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)
|
Large
accelerated filer o
|
Accelerated
filer o
|
Non-accelerated
filer x
|
PART I
- FINANCIAL INFORMATION
|
Page
|
|
Item
1. Financial Statements
|
|
|
Balance
Sheet
|
2
|
|
Statements
of Income
|
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
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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
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14
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|
Item
6. Exhibits
|
15
|
|
SIGNATURES
|
16
|
September
30, 2006
|
December
31, 2005
|
||||||
Assets
|
(audited)
|
||||||
Current
assets
|
|||||||
Cash
and cash equivalents
|
$
|
763,931
|
$
|
1,398,181
|
|||
Cash
held in trust
|
70,283,506
|
68,636,069
|
|||||
Prepaid
expense
|
116,168
|
52,500
|
|||||
Total
current assets
|
$
|
71,163,605
|
$
|
70,086,750
|
|||
Liabilities
and stockholders' equity
|
|||||||
Current
liabilities
|
|||||||
Accounts
payable
|
$
|
12,477
|
$
|
6,996
|
|||
Accrued
expenses
|
82,996
|
98,996
|
|||||
State
income tax payable
|
108,874
|
48,000
|
|||||
Capital
based taxes payable
|
22,693
|
115,000
|
|||||
Deferred
revenue
|
470,865
|
141,543
|
|||||
Total
current liabilities
|
697,905
|
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
|
1,066,780
|
277,295
|
|||||
Total
stockholders' equity
|
56,886,893
|
56,097,408
|
|||||
Total
liabilities and stockholders' equity
|
$
|
71,163,605
|
$
|
70,086,750
|
For
the Three Months Ended September 30, 2006
|
For
the Three Months Ended September 30, 2005
|
For
the Nine Months Ended September 30, 2006
|
For
the Period from April 25, 2005 (inception) to September 30,
2006
|
||||||||||
Revenues
|
|||||||||||||
Interest
income
|
$
|
10,827
|
$
|
8,120
|
$
|
37,442
|
$
|
56,989
|
|||||
Interest
and dividend income from Trust Fund
|
473,658
|
198,141
|
1,318,114
|
1,884,641
|
|||||||||
Total
revenues
|
484,485
|
206,261
|
1,355,556
|
1,941,630
|
|||||||||
Costs
and expenses
|
|||||||||||||
Capital
based taxes
|
22,693
|
-
|
89,238
|
204,238
|
|||||||||
Management
fees
|
22,500
|
15,486
|
67,500
|
105,486
|
|||||||||
Insurance
|
23,985
|
15,000
|
71,788
|
109,288
|
|||||||||
Legal
fees
|
6,501
|
-
|
66,705
|
76,241
|
|||||||||
Travel
|
29,799
|
13,902
|
68,958
|
96,699
|
|||||||||
General
and administrative
|
19,866
|
5,397
|
56,882
|
87,398
|
|||||||||
Formation
costs
|
-
|
-
|
-
|
2,500
|
|||||||||
Total
expenses
|
125,344
|
49,785
|
421,071
|
681,850
|
|||||||||
Income
before taxes
|
359,141
|
156,476
|
934,485
|
1,259,780
|
|||||||||
Provision
for income taxes
|
58,000
|
10,000
|
145,000
|
193,000
|
|||||||||
Net
income
|
$
|
301,141
|
$
|
146,476
|
$
|
789,485
|
$
|
1,066,780
|
|||||
Basic
earnings per share
|
$
|
0.03
|
$
|
0.02
|
$
|
0.07
|
|||||||
Diluted
earnings per share
|
$
|
0.02
|
$
|
0.02
|
$
|
0.06
|
|||||||
Weighted
average basic shares outstanding
|
11,650,000
|
8,184,066
|
11,650,000
|
||||||||||
Weighted
average diluted shares outstanding
|
13,614,272
|
8,184,066
|
13,758,715
|
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
|
-
|
-
|
-
|
-
|
789,485
|
789,485
|
|||||||||||||
Balance
at September 30, 2006
|
11,650,000
|
$
|
1,165
|
-
|
$
|
55,818,948
|
$
|
1,066,780
|
$
|
56,886,893
|
For
the Three Months Ended September 30, 2006
|
For
the Three Months Ended September 30, 2005
|
For
the Nine Months Ended September 30, 2006
|
For
the Period from April 25, 2005 (inception) to September 30,
2006
|
||||||||||
Operating
activities
|
|||||||||||||
Net
income
|
$
|
301,141
|
$
|
146,476
|
$
|
789,485
|
$
|
1,066,780
|
|||||
Adjustments
to reconcile net income
|
|||||||||||||
to
net cash provided by operating activities:
|
|||||||||||||
Decrease
(increase) in prepaid expenses
|
(70,115
|
)
|
(75,000
|
)
|
(63,669
|
)
|
(116,168
|
)
|
|||||
Increase
(decrease) in accounts payable
|
|||||||||||||
and
accrued expenses
|
(30,247
|
)
|
9,132
|
(10,519
|
)
|
14,477
|
|||||||
Increase
in deferred revenue
|
118,340
|
49,504
|
329,323
|
470,865
|
|||||||||
Increase
(decrease) in income tax payable
|
33,874
|
10,000
|
60,874
|
108,874
|
|||||||||
Increase
(decrease) in capital based
|
|||||||||||||
taxes
payable
|
-
|
-
|
(92,307
|
)
|
22,693
|
||||||||
Net
cash provided by operating activities
|
352,993
|
140,112
|
1,013,187
|
1,567,521
|
|||||||||
Investing
activities
|
|||||||||||||
Increase
in cash held in Trust Fund
|
(591,999
|
)
|
(68,175,644
|
)
|
(1,647,437
|
)
|
(70,283,506
|
)
|
|||||
Financing
activities
|
|||||||||||||
Gross
proceeds from Initial Public Offering
|
-
|
75,200,000
|
-
|
75,200,000
|
|||||||||
Proceeds
from issuance of unit option
|
-
|
100
|
-
|
100
|
|||||||||
Proceeds
from notes payable, stockholders
|
-
|
75,000
|
-
|
250,000
|
|||||||||
Proceeds
from issuance of common stock
|
-
|
-
|
-
|
25,000
|
|||||||||
Payments
made on notes payable, stockholders
|
-
|
(250,000
|
)
|
-
|
(250,000
|
)
|
|||||||
Payments
made for costs of Initial Public Offering
|
-
|
(5,523,959
|
)
|
-
|
(5,745,184
|
)
|
|||||||
Net
cash provided by financing activities
|
-
|
69,501,141
|
-
|
69,479,916
|
|||||||||
Net
increase (decrease) in cash
|
(239,006
|
)
|
1,465,609
|
(634,250
|
)
|
763,931
|
|||||||
Cash,
beginning of period
|
1,002,937
|
5,760
|
1,398,181
|
-
|
|||||||||
Cash,
end of period
|
$
|
763,931
|
$
|
1,471,369
|
$
|
763,931
|
$
|
763,931
|
|||||
Supplemental
schedule of non-cash financing activities
|
|||||||||||||
Accrual
of deferred offering costs
|
$
|
-
|
$
|
105,996
|
$
|
-
|
$
|
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:
November 14, 2006
|
By: |
/s/
Derace L. Schaffer, M.D
|
Derace
L. Schaffer, M.D.
|
||
Vice-Chairman
and CEO
(Principal
executive officer)
|
Date:
November 14, 2006
|
By: |
/s/
Matthew P. Kinley
|
Matthew
P. Kinley
|
||
President,
Treasurer and Director
(Principal
financial and accounting officer)
|
|
|
|
Date:
November 14, 2006
|
By: |
/s/
Derace L. Schaffer, M.D.
|
Derace
L. Schaffer, M.D.
|
||
Vice-Chairman
and CEO
(Principal
executive officer)
|
|
|
|
Date:
November 14, 2006
|
By: |
/s/
Matthew P. Kinley
|
Matthew
P. Kinley
|
||
President,
Treasurer and Director
(Principal
financial and accounting officer)
|
|
|
|
Date:
November 14, 2006
|
By: |
/s/
Derace L. Schaffer, M.D
|
Derace
L. Schaffer, M.D.
|
||
Vice-Chairman
and CEO
(Principal
executive officer)
|
|
|
|
Date:
November 14, 2006
|
By: |
/s/
Matthew P. Kinley
|
Matthew
P. Kinley
|
||
President,
Treasurer and Director
(Principal
financial and accounting officer)
|