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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
OR
[ ] 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 0-15223
HEMACARE CORPORATION
(Exact name of registrant as specified in its charter)
State or other jurisdiction of I.R.S. Employer I.D.
incorporation or organization: California Number: 95-3280412
4954 Van Nuys Boulevard
Sherman Oaks, California 91403
(Address of principal executive offices) (Zip Code)
___________________
Registrant's telephone number, including area code: (818) 986-3883
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 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: YES X NO ___
As of August 12, 1998, 7,281,120 shares of Common Stock of the
Registrant were issued and outstanding.
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2
INDEX
HEMACARE CORPORATION
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated balance sheets -- June 30, 1998 and December 31, 1997
Consolidated statements of operations -- Three and six months ended
June 30, 1998 and 1997
Consolidated statements of cash flows -- Six months ended
June 30, 1998 and 1997
Notes to consolidated financial statements -- June 30, 1998
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
Item 4. Submission of Matters to a Vote of Security Holders
Item 6. Exhibits
SIGNATURES
3
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
- ------- ---------------------
HEMACARE CORPORATION
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1998 1997
------------ ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents........................... $ 995,000 $ 1,249,000
Marketable securities............................... 576,000 363,000
Accounts receivable, net of allowance for
doubtful accounts - $81,000 (1998 and 1997)....... 1,506,000 1,561,000
Product inventories................................. 33,000 63,000
Supplies............................................ 453,000 341,000
Prepaid expenses.................................... 131,000 123,000
Note receivable from officer - current.............. 24,000 24,000
------------- -------------
Total current assets........................... $ 3,718,000 $ 3,724,000
Plant and equipment, net of accumulated
depreciation and amortization of
$1,766,000 (1998) and $1,690,000 (1997)............. 513,000 585,000
Note receivable from officer - non-current............ 57,000 65,000
Other assets.......................................... 10,000 10,000
------------- -------------
$ 4,298,000 $ 4,384,000
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable.................................... $ 507,000 $ 659,000
Accrued payroll and payroll taxes................... 470,000 493,000
Other accrued expenses.............................. 403,000 366,000
Current obligations under capital leases............ 134,000 140,000
Reserve for discontinued operations - current....... 116,000 115,000
------------- -------------
Total current liabilities..................... 1,630,000 1,773,000
Obligations under capital leases, net
of current portion.................................. 152,000 209,000
Commitments and contingencies.........................
Shareholders' equity:
Common stock, without par value -
20,000,000 shares authorized,
7,281,120 issued and outstanding in 1998
and 7,190,710 in 1997............................. 13,563,000 13,515,000
Accumulated deficit................................. (11,047,000) (11,113,000)
------------- -------------
Total shareholders' equity............................ 2,516,000 2,402,000
------------- -------------
$ 4,298,000 $ 4,384,000
============= =============
The accompanying notes are an integral
part of these consolidated financial statements.
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HEMACARE CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended June 30, Six months ended June 30,
1998 1997 1998 1997
------------ ------------ ------------ ------------
Revenues:
Blood management programs.... $ 852,000 $ 1,111,000 $ 1,703,000 $ 2,183,000
Regional operations
Blood products............. 677,000 626,000 1,259,000 1,344,000
Blood services............. 1,314,000 1,034,000 2,799,000 2,068,000
------------- ------------ ------------- -------------
Total revenue............. 2,843,000 2,771,000 5,761,000 5,595,000
Operating costs and expenses:
Blood management programs.... $ 787,000 $ 1,156,000 $ 1,601,000 $ 2,280,000
Regional operations
Blood products............. 477,000 499,000 946,000 1,025,000
Blood services............. 944,000 750,000 2,062,000 1,435,000
------------- ------------ ------------- -------------
Total operating costs and
expenses................ 2,208,000 2,405,000 4,609,000 4,740,000
------------- ------------ ------------- -------------
Operating profit........... 635,000 366,000 1,152,000 855,000
General and administrative
expense...................... 585,000 457,000 1,086,000 975,000
Income (loss) from continuing
operations before income
taxes........................ 50,000 (91,000) 66,000 (120,000)
Provision for income taxes...... - - - -
Discontinued operations:
Gain on disposal of dis-
continued operations....... - - - 120,000
------------- ------------ ------------- -------------
Net income (loss)............ $ 50,000 $ (91,000) $ 66,000 $ -
============= ============ ============= ==============
Basic and diluted per share
amounts:
Income (loss) from continuing
operations................. $ 0.01 $ (0.01) $ 0.01 $ (0.02)
Income from discontinued
operations................. - - - 0.02
------------- ----------- ------------- --------------
$ 0.01 $ (0.01) $ 0.01 $ -
============= ============ ============= ==============
Weighted average common shares
used to compute:
Basic income (loss) per
share...................... 7,281,120 7,190,710 7,239,318 7,187,411
============ =========== ============ =============
Diluted income (loss) per
share...................... 7,302,852 7,193,303 7,268,926 7,317,441
============= ============ ============= ==============
The accompanying notes are an integral part of
these consolidated financial statements.
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5
HEMACARE CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended June 30,
1998 1997
------------ ------------
Cash flows from operating activities:
Net income (loss)............................................ $ 66,000 $ -
Adjustments to reconcile net income (loss) to
net cash provided by (used in) operating activities:
Gain on disposal of discontinued operations.............. - (120,000)
Depreciation and amortization............................ 76,000 147,000
Issuance of common stock and options for compensation.... 6,000 -
Changes in operating assets and liabilities:
Decrease in accounts receivable.......................... 55,000 313,000
Increase in inventories, supplies and prepaid expenses... (90,000) (99,000)
Increase (decrease) in accounts payable and other accrued
expenses............................................... (96,000) 197,000
Proceeds from discontinued operations.................... 1,000 98,000
------------ ------------
Net cash provided by operating activities.................... 18,000 536,000
Cash flows from investing activities:
(Increase) decrease in note receivable from related party 8,000 11,000
(Increase) decrease in marketable securities............. (213,000) 223,000
Purchase of plant and equipment, net..................... (4,000) (7,000)
------------ ------------
Net cash provided by (used in) investing activities.......... (209,000) 227,000
Cash flows from financing activities:
Principal payment on line of credit and capital leases... (63,000) (76,000)
------------ ------------
Net cash used in financing activities.................... (63,000) (76,000)
------------ ------------
Increase (decrease) in cash and cash equivalents......... (254,000) 687,000
Cash and cash equivalents at beginning of period......... 1,249,000 1,136,000
------------ ------------
Cash and cash equivalents at end of period............... $ 995,000 $ 1,823,000
============ ============
Supplemental disclosure:
Interest paid............................................ $ 14,000 $ 33,000
============ ============
Items not impacting cash flows:
Increase in capital lease obligations.................... $ - $ 34,000
============ ============
The accompanying notes are an integral part of these
consolidated financial statements.
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6
HemaCare Corporation
Notes to Consolidated Financial Statements
Note 1 - Basis of Presentation and General Information
- ------------------------------------------------------
The accompanying unaudited consolidated financial statements
of HemaCare Corporation (the "Company" or "HemaCare")
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-Q and Rule 10-01 of
Regulation S-X. In the opinion of management, all
adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been
included. Operating results for the three and six months
ended June 30, 1998 are not necessarily indicative of the
results that may be expected for the year ending December
31, 1998. Certain 1998 amounts have been reclassified to
conform to the 1997 presentation. For further information,
refer to the consolidated financial statements and footnotes
thereto included in the Company's Annual Report on Form 10-K
for the year ended December 31, 1997.
In the fourth quarter of 1995, the Company began providing
blood management programs to its customers. A blood
management program ("Blood Management Program" or "BMP")
allows a hospital or affiliated group of hospitals to
outsource many blood-related operations to HemaCare.
HemaCare establishes a local blood donor center for the BMP
hospital and becomes the hospital's primary provider of
blood products and services. HemaCare introduced its Blood
Management Program model at the Gateway Community Blood
Program ("Gateway") in St. Louis, Missouri, in December
1995, and established two Southern California Blood
Management Programs with existing customers in 1996. The
University of Southern California Blood Management Program
commenced in February 1996, and the Citrus Valley Health
Partners Blood Management Program commenced in October 1996.
In August 1997, Gateway's operations were sold, and in July
1998, the Company disposed of the Citrus Valley Blood
Management Program. (See Note 6 below.)
Note 2 - Line of Credit
- ------------------------
Since August 1991, the Company has maintained a line of
credit with a commercial bank secured by its accounts
receivable, inventory and equipment. The credit line is in
effect through May 31, 1999. Under the terms of the credit
line agreement, the Company may borrow up to 70% of eligible
accounts receivable, up to a maximum of $700,000, and must
maintain certain financial ratios. The Company was in
compliance with all covenants of its credit line agreement
at June 30, 1998. Interest on credit line borrowings is at
the lender's prime rate (8.5% at June 30, 1998) plus one-
half of a percentage point. As of June 30, 1998, there was
no balance outstanding under the line of credit.
Note 3 - Commitments and Contingencies
- --------------------------------------
On March 12, 1997, the Company was notified of a lawsuit
filed by an investment banking firm retained by the Company
in connection with the August 1996 private placement of its
common stock, seeking recovery of damages in the amount of
approximately $60,000. In July 1998, this
6
7
suit was settled on terms favorable to the Company. The effect of the
settlement will not have a material effect on the Company's
financial condition or results of operations.
Effective June 1, 1998, the Company entered into an
employment agreement with William D. Nicely, its Chief
Executive Officer. Under the terms of the contract, which
extends though May 31, 2000, the Company will pay Mr. Nicely
an annual base salary of $200,000 and an incentive bonus of
up to 40% of his base salary upon the achievement of
certain financial and other objectives. In addition, the
Company granted Mr. Nicely options to purchase 200,000
shares of the common stock of the Company which vest over a
five-year period.
Note 4 - Related Party Information
- -----------------------------------
In 1995 and 1994, the Company made a series of personal
loans to Dr. Joshua Levy, then an officer and director of
the Company totaling $98,000. In January 1996, these
individual notes were consolidated into a promissory note,
collateralized by HemaCare stock owned by Dr. Levy, which
accrued interest at a rate equal to the rate paid by the
Company under its line of credit. In accordance with this
terms of this note, the Company received installment
payments of $15,000 in January 1996 and January 1997.
Effective July 31, 1997, the Company entered into an
agreement with Dr. Levy that superseded the 1996 note. Under
the terms of this agreement, the Company agreed to forgive
the remaining balance of Dr. Levy's note, including interest
accrued at a 10% annual rate, over a five-year period so
long as Dr. Levy remains employed by the Company.
Note 5 - Recent Auditing Pronouncement
- --------------------------------------
In June 1997, the Financial Accounting Standards Board
issued SFAS No. 131, "Disclosures About Segments of An
Enterprise and Related Information" (SFAS 131). SFAS 131,
which is effective for years beginning after December 15,
1997, revises the requirements for segment disclosures. The
Company will adopt this standard in the fourth quarter of
1998.
Note 6 - Disposition of Operations
- -----------------------------------
On August 1, 1997, Gateway's operations were sold. The
purchaser assumed liability for certain leases related to
Gateway's operations; purchased Gateway's inventories and
made a $200,000 non-refundable payment against HemaCare's
interest in future Gateway earnings. Cash proceeds from the
sale, net of transaction costs were approximately $255,000.
The Company is entitled to receive a percentage of Gateway's
revenues, as defined, over the five years subsequent to the
date of sale, up to a total maximum of $422,000. An
additional payment of $100,000 is due when Gateway receives
a Food and Drug Administration establishment license.
On July 17, 1998, the Company terminated the Citrus Valley
Blood Services Agreement (the "Agreement") and
discontinued Citrus Valley BMP operations. These actions
were necessitated by the continuing shortage and escalating
price of red blood cells, which comprise the largest portion
of the blood products purchased by the Citrus Valley
hospitals.
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8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
HemaCare's operations include blood management programs ("Blood
Management Programs" or "BMPs") and regional sales of blood
products ("Blood Products") and blood services ("Blood
Services"). A HemaCare Blood Management Program allows a
hospital to outsource its blood procurement and donor center
management operations. The Blood Management Program model was
introduced in late 1995 with the Gateway Community Blood Program
("Gateway") in St. Louis, Missouri. In 1996, two Southern
California BMPs were established. One with the University of
Southern California, in February 1996, and another with Citrus
Valley Health Partners, in October 1996. Gateway's operations
were sold in August 1997, and the Citrus Valley Blood Management
Program was disposed of in July of 1998. Blood Products include
apheresis platelets and whole blood components such as red blood
cells and plasma products. Blood Services include therapeutic
apheresis procedures, stem cell collection and cryopreservation
and donor testing.
All comparisons within the following discussions are to the
comparable periods of the previous year.
Revenues and Operating Profit
- -----------------------------
Total revenues increased 3% in the three-month and six-month
periods of 1998. The increases resulted from higher Blood
Services revenues in both periods, offset by lower BMP revenue in
the three-month period and lower BMP and Blood Products revenue
in the six-month period. The Company's operating profit as a
percentage of revenues ("profit margin") increased to 22% in the
second quarter of 1998 from 13% in the comparable quarter of 1997
and to 20% for the first half of 1998 from 15% in the first half
of 1997. The increases in both periods were due to elimination of
losses associated with Gateway, and in the second quarter, an
increase in the profit margin on Blood Products sales.
Blood Management Programs
The 1998 three-month ($259,000) and six-month ($480,000)
decreases in BMP revenues were due primarily to the sale of
Gateway in August 1997. Program profit margins increased by 12%
in the three-month period and by 10% in the six-month period, as
a result of the sale of Gateway, partially offset by a lower
Citrus Valley BMP profit margin.
Throughout 1997 and continuing into the second quarter of 1998,
red blood cells became increasingly more expensive and
progressively more difficult to obtain. Red blood cells compose
the largest portion of the blood products required by the Citrus
Valley Hospitals. As a result of the cost and unavailability of
red blood cells, the Company informed Citrus Valley Health
Partners that it would no longer be able to meet its obligations
under the terms of the Citrus Valley Blood Services Agreement
(the "Agreement"). In July 1998, the Agreement was terminated,
and Citrus Valley BMP operations were discontinued. Disposition
of the Citrus Valley Blood Management Program is not expected to
have a material effect on the Company's results of operations or
financial condition.
8
9
Regional Operations
Blood Products
- --------------
Blood Products revenues increased $51,000 (8%) in the second
quarter and decreased $85,000 (6%) in the first half of 1998. The
three-month increase was due to a higher volume of apheresis
platelet sales, partially offset by a lower volume of whole blood
component sales. The six-month revenue decrease was due to lower
sales volumes for whole blood components only partially offset by
increased apheresis platelet sales volumes. In both periods, the
increase in apheresis platelet sales volume was due to higher
demand from existing customers as well as the acquisition of new
customers, while whole blood component sales volumes decreased
primarily due to a shortage of red blood cells available for
sale.
The profit margin on Blood Products revenues increased to 30%
from 20% in the second quarter and to 25% from 24% in the first
half of 1998. The second quarter increase resulted from a lower
average, per unit cost of sales, partially offset by a lower,
average per unit sales price.
Blood Services
- --------------
Blood Services revenues increased 27% ($280,000) and 35%
($731,000) in the three-month and six-month periods of 1998,
respectively. Approximately 44% of the three-month increase and
34% of the six-month increase was due to sales of albumin, a
protein replacement fluid, to non-hospital customers. The
remaining increases resulted from a higher demand for therapeutic
procedures from existing customers. In addition, the average
price charged for a therapeutic procedure increased in both 1998
periods, in response to higher albumin acquisition costs.
However, the price increase did not entirely offset the higher
albumin cost.
The profit margin on Blood Services revenues increased to 28%
from 27% in the second quarter and decreased to 26% from 31% in
the first half of 1998. The second quarter increase was due
primarily to an easing of albumin costs, while the first half
decrease was due to higher albumin costs.
General and Administrative Expense
- ----------------------------------
General and administrative expense increased 22% ($128,000) for
the three-month period and 11% ($111,000) for the six-month
period of 1998. Both increases reflects severance pay associated
with an eliminated position, compensation cost associated with
forgiveness of a related-party loan and higher legal, accounting
and consulting fees. In addition, the 1997 three-month period general
and administrative expense was reduced by a $71,000 recovery of
previously expensed legal fees related to the ARC lawsuit which was
settled in June 1997. The six month increase also reflects compensation
for the Company's new CEO whose employment commenced in June 1998.
Liquidity and Capital Resources
- -------------------------------
At June 30, 1998, the Company had cash and cash equivalents of
$1,571,000 and working capital of $2,088,000. The Company has a
$700,000 line of credit with a commercial bank which is in effect
through May 31, 1999. Under the terms of the credit line
agreement, the Company may borrow up to 70% of eligible accounts
receivable, up to a maximum of $700,000, and must maintain
certain financial
9
10
ratios including working capital, as defined,
of $500,000 and a tangible net worth of not less than $1.75
million. The Company was in compliance with all covenants of its
borrowing agreement at June 30, 1998, and there were no
borrowings outstanding on the line of credit at that date.
The Company's blood products and services businesses, other than
the USC blood donor center (the "Center"), are profitable and
cash flow positive. Center operations are expected to continue to
be unprofitable until a higher level of Center blood collections
can be achieved. The operating losses of the Center reduce the
overall profitability of the USC Blood Management Program to the
Company. The Company has implemented changes intended to increase
the level of Center collections, but there can be no assurance
that the Center will be able to achieve and maintain a breakeven
or profitable level of collections.
The Company's common stock is listed on the Nasdaq Small Cap
Market ("Nasdaq"). In August 1997, Nasdaq adopted NASD
Marketplace Rule 4310(c)(04) (the "Rule") to strengthen both the
quantitative and qualitative listing requirements for issuers.
The Rule, which became effective February 23, 1998, requires
among other things, that issuers listed on the Nasdaq SmallCap
Market maintain a minimum bid price of $1.00. The minimum bid price
of the Company's stock as of August 12, 1998 was less than $1.00.
On February 27, 1998, Nasdaq notified the Company that it was not
in compliance with the minimum bid price requirement. In a letter
dated June 17, 1998, the Company requested an exception to the
minimum bid price listing requirement, citing the actions taken
by the Company to increase it stock price. These actions included
a proposed reverse stock split. On June 29, 1998, the Company's
shareholders approved a proposal authorizing the Company's Board
of Directors to declare a reverse stock split.
On July 28, 1998, the Company was informed that its request for
an exemption had been denied and that the Company was entitled to
request a review of this decision before its stock was delisted.
The request for a review was submitted on August 4, 1998. If the
Company is unable to obtain an exemption from the minimum bid
price listing requirement or achieve compliance with the minimum
bid price requirement, the Company's Board of Directors may
declare a reverse stock split. Although the ultimate effect of a
reverse stock split on the per share price of the Company's
common stock can not be accurately predicted, the Company is
hopeful that the per share price of stock, as quoted on Nasdaq,
will be increased by a reverse stock split. In the event that the
Company's common stock is no longer listed on the Nasdaq SmallCap
Market or a national securities exchange, the liquidity of the
Company's common stock would be adversely affected and the
Company's ability to raise capital may be impaired.
Management is evaluating a number of opportunities to expand the
Company's operations, including implementing outsourcing models
in a variety of healthcare settings, joint ventures and
acquisitions of apheresis-based business. Future HemaCare
outsourcing arrangements will most likely be focused on providing
specialized donation services, apheresis based products and
services, and other technology-based blood therapies. However,
implementing expansion plans may require that the Company obtain
additional financing or partner with other blood product and
service providers. There can be no assurance that the Company
will be successful in implementing its expansion plans or that it
will be able to obtain the funds necessary to finance such
programs.
10
Amendments to the Federal self-referral laws and related
regulations could restrict the Company's ability to provide
therapeutic services to Dr. Levy's patients who are covered by
Medicare or MediCal. However, these regulations are complex, and
the Company requested a clarification of their application to its
business from Health Care Financing Administration ("HCFA") in
early 1996. The Company has not received a response to this
request. In January 1998, new proposed regulations were issued
for comment. The proposed regulations did not address therapeutic
apheresis services, and the Company has requested a revision of
these regulations to provide an exemption for therapeutic
apheresis services similar to the exemption provided for dialysis
services. The comment period for the proposed regulations ended
in early May 1998, and the new regulations will be issued
sometime after that date. In a discussion with the Company's
legal counsel, HCFA personnel expressed a willingness to consider
the arguments put forth in the Company's request for an
exemption. If the new regulations do not provide an exemption
for therapeutic apheresis services, the Company could lose the
revenue from its services to Dr. Levy's Medicare and MediCal
patients (approximately $184,000 in the first half of 1998).
The Company anticipates that cash flow from profitable
operations, borrowing available from its bank line of credit and
its cash and investments on hand will be sufficient to provide
funding for its existing needs during the next twelve months.
Factors Affecting Forward-Looking Information
- ---------------------------------------------
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" from liability for forward-looking statements.
Certain information included in this Form 10-Q and other
materials filed or to be filed by the Company with the Securities
and Exchange Commission (as well as information included in oral
statements or other written statements made or to be made by or
on behalf of the Company) are forward-looking, such as statements
relating to operational and financing plans, competition, the
effects of discontinued operations, demand for the Company's
products and services, and the anticipated outcome of contingent
claims against the Company. Such forward-looking statements
involve important risks and uncertainties, many of which will be
beyond the control of the Company. These risks and uncertainties
could significantly affect anticipated results in the future,
both short-term and long-term, and accordingly, such results may
differ from those expressed in forward-looking statements made by
or on behalf of the Company. These risks and uncertainties
include, but are not limited to, those relating to the ability of
the Company to expand its operations, obtain additional
financing, to achieve profitability in its USC Center, to retain
existing customers, to improve the profitability of the Company's
other operations, to comply with the covenants under its bank
line of credit and retain existing customers and obtain new
customers. Each of these risks and uncertainties as well as
others are discussed in greater detail in the preceding
paragraphs of this Management's Discussion and Analysis of
Financial Condition and Results of Operations and in the
Company's Annual Report on Form 10-K for the year ended December
31, 1997.
11
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
See disclosure in Form 10-K for the year ended December 31, 1997.
Item 4. Submission of Matters to a Vote of Security Holders
a. The Company's Annual Meeting of Shareholders (the
"Meeting") was held on June 29, 1998.
b. The following table shows the tabulation of votes
for all matters put to vote at the Company's
Annual Meeting of Shareholders held June 29, 1998.
Against/ Broker
Matters Put to Vote For Withheld Abstain Non-Votes
-------------------- ---------- ---------- --------- -----------
1. Election of Three Directors
Alan C. Darlington............. 5,703,951 207,179
Charles R. Schwab, Jr.......... 5,704,251 206,879
Julien L. Steffenhagen......... 5,703,951 207,179
2. Proposal to Amend the Company
Company's 1998 Stock Incentive
Plan........................... 2,518,042 383,814 20,449 2,988,825
3. Proposal to Authorize a Reverse
Stock Split.................... 5,122,157 760,987 27,986
4. Ratification of Appointment of
Independent Accountants........ 5,865,433 22,500 23,197
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Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
10.1 Employment agreement between the Registrant
and William D. Nicely dated May 27, 1998.
27 Financial Data Schedule for the Quarter
Ending June 30, 1998.
b. The Company did not file any reports on Form 8-K
during the three months ended June 30, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
Date August 12, 1998 HEMACARE CORPORATION
------------------- (Registrant)
/s/ Sharon C. Kaiser
________________________________
Sharon C. Kaiser, Senior Vice
President, Finance and Chief
Financial Officer
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INDEX TO EXHIBITS
Method of Filing
----------------
10.1 Employment Agreement between the Registrant and
William Nicely, dated May 27, 1998 Filed herewith electronically
27 Financial Data Schedule for the quarter ending
June 30, 1998 Filed herewith electronically
14
E-1