SECURITIES AND EXCHANGE COMMISSION Washington, DC. 20549 FORM 10-Q AMENDED (Mark One) [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended JUNE 30, 2000 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 0-15235 --------------------------------------------------------- MITEK SYSTEMS, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 87-0418827 - --------------------------------- ----------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 10070 CARROLL CANYON ROAD, SAN DIEGO, CALIFORNIA 92131 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (858) 635-5900 ----------------------------- - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No . --- --- There were 11,103,525 shares outstanding of the registrant's Common Stock as of August 10, 2000. PART 1: FINANCIAL INFORMATION MITEK SYSTEMS, INC CONSOLIDATED BALANCE SHEETS UNAUDITED See notes to consolidated financial statements
JUNE 30, SEPTEMBER 30, 2000 1999 ----------------------------------------------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 492,328 $ 1,398,589 Accounts receivable-net 8,454,377 5,006,081 Inventories-net 160,394 58,082 Prepaid expenses and other assets 170,270 69,232 ----------------------------------------------------- Total current assets 9,277,369 6,531,984 PROPERTY AND EQUIPMENT-net 374,946 281,571 OTHER ASSETS 613,662 575,298 ----------------------------------------------------- TOTAL ASSETS $ 10,265,977 $ 7,388,853 ===================================================== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,305,525 $ 738,195 Accrued payroll and related taxes 767,577 720,300 Unearned income 337,670 203,408 Other accrued liabilities 378,676 53,885 ----------------------------------------------------- Total current liabilities 2,789,448 1,715,788 LONG-TERM LIABILITIES 44,834 51,040 ----------------------------------------------------- TOTAL LIABILITIES 2,834,282 1,766,828 COMMITMENTS AND CONTINGENCIES (Note 5) STOCKHOLDERS' EQUITY Common stock - $.001 par value; 20,000,000 shares authorized, 10,314,138 and 11,573,152 issued and outstanding, respectively 11,069 10,439 Additional paid-in capital 9,141,639 8,507,613 Accumulated deficit (1,721,013) (2,896,027) ----------------------------------------------------- Total stockholders' equity 7,431,695 5,622,025 ----------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,265,977 $ 7,388,853 ===================================================== MITEK SYSTEMS, INC CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED See notes to consolidated financial statements
THREE MONTHS ENDED NINE MONTHS ENDED JUNE 30, JUNE 30, 2000 1999 2000 1999 ---------------------------------------------------------------------------- NET SALES $ 3,535,734 $ 2,428,501 $ 8,855,026 $ 6,709,487 COST OF SALES 786,473 329,836 1,500,182 1,081,956 ---------------------------------------------------------------------------- GROSS MARGIN 2,749,261 2,098,665 7,354,844 5,627,531 COSTS AND EXPENSES: Operations 390,487 157,195 898,410 425,995 General and administrative 563,255 366,315 1,457,905 1,263,130 Research and development 704,358 385,295 1,676,959 958,344 Selling and marketing 860,400 696,813 2,157,907 1,785,974 ---------------------------------------------------------------------------- Total costs and expenses 2,518,500 1,605,618 6,191,181 4,433,443 ---------------------------------------------------------------------------- OPERATING INCOME 230,761 493,047 1,163,663 1,194,088 Interest and other income - net 21,627 8,651 30,350 26,036 ---------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 252,388 501,698 1,194,013 1,220,124 PROVISION FOR INCOME TAXES 0 0 19,000 10,000 ---------------------------------------------------------------------------- NET INCOME $ 252,388 $ 501,698 $ 1,175,013 $ 1,210,124 EARNINGS PER SHARE - BASIC $ 0.02 $ 0.05 $ 0.11 $ 0.11 ============================================================================ WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC 11,068,167 10,321,012 10,775,319 10,788,694 ============================================================================ EARNINGS PER SHARE - DILUTED $ 0.02 $ 0.05 $ 0.10 $ 0.11 ============================================================================ WEIGHTED AVERAGE NUMBER OF COMMON SHARES AND COMMON SHARE EQUIVALENTS OUTSTANDING - DILUTED 11,599,150 10,747,063 11,212,848 11,033,560 ============================================================================ MITEK SYSTEMS, INC CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED See notes to consolidated financial statements
NINE MONTHS ENDED JUNE 30, 2000 1999 ---------------------------------------------------------- Net income $ 1,175,013 $ 1,210,124 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 311,397 241,805 Loss on sale of property and equipment 1,010 3,907 Value of stock options granted to non-employee 31,115 9,181 Changes in assets and liabilities: Accounts receivable (3,448,296) (1,471,067) Inventories, prepaid expenses, and other assets (442,150) 169,083 Accounts payable, accrued payroll and related taxes, unearned income, and other accrued liabilities 1,067,454 (372,730) ---------------------------------------------------------- Net cash used in operating activities (1,304,457) (209,697) INVESTING ACTIVITIES Proceeds from note receivable 0 56,478 Purchases of property and equipment (205,347) (165,704) ---------------------------------------------------------- Net cash used in investing activities (205,347) (109,226) FINANCING ACTIVITIES Repurchase of common stock 0 (14,150) Proceeds from exercise of stock options and warrants 603,543 36,744 ---------------------------------------------------------- Net cash provided by financing activities 603,543 22,594 ---------------------------------------------------------- NET DECREASE IN CASH (906,261) (296,329) CASH AT BEGINNING OF PERIOD 1,398,589 1,740,760 ---------------------------------------------------------- CASH AT END OF PERIOD $ 492,328 $ 1,444,431 ========================================================== Significant non-cash investing and financing activities: 591,114 shares of unregistered common stock reacquired pursuant to settlement agreement - see Note 3 $ - $ 369,446 763,922 shares of unregistered common stock reacquired pursuant to revised cross investment and licensing agreements - see Note 4 $ - $ 477,451 Cash paid for income taxes $ 70,800 $ - SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. MITEK SYSTEMS, INC. Date: September 7, 2000 /s/ John Thornton -------------------------------------- John Thornton, Chairman, President and Chief Executive Officer