<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the Quarter Ended December 31, 1999
or
[ ] Transition report pursuant to Section 13 or 15(d) of Securities Exchange Act
of 1934
Commission file number 1-14430
-------
Maxim Pharmaceuticals, Inc.
(Exact name of registrant as specified in its charter)
DELAWARE 87-0279983
- ------------------------ ----------------------------------
(State of incorporation) (I.R.S. Employer Identification No.)
8899 UNIVERSITY CENTER LANE, SUITE 400, SAN DIEGO, CA 92122
-----------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(858) 453-4040
----------------------------------------------------
(Registrant's telephone number, including area code)
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
- --
As of January 21, 2000, the registrant had 12,578,853 shares of Common Stock,
$.001 par value, outstanding.
<PAGE>
MAXIM PHARMACEUTICALS, INC.
(A Development Stage Company)
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION PAGE
<S> <C>
Item 1. Financial Statements
Balance Sheets -
December 31, 1999 (unaudited) and September 30, 1999 ................1
Statements of Operations (unaudited) -
Three Months Ended December 31, 1999 and 1998
and from Inception (October 23, 1989) to
December 31, 1999....................................................2
Statements of Cash Flows (unaudited) Three Months Ended
December 31, 1999 and 1998 and from Inception (October 23,
1989) to December 31, 1999...........................................3
Notes to Financial Statements........................................4
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations........................6
Item 3. Quantitative and Qualitative Disclosures About
Market Risk..........................................................7
PART II - OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds............................8
Item 4. Submission of Matters to a Vote of Security Holders..................8
Item 6. Exhibits and Reports on Form 8-K.....................................8
SIGNATURE .....................................................................8
</TABLE>
<PAGE>
BALANCE SHEETS
MAXIM PHARMACEUTICALS, INC. (A DEVELOPMENT STAGE COMPANY)
<TABLE>
<CAPTION>
DECEMBER 31, 1999 September 30, 1999
------------------ ------------------
(UNAUDITED)
<S> <C> <C>
ASSET
CURRENT ASSETS:
Cash and cash equivalents $ 12,195,867 $ 6,543,977
Short-term investments in marketable securities 20,654,063 11,398,363
Accrued interest and other current assets 3,415,793 2,800,611
----------------- -----------------
Total current assets 36,265,723 20,742,951
Patents and licenses, net 2,025,062 2,002,349
Property and equipment, net 1,372,744 1,473,807
Deposits and other assets 229,156 296,234
----------------- -----------------
Total assets $ 39,892,685 $ 24,515,341
----------------- -----------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 11,391,401 $ 8,090,832
Accrued expenses 3,301,289 3,630,306
Accrued dividends 398,150 482,844
Note payable 53,334 79,129
Current portion of long-term debt 481,333 480,640
----------------- -----------------
Total current liabilities 15,625,507 12,763,751
Long-term debt, less current portion 787,782 908,380
STOCKHOLDERS' EQUITY:
Preferred stock, $.001 par value, 5,000,000 shares authorized:
Series A convertible preferred stock, $.001 par value; 0 and
206,874 shares issued and outstanding at December 31, 1999 and
September 30, 1999, respectively; liquidation value is
$0.00 at December 31, 1999 - 207
Series B convertible preferred stock, $.001 par value; 267,664
and 0 shares issued and outstanding at December 31, 1999
and September 30, 1999, respectively; liquidation value is
$23,889,012 at December 31, 1999 268 -
Common stock, $.001 par value, 35,000,000 shares authorized;
12,529,925 and 10,205,697 shares issued and outstanding at
December 31, 1999 and September 30, 1999, respectively 12,530 10,206
Additional paid-in capital 115,472,400 92,818,050
Deficit accumulated during the development stage (91,942,446) (81,912,974)
Deferred compensation (2,208) (2,943)
Accumulated other comprehensive loss (61,148) (69,336)
----------------- -----------------
Total stockholders' equity 23,479,396 10,843,210
----------------- -----------------
Total liabilities and stockholders' equity $ 39,892,685 $ 24,515,341
----------------- -----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
1
<PAGE>
STATEMENTS OF OPERATIONS (UNAUDITED)
MAXIM PHARMACEUTICALS, INC. (A DEVELOPMENT STAGE COMPANY)
<TABLE>
<CAPTION>
From Inception
(October 23, 1989)
Three Months Ended Through
December 31 December 31,
1999 1998 1999
-------------- ------------ --------------
<S> <C> <C> <C>
Research and collaboration revenue $ 140,000 $ 88,000 4,344,551
Operating expenses:
Research and development 9,050,866 8,779,013 81,189,652
Business development
and marketing 558,129 453,331 4,166,902
General and administrative 843,808 693,974 15,735,398
------------ ----------- -------------
Total operating expenses 10,452,803 9,926,318 101,091,952
Other income (expense):
Investment income 303,939 428,820 4,789,309
Interest expense (30,871) (38,707) (2,247,399)
Other income (expense) 10,263 -- (25,429)
Gain on sale of subsidiary -- -- 2,288,474
------------ ----------- -------------
Total other income (expense) 283,331 390,113 4,804,955
------------ ----------- -------------
Net loss before preferred stock dividends (10,029,472) (9,448,205) (91,942,446)
------------ ----------- -------------
Dividends on preferred stock 2,412,872 -- 2,895,716
------------ ----------- -------------
Net loss applicable to common stock $(12,442,344) $(9,448,205) (94,838,162)
------------ ----------- -------------
------------ ----------- -------------
Basic and diluted net loss per share of common stock $ (1.09) $ (0.95)
------------ -----------
Weighted average shares outstanding 11,401,461 9,902,900
------------ -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
2
<PAGE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
MAXIM PHARMACEUTICALS, INC. (A DEVELOPMENT STAGE COMPANY)
<TABLE>
<CAPTION>
From Inception
Three Months Ended (October 23, 1989)
December 31 Through
-------------------------------- December 31,
1999 1998 1999
--------------- --------------- -----------------
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net loss $ (10,029,472) $ (9,448,205) $(91,942,446)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 171,017 158,437 2,301,378
Amortization of premium on investments 22,962 72,272 558,247
Common stock and stock options issued as compensation 204,109 5,880 823,234
Stock contributions to 401(k) plan 21,585 13,811 120,677
Net book value of disposed assets 3,565 2,551 213,851
Loss on write-off of patents -- -- 406,580
Gain on sale of subsidiary -- -- (2,288,474)
Other -- -- (283,658)
Loss on write-off of purchased research
and development -- -- 2,646,166
Cumulative effect of reorganization -- -- 1,152,667
Changes in operating assets and liabilities:
Accrued interest and other current assets (615,182) 67,366 (2,828,306)
Deposits and other assets 67,078 -- (771,959)
Accounts payable 3,300,569 664,352 11,391,400
Accrued expenses (329,017) (143,803) 3,322,499
------------- ------------ ------------
Net cash used in operating activities (7,182,786) (8,607,339) (75,178,144)
INVESTING ACTIVITIES:
Purchases of marketable securities (10,293,474) (4,742,985) (92,532,508)
Sales and maturities of marketable securities 1,023,000 9,650,000 71,259,050
Additions to patents and licenses (76,332) (384,269) (3,301,294)
Purchases of property and equipment (19,900) (140,164) (2,983,741)
Cash acquired in acquisition of business -- -- 985,356
Proceeds from sale of diagnostic division -- -- 496,555
------------- ------------ ------------
Net cash provided (used) by investing activities (9,366,706) 4,382,582 (26,076,582)
FINANCING ACTIVITIES:
Net proceeds from issuance of common stock
and warrants 48,625 63,990 66,253,346
Net proceeds from issuance of preferred stock 22,597,396 -- 41,343,897
Payment of preferred stock dividends (298,939) -- (298,939)
Proceeds from issuance of notes payable and
long-term debt -- 444,434 6,432,078
Payments on notes payable and long-term debt (145,700) (80,095) (3,932,073)
Proceeds from issuance of notes payable to
related parties -- -- 4,982,169
Payments on notes payable to related parties -- -- (1,329,885)
------------- ------------ ------------
Net cash provided by financing activities 22,201,382 428,329 113,450,593
------------- ------------ ------------
Net increase (decrease) in cash and cash equivalents 5,651,890 (3,796,428) 12,195,867
Cash and cash equivalents at beginning of period 6,543,977 11,217,429 --
------------- ------------ ------------
Cash and cash equivalents at end of period $ 12,195,867 $ 7,421,001 $ 12,195,867
------------- ------------ ------------
------------- ------------ ------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
MAXIM PHARMACEUTICALS, INC. (A DEVELOPMENT STAGE COMPANY)
1. PRINCIPLES OF INTERIM PERIOD REPORTING
Maxim Pharmaceuticals, Inc. (the "Company") has not earned significant
revenues from planned principal operations. Accordingly, the Company's
activities have been accounted for as those of a "Development Stage
Enterprise" as set forth in Financial Accounting Standards Board Statement
No. 7 ("SFAS 7").
In the opinion of the Company, the unaudited financial statements contain all
of the adjustments, consisting only of normal recurring adjustments and
accruals, necessary to present fairly the financial position of the Company
as of December 31, 1999 and September 30, 1999, and the results of operations
for the three months ended December 31, 1999 and 1998 and from inception
(October 23, 1989) through December 31, 1999. The results of operations for
the three months ended December 31, 1999 are not necessarily indicative of
the results to be expected in subsequent periods or for the year as a whole.
For further information, refer to the financial statements and footnotes
thereto in our Annual Report on Form 10-K for the year ended September 30,
1999.
2. NET LOSS PER SHARE OF COMMON STOCK
Basic net loss per share of common stock is computed by dividing the net loss
after deduction for dividends on preferred stock by the weighted average
number of shares of common stock outstanding during the period. Diluted loss
per share also includes common equivalent shares outstanding. Common
equivalent shares from convertible preferred stock, stock options and
warrants totaling 8,067,570 and 4,070,983 for the quarters ended December 31,
1999 and 1998, respectively, are excluded from the calculation of diluted
loss per share because their effect is antidilutive.
3. STOCKHOLDERS' EQUITY
PRIVATE PLACEMENT - On November 10, 1999 the Company sold 267,664 shares of
Series B Convertible Preferred Stock ("Series B Preferred") in a private
transaction at a price of $89.25 per share. The Company received net proceeds
of approximately $22.5 million after placement fees and other issuance costs.
Each share of Series B Preferred is convertible into 10 shares of the
Company's common stock at a fixed price of $8.925 per share of common stock,
and 2,676,640 shares of common stock are issuable upon conversion of all of
the Series B Preferred.
The Series B Preferred has an annual dividend of 12% payable in cash or in
additional shares of Series B Preferrred at the option of the holder. The
Company may call for an automatic conversion of the Series B Preferred into
common stock after 90 days. The Series B Preferred were issued in a private
transaction and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements. The
Company was obligated under the terms of this transaction to file a
registration statement within 30 days of the sale of the preferred stock to
allow resale of the common stock issuable upon conversion of such shares and
such registration statement became effective January 7, 2000. At December 31,
1999 accrued dividends related to the Series B Preferred totaled $398,150.
The Company intends to effect the automatic conversion of the Series B
Preferred at the earlier of February 8, 2000 or the listing of the shares of
common stock on the American Stock Exchange.
AUTOMATIC CONVERSION OF SERIES A PREFERRED - In July 1999 the Company sold
206,874 shares of Series A Convertible Preferred Stock ("Series A Preferred")
in a private transaction at a price of $97.25 per share. Each share
4
<PAGE>
of Series A Preferred was convertible into 10 shares of the Company's common
stock at a fixed price of $9.725 per share of common stock and had an annual
dividend of 12%. The Company had the right to call for an automatic
conversion of the Series A Preferred into common stock after 90 days. On
November 15, 1999 the Company effected the automatic conversion of the Series
A Preferred. The conversion of the Series A Preferred resulted in the
issuance of 2,294,820 shares of common stock, 226,080 of which related to the
settlement of dividend and conversion obligations. The Company recorded
$2,497,567 in dividends over the life of the Series A Preferred, of which
$2,014,722 was recorded during the three months ended December 31, 1999. Of
the total Series A Preferred dividends, $298,579 were paid in cash, and the
remainder were paid through the aforementioned issuance of common stock.
SHARES ISSUED UPON EXERCISE OF COMMON STOCK OPTIONS AND WARRANTS - During the
three months ended December 31, 1999 the Company issued 5,000 shares of
common stock upon the exercise of warrants and no shares of common stock upon
the exercise of options.
4. SUBSEQUENT EVENT - COMMON STOCK OFFERING
On January 24, 2000 the Company filed a registration statement with the
Securities and Exchange Commission for an offering of 2.5 million shares of
common stock. All of the shares are being offered by the Company for its own
account. The Company will also grant to the underwriters an option to
purchase an additional 375,000 shares of common stock to cover
over-allotments.
5
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MAXIM PHARMACEUTICALS, INC. (A DEVELOPMENT STAGE COMPANY)
THIS MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS CONTAINS CERTAIN FORWARD-LOOKING STATEMENTS THAT INVOLVE RISKS AND
UNCERTAINTIES. SUCH FORWARD-LOOKING STATEMENTS INCLUDE STATEMENTS REGARDING CASH
REQUIREMENTS. SUCH STATEMENTS ARE ONLY PREDICTIONS, AND THE COMPANY'S ACTUAL
RESULTS COULD DIFFER MATERIALLY FROM THOSE ANTICIPATED OR PROJECTED IN SUCH
FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO
DIFFERENCES INCLUDE RISKS ASSOCIATED WITH CLINICAL TRIALS AND PRODUCT
DEVELOPMENT, REGULATORY APPROVAL AND GOVERNMENT REGULATION OF THE COMPANY'S
PRODUCTS, THE NEED FOR ADDITIONAL FUNDS AND THE UNCERTAINTY OF ADDITIONAL
FUNDING AND DEPENDENCE ON COLLABORATIVE PARTNERS. THESE FACTORS AND OTHERS ARE
MORE FULLY DESCRIBED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR THE FISCAL
YEAR ENDED SEPTEMBER 30, 1999.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
RESEARCH AND COLLABORATION REVENUE - Research and collaboration revenue for the
quarter ended December 31, 1999 was $140,000, compared to $88,000 for the same
period in the prior year. The revenue consists of collaborative support related
to our clinical trials, and the increase relates to the expansion of such
trials.
RESEARCH AND DEVELOPMENT EXPENSES - Research and development expenses for the
quarter ended December 31, 1999 were $9,051,000, an increase of $272,000, or 3%,
over the same period in the prior year. The expenses were primarily attributable
to increased activity related to three Phase III cancer clinical trials of
MAXAMINE initiated in prior years and continuing into the current year. In
addition to these and other cancer trials, the current quarter includes efforts
associated with a Phase II clinical trial in hepatitis C commenced in mid 1999.
Costs associated with these trials include clinical trial site and contract
research organization costs, hiring additional clinical and development
personnel and other clinical costs.
BUSINESS DEVELOPMENT AND MARKETING AND GENERAL AND ADMINISTRATIVE EXPENSES -
Business development and marketing expenses for the quarter ended December 31,
1999 were $558,000, an increase of $105,000, or 23%, over the same period in
the prior year. This increase was due to additional personnel and other
resources devoted to preparation for the potential market launch of MAXAMINE,
including market evaluations, sales launch planning and corporate partnering
efforts. For the quarter ended December 31, 1999, general and administrative
expenses were $844,000, an increase of $150,000, or 22%, over the same period in
the prior year due to general expenses associated with the Company's expanded
operations.
OTHER INCOME (EXPENSE) - Investment income was $304,000 for the quarter ended
December 31, 1999, a decrease of $125,000, or 29%, from the same period in the
prior year. This decrease was a result of the reduction in the average principal
balance of interest-bearing investments. Interest expense for the quarter ended
December 31, 1999 was $31,000, a decrease of $8,000, or 20%, from the same
period in the prior year. This decrease was a result of the reduction in the
principal balance of bank loan agreements outstanding.
NET LOSS - Net loss before preferred stock dividends for the quarter ended
December 31, 1999 totaled $10,029,000, an increase of $581,000, or 6%, over the
same period in the prior year. The increase was due to the expansion of our
research and development and general corporate activities described above. Net
loss attributable to common stock for the quarter ended December 31, 1999
totaled $12,442,000, an increase of $2,994,000, or 32%, over the same period in
the prior year. The increase was primarily the result of $2,413,000 in dividends
associated with our series A and series B preferred stock. Of the total
dividends, $2,015,000 was associated with the series A preferred stock that was
converted to common stock during the quarter and was no longer outstanding at
December 31, 1999.
During the quarter ended December 31, 1999, the Company exercised its right
to call for an automatic conversion of the series A preferred stock into
common stock. As required in the event of an automatic conversion, the
Company was required to pay the holders upon conversion, in cash or
additional shares of series A preferred stock at the option of the holder, an
amount equal to the dividends that would have been paid had the series A
preferred stock remained outstanding for
6
<PAGE>
one year after issuance. The Company recorded $2,015,000 in dividends
associated with the series A preferred stock during the three months ended
December 31, 1999, of which $1,894,000 related to the settlement of dividend
obligations resulting from the automatic conversion to common stock. Of the
total series A preferred stock dividends recorded during the quarter, $63,000
were paid in cash, and the remainder were paid through the issuance of
securities.
LIQUIDITY AND CAPITAL RESOURCES
We, as a development stage enterprise, anticipate incurring substantial
additional losses over at least the next several years due to, among other
factors, the need to expend substantial amounts on our ongoing and planned
clinical trials, preparation for the planned market launch of MAXAMINE, other
research and development activities, and related business development and
general corporate expenses. We have financed our operations primarily through
the sale of our equity securities, including an initial public offering in
1996, an international follow-on public offering in 1997, and private
offerings of preferred stock in 1999 that provided us with net proceeds of
approximately $22.3 million (including proceeds from the exercise of
warrants), $34.7 million and $40.8 million, respectively.
As of December 31, 1999, we had cash, cash equivalents and investments totaling
approximately $32.8 million. For the three months ended December 31, 1999, net
cash used in our operating activities was approximately $7.2 million. Our cash
requirements may fluctuate in future periods as we conduct additional research
and development activities including clinical trials, other research and
development activities, and efforts associated with the commercial launch of any
products that are approved for sale by government regulatory bodies. Among the
activities that may result in an increase in cash requirements are three Phase
III cancer clinical trials and four Phase II clinical trials of MAXAMINE
currently underway, and preparation for the planned market launch of MAXAMINE.
Our cash requirements may vary materially from those now planned because of the
results and scope of clinical trials and other research and development
activities, the time required to obtain regulatory approvals, the cost of
filing, prosecuting, defending and enforcing patent claims and other
intellectual property rights, our ability to establish marketing alliances and
collaborative arrangements and the cost of our internal marketing activities. As
a result of these factors, it is difficult to predict accurately the timing and
amount of our cash requirements. We plan to pursue the issuance of additional
equity securities, and to pursue corporate marketing alliances and collaborative
agreements, as required to meet our cash requirements.
The issuance of additional equity securities could result in substantial
dilution to our stockholders. There can be no assurance that additional funding
will be available on terms acceptable us, if at all. The failure to fund our
capital requirements would have a material adverse effect on our business,
financial condition and results of operations. We have never paid a cash
dividend on our common stock and do not contemplate the payment of cash
dividends on our common stock in the foreseeable future.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Our exposure to market risk is principally confined to our cash equivalents and
investments that have maturities of less than two years. We maintain a
non-trading investment portfolio of investment grade, liquid debt securities
that limits the amount of credit exposure to any one issue, issuer or type of
instrument. The securities in our investment portfolio are not leveraged, are
classified as available-for-sale and are therefore subject to interest rate
risk. We currently do not hedge interest rate exposure. If market interest rates
were to increase by 100 basis points, or 1%, from December 31, 1999 levels, a
model calculation suggests that the market value of our portfolio would decline
by an immaterial amount. The modeling technique used measures the change in
market values arising from an immediate hypothetical shift in market interest
rates. There have been no significant changes in the types or maturities of
investments held from September 30, 1999.
7
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PART II-OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
(c) During the quarter ended December 31, 1999, the Company issued 267,664
shares of Series B Convertible Preferred Stock, convertible into 2,676,640
shares of common stock. The Company received net proceeds of approximately $22.5
million after paying placement fees and expenses of approximately $1,400,000.
The Company issued such shares to qualified accredited investors in reliance
upon the exemption provided by Rule 506 of Regulation D.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a Special Meeting of the Holders of Series A Convertible Preferred Stock held
on October 28, 1999, the following matter was voted on and approved: To approve
the terms and issuance of up to $30,000,000 of shares of the Company's Series B
Preferred Stock. 143,916 shares of Series A Convertible Preferred Stock, or
97.22% of the shares voting, voted in favor of the foregoing matter. No shares
of Series A Convertible Preferred Stock voted against the foregoing matter, and
4,113, or 2.98% of the shares voting, abstained.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) EXHIBITS
<TABLE>
<CAPTION>
Exhibit Number Description of Exhibit
- -------------- -----------------------
<S> <C>
27.1 Financial Data Schedule
</TABLE>
b) REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the quarter ended December 31, 1999.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Maxim Pharmaceuticals, Inc.
Date: January 24, 1999 /s/ Dale A. Sander
-----------------------------------
Dale A. Sander
Chief Financial Officer
(Principal Accounting Officer and Officer
duly authorized to sign this report on
behalf of the registrant)
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED DECEMBER 31, 1999 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-2000
<PERIOD-START> OCT-01-1999
<PERIOD-END> DEC-31-1999
<CASH> 12,195,867
<SECURITIES> 20,654,063
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 36,265,723
<PP&E> 2,277,724
<DEPRECIATION> 904,980
<TOTAL-ASSETS> 39,892,685
<CURRENT-LIABILITIES> 15,625,507
<BONDS> 787,782
0
268
<COMMON> 12,530
<OTHER-SE> 23,466,598
<TOTAL-LIABILITY-AND-EQUITY> 39,892,685
<SALES> 0
<TOTAL-REVENUES> 140,000
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 9,050,866
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 30,871
<INCOME-PRETAX> (12,442,344)
<INCOME-TAX> 0
<INCOME-CONTINUING> (12,442,344)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (12,442,344)
<EPS-BASIC> (1.09)
<EPS-DILUTED> (1.09)
</TABLE>
