensed financial statements
-2-
OCG TECHNOLOGY, INC. AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED DECEMBER 31,
2000 1999
Cash flows from operating activities:
Net income (loss) $(379,462) $ (501,630)
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Adjustments to reconcile net income (loss)
to net cash used in operating activities:
Depreciation and amortization 45,688 29,539
Issuance of stock and warrants for services 12,000 91,687
Amortization of Black Scholes valuation 0 102,035
Changes in assets and liabilities
(Increase) decrease in receivables 7,025 (122,626)
Decrease in receivables (sale of business) 39,908 0
(Increase) decrease in other current assets 43,086 (11,384)
(Increase) decrease in property and equipment (355) (9,741)
(Increase) decrease in other assets 0 (28,670)
(Decrease) in accounts payable and accrued expenses (18,177) (40,243)
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Total adjustments 129,175 10,597
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Net cash used in operating activities (250,288) (491,033)
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Cash flows from investing activities:
Profit from discontinued operations 0 16,707
Proceeds from sale of business 0 365,932
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0 382,639
Cash flows from financing activities:
Increase in notes payable 35,000 0
Proceeds from sale of common stock 240,000 95,000
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Net cash provided by investing and financing activities 275,000 477,639
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Net increase (decrease) in cash 24,712 (13,394)
Cash, beginning of period 37,829 103,408
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Cash, end of period $ 62,541 $ 90,014
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See accompanying notes to consolidated condensed financial statements
-3-
OCG TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. In the opinion of the Company, (which, together with its
subsidiaries, unless the context otherwise requires, is referred to as
"OCGT"), the accompanying unaudited consolidated condensed financial
statements contain all adjustments (consisting of only normal
recurring adjustments) necessary to present fairly the financial
position as of December 31, 2000 and the results of operations for
the three and six months ended December 31, 2000 and 1999 and the
statements of cash flows for the six months ended December 31, 2000
and 1999. The June 30, 2000 balance sheet has been derived from OCGT's
audited financial statements.
The results of operations for the six months ended December 31,
2000 are not necessarily indicative of the results to be expected for
the full year.
While OCGT believes that the disclosures presented are adequate
to make the information not misleading, it is suggested that these
condensed financial statements be read in conjunction with the
financial statements and the notes thereto included in OCGT's latest
annual report on Form 10-KSB.
The accompanying consolidated financial statements have been
prepared on a going concern basis which contemplates continuity of
operations and realization of assets and liquidation of liabilities in
the ordinary course of business. Because of significant operating
losses, OCGT's ability to continue as a going concern is dependent
upon its ability to obtain sufficient additional financing and,
ultimately, upon future profitable operations. The financial
statements do not include any adjustments relating to the
recoverability and classification of recorded asset amounts or the
amounts and classification of liabilities that might be necessary
should OCGT be unable to continue in existence.
2. Earnings per share is computed using the weighted average number
of shares outstanding during the periods. The effect of warrants
outstanding would be anti-dilutive.
3. Capital Changes:
During the six months ended December 31, 2000, for services
rendered in accord with the terms of a consulting agreement, warrants
were issued to purchase a total of 30,000 shares of OCGT's common
stock at exercise prices ranging between $0.15 to $0.25 per share with
exercise dates of said warrants expiring between July 1, to September
1, 2003. OCGT reflected a total expense of $12,000 for the three month
period ending December 31, 2000.
During the six months ended December 31, 2000, 2,618,056 shares
of OCGT's common stock were sold for $240,000 (average price $0.0917
per share).
OCG TECHNOLOGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
A SUMMARY OF INCREASES (DECREASES) IN THE ITEMS INCLUDED IN
THE CONSOLIDATED STATEMENTS OF LOSS IS SHOWN BELOW:
General
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The following discussion and analysis should be read in conjunction
with the Consolidated Financial Statements and Notes thereto appearing
elsewhere herein. The following discussion contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934 and OCGT intends that such forward-looking statements be
subject to the safe harbors created thereby. These forward-looking
statements include predictions, estimates and other statements that
involve a number of risks and uncertainties. While this outlook
represents OCGT's current judgment on the future direction of the
business, such risks and uncertainties could cause actual results to
differ materially from any future performance suggested herein.
OCGT has experienced recurring losses from operations and has relied
on the sale of equity interests in OCGT to fund its operations. If
necessary, OCGT intends to provide additional working capital through
the sale of equity interests in OCGT. Although, in the past, OCGT has
been able to provide working capital through the sale of equity
interests in OCGT, there can be no assurances that OCGT will succeed
in its efforts, which creates a doubt about its ability to continue as
a going concern. The results of operations for prior periods is based
on OCGT's continuing operations.
Results of Operations
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Total revenues increased $591 and $4,270 for the three and six months
ended December 31, 2000, as compared to the same period for 1999,
primarily as a result of license revenues. The sales of OCGT and PSI
were $3,040 and $22,690 respectively, for the six months ended
December 31, 2000.
Marketing, general and administrative expenses decreased $88,782 and
$205,866 for the three and six months ended December 31, 2000, as
compared to the same period for 1999, primarily as a result of the
reduction in amortization as a result of the completion of the write
off of the capitalized costs.
Liquidity and Capital Resources
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At December 31, 2000, OCGT had a current ratio of .57 to 1 compared to
9.0 to 1 as of December 31,1999. The net loss from operations for the
six months ended December 31, 2000, was $379,462, of which $97,532 or
26% were non-cash charges. OCGT has experienced recurring losses from
operations and has been unable to provide sufficient working capital
from operations and has relied significantly on the sale of equity
interests in OCGT, and the exercise of warrants and loans from
shareholders to fund its operations. OCGT's auditors have included an
explanatory paragraph regarding the ability of OCGT to continue as a
"going concern".
Cash on hand and accounts receivable were $62,541 at December 31,
2000. OCGT also has $356,000 of collateralized demand notes
receivable related to the purchase of OCGT's common stock through the
exercise of warrants. In the past, OCGT's principal means of
overcoming its cash shortfalls from operations was from the sale of
OCGT's common stock. During the six months ended December 31, 2000,
2,618,056 shares of OCGT's common stock were sold for $240,000 ($0.092
per share). Although, in the past, OCGT has been able to provide
working capital through the sale of equity interests in OCGT and
through the exercise of warrants, there can be no assurances that OCGT
will succeed in its efforts.
Disposition of Assets.
- --------------------- On August 2, 1999, pursuant to the terms of
an Asset Purchase Agreement, Mooney-Edwards Enterprises, Inc.("MIS"),
a wholly owned subsidiary of OCGT, sold substantially all of its
assets, as of July 28, 1999, to Medical Manager Southeast, Inc.("MM")
and MM assumed substantially all of the liabilities related to
operations as of July 28, 1999 for a purchase price equal to four-
hundred-two thousand eight-hundred-six dollars ($402,806). PrimeCare
Systems, Inc.(" PSI"), a Delaware corporation, was acquired by OCGT as
of May 16, 1994. PSI owns all right, title and interest in the
PrimeCare(TM) Patient Managment System (the "PrimeCare System(TM),
which is protected by copyrights. (Hereafter "OCGT" shall mean OCGT and/or
PSI as the context requires). The PrimeCare(TM) System is a
patient-physician-staff interactive, computer program that brings
efficiencies to the patient/physician encounter while improving the
standard of care and reducing costs. Patients interact directly with the
PrimeCare(TM) System, during what is usually waiting time. A detailed
patient history is obtained without taking any of the physician's time.
Patients are seated at a computer and answer complaint-specific questions
by using just the number keys to indicate answers that apply to them;
no typing or computer skills are required. The software also has
bilingual capabilities, allowing Spanish-speaking patients to interact
in their preferred language. When the patient questionnaire is completed,
the PrimeCare(TM) System creates a preliminary report for the physician
to review before examining the patient. The preliminary report contains
the patient's current problems, medications and allergies, all positive
and significant negative subjective responses, vital signs and a list of
the diagnostic considerations triggered by the patient's responses. By
freeing up the time physicians would normally have to spend asking
patient history questions and recording responses, the PrimeCare(TM)
System permits physicians to see more patients in less time. The
PrimeCare(TM) System is also easy for the physician to understand and
use . The same simple key stroke process lets the physician document:
his physical findings, his assessment, the treatment plan, the
prescribed medications and select patient education materials. At the
conclusion of the encounter a final report of the visit , patient
educational materials, and prescriptions are printed for the patient.
The principal markets for the PrimeCare(TM) System are
ambulatory/outpatient medical facilities, such as, primary care
physicians, medical clinics and staff health maintenance
organizations.
The PrimeCare(TM) System: standardizes the patient record; assures
consistency in patient care; creates a patient database for clinical
and outcomes research; offers, both local and remote, means for
utilization review and quality assurance audits; improves the quality
of care; increases efficiency and productivity of the physician's
practice; automatically generates a problem list; incorporates patient
care algorithms and clinical practice guidelines; permits, both local
and remote, on-line electronic retrieval of patient record and hard
copy print out with appropriate security controls; enables rapid
access to important patient data for clinical care; contains and
provides patient education, complaint oriented and medication
specific; provides physician reference materials.
The PrimeCare(TM) System requires continual: (1) updates of medical
content; (2) additions and enhancements to expand the scope of the
system; and (3) incorporation of advances in both hardware and
software technology to maintain a "state of the art" system. The
PrimeCare(TM) System utilizes Windows 95/98/NT operating systems and
can use either Microsoft's SQL Server or Interbase as a database. It
also contains an interface which enables the PrimeCare(TM) System to
communicate with other systems used in medical facilities. This
provides a method for these systems to transfer information to the
PrimeCare(TM) System, such as patient demographics and appointment
scheduling. OCGT has also developed an interface to enable the
PrimeCare(TM) System to transfer information (such as billing
information including E&M codes, ICD9 codes and CPT codes) to these
other systems. OCGT has ceased supporting its DOS version of the
PrimeCare(TM) System.
OCGT has also completed other enhancements and features to the
operation of the PrimeCare(TM) System which include: (1) The
addition of voice command recognition capability to enable physicians
to use voice commands instead of keystrokes or mouse clicks to
document normal & abnormal physical findings, the assessment, select
tests, treatment plan, prescriptions, drug interaction checks, patient
education materials to be dispensed and schedule follow-up visits.
(2) As an additional option, a touch screen may be used by the
patient and physician instead of the key board, mouse or voice command
recognition. All keystrokes, mouse clicks or voice commands are
duplicated by the touch screen hardware and software.
The PrimeCare(TM) System has been marketed primarily through the following
business models: (a) recruitment of value added resellers ("VARs")
and authorized dealers; (b) direct sales to large at-risk healthcare
entities; and (c) private labeling opportunities. The type of
distributors sought by OCGT are those who currently sell, install and
service medical office and billing systems to medical facilities. In
addition, exhibiting the PrimeCare(TM) System and CodeComplier(TM) at
selected health care industry conventions is a component of the
marketing and sales program. VARs, who sell, install, and service,
billing systems to medical facilities, have agreed to market the
PrimeCare(TM) System. However, no assurances can be given that OCGT's
marketing plan will succeed.
OCGT markets the PrimeCare(TM) System as a service, on a pay for use
basis, with a maximum charge of $2.00 per patient visit. This charge
per patient visit has been increased from $1.50. This marketing method
eliminates a significant financial commitment to purchase the
software, plus monthly maintenance charges for updates, and ties the
cost directly to use. Physician users have stated that the financial
benefits derived by the physician from use of the PrimeCare(TM) System
exceeds the $2.00 cost per patient visit. According to the American
Medical Association, there are over 650,000 physicians in the U.S.
creating a very large potential market for the System. OCGT estimates
that as many as 250,000 of these physicians could use the PrimeCare(TM)
System routinely.
OCGT has not identified any competitive patient management system
which embodies all the features of the PrimeCare(TM) System. However,
other companies market systems which may have some of the features of
the PrimeCare(TM) System and some companies market medical office
products which perform different functions than those performed by the
PrimeCare(TM) System. To date, market penetration by both PSI and its
competitors has been very small.
OCGT has developed CodeComplier(TM)a software program which computes the
Evaluation and Management billing codes ("E&M code") required by the
Health Care Finance Administration and other third party payors.
Designed to be used in conjunction with the PrimeCare(TM) System,
CodeComplier(TM) takes the guess work out of E&M compliance. As each
item of information is entered into and collected by the PrimeCare(TM)
System during the patient encounter, the CodeComplier(TM) organizes the
data in the proper classification and using the most current HCFA
guidelines, automatically calculates the applicable E&M code with a
detailed audit trail and report. Since the CodeComplier(TM)
automatically calculates the applicable E&M code from data collected
by the PrimeCare(TM) System during the patient encounter, it totally
eliminates the time and effort which would otherwise be required by
physician office personnel to complete this task. The marketing
strategy is to offer the CodeComplier(TM) to medical facilities
interested in the PrimeCare(TM) System. OCGT markets the CodeComplier(TM)
as a service, on a pay for use basis, with a maximum charge of $1.00
per patient visit. This pricing method conforms to OCGT's philosophy
of tying the product's cost directly to its use. OCGT believes that
the saving in labor costs and other financial benefits derived by the
physician from use of the CodeComplier(TM) far exceeds the $1.00 cost
per patient visit. OCGT believes that CodeComplier is very marketable
because it eliminates these problems. However, no assurances can be
given that OCGT's marketing plan will succeed.
Revenue Opportunities.
- ---------------------
OCGT's revenues are primarily derived from marketing the products of
its wholly owned subsidiary, PrimeCare Systems, Inc.(" PSI"), a
Delaware corporation. (Hereafter, "OCGT" shall mean OCGT and/or PSI as
the context requires). OCGT, through PSI, has developed, markets,
updates and expands the PrimeCare(TM) Patient Management System (the
"PrimeCare(TM) System"), PrimeCareOnTheWeb.com, YourOwnHealth.com,
YourOwnDoctor.com and DeniseAustin.com, all of which are protected by
copyrights. All of PSI's Web products, other than DeniseAustin.com,
are centered on parts of the PrimeCare(TM) System.
OCGT believes that the segment of the healthcare market which is
capable of generating the greatest revenues through use of its Web
sites are physicians and their patients. OCGT's Web products provide
significant benefits to physicians, most of which are described above.
In addition, industry sources state that on average, a primary care
physician sees between 25 and 30 patients per day and practices on
average 20 days per month. Assuming 25 patient visits per day, a
primary care physician, practicing 20 days per month, conducts
500 patient visits per month. Thus, the estimated potential annual use
of PrimeCareOnTheWeb(TM) per physician is 6,000 patient visits. This
creates a potentially very large market for our products. We developed
PrimeCareOnTheWeb(TM) to reach this market. Rather than charge the
physician for the product, we provide the service without charge. We
rely on the sale of advertising space to pharmaceutical companies and
other health care related companies to generate revenues. Each page
has been designed with space for seven advertisements or impressions.
PrimeCareOnTheWeb(TM)Questionnaires average 25 pages. Assuming impressions
are sold at the rate of $20 per thousand or $0.02 per impression, revenue
per questionnaire would be $3.50 ($.14 x 25). Assuming that
advertising revenues per completed Questionnaire average $3.50, it is
estimated that each 1,000 medical providers that routinely use
PrimeCareOnTheWeb(TM) on 75% of their patients could result in annual
advertising revenues in excess of $15,000,000 (4,500 patients x $3.50
x 1,000). To reach the physician, we are targeting and will enter into
revenue share agreements with physician groups, clinics, hospitals and
other medical services organizations (collectively, Provider
Organizations") who agree to market OCGT's products to their
physicians.
OCGT's first arrangement of this type was with AAPP, a not for profit
organization of physicians and patients that has two Web sites -
SimpleCare.com and AAPP.net. An additional agreement has been entered
into with AAPP, which provided for OCGT to design and maintain a
system on AAPP's sites to register new Members and for annual
Membership renewals. The system has been completed and is operational.
OCGT is compensated on a per member registered basis.
A more recent agreement was entered into with Hackensack University
Medical Center ("HUMC"), an affiliate of the University of Medicine
and Dentistry of New Jersey/New Jersey Medical School and member of
the University Health System of New Jersey. The agreement provides for
OCGT to link three of it's Web sites, PrimeCareOnTheWeb.com,
YourOwnDoctor.com, and YourOwnHealth.com, into the Medical Center's
Web sites for use by the Medical Center's network of physicians and
their patients. This agreement makes PSI's healthcare software readily
available, via the Internet, to the Medical Center's more than 1,000
healthcare providers and their patients through the integration of
YourOwnDoctor.com into the Medical Center's Web site for physicians,
which gives the physicians access to both PrimeCareOnTheWeb.com and
YourOwnHealth.com. PSI's interactive Questionnaires and Reports give
the physician a comprehensive history of a patient's medical problem
accompanied by a list of diagnostic possibilities. The record is
created without dictation and transcription costs. This saves the
physician considerable time and expense. HUMC believes their
physicians will recognize the healthcare benefits and cost
efficiencies that PrimeCareOnTheWeb.com and YourOwnHealth.com bring to
the physician/patient relationship. The Medical Center will schedule
training seminars for physicians and their staffs which will be
conducted by PSI's personnel. HUMC's ISP for its physicians and
HUMCMD.net are currently being activated and registration to use
PrimeCareOnTheWeb has commenced.
In late December OCGT entered into an agreement with Hospital
Services, Inc, d/b/a Advantage Healthcare Net ("AHN"), www.advantage-
healthcare.net. The agreement provides for three of PSI's Web sites
PrimeCareOnTheWeb.com, YourOwnDoctor.com, and YourOwnHealth.com, to be
linked into AHN's intranet for use by AHN's membership, consisting of
approximately 260 health care provider organizations and their staffs,
and including more than 2,500 physicians. AHN will market to and
encourage use of the PSI sites by their Member organizations. AHN, a
group purchasing organization covering North Dakota, South Dakota,
Minnesota and eastern Montana, is a Strategic Marketing Affiliate of
Salt Lake City-based Intermountain Health Care, (www.IHC.com/Amerinet)
one of three shareholders of AmeriNet ( www.Amerinet-GPO.com ), the
nation's largest membership-based healthcare group purchasing
organization.
OCGT is currently in negotiations with other Provider Organizations,
all of whom provide an Intranet for their physicians.
An article published by the Wharton School of the University of
Pennsylvania titled On the Net, RX-rated beats X-rated stated
"Pharmaceutical companies currently spend $2 billion in direct-to-
consumer advertising. Johnson & Johnson has said it will move 40
percent of its ad budget to the Internet. If everyone moves 40 percent
to the Internet, that's almost $1 billion. This could allow many of
these online health care content sites to continue offering free
information to consumers."
OCGT offers pharmaceutical companies focused advertising. For example,
on Questionnaires dealing with pain, OCGT can display advertisements
for painkillers, anti-inflammatory products, arthritis products, etc.
The advertiser is now reaching potential product users. Additionally,
OCGT's Questionnaires average 25 pages and take from ten to twenty-
five minutes to complete. This provides the pharmaceutical companies
with excellent recognition and exposure.
OCGT believes that marketing the PSI Web sites to physicians will
provide the greatest revenue opportunities for OCGT. However there are
no assurances as to the level of usage that will be attained.
OCGT will also continue to stimulate usage of OCGT's Web Sites through
programs that were previously initiated. OCGT has entered into
agreements with other businesses that desire to use OCGT's content on
their Web Sites. There are several different types of arrangements
that OCGT has entered into.
Business to Business Internet Services Agreements - Under this type of
agreement, OCGT grants a license to a business (the "User") to link to
one or more of OCCT's Web Sites. The User markets OCGT's Web Sites to
its visitors and shares in advertising revenues earned by OCGT from
use of the Sites by the User's visitors.
Business to Business License Agreements - PSI has developed a
dynamically generated Interactive Medical Interview System ("IMIS").
The new IMIS technology allows OCGT to license access to the core
interview engine of PSI's PrimeCare System in a tailored, customized
environment that shares the look and feel of the Licensee's Web
application. This licensed product is configured to enable the
Licensee to include any or all of PrimeCare's unique medical
Questionnaires and Reports, as content on their Web Site without any
of OCGT's third party advertisements. This gives the Licensee access
to the core interview engine of PrimeCare's unique interactive medical
interviews for use within their own system. OCGT retains complete
control of the content and the responsibility of maintaining the
interview delivery system on a server located at OCGT's facility. The
Licensee pays OCGT a setup fee plus an annual license fee.
Advertising Revenue Sharing Agreements - Strategic alliances have been
created to increase the "unique visits" to YourOwnHealth.com to
generate increased advertising revenues. Under these arrangements a
portal or search engine links to YourOwnHealth.com to provide their
visitors with PrimeCare's interactive medical Questionnaires.
Regional Sponsorships - A regional sponsor is generally a hospital
that links to YourOwnHealth.com. When a visitor logs on to
YourOwnHealth.com from a zip code allocated to a Sponsor Hospital,
each page displays the logo and name of the Hospital as the Sponsor.
This type of arrangement affords two possible revenue sources. The
link from the Sponsor's Web Site generates visitors to
YourOwnHealth.com. Additionally, revenues can be generated through
Sponsor fees. However, since we are now offering a share of the
advertising revenues to hospitals for marketing the OCGT Web sites to
their physicians, hospitals may opt to go this route.
OCGT is continuing discussions with other healthcare Web Sites to
arrange linking and cross linking agreements all of which should
increase visits to the OCGT Sites and generate advertising revenues.
In addition, OCGT continues to market the PrimeCare Patient Management
System and the CodeComplier as turnkey systems within a physician's
office.
OCGT believes that it could provide sufficient working capital from
operations through marketing its Internet products, the Window
95/98/NT version of the PrimeCare(TM) System and CodeComplier(TM).
Currently, OCGT has no lines of credit and has no material commitments
for capital expenditures outstanding.
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27. - Financial Data Schedule
(b) Reports on Form 8-K
No Report on Form 8-K was filed during the quarter ended
December 31, 2000.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned duly authorized.
OCG TECHNOLOGY, INC.
BY /s/Edward C. Levine
--------------------
EDWARD C. LEVINE,
PRESIDENT
(PRINCIPAL FINANCIAL OFFICER)
DATED: February 13, 2001