UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For Quarter Ended June 30, 2002 |
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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 33-90516
NEOPHARM, INC.
(Exact name of Registrant as specified in its charter)
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Delaware |
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51-0327886 |
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(State or other jurisdiction of |
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(I.R.S. Employer |
150 Field Drive
Suite 195
Lake Forest, Illinois 60045
(Address of principal executive offices) (Zip Code)
(847) 295-8678
(Registrant’s telephone number, including area code)
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
As of July 31, 2002 the number of shares outstanding of each of the issuer’s classes of common stock was as follows:
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Title of each class |
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Number of shares outstanding |
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Common Stock ($.0002145 par value) |
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16,263,529 |
NEOPHARM, INC.
(A DELAWARE CORPORATION)
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
NEOPHARM, INC.
(A Delaware Corporation)
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June 30, 2002 |
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December 31, 2001 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
95,951,911 |
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$ |
106,525,864 |
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Short-term investment in marketable securities |
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12,529,476 |
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15,030,045 |
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Prepaid expenses |
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1,521,499 |
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469,862 |
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Other receivables |
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100,980 |
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131,718 |
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Total current assets |
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110,103,866 |
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122,157,489 |
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Equipment and furniture: |
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Equipment |
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2,690,957 |
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2,260,949 |
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Furniture |
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756,856 |
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486,658 |
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Leasehold improvements |
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399,647 |
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254,096 |
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Less accumulated depreciation |
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(1,214,762 |
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(686,061 |
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Total equipment and furniture, net |
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2,632,698 |
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2,315,642 |
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Long-term investment in marketable securities |
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2,242,729 |
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2,738,563 |
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Related party note receivable, net |
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2,083,789 |
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1,983,381 |
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Total assets |
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$ |
117,063,082 |
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$ |
129,195,075 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accrued clinical trial expense |
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$ |
2,340,033 |
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$ |
632,365 |
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Accounts payable |
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607,496 |
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537,465 |
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Accrued compensation |
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877,138 |
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221,862 |
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Other accrued expenses |
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528,419 |
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459,833 |
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Total current liabilities |
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$ |
4,353,086 |
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$ |
1,851,525 |
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Stockholders’ equity: |
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Preferred stock, $0.01 par value; 15,000,000 and 0 shares authorized, respectively: 0 and 0 shares issued and outstanding, respectively |
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— |
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— |
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Common stock, $0.0002145 par value; 50,000,000 and 25,000,000 shares authorized, respectively: 16,263,529 and 16,237,779 shares issued and outstanding, respectively |
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3,492 |
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3,484 |
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Additional paid-in capital |
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169,938,622 |
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169,748,547 |
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Accumulated deficit |
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(57,232,118 |
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(42,408,481 |
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Total stockholders’ equity |
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$ |
112,709,996 |
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$ |
127,343,550 |
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Total liabilities and stockholders’ equity |
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$ |
117,063,082 |
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$ |
129,195,075 |
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The accompanying notes are an integral part of these financial statements.
2
NEOPHARM, INC.
(A Delaware Corporation)
Three and Six Months Ended June 30, 2002 and 2001
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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June 30, 2002 |
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June 30, 2001 |
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June 30, 2002 |
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June 30, 2001 |
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Revenues |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Expenses: |
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Research and development |
7,568,786 |
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2,982,161 |
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12,642,395 |
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4,565,557 |
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General and administrative |
2,075,634 |
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1,004,473 |
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3,363,367 |
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1,941,107 |
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Related party expenses |
67,964 |
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57,099 |
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104,054 |
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97,509 |
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Total expenses |
9,712,384 |
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4,043,733 |
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16,109,816 |
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6,604,173 |
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Loss from operations |
(9,712,384 |
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(4,043,733 |
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(16,109,816 |
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(6,604,173 |
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Other income |
— |
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8,049 |
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Interest income |
692,710 |
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1,537,191 |
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1,286,179 |
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3,505,755 |
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Net loss |
$ |
(9,019,674 |
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$ |
(2,506,542 |
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$ |
(14,823,637 |
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$< | ||