SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-QSB
Quarterly Report Under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter ended January 31, 2002
Commission file number 001-16813
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LASIK AMERICA, INC
(Exact name of registrant as specified in its charter)
Nevada 88-0490720
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(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
6646 Indian School Road NE, Albuquerque, New Mexico 87110
- ---------------------------------------------------- ---------
(Address of principal executive office) (zip code)
(505) 837-2020
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(Registrant's telephone number, including area code)
Howard P. Silverman, Chief Executive Officer
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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 a recent date: 2,082,043 shares of common stock, no par
value, as of January 31, 2002.
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PART I--FINANCIAL INFORMATION
Item 1. Financial Statements
LASIK AMERICA, INC.
BALANCE SHEETS
JANUARY 31,2002 JULY 31,2001
(unaudited) (audited)
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ASSETS
Current Assets
Cash $ 25,415 $ 19
Accounts receivable -- 2,370
Other current assets 74,169 7,550
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Total Current Assets 99,584 9,939
Property and equipment, net 193,016 219,773
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Total Assets $292,600 $ 229,712
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LIABILITIES AND SHAREHOLDERS' DEFICIT
Current Liabilities:
Accounts payable $107,139 $ 51,537
Patient Deposits -- 11,105
Sales tax payable 50,741 12,554
Interest payable 3,100 --
Payroll taxes payable 52,934 --
Other Liabilities -- 2,512
Current portion of long-term debt 125,203 110,263
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Total Current Liabilities 339,117 187,971
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Long-term debt 52,492 105,820
Loan payable-officer 50,000 --
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Total Liabilities 441,609 293,791
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Commitments
Shareholders' deficit:
Preferred stock, $.001 par value,
100,000 shares authorized; no
shares issued and outstanding -- --
Common stock, $.001 par value,
25,000,000 shares authorized;
2,082,043 issued and outstanding 2,082 2,082
Additional paid in capital 12,510,176 12,510,176
Deferred compensation (22,500) (67,500)
Accumulated Deficit (12,638,767) (12,508,837)
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Total shareholders' deficit (149,009) (64,079)
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Total liabilities and
shareholders' deficit $ 292,600 $ 229,712
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LASIK AMERICA, INC.
STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SIX MONTHS ENDED
January 31, January 31, January 31, January 31,
2002 2001 2002 2001
------------------------ ----------------------
(unaudited) (unaudited)
Revenues:
Patient Fees (net of discounts
of $3,387 and $22,440,
respectively) $ 322,207 $ -- $ 605,300 $ --
Facility Fees -- -- 10,120 --
--------- --------- --------- ---------
Total Revenues 322,207 -- 615,420 --
Costs and Expenses:
Cost of revenues (exclusive
of depreciation shown
separately below) 108,903 -- 196,339 --
General and administrative 240,728 -- 509,262 --
Depreciation 14,884 -- 26,757 --
--------- --------- --------- ---------
Total costs and expenses 364,515 -- 732,358 --
--------- --------- --------- ---------
Loss from operations (42,308) -- (116,938) --
Other expense:
Interest expense 8,116 -- 12,992 --
--------- --------- --------- ---------
Net loss $ (50,424) $ -- $(129,930) $ --
========= ========= ========= =========
Basic and diluted net loss per share $ (0.02) $ -- $ (0.06) $ --
========= ========= ========= =========
Shares used to compute basic and
diluted net loss per share 2,082,043 2,082,043 2,082,043 2,082,043
========= ========= ========= =========
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LASIK AMERICA, INC.
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED
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JANUARY 31,2002 JANUARY 31,2001
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(unaudited) (unaudited)
Cash flows from operating activities:
Net loss $(129,930) $ --
Adjustments to reconcile net
loss to net cash provided by
operating activities:
Depreciation 26,757 --
Amortization of deferred
compensation 45,000 --
Changes in operating assets and liabilities:
Decrease in accounts receivable 2,370 --
Increase in accounts payable 55,602 --
Decrease in patient deposits (11,105) --
Increase in other liabilities 91,709 --
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Net cash flows provided by operating
activities 80,403 --
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Cash flows from financing activities:
Borrowing from officer 50,000 --
Increase in prepaid offering costs (66,619) --
Repayment on long-term debt (38,388) --
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Net cash flows used in financing
activities (55,007) --
--------- ----------
Net increase in cash 25,396 --
Cash at beginning of period 19 --
--------- ----------
Cash at end of period $ 25,415 $ --
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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest $ -- $ --
========= ==========
Income taxes $ -- $ --
========= ==========
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LASIK AMERICA, INC.
NOTES TO FINANCIAL STATEMENTS
A. Basis of Presentation:
The balance sheet as of January 31, 2002, the statements of operations for
the three and six month periods ended January 31, 2002 and 2001, respectively,
and the statements of cash flows for the six months then ended have been
prepared by the Company without audit. In the opinion of management, all
adjustments (which include only normal recurring adjustments except as noted in
management's discussion and analysis of financial condition and results of
operations) necessary to present fairly the financial position, results of
operations and changes in cash flows have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with accounting principles generally accepted
in the United States of America have been condensed or omitted. It is suggested
that these consolidated financial statements be read in conjunction with the
consolidated financial statements and notes thereto included in Amendment No. 5
to Form SB-2 Registration Statement filed December 12, 2001. The results of
operations for the three and six months ended January 31, 2002 and 2001, are not
necessarily indicative of the operating results for the full year.
The Company did not begin operations until March 21, 2001.
B. Reclassification:
None
C. Stock Split:
None
D. Subsequent Events:
None
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Note Regarding Projections and Forward Looking Statements:
This report includes projections of future results and forward-looking
statements as those terms are defined in Section 27A of the Securities Act of
1933 as amended (the "Securities Act"), and Section 21E of the Securities
Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are
included in this Form 10-QSB, other than statements of historical fact, are
forward-looking statements. Although management believes that the expectations
reflected in these forward-looking statements are reasonable, such expectations
are forward looking statements and are subject to substantial risks and
uncertainties, and management can offer no assurance that such expectations will
prove to have been correct. Important factors that could cause actual results to
differ materially from the forward-looking statements in this report include,
without limitation, the Company's lack of revenue and the Company's ability to
raise substantial amounts of capital in its initial public offering which became
effective on December 12, 2001.
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Results of Operations:
We derive our revenues directly from the number of laser vision surgical
procedures performed at our center in Albuquerque, New Mexico. Procedures
performed by our affiliated doctor generate revenue to us from the physician,
who collects a fee from the patient. Procedures performed by our employed doctor
generate revenue directly to us from the patient. Revenues from November 1, 2001
to January 31, 2002 totaled $322,207. Revenues from August 1, 2001 to January
31, 2002 totaled $615,420.Total revenue is predicted on the number of procedures
of laser vision correction we performed during the period. Due to the fact that
our operations in performing laser vision correction surgery did not begin until
March 2001, we believe that the number of procedures performed during the period
from August 1, 2001 to January 31, 2002, was below what we anticipate will be
performed during subsequent periods. . However, we can not give any assurance
that the number of surgical procedures will increase during any subsequent
periods.
Cost of revenues
Cost of revenues, exclusive of depreciation, consists of doctor fees,
royalty fees and medical supplies. The total cost of revenue from November 1,
2001 to January 31, 2002 was $108,903. Cost of revenues for the six months ended
January 31, 2002 was $196,339. As a percentage of revenue, cost of revenue,
exclusive of depreciation, equaled 34% and 32% of total revenue during the three
and six months ended January 31, 2002, respectively. Royalty fees are payable to
the licensor of the excimer laser we use for surgical procedures and is
currently $110 per eye.
General and administrative expenses
General and administrative expenses consist primarily of salaries, wages
and related costs for general corporate functions. General and administrative
expenses for the three and six months ended January 31, 2002 totaled $240,728
and $509,262, respectively. As a percentage of revenue, general and
administrative expenses equaled 75% and 83% of total revenue for the three and
six months, respectively. We believe that this current percentage is high during
these periods due to the staffing resources required to operate the business
while the level of operations is grown to the capacity of the facility.
Depreciation
Depreciation expense for the three and six months amounted to $14,884 and
$26,757, respectively, from the depreciation of capital items acquired for use
in our operations.
Interest Expense
Interest expense of $8,116 and $12,992 for the three and six months ended
January 31, 2002 results from our financing costs of some of our capital
equipment.
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Net Loss
Our net loss for the period November 1, 2001 to January 31, 2002 was
$50,424 resulting in a net loss for the six months ended January 31, 2002 of
$129,930. This net loss is due to the staffing resources required to operate the
business while the level of operations is grown to the capacity of the facility.
We believe that after our first full year of operations, we will be
performing a sufficient number of laser vision surgical procedures to generate a
net profit.
The Company began operations March 21, 2001 and accordingly there was no
activity for the period August 1, 2000 to October 31, 2000.
Liquidity and Capital Resources:
Since our inception, we have financed our operations through revenues and
capital raised through the sale of our common stock. During August 2001 our
chief executive officer loaned $50,000 to the Company. In order to effectuate
our business plan as structured, we will need to raise significant capital from
external sources. In addition, we intend to increase our cash flow internally
through an increase in the number of surgical procedures we perform. We
currently do not have a credit facility or any commitments for additional
financing beyond the funds anticipated from the sale of our common stock and
common stock purchase warrants in conjunction with the registration statement
filed on Form SB-2 for our initial public offering, which became effective on
December 12, 2001. If we are unable to obtain adequate financing from internal
or external sources we may be unable to fully implement our business plan and
may be forced to modify our operations.
Cash flows provided by operating activities was $80,403 for the period
August 1, 2001 to January 31, 2002. Net cash flows used in financing activities
of $55,007 results from the increase in prepaid public offering costs related to
our initial public offering, repayments on long-term debt, and the proceeds of
the loan from our chief executive officer.
Since our registration statement became effective on December 12, 2001, we
have not accepted any subscriptions from investors for the sale of our common
stock and common stock purchase warrants registered for offer and sale under our
Form SB-2 registration statement. No assurance can be given on whether we will
be able to raise any investment capital in our initial public offering, or if we
do, how much investment capital we may ultimately raise through our initial
public offering.
Recently issued accounting standards
We believe that recently issued financial standards will not have a
significant impact on our results or operations, financial positions, or cash
flows.
Impact of Inflation
The Company does not believe inflation has had a significant effect on its
operations.
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PART II--OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS
None
B. REPORTS ON FORM 8-K
None
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.
LASIK AMERICA, INC.
(Registrant)
/S/ Howard P. Silverman
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Howard P. Silverman
Chief Executive Officer
Date: March 28, 2002
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