<PAGE> 1
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
(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, 1997
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 0-19777
DUSA Pharmaceuticals, Inc.
(Exact name of registrant as specified in its charter)
New Jersey 22-3103129
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
181 University Avenue, Suite 1208
Toronto, Ontario M5H 3M7 CANADA
(Address of principal executive offices)
(Zip Code)
(416) 363-5059
(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 month (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
--- ---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
9,355,950 shares as of April 30, 1997
<PAGE> 2
PART I
ITEM 1. FINANCIAL STATEMENTS
DUSA PHARMACEUTICALS, INC
(a development stage company)
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1997 1996
(UNAUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash (interest bearing) $ 3,632,663 $ 1,686,090
U.S. government securities available for sale, at
market (cost-$14,399,838 and $18,061,432
respectively) 14,365,750 18,033,406
Accrued interest receivable 128,367 208,970
Other current assets 64,267 78,367
------------------- -------------------
18,191,047 20,006,833
FIXED ASSETS 141,904 122,424
------------------- -------------------
$ 18,332,951 $ 20,129,257
=================== ===================
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 570,630 $ 867,068
Accrued charges 103,280 160,399
------------------- -------------------
673,910 1,027,467
------------------- -------------------
SHAREHOLDERS' EQUITY
Common stock, no par, 20,000,000 shares authorized,
9,355,950 issued and outstanding 36,710,743 36,710,743
Deficit accumulated during the development stage (19,017,614) (17,580,927)
Net unrealized loss on U.S. government securities
available for sale (34,088) (28,026)
------------------- -------------------
17,659,041 19,101,790
------------------- -------------------
$ 18,332,951 $ 20,129,257
=================== ===================
</TABLE>
See the accompanying notes to the Consolidated Financial Statements
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<PAGE> 3
DUSA PHARMACEUTICALS, INC
(a development stage company)
CONSOLIDATED STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CUMULATIVE
PERIOD FROM
THREE THREE FEBRUARY 21,
MONTHS MONTHS 1991 (DATE OF
ENDED ENDED INCORPORATION)
MARCH 31, MARCH 31, TO MARCH 31,
1997 1996 1997
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
REVENUE
Interest income $ 251,146 $ 268,702 $ 4,264,145
Gain (loss) on foreign currency exchange (1,523) (1,694) 18,217
Gain on sale of U.S. government securities - - 322,659
Unrealized loss on U.S. government securities
available for sale - (62) (62,832)
---------------- ---------------- -----------------
249,623 266,946 4,542,189
---------------- ---------------- -----------------
RESEARCH AND DEVELOPMENT COSTS 1,336,330 950,527 17,149,100
---------------- ---------------- -----------------
OPERATING COSTS
General and administration 336,337 420,409 6,378,159
Depreciation and amortization 13,643 6,182 95,376
---------------- ---------------- -----------------
349,980 426,591 6,473,535
---------------- ---------------- -----------------
LOSS BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE (1,436,687) (1,110,172) (19,080,446)
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE - - 62,832
---------------- ---------------- -----------------
NET LOSS $ (1,436,687) $ (1,110,172) $ (19,017,614)
================ ================ =================
NET LOSS PER COMMON SHARE $ (0.15) $ (0.13) $ (3.38)
================ ================ =================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 9,355,950 8,542,642 5,619,406
================ ================ =================
</TABLE>
See the accompanying notes to the Consolidated Financial Statements
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<PAGE> 4
DUSA PHARMACEUTICALS, INC
(a development stage company)
CONSOLIDATED STATEMENT OF CASH FLOWS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CUMULATIVE
PERIOD FROM
FEBRUARY 21,
1991 (DATE OF
THREE MONTHS THREE MONTHS INCORPORATION)
ENDED ENDED TO
MARCH 31, MARCH 31, MARCH 31,
1997 1996 1997
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
CASH FLOWS USED IN OPERATING ACTIVITIES
Net loss $(1,436,687) $(1,110,172) $(19,017,614)
Adjustments to reconcile net loss to net cash used in
operating activities
Amortization of premiums and accretion of discounts
on U.S. government securities available for sale and
investment securities, net (17,160) 5,868 155,384
Depreciation and amortization 13,643 6,182 95,376
Loss (gain) on foreign currency exchange 1,523 1,694 (18,217)
Loss (gain) on sale of U.S. government securities
available for sale - - (322,659)
Unrealized loss on U.S. government securities
available for sale - 62 62,832
Cumulative effect of change in accounting principle - - (62,832)
Write-off of intangible assets - - 307,519
Compensation expense resulting from extension of
outstanding stock options terms - - 557,260
Changes in other assets and liabilities impacting cash
flows from operations:
Accrued interest receivable 80,603 27,477 (128,367)
Other current assets 14,100 46,771 (64,267)
Accounts payable (296,438) 151,706 570,630
Accrued charges (57,119) (10,679) 103,280
License agreement obligations - 24,438 (12,203)
-------------------------------------------------------
NET CASH USED IN OPERATING ACTIVITIES (1,697,535) (856,653) (17,773,878)
-------------------------------------------------------
CASH FLOWS PROVIDED BY (USED IN)
INVESTING ACTIVITIES
Advances by Draxis Health Inc. - - (2,867,900)
Repayment of advances by Draxis Health Inc. - - 2,867,900
Purchases of U.S. government securities available for
sale and investment securities (3,181,246) (292,850) (93,278,681)
Proceeds from maturing U.S. government securities
available for sale and investment security - 850,000 18,410,000
Proceeds from sale of U.S. government securities
available for sale 6,860,000 99,938 60,636,118
Intangible assets - - (193,022)
Purchases of fixed assets (33,123) (6,852) (220,359)
-------------------------------------------------------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 3,645,631 650,236 (14,645,944)
-------------------------------------------------------
</TABLE>
-4-
<PAGE> 5
DUSA PHARMACEUTICALS, INC
(a development stage company)
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CUMULATIVE
PERIOD FROM
FEBRUARY 21,
THREE 1991 (DATE OF
THREE MONTHS MONTHS INCORPORATION)
ENDED ENDED TO
MARCH 31, MARCH 31, MARCH 31,
1997 1996 1997
(UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C>
CASH FLOWS PROVIDED BY FINANCING
ACTIVITIES
Stock offering costs $ - $ (77,910) $ (5,048,255)
Issuance of common stock and underwriters' options - 262,783 43,366,566
Payment received on note receivable from director - 14,614 68,047
Redemption of Draxis Option - - (2,250,000)
Receipt of Section 16(b) common stock profits - - 17,125
Payment on license agreement obligations - - (119,215)
----------------- ---------------- ------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES - 199,487 36,034,268
----------------- ---------------- ------------------
EFFECT OF EXCHANGE RATES ON CASH (1,523) (1,694) 18,217
----------------- ---------------- ------------------
NET INCREASE (DECREASE) IN CASH 1,946,573 (8,624) 3,632,663
CASH AT BEGINNING OF PERIOD 1,686,090 1,197,030 -
----------------- ---------------- ------------------
CASH AT END OF PERIOD $ 3,632,663 $ 1,188,406 $ 3,632,663
================= ================ ==================
SUPPLEMENTAL SCHEDULE OF CASH FLOW
INFORMATION
Issuance of common stock for promissory note from
Draxis Health Inc. $ 150,000
==================
License agreement obligations incurred in the
acquisition of an intangible asset $ 131,418
==================
Deferred stock offering costs offset against common
stock $ 77,910 $ 5,048,255
================ ==================
Note receivable from director originating upon
exercise of options for common stock $ 68,047
==================
Interest paid $ 12,594
==================
</TABLE>
There were no income tax payments made during the periods.
See the accompanying notes to the Consolidated Financial Statements
-5-
<PAGE> 6
DUSA PHARMACEUTICALS, INC.
(a development stage company)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. The Consolidated Balance Sheets as of March 31, 1997, and December 31,
1996, the Consolidated Statements of Operations for the three month periods
ended March 31, 1997, and 1996 and for the period from February 21, 1991,
(date of incorporation) to March 31, 1997, and the Consolidated Statements
of Cash Flows for the three month periods ended March 31, 1997, and 1996
and for the period from February 21, 1991, (date of incorporation) to March
31, 1997, have been prepared by the Company, without audit. In the opinion
of management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results of
operations and changes in cash flows as of March 31, 1997, and for all
periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. These financial statements
should be read in conjunction with the Company's December 31, 1996 audited
consolidated financial statements and notes thereto.
The consolidated financial statements include the accounts of the Company
and its wholly-owned subsidiary, DUSA Pharmaceuticals New York, Inc. All
significant intercompany accounts have been eliminated on consolidation.
2. The Company's United States government securities available for sale
consist of securities of the United States government, and its agencies,
with interest rates and yields ranging from 5.09% to 6.60%, and maturity
dates ranging from May 13, 1997 to August 10, 1999.
3. Net loss per common share is based on the weighted average number of shares
outstanding during each period. Certain common stock issuances (2,200,000)
were made at prices less than the initial public offering price.
Accordingly, the associated shares are included in the calculation of net
loss per share as if they were outstanding for the entire period. Stock
options are not included in the computation of the weighted average number
of shares outstanding during the period as the effect would be
antidilutive.
4. On February 13, 1997, the Company granted, subject to regulatory
requirements, incentive and non-qualified stock options to one consultant
and seven employees of the Company, to purchase 41,000 shares of common
stock at $7.25 per share pursuant to the terms of the 1996 Omnibus Plan.
The exercise price of such options is the closing stock market price on the
date of grant.
On March 13, 1997 the Company conditionally granted non-qualified stock
options to Lumenetics, Inc., a consultant to the Company, to purchase
100,000 shares of common stock at $6.125 per share. These options have been
granted on the condition that the parties conclude a revised development
agreement on certain terms and conditions. In addition the Company granted
stock options, to a consultant to the Company, to purchase 15,000 shares of
common stock at $6.125 per share as partial consideration for consulting
services. The exercise price of all of these options is the closing market
price of the Company's common stock on the date of grant.
-6-
<PAGE> 7
5. The Company has entered into a series of agreements for research projects
and clinical studies. As of March 31, 1997, future payments to be made
pursuant to these agreements, under certain terms and conditions, totaled
$1,485,579 for the remainder of 1997, and $143,125 in 1998.
-7-
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Company's
Consolidated Financial Statements and Notes to Consolidated Financial Statements
for the year ended December 31, 1996 and for the three month periods ended March
31, 1997, and March 31, 1996, respectively. The Company is a development-stage
pharmaceutical company engaged primarily in the development of photodynamic
therapy ("PDT") and photodiagnosis ("PD") utilizing Levulan(TM) for various
medical indications. The Company has raised funds through its initial public
offering of the Company's common stock in January 1992, private placements, and
public offerings in December 1995 and May 1996. Draxis Health Inc., ("Draxis"),
formerly the Company's parent and largest shareholder, sold its interest in the
Company in March 1996.
The Company's wholly-owned subsidiary, DUSA Pharmaceuticals New York, Inc.,
located in Tarrytown, New York, is the Company's center for its research and
development activities.
Financial Condition
The Company's total current assets were $18,332,951 as of March 31, 1997,
compared to $20,129,257 as of December 1996. The decline of current assets will
continue as research and development activities proceed, however, the rate of
decline is within management's expectations. As of March 31, 1997, the Company
had outstanding current liabilities of $673,910 as compared to $1,027,467 as of
December 31, 1996. The decrease in current liabilities from December 31, 1996 is
due to timing of the payment of expenses. Since its inception, the Company has
had no long-term debt. The Company held United States government securities at a
fair market value of $14,365,750 as of March 31, 1997, as compared to
$18,033,406 as of December 31, 1996. In the three-month period ending March 31,
1997, the Company incurred an operational loss of $1,436,687, as compared to
$1,110,172 for the three-month period ended March 31, 1996. (See "Results of
Operations"). The increase in operational loss is due primarily to expansion of
the Company's research and development activities. The Company's management
believes it has sufficient capital resources to proceed with its current
Levulan(TM) PDT/PD development program for the Company's lead indications
actinic keratoses, and photodiagnosis of bladder cancer, as well as its
secondary indications, including hair removal, endometrial ablation, and acne.
There can be no assurances, however, that such funds will be sufficient to
enable the Company to obtain regulatory marketing approval or to market any
product for any of the indications currently under development. As the
development of
-8-
<PAGE> 9
the Levulan(TM) PDT/PD continues, the Company may adjust its priorities on how
its resources are to be allocated between current indications and new potential
indications. In addition, exact allocation of the proceeds for such purposes and
timing of the expenditures will be dependent on various factors, including the
progress of the Company's research and development programs, the results of
preclinical and clinical trials, the timing of regulatory marketing approvals,
competitive developments, payments under any collaborative arrangements, if any,
entered into by the Company and the availability of additional financing.
The Company's Levulan(TM) PDT development program is most advanced for the
treatment of actinic keratoses (AKs). The Company is in the process of
conducting two Phase III AK clinical pivotal trials, anticipated to be completed
in the third quarter of 1997, subject to a satisfactory patient enrollment rate.
During the first quarter, the Company also initiated a Phase I/II multicenter
clinical study examining the use of Levulan(TM) PDT to permanently remove hair.
The Company also intends to begin its own multicenter trial for the
photodiagnosis of bladder cancer in mid-1997, subject to the conclusion of
current negotiations to secure an appropriate light device. There are numerous
other potential therapeutic and diagnostic uses for Levulan(TM) PDT/PD, and the
Company continues to support research in these areas as appropriate, with pilot
trials, and investigator-sponsored studies based on clinical, regulatory and
marketing criteria predetermined by the Company. Some of the
investigator-sponsored studies currently supported by the Company include
Levulan(TM) PDT/PD for cervical cancer, psoriasis, alopecia areta, and basal
cell carcinomas.
There can be no assurance that any product will be successfully developed,
prove to be safe and effective in necessary pivotal clinical trials, or receive
applicable regulatory marketing approvals. Therefore, there is no way to predict
the timing or magnitude of the revenues from the marketing of the Company's
product or whether any such revenues will be realized. The Company may, however,
enter into joint development or licensing arrangements, both domestically and
internationally, with pharmaceutical companies, in which it will seek to have
the other companies assume certain costs of clinical testing and of obtaining
regulatory marketing approval for the products licensed. In order to maintain
various current and future research and development programs, it may also be
desirable or necessary in the future to raise additional funds through
financing, corporate alliances or other sources. The Company may also acquire,
by license, purchase or other arrangement, businesses, technologies, or products
that enhance or expand the Company's business.
-9-
<PAGE> 10
Results of Operations
The Company has had no sales to date. Interest income, earned primarily on
United States government securities, decreased to $251,146 for the three-month
period ended March 31, 1997, as compared to $268,702 for the three-month period
ended March 31, 1996, as the Company continues to expend funds for ongoing
research and development. This trend is expected to continue throughout the
Company's development stage. Interest income for the cumulative period from
February 21, 1991 (date of incorporation) to March 31, 1997 was $4,264,145.
Research and development costs for the three-month period ended March 31,
1997, increased to $1,336,330 as compared to $950,527 for the three-month period
ended March 31, 1996. The increase in research and development spending is due
to increased payments to third parties who are conducting research and
development activities primarily with regard to actinic keratoses clinical Phase
III trials, and for initiation of Phase I for the hair removal indication and
preparation of bladder cancer photodiagnosis clinical trials. These costs are
expected to continue to increase, as scheduled, with the increasing number of
clinical studies and the hiring of additional research and development personnel
as necessary. Total research and development costs for the cumulative period
from February 21, 1991 (date of incorporation) to March 31, 1997 were
$17,149,100. Costs and development fees associated with all agreements for
research projects and clinical studies commit the Company to make payments of
$1,485,579 for the remainder of 1997.
Operating expenses were $349,980 and $426,59, respectively, for the
three-month periods ended March 31, 1997, and March 31, 1996. The net decrease
in operating expenses reflects that in the first quarter 1996, the Company
incurred certain costs for market research and pharmacoeconomics studies which
were not incurred during the same period this year. The net decrease occurred
despite the hiring of additional personnel and expenses incurred by the Company
as a result of its relocation to new executive offices. Operating expenses are
expected to increase in the future, as the Company continues to hire additional
financial and administrative personnel, as required.
The Company incurred a net loss of $1,436,687, or $0.15 per share, for the
three-month period ended March 31, 1997, as compared to a net loss of
$1,110,172, or $0.13 per share, for the three-month period ended March 31, 1996.
Net losses for the cumulative period from February 21, 1991 (date of
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<PAGE> 11
incorporation) to March 31, 1997 were $19,017,614, or $3.38 per share. Such
losses are consistent with the Company's expectations and the Company
anticipates that losses will continue throughout the development stage.
Liquidity and Capital Resources
The Company's United States government securities available for sale have
an aggregate cost of $14,399,838 and a current aggregate market value of
$14,365,750 as of March 31, 1997, resulting in a net unrealized loss on
securities available for sale of $34,088, the provision for which has been
charged to shareholders' equity. The decline in the market value of the
Company's government securities was the result of fluctuating interest rates in
the United States from the time these securities were acquired. Some losses
could be realized, depending upon the timing of the Company's need to convert
government securities into cash to meet its working capital requirements. The
Company's securities currently have interest rates and yields ranging from 5.09%
to 6.60%, and maturity dates ranging from May 31,1997 to August 10, 1999. The
Company believes it has sufficient capital resources to proceed with its current
development program for Levulan(TM) PDT/ PD. Management is focusing initial
pivotal clinical trials on a limited number of indications to enhance the
Company's ability to complete the regulatory process, but full development and
testing of all potential indications which are currently under development would
require additional funding. The Company has invested its funds in liquid
investments, so that it will have ready access to its cash reserves as needed
for the funding of its development plans on a short-term and long-term basis.
The foregoing Management Discussion and Analysis contains various
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1993 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, and the
sufficiency of the Company's cash flow for the Company's future liquidity and
capital resource needs. These forward-looking statements 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, clinical results of its trials, 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.
-11-
<PAGE> 12
Inflation
Although inflation rates have been comparatively low in recent years,
inflation is expected to apply upward pressure on the operating costs of the
Company. The Company has included an inflation factor in its cost estimates,
however, the overall net effect of inflation on the operations of the Company
should be minimal.
Effect of United States Statement of Financial Accounting Standards Nos. 128 and
129
In February 1997, the FASB issued SFAS No. 128 "Earnings per Share". The
Statement establishes standards for computing and presenting earnings per share
(EPS). It replaces the presentation of primary EPS with a presentation of basic
EPS and may require additional disclosure of the EPS computation. The Statement
is effective for the Company's financial statements as of December 31, 1997.
In February 1997, the FASB also issued SFAS No. 129 "Disclosure of
Information about Capital Structure". The Statement establishes standards for
disclosing information about an entity's capital structure. The Statement is
effective for the Company's financial statements as of December 31, 1997.
The Company does not anticipate that the implementation of either of these
two statements will have a material impact on the consolidated financial
statements.
-12-
<PAGE> 13
PART II- OTHER INFORMATION
ITEMS 1-5.
None.
ITEM 6. EXHIBITS.
a) Exhibits 27 - Financial Data Schedule, which is submitted electronically to
the Securities and Exchange Commission for information only and not filed.
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.
DUSA PHARMACEUTICALS, INC.
DATE May 1, 1997 BY: /s/ D. GEOFFREY SHULMAN
---------------------- -------------------------
D. GEOFFREY SHULMAN, MD, FRCPC
PRESIDENT, CHIEF EXECUTIVE OFFICER,
AND CHIEF FINANCIAL OFFICER
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<PAGE> 14
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
27 Financial Data schedule, which is submitted
electronically to the Securities and
Exchange Commission for information only
and not filed.
-14-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED BALANCE SHEETS, CONSOLIDATED STATEMENTS OF OPERATIONS,
AND CONSOLIDATED STATEMENTS OF CASH FLOWS, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FORM 10-Q FOR THE PERIOD ENDING MARCH 31, 1997.
</LEGEND>
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<EXCHANGE-RATE> 1
<CASH> 3,632,663
<SECURITIES> 14,365,750
<RECEIVABLES> 128,367
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 18,191,047
<PP&E> 141,904
<DEPRECIATION> 0
<TOTAL-ASSETS> 18,332,951
<CURRENT-LIABILITIES> 673,910
<BONDS> 0
0
0
<COMMON> 36,710,743
<OTHER-SE> (19,017,614)
<TOTAL-LIABILITY-AND-EQUITY> 18,332,951
<SALES> 0
<TOTAL-REVENUES> 249,623
<CGS> 0
<TOTAL-COSTS> 1,336,330
<OTHER-EXPENSES> 349,980
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,436,687)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,436,687)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,436,687)
<EPS-PRIMARY> (0.15)
<EPS-DILUTED> (0.15)
</TABLE>
