Back to GetFilings.com



 

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

 

OR

 

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

FOR THE TRANSITION PERIOD FROM        TO        

 

COMMISSION FILE NUMBER 000-23267

 

DEPOMED, INC.

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

 

CALIFORNIA

 

94-3229046

(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION)

 

(I.R.S. EMPLOYER
IDENTIFICATION NUMBER)

 

1360 O’BRIEN DRIVE
MENLO PARK, CALIFORNIA 94025

(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES, INCLUDING ZIP CODE)

 

(650) 462-5900

(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 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 November 1, 2002 was 16,439,187.

 

 

 

DEPOMED, INC.

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements (Unaudited):

 

 

 

Balance Sheets at September 30, 2002 and December 31, 2001

 

 

 

Statements of Operations for the three-month and nine-month periods ended September 30, 2002 and 2001, and for the period from inception (August 7, 1995) to September 30, 2002

 

 

 

Statements of Cash Flows for the nine-month periods ended September 30, 2002 and 2001, and for the period from inception (August 7, 1995) to September 30, 2002

 

 

 

Notes to Financial Statements

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Item 4. Controls and Procedures

 

PART II – OTHER INFORMATION

 

Item 1. Legal Proceedings

 

Item 6. Exhibits and Reports on Form 8-K

 

Signatures

 

2

 

PART I – FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

 

DEPOMED, INC.

(A Development Stage Company)

 

BALANCE SHEETS

 

 

 

September 30, 2002

 

December 31, 2001

 

 

 

(Unaudited)

 

(Restated)

 

 

 

 

 

(See Note 1)

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

9,073,730

 

$

5,150,088

 

Accounts receivable

 

20,197

 

397,277

 

Receivable from joint venture

 

1,220,527

 

642,793

 

Prepaid and other current assets

 

44,315

 

197,479

 

Total current assets

 

10,358,769

 

6,387,637

 

 

 

 

 

 

 

Property and equipment, net

 

1,935,875

 

2,065,175

 

Other assets

 

291,876

 

294,034

 

 

 

$

12,586,520

 

$

8,746,846

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ DEFICIT

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

3,717,875

 

$

2,327,381

 

Accrued compensation

 

463,167

 

446,515

 

Other accrued liabilities

 

1,298,339

 

343,667

 

Payable to joint venture

 

2,424,536

 

845,845

 

Capital lease obligation, current portion

 

14,303

 

13,984

 

Long-term debt, current portion

 

487,139

 

542,251

 

Other current liabilities

 

—

 

137,718

 

Total current liabilities

 

8,405,359

 

4,657,361

 

 

 

 

 

 

 

Capital lease obligation, non-current portion

 

25,392

 

4,216

 

Long-term debt, non-current portion

 

466,850

 

783,416

 

Promissory note from related party, non-current portion

 

6,007,914

 

4,779,054

 

 

 

 

 

 

 

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 September 30, 2002 and December 31, 2001

 

12,015,000

 

12,015,000

 

 

 

 

 

 

 

Commitments

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ deficit:

 

 

 

 

 

Common stock, no par value, 100,000,000 shares authorized;
13,973,309 and 11,530,168 shares issued and outstanding at September 30, 2002 and December 31, 2001, respectively

 

56,664,872

 

36,109,124

 

Deficit accumulated during the development stage

 

(70,998,867

)

(49,601,325

)

Total shareholders’ deficit

 

(14,333,995

)

(13,492,201

)

 

 

$

12,586,520

 

$

8,746,846

 

 

See accompanying notes to Financial Statements.

 

3

 

DEPOMED, INC.

(A Development Stage Company)

 

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

 

 

 

Period From
Inception
(August 7, 1995)
to
September 30
2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

2002

 

2001

 

2002

 

2001

 

 

 

 

(Restated)(1)

 

 

 

(Restated)(1)

 

(Restated)(1)