Form 10QSB for QUEPASA CORP
Form 10QSB for QUEPASA CORP
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14-Aug-2006
Quarterly Report
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Information
This Quarterly Report on Form 10-QSB and the information incorporated by reference may include "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. In particular, we direct your attention to Item 1. Financial Statements, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations and Item 3. Quantitative and Qualitative Disclosures About Market Risk. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in these sections. All statements regarding our expected financial position and operating results, our business strategy, our future business operations and the outcome of any contingencies are forward-looking statements. These statements can sometimes be identified by our use of forward-looking words such as "may," "believe," "plan," "will," "anticipate," "estimate," "expect," "intend" and other phrases of similar meaning. Known and unknown risks, uncertainties and other factors could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Although we believe that our expectations expressed in these forward-looking statements are reasonable, we cannot promise that our expectations will turn out to be correct. Our actual results could be materially different from our expectations.
The following discussion of our financial condition and results of operations for the six months ended June 30, 2006 and 2005 should be read in conjunction with our condensed consolidated financial statements, the notes related thereto, and the other financial data included elsewhere in this Form 10-QSB.
Company Overview
Quepasa.com is the largest and longest-established, bicultural, Hispanic online community. We seek to entertain, enrich, and empower the members of our rapidly growing internet community. Our interactive website delivers content, products, and services to our users in both English and Spanish. We are focusing our business on our online social network which is comprised chiefly of Hispanic and Latino 18-to-34 year olds living in the United States and in Central and South America.
During the second quarter of 2006, we initiated significant changes in our enterprise, including the appointment of an experienced and disciplined Chief Executive Officer, a review and reorientation of our corporate strategy, a complete redesign of our site, the implementation of a branding campaign, the hiring of additional product development, financial, and technical staff, and a revamping of various corporate financial and operating procedures designed to improve internal controls and speed new product introductions. Importantly, we have proactively eliminated or reduced the sale of some products and advertisements that, when fully accounted for, either negatively impacted margins and/or detracted from the brand image we seek to build.
During the second quarter, we launched Quepasa Market Intelligence (QMI), a market research/political polling enterprise. QMI provides real-time access to the opinions of our community members. Through QMI, we intend to conduct paid surveys on behalf of clients that generate data from our members. We intend that the information gleaned from these research projects will assist QMI's clients in making decisions related to product use, brand preferences, and potential voting behavior.
During the second quarter, we generated revenues from three primary sources; pay-for-performance search advertisements, Google AdSense, and third-party banner advertisements on our site. Pay-for-performance search revenue is recognized in the period in which the "click-throughs" occur. "Click-throughs" are defined as the number of times an internet user clicks on an advertisement or search result. Pay-for-performance revenue is recognized when there is evidence that the qualifying transactions have occurred at a set price. Google AdSense revenue is recognized in the period in which it is earned. We recognize revenue related to banner advertisements ratably over the contract period. Advertisers generally make advance deposits, which are recorded as deferred revenue, for pay-for-performance services which are recorded as revenue when an internet user clicks on a sponsored advertisement. Most advertisers utilize self-service tools to open and manage accounts online including tracking, price management and measurement features.
Our operating expenses during the second quarter consisted mainly of search services, sales and marketing, product and content development, and general and administrative expenses.
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Table of Contents
We intend to provide an increasing array of services to our site visitors that are designed to promote social interaction and information sharing. These entertaining, enriching, or empowering products are designed to attract and adhere traffic to our site. Our intention during the remainder of this year and next is to introduce a variety of entertaining, enriching, and empowering products and services that grow large enough to produce positive cash flows. We expect these products and services to drive increased visitors to our site. As traffic grows, we expect that an increasing number of major consumer product firms, healthcare providers, financial institutions, and other enterprises seeking a nexus with the emerging Hispanic majority will advertise on our site. We intend to actively pursue such advertising by mounting a reinvigorated sales program targeting large advertising agencies and their clients.
Critical Accounting Policies
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Such estimates and assumptions affect the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, we evaluate our estimates and assumptions based upon historical experience and various other factors and circumstances. We believe that our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.
We recognize that subjective and sometimes complex judgments affect important accounting policies. These critical accounting policies relate to revenue recognition including the viability and worth of receivables, valuation and useful lives of long-lived assets, valuation of equity transactions such as the fair value assigned to common stock options and warrants, and litigation. Revenue recognition resulting from sales of paid search advertising placement is discussed in Note 1 to our consolidated financial statements. We believe our estimates and assumptions related to these critical accounting policies are appropriate under the circumstances. However, should future events or occurrences result in unanticipated consequences, there could be a material adverse impact on future financial condition and results of operations.
Liquidity and Capital Resources
We have generated significant net losses and negative cash flows from our inception and anticipate that we will experience continued net losses and negative cash flows for the remainder of 2006. These losses will be primarily attributable to the costs of developing and introducing new products and the lag time between product introductions and sales volumes significant enough to drive positive cash flows. We intend to control costs tightly and speedily either adjust or pare unprofitable products.
At June 30, 2006, we had $1.3 million in cash and cash equivalents compared to $1.4 million at June 30, 2005. We anticipate, however, a bolstering of our cash reserves in the remaining quarters of 2006, primarily due to the exercise of outstanding options and warrants.
Net cash used in operating activities was $1.1 million for the six months ended June 30, 2006 as compared to $1.4 million for the six months ended June 30, 2005. For the six months ended June 30, 2006, net cash used by operations consisted of a net loss of $3.0 million offset by non-cash expenses of $1.5 million in executive acquisition expense, $380 thousand in stock based compensation and $42 thousand in depreciation and amortization expense. Net cash used by operations for the six months ended June 30, 2005 consisted of the net loss of $1.6 million, which was offset by non-cash expenses of $52 thousand in depreciation and amortization plus $247 thousand in stock options granted for professional services.
Net cash used in investing activities was $72 thousand for the six months ended June 30, 2006 as compared to net cash used by investing activities of $30 thousand for the six months ended June 30, 2005. The primary use of cash was for investments in capital equipment.
Net cash provided by financing activities was $1.1 million for the six months ended June 30, 2006 as compared to $431 thousand for the six months ended June 30, 2005. In the six months ended June 30, 2006, we received $1.1 million from the issuance of common stock. In the six months ended June 30, 2005, we received $435 thousand, net of commissions, from the issuance of common stock.
On July 31, 2006, the Company received $2.87 million in cash related to the exercise of warrants from Richard L. Scott Investments, LLC and affiliates. In exchange for $2.87 million, the Company issued 1,000,000 shares of common stock. In addition, the Company issued 134,820 shares of common stock for cash of $597,003 related to the exercise of warrants.
We believe that our current cash balances, cash generated from our operations, and our financing activities are sufficient to finance our level of operations through 2007.
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Table of Contents
Results of Operations
Comparison of the six months ended June 30, 2006 with the six months ended June 30, 2005
For the six months ended June 30, 2006, the net loss attributable to common stockholders was $3.0 million compared to a net loss of $1.6 million for the six months ended June 30, 2005. The increased loss was attributable primarily to a one time charge in executive acquisition expense of $1.5 million for the six months ended June 30, 2006.
Comparison of the three months ended June 30, 2006 with the three months ended June 30, 2005
For the three months ended June 30, 2006, the net loss attributable to common stockholders was $883 thousand compared to a net loss of $956 thousand for the three months ended June 30, 2005. The decreased loss was attributable, in part, to the reduction in professional fees and is partially offset by the increase in stock based compensation.
Revenues
For the three months ended June 30, 2006, the Company generated revenues of $84 thousand compared to $160 thousand in revenue for the three months ended June 30, 2005. For the six months ended June 30, 2006, the Company generated revenues of $248 thousand compared to $286 thousand in revenue for the six months ended June 30, 2005. For the six months ended June 30, 2006, our revenue was primarily generated from three principal sources: revenue earned from pay-for-performance search advertisements, Google AdSense and banner advertisements. During the six months ended June 30, 2006, we have made some changes to our business model that focus more on profitable revenues and, as a result, the amount of revenues generated in recent periods has declined while our gross margins have increased compared to the six months ended June 30, 2005.
Pay-for-Performance Revenue. Pay-for-performance search advertisements are recognized in the period in which the "click-throughs" occur. "Click-throughs" are defined as the number of times a user clicks on an advertisement or search result. Pay-for-performance revenue is recognized when there is evidence that the qualifying transactions have occurred. During the three months ended June 30, 2006 and 2005, pay-for-performance revenue accounted for 84% and 98% of total revenue, respectively. During the six months ended June 30, 2006 and 2005, pay-for-performance revenue accounted for 78% and 99% of total revenue, respectively.
Google AdSense. The Company recognizes revenue from Google AdSense in the period it is earned as reported by Google. During the three months ended June 30, 2006 and 2005, Google AdSense revenue accounted for 16% and 0% of total revenue, respectively. During the six months ended June 30, 2006 and 2005, Google AdSense revenue accounted for 17% and 0% of total revenue, respectively.
Banner Advertising Revenue. The Company recognizes revenue related to banner advertisements ratably over the contract period. During the three months ended June 30, 2006 and 2005, banner advertising revenue accounted for 0% and 2% of total revenue, respectively. For the six months ended June 30, 2006 and 2005, banner advertising revenue accounted for 5% and 1% of total revenue, respectively. Payments received from advertisers prior to displaying their advertisements on our website are recorded as deferred revenue, as are all payments received from advertisers for performance based marketing initiatives.
Operating Expenses
Our principal operating expenses are, or have been: Search Services, Sales and Marketing, Product and Content Development, General and Administrative, and Depreciation and Amortization. Operating expenses for the three months ended June 30, 2006 were $975 thousand, a decrease from $1.1 million for the three months ended June 30, 2005. The decreased expenses are principally attributable to the decrease in general and administrative expenses to $797 thousand for the three months ended June 30, 2006, from $865 thousand for the three months ended June 30, 2005, a decrease in search services expenses to $47 thousand for the three months ended June 30, 2006, from $122 thousand for the three months ended June 30, 2005, a decrease in sales and marketing expense to $34 thousand for the three months ended June 30, 2006, from $58 thousand for the three months ended June 30, 2005 and a decrease in depreciation and amortization expense to $20 thousand for the three months ended June 30, 2006 from $27 thousand for the three months ended June 30, 2005. These decreases were offset by the increase in product and content development expenses to $77 thousand for the three months ended June 30, 2006, from $32 thousand for the three months ended June 30, 2005.
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Table of Contents
For the six months ended June 30, 2006, the operating expenses increased to $3.3 million, from $1.9 million for the six months ended June 30, 2005. The increased expenses are principally attributable to the increase in general and administrative expenses to $2.9 million for the six months ended June 30, 2006, from $1.4 million for the six months ended June 30, 2005 and an increase in product and content development expenses to $118 thousand for the six months ended June 30, 2006, from $74 thousand for the six months ended June 30, 2005. These increases were partially offset by the decreases in search services expenses to $165 thousand for the six months ended June 30, 2006, from $227 thousand for the six months ended June 30, 2005, a decrease in sales and marketing expense to $58 thousand for the six months ended June 30, 2006, from $147 thousand for the six months ended June 30, 2005, and a decrease in depreciation and amortization expense to $42 thousand for the six months ended June 30, 2006, from $52 thousand for the six months ended June 30, 2005.
Search Services Expenses. Our search services expenses decreased to $47 thousand in the three months ended June 30, 2006, from $122 thousand in the three months ended June 30, 2005. For the six months ended June 30, 2006, search services expenses decreased to $165 thousand from $227 thousand for the six months ended June 30, 2005. These decreases are attributable to our focus on more profitable segments of our revenue model and correspond to our decreases in revenue for the same periods.
Sales and Marketing Expenses. Our Sales and marketing expenses decreased to $34 thousand in the three months ended June 30, 2006, from $58 thousand for the three months ended June 30, 2005. For the six months ended June 30, 2006, sales and marketing expenses decreased to $58 thousand from $147 thousand for the six months ended June 30, 2005. These changes are mainly attributable to restructuring within our sales and marketing workforce through June 30, 2006. In July 2006, we expanded our sales and marketing efforts and anticipate increased costs associated with these changes.
Product and Content Development Expenses. Our product and content development expenses increased to $77 thousand in the three months ended June 30, 2006, from $32 thousand in the three months ended June 30, 2005. For the six months ended June 30, 2006, product and content development expenses increased to $118 thousand from $74 thousand for the six months ended June 30, 2005. This increase is attributable to changes in our development staff. Quepasa.com de Mexico provides significantly all of our design, translation services, and website management and development services for the Company. We have recently expanded our product and content development efforts and anticipate increased costs associated with these changes.
General and Administrative Expenses. Our general and administrative expenses decreased to $797 thousand in the three months ended June 30, 2006, from $865 thousand in the three months ended June 30, 2005. This decrease is principally attributable to the decrease in professional fees expense to $158 for the three months ended June 30, 2006, from $390 thousand for the three months ended June 30, 2006 and the decrease in advertising expense to $45 for the three months ended June 30, 2006, from $79 thousand for the three months ended June 30, 2005. These decreases are partially offset by the increase in stock-based compensation to $156 thousand for the three months ended June 30, 2006, from $0 for the three months ended June 30, 2005, and the increase in travel and entertainment expenses to $36 thousand for the three months ended June 30, 2006 from $11 thousand for the three months ended June 30, 2005.
For the six months ended June 30, 2006, our general and administrative expenses increased to $2.9 million in the six months ended June 30, 2006, from $1.4 million in the six months ended June 30, 2005. This increase is principally attributable to the increase in Executive acquisition costs to $1.5 million for the six months ended June 30, 2006, from $0 for the six months ended June 30, 2005, the increase in stock-based compensation to $380 thousand for the six months ended June 30, 2006, from $0 for the six months ended June 30, 2005 and an increase in dues and subscriptions expense to $57 thousand for the six months ended June 30, 2006, from $20 thousand for the six months ended June 30, 2005. These increases were partially offset by the decrease in professional fees expense to $247 thousand for the six months ended June 30, 2006, from $490 thousand for the six months ended June 30, 2005, the decrease in advertising expense to $72 thousand for the six months ended June 30, 2006, from $117 thousand for the six months ended June 30, 2005, and postage and printing expense to ($3) thousand for the six months ended June 30, 2006, from $18 thousand for the six months ended June 30, 2005.
Depreciation and Amortization Expense. Our depreciation and amortization expense decreased to $20 thousand in the three months ended June 30, 2006 from $27 thousand for the three months ended June 30, 2005. For the six months ended June 30,2006, depreciation and amortization expense decreased to $42 thousand from $52 thousand for the six months ended June 30, 2005. This decrease is associated with the fixed assets that have become fully depreciated.
Other Income (Expense). Other income (expense), which primarily consists of interest income offset by interest expense, was $8 thousand in the three months ended June 30, 2006, an increase from $2 thousand in the three months ended June 30, 2005. For the six months ended June 30,2006, interest income (expense) increased to $15 thousand from $1 thousand for the six months ended June 30, 2005. This increase is attributable to income on our cash deposits in interest bearing accounts.
Affinity Technology Group, Inc. (OTCBB:AFFI - News) - Affinity Announces Second Quarter Results
Affinity Technology Group, Inc. (OTCBB:AFFI - News) - Affinity Announces Second Quarter Results
Affinity Technology Group, Inc. (OTCBB:AFFI - News) announced financial results for the second quarter and six months ended June 30, 2006.
Revenues for the quarter were $8 thousand, with a net loss of $220 thousand, or $0.00 per share. Second quarter 2005 revenues were $4 thousand and the Company reported a net loss of $165 thousand or $0.00 per share. The weighted average number of shares outstanding during the three months ended June 30, 2006 was 44.2 million, compared to 42.2 million for the same period in 2005.
For the first six months of 2006, revenues were $17 thousand, with a net loss of $310 thousand, or $0.01 per share. Revenues for the comparable period in 2005 were $9 thousand, with a net loss of $295 thousand, or $0.01 per share. The weighted average number of shares outstanding during the six months ended June 30, 2006, was 43.2 million, compared to 42.2 million for the same period in 2005.
Joe Boyle, Chairman, President and Chief Executive Officer of Affinity, stated, "We believe that we have made significant progress during the first six months of 2006. The highlight was the successful conclusion in March of the reexamination of our financial and credit account patent (U.S. Patent No. 6,105,007). That event has created forward momentum for the Company, and since that time we have secured the services of Morgan Keegan to assist us in raising capital, restructured our legal services agreement to include the McBride Law firm and engaged Parsons Behle & Latimer and Dr. Mark Glick as part of our legal team.
"Additionally, the stays on the lawsuits with Ameritrade, Federated Department Stores and Household have been lifted and the lawsuits are proceeding. As announced last week, we have also extended the maturity of our convertible notes, which resolves their default status. In the near future our objective is to continue to explore capital raising options with Morgan Keegan and to attract new capital to further strengthen the financial base of the Company."
About Affinity Technology Group, Inc.
Through its subsidiary, decisioning.com, Inc., Affinity Technology Group, Inc. owns a portfolio of patents that covers the automated processing and establishment of loans, financial accounts and credit accounts through an applicant-directed remote interface, such as a personal computer or terminal touch screen. Affinity's patent portfolio includes U.S. Patent No. 5,870,721C1, No. 5,940,811C1, and No. 6,105,007C1.
Forward-looking statements in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. We cannot offer any assurances that Affinity will prevail on its claims of patent infringement against third parties or that such claims will result in monetary damages to Affinity. Investors are cautioned that our business is subject to several substantial risks and uncertainties, including the Company's very limited capital resources and the possibility that we may be unable to raise additional capital in amounts sufficient to permit us to continue operations; the risk that we may lose all or part of the claims covered by our patents as a result of challenges to our patents; the risk that our patents may be subject to additional reexamination by the U.S. Patent and Trademark Office or challenge by third parties; the result of ongoing litigation, including patent litigation; and unanticipated costs and expenses affecting the Company's cash position. If the Company is not able to raise additional capital immediately, it may be forced to consider alternatives for winding down its business, which may include offering its patents for sale or filing for bankruptcy protection. These and other factors may cause actual results to differ materially from those anticipated.
Affinity Technology Group, Inc.
Statements of Operations
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
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Revenues:
Patent license
revenue $ 8,334 $ 4,412 $ 16,667 $ 8,824
Costs and expenses:
Cost of revenues 834 441 1,667 882
General and
administrative
expenses 206,458 145,259 278,177 255,506
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Total costs
and
expenses 207,292 145,700 279,844 256,388
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Operating loss (198,958) (141,288) (263,177) (247,564)
Other income (expense):
Interest income 478 - 722 61
Interest
expense (21,485) (24,042) (47,456) (47,452)
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Net loss $ (219,965) $ (165,330) $ (309,911) $ (294,955)
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Net loss per share -
basic and diluted: $ (0.00) $ (0.00) $ (0.01) $ (0.01)
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Shares used in
computing net loss
per share 44,217,651 42,215,096 43,235,883 42,187,348
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Balance Sheets June 30,
2006 2005
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Cash and Short
Term Investments $ 72,101 $ 26,429
Total Current
Assets 103,689 54,225
Total Assets 106,708 61,474
Total Liabilities 1,925,853 1,839,513
Stockholders'
Deficiency (1,819,145) (1,778,039)
Contact:
Affinity Technology Group, Inc.
Joe Boyle, 803-758-2511
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Source: Affinity Technology Group, Inc.
Motorola, Women in Law Enforcement Honor Executive of the Year
Motorola, Women in Law Enforcement Honor Executive of the Year
Maryland Police Chief also leads international police organization
SCHAUMBURG, Ill., Aug. 10 Gaithersburg, Md., Police Chief Mary Ann Viverette has distinguished herself as a leader who is respected for her innovative programs and her willingness to step outside her comfort zone. Today, she will be recognized as Woman Law Enforcement Executive of the Year by her peers at the National Association of Women Law Enforcement Executives (NAWLEE) annual conference.
NAWLEE and Motorola, Inc. (NYSE: MOT - News) will honor Viverette during the group's 11th annual conference and she will share her experiences and guidance gleaned through her 27 years with the police department located 12 miles outside of Washington, D.C. Motorola is hosting the conference.
"I am very grateful to be recognized by my peers, and happy to be able to make a contribution at the national level," Viverette said.
The police chief of the second largest city in Maryland also currently serves as the first woman president of the International Association of Chiefs of Police (IACP), an 18,000-member organization working on behalf of law enforcement officials worldwide. "I am glad that I am able to provide a visual reminder to other women that we are making contributions to law enforcement everywhere," Viverette said. "Other women have told me how important it is to see me up there on the dais." She estimated that there are only about 150 women police chiefs in the country.
It was Viverette's involvement in IACP, along with other women in the 1990s, which planted the seeds of NAWLEE. Networking with other women at IACP events, they sought out further opportunities to share their knowledge. "As a mentoring organization, NAWLEE is a very comfortable place for a woman to be," she said. Today NAWLEE has about 400 members, including law enforcement agency leaders and future leaders nationwide.
"Mary Ann's (Viverette's) dedication to law enforcement, and her national stature as IACP president, make her an excellent choice for this year's Executive of the Year," said NAWLEE president Susan Kyzer, bureau chief, Florida Department of Law Enforcement.
Gaithersburg's progressive police force, which partners closely with the Montgomery County (Md.) Police Department, has instituted its own Street Crimes Unit, which blends features of uniformed and undercover work to concentrate on rooting out repeat offenders and narcotics suspects. The department has its own drug-sniffing dog which rides along with officers in "hot spots" where illegal substances often surface during traffic stops. These programs are unusual within a force of 49 sworn officers, but they are crucial given Gaithersburg's proximity to the nation's capital.
Viverette was named police chief in 1986. She graduated from the FBI National Academy in 1988. She is active on the Commission on Accreditation for Law Enforcement Agencies (CALEA), and her department has been accredited since 1993.
In addition to recognizing Viverette's achievements, the conference will honor the six founders of the organization. They include:
-- Chief Susan Riseling, University of Wisconsin-Madison Police
Department
-- Barbara O'Brien, government affairs director, Cash America
International
-- Chief Joy Rikala, City of Minnetonka, Minn.
-- Chief (Ret.) Alana Ennis, director, General Dynamics Armament
-- Chief Anne Glavin, California State University at Northridge
Department of Public Safety
-- Chief Ellen Hanson, Lenexa Police Department, Lenexa, Kan.
Schaumburg Village President Al Larson and Motorola executives Mark Moon, corporate vice president, Motorola Networks and Enterprise, and Jackie Wasni, Motorola Communications & Electronics Inc. vice president, will welcome guests to the Renaissance Schaumburg Hotel and Conference Center. The conference runs through Aug. 13.
"Motorola is proud of NAWLEE's efforts to support women who are leaders in law enforcement and who devote their careers to public safety," Wasni said. In addition to remarks from Viverette, conferees will hear from keynote speaker Zulima V. Farber, attorney general of New Jersey. Both are scheduled to speak on Aug. 10.
About NAWLEE
The National Association of Women Law Enforcement Executives (NAWLEE) is the first organization established to address the unique needs of women holding senior management positions in law enforcement.
NAWLEE is a non-profit organization sponsored and administered directly by law enforcement practitioners. Its mission is to serve and further the interests of women executives and those who aspire to be executives in law enforcement. For more information, please visit http://www.nawlee.com.
About Motorola
Motorola is known around the world for innovation and leadership in wireless and broadband communications. Inspired by our vision of Seamless Mobility, the people of Motorola are committed to helping you get and stay connected simply and seamlessly to the people, information, and entertainment that you want and need. We do this by designing and delivering "must have" products, "must do" experiences and powerful networks -- along with a full complement of support services. A Fortune 100 company with global presence and impact, Motorola had sales of US $35.3 billion in 2005. For more information about our company, our people and our innovations, please visit http://www.motorola.com.
MOTOROLA and the stylized M Logo are registered in the US Patent & Trademark Office. All other product or service names are the property of their respective owners.
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Source: Motorola, Inc.
IBM Brings Electronic Medical Records One Step Closer Through Open Technology
IBM Brings Electronic Medical Records One Step Closer Through Open Technology
Contributes Technology to Open Source Community
Establishes Innovation Centers to Work with Major Players, Business Partners
Aug. 9, 2006--IBM (NYSE: IBM - News) today announced a major step in the drive toward a national electronic medical records system by contributing software technology that supports the exchange of healthcare information to the open source community.
The software, contributed to the Eclipse Foundation's Open Healthcare Framework (OHF) project, provides a mechanism to connect isolated "islands" of information that today reside throughout the healthcare system to any Health Information Exchange (HIE). Software developers will also be able to build applications that can aggregate and sift through this information to improve healthcare delivery and research while protecting individual privacy.
According to the Center for Information Technology Leadership, systems that enable standardized information exchange are by far the best investment for the nation as a whole, with net savings that likely represent 5 percent of current U.S. healthcare expenditures. Such capabilities stand to enable more accurate, timely diagnoses that could markedly improve treatments.
OHF, one of the leading efforts to deliver an open source, standards-based platform for healthcare software, has close ties to leading healthcare standards organizations. Any Independent Software Vendor (ISV) will be able to use the tools in OHF to connect their applications to any standards-based infrastructure, including IBM's HIE.
IBM Research has also established new Healthcare and Life Sciences Innovation Centers spanning its Almaden, Watson, Haifa and Zurich Research Labs. These centers provide a focal point for collaborative work with healthcare clients and qualified IBM Business Partners in the application of key IBM Research expertise and technologies in this field.
"One of the more significant challenges in creating a national interoperable electronic healthcare information infrastructure is the ability to access disparate health records stored in proprietary medical IT systems," said Dan Pelino, general manager, IBM Healthcare and Life Sciences Industry. "By making the client side components of our HIE technology available through OHF, we hope to help solve this problem by providing an easy and affordable way for ISVs to connect their applications to any HIE, where medical data can be accessed and integrated as if stored in a single repository. As a result of this patient-centric systems approach, clinicians will be able to access health records from virtually any medical IT system, regardless of where the information resides."
IBM Research launched the Interoperable Healthcare Information Infrastructure, or IHII project, in 2005 with a prototype health information exchange platform capable of supporting local, regional and national healthcare organizations. The platform, which implements important interoperability standards, includes advanced data management algorithms and data mining techniques developed by IBM scientists. It enables doctors to access and view a patient's electronic medical records even if those records originate in disparate systems. The IHII project is validating software code components required to instantiate a HIE that conforms to IBM's Health Information Framework, a Services Oriented Architecture (SOA) approach to connecting the healthcare and life sciences ecosystem.
IBM has since validated open, standards-based healthcare interoperability with more than 20 ISVs, including Blueware, CapMed, Mandriva, PossibilityForge, SynSeer and WellLogic, as well as its ability to provide the client side interfaces for application vendors. With this contribution to the Eclipse open source community, software developers can now begin building open standards-based applications that tap the technology to help doctors, labs and hospitals adopt electronic medical records.
"The features in OHF will enable a new ecosystem to develop in the healthcare industry," said Grahame Grieve, project leader, Eclipse OHF project. "The availability of a lightweight, open source framework will allow eHealth Record (eHR) vendors and other open source eHR efforts to build and test standards-based solutions for interoperability, enabling small and medium clinics and hospitals to participate in the market with large healthcare enterprises."
The ability to share health information could create new services for consumers, researchers and practitioners. Beyond lowering costs and improving quality of healthcare, the electronic storage of medical data may also allow public health officials to more easily analyze that data to identify emerging health trends.
IBM Opens Research Innovation Centers to Business Partners
Demonstrating its commitment to fostering innovation in the healthcare and life sciences industries, IBM announced in March 2006 that it will open access for its Business Partners to one of its most valuable assets - intellectual capital created by the scientists and engineers in its world-class Research division.
As part of that initiative, qualified Business Partners in the healthcare industry can collaborate with IBM's leading researchers and industry experts through the Innovation Centers at the Almaden and Haifa labs to deliver more innovative solutions to a broader range of clients, in both SMB and large enterprise markets. Additionally, Business Partners in the life sciences industry can collaborate with IBM researchers in the field of computational biology at the Innovation Centers at the Almaden, T.J. Watson and Zurich labs.
IBM offers this resource to qualified partners through the PartnerWorld Industry Networks, a set of industry-tailored offerings designed to help business partners develop, market and sell solutions that meet their customers' requirements. Business Partners will be able to access research and analysis never before published externally and will also be eligible for consultations with any of IBM's community of over 3,000 research engineers and scientists - offering for the first time ever the opportunity for IBM Research and IBM Business Partners to collaborate on delivering new solutions to the marketplace.
AFFI.OB > SEC Filings for AFFI.OB > Form 8-K on 18-Jul-2006 All Recent SEC Filings
AFFI.OB > SEC Filings for AFFI.OB > Form 8-K on 18-Jul-2006 All Recent SEC Filings
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Form 8-K for AFFINITY TECHNOLOGY GROUP INC
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18-Jul-2006
Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.
(a) On July 14, 2006, the Compensation Committee (the "Committee") and the Board of Directors (the "Board") of Affinity Technology Group, Inc., a Delaware corporation ("Affinity"), approved the following compensation related matters:
o The base salary payable to Joseph A. Boyle, President and Chief Executive Officer of Affinity, was increased to $250,000 per year. Effective July 3, 2006, Mr. Boyle resumed full-time employment with Affinity.
o The base salary payable to S. Sean Douglas, Chief Operating Officer of Affinity, was increased to $125,000 per year.
o The following stock option awards were granted to the officers of
Affinity:
No. of Shares
of Common Stock
Officer Underlying Award Exercise Price Term
------- ---------------- -------------- ----
Joseph A. Boyle 2,500,000 $0.50 10 years
S. Sean Douglas 850,000 $0.50 10 years
One-third of such options are immediately exercisable, and the other two-thirds become exercisable in two equal annual installments on the first and second anniversaries of the date of grant.
o The following stock option awards were granted to non-employee directors of Affinity:
No. of Shares
of Common Stock
Director Underlying Award Exercise Price Term
-------- ---------------- -------------- ----
Robert M. Price 250,000 $0.35 10 years
250,000 $0.50 10 years
Peter R. Wilson 250,000 $0.35 10 years
250,000 $0.50 10 years
The options to acquire 250,000 shares for $0.35 per share are immediately exercisable, and the options to acquire 250,000 shares for $0.50 per share become exercisable in two equal annual installments on the first and second anniversaries of the date of grant.
The Committee and the Board also reaffirmed Affinity's bonus program under which Affinity may award cash and non-cash bonuses to officers of Affinity in the discretion of the Committee.
U.S. Department of Agriculture Approves Digital Angel Livestock RFID Tagging System for National Animal Identification Program
U.S. Department of Agriculture Approves Digital Angel Livestock RFID Tagging System for National Animal Identification Program
First Livestock Tagging System to Win Government Approval for Program to Protect the Health of U.S. Livestock
Digital Angel Corporation (Amex: DOC - News), an advanced technology company in the field of rapid and accurate identification, location tracking, and condition monitoring of high-value assets, announced today that its electronic RFID (radio frequency identification) livestock tagging system has been approved by the U.S. Department of Agriculture (USDA) for use in the National Animal Identification System (NAIS). Digital Angel is the first animal tag manufacturer to be designated as an Animal Identification (AIN) tag manufacturer by the USDA, which signifies that the Company's tagging system is capable of identifying livestock with the unique, lifetime animal identification number that is being established as a national standard through the NAIS.
The NAIS, a cooperative program between the state and federal governments and the livestock industry to help trace, manage and eradicate animal diseases like Mad Cow Disease, Foot and Mouth Disease, Pseudo-Rabies Disease and Porcine Reproductive and Respiratory Syndrome in pigs, is being run by the USDA's Animal and Plant Health Inspection Service (APHIS). APHIS launched the voluntary NAIS in 2004 with the premises registration system and is now continuing its advancement by implementing the animal identification component. While USDA has established visual tags as the minimum standard for some species, cattle for example, producers may elect to use ear tags with RFID technology incased in the official identification tags.
"This is a stamp of approval and an important acknowledgement of the integrity of our tagging system," said Digital Angel President and CEO Kevin N. McGrath. "The USDA underwent a thorough review of our identification tags and came away convinced that we can produce livestock tags that are up to its standards, but also ensure the uniqueness of the numbers attributed to individual animals that assist in tracking the animal's origin and movement throughout its life. The flexibility to use the AIN tags in other programs outside the scope of NAIS, like source and age verification programs as well as basic management practices, provides the opportunity for producers to fully utilize the capability of our electronic ear tags."
Digital Angel, which has been in the livestock tagging business since 1945, has developed a proprietary and comprehensive RFID traceability system that includes electronic tags and scanners as well as a related IT system that can provide for the identification and tracking of all animals tagged as part of the NAIS. The target date for having all livestock identified that are covered in the NAIS guidelines is early 2009.
Digital Angel sells its electronic tags under the brand names e.Tag(TM) and Destron Combo e.Tag(TM).
About Digital Angel Corporation
Digital Angel Corporation develops and deploys sensor and communications technologies that enable rapid and accurate identification, location tracking, and condition monitoring of high-value assets. Applications for the Company's products include identification and monitoring of humans, pets, fish, poultry and livestock through its patented implantable microchips; location tracking and message monitoring of vehicles and aircraft in remote locations through systems that integrate GPS and geosynchronous satellite communications; and monitoring of asset conditions such as temperature and movement, through advanced miniature sensors.
Digital Angel Corporation is majority-owned by Applied Digital Inc. (Nasdaq: ADSX - News). For more information about Digital Angel, please visit www.DigitalAngelCorp.com.
The statements in this press release that are not strictly historical, are "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are intended to be covered by the safe harbors created by these sections. The forward-looking statements are subject to risks and uncertainties and the actual results that the Company achieves may differ materially from these forward-looking statements due to such risks and uncertainties, including, but not limited to, that Applied Digital Inc. owns 55.4% of the Company's common stock, that new accounting pronouncements regarding expensing of share based compensation may impact the Company's future results of operations, the Company may continue to incur net losses, infringement by third parties on the Company's intellectual property or development of substantially equivalent proprietary technology by the Company's competitors could negatively impact the Company's business, domestic and foreign government regulation and other factors could impair the Company's ability to develop and sell its products in certain markets, the Company relies on sales to government contractors for its animal identification and search and rescue beacon products, and any decline in the demand by these customers for such products could negatively affect the Company's business, the Company depends on a single production arrangement for its patented syringe-injectable microchips, and the loss of or any significant reduction in the production could have an adverse effect on the Company's business, technological change could cause the Company's products to become obsolete, the loss of one of the Company's principal customers could negatively impact the Company's net revenue, the Company's earnings will decline if the Company writes off goodwill and other intangible assets, options and warrants outstanding and available for issuance may adversely affect the market price of the Company's common stock, currency exchange rate fluctuations could have an adverse effect on the Company's sales and financial results, the Company depends on a small team of senior management. A detailed statement of risks and uncertainties is contained in the Company's reports to the Securities and Exchange Commission, including in particular the Company's Form 10-K for the fiscal year ended December 31, 2005. Investors and stockholders are urged to read this document carefully. The Company can offer no assurances that any projections, assumptions or forecasts made or discussed in this release will be met, and investors should understand the risks of investing solely due to such projections. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.
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