UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
May 24, 2002
(Date of Report)
Claimsnet.com inc.
(Exact name of registrant as specified in its charter)
Delaware 001-14665 75-2649230
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
12801 N. Central Expressway, Suite 1515, Dallas, Texas 75243
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(Address of principal executive offices)
(972) 458-1701
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Item 5. Other Events.
On May 22, 2002, the Registrant issued a press release announcing, in
part, the election of Mr. Alfred Dubach to its Board of Directors. A copy of the
press release is attached hereto as Exhibit 99.1.
Item 7. Financial Statements and Exhibits.
(a) Exhibits
99.1 Press Release dated May 22, 2002 related to election of Mr. Alfred
Dubach to Registrant's Board of Directors.
99.2 Press Release dated May 16, 2002 regarding Registrant's first quarter
2002 operating results.
99.3 Script of May 22, 2002 Analyst and Investor Conference Call.
Item 9. Regulation FD Disclosure.
On May 16, 2002, the Registrant issued a press release regarding its
first quarter 2002 operating results, a copy of which is attached hereto as
Exhibit 99.2.
On May 22, 2002, the Registrant held a conference call for analysts and
investors regarding its first quarter 2002 operating results, a copy of the
script for which is attached hereto as Exhibit 99.3.
During the question and answer session at the close of the conference
call for analysts and investors regarding its first quarter 2002 operating
results, the management of the Registrant disclosed the following:
Management commented that Registrant's average revenue per transaction
might change in the next six to eight months and that actual results would be
dependent on a number of factors. For example, an increasing percentage of
claims related to the Registrant's partner agreements would likely cause the
average revenue per transaction to increase, and potential large volume clients
may average less per transaction, but may generate substantially more dollars
per client.
Management reported that volumes on patient statement business have
been relatively flat for several quarters and are likely to remain flat in the
near future because the statement processing service is not being aggressively
marketed at this time.
Management reported that Registrant's agreements with Synertech and
QCSI have an initial term of one year and contain automatic renewal provisions
with 60 day cancellation notice provisions prior to each renewal. The agreements
do not contain guaranteed revenue terms and do contain volume-based transaction
fee revenue terms. Management further reported that the Synertech agreement is
currently generating measurable revenues from the first client and the QCSI
agreement is currently generating minimal revenues from the first client.
Management estimated that it will require additional funding in the
immediate future, as clearly stated in its filings with the Securities and
Exchange Commission, and is taking steps to procure that funding.
Management commented on Registrant's proprietary technology and stated:
i) its technology is completely web-based, versus web-enabled, and was designed
from conception to perform a real-time, two way, streaming transmission between
the submitting computer and the Registrant's servers and to provide a full range
of payer-specific edits to submitting providers, and ii) the system has been
designed with flexibility and custom configuration in mind to support the
strategy of partnering with other organizations who are actively engaged in the
healthcare industry.
Management also commented on the ability to track claims with the
Registrant's technology and stated that a submitting party can completely
monitor the steps in the process performed by the claim editing system, but that
the ability to monitor the claim after it leaves the Registrant's system is very
dependent on the level of information provided back to the Registrant by the
payer to which the claim is being submitted.
Management commented on Registrant's competitors and stated that i) in
the provider market, Registrant competes with a number of companies, including
WebMD, due primarily to the size of its existing client base, and ProxyMed, due
primarily to its active sales and marketing efforts (Management also pointed out
that ProxyMed is a partner of the Registrant); and ii) in the payer market,
competition usually comes from proprietary groups related to the payer or its
primary systems vendors. Management also pointed out that the benefit of the
Registrant's partner relationships with Synertech and QCSI is that it makes the
Registrant a member of the vendor network serving their payers.
Management commented that from time to time Registrant has considered a
name change to remove ".com" from its name, but does not have any immediate
plans to do so at this time.
SIGNATURE
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 hereunto duly authorized.
Dated: May 24, 2002
CLAIMSNET.COM INC.
By: /s/ Paul W. Miller
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Name: Paul W. Miller
Title: President & Chief
Executive Officer