FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
-------------------------------------------------
OR
(_) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
---------------------- -----------------------
For Quarter Ended Commission File Number 0-23788
-------------- --------------------
Xechem International, Inc.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 22-3284803
------------------------------- ---------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
100 Jersey Avenue, Bldg. B, Suite. 310, New Brunswick, NJ 08901
--------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (732) 247-3300
-----------------------------
================================================================================
(Former name, former address and former fiscal year, if changed since last
report.)
Check whether the registrant (1) filed all reports required to be filed by
Section 13 of 15(d) of the Exchange Act during the past 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
--- ---
Number of shares outstanding of the issuer's common stock, as of July 31, 2000
was 240,852,928 shares.
Transitional Small Business Disclosure Format
Yes No X
--- ---
<PAGE>
XECHEM INTERNATIONAL, INC. AND SUBSIDIARIES
No. Page
--- ----
Part I. Financial Information
Item 1. Consolidated Balance Sheets as of
June 30, 2000 [Unaudited] and December 31, 1999 [Audited]...... 3
Consolidated Statements of Operations
for the six months ended
June 30, 2000 and 1999 [Unaudited] ............................ 4
Consolidated Statement of Stockholders'
Equity for the six months ended
June 30, 2000 [Unaudited]...................................... 5
Consolidated Statements of Cash Flows for
the six months ended June 30, 2000 and
1999 [Unaudited]............................................... 6-7
Notes to Consolidated Financial Statements........................ 8
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations ................ 9-13
Part II. Other Information ................................................ 14
Signatures........................................................ 15
Exhibits.......................................................... 16
2
<PAGE>
XECHEM INTERNATIONAL, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, December 31,
2000 1999
---- ----
(Unaudited) (Audited)
============ ============
<S> <C> <C>
CURRENT ASSETS:
Cash $ 46,000 $ 632,000
Accounts receivable less allowance for doubtful accounts
of $4,000 and $4,000 44,000 13,000
Inventory:
Raw materials 1,000 --
Finished goods 141,000 133,000
Prepaid expenses and other current assets 6,000 1,000
------------ ------------
TOTAL CURRENT ASSETS 238,000 779,000
Equipment, less accumulated depreciation of $827,000 and $789,000 546,000 621,000
Leasehold improvements, less accumulated amortization 547,000 581,000
Cash surrender value of officer's life insurance 35,000 35,000
Deposits 20,000 20,000
------------ ------------
$ 1,386,000 $ 2,036,000
============ ============
CURRENT LIABILITIES
Accounts payable $ 627,000 $ 678,000
Accrued expenses to related parties 223,000 253,000
Accrued liabilities to others 151,000 149,000
Loans payable 469,000 359,000
Other current liabilities 35,000 36,000
------------ ------------
TOTAL CURRENT LIABILITIES 1,505,000 1,475,000
------------ ------------
NOTES PAYABLE-RELATED PARTIES 319,000 312,000
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS EQUITY
Class A voting preferred stock,$ .00001 par value, 2,500 shares
authorized; 2,500 shares issued and outstanding -- --
Class B 8% preferred stock,$ .00001 par value, 1,150 shares
authorized; none outstanding -- --
Class C preferred stock,$ .00001 par value, 49,996,350 shares authorized;
200,000 shares issued and outstanding -- --
Common stock,$.000001 par value, 700,000,000 shares authorized;
240,853,000 and 240,460,000 respectively issued and outstanding 2,000 2,000
Additional paid in capital 32,838,000 32,740,000
Deficit accumulated during development stage (33,278,000) (32,493,000)
------------ ------------
TOTAL STOCKHOLDERS EQUITY (438,000) 249,000
------------ ------------
$ 1,386,000 $ 2,036,000
============ ============
</TABLE>
See notes to consolidated financial statements
3
<PAGE>
XECHEM INTERNATIONAL, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF OPERATION
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 15 1990
-------------
(Date of
--------
Inception) to
-------------
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, JUNE 30,
--------------------------- ------------------------- --------
2000 1999 2000 1999 2000
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
REVENUES:
Consulting fees from Asian company $ -- $ -- $ -- $ -- $ 300,000
Other 4,000 38,000 11,000 47,000 846,000
---------------------------------------------------------------------------------
4,000 38,000 11,000 47,000 1,146,000
---------------------------------------------------------------------------------
EXPENSES:
Research and development 148,000 112,000 278,000 231,000 9,165,000
General and administrative 272,000 127,000 502,000 283,000 10,875,000
Writedown of inventory
& intangibles -- -- -- -- 1,723,000
---------------------------------------------------------------------------------
420,000 239,000 780,000 514,000 21,763,000
---------------------------------------------------------------------------------
LOSS FROM OPERATIONS (416,000) (201,000) (769,000) (467,000) (20,617,000)
---------------------------------------------------------------------------------
OTHER INCOME(EXPENSE) - NET:
Interest Expense - Related Party (9,000) (8,000) (18,000) (18,000) (8,688,000)
Interest Expense -- -- -- -- (4,925,000)
Sale of New Jersey net operating
loss carryforwards -- -- -- -- 651,000
Other(net) (1,000) -- 2,000 -- 301,000
---------------------------------------------------------------------------------
(10,000) (8,000) (16,000) (18,000) (12,661,000)
---------------------------------------------------------------------------------
NET LOSS $ (426,000) $ (209,000) $ (785,000) $ (485,000) $ (33,278,000)
=================================================================================
BASIC AND DILUTED LOSS PER SHARE $ (0.002) $ (0.001) $ (0.003) $ (0.002)
================================================================
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 240,765,610 229,385,996 240,765,610 229,385,996
================================================================
</TABLE>
See notes to consolidated financial statements
4
<PAGE>
XECHEM INTERNATIONAL, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY
(UNAUDITED)
<TABLE>
<CAPTION>
Deficit
Additional Accumulated
Number of Paid-In- During
shares issued Par value Capital Development
---------------------------------------------------------
<S> <C> <C> <C> <C>
BALANCES AT DECEMBER 31, 1999 240,460,000 $ 2,000 $ 32,740,000 $(32,493,000)
QUARTER ENDED MARCH 31, 2000
Stock options exercised at $ .01 per share 393,000 -- 4,000
Issuance of 1,500,000 options at $.01
with a FMV of $ .06 for services rendered 75,000
Net loss for quarter (359,000)
---------------------------------------------------------
BALANCES AT MARCH 31, 2000 240,853,000 $ 2,000 $ 32,819,000 $(32,852,000)
=========================================================
QUARTER ENDED JUNE 30, 2000
Net loss for quarter (426,000)
---------------------------------------------------------
BALANCES AT JUNE 30, 2000 240,853,000 $ 2,000 $ 32,819,000 $(33,278,000)
=========================================================
</TABLE>
See notes to consolidated financial statements
5
<PAGE>
XECHEM INTERNATIONAL, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
March 15,
1990(date of
inception) to
Six months ended June 30, June 30,
--------------------------------------------
2000 1999 2000
---- ---- ----
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (785,000) $ (485,000) $(33,278,000)
Adjustments to reconcile net loss to net cash
Provided (used) by operating activities:
Depreciation 75,000 80,000 767,000
Amortization 34,000 34,000 639,000
Interest and compensation expense in connection
with issuance of equity securities 75,000 -- 16,308,000
Write down of inventories -- -- 1,206,000
Write down of patents -- -- 517,000
Loss on investment in related party -- 14,000 89,000
Changes in operating assets and liabilities (Increase) decrease in:
Accounts receivable (31,000) (49,000) (44,000)
Inventories (9,000) 6,000 (1,343,000)
Prepaid expenses (5,000) 14,000 69,000
Other current assets -- 2,000 43,000
Other -- 6,000 (30,000)
Increase (decrease) in:
Accounts payable (51,000) 43,000 627,000
Other current liabilities (1,000) 20,000 (5,000)
Accrued expenses (28,000) (83,000) 374,000
--------------------------------------------
NET CASH FLOWS FROM OPERATING ACTIVITIES $ (726,000) $ (398,000) $(14,061,000)
--------------------------------------------
</TABLE>
See notes to consolidated financial statements
6
<PAGE>
XECHEM INTERNATIONAL, INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE ENTERPRISE)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(continued)
<TABLE>
<CAPTION>
March 15,
1990(date of
inception) to
Six months ended June 30, June 30,
--------------------------------------------
2000 1999 2000
---- ---- ----
<S> <C> <C> <C>
NET CASH FLOWS FROM OPERATING ACTIVITIES $ (726,000) $ (398,000) $(14,061,000)
--------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Patent issuance costs -- -- (548,000)
Purchases of equipment and leasehold improvements -- -- (1,975,000)
Investment in related party -- -- (23,000)
Other -- -- (8,000)
--------------------------------------------
NET CASH FLOWS FROM INVESTING ACTIVITIES: -- -- (2,554,000)
--------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from related party loans 60,000 392,000 1,718,000
Proceeds from notes payable - others -- -- 628,000
Proceeds from interim loans 141,000 -- 3,088,000
Capital contribution 19,000 -- 114,000
Payments on interim loans -- -- (498,000)
Payments on notes payable - others -- -- (525,000)
Payments on stockholder loans (84,000) -- (656,000)
Proceeds from issuance of capital stock 4,000 -- 12,792,000
--------------------------------------------
NET CASH FLOWS FROM FINANCING ACTIVITIES: 140,000 392,000 16,661,000
--------------------------------------------
NET CHANGE IN CASH (586,000) (6,000) 46,000
CASH, BEGINNING OF PERIOD 632,000 41,000 --
--------------------------------------------
CASH, END OF PERIOD $ 46,000 $ 35,000 $ 46,000
============================================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the periods for:
Interest paid - related party $ -- $ 10,000 $ 138,000
============================================
Interest paid - other $ 18,000 $ -- $ 179,818
============================================
Income taxes paid $ -- $ -- $ --
============================================
NONCASH FINANCING ACTIITIES
Net assets of Xechem India contributed to capital and
minority interest $ -- $ -- $ 118,000
============================================
Liabilities exchanged for preferred and common stock $ -- $ -- $ 921,000
============================================
</TABLE>
See notes to consolidated financial statements
7
<PAGE>
XECHEM INTERNATIONAL, INC. AND SUBSIDIARIES
[A DEVELOPMENT STAGE ENTERPRISE]
================================================================================
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
[UNAUDITED]
--------------------------------------------------------------------------------
[1] SIGNIFICANT ACCOUNTING POLICIES
Significant accounting policies and other matters of Xechem International, Inc.
and its wholly-owned subsidiaries, Xechem, Inc., Xechem Laboratories, Inc. and
XetaPharm, Inc. (collectively the "Company"), are set forth in the financial
statements for and as of the year ended December 31, 1999 included in the
Company's Form 10-KSB, as filed with the Securities and Exchange Commission.
[2] BASIS OF REPORTING
The accompanying unaudited consolidated 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 the information and
footnotes required by generally accepted accounting principles for complete
financial statements. In the opinion of management, such statements include all
adjustments (consisting only of normal recurring item) which are considered
necessary for a fair presentation of the consolidated financial position of the
Company at June 30, 2000 and the consolidated results of its operations for the
six months ended June 30, 2000 and 1999 and for the cumulative period from March
15, 1990 (date of inception) to June 30, 2000. These consolidated financial
statements should be read in conjunction with the consolidated financial
statements and related notes included in the Company's Form 10-KSB for the year
ended December 31, 1999. The results of operations for the six-month periods
ended June 30, 2000 and 1999 are not necessarily indicative of the operating
results for a full year.
[3] SUBSEQUENT EVENTS
The Company held it's annual meeting on July 11, 2000 at 100 Jersey Ave. Suite
310 Building B, New Brunswick N.J., where:
1. Ramesh C. Pandey Ph.D. and Stephen F. Burg were re-elected to the
Company's Board of Directors until the next meeting of stockholders or
otherwise as provided in the Corporation's By-Laws.
2. The Corporations Certificate of Incorporation was amended to increase
the number of authorized shares from 250,000,000 to 750,000,000 shares
consisting of 700,000,000 shares of Common Stock and 50,000,000 shares
of Preferred Stock.
3. An increase in the number of shares of Common Stock which may be
issued under the Xechem International, Inc. Amended and Restated Stock
Option Plan to 25,000,000 shares was approved.
8
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS.8
------------------------------------
General
-------
The Company is the holder of all of the capital stock of Xechem, Inc., a
development stage biopharmaceutical company engaged in the research,
development, and production of niche generic and proprietary drugs from natural
sources. Xechem, Inc. was formed in March 1990 to acquire substantially all of
the assets of a subsidiary of LyphoMed, Inc. (later known as Fujisawa/LyphoMed,
Inc.) a publicly traded company. Xechem Laboratories (formed in 1993),
XetaPharm, Inc. (formed in 1996) and Xechem (India) Pvt. Ltd. are subsidiaries
of the Company. Xechem (Europe) an affiliate of Xechem, Inc., was closed in June
1999.
Results of Operations
---------------------
The Six Months Ended June 30, 2000 vs. The Six Months Ended June 30, 1999
The following table sets forth certain statement of operations data of the
Company for the cumulative period from inception (March 15, 1990) to June 30,
2000 and for each of the six months ended June 30, 2000 and June 30, 1999.
CUMULATIVE
SIX MONTHS ENDED INCEPTION TO
JUNE 30, JUNE 30,
2000 1999 2000
(in thousands)
Revenue $ 11 $ 47 $ 1,146
Research and Development Expense $ 278 $ 231 $ 9,165
Rent, general and administrative expenses $ 502 $ 283 $ 10,875
Writedown of Inventory and intangibles $ -- $ -- $ 1,723
(Loss) from operations $ (769) $ (467) $(20,617)
-------------------------
8 Some of the statements included in Item 2, Management Discussion and
Analysis, may be considered to be "forward looking statements" since such
statements relate to matters which have not yet occurred. For example, phrases
such as "the Company anticipates," "believes" or "expects" indicates that it is
possible that the event anticipated, believed or expected may not occur. Should
such event not occur, then the result, which the Company expected also, may not
occur or occur in a different manner, which may be more or less favorable to the
Company. The Company does not undertake any obligation to publicly release the
result of any revisions to the forward looking statements that may be made to
reflect any future events or circumstances.
9
<PAGE>
Revenue
-------
The $36,000 decrease in sales from the six months ended June 30, 2000 to
the six months ended June 30, 1999 represents a $5,000 decrease or 38 % from
product sales by the Company's subsidiary XetaPharm, Inc. Xechem Inc. had a
$32,000 decrease in testing services for the six months ended June 30, 2000 as
compared to the six months ended June 30, 1999.
Research and Development
------------------------
The Company's research and development expenditures were made in
conjunction with the development of compounds to make niche generic anticancer,
antiviral and antibiotic products that enjoy significant market demand but are
no longer subject to patent protection. Research and development expenditures
increased by $47,000 to $278,000 or 21% primarily a $27,000 increase in employee
compensation, for the six months ended June 30, 2000 as compared to the six
months ended June 30, 1999.
Expenditures for research and development increased during the first and
second quarter of 2000 and should continue to increase for the remainder of the
year. The Company believes that increased research and development expenditures
could significantly hasten the development of new products as well as the
marketability of paclitaxel and its second-generation analogs.
Rent, General and Administrative
--------------------------------
Rent, general and administrative expenses increased $219,000 or 78% for the
six months ended June 30, 2000 as compared to the six months ended June 30,
1999. Legal fees increased over $200,000 due primarily to the stock options
granted to two legal firms for future services and the continuing court case
against M.D. Anderson Cancer Center. The Company has also incurred increases in
Advertising of $18,000 and Accounting Fees of $17,000.
The Company anticipates that general and administrative expenses will
continue to increase as a result of the expansion of its operations and
marketing efforts. The Company's planned activities will require the addition of
new personnel, including management, and the development of additional expertise
in areas such as preclinical testing, clinical trial management, regulatory
affairs, manufacturing and marketing. The exact number and nature of persons
hired, and the Company's expenses for such persons will depend on many factors,
including the capabilities of those persons who seek employment with the Company
and the availability of additional funding to finance these efforts.
10
<PAGE>
Liquidity and Capital Resources; Plan of Operations
---------------------------------------------------
On June 30, 2000, the Company had cash and cash equivalents of $46,000,
negative working capital of $1,267,000 and negative stockholder's equity of
$438,000.
As a result of its net losses to June 30, 2000 and accumulated deficit
since inception, the Company's accountants, in their report on the Company's
financial statements for the year ended December 31, 1999, included an
explanatory paragraph indicating there is substantial doubt about the Company's
ability to continue as a going concern. The Company's research and development
activities are at an early stage and the time and money required to determine
the commercial value and marketability of the Company's proposed products cannot
be estimated with precision. The Company expects research and development
activities to continue to require significant cost expenditures for an
indefinite period in the future.
In May 1995 the Company filed a Drug Master File ("DMF") with the Food and
Drug Administration ("FDA") for the Company's facilities. The Company has
completed its technology validation and filed a DMF for bulk paclitaxel
manufacturing in June 1997; however, the Company's facilities have yet to be
inspected by the FDA for current Good Manufacturing Practices ("cGMP"). The
Company has sufficient raw materials to produce commercial bulk paclitaxel that
has a market value of approximately $2,000,000 at current prices; however the
book value was written down to $0.00 in 1997, and the Company anticipates, but
can provide no assurances, that it will commence sales of paclitaxel in the
international market in 2000. Prior to commencing such sales, the Company must
file for and obtain approvals from appropriate regulatory agencies in foreign
jurisdictions. Additionally, to the extent the Company elects to manufacture
bulk paclitaxel domestically and ship it overseas for packaging, the Company's
facilities must be approved for cGMP and the product must either be approved for
an investigational new drug exemption (not currently so approved), or deemed in
compliance with the laws of 24 industrialized "tier one" countries (not yet so
approved). Alternatively, the Company can produce the product entirely overseas;
however, it most likely would subcontract production to others from raw material
or partially processed raw material provided by the Company, and might also
enter into joint venture or other marketing arrangements for sale of the product
overseas. There can be no assurance that necessary approvals will not be delayed
or subject to conditions or that the Company will be able to meet such
conditions. In addition, the Company has no experience in marketing
pharmaceutical products for human consumption and there can be no assurance that
the Company will be able to successfully market its paclitaxel product in bulk,
or indirectly through others, or be able to obtain satisfactory packaging of the
product in single dosage vials from an independent manufacturer.
The Company has "Strategic Alliance Agreements" with one European company,
and is negotiating with several other companies outside of the United States to
license production, market and sell bulk and injectable paclitaxel. These
companies will be responsible for the registration of injectable paclitaxel in
their respective countries. Xechem will also grant a license to these companies
to manufacture and sell Xechem's patented new paclitaxel analogs as well as a
new paclitaxel formulation without Cremophor(TM) or ethanol. In return, Xechem
will be cross-licensed by these companies to produce, market and sell certain
key pharmaceutical products in the United States and India. Xechem will be
responsible for the registration of these products with the FDA. The Company
estimates that the aggregate market for these products currently exceeds
$1,000,000,000.
11
<PAGE>
Xechem has expended and will continue to expend substantial funds in
connection with the research and development of its products. As a result of
these expenditures, and even with revenues anticipated from commencement of
sales of paclitaxel, the Company anticipates that losses will continue for the
foreseeable future.
Xechem's planned activities will require the addition of new personnel,
including management, and the continued development of expertise in areas such
as preclinical testing, clinical trial management, regulatory affairs,
manufacturing and marketing. Further, if Xechem receives regulatory approval for
any of its products in the United States or elsewhere, it will incur substantial
expenditures to develop its manufacturing, sales and marketing capabilities
and/or subcontract or joint venture these activities with others. There can be
no assurance that Xechem will ever recognize revenue or profit from any such
products. In addition, Xechem may encounter unanticipated problems, including
developmental, regulatory, manufacturing or marketing difficulties, some of
which may be beyond Xechem's ability to resolve. Xechem may lack the capacity to
produce its products in-house and there can be no assurances that it will be
able to locate suitable contract manufacturers or be able to have them produce
products at satisfactory prices.
There can be no assurance that management's plans to obtain additional
financing to fund operations will be successful. The financial statements do not
include any adjustments relating to the recoverability and classification of
recorded assets, or the amounts and classification of liabilities that might be
necessary in the event that the Company cannot continue in existence.
The Company has been approved for over $500,000 in NJEDA tax credits and
has applied for an additional $400,000 to be issued in later part of 2000. The
Company anticipates, but can provide no assurances, approval for the full amount
with a cash benefit up to $750,000.
On March 30, 2000 the Company signed a joint venture agreement with J & M
Consultants to establish Xechem Pharmaceutical China Ltd. with offices in Hong
Kong and Beijing, Peoples Republic of China.
The purpose of establishing Xechem China is to carry on the business of,
among other things, manufacturing, marketing and distributing pharmaceutical and
nutraceutical products. Xechem China will also carry out research, development,
clinical studies and production of new drugs based on Xechem technology on
traditional Chinese medicine and other disciplines, provide consulting services
for drug development and set up a certified laboratory in P.R. China to screen,
verify and certify pharmaceutical products for the public.
In an exclusive License Agreement with Xechem China, Xechem International
will allow the use of its patents, trademarks and technical information to use
the process to manufacture, market and sell the products in the Territory of
People's Republic of China, Hong Kong, Macao, Taiwan (The Republic of China),
Mongolia, Korea, Singapore, Malaysia, Indonesia, Republic of Philippines,
Thailand, Vietnam, Brunei, Cambodia, Myanmar, and such other countries or
regions which may be agreed between the parties. A non-exclusive license is
granted in Japan. J & M has committed a sum of over $1,200,000 and management
support to the joint venture and up to $240,000 as an interest free loan to
Xechem over 24 months. Profits of the joint venture are to be split 55% to J & M
and 45% to Xechem.
12
<PAGE>
In the first phase, Xechem China will start the (i) manufacture
pre-clinical and clinical studies of a new paclitaxel formulation for ovarian
and breast cancers, (ii) toxicological studies on two of Xechem's second
generation patented paclitaxel analogs and (iii) registration of
Xechem/XetaPharm's nutritional products (GinkgoOnce(R), GarlicOnce(R),
GinsengOnce(R), Gugulon(TM), Co-Enzyme Q-10 and Vida Pras(TM)).
To date the Company has received $60,000 as part of the interest free loan
and Xetapharm has received purchase orders totaling $125,000, which are to be
shipped in the next twelve months.
13
<PAGE>
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
(a). Exhibit 15
(b). Reports on Form 8-K- none
14
<PAGE>
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.
XECHEM INTERNATIONAL, INC.
Date: August 10, 2000
/s/ Ramesh C. Pandey
----------------------------------------
Ramesh C. Pandey, Ph.D.
President/Chief Executive Officer
15