UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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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 March 31, 2004
Commission File No. 0-16614
NEORX CORPORATION
(Exact name of Registrant as specified in its charter)
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Washington |
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91-1261311 |
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(State or other jurisdiction of |
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(IRS Employer Identification No.) |
300 Elliott Avenue West, Suite 500, Seattle, Washington 98119-4114
(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
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 May 4, 2004, 30,376,010 shares of the Registrant’s common stock, $.02 par value per share, were outstanding.
TABLE OF CONTENTS
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2004
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
NEORX CORPORATION AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(unaudited)
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March 31, 2004 |
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December 31, 2003 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
23,535 |
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$ |
15,166 |
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Investment securities |
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8,383 |
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12,335 |
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Prepaid expenses and other current assets |
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527 |
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652 |
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Total current assets |
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32,445 |
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28,153 |
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Facilities and equipment, net |
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7,369 |
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7,471 |
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Other assets, net |
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67 |
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67 |
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Total assets |
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$ |
39,881 |
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$ |
35,691 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
672 |
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$ |
409 |
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Accrued liabilities |
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1,102 |
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1,295 |
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Current portion of note payable |
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389 |
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385 |
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Total current liabilities |
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2,163 |
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2,089 |
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Long-term liabilities: |
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Note payable, net of current portion |
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4,016 |
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4,112 |
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Shareholders’ equity: |
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Preferred stock, $.02 par value, 3,000,000 shares authorized: |
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Convertible preferred stock, Series 1, 205,340 shares issued and outstanding at March 31, 2004 and December 31, 2003 (entitled in liquidation to $5,300 and $5,175, respectively, at March 31, 2004 and December 31, 2003) |
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4 |
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4 |
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Convertible preferred stock, Series B, 1,575 shares issued and outstanding at March 31, 2004 and December 31, 2003 (entitled in liquidation to $15,750) |
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— |
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— |
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Common stock, $.02 par value, 60,000,000 shares authorized, 30,054,175 and 28,002,945 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively |
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601 |
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560 |
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Additional paid-in capital |
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252,585 |
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243,365 |
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Accumulated deficit, including other comprehensive loss of $1 and $7 at March 31, 2004 and December 31, 2003, respectively |
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(219,488 |
) |
(214,439 |
) |
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Total shareholders’ equity |
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33,702 |
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29,490 |
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Total liabilities and shareholders’ equity |
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$ |
39,881 |
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$ |
35,691 |
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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)
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Three Months Ended March 31 |
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2004 |
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2003 |
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Revenues |
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$ |
500 |
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$ |
116 |
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Operating expenses: |
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Research and development |
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3,782 |
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2,621 |
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General and administrative |
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1,677 |
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1,432 |
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Total operating expenses |
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5,459 |
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4,053 |
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Loss from operations |
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(4,959 |
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(3,937 |
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Other income (expense): |
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Realized gain (loss) on sale of securities |
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— |
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16 |
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Interest income |
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76 |
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54 |
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Interest expense |
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(47 |
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(60 |
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Total other income |
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29 |
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10 |
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Net loss before cumulative effect of change in accounting principle |
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(4,930 |
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(3,927 |
) |
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Cumulative effect of change in accounting principle |
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— |
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(190 |
) |
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Net loss |
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(4,930 |
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(4,117 |
) |
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Preferred stock dividends |
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(125 |
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(125 |
) |
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Net loss applicable to common shares |
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$ |
(5,055 |
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$ |
(4,242 |
) |
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Loss per share: |
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Basic and diluted loss per share applicable to common shares before cumulative effect of change in accounting principle |
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$ |
(0.17 |
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$ |
(0.15 |
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Cumulative effect of change in accounting principle |
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— |
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(0.01 |
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Basic and diluted loss applicable to common shares |
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$ |
(0.17 |
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$ |
(0.16 |
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Weighted average common shares: |
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Basic and diluted |
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28,919 |
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26,815 |
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See accompanying notes to the condensed consolidated financial statements.
4