SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Quarterly Period Ended March 31, 2000
--------------
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: 001-14665
CLAIMSNET.COM INC.
(Exact name of registrant as specified in its charter)
Delaware 75-2649230
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
12801 N. Central Expressway, Suite 1515
Dallas, Texas 75243
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: 972-458-1701
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
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. Common Stock, $.001 par value,
7,825,000 shares outstanding as of May 15, 2000.
1
CLAIMSNET.COM INC. AND SUBSIDIARY
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Condensed Consolidated Balance Sheets as of March 31, 2000
(unaudited) and December 31, 1999
Condensed Consolidated Statements of Operations (unaudited) for
the Three Months Ended March 31, 2000 and 1999
Condensed Consolidated Statements of Changes in Stockholders'
Equity for the Year Ended December 31, 1999 and the Three Months
Ended March 31, 2000 (unaudited)
Condensed Consolidated Statements of Cash Flows (unaudited) for
the Three Months Ended March 31, 2000 and 1999
Notes to Condensed Consolidated Financial Statements
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
SIGNATURES
2
PART I. FINANCIAL INFORMATION
ITEM 1: FINANCIAL STATEMENTS
CLAIMSNET.COM INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except per share data)
(Unaudited)
March 31, December 31,
2000 1999(1)
---------- ----------
ASSETS
CURRENT ASSETS:
Cash $ 628 $ 3,021
Marketable securities 1,863 3,832
Accounts receivable, less allowance for
doubtful accounts of $39 and $26, respectively 347 98
Prepaid expenses and other current assets 215 225
---------- ----------
Total current assets 3,053 7,176
EQUIPMENT, FIXTURES AND SOFTWARE
Computer hardware and software 1,649 1,617
Software development costs 1,923 1,923
Furniture and fixtures 133 109
Office equipment 25 25
Leasehold improvements 23 31
---------- ----------
3,753 3,705
Accumulated depreciation and amortization (2,247) (1,983)
---------- ----------
Total equipment, fixtures and software 1,506 1,722
DEFERRED COSTS AND OTHER ASSETS 25 25
ACQUISITION DEPOSIT 2,000 -
---------- ----------
TOTAL $ 6,584 $ 8,923
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 81 $ 489
Accrued expenses and other current liabilities 387 463
---------- ----------
Total current liabilities 468 952
---------- ----------
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value; 4,000 shares
authorized, no shares issued and outstanding
Common stock, $.001 par value; 40,000 shares
authorized; 6,625 shares outstanding as of
March 31, 2000 and December 31, 1999 7 7
Additional capital 24,651 24,572
Accumulated deficit (18,542) (16,608)
---------- ----------
Total stockholders' equity 6,116 7,971
---------- ----------
TOTAL $ 6,584 $ 8,923
========== ==========
(1) The condensed consolidated balance sheet as of December 31, 1999 has
been derived from the audited financial statements at that date.
See notes to condensed consolidated financial statements.
3
CLAIMSNET.COM INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
Three Months Ended
March 31,
------------------------
2000 1999
---------- ----------
REVENUES $ 280 $ 65
Cost of Revenues 590 216
---------- ----------
Gross Loss (310) (151)
---------- ----------
OPERATING EXPENSES:
Research and Development 266 131
Software Amortization 201 168
Selling, General & Administrative 1,258 1,163
---------- ----------
Total operating expenses 1,725 1,462
---------- ----------
LOSS FROM OPERATIONS (2,035) (1,613)
OTHER INCOME (EXPENSE)
Interest expense - (766)
Interest expense - affiliate - (96)
Interest income 101 -
---------- ----------
Total Other Income (Expense) 101 (862)
---------- ----------
NET LOSS $ (1,934) $ (2,475)
---------- ----------
BASIC AND DILUTED NET LOSS PER COMMON SHARE $ (0.29) $ (0.67)
========== ==========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING - BASIC AND DILUTED 6,625 3,669
========== ==========
See notes to condensed consolidated financial statements.
4
CLAIMSNET.COM INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Year Ended December 31, 1999 and Three Months Ended March 31, 2000
(In thousands)
(Unaudited)
Total
Number of Common Additional Accumulated Stockholder's
Shares Stock Capital Deficit Equity
--------- --------- ---------- ----------- -------------
Balances at December 31, 1998 3,625 $ 4 $ 3,882 $ (7,750) $ (3,864)
Issuance of common stock with
Series A 12% Subordinated Notes 125 - 850 - 850
Non-employee stock option grants - - 155 - 155
Issuance of common stock warrants - - 121 - 121
Sale of common stock in initial
public offering 2,875 3 19,512 - 19,515
Amortization of common stock
warrants issued in connection
with development agreement - - 52 - 52
Net loss - - - (8,858) (8,858)
--------- --------- ---------- ----------- -------------
Balances at December 31, 1999 6,625 7 24,572 (16,608) 7,971
--------- --------- ---------- ----------- -------------
Amortization of common stock
warrants issued in connection
with development agreement - - 79 - 79
Net loss - - - (1,934) (1,934)
--------- --------- ---------- ----------- -------------
Balances at March 31, 2000 6,625 $ 7 $ 24,651 $ (18,542) $ 6,116
========= ========= ========== =========== =============
See notes to condensed consolidated financial statements.
5
CLAIMSNET.COM INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended
March 31,
2000 1999
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (1,934) $ (2,475)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation and amortization 342 183
Provision for doubtful accounts 22 -
Amortization of debt discount and deferred
financing costs - 766
Changes in operating assets and liabilities:
Accounts receivable (271) (16)
Prepaid expenses and other current assets 10 (3)
Accounts payable, accrued expenses and
other current liabilities (483) 355
---------- ----------
Net cash used in operating activities (2,314) (1,190)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Sales/(Purchases) of marketable securities 1,968 -
Advance payment on acquisition (2,000) -
Purchases of property and equipment (47) (76)
---------- ----------
Net cash used in investing activities (79) (76)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in line of credit - affiliate - 887
Payments for deferred offering costs - (95)
Issuance of Series A 12% Subordinated Notes - 892
Payment of contingent notes - (125)
---------- ----------
Net cash provided by financing activities - 1,559
---------- ----------
NET INCREASE (DECREASE) IN CASH (2,393) 293
CASH, BEGINNING OF PERIOD 3,021 44
---------- ----------
CASH, END OF PERIOD $ 628 $ 337
========== ==========
6
CLAIMSNET.COM INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Common Stock issued in connection with Series A
12% Subordinated Notes $ - $ 850
========== ==========
Non-employee stock options issued for past services $ - $ 155
========== ==========
Common stock warrants issued for past services $ - $ 121
========== ==========
See notes to condensed consolidated financial statements.
7
CLAIMSNET.COM INC. AND SUBSIDIARY
Notes to Condensed Consolidated Financial Statements
1. BASIS OF PRESENTATION
In the opinion of management, the accompanying condensed consolidated
financial statements include all necessary adjustments (consisting of
normal recurring accruals) and present fairly the financial position of
Claimsnet.com inc. (the "Company") and subsidiary as of March 31, 2000
and the results of its operations and cash flows for the three months
ended March 31, 2000 and 1999, in conformity with generally accepted
accounting principles for interim financial information applied on a
consistent basis. The results of operations for the three months ended
March 31, 2000 are not necessarily indicative of the results to be
expected for the full year.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been omitted. These financial statements
should be read in conjunction with the audited consolidated financial
statements and notes thereto included in the Company's Annual Report on
Form 10-K for the year ended December 31, 1999, as filed with the
Securities and Exchange Commission on March 30, 2000.
During February 1999 the Board of Directors authorized a 1.115385 for 1
split in the common shares of the Company. All shares and per share
amounts have given retroactive effect to this stock split.
2. TRANSACTIONS WITH MCKESSON HBOC, INC.
In October of 1999, the Company entered into a Development and Services
Agreement (the "Agreement") with McKesson HBOC, Inc. (McKesson), whereby
the Company granted McKesson a multi-year, non-exclusive, private label
license for certain of the Company's proprietary technology and has
agreed to manage McKesson's operation of the system on a fully
outsourced basis. The Company will receive development fees, license
fees, subscription fees, and transaction fees pursuant to the agreement.
In connection with the Agreement, the Company issued McKesson a warrant
for the purchase of 819,184 shares of common stock at an exercise price
of $7.00 per share. The warrant is immediately exercisable and can be
exercised at any time through October 27, 2002. The value of the
warrant, which is estimated at approximately $1.7 million using the
Black-Scholes valuation method, is being amortized ratably over the life
of the agreement as a sales discount. Amortization of sales discount of
$79,000 was recorded in the three month period ended March 31, 2000.
5. ACQUISITION OF VHx ASSETS
On April 18, 2000, Claimsnet.com Inc., through its newly formed,
wholly-owned subsidiary, HealthExchange.com, Inc., a Delaware
corporation ("HECOM"), successfully executed an asset purchase agreement
(the "Asset Purchase Agreement") with VHx Company, a Nevada corporation
("VHx"), whereby HECOM acquired properties and assets, the business and
goodwill of VHx, including the HealthExchange.com name and
HealthExchange.com trademarks, related to all VHx products and services
designed to use Internet technology to facilitate and improve
interaction between physicians, health plans, employers and their
members, in exchange for (i) 1,200,000 shares of common stock, par value
$.001 per share, (ii) 13,767 shares of Series A 8% Convertible
Redeemable Preferred Stock , stated value of $725.60 per share, and
13,767 shares of Series B 8% Convertible Redeemable Preferred Stock,
stated value of $725.60 per share, (together with the Series A Preferred
Stock, the "Preferred Stock"), (iii) options to purchase 175,000 shares
of common stock at a price of $8.00 per share, (iv) the assumption of
certain liabilties, and (v) the cancellation of a $2 million advance
owed by VHx to the Company. The Company estimates the total purchase
price to be approximately $32 million.
8
The Preferred Stock is convertible into shares of Common Stock at a
conversion price based upon the market value of the Common Stock at a
specified time provided that the conversion price cannot be less than
$14.00 or greater than $15.00, and provided further that (i) the
convertibility of the Preferred Stock has been approved by the
stockholders of the Company by March 31, 2001 and (ii) the performance
milestone for the relevant series of Preferred Stock has been satisfied
by March 31, 2001. The maximum number of common shares into which the
Preferred Stock may be converted should both of these requirements be
satisfied is 1,427,076 (713,538 for Series A and 713,538 for Series B).
The performance milestone for the Series A Preferred Stock is the
recognition of revenue from 6,000,000 member-months attributable to
assets acquired. The performance milestone for the Series B Preferred
Stock is the existence of 1,000,000 lives covered by the business
operation attributable to assets acquired. In the event that the
performance milestone of any series of Preferred Stock is not satisfied
by March 31, 2001 that series of Preferred Stock will be cancelled. In
the event that the performance milestone for any series of Preferred
Stock is satisfied by such date, but the required approval by the
stockholders of the Company is not obtained by such date, the relevant
series of preferred stock will begin on April 1, 2001 to accrue
cumulative dividends at the rate of 8% per annum and will be redeemed in
equal quarterly installments thereafter for three years out of capital
legally available therefor. The Preferred Stock will be presented as
mezzanine equity outside of stockholders' equity.
9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS FOR THREE MONTHS ENDED MARCH 31, 2000 COMPARED TO THREE
MONTHS ENDED MARCH 31, 1999
REVENUES
Revenues in the three months ended March 31, 2000 were $280,000 compared to
$65,000 in the three months ended March 31, 1999, representing an increase of
331%. Revenues of $131,000 during 2000 are related to percentage completion
recognition of the McKesson/HBOC Development and Services Agreement and revenues
of $149,000 are related to the Company's Internet-based clients. Although the
Company provided Internet-based services during the year-earlier period, there
were minimal related revenues recognized because the Company waived fees as an
introductory promotional offer for its initial clients during the first two
quarters. Revenues for the 2000 period from recurring revenue sources
represented 94% of total revenues and were comprised of $131,000 from long-term
contracts, $105,000 from transaction-based fees and $28,000 from subscription
fees. Other revenues totaled $16,000.
The Company processed 1,254,000 transactions during the three months ended March
31, 2000, compared with 451,000 transactions in the year-earlier quarter, an
increase of 178%. All of the increase was attributable to internal growth in the
number of accounts and healthcare providers subscribing to the Company's
services. The Company had 401 accounts processing transactions for 3,178
providers at March 31, 2000 compared with 253 accounts and 2,045 providers at
March 31, 1999, representing increases of 58% and 55%, respectively.
Transaction-based revenue averaged $0.08 per transaction for the three months
ended March 31, 2000. The Company expects the average revenue per transaction to
increase in future quarters for several reasons. Revenue per transaction for the
676,000 commercial electronic claims averaged $0.02 during the period and will
increase due to payer rebate contracts with volume-based pricing structures.
Revenue per transaction for the 420,000 Medicare and Medicaid claims averaged
$0.06 during the current quarter after implementation of a new pricing
structure, which charges a per transaction fee to a broader group of customers.
Additionally, the Company's agreement with McKesson/HBOC includes a per
transaction processing fee which is greater than the average revenue per
transaction recognized for the quarter ended March 31, 2000. Average revenue per
transaction for the 116,000 paper claims was $0.45 during the quarter.
The Company processed approximately 42,000 patient statements during the quarter
ended March 31, 2000, representing three percent of total transactions during
the period.
10
COST OF REVENUES
Cost of revenues in the three months ended March 31, 2000 was $590,000, compared
with $216,000 in the three months ended March 31, 1999, representing an increase
of 173%. The three components of cost of revenues are data center expenses,
transaction processing expenses, and customer support operation expenses. Data
center expenses were $93,000 for the three months ended March 31, 2000 compared
with $35,000 for 1999, an increase of 166%. Transaction processing expenses were
$76,000 in 2000 compared to $40,000 in the first quarter of 1999, representing
a 90% increase. While these two transaction-based expense categories combined
increased 125%, the number of transactions processed increased 178%. Customer
support operations expense increased by 199% to $421,000 in the first quarter of
2000 from $141,000 in the first quarter of 1999, while the number of accounts
and providers served at the end of each quarter increased 58% and 55%,
respectively.
OPERATING EXPENSES
Research and development expenses were $266,000 in the three months ended March
31, 2000, compared with $131,000 in the three months ended March 31, 1999,
representing an increase of 103%. Research and development expenses are
comprised of personnel costs and related expenses. There were no software
development expenses capitalized during either of the periods. Development
efforts during the current quarter were primarily focused on the McKesson/HBOC
project while the year-earlier efforts were related to continuous incremental
enhancements to the Company's proprietary software system. The McKesson/HBOC
development project is scheduled for completion in the second quarter.
Software amortization expenses increased 20% to $201,000 in the current quarter
from $168,000 in the year-earlier period. These increases reflect additional
amortization for internal use software costs capitalized after March 31, 1999.
Selling, general and administrative expenses were $1,258,000 in the three months
ended March 31, 2000, compared with $1,163,000 in the same period of 1999, an
increase of 8%. The $95,000 period-to-period increase includes a $113,000
increase in sales and marketing expenses which are primarily related to
personnel costs and related expenses. The increase for technology infrastructure
and other administrative expenses was $258,000 primarily due to increases in
personnel costs, office rent, telephone expenses, and outside professional fees.
A one-time charge of $276,000 for the cost of past services related to the grant
of stock options and warrants to non-employees was recorded in the prior year.
OTHER INCOME (EXPENSE)
Interest income of $101,000 was provided in the current quarter from investment
of excess cash in money market instruments and marketable securities. No
interest expense was incurred in the current quarter. Interest expense of
$766,000 recorded in the quarter ended March 31, 1999 included $680,000 related
to amortization of debt discount and $86,000 related to amortization of deferred
financing costs. Intercompany interest expense of $96,000 was also recorded in
the year earlier period.
11
LIQUIDITY AND CAPITAL RESOURCES
Net cash used in operating activities was $2,314,000 in the three months ended
March 31, 2000, compared with $1,190,000 for the year-earlier period, primarily
due to increased selling, general and administrative expenses, as discussed
above. Net cash used in investing activities was $79,000 and $76,000 in the
three months ended March 31, 2000 and 1999. Primary uses consisted of funding a
note receivable, which was converted to acquisition cost in conjunction with the
April 18, 2000 purchase of assets from VHx. Marketable securities were converted
to cash equivalents as they matured, providing sources of investing activities.
No additional cash was required from financing activities in the current
quarter. Net cash provided by financing activities of $1,559,000 for the three
months ended March 31, 1999 included borrowings under the line of credit -
affiliate of $887,000 and proceeds from the issuance of Series A 12%
Subordinated Notes, for which the Company received $892,000 net of cash
financing expenses.
On May 22, 2000 the Company completed a private financing in the amount of
$300,000 with the sale of 100,000 shares of common stock to American Medical
Finance, Inc., a related party and the owner of record of 381,603 shares of
common stock prior to the transaction. Following the transaction, American
Medical Finance, Inc. is the owner of record of 6.2% of the outstanding common
stock of the Company. Bo W. Lycke, the Chairman of the Board, President and
Chief Executive Officer of the Company, Robert H. Brown, Jr., a Director of the
Company, and Ward L. Bensen, a Director of the Company, control 70.1%, 17.7%,
and 11.2%, respectively, of the outstanding common stock of American Medical
Finance, Inc.
The Company is currently seeking an additional private investment of up to
$5,000,000 and is in discussion with a number of potential institutional and
strategic investors. The current market for the Company's stock, and the public
financial market for the sector in general, makes such a financing difficult at
this time, and there can be no assurance that the transaction will be completed
under the currently anticipated terms and timeframe. If the financing is
significantly delayed or if the size of the financing is significantly less than
currently anticipated, it may negatively impact the Company's operations or
ability to expand as rapidly as expected.
On April 18, 2000, the Company, through its newly formed, wholly-owned,
subsidiary HealthExchange.com (HECOM), successfully executed an asset purchase
agreement with VHx Company, whereby HECOM acquired selected assets, the business
and goodwill of VHx, including the HealthExchange.com name and
HealthExchange.com trademarks, related to all VHx products and services designed
to use Internet technology to facilitate and improve interaction between
physicians, health plans, employers and their members in exchange for (i)
1,200,000 shares of common stock, par value $0.001 per share, (ii) 13,767 shares
of Series A 8% Convertible Redeemable Preferred Stock, stated value $725.60 per
share, and 13,767 shares of Series B 8% Convertible Redeemable Preferred Stock,
stated value of $725.60 per share, (iii) options to purchase 175,000 shares of
common stock at a price of $8.00 per share, (iv) the assumption of certain
liabilities, and (v) the cancellation of $2,000,000 of advances owed by VHx to
the Company. The Company estimates the total purchase price to be approximately
$32 million. The purchase price will be adjusted based on the number of shares
of Preferred Stock issued upon the measurement of certain milestones contained
in the agreement. The maximum number of common shares into which the Preferred
Stock may be converted should both of these requirements be satisfied is
1,427,076 (713,538 for Series A and 713,538 for Series B).
In October of 1999, the Company entered into a Development and Services
Agreement (the "Agreement") with McKesson HBOC, Inc. (McKesson), whereby the
Company granted McKesson a multi-year, non-exclusive, private label license for
certain of the Company's proprietary technology and has agreed to manage
McKesson's operation of the system on a fully outsourced basis. The Company has
received development fees of $500,000 through March 31, 2000 and expects to
receive additional development fees of $535,000 as well as license fees,
subscription fees, and transaction fees pursuant to the agreement.
In connection with the Agreement, the Company issued McKesson a warrant for the
purchase of 819,184 shares of common stock at an exercise price of $7.00 per
share. The warrant is immediately exercisable and can be exercised at any time
through October 27, 2002. The value of the warrant, which is estimated at
approximately $1.7 million using the Black-Scholes valuation method, is being
amortized ratably over the life of the agreement as a sales discount.
Amortization of $79,000 was recorded in the current quarter.
12
In April of 1999, the Company completed its IPO issuing 2,875,000 shares of
common stock for proceeds of $19,515,000.
In February, 1999 the Company issued $1,000,000 of Series A 12% Subordinated
Notes along with 125,000 shares of common stock for net proceeds of $892,000
(net of closing fees and cash financing expenses). The Company retired all notes
with the proceeds of its IPO.
The Company believes that the previously mentioned private investment of up to
$5,000,000 will be completed in a timely manner and, when combined with its
current cash reserves and contractual cash inflows, the Company will have
sufficient liquidity to fund operations, capital improvements and the Company's
obligations resulting from the VHx transaction.
YEAR 2000
In late 1999, the Company completed its remediation and testing of its
information systems to become year 2000 ready. The Company has experienced no
significant disruptions in mission critical information technology and
non-information technology systems and believes those systems successfully
responded to the Year 2000 date change. The Company is not aware of any material
problems resulting from Year 2000 issues, either with its products, its internal
systems, or the products and services of third parties. The Company will
continue to monitor its mission critical computer applications and those of its
suppliers and vendors throughout the Year 2000 to insure that any latent Year
2000 matters that may arise are addressed promptly.
RECENT ACCOUNTING PRONOUNCEMENTS
Recent pronouncements of the Financial Accounting Standards Board, which are not
required to be adopted at this date, include SFAS No. 133 "Accounting for
Derivative Instruments and Hedging Activities". This pronouncement is not
expected to have a material impact on the Company's financial statements.
In December of 1999, the SEC staff issued Staff Accounting Bulletin No. 101 (SAB
101). Among other things, SAB 101 requires deferral and amortization of
up-front, non-refundable fees over the term of agreement or expected period of
benefit. The Company does not expect that the adoption of SAB 101 will have a
material impact on its financial statements.
CERTAIN FACTORS THAT MAY AFFECT FUTURE RESULTS
Information contained or incorporated by reference in this periodic report on
Form 10-Q and in other SEC filings by the Company contains "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. Such forward-looking statements are subject to various risks and
uncertainties that could cause actual results to vary materially from those
projected in such forward-looking statements. These risks and
uncertainties are discussed in more detail in the Company's Form 10-K which was
filed with the Securities and Exchange Commission on March 30, 2000. No
assurance can be given that future results covered by the forward-looking
statements will be achieved.
13
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(b) REPORTS:
None.
14
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.
CLAIMSNET.COM INC.
(Registrant)
By: /s/ Bo W. Lycke
-----------------------------
Bo W. Lycke
President and
Chief Executive Officer, on
behalf of the Registrant
By: /s/ Paul W. Miller
-----------------------------
Paul W. Miller
Chief Financial Officer
May 15, 2000
15