UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2004
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)
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CALIFORNIA |
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94-3229046 |
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(STATE OR OTHER JURISDICTION OF |
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(I.R.S. EMPLOYER |
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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). YES ý NO o
The number of issued and outstanding shares of the Registrant’s Common Stock, no par value, as of July 30, 2004 was 34,640,188.
DEPOMED, INC.
PART I – FINANCIAL INFORMATION
DEPOMED, INC.
(A Development Stage Company)
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June 30, |
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December 31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
1,974,007 |
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$ |
20,044,698 |
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Marketable securities |
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28,128,407 |
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24,210,562 |
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Accounts receivable |
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119,726 |
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278,452 |
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Prepaid and other current assets |
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745,074 |
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692,191 |
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Total current assets |
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30,967,214 |
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45,225,903 |
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Property and equipment, net |
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3,342,354 |
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2,140,610 |
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Other assets |
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534,602 |
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326,136 |
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$ |
34,844,170 |
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$ |
47,692,649 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
2,472,172 |
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$ |
2,024,221 |
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Accrued compensation |
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740,063 |
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809,509 |
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Accrued clinical trial expense |
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266,422 |
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94,598 |
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Other accrued liabilities |
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770,207 |
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374,383 |
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Capital lease obligation, current portion |
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37,772 |
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26,384 |
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Long-term debt, current portion |
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177,662 |
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289,555 |
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Total current liabilities |
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4,464,298 |
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3,618,650 |
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Capital lease obligation, non-current portion |
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— |
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12,808 |
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Long-term debt, non-current portion |
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5,528 |
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73,012 |
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Promissory note from related party, non-current portion |
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9,834,406 |
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9,412,025 |
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Commitments |
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Shareholders’ equity: |
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Preferred stock, no par value; 5,000,000 shares authorized; Series A convertible preferred stock; 25,000 shares designated, 15,821 and 12,015 shares issued and outstanding at June 30, 2004 and December 31, 2003, respectively |
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12,015,000 |
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12,015,000 |
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Common stock, no par value, 100,000,000 shares authorized; 34,638,566 and 34,569,212 shares issued and outstanding at June 30, 2004 and December 31, 2003, respectively |
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116,862,252 |
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116,540,841 |
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Deferred compensation |
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(792,297 |
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(863,872 |
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Deficit accumulated during the development stage |
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(107,422,027 |
) |
(93,110,988 |
) |
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Accumulated other comprehensive income (loss) |
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(122,990 |
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(4,827 |
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Total shareholders’ equity: |
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20,539,938 |
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34,576,154 |
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$ |
34,844,170 |
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$ |
47,692,649 |
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See accompanying notes to Condensed Consolidated Financial Statements.
1
DEPOMED, INC.
(A Development Stage Company)
(Unaudited)
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Period From |
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Inception |
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(August 7, 1995) to |
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Three Months Ended June 30, |
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Six Months Ended June 30, |
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June 30, |
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2004 |
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2003 |
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2004 |
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2003 |
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2004 |
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Revenue: |
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