X-Message-Number: 2886
Date: Wed, 13 Jul 94 15:00:24
From: <>
Subject: CRYONICS
To: CryoNet
Subj: Alcor Posts '94 Financial Results
INTRODUCTION
The June issue of the *Alcor Pheonix* contained a complete
reproduction of the Alcor Foundation's financial statements for the
year ended 31 December, 1993. These financials, compiled by Alcor's
CPA, Warren Robertson, show continuing improvement in strength and
stability.
Alcor's General operating Fund, which is perenially short of
cash, had a surplus of $49K on $291K in revenues, a net margin of 17%.
This fund's *positive* cash flow for the year was $59K.
Unfortunately, this gain was offset by a negative cash flow of $57K
in Alcor's Research Fund due to an un-funded suspension.
Results in Alcor's Patient Care Fund were all on the upside.
Total return on assets in the PCF was 9.2%. After expenses, the PCF
added $49K to its net assets (sums over and above the minimum
estimated reserve for maintaining the patient population), an
increase of 107%. This was achieved without the addition of capital
from suspension funding. The total assets of the fund are now over
$1.2 Million.
Overall, in the total of all its funds, Alcor ran a surplus
of $97K on revenues of $474K, a 20.5% margin. The organization's
total positive cash flow for the year was $119K. At the end of the
year, cash and cash equivalents were up by $25K, a 50% increase.
Property & Equipment, as well as both fixed and liquid investments
also gained in five figure amounts.
Mr. Robertson's compilation is as follows:
**********************************************************************
Board of Directors
Alcor Life Extension Foundation
Scottsdale, Arizona
I have compiled the accompanying balance sheet of Alcor Life
Extension Foundation, a non-profit organization, as of December 31,
1993, and the related statements of revenues and expenses and
changes in net assets and combined statement of cash flows for the
period then ended, in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute of
Certified Public Accountants.
A compilation is limited to presenting in the form of
financial statements information that is the representation of
management. I have not audited or reviewed the accompanying
financial statements and, accordingly, do not express an opinion or
any other form of assurance on them.
WARREN L. ROBERTSON, CPA
Glendale, California
April 30, 1994
ALCOR LIFE EXTENSION FOUNDATION NOTES TO FINANCIAL STATEMENTS FOR
THE YEAR ENDED DECEMBER 31, 1993
1. Summary of significant accounting policies:
Fund accounting.
To ensure observance of limitations and restrictions placed on the
use of resources, the accounts of the Foundation are maintained
in accordance with the principles of fund accounting. This is
the procedure by which resources for various purposes are
classified for accounting and reporting purposes into funds
established according to their nature and purposes. All financial
transactions have been recorded by fund group into the following
funds:
General: Revenues which are not restricted as to usage and expenses
for the general operations of the Foundation are classified into
the general fund. The Board of Directors has determined that 10% of
certain general fund revenues should be set aside for patient care
and accordingly, approximately $12,272 has been transferred to the
patient care fund.
Patient care: Upon deanimation, a pre-established amount,
received generally from insurance proceeds, is estimated for the long-
term care of patients, placed in the patient care fund and
classified as Deferred Patient Care Reserve. Such amounts are
invested in fixed income and equity securities, the income of which
is restricted in use to the costs of patient care and for any
ultimate costs of reanimation.
Research: The portion of the proceeds received upon deanimation
which is not designated for long term patient care is placed in
the research fund and used for the initial costs of suspension.
Any excess over such costs is transferred to the general fund and
is available for the operations of the Foundation. Research grants
restricted to specific research activities are also placed in the
research fund.
Endowment: The Foundation received a bequest from a member which
was, per the last will and testament, unrestricted as to usage.
However, the Board of Directors restricted usage of the bequest to
investments in securities and for short-term loans to the
general fund for operating purposes. Income earned by endowment
fund investments is unrestricted and, accordingly, is classified as
general fund income.
Building fund: Donations received are placed in the building fund
for use on the expenses to be incurred on Alcor's move to Arizona.
Property & equipment.
Property & equipment & leasehold improvements are recorded at
cost. Major additions and betterments are charged to property
accounts while replacements, maintenance and repairs which do not
improve or extend the life of the respective assets are expensed in
the year acquired. When property is retired or otherwise disposed
of, the cost is removed from the asset account, accumulated
depreciation is charged for the depreciation provided and the
difference, after taking into account any salvage amount, is
charged or credited to operations.
Income taxes.
The Foundation is a non-profit organization exempt from income
taxes under Internal Revenue Code section 501(c)3. Accordingly,
no income taxes are provided in the accompanying financial
statements.
2. Investments:
Investments in cash and equivalents are presented in the financial
statements at market value and consist of mutual funds,
U.S.Government obligations and corporate stocks and bonds.
Investments in property consists of the following:
Investment in AZ building $195,000
Investment in U.K. building 28,000
Investment in Symbex limited partnership 85,000
--------
$308,000
========
3. Other assets:
Other assets consist of the following:
Prepaid suspension fees $100,012
Prepaid expenses 5,094
--------
$105,106
========
4. Property & equipment:
Machinery & equipment $315,528
Leasehold improvements 19,655
--------
335,183
Less accumulated depreciation & amortization (100,397)
---------
$234,786
=========
5. Contingencies:
The Foundation is negotiating with the heirs of a member in
suspension with regard to a disputed interest in royalties
from certain artistic properties, of which $73,320 and $99,352
have been recorded in the general fund and endowment fund,
respectively, as accounts receivable in the accompanying
financial statements.
ALCOR LIFE EXTENSION FOUNDATION BALANCE SHEET
DECEMBER 31, 1993
Patient
General Care Research Endowment Building
ASSETS Fund Fund Fund Fund Fund Total
Cash & cash
equivalents $32,699 $0 $2,563 $0 $40,704 $75,966
Investments:
Cash &
equivalents - 800,840 - 64,691 - 865,531
Property - 214,000 - 55,000 39,000 308,000
Accounts
receivable,
net of
allowance
for doubtful
accounts
of $3,000. 86,295 - - 99,352 - 185,647
Other assets 5,094 - 100,012 - - 105,106
Property &
equipment, net
of accumulated
depreciation. 15,136 178,007 41,643 - - 234,786
------- -------- -------- -------- ------- ---------
$139,224 $1,192,847 $144,218 $219,043 $79,704 1,775,036
======== ========== ======== ======== ======= =========
LIABILITIES AND
NET ASSETS
Accounts
payable &
other
liabilities $28,886 $49 $482 $0 $0 $29,353
Capital lease
obligations 7,870 - - - - 7,870
Deferred
patient care
reserve - 1,080,520 100,000 - - 1,180,520
Due to(from)
other funds 60,640 16,873 81,442 (183,504) 24,549 -0-
-------- --------- -------- --------- ------ ---------
Total
liabilities 97,396 1,097,378 181,924 (183,504) 24,549 1,217,743
-------- --------- -------- --------- ------ ---------
Net assets
Unrestricted:
Available for
operations 26,692 - - - - 26,692
Net investment
in plant 15,136 - - - - 15,136
41,828 - - - - 41,828
Restricted -0- 95,469 (37,706) 402,547 55,155 515,465
-------- --------- --------- -------- ------ ---------
Total
net assets 41,828 95,469 (37,706) 402,547 55,155 557,293
-------- --------- --------- --------- ------- ---------
$139,224 1,192,847 $144,218 $219,043 79,704 $1,775,036
The accompanying accountants compilation report and notes should be
read with these financial statements.
ALCOR LIFE EXTENSION FOUNDATION
STATEMENT OF REVENUES AND EXPENSES
AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED DECEMBER 31, 1993
Patient
General Care Research Endowment Building Total
Fund Fund Fund Fund Fund
Revenues:
Membership
fees $83,494 $0 $0 $0 $0 $83,494
Public
donations 178,783 19,286 4,819 464 65,682 269,034
Interest
income 6,456 47,525 120 3,929 279 58,309
Investment value
gain/(loss) - 42,700 - (1,497) - 41,203
Other 21,934 100 -0- -0- -0- 22,034
------- ------- ------- -------- -------- --------
Total revenues 290,667 109,611 4,939 2,896 65,961 474,074
------- ------- ------- -------- -------- --------
Expenses:
Depreciation 9,514 10,603 2,204 - - 22,321
Salaries 66,214 17,001 13,593 - 5,500 102,308
Education/
magazine 24,980 - - - - 24,980
Emergency
response - - 17,601 - - 17,601
Facility
repair/maint. 17,758 - - - - 17,758
Insurance 10,558 672 360 - 219 11,553
Interest 1,260 - 32 - - 1,292
Legal 11,357 7,797 - - 3,436 22,590
Medical
supplies - - 3,205 - - 3,205
Liquid
nitrogen - 13,663 - - - 13,663
Postage 11,229 366 795 - 607 12,997
Professional
fees 19,278 - - - - 19,278
Rent 26,263 - - - - 26,263
Supplies 5,778 947 60 - - 6,785
Suspension
expenses - 16,709 - - - 16,709
Taxes &
licenses (1,216) - - - - (1,216)
Telephone 19,824 - 246 - 177 19,991
Travel 3,927 - 505 - 617 5,049
Other 14,611 9,279 9,246 - 762 33,898
-------- ------- ------ ------- ------ -------
Total
expenses 241,335 60,328 64,556 -0- 10,806 377,025
-------- ------- ------ ------- ------ -------
Excess of
revenues
over expenses
(expenses over
revenues) 49,332 49,283 (59,617) 2,896 55,155 97,049
Net assets:
Beginning of
period (7,504) 46,186 21,911 399,651 -0- 460,244
End of period $41,828 $95,469 ($37,706) $402,547 $55,155 $557,293
======= ======= ========= ======== ======= ========
The accompanying accountants compilation report and notes
should be read with these financial statements.
ALCOR LIFE EXTENSION FOUNDATION
COMBINED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1993
Cash flows provided by operating activities:
Excess of revenues over expenses $97,049
Depreciation expense 22,321 $119,370
-------
Changes in assets and liabilities:
(Increase) in assets:
Accounts receivable (77,816)
Other assets (41,752)
Increase/(decrease) in liabilities:
Accounts payable (22,910)
Deferred patient care reserve 107,538
--------
Total adjustments (34,940)
Net cash provided by operating activities 84,430
Cash flows used for investing activities:
Short-term investments (26,813)
Purchase of property & equipment - net (9,055)
Net cash used for investing activities (35,868)
Cash flows provided by (used for) financing activities:
Increase in capital lease obligations - net 1,933
Notes payable (24,947)
--------
Net cash used for financing activities (23,014)
--------
Net increase in cash & cash equivalents 25,548
Cash & cash equivalents, beginning of year 50,418
-------
Cash & cash equivalents, end of year $75,966
========
The accompanying accountants compilation
report and notes should be read with these
financial statements.
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