UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2002
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File No. 0-26988
ERGO SCIENCE CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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04-3565746 |
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(State or other jurisdiction of incorporation or organization) |
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(I.R.S. Employer Identification Number) |
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790 Turnpike Street |
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North Andover, Massachusetts |
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01845 |
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(Address of principal executive offices) |
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(Zip Code) |
Registrant’s telephone number, including area code: (978) 689-0333
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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
At October 31, 2002 there were 7,149,578 shares of common stock, par value $.01 per share, of the registrant outstanding.
ERGO SCIENCE CORPORATION
TABLE OF CONTENTS
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PART I. |
FINANCIAL INFORMATION |
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ITEM 1. |
Financial Statements |
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Unaudited Consolidated Balance Sheets as of September 30, 2002 and December 31, 2001 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
ERGO SCIENCE CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited)
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September 30, |
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December 31, |
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2002 |
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2001 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
25,157,546 |
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$ |
25,808,028 |
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Prepaid and other current assets |
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34,210 |
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8,358 |
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Total current assets |
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25,191,756 |
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25,816,386 |
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Equipment and leasehold improvements, net |
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3,172 |
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6,815 |
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Total assets |
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$ |
25,194,928 |
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$ |
25,823,201 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable and accrued expenses |
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$ |
689,028 |
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$ |
927,535 |
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Total current liabilities |
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689,028 |
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927,535 |
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Stockholders’ equity: |
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Preferred stock, $.01 par value, 10,000,000 shares authorized; 6,903 shares of Series D preferred stock issued and outstanding at September 30, 2002 and December 31, 2001 (liquidation preference of $10,702,439 at September 30, 2002) |
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4,306,520 |
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4,306,520 |
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Common stock, $.01 par value, authorized 50,000,000 shares at September 30, 2002 and December 31, 2001; 7,149,578 shares issued and outstanding at September 30, 2002 and December 31, 2001, respectively |
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71,496 |
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71,496 |
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Additional paid-in capital |
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111,880,321 |
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111,880,321 |
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Cumulative dividends on preferred stock |
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(2,296,953 |
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(2,296,953 |
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Accumulated deficit |
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(89,455,484 |
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(89,065,718 |
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Total stockholders’ equity |
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24,505,900 |
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24,895,666 |
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Total liabilities and stockholders’ equity |
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$ |
25,194,928 |
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$ |
25,823,201 |
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The accompanying notes are an integral part of the consolidated financial statements
3
ERGO SCIENCE CORPORATION
(Unaudited)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2002 |
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2001 |
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2002 |
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2001 |
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Operating expenses: |
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Research and development |
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$ |
9,600 |
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$ |
11,677 |
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$ |
28,620 |
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$ |
51,211 |
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General and administrative |
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217,580 |
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695,099 |
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692,408 |
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1,888,471 |
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227,180 |
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706,776 |
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721,028 |
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1,939,682 |
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Net operating loss |
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(227,180 |
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(706,776 |
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(721,028 |
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(1,939,682 |
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Other Income: |
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Interest |
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111,857 |
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288,054 |
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331,262 |
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1,011,905 |
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Other |
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— |
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293 |
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— |
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514 |
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Net loss |
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$ |
(115,323 |
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$ |
(418,429 |
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$ |
(389,766 |
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(927,263 |
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Net Loss per common share: |
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Basic and Diluted (revised) |
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$ |
(0.02 |
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$ |
(0.06 |
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$ |
(0.05 |
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$ |
(0.13 |
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Weighted average common shares outstanding: |
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Basic and Diluted |
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7,149,578 |
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7,149,578 |
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7,149,578 |
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7,149,578 |
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