<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________________ to _______________
Commission File Number 1-8366
POLYDEX PHARMACEUTICALS LIMITED
(Exact Name of Registrant as Specified in Its Charter)
Commonwealth of the Bahamas None
- --------------------------------------------------------------------------------
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
421 Comstock Road, Toronto, Ontario, Canada M1L 2H5
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (416) 755-2231
- --------------------------------------------------------------------------------
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
Indicate by check whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities 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
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common shares, as of the latest practicable date.
Common Shares, $.016 Par Value 3,016,917 shares
- ------------------------------ ---------------------------
(Title of Class) (Outstanding at May 6, 1999)
<PAGE>
POLYDEX PHARMACEUTICALS LIMITED
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
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<S> <C> <C>
PART I FINANCIAL INFORMATION
Item 1 CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
Consolidated Balance Sheets
April 30, 1999 and January 31, 1999..........................................................3
Consolidated Statements of Operations
Three months ended April 30, 1999 and 1998...................................................5
Consolidated Statements of Shareholders' Equity
and Comprehensive Income
Three months ended April 30, 1999 and 1998...................................................6
Consolidated Statements of Cash Flows
Three months ended April 30, 1999 and 1998...................................................7
Segmented Information
Three months ended April 30, 1999 and 1998...................................................8
Item 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS................................................9
Item 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK............................................................................12
PART II OTHER INFORMATION
Item 6 EXHIBITS AND REPORTS ON FORM 8-K.............................................................14
Signatures...................................................................................16
</TABLE>
-2-
<PAGE>
PART I
FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED).
POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Consolidated Balance Sheets
(Expressed in United States dollars)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
(Unaudited)
April 30 April 30
1999 1998
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash $ 434,908 $ 655,131
Trade Accounts receivable 1,244,633 984,934
Inventories 2,005,460 1,917,278
Prepaid expenses and other current assets 82,898 69,188
----------------------------------------------------------------------------------------------------------------
3,767,899 3,620,531
Property, plant and equipment, net 4,438,883 4,233,144
Patents, net 167,232 166,404
Due from Novadex Corp. 858,574 658,574
Due from shareholder 887,032 903,307
Deferred income taxes 580,715 776,000
Other assets 74,769 92,574
- ---------------------------------------------------------------------------------------------------
$10,575,214 $10,456,264
- ---------------------------------------------------------------------------------------------------
</TABLE>
-3-
<PAGE>
<TABLE>
<CAPTION>
(Unaudited)
April 30 January 31
1999 1999
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,104,379 $ 1,189,886
Accrued liabilities 461,677 466,556
Income taxes payable 57,601 51,779
Current portion of long-term debt 125,822 107,994
Current portion of mandatorily redeemable capital stock 50,000 100,000
----------------------------------------------------------------------------------------------------------------
1,799,479 1,916,215
Long-term debt 531,238 521,170
Due to shareholder 648,300 637,017
Deferred gain 657,550 659,018
Deferred income taxes 85,473 148,083
Mandatorily redeemable capital stock 300,000 300,000
- -----------------------------------------------------------------------------------------------------------------------
Total liabilities 4,022,040 4,181,503
Redeemable capital stock (93,899 common shares; 99/01/31 - 93,899) 1,028,733 1,028,733
Shareholders' equity:
Capital stock:
Authorized:
100,000 A preferred shares of $0.10 each 899,400 B preferred
shares of $0.0167 each 4,000,000 common shares of $0.0167 each
Issued and outstanding:
899,400 B preferred shares 15,010 15,010
2,923,018 common shares (99/01/31 - 2,923,018) 48,552 48,552
Contributed surplus 22,464,783 22,464,783
Deficit (16,270,843) (16,498,775)
Accumulated other comprehensive income (733,061) (783,542)
----------------------------------------------------------------------------------------------------------------
5,524,441 5,246,028
- -----------------------------------------------------------------------------------------------------------------------
$ 10,575,214 $ 10,456,264
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
(Expressed in United States dollars)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Quarter Ended Quarter Ended
April 30 April 30
1999 1998
- ---------------------------------------------------------------------------------------------------
<S> <C> <C>
Sales $ 3,170,641 $ 2,930,964
Cost of products sold 2,144,107 2,015,282
- ---------------------------------------------------------------------------------------------------
1,026,534 915,682
Expenses:
General and administrative 397,808 373,147
Depreciation 123,683 108,456
Research and development 79,504 42,403
Interest expense 34,734 34,906
Selling and promotion 19,720 44,496
Amortization 5,474 9,072
--------------------------------------------------------------------------------------------
660,923 612,480
- ---------------------------------------------------------------------------------------------------
Income from operations 365,611 303,202
Other income:
Gain on sale of equipment - 6,669
Interest and other 8,618 18,963
--------------------------------------------------------------------------------------------
8,618 25,632
- ---------------------------------------------------------------------------------------------------
Income before the undernoted 374,229 328,834
Provision for income taxes (146,297) (152,821)
- ---------------------------------------------------------------------------------------------------
Income for the period $ 227,932 $ 176,013
- ---------------------------------------------------------------------------------------------------
Per share information:
Earnings per common share for the period:
Basic $ 0.08 $ 0.06
Diluted $ 0.08 $ 0.06
- ---------------------------------------------------------------------------------------------------
Weighted average number of common shares
outstanding for the period 3,016,917 2,996,907
- ---------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Consolidated Statements of Shareholders' Equity and Comprehensive Income
(Unaudited)
(Expressed in United States dollars)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Quarter Ended Quarter Ended
April 30 April 30
1999 1998
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Preferred Shares:
Balance, beginning of period $ 15,010 $ 15,010
Private placement of preferred shares - -
-----------------------------------------------------------------------------------------------
Balance, end of period $ 15,010 $ 15,010
- --------------------------------------------------------------------------------------------------------
Common Shares:
Balance, beginning of period $ 48,552 $ 47,283
Exercise of options - -
-----------------------------------------------------------------------------------------------
Balance, end of period $ 48,552 $ 47,283
- --------------------------------------------------------------------------------------------------------
Contributed Surplus:
Balance, beginning of period $ 22,464,783 $ 21,826,025
Exercise of options - -
-----------------------------------------------------------------------------------------------
Balance, end of period $ 22,464,783 $ 21,826,025
- --------------------------------------------------------------------------------------------------------
Deficit:
Balance, beginning of period $ (16,498,775) $ (17,071,168)
Net income for the period 227,932 176,013
-----------------------------------------------------------------------------------------------
Balance, end of period $ (16,270,843) $ (16,895,155)
- --------------------------------------------------------------------------------------------------------
Accumulated Other Comprehensive Income:
Balance, beginning of period $ (783,542) $ (665,768)
Currency translation adjustment for the period 50,481 19,969
-----------------------------------------------------------------------------------------------
Balance, end of period $ (733,061) $ (645,799)
- --------------------------------------------------------------------------------------------------------
Comprehensive Income for the period:
Net income (loss) for the period $ 227,932 $ 176,013
Currency translation adjustment for the period 50,481 19,969
-----------------------------------------------------------------------------------------------
$ 278,413 $ 195,982
- --------------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Consolidated Statements of Cash Flows
(Expressed in United States dollars)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
Year to Date Year to Date
April 30 April 30
1999 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash provided by (used in):
Operating activities:
Net income for the period $ 227,932 $ 176,013
Add (deduct) items not affecting cash:
Depreciation and amortization 129,157 117,528
Deferred income taxes 135,304 152,821
Loss (gain) on sale of equipment - (6,669)
Legal expenses charged to deferred gain (1,468) (58)
Change in non-cash operating working capital (416,466) (251,383)
------------------------------------------------------------------------------------------------------------
74,459 188,252
------------------------------------------------------------------------------------------------------------
Investing activities:
Additions to property, plant and equipment and patents (298,617) (171,222)
Proceeds from sale of equipment - 9,500
Repayment of due from shareholder, net 16,005 4,344
------------------------------------------------------------------------------------------------------------
(282,612) (157,378)
------------------------------------------------------------------------------------------------------------
Financing activities:
Repayment of loans payable (8,481) -
Repayment of long-term debt (24,526) (14,164)
Proceeds from long-term debt 52,422 20,000
Payment of mandatorily redeemable capital stock (50,000) -
Repayment of advances from shareholder, net 11,283 11,599
------------------------------------------------------------------------------------------------------------
(19,302) 17,435
Effect of exchange rate changes on cash 7,232 8,553
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in cash position (220,223) 56,862
Cash, beginning of period 655,131 288,527
- -------------------------------------------------------------------------------------------------------------------
Cash, end of period $ 434,908 $ 345,389
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Segmented Information (Unaudited)
(Expressed in United States dollars)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Quarter Ended Quarter Ended
April 30 April 30
1999 1998
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SALES:
Dextran $ 1,115,422 $ 1,034,308
Veterinary products 2,055,219 1,896,656
------------------------------------------------------------------------------------------------------------
Total consolidated sales $ 3,170,641 $ 2,930,964
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM OPERATIONS:
Dextran $ 375,370 $ 334,185
Veterinary products 169,406 139,140
------------------------------------------------------------------------------------------------------------
Total income from operations from segments 544,776 473,325
Less: Unallocated corporate expenses 179,165 170,123
------------------------------------------------------------------------------------------------------------
Total consolidated income from operations $ 365,611 $ 303,202
- ---------------------------------------------------------------------------------------------------------------------
ASSETS:
Dextran $ 5,079,095 $ 4,469,019
Veterinary products 4,090,343 3,781,737
------------------------------------------------------------------------------------------------------------
Total assets from segments 9,169,438 8,250,756
Corporate assets 1,405,776 1,640,342
------------------------------------------------------------------------------------------------------------
Total consolidated assets $ 10,575,214 $ 9,891,098
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
-8-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
(a) RESULTS OF OPERATIONS
During the fiscal quarter ended April 30, 1999, the Registrant's pre-tax income
from operations amounted to $365,611, as compared to $303,202 for the same
period last year. This improvement in results is due to an increase in operating
profits during the quarter at Dextran Products Limited ("Dextran") of $41,185,
and at Veterinary Laboratories Inc. ("Vet Labs") of $30,266. The improvement in
operating profits at both Dextran and Vet Labs is primarily attributable to
increased sales during the quarter as compared to the same quarter last year.
Sales volume this quarter increased from the same period last year by $239,677.
Dextran experienced a quarter over quarter increase in sales of $81,114 as a
result of increased demand for its products and a decrease in intercompany
sales, while Vet Labs experienced a quarter over quarter increase in sales of
$158,563 due to increased sales of all product lines. The increase in sales in
the liquids product line accounted for 53% of the total sales increase at Vet
Labs. Within the injectable product line, there was a significant product mix
variance. Injectable iron dextran sales declined by approximately $310,000 from
the first quarter last year, however this reduction was more than offset by
increased sales of other injectable vitamin products. The decline in injectable
iron dextran sales is a result of the significant decline in hog production due
to the Asian financial crisis. Asia has significantly reduced imports of hogs,
which has forced North American hog producers to reduce their production.
Gross margins increased from 31% in the first quarter last year to 32% this
quarter. Dextran's quarter over quarter gross margin increased from 40% to
46% while Vet Labs' gross margin decreased from 18% to 16%. The margin
increase at Dextran is due to product mix variances. Lower intercompany sales
allows for increased production, and sales, of higher margin iron dextran
product. The decrease in margin at Vet Labs is attributable to the decrease
in injectable iron dextran sales. This is one of the highest margin products
at Vet Labs. Liquids are generally a lower margin product line.
Management expects strong sales and margins to continue at Dextran. The summer
months are typically slower sales months for Vet Labs as large animals are put
outdoors to pasture and therefore have less need for vitamins and other
supplements. Management is therefore forecasting lower sales levels in the
second quarter than was achieved in the first quarter at Vet Labs. Margins are
expected to remain steady, but the expected lower sales volume may reduce
operating profits for the coming quarter.
General and administrative expenses increased by $24,661, primarily attributable
to an increase in payroll from the prior year first quarter.
-9-
<PAGE>
Depreciation and amortization increased by $11,629 from the same period last
year primarily due to the capital expenditures at Dextran relating to plant
refurbishment.
Research and development costs increased by $37,101 as compared to the first
quarter last year due to an increase in new product development costs relating
to the development of a raw material for a human injectable product. Development
costs to date relating to this project totaled approximately $50,000.
Research and development, in conjunction with the University of British
Columbia, involving the treatment of cystic fibrosis using a form of Dextran is
continuing. Clinical trials are expected to commence once funding and government
approvals are obtained.
Research and development, in conjunction with the Rush Institute of the
University of Chicago, relating to Cellulose Sulfate gel is progressing. The
U.S. Food & Drug Administration has approved an Investigational New Drug (IND)
exemption for Phase I human clinical trials to test the safety and tolerance of
this gel. A nine-month trial, funded by The Consortium for Industrial
Collaboration in Contraceptive Research, will begin immediately. Pre-IND tests
have indicated that this gel holds great promise as a topical prophylactic for
sexually transmitted diseases, including AIDS, and as a contraceptive.
Selling and promotion expenses in the quarter decreased by $24,776 as compared
to the first quarter last year due to the termination during the first quarter
last year of a contract with a marketing company. There was no similar expense
this year.
There was no significant quarter over quarter change in interest expense.
Operating results for the first quarter ended April 30, 1999 are not necessarily
indicative of the results that may be expected for the year ended January 31,
2000. For further information, refer to the consolidated statements and
footnotes thereto included in the Registrant's annual report on Form 10-K for
the year ended January 31, 1999.
(b) LIQUIDITY AND CAPITAL RESOURCES
The Registrant in the first quarter generated cash flow from operations of
$74,459 compared to the prior year first quarter cash flow from operations of
$188,252. This decrease in cash flow from operations is primarily due to the
large increase in accounts receivable. Dextran had larger than normal sales to
its largest customer towards the end of the quarter, which increased the
receivable balance. Accounts receivable at Dextran increased from $410,888 at
the previous year-end to $685,256. There were no significant changes in
inventory levels at either Dextran or Vet Labs during the quarter.
The majority of capital expenditures on plant and equipment during the quarter
relate to production equipment at Dextran. Management plans to continue to
purchase equipment at Dextran, during the next quarter, as part of the plant
refurbishment project. There are no production interruptions planned for the
next quarter due to this refurbishment.
-10-
<PAGE>
FORWARD-LOOKING STATEMENTS SAFE HARBOR
This Form 10-Q, including the Management's Discussion and Analysis of Financial
Condition and Results of Operations, contains various "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended,
which represent the Company's expectations or beliefs concerning future events,
including, but not limited to statements regarding management's expectations of
regulatory approval and the commencement of sales. In addition, statements
containing expressions such as "believes", "anticipates" or "expects" used in
this Form 10-Q, the Company's Annual Report, and the Company's periodic reports
on Forms 10-K and 10-Q previously filed with the Securities and Exchange
Commission are intended to identify forward-looking statements. The Company
cautions that these and similar statements in this Form 10-Q, the Company's
Annual Report, and in previously filed periodic reports including reports filed
on Forms 10-K and 10-Q are further qualified by important factors that could
cause actual results to differ materially from those in the forward-looking
statements. These factors include, without limitation, changing market
conditions, the progress of clinical trials, and the results obtained, the
establishment of new corporate alliances, the impact of competitive products and
pricing, and the timely development, FDA approval and market acceptance of the
Company's products, none of which can be assured. Results actually achieved may
differ materially from expected results included in these statements as a result
of these or other factors.
The accompanying unaudited condensed consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normally recurring accruals) considered necessary for a fair presentation
have been included.
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<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
The table below provides information about the Company's financial
instruments that are sensitive to changes in interest rates. All financial
instruments are held for other than trading purposes. The Company does not
have a material exposure to interest rate risk.
The table presents principal cash flows and related weighted average
interest rates by expected maturity dates.
<TABLE>
<CAPTION>
Expected Maturity Date
------------------------------------------------------------------------------- Fair
31-Jan-00 31-Jan-01 31-Jan-02 31-Jan-03 31-Jan-04 Thereafter Total Value
--------- --------- --------- --------- --------- ---------- ----- -----
(US$ Equivalent)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Notes receivable:
Variable rate ($US) 71,299 65,510 16,656 17,989 19,428 602,726 793,607 793,607
Average interest rate 7.79% 7.90% 8.00% 8.00% 8.00% 8.00% 7.95%
LIABILITIES:
Long-term debt:
Fixed rate ($US) 25,963 347,273 - - - - 373,236 373,236
Average interest rate 8.81% 8.79% 0.00% 0.00% 0.00% 0.00% 8.80%
Fixed rate ($CDN) 67,359 97,578 113,652 6,653 - - 285,242 285,242
Average interest rate 9.05% 9.06% 9.04% 12.00% 0.00% 0.00% 9.79%
Variable rate ($US) (39,862) (43,051) (46,496) (50,215) (54,232) 882,138 648,281 648,281
Average interest rate 8.00% 8.00% 8.00% 8.00% 8.00% 8.00% 8.00%
</TABLE>
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<PAGE>
The table below provides information about the Company's financial
instruments that are sensitive to changes in foreign currency exchange rates.
All financial instruments are held for other than trading purposes. The
Company's major exposure to exchange rate risk is that the Canadian dollar
rises dramatically in relation to the U.S. dollar and that this significantly
reduces the gross margin experienced at Dextran Products. Management monitors
the margin at Dextran to ensure that an acceptable margin level is
maintained. Management has the ability, to some extent, to adjust sales
prices to maintain an acceptable margin level.
The table presents principal cash flows and related weighted average
interest rates by expected maturity dates.
<TABLE>
<CAPTION>
Expected Maturity Date
------------------------------------------------------------------------- Fair
31-Jan-00 31-Jan-01 31-Jan-02 31-Jan-03 31-Jan-04 Thereafter Total Value
--------- --------- --------- --------- --------- ---------- ----- -----
(US$ Equivalent)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES:
Long-term debt:
Fixed rate ($CDN) 67,359 97,578 113,652 6,653 - - 285,242 285,242
Average interest rate 9.05% 9.06% 9.04% 12.00% 0.00% 0.00% 9.79%
</TABLE>
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<PAGE>
PART II
OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
<TABLE>
<CAPTION>
<S> <C> <C>
(a) Exhibits
3.1 Memorandum of Association of Polydex
Pharmaceuticals Limited, as amended to date
(filed as Exhibit 3.1 to the Registrant's
Annual Report on Form 10-K filed April 30,
1997, and incorporated herein by reference)
3.2(a) Articles of Association of Polydex
Pharmaceuticals Limited, as amended to date
(filed as Exhibit 3.2 to the Registrant's
Quarterly Report on Form 10-Q filed
September 9, 1998, and incorporated herein
by reference)
3.2(b) Certificate of Amendment to the Articles of
Association of Polydex Pharmaceuticals
Limited, as amended (filed as Exhibit 3.2(b)
to the Registrant's Annual Report on Form
10-K filed April 29, 1999, and incorporated
herein by reference)
10.1 Employment Agreement between Polydex
Pharmaceuticals Limited and Thomas C. Usher
dated December 22, 1993, as amended on
November 1, 1996 (filed as Exhibit 10.1 to
the Annual Report on Form 10-K filed April
30, 1997, and incorporated herein by
reference)*
10.2 Amendment to Employment Agreement between
Polydex Pharmaceuticals Limited and Thomas
C. Usher dated February 1, 1999 (filed as
Exhibit 10.2 to the Registrant's Annual
Report on Form 10-K filed April 29, 1999,
and incorporated herein by reference)*
10.3 Employment Agreement between Polydex
Pharmaceuticals Limited and George G. Usher
dated December 22, 1993 (filed as Exhibit
10.2 to the Annual Report on Form 10-K filed
April 30, 1997, and incorporated herein by
reference)*
10.4 Amendment to Employment Agreement between
Polydex Pharmaceuticals Limited and George
G. Usher dated February 1, 1999 (filed as
Exhibit 10.2 to the Registrant's Annual
Report on Form 10-K filed April 29, 1999,
and incorporated herein by reference)*
-14-
<PAGE>
<S> <C> <C>
10.5 Research Agreement among Dextran Products
Limited, Canadian Microbiology Consortium,
British Columbia's Children's Hospital and
the University of British Columbia, dated
April 1, 1996 (filed as Exhibit 10.4 to the
Annual Report on Form 10-K filed April 30,
1997, and incorporated herein by reference)
10.6 Joint Venture Agreement among Chemdex, Inc.,
Veterinary Laboratories Inc. and Sparhawk
Laboratories, Inc., dated December 1, 1992
(filed as Exhibit 10.5 to the Annual Report
on Form 10-K filed April 30, 1997, and
incorporated herein by reference)
10.7 Manufacturing Agreement among Sparhawk
Laboratories, Inc., Agri Laboratories, Ltd.
and Veterinary Laboratories Inc., dated
September 23, 1996 (filed as Exhibit 10.6 to
the Annual Report on Form 10-K filed April
30, 1997, and incorporated herein by
reference)
10.8 Stock Sale and Purchase Agreement between
Continental Grain Company and Polydex
Pharmaceuticals Limited dated October 30,
1992, as amended on November 22, 1996 (filed
as Exhibit 10.8 to the Annual Report on Form
10-K filed April 30, 1997, and incorporated
herein by reference)
27 Financial Data Schedule
(b) Reports on Form 8-K
Not applicable.
- ------------
</TABLE>
* Indicates a management contract or compensatory plan or arrangement
-15-
<PAGE>
SIGNATURES
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.
Date: June 9, 1999
POLYDEX PHARMACEUTICALS LIMITED
(Registrant)
By /s/ George G. Usher
----------------------------------------------
George G. Usher, Chairman, President and Chief
Executive Officer
(Principal Executive Officer)
By /s/ Sharon L. Wardlaw
----------------------------------------------
Sharon L. Wardlaw, Treasurer, Secretary and
Chief Financial and Accounting Officer
(Principal Financial Officer)
-16-
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit Number Exhibit Description
- -------------- -------------------
<S> <C>
27 Financial Data Schedule
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-2000
<PERIOD-START> FEB-01-1999
<PERIOD-END> APR-30-1999
<CASH> 434,909
<SECURITIES> 0
<RECEIVABLES> 1,244,633
<ALLOWANCES> 0
<INVENTORY> 2,005,460
<CURRENT-ASSETS> 3,767,899
<PP&E> 9,092,832
<DEPRECIATION> 4,653,839
<TOTAL-ASSETS> 10,575,214
<CURRENT-LIABILITIES> 1,799,479
<BONDS> 531,238
0
15,010
<COMMON> 48,552
<OTHER-SE> 22,464,783
<TOTAL-LIABILITY-AND-EQUITY> 10,575,214
<SALES> 3,170,641
<TOTAL-REVENUES> 3,170,641
<CGS> 2,144,107
<TOTAL-COSTS> 2,144,107
<OTHER-EXPENSES> 626,189
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 34,734
<INCOME-PRETAX> 365,611
<INCOME-TAX> 146,297
<INCOME-CONTINUING> 227,932
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 227,932
<EPS-BASIC> 0.08
<EPS-DILUTED> 0.08
</TABLE>
