FORM 10-QSB
UNITED STATES
SECURITY AND EXCHANGE COMMISSION
Washington, D.C. 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 September 30, 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 0-23280
NEUROBIOLOGICAL TECHNOLOGIES, INC.
(exact name of small business issuer as specified in its charter)
Delaware 94-3049219
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
1387 Marina Way South
Richmond, California 94804
(Address of principal executive offices)
(510) 215-8000
(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 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 [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of the common stock, as of the latest practical date.
Common Stock, $.001 Par Value -6,540,314- shares outstanding as of
September 30, 1997
Transitional Small Business Disclosure format Yes [ ] No [X]
<PAGE>
INDEX
NEUROBIOLOGICAL TECHNOLOGIES, INC.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
Condensed Balance Sheets -- September 30, 1997 and June 30, 1997
Condensed Statements of Operations -- Three months ended September 30,
1997 and 1996; Period from August 27, 1987 (inception) through
September 30, 1997
Condensed Statements of Cash Flows -- Three months ended September 30,
1997 and 1996; Period from August 27, 1987 (inception) through
September 30, 1997
Notes to Condensed Financial Statements -- September 30, 1997
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
SIGNATURES
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (Unaudited)
<TABLE>
NEUROBIOLOGICAL TECHNOLOGIES, INC.
(A development stage company)
CONDENSED BALANCE SHEETS
(Unaudited)
<CAPTION>
September 30, June 30,
1997 1997
------------- -------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 2,337,117 $ 1,278,402
Short-term investments -- 2,559,911
Prepaid expenses and other 114,077 171,436
------------ ------------
Total current assets 2,451,194 4,009,749
Property and equipment, net 165,866 197,355
------------ ------------
$ 2,617,060 $ 4,207,104
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 682,398 $ 996,556
Stockholders' equity:
Common stock, $.001 par value, 25,000,000 shares
authorized, 6,540,314 outstanding at September 30, 1997
and June 30, 1997 29,382,471 29,382,471
Deficit accumulated during development stage (27,447,809) (26,171,923)
------------ ------------
Total stockholders' equity 1,934,662 3,210,548
------------ ------------
$ 2,617,060 $ 4,207,104
============ ============
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
<TABLE>
NEUROBIOLOGICAL TECHNOLOGIES, INC.
(A development stage company)
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three months ended Period from
September 30, August 27, 1987
------------------------------------- (inception) through
1997 1996 September 30, 1997
------------ ------------ -------------------
<S> <C> <C> <C>
REVENUES
Interest income $ 43,165 $ 138,406 $ 2,075,335
Grant income -- -- 49,900
------------ ------------ ------------
Total revenue 43,165 138,406 2,125,235
EXPENSES
Research and development 697,584 1,431,842 20,960,319
General and administrative 621,467 440,477 8,612,725
------------ ------------ ------------
Total expenses 1,319,051 1,872,319 29,573,044
------------ ------------ ------------
NET LOSS $ (1,275,886) $ (1,733,913) $(27,447,809)
============ ============ ============
NET LOSS PER SHARE $ (0.20) $ (0.27)
============ ============
Shares used in net loss
per share calculation 6,540,314 6,515,483
============ ============
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
<TABLE>
NEUROBIOLOGICAL TECHNOLOGIES, INC.
(A development stage company)
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Three months ended Period from
September 30, August 27, 1987
---------------------------------- (inception) through
1997 1996 September 30, 1997
------------ ------------ -------------------
<S> <C> <C> <C>
OPERATING ACTIVITIES:
Net loss $ (1,275,886) $ (1,733,913) $(27,447,809)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and amortization 31,489 32,632 499,501
Issuance of common stock and warrants
for license rights and services -- -- 99,275
Changes in assets and liabilities:
Prepaid expenses and other 57,359 170,094 (114,077)
Accounts payable and accrued expenses (314,158) (253,156) 682,398
------------ ------------ ------------
Net cash used in operating activities (1,501,196) (1,784,343) (26,280,712)
------------ ------------ ------------
INVESTING ACTIVITIES:
Purchase of investments -- (930,854) (33,839,678)
Sale of investments 2,559,911 2,517,955 33,839,678
Purchases of property and equipment -- (4,518) (382,305)
Additions to patents and licenses -- -- (283,062)
------------ ------------ ------------
Net cash (used in) provided by
investing activities 2,559,911 1,582,583 (665,367)
FINANCING ACTIVITIES:
Proceeds of short-term borrowings -- -- 235,000
Issuance of common stock -- 10,331 22,056,114
Issuance of preferred stock -- -- 6,992,082
------------ ------------ ------------
Net cash provided by financing activities -- 10,331 29,283,196
Increase (decrease) in cash and
cash equivalents 1,058,715 (191,429) 2,337,117
Cash and equivalents at beginning of period 1,278,402 4,602,815 --
============ ============ ============
Cash and equivalents at end of period $ 2,337,117 $ 4,411,386 $ 2,337,117
============ ============ ============
<FN>
See accompanying notes.
</FN>
</TABLE>
<PAGE>
NEUROBIOLOGICAL TECHNOLOGIES, INC.
(A development stage company)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
September 30, 1997
NOTE 1-BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying unaudited condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310(b)
of Regulation S-B. Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, all adjustments (consisting
of normal recurring adjustments) considered necessary for a fair presentation
have been included. Operating results for the three month period ended September
30, 1997 are not necessarily indicative of the results that may be expected for
the year ended June 30, 1998. For further information, refer to the financial
statements and footnotes thereto included in the Company's Form 10-KSB for the
fiscal year ended June 30, 1997.
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 because their effect is
antidilutive.
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. The Company does not expect this change to have an impact on the
earnings per share.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW
Neurobiological Technologies, Inc. ("NTI" or the "Company") is an
emerging drug development company focused on the clinical testing and regulatory
approval of neuroscience drugs. NTI's strategy is to in-license and develop
early stage drug candidates that target major medical needs and which can be
rapidly commercialized. Drawing upon the experience of the Company's management
in drug discovery,
<PAGE>
development, and clinical testing, NTI's efforts are focused on developing its
licensed drug candidates for commercialization.
NTI currently has two product candidates in Phase II clinical trials.
The Company is developing Memantine, an orally available NMDA receptor
antagonist, which has potential as a neuroprotective agent for a broad range of
neurodegenerative conditions. These conditions may include stroke, traumatic
brain injury, neuropathic pain, dementia and Alzheimer's disease. The Company is
also developing Xerecept(TM), a synthetic preparation of the human peptide
Corticotropin-Releasing Factor, which the Company believes has novel anti-edema
properties. Xerecept's potential to prevent swelling of brain tissue has been
demonstrated in preclinical studies and pilot human clinical trials. Significant
additional preclinical testing and clinical testing will be required prior to
submission of any regulatory application for the commercial use of these
products. There can be no assurance that future clinical trials will demonstrate
an adequate level of safety or efficacy for commercialization.
Since 1987 when NTI was founded, the Company has applied a majority of
its resources to its research and development programs. The Company is a
development stage company, has not received any revenue from the sale of
products, and does not anticipate receiving revenue from the sale of products in
the near future. The Company has incurred losses since its inception and expects
to incur substantial, increasing losses due to ongoing and planned research and
development efforts. As part of the strategic planning process, the Company has
limited expenditures to only two drug candidates. The Company anticipates that
it will be able to meet its capital and operational requirements through the
quarterly period ending December 31, 1997.
RESULTS OF OPERATIONS
The Company's research and development expenses decreased to
approximately $698,000 in the three months ended September 30, 1997 from
approximately $1,432,000 in the same period of the prior year. The decrease was
primarily due to the Company narrowing clinical focus to the development of two
product candidates. General and administrative expenses increased to
approximately $621,000 in the three months ended September 30, 1997 from
$440,000 in the three months ended September 30, 1996. The increase was
primarily due to increased legal expenses and an increase in expenditures
related to the retention of an investor relations firm and other activities
relating to seeking financing and corporate partnerships in the three months
ended September 30, 1997 as compared to the same period of the prior year.
Interest income decreased to $43,000 in the three months ended September 30,
1997 from $138,000 in the same period of the prior year primarily due to lower
average cash balances.
LIQUIDITY AND CAPITAL RESOURCES
The Company expects its cash requirements to increase significantly in
future periods. Future cash requirements will depend on numerous factors,
including: the in-licensing of potential drug candidates; the progress on
development programs; the time
<PAGE>
and costs involved in seeking to obtain regulatory approval; the ability of the
Company to establish collaborative arrangements; product commercialization
activities; and the acquisition of manufacturing or laboratory facilities. As
part of the strategic planning process, the Company has limited expenditures to
only two drug candidates.
From inception through September 30, 1997, the Company has raised a
total of $29.4 million in net proceeds from the sale of common and preferred
stock.
The Company's cash requirements over the last six months have averaged
$525,000 per month. The Company will need to raise substantial additional
capital to fund subsequent operations. The Company believes that its available
cash and cash equivalents of $2.3 million as of September 30, 1997 are adequate
to fund its operations through the quarterly period ending December 31, 1997.
The Company intends to seek such funding through public or private financings,
arrangements with corporate partners, or from other sources. However there can
be no assurance that funding will be available on favorable terms from any of
these sources, if at all. If such funding is unavailable, the Company will be
required to consider the license or sale of certain of its assets and
technology, delay or curtailment of its development programs, and reductions in
workforce and other restructuring alternatives, including discontinuing
operations or liquidation.
RISKS ASSOCIATED WITH PRODUCT DEVELOPMENT
Except for the historical information contained herein, this report
contains forward looking statements that involve risks and uncertainties. The
Company's actual results could differ materially from those discussed in this
report. Factors that could cause or contribute to such differences include, but
are not limited to, those discussed below. The forward looking statements in
this report speak only as of the date of this report. The Company disclaims,
however, any intent or obligation to update these forward looking statements.
FUTURE CAPITAL NEEDS; UNCERTAINTY OF ADDITIONAL FUNDING
The Company anticipates that it will be able to meet its capital and
operational requirements through the quarterly period ending December 31, 1997.
The Company will require substantial additional funds to conduct the research
and development and preclinical and clinical testing of its potential products
and to market any products that may be developed. Although the Company currently
plans to contract with third parties to manufacture clinical and commercial
scale quantities of its potential products, to the extent the Company
subsequently determines to establish its own manufacturing facilities, the
Company will require substantial additional capital. The Company's capital
requirements depend on numerous factors, including the progress of its research,
preclinical development and clinical development programs, the time and cost
involved in obtaining regulatory approvals, the cost of filing, prosecuting,
defending, and enforcing patent claims and other intellectual property rights,
competing technological and market developments, changes in the Company's
existing research relationships, the ability of the Company to establish
collaborative relationships, the development of commercialization
<PAGE>
activities and arrangements and the purchase of additional capital equipment.
Thereafter, the Company will need to raise substantial additional capital to
fund its operations. The Company intends to seek such additional funding through
public or private financings, collaborative or other arrangements with corporate
partners, or from other sources. There can be no assurance that additional
financing will be available from any of these sources, or, if available, that it
will be available on acceptable terms. The Company may seek to raise additional
funds whenever market conditions so permit. If additional funds are raised by
issuing equity securities, further significant dilution to existing shareholders
may result. If adequate funds are not available, the Company may be required to
delay, scale back, or eliminate one or more of its research, discovery, or
development projects or to obtain funds through entering into arrangements with
collaborative partners or others that may require the Company to relinquish
rights to certain of its technologies, product candidates or products that the
Company would not otherwise relinquish.
GOING CONCERN DISCLOSURE AND REPORT OF INDEPENDENT AUDITORS
The report of the Company's independent auditors with respect to the
Company's financial statements included in Form 10-KSB for the year ended June
30, 1997 includes a "going concern" modification, indicating that the Company's
recurring losses and deficits in working capital and stockholders' equity raise
substantial doubt about the Company's ability to continue as a going concern.
Additionally, such reports state that the financial statements do not include
any adjustments that may result from the outcome of this uncertainty. See
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and "Notes to Condensed Financial Statements."
POSSIBLE DELISTING OF STOCK
As of June 30, 1997, the Company failed to satisfy the continued
listing requirements of the Nasdaq National Market. If the Company were to be
delisted from the Nasdaq National Market, it could adversely affect the trading
volume and price volatility of the Company's common stock.
EARLY STAGE OF DEVELOPMENT, TECHNOLOGICAL UNCERTAINTY
NTI is at an early stage of development and currently has no marketed
products. All of the Company's potential products are in research, preclinical
development or clinical development, and no revenues have been generated from
product sales. To date, most of the Company's resources have been dedicated to
the research and development of selected candidate pharmaceutical products, and
there can be no assurance that the Company will be able to develop a candidate
product that will receive required regulatory approvals or be successfully
commercialized. The Company is currently evaluating two potential products in
early stage clinical trials. Results attained in preclinical studies and in such
early stage clinical trials are not necessarily indicative of results that will
be obtained upon further human clinical testing. The potential products
currently under development by the Company will require significant additional
clinical testing prior to submission of any regulatory application for
commercial use. Such activities will require substantial resources and will
necessitate the raising of substantial additional capital.
<PAGE>
The Company's potential products are subject to the risks of failure
inherent in the development of products based on new technologies. These risks
include the possibilities that any or all of the potential products will be
found to be unsafe, ineffective or toxic, or otherwise fail to receive necessary
regulatory clearances; that the products, if safe and effective, will be
difficult to manufacture on a large scale or uneconomical to market; that
proprietary rights of third parties will preclude the Company from marketing
products; or that third parties market or will market superior or equivalent
products. There can be no assurance that the Company's development activities
will result in any commercially viable products. The Company does not expect to
be able to commercialize any products for a number of years, if at all.
DEPENDENCE OF THIRD PARTIES
The Company has only limited internal resources and thus the Company
has relied and will continue to rely heavily on others for research,
development, manufacture and commercialization of its potential products. The
Company has entered into various arrangements (many of which are non-exclusive)
with consultants, academic collaborators, licensors, licensees, contractors and
others, and it is dependent upon the level of commitment and subsequent success
of these outside parties in performing their responsibilities. Certain of these
agreements place responsibility for preclinical testing and human clinical
trials and for preparing and submitting submissions for regulatory approval for
potential products on the collaborator, licenser or contractor. Should such
collaborator, licenser or contractor fail to perform, the Company's business may
be adversely affected.
The Company has entered into certain agreements and licenses with third
parties, a number of which require the Company to pay royalties. The Company has
relied on scientific, technical, clinical, commercial and other data supplied
and disclosed by others in entering into these agreements and will rely on such
data in support of applications to enter human clinical trials for its potential
products. Although the Company has no reason to believe that this information
contains errors or omissions of fact, there can be no assurance that there are
no errors or omissions of fact that would change materially the Company's view
of the future likelihood of FDA approval or commercial viability of these
potential products.
GOVERNMENT REGULATION AND PRODUCT APPROVAL
The FDA and state and local agencies, and comparable agencies and
entities in foreign countries impose substantial requirements on the
manufacturing and marketing of human therapeutics through lengthy and detailed
laboratory, preclinical animal studies and clinical testing procedures, sampling
activities and other costly and time consuming procedures. Satisfaction of these
requirements typically takes many years and varies substantially based on the
type, complexity, and novelty of the drug. The effect of government regulation
may be to delay for a considerable period of time or prevent the marketing of
any product that the Company may develop and/or to impose costly procedures upon
the Company's activities, the result of which may be to furnish an advantage to
its competitors. There can be no assurance that FDA or other regulatory
<PAGE>
approval for any products developed by the Company will be granted on a timely
basis or at all. Any such delay in obtaining or failure to obtain such approvals
would adversely affect the marketing of the Company's proposed products and its
ability to earn product revenues or royalties. In addition, success in
preclinical or early stage clinical trials does not assure success in later
stage clinical trials. As with any regulated product, additional government
regulations may be promulgated which could delay regulatory approval of the
Company's potential products. Adverse government regulation which might arise
from future legislation or administrative action cannot be predicted.
UNCERTAINTY OF PROTECTION OF PATENTS AND PROPRIETARY RIGHTS
The Company's success will depend, in large part, on its ability to
obtain or license patents, protect trade secrets and operate without infringing
upon the proprietary rights of others. A substantial number of patents have been
issued to other pharmaceutical, biotechnology and biopharmaceutical companies.
Moreover, other competitors may have filed patent applications for, or may have
been issued patents or may obtain additional patents and proprietary rights
relating to, products or processes competitive with those of the Company.
There can be no assurance that any of the patent applications licensed
to the Company will be approved, that the Company will develop proprietary
products that are patentable, that any issued patents licensed to the Company
will provide the Company with adequate protection for its inventions or will not
be challenged by others, or that the patents of others will not impair the
ability of the Company to do business. The patent position of biotechnology
firms generally is highly uncertain, involving complex legal and factual
questions, and has recently been the subject of much litigation. No consistent
policy has emerged from the United States Patent and Trademark Office regarding
the breadth of claims allowed or the degree of protection afforded under
biotechnology patents. Finally, there can be no assurance that others will not
independently develop similar products, duplicate any of the Company's potential
products, or design around any potential patented products of the Company. As a
result, there can be no assurance that patent applications relating to the
Company's potential products or processes will result in patents being issued,
or that patents, if issued, will provide protection against competitors who
successfully challenge the Company's patents, obtain patents that may have an
adverse effect on the Company's ability to conduct business, or be able to
circumvent the Company's patent position. In view of the time delay in patent
approval and the secrecy afforded United States patent applications, the Company
does not know if other applications that would have priority over the Company's
applications have been filed.
<PAGE>
MANUFACTURING LIMITATIONS
The Company currently does not have its own manufacturing facilities to
manufacture products under the current Good Manufacturing Practices (cGMP)
requirements prescribed by the FDA. The Company has established arrangements
with contract manufacturers to supply potential products for clinical trials and
intends to establish similar arrangements for the manufacture, packaging,
labeling and distribution of products, if approved for marketing. If the
Company's contractors are unable to supply sufficient quantities of product
candidates manufactured in accordance with cGMP on acceptable terms, the
Company's human clinical testing schedule would be delayed. If the Company
should encounter delays or difficulties in establishing relationships with
manufacturers to produce, package and distribute its products, market
introduction and subsequent sales of such products would be adversely affected.
Moreover, contract manufacturers that the Company may use must adhere to cGMP
regulations enforced by the FDA through its facilities inspection program. If
these facilities cannot pass a pre-approval plant inspection, the FDA pre-market
approval of the products would be adversely affected. The Company's dependence
on third parties for the manufacture of products may adversely affect the
Company's results of operations and its ability to develop and deliver products
on a timely and competitive basis.
RISK OF PRODUCT LIABILITY
Clinical trials or marketing of any of the Company's potential products
may expose the Company to liability claims from the use of such products. The
Company's product liability insurance does not cover commercial sales of
products. The Company has a limited amount of product liability insurance to
cover liabilities arising from clinical trials. There can be no assurance that
the Company's insurance will be adequate to cover any liabilities arising from
the Company's clinical trials, that the Company will be able to obtain product
liability insurance covering commercial sales or, if obtained, that sufficient
coverage can be acquired at a reasonable cost. An inability to obtain insurance
at acceptable cost or otherwise protect against potential product liability
claims could prevent or inhibit commercialization of any products developed by
the Company.
DEPENDENCE ON QUALIFIED PERSONNEL AND ADVISORS
The Company is highly dependent upon its scientific and management
staff and on consultants and advisors, the loss of whose services might
significantly delay the achievement of planned development objectives. In
addition, the Company is dependent on collaborators at research institutions.
Recruiting and retaining qualified personnel, collaborators, advisors and
consultants will be critical to the Company's success. There is intense
competition for such qualified personnel in the area of the Company's
activities, and there can be no assurance that the Company will be able to
continue to attract and retain the personnel necessary for the development of
the Company's business. The Company's planned activities will require additional
expertise in areas such as clinical trial management, regulatory affairs,
manufacturing, and marketing. Such activities will require the addition of new
personnel including management and the
<PAGE>
development of additional expertise by existing management personnel. The
inability to acquire such services or to develop such expertise could have a
material adverse effect on the Company's operations.
VOLATILITY OF STOCK PRICE; LIMITED MARKET CAPITALIZATION
The market price of the Company common stock, like that of the common
stock of many other biotechnology companies, has been and is likely to continue
to be, highly volatile. Factors such as the results of preclinical studies and
clinical trials by the Company, or its competitors, other evidence of the safety
or efficacy of products of the Company or its competitors, announcements of
technological innovations or new therapeutic products by the Company or its
competitors, government regulation, health care legislation, developments in
patent or other proprietary rights of the Company or its competitors including
litigation, fluctuations in the Company's operating results, and market
conditions for life sciences stocks in general could have a significant adverse
impact on the future price of the common stock. In addition, the average daily
trading volume of the Company's common stock since public trading of the common
stock commenced has been relatively low compared to that of other
biopharmaceutical companies. To the extent this trading pattern continues, the
price of the common stock may fluctuate significantly as a result of changes in
demand for such shares and sales of stock by stockholders.
POSSIBLE ENFORCEMENT PROCEEDINGS
In late January 1996, two executive officers of the Company purchased an
aggregate of 1,600 shares of the Company's common stock prior to the Company's
proposed public offering of common stock. After these officers informed the
Company's outside legal counsel of such purchases, such counsel advised that
such purchases constituted a violation of Rule 10b-6 under the Securities and
Exchange Act of 1934, as amended. The SEC instituted a voluntary informal
inquiry into this matter and may seek enforcement action against the officers
who made the purchases, both of whom have since left the employ of the Company.
The SEC has indicated that it has no present intention to seek enforcement
action against the Company. Any actions taken by the SEC with respect to the
matter may have a material adverse effect on the Company's financial position
and results of operations.
Note: Except for the historical information contained herein, the matters
discussed in this quarterly report are forward looking statements that involve
risks and uncertainties, including the ability to raise capital, properly
design, implement, and complete planned trials, meet regulatory requirements,
demonstrate safety and efficacy for product candidates, manage third party
contractors, and avoid infringement of third party proprietary rights, as well
as other risks detailed from time to time in the Company's Securities and
Exchange Commission filings. Actual results may differ materially from those
projected. These forward looking statements represent the Company's judgment as
of the date hereof. The Company disclaims, however, any intent or obligation to
update these forward looking statements.
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 27: Financial Data Schedule for the period ended September 30, 1997.
Reports: The Company did not file any reports on Form 8-K during the three
months ended September 30, 1997.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NEUROBIOLOGICAL TECHNOLOGIES, INC.
Dated: November 1, 1997 /s/ Paul E. Freiman
--------------------------------------------
Paul E. Freiman
President, Chief Executive Officer
(Principal Executive and Accounting Officer)
and Director
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL
INFORMATION EXTRACTED FROM BALANCE
SHEET AND INCOME STATEMENTS DATED
9/30/97 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS
</LEGEND>
<CIK> 0000918112
<NAME> PACIFIC FINANCIAL PRINTING
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 2,337,117
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 2,451,194
<PP&E> 377,841
<DEPRECIATION> 211,975
<TOTAL-ASSETS> 2,617,060
<CURRENT-LIABILITIES> 682,398
<BONDS> 0
0
0
<COMMON> 29,382,471
<OTHER-SE> (27,447,809)
<TOTAL-LIABILITY-AND-EQUITY> 2,617,060
<SALES> 0
<TOTAL-REVENUES> 43,165
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,319,051
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (1,275,886)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,275,886)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,275,886)
<EPS-PRIMARY> (0.20)
<EPS-DILUTED> (0.20)
</TABLE>
