-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BaT0JiLSe8/WmCD5oKXqbqiF15mo6sw3Vmu+ij+LD9qxAWQQ85neslIqqg4OZxi6 wtE9DOwPNcYr08avLO1yTA== 0000839087-99-000006.txt : 19990415 0000839087-99-000006.hdr.sgml : 19990415 ACCESSION NUMBER: 0000839087-99-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990228 FILED AS OF DATE: 19990414 FILER: COMPANY DATA: COMPANY CONFORMED NAME: VASOMEDICAL INC CENTRAL INDEX KEY: 0000839087 STANDARD INDUSTRIAL CLASSIFICATION: ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845] IRS NUMBER: 112871434 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-18105 FILM NUMBER: 99593191 BUSINESS ADDRESS: STREET 1: 180 LINDEN AVENUE CITY: WESTBURY STATE: NY ZIP: 11590 BUSINESS PHONE: 5169974600 MAIL ADDRESS: STREET 1: 150 MOTOR PARKWAY STREET 2: SUITE 408 CITY: HAUPPAUGE STATE: NY ZIP: 11788 FORMER COMPANY: FORMER CONFORMED NAME: FUTURE MEDICAL PRODUCTS INC /DE/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: FUTURE MEDICAL PRODUCTS INC /NY/ DATE OF NAME CHANGE: 19920506 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q [X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended February 28, 1999 [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _______________ to ______________ Commission File Number: 0-18105 VASOMEDICAL, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 11-2871434 - -------------------------------------------------------------------------------- (State or other jurisdiction of (IRS Employer Identification Number) incorporation or organization) 180 Linden Ave., Westbury, New York 11590 - -------------------------------------------------------------------------------- (Address of principal executive offices) Registrant's Telephone Number (516) 997-4600 ------------- Number of Shares Outstanding of Common Stock, $.001 Par Value, at April 12, 1999 50,402,687 ---------- Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the 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 [ ] --- -- Vasomedical, Inc. and Subsidiary INDEX PART I - FINANCIAL INFORMATION Item 1 - Financial Statements: Page ---- Consolidated Condensed Balance Sheets as of February 28, 1999 and May 31, 1998 (Unaudited) 3 Consolidated Condensed Statements of Operations for the Nine and Three Months Ended February 28, 1999 and 1998 (Unaudited) 4 Consolidated Condensed Statement of Changes in Stockholders' Equity for the Nine Months Ended February 28, 1999 (Unaudited) 5 Consolidated Condensed Statements of Cash Flows for the Nine Months Ended February 28, 1999 and 1998 (Unaudited) 6 Notes to Consolidated Condensed Financial Statements 7 Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations 9 PART II - OTHER INFORMATION 12 Vasomedical, Inc. and Subsidiary CONSOLIDATED CONDENSED BALANCE SHEETS (unaudited)
February 28, May 31, 1999 1998 ---- ---- ASSETS CURRENT ASSETS Cash and cash equivalents $1,578,487 $4,367,986 Accounts receivable 451,293 976,341 Inventories 853,134 678,302 Other current assets 151,262 164,826 ------------ ------------ Total current assets 3,034,176 6,187,455 PROPERTY AND EQUIPMENT, net 588,157 352,902 CAPITALIZED COST IN EXCESS OF FAIR VALUE OF NET ASSETS ACQUIRED, net 621,551 781,373 OTHER ASSETS 23,114 23,516 ------------ ------------ $4,266,998 $7,345,246 ------------ ------------ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $707,024 $436,730 Accrued warranty and customer support expenses 297,000 240,000 Accrued professional fees 116,478 225,833 Accrued commissions 144,033 176,553 Dividends payable 149,860 62,137 ------------ ------------ Total current liabilities 1,414,395 1,141,253 ACCRUED WARRANTY COSTS 161,000 334,000 OTHER LONG-TERM LIABILITIES 76,440 117,000 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred stock, $.01 par value; 1,000,000 shares authorized; 175,000 and 225,750 shares at February 28, 1999 and May 31, 1998, respectively, issued and outstanding 1,750 2,258 Common stock, $.001 par value; 110,000,000 shares authorized; 50,402,687 and 48,531,278 shares at February 28, 1999 and May 31, 1998, respectively, issued and outstanding 50,403 48,531 Additional paid-in capital 37,749,483 36,458,155 Accumulated deficit (35,186,473) (30,755,951) ------------ ------------ 2,615,163 5,752,993 ------------ ------------ $4,266,998 $7,345,246 ------------ ------------ The accompanying notes are an integral part of these condensed statements.
Vasomedical, Inc. and Subsidiary CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (unaudited)
Nine months ended Three months ended ----------------------- ----------------------- February 28, February 28, ----------------------- ----------------------- 1999 1998 1999 1998 ---- ---- ---- ---- Revenues Equipment sales $2,007,100 $3,650,080 $1,457,100 $1,625,664 Equipment rentals and services 469,179 205,231 227,079 52,499 ---------- ---------- ---------- ---------- 2,476,279 3,855,311 1,684,179 1,678,163 ---------- ---------- ---------- ---------- Costs and expenses Cost of sales and services 1,164,174 1,063,367 590,384 423,647 Selling, general and administrative 4,014,589 4,175,189 1,366,313 1,668,656 Research and development 470,752 1,279,966 130,989 331,101 Depreciation and amortization 324,559 275,179 122,850 92,863 Interest and financing costs 9,415 1,546 2,078 470 Interest and other income - net (102,101) (132,385) (18,036) (35,780) ---------- ---------- ---------- ---------- 5,881,388 6,662,862 2,194,578 2,480,957 ---------- ---------- ---------- ---------- NET LOSS (3,405,109) (2,807,551) (510,399) (802,794) Deemed dividend on preferred stock (864,000) (857,000) - - Preferred stock dividend requirement (161,413) (69,659) (53,342) (16,720) ---------- ---------- ---------- ---------- LOSS APPLICABLE TO COMMON STOCK $(4,430,522) $(3,734,210) $(563,741) $(819,514) ---------- ---------- ---------- ---------- Net loss per common share (basic and diluted) $(.09) $(.08) $(.01) $(.02) ----- ----- ----- ----- Weighted average common shares outstanding (basic and diluted) 49,025,137 47,689,862 49,614,736 48,235,284 ---------- ---------- ---------- ---------- The accompanying notes are an integral part of these condensed statements.
Vasomedical, Inc. and Subsidiary CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (unaudited)
Total Additional Accum- stock- Preferred Stock Common stock paid-in ulated holders' Shares Amount Shares Amount capital deficit equity ------ ------ ------ ------ ---------- ------------ ---------- Balance at June 1, 1998 225,750 $2,258 48,531,278 $48,531 $36,458,155 $(30,755,951) $5,752,993 Conversion of preferred stock (50,750) (508) 975,882 976 (468) - Deemed dividend on preferred stock 864,000 (864,000) - Preferred stock dividend requirement (161,413) (161,413) Common stock issued in lieu of preferred stock dividends 70,527 71 73,621 73,692 Exercise of warrants 825,000 825 354,175 355,000 Net loss (3,405,109) (3,405,109) ------- ------ ---------- ------- ----------- ------------ ---------- Balance at February 28, 1999 175,000 $1,750 50,402,687 $50,403 $37,749,483 $(35,186,473) $2,615,163 ------- ------ ---------- ------- ----------- ------------ ---------- The accompanying notes are an integral part of this condensed statement.
Vasomedical, Inc. and Subsidiary CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (unaudited)
Nine months ended February 28, ----------------------------- 1999 1998 ---- ---- Cash flows from operating activities Net loss $(3,405,109) $(2,807,551) ----------- ----------- Adjustments to reconcile net loss to net cash used in operating activities Depreciation and amortization 324,559 275,179 Changes in operating assets and liabilities Accounts receivable 525,048 (758,629) Inventory (549,943) 88,772 Other current assets 13,564 (164,382) Other assets 402 (403) Accounts payable, accrued expenses and other current liabilities 185,421 192,685 Other liabilities (213,560) 191,370 ----------- ----------- 285,491 (175,408) ----------- ----------- Net cash used in operating activities (3,119,618) (2,982,959) ----------- ----------- Cash flows from investing activities Purchase of property and equipment (24,881) (23,891) ----------- ----------- Net cash used in investing activities (24,881) (23,891) ----------- ----------- Cash flows from financing activities Proceeds from exercise of options and warrants 355,000 484,463 Proceeds from issuance of preferred stock, net 2,817,900 ----------- ----------- Net cash provided by financing activities 355,000 3,302,363 ----------- ----------- NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (2,789,499) 295,513 Cash and cash equivalents - beginning of period 4,367,986 1,753,004 ----------- ----------- Cash and cash equivalents - end of period $1,578,487 $2,048,517 ----------- ----------- Non-cash investing and financing activities were as follows: Deemed dividend on preferred stock $864,000 $857,000 Issuance of common stock in lieu of preferred dividends 73,692 25,602 Inventories transferred to property and equipment, attributable to operating leases - net 375,111 75,000 The accompanying notes are an integral part of these condensed statements.
Vasomedical, Inc. and Subsidiary NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS February 28, 1999 (unaudited) NOTE A - BASIS OF PRESENTATION The consolidated condensed balance sheet as of February 28, 1999 and the related consolidated condensed statements of operations for the nine- and three-month periods ended February 28, 1999 and 1998, changes in stockholders' equity for the nine-month period ended February 28, 1999 and cash flows for the nine-month periods ended February 28, 1999 and 1998 have been prepared by Vasomedical, Inc. and Subsidiary (the "Company") without audit. In the opinion of management, all adjustments (which include only normal, recurring accrual adjustments) necessary to present fairly the financial position as of February 28, 1999 and for all periods presented have been made. Certain information and footnote disclosures, normally included in financial statements prepared in accordance with generally accepted accounting principles, have been condensed or omitted. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Annual Report on Form 10-K for the year ended May 31, 1998. Results of operations for the periods ended February 28, 1999 and 1998 are not necessarily indicative of the operating results expected or reported for the full year. NOTE B - STOCKHOLDERS' EQUITY On April 30, 1998, the Company completed a second tranche of financing with an accredited investor and issued 175,000 shares of newly created 5% Series C Cumulative Convertible Preferred Stock ("Series C Preferred"), $.01 par value, pursuant to Regulation D under the Securities Act of 1933 at a price of $20 per share, for net cash proceeds of $3,294,000. The Series C Preferred has no voting rights and was convertible into common stock of the Company at an effective conversion price of the lower of (i) $2.08 or (ii) 85% of the average closing bid price of the Company's common stock for the five (5) trading days immediately preceding the conversion date (the "Average Closing Price"), as defined in the Certificate of Designation of the Series C Preferred. In addition, the investor was granted five-year warrants to purchase 413,712 shares of common stock at an exercise price of $2.08 per share. The Company has estimated the value of the deemed dividend, representing the discount resulting from the allocation of proceeds to the beneficial conversion feature and the fair value of the underlying warrants, to approximate $936,000. Such deemed dividend has been recognized from the date of issuance through the date such preferred stock was first convertible (on or about August 15, 1998). Accordingly, the Company recognized a deemed dividend of $275,000 in the fourth quarter of fiscal 1998 and recognized the remaining portion of the deemed dividend of $661,000 in the first quarter of fiscal 1999. Based upon negotiations between the Company and the holder of the Series C Preferred in December 1998 relating to the delayed effectiveness of a registration statement covering the underlying shares of common stock, the conversion price with respect to the Series C Preferred has been reduced to the lower of (i) $2.00 per share, or (ii) 81% of the Average Closing Price. The Company has estimated the incremental value of the deemed dividend, representing the additional discount resulting from the allocation of proceeds to the beneficial conversion feature, to approximate $203,000. Accordingly, the Company recognized this incremental deemed dividend in the second quarter of fiscal 1999. In the first, second and third quarters of fiscal 1999, 9,250 shares, 8,000 shares and 33,500 shares of preferred stock were converted into 167,636 shares, 196,392 shares and 611,854 shares of common stock, respectively. In January 1999, the Company's Board of Directors increased the number of shares authorized for issuance under the Company's 1997 Stock Option Plan by 1,000,000 shares to 2,800,000 shares. In addition, the Board of Directors granted stock options under the plan to directors, officers, employees and consultants to purchase an aggregate of 830,000 shares, 470,000 shares, 313,500 shares, and 150,000 shares of common stock, respectively, at an exercise price of $.875 per share (which represented the fair market value of the underlying common stock at the time of grant). The stock options granted to consultants are contingent upon certain performance criteria. In the third quarter of fiscal 1999, warrants to purchase 825,000 shares of common stock were exercised, aggregating $355,000. Vasomedical, Inc. and Subsidiary NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (continued) February 28, 1999 (unaudited) NOTE C - COMMITMENTS AND CONTINGENCIES Employment Agreements - --------------------- Approximate aggregate minimum annual compensation obligations under active employment agreements at February 28, 1999 are summarized as follows:
Twelve months ended February 28, Amount -------------------------------- ------ 2000 $569,000 2001 498,000 2002 123,000 ---------- $1,195,000 ----------
SEC Investigation - ----------------- In February 1995, the Company received a subpoena duces tecum by the broker-dealer branch of the Northeast Regional Office of the Securities and Exchange Commission ("SEC") requesting certain documents from the Company pursuant to a formal order of private investigation in connection with possible registration and reporting violations. The Company has cooperated with the investigation. As stated in the subpoena, the "investigation is confidential and should not be construed as an indication by the SEC or its staff that any violations of law have occurred, nor should it be interpreted as an adverse reflection on any person, entity or security." The Company is not aware of any activity concerning this investigation since April 1998, and is unable to establish the likelihood of an unfavorable outcome or the existence or amount of any potential loss. Litigation - ---------- In May 1996, an action was commenced in the Supreme Court of the State of New York, Nassau County, against the Company, its directors and certain of its officers and employees for the alleged breach of an agreement to appoint a non-affiliated party as its exclusive distributor of EECP systems. The complaint seeks damages in the approximate sum of $50,000,000, declaratory relief and punitive damages. The Company denies the existence of any agreement, believes that the complaint is frivolous and without merit and is vigorously defending the claims as well as asserting substantial counterclaims. This matter is in its preliminary stages and the Company is unable to establish the likelihood of an unfavorable outcome or the existence or amount of any potential loss. In May 1998, an action was commenced in the New York Supreme Court, Suffolk County, against the Company and other parties. The action seeks damages in the sum of $5,000,000 based upon alleged injuries resulting from the alleged negligence of the defendants in the use of the Company's product. The Company and its insurer believe that the complaint is frivolous and without merit and are vigorously defending the claims. Furthermore, management believes that this action is fully covered by insurance. This matter is in its preliminary stages and the Company is unable to establish the likelihood of an unfavorable outcome or the existence or amount of any potential loss. In February 1999, an action was commenced in the Massachusetts Superior Court, Essex County, against the Company. The action seeks damages in the sum of $1,000,000 based upon an alleged breach of a sales contract. The Company believes that the complaint is frivolous and without merit and is vigorously defending the claims. This matter is in its preliminary stages and the Company is unable to establish the likelihood of an unfavorable outcome or the existence or amount of any potential loss. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF - -------------------------------------------------------------------------- OPERATIONS - ---------- Results of Operations - --------------------- Nine and Three Months Ended February 28, 1999 and 1998 - ------------------------------------------------------ The Company generated revenues from the sale and lease of EECP systems of $2,476,000 and $3,855,000 and $1,684,000 and $1,678,000 for the nine- and three-month periods ended February 28, 1999 and 1998, respectively. The Company incurred net losses of $3,405,000 and $2,807,000 for the nine months ended February 28, 1999 and 1998, respectively (before deducting $864,000 and $857,000, respectively, in deemed dividends on preferred stock which represented the discount resulting from the allocation of proceeds to the beneficial conversion feature and the fair value of the underlying warrants, and $161, 000 and $70,000, respectively, in dividend requirements, in connection with the Company's April 1998 and June 1997 financings). The Company incurred net losses of $510,000 and $803,000 for the three months ended February 28, 1999 and 1998, respectively (before deducting $53,000 and $17,000, respectively, in dividend requirements in connection with the Company's April 1998 and June 1997 financings). The number of cardiology practices and hospitals interested in becoming providers of enhanced external counterpulsation (EECP) has increased following the announcement by the Health Care Financing Administration (HCFA) in February 1999 of its decision to extend Medicare coverage nationally to the Company's noninvasive, outpatient treatment for coronary artery disease. HCFA is the federal agency that administers the Medicare program for 38 million beneficiaries. Interest in EECP therapy has also been spurred by the results of the Company's one-year follow-up quality-of-life outcomes study presented at the American Heart Association (AHA) annual meeting in November 1998 and additional reports presented at the American College of Cardiology annual meeting in March 1999. The number of EECP systems placed in the first three quarters of fiscal 1999 has exceeded that of systems placed in all four quarters of the prior year; however, revenues in the current fiscal year, particularly in the first two fiscal quarters, have been adversely affected by the nature of the commercial arrangements under which those units were placed. The Company expects, especially as a result of HCFA's recent coverage decision, that several placements made so far under rental or fee-for-use arrangements will convert to financed leases or outright sales in the fourth quarter of fiscal 1999, although there can be no assurance that this will occur. Gross margins are dependent on a number of factors, particularly the mix of EECP units sold and rented during the period, the ongoing costs of servicing such units, and by certain fixed period costs, including facilities, payroll and insurance. Gross margins are furthermore affected by the location of the Company's customers and the amount and nature of training and other initial costs required to place the EECP system in service for customer use. Accordingly, the gross margin realized during the current period may not be indicative of future margins. Selling, general and administrative (SGA) expenses for the nine- and three-month periods ended February 28, 1999 and 1998 were approximately $4,015,000 and $4,175,000, and $1,366,000 and $1,669,000, respectively. The $161,000 decrease in SGA expenses for the comparable nine-month period resulted primarily from the decrease in commissions and other related selling expenses as a result of decreased revenues. The $302,000 decrease in SGA expenses for the comparable three-month period resulted primarily from substantial expenditures in the prior period for public relations programs related to the announcement of the aforementioned multicenter study's results and for new promotional and educational materials. Research and development (R&D) expenses decreased $809,000 and $200,000 for the nine and three months ended February 28, 1999 compared to the prior periods. The decreases were the result of significant prior period expenses related to the completion of the Company's multicenter clinical study of EECP (completed in July 1997) and the front-loaded expenses for the development of a new model of the EECP system. Current period expenses relate to the long-term follow-up phase of the multicenter clinical study, i.e., a quality-of-life outcomes study (completed in July 1998), the expansion of the International EECP Patient Registry at the University of Pittsburgh, and the ongoing feasibility study in congestive heart failure, all of which, to some extent, are expected to further affect operating results in fiscal 1999. Liquidity and Capital Resources - ------------------------------- Working capital decreased by $3,426,000 from $5,046,000 at May 31, 1998 to $1,620,000 at February 28, 1999, principally as a result of continuing operating losses. In the third quarter of fiscal 1999, the Company received proceeds of $355,000 from the exercise of warrants. In fiscal 1998, the Company issued an aggregate of 325,000 shares of newly created 5% Series B and Series C Convertible Preferred Stock to one accredited investor at a price of $20 per share, realizing net cash proceeds of $6,112,000. Dividends due on such preferred stock have been, and are expected to be, paid in shares of the Company's common stock. Through February 28, 1999, all of the Series B preferred stock (150,000 shares) have been converted into 2,135,946 shares of the Company's common stock. To date, none of the Series C preferred stock has been converted into common stock. Management believes that its present working capital position at February 28, 1999, along with the ongoing commercialization of the EECP system (including, but not limited to, the conversion of current units under rental or use arrangements to outright sales or financed leases), and possible further proceeds from the exercise of options and warrants, will make it possible for the Company to support its internal overhead expenses and to implement its business plans for the next twelve months. Management will revise its business plans in the event actual revenues deviate from current projections. If the Company's future cash requirements are not adequately generated from the sale and lease of EECP systems, the Company may require infusions of additional capital from equity or debt issuances. Impact of the Year 2000 on Information Systems The Year 2000 issue arises as the result of computer programs having been written, and systems having been designed, using two digits rather than four to define the applicable year. Consequently, such software has the potential to recognize a date using "00" as the year 1900 rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations, including, among other things, a temporary inability to process transactions, send invoices, or engage in similar normal business activities. The Company's sole product is not expected to be affected by Year 2000 as it does not rely on date- sensitive software or affected hardware. The Company's current accounting and other systems were purchased "off-the-shelf". The Company intends to timely update its accounting and other systems which are determined to be affected by Year 2000 by purchasing Year 2000 compliant software and hardware available from retail vendors at reasonable costs. The Company has not yet contacted other companies on whose services the Company depends to determine whether such companies' systems are Year 2000 compliant. If the systems of the Company or other companies on whose services the Company depends, including the Company's customers, are not Year 2000 compliant, there could be a material adverse effect on the Company's financial condition or results of operations. Except for historical information contained herein, the matters discussed are forward-looking statements that involve risks and uncertainties. When used in this report, words such as "anticipate", "believe", "estimate", "expect" and "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. Among the factors that could cause actual results to differ materially are the following: the effect of the dramatic changes taking place in the healthcare environment; the impact of competitive procedures and products and their pricing; unexpected manufacturing problems in foreign supplier facilities; unforeseen difficulties and delays in the conduct of clinical trials and other product development programs; the actions of regulatory authorities and third-party payers in the United States and overseas; uncertainties about the acceptance of a novel therapeutic modality by the medical community; and the risk factors reported from time to time in the Company's SEC reports. VASOMEDICAL, INC. AND SUBSIDIARY -------------------------------- PART II - OTHER INFORMATION --------------------------- ITEM 1 - LEGAL PROCEEDINGS: Previously reported. ITEM 2 - CHANGES IN SECURITIES AND USE OF PROCEEDS: 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: Exhibits: No. 27 Financial Data Schedule Reports on Form 8-K: None In accordance with to the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. VASOMEDICAL, INC. By: /s/ Anthony Viscusi ------------------- Anthony Viscusi President, Chief Executive Officer and Director (Principal Executive Officer) /s/ Joseph A. Giacalone ----------------------- Joseph A. Giacalone Secretary and Treasurer (Principal Financial and Accounting Officer) Date: April 14, 1999 EX-27 2
5 The schedule contains summary financial information extracted from the consolidated condensed financial statements for the nine-months ended February 28, 1999 and is qualified in its entirety by reference to such statements. 9-MOS MAY-31-1999 FEB-28-1999 1,578,487 0 451,293 0 853,134 3,034,176 1,001,292 (413,135) 4,266,998 1,414,395 0 0 1,750 50,403 2,563,010 4,266,998 2,476,279 2,476,279 1,164,174 1,164,174 4,707,799 0 9,415 (3,405,109) 0 (3,405,109) 0 0 0 (3,405,109) (.09) (.09)
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