SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended February 28, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from ______ to ______
Commission file number 0-9065
Golden Pharmaceuticals, Inc.
(Exact name of small business issuer
as specified in its charter)
Colorado 84-0645174
(State or other (IRS Employer Identification No.)
jurisdiction of
incorporation or organization)
710 17th Street, Golden, Colorado 80401
(Address of principal executive offices)
(303-279-9375)
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during
the past 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
The number of shares outstanding of the issuers Common
Stock, no par value as of April 21, 1997 was 122,813,347
shares.
Transitional Small Business Disclosure Format (check one):
Yes No X
<PAGE>
Part I
Item 1. FINANCIAL STATEMENTS
GOLDEN PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
February 28, August 31,
1997 1996
CURRENT ASSETS:
Cash and Cash Equivalents $ 30,625 $ 34,872
Receivables
Trade, net of allowance for doubtful
accounts of $55,029 and $63,700 at
February 28, 1997 and August 31, 1996
3,002,589 1,443,684
Inventories 1,614,985 1,336,633
Prepaid expenses 269,694 168,582
Deferred Taxes 380,000 380,000
Note Receivable 362,663 165,000
TOTAL CURRENT ASSETS 5,660,556 3,528,771
PROPERTY, PLANT AND EQUIPMENT- AT COST
4,718,781 4,339,707
Less accumulated depreciation
and amortization 2,015,892 4,782,400
OTHER ASSETS
Goodwill, less accumulated amortization
of $99,258 and $16,543 at February 28,
1997 and August 31, 1996, respectively
3,879,481 3,948,256
Intangibles-net of amoritization in 1996
36,835 11,667
Non-compete Agreement 378,338 425,600
Deferred income taxes 220,000 220,000
TOTAL OTHER ASSETS 4,514,654 4,605,523
$12,878,099 $10,691,601
4ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
GOLDEN PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
LIABILITIES AND
STOCKHOLDERS' EQUITY
February 28, August 31,
1997 1996
CURRENT LIABILITIES:
Note payable $ 1,835,757 $532,141
Current maturities of long-term debt
727,412 785,835
Current maturities of capitalized lease
obligations 95,246 95,246
Accounts payable 1,877,651 921,045
Accrued liabilities
Salaries, wages and other compensation
16,508 42,450
Interest 341,737 144,148
Other 146,242 95,798
TOTAL CURRENT LIABILITIES 5,040,553 2,616,663
LONG-TERM OBLIGATIONS, less current
maturities 3,423,842 3,674,335
CAPITALIZED LEASE OBLIGATIONS, less
current maturities 584,178 299,674
EXCESS LOSS IN INVESTMENT IN JOINT VENTURE
5,855 10,776
MINORITY INTEREST 919,511 852,372
STOCKHOLDERS' EQUITY
Common stock - no par value; 200,000,000
shares authorized; and 94,259,945 and
93,967,583 issued and outstanding, at
February 28, 1997, and August 31, 1996,
respectively 23,927,384 23,867,384
Preferred stock- no par value; 10,000,000
shares authorized Class A 15%/30% cumulative
convertible 29,653 shares, issued and
outstanding at February 28, 1997, and
August 31, 1996 292,558 292,558
24,219,942 24,159,942
Accumulated deficit (21,221,650) (20,828,049)
2,998,292 3,331,893
Less Common Stock in treasury at cost,
3,289,000 shares at August 31, 1996 94,132 94,132
TOTAL STOCKHOLDERS' EQUITY 2,904,160 3,237,761
$ 12,878,099 $ 10,691,601
ITEM 1. FINANCIAL STATEMENTS (CONTINUED)
GOLDEN PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended
February 28,
1997 1996
REVENUES:
Net sales $7,658,722 $4,741,014
Cost of Sales 5,111,893 3,179,902
GROSS MARGIN: 2,546,829 1,561,112
Selling, general and administrative 2,561,906 1,286,944
OPERATING INCOME (15,077) 274,168
OTHER INCOME/(EXPENSE)
Interest Expense (552,290) (385,746)
Joint Venture Income (37,079) -
Gain on Disposal of Assets 2,363 -
Other Income 276,421 7,592
TOTAL OTHER INCOME/(EXPENSE) (310,585) (378,154)
INCOME (LOSS) BEFORE INCOME TAXES AND
EXTRAORDINARY ITEM (325,662) (103,986)
INCOME TAX (BENEFIT) EXPENSE 800 21,400
INCOME (LOSS) BEFORE MINORITY INTEREST
(326,462) (125,386)
MINORITY INTEREST (67,139) -
NET INCOME (LOSS) $ (393,601) $(125,386)
PRIMARY EARNINGS PER SHARE
Before minority interest * *
Minority interest * *
PRIMARY EARNINGS PER SHARE * *
Continued on following page.ITEM 1. FINANCIAL STATEMENTS
(CONTINUED)
GOLDEN PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Six Months Ended
February 28,
1997 1996
FULLY DILUTED EARNINGS PER SHARE
Before extraordinary item $ * $ *
Extraordinary item * *
FULLY DILUTED EARNINGS PER SHARE $ * $ *
WEIGHTED AVERAGE SHARES OUTSTANDING 121,086,155 89,548,240
* Less than $.01 per shareITEM 1. FINANCIAL
STATEMENTS (CONTINUED)
GOLDEN PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
February 28,
1997 1996
REVENUES:
Net sales $ 4,104,803 $2,476,241
Cost of Sales 2,715,651 1,740,022
GROSS MARGIN: 1,389,152 736,219
Selling, general and administrative 1,329,783 575,943
OPERATING INCOME 59,369 160,276
OTHER INCOME/(EXPENSE)
Interest Expense (288,093) (205,555)
Joint Venture Income 58,395 -
Gain on Disposal of Assets - -
Other Income (20,233) 5,444
TOTAL OTHER INCOME/(EXPENSE) (249,931) (200,111)
INCOME BEFORE INCOME TAXES AND
MINORITY INTEREST (190,562) (39,835)
INCOME TAX (BENEFIT) EXPENSE (800) -
INCOME BEFORE MINORITY INTEREST (189,762) (39,835)
MINORITY INTEREST (34,607) -
NET INCOME $ (224,369)$ (39,835)
PRIMARY EARNINGS PER SHARE
Before extraordinary item * *
Extraordinary item * *
PRIMARY EARNINGS PER SHARE * *
Continued on following page.ITEM 1. FINANCIAL STATEMENTS
(CONTINUED)
GOLDEN PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
February 28,
1997 1996
FULLY DILUTED EARNINGS PER SHARE
Before extraordinary item $ * $ *
Extraordinary item * *
FULLY DILUTED EARNINGS PER SHARE $ * $ *
WEIGHTED AVERAGE SHARES OUTSTANDING 121,400,992 89,589,999
* Less than $.01 per shareITEM 1.
FINANCIAL STATEMENTS (CONTINUED)
GOLDEN PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
February 28,
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net income(loss) $(393,601) $(125,386)
Adjustments to reconcile net income to
net cash provided (used) by operations
Depreciation and amortization 384,361 325,784
Minority interest in earnings 67,139 -
Gain on sale of assets
(Increase) decrease in -
Accounts receivable (1,558,905) 29,933
Inventory (278,352) (315,526)
Note receivable (197,663) -
Prepaid expenses and other (101,112) (68,406)
Increase (decrease) in -
Accounts payable 956,603 (183,015)
Accrued interest and other 222,091 47,821
TOTAL ADJUSTMENTS (505,838) (163,409)
NET CASH PROVIDED BY OPERATING
ACTIVITIES (899,439) (288,795)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (379,074) (372,510)
Purchase of treasury stock - (90,562)
Excess loss in investment (42,000) -
Addition to goodwill (60,000) (79,656)
Proceeds from sale of equipment 37,079 -
NET CASH (USED) BY INVESTING ACTIVITIES (443,995) (542,728)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments of note payable (335,804) (119,152)
Issuance of line of credit 8,902,151 754,524
Payments on line of credit (7,673,535) -
Long term borrowings 311,375 42,500
Related party borrowing 75,000 -
Issuance of common stock 60,000 105,000
NET CASH (USED) BY FINANCING ACTIVITIES 1,339,187 782,872
Continued on following page.ITEM 1. FINANCIAL STATEMENTS
(CONTINUED)
GOLDEN PHARMACEUTICALS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six Months Ended
February 28,
1997 1996
NET INCREASE (DECREASE) IN CASH (4,247) (48,651)
CASH, Beginning of period 34,872 49,557
CASH, End of period $ 30,625 $ 906
SUPPLEMENTAL DISCLOSURE OF CASH FLOW ACTIVITIES:
Interest paid $354,701 $273,926
Income taxes paid $ 800 $ 21,400
NON-CASH TRANSACTIONS
Issuance of Stock for relief of obligation
$ 60,000 $ -
GOLDEN PHARMACEUTICALS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. SUMMARY OF ACCOUNTING POLICIES
The accompanying unaudited financial statements of
Golden Pharmaceuticals, Inc. and its consolidated
subsidiaries (collectively, the "Company") have been
prepared in accordance with generally accepted accounting
principles for interim financial information and pursuant to
the rules and regulations of the Securities and Exchange
Commission. Accordingly, they do not include all of the
information and notes required by generally accepted
accounting principles for annual financial statements.
The accompanying unaudited condensed financial
statements and disclosures reflect all adjustments which, in
the opinion of the management, are necessary for a fair
presentation of the results of operations, financial
position, and cash flow of the Company. The results of
operations for the periods indicated are not necessarily
indicative of the results for the full year.
The financial statements should be read in
conjunction with the audited financial statements and the
notes thereto included in the Company's Annual Report on
Form 10-KSB for the year ended August 31, 1996 as filed with
the Securities and Exchange Commission.
Net Income Per Common Share - Net income per common share
was determined by dividing net income, as adjusted below, by
applicable weighted average shares
outstanding.
Six Months
Ended
February
28,
1997
1996
Income before minority interest $ (326,462)
$125,386
Minority interest (67,139)
-
NET INCOME $ (393,601)
$ 125,386
Weighted average number of
shares outstanding 121,086,155
89,548,240
Common stock equivalents and stock held in escrow have been
included in the computation for the six months ended
February 28, 1997 and 1996. The common stock equivalents
that have been included in the computation for earnings per
share are common stock and treasury stock. Stock options,
Class A Convertible Preferred Stock, 15%/30% Cumulative
Convertible Preferred Stock, and accrued dividends on the
15%/30% Cumulative Convertible Preferred Stock are
considered antidilutive and accordingly, are not included in
the computation of earnings per share.
Reclassification - Certain reclassifications have been made
to conform prior years' information with the current year
presentation.
Note 2. RECENT ACQUISITIONS
On August 7, 1995, the Company purchased all of the
issued and outstanding capital stock of Quality Care
Pharmaceuticals, Inc., a California corporation ("QCP") for
$3,718,750. To facilitate the financing of the acquisition
of QCP, the Company obtained from a national bank (the
"Bank") a $4,000,000 term loan (the "Term Loan"), a
$2,500,000 revolving line of credit (the "Revolving
Facility") and a $400,000 term loan. See "MANAGEMENT'S
DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS - Liquidity
and Capital Resources."
On February 12, 1996 QCP and the Visiting Nurses
Association of Orange County ("VNA") established Rx Direct,
LLC ("RxD"), a mail order pharmacy.
On June 5, 1996, the Company and PharmaFrance, Inc.
formed PharmaLabs, LLC ("PharmaLabs"). The Company
contributed a total of $1,000,000 for 52% of the equity in
PharmaLabs. PharmaLabs is engaged in the manufacturing,
packaging, and distribution of nutritional supplements.
Note 3. SUBSEQUENT EVENTS
On April 7, 1997, the Company completed the sale of the
assets related to its business of manufacturing and
distributing Iodine-123 capsules for a total purchase price
of $6,700,000 pursuant to the terms of an Asset Purchase
Agreement (the "Agreement") dated April 7, 1997 by and
between the Registrant and Syncor Pharmaceuticals, Inc.
Included in the sale was the New Drug Application for
the Iodine-123 capsules, the building that contains the
manufacturing facility for the Iodine-123 capsules and all
of the equipment related to the Iodine-123 business.
The proceeds from the sale will be used to pay down the
Registrant's existing bank debt and to allow the Company to
expand its operations and presence in other sectors of the
health care market.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION
The following discussion should be read in conjunction
with the selected financial data and the financial
statements and notes thereto filed herewith.
The statements contained in this report, if not
historical, are forward looking statements within the
meaning of the Private Securities Litigation Reform Act of
1995, and involve risks and uncertainties that could cause
actual results to differ materially from the financial
results described in such forward looking statements. These
risks and uncertainties include, among others, the level and
rate of growth in the Company's operations, the capital
requirements of QCP and PharmaLabs and the ability of the
Company to achieve earnings per share growth through
internal investment, strategic alliances, joint ventures and
other methods. The success of the Company's business
operations is in turn dependent on factors such as the
effectiveness of the Company's marketing strategies to grow
its customer base, the appeal of the Company's mix of
products, the Company's success at entering into and
collaborating with others to conduct effective strategic
alliances and joint ventures, general competitive conditions
within the health care market and general economic
conditions. Further, any forward looking statements or
statements speak only as of the date on which such statement
was made, and the Company undertakes no obligation to update
any forward looking statement or statements to reflect
events or circumstances after the date on which such
statement is made or to reflect the occurrence of
unanticipated events. Therefore, forward-looking statements
should not be relied upon as a prediction of actual future
results.
Results of Operations
Six Months Ended February 28, 1997 Compared to Six Months
Ended February 29, 1996
Net Sales. Net sales for the six months ended February
28, 1997 increased to $7,658,722 compared to $4,741,014 for
the six months ended February 29, 1996. The increase of
$2,917,708 or 62% is primarily attributable to (i) the
consolidation of the operations of PharmaLabs with the
Company's for the current period, which represents
approximately $1.4 million of the increase, and (ii) an
increase in QCP sales of $1.4 million.
Cost of Goods Sold. Cost of goods sold as a percentage
of sales was 67% for both the six months ended February 28,
1997 and for the six months ended February 29, 1996.
Selling General and Administrative. Selling, general
and administration expenses ("SG&A") were $2,561,906 for the
six months ended February 28, 1997 as compared to $1,286,944
for the six months ended February 29, 1996. The increase of
$1,274,962 or 99% is due to (i) the consolidation of
PharmaLabs' operations for the six months ended February 28,
1997 which represented $491,000 of the increase; (ii) QCP's
sales commissions and salaries; and new telemarketing and
customer service department expenses
which represented $320,000 of the increase; and (iii)
expenses for travel and consulting fees in connection with
the Company's efforts to enhance the operations and
management of QCP.
Net Income. The Company reported a net loss of
$393,601 for the six months ended February 28, 1997 as
compared to a net loss of $125,386 for the six months ended
February 29, 1996. The increased net loss was primarily due
to (i) increase in SG&A expenses of $1,274,962, (ii)
increase in interest expense of $167,000, (iii) depreciation
and amortization of approximately
$60,000, and (iv) a loss of $42,000 in connection with its
interest in RxD.
Three Months Ended February 28, 1997 Compared to Three
Months Ended February 29, 1996
Net Sales. Net sales for the three months ended
February 28, 1997 increased to $4,104,803 compared to
$2,476,241 for the three months ended February 29, 1996.
The increase of $1,628,562 or 66% is primarily attributable
to (i) the consolidation of the operations of PharmaLabs
with the Company's for the current period, which represents
approximately $721,000 of the increase, and (ii) an increase
in QCP sales of $894,000.
Cost of Goods Sold. Cost of goods sold as a percentage
of sales was 66% for the three months ended February 28,
1997 as compared to 70% for the three months ended February
29, 1996. The decrease is primarily the result of the
consolidation of PharmaLabs' operations with the Company's.
Selling General and Administrative. Selling, general
and administration expenses ("SG&A") were $1,329,783 for the
three months ended February 28, 1997 as compared to $575,943
for the three months ended February 29, 1996. The increase
of $753,840 or 131% is due to (i) the consolidation of
PharmaLabs' operations for the three months ended February
28, 1997 which represented $210,000 of the increase;
(ii)sales commissions and salaries; and new telemarketing
and customer service department expenses which represented
$506,000 of the increase; and (iii) expenses for travel and
consulting fees in connection with the Company's efforts to
enhance the operations and management of QCP.
Net Income. The Company reported a net loss of
$224,369 for the three months ended February 28, 1997 as
compared to a net loss of $39,835 for the three months ended
February 29, 1996. The increased net loss was primarily due
to (i) increase in SG&A expenses of $753,840, (ii) increase
in interest expense of $83,000, (iii) depreciation and
amortization of approximately $90,000, and (iv) a loss of
$21,000 in connection with its interest in RxD.
LIQUIDITY AND CAPITAL RESOURCES
The Company, on a consolidated basis, experienced
negative cash flow from operations for the three months
ended February 28, 1997. Management anticipates that QCP
will operate on a "break-even" basis for fiscal year 1997
but that PharmaLabs will continue to experience negative
cash flow from operations.
As a result of the continuing capital requirements of
QCP and PharmaLabs, management projects that the Company may
continue to experience negative cash flow for fiscal year
1997.
During the three months ended February 28, 1997, the
Company relied primarily on the Revolving Facility to fund
its operations. The funds were primarily used to develop
marketing and sales materials and to purchase hardware and
software to expand QCP's operations and to fund the start up
of PharmaLabs' operations. The Company expects that its
future cash needs for fiscal year 1997 will primarily relate
to the continued expansion of QCP's operations and the
development of PharmaLabs operations internationally and to
establish PharmaLabs domestically as a repackager of unit
doses. If the Company cannot obtain additional sources of
financing it may be forced to curtail the activities of QCP
and PharmaLabs.
The following table is presented to facilitate the
discussion of the Company's current liquidity and sets forth
the Company's liquidity position as of February 28, 1997 as
compared to August 31, 1996.
,February 28, 1997,August 31, 1996
Current Assets,$5,660,556*, $3,528,771*
Current Liabilities, 5,040,553, 2,616,663
Net Working Capital,$ 620,003 , $ 912,108
,,
* Includes $380,000 of deferred taxes per FASB 109 resulting
from the Company's substantial net operating loss
carryforwards.
Current assets were $5,660,556, an increase of
$2,131,785 or 60% at February 28, 1997 as compared to
$3,528,771 at August 31, 1996. The increase was primarily
due to (i) the growth of accounts receivable and inventory
at PharmaLabs which represented $1,033,000 of the increase,
(ii) an increase in QCP's accounts receivable of $744,000
which was a result of an expansion of QCP's sales.
Current liabilities were $5,040,553, an increase
of $2,423,890 or 93% for the period ended February 28, 1997
compared to current liabilities of $2,616,663 for the period
ended August 31, 1996. The increase in current liabilities
was primarily the result of the expansion of PharmaLabs
production and the corresponding accounts payable at
February 28, 1997 which represented $500,000 of the
increase. In addition accrued interest increased
approximately $200,000. The Company had working capital of
$620,000 and a current ratio of 1.12:1 for the period ended
February 28, 1997.
To facilitate the financing of the acquisition of
QCP, to refinance existing debt of the Company and QCP and
to provide working capital for the Company and QCP, the
Company obtained the Term Loan and the Revolving Facility.
Interest on the Term Loan is payable at the Bank prime plus
3% (which totaled 11.5% at February 28, 1997). The Term
Loan is payable in sixteen quarterly installments of
$125,000 to be made August 1, 1996 through August 1, 2000
with a lump sum payment of $2,000,000 due in August 2000.
The Revolving Facility is payable at the Bank prime plus 2%
and expires in August, 2000. At February 28, 1997 the
balance on the Revolving Facility was $1,760,757 and the
interest rate was 11.5%. The Company has an additional term
loan of $400,000 with an interest rate at the Bank prime
plus 3% (which totaled 11.5% at February 28, 1997) and which
is payable in monthly installments of $6,667 through August
1, 2000. In November 1996, the Company and the Bank entered
into a Fourth Amendment to the Credit and Security
Agreement, which amendment revised certain covenants and
waived prior defaults. (See SUBSEQUENT EVENTS below.)
The Company's long term debt, including the current
portion thereof, at February 28, 1997 consisted of notes
payable to the Bank totaling $4,057,147 incurred primarily
as a result of the acquisition of QCP. (See SUBSEQUENT
EVENTS below.)
The Company has capitalized leases and operating
leases for equipment, facilities and vehicles used in its
business. Minimum lease payments for its capitalized and
operating leases are expected to be $12,412 and $1,888,
respectively, for the fiscal year ending August 31, 1997.
As of February 28, 1997, the Company had net
operating loss carryforwards for fiscal income tax purposes
of approximately $15,500,000. The net operating loss
carryforwards will expire in the years 1997 through 2006.
The Company's ability to utilize its net operating loss
carryforwards is subject to an annual limitation in future
periods pursuant to the "change in ownership" rules under
Section 382 of the Internal Revenue Code of 1986.
The Company's long-term capital expenditure
requirements will depend upon numerous factors, including
the demand for the Company's product and any expansion
activities. The Company currently has no commitments or
arrangements for raising additional capital.
SUBSEQUENT EVENTS
On April 7, 1997, the Company completed the sale of
the assets related to its business of manufacturing and
distributing Iodine-123 capsules for a total purchase price
of $6,700,000 pursuant to the terms of an Asset Purchase
Agreement (the "Agreement") dated April 7, 1997 by and
between the Registrant and Syncor Pharmaceuticals, Inc.
Included in the sale was the New Drug Application
for the Iodine-123 capsules, the building that contains the
manufacturing facility for the Iodine-123 capsules and all
of the equipment related to the Iodine-123 business.
The proceeds from the sale were used to pay off the
two existing term loans and $1,485,000 of the revolving
facility leaving a balance of $316,000.
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits:
Exhibit 11 Statement Regarding Computation of
Per Share Earnings
Exhibit 27 Financial Data Schedule
b. Reports on Form 8-K
No Current Reports on Form 8-K were filed during
the period covered by this report
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
GOLDEN PHARMACEUTICALS,
INC.
(Registrant)
DATED: April ___, 1997 BY: /s/ Glen H.
Weaver
Glen H. Weaver,
Vice President,
Finance
Chief Financial
OfficerExhibit No. 11
To The Form 10-QSB
For The Quarterly Period Ended February 28,
1997,EXHIBIT NO. 11
GOLDEN PHARMACEUTICALS, INC.
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
,
Six months
Ended
February
28,
1997
1996
Shares of common stock and
equivalents outstanding at
beginning of period 120,774,778
91,589,946
Weighted-average shares or
equivalents issued during
the period 311,377
837,415
Weighted-average shares or
equivalents canceled during
the period -
(2,879,121)
Weighted-average shares assumed
issued under stock option plans
during the period 0
0
Average common and common
stock equivalents
outstanding 121,086,155
89,548,240
Income before minority interest $(326,462)
$(103,986)
Minority interest 7,139)
0
Net Income $ (393,601)
$ (103,986)
Earnings per share:
Income before minority interest $ *
$ *
Minority interest *
*
Earnings per share $ *
$ *
* Less than $.01 per share
Exhibit No. 27
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains financial information extracted from the registrant's
financial statements for the quarter ended February 28, 1997 contained in its
quarterly report on form 10QSB and is qualifed in its entirety by reference to
such financial statements.
</LEGEND>
<S> <C> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS YEAR
<FISCAL-YEAR-END> AUG-31-1997 AUG-31-1996 AUG-31-1996
<PERIOD-END> FEB-28-1997 FEB-29-1996 AUG-31-1996
<CASH> 30625 0 34872
<SECURITIES> 0 0 0
<RECEIVABLES> 3002589 0 1443684
<ALLOWANCES> 55029 0 63700
<INVENTORY> 1614985 0 1336633
<CURRENT-ASSETS> 5660556 0 3528771
<PP&E> 4718781 0 4339707
<DEPRECIATION> 2015892 0 1782400
<TOTAL-ASSETS> 12878099 0 10691601
<CURRENT-LIABILITIES> 5040553 0 2616663
<BONDS> 0 0 0
0 0 0
292558 0 292558
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