UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 

OR

 

 

Commission file number:          0-24469

 

 

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 ý      No o

 

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

At July 31, 2002, the Registrant had outstanding 21,862,932 shares of common stock, $.001 par value.

 

 

GENVEC, INC.
FORM 10-Q

 

TABLE OF CONTENTS

 

PART I.		FINANCIAL INFORMATION
Item 1.	Condensed Financial Statements
	Balance Sheets
	Statements of Operations
	Statements of Cash Flows
	Notes to Condensed Financial Statements
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.	Quantitative and Qualitative Disclosures About Market Risk
PART II.		OTHER INFORMATION
Item 1.	Legal Proceedings
Item 2.	Changes in Securities and Use of Proceeds
Item 3.	Defaults Upon Senior Securities
Item 4.	Submission of Matters to a Vote of Security Holders
Item 5.	Other Information
Item 6.	Exhibits and Reports on Form 8-K
Signatures

 

2

 

GENVEC, INC.

 

FORM 10-Q

 

FORWARD LOOKING STATEMENTS

 

This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements also may be included in other statements that we make. All statements that are not descriptions of historical facts are forward-looking statements, based on management’s estimates, assumptions and projections that are subject to risks and uncertainties.  These statements can generally be identified by the use of forward-looking terminology such as “believes,” “expects,” “intends,” “may,” “will,” “should,” or “anticipates” or similar terminology. Although we believe that the expectations reflected in such forward-looking statements are reasonable as of the date thereof, actual results could differ materially from those currently anticipated due to a number of factors, including risks relating to the early stage of products under development; uncertainties relating to clinical trials; dependence on third parties; future capital needs; and risks relating to the commercialization, if any, of our product candidates (such as marketing, safety, regulatory, patent, product liability, supply, competition and other risks).  Additional important factors that could cause actual results to differ materially from our current expectations are identified in other filings with the Securities and Exchange Commission.  We will not update any forward-looking statements to reflect events or circumstances that occur after the date on which the statement is made, except as may be required by law.

 

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PART I. FINANCIAL INFORMATION

 

ITEM 1.   CONDENSED FINANCIAL STATEMENTS

 

GENVEC, INC.
BALANCE SHEETS

(in thousands, except share and per share amounts)

 

		June 30, 2002			December 31, 2001
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	15,967		$	14,516
Short-term investments		5,997			5,414
Accounts receivable		599			—
Prepaid expenses and other current assets		573			1,123
Bond sinking fund		465			238
Total current assets		23,601			21,291
Property and equipment, net		7,842			7,974
Long-term investments		9,870			21,988
Other assets		497			113
Total assets		$	41,810		$	51,366
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,650		$	1,184
Accrued expenses		2,042			1,697
Unearned revenue		1,592			461
Current portion of notes payable and capital lease obligations		873			482
Current portion of bond payable		450			450
Total current liabilities		6,607			4,274
Notes payable and capital lease obligations		1,828			963
Bond payable		4,125			4,125
Deferred credit		1,145			1,183
Other liabilities		731			693
Total liabilities		14,436			11,238
Stockholders’ equity:
Preferred stock, $.001 par value; 4,400,000 shares authorized, no shares issued or outstanding		—			—
Series A junior participating preferred stock, $0.001 par value, 600,000 shares authorized, no shares issued or outstanding		—			—
Common stock, $.001 par value; 60,000,000 shares authorized, 21,933,882 and 21,781,173 shares issued at June 30, 2002 and December 31, 2001; 21,862,932 and 21,710,223 shares outstanding at June 30, 2002 and December 31, 2001		22			22
Additional paid-in capital		112,985			112,798
Accumulated deficit		(83,127		)	(69,841		)
Deferred compensation		(2,316		)	(3,146		)
Accumulated other comprehensive income (loss)		(190		)	295
Treasury stock, 70,950 common shares		—			—
Total stockholders’ equity		27,374			40,128
Total liabilities and stockholders’ equity		$	41,810		$	51,366

 

See accompanying notes to financial statements.

 

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GENVEC, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)

 

(in thousands, except per share amounts)

 

		Three Months Ended June 30,						Six Months Ended June 30,
		2002			2001			2002			2001
Revenues
Ongoing research and development support		$	1,575		$	1,188		$	2,203		$	2,450