-----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, UxaNCO7jU8o52DA9p39WMFIvEpjYkgSyHfMh2Z4pKe00RcFNFEFTfYnRNI2MXM9Z 8Fp5wVtE8t1OBOk0Fzvb/g== 0000932440-04-000224.txt : 20040520 0000932440-04-000224.hdr.sgml : 20040520 20040520170021 ACCESSION NUMBER: 0000932440-04-000224 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20040331 FILED AS OF DATE: 20040520 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MEDJET INC CENTRAL INDEX KEY: 0000932265 STANDARD INDUSTRIAL CLASSIFICATION: SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841] IRS NUMBER: 223283541 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-11765 FILM NUMBER: 04821933 BUSINESS ADDRESS: STREET 1: 1090 KING GEORGE POST RD STREET 2: STE 301 CITY: EDISON STATE: NJ ZIP: 08837 BUSINESS PHONE: 7327383990 MAIL ADDRESS: STREET 1: 1090 KING GEORGES POST ROAD STREET 2: SUITE 301 CITY: EDISON STATE: NJ ZIP: 08837 10QSB 1 form10qsb_926292v2.txt FORM 10-QSB ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (Mark One) |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2004 OR |_| 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: 1-11765 MEDJET INC. (Name of Small Business Issuer as Specified in its Charter) DELAWARE 22-3283541 (State or Other Jurisdiction of (I.R.S. Incorporation or Organization) Employer Identification No.) 1535 COLES AVENUE MOUNTAINSIDE, NJ 07092 (Address of Principal Executive Offices) 908 233 4677 (Issuer's Telephone Number, Including Area Code) address and phone number changed from 1090 KING GEORGES POST ROAD SUITE 301 EDISON, NJ 08837 732 738 3990 (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) 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 |_| As of March 31, 2004, 3,901,431 shares of Common Stock, par value $.001 per share, were outstanding. Transitional Small Business Disclosure Format: Yes |_| No |X| ================================================================================ 1 Part l - FINANCIAL INFORMATION Item 1. FINANCIAL STATEMENTS MEDJET INC. (A Development Stage Company) Condensed Interim Balance Sheet March 31, 2004 (Unaudited) ASSETS Current Assets: Cash and cash equivalents $ 2,656 Prepaid expenses 16,066 ---------- Total Current Assets 18,722 ---------- Property and Equipment - less accumulated depreciation of $426,796 20,035 Patents and Trademarks - less accumulated amortization of $71,931 223,518 Security deposits 4,837 ---------- Total Assets $ 267,112 ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued liabilities $ 402,533 Notes payable - Officer 205,700 ---------- Total Liabilities 608,233 ---------- Stockholders'Equity: Common stock, $.001 par value, 30,000,000 shares authorized, 3,935,220 shares issued and 3,901,431 shares outstanding 3,935 Preferred stock, $.01 par value, 1,000,000 shares authorized, 10,400 shares designated as Series B Convertible Preferred issued and outstanding 104 Additional paid-in capital 7,985,298 Accumulated deficit (including deficit accumulated during development stage of $9,833,429 of which $1,556,204 was applied to additional paid-in capital upon conversion from an "S" to a "C" corporation) (8,328,758) Less: Treasury stock, 33,789 shares, at cost (1,700) ---------- Total Stockholders' Equity (341,121) ---------- Total Liabilities and Stockholders' Equity $ 267,112 ========== See notes to the condensed interim financial statements. 2 MEDJET INC. (A Development Stage Company) Condensed Interim Statements of Operations For The Three Months Ended March 31, 2004 and 2003 And The Period From December 16, 1993 (Date of Inception) to March 31, 2004 (Unaudited) Period from Three Months Ended December 16, March 31, 1993 (Inception) to ------------------ March 31, 2004 2003 2004 --------- -------- -------------- Revenues: Revenue 25,000 - 4,909,303 --------- --------- -------------- Total revenues 25,000 - 4,909,303 --------- --------- -------------- Expenses: Research, development, general and administrative 212,424 194,000 16,312,113 --------- --------- -------------- Total expenses 212,424 194,000 16,312,113 --------- --------- -------------- Loss from Operations (187,424) (194,000) (11,402,810) Other Income (Expense): Merger Option Income - - 500,000 Net Interest Income (Expense) (3,099) (1,016) 239,142 Total Other Income (Expense) - - 6,772 --------- --------- -------------- (3,099) (1,016) 745,914 --------- --------- -------------- Loss Before Income Tax (190,523) (195,016) (10,656,896) Provision for (Benefit - (1,020) (819,420) from) Income Tax --------- --------- -------------- Net Loss (190,523) (193,036) (9,837,476) Dividends on Preferred Stock - - 184,923 --------- --------- -------------- Net Loss Attributable to Common Shareholders $(190,523) $(196,036) (10,022,399) =========== ========== ============== Loss per share: Basic $ (0.05) $ (0.05) $ (2.94) =========== ========== ============== Weighted average shares used to compute net loss per share: Basic 3,901,431 3,901,431 3,407,469 =========== =========== ============= See notes to the condensed interim financial statements. 3 MEDJET INC. (A Development Stage Company) Condensed Interim Statements of Cash Flows For The Three Months Ended March 31, 2004 and 2003 And The Period From December 16, 1993 (Date of Inception) to March 31, 2004 (Unaudited) For the Three Period from Months Ended December 16, March 31, 1993 (Inception)to ------------------- 2004 2003 March 31, 2004 ---------- -------- --------------- Cash Flows from Operating Activities $ ( 4,672) $(107,542) $ (8,079,516) Cash Flows from Investing Activities - ( 2,430) (954,195) Cash Flows from Financing Activities 6,499 - 9,036,367 ---------- -------- --------------- Net Increase (Decrease) in Cash and Cash Equivalents 1,827 (109,972) 2,656 Cash and Cash Equivalents - Beginning of Period 829 409,689 - ---------- -------- --------------- Cash and Cash Equivalents - End of Period $ 2,656 299,717 $ 2,656 ---------- -------- --------------- Supplemental Disclosures of Cash Flow Information: Cash paid for: Income taxes $ - $ 1,020 $ 1,860 ========== ======== =============== Interest expense $ - $ 1,814 $ 82,343 ========== ======== =============== See notes to the condensed interim financial statements. 4 MEDJET INC. (A DEVELOPMENT STAGE COMPANY) NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS NOTE A - NATURE OF ORGANIZATION AND BASIS OF PRESENTATION: (1) NATURE OF ORGANIZATION: Medjet Inc. (the "Company") was incorporated in the State of Delaware on December 16, 1993, and is in the development stage. The Company has been engaged in research and development of medical technology, utilizing small-diameter, liquid microjets moving at various speeds above supersonic, depending on the specific application, with an emphasis on surgical technology and equipment. (2) BASIS OF PRESENTATION: The Condensed Interim Financial Statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted as permitted by such rules and regulations. The Condensed Interim Financial Statements included herein reflect, in the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the results for the interim periods. The results of operations for the three-month period ended March 31, 2004 are not necessarily indicative of results to be expected for the fiscal year ending December 31, 2004. NOTE B - NET INCOME (LOSS) PER SHARE: Basic net income (loss) per share, in accordance with the provisions of Financial Accounting Standards No. 128, "Earnings Per Share," is computed by dividing net income (loss) by the weighted average number of shares of Common Stock outstanding during the period. Diluted net income per share includes additional dilution from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants outstanding and the conversion of preferred stock. Common Stock equivalents for the three months ended March 31, 2004 and 2003, and for the period from December 16, 1993 (inception) to March 31, 2004, have not been included in the computation of dilutive loss per share as the effect would be anti-dilutive. 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION THIS QUARTERLY REPORT ON FORM 10-QSB, INCLUDING ANY DOCUMENTS THAT ARE INCORPORATED BY REFERENCE, CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION 21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. GENERALLY, SUCH STATEMENTS ARE INDICATED BY WORDS OR PHRASES SUCH AS "ANTICIPATES," "EXPECTS," "INTENDS," "BELIEVES" AND SIMILAR WORDS AND PHRASES. SUCH STATEMENTS ARE BASED ON THE COMPANY'S CURRENT EXPECTATIONS AND ARE SUBJECT TO RISKS, UNCERTAINTIES AND ASSUMPTIONS. CERTAIN OF THESE RISKS ARE DESCRIBED OR REFERRED TO BELOW. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE ANTICIPATED, EXPECTED, INTENDED OR BELIEVED. GENERAL The Company has been a development stage company, which has developed proprietary technology based on microjets, and has developed derivative devices and surgical equipment, which use waterjet technology. The Company generated revenues of $25,000 in the three-month period ended March 31, 2004, and is currently funding its sustaining operations with the proceeds of a loan it has received from Dr. Eugene I. Gordon, as further described below. The proceeds of this loan are expected to fund the Company's working capital requirements through November 2004; with no expected capital expenditure, however, due to the unavailability of financial resources, the Company's research and development activity has ended until alternate financial arrangements can be made. The report of independent certified public accountants to the Company's financial statements for the year ended December 31, 2003 contains an explanatory paragraph that there is substantial doubt as to the Company's ability to continue as a going concern. In August 2001, the Company, VISX, Inc. ("VISX"), a U.S. provider of equipment for the vision correction procedure known as the Laser Ablation System for In-situ Keratomileusis ("LASIK"), and a subsidiary of VISX ("Merger Sub") entered into an Agreement and Plan of Merger and Reorganization (the "Merger Agreement"), which provided, among other things, for the potential merger of Merger Sub with and into the Company, at VISX's option. In connection with the execution of the Merger Agreement, the Company and VISX also entered into a separate one-year research and development agreement. VISX had the option to terminate the Merger Agreement at any time during the one-year period following the date of its execution for any or no reason. In August 2002, the Company and VISX amended various agreements in connection with the proposed merger of Merger Sub with and into the Company. The Merger Agreement and the research and development agreement were both extended to October 17, 2002, and then extended again to July 17, 2003. In November of 2002, however, VISX elected to exercise their right to terminate the Merger Agreement, and on November 11, 2002, VISX paid the Company the $250,000 termination fee as provided in the amended Merger Agreement. The research and development agreement was also terminated. After the termination of the Merger Agreement, the Company initially sought another strategic partner, purchaser or licensee of its microjet microkeratome. However, during 2002, the number of LASIK procedures fell well below the anticipated rates and the prospects for 2003 and the years beyond were not encouraging. The price of LASIK procedures had also seen serious degradation. The Company believed that other companies with which it might have pursued a strategic relationship involving its microkeratome shared a similar view of the market and as a result, the Company discontinued its microkeratome development efforts until additional financing could be procured and focused its efforts on developing treatment of dental caries using its microjet technique. The Company has, however, recently reviewed the vision correction market, developed a new 6 marketing strategy for its microjet microkeratome and changed its main focus back to the vision correction market, although the Company's research and development activity is dormant due to unavailability of financial resources. The Company has renewed its efforts to procure additional financing to continue to develop its microjet microkeratome and ophthalmic devices. The Company anticipates that funds available under the Company's line of credit from Dr. Eugene I. Gordon, as described below, will be sufficient to support the Company's operations through November 2004 given the dormant state of the company and the fact that it has no paid employees. However, the Company will require additional financing in order to maintain operations beyond that date. The Company has no current arrangements with respect to any additional financing. Consequently, there can be no assurance that any additional financing will be available to the Company on commercially reasonable terms or at all. There can be no assurance that the proceeds obtained by the Company as a result of such financing would be sufficient to fund the Company's development efforts or that such efforts to develop products for dentistry, skin treatment or ophthalmology would be successful. APPLICATIONS OF THE COMPANY'S TECHNOLOGY The Company believes that microjets can bring new surgical capability and performance to the clinic or operating room and may become the standard of care for the treatment of several diseases and conditions. The Company intends to develop additional product applications provided adequate funds become available. DENTISTRY Based on the Company's product-development criteria, one of the areas identified for development by the Company is treatment of dental caries. The dental caries is a progressive, infected and decayed portion of a tooth. An opening in the enamel allows the dentin (calcareous material similar to but harder and denser than bone that composes the principal mass of a tooth) to be infected. Unchecked, the decayed region enlarges, potentially leading to nerve involvement, pain, temperature sensitivity, and ultimately loss of the structural integrity of the tooth. The standard treatment for dental caries is to remove the decayed, infected portion within the dentin and to fill the resulting cavity. The removal process involves drilling out the affected area of the tooth until only sound dentin remains. More recently, dental lasers have come into limited use for removing the caries. Not all regions of the tooth are readily accessed by the drill or laser. Based on its limited experiments and observations to date, the Company has developed a patented technology whereby a fine beam of high-speed water quickly and quietly flushes out the dental carries through small holes drilled through the tooth enamel and dentine. No more than 2 oz. of fluid is used and the process takes seconds. The drilling process is free of vibration, heat, sound and smell and, the Company believes, is painless in most cases. Based on the Company's limited experiments and observations to date, the drilling process does not chip or crack the structure of the tooth. The holes created during this process should allow access to a cavity within the tooth containing carious material. The high-speed water beam then quickly washes out every trace of the carious material without damaging the dentin surrounding the cavity. The cavity is then ready for filling through the initial access hole. The Company believes that the special filling material that can be used as an alternate to the conventional amalgam will be longer lasting and more esthetically pleasing. Based on its limited experiments and observations to date with a prototype device, the Company believes that a dental procedure based on this technology is feasible. This equipment could be more cost effective than both old drill and burr technology and new laser technology. The same equipment can be used to 7 clean teeth of tartar, plaque and calculus and allow various procedures in periodontistry. Although the Company's experiments with dental procedures have been limited, and its prototype is in the early stages of development and has not yet been confirmed on live patients, the Company believes that the treatment, if perfected, may require no anesthesia in many circumstances and that the associated time and cost saving and the perceived advantages of the microjet technique over traditional treatments are potentially significant. Possible other advantages include reduced vibration and noise. An important feature of the Company's microjet technique is that the volume of dentin removed is greatly reduced compared to drilling, limiting the potential for nerve involvement and preserving as much as possible the integrity of the tooth. Hence, the capability may be called "microdentistry." Although a preliminary associated handpiece and pump have been developed and constructed, the Company has not yet constructed a complete working prototype of a microjet dental device. Based on its own internal market study, the Company believes that a significant market potentially exists for this procedure and product. The Company will pursue other uses of the microjet, such as the treatment of skin conditions and pain through a non-contact, broad area, subdermal injection of drugs, when funding is available. OPHTHALMOLOGY The Company's ophthalmic devices relate to surgery of the cornea to achieve correction of vision error. The cornea is the clear window that provides most of the focusing power of the vision system of the eye. Vision error occurs when the refractive power of the unaccomodated eye differs from what is needed to provide a sharply focused image on the retina for an object at 20 feet. Vision errors are currently treated primarily by eyeglasses, contact lenses or surgery, all of which compensate for the existing vision error. The shape of the cornea may be surgically modified to produce a change in the refractive power of the eye. This is the basis for the well-known laser-based vision correction procedure known as LASIK. The Company has developed a marketing strategy for its microjet microkeratome and ophthalmic devices and has renewed its efforts to procure additional financing to continue to develop microjet microkeratome and ophthalmic devices. The Company has also completed the redesign of the microjet handpiece so that it would be suitable for human ophthalmologic testing. However, no hardware has been built due to a absence of funding. RESULTS OF OPERATIONS The Company has not yet initiated sales of its products. The Company generated $25,000 of revenues during the three-month period ended March 31, 2004, and generated no revenues for the comparable period in 2003. The revenues generated during the three-month period ended March 31, 2004 resulted from a single payment for consultancy by Dr. Eugene Gordon. As a result of the termination of the research and development agreement with VISX, the Company currently has no source of revenues. Total expenses during the three months ended March 31, 2004 increased by $18,424 (9%) to $212,424 from $194,000 for the comparable period of 2003. This increase was primarily due to a large write off of abandoned patents. 8 Net interest expense for the three months ended March 31, 2004 was $(1,016) compared to $(1,845) for the comparable period of 2003. These increases resulted principally from decreased interest income resulting from a decrease in cash and cash equivalents and the continued interest issued for the loan to the company from Dr. Eugene Gordon. LIQUIDITY AND CAPITAL RESOURCES As of March 31, 2004, the Company's cash and cash equivalents was $2,656 and its working capital was $(589,511). During March 1999, Eugene I. Gordon, Ph.D., the Company's Chairman of the Board, Chief Executive Officer, Secretary and Treasurer, agreed to make available to the Company an unsecured line of credit of up to $250,000. Under the terms of this agreement, the Company issued warrants to Dr. Gordon to purchase up to 50,000 shares of the Company's unregistered common stock and agreed to pay a market interest rate on amounts borrowed. As of March 31, 2004, the amount owed to Dr. Gordon was $205,700 with interest paid monthly. Principal amounts outstanding under this loan are due and payable on January 26, 2009. In 1998, the State of New Jersey enacted legislation allowing emerging technology and/or biotechnology companies to sell their unused New Jersey net operating loss carryover ("NOLs") and research and development tax credits ("R&D Credits") to corporate taxpayers in New Jersey. Under this program, the New Jersey Department of Taxation certifies annual NOLs and R&D Credits, which may be sold to third parties. Generally, corporations operating in New Jersey are subject to a 9% tax on net operating profits. Companies meeting certain criteria and that had NOLs may apply for certificates for 9% of their cumulative state certified NOLs and 3% of their R&D Credits. The total value of the certificates for all companies applying is limited to a fixed amount, as established by statute. As a result, the value of the certificates issued is usually less than the total NOLs and R&D Credit amounts for which applications are submitted, depending on the number of companies applying for such certificates and the amounts claimed. Any remaining amounts of NOLs and R&D Credits exceeding the face value of the certificates issued can be carried over into subsequent years. Whatever certificates are received may be sold for a percentage of their face value, typically between 80% and 86%. The buyers of these certificates are then entitled to use these certificates at 100% of their face value to reduce their own New Jersey state income tax payments. Companies are permitted to apply for such certificates beginning in June with respect to NOLs and R&D Credits relating to prior fiscal years. The New Jersey Department of Taxation generally takes about six months to process these applications and issue the certificates. As a result, the Company generally does not sell its eligible NOLs and R&D Credits relating to a given year until near the end of the following year. To the extent that the NOLs and R&D Credits are sold, they will be unavailable to the Company to offset future New Jersey state income taxes. As of December 31, 2002, the Company sold all of its available NOLs and R&D Credits. The Company will not be eligible to receive any certificates in 2004. As shown in the accompanying financial statements, the Company incurred net losses of $190,523 during the three-month period ended March 31, 2004. As of March 31, 2004, the Company's cash and cash equivalents was $2,656. In light of the current market capitalization of the Company, it would be highly dilutive to the Company's current stockholders if the Company were to obtain the level of financing necessary to fund the Company's business plans and operation from an equity investor. However, management believes that the Company's technology is extremely valuable. The Company has identified three areas of importance: (1) dentistry, (2) the treatment of skin conditions, obesity, and 9 pain through a non-contact, broad area, subdermal injection of drugs and (3) vision correction surgery. SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES GENERAL The Company's discussion and analysis of its financial condition and results of operations are based upon the Company's financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to intangible assets, income taxes, contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. PATENTS Costs incurred in connection with patent applications, principally legal and consulting fees, are capitalized. Once a patent is granted, these costs are amortized over the lesser of the life of the patent, generally 20 years, or the estimated future economic life of the technology underlying the patent. Once the amortization period begins, management continues to evaluate the estimated future economic life of the patents. Should it be determined that a shorter life is estimated, than the original estimated future life, the amortization period is adjusted accordingly. Should a patent application be abandoned or not approved, the costs incurred in connection with the application are expensed. At March 31, 2004, unamortized patent costs amounted to $223,518 and are included in the balance sheet under the caption Patents and Trademarks (trademark costs are $1,540). REVENUE RECOGNITION The Company had $25,000 in revenues for the three months ended March 31, 2004. The Company's revenues derived from consulting performed by Dr. Eugene Gordon on behalf of the Company. The Company had no revenues during the three months ended March 31, 2003. ADDITIONAL FACTORS THAT MAY AFFECT FUTURE RESULTS NEED FOR CURRENT FINANCING. To fund its current operations, the Company has borrowed funds from the $250,000 unsecured line of credit, which Dr. Eugene I. Gordon agreed to make available to the Company. Since the close of the previous fiscal quarter, the Company has borrowed an additional $7,700 under the loan. The amount outstanding under the loan as of March 31, 2004 totaled $205,700. Without additional funding, however, the amount currently borrowed under the loan will not be sufficient to carry the Company through the close of the year, and the Company will require additional financing in order to maintain any operations beyond May 2004. No such operations are planned. 10 QUALIFICATION IN THE REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS RELATING TO THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN; ACCUMULATED DEFICIT AND HISTORY OF OPERATING LOSSES; ANTICIPATED FUTURE LOSSES. The report of independent certified public accountants on the Company's audited financial statements for the year ended December 31, 2003 contained an explanatory paragraph stating that there is a substantial doubt as to the Company's ability to continue as a going concern. The audited financial statements did not include any adjustments that might result from the outcome of such uncertainty. The Company incurred operating losses of $190,523 and $196,036 for the three months ended March 31, 2004 and 2003, respectively, and, at March 31, 2004, had an accumulated deficit of $8,328,758. The Company expects that it will continue operating at a loss until, at the earliest, the Company generates sufficient revenues to offset the cost of its operations, including its continuing product development efforts. The Company's future level of revenues and potential profitability depend on many factors, including the Company's ability to obtain additional financing. There can be no assurance that the Company will experience any significant growth in revenues (or even sustain historic revenue levels) in the future or that the Company will ever achieve profitability. DISCONTINUANCE OF RESEARCH AND DEVELOPMENT. Since February 2003, the Company has concentrated its research and development activities on dental procedures. However, due to the lack of funding, the company's research and development has been discontinued as of August 2003. The Company currently has no paid employees. Once financing for the Company's continued operations and research and development activities is procured, the Company expects to resume research and development and may pursue either dental or ophthalmic research or both, depending on the uses for which funds are made available under the terms of such financing. DEVELOPMENT STAGE COMPANY. The Company is in the development stage and its business remains subject to all of the risks inherent in the establishment of a new business enterprise. The likelihood of success of the Company must be considered in light of the problems, expenses, complications and delays frequently encountered in connection with the formation of a new business, the development of new products, the competitive and regulatory environment in which the Company is operating and the possibility that its activities will not result in the development of any commercially viable products. There can be no assurance that the Company's activities will ultimately result in the development of commercially saleable or useful products. The Company has not sold any products. NO SALES REVENUES; UNCERTAIN PROFITABILITY. No sales revenues are expected until, and only if, the Company begins commercial marketing of the Company's dental, microkeratome, or other products or the Company sells or licenses its technology to a third party. Commercial marketing of the Company's products in the U.S. will be contingent upon obtaining FDA permission or approval and possibly the approval of other governmental agencies. Regulatory clearance procedures are often extremely time consuming, expensive and uncertain. Accordingly, there can be no assurance that the Company will be successful in obtaining marketing clearance of its devices or that, if such devices are cleared, it will be able to generate sufficient revenues to operate on a profitable basis. DEPENDENCE UPON A KEY OFFICER; ATTRACTION AND RETENTION OF KEY PERSONNEL. The business of the Company is highly dependent upon the active participation of its founder, Chairman of the Board, Chief Executive Officer, Secretary and Treasurer, Dr. Eugene I. Gordon, age 73. The loss or unavailability to the Company of Dr. Gordon would have a material adverse effect on the Company's business prospects and potential earning capacity. The recruitment of skilled scientific personnel is critical to the Company's success. There can be no assurance that it will be able to continue to attract and retain such personnel in the future. In addition, the Company's expansion into areas and activities requiring additional expertise, clinical testing, governmental approvals, production and marketing of the Company's products (which would be required if the Company does not enter into licensing arrangements) is expected to place 11 increased demands upon the Company's financial resources and corporate structure. The Company expects to satisfy such demands, if they arise, through the hiring of additional management personnel and the development of additional expertise by existing management. NO ASSURANCE OF FDA AND OTHER REGULATORY APPROVAL OR CLEARANCE. The Company's proposed medical devices are subject to regulation by the FDA under the Federal Food, Drug and Cosmetics Act (the "FD&C Act") and implementing regulations. Pursuant to the FD&C Act, the FDA regulates, among other things, the development, manufacture, labeling, distribution, and promotion of medical devices in the United States. The process of obtaining required regulatory clearances or approvals can be time-consuming and expensive, and compliance with the FDA's Good Manufacturing Practices regulations and other regulatory requirements can be burdensome. Moreover, there can be no assurance that the required regulatory clearances will be obtained, and such clearances, if obtained, may include significant limitations on the uses of the product in question. In addition, changes in existing regulations or guidelines or the adoption of new regulations or guidelines could make regulatory compliance by the Company more difficult in the future. The failure to comply with applicable regulations could result in fines, delays or suspensions of clearances, seizures or recalls of products, operating restrictions and criminal prosecutions, and would have a material adverse effect on the Company. UNCERTAINTY OF MARKET ACCEPTANCE; RELIANCE ON SINGLE TECHNOLOGY. Acceptance of the Company's proposed products is difficult to predict and will require substantial marketing efforts and the expenditure of significant funds by the Company. There can be no assurance that the products will be accepted by the medical community once they are permitted or approved. Market acceptance of the Company's products will depend in large part upon the Company's ability to demonstrate the operational advantages, safety and cost-effectiveness of its products compared to other comparable instruments and techniques. Failure of the products to achieve market acceptance will have a material adverse effect on the Company's financial condition and results of operations. At present, the Company's products (although still in development stage) are its dental waterjet and microkeratomes. The Company expects that these products will be, if and when commercially available, its sole products for an indefinite period of time. The Company's present narrow focus on particular products makes the Company vulnerable to the development of superior competing products and changes in technology that could eliminate the need for the Company's products. There can be no assurance that significant changes in the foreseeable future in the need for the Company's products or the desirability of those products will not occur. DEPENDENCE ON PATENTS AND PROPRIETARY RIGHTS. The Company's success will depend in part on whether it successfully obtains and maintains patent protection for its products, preserves its trade secrets and operates without infringing the proprietary rights of third parties. The Company has sought to protect its proprietary interest in its products by applying for patents in the United States and corresponding patents abroad. In September 2003, the Company was issued its ninth patent from the United States Patent and Trademark Office. The patent is for a `Method and Process for Generating a High Repetition Rate Pulsed Microjet.' The Company currently has nine issued U.S. patents and 20 U.S. and international patents pending. There can be no assurance that any other patents will be issued to the Company, that any patents owned by or issued to the Company, or that may be issued to the Company in the future, will provide a competitive advantage or will afford protection against competitors with similar technology, or that competitors of the Company will not circumvent, or challenge the validity of, any patents issued to the Company. There also can be no assurance that any patents issued to or licensed by the Company will not be infringed upon or designed around by 12 others or would prevail in a legal challenge, that others will not obtain patents that the Company will need to license or design around, that the microkeratomes or any other potential product of the Company will not inadvertently infringe upon the patents of others, or that others will not manufacture the Company's patented products upon expiration of such patents. There can be no assurance that existing or future patents of the Company will not be invalidated. Additionally, patent applications filed in foreign countries and patents granted in such countries are subject to laws, rules and procedures, which differ from those in the United States. Patent protection in such countries may be different from patent protection provided by United States laws and may not be as favorable to the Company. Also, there can be no assurance that the Company's non-disclosure agreements and other safeguards will protect its proprietary information and trade secrets or provide adequate remedies for the Company in the event of unauthorized use or disclosure of such information, or that others will not be able to independently develop such information. As is the case with the Company's patent rights, the enforcement by the Company of its non-disclosure agreements can be lengthy and costly, with no guarantee of success. There can be no assurance that the Company's program of patent protection, internal security of its proprietary information and non-disclosure agreements will be sufficient to protect the Company's proprietary technology from competitors. INFRINGEMENT CLAIMS; LITIGATION. The Company's competitors and potential competitors may intentionally infringe the Company's patents. Third parties may also assert infringement claims or other claims against the Company. The defense and prosecution of patent suits and other lawsuits are both costly and time-consuming, even if the outcome is favorable to the Company. If any of the Company's products are found to infringe upon the patents or proprietary rights of another party, the Company may be required to obtain licenses under such patents or proprietary rights of such other party. No assurance can be given that any such licenses would be made available on terms acceptable to the Company, if at all. If required licenses were to be unavailable, the Company could be prohibited from using, marketing or selling certain technology and devices and such prohibition could have a material adverse effect on the Company. Third parties may seek damages that exceed the Company's insurance coverage or that are not insured. If the Company sustains damages greater than its insurance coverage, or actions are brought for damages that are not insured, there could be a material adverse effect on the Company's cash available to maintain its current operations and carry out its business plans. The Company is currently involved in ongoing patent litigation and has recently been named as a defendant, among others, in an action initiated by a former employee of the Company, each as described under Part II, Item 1. "Legal Proceedings." COMPETITIVE TECHNOLOGIES, PROCEDURES AND COMPANIES. The Company is engaged in a rapidly evolving field. The Company believes there are companies, both public and private, universities and research laboratories engaged in research activities relating to dental drilling and cavity treatment. The Company believes that competition from these companies, universities and laboratories will be intense and will increase over time. The Company's potential products for dental drilling and cavity treatment will not compete with other presently existing forms of treatment for dental disorders, including mechanical drills and burrs, as well as other technologies under development. The main current technology, involving more than 90% of the practice, is the use of mechanical drills and burrs. There are expensive laser devices for removing caries and air abrasion systems for drilling holes. Neither have been well accepted. Based on experiments, the Company believes that its proposed dental waterjet system will be able to drill holes and remove areas of enamel and dentin, as well as clean out caries and remove tartar and plaque. There can be no assurance that the Company's competitors will not succeed in developing technologies, procedures or 13 products that are more effective or economical than those being developed by the Company or that would render the Company's technology and proposed products obsolete or noncompetitive or that would allow for the bypassing of the Company's patents. Furthermore, in connection with the commercial sale of its products, the Company will also be competing with respect to manufacturing efficiency and marketing capabilities, areas in which the Company has no experience. NO MANUFACTURING EXPERIENCE; DEPENDENCE ON THIRD PARTIES. Assuming additional financing is procured and the Company is able to continue its microjet development efforts, the Company may seek to undertake the manufacture and marketing of its microjet products on a limited scale. However, it would need to pursue other possible arrangements for larger-scale manufacturing, marketing and distribution. To the extent the Company does not enter into such arrangements, it will need to engage in the manufacture and marketing of its products. Manufacturing will consist of purchasing existing parts, having parts formed by vendors, incoming inspection, assembly, qualification testing and packaging, i.e., virtual manufacturing. The Company has no volume manufacturing capacity or experience in manufacturing medical devices or other products. To be successful, the Company's proposed products must be manufactured in commercial quantities in compliance with regulatory requirements at acceptable costs. Production in clinical or commercial-scale quantities will involve technical challenges for the Company. If the Company is unable or elects not to pursue collaborative arrangements with other companies to manufacture certain of its potential products, the Company will be required to establish manufacturing capabilities. Establishing its own manufacturing capabilities would require significant scale-up expenses and additions to facilities and personnel. There can be no assurance that the Company will be able to obtain necessary regulatory approvals on a timely basis or at all. Delays in receipt of or failure to receive such approvals or loss of previously received approvals would have a material adverse effect on the Company. There can be no assurance that the Company will be able to develop clinical or commercial-scale manufacturing capabilities at acceptable costs or enter into agreements with third parties with respect to these activities. The Company's dependence upon third parties for the manufacture of its products may adversely affect the Company's profit margins and the Company's ability to develop and deliver such products on a timely basis. Moreover, there can be no assurance that such parties will perform adequately, and any failures by third parties may delay the submission of products for regulatory approval, impair the Company's ability to deliver products on a timely basis, or otherwise impair the Company's competitive position and any such failure could have a material adverse effect on the Company. NO MARKETING OR SALES EXPERIENCE. If the Company does not enter into license or distribution agreements with respect to its products, and assuming additional financing is procured and the Company is able to continue its operations, it may undertake the marketing and sale of its own products. In such event, the Company intends to market and sell its products in the United States and certain foreign countries, if and when regulatory approval is obtained, through a direct sales force or a combination of a direct sales force and distributors or other strategic partnerships. The Company currently has no marketing organization and has never sold a product. Establishing sufficient marketing and sales capability will require significant resources. There can be no assurance that the Company will be able to recruit and retain skilled sales management, direct salespersons or distributors, or that the Company's marketing or sales efforts will be successful. To the extent that the Company enters into distribution arrangements for the sale of its products, the Company will be dependent on the efforts of third parties. There can be no assurance that such efforts will be successful. RISK OF PRODUCT LIABILITY LITIGATION; POTENTIAL UNAVAILABILITY OF INSURANCE. The testing, manufacture, marketing and sale of medical devices entails the inherent 14 risk of liability claims or product recalls. As a result, the Company faces a risk of exposure to product liability claims and/or product recalls in the event that the use of its future potential products are alleged to have caused injury. There can be no assurance that the Company will avoid significant liability in spite of the precautions taken to minimize exposure to product liability claims. Prior to the commencement of clinical testing, the Company intends to procure product liability insurance. After any commercialization of its products, the Company will seek to obtain an appropriate increase in its coverage. There can, however, be no assurance that adequate insurance coverage will be available at an acceptable cost, if at all. Consequently, a product liability claim, product recall or other claims with respect to uninsured liabilities or in excess of insured liabilities could have a material adverse effect on the Company. SURGICAL RISKS. There can be no assurance that the Company's products will be successful in supporting dental drilling and cavity treatment. As with all surgical procedures, the procedures for which the Company's products are intended entail certain inherent risks, including defective equipment or human error, infection or other injury. Such injury could expose the Company to product liability or other claims. The Company believes competing products have the same risks and have experienced a small number of these situations without undue impact on the commercial prospects of such products. There can be no assurance that the Company's product liability insurance, in effect from time to time, will be sufficient to cover any such claim in part or in whole. Any such claim could adversely impact the commercialization of the Company's products and could have a material adverse effect on the Company. ITEM 3. CONTROLS AND PROCEDURES Under the supervision and with the participation of its management, including its principal executive officer and principal financial officer, the Company conducted an evaluation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(c) promulgated under the Securities Exchange Act of 1934. Based on their evaluation, the Company's principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures are effective as of the end of the period covered by this report. There have been no changes in our internal controls that have materially affected or are reasonably likely to materially affect these controls subsequent to the date of the evaluation referenced in the previous paragraph. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS NJIT LITIGATION On April 21, 1998, the Company was served with a complaint by the New Jersey Institute of Technology ("NJIT") commencing a lawsuit in the United States District Court for the District of New Jersey ("U.S. District Court"). Each of the Company, Eugene I. Gordon, Ph.D. (the Company's Chairman of the Board, Chief Executive Officer, Secretary and Treasurer), a former employee of the Company, certain patent law firms and an individual patent attorney were named as defendants. The complaint alleged that the defendants, with deceptive intent, failed to name a NJIT professor and/or NJIT research associate as a co-inventor on the Company's U.S. Patent No. 5,556,406 on "Corneal Template and Surgical Procedure for Refractive Correction" (the "Patent") and breached fiduciary duties and contractual obligations owed to NJIT. The complaint sought unspecified monetary damages from the Company and an order directing that the 15 Company's Patent (and corresponding foreign patents and patent applications) be assigned and transferred to NJIT. It further sought an order that NJIT has not infringed any claims of the Patent and a declaratory judgment that all of the Company's claims under the Patent are invalid and unenforceable against NJIT. Prior to being served with the complaint by NJIT, the Company and Dr. Gordon had filed a complaint, on March 27, 1998, against NJIT in the Superior Court of the State of New Jersey, Middlesex County, seeking a declaratory judgment that NJIT had no ownership or other interest in the patent rights to the Company's Patent and seeking unspecified monetary damages. In October 1998, the lawsuit brought in U.S. District Court by NJIT was dismissed on jurisdictional grounds. In April 1999, NJIT commenced a second action in U.S. District Court based on the same allegations NJIT had made in its April 1998 complaint. In June 2000, the motion filed by the Company to dismiss the action against the Company, Dr. Gordon and the former employee of the Company, was granted by the U.S. District Court. In July 2000, NJIT appealed this decision to the Federal Circuit Court of Appeals. On October 1, 2002, the Federal Circuit Court of Appeals ruled that RES JUDICATA did not apply to the 1999 lawsuit, and therefore reversed the decision of the U.S. District Court and remanded the lawsuit back to the U.S. District Court for proceedings on the merits. On May 22, 2000, the Superior Court of New Jersey granted the Company's Motion for Summary Judgment, dismissing NJIT's claims to ownership of the Patent. On June 30, 2000, NJIT filed a Motion for Reconsideration of the Superior Court's ruling. The Motion for Reconsideration was later dismissed. The Company subsequently filed a second Motion for Summary Judgment to dismiss additional claims that the Company, Dr. Gordon and the third party defendants, among other things, breached fiduciary duties. This motion was based on the ruling by the Superior Court judge overturning NJIT's claims of ownership and was heard by a new judge, who decided to await the outcome of NJIT's appeal of the U.S. District Court's dismissal of its lawsuit. The NJIT litigation in the U.S. District Court completed a final phase of depositions requested by NJIT. The Company filed a Motion for Summary Judgment in December 2003. we expect that oral arguments will be heard May 19, 2004 and the Company is optimistic about the result. However, if the Company is not successful in its defense of the lawsuit, the Company believes that the impact on it resulting from a finding on the merits in favor of NJIT would not be material. The Company has also filed with the U.S. District Court a request to drop damage claims in the case before the U.S. District Court. This will make it possible for the Company to pursue the damage portion of its lawsuit against NJIT in the New Jersey Superior Court. ACTION BROUGHT BY FORMER EMPLOYEE In May 2003, the Company, Dr. Gordon (the Company's Chairman of the Board, Chief Executive Officer, Secretary and Treasurer) and one of its current directors, VISX and other parties were named as defendants in a lawsuit by a former employee of the Company filed in the Superior Court of New Jersey. The related complaint alleges, among other things, that defendants violated the New Jersey Law Against Discrimination, tortiously interfered with a contract between the plaintiff and the Company, tortiously interfered with the prospective economic gain of the plaintiff and intentionally inflicted emotional distress on the plaintiff. This lawsuit is in its earliest stages. While the Company believes it has meritorious defenses, it cannot predict the ultimate outcome of this lawsuit. 16 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. 32.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (b) Reports on Form 8-K None. 17 SIGNATURE 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 thereunto duly authorized. Dated: May 20, 2004 MEDJET INC. /S/ EUGENE I. GORDON ------------------------ Eugene I. Gordon, Ph.D. Chairman of the Board, Chief Executive Officer, Secretary and Treasurer (Principal Executive Officer) 18 EX-31 2 ex31-1_926200.txt EXHIBIT 31.1 Exhibit 31.1 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Eugene I. Gordon, Ph.D., certify that: 1. I have reviewed this quarterly report on Form 10-QSB of Medjet Inc.; 2. Based on my knowledge, this quarterly 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 quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15e and 15d-15e) for the registrant and we have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervisor 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 quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and as of the end of the period covered by this report based on such evaluation; and c) disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies and material deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 By: /S/ EUGENE I. GORDON ---------------------------- Eugene I. Gordon, Ph.D. Chief Executive Officer (Principal Executive Officer) EX-31 3 ex31-2_926200.txt EXHIBIT 31.2 Exhibit 31.2 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Eugene I. Gordon, Ph.D., certify that: 1 I have reviewed this quarterly report on Form 10-QSB of Medjet Inc.; 2. Based on my knowledge, this quarterly 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 quarterly report; 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly 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 quarterly report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15e and 15d-15e) for the registrant and we have: a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervisor 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 quarterly report is being prepared; b) evaluated the effectiveness of the registrant's disclosure controls and procedures and as of the end of the period covered by this report based on such evaluation; and c) disclosed in this quarterly report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function): a) all significant deficiencies and material deficiencies in the design or operation of internal controls over financial reporting which are reasonably likely adversely affect the registrant's ability to record, process, summarize and report financial information; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: May 20, 2004 By: /S/ EUGENE I. GORDON ---------------------------- Eugene I. Gordon, Ph.D. Chief Executive Officer (Principal Financial Officer) EX-32 4 ex32-1_926200.txt EXHIBIT 32.1 Exhibit 32.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Medjet Inc. (the "Company") on Form 10-QSB for the quarter ended March 31, 2004 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Eugene I. Gordon, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. By: /S/ EUGENE I. GORDON ------------------------------ Eugene I. Gordon, Ph.D. Chief Executive Officer (Principal Executive Officer) May 20, 2004 A signed original of this written statement required by Section 906 has been provided to Medjet Inc. and will be retained by Medjet Inc. and furnished to the Securities and Exchange Commission or its staff upon request. EX-32 5 ex32-2_926200.txt EXHIBIT 32.2 Exhibit 32.2 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Medjet Inc. (the "Company") on Form 10-QSB for the quarter ended March 31, 2004 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Eugene I. Gordon, Ph.D., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss. 1350, as adopted pursuant to ss. 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. By: /S/ EUGENE I. GORDON ------------------------------ Eugene I. Gordon, Ph.D. Chief Executive Officer (Principal Financial Officer) May 20, 2004 A signed original of this written statement required by Section 906 has been provided to Medjet Inc. and will be retained by Medjet Inc. and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----