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 December 31, 1999
---------------------
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 -0-16061
--------
CRITICARE SYSTEMS, INC.
-----------------------
(Exact name of registrant as specified in its charter)
Delaware 39-1501563
----------------- ----------
(State or other jurisdiction (IRS Employer Identification No.)
of incorporation or organization)
20925 Crossroads Circle, Waukesha, Wisconsin 53186
- ----------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code (414) 798-8282
---------------
N/A
- -------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last
report.
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
--- ----
Number of shares outstanding of each class of the registrant's classes of common
stock as of February 10, 2000: Class A Common Stock 8,736,151 shares.
CRITICARE SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 1999 AND JUNE 30, 1999
(UNAUDITED)
December 31, June 30,
ASSETS 1999 1999
-------------- ------------
CURRENT ASSETS:
Cash and cash equivalents . . . . . . . . . . . . . . . . $ 2,114,468 $ 2,511,078
Accounts receivable . . . . . . . . . . . . . . . . . . . 6,393,348 6,358,487
Other receivables . . . . . . . . . . . . . . . . . . . . 4,261 83,106
Inventory . . . . . . . . . . . . . . . . . . . . . . . . 8,350,562 8,510,975
Prepaid expenses. . . . . . . . . . . . . . . . . . . . . 407,345 192,290
- --------------------------------------------------------- -------------- ------------
Total current assets. . . . . . . . . . . . . . . . . . . 17,269,984 17,665,936
- --------------------------------------------------------- -------------- ------------
PROPERTY, PLANT AND EQUIPMENT - NET . . . . . . . . . . . 6,400,636 6,274,060
- --------------------------------------------------------- -------------- ------------
INVESTMENTS . . . . . . . . . . . . . . . . . . . . . . . - -
- --------------------------------------------------------- -------------- ------------
LICENSE RIGHTS AND PATENTS. . . . . . . . . . . . . . . . 102,991 111,991
- --------------------------------------------------------- -------------- ------------
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,773,611 $24,041,987
- --------------------------------------------------------- -------------- ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable. . . . . . . . . . . . . . . . . . . . . $ 2,484,663 $ 3,078,020
Accrued liabilities:
Compensation and commissions. . . . . . . . . . . . . . 1,130,036 1,446,414
Product warranties. . . . . . . . . . . . . . . . . . . 450,000 325,000
Lawsuit settlement. . . . . . . . . . . . . . . . . . . 300,000 1,600,000
Deferred income . . . . . . . . . . . . . . . . . . . . - 380,000
Other . . . . . . . . . . . . . . . . . . . . . . . . . 344,713 412,395
Current maturities of long-term debt. . . . . . . . . . . 76,279 73,893
- --------------------------------------------------------- -------------- ------------
Total current liabilities . . . . . . . . . . . . . . . . 4,785,691 7,315,922
- --------------------------------------------------------- -------------- ------------
LONG-TERM DEBT, less current maturities . . . . . . . . . 3,325,726 3,364,356
- --------------------------------------------------------- -------------- ------------
OTHER LONG-TERM OBLIGATIONS . . . . . . . . . . . . . . . 571,571 650,000
- --------------------------------------------------------- -------------- ------------
STOCKHOLDERS' EQUITY
Preferred stock . . . . . . . . . . . . . . . . . . . . . - -
Common stock. . . . . . . . . . . . . . . . . . . . . . . 348,246 348,246
Additional paid-in capital. . . . . . . . . . . . . . . . 17,960,363 17,960,363
Common stock held in treasury (103,840 shares) - at cost. (193,430) (193,430)
Retained earnings (accumulated deficit) . . . . . . . . . (3,024,556) (5,403,470)
- --------------------------------------------------------- -------------- ------------
Total stockholders' equity. . . . . . . . . . . . . . . . 15,090,623 12,711,709
- --------------------------------------------------------- -------------- ------------
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . $ 23,773,611 $24,041,987
- --------------------------------------------------------- -------------- ------------
See condensed notes to consolidated financial statements.
2
CRITICARE SYSTEMS, INC.
CONSOLIDATED INCOME STATEMENTS
SIX MONTHS ENDED DECEMBER 31, 1999 AND 1998
(UNAUDITED)
1999 1998
------------ ------------
NET SALES. . . . . . . . . . . . . . . . . . . . . $13,504,036 $14,014,480
COST OF GOODS SOLD . . . . . . . . . . . . . . . . 7,373,259 7,192,945
- -------------------------------------------------- ------------ ------------
GROSS PROFIT . . . . . . . . . . . . . . . . . . . 6,130,777 6,821,535
- -------------------------------------------------- ------------ ------------
OPERATING EXPENSES:
Marketing. . . . . . . . . . . . . . . . . . . . . 3,543,432 4,479,724
Research, development and engineering. . . . . . . 1,564,662 1,488,262
Administrative . . . . . . . . . . . . . . . . . . 1,080,671 1,220,137
Restructuring expenses - severance pay . . . . . . - 728,000
- -------------------------------------------------- ------------ ------------
Total. . . . . . . . . . . . . . . . . . . . . . . 6,188,765 7,916,123
- -------------------------------------------------- ------------ ------------
(LOSS) FROM OPERATIONS . . . . . . . . . . . . . . (57,988) (1,094,588)
- -------------------------------------------------- ------------ ------------
OTHER INCOME (EXPENSE):
Interest expense . . . . . . . . . . . . . . . . . (130,513) (158,251)
Interest income. . . . . . . . . . . . . . . . . . 67,413 36,445
Equity in loss of investments. . . . . . . . . . . - (150,000)
Gain on sale of Immtech International, Inc. stock. 2,500,000 -
- -------------------------------------------------- ------------ ------------
Total. . . . . . . . . . . . . . . . . . . . . . . 2,436,900 (271,806)
- -------------------------------------------------- ------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES. . . . . . . . . 2,378,912 (1,366,394)
- -------------------------------------------------- ------------ ------------
INCOME TAX PROVISION . . . . . . . . . . . . . . . - -
- -------------------------------------------------- ------------ ------------
NET INCOME (LOSS). . . . . . . . . . . . . . . . . $ 2,378,912 $(1,366,394)
- -------------------------------------------------- ------------ ------------
EARNINGS (LOSS) PER COMMON SHARE:
Basic. . . . . . . . . . . . . . . . . . . . . . . $ 0.27 $ (0.16)
Diluted. . . . . . . . . . . . . . . . . . . . . . 0.26 (0.16)
- -------------------------------------------------- ------------ ------------
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING:
Basic. . . . . . . . . . . . . . . . . . . . . . . 8,707,809 8,701,151
Diluted. . . . . . . . . . . . . . . . . . . . . . 9,004,686 8,701,151
- -------------------------------------------------- ------------ ------------
See condensed notes to consolidated financial statements.
3
CRITICARE SYSTEMS, INC.
CONSOLIDATED INCOME STATEMENTS
THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
(UNAUDITED)
1999 1998
----------- -----------
NET SALES. . . . . . . . . . . . . . . . . . . . . $6,900,699 $7,290,056
COST OF GOODS SOLD . . . . . . . . . . . . . . . . 3,758,733 3,727,537
- -------------------------------------------------- ----------- -----------
GROSS PROFIT . . . . . . . . . . . . . . . . . . . 3,141,966 3,562,519
- -------------------------------------------------- ----------- -----------
OPERATING EXPENSES:
Marketing. . . . . . . . . . . . . . . . . . . . . 1,937,053 2,261,542
Research, development and engineering. . . . . . . 853,206 740,702
Administrative . . . . . . . . . . . . . . . . . . 566,670 712,669
Restructuring expense - severance pay. . . . . . . - 728,000
- -------------------------------------------------- ----------- -----------
Total. . . . . . . . . . . . . . . . . . . . . . . 3,356,929 4,442,913
- -------------------------------------------------- ----------- -----------
(LOSS) FROM OPERATIONS . . . . . . . . . . . . . . (214,963) (880,394)
- -------------------------------------------------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest expense . . . . . . . . . . . . . . . . . (64,732) (79,877)
Interest income. . . . . . . . . . . . . . . . . . 38,131 13,701
Gain on sale of Immtech International, Inc. stock. 740,000 -
- -------------------------------------------------- ----------- -----------
Total. . . . . . . . . . . . . . . . . . . . . . . 713,399 (66,176)
- -------------------------------------------------- ----------- -----------
INCOME (LOSS) BEFORE INCOME TAXES. . . . . . . . . 498,436 (946,570)
- -------------------------------------------------- ----------- -----------
INCOME TAX PROVISION . . . . . . . . . . . . . . . - -
- -------------------------------------------------- ----------- -----------
NET INCOME (LOSS). . . . . . . . . . . . . . . . . $ 498,436 $ (946,570)
- -------------------------------------------------- ----------- -----------
EARNINGS (LOSS) PER COMMON SHARE:
Basic. . . . . . . . . . . . . . . . . . . . . . . $ 0.06 $ (0.11)
Diluted. . . . . . . . . . . . . . . . . . . . . . 0.06 (0.11)
- -------------------------------------------------- ----------- -----------
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING:
Basic. . . . . . . . . . . . . . . . . . . . . . . 8,707,809 8,701,151
Diluted. . . . . . . . . . . . . . . . . . . . . . 9,004,686 8,701,151
- -------------------------------------------------- ----------- -----------
See condensed notes to consolidated financial statements.
4
CRITICARE SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED DECEMBER 31, 1999 AND 1998
(UNAUDITED)
1999 1998
------------ ------------
OPERATING ACTIVITIES:
Net income (loss) . . . . . . . . . . . . . . . . . . . . $ 2,378,912 $(1,366,394)
Adjustments to reconcile net income to net
cash (used in) provided by operating activities:
Depreciation . . . . . . . . . . . . . . . . . . . 450,843 458,040
Amortization . . . . . . . . . . . . . . . . . . . 9,000 9,000
Equity in loss of investments. . . . . . . . . . . - 150,000
Gain on sale of Immtech International, Inc. stock. (2,500,000) -
Changes in assets and liabilities:
Accounts receivable . . . . . . . . . . . . . . (34,861) (230,045)
Other receivables . . . . . . . . . . . . . . . 78,845 204,425
Inventories . . . . . . . . . . . . . . . . . . (99,794) (1,274,859)
Prepaid expenses. . . . . . . . . . . . . . . . (215,055) 155,110
Accounts payable. . . . . . . . . . . . . . . . (593,357) 1,312,747
Accrued liabilities . . . . . . . . . . . . . . (2,017,687) 839,360
- --------------------------------------------------------- ------------ ------------
Net cash (used in) provided by operating activities . . . (2,543,154) 257,384
- --------------------------------------------------------- ------------ ------------
INVESTING ACTIVITIES:
Purchases of property, plant and equipment. . . . . . . . (317,212) (148,403)
Proceeds from sale of Immtech International, Inc. stock . 2,500,000 -
Advances to Immtech International, Inc. . . . . . . . . . - (150,000)
- --------------------------------------------------------- ------------ ------------
Net cash provided by (used in) investing activities . . . 2,182,788 (298,403)
- --------------------------------------------------------- ------------ ------------
FINANCING ACTIVITIES:
Principal payments on long-term debt. . . . . . . . . . . (36,244) (53,368)
Repurchase of Company stock . . . . . . . . . . . . . . . - (103,549)
- --------------------------------------------------------- ------------ ------------
Net cash used in financing activities . . . . . . . . . . (36,244) (156,917)
- --------------------------------------------------------- ------------ ------------
NET (DECREASE) IN CASH AND
CASH EQUIVALENTS. . . . . . . . . . . . . . . . . . . . (396,610) (197,936)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD. . . . . . 2,511,078 2,729,998
- --------------------------------------------------------- ------------ ------------
CASH AND CASH EQUIVALENTS, END OF PERIOD. . . . . . . . . $ 2,114,468 $ 2,532,062
- --------------------------------------------------------- ------------ ------------
See condensed notes to consolidated financial statements.
5
CRITICARE SYSTEMS, INC.
Condensed Notes to Consolidated Financial Statements
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared by Criticare
Systems, Inc. (the "Company") pursuant to the rules and regulations of the
Securities and Exchange Commission ("SEC") and, in the opinion of the Company,
include all adjustments necessary for a fair statement of results for each
period shown. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such SEC rules and
regulations. The Company believes that the disclosures made are adequate to
prevent the financial information given from being misleading. It is suggested
that these financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's latest annual report and
previously filed Form 10-K.
2. CASH EQUIVALENTS
The Company considers all investments with purchased maturities of less than
three months to be cash equivalents.
3. INVENTORY VALUATION
Inventory is stated at the lower of cost or market, with cost determined on the
first-in, first-out method. Components of inventory consisted of the following
at December 31, 1999 and June 30, 1999, respectively:
December 31, June 30,
1999 1999
------------- ----------
Component parts . $ 3,971,541 $3,790,728
Work in process . 1,197,266 1,261,709
Finished units. . 3,181,755 3,458,538
- ------------------- ------------- ----------
Total inventories $ 8,350,562 $8,510,975
- ------------------- ------------- ----------
6
CRITICARE SYSTEMS, INC.
Condensed Notes to Consolidated Financial Statements
(Unaudited)
4. INVESTMENTS
During August, September and October, 1999, the Company sold 500,000 shares of
Immtech International, Inc. ("Immtech") stock for $2,500,000 in a private
placement. The funds were used primarily to settle a long-standing lawsuit
which was settled in July, 1999. The Company holds approximately 460,000 shares
of Immtech stock which had a market value of approximately $13,000,000 at
December 31, 1999. These shares are subject to certain lock-up provisions which
do not allow the Company to sell any of these sales in the open market until
April, 2000. The market value of these shares could change substantially due to
overall market risk.
5. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following:
December 31, June 30,
1999 1999
------------- -----------
Land and building. . . . . . . . . . $ 4,525,000 $ 4,525,000
Machinery and equipment. . . . . . . 2,115,511 2,051,442
Furniture and fixtures . . . . . . . 901,830 819,579
Demonstration and loaner monitors. . 1,677,100 1,416,893
Production tooling . . . . . . . . . 2,329,270 2,158,378
- -------------------------------------- ------------- -----------
Property, plant and equipment - cost 11,548,711 10,971,292
Less accumulated depreciation. . . . 5,148,075 4,697,232
- -------------------------------------- ------------- -----------
Property, plant and equipment - net. $ 6,400,636 $ 6,274,060
- -------------------------------------- ------------- -----------
6. CONTINGENCIES
The Company is involved in lawsuits that have arisen from the normal conduct of
business. These proceedings are handled by outside counsel. In the opinion of
management, the ultimate resolution of these matters will not have a material
effect on the consolidated financial statements.
7
CRITICARE SYSTEMS, INC.
Management's Discussion and Analysis of
Results of Operations and Financial Condition
Six Months Ended December 31, 1999 and 1998
RESULTS OF OPERATIONS
- -----------------------
Net sales for the six months ended December 31, 1999 decreased 3.6% to $13.5
million from $14.0 million for the same period in fiscal 1999. This decrease in
revenue is due to a reduction in OEM sales to a major customer partially offset
by an increase in international sales. The Company expects sales to the major
OEM customer discussed above to improve in the second half of fiscal 2000. See
"Forward-Looking Statements" below.
The gross profit percentage for the six months ended December 31, 1999 was
45.4%. This represents a decrease from the gross profit of 48.7% recorded in
the same period of fiscal 1999. This decrease is due primarily to continued
price competition. The Company expects to see improvement in its gross profit
percentage upon the release of the new products currently in development. These
products are expected to be released in the third and fourth quarters of fiscal
2000. See "Forward-Looking Statements" below.
Operating expenses decreased approximately $1.7 million. Marketing expenses
decreased approximately $936,000 when compared to the same period in fiscal 1999
due primarily to decreased commissions which corresponds to the decreased
sales, decreased payroll and related travel expenses due to a reduction in
direct sales people as more dealers were added. Also, expenses were reduced as
a result of closing the sales office in Germany. Research, development and
engineering expense increased approximately $76,000 related to additional
outside contract and project expense which are all associated with the new
products under development. Administrative expenses decreased approximately
$139,000 in the six months ended December 31, 1999 when compared to the same
period in fiscal 1999. This decrease is due primarily to decreased litigation
expense related to the settlement of a long-standing lawsuit. The decreased
litigation costs were partially offset by reaudit costs incurred as a result of
the resignation of the Company's former auditors. The Company also recorded a
restructuring charge of $728,000 during the six months ended December 31, 1998.
This restructuring charge relates to severance pay and other benefits payable to
the two co-founders of the Company. Both of these individuals resigned from
their positions with the Company in November, 1998. The severance accrual
includes a portion of their respective salary and fringe benefits for a period
which approximates three years.
The loss from operations decreased approximately $1,037,000 for the six months
ended December 31, 1999 when compared to the same period in fiscal 1999 due to
the restructuring charge for severance pay and other benefits recorded in fiscal
1999 and the decrease in operating expenses which are a result of the Company's
restructuring plan implemented in July 1999.
Net non-operating income was approximately $2,400,000 for the six months ended
December 31, 1999. Net non-operating expenses were approximately $272,000 for
the same period in fiscal 1999. The significant change is due to the private
placement sale of 500,000 Immtech shares for $2,500,000.
8
CRITICARE SYSTEMS, INC.
Management's Discussion and Analysis of
Results of Operations and Financial Condition
Three Months Ended December 31, 1999 and 1998
RESULTS OF OPERATIONS
- -----------------------
Net sales for the three months ended December 31, 1999 decreased 5.3% to $6.9
million from $7.3 million for the same period in fiscal 1999. The decrease in
revenue is due to a reduction in OEM sales to a major customer, partially offset
by an increase in international sales. The Company expects sales to the major
OEM customer to improve in the last six months of fiscal 2000. See
"Forward-Looking Statements."
The gross profit percentage of 45.5% for the three months ended December 31,
1999 represents a decrease from the 48.9% gross profit percentage reported in
the same period of the previous fiscal year. The decrease in margins is due to
continued price competition. The Company expects to see improved margins upon
the release of the new products currently being developed and scheduled for
release in the third and fourth quarter of fiscal 2000. See "Forward-Looking
Statements."
Operating expenses decreased approximately $1.1 million. Marketing expenses
decreased approximately $324,000 when compared to the same period in fiscal 1999
due primarily to a reduction in payroll and related travel and entertainment
costs due a reduction in direct sales people as more dealers are added.
Research, development and engineering expense increased approximately $113,000
related to outside contract and project expense which are all associated with
the new products under development. Administrative expenses decreased
approximately $146,000 in the three months ended December 31, 1999 when compared
to the same period in fiscal 1999. This decrease is due primarily to decreased
legal fees resulting from the settlement of a long-standing lawsuit. The
decrease in legal fees was partially offset by reaudit fees incurred as a result
of the resignation of the Company's former auditors. The Company also recorded
a restructuring charge of $728,000 during the six months ended December 31,
1998. This restructuring charge relates to severance pay and other benefits
payable to the two co-founders of the Company. Both of these individuals
resigned from their positions with the Company in November, 1998. The severance
accrual includes a portion of their respective salary and fringe benefits for a
period which approximates three years.
The loss from operations decreased approximately $665,000 for the three months
ended December 31, 1999 when compared to the same period in fiscal 1999 due to
the restructuring charge for severance pay and other benefits recorded in fiscal
1999 and reduced spending in fiscal 2000, partially offset by the decrease in
revenue and gross profit.
Net non-operating income was approximately $713,000 for the three months ended
December 31, 1999 compared to net non-operating expenses of $66,000 recorded in
the same period of fiscal 1999. The significant change is due to the private
placement sale of 148,000 Immtech shares for $740,000.
The Company believes that its results in the quarter ended December 31, 1999
were negatively affected due to the time and attention expended by management
and other direct and indirect costs relating to the halt in trading of the
Company's shares on Nasdaq pending refiling of the Company's Annual Report on
Form 10-K for fiscal 1999.
9
CRITICARE SYSTEMS, INC.
Management's Discussion and Analysis of
Results of Operations and Financial Condition
LIQUIDITY
- ---------
During the six months ended December 31, 1999, the Company recorded negative
cash flow from operations of approximately $2.5 million and had a cash balance
of approximately $2.1 and no short term borrowings. The Company's negative cash
flow resulted primarily from the settlement of a long-standing lawsuit.
Proceeds for this settlement were obtained from the sale of 500,000 shares of
Immtech stock for $2.5 million in a private placement sale. The Company believes
its marketing and research and development activities and other capital and
liquidity requirements will be satisfied by cash generated from operations and
periodic utilization of a $4,000,000 line of credit currently in place, if
necessary.
The Company currently holds an investment in Immtech. Immtech's common stock is
currently traded on the Nasdaq SmallCap Market. As part of Immtech's initial
public offering, the Company signed a lock-up agreement. All terms of the
lock-up have been met other than the holding period which continues until April
2000.
YEAR 2000 COMPLIANCE
- ----------------------
The Company's internal systems have experienced no material Year 2000 compliance
related problems. In addition, the Company is not aware of any Year 2000
related issues with any of its customers, suppliers or other third parties with
whom the Company has business relationships. The Company does not believe at
this time that potential Year 2000 issues will materially affect the Company's
business, although no assurance can be given that this will be the case.
FORWARD LOOKING STATEMENTS
- ----------------------------
This report contains certain forward-looking statements. Such statements refer
to the Company's opinion, belief or expectation. Forward-looking are subject to
certain risk and uncertainties that could cause actual future results and
developments to differ materially from those currently projected. Such risks
and uncertainties include, but are not limited to, the uncertainties inherent in
litigation, the timing of new product introductions, the ability of the Company
to realize expected improvements in gross margin from new product introductions,
competition in the Company's markets, the Company's ability to achieve the
expected improvement in sales from a major OEM customer, delays in customer
delivery requirements and general economic conditions in the Company's market
segments.
10
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
--------------------------------------
(a) Exhibits:
3.1 Restated Certificate of Incorporation of the Company
(incorporated by reference to the Registration Statement filed on Form S-1,
Registration No. 33-13050).
3.2 By-Laws of the Company (incorporated by reference to the
Registration Statement filed on Form S-1, Registration No. 33-13050).
4.1 Specimen Common Stock certificate (incorporated by reference
to the Registration Statement filed on Form S-1, Registration No. 33-13050).
27 Financial Data Schedule.
(b) Reports on Form 8-K. The Company filed three reports on Form 8-K during
the quarter ended December 31, 1999.
The Company filed a Form 8-K on October 6, 1999, to report pursuant to Item 5 of
Form 8-K that the Company had issued a press release to notify investors that
the Company did not have an audit report with respect to the financial
statements contained in its Form 10-K filed on September 28, 1999.
The Company filed a Form 8-K on October 13, 1999, to report pursuant to Item 4
of Form 8-K that Deloitte & Touche LLP had resigned as independent accountants
for the Company on October 5, 1999. The Company filed an amendment to this Form
8-K on October 25, 1999, to include the letter from Deloitte & Touche LLP
regarding the change in accountants as Exhibit 16.1.
The Company filed a Form 8-K on November 5, 1999, to report pursuant to Item 4
of Form 8-K the appointment of BDO Seidman, LLP as independent accountants for
the Company on November 1, 1999.
11
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.
CRITICARE SYSTEMS, INC.
(Registrant)
Date 02/11/00 BY /s/ Joseph M. Siekierski
- ------------------- -------------------------
Joseph M. Siekierski
Vice President - Finance
(Chief Accounting Officer and
Duly Authorized Officer)
12