SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FORM 10QSB
FOR THE QUARTER ENDED JUNE 30, 2003
COMMISSION FILE NUMBER 333-51058
Advanced Healthcare Technologies, Inc.
Formally Email Mortgage, Inc.
(Exact name of Registrant as specified in its charter)
Colorado 84-1565820
(State or other jurisdiction of (I.R.S. Employer I.D.)
incorporation or organization)
124 Colts Neck Road,
Farmingdale NJ 07727
Registrant's Telephone Number, including area code
732-938-9672
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 twelve months, 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 the close of the period covered by this
report: 20,512,625 shares.
2
Advanced Healthcare Technologies, Inc.
Index
Part I Financial Information Page Number
Item 1.
Balance Sheet 3
Statements of Loss and Accumulated Deficit 4
Statements of Cash Flows 5
Footnotes 6
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations 7
Part II None
Signatures 10
3
Advanced Healthcare Technologies, Inc.
(A Development Stage Company)
Balance Sheet
June 30, 2003
(Unaudited)
ASSETS
------
Current assets: 2003
----------
Cash $ 93
Advances to affiliated company 5,380
----------
Total current assets 5,473
----------
$ 5,473
==========
STOCKHOLDERS' EQUITY
--------------------
Current liabilities:
Note payable $ 37,500
Accrued expenses 37,523
----------
Total current liabilities 75,023
Loans from shareholders 693,964
Stockholders' equity:
Preferred stock, $.01 par value, 10,000,000 shares
authorized, no shares issued and outstanding -
Common stock, $.001 par value,-
100,000,000 shares authorized, 20,512,625 shares
issued and outstanding 20,513
Additional paid in capital 1,528,819
(Deficit) accumulated during development stage (2,312,846)
----------
(763,514)
----------
$ 5,473
==========
See accompanying notes to financial statements.
4
Advanced Healthcare Technologies, Inc.
(A Development Stage Company)
Statements of Operations
Three Months Ended June 30, 2003 and 2002
For the Period From Inception (March 28, 2000) to June 30, 2003
(Unaudited)
Period From
Three Months Ended Inception To
June 30, June 30,
2003 2002 2003
---------- ---------- ----------
Revenue:
Loan processing fees $ - $ 1,100 $ 4,350
Interest income - 1,065 3,302
---------- ---------- ----------
- 2,165 7,652
Operating expenses:
Loan processing costs - 500 7,050
Professional fees 3,000 1,275 90,526
Consulting services 246,609 - 956,490
Web site design expenses 92 - 23,592
Investor relations costs 6,829 - 659,589
Rent 1,600 475 13,275
Purchased research & development - - 525,000
Other expenses 22,798 830 44,976
---------- ---------- ----------
280,928 3,080 2,320,498
---------- ---------- ----------
(Loss from operations) and
net (loss) $ (280,928) $ (915) $(2,312,846)
========== ========== ===========
Per share information:
Basic and diluted (loss)
per common share $ (0.02) $ (0.00) $ (0.18)
========== ========== ==========
Weighted average shares
outstanding 18,645,958 12,507,000 12,846,971
========== ========== ==========
See accompanying notes to financial statements.
5
Advanced Healthcare Technologies, Inc.
(A Development Stage Company)
Statements of Cash Flows
Three Months Ended June 30, 2003 and 2002
For the Period From Inception (March 28, 2000) to June 30, 2003
(Unaudited)
Period From
Three Months Ended Inception To
June 30, June 30,
2003 2002 2003
---------- ---------- ----------
Net income (loss) $ (280,928) $ (915) $(2,312,846)
Adjustments to reconcile net income to net
cash provided by operating activities:
Services provided for common stock 215,282 - 771,182
Technology acquired for common stock - 525,000
Expenses contributed to capital by
shareholder - - - 8,500
Services provided for shareholder advances 41,204 693,964
Changes in assets and liabilities:
Increase (decrease) in accounts payable (8,672) 1,250 -
Increase (decrease) in accrued espenses (32,477) - 37,523
---------- ---------- ----------
Total adjustments 215,337 1,250 2,036,169
---------- ---------- ----------
Net cash provided by (used in)
operating activities (65,591) 335 (276,677)
Cash flows from financing activities:
Common stock sold for cash - - 253,150
Proceeds from note payable 25,000 - 37,500
Repayment of related party loans - - (70,325)
Advances to affiliated company - (20,000) (55,380)
Repayment of advances to affiliated company 28,000 - 50,000
Loans from related party - - 61,825
---------- ---------- ----------
Net cash provided by (used in)
financing activities 53,000 (20,000) 276,770
---------- ---------- ----------
Increase (decrease) in cash (12,591) (19,665) 93
Cash and cash equivalents,
beginning of period 12,684 143,114 -
---------- ---------- ----------
Cash and cash equivalents,
end of period $ 93 $ 123,449 $ 93
========== ========== ==========
See accompanying notes to financial statements.
6
Advanced Healthcare Technologies, Inc.
Notes to Unaudited Financial Statements
Basis of presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions incorporated in
Regulation SB of the Securities and Exchange Commission. Accordingly,
they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting
of normal recurring adjustments and accruals) considered necessary for
a fair presentation have been included.
The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the full year. The
accompanying financial statements should be read in conjunction with
the Company's financial statements for the year ended March 31, 2003.
Basic loss per share was computed using the weighted average number of
common shares outstanding.
The Company had an outstanding advance balance due to shareholders of
$699,786 at June 30, 2003.
During the quarter ended June 30, 2003 the Company issued 4,305,625
shares of its common stock for services provided. The shares were
valued at $.05 per share, which represents the fair value of the stock
and is based on quoted market prices for the stock on the date the
issuances were approved. Two million of the shares issued were to two
individuals who are no longer affiliated with the Company and who did
not, in the opinion of the Company, provide the services agreed to with
the Company. The Company is attempting to recover the shares.
7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Trends and Uncertainties. Demand for Advanced Healthcare products and
services will be dependent on, among other things, market acceptance of
the Advanced Healthcare's concept, the quality of its services, and
general economic conditions, which are cyclical in nature. Inasmuch as
a major portion of Advanced Healthcare's activities will be the receipt
of revenues from our services, Advanced Healthcare's business
operations may be adversely affected by Advanced Healthcare's
competitors and prolonged recessionary periods.
Capital and Source of Liquidity. All of the initial working capital
has been obtained from the sale of common shares to the current
officers, directors and principal shareholder and advances from
shareholders of ($699,786) as of June 30, 2003. We do not have the
liquidity to fund our operations and will require additional capital.
We currently have little working capital and will rely on further loans
to continue operations until completion of the current public offering.
Advanced Healthcare's requires these additional loans to expand our
current and strategic business plans. We do not have any funding
arrangements with any third party or any affiliates.
For the three months end June 30, 2003, we received the proceeds from a
note payable of $25,000 and proceeds from the repayment of advances to
an affiliated company of $28,000. As a result, net cash provided by
financing activities was $53,000 for the three months ended June 30,
2003.
For the three months ended June 30, 2002, we made advances to an
affiliated company of $20,000 resulting in net cash used in financing
activities of $20,000.
For the three months ended June 30, 2003 and 2003, we did not pursue
any investing activities.
On a long-term basis, liquidity is dependent on continuation and
expansion of operation and receipt of revenues, additional infusions of
capital, and debt financing. Advanced Healthcare believes that
additional capital and debt financing in the short term will allow
Advanced Healthcare to increase its marketing and sales efforts and
thereafter result in increased revenue and greater liquidity in the
long term. However, there can be no assurance that Advanced Healthcare
will be able to obtain additional equity or debt financing in the
future, if at all.
Results of Operations. Since inception, Advanced Healthcare has not
received any significant revenues from operations.
For the three months ended June 30, 2003, we received no revenue. We
had a net loss of $280,928 for the three months ended June 30, 2003.
Operating expenses for that same period were $280,928 consisting of
professional fees of $3,000, consulting services of $246,609, web site
expenses of $92, rent of $1,600, investor relations costs of $6,829 and
other expenses of $22,798.
For the three months ended June 30, 2003, we received revenue of only
$1,100 from loan processing fees and interest income of $1,065. We
had a net loss of $915 for the three months ended June 30, 2002.
Operating expenses for that same period were $3,080 consisting of loan
processing costs of $500, professional fees of $1,275, rent of $475,
investor relations costs of $475 and other expenses of $830.
Plan of Operation. Advanced Healthcare is in the development stage
and has not conducted any significant operations to date or received
significant operating revenues. We will not need to conduct any
research and development regarding our business plan.
During the quarter ended June 30, 2003, Advanced Healthcare issued
4,305,625 common shares for services provided. Two million of the
common shares issued were to two individuals who are no longer
affiliated with Advanced Healthcare and who did not, in the opinion of
Advanced Healthcare, provide the services agreed to. Advanced
Healthcare is attempting to recover the common shares.
We do not expect to purchase any plant or significant equipment.
Advanced Healthcare may experience problems; delays, expenses, and
difficulties sometimes encountered by an enterprise in Advanced
Healthcare's stage of development, many of which are beyond Advanced
Healthcare's control. These include, but are not limited to,
unanticipated problems relating to the development of the system,
manufacturing costs, production and marketing problems, additional
costs and expenses that may exceed current estimates, and competition.
Controls and Procedures. The Chief Executive Officer and the Chief
Financial Officer of the Company have made an evaluation of the
disclosure controls and procedures relating to the quarterly report on
Form 10QSB for the period ended June 30, 2003 as filed with the
Securities and Exchange Commission and have judged such controls and
procedures to be effective as of June 30, 2003 (the evaluation date).
There have not been any significant changes in the internal controls of
the Company or other factors that could significantly affect internal
controls relating to the Company since the evaluation date.
9
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 hereunto duly authorized.
Date: June 30, 2003
By:/s/Daniel Motsinger
---------------------------
Daniel Motsinger
Interim Chairman, Chief Executive
Officer and President
CERTIFICATIONS
I, Daniel Motsinger, certify that:
1. I have reviewed this quarterly report on Form 10QSB of Advanced
Healthcare Technologies, Inc.
2. Based on my knowledge, the annual report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other
financial information included in this annual report, fairly present,
in all material respects, the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this annual report;
4. The registrant's other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:
(a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is
being prepared;
(b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this annual report (the "Evaluation Date"); and
(c) presented in this annual report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons
performing the equivalent function):
(a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability
to record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
(b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
(6) The registrant's other certifying officers and I have indicated
in this annual report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: September 3, 2003
/s/Daniel Motsinger
----------------------
Daniel Motsinger
Chief Executive Officer
CERTIFICATIONS
I, Daniel Starczewski, certify that:
1. I have reviewed this quarterly report on Form 10QSB of Advanced
Healthcare Technologies, Inc.
2. Based on my knowledge, the annual report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this annual report;
3. Based on my knowledge, the financial statements, and other
financial information included in this annual report, fairly present,
in all material respects, the financial condition, results of
operations and cash flows of the registrant as of, and for, the periods
presented in this annual report;
4. The registrant's other certifying officers and I are responsible
for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:
(a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this annual report is
being prepared;
(b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this annual report (the "Evaluation Date"); and
(c) presented in this annual report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons
performing the equivalent function):
(a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability
to record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
(b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
(6) The registrant's other certifying officers and I have indicated
in this annual report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: September 3, 2003
/s/Daniel Starczewski
----------------------
Daniel Starczewski
Chief Financial Officer