CarePayment Technologies, Inc.

CIK:0001142406|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Dec. 31, 2012	Dec. 31, 2011
Service fees revenue	$ 5,587,152	$ 6,100,143
Royalty & implementation fees	47,500	650,000
Total revenue	5,634,652	6,750,143
Cost of revenue	5,498,092	4,833,510
Gross margin	136,560	1,916,633
Operating expenses:
Sales, general and administrative	4,804,866	6,245,756
Loss from operations	(4,668,306)	(4,329,123)
Other income (expense):
Other income (expense)	56,452	(4,035)
Interest expense:
Interest expense	(563,401)	(102,242)
Accretion of preferred stock discount	(9,254,929)	(406,401)
Total interest expense	(9,818,330)	(508,643)
Other income (expense), net	(9,761,878)	(512,678)
Net loss before income tax	(14,430,184)	(4,841,801)
Income tax expense	32,966	17,954
Net loss	(14,463,150)	(4,859,755)
Less: Net loss attributable to noncontrolling interest	(41,712)	(27,314)
Net loss attributable to CarePayment Technologies, Inc.	$ (14,421,438)	$ (4,832,441)
Net loss per share:
Basic and diluted	$ (1.2)	$ (0.47)
Weighted average number of shares outstanding:
Basic and diluted	12,033,715	10,231,119

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Dec. 31, 2012	Dec. 31, 2011
Cash Flows Used In Operating Activities:
Net loss	$ (14,463,150)	$ (4,859,755)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	965,330	624,892
Loss on intangible asset write-off		4,833
Accretion of preferred stock discount	9,254,929	406,401
Stock-based compensation	2,363	14,821
Decrease (increase) in assets:
Related party receivables	(58,170)	(251,647)
Prepaid expenses	(27,667)	(59,650)
Deposits	(17,000)	(19,000)
Increase (decrease) in liabilities:
Accounts payable	118,206	(150,701)
Accrued interest		(423,210)
Deferred revenue	(40,000)	75,000
Deferred rent	(12,421)	75,901
Accrued liabilities	(428,232)	387,908
Servicing liability	102,400
Prepaid deposit	39,900
Related party liabilities	171,179	(19,848)
Net cash used in operating activities	(4,392,333)	(4,194,055)
Cash Flows Provided By (Used In) Investing Activities:
Purchase of property and equipment	(644,816)	(691,298)
Net investment in loans receivable	60,384
Proceeds from sale of loan receivable	(60,384)
Net cash provided by (used in) investing activities	(644,816)	(691,298)
Cash Flows Provided By (Used In) Financing Activities:
Payments on notes payable		(577,743)
Proceeds from sale of common stock		1,500,000
Proceeds from revolving credit line	5,100,000	3,631,000
Repurchase of shares, net of proceeds from the exercise of related options	(2,405)	(21,031)
Net cash provided by financing activities	5,097,595	4,532,226
Change in cash and cash equivalents	60,446	(353,127)
Cash and cash equivalents, beginning of period	202,848	555,975
Cash and cash equivalents, end of period	263,294	202,848
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	563,401	525,452
Cash paid for income taxes	26,310	14,146
Supplemental Disclosure of Non-cash Financing Activities:
Conversion of Series E Convertible Preferred Stock into shares of Class A Common Stock	40,810
Conversion of note payable in shares of Class A Common Stock	2,000,000
Conversion of Series D to Class A Common Stock	$ 7,907,200

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2012	Dec. 31, 2011
Current Assets:
Cash and cash equivalents	$ 263,294	$ 202,848
Related party receivables	338,433	280,263
Prepaid expenses	127,532	99,865
Total current assets	729,259	582,976
Property and equipment, net	1,017,323	949,910
Intangible assets, net	8,424,333	8,812,260
Deposits	53,100	36,100
Goodwill	13,335	13,335
Total assets	10,237,350	10,394,581
Current Liabilities:
Accounts payable	976,949	858,743
Related party liabilities	426,232	255,053
Accrued liabilities	45,159	473,391
Deferred revenue	35,000	75,000
Deferred rent	16,401	13,780
Mandatorily redeemable preferred stock, Series D, no par value: 1,200,000 shares authorized, 409,280 outstanding at December 31, 2012 and 1,200,000 at 2011, net of discount of $1,305,215 and $10,560,144 at December 31, 2012 and 2011, respectively, liquidation preference of $4,092,800 at December 31, 2012	2,787,585
Current maturities of notes payable	6,731,000	3,631,000
Total current liabilities	11,018,326	5,306,967
Deferred rent, net of current portion	47,079	62,121
Mandatorily redeemable preferred stock, Series D, Long-Term		1,439,856
Servicing liability	102,400
Prepaid deposit	39,900
Total liabilities	11,207,705	6,808,944
CarePayment Technologies, Inc. shareholders' equity (deficit):
Preferred stock, Series E, no par value: 250,000 shares authorized, 93,419 and 97,500 shares issued and outstanding at December 31, 2012 and 2011	130,787	136,500
Common stock, no par value: Class A, 65,000,000 shares authorized, 12,577,242 and 2,628,518 issued and outstanding at December 31, 2012 and 2011, respectively; Class B, 10,000,000 shares authorized, 8,010,092 shares issued and outstanding at December 31, 2012 and 2011, respectively	29,513,723	19,568,120
Additional paid-in-capital	21,839,596	21,872,328
Accumulated deficit	(52,381,495)	(37,960,057)
Total CarePayment Technologies, Inc. shareholders' equity	(897,389)	3,616,891
Noncontrolling interest	(72,966)	(31,254)
Total shareholders' (deficit) equity	(970,355)	3,585,637
Total liabilities and shareholders' (deficit) equity	$ 10,237,350	$ 10,394,581