UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|
ý |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2002
Commission File No. 0-16614
NEORX CORPORATION
(Exact name of Registrant as specified in its charter)
|
Washington |
|
91-1261311 |
|
(State or other jurisdiction of |
|
(IRS Employer Identification No.) |
|
|
|
|
|
410 West Harrison Street, Seattle, Washington 98119-4007 |
||
|
(Address of principal executive offices) |
||
|
|
|
|
|
Registrant’s telephone number, including area code: (206) 281-7001 |
||
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 November 14, 2002, 26,765,082 shares of the Registrant’s common stock, $.02 par value per share, were outstanding.
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2002
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets as of September 30, 2002 and December 31, 2001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management’s Discussion and Analysis of Results of Operations and Financial Condition |
|
|
|
|
|
|
|
|
|
|
PART II |
OTHER INFORMATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
NEORX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
|
|
|
September 30, 2002 |
|
December 31, 2001 |
|
||
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
1,110 |
|
$ |
4,097 |
|
|
Investment securities |
|
11,268 |
|
29,484 |
|
||
|
Notes receivable |
|
68 |
|
177 |
|
||
|
Prepaid expenses and other current assets |
|
1,199 |
|
907 |
|
||
|
Total current assets |
|
13,645 |
|
34,665 |
|
||
|
|
|
|
|
|
|
||
|
Facilities and equipment, net |
|
9,083 |
|
15,222 |
|
||
|
Other assets, net |
|
736 |
|
1,141 |
|
||
|
|
|
|
|
|
|
||
|
|
$ |
23,464 |
|
$ |
51,028 |
|
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
844 |
|
$ |
1,537 |
|
|
Accrued liabilities |
|
1,834 |
|
1,701 |
|
||
|
Current portion of note payable |
|
478 |
|
304 |
|
||
|
Total current liabilities |
|
3,156 |
|
3,542 |
|
||
|
|
|
|
|
|
|
||
|
Long-term liabilities: |
|
|
|
|
|
||
|
Note payable, net of current portion |
|
5,347 |
|
5,696 |
|
||
|
Other |
|
25 |
|
75 |
|
||
|
Total long-term liabilities |
|
5,372 |
|
5,771 |
|
||
|
|
|
|
|
|
|
||
|
Shareholders’ equity: |
|
|
|
|
|
||
|
Preferred stock, $.02 par value, 3,000,000 shares authorized: |
|
|
|
|
|
||
|
Convertible preferred stock, Series 1, 205,340 shares issued and outstanding at September 30, 2002 and December 31, 2001 (entitled in liquidation to $5,175 at September 30, 2002 and December 31, 2001) |
|
4 |
|
4 |
|
||
|
Common stock, $.02 par value, 60,000,000 shares authorized, 26,765,082 and 26,571,098 shares issued and outstanding at September 30, 2002 and December 31, 2001, respectively |
|
535 |
|
532 |
|
||
|
Additional paid-in capital |
|
224,031 |
|
223,905 |
|
||
|
Accumulated other comprehensive income – unrealized gain on investment securities |
|
32 |
|
578 |
|
||
|
Accumulated deficit |
|
(209,666 |
) |
(183,304 |
) |
||
|
Total shareholders’ equity |
|
14,936 |
|
41,715 |
|
||
|
Total liabilities and shareholders’ equity |
|
$ |
23,464 |
|
$ |
51,028 |
|
See accompanying notes to the condensed consolidated financial statements.
3
NEORX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)
|
|
|
Three
Months Ended |
|
Nine
Months Ended |
|
||||||||
|
|
|
2002 |
|
2001 |
|
2002 |
|
2001 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
507 |
|
$ |
263 |
|
$ |
2,036 |
|
$ |
1,437 |
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
||||
|
Research and development |
|
4,369 |
|
5,663 |
|
17,403 |
|
14,334 |
|
||||
|
General and administrative |
|
1,535 |
|
2,755 |
|
5,137 |
|
6,014 |
|
||||
|
Asset impairment loss |
|
5,658 |
|
— |
|
5,658 |
|
— |
|
||||
|
Restructuring |
|
529 |
|
— |
|
529 |
|
— |
|
||||
|
Total operating expenses |
|
12,091 |
|
8,418 |
|
28,727 |
|
20,348 |
|||||