CAREADVANTAGE INC

CIK:0000937252|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
License fees and service revenue	$ 416,000	$ 792,000	$ 1,632,000	$ 2,768,000
Costs of services	182,000	255,000	635,000	926,000
Gross profit	234,000	537,000	997,000	1,842,000
Operating expenses:
Selling, general and administrative	450,000	517,000	1,381,000	1,795,000
Depreciation and amortization	14,000	16,000	43,000	48,000
Loss on building lease			8,000	224,000
Total operating expenses	464,000	533,000	1,432,000	2,067,000
Operating (loss)/income	(230,000)	4,000	(435,000)	(225,000)
Interest expense	9,000	5,000	26,000	15,000
Net loss	$ (239,000)	$ (1,000)	$ (461,000)	$ (240,000)
Net loss per share of common stock	$ 0.00	$ 0.00	$ 0.00	$ 0.00
Weighted average number of common shares outstanding - Basic and diluted	145,250,000	145,250,000	145,250,000	144,656,000

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net loss	$ (461,000)	$ (240,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	43,000	48,000
Stock based compensation		5,000
Loss on building lease - security deposit		167,000
Loss on building lease - deferred rent	8,000	57,000
Changes in:
Deferred revenue	(223,000)	(205,000)
Accounts receivable	81,000	81,000
Prepaid expenses and other assets	(63,000)	33,000
Accounts payable	(20,000)	38,000
Accrued expenses and other current liabilities	23,000	6,000
Deferred rent	(37,000)	(77,000)
Net cash used in operating activities	(649,000)	(87,000)
Cash flows from investing activity:
Capital expenditures	(1,000)
Net cash used in investing activities	(1,000)
Cash flows from financing activity:
Proceeds from exercise of stock options, net of costs		23,000
Proceeds from notes payable	286,000
Repayment of notes payable	(21,000)
Repayment of capital leases	(26,000)	(38,000)
Net cash provided by/(used in) financing activities	239,000	(15,000)
Net decrease in cash and cash equivalents	(411,000)	(102,000)
Cash and cash equivalents - beginning of period	457,000	510,000
Cash and cash equivalents - end of period	$ 46,000	$ 408,000

Notes Payable and Prepaid Assets	9 Months Ended
Sep. 30, 2011
Notes Payable and Prepaid Assets	Note G – Notes Payable and Prepaid Assets: The Company entered into a finance agreement with Somerset Leasing Corporation (“SLC”) to pay for an initial non-refundable fee plus an annual support fee for a software license agreement with Informatica Corporation. Under the finance agreement terms, monthly payments of $4,030 are to be made for a period of 36 months starting February 1, 2011. The software will be utilized in connection with the Company’s RPNavigator software. Under the terms of the license agreement, the Company will have to pay Informatica an annual support fee and an “end user license and support services fee” based on covered lives throughout the term of this agreement. As of September 30, 2011, the Company had approximately $77,000 in prepaid assets relating to the license agreement with Informatica, representing the unamortized portion of the licensed software. The Company also had the related liability of approximately $95,000 representing the unamortized amount of the note payable to SLC. As of September 30, 2011, the Company had borrowed $120,000 from its President and Chief Executive Officer and $50,000 from its general counsel. These loans, which are related party transactions, bear interest at six (6%) percent per annum and are due upon demand, are evidenced by promissory notes stating that the holder shall make no demand for repayment before thirty days from the date of the loan.

Notes Payable and Prepaid Assets

9 Months Ended

Sep. 30, 2011

Notes Payable and Prepaid Assets

Note G – Notes Payable and Prepaid Assets:

The Company entered into a finance agreement with Somerset Leasing Corporation (“SLC”) to pay for an initial non-refundable fee plus an annual support fee for a software license agreement with Informatica Corporation. Under the finance agreement terms, monthly payments of $4,030 are to be made for a period of 36 months starting February 1, 2011. The software will be utilized in connection with the Company’s RPNavigator software. Under the terms of the license agreement, the Company will have to pay Informatica an annual support fee and an “end user license and support services fee” based on covered lives throughout the term of this agreement.

As of September 30, 2011, the Company had approximately $77,000 in prepaid assets relating to the license agreement with Informatica, representing the unamortized portion of the licensed software. The Company also had the related liability of approximately $95,000 representing the unamortized amount of the note payable to SLC.

As of September 30, 2011, the Company had borrowed $120,000 from its President and Chief Executive Officer and $50,000 from its general counsel. These loans, which are related party transactions, bear interest at six (6%) percent per annum and are due upon demand, are evidenced by promissory notes stating that the holder shall make no demand for repayment before thirty days from the date of the loan.