x
|
Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
|
¨
|
Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
|
Delaware
|
87-0419387
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
Large
accelerated filer ¨
|
Accelerated
filer ¨
|
Non-accelerated
filer¨
(Do not check if a smaller reporting company)
|
Smaller
reporting company x
|
Page
|
||
PART
I
|
FINANCIAL
INFORMATION
|
3
|
Item
1.
|
Financial
Statements
|
3
|
Unaudited
Condensed Consolidated Statements of Operations for the three and nine
months ended June 30, 2009 and 2008
|
3
|
|
Condensed
Consolidated Balance Sheets as of June 30, 2009 (unaudited) and September
30, 2008
|
4
|
|
Unaudited
Condensed Consolidated Statements of Cash Flows for the nine months ended
June 30, 2009 and 2008
|
5
|
|
Unaudited
Condensed Consolidated Statements of Stockholders’ Equity
(Deficit) for the nine months ended June 30, 2009 and
2008
|
6
|
|
Notes
to Unaudited Condensed Consolidated Financial Statements
|
7
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
20
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
35
|
Item
4T.
|
Controls
and Procedures
|
35
|
PART
II
|
OTHER
INFORMATION
|
36
|
Item
1
|
Legal
Proceedings
|
36
|
Item
1A.
|
Risk
Factors
|
36
|
Item
2
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
37
|
Item
3
|
Defaults
Upon Senior Securities
|
39
|
Item
6.
|
Exhibits
|
39
|
Item
1.
|
Financial
Statements
|
For
the three months ended
June
30,
|
For
the nine months ended
June
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
REVENUES
|
||||||||||||||||
Laboratory
Information Services
|
$ | 26,700 | $ | 36,500 | $ | 86,300 | $ | 131,000 | ||||||||
Clinical
Services
|
133,700 | 196,400 | 441,900 | 377,000 | ||||||||||||
160,400 | 232,900 | 528,200 | 508,000 | |||||||||||||
OPERATING
EXPENSES
|
||||||||||||||||
Cost
of laboratory services revenues
|
30,700 | 34,200 | 99,800 | 131,600 | ||||||||||||
Research
and development
|
504,400 | 682,400 | 1,741,200 | 1,589,000 | ||||||||||||
Sales
and marketing
|
161,300 | 348,200 | 708,100 | 595,000 | ||||||||||||
General
and administrative
|
843,900 | 776,400 | 2,247,400 | 2,200,800 | ||||||||||||
Total
operating expenses
|
1,540,300 | 1,841,200 | 4,796,500 | 4,516,400 | ||||||||||||
OPERATING
LOSS
|
(1,379,900 | ) | (1,608,300 | ) | (4,268,300 | ) | (4,008,400 | ) | ||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||
Interest
income (expense), net
|
(126,300 | ) | 13,000 | (129,900 | ) | 97,200 | ||||||||||
Financing
premium (expense)
|
(90,000 | ) | - | (90,000 | ) | - | ||||||||||
Total
other income (expense)
|
(216,300 | ) | 13,000 | (219,900 | ) | 97,200 | ||||||||||
LOSS
BEFORE PROVISION FOR INCOME TAXES
|
(1,596,200 | ) | (1,595,300 | ) | (4,488,200 | ) | (3,911,200 | ) | ||||||||
Income
taxes
|
4,300 | 600 | 7,200 | 1,400 | ||||||||||||
|
||||||||||||||||
NET
LOSS
|
$ | (1,600,500 | ) | $ | (1,595,900 | ) | $ | (4,495,400 | ) | $ | (3,912,600 | ) | ||||
NET
LOSS PER SHARE:
|
||||||||||||||||
Basic
|
$ | (0.06 | ) | $ | (0.06 | ) | $ | (0.18 | ) | $ | (0.15 | ) | ||||
Diluted
|
$ | (0.06 | ) | $ | (0.06 | ) | $ | (0.18 | ) | $ | (0.15 | ) | ||||
WEIGHTED
AVERAGE SHARES OUTSTANDING:
|
||||||||||||||||
Basic
|
25,782,277 | 25,299,547 | 25,460,457 | 25,299,547 | ||||||||||||
Diluted
|
25,782,277 | 25,299,547 | 25,460,457 | 25,299,547 |
June 30,
2009
|
September 30,
2008
|
|||||||
|
(unaudited)
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
|
$ | 748,300 | $ | 1,997,000 | ||||
Accounts
receivable (net of allowance for doubtful accounts of $11,600
(unaudited) as of June 30, 2009 and $17,200 as of September 30,
2008)
|
102,800 | 98,200 | ||||||
Prepaid
and other
|
201,400 | 189,400 | ||||||
Total
current assets
|
1,052,500 | 2,284,600 | ||||||
Other
assets
|
24,000 | 28,700 | ||||||
Goodwill
|
320,200 | 320,200 | ||||||
TOTAL
ASSETS
|
$ | 1,396,700 | $ | 2,633,500 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable (including amounts due to related parties of $6,000
(unaudited) as of June 30, 2009 and $6,800 as of September 30,
2008)
|
$ | 772,900 | $ | 335,700 | ||||
Accrued
liabilities
|
261,400 | 207,500 | ||||||
Funds
pending exercise of options (related party)
|
280,500 | - | ||||||
Deferred
compensation (including $ 77,700 (unaudited) and $107,000 to
related parties as of June 30, 2009 and September
30, 2008 respectively)
|
216,100 | 264,900 | ||||||
Accrued
patient costs
|
524,200 | 397,500 | ||||||
Accrued
consulting fees
|
66,900 | 67,600 | ||||||
Accrued
interest
|
12,100 | 42,600 | ||||||
Convertible
promissory notes
|
- | 50,000 | ||||||
Secured
Convertible promissory notes net of discounts $950,500 ($700,000 is due to
related parties)
|
839,500 | - | ||||||
Current
portion of long-term debt
|
94,000 | 88,500 | ||||||
Total
current liabilities
|
3,067,600 | 1,454,300 | ||||||
LONG
–TERM LIABILITIES
|
||||||||
Note
payable to officer
|
48,900 | 118,600 | ||||||
Capital
lease
|
6,100 | 7,700 | ||||||
Total
long term liabilities
|
55,000 | 126,300 | ||||||
COMMITMENTS
AND CONTINGENCIES
|
- | - | ||||||
TOTAL
LIABILITIES
|
3,122,600 | 1,580,600 | ||||||
Stockholders’
equity (deficit):
|
||||||||
Common
stock, $0.001 par value; authorized, 750,000,000 shares, issued and
outstanding, 25,299,547 shares and 1,448,189 exercised warrants as of June
30, 2009 and 25,299,547 shares as of September 30, 2008
|
26,700 | 25,300 | ||||||
Additional
paid-in capital
|
19,416,500 | 17,701,300 | ||||||
Accumulated
deficit
|
(21,169,100 | ) | (16,673,700 | ) | ||||
Total
stockholders’ equity (deficit)
|
(1,725,900 | ) | 1,052,900 | |||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 1,396,700 | $ | 2,633,500 |
For
the nine months ended
June
30,
|
||||||||
2009
|
2008
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net
loss
|
$ | (4,495,400 | ) | $ | (3,912,600 | ) | ||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
Depreciation
|
6,700 | 90,600 | ||||||
Amortization
of note discount
|
107,500 | - | ||||||
Stock-based
compensation
|
644,200 | 837,500 | ||||||
Write-off
of doubtful accounts
|
22,700 | - | ||||||
Write-off
of deferred offering costs
|
- | 42,900 | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
(27,300 | ) | 17,000 | |||||
Prepaids
and other current assets
|
(12,000 | ) | (137,400 | ) | ||||
Accounts
payable
|
437,200 | 20,800 | ||||||
Accrued
liabilities
|
113,400 | 4,900 | ||||||
Deferred
compensation
|
(48,800 | ) | 185,800 | |||||
Accrued
consulting fees
|
(700 | ) | (23,200 | ) | ||||
Accrued
patient costs
|
126,700 | 317,600 | ||||||
Net
cash used in operating activities
|
(3,125,800 | ) | (2,556,100 | ) | ||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Increase
in other assets
|
(2,000 | ) | (40,200 | ) | ||||
Cash
for acquisition, including transaction costs of $43,700
|
- | (11,600 | ) | |||||
Net
cash used in investing activities
|
(2,000 | ) | (51,800 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Cash
from Secured Convertible notes
|
1,700,000 | - | ||||||
Repayment
of notes
|
(114,400 | ) | (40,700 | ) | ||||
Repayment
of lease
|
(1,400 | ) | - | |||||
Funds
pending exercise of options
|
280,500 | - | ||||||
Cash
from exercise of warrants
|
14,400 | - | ||||||
Deferred
offering costs
|
- | (22,900 | ) | |||||
Net
cash from (used in ) financing activities
|
1,879,100 | (63,600 | ) | |||||
Net
decrease in cash
|
(1,248,700 | ) | (2,671,500 | ) | ||||
Cash,
beginning of period
|
1,997,000 | 5,790,100 | ||||||
Cash,
end of period
|
$ | 748,300 | $ | 3,118,600 | ||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW
|
||||||||
INFORMATION
|
||||||||
Cash paid
during the period for:
|
||||||||
Interest
|
$ | 61,500 | $ | 10,300 | ||||
Income
taxes
|
$ | 7,200 | $ | 1,400 | ||||
Fair
value of note payable to officer for acquisition
|
- | $ | 265,900 | |||||
Fair
value of equipment acquired through a lease
|
- | $ | 10,500 |
For
the nine months ended June 30, 2009
|
Common
Stock
|
Additional
Paid-in
|
Accumulated
|
|||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
||||||||||||||||
BALANCE
- September 30, 2008
|
25,299,547 | $ | 25,300 | $ | 17,701,300 | $ | (16,673,700 | ) | $ | 1,052,900 | ||||||||||
Exercise
of $0.01 warrants in June, 2009
|
1,448,189 | 1,400 | 13,000 | 14,400 | ||||||||||||||||
Issuance
of 3,433,333 warrants associated with bridge financings valued
at
|
- | - | 1,058,000 | - | 1,058,000 | |||||||||||||||
Stock-
based compensation
|
- | - | 644,200 | - | 644,200 | |||||||||||||||
Net
loss for the nine months ended June 30, 2009
|
- | - | - | (4,495,400 | ) | (4,495,400 | ) | |||||||||||||
Balance
at June 30, 2009
|
26,747,736 | $ | 26,700 | $ | 19,416,500 | $ | (21,169,100 | ) | $ | (1,725,900 | ) |
For
the nine months ended June 30, 2008
|
Common
Stock
|
Additional
Paid-in
|
Accumulated
|
|||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
||||||||||||||||
BALANCE
- September 30, 2007
|
25,299,547 | $ | 25,300 | $ | 16,630,000 | $ | (11,302,200 | ) | $ | 5,353,100 | ||||||||||
Stock-
based compensation
|
- | - | 837,500 | - | 837,500 | |||||||||||||||
Net
loss for the nine months ended June 30, 2008
|
- | - | - | (3,912,600 | ) | (3,912,600 | ) | |||||||||||||
Balance
at June 30, 2008
|
25,299,547 | $ | 25,300 | $ | 17,467,500 | $ | (15,214,800 | ) | $ | 2,278,000 |
|
·
|
Level
1 inputs to the valuation methodology are quoted prices
(unadjusted) for identical assets or liabilities in active
markets.
|
|
·
|
Level
2 inputs to the valuation methodology include quoted
prices for similar assets and liabilities in active markets, and inputs
that are observable for the assets or liability, either directly or
indirectly, for substantially the full term of the financial
instruments.
|
|
·
|
Level
3 inputs to the valuation methodology are unobservable
and significant to the fair value.
|
Carrying Value as of
June 30, 2009
|
Fair Value Measurements at June
30,
2009 Using Fair Value Hierarchy
|
|||||||||
Level 1
|
Level 2
|
Level 3
|
||||||||
Convertible
promissory notes
|
$ | 749,500 | $ | 1,080,000 |
For
the three months ended June 30,
|
||||||||
2009
|
2008
|
|||||||
Operations
|
$ | 4,000 | $ | 4,000 | ||||
Research
and development
|
65,200 | 68,900 | ||||||
Sales
and marketing
|
27,000 | 46,300 | ||||||
General
and administrative
|
106,500 | 136,000 | ||||||
Total
|
$ | 202,700 | $ | 255,200 |
For
the nine months ended June 30,
|
||||||||
2009
|
2008
|
|||||||
Operations
|
$ | 12,100 | $ | 12,000 | ||||
Research
and development
|
195,600 | 255,500 | ||||||
Sales
and marketing
|
107,000 | 46,300 | ||||||
General
and administrative
|
329,500 | 523,700 | ||||||
Total
|
$ | 644,200 | $ | 837,500 |
Number of
Shares
|
Weighted
Average Exercise
Price
|
|||||||
Outstanding
at September 30, 2008
|
8,964,567 | $ | 0.60 | |||||
Granted
|
24,000 | $ | 0.51 | |||||
Exercised
|
- | - | ||||||
Forfeited
|
(257,813 | ) | $ | 0.51 | ||||
Outstanding
at December 31, 2008
|
8,730,754 | $ | 0.61 | |||||
Granted
|
56,000 | $ | 0.40 | |||||
Exercised
|
- | - | ||||||
Forfeited
|
- | - | ||||||
Outstanding
at March 31, 2009
|
8,786,754 | $ | 0.60 | |||||
Granted
|
- | - | ||||||
Exercised
|
- | - | ||||||
Forfeited
|
- | |||||||
Outstanding
at June 30, 2009
|
8,786,754 | $ | 0.60 | |||||
Weighted
average of fair value of options granted during:
|
||||||||
9
months ended June 30, 2009
|
$ | 0.49 |
Exercise Price
|
Number of Shares
|
Weighted Average
Contractual Life
|
Weighted
Average
Exercise Price
|
|||||||
$
|
0.12
|
859,270 |
10
years
|
$ | 0.12 | |||||
$ |
0.132
|
3,112,545 |
7
years
|
$ | 0.132 | |||||
$ |
0.30
|
135,700 |
10
years
|
$ | 0.30 | |||||
$ |
0.59
|
28,588 |
10
years
|
$ | 0.59 | |||||
$ |
0.80
|
140,000 |
10
years
|
$ | 0.80 | |||||
$ |
0.89
|
968,875 |
10
years
|
$ | 0.89 | |||||
$ |
0.96
|
496,746 |
10
years
|
$ | 0.96 | |||||
$ |
1.09
|
2,614,232 |
10
years
|
$ | 1.09 | |||||
$ |
1.20
|
333,611 |
5
years
|
$ | 1.20 | |||||
$ |
0.51
|
41,187 |
10
Years
|
$ | 0.51 | |||||
$ |
0.40
|
56,000 |
10
Years
|
$ | 0.40 | |||||
Total
|
8,786,754 | $ | 0.60 |
Fair
value of note payable issued
|
$ | 265,900 | ||
Direct
transaction costs
|
43,700 | |||
Purchase
price
|
309,600 | |||
Allocated
to net tangible liabilities, including
cash of $32,100
|
(10,600 | ) | ||
Allocated
to goodwill
|
$ | 320,200 |
Three
Months ended June 30, 2009
|
||||||||||||||||
Laboratory
Information
Services
|
Clinic
|
Eliminations
|
Total
|
|||||||||||||
Revenues
|
$ | 32,000 | $ | 133,700 | $ | (5,300 | ) | $ | 160,400 | |||||||
Operating
expenses:
|
||||||||||||||||
Cost
of revenues
|
30,700 | 5,300 | (5,300 | ) | 30,700 | |||||||||||
Research
and development
|
504,400 | - | - | 504,400 | ||||||||||||
Sales
and marketing
|
159,600 | 1,700 | - | 161,300 | ||||||||||||
General
and administrative
|
659,500 | 184,400 | - | 843,900 | ||||||||||||
Total
operating expenses
|
$ | 1,354,200 | $ | 191,400 | $ | (5,300 | ) | $ | 1,540,300 | |||||||
Loss
from operations
|
$ | (1,322,200 | ) | $ | (57,700 | ) | $ | - | $ | (1,379,900 | ) |
Nine months ended June 30, 2009
|
||||||||||||||||
Laboratory
Information
Services
|
Clinic
|
Eliminations
|
Total
|
|||||||||||||
Revenues
|
$ | 98,800 | $ | 463,400 | $ | (34,000 | ) | $ | 528,200 | |||||||
Operating
expenses:
|
||||||||||||||||
Cost of
revenues
|
99,800 | 12,500 | (12,500 | ) | 99,800 | |||||||||||
Research and
development
|
1,741,200 | - | - | 1,741,200 | ||||||||||||
Sales and
marketing
|
702,500 | 5,600 | - | 708,100 | ||||||||||||
General and
administrative
|
1,767,100 | 501,800 | (21,500 | ) | 2,247,400 | |||||||||||
Total operating
expenses
|
$ | 4,310,600 | $ | 519,900 | $ | (34,000 | ) | $ | 4,796,500 | |||||||
Loss from
operations
|
$ | (4,211,800 | ) | $ | (56,500 | ) | $ | - | $ | (4,268,300 | ) |
Laboratory
Information Services
|
Clinic
|
Total
|
||||||||||
Goodwill
|
$ | 320,200 | $ | - | $ | 320,200 | ||||||
Total
assets
|
$ | 1,354,300 | $ | 42,400 | $ | 1,396,700 |
7.
|
EARNINGS PER
SHARE
|
For the three months
ended June 30,
|
2009
|
2008
|
||||||
Net loss for computation of basic
net loss per share
|
$ | (1,600,500 | ) | $ | (1,595,900 | ) | ||
Net loss for computation of
dilutive net loss per share
|
$ | (1,600,500 | ) | $ | (1,595,900 | ) | ||
Basic net loss per
share
|
$ | (0.06 | ) | $ | (0.06 | ) | ||
Diluted net loss per
share
|
$ | (0.06 | ) | $ | (0.06 | ) | ||
Basic weighted average shares
outstanding
|
25,782,277 | 25,299,547 | ||||||
Dilutive common equivalent
shares
|
- | - | ||||||
Diluted weighted average common
shares
|
25,782,277 | 25,299,547 |
For the nine months ended June 30,
|
2009
|
2008
|
||||||
Net loss for computation of basic
net loss per share
|
$ | (4,495,400 | ) | $ | (3,912,600 | ) | ||
Net loss for computation of
dilutive net loss per share
|
$ | (4,495,400 | ) | $ | (3,912,600 | ) | ||
Basic net loss per share
|
$ | (0.18 | ) | $ | (0.15 | ) | ||
Diluted net loss per
share
|
$ | (0.18 | ) | $ | (0.15 | ) | ||
Basic weighted average shares
outstanding
|
25,460,457 | 25,299,547 | ||||||
Dilutive common equivalent
shares
|
- | - | ||||||
Diluted weighted average
common
shares
|
25,460,457 | 25,299,547 | ||||||
Anti-dilutive common equivalent
shares not included in the computation of dilutive net loss per
share:
|
||||||||
For the three months ended
June 30,
|
2009
|
2008
|
||||||
Convertible
debt
|
- | 4,995,000 | ||||||
Warrants
|
7,594,401 | 6,899,353 | ||||||
Options
|
8,869,545 | 8,959,533 | ||||||
For the nine months ended June 30,
|
2009
|
2008
|
||||||
Convertible
debt
|
- | 4,995,000 | ||||||
Warrants
|
7,131,036 | 6,899,353 | ||||||
Options
|
8,885,551 | 8,510,578 |
8.
|
COMMITMENTS AND CONTINGENT
LIABILITIES
|
Years ending June 30,
|
Operating
Leases
|
Bridge
Financings
|
Capital
Lease
|
Debt
Maturities
|
Total
|
|||||||||||||||
2010
|
$ | 62,900 | $ | 1,790,000 | $ | 2,600 | $ | 100,000 | $ | 1,955,500 | ||||||||||
2011
|
- | 2,600 | 50,000 | 52,600 | ||||||||||||||||
2012
|
- | 2,600 | - | 2,600 | ||||||||||||||||
2013
|
- | 1,700 | - | 1,700 | ||||||||||||||||
Total
|
$ | 62,900 | $ | 1,790,000 | $ | 9,500 | $ | 150,000 | $ | 2,012,400 | ||||||||||
Less
interest
|
(1,700 | ) | (80,000 | ) | (1,400 | ) | (9,100 | ) | (92,200 | ) | ||||||||||
Net present
value
|
61,200 | $ | 1,710,000 | 8,100 | 140,900 | 1,920,200 | ||||||||||||||
Less current
portion
|
(61,200 | ) | (1,710,000 | ) | (2,000 | ) | (92,000 | ) | (1,865,200 | ) | ||||||||||
Long-term debt and lease
obligation
|
$ | - | $ | - | $ | 6,100 | $ | 48,900 | $ | 55,000 |
Three Months
Ended
June 30, 2009
|
Three Months
Ended
June 30, 2008
|
|||||||
Revenues
|
100 | % | 100 | % | ||||
Cost of
revenues
|
19 | 15 | ||||||
Gross
profit
|
81 | 85 | ||||||
Research and
development
|
314 | 293 | ||||||
Sales and
marketing
|
101 | 150 | ||||||
General and administrative
expenses
|
526 | 333 | ||||||
Operating
loss
|
(860 | ) | (691 | ) | ||||
Other income (expense),
net
|
(138 | ) | 6 | |||||
Net income
(loss)
|
(998 | )% | (685 | )% |
Three Months
Ended
June 30,
2009
|
Three Months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Laboratory Service
Revenues
|
$ | 26,700 | $ | 36,500 | (27 | )% | ||||||
Clinical Service
Revenues
|
133,700 | 196,400 | (32 | )% | ||||||||
Total
Revenues
|
$ | 160,400 | $ | 232,900 | (31 | )% |
Three Months
Ended
June 30,
2009
|
Three Months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Cost of Laboratory Information
Services revenues
|
$ | 30,700 | $ | 34,200 | (10 | )% |
Three Months
Ended
June 30,
2009
|
Three Months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Laboratory Information Services
research and development
|
$ | 504,400 | $ | 682,400 | (26 | )% |
Three Months
Ended
June 30,
2009
|
Three Months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Sales and
Marketing
|
||||||||||||
Laboratory
Information Services
|
$ | 159,600 | $ | 330,500 | (52 | )% | ||||||
Clinical
Services
|
1,700 | 17,700 | (90 | )% | ||||||||
Total Sales and
Marketing
|
$ | 161,300 | $ | 348,200 | (54 | )% |
Three Months
Ended June 30,
2009
|
Three Months
Ended June 30,
2008
|
Percent
Change
|
||||||||||
General and administrative
|
||||||||||||
Laboratory Information
Services
|
$ | 659,500 | $ | 528,800 | 25 | % | ||||||
Clinical Services
|
$ | 184,400 | 247,600 | (26 | )% | |||||||
Total General and
administrative
|
$ | 843,900 | $ | 776,400 | 9 | % |
Three Months
Ended June 30,
2009
|
Three Months
Ended June 30,
2008
|
Percent
Change
|
||||||||||
Laboratory Information
Services (Expense),
net
|
$ | (216,300 | ) | $ | 13,000 |
*
|
||||||
Clinical
Services
|
- | - |
*
|
|||||||||
Total interest income
(expense)
|
$ | (216,300 | ) | $ | 13,000 |
*
|
||||||
* not
meaningful
|
Three Months
Ended June 30,
2009
|
Three Months
Ended June 30,
2008
|
Percent
Change
|
||||||||||
Laboratory Information Services net loss
|
$ | (1,541,400 | ) | $ | (1,524,200 | ) | 1 | % | ||||
Clinical Services net
loss
|
(59,100 | ) | (71,700 | ) | (18 | )% | ||||||
Total Net
Loss
|
$ | (1,600,500 | ) | $ | (1,595,900 | ) | 0 | % |
Nine months
Ended
June 30, 2009
|
Nine months
Ended
June 30, 2008
|
|||||||
Revenues
|
100 | % | 100 | % | ||||
Cost of
revenues
|
19 | 26 | ||||||
Gross
profit
|
81 | 74 | ||||||
Research and
development
|
330 | 313 | ||||||
Sales and
marketing
|
134 | 117 | ||||||
General and administrative
expenses
|
425 | 433 | ||||||
Operating
loss
|
(808 | ) | (789 | ) | ||||
Other income (expense),
net
|
(43 | ) | 19 | |||||
Net income
(loss)
|
(851 | ) % | (770 | )% |
Nine months
Ended
June 30,
2009
|
Nine months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Laboratory Service
Revenues
|
$ | 86,300 | $ | 131,000 | (34 | )% | ||||||
Clinical Service
Revenues
|
441,900 | 377,000 | 17 | % | ||||||||
Total
Revenues
|
$ | 528,200 | $ | 508,000 | 4 | % |
Nine months
Ended
June 30,
2009
|
Nine months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Cost
of Laboratory Information Services revenues
|
$ | 99,800 | $ | 131,600 | (24 | )% |
Nine months
Ended
June 30,
2009
|
Nine months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Laboratory
Information Services research and development
|
$ | 1,741,200 | $ | 1,589,000 | 10 | % |
Nine months
Ended
June 30,
2009
|
Nine months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Sales
and Marketing
|
||||||||||||
Laboratory
Information Services
|
$ | 702,500 | $ | 574,100 | 22 | % | ||||||
Clinical
Services
|
5,600 | 20,900 | (73 | )% | ||||||||
Total
Sales and Marketing
|
$ | 708,100 | $ | 595,000 | 19 | % |
Nine months
Ended
June 30,
2009
|
Nine months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
General
and administrative
|
||||||||||||
Laboratory
Information Services
|
$ | 1,745,600 | $ | 1,756,000 | (1 | )% | ||||||
Clinical
Services
|
$ | 501,800 | 444,800 | 13 | % | |||||||
Total
General and administrative
|
$ | 2,247,400 | $ | 2,200,800 | 2 | % |
Nine months
Ended
June 30,
2009
|
Nine months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Laboratory
Information Services (Expense), net
|
$ | (219,800 | ) | $ | 97,200 | * | ||||||
Clinical
Services (Expense)
|
(100 | ) | - | * | ||||||||
Total
interest income (expense)
|
$ | (219,900 | ) | $ | 97,200 | * |
Nine months
Ended
June 30,
2009
|
Nine months
Ended
June 30,
2008
|
Percent
Change
|
||||||||||
Laboratory
Information Services net loss
|
$ | (4,435,300 | ) | $ | (3,813,600 | ) | 16 | % | ||||
Clinical
Services net loss
|
(60,100 | ) | (99,000 | ) | (39 | )% | ||||||
Total
Net Loss
|
$ | (4,495,400 | ) | $ | (3,912,600 | ) | 15 | % |
Payment Due by Period
|
||||||||||||||||||||
Contractual Obligations
|
Total
|
Less Than
1 Year
|
1-3
Years
|
4-5
Years
|
After
5 Years
|
|||||||||||||||
Operating
Leases
|
$ | 62,900 | $ | 62,900 | - | - | - | |||||||||||||
Bridge
Financings
|
1,790,000 | 1,790,000 | - | - | - | |||||||||||||||
Capital
Lease
|
9,500 | 2,600 | 5,200 | 1,700 | - | |||||||||||||||
Debt
Maturities
|
150,000 | 100,000 | 50,000 | - | - | |||||||||||||||
Total
|
$ | 2,012,400 | 1,955,500 | 55,200 | 1,700 | - |
Exhibit
Number
|
Exhibit Title
|
|
3.1
|
Bylaws. Incorporated
by reference to Exhibit 3(ii) to the Registrant’s Form 10-SB (File No.
000-26285) filed with the Commission on June 7, 1999.
|
|
3.2
|
Amendment
No. 1 to Bylaws of CNS Reponse, Inc. Incorporated by reference
to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K (File No.
000-26285) filed with the Commission on July 2, 2009.
|
|
3.3
|
Amendment
No. 2 to Bylaws of CNS Reponse, Inc. Incorporated by reference
to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K (File No.
000-26285) filed with the Commission on July 23, 2009.
|
|
10.1
|
Purchase
Agreement, dated May 14, 2009, by and between the Company and SAIL Venture
Partners, LP. Incorporated by reference to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on May 20, 2009 (File Number
000-26285).
|
10.2
|
Form
of Convertible Promissory Note. Incorporated by
reference to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on May 20, 2009 (File Number
000-26285).
|
|
10.3
|
Form of Warrant to Purchase
Shares. Incorporated by reference to the Registrant’s
Current Report on Form 8-K filed with the Securities and Exchange
Commission on May 20, 2009 (File Number 000-26285).
|
|
10.4
|
Bridge
Note and Warrant Purchase Agreement, dated June 12, 2009, by and between
the Company and Mr. John Pappajohn. Incorporated by
reference to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on June 18, 2009 (File Number
000-26285).
|
|
10.5
|
Form
of Secured Convertible Promissory Note. Incorporated by reference
to the Registrant’s Current Report on Form 8-K filed with the Securities
and Exchange Commission on June 18, 2009 (File Number
000-26285).
|
|
10.6
|
Form
of Warrant to Purchase Shares Incorporated by reference to the
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on June 18, 2009 (File Number
000-26285).
|
|
31.1
|
Certification
of Principal Executive Officer pursuant to Securities Exchange Act Rules
13a-14(a) and 15d-14(a) as adopted pursuant to section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
31.2
|
Certification
of Principal Financial Officer pursuant to Securities Exchange Act Rules
13a-14(a) and 15d-14(a) as adopted pursuant to section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
32.1
|
Certification
of Principal Executive Officer and Principal Financial Officer pursuant to
18 U.S.C. Section 1350, as adopted pursuant to section 906 of the
Sarbanes-Oxley Act of 2002.
|
CNS
Response, Inc.
|
|||
Date:
August 10, 2009
|
/s/
George Carpenter
|
||
By:
|
George
Carpenter
|
||
Its:
|
Chief
Executive Officer
|
||
(Principal
Executive, Financial and
|
|||
Accounting
Officer)
|
|||