UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934 For the quarterly period ended June 30, 2001
[ ] Transition Report Under Section 13 or 15(d) of the Securities Exchange Act;
For the transition period from _________ to __________
Commission File Number: 000-29822
THEHEALTHCHANNEL.COM, INC.
--------------------------
(Exact name of small business issuer as specified in its charter)
DELAWARE 33-0728140
------------------------------- ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
260 Newport Center Drive, Suite 250, Newport Beach, CA 92660
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code:
(949) 631-8317
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
The issuer had 31,945,658 shares outstanding as of June 30, 2001.
Transitional Small Business Disclosure Format (check one):
Yes No X
THEHEALTHCHANNEL.COM, INC.
INDEX
PAGE NO.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
Balance Sheet as of June 30, 2001 (unaudited).
Statements of Operations for the 6 months ended June 30, 2001 and
2000, the 3 months ended June 30, 2001 and 2000, and for the period
since inception to June 30, 2001 (unaudited).
Statement of Stockholders' Deficit for the period since inception to
June 30, 2001 (unaudited).
Statements of Cash Flows for 6 months ended June 30, 2001 and 2000,
and for the period since inception to June 30, 2001 (unaudited).
Notes to Condensed Financial Statements (unaudited).
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports of Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
THEHEALTHCHANNEL.COM, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
BALANCE SHEET - JUNE 30, 2001
(UNAUDITED)
ASSETS
CURRENT ASSETS:
Cash $ 28,051
Prepaid expenses and other receivables 37,524
------------
Total current assets $ 65,575
DEPOSITS 9,052
------------
$ 74,627
============
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses $ 332,679
Loans payable, stockholders 144,000
Accrued Stock-Based obligations 1,399,446
Loans payable, short term, 6% interest, due
November 1, 2001 240,180
------------
Total current liabilities $ 2,116,305
SUBSCRIBED STOCK 119,200
STOCKHOLDERS' DEFICIT:
Common stock; $.001 par value, 110,000,000
shares authorized, 31,945,658 shares issued
and outstanding 31,946
Additional paid in capital 8,861,057
Deficit accumulated during development stage (11,053,881)
------------
Total stockholders' deficit (2,160,878)
------------
$ 74,627
============
THEHEALTHCHANNEL.COM, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF OPERATIONS
Three Three For the period
Six months ended Six months ended months ended months ended since inception to
June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000 June 30, 2001
------------ ------------ ------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
NET REVENUES $ 47,919 $ 8 $ 11,742 $ 8 $ 58,684
COST OF REVENUES -- -- -- -- --
------------ ------------ ------------ ------------ ------------
GROSS PROFIT 47,919 8 11,742 8 58,684
OPERATING EXPENSES:
Depreciation 543,859 165,225 259,449 84,087 1,012,919
Consulting and professional fees 131,132 463,880 56,134 125,452 4,152,591
Website related 90,977 250,067 46,399 147,142 848,720
Interest expense 374,914 -- 198,250 -- 718,249
General and administrative 412,525 336,697 182,099 161,557 2,166,438
------------ ------------ ------------ ------------ ------------
Total operating expenses
1,553,407 1,215,869 742,331 518,238 8,898,917
LOSS FROM CONTINUING OPERATIONS (1,505,488) (1,215,861) (730,589) (518,230) (8,840,233)
Loss on discontinued operations -- -- -- -- (2,114,398)
Loss on disposal of segment -- -- -- -- (99,250)
------------ ------------ ------------ ------------ ------------
TOTAL DISCONTINUED OPERATIONS -- -- -- -- (2,213,648)
------------ ------------ ------------ ------------ ------------
NET LOSS $ (1,505,488) $ (1,215,861) $ (730,589) $ (518,230) $(11,053,881)
============ ============ ============ ============ ============
NET LOSS PER SHARE, BASIC AND DILUTED:
Continuing operations $ (0.05) $ (0.05) $ (0.03) $ (0.02)
============ ============ ============ ============
Discontinued operations $ -- $ -- $ -- $ --
============ ============ ============ ============
Net loss per share $ (0.05) $ (0.05) $ (0.03) $ (0.02)
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 27,835,668 23,841,963 27,304,165 23,666,380
============ ============ ============ ============
THEHEALTHCHANNEL.COM, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENT OF STOCKHOLDERS' DEFICIT
Deficit
Accumulated
Common Stock Additional Stock during the Total
------------ paid-in subscriptions development stockholders'
Shares Amount Capital Receivable Stage Equity/(Deficit)
------------ ------------ ------------ ------------ ------------ ------------
DESCRIPTION
Balance at December 31, 1997, restated for
1:3 stock split on October 12, 2000 11,388,007 $ 11,388 $ 379,859 $ -- $ (274,783) $ 116,464
Shares sold for cash 3,334,252 3,334 473,130 476,464
Shares issued in exchange for services 6,998,481 6,999 1,054,540 1,061,539
Common stock subscription 184,413 184 59,816 (60,000)
Net loss for the year ended
December 31, 1998 (1,472,601) (1,472,601)
------------ ------------ ------------ ------------ ------------ ------------
Balance at December 31, 1998 21,905,153 21,905 1,967,345 (60,000) (1,747,384) 181,866
IVTX
Issuance of common stock from IVTX
private placement offering (Note 4) 113,043 113 112,086 60,000 172,199
Issuance of shares for services rendered on
behalf of the Company (Note 4) 34,800 35 52,165 52,200
THEHEALTHCHANNEL.COM (FORMERLY IVTX)
Contribution of asset from Biologix
International, Ltd. (Note 3) 947,835 947,835
Issuance of common stock from private
placement offering (Note 4) 405,934 406 510,134 (25,000) 485,540
Issuance of common stock related to
settlement agreements (Note 4) 501,667 502 1,796,843 1,797,345
Shares given directly by shareholders for
services rendered on the Company's
behalf (Note 4) 860,100 860,100
Net loss for the year ended
December 31, 1999 (3,926,992) (3,926,992)
------------ ------------ ------------ ------------ ------------ ------------
Balance at December 31, 1999 22,960,597 22,961 6,246,508 (25,000) (5,674,376) 570,093
Shares exchanged from pools (See Note 4) 1,528,369 1,528 (1,528) --
Private placement offering, net 1,524,651 1,525 898,715 900,240
Proceeds received from stock subscriptions 25,000 25,000
Shares issued in settlement of debt
(Alphabet Media) 53,333 53 46,987 47,040
Shares issued for services - consultants 22,105 22 25,978 26,000
Shares issued for services (National
Securities) 5,170 5 7,333 7,338
Shares issued for services (Quinn Emanuel) 27,633 27 30,645 30,672
Shares issued in settlement of legal matter
(Benning and Fields) 21,365 21 23,310 23,331
Shares issued in settlement (Marshall
Redding) 274,508 275 172,666 172,941
Shares issued for bridge loan (Les Dube) 526,556 527 251,973 252,500
Warrants issuable for bridge loan (Laguna
Pacific) 250,000 250,000
Shares issued to Larry Horwitz for
consulting services 666,667 667 499,333 500,000
Net loss for the year ended
December 31, 2000 (3,874,017) (3,874,017)
------------ ------------ ------------ ------------ ------------ ------------
Balance at December 31, 2000 27,610,954 27,611 8,451,920 -- (9,548,393) (1,068,862)
Conversion of debt to equity, related
Party, including conversion feature
expense 4,000,000 4,000 388,001 392,001
Shares issued in exchange for
consulting services 334,704 335 21,136 21,471
Net loss for the six months ended
June 30, 2001 (1,505,488) (1,505,488)
------------ ------------ ------------ ------------ ------------ ------------
Balance at June 30, 2001 (unaudited) 31,945,658 $ 31,946 $ 8,861,057 $ -- $(11,053,881) $ (2,160,878)
============ ============ ============ ============ ============ ============
THEHEALTHCHANNEL.COM, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
For the
period since
For the six months ended June 30, inception to
2001 2000 June 30, 2001
------------ ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
NET LOSS $ (1,505,488) (1,215,861) $(11,053,881)
ITEMS RECONCILING NET LOSS TO CASH
USED BY OPERATING ACTIVITIES:
Depreciation 543,859 165,225 1,012,919
Loss on disposal of segment 99,250
Interest expense 361,164 691,999
Noncash expenses from stock issuances 445,568 274,656 5,541,800
Settlement of litigation 300,000
CHANGES IN OPERATING ASSETS AND LIABILITIES:
Accounts receivable -- -- 3,147
Inventory -- -- 83,077
Software development costs -- (34,500) --
Prepaid expenses (16,669) 121,850 (206,689)
Deposits (5,200) (3,852) (11,649)
Accounts payable and accrued expenses (167,992) 136,386 447,797
------------ ------------ ------------
Total adjustments 1,160,730 659,765 7,961,651
------------ ------------ ------------
Net cash used by operating activities (344,758) (556,096) (3,092,230)
------------ ------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Loans receivable -- (42,000) --
Payments to acquire property and equipment -- (35,396) (65,083)
------------ ------------ ------------
Net cash used for investing activities -- (77,396) (65,083)
------------ ------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment for asset transfer -- -- (26,329)
Stock subscribed 119,200 25,000 119,200
Proceeds from (payments on) loans, including
related parties 251,180 -- 676,180
Proceeds from issuance of capital stock, net -- 662,480 2,416,313
------------ ------------ ------------
Net cash provided by (used for) financing activities 370,380 687,480 3,185,364
------------ ------------ ------------
NET INCREASE (DECREASE) IN CASH 25,622 53,988 28,051
CASH, beginning of period 2,429 92,237 --
------------ ------------ ------------
CASH, end of period $ 28,051 $ 146,225 $ 28,051
============ ============ ============
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Non-cash consideration from debt and equity transactions $ 806,732 $ 274,656 $ 6,806,133
============ ============ ============
Conversion of debt to equity $ 200,000 $ -- $ 200,000
============ ============ ============
Proceeds from loan payable paid directly to Horwitz and Beam
from Laguna Pacific on behalf of the Company $ -- $ -- $ 100,000
============ ============ ============
Acquisition of website technology and related assets $ -- $ -- $ 947,835
============ ============ ============
THEHEALTHCHANNEL.COM, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2001
(1) BASIS OF PREPARATION
GENERAL
With headquarters in Newport Beach, California, thehealthchannel.com
(formerly Innovative Tracking Solutions Corporation or "IVTX") is a
comprehensive health information Internet portal that offers a one-step access
point for consumers and professionals who want to explore a broad array of
health topics. The portal currently indexes other Internet health and
health-related sites, has direct links with online health-care information
service centers and provides detailed coverage of medical conditions. Consumers
may access a global library of health-care information while searching for
products and services. The site offers a complete Internet portal for
state-of-the-art continuing medical education for professionals.
The Company was incorporated under the laws of the State of Delaware on
September 4, 1996.
INTERIM FINANCIAL STATEMENTS
The accompanying financial statements include all adjustments (consisting
of only normal recurring accruals) which are, in the opinion of management,
necessary for a fair presentation of the results of operations for the periods
presented. Interim period results for the six months ended June 30, 2001, are
not necessarily indicative of the results to be expected for the year ending
December 31, 2001. These financial statements should be read in conjunction with
the financial statements included in the annual report of thehealthchannel.com,
Inc. (the "Company") on Form 10-KSB for the year ended December 31, 2000.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
PROPERTY AND EQUIPMENT
Property and equipment are stated at cost. Expenditures for maintenance and
repairs are charged to earnings as incurred, whereas, additions, renewals, and
betterments are capitalized. When property and equipment are retired or
otherwise disposed of, the related cost and accumulated depreciation are removed
from the respective accounts, and any gain or loss is included in operations.
Depreciation is computed using the straight-line method over the estimated
useful lives of the related assets.
During the quarter ended March 31, 2001, management determined that the
useful life of the website technology and related software to be approximately
two years, and accordingly, accelerated the amortization of the website
technology and related software. This change in estimate increased the
depreciation and amortization expense by an additional $400,000 during the six
months ended June 30, 2001. Based on this change in estimate, the website
technology and related software has been fully amortized by June 2001.
DEVELOPMENT STAGE ENTERPRISE
The Company is a development stage company as defined in Statement of
Financial Accounting Standards No. 7, "Accounting and Reporting by Development
Stage Enterprises." The Company is devoting substantially all of its present
efforts to establish a new business, which is unrelated to the business of
Innovative Tracking Solutions Corporation ("IVTX"), and its planned principal
operations have not yet commenced. All losses accumulated since inception of
thehealthchannel.com have been considered as part of the Company's development
stage activities. The operations of IVTX in 1999 are presented as discontinued
operations as a result of the transfer of its assets and liabilities to a
private company.
NET LOSS PER SHARE
The Company has adopted Statement of Financial Accounting Standard No. 128,
Earnings per Share ("SFAS No. 128"), which is effective for annual and interim
financial statements issued for periods ending after December 15, 1997. Net loss
per share has been computed using the weighted average number of shares
outstanding. Common stock equivalents have been excluded since their inclusion
would reduce loss per share.
Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
THE COMPANY
thehealthchannel.com, Inc., formerly known as Innovative Tracking Solutions
Corporation (the "Company") was incorporated in Delaware on September 4, 1996.
It operates a consumer-based health super site (http://www.thehealthchannel.
com).
On April 16, 1999, the Company transferred all of its assets and
liabilities based on majority stockholder approval to a newly formed private
company. The Company's plan of operations following the transfer of assets and
liabilities was to seek and complete a merger or acquisition transaction with a
small or medium-sized enterprise which desired to become or remain a public
corporation.
On July 28, 1999, the Company was successful in finding an appropriate
acquisition candidate and, pursuant to its bylaws and general Delaware corporate
law, the Company acquired certain assets of Biologix International, Ltd.,
consisting primarily of thehealthchannel.com website and related technology in
exchange for the controlling interests of the Company. Restricted common shares,
representing the majority controlling interests held by the directors of the
Company, were transferred.
In connection with this change of control, the Company's name was changed
to thehealthchannel.com, Inc. on July 28, 1999. The Acquisition closed on July
28, 1999 (the "Acquisition").
With headquarters at 5000 Birch Street, Suite 4000, Newport Beach,
California, thehealthchannel.com is a comprehensive health information Internet
portal that offers a one-step access point for consumers and professions who
want to explore a broad array of health topics. Consumers may access a global
library of health-care information while searching for products and services.
The site offers a complete Internet portal for state-of-the-art continuing
medical education for professionals.
RESULTS OF OPERATIONS
SIX AND THREE MONTHS ENDED JUNE 30, 2001 AS COMPARED TO SIX AND THREE MONTHS
ENDED JUNE 30, 2000
REVENUES
We are a development stage company. Revenues for the six months ended June 30,
2001 of $47,919 was derived from programming fees and affiliate advertising
revenue as compared to $8 for the six months ended June 30, 2000. Revenues for
the three months ended June 30, 2001 of $11,742 was derived from programming
fees and affiliate advertising revenue as compared to $8 for the three months
ended June 30, 2000.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES/OPERATING EXPENSES
Selling, general and administrative expenses amounted to $1,553,407 for the six
months ended June 30, 2001 as compared to $1,215,869 for the same period in
2000. This included depreciation and amortization expense of $543,859 in 2001 as
compared to $165,225 in 2000, consulting and professional fees of $131,132 as
compared to $463,880 in 2000, interest expense of $374,914 as compared to $0 in
2000. In the aggregate, in comparing the six month period in 2001 to 2000,
operating expenses increased primarily due to the acceleration of the
amortization of the website and related costs and interest costs arising from
beneficial conversion feature from conversion of debt to equity, and decreases
in consulting, professional fees and website costs arising from managements
effort to cut certain costs.
Selling, general and administrative expenses amounted to $742,331 for the three
months ended June 30, 2001 as compared to $518,238 for the same period in 2000.
This included depreciation and amortization expense of $259,449 in 2001 as
compared to $84,087 in 2000, consulting and professional fees of $56,134 as
compared to $125,452 in 2000, interest expense of $198,250 as compared to $0 in
2000. In the aggregate, in comparing the three month period in 2001 to 2000,
operating expenses increased primarily due to the acceleration of the
amortization of the website and related costs and interest costs arising from
beneficial conversion feature from conversion of debt to equity, and decreases
in consulting, professional fees and website costs arising from managements
effort to cut certain costs.
During the quarter ended March 31, 2001, management determined that the useful
life of the website technology and related software to be approximately two
years, and accordingly, accelerated the amortization of the website technology
and related software. This change in estimate increased the depreciation and
amortization expense by an additional $400,000 for the period ended June 30,
2001 or $200,000 per quarter. The website technology and related software has
now been fully amortized.
LOSS FROM OPERATIONS
The Company incurred a loss from operations of $1,505,488 and $730,589 for the
six and three months ended June 30, 2001 as compared to $1,215,861 and $518,230
for the six and three months ended June 30, 2000, respectively.
NET LOSS
The Company had a net loss of $1,505,488 or $0.05 per share for the six months
ended June 30, 2001 as compared to $1,215,861 or $0.05 per share during the same
period in 2000.
The Company had a net loss of $730,589 or $0.03 per share for the three months
ended June 30, 2001 as compared to $518,230 or $0.02 per share during the same
period in 2000.
LIQUIDITY AND CAPITAL RESOURCES
Since our inception, we have primarily funded our capital requirements
through private equity infusions. Commencing in September of 1999 and closing in
August 2000, we conducted a private offering, to accredited investors only, of
units, each unit consisting of one share of our common stock and one warrant
exercisable for a term of two years. All shares purchased in this offering, as
well as all shares underlying warrants purchased in this offering, have
piggyback registration rights which have been included in the Form SB-2/A. The
Form SB-2?A went effective in May 2001. As adjusted for our one for three
reverse split, we originally priced this offering at $2.25 per unit with a $2.25
exercise price on the warrants. However, the price of our publicly traded stock
dropped precipitously since the beginning of this private offering and we
subsequently offered the units at lower prices.
We received a loan in the amount of $250,000 from Laguna Pacific Partners
L.P., a Delaware limited partnership. This loan is made pursuant to a secured
note that bears interest at the rate of 6% and is payable on February 3, 2001.
The due date of this loan has been further extended to November 1, 2001. The
loan is secured by all of our assets. In consideration for making this loan to
us, Laguna Pacific Partners received a warrant for common stock equal to the
quotient of $250,000 divided by the closing bid of our stock immediately
preceding the effective date of this prospectus. The term of this warrant is
five years and the exercise price is $1 in the aggregate. The warrant agreement
contains terms, which increase the number of shares underlying the warrants
commencing February 1, 2001 at the rate of 10% per month, compounding on a
monthly basis, until the effective date of our registration statement. The
number of shares registered under the registration statement on Form SB-2/A
includes the monthly increase for February, March and April 2001, the date of
effectiveness.
On August 18, 2000, we received a loan in the amount of $250,000 from Les
Dube and Irene Dube. This loan was made pursuant to a note, which bores interest
at the rate of 6% and was payable on the earlier of February 18, 2001 or the
effective date of the prospectus. An agreement has been reached with Les Dube
and Irene Dube to repay the principal amount of the loan with shares of common
stock. This loan was issued in consideration for 526,556 shares of common stock
in 2000. These shares have been registered in the registration statement on Form
SB-2/A, and, upon repayment of this loan, these shares are to be retained by Les
Dube. On the effective date of the registration statement on Form SB-2/Am Les
Dube may sell these shares.
During the six months ended June 30, 2001, the Company obtained working
capital loans from Bob Ludovise, a related party, in the amount of $185,000 and
in June 2001, Bob Ludovise converted his loan payable balance of $200,000 to
equity or approximately 4 million restricted shares, for which, the price per
share was determined at 70% of the trading fair value at the date of conversion.
This conversion gave rise to an interest expense which has been recorded in the
accompanying financial statements.
At June 30, 2001, the Company had outstanding current liabilities of
$2,116,305, of which, $1,399,446 has been approved by the Board of Directors to
be settled by issuance of stock. The remaining balance consists of accrued
professional fees, officer compensation, general overhead costs, and loans
payable of approximately $384,000. All officers of the Company have agreed to
defer their compensation until such time as the Company has the financial
ability to pay compensation. It is anticipated that loans payable will be repaid
from online and wireless revenues.
We recognize that the company must generate additional resources to enable
it to continue operations. Our plans include the sale of additional equity and
debt securities to various private equity funds ranging from $1,000,000 to
$15,000,000. In addition, with infusion of capital from equity funding, we plan
to generate significant revenues resulting in positive cash flows by year-end.
However, no assurance can be given that we will be successful in raising
additional capital. Further, there can be no assurance, assuming we successfully
raise additional funding, that we will achieve profitability or positive cash
flow. If management is unable to raise additional capital and expected
significant revenues do not result in positive cash flow, we will not be able to
meet our obligations and will have to cease operations.
The Company does not believe that inflation has had a significant impact on
its operations since inception of the Company.
FUTURE PLAN OF OPERATION
The company's overall plan of operations for the next 12 months include
significant website development in four primary areas:
a) Further develop, promote and increase product offerings in its
industry leading "Anywhere, Anytime (TM)" mobile and wireless
strategy. Thehealthchannel.com was a first time mover in the health
sector with this technology application.
b) Broaden overall content offerings in the areas of general health
content and delivery of health goods and services.
c) Deliver a number of "deep vertical" products in specific health
topics.
d) Implement the business-to-business revenue generating products
covering a number of health areas including some unique products not
currently in the marketplace.
The company's overall plan of operation also includes completion of
strategic acquisitions for the purposes of revenue/profit enhancement, content
development, and increased traffic to the website.
We are currently conducting product research and development in the areas
of general health content, broadening and strengthening our health information
delivery, as well as conducting research and development in the areas of premier
health product offerings (deep verticals) and mobile and wireless communication.
In addition we will continue to develop its business-to-business goods and
services products.
We recently purchased (through the inclusion of our new operations center
lease) the necessary infrastructure to grow and reduce our operational costs by
bringing a majority of our software development in-house.
We expect to add approximately 5-10 new employees in this fiscal year.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In management's opinion, there are no material litigation matters pending
or threatened against the Company.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULT UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
None.
(b) Reports on Form 8-K
None.
SIGNATURES
In accordance with Section 12 of the Securities Exchange Act of 1934, the
Registrant caused this amended quarterly report to be signed on its behalf by
the undersigned, thereunto duly authorized.
THEHEALTHCHANNEL.COM, INC.
Dated: August 20, 2001 /s/ Donald Shea
------------------------------------
By: Donald Shea
Its: Chief Executive Officer, President,
Chairman of the Board