<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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, 1998
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. 0-21972
___________________________
INNOVIR LABORATORIES, INC.
(Exact name of Registrant as specified in its Charter)
________________________
DELAWARE 13-3536290
(State or other jurisdiction of (IRS Employer
Incorporation or organization) Identification No.)
510 EAST 73RD STREET, NEW YORK, NEW YORK 10021
(Address of principal executive offices)
Registrant's telephone number, including area code: (212) 249-1100
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 number of shares of Registrant's common stock outstanding on August 10,
1998 was 48,191,380.
________________________
<PAGE>
INNOVIR LABORATORIES, INC. AND SUBSIDIARIES
INDEX
-----
<TABLE>
<CAPTION>
<S> <C> <C>
PAGE
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets at June 30, 1998 (unaudited)
and December 31, 1997.............................. 3
Consolidated Statements of Operations (unaudited) for
the three and six months ended June 31, 1998 and
1997, and for the period from January 6, 1995
(inception) through June 30, 1998................. 4
Consolidated Statements of Changes in Stockholders'
Equity (Deficit) (unaudited) for the six months
ended June 30, 1998............................... 5
Consolidated Statements of Cash Flows (unaudited) for
the six months ended June 30, 1998 and 1997,
and for the period from January 6, 1995
(inception) through June 30,...................... 6
Notes to Consolidated Financial Statements.............. 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations............... 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings....................................... 13
Item 6. Exhibits and Reports on Form 8-K ....................... 13
SIGNATURES. ........................................................... 14
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
--------------------
INNOVIR LABORATORIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30,
1998 December 31,
(unaudited) 1997
------------------- -------------------
<S> <C> <C>
ASSETS:
Current assets:
Cash and cash equivalents $ 1,232,000 $ 2,159,000
Prepaid expenses and other current assets 150,000 184,000
------------------- -------------------
Total current assets 1,382,000 2,343,000
Fixed assets less accumulated depreciation and amortization 1,959,000 2,345,000
Goodwill, net 620,000 826,000
Other assets 218,000 220,000
------------------- -------------------
Total assets $ 4,179,000 $ 5,734,000
=================== ===================
LIABILITIES:
Current liabilities:
Accounts payable and accrued expenses $ 622,000 $ 1,274,000
Capital lease - current portion 315,000 382,000
Term note payable 94,000 130,000
------------------- -------------------
Total current liabilities 1,031,000 1,786,000
Amount due to VIMRX Pharmaceuticals Inc. -- 838,000
Term note payable 66,000 96,000
Capital leases 162,000 289,000
------------------- -------------------
Total liabilities 1,259,000 3,009,000
------------------- -------------------
STOCKHOLDERS' EQUITY:
Preferred stock, par value $.06; 15,000,000 shares authorized
Class B Convertible Preferred Stock; 2,500,000 shares designated;
280,000 shares issued and outstanding at June 30, 1998 and December
31, 1997 17,000 17,000
Common stock, par value $.013; 70,000,000 shares authorized 48,191,380
shares issued and outstanding at June 30, 1998, 34,830,925 shares
issued and outstanding at December 31, 1997 627,000 453,000
Additional paid-in capital 38,617,000 34,036,000
Cumulative translation adjustment (46,000) (40,000)
Deficit accumulated during the development stage (36,295,000) (31,741,000)
------------------- -------------------
Total stockholders' equity 2,920,000 2,725,000
------------------- -------------------
Total liabilities and stockholders' equity $ 4,179,000 $ 5,734,000
=================== ===================
</TABLE>
The accompanying notes are an integral part of the financial statements
3
<PAGE>
INNOVIR LABORATORIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Three and Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
Three months ended June 30, Six months ended June 30,
---------------------------------- ----------------------------------
1998 1997 1998 1997
---------------------------------- ----------------------------------
<S> <C> <C> <C> <C>
Operating expenses:
Research and development $1,658,000 $ 1,671,000 $ 3,375,000 $ 3,334,000
Purchased in process research and
development -- -- -- --
General and administrative 596,000 770,000 934,000 1,537,000
Amortization of Goodwill 103,000 103,000 206,000 206,000
----------- ------------ ------------ ------------
2,357,000 2,544,000 4,515,000 5,077,000
----------- ------------ ------------ ------------
Other (income) expenses:
Interest income (2,000) (58,000) (14,000) (131,000)
Interest expense 45,000 48,000 72,000 85,000
Other-net (9,000) -- (19,000) --
----------- ------------ ------------ ------------
34,000 (10,000) 39,000 (46,000)
----------- ------------ ------------ ------------
Net (loss) $(2,391,000) $ (2,534,000) $ (4,554,000) $ (5,031,000)
=========== ============ ============ ============
Loss-per-share data:
Basic loss per share $ (0.06) $ (0.14) $ (0.12) $ (0.28)
----------- ------------ ------------ ------------
Weighted average number of common shares
outstanding 38,609,303 18,051,230 36,875,795 18,053,162
=========== ============ ============ ============
Diluted loss per share $ (0.06) $ (0.14) $ (0.12) $ (0.28)
----------- ------------ ------------ ------------
Weighted average number of shares of
common stock and diluted equivalent
shares outstanding 38,609,303 18,031,230 36,875,795 18,053,160
=========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
PERIOD
JANUARY 6, 1995
(INCEPTION)
THROUGH
JUNE 30, 1998
--------------------
<S> <C>
Operating expenses:
Research and development $ 13,154,000
Purchased in process research and
development 17,374,000
General and administrative 5,383,000
Amortization of Goodwill 618,000
------------
$ 36,529,000
------------
Other (income) expenses:
Interest income (163,000)
Interest expense 226,000
Other-net (297,000)
-------------
(234,000)
-------------
Net (loss) $ (36,295,000)
=============
</TABLE>
The accompanying notes are an integral part of the financial statements
4
<PAGE>
INNOVIR LABORATORIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) (UNAUDITED)
For the Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
DEFICIT
CLASS B CONVERTIBLE ACCUMULATED
PREFERRED STOCK COMMON STOCK ADDITIONAL CUMULATIVE DURING THE
-------------------------- ----------------------- PAID-IN TRANSLATION DEVELOPMENT
SHARES AMOUNT SHARES AMOUNT CAPITAL ADJUSTMENT STAGE
------------- ----------- ----------- ---------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at December 31,
1997 280,000 $17,000 34,831,000 $453,000 $34,036,000 $(40,000) $(31,741,000)
Sale of common stock 13,360,000 174,000 4,555,000
Compensation expense
incurred in connection
with the issuance of
stock options 26,000
Cumulative transaction
adjustment (6,000)
Net loss for the six
months ended June
31, 1998 (4,554,000)
-------------- ------- ---------- --------- ----------- -------- ------------
Balance at June 30, 1998 280,000 $17,000 48,191,000 $627,000 $38,617,000 $(46,000) $(36,295,000)
============== ======== =========== ========= =========== ========= ============
</TABLE>
<TABLE>
<CAPTION>
TOTAL
------------
<S> <C>
Balance at December 31,
1997 $ 2,725,000
Sale of common stock 4,729,000
Compensation expense
incurred in connection
with the issuance of
stock options 26,000
Cumulative transaction
adjustment (6,000)
Net loss for the six
months ended June
31, 1998 (4,554,000)
------------
Balance at June 30, 1998 $ 2,920,000
============
</TABLE>
5
<PAGE>
INNOVIR LABORATORIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
Consolidated Statements of Cash Flows (unaudited)
FOR THE SIX MONTHS ENDED JUNE 30, 1998
<TABLE>
<CAPTION>
PERIOD
JANUARY 6, 1995
(INCEPTION)
SIX MONTHS ENDED THROUGH
JUNE 30, JUNE 30,
1998 1997 1998
------------------- ------------ ---------------
<S> <C> <C> <C>
Cash flows from operating activities:
Net (loss) $ (4,554,000) $ (5,031,000) $ (36,295,000)
Adjustments to reconcile net (loss) to net cash (used in)
operating activities:
Depreciation 409,000 287,000 1,354,000
Amortization of goodwill 206,000 206,000 618,000
Purchased in process research and development -- -- 17,374,000
Provision for losses on notes receivable -- -- 85,000
Amortization of unearned compensation -- 181,000 388,000
Non-cash compensation 26,000 40,000 104,000
Changes in operating assets and liabilities:
Decrease (increase) in other current assets 31,000 57,000 (16,000)
Decrease in other assets 3,000 15,000 2,000
Decrease in accounts payable and accrued expenses (716,000) (200,000) (173,000)
------------------- ------------ -------------
Net cash (used in) operating activities (4,595,000) (4,445,000) (16,559,000)
------------------- ------------ -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment (31,000) (587,000) (1,349,000)
Cash acquired in acquisitions -- -- 3,532,000
------------------- ------------ -------------
Net cash provided by (used in) investing activities (31,000) (587,000) 2,183,000
------------------- ------------ -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sales of common stock 4,729,000 14,000 8,755,000
Advances and contributed capital from VIMRX Pharmaceuticals
Inc. (838,000) 670,000 7,400,000
Costs incurred in connection with issuance of equity
securities -- (24,000) (24,000)
Repayment of capital leases (194,000) (176,000) (584,000)
------------------- ------------ -------------
Net cash provided by financing activities 3,697,000 484,000 15,547,000
------------------- ------------ -------------
Effect of exchange rate changes on cash 2,000 (57,000) 61,000
------------------- ------------ -------------
Net increase (decrease) in cash and cash equivalents (927,000) (4,605,000) 1,232,000
Cash and cash equivalents at beginning of period 2,159,000 6,412,000 --
------------------- ------------ -------------
Cash and cash equivalents at end of period $ 1,232,000 $ 1,807,000 $ 1,232,000
=================== ============ =============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest $ 72,000 $ 85,000 $ 201,000
=================== ============ =============
</TABLE>
The accompanying notes are an integral part of the financial statements
6
<PAGE>
INNOVIR LABORATORIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) The consolidated financial statements of Innovir Laboratories, Inc. and
Subsidiaries (the "Company") reflect all adjustments, consisting only of
normal recurring accruals, which are, in the opinion of the Company's
management, necessary for a fair presentation of the Company's results of
operations for the respective periods presented. Operating results for any
interim period are not necessarily indicative of results for a full year.
These notes do not include all the information required by generally
accepted accounting principles. The interim consolidated financial
statements should be read in conjunction with the audited financial
statements included in the Company's Annual Report on Form 10-K for the
year ended December 31, 1997.
(2) Contingencies: The Company may be considered to be in violation of the
terms of its office and laboratory sublease by not obtaining the required
approval from the owner of the property prior to the consummation of the
transactions with VIMRX whereby VIMRX acquired a majority holding in
Innovir Laboratories, Inc. ("Innovir") and Innovir acquired all of the
issued and outstanding shares of VIMRX Holdings, Ltd. ("VHL"), a wholly
owned subsidiary of VIMRX, in December 1996. In addition, the owner of the
property has alleged, and the Company's sublandlord disputes, that the
sublandlord may also be in breach of its lease with the owner of the
property. If the sublandlord is evicted, the Company would lose its right
to occupy its current space. While the Company believes these matters may
be resolved without a materially adverse effect on the Company's business
or financial position, no assurance can be given as to the ultimate
outcome.
The Company has been served with a complaint in the United States
Bankruptcy Court for the Southern Disctrict of New York by the Trustee for
the Liquidation of the Business of A.R. Baron & Co., Inc. The complaint
alleges that when the now defunct A.R. Baron repaid to Innovir a loan of
$400,000 in February 1996, that it constituted a preference and fraudulent
conveyance. The Trustee is seeking return of the funds. Innovir intends to
contest the allegations in the complaint vigorously.
(3) NASDAQ recently notified the Company that it was not in compliance with the
new minimum bid requirement of at least $1.00 per share. The Company is now
engaged in review procedures with NASDAQ. If after these procedures, the
Company does not receive an exemption form the minimum bid requirement or
has not come into compliance with the requirement, the Company's securities
will be delisted from the NASDAQ SmallCap Market and trading, if any, is
expected to be on the OTC Bulletin Board.
7
<PAGE>
INNOVIR LABORATORIES, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
(4) Effective January 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income". This
Statement requires that all items recognized under accounting standards as
components of comprehensive earnings be reported in an annual financial
statement that is displayed with the same prominence as other annual
financial statements. This Statement also requires that an entity classify
items of other comprehensive earnings by their nature in an annual
financial statement. For example, other comprehensive earnings may include
foreign currency translation adjustments, minimum pension liability
adjustments and unrealized gains and losses on marketable securities
classified as available-for-sale. Annual financial statement for prior
periods will be reclassified, as required. The Company's total
comprehensive earnings were as follows.
<TABLE>
<CAPTION>
Six Months Ended June 30,
----------------------------------------------------------
1998 1997
----------------------- -----------------------
<S> <C> <C>
Net Loss $4,554,000 $5,031,000
Foreign currency translation 6,000 57,000
----------------------- -----------------------
Comprehensive loss $4,560,000 $5,088,000
======================= =======================
</TABLE>
In 1997, the Company adopted Statement of Financial Accounting Standards
No. 128, "Earnings Per Share". Adoption of this Statement, which requires
restatement of previously reported amounts, had no impact on prior year
loss per share. Basic loss per share is calculated by dividing loss by the
weighted average number of common shares outstanding during the period. For
diluted loss per share, net loss is divided by the weighted average number
of common and potentially diluted shares outstanding during the period.
Potentially dilutive common shares consist of stock options and warrants
using the treasury stock method, but are excluded if their effect is
antidilutive.
(5) Restructuring: Innovir is restructuring the research and development of
its ribozyme-based technology, now being developed primarily in its
European operations in Gottingen, Germany and Cambridge, England. Innovir
is seeking partners or investors in the ribozyme-based technology. If new
investors are not found, management intends to close the two sites and
consolidate research into the New York operations.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
---------------------------------------------------------------
Results of Operations
---------------------
This report contains forward-looking statements which involve risks and
uncertainties. Such statements are subject to certain factors which may
cause the Company's plans to differ. Factors that may cause such
differences include, but are not limited to, the progress of the Company's
research and development programs, the Company's ability to obtain
additional funds and remain on NASDAQ, the Company's ability to compete
successfully, the Company's ability to attract and retain qualified
personnel, the Company's ability to successfully enter into collaborations
with third parties, the Company's ability to enter into and progress in
clinical trials, the time and costs involved in obtaining regulatory
approvals, the costs involved in obtaining and enforcing patents and any
necessary licenses, the Company's ability to establish development and
commercialization relationships, the cost of manufacturing, and those
other risks discussed under the heading Risk Factors included in the
Company's Form 10-K Annual Report.
The following discussion and analysis should be read in conjunction with
the financial statements and notes thereto contained herein and the
Company's Annual Report on Form 10-K for the year ended December 31, 1997.
BACKGROUND
On December 23, 1996, Innovir, VIMRX and certain stockholders of Innovir
("The Aries Funds") consummated a transaction (the "Transaction") whereby
VIMRX acquired 68% of the outstanding stock of Innovir and Innovir
acquired all of the issued and outstanding shares of VHL, a wholly-owned
subsidiary of VIMRX. Innovir's acquisition of VHL and VIMRX's partial
acquisition of Innovir have been accounted for as a purchase in accordance
with APB Opinion No. 16, Business Combinations and Emerging Issues Task
Force Issue No. 90-13, Accounting for Simultaneous Common Control Mergers
("EITF No. 90-13"). The application of APB No. 16 and EITF No. 90-13
requires that the Transaction be accounted for as a reverse acquisition
and accordingly, for accounting purposes, (i) VHL is deemed to be the
acquirer and surviving entity, (ii) because Innovir is deemed to be the
legal acquirer, VHL's historic capital accounts have been retroactively
restated (recapitalized) to reflect Innovir's capital accounts and the
equivalent number of shares received by VIMRX in the Transaction, (iii)
Innovir has fair valued its assets and liabilities to the extent acquired
by VIMRX (68%) and (iv) the assets and liabilities of VHL are carried at
VHL's historic cost. Since VHL is deemed to be the surviving entity, the
statement of operations includes the operations of VHL for the period from
January 6, 1995 (inception). The operations of Innovir are included only
since the date of acquisition, i.e., from December 23, 1996. For
accounting purposes, VHL assumed the name of Innovir Laboratories, Inc.
and Subsidiaries, and, for purposes of this Quarterly Report, all
references to the "Company" shall mean the consolidated entity consisting
of Innovir, VHL and subsidiaries.
9
<PAGE>
On February 11, 1997, Innovir elected to change its fiscal year end date
from September 30 to December 31 of each year, effective January 1, 1997.
This change was made to conform Innovir's fiscal year end date with that
of VHL.
RESULTS OF OPERATIONS
Since its inception, substantially all of the Company's resources have
been applied to research and development, patents and licensing and other
general and administrative matters. The Company has no commercially
viable therapeutic products and does not anticipate having any for several
years. The Company is developing technology to be used as a research tool
to facilitate determination of gene function and to validate drug targets.
The Company has had no operating revenues to date and has sustained net
losses since its inception. The Company expects losses to continue for
the foreseeable future.
Three Month Period Ended June 30, 1998 vs. June 30, 1997
Research and development expenses decreased by $13,000 or 1% due to
reduced spending for research operations by the Company in Germany offset
by increases in the U.K. operation.
General and administrative expenses decreased $174,000 or 23% due to a
decrease in insurance, salaries and amortization of options and warrant
expenses, offset by an increase in legal expenses related to patent
prosecution.
Amortization of goodwill relates to the asset recorded in the transaction
with VIMRX, described under "Background" above.
Interest income decreased $56,000 or 97% due principally to the decrease
in the average cash balance for the three month period ended June 30, 1998
as compared to the same period in 1997.
Interest expense decreased due to the paydown of equipment leases.
Six Month Period Ended June 30, 1998 vs. June 30, 1997
Research and development expenses increased by $41,000 or 1% due to costs
related to restructuring the Companies European operations offset by
decreases in laboratory supplies and research agreements.
General and administrative expenses decreased by $603,000 or 39% due to
decreases in salaries, benefits, insurance, professional fees,
amortization of options and warrants and various other expenses.
10
<PAGE>
Interest income decreased $117,000 or 89% due principally to the decrease
in the average cash balance for the comparable periods.
Interest expense decreased due to the paydown of equipment leases.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1998, the Company had cash and cash equivalents of
$1,232,000 as compared to $2,159,000 at December 31, 1997. The Company
had working capital of $351,000 at June 30, 1998 as compared to working
capital of $557,000 at December 31, 1997. The decrease in cash and
working capital positions resulted principally from cash used in
operations ($4,595,000), purchases of equipment ($31,000), pay down of
capital leases ($194,000) and paydown of advances and contributed capital
from VIMRX ($838,000) offset by sales of common stock (approximately
$4,729,000).
Except for payments on existing capital leases, planned operations for
1998 currently contemplate no additional expenditures for capital assets.
Pursuant to an agreement, dated December 31, 1997, between the Company and
VIMRX (the "VIMRX Agreement"), the Company sold to VIMRX an aggregate of
14,467,358 shares of the Company's Common Stock for an aggregate purchase
price of $5,570,000. In addition, the Company issued to VIMRX a warrant
to purchase 1,000,000 shares of Common Stock at an exercise price per
share of $0.394. Pursuant to the VIMRX Agreement, the Company may require,
from time to time until December 31, 1999, that VIMRX purchase from the
Company up to $1,430,000 of Common Stock at a purchase price per share
equal to the lower of (i) the average closing bid price per share of
Common Stock during the preceding fifteen (15) days and (ii) $1.30;
provided, however, that VIMRX will not be required to so purchase any
Common Stock in the event it ceases to own at least 50% of the outstanding
shares of Common Stock. In the six month period ended June 30, 1998, the
Company sold 9,386,922 shares to VIMRX under this agreement for an
aggregate amount of $3,570,000.
On June 30, 1998, Innovir sold 3,973,533 shares of Common Stock at the
closing market price for the forgiveness of $1,158,947 of advances and
payables to VIMRX.
On August 12, 1998, the Company's Class A and B warrants expired according
to the terms of the warrant agreements.
The Company expects to incur substantial expenditures in the foreseeable
future for the research and development and commercialization of its
proposed products. As of June 30, 1998, the Company had cash and cash
equivalents of approximately $1,232,000. Based on current projections,
which are subject to change (such change may be
11
<PAGE>
significant), the Company's management believes that this, along with the
funds available under the VIMRX Agreement, will be sufficient to fund its
operations to approximately the end of this year. VIMRX has indicated that
it may not continue to provide funding to the Company subsequent to VIMRX
existing commitment pursuant to the VIMRX agreement. Therefore, at or
around the end of 1998, the Company may require additional funds to remain
in existence. The Company is currently exploring its strategic
alternatives which may involve the sale of all or substantially all the
stock or assets of the Company, the sale, licensing or spinning off of
certain of the Company's technologies, the merger of the Company with
another entity, or other alternative restructuring. In addition, the
Company is seeking to enter into collaborative or other arrangements with
corporate sources which may provide sources of financing. There can be no
assurance that any additional financing can be obtained on terms
reasonable to the Company, if at all. In the event the Company is unable
to raise additional capital, planned operations would need to be scaled
back or discontinued.
The Company is developing and implementing a plan to address the Year 2000
issue. Management does not believe that the associated costs will be
material to the statement of operations.
12
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
On July 2, 1998, an action was commenced against the Company in the
United States Bankruptcy Court for the Southern District of New York entitled
James W. Giddens, Trustee for the Liquidation of the Business of A.R. Baron &
Co., Inc. v. Innovir Laboratories, Inc. The complaint alleges that when the
now defunct A.R. Baron repaid to Innovir a loan of $400,000 in February 1996,
it constituted a preference and fraudulent conveyance. The Trustee is seeking
return of the funds. The Company intends to contest the allegations in the
complaint vigorously.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits:
---------
27 Financial Data Schedule.
(b) Reports on Form 8-K:
-------------------
None
All other Items of this report are inapplicable.
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.
August 14, 1998
Innovir Laboratories, Inc.
By: /s/ THOMAS R. SHARPE
---------------------------------------------
Name: Thomas R. Sharpe, Ph.D.
Title: President and Chief Executive Officer
(Principal executive officer)
By: /s/ Francis M. O'Connell
---------------------------------------------
Name: Francis M. O'Connell
Title: Chief Financial Officer
(Principal financial and accounting
officer)
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C> <C>
<PERIOD-TYPE> 6-MOS 6-MOS
<FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997
<PERIOD-END> JUN-30-1998 JUN-30-1997
<CASH> $1,232,000 $1,807,000
<SECURITIES> 0 0
<RECEIVABLES> 0 0
<ALLOWANCES> 0 0
<INVENTORY> 0 0
<CURRENT-ASSETS> 1,382,000 1,953,000
<PP&E> 4,383,000 4,370,000
<DEPRECIATION> 2,424,000 1,565,000
<TOTAL-ASSETS> 4,179,000 6,022,000
<CURRENT-LIABILITIES> 1,031,000 1,647,000
<BONDS> 0 0
0 0
17,000 538,000
<COMMON> 627,000 235,000
<OTHER-SE> 2,276,000 2,970,000
<TOTAL-LIABILITY-AND-EQUITY> 4,179,000 6,022,000
<SALES> 0 0
<TOTAL-REVENUES> 0 0
<CGS> 0 0
<TOTAL-COSTS> 4,515,000 5,077,000
<OTHER-EXPENSES> (33,000) 0
<LOSS-PROVISION> 0 0
<INTEREST-EXPENSE> 72,000 85,000
<INCOME-PRETAX> (4,554,000) (5,031,000)
<INCOME-TAX> 0 0
<INCOME-CONTINUING> 0 0
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> (4,554,000) (5,031,000)
<EPS-PRIMARY> (0.12) (0.28)
<EPS-DILUTED> (0.12) (0.28)
</TABLE>
