UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended March 31, 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 _______________ |
Commission file number: 0-27718
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NEOSE TECHNOLOGIES, INC. |
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(Exact name of registrant as specified in its charter) |
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Delaware |
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13-3549286 |
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(State
or other jurisdiction of |
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(I.R.S.
Employer |
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102 Witmer Road |
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Horsham, Pennsylvania |
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19044 |
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(Address of principal executive offices) |
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(Zip Code) |
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(215) 315-9000 |
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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 x No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes x No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 19,948.921 shares of common stock, $.01 par value, were outstanding as of April 20, 2004.
NEOSE TECHNOLOGIES, INC.
(a development-stage company)
INDEX
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Page |
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PART I. |
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Item 1. |
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3 |
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4 |
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5 |
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6 |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. |
20 |
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Item 4. |
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PART II. |
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Item 6. |
21 |
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23 |
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2
PART I. FINANCIAL INFORMATION
NEOSE TECHNOLOGIES, INC.
(a development-stage
company)
BALANCE SHEETS
(unaudited)
(in thousands, except per share amounts)
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December 31, 2003 |
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March 31, 2004 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
48,101 |
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$ |
39,917 |
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Marketable securities |
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4,959 |
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4,974 |
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Restricted funds |
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901 |
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- |
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Prepaid expenses and other current assets |
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917 |
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1,906 |
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Total current assets |
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54,878 |
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46,797 |
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Property and equipment, net |
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37,192 |
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40,691 |
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Acquired intellectual property, net |
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1,910 |
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1,760 |
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Other assets |
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865 |
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845 |
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Total assets |
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$ |
94,845 |
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$ |
90,093 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Current portion of long-term debt and capital lease obligations |
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$ |
2,231 |
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$ |
2,756 |
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Accounts payable |
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2,342 |
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1,835 |
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Accrued compensation |
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2,510 |
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1,218 |
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Accrued expenses |
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2,433 |
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2,780 |
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Deferred revenue |
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4,333 |
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4,789 |
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Total current liabilities |
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13,849 |
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13,378 |
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Long-term debt and capital lease obligations |
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8,370 |
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13,544 |
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Other liabilities |
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413 |
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331 |
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Total liabilities |
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22,632 |
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27,253 |
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Stockholders’ equity: |
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Preferred stock, $.01
par value, 5,000 shares |
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- |
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- |
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Common stock, $.01 par
value, 30,000 shares |
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199 |
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199 |
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Additional paid-in capital |
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217,849 |
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217,966 |
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Deferred compensation |
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(96 |
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(83 |
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Deficit accumulated during the development-stage |
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(145,739 |
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(155,242 |
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Total stockholders’ equity |
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72,213 |
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62,840 |
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Total liabilities and stockholders’ equity |
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$ |
94,845 |
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$ |
90,093 |
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The accompanying notes are an integral part of these financial statements.
3
NEOSE
TECHNOLOGIES, INC.
(a development-stage company)
STATEMENTS
OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
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Three months |
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Period from |
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ended March 31, |
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inception |
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(January 17, 1989) |
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2003 |
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2004 |
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to March 31, 2004 |
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Revenue from collaborative agreements |
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$ |
70 |
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$ |
1,250 |
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$ |
20,131 |
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Operating expenses: |
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Research and development |
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5,619 |
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7,878 |
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134,377 |
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Marketing, general and administrative |
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3,005 |
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2,862 |
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63,082 |
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Total operating expenses |
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8,624 |
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10,740 |
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197,459 |
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Operating loss |
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(8,554 |
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(9,490 |
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(177,328 |
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Other income |
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- |
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- |
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7,773 |
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Impairment of equity securties |
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- |
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(1,250 |
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Interest income |
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170 |
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105 |
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19,447 |
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Interest expense |
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(37 |
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(118 |
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(3,884 |
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Net loss |
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$ |
(8,421 |
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$ |
(9,503 |
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$ |
(155,242 |
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Basic and diluted net loss per share |
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$ |
(0.53 |
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$ |
(0.48 |
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Weighted-average shares outstanding used in |
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15,801 |
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19,943 |
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The accompanying notes are an integral part of these financial statements.
4
NEOSE TECHNOLOGIES, INC.
(a development-stage
company)
STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
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Three months ended |
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Period from |
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March 31, |
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inception |
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(January 17, 1989) |
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2003 |
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2004 |
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to March 31, 2004 |
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Cash flows from operating activities: |
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Net loss |
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$ |
(8,421 |
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$ |
(9,503 |
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$ |
(155,242 |
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Adjustments to
reconcile net loss to cash used in |
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Depreciation and amortization |
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1,048 |
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1,347 |
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19,274 |
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Loss on disposition of property and equipment |
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- |
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264 |
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Non-cash compensation |
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- |
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14 |
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4,931 |
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Common stock issued for non-cash and other charges |
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- |
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- |
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35 |
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Changes in operating assets and liabilities: |
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Prepaid expenses and other current and non-current assets |
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(888 |
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(1,083 |
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(2,314 |
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Accounts payable |
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(256 |
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(507 |
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1,835 |
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Accrued compensation |
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(612 |
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(1,292 |
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799 |
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Accrued expenses |
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(249 |
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(98 |
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1,480 |
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Deferred revenue |
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- |
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456 |
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4,789 |
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Other liabilities |
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2 |
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(82 |
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(88 |
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Net cash used in operating activities |
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(9,376 |
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(10,748 |
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(124,237 |
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Cash flows from investing activities: |
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Purchases of property and equipment |
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(353 |
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(3,968 |
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(54,531 |
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Proceeds from sale-leaseback of equipment |
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- |
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- |
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1,382 |
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Purchases of marketable securities |
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(18,259 |
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- |
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(423,307 |
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Proceeds from sales of marketable securities |
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- |
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- |
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29,686 |
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Proceeds from
maturities of and other changes in marketable |
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10,000 |
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