SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FORM 10QSB
FOR THE QUARTER ENDED DECEMBER 31, 2002
COMMISSION FILE NUMBER 333-51058
Advanced Healthcare Technologies, Inc.
Formally Email Mortgage, Inc.
(Exact name of Registrant as specified in its charter)
Colorado 84-1565820
(State or other jurisdiction of (I.R.S. Employer I.D.)
incorporation or organization)
124 Colts Neck Road,
Farmingdale NJ 07727
Registrant's Telephone Number, including area code
732-938-9672
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange
Act of 1934 during the preceding twelve months, and (2) has been
subject to such filing requirements for the past 90 days.
Yes__x___ No______
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the close of the period covered by this
report: 12,507,000 shares.
2
Advanced Healthcare Technologies, Inc.
Index
Part I Financial Information Page Number
Item 1.
Balance Sheet 3
Statements of Loss and Accumulated Deficit 4
Statements of Cash Flows 5
Footnotes 6
Item 2. Management's Discussion and
Analysis of Financial Condition and
Results of Operations 7
Part II None
Signatures 10
3
Advanced Healthcare Technologies, Inc.
(formerly Email Mortgage.com, Inc.)
(A Development Stage Company)
Balance Sheet
(Unaudited)
ASSETS
December 31,
2002
------------
Current assets:
Cash $ 66,834
Advance to affiliated company 27,000
-----------
Total current assets 93,834
Total assets $ 93,834
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,026
Loans from related parties 3,755
-----------
Total current liabilities 4,781
Stockholders' equity:
Preferred stock, $.01 par value,
10,000,000 shares authorized, no shares
issued and outstanding -
Common stock, $.001 par value,
100,000,000 shares authorized, 12,507,000
shares issued and outstanding 12,507
Additional paid in capital 246,543
(Deficit) accumulated during
development stage (169,997)
-----------
89,053
-----------
$ 93,834
===========
See accompanying notes to financial statements.
4
Advanced Healthcare Technologies, Inc.
(formerly Email Mortgage.com, Inc.)
(A Development Stage Company)
Statements of Operations
Three Months and Nine Months Ended December 31, 2002 and 2001
For the Period From Inception (March 28, 2000) to December 31, 2002
(Unaudited)
Period From
Three Months Ended Nine Months Ended Inception To
December 31, December 31, December 31,
2002 2001 2002 2001 2002
------ ----- ------ ------ ----------
Revenue:
Loan processing fees $ - $ 1,750 $ 1,100 $ 3,500 $ 4,350
Interest income 670 - 1,735 - 3,302
------- -------- -------- -------- --------
670 1,750 2,835 3,500 7,652
Operating expenses:
Loan processing costs - 250 500 650 7,050
Professional fees 28,776 11,215 30,051 20,429 86,950
Consulting services 27,400 23,000 27,400 23,000 37,400
Web site expenses 125 - 125 - 23,625
Rent 475 1,950 950 5,200 7,650
Other expenses 1,334 1,024 2,164 1,024 14,974
------- -------- ------- ------- --------
58,110 37,439 61,190 50,303 177,649
------- -------- ------- ------- --------
Loss from operations) and
net (loss) $(57,440) $(35,689) $(58,355) $(46,803) $(169,997)
======== ======== ======== ======== =========
Per share information:
Basic and diluted (loss)
per common share $ - $ - $ - $ - $ (0.01)
======== ======== ======== ======== =========
Weighted average shares
outstanding 12,507,000 11,250,000 12,507,000 11,083,333 11,699,182
========== ========== ========== ========== ==========
See accompanying notes to financial statements.
5
Advanced Healthcare Technologies, Inc.
(formerly Email Mortgage.com, Inc.)
(A Development Stage Company)
Statements of Cash Flows
Nine Months Ended December 31, 2002 and 2001
For the Period From Inception (March 28, 2000) to December 31, 2002
(Unaudited)
Period From
Nine Months Ended Inception To
December 31, December 31,
2002 2001 2002
---------------------- ------------
Net income (loss) $ (58,355) $ (46,803) $ (169,997)
Adjustments to reconcile net income to net
cash provided by operating activities:
Services provided for common stock 900 - 5,900
Expenses contributed to capital by
shareholder - - 8,500
Changes in assets and liabilities:
Increase in accounts payable - - 1,026
-------- --------- ----------
Total adjustments 900 - 15,426
-------- --------- ----------
Net cash provided by (used in)
operating activities (57,455) (46,803) (154,571)
Cash flows from financing activities:
Common stock sold for cash - 251,400 253,150
Repayment of related party loans - (67,745) (67,745)
Advances to shareholder & affiliate (20,000) - (42,000)
Repayment of affiliated company advances - - 15,000
Loans from related party 1,175 10,400 63,000
-------- -------- --------
Net cash provided by (used in)
financing activities (18,825) 194,055 221,405
-------- -------- --------
Increase (decrease) in cash (76,280) 147,252 66,834
Cash and cash equivalents,
beginning of period 143,114 969 -
-------- --------- --------
Cash and cash equivalents,
end of period $ 66,834 $ 148,221 $ 66,834
See accompanying notes to financial statements.
6
Advanced Healthcare Technologies, Inc.
Notes to Unaudited Financial Statements
December 31, 2002
Basis of presentation
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions incorporated in
Regulation SB of the Securities and Exchange Commission. Accordingly,
they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting
of normal recurring adjustments and accruals) considered necessary for
a fair presentation have been included.
The results of operations for the periods presented are not necessarily
indicative of the results to be expected for the full year. The
accompanying financial statements should be read in conjunction with
the Company's financial statements for the year ended March 31, 2002.
Basic loss per share was computed using the weighted average number of
common shares outstanding.
During August 2002, the Company changed its domicile to the state of
Nevada and effected a five share for one share forward stock split.
All share and per share information in the foregoing financial
statements has been restated to give effect to the stock split.
The Company had an outstanding advance balance due to a related party
of $3,755 and an outstanding advance to an affiliated company of
$27,000 at December 31, 2002.
7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Trends and Uncertainties. Demand for Advanced Healthcare products and
services will be dependent on, among other things, market acceptance of
the Advanced Healthcare's concept, the quality of its services, and
general economic conditions, which are cyclical in nature. Inasmuch as
a major portion of Advanced Healthcare's activities will be the receipt
of revenues from our services, Advanced Healthcare's business
operations may be adversely affected by Advanced Healthcare's
competitors and prolonged recessionary periods.
Capital and Source of Liquidity. All of the initial working capital
has been obtained from the sale of common shares to the current
officers, directors and principal shareholder ($250,000) and loans from
a related party of ($62,745). We do not have the liquidity to fund
our operations and will require additional capital. We currently have
little working capital and will rely on further loans to continue
operations until completion of the current public offering. Advanced
Healthcare's requires these additional loans to expand our current and
strategic business plans. We do not have any funding arrangements
with any third party or any affiliates.
For the nine months ended December 31, 2002, we made advances to
shareholder and affiliate of $20,000 and received loans from related
party of $1,175. As a result, we had net cash used in financing
activities of $18,825 for the nine months ended December 31, 2002.
For the nine months ended December 31, 2001, we received loans from a
related party of $10,400 and cash proceeds from the sale of common
stock of $251,400. We repaid related party loans of $67,745 resulting
in net cash provided by financing activities of $194,055.
For the nine months ended December 31, 2002 and 2001, we did not pursue
any investing activities.
On a long-term basis, liquidity is dependent on continuation and
expansion of operation and receipt of revenues, additional infusions of
capital, and debt financing. Advanced Healthcare believes that
additional capital and debt financing in the short term will allow
Advanced Healthcare to increase its marketing and sales efforts and
thereafter result in increased revenue and greater liquidity in the
long term. However, there can be no assurance that Advanced Healthcare
will be able to obtain additional equity or debt financing in the
future, if at all.
Results of Operations. Since inception, Advanced Healthcare has not
received any significant revenues from operations.
For the nine months ended December 31, 2002, we received revenue of
only $1,100 from loan processing fees and interest income of $1,735.
We had a net loss of $58,355 for the nine months ended December 31,
2002. Operating expenses for that same period were $61,190 consisting
of loan processing costs of $500, professional fees of $30,051,
consulting services of $27,400, web site expenses of $125, rent of $950
and other expenses of $2,164.
For the nine months ended December 31, 2001, we received revenue of
only $3,500 from loan processing fees. We had a net loss of $46,803
for the nine months ended December 31, 2001. Operating expenses for
that same period were $50,303 consisting of loan processing costs of
$650, professional fees of $20,429, consulting services of $23,000,
rent of $5,200 and other expenses of $1,024.
Plan of Operation. Advanced Healthcare is in the development stage
and has not conducted any significant operations to date or received
significant operating revenues. We will not need to conduct any
research and development regarding our business plan.
We do not expect to purchase any plant or significant equipment.
Advanced Healthcare may experience problems; delays, expenses, and
difficulties sometimes encountered by an enterprise in Advanced
Healthcare's stage of development, many of which are beyond Advanced
Healthcare's control. These include, but are not limited to,
unanticipated problems relating to the development of the system,
manufacturing costs, production and marketing problems, additional
costs and expenses that may exceed current estimates, and competition.
Controls and Procedures. The Chief Executive Officer and the Chief
Financial Officer of the Company have made an evaluation of the
disclosure controls and procedures relating to the quarterly report on
Form 10QSB for the period ended December 31, 2002 as filed with the
Securities and Exchange Commission and have judged such controls and
procedures to be effective as of December 31, 2002 (the evaluation
date).
There have not been any significant changes in the internal controls of
the Company or other factors that could significantly affect internal
controls relating to the Company since the evaluation date.
9
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
Date: February 14, 2003
By: /s/ Phillip E. Loori
------------------------
Phillip E. Loori
President
CERTIFICATIONS
I, Phillip E. Loori, certify that:
1. I have reviewed this quarterly report on Form 10QSB of Advanced
Healthcare Technologies, Inc.
2. Based on my knowledge, the 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 officers and I are responsible
for establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:
(a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this quarterly report
is being prepared;
(b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the "Evaluation Date"); and
(c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and
the audit committee of the registrant's board of directors (or persons
performing the equivalent function):
(a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability
to record, process, summarize and report financial data and have
identified for the registrant's auditors any material weaknesses in
internal controls; and
(b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
(6) The registrant's other certifying officers and I have indicated
in this quarterly report whether or not there were significant changes
in internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most recent
evaluation, including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: February 14, 2003
/s/Phillip E. Loori
Phillip E. Loori
Chief Executive Officer/Chief Financial Officer