U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1999
--------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from to .
Commission file number 33-93132
--------
La Jolla Diagnostics, Inc.
--------------------------
(Exact name of small business registrant as specified in its charter)
California 94-2901715
---------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1020 Prospect Avenue, Suite 210, La Jolla, California 92037
------------------------------------------------------------
(Address of principal executive offices)
(619) 454-6790
--------------
(Registrant's telephone number)
7777 Fay Avenue, Suite 160, La Jolla, California 92037
-------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 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
As of May 10, 1999, La Jolla Diagnostics, Inc. had 20,201,655 shares
outstanding of the registrant's common stock, no par value.
<PAGE 1>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
FORM 10-QSB
QUARTER ENDED MARCH 31, 1999
INDEX
PAGE
PART I FINANCIAL INFORMATION
Item 1 Financial Statements (unaudited):
Condensed Consolidated Balance Sheets as of
March 31, 1999 (unaudited) and June 30, 1998 3
Condensed Consolidated Statements of Operations for
the Nine Months Ended March 31, 1999 and 1998 (unaudited) 4
Condensed Consolidated Statements of Operations for the
Three Months Ended March 31, 1999 and 1998 (unaudited) 5
Condensed Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 1999 and 1998 (unaudited) 6
Notes to Condensed Consolidated Financial Statements
(unaudited) 7 - 8
Item 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations 9 - 14
PART II OTHER INFORMATION
Item 1 Legal Proceedings - None
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 - None
Item 6 Exhibits and Reports on Form 8-K - None
SIGNATURES 15
<PAGE 2>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 1999 AND JUNE 30, 1998
(A Development Stage Company)
March 31, 1999 June 30, 1998
(Unaudited)
------------- -------------
ASSETS
CURRENT ASSETS
Cash $ 64,345 $ 1,307
Accounts receivable 16,875 3,735
Advances to officer, net 6,588 6,626
Inventory - Healthcare products 13,887 14,730
Inventory - Diagnostic products 492,703 -
Prepaid expenses 37,565 22,437
------------- -------------
TOTAL CURRENT ASSETS 631,963 48,835
INVENTORY, Antisera products 2,466,911 2,466,911
PROPERTY & EQUIPMENT, net 81,219 30,970
NOTE RECEIVABLE 493,100 493,100
OTHER ASSETS 955,521 2,781
------------- -------------
$ 4,628,714 $ 3,042,597
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 258,780 $ 335,959
Accrued expenses 90,058 24,658
Lease obligations, current portion 1,252 1,119
Loans payable 152,182 114,591
------------- -------------
TOTAL CURRENT LIABILITIES 502,272 476,990
LEASE OBLIGATIONS, non current portion 1,080 2,042
MINORITY INTEREST 674,129 555,069
STOCKHOLDERS' EQUITY
Common stock, no par value (50,000,000
shares authorized; 20,151,655 and
12,068,986 shares issued and
outstanding, respectively) 14,228,793 12,403,499
Additional paid-in capital 831,247 831,247
Preferred stock, no par (5,000,000
shares authorized, none issued) - -
Retained deficit (11,608,807) (11,226,250)
------------- -------------
TOTAL STOCKHOLDERS' EQUITY 3,451,233 2,008,496
------------- -------------
$ 4,628,714 $ 3,042,597
The accompanying notes are an integral part of these financial statements
<PAGE 3>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(A Development Stage Company)
For the Nine Months Ended
March 31,
1999 1998
------------- -------------
NET SALES $ 56,182 $ 67,021
OPERATING EXPENSES
Cost of products sold 23,125 38,658
Selling and administrative expenses 365,652 382,381
Research and development 29,600 46,222
Consulting services 39,425 150,303
Depreciation and amortization 16,428 10,572
------------- -------------
TOTAL OPERATING EXPENSES 474,230 628,136
------------- -------------
LOSS FROM OPERATIONS (418,048) (561,115)
OTHER INCOME (EXPENSES)
Interest expense (19,751) (12,503)
Minority interest 80,242 43,298
Loss on settlement of debt (25,000) -
------------- -------------
TOTAL OTHER INCOME (EXPENSES) 35,491 30,795
------------- -------------
LOSS BEFORE INCOME TAXES (382,557) (530,320)
PROVISION FOR INCOME TAXES - 3,200
------------- -------------
NET LOSS $ (382,557) $ (533,520)
============= =============
NET LOSS PER COMMON SHARE $ (0.03) $ (0.06)
============= =============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 14,231,304 9,389,316
============= =============
The accompanying notes are an integral part of these financial statements
<PAGE 4>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(A Development Stage Company)
For the Three Months Ended
March 31,
1999 1998
------------- -------------
NET SALES $ 6,220 $ 23,048
OPERATING EXPENSES
Cost of products sold 1,956 12,704
Selling and administrative expenses 134,724 103,905
Research and development 9,472 10,945
Consulting services 0 36,265
Depreciation and amortization 9,810 3,564
------------- -------------
TOTAL OPERATING EXPENSES 155,962 167,383
------------- -------------
LOSS FROM OPERATIONS 149,742 (144,335)
OTHER INCOME (EXPENSES)
Interest expense (3,675) (2,594)
Minority interest 38,743 6,066
Loss on settlement of debt (25,000) -
------------- -------------
TOTAL OTHER INCOME (EXPENSES) 10,068 3,472
------------- -------------
LOSS BEFORE INCOME TAXES (139,674) (140,863)
PROVISION FOR INCOME TAXES - 3,200
------------- -------------
NET LOSS $ (139,674) $ (144,063)
============= =============
NET LOSS PER COMMON SHARE $ (0.01) $ (0.01)
============= =============
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 19,858,206 11,350,948
============= =============
The accompanying notes are an integral part of these financial statements
<PAGE 5>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(A Development Stage Company)
For the Nine Months Ended
March 31,
1999 1998
------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (382,557) $ (533,520)
Adjustments to reconcile loss to net cash
used in operating activities
Depreciation and amortization 16,428 8,885
Minority interest 119,059 218,516
Issuance of stock for services 75,300 197,070
Changes in assets and liabilities
(Increase) decrease in inventories 140 6,391
(Increase) decrease in accounts receivable (1,140) (15,342)
(Increase) decrease in other assets 24,305 38,614
Increase (decrease) in liabilities (51,209) (7,287)
------------- -------------
NET CASH USED IN OPERATING ACTIVITIES 19,079 (86,673)
CASH FLOWS USED IN INVESTING ACTIVITIES
Advances (to)/from shareholder, net 38 (2,807)
Capital expenditures for property and equipment (6,182) (3,901)
------------- -------------
NET CASH USED FOR INVESTING ACTIVITIES (6,144) 6,008
------------- -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock 3,000 39,500
Proceeds from notes payable, net 47,932 44,554
Payments on capital lease obligations (829) (4,143)
------------- -------------
NET CASH PROVIDED BY FINANCING ACTIVITIES: 50,103 79,911
------------- -------------
NET INCREASE (DECREASE) IN CASH 63,038 (754)
CASH AT BEGINNING OF PERIOD 1,307 13,275
------------- -------------
CASH AT END OF PERIOD $ 64,345 $ 12,521
============= =============
The accompanying notes are an integral part of these financial statements
<PAGE 6>
LA JOLLA DIAGNOSTICS, INC. AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Development Stage Company)
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION
The accompanying unaudited condensed consolidated financial statements and
related notes have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission for Form 10-QSB. 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 a normal recurring nature considered
necessary for a fair presentation, have been included. It is suggested that
these financial statements are read in conjunction with the financial
statements and notes thereto included in the Company's annual report on Form
10-KSB for the year ended June 30, 1998. The results of operations for the
nine month period ended March 31, 1999 are not necessarily indicative of the
operating results for the year ended June 30, 1999. For further information,
refer to the consolidated financial statements and notes thereto included in
the Company's Annual Report on Form 10-KSB for the fiscal year June 30, 1998.
B. INVENTORIES:
Inventories as of March 31, 1999 and June 30, 1998 are comprised of the
following:
March 31, 1998, June 30, 1998
unaudited
------------- -------------
Antisera at original value $ 4,150,579 $ 4,150,579
Less reserve (1,683,668) (1,683,668)
------------- -------------
Antisera products, net 2,466,911 2,466,911
Healthcare products 13,887 14,730
Diagnostic products 492,703 -
------------- -------------
$ 2,973,501 $ 2,481,641
============= =============
C. NET LOSS PER COMMON SHARE:
Net loss per common share is computed by dividing the net loss by the weighted
average number of common shares outstanding during the period. For the nine
month periods ended March 31, 1999 and 1998, the Company's common stock
equivalents were antidilutive and, therefore, were not included in the
computation of net loss per common share.
<PAGE 7>
In February 1997, the FASB issued Statement of Financial Accounting Standards
No. 128, "Earnings per Share," (SFAS 128) which is required to be adopted on
March 31, 1999. The Company is currently using this method to compute earnings
per share in compliance with SFAS No. 128. Under the new requirements for
calculating primary earnings per share, the dilutive effect of stock options
will be excluded. The impact of SFAS No. 128 has not resulted in any change to
primary earnings per share for the nine month periods ended March 31, 1999 and
1998. The impact of SFAS No. 128 on the calculation of fully diluted earnings
per share for these periods is immaterial.
D. RELATED PARTY TRANSACTIONS:
During the nine months ended March 31, 1999 and 1998, various shareholders and
directors of the Company provided consulting and research and development
activities related to the business activities and products of the company.
In connection with these services, during the nine months ended March 31, 1999
and 1998, the Company recognized research and development of $29,600 and
$46,222 and consulting expenses of $39,425 and $150,303, respectively.
E. SUPPLEMENTAL CASH FLOW INFORMATION:
INTEREST AND INCOME TAXES PAID
Cash paid for interest and income taxes for the nine months ended
March 31, 1999 and 1998 (unaudited) were as follows:
March 31, 1999 March 31, 1998
----------------- -----------------
Interest $ 315 $ 1,206
================= =================
Income taxes $ - $ 3,200
================= =================
F. USE OF ESTIMATES:
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimated and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
<PAGE 8>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
THIS QUARTERLY REPORT ON FORM 10-QSB CONTAINS FORWARD-LOOKING STATEMENTS THAT
INVOLVE RISKS AND UNCERTAINTIES. THE COMPANY'S ACTUAL RESULTS MAY DIFFER
SIGNIFICANTLY FROM THE RESULTS DISCUSSED IN THE FORWARD-LOOKING STATEMENTS.
FORWARD-LOOKING INFORMATION - GENERAL
This report contains a number of forward-looking statements which reflect the
Company's current views with respect to future events and financial
performance. These forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from
historical results or those anticipated. In this report, the words
"anticipates", "believes", "expects", "intends", "plans", "may", "future", and
similar expressions identify forward-looking statements. Readers are cautioned
to consider the risk factors described above and in the Company's Annual Report
on Form 10-KSB for the year ended June 30, 1998, and not to place undue
reliance on the forward-looking statements contained herein, which speak only
as of the date hereof. The Company undertakes no obligation to publicly revise
these forward-looking statements, to reflect events or circumstances that may
arise after the date hereof.
Additionally, these statements are based on certain assumptions that may prove
to be erroneous and are subject to certain risks including, but not limited to,
the Company's ability to introduce new products, the concentration of the
Company's current products, technological change and increased competition in
the industry, the Company's ability to manage its growth, its limited
protection of technology and trademarks, the Company's dependence on limited
suppliers, representatives, distributors, and its dependence on certain key
personnel within the Company. Accordingly, actual results may differ, possibly
materially, from the predictions contained herein.
LIQUIDITY AND CAPITAL RESOURCES
The Company, in the past, has financed operations primarily through the private
placement of common stock, issuance of convertible debt, warrant conversions,
issuing warrants to acquire stock in exchange for services rendered and to a
lesser degree from product sales. Based on its current operating plans, cash
generated from projected sales may not generate the necessary capital to fully
support development of the Company's products through June of 1999 and the
Company will continue to employ use of equity financing to allow the Company to
continue its operations. The Company anticipates that the proceeds from
conventional private placements of stock, issuance of convertible debt and
exercise of warrants and options will continue to enhance working capital.
On September 16, 1998, the Company, through a newly formed subsidiary,
DiagnosTech, Inc. (DTI), purchased the assets and technology of AmTech
Scientific, Inc. (ATS), a privately held diagnostic company. These assets
include a proprietary, patent pending diagnostic test for active tuberculosis
(TB). The accuracy and efficacy of the TB test has been confirmed in separate
clinical trials, and is currently approved for sale and distribution in several
countries with approvals pending in others.
Other assets acquired through ATS include a rapid diagnostic test for
HIV I and II, H. Pylori, and Hepatitis B.
<PAGE 9>
On May 11, 1999, the Company completed a 504 Reg. D stock offering for
$1 million of its subsidiary, DTI. The proceeds are being used for working
capital with an emphasis on increasing manufacturing capabilities and the
expansion of marketing and sales efforts related to the products acquired by
DTI.
RESULTS OF OPERATIONS.
GENERALLY. With the formation of its subsidiary, DTI, and the funding of
sufficient working capital, the Company has reorganized its operational
structure. All diagnostic product operations are now the responsibility of the
subsidiary, while the Company will concentrate on the nutraceutical and
overthecounter (OTC) healthcare products and related technologies.
To achieve these objectives, the Company has temporarily suspended sales
efforts on healthcare products in order to upgrade packaging, labels, and
marketing graphics prior to the reintroduction and introduction to new and
larger distributors and an expanded Internet presence.
In addition, the Company is beginning to see results from the licensing of
proprietary technology used in the formulation of its healthcare products, with
a signed letter of intent by a leading Italian pharmaceutical company.
The Company believes that with its business objectives in place, and through
recent and future fundings and projected revenues, the Company should be able
to enact upon its future growth plan.
FOR THE NINE MONTHS ENDED MARCH 31, 1999 AND 1998
For the Nine Months Ended
March 31,
1999 1998
------------- -------------
Revenues $ 56,182 $ 67,021
Cost of products sold (23,125) (38,658)
Other operating expenses (451,106) (589,478)
Loss from operations (418,047) (561,115)
------------- -------------
Net loss $ (382,557) $ (533,520)
============= =============
The Company experienced a net loss of $382,557 for the nine month period ending
March 31, 1999, compared with a net loss of $533,520 for the same period ending
March 31, 1998. On a consolidated basis, the Company had sales totaling
$56,182 for nine six months ended March 31, 1999, compared with $67,021 in
sales for the Company for the same period ending March 31, 1998. Cost of
product sales and operating expenses for the nine months ended March 31, 1999
were $474,231 compared to $628,136 for the nine months ended March 31, 1998.
The decrease in costs of products sold and operating expenses of $153,905 is a
direct result of having less reliance on outside consultants.
<PAGE 10>
FINANCIAL RESOURCES
At March 31, 1999, the Company had current assets of $631,963 which includes
inventory of $13,887 healthcare products, $492,703 diagnostic products and
$37,566 in prepaid expenses.
The $2,466,911 in antisera inventory was valued by several independent
unrelated parties (brokers) as of June 1994 to be in excess of $4.1 million on
a bulk sale basis. The valuation was substantiated by an independent research
scientist as of June 1995 and 1996. During June 1997, the carrying value of
the antisera was marked down by approximately 40% to facilitate the close out
sale of the product by the Company.
The antisera inventory consists of antibody reagents used in clinical
diagnostic laboratories that analyze serum for immunoglobulin profiles. The
antisera is kept frozen and is believed to have a shelf life in excess of
twenty years.
DIAGNOSTECH, INC.
On September 16, 1998, the Company acquired the assets of AmTech Scientific,
Inc. (ATS), a diagnostic company, by establishing a subsidiary, DiagnosTech,
Inc. (DTI). DTI is capitalized by 6,000,000 shares of La Jolla Diagnostics,
Inc.'s common stock, the Company's antisera inventory and other diagnostic
technologies. Through the Company's subsidiary, DTI., the company acquired the
stock of ATS in exchange for 6,000,000 shares of the Company's stock and a
certain number of DTI shares. This transaction was made pursuant to the
acquisition of the technology. The acquisition is to be accounted for as a
pooling-of-interests.
RESEARCH AND DEVELOPMENT
The Company maintains an active research and development program in the areas
of ophthalmic products, nasal sprays, nutraceuticals, products for the
symptomatic relief of allergies, and immuno/molecular diagnostics using a
network of outside consultants in addition to an internal staff and facilities.
The research and development activities being performed by the Company are
designed to discover, screen and improve on potential consumer healthcare and
diagnostic products. Activities underway at the present time include the
following for the healthcare products and diagnostic products through DTI.
HEATHCARE PRODUCTS
The Healthcare Products Division is largely based on products using proprietary
processes. Products being marketed or under development include:
FEVERFEW NASAL MIST(TM)
Because it is classified as an OTC drug, the labeling for Feverfew Nasal MistTM
is limited to stating its "use as a moisturizing nasal spray," though the herb
feverfew is well known as a treatment for migraine headaches and many people
have reported significant relief when using the herb feverfew.
<PAGE 11>
The Company is presently modifying the product's formulation so that it will
qualify as being effective in the alleviation of pain. If this modification is
successful, the Company intends to add an indication to the labeling for the
product's use with headaches. The Company believes that such a change in
labeling would greatly expand the marketing opportunities for the product.
MIGRASPRAY(TM)
MigraSprayTM, a solution containing the herb feverfew, is designed to be
sprayed under the tongue. This sublingual method of administration is believed
to promote excellent absorption and distribution of the contents of the
solution.
Feverfew is the common name for Tanacetum parthenium, a flowering plant related
to the chrysanthemum, whose leaves have been used for centuries in herbal
remedies for the treatment of various conditions, including migraine headaches.
MigraSprayTM can be mentioned as a possible treatment of migraine headaches
because it has become classified as a nutraceutical, and therefore does not
have the compliance issues as OTC drugs.
OTHER NASAL SPRAYS
The Company is investigating other nasal spray possibilities, including a
product for the symptomatic relief of allergies.
LIVING WATER EYE LOTION(TM)
Living Water Eye LotionTM is an eye wash or irrigating solution, used in
cleansing the eye to help relieve irritation, burning, stinging, and itching
due to loose foreign material, air pollutants (smog or pollen), or chlorinated
water. Living Water Eye LotionTM is specially formulated to enhance eye
comfort by the irrigation, flushing and cleansing without the interference of
the natural functions of the eye.
OPTOPET EYE WASH(TM)
OptoPet Eye WashTM is for cleansing the eyes of dogs and cats and removing
mucous which causes staining beneath the eyes (a major problem in certain
breeds).
OTHER OPHTHALMIC PRODUCTS
The Company is developing additional eye solutions using its proprietary
technology, including a product for the symptomatic relief of allergies and the
treatment of glaucoma.
LICENSING
The Company is in contact with several major pharmaceutical companies in
regards to the licensing of its technology as a more efficient drug delivery
system for ophthalmic, nasal, injectables, parenterals and oral medications.
<PAGE 12>
The Company recently signed a letter of intent with the Angelini Group
(Angelini). Angelini is the third largest privately held pharmaceutical
company and the leading OTC firm in Italy, with annual gross sales in excess of
$1.7 billion.
Under the letter of intent, Angelini will have exclusive territorial rights to
the Company's products and technology for Italy, Spain, Portugal, Greece,
Turkey, and other such areas as agreed to by the parties.
DIAGNOSTECH, INC.
DiagnosTech, Inc. (DTI) is developing and marketing clinical diagnostic
products using immunologic and molecular biologic technologies. The product
line now consists of various self-contained, rapid, point-of-care diagnostics,
including:
A rapid test for active M. tuberculosis (TB) disease.
A rapid serum/plasma test for HIV I and II (AIDS) infection.
A rapid whole blood test for HIV I and II (AIDS) infection.
A rapid test for H. pylori infection (the causative agent in
over 90% of ulcers).
A rapid test for hepatitis B (hepatitis B surface antigen:
HBsAg).
A rapid pregnancy test.
A rapid test for Trypanasoa cruzi infection (Chagas disease:
a common and often fatal parasitic infection endemic to
many parts of South and Central America).
A rapid test for Toxoplasma gondii infection (Toxoplasmosis:
a common opportunistic infection among AIDS patients).
The Company believes each of these diagnostic products to be uniquely
advantageous, only secondary to certain proprietary technology, know-how, and
formulations employed by the Company, and that the TB test in particular has no
current equivalent in the marketplace. Each test requires only a very small
sample of patient blood, serum, urine, or saliva, as the case may be. Each
test gives an accurate result in 1 to 5 minutes. These tests can easily be
performed by any healthcare worker, semiskilled technician, or by the patients
themselves. They are extremely rugged, require no refrigeration, and have a
shelf life of 12 to 18 months. No special equipment is required to perform any
test. Each test addresses a large and growing market both domestically and
internationally.
Each of the diagnostic tests manufactured and marketed represent state of the
art technology in that they are rapid, accurate, easy to use, and inexpensive.
These characteristics make the products ideal for both the U.S. and overseas
markets. Changes in the economics of medicine increasingly favor products that
can be employed economically and effectively at the point of care. Outside of
the industrialized world, citizens of emerging economies seek access to
healthcare as a high priority. Tests that address significant medical needs,
are available at a modest price, and require no special instrumentation, are in
high demand. Sale efforts utilizing 75 international distributors over the
past few months are beginning to show results. DTI expects to receive
substantial orders of the products in the near future.
<PAGE 13>
ANTISERA
The Company has transferred its antisera inventory to DTI. It consists of high
quality, highly purified antibodies which are needed for basic research and
clinical immunological assays. The primary users of these antisera products
include universities and other research facilities, clinical diagnostic
laboratories, hospitals and clinics, where certain antibody reagents are used
in large volumes. The Company through its subsidiary, DTI, is currently in a
position to market the antisera inventory aggressively.
MYOCARDIAL INFARCTION PREDICTOR
The Company has filed for patent application on a novel method of identifying
risk factors for myocardial infarction among a certain subset of mature people.
The company intends to market an inexpensive test which would be used for
screening purposes. Those with this risk factor are several times more likely
to experience morbidity or mortality from a condition which may be ameliorated
by changes in living conditions and life style. This technology was turned
over to DTI for development of the final diagnostic kit and for marketing.
OTHER
None.
<PAGE 14>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
Date: May 14, 1999 LA JOLLA DIAGNOSTICS, INC.
By: /s/ Don Brucker
---------------
Don Brucker
President, Chief Executive Officer
and Chief Financial Officer
<PAGE 15>
