DELAWARE
|
41-1505029
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
|
1691
Michigan Ave., Suite 435
Miami,
FL
|
33139
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
(305)
534-3383
|
||
(Issuer’s
telephone number, including area code)
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Item
|
Description
|
Page
|
Part
I
|
FINANCIAL
INFORMATION
|
|
1.
|
Financial
Statements.
|
3
|
2.
|
Management’s
Discussion and Analysis.
|
13
|
3.
|
Controls
and Procedures.
|
21
|
Part
II
|
OTHER
INFORMATION
|
|
4.
|
Exhibits.
|
22
|
|
|||||||
Assets
Current
assets:
|
|||||||
Cash
and cash equivalents
|
|
$
|
328,109
|
||||
Grants
receivable
|
|
1,105,480
|
|||||
Prepaid
expenses
|
|
135,043
|
|||||
Total
current assets
|
|
1,568,632
|
|||||
Office
and laboratory equipment, net
|
|
39,097
|
|||||
Intangible
assets, net
|
|
1,849,990
|
|||||
Total
assets
|
|
|
$
|
3,457,719
|
|||
Liabilities
and shareholders’ equity
Current
liabilities:
|
|||||||
Accounts
payable
|
|
|
$
|
3,011,554
|
|||
Accrued
compensation
|
|
192,958
|
|||||
Total
current liabilities
|
|
3,204,512
|
|||||
Shareholders’
equity:
|
|||||||
Common
stock, $.001 par value. Authorized 150,000,000
|
|||||||
shares;
52,195,327 issued and outstanding
|
|
52,195
|
|||||
Additional
paid-in capital
|
|
86,475,645
|
|||||
Accumulated
deficit
|
|
|
(86,274,633
|
)
|
|||
Total
shareholders’ equity
|
|
253,207
|
|||||
Total
liabilities and shareholders’ equity
|
|
|
$
|
3,457,719
|
2006
|
2005
|
||||||
Revenues:
|
$
|
1,387,632
|
$
|
113,540
|
|||
Cost
of revenues
|
(1,039,404
|
)
|
(90,213
|
)
|
|||
Gross
profit
|
348,228
|
23,327
|
|||||
Operating
expenses:
|
|||||||
Research
and development
|
1,225,425
|
729,985
|
|||||
General
and administrative
|
833,193
|
341,935
|
|||||
Total
operating expenses
|
2,058,618
|
1,071,920
|
|||||
Loss
from operations
|
(1,710,390
|
)
|
(1,048,593
|
)
|
|||
Other
income (expense):
|
|||||||
Interest
and other income
|
3,489
|
21,596
|
|||||
Interest
expense
|
-
|
|
(2,3718
|
)
|
|||
Total
other income (expense)
|
3,489
|
19,278
|
|
||||
Net
loss
|
$
|
(1,706,901
|
)
|
$
|
(1,029,315
|
)
|
|
Basic
and diluted net loss per share
|
$
|
(
0.03
|
)
|
$
|
(
0.02
|
)
|
|
Basic
and diluted weighted average common shares outstanding
|
51,221,889
|
46,974,194
|
2006
|
2005
|
|
|||||
Operating
activities:
|
|||||||
Net
loss
|
$
|
(1,706,901
|
)
|
$
|
(1,029,315
|
)
|
|
Adjustments
to reconcile net loss to net cash used by operating
activities:
|
|||||||
Amortization
and depreciation
|
50,631
|
65,517
|
|||||
Non-cash
stock option compensation
|
|
|
(193,749
|
)
|
(284,855
|
) | |
Change
in operating assets and liabilities:
|
|||||||
Grants
receivable
|
(541,150
|
)
|
682,590
|
|
|||
Prepaid
expenses
|
3,751
|
(34,676
|
)
|
||||
Accounts payable |
|
|
1,375,654
|
(563,776
|
) | ||
Accrued royalties |
(60,000
|
) |
|
-
|
|||
Accrued
compensation
|
44,358
|
-
|
|
||||
Total
adjustments
|
1,066,993
|
(135,200
|
) | ||||
Net
cash used by operating activities
|
(639,908
|
)
|
(1,164,515
|
)
|
|||
Investing
activities:
|
|||||||
Acquisition
of intangible assets
|
(92,005
|
)
|
(182,349
|
)
|
|||
Purchases
of equipment
|
-
|
|
(2,856
|
)
|
|||
Net
cash used by investing activities
|
(92,005
|
)
|
(185,205
|
)
|
Financing
activities:
|
|||||||
Net
proceeds from sale of common stock
|
125,000
|
3,552,157
|
|||||
Proceeds
from exercise of stock options
|
113,320
|
-
|
|||||
Net
cash provided by financing activities
|
238,320
|
3,552,157
|
|||||
Net
increase (decrease) in cash and cash equivalents
|
(493,593
|
)
|
2,202,437
|
|
|||
Cash
and cash equivalents at beginning of period
|
821,702
|
2,332,190
|
|||||
Cash
and cash equivalents at end of period
|
$
|
328,109
|
$
|
4,534,627
|
Non-cash
transactions:
|
|||||||
Non-cash
stock payment to an institutional investor
|
$
|
220,374
|
$
|
-
|
Net Loss applicable to common shareholders | ||
As
reported
|
$(1,029,315
|
) |
Add stock-based employee compensation expense related to stock options determined under fair value method |
(91,197
|
) |
Amounts
(credited) charged to income
|
(284,855
|
)
|
Pro
forma net loss according to SFAS 123
|
$
(1,405,367
|
)
|
Net
loss per share:
|
||
As
reported, basic and diluted
|
$
(
0.02
|
)
|
Pro
forma, basic and diluted
|
$
(
0.03
|
)
|
Weighted
Average Amortization period
(years)
|
Cost
|
Accumulated
Amortization
|
Net
Book Value
|
|
March 31, 2006
|
10.1
|
$
2,697,442
|
$
847,452
|
$
1,849,990
|
December
31, 2005
|
10.2
|
$
2,605,472
|
$
802,452
|
$
1,803,020
|
Amortization
Amount
|
|
2006
|
$
170,000
|
2007
|
170,000
|
2008
|
170,000
|
2009
|
170,000
|
2010
|
170,000
|
For
the three months ended March 31,
|
||||||
2006
|
2005
|
|||||
Revenues
|
||||||
BioDefense
|
$
1,341,533
|
$ 113,540
|
||||
BioTherapeutics
|
46,099
|
-
|
||||
Total
|
$
1,387,632
|
$ 113,540
|
||||
Income
(Loss) from Operations
|
||||||
BioDefense
|
$
153,278
|
|
$
(315,708
|
)
|
||
BioTherapeutics
|
(1,050,331
|
)
|
(285,754
|
)
|
||
Corporate
|
(813,337
|
)
|
(447,131
|
)
|
||
Total
|
$
( 1,710,390
|
)
|
$
(1,048,593
|
)
|
||
Amortization
and Depreciation Expense
|
||||||
BioDefense
|
$
37,407
|
$ 31,792
|
||||
BioTherapeutics
|
10,408
|
30,712
|
||||
Corporate
|
2,816
|
3,013
|
||||
Total
|
$
50,631
|
$
65,517
|
||||
Identifiable
Assets
|
||||||
BioDefense
|
$
2,724,037
|
$
1,649,587
|
||||
BioTherapeutics
|
321,434
|
443,573
|
||||
Corporate
|
412,248
|
4,646,215
|
||||
Total
|
$
3,457,719
|
$
6,739,375
|
Contractual
Obligations
|
Year
2006
|
Year
2007
|
Year
2008
|
Non-cancelable
obligations (1)
|
$
52,628
|
$
-
|
$
-
|
TOTALS
|
$
52,628
|
$
-
|
$
-
|