<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________
FORM 10-Q
[X] Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended June 30, 1999
[_] 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 0-23272
---------
NPS PHARMACEUTICALS, INC.
(Exact name of Registrant as specified in its charter)
Delaware 87-0439579
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
420 Chipeta Way, Salt Lake City, Utah 84108-1256
(Address of principal executive offices) (Zip Code)
(801) 583-4939
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last
report)
________________
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 at least the past 90 days. YES [X] NO [_]
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Class Outstanding at June 30, 1999
----- ----------------------------
Common Stock $.001 par value 12,669,301
================================================================================
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION Page No.
-------
<S> <C>
Item 1. Financial Statements.
Balance Sheets......................................... 3
Statements of Operations............................... 4
Statements of Cash Flows............................... 5
Notes to Financial Statements.......................... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations......................... 8
Item 3. Quantitative and Qualitative Disclosures About
Market Risk................................................. 11
PART II OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders......... 11
SIGNATURES............................................................ 12
</TABLE>
2
<PAGE>
Item 1. Financial Statements
NPS PHARMACEUTICALS, INC.
(A Development State Company)
Balance Sheets
<TABLE>
<CAPTION>
June 30, December 31,
Assets 1999 1998
------------- -------------
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 17,336,166 $ 23,615,225
Marketable investment securities 14,794,868 19,829,253
Accounts receivable 100,000 100,000
Prepaid expenses 93,750 156,250
------------- -------------
Total current assets 32,324,784 43,700,728
Plant and equipment:
Equipment 6,570,937 6,325,455
Leasehold improvements 3,179,326 2,885,400
------------- -------------
9,750,263 9,210,855
Less accumulated depreciation and amortization 5,374,228 4,804,228
------------- -------------
Net plant and equipment 4,376,035 4,406,627
Other assets 3,267 3,267
------------- -------------
$ 36,704,086 $ 48,110,622
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of obligations under capital leases $ 24,678 $ 26,291
Current installments of long-term debt - 8,567
Accounts payable 1,347,646 1,872,610
Accrued expenses 324,893 350,853
Deferred income 420,000 675,000
------------- -------------
Total current liabilities 2,117,217 2,933,321
Obligations under capital leases, excluding current installments 19,940 31,517
------------- -------------
Total liabilities 2,137,157 2,964,838
Stockholders' equity:
Common stock 12,669 12,586
Additional paid-in capital 88,557,918 88,291,872
Accumulated other comprehensive income-
net unrealized gain on marketable investment securities 29,907 110,352
Deficit accumulated during development stage (54,033,565) (43,269,026)
------------- -------------
Net stockholders' equity 34,566,929 45,145,784
------------- -------------
$ 36,704,086 $ 48,110,622
============= =============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE>
NPS PHARMACEUTICALS, INC.
(A development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
October 22,
1986
(inception)
through
Three Months Ended June 30, Six Months Ended June 30, June 30,
------------------------------ -------------------------------
1999 1998 1999 1998 1999
------------------------------ ------------------------------- ----------------
<S> <C> <C> <C> <C> <C>
Revenues from research
and license agreements $ 915,000 $ 887,500 $ 1,830,000 $ 1,775,000 $ 53,898,179
Operating expenses:
Research and development 4,899,942 4,030,111 10,404,528 8,453,148 85,037,009
General and administrative 1,514,938 1,573,034 3,098,532 2,936,981 32,131,557
--------------- ------------- -------------- -------------- ----------------
Total operating expenses 6,414,880 5,603,145 13,503,060 11,390,129 117,168,566
--------------- ------------- -------------- -------------- ----------------
Operating loss (5,499,880) (4,715,645) (11,673,060) (9,615,129) (63,270,387)
Other income (expense):
Interest income 497,239 685,757 912,280 1,437,815 10,805,897
Interest expense (3,538) (4,262) (3,759) (13,180) (705,575)
Other - - - - 154,265
--------------- ------------- -------------- -------------- ----------------
Total other income 493,701 681,495 908,521 1,424,635 10,254,587
--------------- ------------- -------------- -------------- ----------------
Loss before taxes (5,006,179) (4,034,150) (10,764,539) (8,190,494) (53,015,800)
Income tax expense - - - - 1,017,765
--------------- ------------- -------------- -------------- ----------------
Net loss $ (5,006,179) $ (4,034,150) $ (10,764,539) $ (8,190,494) $ (54,033,565)
=============== ============= ============== ============== ================
Net loss per common and common-
equivalent share - basic and diluted $ (0.40) $ (0.33) $ (0.85) $ (0.67)
=============== ============= ============== ==============
Weighted average common and
common-equivalent shares
outstanding - basic and diluted 12,667,400 12,283,000 12,648,900 12,265,000
=============== ============= ============== ==============
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
NPS PHARMACEUTICALS, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
October 22, 1986
Six Months Ended June 30, (inception) through
------------------------------
1999 1998 June 30, 1999
-------------- ----------- -------------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $ (10,764,539) $(8,190,494) $ (54,033,565)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 570,000 520,000 6,082,804
Gain on sale of equipment (4,000) - (33,909)
Issuance of stock in lieu of cash for services 105,357 70,150 1,033,061
Amortization of deferred compensation - - 766,500
Decrease (increase) in receivables - 297,024 (100,000)
Decrease (increase) in prepaids and other assets 62,500 62,500 (100,617)
Increase (decrease) in accounts payable and
accrued expenses (550,924) 949,737 1,672,539
Increase (decrease) in deferred income (255,000) (200,000) 420,000
------------- ----------- -------------
Net cash used in operating activities (10,836,606) (6,491,083) (44,293,187)
Cash flows from investing activities:
Net sale (purchase) of marketable investment securities 4,953,940 737,067 (14,764,961)
Acquisition of equipment and leasehold improvements (539,408) (945,160) (9,825,838)
Proceeds from sale of equipment 4,000 - 1,079,621
------------- ----------- -------------
Net cash provided by (used in) investing activities 4,418,532 (208,093) (23,511,178)
Cash flows from financing activities:
Proceeds from note payable to bank - - 123,855
Proceeds from issuance of preferred stock - - 17,581,416
Proceeds from issuance of common stock 160,772 226,718 69,489,610
Proceeds from long-term debt - - 1,166,434
Principal payments on note payable to bank - - (123,855)
Principal payments under capital lease obligations (13,190) (21,673) (1,433,191)
Principal payments on long-term debt (8,567) (203,417) (1,363,738)
Repurchase of preferred stock - - (300,000)
------------- ----------- -------------
Net cash provided by financing activities 139,015 1,628 85,140,531
------------- ----------- -------------
Net increase (decrease) in cash and cash equivalents (6,279,059) (6,697,548) 17,336,166
Cash and cash equivalents at beginning of period 23,615,225 36,103,533 -
------------- ----------- -------------
Cash and cash equivalents at end of period $ 17,336,166 $29,405,985 $ 17,336,166
============= =========== =============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
NPS PHARMACEUTICALS, INC.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
October 22, 1986
Six Months Ended June 30, (inception) through
---------------------------
1999 1998 June 30, 1999
----------- ---------- -------------------
<S> <C> <C> <C>
Supplemental Disclosure of Cash Flow
Information:
Cash paid for interest $ 3,759 $ 13,180 $ 705,575
Cash paid for taxes - - 1,017,765
Supplemental Schedule of Noncash Investing and
Financing Activities:
Acquisition of equipment through incurrence of
capital lease obligations - - 1,477,809
Acquisition of leasehold improvements through
incurrence of debt - - 197,304
Issuance of preferred stock for stock subscription
receivable - - 4,000,000
Accrual of deferred offering costs - - 150,000
Change in unrealized gain on marketable investment
securities, net (80,445) - 29,907
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
(1) Basis of Presentation
The accompanying unaudited financial statements of NPS Pharmaceuticals,
Inc. ("NPS" or the "Company") reflect all adjustments (consisting solely of
normal recurring adjustments) which are, in the opinion of management, necessary
to present fairly the financial position and results of operations for the
interim periods presented. The results of operations for the three-month and
six-month periods ended June 30, 1999, are not necessarily indicative of the
results to be expected for the full year. The financial information included
herein should be read in conjunction with the Company's Form 10-K/A for 1998
which includes the audited financial statements and the notes thereto for the
year ended December 31, 1998.
(2) Comprehensive Loss
The components of the Company's comprehensive loss are as follows:
<TABLE>
<CAPTION>
Three months ended Three months ended
June 30, 1999 June 30, 1998
-------------------- --------------------
<S> <C> <C>
Net loss ................................. $ 5,006,179 $ 4,034,150
Change in unrealized gain on marketable
investment securities, net................ 115,793 ----
------------- -------------
Comprehensive loss........................ $ 5,121,972 $ 4,034,150
============= =============
</TABLE>
<TABLE>
<CAPTION>
Six months ended Six months ended
June 30, 1999 June 30, 1998
------------------- --------------------
<S> <C> <C>
Net loss.................................. $ 10,764,539 $ 8,190,494
Change in unrealized gain on marketable
investment securities, net................ 80,445 ----
------------- -------------
Comprehensive loss........................ $ 10,844,984 $ 8,190,494
============= =============
</TABLE>
(3) Loss Per Common Share
Loss per common share was the same for both the basic and diluted
calculations. Common stock equivalents (stock options outstanding) of
approximately 2.3 million and 2.1 million shares at June 30, 1999 and 1998,
respectively, that could potentially dilute basic earnings per share in the
future were not included in the computation of diluted earnings per share
because to do so would have been anti-dilutive for the periods presented.
(4) Operating Segment
The Company is engaged in the discovery and development of prescription
drugs and in its current state of development considers its operations to be a
single reportable segment. Financial results of this reportable segment are
presented in the accompanying financial statements.
7
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
THIS QUARTERLY REPORT ON FORM 10-Q CONTAINS FORWARD-LOOKING STATEMENTS THAT
INVOLVE RISKS AND UNCERTAINTIES. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM
THESE FORWARD-LOOKING STATEMENTS. FACTORS THAT COULD CAUSE OR CONTRIBUTE TO SUCH
DIFFERENCES ARE DISCUSSED IN THIS DOCUMENT AS WELL AS IN OUR ANNUAL REPORT ON
SEC-FILED FORM 10-K/A FOR THE YEAR ENDED DECEMBER 31, 1998 UNDER THE HEADING
"RISK FACTORS."
Overview
Substantially all of our resources are devoted to our research and
development programs. To date, we have not completed development of any
pharmaceutical product for sale. We have incurred cumulative losses through June
30, 1999 of $54.0 million, net of cumulative revenues from research and license
agreements of $53.9 million. We expect to incur significant operating losses
over at least the next several years as we continue our research activities and
our preclinical and clinical development activities. Substantially all our
revenues are derived from license fees, milestone payments, and research and
development support payments from licensees and these revenues fluctuate from
quarter to quarter. Accordingly, we expect that income or loss will fluctuate
from quarter to quarter, that the fluctuations may be substantial, and that
results from prior quarters may not be indicative of future operating results.
Profitability will depend in part on our ability and the ability of our
licensees, to complete product development, to obtain the required regulatory
approvals, and to manufacture and market products. We cannot assure that these
events will occur.
Results of Operations
Revenues were $915,000 for the quarter ended June 30, 1999 compared to
$887,500 for the quarter ended June 30, 1998, and $1.8 million for each of the
six-month periods ended on those dates. Most of our revenues for each of these
periods were derived from research, development, and license agreements with
SmithKline Beecham Corporation, Kirin Brewery Company, Ltd., and Amgen Inc. See
"Liquidity and Capital Resources" below for further discussion of payments that
may be received in the future under these agreements.
Research and development expenses increased to $4.9 million for the quarter
ended June 30, 1999, from $4.0 million in the comparable period of 1998, and to
$10.4 million for the six-month period ended June 30, 1999, from $8.5 million in
the comparable period of 1998. The increase in research and development expenses
was principally due to the costs incurred in 1999 for the conduct of clinical
trials for NPS 1776 which commenced in the third quarter of 1998. Development
expenses will continue to increase in the future if we choose to conduct
increasingly expensive later-stage clinical trials and if we start clinical
trials for new product candidates. We may choose not to start certain clinical
trials in order to limit such expenses and to conserve cash for future
operations. Such actions could substantially delay the development and potential
commercialization of our product candidates currently in development.
General and administrative expenses decreased to $1.5 million for the
quarter ended June 30, 1999, from $1.6 million for the quarter ended June 30,
1998, and increased to $3.1 million for the six-month period ended June 30,
1999, from $2.9 million in the comparable period of 1998. We expect that general
and administrative expenses will increase only modestly in the future and then
only in response to need for support of any increase in research and development
activities.
Interest income decreased to $497,000 for the quarter ended June 30, 1999,
from $686,000 for the comparable quarter of 1998 and to $912,000 for the six-
month period ended June 30, 1999, from $1.4 million in the comparable period of
1998. These decreases were primarily due to decreases in the average balances of
cash, cash equivalents, and marketable investment securities. We anticipate that
interest income will decrease in the future as cash is utilized for operations.
8
<PAGE>
Liquidity and Capital Resources
We have financed operations since inception primarily through collaborative
research and license agreements and the private and public placement of equity
securities. As of June 30, 1999, we had recognized $53.9 million of cumulative
revenues from payments for research support and license fees and $88.6 million
in consideration for the sale of equity securities for cash and services. Our
principal sources of liquidity are cash, cash equivalents, and marketable
investment securities which totaled $32.1 million at June 30, 1999.
We receive quarterly research and/or development support payments under our
agreements with Amgen, Kirin, and SmithKline Beecham. The payments are scheduled
to aggregate $3.8 million from June 1999 through the scheduled expiration dates
of the respective agreements in December, June, and October 2000. In addition,
SmithKline Beecham will purchase 249,000 shares of NPS common stock on November
1, 1999, at a premium to the market price, if the research agreement with
SmithKline Beecham is not terminated early. There can be no assurance that our
licensees will not terminate their respective agreements with us and thereby
terminate their obligations to make such support payments.
We could receive future payments of up to $49.0 million in the aggregate
from Amgen, Kirin, and SmithKline Beecham upon the accomplishment of specified
research and/or development milestones under the respective agreements. However,
we do not control the subject matter, timing, or resources applied by our
licensees under their respective development programs. Thus, potential receipt
of milestone payments from these licensees is largely beyond our control.
Progress under these agreements is subject to risk and each of these agreements
may be terminated before its scheduled expiration date by the respective
licensee. We cannot assure that our licensees will make any future payments,
whether as research or development milestone payments or support payments.
We have entered into sponsored research and license agreements that
obligate us to make research support payments to academic and/or commercial
research institutions. Additional payments may be required upon the
accomplishment of research milestones by the institutions, or as license fees or
royalties to maintain the licenses. As of June 30, 1999, we had a total
commitment of approximately $1.3 million for future research support payments.
We expect to enter into additional sponsored research and license agreements in
the future.
As of June 30,1999, our investment in leasehold improvements, equipment,
and furnishings was $4.4 million, net of accumulated depreciation and
amortization. Additional equipment and facilities may be needed if we increase
our internal research and development activities, a portion of which may be
financed with debt or leases.
We expect to maintain operations for at least the next 24 months utilizing
existing capital resources, including interest earned thereon, expected research
and development support payments, milestone payments, equity purchases from
licensees, and our management of expenditures. A reduction in the expected
amount of research and development support payments, milestone payments, or
equity purchases may shorten the period during which we could maintain our
operations or require us to reduce operations. Additionally, actual needs are
dependent on numerous factors, including our progress toward developing and
commercializing products. Furthermore, in the event we in-license or otherwise
acquire a product candidate, substantial expenditures for developing and
commercializing the product candidate would be required. Finally, if any
licensee terminates its agreement, we might not have sufficient capital to
complete the development and commercialization of a product in such licensee's
respective territory.
It may also become necessary to raise additional funds to support our
development and commercialization programs. We are presently seeking additional
funding for certain current programs through corporate collaborations and
licensing agreements. We may also seek additional funding through public or
private financing which could be dilutive to current shareholders. We cannot
assure that additional funding will be available on acceptable terms, if at all.
If adequate funds are not available, we may modify plans for some of our
research and development programs. Such modifications may include:
9
<PAGE>
terminating programs, delaying the conduct of further clinical trials; reducing
research activities; and/or reduction of personnel. Any of these actions may
substantially delay the development and potential commercialization of our
product candidates.
Year 2000 Assessment
We continue to assess impact of the year 2000 on our operations and
systems. We have developed assessment procedures and a plan to address
identified issues. A Y2K Task Force was assembled in the beginning of 1998 to
evaluate the potential impact of the so called "Year 2000 millennium bug" on our
operations. Since formation, the task force has monitored the evaluation of
financial, accounting, information management, scientific equipment, and
building systems. To date financial, accounting, and information management
systems review has been completed. Those systems which were not compliant have
been replaced. We continue to assess the impact of the year 2000 on our other
systems and equipment. We expect to have identified and replaced or updated all
internal systems and equipment which are not year 2000 compliant before the year
2000 to the extent necessary to enable us to continue operations. We do not
expect the cost of repair or replacement to be material to our operations. We
are also seeking assurance from primary third-party service and goods suppliers,
including financial institutions, suppliers, CROs, and other collaborative
parties that they do not expect the year 2000 matter to materially impact their
dealings with us. To date, we are not aware of any critical third-party
suppliers that will not be able to meet our needs in order to maintain
operations. We cannot assure that these third parties are using systems that are
year 2000 compliant or will address any year 2000 issues in a timely fashion.
Any year 2000 compliance problems of our suppliers, clinical research
organizations, or our licensees could have a material adverse effect on our
business, operating results, and financial condition.
Certain Business Risks
We are currently in the early stage of product development. NPS 1506, NPS
1776, and compounds for the treatment of HPT are the only product candidates in
clinical development by us or our licensees. There is no guarantee that NPS
1506, NPS 1776, or any compound for HPT will prove to be safe or effective or
that back-up or later generation compounds will be identified or taken into
clinical trials or if so identified and so tested, that the compounds will be
found to be safe, effective, or marketable. All of our remaining technologies
are in preclinical stages and will require significant additional research and
development efforts before any commercial use. Because we have granted exclusive
development, commercialization, and marketing rights in the fields of HPT and
osteoporosis, the success of these programs is primarily dependent upon the
efforts of Amgen, Kirin, and SmithKline Beecham.
Other business risks include our lack of product sales, a history of
operating losses, the uncertainty of regulatory approvals, rapid technological
change and competition, the uncertainty of protection of our patents and
proprietary technology, our dependence on third parties for manufacturing,
future capital needs and the uncertainty of additional funding, our lack of
marketing capabilities, the uncertainty of third-party reimbursement, the
uncertainty of in-licensing efforts, our dependence on key personnel and our
ability to manage growth. A more detailed discussion of factors that could cause
actual results to differ materially from those in forward-looking statements is
contained in our annual report on SEC-filed Form 10-K/A for the year ended
December 31, 1998, under the heading "Risk Factors."
10
<PAGE>
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Our primary objectives in managing our investment portfolio are to preserve
principal, maintain proper liquidity to meet operating needs, and maximize
yields. The securities held in our investment portfolio are subject to interest
rate risk. We employ established policies and procedures to manage exposure to
fluctuations in interest rates. We place our investments with high quality
issuers and limit the amount of credit exposure to any one issuer and do not use
derivative financial instruments in our investment portfolio. We maintain an
investment portfolio of various issuers, types, and maturities, which consist
mainly of fixed rate financial instruments. These securities are classified as
available-for-sale and, consequently, are recorded on the balance sheet at fair
value with unrealized gains or losses reported as a separate component in
stockholders' equity. At any time, sharp changes in interest rates can affect
the fair value of the investment portfolio and its interest earnings. Currently,
we do not hedge these interest rate exposures. After a review of our marketable
securities, we believe that in the event of a hypothetical ten percent increase
in interest rates, the resulting decrease in fair market value of our marketable
investment securities would be insignificant to the financial statements.
PART II.
OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
The Company's Annual Meeting of Stockholders was held on May 26, 1999. The
stockholders approved all proposals by the vote specified below:
Proposal One: To elect eight directors.
- ------------
<TABLE>
<CAPTION>
Nominees For Withheld
-------- ---------- --------
<S> <C> <C>
Santo J. Costa............. 11,486,094 13,156
James G. Groninger......... 11,486,094 13,156
Hunter Jackson............. 11,486,094 13,156
James U. Jensen............ 11,479,502 19,748
Skip Klein................. 11,486,094 13,156
Donald E. Kuhla............ 11,447,384 51,866
Thomas N. Parks............ 11,485,894 13,356
Peter G. Tombros........... 11,485,894 13,356
</TABLE>
Proposal Two: To approve an increase of 200,000 shares of common stock for
- -------------
issuance under two of the Company's equity incentive plans, as
follows: (a) 100,000 shares under the Employee Stock Purchase
Plan; and (b) 100,000 shares under the Non-Employee Directors'
Stock Option Plan.
For Against Abstain
--- ------- -------
10,926,884 565,391 6,975
Proposal Three: To ratify the appointment of KPMG LLP as independent auditors
- ---------------
for the Company for the 1999 fiscal year.
For Against Abstain
--- ------- -------
11,487,996 2,755 8,499
11
<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.
NPS Pharmaceuticals, Inc.
Date: August 13, 1999 By: /s/ James U. Jensen
---------------------------------------------
James U. Jensen, Vice President
Corporate Development and Legal Affairs
(Executive Officer)
Date: August 13, 1999 By: /s/ Robert K. Merrell
---------------------------------------------
Robert K. Merrell, Vice President, Finance,
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> APR-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 17,336,166
<SECURITIES> 14,794,868
<RECEIVABLES> 100,000
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 32,324,784
<PP&E> 9,750,263
<DEPRECIATION> 5,374,228
<TOTAL-ASSETS> 36,704,086
<CURRENT-LIABILITIES> 2,117,217
<BONDS> 0
0
0
<COMMON> 12,669
<OTHER-SE> 34,554,260
<TOTAL-LIABILITY-AND-EQUITY> 36,704,086
<SALES> 0
<TOTAL-REVENUES> 1,412,239
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6,414,880
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,538
<INCOME-PRETAX> (5,006,179)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,006,179)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,006,179)
<EPS-BASIC> (.40)
<EPS-DILUTED> (.40)
</TABLE>
