<PAGE> 1
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
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FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
-------------------------------------------
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997
COMMISSION FILE NUMBER 0-19874
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NEUREX CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 77-0128552
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3760 HAVEN AVENUE, MENLO PARK, CALIFORNIA 94025-1012
(Address of principal executive offices)
(415) 853-1500
(Registrant's telephone number, including area code)
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SECURITIES REGISTERED PURSUANT TO SECTION 12(B)OF THE ACT:
Title of each class Name of each exchange on which registered
COMMON STOCK, $ .01 PAR VALUE NASDAQ NATIONAL MARKET SYSTEM
SECURITIES REGISTERED PURSUANT TO SECTION 12(G) OF THE ACT:
NONE
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
FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES X NO _____
THE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING AT AUGUST 8, 1997 WAS
22,175,966 SHARES.
This report on Form 10-Q contains 12 pages.
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<PAGE> 2
NEUREX CORPORATION
INDEX
<TABLE>
<CAPTION>
PAGE
ITEM PART I. FINANCIAL INFORMATION NUMBER
---------------
<S> <C> <C>
1. Financial Statements (unaudited):
a. Condensed Consolidated Balance Sheets - June 30, 1997 and December 31, 1996............. 3
b. Condensed Consolidated Statements of Operations - Three and Six Months Ended June 30,
1997 and 1996........................................................................... 4
c. Condensed Consolidated Statements of Cash Flows - Six Months Ended June 30, 1997 and
1996.................................................................................... 5
d. Notes to Condensed Consolidated Financial Statements.................................... 6-7
2. Management's Discussion and Analysis of Financial Condition and Results of
Operations.............................................................................. 8-9
PART II. OTHER INFORMATION
1. Legal Proceedings............................................................................ 10
2. Changes in Securities........................................................................ 10
3. Defaults Upon Senior Securities.............................................................. 10
4. Submission of Matters to a Vote of Security Holders.......................................... 10-11
5. Other Information............................................................................ 11
6. Exhibits and Reports on Form 8-K............................................................. 11
Signatures................................................................................... 12
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NEUREX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AMOUNTS)
(UNAUDITED)
ASSETS
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
1997 1996
------------ ------------
<S> <C> <C>
Current assets:
Cash and cash equivalents ............................................... $ 20,739 $ 40,552
Short-term investments .................................................. 54,252 46,691
Other current assets .................................................... 261 381
------------ ------------
Total current assets .................................................. 75,252 87,624
Property and equipment, net ................................................ 2,126 1,748
Notes receivable from officers ............................................. 234 123
Other assets, net .......................................................... 74 77
------------ ------------
$ 77,686 $ 89,572
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable ........................................................ $ 1,172 $ 1,963
Accrued wages and benefits .............................................. 616 458
Accrued payables to related parties ..................................... 66 50
Accrued clinical and preclinical testing ................................ 4,676 2,509
Other accrued liabilities ............................................... 593 621
Prepaid milestone repayable to related party ............................ 1,770 --
Deferred revenue ........................................................ 1,000 1,043
Deferred revenue - related party ........................................ 756 803
Current portion of capital lease obligations ............................ 191 204
------------ ------------
Total current liabilities ............................................. 10,840 7,651
Long-term capital lease obligations ........................................ 201 295
Prepaid milestone repayable to related party ............................... -- 1,669
Commitments
Stockholders' equity:
Convertible preferred stock, $ .01 par value; authorized: 15,000,000
shares; none outstanding ................................................ -- --
Common stock, $ .01 par value; authorized: 45,000,000 shares; issued and
outstanding: 22,153,087 shares at June 30, 1997 and 22,036,080
shares at December 31, 1996 .......................................... 222 220
Additional paid-in capital .............................................. 155,942 155,599
Deferred compensation ................................................... (2) (41)
Unrealized loss on investments .......................................... (6) (10)
Accumulated deficit ..................................................... (89,511) (75,811)
------------ ------------
Total stockholders' equity ............................................ 66,645 79,957
------------ ------------
$ 77,686 $ 89,572
============ ============
</TABLE>
See accompanying notes.
3
<PAGE> 4
NEUREX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------- -----------------------
1997 1996 1997 1996
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues from collaborative
agreements and grants:
Related parties ................. $ 379 $ 732 $ 806 $ 1,093
Other ........................... 10 1 20 6
-------- -------- -------- --------
389 733 826 1,099
Costs and expenses:
Research and development ..... 5,865 4,770 13,441 7,910
Selling, general and
administrative ............. 1,616 698 3,156 1,425
-------- -------- -------- --------
Total costs and expenses ... 7,481 5,468 16,597 9,335
-------- -------- -------- --------
Loss from operations ............ (7,092) (4,735) (15,771) (8,236)
Interest income, net ............ 1,033 807 2,071 1,053
-------- -------- -------- ========
Net loss ........................ $ (6,059) $ (3,928) $(13,700) $ (7,183)
======== ======== ======== ========
Net loss per share .............. $ (0.27) $ (0.19) $ (0.62) $ (0.37)
======== ======== ======== ========
Shares used in net loss per share
computation .................. 22,122 20,460 22,101 19,339
</TABLE>
See accompanying notes.
4
<PAGE> 5
NEUREX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
-------------------------
1997 1996
--------- ---------
<S> <C> <C>
Cash flows used for operating activities:
Net loss .................................................... $ (13,700) $ (7,183)
Adjustments to reconcile net loss to net cash used
for operating activities:
Depreciation and amortization ......................... 308 258
Noncash expenses from stock, debt and warrant issuances 52 185
Changes in assets and liabilities:
Assets ................................................ 12 125
Current liabilities ................................... (647) (684)
Accrued clinical and preclinical testing .............. 2,167 587
--------- ---------
Net cash used for operating activities ................ (11,808) (6,712)
Cash flows from investing activities:
Purchase of property and equipment .......................... (686) (311)
Purchases of short-term investments ......................... (143,389) (111,937)
Maturities of short-term investments ........................ 135,832 93,503
Payments of notes payable to stockholder .................... -- (289)
--------- ---------
Net cash used for investing activities ................ (8,243) (19,034)
Cash flows from financing activities:
Sales of common stock ....................................... 345 75,555
Payments of capital lease obligations ....................... (107) (94)
--------- ---------
Net cash provided by financing activities ............. 238 75,461
--------- ---------
Net increase (decrease) in cash and cash equivalents ........... (19,813) 49,715
Cash and cash equivalents at beginning of period ............... 40,552 2,655
--------- ---------
Cash and cash equivalents at end of period ..................... 20,739 52,370
Short-term investments at end of period ........................ 54,252 40,467
--------- ---------
Cash, cash equivalents and short-term investments at end
of period .................................................... $ 74,991 $ 92,837
========= =========
</TABLE>
See accompanying notes.
5
<PAGE> 6
NEUREX CORPORATION
NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Neurex was incorporated in Delaware on October 15, 1986 to develop
products for the treatment of diseases based upon advances in neuroscience
technology and other therapeutic areas with unmet medical needs.
Principles of consolidation
The condensed consolidated financial statements include the accounts of
Neurex and its wholly-owned subsidiary. All significant intercompany accounts
and transactions have been eliminated.
Interim financial statements
The balance sheet at December 31, 1996 has been derived from audited
financial statements at that date. The information at June 30, 1997, and for the
three and six month periods ended June 30, 1997 and 1996, is unaudited, but in
the Company's opinion, the accompanying condensed interim financial statements
include all adjustments, consisting only of normal recurring adjustments, which
the Company considers necessary to fairly state the Company's financial position
and the results of operations and cash flows. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
The accompanying condensed financial statements should be read in conjunction
with the financial statements and notes thereto included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1996. The results of the
Company's operations for any interim period are not necessarily indicative of
the results of the Company's operations for any other interim period or for a
full fiscal year.
Cash and investments
Management determines the appropriate classification of debt securities
at the time of purchase and reevaluates such designation as of each balance
sheet date. All debt securities to date have been classified as
available-for-sale. Available-for-sale securities are carried at fair value,
with the unrealized gains and losses reported in a separate component of
stockholders' equity. The cost of debt securities in this category is adjusted
for amortization of premiums and accretion of discounts to maturity. Such
amortization and accretion is included in interest income and expense. Realized
gains and losses and declines in value judged to be other-than-temporary on
available-for-sale securities are included in interest income or expense. The
cost of securities sold is based on the specific identification method. Interest
and dividends on securities classified as available-for-sale are included in
interest income.
Cash and cash equivalents consist of cash held in U.S. banks, time
deposits and other highly liquid investments with a maturity of 90 days or less
from the date of purchase. Cash equivalents are readily convertible into cash
and have insignificant interest rate risk. Short-term investments include
corporate fixed income obligations and U.S. government notes with a maturity of
90 days to three years from the date of purchase. The Company's investment
policy stipulates that a diversified portfolio be maintained and invested in a
manner appropriate for the Company's primary business operations. The policy
defines investment objectives to provide optimal investment return within
constraints that optimize safety and liquidity.
Net loss per share
Net loss per share is computed using the weighted average number of
shares of common stock outstanding. Common equivalent shares from stock options
and warrants are excluded from the computation as their effect is antidilutive.
6
<PAGE> 7
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, Earnings per Share, which is required to be adopted on
December 31, 1997. At that time, the Company will be required to change the
method currently used to compute earnings per share and to restate all prior
periods. Under the new requirements for calculating primary earnings per share,
the dilutive effect of stock options will be excluded. The impact of adoption is
expected to result in no change in primary or fully diluted earnings per share
for the three and six month periods ended June 30, 1997 and 1996.
2. AVAILABLE-FOR-SALE SECURITIES
The Company's debt securities are available-for-sale and consist
primarily of corporate debt securities of $55,492,000, and U.S. Treasury Notes
and other U.S. government securities of $16,334,000 at June 30, 1997. Short-term
investments have original maturities ranging from one to 3 years. The gross
realized gains and losses on sales of available-for-sale securities were
insignificant in the three and six month periods ended June 30, 1997.
3. RELATED PARTY TRANSACTIONS
During February 1997, the Company loaned $110,000 to an officer of the
Company to aid in the relocation of his residence. The first note totaling
$75,000 and bearing an interest rate of 5.18% per annum, will be forgiven as
compensation expense to the officer at a rate of 33% per year pending the
officers continued employment by the Company. The additional note of $35,000
bears interest at 5.18% per annum and is due in full on February 28, 2000, or
immediately if the officer's employment with the Company is terminated by him or
by the Company with cause. Both notes receivable are secured by the officers
personal equity securities account and personal real property.
4. SUBSEQUENT EVENT
On June 23, 1997, the Company signed a license agreement with The Green
Cross Corporation, a Japan based pharmaceutical company ("Green Cross"). Under
the terms of the license, the Company has granted Green Cross non-exclusive
rights to certain Pro-Urokinase patents that the Company had previously licensed
from Vascular Research Laboratories. Green Cross will pay royalties to the
Company based on a percentage of sales of products that utilize the technology
if such products are developed.
7
<PAGE> 8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW
Since commencement of operations in October 1986, Neurex has devoted
substantially all of its resources to its research and development programs. The
Company has been unprofitable since inception and expects to incur significant
and increasing losses over at least the next few years in order to continue
clinical development and to commercialize its products. As of June 30, 1997, the
Company's cumulative net loss was $89,511,000. The Company's principal sources
of working capital have been public and private equity financings, convertible
notes payable including the convertible note payable to Medtronic, Inc., a
stockholder (the " Medtronic Note"), milestone and other payments from
collaborative research and development agreements, license fees, interest
income, lease financings and research grants. The Company has not generated any
product sales.
The Company's business is subject to significant risks, including, but
not limited to the success of its research, development, commercialization,
product acceptance and capital raising efforts, uncertainties associated with
obtaining and enforcing patents important to the Company's business, the lengthy
and expensive regulatory process, and possible competition from other products.
Even if the Company's products appear promising at an early stage of
development, they may not reach the market for a number of reasons. Such reasons
include, but are not limited to, the possibilities that the potential products
will be found ineffective during clinical trials, fail to receive the necessary
regulatory approvals, be difficult to manufacture on a large scale, be
uneconomical to market or be precluded from commercialization by the proprietary
rights of third parties. Additional expenses, delays and losses of opportunities
that may arise out of these and other risks could have a material adverse impact
on the Company's financial condition, results of operations and cash flows.
This Report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E of the
Securities & Exchange Act of 1934, as amended. These statements relate and
involve inherent risks and uncertainties. The Company's actual results may
differ significantly from the results discussed in the forward-looking
statements. Factors that might cause such a difference include, but are not
limited to, the risks described in this Overview and discussed in the Company's
Annual Report on Form 10-K for the year ended December 31, 1996.
RESULTS OF OPERATIONS
Three Months Ended June 30,1997 and 1996
Revenues were $389,000 and $733,000 for the three months ended June 30,
1997 and 1996, respectively. Revenues in both periods consisted primarily of
expense reimbursements from a related party. The decrease in 1997 was due to the
timing of reimbursable activities.
Research and Development expenses increased by $1,095,000 or 23%, to
$5,865,000 for the three months ended June 30, 1997, compared to $4,770,000 in
the earlier period. The increase was due primarily to increased Phase III
clinical studies of SNX-111 for malignant and non-malignant pain, clinical and
scientific consultant expenses in preparation for the FDA Advisory Committee
Meeting held on June 26, 1997 for CORLOPAM(R) and personnel costs. The increase
in expenses for the period ended June 30, 1997, was partially offset by a
reduction of expenses associated with the research agreement with Vascular
Laboratories, Inc. of the New England Deaconess Hospital at Harvard University.
The Company expects research and development expenses to increase significantly
over the next several years.
Selling, general and administrative expenses were $1,616,000 and
$698,000 for the three months ended June 30, 1997, and 1996, respectively,
representing an increase of 132%. This increase is attributable primarily to
efforts to establish marketing capabilities as well as other personnel costs.
The Company expects selling, general and administrative expenses to increase
significantly over the next several years.
8
<PAGE> 9
Net interest income increased to $1,033,000 for the three months ended
June 30, 1997, compared to $807,000 in the earlier period. The increase was due
to the increase in cash available for investments as the result of the
completion of a public offering in May 1996.
Six Months Ended June 30,1997 and 1996
Revenues were $826,000 and $1,099,000 for the six months ended June 30,
1997 and 1996, respectively. Revenues in both periods consisted primarily of
expense reimbursements from a related party.
Research and Development expenses increased by $5,531,000 or 70%, to
$13,441,000 for the six months ended June 30, 1997, compared to $7,910,000 in
the earlier period. The increase was due primarily to increased Phase III
clinical study expenses of SNX-111 for malignant and non-malignant pain,
clinical and scientific consultant expenses in preparation for the FDA Advisory
Committee Meeting held on June 26, 1997 regarding CORLOPAM(R) and personnel
costs. The increase in expenses for the period ended June 30, 1997, was
partially offset by a reduction of expenses associated with the research
agreement with Vascular Laboratories, Inc. of the New England Deaconess Hospital
at Harvard University. The Company expects research and development expenses to
increase significantly over the next several years.
Selling, general and administrative expenses were $3,156,000 and
$1,425,000 for the six months ended June 30, 1997, and 1996, respectively,
representing an increase of 121%. This increase is attributable primarily to
establish marketing capabilities as well as personnel costs. The Company expects
selling, general and administrative expenses to increase significantly over the
next several years.
Net interest income increased to $2,071,000 for the six months ended
June 30, 1997, compared to $1,053,000 in the earlier period. The increase was
due to the increase in cash available for investments as the result of the
successful completion of a secondary offering in May 1996.
LIQUIDITY AND CAPITAL RESOURCES
For the six months ended June 30, 1997, cash expenditures for operating
activities and additions to capital equipment were $12,491,000. The Company
anticipates that these expenditures will increase significantly in future
periods.
The Company had available cash, cash equivalents and short-term
investments of $74,991,000 at June 30, 1997. Cash in excess of immediate
requirements is invested according to the Company's investment policy, which
provides guidelines with regard to liquidity and return and, wherever possible,
seeks to minimize the potential effects of concentration and degrees of risk.
The Company expects to continue to incur substantial additional
operating losses from costs related to the potential commercial product launch
activities, continuation and expansion of research and development, including
clinical studies and increased administrative activities over at least the next
few years. The Company anticipates that its existing capital resources and
interest earned thereon will enable it to maintain its current and planned
operations through the foreseeable future. However, the Company's requirements
may change depending on numerous factors, including, but not limited to, the
progress of the Company's timing and cost of potential commercial product launch
activities, research and development programs, the results of clinical studies,
the number and nature of the indications the Company pursues in clinical
studies, the timing of domestic and foreign regulatory approvals, technological
advances, determinations as to the commercial potential of the Company's
products and the status of competitive products. In addition, expenditures will
be dependent on the establishment of collaborative relationships with other
companies, the availability of financing and other factors. The Company plans to
continue to fund its short and long-term operations using a combination of
public and private equity and debt offerings, and payments from the licensing,
sublicensing and/or sales of its intellectual property rights. If such funds are
not obtained, the Company may need to delay or curtail its research and
development activities to a significant extent.
9
<PAGE> 10
PART II - OTHER INFORMATION
NEUREX CORPORATION
1. LEGAL PROCEEDINGS
None.
2. CHANGES IN SECURITIES
None.
3. DEFAULTS UPON SENIOR SECURITIES
None.
4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Submission of Matters to a Vote of Security Holders
(a) The annual meeting of stockholders of Neurex was held on May
15, 1997.
(b) The election of the following Directors nominated by the
Company for terms expiring at the 1998 annual meeting:
Paul Goddard, Robert R. Luther, Roberto Crea, Thomas L.
Barton, David L. Anderson, Gerard Burrow, John F. Chappell,
Raymond C. Egan, John W. Glynn, Howard Greene, Jr.
All directors were elected at this meeting. No other directors
continued their term after the meeting, other than those
elected at the meeting.
(c) At the annual meeting, stockholders approved the following:
(i) Election of directors:
<TABLE>
<CAPTION>
VOTES FOR VOTES WITHHELD
--------- --------------
<S> <C> <C>
Paul Goddard 16,533,753 365,617
Robert R. Luther 16,534,108 365,262
Roberto Crea 16,533,108 366,262
Thomas L. Barton 16,534,363 365,007
David L. Anderson 16,534,763 364,607
Gerard Burrow 16,534,895 364,475
John F. Chappell 16,534,995 364,375
Raymond C. Egan 16,533,395 365,975
John W. Glynn 16,534,995 364,375
Howard Greene, Jr. 16,534,995 364,375
Shares represented at the meeting: 16,899,370
</TABLE>
(ii) The ratification of the appointment of Ernst & Young
LLP as the Company's independent auditors for the
fiscal year ending December 31, 1997. There were
16,880,899 votes in favor, 6,201 votes against, and
12,270 abstentions out of the 16,899,370 shares
represented at the meeting.
(iii) An increase in the number of shares which may be
granted under the Company's 1988 Employee and
10
<PAGE> 11
Consultant Stock Option Plan of the Company to
4,311,111 from 3,311,111. There were 7,134,053 votes
in favor, 4,220,277 votes against, 20,549 abstentions
and 5,524,491 broker non-votes out of the 16,899,370
shares represented at the meeting.
(iv) The 1997 Employee Stock Purchase Plan and the
authorization of 400,000 shares of common stock for
issuance. There were 9,826,903 votes in favor,
1,564,603 votes against, 24,997 abstentions and
5,482,867 broker non-votes out of the 16,899,370
shares represented at the meeting.
5. OTHER INFORMATION
On July 10, 1997, the Company entered into a five (5) year,
non-exclusive Manufacturing and Packaging Agreement with SP Pharmaceuticals LLC,
a limited liability corporation ("SP Pharmaceuticals") to supply commercial
scale quantities of CORLOPAM(R) (the "Agreement"). The Agreement may be
automatically renewed for one-year periods unless the Company or SP
Pharmaceuticals provides the other party with six (6) months or twelve (12)
months notice, respectively, prior to the expiration of the current term. The
Company has agreed to indemnify SP Pharmaceuticals for certain liabilities.
Although the FDA has approved SP Pharmaceuticals' facility, processes and
procedures for manufacturing CORLOPAM(R), there can be no assurance that SP
Pharmaceuticals and the Company will continue to meet FDA or product
specification standards for the manufacture of CORLOPAM(R) or that the Company's
manufacturing requirements can be met in a consistent and timely manner.
6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Reports on Form 8-K
During the quarter ended June 30, 1997, the Company filed no
Current Reports on Form 8-K.
11
<PAGE> 12
NEUREX CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: August 13, 1997 Neurex Corporation
----------------------------
By: /S/ PAUL GODDARD By: /S/ JOHN VARIAN
---------------------------- -----------------------------
Paul Goddard, Ph.D. John Varian
Chairman and Chief Executive Vice President and Chief
Officer Financial Officer
12
<PAGE> 13
Exhibit Index
No. Description
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS FOR THE SIX MONTH PERIOD ENDING JUNE 30, 1997, AND IS QUALIFIED IN
ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1997
<CASH> 20,739
<SECURITIES> 54,252
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 75,253
<PP&E> 5,399
<DEPRECIATION> (3,273)
<TOTAL-ASSETS> 77,686
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 222
<OTHER-SE> 66,422
<TOTAL-LIABILITY-AND-EQUITY> 77,686
<SALES> 0
<TOTAL-REVENUES> 826
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 16,597
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 132
<INCOME-PRETAX> (15,771)
<INCOME-TAX> 0
<INCOME-CONTINUING> (15,771)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (13,700)
<EPS-PRIMARY> (0.62)
<EPS-DILUTED> (0.62)
</TABLE>
