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 Quarterly Period Ended June 30, 2004 |
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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.
(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 Identification Number) |
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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 July 31, 2004 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 ($.0002145 par value) |
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23,278,985 |
NEOPHARM, INC.
FORM 10-Q
INDEX
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Consolidated Balance Sheets as of June 30, 2004 (Unaudited) and December 31, 2003 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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2
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
NEOPHARM,
INC.
Consolidated Balance Sheets
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June 30, 2004 |
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December 31, 2003 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
88,553,977 |
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$ |
36,958,941 |
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Investments in marketable securities |
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— |
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4,166,351 |
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Trade accounts receivable |
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4,072 |
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— |
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Inventories |
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6,602 |
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— |
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Prepaid expenses |
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439,739 |
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909,833 |
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Other receivables |
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314,734 |
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284,750 |
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Total current assets |
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89,319,124 |
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42,319,875 |
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Fixed assets, net of accumulated depreciation |
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3,464,122 |
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3,760,705 |
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Total assets |
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$ |
92,783,246 |
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$ |
46,080,580 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
404,198 |
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$ |
499,682 |
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Accrued clinical trial expense |
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4,150,007 |
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1,658,293 |
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Accrued legal expenses |
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252,230 |
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1,076,228 |
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Accrued compensation |
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1,733,886 |
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2,144,163 |
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Other accrued expenses |
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801,752 |
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684,859 |
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Unearned revenue |
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17,200 |
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— |
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Total current liabilities |
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7,359,273 |
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6,063,225 |
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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, $0.0002145 par value; 50,000,000 shares authorized: 23,278,985 and 18,862,906 shares issued and outstanding, respectively |
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4,995 |
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4,046 |
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Additional paid-in capital |
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246,116,966 |
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171,704,628 |
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Accumulated deficit |
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(160,697,988 |
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(131,691,319 |
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Total stockholders’ equity |
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85,423,973 |
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40,017,355 |
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Total liabilities and stockholders’ equity |
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$ |
92,783,246 |
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$ |
46,080,580 |
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The accompanying notes are an integral part of these financial statements.
3
NEOPHARM, INC.
Consolidated Statements of Operations
Three- and Six-Month Periods Ended June 30, 2004 and 2003
(Unaudited)
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Three-Month Periods Ended |
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Six-Month Periods Ended |
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June 30, 2004 |
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June 30, 2003 |
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June 30, 2004 |
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June 30, 2003 |
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Revenues |
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$ |
19,080 |
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$ |
— |
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$ |
31,280 |
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$ |
— |
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Cost of revenues |
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298 |
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— |
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542 |
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— |
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Gross margin |
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18,782 |
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— |
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30,738 |
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— |
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Expenses: |
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Research and development |
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12,008,378 |
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8,767,286 |
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23,257,605 |
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15,875,842 |
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Selling, general, and administrative |
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2,984,560 |
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7,880,687 |
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6,184,629 |
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12,285,071 |
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Related party expenses |
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34,006 |
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35,409 |
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69,370 |
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74,601 |
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Total expenses |
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15,026,944 |
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16,683,382 |
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29,511,604 |
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28,235,514 |
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Loss from operations |
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(15,008,162 |
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(16,683,382 |
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(29,480,866 |
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(28,235,514 |
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Interest income |
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248,683 |
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254,554 |
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474,197 |
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539,446 |
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Net loss |
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(14,759,479 |
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(16,428,828 |
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(29,006,669 |
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(27,696,068 |
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Net loss per share — |
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