UNITED STATES
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 March 31, 2000
OR
[ ] 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 000-23143
PROGENICS PHARMACEUTICALS, INC.
-------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 13-3379479
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
777 Old Saw Mill River Road
Tarrytown, New York 10591
---------------------------
(Address of principal executive offices)
(Zip Code)
(914) 789-2800
--------------
(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 March 31, 2000 there were 12,134,850 shares of common stock, par
value $.0013 per share, of the registrant outstanding.
<PAGE>
PROGENICS PHARMACEUTICALS, INC.
INDEX
Page No.
--------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets............................... 3
Condensed Statements of Operations..................... 4
Condensed Statement of Stockholders' Equity............ 5
Condensed Statements of Cash Flows..................... 6
Notes to Condensed Financial Statements................ 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations.......... 9
Item 3. Quantitative and Qualitative Disclosures
about Market Risk...................................... 11
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K................. 12
2
<PAGE>
PROGENICS PHARMACEUTICALS, INC.
CONDENSED BALANCE SHEETS
AT MARCH 31, 2000 AND DECEMBER 31, 1999 (Unaudited)
March 31, December 31,
2000 1999
ASSETS: ------------- -------------
Current assets:
Cash and cash equivalents............... $ 15,857,471 $ 24,212,448
Marketable securities................... 34,909,950 29,655,101
Accounts receivable..................... 581,841 1,146,740
Interest receivable 1,310,232 835,367
Other current assets.................... 253,108 189,092
------------- -------------
Total current assets................. 52,912,602 56,038,748
Marketable securities..................... 15,614,070 13,749,156
Fixed assets, at cost, net of accumulated
depreciation and amortization........... 1,323,080 1,396,917
Investment in joint venture............... 63,865 73,044
Security deposits and other assets........ 3,039 3,039
------------- -------------
Total assets......................... $ 69,916,656 $ 71,260,904
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable and accrued
liabilities........................... $ 988,065 $ 2,453,564
Amount due to joint venture............. 500,000 452,606
Deferred revenue........................ 211,990
Capital lease obligations,
current portion....................... 9,698 79,562
------------- -------------
Total current liabilities............ 1,709,753 2,985,732
Amount due to joint venture............... 391,623 417,141
Capital lease obligations................. 10,759 37,328
------------- -------------
Total liabilities.................... 2,112,135 3,440,201
------------- -------------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.001 par value,
14,320,174 authorized; none
issued and outstanding
Common stock - $.0013 par value,
40,000,000 authorized; issued
and outstanding - 12,134,850
in 2000, 11,905,774 in 1999........... 15,775 15,478
Additional paid-in capital.............. 87,732,141 86,329,599
Unearned compensation................... (483,918) (591,142)
Accumulated deficit..................... (19,175,495) (17,703,528)
Accumulated other comprehensive loss.... (283,982) (229,704)
------------- -------------
Total stockholders' equity........... 67,804,521 67,820,703
------------- -------------
Total liabilities and
stockholders' equity............... $ 69,916,656 $ 71,260,904
============= =============
The accompanying notes are an integral part of these statements.
3
<PAGE>
PROGENICS PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
Three months ended March 31,
-----------------------------
2000 1999
------------- -------------
Revenues:
Contract research and development....... $ 2,116,708 $ 2,614,606
Research grants and product sales....... 229,766 229,480
Interest income......................... 1,027,773 303,296
------------- -------------
Total revenues....................... 3,374,247 3,147,382
------------- -------------
Expenses:
Research and development................ 3,457,781 2,360,280
General and administrative.............. 996,376 868,738
Loss in joint venture................... 187,913
Interest expense........................ 22,499 13,503
Depreciation and amortization........... 181,645 149,770
------------- -------------
Total expenses....................... 4,846,214 3,392,291
------------- -------------
Net loss............................. $ (1,471,967) $ (244,909)
============= =============
Net loss per share - basic and diluted.... $ (0.12) $ (0.03)
========== ==========
The accompanying notes are an integral part of these statements.
4
<PAGE>
PROGENICS PHARMACEUTICALS, INC.
CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE QUARTER ENDED MARCH 31, 2000 (Unaudited)
<TABLE>
<CAPTION>
ACCUMULATED
COMMON STOCK ADDITIONAL OTHER TOTAL
------------------ PAID-IN UNEARNED ACCUMULATED COMPREHENSIVE STOCKHOLDERS' COMPREHENSIVE
Shares Amount CAPITAL COMPENSATION DEFICIT INCOME (LOSS) EQUITY LOSS
---------- ------- ----------- ------------ ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1999 11,905,774 $15,478 $86,329,599 ($591,142) ($17,703,528) ($229,704) $67,820,703
Amortization of unearned
compensation 107,224 107,224
Issuance of compensatory
stock options 164,476 164,476
Sale of Common Stock under
employee stock purchase
plans and exercise of
stock options and warrants 229,076 297 1,238,066 1,238,363
Net loss (1,471,967) (1,471,967) (1,471,967)
Change in unrealized gain
on marketable securities (54,278) (54,278) (54,278)
---------- ------- ----------- ------------ ------------- ------------- ------------- -------------
Balance at March 31, 2000 12,134,850 $15,775 $87,732,141 ($483,918) ($19,175,495) ($283,982) $67,804,521 ($1,526,245)
========== ======= =========== ============ ============= ============= ============= =============
</TABLE>
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
PROGENICS PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Increase (Decrease) in Cash and Cash Equivalents
Three months ended March 31,
-----------------------------
2000 1999
------------- -------------
Cash flows from operating activities:
Net loss................................... $ (1,471,967) $ (244,909)
------------- -------------
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization............ 181,645 149,770
Amortization of discounts, net of
premiums, on marketable securities...... 90,635 33,370
Amortization of discount on investment in
joint venture........................... 21,876
Loss in joint venture, net of amounts
funded.................................. 9,179
Noncash expenses incurred in connection
with issuance of common stock, stock
options and warrants.................... 271,700 178,300
Changes in assets and liabilities:
Decrease(increase)in accounts receivable 564,899 (833,513)
Increase in prepaid expenses and other
current assets......................... (538,881) (25,534)
Decrease in accounts payable and
accrued expenses....................... (1,273,384) (465,460)
------------- -------------
Total adjustments.................. (672,331) (963,067)
------------- -------------
Net cash used in operating activities... (2,144,298) (1,207,976)
------------- -------------
Cash flows from investing activities:
Capital expenditures....................... (87,933) (203,972)
Sale of marketable securities.......... 6,395,000 2,475,000
Purchase of marketable securities (13,659,676) (2,601,960)
------------- -------------
Net cash used in investing activities... (7,352,609) (330,932)
------------- -------------
Cash flows from financing activities:
Proceeds from the exercise of stock
options and other adjustments to
stockholders' equity.................... 1,238,363 132,231
Payment of capital lease obligations....... (96,433) (28,949)
------------- -------------
Net cash provided by financing
activities.......................... 1,141,930 103,282
------------- -------------
Net decrease in cash and cash
Equivalents......................... (8,354,977) (1,435,626)
------------- -------------
Cash and cash equivalents at beginning
of period................................. 24,212,448 14,437,263
------------- -------------
Cash and cash equivalents at end
of period........................... $ 15,857,471 $ 13,001,637
============= =============
Supplemental disclosure of noncash
investing and financing activities:
Fixed assets included in accounts
payable and accrued expenses........... $ 15,981 $ 14,769
============= =============
The accompanying notes are an integral part of these statements.
6
<PAGE>
PROGENICS PHARMACEUTICALS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. Interim Financial Statements
The interim Condensed Financial Statements of Progenics Pharmaceuticals, Inc.
(the "Company") have been prepared in accordance with the instructions to
Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include
all information and disclosures necessary for a presentation of the Company's
financial position, results of operations and cash flows in conformity with
generally accepted accounting principles. In the opinion of management, these
financial statements reflect all adjustments, consisting only of normal
recurring accruals, necessary for a fair presentation of the Company's
financial position, results of operation and cash flows for such periods. The
results of operations for interim periods are not necessarily indicative of the
results for the full year. These financial statements should be read in
conjunction with the financial statements and notes thereto contained in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
1999.
2. Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses as of March 31, 2000 and December 31,
1999 consist of the following:
March 31, 2000 December 31, 1999
-------------- -----------------
Accounts payable $ 666,800 $ 1,718,661
Accrued expenses 141,421 101,250
Accrued payroll and related costs 81,283 379,903
Legal and accounting fees payable 98,606 253,750
------------ -------------
$ 988,065 $ 2,453,564
============ =============
3. Net Loss Per Share
The Company's basic net loss per share amounts have been computed by
dividing net loss by the weighted average number of common shares outstanding.
For the three months ended March 31, 2000 and 1999, the Company reported net
losses and, therefore, no common stock equivalents were included in the
computation of diluted net loss per share since such inclusion would have been
antidilutive. The calculations of basic and diluted net loss per share are as
follows:
Net Loss Shares Per Share
(Numerator) (Denominator) Amount
----------- ------------- ---------
2000:
Basic and Diluted ($1,471,967) 12,029,069 ($0.12)
1999:
Basic and Diluted ($244,909) 9,371,742 ($0.03)
Options and warrants which have been excluded from the diluted per share
amounts because their effect would have been antidilutive include the
following:
Three Months Ended March 31,
----------------------------------------------
2000 1999
--------------------- ---------------------
Wtd. Avg. Wtd. Avg.
Wtd. Avg. Exercise Wtd. Avg. Exercise
Number Price Number Price
--------- --------- --------- ---------
Options 3,016,973 $11.60 3,214,639 $8.17
Warrants 287,156 $ 6.51 329,841 $6.12
--------- ---------
Total 3,304,129 $11.17 3,544,480 $7.98
========= =========
7
<PAGE>
4. Reclassifications
Certain reclassifications have been made to the 1999 financial statements
to conform with the 2000 presentation.
5. PSMA Development Company LLC
The Company accounts for its investment in the PSMA Development Company LLC
("JV") in accordance with the equity method of accounting. Selected
financial statement data of the JV are as follows:
March 31,2000
-------------
Balance Sheet Data
Cash $ 200,000
===========
Accounts Payable
Cytogen ($500,000, due currently) 891,623
The Company 72,269
Capital Contributions
Cytogen 100,000
The Company 2,299,188
Accounts receivable from the Company (891,623)
Accumulated deficit (2,271,457)
------------
$ 200,000
============
For the Three months Ended
March 31,2000
-------------
Statement of Operations Data
Total revenue $ 21,876
Total expenses 218,968
------------
Net Loss(1) $ (197,092)
(1) The terms of the joint venture agreement provide for the Company to fund
certain costs of the joint venture. The loss resulting from such costs
has therefore been allocated to the capital account of the Company and
accordingly, the Company's share of the joint venture's loss is greater
than ownership interest.
6. Recently Issued Accounting Standard
The Securities and Exchange Commission issued Staff Accounting Bulletin No.
101, "Revenue Recognition in Financial Statements" ("SAB 101"). SAB 101
provides additional guidance with regard to accounting for up front non-
refundable license fees and milestone payments. SAB 101 will be adopted by the
Company during the quarter ending June 30, 2000 and any adjustment to the
financial statement would be accounted for as a cumulative effect of a change
in accounting principle. The Company is assessing the impact that SAB 101 will
have on its financial statement and is currently unable to determine the full
effect; however, the impact of SAB 101 could have a material affect on the
Company's financial position and results of operations.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Form 10-Q constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 (the "Reform Act"). Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company, or industry results, to be
materially different from any expected future results, performance, or
achievements expressed or implied by such forward-looking statements. Such
factors include, among others, the following: technological uncertainties
related to early stage product development, uncertainties associated with
preclinical and clinical testing, risks relating to corporate collaborations,
the lack of product revenue and the uncertainty of future profitability, the
need for additional financing and other factors set forth more fully in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
1999 and other periodic filings with the Securities and Exchange Commission.
The following discussion should be read in conjunction with the Company's
Condensed Financial Statements and the related notes thereto.
General
Progenics is a biopharmaceutical company focusing on the development and
commercialization of innovative products for the treatment and prevention of
cancer and viral and other life-threatening diseases. The Company commenced
principal operations in late 1988 and since that time has been engaged
primarily in organizational efforts, including recruitment of scientific and
management personnel, research and development efforts, development of its
manufacturing capabilities, establishment of corporate collaborations and
raising capital. In order to commercialize the principal products that the
Company has under development, the Company will need to address a number of
technological challenges and comply with comprehensive regulatory requirements.
Accordingly, it is not possible to predict the amount of funds that will be
required or the length of time that will pass before the Company receives
revenues from sales of any of its products. To date, product sales have
consisted solely of limited revenues from the sale of research reagents. The
Company expects that sales of research reagents in the future will not
significantly increase over current levels. The Company's other sources of
revenues through March 31, 2000 have been payments received under its
collaboration agreements, research grants and contracts related to the
Company's cancer and HIV programs and interest income.
To date, a majority of the Company's expenditures have been for research
and development activities. The Company expects that its research and
development expenses will increase significantly as its programs progress and
the Company makes filings for related regulatory approvals. With the exception
of the years ended December 31, 1997 and 1998, the Company has had recurring
losses and had, at March 31, 1999, an accumulated deficit of approximately
$19,175,000. The Company has financed its operations primarily through the
private sale and issuance of equity securities, a line of credit that has since
been repaid and terminated, payments received under its collaboration with the
Bristol-Myers Squibb Company ("BMS") beginning in July 1997, payments
received under its collaboration with F. Hoffmann-La Roche Ltd and Hoffmann-La
Roche, Inc. ("Roche") beginning in January 1998, funding under research
grants and contracts, the proceeds of the Company's initial public offering in
November 1997, the proceeds of a subsequent public offering in November 1999,
and the proceeds from the exercise of outstanding options and warrants. The
Company will require additional funds to complete the development of its
products, to fund the cost of clinical trials, and to fund operating losses
that are expected to continue for the foreseeable future. The Company does not
expect its products under development to be commercialized in the near future.
9
<PAGE>
Results of Operations
Three Months Ended March 31, 2000 and 1999
Contract research and development revenue decreased to approximately
$2,117,000 for the three months ended March 31, 2000 from approximately
$2,615,000 for the three months ended March 31, 1999 as the Company received
reimbursement of clinical development costs under its Joint Development and
Master License Agreement with BMS (the "BMS License Agreement"), the
collaboration with Roche and contract revenue from the National Institutes of
Health. Revenues from research grants and product sales was essentially
unchanged. Interest income increased to approximately $1,028,000 for the three
months ended March 31, 2000 from approximately $303,000 for the three months
ended March 31, 1999 due to the increase in cash available for investing as the
Company completed a second public offering in November 1999.
Research and development expenses increased to approximately $3,457,000
for the three months ended March 31, 2000 from approximately $2,360,000 for the
three months ended March 31, 1999. The increase was principally due to
additional costs in 2000 of conducting the Company's clinical trials, including
the manufacture of GMK and MGV and PRO 542. Additionally, the Company paid
license fees to Genzyme Transgenics Corp. and Pharmacopeia in relation to its
HIV programs and incurred compensation expense for stock options granted to a
consultant.
General and administrative expenses increased to approximately $996,000
for the three months ended March 31, 2000 from approximately $869,000 for the
three months ended March 31, 1999. The increase was principally due to
increases in employee salaries, related benefits and increased insurance costs
partially offset by a decrease in patent expenses. The Company recognized
approximately $188,000 as its share of the joint venture's loss for the period
under the terms of the joint venture with Cytogen Corp., which commenced
operations in July 1999. Interest expense increased to approximately $22,000
for the three months ended March 31, 2000 from approximately $14,000 for the
three months ended March 31, 1999. The increase was principally due to the
recognition of interest expense as the Company discounted future capital
contributions to the joint venture offset by a reduction in the number of
capital lease outstanding. Depreciation expense increased to approximately
$182,000 for the three months ended March 31, 2000 from approximately $150,000
for the three months ended March 31, 1999 due to an increase in capital
expenditures and leasehold improvements during the third and fourth quarters of
1999.
The Company's net loss for the three months ended March 31, 2000 was
approximately $1,472,000 compared to a net loss of approximately $245,000 for
the three months ended March 31, 1999.
Liquidity and Capital Resources
The Company has financed its operations primarily through the private sale
and issuance of equity securities, a line of credit that has since been repaid
and terminated, payments received under its collaboration with the Bristol-
Myers Squibb Company ("BMS") beginning in July 1997, payments received under
its collaboration with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche, Inc.
("Roche") beginning in January 1998, funding under research grants and
contracts, the proceeds of the Company's initial public offering in November
1997, the proceeds of a subsequent public offering in November 1999, and the
proceeds from the exercise of outstanding options and warrants.
10
<PAGE>
In November 1997, the Company sold 2,300,000 shares of common stock in an
initial public offering. After deducting underwriting discounts and
commissions and other expenses, the Company received net proceeds of
$16,015,000. In November 1999, The Company completed an additional public
offering of 2,300,000 shares of common stock and received net proceeds, after
underwriting discounts and commissions and other expenses, of $40,584,000. The
net proceeds from both offerings were invested in short-term, interest bearing
investment grade securities pending further application.
At March 31, 2000, the Company had cash, cash equivalents and marketable
securities totaling approximately $66,400,000 compared with approximately
$67,600,000 at December 31, 1999. The Company's facility lease has been
extended to December 2000. In connection with the extended facility lease, the
Company expects that approximately $1,000,000 will be spent to expand its
administrative offices and enhance its manufacturing capabilities for clinical
trials during 2000 of which approximately $200,000 had been spent through March
31, 2000.
We believe that our existing capital resources should be sufficient to
fund operations at least through the end of 2001. However, this is a forward-
looking statement based on our current operating plan and the assumptions on
which it relies. There could be changes that would consume our assets before
such time. We will require substantial funds to conduct research and
development activities, preclinical studies, clinical trials and other
activities relating to the commercialization of any potential products. In
addition, our cash requirements may vary materially from those now planned
because of results of research and development and product testing, potential
relationships with in-licensors and collaborators, changes in the focus and
direction of our research and development programs, competitive and
technological advances, the cost of filing, prosecuting, defending and
enforcing patent claims, the regulatory approval process, manufacturing and
marketing and other costs associated with the commercialization of products
following receipt of regulatory approvals and other factors. We have no
committed external sources of capital and, as discussed above, expect no
significant product revenues for a number of years as it will take at least
that much time, if ever, to bring our products to the commercial marketing
stage. We may seek additional financing, such as through future offerings of
equity or debt securities or agreements with corporate partners and
collaborators with respect to the development of our technology, to fund future
operations. We cannot assure you, however, that we will be able to obtain
additional funds on acceptable terms, if at all.
Recently issued Accounting Standard
The Securities and Exchange Commission issued Staff Accounting Bulletin
No. 101, "Revenue Recognition in Financial Statements" ("SAB 101"). SAB 101
provides additional guidance with regard to accounting for up front non-
refundable license fees and milestone payments. SAB 101 will be adopted by the
Company during the quarter ending June 30, 2000 and any adjustment to the
financial statement would be accounted for as a cumulative effect of a change
in accounting principle. The Company is assessing the impact that SAB 101 will
have on its financial statement and is currently unable to determine the full
effect; however, the impact of SAB 101 could have a material affect on the
Company's financial position and results of operations.
Year 2000 Compliance
The Year 2000 issue resulted from the fact that many computers worldwide
used two digits, rather than four, to define the applicable year.
During 1999, we completed our assessment and remediation of our internal
infrastructure and communicated with our suppliers to determine if they were
Year 2000 ready. To date, we have not experienced any business disruptions as
a result of the Year 2000 issue. In addition, we are not aware of any problems
experienced by our suppliers. Nevertheless, it is too soon to conclude that
there will not be any problems arising from the Year 2000 issue, particularly
with some of our suppliers and other critical service providers, or that we
have identified all of the risks associated with the Year 2000 issue. Costs
incurred to date to correct Year 2000 problems have been immaterial and we
currently do not expect to incur additional costs to correct Year 2000
problems.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
At March 31, 2000, the Company did not hold any market risk sensitive
instruments.
11
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 - Financial Data Schedule
(b) Reports on Form 8-K
During the quarter ended March 31 2000, there were no reports on Form 8-K.
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.
PROGENICS PHARMACEUTICALS, INC.
Date: May 13, 2000 by /s/ Robert A. McKinney
----------------------------
Robert A. McKinney
Vice President
(Duly authorized officer
of the Registrant and
Principal Financial
and Accounting Officer)
12
<PAGE>
EXHIBIT INDEX
Exhibit Description
- ------- -------------------------------------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This Schedule contains summary financial information extracted from the
Financial Statements of Progenics Pharmaceuticals, Inc. at March 31, 2000
and is qualified in its entirety by reference to such Financial
Statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 15,857,471
<SECURITIES> 50,524,020
<RECEIVABLES> 581,841
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 52,912,602
<PP&E> 3,594,253
<DEPRECIATION> 2,271,173
<TOTAL-ASSETS> 69,916,656
<CURRENT-LIABILITIES> 1,709,753
<BONDS> 0
0
0
<COMMON> 15,775
<OTHER-SE> 87,732,141
<TOTAL-LIABILITY-AND-EQUITY> 69,916,656
<SALES> 2,000
<TOTAL-REVENUES> 3,374,247
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 4,823,715
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 22,499
<INCOME-PRETAX> (1,471,967)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,471,967)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,471,967)
<EPS-BASIC> (.12)
<EPS-DILUTED> (.12)
</TABLE>
