Florida
|
04-3721895
|
(State
or Other Jurisdiction of Incorporation
or Organization)
|
(I.R.S.
Employer Identification
No.)
|
PART
I
|
PAGE
|
|
Item
1.
|
1
|
|
Item
2.
|
12
|
|
Item
3.
|
12
|
|
Item
4.
|
12
|
|
PART
II
|
||
Item
5.
|
12
|
|
Item
6.
|
14
|
|
Item
7.
|
19
|
|
Item
8A.
|
19
|
|
PART
III
|
||
Item
9.
|
20
|
|
Item
10.
|
22
|
|
Item
11.
|
25
|
|
Item
12.
|
26
|
|
Item
13.
|
27
|
|
Item
14.
|
30
|
|
|
31
|
·
|
Corporate
capital: 200,000 Euros, of which INMI contributed 100,000 Euros in
cash
and we contributed intellectual property, as further described below,
which was deemed to have a value of 100,000 Euros;
|
·
|
Corporate
Term: Until December 31, 2009, unless extended or wound up prior
to that
date;
|
·
|
Shareholder
Vote: All shareholder resolutions require a 2/3 super-majority except
for
certain resolutions regarding amendments to the deed of incorporation,
change of corporate purpose, and significant changes in shareholder
rights, among others, which require unanimous vote by the shareholders;
|
·
|
Directors
and Officers: SpaXen will be managed by a sole managing director
or by a
board of directors; currently, SpaXen is being managed by a board
of
directors consisting of three directors, the chairman of which is
David L.
Tomei, who is also our chairman of the board; in addition, SpaXen
has
appointed a supervisory board (also referred to as "Board of Auditors"
in
SpaXen's deed of incorporation) consisting of three auditors and
two
deputies;
|
·
|
Dissolution:
The shareholders of SpaXen may unanimously vote to dissolve SpaXen
prior
to the end of the Corporate Term.
|
·
|
As
its contribution to SpaXen, we agreed to assign to SpaXen all rights
and
patent applications to that portion of the Tr-DNA technology that
applies
Tr-DNA technology to the field of infectious diseases (the "Contributed
IP");
|
·
|
All
profits of SpaXen will be reinvested into research and development
of
intellectual property applying Tr-DNA technology to pathologies caused
by
or associated with infectious agents (the "Newly Developed IP");
|
·
|
INMI
will be the sole owner of all Newly Developed IP;
|
·
|
SpaXen
will be the sole owner of all intellectual property derived from
SpaXen's
research that may be applied in fields other than pathologies caused
by or
associated with infectious agents (the "Derivative IP");
|
·
|
We
will have royalty-free, perpetual, exclusive, worldwide commercialization
rights for Derivative IP;
|
·
|
We
will have exclusive worldwide commercialization rights for Newly
Developed
IP in consideration for a license fee payment of not more than 10%
of net
proceeds of all products utilizing Newly Developed IP;
|
·
|
The
initial term of commercialization rights for Newly Developed IP is
5 years
(commencing April 7, 2004), with the possibility of a 5 year extension;
|
·
|
In
the event that a patent issues based on Newly Developed IP during
the term
of commercialization rights for Newly Developed IP, the commercialization
rights for Newly Developed IP will be extended for the duration of
such
patent; and
|
·
|
Upon
dissolution of SpaXen, our commercialization rights for Newly Developed
IP
will terminate, the Contributed IP will revert back to us and all
capital
surplus will be paid to INMI;
|
·
|
acceptance
of products based upon the Tr-DNA technology by physicians and patients
as
safe and effective diagnostic products,
|
·
|
adequate
reimbursement by third parties;
|
·
|
cost
effectiveness;
|
·
|
potential
advantages over alternative treatments; and
|
·
|
relative
convenience and ease of administration.
|
·
|
the
presence of sufficient Tr-DNA of fetal origin during first trimester
of
pregnancy to perform genetic testing;
|
·
|
our
ability to reliably harvest Tr-DNA of fetal origin from random maternal
urine collection;
|
·
|
developing
a method with sufficient sensitivity to provide a reliable "negative"
result; and
|
·
|
developing
a method with an acceptable false positive rate.
|
·
|
technological
innovations or new products and services by us or our competitors;
|
·
|
clinical
trial results relating to our tests or those of our competitors;
|
·
|
reimbursement
decisions by Medicare and other managed care organizations;
|
·
|
FDA
regulation of our products and services;
|
·
|
the
establishment of partnerships with clinical reference laboratories;
|
·
|
health
care legislation;
|
·
|
intellectual
property disputes;
|
·
|
additions
or departures of key personnel;
|
·
|
sales
of our common stock
|
·
|
our
ability to integrate operations, technology, products and services;
|
·
|
our
ability to execute our business plan;
|
·
|
operating
results below expectations;
|
·
|
loss
of any strategic relationship;
|
·
|
industry
developments;
|
·
|
economic
and other external factors; and
|
·
|
period-to-period
fluctuations in our financial results.
|
2004
|
HIGH
|
LOW
|
|||||
Fourth
Quarter
|
$
|
4.35
|
$
|
3.65
|
|||
Third
Quarter
|
3.80
|
2.75
|
·
|
amended
our articles of incorporation to change our corporate name to "Xenomics,
Inc." and to split our stock outstanding prior to the redemption
111 for 1
(effective July 26, 2004).
|
·
|
redeemed
1,971,734 pre-split shares (the equivalent of 218,862,474 post-split
shares) from Panetta Partners Ltd., a principal shareholder at the
time,
for $500,000 or $0.0023 per share.
|
·
|
entered
into employment agreements with two of the former Xenomics Sub
shareholders and a consulting agreement with one of the former Xenomics
Sub shareholders.
|
·
|
entered
into a Voting Agreement with certain investors, the former Xenomics
Sub
shareholders and certain principal
shareholders.
|
·
|
entered
into a Technology Acquisition Agreement with the former Xenomics
Sub
shareholders under which we granted an option to the former Xenomics
Sub
holders to acquire Xenomics Sub technology if we fail to apply at
least
50% of the net proceeds of financing we raise to the development
of
Xenomics Sub technology during the period ending July 1, 2006 in
exchange
for all of our shares and share equivalents held by the former Xenomics
Sub holders at the time such option is exercised.
|
Total
|
Less
than
1
Year
|
1-2
Years
|
3-5
Years
|
More
than
5
Years
|
||||||||||||
Operating
Leases
|
$
|
649,303
|
$
|
160,878
|
$
|
200,383
|
$
|
234,249
|
$
|
53,793
|
||||||
Employment
and Consulting Agreements
|
1,728,375
|
700,000
|
700,000
|
328,375
|
—
|
|||||||||||
Total
obligations
|
$
|
2,377,678
|
$
|
860,878
|
$
|
900,383
|
$
|
562,624
|
$
|
53,793
|
Name
|
Age
|
Positions
|
L.
David Tomei, Ph.D.
|
60
|
Chairman
of the Board, President , SpaXen Italia, srl
|
V.
Randy White, Ph.D.
|
58
|
Chief
Executive Officer and Director
|
Hovsep
Melkonyan, Ph.D.
|
53
|
Vice
President, Research
|
Bernard
Denoyer.
|
57
|
Vice
President - Controller
|
Samuil
Umansky, M.D., Ph.D.
|
63
|
President
and Chief Scientific Officer and Director
|
Christoph
Bruening.
|
37
|
Director
|
Thomas
Adams, Ph.D.
|
62
|
Director
|
Donald
H. Picker, Ph.D.
|
59
|
Director
|
|
Annual
Compensation
|
||||||||||||
Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Other
Annual
Compensation
($)
|
|||||||||
L.
David Tomei, Ph.D. Chairman
|
2005
|
58,333
|
(1)
|
—
|
—
|
||||||||
V.
Randy White, Ph.D, Chief Executive
Officer
|
2005
|
62,019
|
—
|
—
|
|||||||||
Samuil
R.Umansky,
M.D.,
Ph.D,
President
|
2005
|
83,461
|
—
|
—
|
|||||||||
Hovsep
Melkonyan, Ph.D, Vice President, Research
|
2005
|
69,153
|
—
|
—
|
Name
|
Number
of Shares
Underlying
Options
Granted
|
Percent
of Total Options
Granted
to
Employees
in
2005
|
Exercise
Price
Per
Share
|
Expiration
Date
|
|||||||||
L.
David Tomei, Ph.D. Chairman
|
1,012,500
|
18.6%
|
|
$1.25
|
6/24/2014
|
||||||||
V.
Randy White, Ph.D, Chief Executive Officer
|
1,425,000
|
26.2%
|
|
$2.25
|
9/13/2014
|
||||||||
Samuil
R.Umansky, M.D., Ph.D, President
|
1,012,500
|
18.6%
|
|
$1.25
|
6/24/2014
|
||||||||
Hovsep
Melkonyan, Ph.D, Vice President, Research
|
675,000
|
12.4%
|
|
$1.25
|
6/24/2014
|
Number
of Shares Underlying Options at January 31, 2005
|
Value
of Unexercised In the Money Options at January 31, 2005
|
||||||||||||
Name
|
Exercisable
|
Unexercisable
|
Exercisable
|
Unexercisable
(1)
|
|||||||||
L.
David Tomei, Ph.D. Chairman
|
1,012,500
|
$
|
2,784,375
|
||||||||||
V.
Randy White, Ph.D, Chief Executive Officer
|
1,425,000
|
$
|
2,493,750
|
||||||||||
Samuil
R.Umansky, M.D., Ph.D, President
|
1,012,500
|
$
|
2,784,375
|
||||||||||
Hovsep
Melkonyan, Ph.D, Vice President, Research
|
675,000
|
$
|
1,856,250
|
Plan
Category
|
Number
of Shares of
Common
Stock
to be
Issued
upon Exercise
of
Outstanding Options
|
Weighted-Average
ExercisePrice
of
Outstanding
Options
|
Number
of Options
Remaining
Available for
Future
Issuance Under
Equity
Compensation Plans
(excluding
securities
reflected
in column (a))
|
|||||||
(a)
|
(b)
|
(c)
|
||||||||
Equity
Compensation Plans Approved by Stockholders
|
5,000,000 |
$1.50
|
0 | |||||||
Equity
Compensation Plans Not
Approved by Stockholders
|
1,956,341 |
$2.71
|
n/a | |||||||
Total
|
6,956,341 |
$1.84
|
0 |
·
|
Each
person or entity known by us to beneficially own more than 5% of
the
outstanding shares of our common stock;
|
·
|
Each
of our executive officers and directors; and
|
·
|
All
of our executive officers and directors as a group.
|
Name
of Beneficial Owner
|
Number
of Shares
|
Percentage
of Shares
Beneficially
Owned (1)
|
||
Executive
officers and directors:
|
||||
L.
David Tomei
|
1,191,485
(2)
|
6.2
|
||
Chairman
of the Board
|
||||
V.
Randy White
|
0
|
|||
Chief
Executive Officer
|
||||
and
Director
|
||||
Bernard
Denoyer
|
0
|
|||
Vice
President, Controller
|
||||
Samuil
Umansky
|
1,138,934
(3)
|
5.9
|
||
President,
Chief Scientific Officer
|
||||
and
Director
|
||||
Hovsep
Melkonyan
|
517,553
(4)
|
2.7
|
||
Vice
President, Research
|
||||
Christoph
Bruening
|
115,000
|
*
|
||
Director
|
||||
Donald
Picker
|
100,000
(5)
|
*
|
||
Director
|
||||
Thomas
Adams
|
0
|
|||
Director
|
||||
All
Directors and Executive Officers
|
2,462,972
(6)
|
12.5
|
||
as
a group (8 persons)
|
||||
Other
5% Stockholders:
|
||||
Gabriele
M. Cerrone
|
1,181,358
(7)
|
6.1
|
Exhibit
|
Description
|
|
2.1
|
Capital
Stock Purchase Agreement between Panetta Partners, Ltd. And Jeannine
Karklins dated February 24, 2004 (1)
|
|
3.1
|
Articles
of Incorporation of the Company (2)
|
|
3.2
|
Articles
of Amendment to Articles of Incorporation of Used Kar Parts, Inc.
changing
its name to Xenomics, Inc., filed on July 14, 2004 with the Florida
Secretary of State (3)
|
|
3.2
|
Amended
and Restated By-Laws (4)
|
|
4.1
|
Form
of Stock Certificate, $.001 par value (5)
|
|
4.2
|
Form
of Warrant issued to Irv Weiman, Laura Dever and Len Toboroff
(6)
|
|
4.3
|
Form
of Warrant issued to Trilogy Capital Partners, Inc. (7)
|
|
4.4
|
Form
of Warrant to purchase shares of Common Stock issued in connection
with
the sale of the Common Stock (8)
|
|
10.1
|
Xenomics,
Inc. 2004 Stock Option Plan (9)+
|
|
10.2
|
Securities
Exchange Agreement by and among Used Kar Parts, Inc., the Individuals
named on Schedule 1.1 thereto and Xenomics dated as of May 18,
2004.
(10)
|
|
10.3
|
Closing
Agreement entered into effective as of July 2, 2004 by and among
Used Kar
Parts, Inc., and Xenomics and L. David Tomei, Samuil Umansky, Hovsep
S.
Melkonyan, Kathryn P. Wilke and Anatoly V. Lichtenstein
(11)
|
|
10.4
|
Technology
Acquisition Agreement dated effective as of June 24, 2004 by and
among
Used Kar Parts, Inc., and Xenomics and L. David Tomei, Samuil Umansky,
Hovsep S. Melkonyan, Kathryn P. Wilke and Anatoly V. Lichtenstein
(12)
|
|
10.5
|
Shareholder
Escrow Agreement effective as of the 24th day of June, 2004, by
and among
Used Kar Parts, Inc., Sommer & Schneider LLP, and the several former
shareholders of Xenomics. (13)
|
|
10.6
|
Purchaser
Escrow Agreement effective as of the 24th day of June, 2004, by
and among
Used Kar Parts, Inc., Sommer & Schneider LLP and the several former
shareholders of Xenomics (14)
|
|
10.7
|
Repurchase
Agreement dated as of June 24, 2004 by and between Used Kar Parts,
Inc.
and Panetta Partners Ltd. Xenomics, Inc. 2004 Stock Option Plan
(15)
|
|
10.8
|
Executive
Employment Agreement dated effective as of June 24, 2004 by and
among
Hovsep Melkonyan, Xenomics and Used Kar Parts, Inc.
(16)+
|
|
10.9
|
Consulting
Agreement effective as of June 24, 2004 by and among L. David Tomei,
Xenomics and Used Kar Parts, Inc. (17)+
|
|
10.10
|
Voting
Agreement effective as of June 24, 2004 by and among L. David Tomei,
the
Xenomics Shareholders, the Original Shareholders and the Investors
(18)
|
10.11
|
Letter
Agreement dated September 3, 2004 between Xenomics, Inc. and Dr.
Randy
White (19)+
|
|
10.12
|
Letter
of Engagement between Trilogy Capital Partners, Inc. and Xenomics,
Inc.
dated January 10, 2005 (20)
|
|
10.13
|
Form
of Registration Rights Agreement, dated as of January 28, 2005
by and
among the Registrant and the purchasers set forth on the signature
page
thereto (21)
|
|
10.14
|
Employment
Agreement dated February 14, 2005 between the Company and Bernard
Denoyer
(22)+
|
|
10.15
|
Shareholders
Agreement between the Company and the National Institute of Infectious
Diseases "Lazzaro Spallanzani" dated April 7, 2004 (23)
|
|
10.16
|
Executive Employment Agreement dated effective as of June 24, 2004 by and among Samuil Umansky, Xenomics and Used Kar Parts, Inc. (24)+ |
Code
of Business Conduct and Ethics (25)
|
||
16
|
Letter
from Baum & Company, PA Re: Change in Certifying Accountant
(26)
|
|
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
|
|
|
Xenomics, Inc. | ||
|
|
|
Date: October 27, 2005 | By: | /s/ V. Randy White |
|
||
V.
Randy White, Ph.D.,
Chief Executive
Officer
|
Title
|
Date
|
|||
/s/
L. David Tomei
|
Co-Chairman
of the Board, President, SpaXen Italia, srl
|
October
27, 2005
|
||
L.
David Tomei, Ph.D
|
||||
/s/ Gabriele M. Cerrone | Co-Chairman of the Board |
October
27, 2005
|
||
Gabriele M. Cerrone | ||||
/s/
V. Randy White
|
Chief
Executive Officer and Director
|
October
27, 2005
|
||
V.
Randy White, Ph.D
|
||||
/s/
Bernard F. Denoyer
|
Vice
President , Controller
|
October
27, 2005
|
||
Bernard
F. Denoyer
|
||||
/s/
Samuil Umansky
|
President
and Chief Scientific Officer and Director
|
October
27, 2005
|
||
Samuil
Umansky, M.D., Ph.D
|
||||
|
Director
|
October___,
2005
|
||
Christoph
Bruening
|
||||
/s/
Thomas Adams
|
Director
|
October
27, 2005
|
||
Thomas
Adams
|
||||
/s/
Donald H. Picker
|
Director
|
October
27, 2005
|
||
Donald
H. Picker, Ph.D
|
PAGE
|
||
F-2
|
||
F-3
|
||
F-4
|
||
F-5
|
||
F-7
|
||
F-8
|
/s/ Lazar Levine & Felix LLP | ||
|
||
Lazar Levine & Felix LLP |
Current
Assets:
|
||||
Cash
and cash equivalents
|
$
|
3,226,965
|
||
Prepaid
expenses
|
35,360
|
|||
TOTAL
CURRENT ASSETS
|
3,262,325
|
|||
Property
and equipment, net
|
77,495
|
|||
Security
deposits
|
58,173
|
|||
$
|
3,397,993
|
|||
Current
Liabilities:
|
||||
Accounts
payable
|
$
|
95,063
|
||
Accrued
expenses
|
111,995
|
|||
TOTAL
CURRENT LIABILITIES
|
207,058
|
|||
Preferred
stock, $.001 par value, 20,000,000 shares
|
||||
authorized,
none outstanding
|
—
|
|||
Common
stock, $.0001 par value, authorized 100,000,000
|
||||
shares,
17,306,891 issued at January 31, 2005
|
1,731
|
|||
Treasury
stock 350,000 common shares, at par
|
(35
|
)
|
||
Additional
paid-in-capital
|
7,021,223
|
|||
Deferred
unamortized stock-based compensation
|
(772,387
|
)
|
||
Deficit
accumulated during the development stage
|
(3,059,597
|
)
|
||
3,190,935
|
||||
$
|
3,397,993
|
For
the years ended January
31,
|
For
the
Period
from
August
4, 1999
(inception)
to
January
31,
|
|||||||||
2005
|
2004
|
2005
|
||||||||
Revenues
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Costs
and Expenses:
|
||||||||||
Research
and development
|
619,635
|
383,564
|
2,290,327
|
|||||||
General
and administrative
|
651,695
|
13,483
|
666,242
|
|||||||
Stock-based
compensation - general and administrative
|
123,063
|
-
|
123,063
|
|||||||
1,394,393
|
397,047
|
3,079,632
|
||||||||
Loss
from operations
|
(1,394,393
|
)
|
(397,047
|
)
|
(3,079,632
|
)
|
||||
Interest
and other income
|
6,009
|
14,026
|
20,035
|
|||||||
Net
loss
|
$
|
(1,388,384
|
)
|
$
|
(383,021
|
)
|
$
|
(3,059,597
|
)
|
|
Weighted
average shares outstanding:
|
||||||||||
Basic
and diluted
|
14,580,166
|
13,166,502
|
11,988,509
|
|||||||
Net
loss per common share:
|
||||||||||
Basic
and diluted
|
$
|
(0.10
|
)
|
$
|
(0.03
|
)
|
$
|
(0.26
|
)
|
|
|
|
|
|
|
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
|
For
The Years ended January 31,
|
For
the Period from August 4, 1999 (inception) to January
31,
|
|||||||||
2005
|
2004
|
2005
|
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
loss
|
$
|
(1,388,384
|
)
|
$
|
(383,021
|
)
|
$
|
(3,059,597
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
Depreciation
|
9,067
|
—
|
9,067
|
|||||||
Founders’
deferred compensation contributed
|
||||||||||
to
stockholder’s equity
|
74,404
|
382,500
|
1,655,029
|
|||||||
Stock-based
compensation expense
|
123,063
|
—
|
123,063
|
|||||||
Changes
in operating assets and liabilities:
|
||||||||||
Prepaid
expenses
|
(35,360
|
)
|
—
|
(35,360
|
)
|
|||||
Security
deposit
|
(58,173
|
)
|
—
|
(58,173
|
)
|
|||||
Accounts
payable and accrued expenses
|
207,058
|
—
|
207,058
|
|||||||
Patent
Costs
|
2,161
|
365
|
—
|
|||||||
Total
Adjustments
|
322,220
|
382,865
|
1,900,684
|
|||||||
Net
cash used in operating activities
|
(1,066,164
|
)
|
(156
|
)
|
(1,158,913
|
)
|
||||
Cash
flows from investing activities:
|
||||||||||
Acquisition
of equipment
|
(86,562
|
)
|
—
|
(86,562
|
)
|
|||||
Net
cash used in investing activities
|
(86,562
|
)
|
—
|
(86,562
|
)
|
|||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from issuance of common stock - net
|
5,180,850
|
—
|
5,273,938
|
|||||||
Redeemed
shares from Panetta Partners, Ltd.
|
(500,000
|
)
|
—
|
(500,000
|
)
|
|||||
Costs
associated with recapitalization
|
(301,498
|
)
|
—
|
(301,498
|
)
|
|||||
Net
cash provided by financing activities
|
4,379,352
|
—
|
4,472,440
|
|||||||
Net
increase(decrease) in cash and cash equivalents
|
3,226,626
|
(156
|
)
|
3,226,965
|
||||||
Cash
and cash equivalents at beginning of period
|
339
|
495
|
—
|
|||||||
Cash
and cash equivalents at end of period
|
$
|
3,226,965
|
$
|
339
|
$
|
3,226,965
|
||||
Supplemental
disclosure of cashflow information:
|
||||||||||
Cash
paid for taxes
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Cash
paid for interest
|
$
|
—
|
$
|
—
|
$
|
—
|
·
|
Redeemed
1,971,734 shares (218,862,474 shares post-split shares) from
Panetta
Partners Ltd., a principal shareholder, for $500,000 or $0.0023
per share.
|
·
|
Amended
its articles of incorporation to change its corporate name to "Xenomics,
Inc." and to split its stock outstanding 111 for 1 (effective July
26,
2004), immediately following the redemption.
|
·
|
Entered
into employment agreements with two of the former Xenomics Sub
shareholders and a consulting agreement with one of the former
Xenomics
Sub shareholders.
|
·
|
Entered
into a Voting Agreement with certain investors, the former Xenomics
Sub
shareholders and certain principal shareholders.
|
·
|
Entered
into a Technology Acquisition Agreement with the former Xenomics
Sub
shareholders under which Xenomics granted an option to the former
Xenomics
Sub holders to re-purchase Xenomics Sub technology if Xenomics
fails to
apply at least 50% of the net proceeds of financing it raises to
the
development of Xenomics Sub technology during the period ending
July 1,
2006 in exchange for all Xenomics shares and share equivalents
held by the
former Xenomics Sub holders at the time such option is exercised.
|
·
|
Issued
and transferred 350,000 shares of common stock to be held in escrow,
in
the name of the Company, to cover any undisclosed liabilities of
Xenomics
Sub. Such shares as being treated as treasury shares. The escrow
period is
for one year to July 2, 2005 at which time a determination of liability
will be made.
|
Years
Ended January 31,
|
|||||||
2005
|
2004
|
||||||
Net
loss, as reported
|
$
|
(1,388,394
|
)
|
$
|
(383,021
|
)
|
|
Add:
Stock-based employee compensation expense
|
|||||||
recorded
under APB No. 25 intrinsic value method
|
—
|
—
|
|||||
Deduct:
Stock-based employee compensation
|
|||||||
expense
determined under fair value based method
|
|||||||
for
all employee awards
|
(127,689
|
)
|
—
|
||||
Pro
forma net loss
|
$
|
(1,516,083
|
)
|
$
|
(383,021
|
)
|
|
Net
loss per share:
|
|||||||
Basic
and diluted -as reported
|
$
|
(0.10
|
)
|
$
|
(0.03
|
)
|
|
Basic
and diluted -pro forma
|
$
|
(0.10
|
)
|
$
|
(0.03
|
)
|
|
Range
of fair value per share for
|
|||||||
options
granted to employees
|
|
$0.02
to $0.59
|
N/A
|
||||
Black-Scholes
Methodology Assumptions:
|
|||||||
Dividend
yield
|
0%
|
|
0%
|
|
|||
Risk
free interest rate
|
4.25%
|
|
N/A
|
||||
Expected
lives of options
|
7
years
|
N/A
|
Furniture
and fixtures
|
$
|
6,158
|
||
Laboratory
equipment
|
80,404
|
|||
86,562
|
||||
Less
- accumulated depreciation
|
(9,067
|
)
|
||
Property
and equipment, net
|
$
|
77,495
|
Number
of
Shares
|
Exercise
Price
Per
Share
|
Weighted
Average
Exercise
Price
|
||||||||
Balance,
August 4, 1999 (inception)
|
||||||||||
To
January 31, 2004
|
0
|
$0.00
|
||||||||
Activity
for the year ended January 31, 2005:
|
||||||||||
Add:
new grants
|
5,445,000
|
$1.25
- $2.50
|
$1.56
|
|||||||
Less:
cancellations and forfeitures
|
0
|
|||||||||
Less:
exercises
|
0
|
|||||||||
Balance,
January 31, 2005
|
5,445,000
|
$1.25
- $2.50
|
$1.56
|
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||
Exercise
Price
|
Number
of
Shares
|
Weighted
Average
Remaining
Life
|
Weighted
Average
Exercise
Price
|
Number
of
Shares
|
Weighted
Average
Exercise
Price
|
|||||||||||
$1.25
|
3,825,000
|
9.5
years
|
$1.25
|
75,000
|
$1.25
|
|||||||||||
$2.25
- $2.50
|
1,620,000
|
9.5
years
|
$2.28
|
0
|
—
|
|||||||||||
All
Options
|
5,445,000
|
9.5
years
|
$1.56
|
75,000
|
$1.25
|
·
|
Corporate
capital: 200,000 Euros, of which INMI contributed 100,000 Euros
in cash
and Xenomics contributed 100,000 Euros in the form of intellectual
property, as further described below;
|
·
|
Corporate
Term: Until December 31, 2009, unless extended or wound up prior
to that
date;
|
·
|
Shareholder
Vote: All shareholder resolutions require a 2/3 super-majority
except for
certain resolutions regarding amendments to the deed of incorporation,
change of corporate purpose, and significant changes in shareholder
rights, among others, which require unanimous vote by the shareholders;
|
·
|
Directors
and Officers: SpaXen will be managed by a sole managing director
or by a
board of directors; currently, SpaXen is being managed by a board
of
directors consisting of three directors, the chairman of which
is David L.
Tomei, who is also Xenomics’ chairman of the board; in addition, SpaXen
has appointed a supervisory board (also referred to as "Board of
Auditors"
in SpaXen's deed of incorporation) consisting of three auditors
and two
deputies;
|
·
|
Dissolution:
The shareholders of SpaXen may unanimously vote to dissolve SpaXen
prior
to the end of the Corporate Term.
|
·
|
In
conjunction with the formation of SpaXen, Xenomics and INMI have
entered
into a certain Shareholder Agreement, which provides, among other
terms,
the following
|
·
|
As
its contribution to SpaXen, Xenomics agreed to assign to SpaXen
all rights
and patent applications to that portion of the Tr-DNA technology
that
applies Tr-DNA technology to the field of infectious diseases (the
"Contributed IP");
|
·
|
All
profits of SpaXen will be reinvested into research and development
of
intellectual property applying Tr-DNA technology to pathologies
caused by
or associated with infectious agents (the "Newly Developed IP");
|
·
|
INMI
will be the sole owner of all Newly Developed IP;
|
·
|
SpaXen
will be the sole owner of all intellectual property derived from
SpaXen's
research that may be applied in fields other than pathologies caused
by or
associated with infectious agents (the "Derivative IP");
|
·
|
Xenomics
will have royalty-free, perpetual, exclusive, worldwide commercialization
rights for Derivative IP;
|
·
|
Xenomics
will have exclusive worldwide commercialization rights for Newly
Developed
IP in consideration for a license fee payment of not more than
10% of net
proceeds of all products utilizing Newly Developed IP;
|
·
|
The
initial term of commercialization rights for Newly Developed IP
is 5 years
(commencing April 7, 2004), with the possibility of a 5 year extension;
|
·
|
In
the event that a patent issues based on Newly Developed IP during
the term
of commercialization rights for Newly Developed IP, the commercialization
rights for Newly Developed IP will be extended for the duration
of such
patent; and
|
·
|
Upon
dissolution of SpaXen, Xenomics’ commercialization rights for Newly
Developed IP will terminate, the Newly Developed IP becomes the
property
of INMI, the Contributed IP will revert back to Xenomics and all
capital
surplus will be paid to INMI;
|
$
|
160,867
|
|||
2007
|
125,342
|
|||
2008
|
75,041
|
|||
2009
|
76,542
|
|||
2010
|
78,073
|
|||
2011
|
79,634
|
|||
2012
|
53,793
|
|||
Total
|
$
|
649,303
|
Exhibit
|
Description
|
2.1
|
Capital
Stock Purchase Agreement between Panetta Partners, Ltd. And Jeannine
Karklins dated February 24, 2004 (1)
|
3.3
|
Articles
of Incorporation of the Company (2)
|
3.4
|
Articles
of Amendment to Articles of Incorporation of Used Kar Parts,
Inc. changing
its name to Xenomics, Inc., filed on July 14, 2004 with the Florida
Secretary of State (3)
|
3.2
|
Amended
and Restated By-Laws (4)
|
4.1
|
Form
of Stock Certificate, $.001 par value (5)
|
4.2
|
Form
of Warrant issued to Irv Weiman, Laura Dever and Len Toboroff
(6)
|
4.3
|
Form
of Warrant issued to Trilogy Capital Partners, Inc. (7)
|
4.4
|
Form
of Warrant to purchase shares of Common Stock issued in connection
with
the sale of the Common Stock (8)
|
10.1
|
Xenomics,
Inc. 2004 Stock Option Plan (9)+
|
10.2
|
Securities
Exchange Agreement by and among Used Kar Parts, Inc., the individuals
named on Schedule 1.1 thereto and Xenomics dated as of May 18,
2004.
(10)
|
10.3
|
Closing
Agreement entered into effective as of July 2, 2004 by and among
Used Kar
Parts, Inc., and Xenomics and L. David Tomei, Samuil Umansky,
Hovsep S.
Melkonyan, Kathryn P. Wilke and Anatoly V. Lichtenstein
(11)
|
10.4
|
Technology
Acquisition Agreement dated effective as of June 24, 2004 by
and among
Used Kar Parts, Inc., and Xenomics and L. David Tomei, Samuil
Umansky,
Hovsep S. Melkonyan, Kathryn P. Wilke and Anatoly V. Lichtenstein
(12)
|
10.5
|
Shareholder
Escrow Agreement effective as of the 24th day of June, 2004,
by and among
Used Kar Parts, Inc., Sommer & Schneider LLP, and the several former
shareholders of Xenomics. (13)
|
10.6
|
Purchaser
Escrow Agreement effective as of the 24th day of June, 2004,
by and among
Used Kar Parts, Inc., Sommer & Schneider LLP and the several former
shareholders of Xenomics (14)
|
10.7
|
Repurchase
Agreement dated as of June 24, 2004 by and between Used Kar Parts,
Inc.
and Panetta Partners Ltd. Xenomics, Inc. 2004 Stock Option Plan
(15)
|
10.8
|
Executive
Employment Agreement dated effective as of June 24, 2004 by and
among
Hovsep Melkonyan, Xenomics and Used Kar Parts, Inc.
(16)+
|
10.9
|
Consulting
Agreement effective as of June 24, 2004 by and among L. David
Tomei,
Xenomics and Used Kar Parts, Inc. (17)+
|
10.10
|
Voting
Agreement effective as of June 24, 2004 by and among L. David
Tomei, the
Xenomics Shareholders, the Original Shareholders and the Investors
(18)
|
10.11
|
Letter
Agreement dated September 3, 2004 between Xenomics, Inc. and
Dr. Randy
White (19)+
|
10.12
|
Letter
of Engagement between Trilogy Capital Partners, Inc. and Xenomics,
Inc.
dated January 10, 2005 (20)
|
10.13
|
Form
of Registration Rights Agreement, dated as of January 28, 2005
by and
among the Registrant and the purchasers set forth on the signature
page
thereto (21)
|
10.14
|
Employment
Agreement dated February 14, 2005 between the Company and Bernard
Denoyer
(22)+
|
10.15
|
Shareholders’
Agreement between the Company and the National Institute of Infectious
Diseases "Lazzaro Spallanzani" dated April 7, 2004 (23)
|
10.16
|
Executive Employment Agreement dated effective as of June 24, 2004 by and among Samuil Umansky, Xenomics and Used Kar Parts, Inc. (24)+ |
14
|
Code
of Business Conduct and Ethics (25)
|
16
|
Letter
from Baum & Company,PA Re: Change in Certifying Accountant
(26)
|
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
|
/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)
|
Date: October 27, 2005 | /s/ V. Randy White | |
|
||
Name:
V. Randy White, Ph.D.
Title:
Chief Executive Officer
|
Date: October 27, 2005 | /s/ Bernard Denoyer | |
|
||
Name:
Bernard Denoyer
Title:
Vice President - Controller
|