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Delaware	13-3669062
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification Number)

 

 

 

 

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PART I.	FINANCIAL INFORMATION	Page Number
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets
	December 31, 2004 and March 31, 2005 (Unaudited)	1
	Condensed Consolidated Statements of Operations (Unaudited)
	Three months ended March 31, 2004 and 2005	2
	Condensed Consolidated Statements of Cash Flows (Unaudited)
	Three months ended March 31, 2004 and 2005	3
	Notes to Condensed Consolidated Financial Statements (Unaudited)	4
Item 2.	Management’s Discussion and Analysis of Financial
	Condition and Results of Operations	8
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4.	Controls and Procedures	13
PART II.	OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	14
Item 5.	Other Information	14
Item 6.	Exhibits	14

 

 

 

		December 31, 2004			March 31, 2005
					(unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	15,758,000		$	12,734,000
Accounts receivable—other			325,000			458,000
Prepaid expenses and other current assets			162,000			137,000
Total current assets			16,245,000			13,329,000
Property and equipment, net			3,493,000			4,005,000
Long-term note			299,000			301,000
Severance pay fund			859,000			902,000
Intangible assets, net			672,000			620,000
Goodwill, net			58,205,000			58,205,000
Total assets		$	79,773,000		$	77,362,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	1,128,000		$	1,270,000
Accrued expenses and other current liabilities			2,583,000			2,802,000
Total current liabilities			3,711,000			4,072,000
Leasehold incentive obligations			748,000			701,000
Accrued severance pay			1,451,000			1,531,000
Commitments and contingent liabilities
Stockholders’ equity
Preferred stock, $.01 par value; 10,000 shares authorized; none issued			—			—
Common stock, $.01 par value; 38,000,000 shares authorized; 27,016,819 and 27,220,624 shares issued and outstanding, at December 31, 2004 and March 31, 2005, respectively			270,000			272,000
Additional paid-in capital			198,774,000			200,935,000
Accumulated deficit			(125,181,000	)		(130,149,000	)
Total stockholders’ equity			73,863,000			71,058,000
Total liabilities and stockholders’ equity		$	79,773,000		$	77,362,000

 

 

		Three Months Ended March 31,
		2004			2005
Operating expenses
Research and development costs, net		$	1,918,000		$	3,740,000
Selling, marketing, general and administrative expenses			1,330,000			1,249,000
Amortization of intangible assets			52,000			52,000
Total operating expenses			3,300,000			5,041,000
Loss from operations			(3,300,000	)		(5,041,000	)
Other income (expenses)
Interest income			64,000			78,000
Interest expense			(5,000	)		(5,000	)
			59,000			73,000
NET LOSS		$	(3,241,000	)	$	(4,968,000	)
Basic and diluted net loss per share		$	(.13	)	$	(.18	)
Weighted-average number of common shares used in computing basic and diluted net loss per share			25,880,979			27,087,934

		Three Months Ended March 31,
		2004			2005
Cash flows from operating activities
Net loss		$	(3,241,000	)	$	(4,968,000	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization of property and equipment			117,000			183,000
Amortization of intangible assets			52,000			52,000
Non-cash stock based compensation expense			300,000			61,000
Changes in operating assets and liabilities
Accounts receivable—trade			74,000			—
Accounts receivable—other			(29,000	)		(135,000	)
Prepaid expenses and other current assets			62,000			25,000
Accounts payable			206,000			192,000
Accrued expenses and other current liabilities			186,000			247,000
Leasehold incentive obligations			—			(47,000	)
Accrued severance pay, net