UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002 |
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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 |
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COMMISSION FILE NUMBER 000-23267
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DEPOMED, INC. |
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(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) |
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CALIFORNIA |
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94-3229046 |
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(STATE OR OTHER
JURISDICTION OF |
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(I.R.S. EMPLOYER |
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1360 O’BRIEN DRIVE |
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE) |
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(650) 462-5900 |
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(REGISTRANT’S TELEPHONE NUMBER, INCLUDING AREA CODE) |
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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 requirements for the past 90 days.
YES ý NO o
The number of issued and outstanding shares of the Registrant’s Common Stock, no par value, as of August 2, 2002 was 16,439,187.
DEPOMED, INC.
PART I – FINANCIAL INFORMATION |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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PART II – OTHER INFORMATION |
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2
PART I — FINANCIAL INFORMATION
DEPOMED, INC.
(A Development Stage Company)
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June 30, 2002 |
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December 31, 2001 |
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(Unaudited) |
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(Restated) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
3,212,703 |
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$ |
5,150,088 |
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Accounts receivable |
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69,798 |
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397,277 |
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Receivable from joint venture |
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1,080,771 |
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642,793 |
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Prepaid and other current assets |
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98,613 |
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197,479 |
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Total current assets |
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4,461,885 |
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6,387,637 |
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Property and equipment, net |
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1,994,955 |
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2,065,175 |
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Other assets |
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291,876 |
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294,034 |
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$ |
6,748,716 |
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$ |
8,746,846 |
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LIABILITIES AND SHAREHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
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$ |
2,275,981 |
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$ |
2,327,381 |
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Accrued compensation |
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404,206 |
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446,515 |
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Other accrued liabilities |
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753,034 |
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343,667 |
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Payable to joint venture |
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1,996,243 |
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845,845 |
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Capital lease obligation, current portion |
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12,512 |
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13,984 |
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Long-term debt, current portion |
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515,138 |
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542,251 |
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Other current liabilities |
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34,816 |
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137,718 |
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Total current liabilities |
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5,991,930 |
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4,657,361 |
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Capital lease obligation, non-current portion |
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26,478 |
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4,216 |
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Long-term debt, non-current portion |
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567,919 |
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783,416 |
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Promissory note from related party, non-current portion |
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5,877,059 |
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4,779,054 |
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Preferred stock, no par value; 5,000,000 shares authorized; Series A convertible exchangeable preferred stock: 25,000 shares designated, 12,015 shares issued and outstanding at June 30, 2002 and December 31, 2001 |
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12,015,000 |
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12,015,000 |
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Commitments |
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Shareholders’ deficit: |
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Common stock, no par value, 100,000,000 shares authorized; 13,973,309 and 11,530,168 shares issued and outstanding at June 30, 2002 and December 31, 2001, respectively |
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44,425,663 |
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36,109,124 |
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Deficit accumulated during the development stage |
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(62,155,333 |
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(49,601,325 |
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Total shareholders’ deficit |
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(17,729,670 |
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(13,492,201 |
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$ |
6,748,716 |
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$ |
8,746,846 |
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See accompanying notes to Financial Statements.
3
DEPOMED, INC.
(A Development Stage Company)
(Unaudited)
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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Period
From |
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2002 |
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2001 |
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2002 |
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2001 |
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2002 |
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(Restated)(1) |
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(Restated)(1) |
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(Restated)(1) |
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Revenue: |
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Collaborative agreements |
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$ |
14,004 |
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$ |
393,017 |
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$ |
151,513 |
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$ |
671,272 |
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$ |
3,521,877 |
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Collaborative agreements with affiliates |
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596,563 |
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444,944 |
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1,080,771 |
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804,111 |
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4,961,263 |
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Total revenue |
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610,567 |
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837,961 |
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1,232,284 |
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1,475,383 |
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8,483,140 |
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Operating expenses: |
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Research and development |
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4,948,975 |
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4,191,794 |
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9,536,580 |
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6,847,476 |
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39,664,535 |
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General and administrative |
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1,320,125 |
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651,096 |
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1,950,097 |
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1,237,715 |
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11,856,871 |
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Purchase of in-process research and development |
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298,154 |
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Total operating expenses |
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6,269,100 |
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4,842,890 |
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11,486,677 |
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8,085,191 |
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51,819,560 |
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