Patient Safety Technologies, Inc

CIK:0000812301|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statements of Operations [Abstract]
Revenues	$ 5,205,301	$ 4,972,476	$ 14,918,571	$ 12,478,210
Cost of revenue	2,979,106	2,704,140	8,735,133	7,118,019
Gross profit	2,226,195	2,268,336	6,183,438	5,360,191
Operating expenses:
Research and development	168,563	111,227	462,932	400,712
Sales and marketing	1,218,437	1,350,924	3,208,156	3,734,531
General and administrative	1,374,689	955,840	4,013,398	3,200,409
Total operating expenses	2,761,689	2,417,991	7,684,486	7,335,652
Operating loss	(535,494)	(149,655)	(1,501,048)	(1,975,461)
Other income (expense):
Interest income (expense), net	1,191	672	4,684	3,756
Other income	150,000		150,000
Interest expense related party		(35,926)	(143,819)	(35,926)
Total other income (expense)	151,191	(35,254)	10,865	(32,170)
Loss before income taxes:	(384,303)	(184,909)	(1,490,183)	(2,007,631)
Income tax provision	(253)	(546)	(253)	(4,258)
Net loss	(384,556)	(185,455)	(1,490,436)	(2,011,889)
Preferred dividends	(142,406)	(134,215)	(427,219)	(397,105)
Net loss applicable to common shareholders	$ (526,962)	$ (319,670)	$ (1,917,655)	$ (2,408,994)
Loss per common share:
Basic and Diluted	$ (0.01)	$ (0.01)	$ (0.05)	$ (0.07)
Weighted average common shares outstanding:
Basic and Diluted	38,752,500	35,260,243	37,884,140	35,449,156

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Operating activities:
Net loss	$ (1,490,436)	$ (2,011,889)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,707,440	1,226,933
Amortization of patents	243,705	243,706
Stock-based compensation	621,958	606,939
Changes in operating assets and liabilities:
Accounts receivable	(1,240,722)	(345,753)
Inventories	1,136,249	(1,205,263)
Prepaid expenses	151,747	99,051
Other assets	23,153	3,000
Accounts payable	(558,018)	2,201,165
Accrued liabilities	(604,986)	27,486
Deferred revenue	(549,773)	1,361,779
Net cash (used in) provided by operating activities	(559,683)	2,207,154
Investing activities:
Purchase of property and equipment	(1,262,460)	(4,268,221)
Net cash used in investing activities	(1,262,460)	(4,268,221)
Financing activities:
Proceeds from issuance of common stock		3,499,997
Payments for common stock issuance costs		(65,240)
Payments of preferred stock series A dividends	(57,488)	(57,488)
Payments of convertible preferred stock series B dividends	(369,731)	(318)
Proceeds from exercise of warrants	1,631,420
Proceeds from exercise of stock options	381,875	470,000
Net cash provided by financing activities	1,586,076	3,846,951
Net (decrease) increase in cash and cash equivalents	(236,067)	1,785,884
Cash and cash equivalents at beginning of period	5,177,082	3,668,524
Cash and cash equivalents at end of period	4,941,015	5,454,408
Supplemental disclosures of cash flow information:
Cash paid during the period for taxes	253	4,258
Non cash investing and financing activities:
Payment of Series B preferred dividends in preferred B shares		$ 339,618

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 4,941,015	$ 5,177,082
Accounts receivable	2,656,356	1,415,634
Inventories, net	2,832,187	3,968,436
Prepaid expenses	156,537	308,285
Total current assets	10,586,095	10,869,437
Property and equipment, net	4,388,774	4,833,754
Goodwill	1,832,027	1,832,027
Patents, net	1,895,497	2,139,202
Other assets	14,309	37,462
Total assets	18,716,702	19,711,882
Current liabilities:
Accounts payable	3,940,984	4,499,002
Accrued liabilities	355,076	960,062
Deferred revenue - current portion	803,421	846,395
Total current liabilities	5,099,481	6,305,459
Deferred revenue	462,596	969,395
Total liabilities	5,562,077	7,274,854
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock, $0.0001 par value: 100,000,000 shares authorized; 38,823,487 shares issued and outstanding at September 30, 2013 and 37,041,170 shares issued and outstanding at December 31, 2012	3,882	3,705
Additional paid-in capital	76,729,930	74,094,855
Accumulated deficit	(63,660,562)	(61,742,907)
Total stockholders' equity	13,154,625	12,437,028
Total liabilities and stockholders' equity	18,716,702	19,711,882
Series A preferred Stock
Stockholders' equity:
Preferred stock	10,950	10,950
Series B convertible preferred stock
Stockholders' equity:
Preferred stock	$ 70,425	$ 70,425