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 Period Ended September 30, 2003.
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 0-27436
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Titan Pharmaceuticals, Inc. |
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(Exact name of registrant as specified in its charter) |
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Delaware |
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94-3171940 |
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(State or Other Jurisdiction of |
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(I.R.S. Employer |
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400 Oyster Point Blvd., Suite 505, South San Francisco, California 94080 |
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(Address of Principal Executive Offices including zip code) |
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(650) 244-4990 |
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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 Exchange Act 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 on Rule 12B-2 of the Exchange Act). Yes ý No o
There were 28,874,984 shares of the Registrant’s Common Stock issued and outstanding on November 7, 2003.
Titan
Pharmaceuticals, Inc.
Index to
Form 10-Q
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Item 1. Condensed Financial Statements (unaudited) |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures About Market Risk |
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Part II. |
Other Information |
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TITAN PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
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September 30, |
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December 31, |
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(unaudited) |
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(Note A) |
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Assets |
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Current assets |
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Cash and cash equivalents |
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$ |
7,473 |
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$ |
7,155 |
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Marketable securities |
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46,147 |
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66,295 |
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Related party receivables |
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146 |
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316 |
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Prepaid expenses, receivables, and other current assets |
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1,405 |
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881 |
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Total current assets |
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55,171 |
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74,647 |
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Furniture and equipment, net |
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850 |
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979 |
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Investment in other companies |
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300 |
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300 |
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$ |
56,321 |
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$ |
75,926 |
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Liabilities and Stockholders’ Equity |
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Current liabilities |
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Accounts payable |
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$ |
746 |
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$ |
1,901 |
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Accrued clinical trials expenses |
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1,578 |
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1,203 |
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Other accrued liabilities |
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1,461 |
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841 |
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Total current liabilities |
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3,785 |
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3,945 |
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Minority interest - Series B preferred stock of Ingenex, Inc. |
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1,241 |
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1,241 |
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Stockholders’ equity |
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Common stock, at amounts paid-in |
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191,727 |
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191,680 |
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Additional paid-in capital |
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9,078 |
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9,161 |
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Deferred compensation |
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(298 |
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(621 |
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Accumulated deficit |
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(149,231 |
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(129,852 |
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Accumulated other comprehensive income |
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19 |
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372 |
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Total stockholders’ equity |
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51,295 |
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70,740 |
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$ |
56,321 |
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$ |
75,926 |
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Note A: The balance sheet has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statement presentation.
See Notes to Condensed Consolidated Financial Statements
2
TITAN PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amount)
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2003 |
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2002 |
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2003 |
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2002 |
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License and contract revenue |
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$ |
— |
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$ |
158 |
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$ |
28 |
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$ |
2,656 |
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Total revenue |
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— |
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158 |
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28 |
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2,656 |
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Operating expenses: |
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Research and development |
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5,262 |
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7,202 |
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16,639 |
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21,607 |
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General and administrative |
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1,239 |
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1,314 |
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3,878 |
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3,915 |
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Total operating expenses |
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6,501 |
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8,516 |
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20,517 |
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25,522 |
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Loss from operations |
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(6,501 |
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(8,358 |
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(20,489 |
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(22,866 |
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Other income (expense): |
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Interest income, net |
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265 |
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1,070 |
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1,062 |
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3,924 |
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Other income (expense) |
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67 |
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(8 |
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47 |
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(336 |
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Other income, net |
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332 |
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1,062 |
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1,109 |
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3,588 |
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Net loss |
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$ |
(6,169 |
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(7,296 |
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(19,380 |
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(19,278 |
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Basic and diluted net loss per share |
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$ |
(0.22 |
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(0.26 |
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(0.70 |
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(0.70 |
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Weighted average shares used in computing basic and diluted net loss per share |
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27,653 |
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27,642 |
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27,646 |
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27,642 |
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See Notes to Condensed Consolidated Financial Statements
3
TITAN PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
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Nine Months Ended September 30, |
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2003 |
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2002 |
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Cash flows from operating activities: |
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