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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q/A
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1996
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 No. 0-19153
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VIMRx PHARMACEUTICALS INC.
(Exact name of Registrant as specified in its Charter)
---------------------
Delaware
06-1192468
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
1200 High Ridge Road, Stamford, Connecticut
06905
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (203) 329-0811
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
The aggregate number of Registrant's shares outstanding on July 19, 1996
was 51,330,437 shares of Common Stock, $.001 par value.
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Page 1 of 10 Pages
<PAGE>
VIMRx PHARMACEUTICALS INC.
INDEX
PART I - FINANCIAL INFORMATION Page
Item 1. Financial Statements: Consolidated Balance Sheets as of June 30,
1996 (unaudited) and December 31, 1995...................... 3
Consolidated Statements of Operations (unaudited) for the Three Months
Ended June 30, 1996 and 1995, for the Six Months Ended June 30, 1996 and 1995
and for the Period from Inception through June 30,
1996............................................. 4
Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended
June 30, 1996 and 1995, and for the Period from Inception through June 30,
1996............................................. 5
Notes to Financial Statements (unaudited)....................... 6
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations......................... 8 PART II - OTHER INFORMATION
Item 1. Legal
Proceedings...................................................... 11
Item 2. Changes in
Securities.................................................. 11
Item 3. Defaults upon Senior
Securities...................................... 11
Item 4. Submission of Matters to a Vote of Security Holders........... 11
Item 5. Other
Information...................................................... 12
Item 6. Exhibits and Reports on Form 8-K..................................
13
SIGNATURES................................................................4
2
<PAGE>
PART I - FINANCIAL INFORMATION
<TABLE>
Item 1. Financial Statements
VIMRx PHARMACEUTICALS INC.
(a development stage enterprise)
CONSOLIDATED BALANCE SHEETS
<CAPTION>
June 30, December 31,
1996 1995
(unaudited)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 52,003,397 $ 2,218,970
Deferred finance cost -0- 310,000
Other current assets 54,051 96,115
------------- ----------
Total current assets 52,057,448 2,625,085
Equipment 483,047 107,942
Note receivable -0- 225,000
Other assets 451,791 493,000
----------------
Total Assets $ 52,992,286 $ 3,451,027
-------------- ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued liabilities $ 2,067,272 $ 431,491
Notes payable -0- 1,802,048
-------------- ---------
Total current liabilities 2,067,272 2,233,539
Other liabilities (Note 5) -0- 464,000
Total Liabilities 2,067,272 2,697,539
----------- ---------
2,397,3051,315 9
Stockholders' equity:
Common stock, $.001 par value,
51,330,437 and 19,894,576 shares outstanding on
June 30, 1996 and December 31, 1995, respectively 51,330 19,895
Additional paid-in capital 79,286,365 23,244,460
Deficit accumulated during the
development stage (28,412,689) (22,510,867)
------------ ------------
Total Stockholders' Equity 50,925,014 753,488
----------- -------------
Total Liabilities and Stockholders' Equity $ 52,992,286 $ 3,451,027
============ ===========
</TABLE>
3
<PAGE>
<TABLE>
VIMRx PHARMACEUTICALS INC. AND SUBSIDIARY
(a development stage enterprise)
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<CAPTION>
Three Months Six Months December 30, 1986
Ended June 30, Ended June 30, (Inception)
1996 1995 1996 1995 to June 30, 1996
<S> <C> <C> <C> <C> <C>
-- ---- ---- ---- ----------------
Operating expenses:
Research and development........ $ 605,657 $ 868,714 $ 976,161 $ 1,147,571 $13,965,478
Purchased research and development
See Note 6 2,941,966 - 2,941,966 2,941,996
Royalty expense - See Note 4.
........... - - 100,000 100,000 300,000
Termination of agreement -
See Note 5 . . . . . . - - (464,000) (464,000)
General and administrative........
...... 1,156,448 553,947 2,123,914 1,234,665 11,679,850
--------- -------- --------- -----------
Total operating expenses.
.............. 4,704,071 1,422,661 5,678,041 2,482,236 28,423,294
========== ========= ========= ========= ==========
Other (income) expenses:
Interest (income)............
.......... (76,698) (51,140) (95,174) (114,175) (1,254,395)
Interest expense...
.................... 212,625 - 318,619 - 401,884
Provision for losses (recovery)
on notes receivables...... - - - - 135,010
Investment in and advances
to research and development
entities charged to
expense....... - - - - 700,000
Other - net ...... - 172 332 172 6,892
-------- -------- -------- ---------- --------
Total other (income)
expenses 135,927 (50,968) 223,777 (114,003) (10,609)
======= ======== ======= ========= ========
NET LOSS. $4,839,998 $ 1,371,693 $5,901,818 $2,368,233 $28,412,685
========== ============ =========== =========== ===========
NET LOSS PER SHARE... 0.11 $ 0.07 $ 0.18 $ 0.12
======= ======= ======= ======
Weighted average number of shares
of common stock
outstanding....... 43,157,768 19,742,576 32,336,359 19,742,576
=========== =========== =========== ==========
</TABLE>
4
<PAGE>
<TABLE>
VIMRx PHARMACEUTICALS INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
<CAPTION>
December 30, 1986
Six Months Ended June 30, (Inception)
1996 1995 to June 30, 1996
---- ---- ----------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net (loss).............................. $ (5,901,818) $ (2,368,233) $ (28,412,685)
Adjustments to reconcile net (loss) to
net cash (used in) operating activities:
Depreciation and amortization.... 9,784 9,751 109,240
Amortization of debt cost . . . . . 310,000 310,000
Interest expense settled through issuance of stock..... 72,260
Amortization of debt discount . . . . . . . . . . . . 197,952 200,000
Termination of agreement . . . . . . . . . . . . . . . (464,000) --
Consulting fees settled through issuance of stock..... 41,217 116,217
Provision for (recovery of) losses on notes receivable. 135,010
Investment in and advances to research and development entities charged to expense 700,000
Loss from disposal of equipment........................ 8,202
Warrants issued & other non-cash consideration for
purchased research & development. 1,787,200 1,787,200
Changes in operating assets and liabilities:
Decrease in prepayments under research contracts..... 47,334 --
(Increase) in organization costs..................... (3,463)
Increase in other current assets............. 42,064 93,035 43,949
Decrease in accounts payable and accrued liabilities. 73,573 150,478 455,063
------- -------- -------
Net cash (used in) operating activities.......... (3,904,028) (2,067,635) (24,479,007)
----------- ------------ ------------
Cash flows from investing activities:
Net sales (purchases) sales of short-term investments.. 1,252,033 --
Purchases of equipment................................. (384,889) (37,599) (623,576)
Proceeds from sale of equipment........................ 26,550
Loans to DNA Pharmaceuticals, Inc...................... (295,800)
Repayment of DNA Pharmaceuticals, Inc. loans........... 160,790
Loans to Ribonetics GmbH............................... (600,000)
Investments in and loan to CambES Ltd. ................ (325,000)
---------------- ---------------- ------------
Net cash provided by (used in) investing activities. (384,889) 1,214,434 (1,657,036)
- ----------- ----------- -----------
Cash flows from financing activities (Note 2):
Proceeds from sales of preferred and common stock...... 4,200,000 27,303,307
Costs incurred in connection with issuance of common stock (2,325,050)
Proceeds from issuance of common stock in connection
with the exercise warrants/options 51,873,344 51,942,719
Purchase of treasury stock......................... (8,341)
Proceeds from bridge loans........................... 3,141,045
Repayment of bridge loans............................ (2,000,000) (2,500,000)
Issuance of convertible demand notes payable......... 600,000
Return of capital.................................... (14,240)
--------------- --------------- --------------
Net cash provided by financing activities........ 54,073,344 0 78,139,440
-------- ----------------- ----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS.. 49,784,427 (853,201) 52,003,397
Cash and cash equivalents at beginning of period...... 2,218,970 2,054,506
-------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD........... $ 52,003,397 1,201,305 $52,003,397
============ ---------- -----------
</TABLE>
5
<PAGE>
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits:
3.1 Registrant's Certificate of Amendment filed June 20, 1996 to
Amended and Restated Certificate of Incorporation.
10.3 Registrant's Amended and Restated 1990 Incentive and Non-
Incentive Stock Option Plan (as amended through May 13, 1996)
10.16 Registrant's 1996 Non-Employee Director Restricted Stock Award
Plan
27 Financial Data Schedule
b) Reports on Form 8-K:
On April 9, 1996, the Company filed a Current Report on Form 8-K
reporting the issuance of a press release on April 2, 1996 announcing the
appointment of Richard L. Dunning as President and Chief Executive Officer.
On April 15, 1996 , the Company filed a Current Report on Form 8-K
reporting the issuance of a press release on April 9, 1996 announcing the call
for redemption of its Class A Warrants.
On April 22, 1996, the Company filed a Current Report on Form 8-K
reporting the issuance of a press release on April 18, 1996 announcing that its
Class B Warrants commenced trading on The Nasdaq Small Cap Market.
On April 30, 1996, the Company filed a Current Report on Form 8-K
reporting the issuance of a press release on April 25, 1996 announcing the call
for redemption of its Class B Warrants.
On June 12, 1996, the Company filed a Current Report on Form 8-K
announcing the acquisition of all of the issued and outstanding capital stock of
Ribonetics GmbH.
13
<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.
Dated: July 22, 1996
VIMRx PHARMACEUTICALS INC.
a Delaware Corporation
(Registrant)
By: __/S/ RICHARD L. DUNNING
Richard L. Dunning
President and
Chief Executive Officer
By: __/S/ FRANCIS M. O'CONNELL
Francis M. O'Connell
Chief Financial Officer
14
<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.
Dated: July 22, 1996
VIMRx PHARMACEUTICALS INC.
a Delaware Corporation
(Registrant)
By: ______________________________
Richard L. Dunning
President and
Chief Executive Offi er
By: ______________________________
Francis M. O'Connell
Chief Financial Officer
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
(Replace this text with the legend)
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. Dollar
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Dec-31-1996
<PERIOD-START> Jan-01-1996
<PERIOD-END> Jun-30-1996
<EXCHANGE-RATE> 1
<CASH> 52,003,397
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 54,051
<PP&E> 483,047
<DEPRECIATION> 0
<TOTAL-ASSETS> 52,992,286
<CURRENT-LIABILITIES> 2,067,272
<BONDS> 0
0
0
<COMMON> 51,330
<OTHER-SE> 50,873,676
<TOTAL-LIABILITY-AND-EQUITY> 52,992,286
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 318,619
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
