Florida
|
04-3721895
|
(State
or Other Jurisdiction of Incorporation
or Organization)
|
(I.R.S.
Employer Identification
No.)
|
|
||
Page
|
||
PART
I – FINANCIAL INFORMATION
|
||
Item
1.
|
||
4
|
||
|
||
5
|
||
6
|
||
|
||
9
|
||
10
|
||
Item
2.
|
16
|
|
Item
3.
|
21
|
|
PART
II – OTHER INFORMATION
|
||
22
|
||
Current
Assets:
|
||||
Cash
and cash equivalents
|
$
|
2,816,889
|
||
Marketable
investments
|
3,444,655
|
|||
Prepaid
expenses
|
127,748
|
|||
TOTAL
CURRENT ASSETS
|
6,389,292
|
|||
Property
and equipment, net
|
96,525
|
|||
Security
deposits
|
55,608
|
|||
$
|
6,541,425
|
|||
Current
Liabilities:
|
||||
Accounts
payable
|
$
|
142,604
|
||
Accrued
expenses
|
109,371
|
|||
TOTAL
CURRENT LIABILITIES
|
251,975
|
|||
Stockholders'
equity:
|
||||
Preferred
stock, $.001 par value, 20,000,000 shares
|
||||
authorized,
277,100 shares outstanding, designated
|
||||
as
Series A Convertible Preferred Stock
|
2,771,000
|
|||
Common
stock, $.0001 par value, authorized 100,000,000
|
||||
shares,
18,604,300 issued at July 31, 2005
|
1,860
|
|||
Additional
paid-in-capital
|
9,437,857
|
|||
Unamortized
deferred stock based compensation
|
(335,593
|
)
|
||
Deficit
accumulated during the development stage
|
(5,585,674
|
)
|
||
6,289,450
|
||||
$
|
6,541,425
|
|
Three
Months Ended July 31,
|
Six
Months Ended July 31,
|
August
4, 1999
(Inception)
to
|
|||||||||||||
|
2005
|
2004
|
2005
|
2004
|
July
31, 2005
|
|||||||||||
|
|
|
|
|
|
|||||||||||
Revenues
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
||||||
|
||||||||||||||||
Costs
and expenses:
|
||||||||||||||||
|
||||||||||||||||
Research
and development
|
266,161
|
90,949
|
562,807
|
168,173
|
2,853,134
|
|||||||||||
|
||||||||||||||||
General
and administrative
|
980,503
|
2,004
|
1,555,786
|
2,004
|
2,222,028
|
|||||||||||
|
||||||||||||||||
Stock
based compensation
|
234,897
|
2,733
|
453,294
|
2,733
|
576,357
|
|||||||||||
|
||||||||||||||||
Total
costs and expenses
|
1,481,561
|
95,686
|
2,571,887
|
172,910
|
5,651,519
|
|||||||||||
Loss
from operations
|
(1,481,561
|
)
|
(95,686
|
)
|
(2,571,887
|
)
|
(172,910
|
)
|
(5,651,519
|
)
|
||||||
|
||||||||||||||||
Interest
and investment income
|
33,686
|
0
|
45,810
|
0
|
65,845
|
|||||||||||
|
||||||||||||||||
Net
loss
|
$
|
(1,447,875
|
)
|
$
|
(95,686
|
)
|
$
|
(2,526,077
|
)
|
$
|
(172,910
|
)
|
$
|
(5,585,674
|
)
|
|
|
||||||||||||||||
Weighted
average shares outstanding:
|
||||||||||||||||
Basic
and diluted
|
18,933,648
|
14,000,318
|
18,335,109
|
13,590,320
|
12,514,245
|
|||||||||||
|
||||||||||||||||
Net
loss per common share:
|
||||||||||||||||
Basic
and diluted
|
$
|
(0.08
|
)
|
$
|
(0.01
|
)
|
$
|
(0.14
|
)
|
$
|
(0.01
|
)
|
$
|
(0.45
|
)
|
|
|
|
|
|
|
Deficit
|
|
|||||||||||||||
|
|
|
|
|
Deferred
|
Accumulated
|
|
|||||||||||||||
|
|
|
Unamortized
|
During
|
Total
|
|||||||||||||||||
|
Common
Stock
|
Treasury
|
Additional
|
Stock-based
|
Development
|
Stockholders'
|
||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Paid
in Capital
|
Compensation
|
Stage
|
Equity
|
|||||||||||||||
Balance
August 4, 1999 (Inception)
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||||
Sale
of common stock - founders
|
222,000,000
|
$
|
22,200
|
—
|
$
|
19,800
|
—
|
—
|
$
|
42,000
|
||||||||||||
Net
loss for the period ended January 31, 2000
|
—
|
—
|
—
|
—
|
—
|
(14,760
|
)
|
(14,760
|
)
|
|||||||||||||
Balance,
January 31, 2000
|
222,000,000
|
$
|
22,200
|
$
|
0
|
$
|
19,800
|
$
|
0
|
($14,760
|
)
|
$
|
27,240
|
|||||||||
Net
loss for the period ended January 31, 2001
|
—
|
—
|
—
|
—
|
—
|
(267,599
|
)
|
(267,599
|
)
|
|||||||||||||
Balance,
January 31, 2001
|
222,000,000
|
$
|
22,200
|
$
|
0
|
$
|
19,800
|
$
|
0
|
($282,359
|
)
|
($240,359
|
)
|
|||||||||
Capital
contribution cash
|
45,188
|
45,188
|
||||||||||||||||||||
Net
loss for the period ended January 31, 2002
|
—
|
—
|
—
|
—
|
—
|
(524,224
|
)
|
(524,224
|
)
|
|||||||||||||
Balance,
January 31, 2002
|
222,000,000
|
$
|
22,200
|
$
|
0
|
$
|
64,988
|
$
|
0
|
($806,583
|
)
|
($719,395
|
)
|
|||||||||
Sale
of common stock
|
7,548,000
|
755
|
2,645
|
3,400
|
||||||||||||||||||
Capital
contribution cash
|
2,500
|
2,500
|
||||||||||||||||||||
Net
loss for the period ended January 31, 2003
|
—
|
—
|
—
|
—
|
—
|
(481,609
|
)
|
(481,609
|
)
|
|||||||||||||
Balance,
January 31, 2003
|
229,548,000
|
$
|
22,955
|
$
|
0
|
$
|
70,133
|
$
|
0
|
($1,288,192
|
)
|
($1,195,104
|
)
|
|||||||||
Net
loss for the period ended January 31, 2004
|
—
|
—
|
—
|
—
|
—
|
(383,021
|
)
|
(383,021
|
)
|
|||||||||||||
Balance,
January 31, 2004
|
229,548,000
|
$
|
22,955
|
$
|
0
|
$
|
70,133
|
$
|
0
|
($1,671,213
|
)
|
($1,578,125
|
)
|
|
|
|
|
|
|
Deficit
|
|
|||||||||||||||
|
|
|
|
|
Deferred
|
Accumulated
|
|
|||||||||||||||
|
|
|
Unamortized
|
During
|
Total
|
|||||||||||||||||
|
Common
Stock
|
Treasury
|
Additional
|
Stock-based
|
Development
|
Stockholders'
|
||||||||||||||||
|
Shares
|
Par
Value
|
Shares
|
Paid
in Capital
|
Compensation
|
Stage
|
Equity
|
|||||||||||||||
Balance,
January 31, 2004
|
229,548,000
|
$
|
22,955
|
$
|
0
|
$
|
70,133
|
$
|
0
|
($1,671,213
|
)
|
($1,578,125
|
)
|
|||||||||
Founders
waive deferred compensation
|
1,655,029
|
1,655,029
|
||||||||||||||||||||
Private
Placement common stock
|
2,645,210
|
265
|
2,512,685
|
2,512,950
|
||||||||||||||||||
Redeemed
shares from Panetta Partners, Ltd
|
(218,862,474
|
)
|
(21,886
|
)
|
(478,114
|
)
|
(500,000
|
)
|
||||||||||||||
Cost
associated with recapitalization
|
(301,498
|
)
|
(301,498
|
)
|
||||||||||||||||||
Share
exchange with Xenomics Founders
|
2,258,001
|
226
|
(226
|
)
|
0
|
|||||||||||||||||
Issuance
of treasury shares to escrow
|
350,000
|
35
|
(35
|
)
|
0
|
|||||||||||||||||
Private
Placement common stock
|
1,368,154
|
136
|
2,667,764
|
2,667,900
|
||||||||||||||||||
Issuance
of warrants to finders
|
157,062
|
157,062
|
||||||||||||||||||||
Finders
warrants charged cost of capital
|
(157,062
|
)
|
(157,062
|
)
|
||||||||||||||||||
Deferred
stock based compensation
|
895,450
|
(895,450
|
)
|
0
|
||||||||||||||||||
Amortization
of deferred stock based compensation
|
123,063
|
123,063
|
||||||||||||||||||||
Net
loss for the year ended January 31, 2005
|
—
|
—
|
—
|
—
|
—
|
(1,388,384
|
)
|
(1,388,384
|
)
|
|||||||||||||
Balance,
January 31, 2005
|
17,306,891
|
$
|
1,731
|
($35
|
)
|
$
|
7,021,223
|
($772,387
|
)
|
($3,059,597
|
)
|
$
|
3,190,935
|
|
|
|
|
|
|
|
Deficit
|
|
|||||||||||||||||
|
|
|
|
|
|
Deferred
|
Accumulated
|
|
|||||||||||||||||
|
|
|
|
Unamortized
|
During
|
Total
|
|||||||||||||||||||
|
Preferred
|
Common
Stock
|
Treasury
|
Additional
|
Stock-based
|
Development
|
Stockholders'
|
||||||||||||||||||
|
Stock
|
Shares
|
Par
Value
|
Shares
|
Paid
in Capital
|
Compensation
|
Stage
|
Equity
|
|||||||||||||||||
Balance,
January 31, 2005
|
$
|
0
|
17,306,891
|
$
|
1,731
|
($35
|
)
|
$
|
7,021,223
|
($772,387
|
)
|
($3,059,597
|
)
|
$
|
3,190,935
|
||||||||||
|
|||||||||||||||||||||||||
Private
Placement common stock - February 2005
|
102,564
|
10
|
199,990
|
200,000
|
|||||||||||||||||||||
Payment
of finders fees and expenses in cash
|
(179,600
|
)
|
(179,600
|
)
|
|||||||||||||||||||||
Common
stock issued to finders
|
24,461
|
2
|
(2
|
)
|
—
|
||||||||||||||||||||
Private
placement of common stock - net
|
127,025
|
12
|
20,388
|
20,400
|
|||||||||||||||||||||
|
|||||||||||||||||||||||||
Private
Placement common stock - April 2005
|
1,515,384
|
152
|
2,954,847
|
2,954,999
|
|||||||||||||||||||||
Payment
of finders fees and expenses in cash
|
(298,000
|
)
|
(298,000
|
)
|
|||||||||||||||||||||
Issuance
of warrants to finders at fair value
|
222,188
|
222,188
|
|||||||||||||||||||||||
Finders
warrants treated cost of capital
|
—
|
—
|
(222,188
|
)
|
(222,188
|
)
|
|||||||||||||||||||
Private
placement of common stock - net
|
1,515,384
|
152
|
2,656,847
|
2,656,999
|
|||||||||||||||||||||
|
|||||||||||||||||||||||||
Sale
of Series A Convertible Preferred Stock
|
2,771,000
|
2,771,000
|
|||||||||||||||||||||||
Payment
of finders fees and expenses in cash
|
(277,101
|
)
|
(277,101
|
)
|
|||||||||||||||||||||
Issuance
of warrants to finders at fair value
|
167,397
|
167,397
|
|||||||||||||||||||||||
Finders
warrants treated cost of capital
|
—
|
(167,397
|
)
|
(167,397
|
)
|
||||||||||||||||||||
Sale
of Series A Convertible Preferred Stock - net
|
2,771,000
|
(277,101
|
)
|
2,493,899
|
|||||||||||||||||||||
|
|||||||||||||||||||||||||
Retirement
of Treasury Shares
|
(350,000
|
)
|
(35
|
)
|
35
|
—
|
|||||||||||||||||||
Shares
issued for services
|
5,000
|
16,500
|
16,500
|
||||||||||||||||||||||
Amortization
of deferred stock based compensation
|
436,794
|
436,794
|
|||||||||||||||||||||||
Net
loss for 6 month ended July 31, 2005
|
—
|
—
|
—
|
—
|
—
|
—
|
(2,526,077
|
)
|
(2,526,077
|
)
|
|||||||||||||||
Balance,
July 31, 2005
|
$
|
2,771,000
|
18,604,300
|
$
|
1,860
|
$
|
0
|
$
|
9,437,857
|
($335,593
|
)
|
($5,585,674
|
)
|
$
|
6,289,450
|
Six
months ended July 31,
|
Period
from
August 4, 1999
(inception) to
|
|||||||||
2005 | 2004 |
July
31, 2005
|
||||||||
Cash flows from operating activities: | ||||||||||
Net
loss
|
$ |
(2,
526,077
|
)
|
$ |
(172,910
|
) | $ |
(5,585,674
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating activities:
|
||||||||||
Depreciation
|
10,545
|
—
|
19,612
|
|||||||
Stock
based compensation expense
|
453,294
|
2,733
|
576,357
|
|||||||
Founders
compensation contributed to equity
|
—
|
74,404
|
1,655,028
|
|||||||
Amortization
of purchase discount on marketable investments
|
(1,695
|
)
|
—
|
(1,695
|
)
|
|||||
Changes
in operating assets and liabilities:
|
||||||||||
Prepaid
expenses
|
(92,388
|
)
|
(16,490
|
) |
(127,748
|
)
|
||||
Security
deposit
|
2,565
|
(50,617
|
) |
(55,608
|
)
|
|||||
Accounts
payable and accrued expenses
|
44,916
|
33,893
|
251,976
|
|||||||
Patent
costs
|
—
|
(36,572
|
) |
—
|
||||||
Total
adjustments
|
417,238
|
7,351
|
2,317,922
|
|||||||
Net
cash used in operating activities
|
(2,108,839
|
)
|
(165,559
|
) |
(3,267,752
|
)
|
||||
Cash
flows from investing activities:
|
||||||||||
Acquisition
of equipment
|
(29,575
|
)
|
(41,137
|
) |
(116,137
|
)
|
||||
Purchase
of marketable investments
|
(3,442,960
|
)
|
—
|
(3,442,960
|
)
|
|||||
Net
cash used in investing activities
|
(3,472,535
|
)
|
(41,137
|
) |
(3,559,097
|
)
|
||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from issuance of common stock
|
3,154,999
|
2,512,950
|
8,428,937
|
|||||||
Payment
of acquisition costs on common stock
|
(477,600
|
)
|
(301,498
|
) |
(779,098
|
)
|
||||
Proceeds
from issuance of preferred stock
|
2,771,000
|
2,771,000
|
||||||||
Payment
of acquisition costs on preferred stock
|
(277,101
|
)
|
(277,101
|
)
|
||||||
Purchase
of common stock
|
—
|
(500,000
|
) |
(500,000
|
)
|
|||||
Net
cash provided by financing activities
|
5,171,298
|
1,711,452
|
9,643,738
|
|||||||
|
||||||||||
Net
(decrease)increase in cash and cash equivalents
|
(410,076
|
)
|
1,504,756
|
2,816,889
|
||||||
|
||||||||||
Cash
and cash equivalents at beginning of period
|
3,226,965
|
339
|
—
|
|||||||
Cash
and cash equivalents at end of period
|
$ |
2,816,889
|
$ |
1,505,095
|
$ |
2,816,889
|
||||
|
||||||||||
Supplementary
disclosure of cash flow information:
|
||||||||||
Cash
paid for taxes
|
$ |
—
|
$ |
—
|
$ |
—
|
||||
Cash
paid for interest
|
$ |
—
|
$ |
—
|
$ |
—
|
|
Three
Months Ended July 31,
|
Six
Months Ended July,
|
|||||||||||
|
2005
|
2004
|
2005
|
2004
|
|||||||||
Net
loss, as reported
|
$
|
(1,447,875
|
)
|
$
|
(95,686
|
)
|
$
|
(2,
526,077
|
)
|
$
|
(172,910
|
)
|
|
Add:
Stock-based employee compensation expense
|
|||||||||||||
recorded under APB No. 25 intrinsic value method
|
—
|
—
|
—
|
—
|
|||||||||
Deduct:
Stock-based employee compensation
|
|||||||||||||
expense
determined under fair value method
|
(63,770
|
)
|
(149
|
)
|
(127,540
|
)
|
(149
|
)
|
|||||
|
|||||||||||||
Pro
forma net loss
|
$
|
(1,511,645
|
)
|
$
|
(95,835
|
)
|
$
|
(2,653,617
|
)
|
$
|
(173,059
|
)
|
|
|
|||||||||||||
Net
loss per share:
|
|||||||||||||
Basic
and diluted -as reported
|
$
|
(0.08
|
)
|
$
|
(0.01
|
)
|
$
|
(0.14
|
)
|
($0.01
|
)
|
||
|
|||||||||||||
Basic
and diluted -pro forma
|
$
|
(0.08
|
)
|
$
|
(0.01
|
)
|
$
|
(0.14
|
)
|
($0.01
|
)
|
||
Black-Scholes
Methodology Assumptions:
|
|||||||||||||
Dividend
yield
|
0
|
%
|
0
|
%
|
0
|
%
|
0
|
%
|
|||||
Risk
free interest rate
|
4.25
|
%
|
4.25
|
%
|
4.25
|
%
|
4.25
|
%
|
|||||
Expected
lives of options
|
7
to 10 years
|
7
to 10 years
|
7
to 10 years
|
7
to 10 years
|
31.1 | Certification of Chief Executive Officer required under Rule 13a-14(a)/15d-14(a) under the Exchange Act. | |
31.2 | Certification of Principal Financial Officer required under Rule 13a-14(a)/15d-14(a) under the Exchange Act. | |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2 | Certification of Principal Financial Officer pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|
|
|
Date: October 27, 2005 | By: | /s/ V. Randy White |
|
||
V.
Randy White
Chief Executive
Officer
|
Date: October 27, 2005 | By: | /s/ Bernard F. Denoyer |
|
||
Bernard
F. Denoyer
Vice President,
Controler
|
/s/ V. Randy White, Ph.D. | ||
|
||
Name:
V. Randy White, Ph.D.
Title:
Chief Executive Officer
(Principal
Executive Officer)
|
/s/ Bernard Denoyer | ||
|
||
Name:
Bernard Denoyer
Title:
Vice President - Controller
(Principal
Financial Officer)
|
/s/ V. Randy White | ||
|
||
Name:
V. Randy White, Ph.D.
Title:
Chief Executive Officer
|
/s/ Bernard Denoyer | ||
|
||
Name:
Bernard Denoyer
Title:
Vice President - Controller
|