SENETEK PLC /ENG/ - 10-Q Quarterly Report

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

x	Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly period ended September 30, 2002

or

o	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from ______ to ______

Commission file number 0-14691

SENETEK PLC

(Exact name of registrant as specified in its charter)

England		77-0039728

(State or other jurisdiction of Incorporation or organization)		(I.R.S. Employer Identification No.)

620 Airpark Road, Napa, California		94558

(Address of principal executive offices)		(Zip Code)

Registrant’s telephone no. including area code (707) 226-3900

NOT APPLICABLE

(former name, former address and former fiscal year, if changes 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

Indicate number of shares outstanding of each of the issuer’s classes of common stock, as of the latest date practicable.

At November 12, 2002, there were 59,052,153 of the Registrant’s Ordinary shares outstanding

SENETEK PLC AND SUBSIDIARIES

INDEX TO FORM 10-Q
QUARTER ENDED SEPTEMBER 30, 2002

		Page

PART I. FINANCIAL INFORMATION

Item 1 - Financial Statements

	Unaudited Consolidated Statements of Operations Three Months Ended September 30, 2002 and September 30, 2001 Nine Months Ended September 30, 2002 and September 30, 2001	3

	Consolidated Balance Sheets September 30, 2002 (unaudited) and December 31, 2001	4

	Unaudited Consolidated Statement of Stockholders’ Deficit and Comprehensive Income Nine Months ended September 30, 2002	5

	Unaudited Consolidated Statements of Cash Flows Nine Months Ended September 30, 2002 and September 30, 2001	6

	Notes to the Unaudited Consolidated Financial Statements	8

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations		12

Item 3 – Quantitative and Qualitative disclosure about Market Risk		18

Item 4 – Controls and Procedures		18

PART II. OTHER INFORMATION		19

SIGNATURES		20

PART 1 – FINANCIAL INFORMATION

Item 1 Financial Statements

SENETEK PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands except per share data) (Unaudited)

		Three Months Ended September 30,						Nine Months Ended September 30,

		2002			2001			2002			2001

Revenues:
	Product Sales	$	660		$	1,880		$	1,834		$	3,833
	Royalties & Licensing		1,553			863			6,251			3,106

Total Revenue			2,213			2,743			8,085			6,939
	Cost of Sales - Products		139			434			420			916
	Cost of Sales – Royalty		—			154			294			463

	Total Cost of Sales		139			588			714			1,379
	Gross Profit		2,074			2,155			7,371			5,560
Operating Expenses:
	Research & Development		470			102			838			271
	General & Administration		944			886			3,506			3,518

	Total Operating Expenses		1,414			988			4,344			3,789

Income from Operations			660			1,167			3,027			1,771
Other income (expense):
	Interest Income		9			8			26			20
	Interest Expense (Including amortization of debt discount)		(364	)		(401	)		(1,093	)		(1,449	)
	Other		(6	)		14			18			(59	)

	Net income before taxation		299			788			1,978			283
	Provision for Income Taxes		92			45			97			45

	Net Income		207			743			1,881			238
	Basic and diluted net income per Ordinary share outstanding	$	0.00		$	0.01		$	0.03		$	0.00
	Weighted average Basic Ordinary shares Outstanding		59,052			59,052			59,052			58,657
	Weighted average Diluted Ordinary shares Outstanding		59,052			59,052			59,106			58,724

See accompanying notes to unaudited consolidated financial statements

SENETEK PLC AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (in thousands)

					September 30, 2002			December 31, 2001
					(unaudited)

ASSETS
			Current Assets:
			Cash and Cash Equivalents		$	2,991		$	1,814
			Trade Receivables (net of provisions of $107,000 at September 30, 2002 and $127,000 December 31, 2001)			2,001			1,892
			Non-Trade Receivables (net of provisions of $136,000 at September 30, 2002 and December 31, 2001)			62			62
			Inventory (net of provisions of $72,000 at September 30, 2002 and December 31, 2001)			347			312
			Prepaids and Deposits			76			122

Total Current Assets						5,477			4,202
			Property & Equipment, net			3,268			3,299
		Goodwill - net				1,308			1,308

TOTAL ASSETS					$	10,053		$	8,809

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current Liabilities
	Accounts Payable					721			962
	Accrued Liabilities					934			1,189
	Short Term Debt					—			20

Total Current Liabilities						1,655			2,171
Long Term Liabilities
	Notes Payable (net of unamortized discount of $1,334,000 at September 30, 2002and $1,982,000 at December 31, 2001)					6,055			5,407
	Deferred License Fees					1,664			2,621
Stockholders’ Equity (Deficit):
	Ordinary shares $0.07 (5 pence) par value:
	Authorized shares: 100,000,000 Issued and outstanding shares:
				September 30, 2002 - 59,052,153
				December 31, 2001 – 59,052,153		4,763			4,763
Share Premium						82,125			81,926
Accumulated Deficit						(86,218	)		(88,099	)
Equity Adjustment from Foreign Currency Translation						9			20

Total Stockholders’ Equity (Deficit)					$	679		$	(1,390	)

Total Liabilities and Stockholders’ Equity (Deficit)					$	10,053		$	8,809

See accompanying notes to unaudited consolidated financial statements.

SENETEK PLC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) AND COMPREHENSIVE
INCOME FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002
(in thousands, except shares outstanding) (unaudited)

		Ordinary Shares		Shares Amount		Share Premium		Accumulated Deficit			Accumulated Other Comprehensive Income Currency Translation(1)			Net Equity (Deficit)

Balances, January 1, 2002:			59,052,153	$	4,763	$	81,926	$	(88,099	)	$	20		$	(1,390	)
Fair value of options issued to Consultants			—		—		199		—			—			199
Comprehensive Income
	Net Income		—		—		—		1,881			—			1,881
	Translation loss, net of tax		—		—		—		—			(11	)		(11	)

Total Comprehensive Income															1,870

Balances, September 30, 2002			59,052,153	$	4,763	$	82,125	$	(86,218	)	$	9		$	679

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