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 March 31, 2003 |
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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 33-90516 |
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NEOPHARM, INC. |
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(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 |
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150 Field
Drive |
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(Address of principal executive offices) (Zip Code) |
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(847) 295-8678 |
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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 filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý No o
As of April 17, 2003 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 ($.0002145 par value) |
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16,371,529 |
NEOPHARM, INC.
(A DELAWARE CORPORATION)
FORM 10Q
INDEX
2
PART I - FINANCIAL INFORMATION
NEOPHARM,
INC.
(A Delaware Corporation)
Balance Sheets
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March 31, 2003 |
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December 31, 2002 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
78,715,977 |
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$ |
87,591,975 |
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Short-term investment in marketable securities |
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1,878,000 |
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3,508,222 |
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Prepaid expenses |
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376,726 |
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454,893 |
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Other receivables |
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303,468 |
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137,954 |
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Total current assets |
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81,274,171 |
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91,693,044 |
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Equipment and furniture: |
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Equipment |
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4,373,329 |
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4,192,551 |
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Furniture |
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812,358 |
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801,783 |
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Leasehold improvements |
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492,501 |
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428,708 |
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Less accumulated depreciation |
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(1,428,889 |
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(1,178,765 |
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Total equipment and furniture, net |
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4,249,299 |
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4,244,277 |
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Total assets |
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$ |
85,523,470 |
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$ |
95,937,321 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accrued legal expenses |
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$ |
1,741,576 |
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$ |
1,018,414 |
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Accrued clinical trial expense |
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1,509,970 |
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1,611,100 |
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Accrued compensation |
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657,176 |
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478,026 |
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Accounts payable |
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566,280 |
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492,816 |
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Other accrued expenses |
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372,714 |
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427,971 |
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Total current liabilities |
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$ |
4,847,716 |
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$ |
4,028,327 |
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Stockholders’ equity: |
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Preferred stock, $0.01 par value; 15,000,000 shares authorized: 0 shares issued and outstanding |
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— |
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— |
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Common stock, $0.0002145 par value; 50,000,000 shares authorized: 16,371,529 and 16,351,529 shares issued and outstanding, respectively |
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3,509 |
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3,509 |
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Additional paid-in capital |
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170,839,705 |
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170,805,705 |
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Accumulated deficit |
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(90,167,460 |
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(78,900,220 |
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Total stockholders’ equity |
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$ |
80,675,754 |
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$ |
91,908,994 |
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Total liabilities and stockholders’ equity |
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$ |
85,523,470 |
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$ |
95,937,321 |
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The accompanying notes are an integral part of these financial statements.
3
NEOPHARM,
INC.
(A Delaware Corporation)
Statements of Operations
Three Months Ended March 31, 2003 and 2002
(Unaudited)
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Three Months Ended |
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March 31, 2003 |
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March 31, 2002 |
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Revenues |
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$ |
— |
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$ |
— |
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Expenses: |
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Research and development |
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7,108,556 |
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5,073,608 |
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General and administrative |
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4,404,384 |
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1,287,733 |
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Related party expenses |
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39,192 |
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36,091 |
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Total expenses |
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11,552,132 |
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6,397,432 |
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Loss from operations |
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(11,552,132 |
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(6,397,432 |
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Interest income |
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284,892 |
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593,469 |
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Net loss |
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$ |
(11,267,240 |
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(5,803,963 |
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Net loss per share — |
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Basic and diluted |
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$ |
(0.60 |
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$ |
(0.31 |
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Weighted average shares outstanding — |
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Basic and diluted |
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18,809,625 |
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18,686,501 |
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The accompanying notes are an integral part of these financial statements.
4
NEOPHARM,
INC.
(A Delaware Corporation)
Statements of Cash Flows
Three Months Ended March 31, 2003 and 2002
(Unaudited)
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Three Months Ended |
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March 31, 2003 |
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March 31, 2002 |
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Cash flows used in operating activities: |
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Net loss |
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$ |
(11,267,240 |
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(5,803,963 |
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Adjustments to reconcile net loss to net cash used in operating activities: |
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Depreciation and amortization |
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250,124 |
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273,840 |
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Compensation expense from issuance of stock options to non-employees |
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34,000 |
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— |
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Changes in assets and liabilities: |
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Increase in other assets |
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(87,347 |
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(783,320 |
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