Delaware
|
20-2726770
|
(State
or other jurisdiction of
incorporation)
|
(I.R.S. Employer Identification
No.)
|
2116 Financial Center | ||
666 Walnut Street | ||
Des Moines, Iowa |
50309
|
|
(Address of principal executive offices) |
(zip
code)
|
PART
I - FINANCIAL INFORMATION
|
Page
|
Item
1. Financial Statements
|
|
Balance
Sheet
|
2
|
Statements
of Operations
|
3
|
Statements
of Stockholders' Equity
|
4
|
Statements
of Cash Flows
|
5
|
Notes
to Financial Statements
|
6
|
Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
|
11
|
Item
3. Quantitative and Qualitative Disclosures about Market
Risk
|
12
|
Item
4. Controls and Procedures
|
12
|
PART II
- OTHER INFORMATION
|
|
Item
1. Legal Proceedings
|
12
|
Item
1A. Risk Factors
|
12
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
14
|
Item
3. Defaults upon Senior Securities
|
14
|
Item
4. Submission of Matters to a Vote of Security Holders
|
14
|
Item
5. Other Information
|
14
|
Item
6. Exhibits
|
15
|
SIGNATURES
|
16
|
|
June
30,
2006 |
December
31,
2005 |
|||||
Assets
|
(audited)
|
|
|||||
Current
assets
|
|||||||
Cash
and cash equivalents
|
$
|
1,002,937
|
$
|
1,398,181
|
|||
Cash
held in trust
|
69,691,507
|
68,636,069
|
|||||
Prepaid
expense
|
46,053
|
52,500
|
|||||
Total
current assets
|
$
|
70,740,497
|
$
|
70,086,750
|
|||
Liabilities
and stockholders' equity
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
42,723
|
$
|
6,996
|
|||
Accrued
expenses
|
82,997
|
98,996
|
|||||
State
income tax payable
|
75,000
|
48,000
|
|||||
Capital
based taxes payable
|
22,693
|
115,000
|
|||||
Deferred
revenue
|
352,525
|
141,543
|
|||||
Total
current liabilities
|
575,938
|
410,535
|
|||||
Common
stock, subject to possible redemption
|
|||||||
1,879,060
shares, at conversion value
|
13,578,807
|
13,578,807
|
|||||
Stockholders'
equity
|
|||||||
Preferred
stock, $.0001 par value, 1,000,000 shares authorized; none
|
|||||||
issued
and outstanding
|
-
|
-
|
|||||
Common
stock, $.0001 par value, 100,000,000 shares authorized;
|
|||||||
11,650,000
shares issued and outstanding (which includes 1,879,060
|
|||||||
subject
to possible conversion)
|
1,165
|
1,165
|
|||||
Common
stock warrants (9,400,000 outstanding)
|
-
|
-
|
|||||
Paid-in
capital in excess of par
|
55,818,948
|
55,818,948
|
|||||
Equity
accumulated during the development stage
|
765,639
|
277,295
|
|||||
Total
stockholders' equity
|
56,585,752
|
56,097,408
|
|||||
Total
liabilities and stockholders' equity
|
$
|
70,740,497
|
$
|
70,086,750
|
|
For
the Three Months Ended
June 30, 2006 |
For
the Six
Months Ended June 30, 2006 |
For
the
Period from April 25, 2005 (inception) to June 30, 2006 |
|||||||
Revenues
|
||||||||||
Interest
income
|
$
|
12,305
|
$
|
26,615
|
$
|
46,162
|
||||
Interest
and dividend income from Trust Fund
|
453,743
|
844,456
|
1,410,983
|
|||||||
Total
revenues
|
466,048
|
871,071
|
1,457,145
|
|||||||
Costs
and expenses
|
||||||||||
Capital
based taxes
|
27,079
|
66,545
|
181,545
|
|||||||
Management
fees
|
22,500
|
45,000
|
82,986
|
|||||||
Insurance
|
23,901
|
47,803
|
85,303
|
|||||||
Legal
fees
|
14,384
|
60,204
|
69,740
|
|||||||
Travel
|
19,756
|
39,159
|
66,900
|
|||||||
General
and administrative
|
20,534
|
37,016
|
67,532
|
|||||||
Formation
costs
|
-
|
-
|
2,500
|
|||||||
Total
expenses
|
128,154
|
295,727
|
556,506
|
|||||||
Income
before taxes
|
337,894
|
575,344
|
900,639
|
|||||||
Provision
for income taxes
|
54,000
|
87,000
|
135,000
|
|||||||
Net
income
|
$
|
283,894
|
$
|
488,344
|
$
|
765,639
|
||||
Basic
earnings per share
|
$
|
0.02
|
$
|
0.04
|
||||||
Diluted
earnings per share
|
$
|
0.02
|
$
|
0.04
|
||||||
Weighted
average basic shares outstanding
|
11,650,000
|
11,650,000
|
||||||||
Weighted
average diluted shares outstanding
|
13,937,768
|
13,831,547
|
|
Common
Stock Shares |
Common
Par Amount |
Common
Stock Warrants |
Additional
Paid in Capital |
Equity
Accumulated During the Development Stage
|
Stockholders'
Equity
|
|||||||||||||
Common
shares issued to initial
|
|||||||||||||||||||
stockholders
at $.0111 per share
|
2,250,000
|
$
|
150
|
-
|
$
|
24,850
|
$
|
-
|
$
|
25,000
|
|||||||||
Stock
dividend - July 8, 2005
|
-
|
50
|
-
|
(50
|
)
|
-
|
-
|
||||||||||||
Stock
dividend - July 22, 2005
|
-
|
25
|
-
|
(25
|
)
|
-
|
-
|
||||||||||||
Sale
of 9,000,000 units, net of
|
|||||||||||||||||||
underwriters'
discount and offering
|
|||||||||||||||||||
expenses
(includes 1,799,100 shares
|
|||||||||||||||||||
subject
to possible conversion)
|
9,000,000
|
900
|
-
|
66,364,920
|
-
|
66,365,820
|
|||||||||||||
Proceeds
of exercise of underwriters'
|
|||||||||||||||||||
over-allotment
option for 400,000
|
|||||||||||||||||||
units,
net of commissions. (includes
|
|||||||||||||||||||
79,960
shares subject to possible
|
|||||||||||||||||||
conversion).
|
400,000
|
40
|
-
|
3,007,960
|
-
|
3,008,000
|
|||||||||||||
Proceeds
subject to possible
|
|||||||||||||||||||
conversion
of 1,879,060 shares
|
-
|
-
|
-
|
(13,578,807
|
)
|
-
|
(13,578,807
|
)
|
|||||||||||
Proceeds
from issuance of unit options
|
-
|
-
|
-
|
100
|
-
|
100
|
|||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
277,295
|
277,295
|
|||||||||||||
Balance
at December 31, 2005
|
11,650,000
|
$
|
1,165
|
-
|
$
|
55,818,948
|
$
|
277,295
|
$
|
56,097,408
|
|||||||||
Net
income
|
-
|
-
|
-
|
-
|
488,344
|
488,344
|
|||||||||||||
Balance
at June 30, 2006
|
11,650,000
|
$
|
1,165
|
-
|
$
|
55,818,948
|
$
|
765,639
|
$
|
56,585,752
|
|
For
the Three Months Ended
June 30, 2006 |
For
the Six
Months Ended June 30, 2006 |
For
the
Period from April 25, 2005 (inception) to June 30, 2006 |
|||||||
Operating
activities
|
||||||||||
Net
income
|
$
|
283,894
|
$
|
488,344
|
$
|
765,639
|
||||
Adjustments
to reconcile net income
|
||||||||||
to
net cash provided by operating activities:
|
||||||||||
Decrease
(increase) in prepaid expenses
|
4,276
|
6,448
|
(46,053
|
)
|
||||||
Increase
(decrease) in accounts payable and accrued expenses
|
(189,797
|
)
|
19,727
|
44,724
|
||||||
Increase
in deferred revenue
|
113,365
|
210,982
|
352,525
|
|||||||
Increase
in income tax payable
|
54,000
|
27,000
|
75,000
|
|||||||
Increase
(decrease) in capital based taxes payable
|
(18,307
|
)
|
(92,307
|
)
|
22,693
|
|||||
Net
cash provided by operating activities
|
247,431
|
660,194
|
1,214,528
|
|||||||
Investing
activities
|
||||||||||
Increase
in cash held in Trust Fund
|
(567,108
|
)
|
(1,055,438
|
)
|
(69,691,507
|
)
|
||||
Financing
activities
|
||||||||||
Gross
proceeds from Initial Public Offering
|
-
|
-
|
75,200,000
|
|||||||
Proceeds
from issuance of unit option
|
-
|
-
|
100
|
|||||||
Proceeds
from notes payable, stockholders
|
-
|
-
|
250,000
|
|||||||
Proceeds
from issuance of common stock
|
-
|
-
|
25,000
|
|||||||
Payments
made on notes payable, stockholders
|
-
|
-
|
(250,000
|
)
|
||||||
Payments
made for costs of Initial Public Offering
|
-
|
-
|
(5,745,184
|
)
|
||||||
Net
cash provided by financing activities
|
-
|
-
|
69,479,916
|
|||||||
Net
increase in cash
|
(319,677
|
)
|
(395,244
|
)
|
1,002,937
|
|||||
Cash,
beginning of period
|
1,322,614
|
1,398,181
|
-
|
|||||||
Cash,
end of period
|
$
|
1,002,937
|
$
|
1,002,937
|
$
|
1,002,937
|
||||
Supplemental
schedule of non-cash financing activities
|
||||||||||
Accrual
of deferred offering costs
|
$
|
-
|
$
|
-
|
$
|
80,996
|
· |
the
market price of the underlying shares of common stock is lower than
the
exercise price;
|
· |
the
holder of the Warrants has not confirmed in writing that the underwriters
solicited the exercise;
|
· |
the
Warrants are held in a discretionary
account;
|
· |
the
Warrants are exercised in an unsolicited transaction;
or
|
· |
the
arrangement to pay the commission is not disclosed in the prospectus
provided to Warrant holders at the time of
exercise.
|
31.1
|
Section 302
Certification of Chief Executive Officer
|
31.2
|
Section 302
Certification of Chief Financial Officer
|
32.1
|
Section 906
Certification of Chief Executive Officer
|
32.2
|
Section 906
Certification of Chief Financial
Officer
|
|
HEALTHCARE
ACQUISITION CORP.
|
|||
|
|
|||
|
|
|
||
Date:
August 14, 2006
|
By:
|
/s/
Derace L. Schaffer, M.D
|
|
|
|
|
Derace
L. Schaffer, M.D.
|
||
|
|
Vice-Chairman
and CEO
(Principal
executive officer)
|
||
Date:
August 14, 2006
|
By:
|
/s/
Matthew P.
Kinley
|
|
|
|
|
Matthew
P. Kinley
|
||
|
|
President,
Treasurer and Director
(Principal
financial and accounting officer)
|
Date:
August 14, 2006
|
By:
|
/s/
Derace L. Schaffer,
M.D.
|
|
|
|
Derace
L. Schaffer, M.D.
|
|
|
|
Vice-Chairman
and CEO
(Principal
executive officer)
|
Date:
August 14, 2006
|
By:
|
/s/
Matthew P.
Kinley
|
|
|
|
Matthew
P. Kinley
|
|
|
|
President,
Treasurer and Director
(Principal
financial and accounting officer)
|
|
|
|
|
Date:
August 14, 2006
|
By:
|
/s/
Derace L. Schaffer,
M.D
|
|
|
|
Derace
L. Schaffer, M.D.
|
|
|
|
Vice-Chairman
and CEO
(Principal
executive officer)
|
Date:
August 14, 2006
|
By:
|
/s/
Matthew P. Kinley
|
|
|
|
Matthew
P. Kinley
|
|
|
|
President,
Treasurer and Director
(Principal
financial and accounting officer)
|