AXONYX INC.
(Exact name of registrant
as specified in its charter)
| Nevada (State or other jurisdiction of incorporation or organization) |
86-0883978 (IRS Employer Id. No.) |
500 Seventh Avenue,
10th Floor
New York,
New York 10018
(Address of
principal executive offices)
Registrant’s telephone number, including area code: (212) 645-7704
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 |X| No |_|.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes |_| No |X|.
As of November 10, 2004 the Registrant had outstanding 53,039,155 shares of its $.001 par value Common Stock.
AXONYX INC.
INDEX
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PART I. FINANCIAL INFORMATION
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Item 1. Condensed Consolidated Financial Statements |
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| ASSETS | September
30, 2004 |
December
31, 2003 |
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| (unaudited) | ||||||||
| Current Assets: | ||||||||
| Cash and cash equivalents | $ | 87,664,000 | $ | 28,780,000 | ||||
| Accounts receivable | 370,000 | |||||||
| Inventories | 349,000 | |||||||
| Other current assets | 206,000 | |||||||
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| Total current assets | 88,589,000 | 28,780,000 | ||||||
| Equipment, net | 88,000 | 24,000 | ||||||
| Technology for developed products, net | 6,996,000 | |||||||
| Patents and patents pending, net | 969,000 | |||||||
| Security deposit | 18,000 | 11,000 | ||||||
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| $ | 96,660,000 | $ | 28,815,000 | |||||
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| LIABILITIES | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 3,036,000 | $ | 1,284,000 | ||||
| Accrued expenses | 2,524,000 | 880,000 | ||||||
| Note payable | 160,000 | |||||||
| Convertible bridge loans | 404,000 | |||||||
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| Total liabilities | 6,124,000 | 2,164,000 | ||||||
| STOCKHOLDERS’ EQUITY | ||||||||
| Preferred stock - $.001 par value, 15,000,000 shares authorized; none issued | ||||||||
| Common Stock - $.001 par value, 150,000,000 and 75,000,000 shares authorized; | ||||||||
| as of 2004 and 2003 respectively; 51,706,222 and 33,919,948 shares | ||||||||
| issued and outstanding in 2004 and 2003 respectively | 51,000 | 34,000 | ||||||
| Additional paid-in capital | 144,238,000 | 60,345,000 | ||||||
| Unearned compensation - stock options | (177,000 | ) | — | |||||
| Accumulated comprehensive loss | (32,000 | ) | ||||||
| Accumulated deficit | (53,544,000 | ) | (33,728,000 | ) | ||||
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| Total stockholders’ equity | 90,536,000 | 26,651,000 | ||||||
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| Total liabilities and stockholders’ equity | $ | 96,660,000 | $ | 28,815,000 | ||||
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See notes to condensed consolidated financial statements.
1
Condensed Consolidated
Statements of Operations
(unaudited)
| Three months ended Sept 30, | NIne months ended September 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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| Revenue | ||||||||||||||
| Licensing | $ | 450,000 | $ | — | $ | 450,000 | $ | 1,000,000 | ||||||
| Product sales | 504,000 | 1,415,000 | ||||||||||||
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| Total revenue | 954,000 | — | 1,865,000 | 1,000,000 | ||||||||||
| Cost of product sales | 282,000 | 786,000 | ||||||||||||
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| Gross profit | 672,000 | — | 1,079,000 | 1,000,000 | ||||||||||
| Costs and expenses: | ||||||||||||||
| Research and development | 6,054,000 | $ | 986,000 | 15,888,000 | 3,262,000 | |||||||||
| Sales, general and administrative | 1,540,000 | 844,000 | 6,038,000 | 2,434,000 | ||||||||||
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| 7,594,000 | 1,830,000 | 21,926,000 | 5,696,000 | |||||||||||
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| Loss from operations | (6,922,000 | ) | (1,830,000 | ) | (20,847,000 | ) | (4,696,000 | ) | ||||||
| Other income (expense) | ||||||||||||||
| Interest income | 379,000 | 22,000 | 805,000 | 59,000 | ||||||||||
| Foreign exchange | (3,000 | ) | 5,000 | (40,000 | ) | 13,000 | ||||||||
| Gain on issuance of subsidiary stock | 16,000 | 71,000 | ||||||||||||
| Financing fees | (164,000 | ) | (464,000 | ) | ||||||||||
| Interest expense | (13,000 | ) | — | (38,000 | ) | — | ||||||||
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| Net loss before minority interest in subsidiary | (6,707,000 | ) | (1,803,000 | ) | (20,513,000 | ) | (4,624,000 | ) | ||||||
| Minority interest in loss of subsidiary | 14,000 | — | 697,000 | — | ||||||||||
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| Net loss | (6,693,000 | ) | (1,803,000 | ) | (19,816,000 | ) | (4,624,000 | ) | ||||||
| Comprehensive loss | ||||||||||||||
| Foreign currency translation adjustment | 2,000 | (32,000 | ) | |||||||||||
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| Comprehensive loss | $ | (6,691,000 | ) | $ | (1,803,000 | ) | $ | (19,848,000 | ) | $ | (4,624,000 | ) | ||
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| Net loss per common share | $ | (0.13 | ) | $ | (0.07 | ) | $ | (0.40 | ) | $ | (0.18 | ) | ||
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| Weighted average shares-basic and diluted | 51,701,443 | 27,398,419 | 48,974,854 | 25,107,598 | ||||||||||
See notes to condensed consolidated financial statements.
2
Condensed Consolidated
Statements of Changes in Stockholders’ Equity
(unaudited)
| Common
Stock
|
Additional Paid-in Capital |
Unearned Compensation Stock Options |
Accumulated Deficit |
Accumulated Other Comprehensive Loss |
Total Stockholders’ Equity |
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| Number of Shares |
Amount
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| Balance - December 31, 2003 | 33,919,948 | $ | 34,000 | $ | 60,345,000 | $ | — | $ | (33,728,000 | ) | $ | — | $ | 26,651,000 | |||||||||
| Issuance of common stock and warrants - net of expenses | 12,727,106 | 13,000 | 64,745,000 | 64,758,000 | |||||||||||||||||||
| Issuance of common stock for the acquisition of 53% of | |||||||||||||||||||||||
| Oxis International Inc. | 1,618,061 | 1,000 | 8,193,000 | 8,194,000 | |||||||||||||||||||
| Issuance of common stock options and warrants | |||||||||||||||||||||||
| for consulting services | 1,504,000 | 1,504,000 | |||||||||||||||||||||
| Issuance of common stock options | 387,000 | (387,000 | ) | — | |||||||||||||||||||
| Exercise of common stock warrants and options | 3,441,107 | 3,000 | 9,064,000 | 9,067,000 | |||||||||||||||||||
| Amortization | 210,000 | 210,000 | |||||||||||||||||||||
| Foreign currency translation adjustment | (32,000 | ) | (32,000 | ) | |||||||||||||||||||
| Net loss | — | — | — | — | (19,816,000 | ) | — | (19,816,000 | ) | ||||||||||||||
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| Balance - September 30, 2004 | 51,706,222 | $ | 51,000 | $ | 144,238,000 | $ | (177,000 | ) | $ | (53,544,000 | ) | $ | (32,000 | ) | $ | 90,536,000 | |||||||
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See notes to condensed consolidated financial statements.
3
AXONYX INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
| Nine months ended September 30, | ||||||||
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