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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K/A
FOR ANNUAL AND TRANSITION REPORTS PURSUANT TO
SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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(Mark One) |
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
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For the fiscal year ended December 31, 2004; or |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 |
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For the Transition period
from to . |
Commission File Number 000-27212
Endocare, Inc.
(Exact name of registrant as specified in its charter)
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Delaware
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33-0618093 |
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(State of incorporation) |
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(I.R.S. Employer Identification No.) |
201 Technology, Irvine, CA |
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92618 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrants telephone number, including area code:
(949) 450-5400
Securities registered pursuant to Section 12(b) of the
Act: None
Securities registered pursuant to Section 12(g) of the
Act:
Common Stock, $.001 par value
Rights to Purchase Shares of Series A Junior
Participating Preferred Stock
(Title of Class)
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.(1) Yes x No o (2) Yes x No o
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not
contained herein, and will not be contained, to the best of the
registrants knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this
Form 10-K or any amendment to this
Form 10-K. o
Indicate by check mark whether the registrant is an accelerated
filer (as defined in Exchange Act
Rule 12b-2). Yes þ No o
The aggregate market value of the common stock of the Registrant
held by non-affiliates as of June 30, 2004 was
approximately $51,977,890 (based on the last sale price for
shares of the Registrants common stock as reported in the
Pink Sheets for that date). Shares of common stock held by each
executive officer, director and holder of 10 percent or
more of the outstanding common stock have been excluded in that
such persons may be deemed affiliates. Exclusion of shares held
by any person should not be construed to indicate that such
person possesses the power, direct or indirect, to direct or
cause the direction of management or policies of the Registrant,
or that such person is controlled by or under common control
with the Registrant.
There were 29,987,756 shares of the Registrants
common stock issued and outstanding as of March 31, 2005.
Endocare, Inc.
Form 10-K/ A
For the Fiscal Year Ended December 31, 2004
TABLE OF CONTENTS
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Exhibits | |
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23 |
.1 |
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Consent of Independent Registered Public Accounting Firm. |
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31 |
.1 |
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Certification under Section 302 of the Sarbanes-Oxley Act
of 2002 for Craig T. Davenport. |
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31 |
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Certification under Section 302 of the Sarbanes-Oxley Act
of 2002 for Michael R. Rodriguez. |
EXPLANATORY NOTE
This amendment to our annual report on Form 10-K for the
fiscal year ended December 31, 2004 is being filed in order
to furnish the internal control report and related attestation
report required by Section 404 of the Sarbanes-Oxley Act of
2002 (Sarbanes 404), in accordance with the
SECs November 30, 2004 exemptive order.
PART II
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Item 9A. |
Controls and Procedures |
(a) Evaluation of Disclosure Controls and
Procedures. We maintain disclosure controls and procedures
that are designed to ensure that information required to be
disclosed in our reports pursuant to the Securities Exchange Act
of 1934, as amended, is recorded, processed, summarized and
reported within the time periods specified in the SECs
rules and forms and that such information is accumulated and
communicated to our management, including our chief executive
officer and chief financial officer, as appropriate, to allow
for timely decisions regarding required disclosure. In designing
and evaluating the disclosure controls and procedures,
management recognizes that any controls and procedures, no
matter how well designed and operated, can provide only
reasonable assurance of achieving the desired control
objectives, and management is required to apply its judgment in
evaluating the cost-benefit relationship of possible controls
and procedures.
As required by Rule 13a-15(b) of the Securities Exchange of
1934, as amended, we carried out an evaluation, under the
supervision and with the participation of our management,
including our chief executive officer and chief financial
officer, of the effectiveness of the design and operation of our
disclosure controls and procedures as of the end of the period
covered by this report. Based on the foregoing, our chief
executive officer and chief financial officer concluded that our
disclosure controls and procedures were effective at a
reasonable assurance level.
Since March 2003, management has implemented and continues to
implement significant changes in organization, policies and
procedures designed to enhance our disclosure controls and
procedures and the related internal controls, and to achieve
compliance with Sarbanes 404.
(b) Managements Annual Report on Internal Control
Over Financial Reporting. Management of the company is
responsible for establishing and maintaining adequate internal
control over financial reporting as defined in
Rules 13a-15(f) and 15d-15(f) under the Securities Exchange
Act of 1934. Our internal control over financial reporting is
designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with
generally accepted accounting principles. Our internal control
over financial reporting includes those policies and procedures
that:
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(i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the
transactions and dispositions of the assets of the company; |
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(ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company
are being made only in accordance with authorizations of
management and directors of the company; and |
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(iii) provide reasonable assurance regarding prevention or
timely detection of unauthorized acquisition, use or disposition
of the companys assets that could have a material effect
on the financial statements. |
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
Management assessed the effectiveness of the companys
internal control over financial reporting as of
December 31, 2004. In making this assessment, management
used the criteria set forth by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO) in Internal
Control-Integrated Framework.
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Based on our assessment and those criteria, management believes
that the company maintained effective internal control over
financial reporting as of December 31, 2004.
The companys independent registered public accounting firm
has issued an attestation report on managements assessment
of the companys internal control over financial reporting.
That report appears below in this Item 9A.
(c) Changes in Internal Controls. Except as
described above in this Item 9A, there was no change in our
internal control over financial reporting during our fourth
fiscal quarter for 2004 that has materially affected, or is
reasonably likely to materially affect, our internal control
over financial reporting.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON INTERNAL CONTROL OVER FINANCIAL REPORTING
To the Board of Directors
Endocare, Inc.
We have audited managements assessment, included in the
accompanying Managements Annual Report on Internal Control
Over Financial Reporting, that Endocare, Inc. (Endocare)
maintained effective internal control over financial reporting
as of December 31, 2004, based on criteria established in
Internal Control Integrated Framework issued
by the Committee of Sponsoring Organizations of the Treadway
Commission (the COSO criteria). Endocares management is
responsible for maintaining effective internal control over
financial reporting and for its assessment of the effectiveness
of internal control over financial reporting. Our responsibility
is to express an opinion on managements assessment and an
opinion on the effectiveness of Endocares internal control
over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain
reasonable assurance about whether effective internal control
over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of
internal control over financial reporting, evaluating
managements assessment, testing and evaluating the design
and operating effectiveness of internal control, and performing
such other procedures as we considered necessary in the
circumstances. We believe that our audit provides a reasonable
basis for our opinion.
A companys internal control over financial reporting is a
process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with
generally accepted accounting principles. A companys
internal control over financial reporting includes those
policies and procedures that (1) pertain to the maintenance
of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions
are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company
are being made only in accordance with authorizations of
management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the
companys assets that could have a material effect on the
financial statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.
In our opinion, managements assessment that Endocare
maintained effective internal control over financial reporting
as of December 31, 2004, is fairly stated, in all material
respects, based on the COSO criteria. Also, in our opinion,
Endocare maintained, in all material respects, effective
internal control over financial reporting as of
December 31, 2004, based on the COSO criteria.
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We have also audited, in accordance with the standards of the
Public Company Accounting Oversight Board (United States), the
consolidated balance sheets of Endocare as of December 31,
2003 and 2004, and the related consolidated statements of
operations, stockholders equity, and cash flows for each
of the three years in the period ended December 31, 2004 of
Endocare, Inc. and our report dated March 4, 2005, except
for Note 14, as to which the date is March 11, 2005
expressed an unqualified opinion thereon.
Los Angeles, California
April 29, 2005
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SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) 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.
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By: |
/s/ Craig T. Davenport |
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Craig T. Davenport |
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Chairman and Chief Executive Officer |
Date: May 2, 2005
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Exhibit Index
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Exhibits | |
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Description |
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23 |
.1 |
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Consent of Independent Registered Public Accounting Firm. |
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31 |
.1 |
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Certification under Section 302 of the Sarbanes-Oxley Act
of 2002 for Craig T. Davenport. |
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31 |
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Certification under Section 302 of the Sarbanes-Oxley Act
of 2002 for Michael R. Rodriguez. |
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