Quaterly Report 30 June 2004
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
AMERICAN HEALTHCHOICE, INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
JUNE 30, 2004
ASSETS
Current Assets:
Cash $ 23,562
Accounts receivable, less allowance for doubtful
accounts of $ 4,974,724 5,305,652
Other current assets 123,821
-----------
Total current assets 5,453,035
Property and equipment, net 445,958
Goodwill, net 1,348,570
-----------
Total assets $ 7,247,563
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes payable and capital lease obligations $ 1,053,882
Bankruptcy claims of unsecured creditors 528,500
Bankruptcy claims of related parties 616,481
Accrued payroll and payroll taxes 999,178
Accounts payable and accrued expenses 534,222
-----------
Total current liabilities 3,732,263
Commitments and Contingent Liabilities -
Stockholders' Equity:
Preferred stock, $.001 par value; 5,000,000 shares
authorized; none issued -
Common stock, $.001 par value; 115,000,000 shares
authorized; 104,195,259 shares issued and outstanding 104,195
Options to acquire common stock 8,000
Additional paid-in capital 22,057,989
Accumulated deficit (18,654,884)
-----------
Total stockholders' equity 3,515,300
-----------
Total liabilities and stockholders' equity $ 7,247,563
===========
See accompanying notes to these consolidated financial statements.
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AMERICAN HEALTHCHOICE, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended June 30, Nine Months Ended June 30,
---------------------------- ---------------------------
2003 2004 2003 2004
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Revenues:
Patient billings $ 1,972,188 $ 2,515,026 $ 5,897,304 $ 6,989,884
Allowance for discount
on billings 885,962 1,184,293 2,623,780 3,270,656
---------- ---------- ---------- ----------
Net revenues 1,086,226 1,330,733 3,273,524 3,719,228
Operating Expenses:
Compensation and benefits 698,529 697,153 2,050,879 1,986,786
General and administrative 149,620 239,778 511,993 627,006
Advertising and marketing 220,049 308,697 651,249 813,961
Rent 86,346 81,277 263,054 243,131
---------- ---------- ---------- ----------
Total operating expenses 1,154,544 1,326,905 3,477,175 3,670,884
---------- ---------- ---------- ----------
Operating Income (Loss) (68,318) 3,828 (203,651) 48,344
Interest expense and other
costs of borrowing (18,268) (18,193) (53,114) (55,231)
Bad debt loss (See Note 8) - (900,000) - (900,000)
---------- ---------- ---------- ----------
Net Loss $ (86,586) $ (914,365) $ (256,765) $ (906,887)
========== ========== ========== ==========
Basic and Diluted Net Loss
Per Share $ - $ (0.01) $ - $ (0.01)
Weighted Average Common Shares
Outstanding 88,100,000 108,148,000 88,100,000 105,032,000
See accompanying notes to these consolidated financial statements.
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AMERICAN HEALTHCHOICE, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended June 30,
--------------------------
2003 2004
--------- ---------
Cash Flows From Operating Activities:
Net loss $ (256,765) $ (906,887)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Allowance for doubtful accounts 2,623,780 3,270,656
Bad debt loss - 900,000
Employee compensation-stock 36,000 -
Depreciation and amortization 23,352 22,689
Change in operating assets and liabilities, net:
Accounts receivable-trade (2,455,031) (3,658,868)
Other current assets (4,396) 12,939
Accounts payable and accrued expenses 56,828 398,762
--------- ---------
Net cash provided by operating activities 23,808 39,291
Cash Flows From Investing Activities:
Property and equipment (30,685) (2,356)
--------- ---------
Net cash used in investing activities (30,685) (2,356)
Cash Flows From Financing Activities:
Proceeds from notes payable - -
Payments on notes payable and capital leases (1,200) (34,444)
--------- ---------
Net cash used in financing activities (1,200) (34,444)
--------- ---------
Net Increase (Decrease) In Cash (8,077) 2,491
Cash At Beginning Of Year 11,296 21,071
--------- ---------
Cash At End Of Period $ 3,219 $ 23,562
========= =========
Supplemental Disclosure Of Cash Flow Information:
Income taxes paid $ 2,000 $ 1,500
Interest paid $ 1,000 $ 5,000
Supplemental Disclosure Of Non-Cash Transactions:
Purchase of equipment through issuance
of notes payable 23,254 115,850
Issuance of stock in connection with legal
and consulting agreements - 79,000
Conversion of debenture into stock - 1,310,400
See accompanying notes to these consolidated financial statements.
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