SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
AMENDMENT NO. 1
TO
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 19, 1996
DYNAGEN, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 1-11352 04-3029787
(State or other jurisdiction of (Commission file (I.R.S. Employer
incorporation or organization) number) Identification No.)
99 Erie Street, Cambridge, MA 02139
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code: (617) 491-2527
No change since last report
(Former name or address, if changed since last report)
-2-
The undersigned registrant (the "Registrant") hereby amends the
following items, financial statements, exhibits and other portions of its
Current Report on Form 8-K dated August 19, 1996 as set forth on the pages
attached hereto:
Item 7. Financial Statements and Exhibits.
(a) Financial statements of business acquired.
This item is amended to provide the following financial
statements relating to the business of Able Laboratories,
Inc., which are filed as Exhibit 99.1 to this report and
incorporated herein by reference.
Independent Auditors' Report.
Balance Sheet at June 30, 1996, December 31, 1995 and
December 31, 1994.
Statement of Operations for the six months ended June
30, 1996 and the years ended December 31, 1995,
1994 and 1993.
Statement of Change in Division Equity for the six
months ended June 30, 1996 and the years ended
December 31, 1995, 1994 and 1993.
Statement of Cash Flows for the six months ended June
30, 1996 and the years ended December 31, 1995,
1994 and 1993.
Notes to Financial Statements.
(b) Unaudited Pro Forma Combined Financial Information.
This item is amended to provide the following unaudited pro
forma combined financial information of the Registrant, which
is filed as Exhibit 99.2 to this report and incorporated
herein by reference.
Pro Forma Statement of Operations (Unaudited) for the
year ended June 30, 1996.
Pro Forma Balance Sheet (Unaudited) at June 30, 1996.
(c) Exhibits.
2.1 Asset Purchase Agreement, dated August 9, 1996, among
the Registrant, Able Acquisition Corp., Able
Laboratories, Inc. and Alpharma USPD Inc. (filed as
Exhibit 2.1 to the Registrant's Current Report on
Form 8-K dated August 19, 1996 and incorporated
herein by reference).
2.2 Product Supply Agreement, dated August 9, 1996, among
the Registrant, Able Acquisition Corp. and Able
Laboratories, Inc. (filed as Exhibit 2.2 to the
Registrant's Current Report on Form 8-K dated August
19, 1996 and incorporated herein by reference).
23.1 Consent of Feldman Radin & Co., P.C.
-3-
99.1 Financial Statements of Able Laboratories, Inc.
99.2 Unaudited Pro Forma Combined Financial Information of
the Registrant.
-4-
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this amendment to be signed on its behalf by the
undersigned thereunto duly authorized.
DYNAGEN, INC.
By:/s/ DHANANJAY G. WADEKAR
-----------------------------
Dhananjay G. Wadekar
Executive Vice President
Dated: September 23, 1996
-5-
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
2.1 Asset Purchase Agreement, dated August 9, 1996, among the
Registrant, Able Acquisition Corp., Able Laboratories, Inc.
and Alpharma USPD Inc. (filed as Exhibit 2.1 to the
Registrant's Current Report on Form 8-K dated August 19,
1996 and incorporated herein by reference).
2.2 Product Supply Agreement, dated August 9, 1996, among the
Registrant, Able Acquisition Corp. and Able Laboratories,
Inc. (filed as Exhibit 2.2 to the Registrant's Current
Report on Form 8-K dated August 19, 1996 and incorporated
herein by reference).
23.1 Consent of Feldman Radin & Co., P.C.
99.1 Financial Statements of Able Laboratories, Inc.
99.2 Unaudited Pro Forma Combined Financial Information of the
Registrant.
Exhibit 23.1
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement Number
33-66826 (dated August 2, 1993 on Form S-8), Number 33-78546 (dated May 2, 1994
on Form S-8), Number 33-71416 (Post-Effective Amendment No. 3 to Form S-1 on
Form S-3 dated May 16, 1995), Number 33-95432 (dated August 4, 1995 on Form S-8)
and Number 333-1748 (dated March 28, 1996 on Form S-3) of DynaGen, Inc. of our
report dated August 19, 1996 appearing in DynaGen, Inc.'s Current Report on Form
8-K dated August 19, 1996, as amended.
FELDMAN RADIN & CO., P.C.
New York, New York
September 20, 1996
ABLE LABORATORIES, INC.
REPORT ON AUDIT OF FINANCIAL
STATEMENTS
PERIODS ENDED JUNE 30, 1996,
DECEMBER 31, 1995 AND 1994
INDEPENDENT AUDITORS' REPORT
Board of Directors and Shareholders
DynaGen, Inc.
Cambridge, Massachusetts
We have audited the accompanying balance sheets of Able Laboratories,
Inc. as of June 30, 1996, December 31, 1995 and 1994, and the related statements
of operations, division equity and cash flows for the periods ended June 30,
1996, December 31, 1995, 1994 and 1993. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Able Laboratories,
Inc. as of June 30, 1996, December 31, 1995 and 1994, and the results of its
operations and its cash flows for the periods ended June 30, 1996, December 31,
1995, 1994 and 1993 in conformity with generally accepted accounting principles.
/s/ Feldman Radin & C0., P.C.
-----------------------------
FELDMAN RADIN & CO., P.C.
Certified Public Accountants
New York, New York
August 19, 1996
ABLE LABORATORIES, INC.
-----------------------
BALANCE SHEET
<TABLE>
<CAPTION>
June 30, December 31,
-----------------------------------
1996 1995 1994
---------------- ---------------- ----------------
ASSETS
<S> <C> <C> <C>
CURRENT ASSETS:
Cash $ 97,259 $ 47,155 $ 60,486
Inventories 465,256 478,712 1,212,769
Other 48,424 122,505 182,205
---------------- ---------------- ----------------
TOTAL CURRENT ASSETS 610,939 648,372 1,455,460
PROPERTY AND EQUIPMENT, net of
accumulated depreciation 2,576,870 2,932,161 3,594,056
DEPOSITS 25,333 25,333 27,789
---------------- ---------------- ----------------
$ 3,213,142 $ 3,605,866 $ 5,077,305
================ ================ ================
LIABILITIES AND DIVISION EQUITY
CURRENT LIABILITIES
Accounts payable $ 103,032 $ 65,879 $ 336,141
Accrued expenses 218,259 183,727 393,050
Capital lease obligations - current portion 5,851 20,147 24,745
---------------- ---------------- ----------------
TOTAL CURRENT LIABILITIES 327,142 269,753 753,936
CAPITAL LEASE OBLIGATIONS - Long Term - - 19,687
DIVISION EQUITY 2,886,000 3,336,113 4,303,682
---------------- ---------------- ----------------
$ 3,213,142 $ 3,605,866 $ 5,077,305
================ ================ ================
</TABLE>
See notes to financial statements
ABLE LABORATORIES, INC.
-----------------------
STATEMENT OF OPERATIONS
-----------------------
<TABLE>
<CAPTION>
Six Months
Ended Years Ended December 31,
------------------------------------------------------
June 30, 1996 1995 1994 1993
----------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
REVENUES:
Intercompany sales $ 1,977,600 $ 6,481,873 $ 9,039,066 $ 304,887
Other Sales - - 6,415,615 10,012,818
----------------- ---------------- ---------------- ----------------
TOTAL REVENUES 1,977,600 6,481,873 15,454,681 10,317,705
COST OF SALES 2,256,006 6,416,509 12,124,676 7,962,680
----------------- ---------------- ---------------- ----------------
GROSS PROFIT (LOSS) (278,406) 65,364 3,330,005 2,355,025
----------------- ---------------- ---------------- ----------------
OPERATING EXPENSES:
General and administrative expense 170,923 542,538 1,272,487 2,320,195
Research and development - - 583,002 1,203,687
Intercompany charges 160,000 320,000 320,000 200,000
Depreciation expense 355,291 696,452 643,943 460,308
----------------- ---------------- ---------------- ----------------
686,214 1,558,990 2,819,432 4,184,190
----------------- ---------------- ---------------- ----------------
OTHER (INCOME) EXPENSE:
Other income - (9,165) (20,109) (39,028)
Interest expense 458 142,738 292,378 208,227
----------------- ---------------- ---------------- ----------------
458 133,573 272,269 169,199
----------------- ---------------- ---------------- ----------------
NET INCOME (LOSS) BEFORE INCOME TAX (965,078) (1,627,199) 238,304 (1,998,364)
INCOME TAX PROVISON (BENEFIT) (395,682) (667,152) 97,705 (819,329)
----------------- ---------------- ---------------- ----------------
NET INCOME (LOSS) $ (569,396) $ (960,047)$ 140,599 $ (1,179,035)
================= ================ ================ ================
</TABLE>
See notes to financial statements
ABLE LABORATORIES, INC.
-----------------------
STATEMENT OF CHANGE IN DIVISION EQUITY
--------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Years Ended December 31,
-------------------------------------------------------------
June 30, 1996 1995 1994 1993
------------------ ---------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Beginning balance $ 3,336,113 $ 4,303,682 $ 8,906,244 $ 2,787,210
Net income (loss) (569,396) (960,047) 140,599 (1,179,035)
Transfer (to) from parent 119,283 (7,522) (4,743,161) 7,298,069
------------------ ---------------- ----------------- -----------------
Ending balance $ 2,886,000 $ 3,336,113 $ 4,303,682 $ 8,906,244
================== ================ ================= =================
</TABLE>
ABLE LABORATORIES, INC.
-----------------------
STATEMENT OF CASH FLOWS
-----------------------
<TABLE>
<CAPTION>
Six Months
Ended Years Ended December 31,
------------------------------------------------------
June 30, 1996 1995 1994 1993
----------------- ---------------- ---------------- ----------------
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C> <C> <C>
Net income (loss) $ (569,396) $ (960,047) $ 140,599 $ (1,179,035)
Adjustments to reconcile net income to net
cash provided by operating activities:
Fixed assets transfer to parent - - 481,898 -
Depreciation 355,291 696,452 643,943 460,308
Change in assets and liabilities
Decrease (increase) in accounts receivable - - 1,496,969 144,697
Decrease (increase) in inventory 13,456 734,057 3,307,874 (1,077,310)
Decrease (increase) in other current assets 74,081 59,700 126,879 (192,037)
Decrease (increase) in other assets - 2,456 14,610 8,885
Increase (decrease) in accounts payable 37,153 (270,262) (507,888) (695,284)
Increase (decrease) in accrued expenses 34,532 (209,323) (463,553) 113,591
----------------- ---------------- ---------------- ----------------
514,513 1,013,080 5,100,732 (1,237,150)
----------------- ---------------- ---------------- ----------------
NET CASH USED BY OPERATING ACTIVITIES (54,883) 53,033 5,241,331 (2,416,185)
----------------- ---------------- ---------------- ----------------
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property and equipment - (34,557) (401,034) (2,710,228)
----------------- ---------------- ---------------- ----------------
NET CASH USED BY INVESTING ACTIVITIES: - (34,557) (401,034) (2,710,228)
----------------- ---------------- ---------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Capital lease obligations (14,296) (24,285) (359,197) (1,932,805)
Transfer (to) from parent 119,283 (7,522) (4,743,161) 7,298,069
----------------- ---------------- ---------------- ----------------
NET CASH USED FROM FINANCING ACTIVITIES: 104,987 (31,807) (5,102,358) 5,365,264
----------------- ---------------- ---------------- ----------------
NET INCREASE (DECREASE) IN CASH 50,104 (13,331) (262,061) 238,851
CASH AT BEGINNING OF PERIOD 47,155 60,486 322,547 83,696
----------------- ---------------- ---------------- ----------------
CASH AT END OF PERIOD $ 97,259 $ 47,155 $ 60,486 $ 322,547
================= ================ ================ ================
</TABLE>
See notes to financial statements
ABLE LABORATORIES, INC.
NOTES TO FINANCIAL STATEMENTS
Able Laboratories, Inc. ("Able") is a pharmaceutical manufacturing firm
manufacturing over-the-counter / generic drugs for wholesalers, retail drug
chains and ethical drug companies.
1. BASIS OF PRESENTATION AND RELATED PARTY TRANSACTIONS
The financial statements present the financial position and
results of operation of Able for the three and one half years ended
June 30, 1996. On August 19, 1996, DynaGen, Inc. purchased certain
inventories and plant and equipment of Able. Able had been acquired by
its former owner, Alpharma, Inc. ("Alpharma"), a public company, in
October 1992. Subsequent to that acquisition, certain of its operations
were transferred to other subsidiaries of Alpharma. Intangibles of Able
created by the push down of the Alpharma purchase are not included in
these financial statements. All accounts of Able are included in the
financial statements except for the intangibles, income tax accounts
and capital accounts. Further, in 1994 Alpharma wrote down plant and
equipment to an estimated sales recovery amount in anticipation of the
sale. Such write offs are not included in the financial statements
presented.
During 1993 Able was operated as a complete business
enterprise with sales to the ultimate customers. In July 1994, Alpharma
changed its method of operations to flow all sales through other
subsidiaries, utilizing Able as only a manufacturing facility. From
that date all sales revenues were those credited to Able by Alpharma.
Such revenues are not necessarily those which would have been received
if Able was not selling to a related party. Further, after June 1994
Able phased out its selling, collection and research and development
functions, transferring such functions to other subsidiaries of
Alpharma.
Intercompany charges represent management salaries and data
processing expenses. Able maintained complete manufacturing and
accounting functions during all periods. In the opinion of management,
Alpharma provided no other significant services during the periods.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Cash and cash equivalents - Able considers all highly liquid
debt instruments purchased with a maturity of three months or
less to be cash equivalents.
B. Inventory - Inventory is stated at the lower of cost (last-in,
first-out method) or market.
C. Method of accounting - Able's accounting policy is to prepare
its financial statements on the accrual basis.
D. Income taxes - Income taxes have been provided at currently
effective income tax rates for Federal and New Jersey. Able
filed consolidated Federal return with Alpharma. All amounts
provided have been shown as distributions / (receipts) to
Alpharma.
E. Property and equipment - Depreciation is computed primarily
using the straight-line method over the estimated useful lives
of the related assets.
Computer equipment 3-5 years
Laboratory equipment 10 years
Machinery equipment 5-10 years
Leasehold improvement 7 years
F. Research and development - Research and development costs were
charged to operations when incurred.
G. Use of estimates - The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and reported amounts of revenues and
expenses during the reported period. Actual results could
differ from those estimates.
3. INVENTORY
Inventory consists of the following:
<TABLE>
<CAPTION>
June 30, December 31,
------------ ---------------------------------
1996 1995 1994
------------ ------------- ---------------
<S> <C> <C> <C>
Raw materials $ 217,975 $ 362,952 $ 580,139
Package components 122,433 133,260 550,581
Work-in-process 192,604 111,191 270,684
Finished goods 113,467 14,420 135,442
------------ ------------- ---------------
646,479 621,823 1,536,846
Less LIFO reserve 181,223 143,111 324,077
------------ ------------- ---------------
$ 465,256 $ 478,712 $ 1,212,769
============ ============= ===============
</TABLE>
In 1995, Able had a decrease in inventory resulting in
liquidation of LIFO inventory layers carried at costs which were lower
than the costs of current purchases. The effect of the reduction was a
decrease in cost of sales and increase in income before income taxes of
$180,966.
4. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
<TABLE>
<CAPTION>
June 30, December 31,
--------------- -----------------------------------
1996 1995 1994
--------------- ---------------- ---------------
<S> <C> <C> <C>
Building improvements $ 923,946 $ 923,946 $ 923,946
Machinery and equipment 3,878,625 3,878,625 3,847,525
--------------- ---------------- ---------------
4,802,571 4,802,571 4,771,471
Less accumulated depreciation 2,225,701 1,870,410 1,177,415
=============== ================ ===============
$ 2,576,870 $ 2,932,161 $ 3,594,056
=============== ================ ===============
</TABLE>
5. CAPITAL LEASE OBLIGATIONS
Equipment lease payable bearing interest at 6% per annum with
monthly payments of principal and interest totalling $2,459. At June
30, 1996, December 31, 1995, and 1994, the unpaid principal balances
were $5,851, $20,147, and $44,432, respectively.
6. COMMITMENTS AND CONTINGENCIES
A. Able leases its manufacturing and office facilities under an
operating lease expiring March 31, 2000. The monthly basis
rent is $21,965. Rent expenses for the periods ended June 30,
1996, December 31, 1995, 1994 and 1993 totalled $165,610,
$326,118, $359,097 and $329,772, respectively. Minimum future
rental payments under this lease is as follows:
Six months ended 12/31/96 $ 131,790
1997 263,580
1998 263,580
1999 263,580
2000 65,895
--------------
$ 988,425
==============
B. Included in property and equipment is property held under
capital leases as follows:
Machinery and equipment $ 356,213
Less accumulated depreciation 350,362
--------------
$ 5,851
==============
7. INCOME TAXES
The income taxes expense (benefit) consists of the following:
<TABLE>
<CAPTION>
Six Months
Ended Years Ended December 31,
--------------------------------------------------
June 30, 1996 1995 1994 1993
----------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
Federal income taxes $ (308,825) $ (520,704) $ 76,258 $ (639,476)
(benefit)
State income taxes (benefit) (86,857) (146,448) 21,447 (179,853)
----------------- --------------- ------------ --------------
$ (395,682) $ (667,152) $ 97,705 $ (819,329)
================= =============== ============ ==============
</TABLE>
A reconciliation of the income tax expense (benefit) at the
Federal statutory income rate of 35% for all periods to the Able's
effective income tax expense (benefit) is as follows:
<TABLE>
<CAPTION>
Six Months
Ended Years Ended December 31,
------------------------------------------------------
June 30, 1996 1995 1994 1993
------------------- ----------------- ------------ -----------------
<S> <C> <C> <C> <C>
Income (loss) before provision
for income taxes $ (965,078) $ (1,627,199) $ 238,304 $ (1,998,364)
=================== ================= ============ =================
Computed expected tax provision
(benefit) $ (337,777) $ (569,520) 83,406 $ (699,427)
State tax provision less Federal
income tax saving (57,905) (97,632) 14,299 (119,902)
------------------- ----------------- ------------ -----------------
Provision for income taxes per
financial statements $ (395,682) $ (667,152) $ 97,705 $ (819,329)
=================== ================= ============ =================
</TABLE>
PRO-FORMA FINANCIAL STATEMENTS
The following pro-forma financial statements at June 30, 1996 and for the
year then ended of DynaGen, Inc. and Able Laboratories, Inc. are based on
historical financial data of the aforementioned companies, as if the
acquisition of Able had occurred at the beginning of the fiscal year ended June
30, 1996. These pro-forma financial statements are not necessarily indicative of
the results that will be achieved for future periods.
DYNAGEN, INC.
-------------
PRO-FORMA BALANCE SHEET (UNAUDITED)
-----------------------------------
JUNE 30, 1996
-------------
<TABLE>
<CAPTION>
DynaGen Able Combined
---------------- ---------------- ---------------
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 375,948 $ 97,259 $ 473,207
Investment securities available
for sale at fair value 10,087,918 - 10,087,918
Inventory - 465,256 465,256
Other current assets 472,859 48,424 521,283
---------------- ---------------- ---------------
Total current assets 10,936,725 610,939 11,547,664
---------------- ---------------- ---------------
Property and equipment, net 143,350 2,576,870 2,720,220
Other assets 496,591 25,333 521,924
---------------- ---------------- ---------------
Total assets $ 11,576,666 $ 3,213,142 $ 14,789,808
================ ================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 733,032 $ 327,142 $ 1,060,174
Convertible note payable 2,000,000 - 2,000,000
---------------- ---------------- ---------------
Total liabilities 2,733,032 327,142 3,060,174
Total stockholders' equity 8,843,634 2,886,000 11,729,634
---------------- ---------------- ---------------
Total liabilities and stockholders' equity $ 11,576,666 $ 3,213,142 $ 14,789,808
================ ================ ===============
</TABLE>
<TABLE>
<CAPTION>
Adjustments As Adjusted
-------------------------------------- ----------------
<S> <C> <C> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents (d) 97,259 $ 375,948
Investment securities available
for sale at fair value (a) 650,000 9,437,918
Inventory (a,d) 115,470 349,786
Other current assets (d) 48,424 472,859
----------------
Total current assets 10,636,511
----------------
Property and equipment, net (a,d) 2,276,656 443,564
Other assets (d) 25,333 496,591
----------------
Total assets $ 11,576,666
================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities (d) 327,142 $ 733,032
Convertible note payable 2,000,000
----------------
Total liabilities 2,733,032
Total stockholders' equity (a) 2,886,000 8,843,634
----------------
Total liabilities and stockholders' equity $ 11,576,666
================
(1) The acquisition of Able will be accounted for under the purchase method of accounting.
(2) Adjustments to the pro-forma financial statements for the year ended June 30, 1996 have been made to reflect:
(a) The purchase of certain assets of Able at $550,000 plus $100,000 of expenses incurred on the acquisition.
(b) To reflect the loss of interest income at 5% on the purchase price and acquisition expenses.
(c) To reflect the reduction of depreciation expense due to write-down of plant and equipment.
(d) To exclude certain assets and all liabilities of Able to reflect non-purchased portion.
</TABLE>
DYNAGEN, INC.
-------------
PRO-FORMA STATEMENT OF OPERATIONS (UNAUDITED)
---------------------------------------------
YEAR ENDED JUNE 30, 1996
------------------------
<TABLE>
<CAPTION>
DynaGen Able Combined
---------------- ---------------- ---------------
<S> <C> <C> <C>
Total revenue $ 555,745 $ 4,319,817 $ 4,875,562
---------------- ---------------- ---------------
Costs and expenses:
Research and development 3,118,145 - 3,118,145
Other costs and expenses 2,781,505 6,095,561 8,877,066
---------------- ---------------- ---------------
5,899,650 6,095,561 11,995,211
---------------- ---------------- ---------------
Operating loss (5,343,905) (1,775,744) (7,119,649)
Other income (expense) 246,486 2,508 248,994
---------------- ---------------- ---------------
Net income (loss) before income taxes $ (5,097,419) $ (1,773,236) $ (6,870,655)
================ ================ ===============
Net income (loss) per share $ (0.21) $ (0.28)
================ ===============
Weighted average shares outstanding 24,433,949 24,433,949
================ ===============
</TABLE>
<TABLE>
<CAPTION>
Adjustments As Adjusted
-------------------------------------- ----------------
<S> <C> <C> <C>
Total revenue $ 4,875,562
----------------
Costs and expenses:
Research and development 3,118,145
Other costs and expenses (c) 304,605 8,572,461
----------------
11,690,606
----------------
Operating loss (6,815,044)
Other income (expense) (b) 32,500 216,494
----------------
Net income (loss) before income taxes $ (6,598,550)
================
Net income (loss) per share $ (0.27)
================
Weighted average shares outstanding 24,433,949
================
</TABLE>
