Title
of Each Class
of
Securities to be Registered
|
Amount
to be registered (1)
|
Proposed
maximum offering price per unit (2)
|
Proposed
maximum aggregate offering price (2)
|
Amount
of registration fee(2)
|
Common
Stock,
$.001
par value per share (3)
|
30,629,819
|
$0.32
|
$9,801,542.00
|
$1,048.76
|
|
Page
Number
|
FORWARD-LOOKING
STATEMENTS
|
1
|
PROSPECTUS
SUMMARY
|
2
|
RISK
FACTORS
|
4
|
RECENT DEVELOPMENTS |
17
|
BUSINESS
|
18
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
|
33
|
DIRECTORS
AND EXECUTIVE OFFICERS
|
40
|
EXECUTIVE
COMPENSATION
|
43
|
SECURITY
OWNERSHIP OF PRINCIPAL STOCKHOLDERS AND
MANAGEMENT
|
46
|
SELLING
STOCKHOLDERS
|
48
|
USE
OF PROCEEDS
|
50
|
PLAN
OF DISTRIBUTION
|
51
|
DESCRIPTION
OF SECURITIES
|
53
|
MARKET
FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
|
54
|
DISCLOSURE
OF COMMISSION POSITION ON INDEMNIFICATION FOR
SECURITIES
AND LIABILITIES
|
55
|
EXPERTS
|
55
|
LEGAL
MATTERS
|
55
|
INDEX
TO FINANCIAL PAGES
|
F-1
|
CONSOLIDATED
FINANCIAL STATEMENTS
|
F-3
|
· |
significant
uncertainty inherent in developing vaccines against bioterror threats,
and
manufacturing and conducting preclinical and clinical trials of
vaccines;
|
· |
our
ability to obtain regulatory
approvals;
|
· |
uncertainty
as to whether our technologies will be safe and
effective;
|
· |
our
ability to make certain that our cash expenditures do not exceed
projected
levels;
|
· |
our
ability to obtain future financing or funds when needed;
|
· |
that
product development and commercialization efforts will be reduced
or
discontinued due to difficulties or delays in clinical trials or
a lack of
progress or positive results from research and development efforts;
|
· |
our
ability to successfully obtain further grants and awards from the
U.S.
Government and other countries, and maintenance of our existing
grants;
|
· |
our
ability to enter into any biodefense procurement contracts with
the U.S.
Government or other countries;
|
· |
our
ability to patent, register and protect our technology from challenge
and
our products from competition;
|
· |
maintenance
or expansion of our license agreements with our current licensors;
|
· |
maintenance
of a successful business strategy;
|
· |
the
FDA not considering orBec® approvable based upon existing studies because
orBec® did not achieve statistical significance in its primary endpoint
in
the pivotal Phase III clinical study (i.e. a p-value of less than
or equal
to 0.05);
|
· |
orBec®
may not show therapeutic effect or an acceptable safety profile
in future
clinical trials, if required, or could take a significantly longer
time to
gain regulatory approval than we expect or may never gain approval;
|
· |
we
are dependent on the expertise, effort, priorities and contractual
obligations of third parties in the clinical trials, manufacturing,
marketing, sales and distribution of our
products;
|
· |
orBec®
may not gain market acceptance; and
|
· |
others
may develop technologies or products superior to our
products.
|
· |
we
will not be able to maintain our current research and development
schedules;
|
· |
we
may be unsuccessful in our efforts to secure profitable procurement
contracts from the U.S. government or others for our biodefense
products;
|
· |
we
will encounter problems in clinical trials; or
|
· |
the
technology or product will be found to be ineffective or unsafe.
|
· |
it
is uneconomical or the market for the product does not develop
or
diminishes;
|
· |
we
are not able to enter into arrangements or collaborations to manufacture
and/or market the product;
|
· |
the
product is not eligible for third-party reimbursement from government
or
private insurers;
|
· |
others
hold proprietary rights that preclude us from commercializing the
product;
|
· |
others
have brought to market similar or superior products; or
|
· |
the
product has undesirable or unintended side effects that prevent
or limit
its commercial use.
|
· |
announcements
of technological innovations, more important bio-threats or new
commercial
therapeutic products by us, our collaborative partners or our present
or
potential competitors;
|
· |
our
quarterly operating results and
performance;
|
· |
announcements
by us or others of results of pre-clinical testing and clinical
trials;
|
· |
developments
or disputes concerning patents or other proprietary
rights;
|
· |
acquisitions;
|
· |
litigation
and government proceedings;
|
· |
adverse
legislation;
|
· |
changes
in government regulations;
|
· |
economic
and other external factors; and
|
· |
general
market conditions
|
· |
warrants
to purchase a total of approximately 36,600,000 shares of our common
stock
at a current weighted average exercise price of approximately $0.73;
|
· |
anti-dilution
rights associated with a portion of the above warrants which can
permit
purchase of additional shares and/or lower exercise prices under
certain
circumstances; and
|
· |
options
to purchase approximately 11,000,000 shares of our common stock
of a
current weighted average exercise price of approximately $0.55.
|
Select
Agent
|
|
|
Currently
Available Countermeasure
|
|
|
DOR
Biodefense Product
|
|
|
|
|
|
|
|
|
|
Ricin
Toxin
|
|
|
No
vaccine or antidote currently FDA approved
|
|
|
Injectable
Ricin Vaccine
Phase
I Clinical Trial Successfully Completed
|
|
Ricin
Toxin
|
|
|
No
vaccine or antidote currently FDA approved
|
|
|
Nasal
Ricin Vaccine
|
|
Botulinum
Toxin
|
|
|
No
vaccine or antidote currently FDA approved
|
|
|
Oral/Nasal
Botulinum Vaccine
|
|
Botulinum
Toxin
|
|
|
No
vaccine or antidote currently FDA approved
|
|
|
Oral
Botulinum Therapeutic
|
Product
|
Therapeutic
Indication
|
Stage
of Development
|
orBec®
|
Treatment
of Intestinal Graft-versus-Host Disease
|
Pivotal
Phase III Clinical Trial Completed, NDA to be filed
|
OraprineTM
|
Oral
lesions resulting from Graft-versus-Host Disease
|
Phase
I Complete
|
LPMTM
- Leuprolide
|
Endometriosis
and Prostate Cancer
|
Pre-Clinical
|
LPETM
and PLPTM Systems
|
Delivery
of Water-Insoluble Drugs
|
Pre-Clinical
|
Contractual
Obligations
|
Year
2006
|
Year
2007
|
Year
2008
|
Non-cancelable
obligations (1)
|
$
52,628
|
$
-
|
$
-
|
TOTALS
|
$
52,628
|
$
-
|
$
-
|
Name
|
Age
|
Position
|
Alexander
P. Haig,
J.D.
|
53
|
Chairman
of the Board
|
Steve
H. Kanzer, C.P.A.,
J.D.
|
42
|
Vice
Chairman
|
Michael
T. Sember,
M.B.A.
|
56
|
Chief
Executive Officer, President, and Director
|
Evan
Myrianthopoulos
|
41
|
Chief
Financial Officer, and Director
|
James
S. Kuo, M.D.,
M.B.A.
|
41
|
Director
|
T.
Jerome Madison,
C.P.A.
|
65
|
Director
|
James
Clavijo, C.P.A.,
M.A.
|
40
|
Controller,
Treasurer, and Corporate Secretary
|
Name
|
Position
|
Years
|
Annual
Salary
|
Annual
Bonus
|
All
Other Compensation
|
Long
term Compensation Awards Securities Underlying Options
|
Michael
Sember (1)
|
CEO
& President
|
2005
|
$300,000
|
$100,000
|
$57,398
|
2,000,000
|
2004
|
$20,000
|
-
|
-
|
2,000,000
|
||
Evan
Myrianthopoulos (2)
|
CFO
|
2005
|
$185,000
|
$50,000
|
$35,744
|
-
|
2004
|
$25,694
|
-
|
-
|
650,000
|
||
James
Clavijo (3)
|
Controller,
Treasurer & Secretary
|
2005
|
$125,000
|
$25,000
|
-
|
150,000
|
2004
|
$27,500
|
-
|
-
|
100,000
|
Named
Executive Officer
|
Number
of Securities Underlying Options
Granted
|
Percentage
of Total Options Granted to Employees in Fiscal
Year (1)
|
Exercise
Price ($/share)(2)
|
Expiration
Date
|
Michael
Sember
|
-
|
N/A
|
N/A
|
N/A
|
Evan
Myrianthopoulos
|
-
|
N/A
|
N/A
|
N/A
|
James
Clavijo (3)
|
150,000
|
30%
|
$0.45
|
2/22/2015
|
|
Number
of Securities
Underlying
Unexercised
Options
at Fiscal Year-End
|
Value
of Unexercised
In-the-Money
Options
at
Fiscal Year-End
|
||
Named
Executive Officer
|
Exercisable
|
Unexercisable
|
Exercisable
|
Unexercisable(1)
|
Michael
Sember
|
1,120,000
|
880,000
|
-
|
-
|
Evan
Myrianthopoulos
|
316,668
|
333,332
|
-
|
-
|
James
Clavijo
|
108,332
|
141,668
|
-
|
-
|
Name
of Beneficial Owner
|
Shares
of Common Stock Beneficially
Owned
|
Percent
of Class
|
Silverback
Asset Management, LLC (1)
|
3,837,700
|
5.5
%
|
SF
Capital Partners (2)
|
3,817,046
|
5.4
%
|
Alexander
P. Haig (3)
|
1,050,000
|
1.5
%
|
Steve
H. Kanzer (4)
|
2,135,635
|
3.1
%
|
James
S. Kuo (5)
|
155,000
|
*
|
T.
Jerome Madison (6)
|
100,000
|
*
|
Evan
Myrianthopoulos (7)
|
894,667
|
1.3
%
|
Michael
T. Sember (8)
|
1,865,440
|
2.7
%
|
James
Clavijo (9)
|
166,665
|
*
|
All
directors and executive officers as a group (7 persons)
|
5,581,977
|
7.8
%
|
Plan
Category
|
Number
of Securities to be issued upon exercise of outstanding options,
warrants
and rights
|
Weighted-Average
Exercise Price Outstanding options, warrants
and rights
|
Number
of Securities Remaining Available for Future Issuance Under Equity
Compensation Plans (excluding securities reflected in the
first
column)
|
Equity
compensation plans approved by security holders (1)
|
9,826,838
|
$
0.61
|
6,800,000
|
Equity
compensation plans not approved by security holders
|
-
|
-
|
-
|
TOTAL
|
9,826,838
|
$0.61
|
6,800,000
|
Name
of
Selling
Stockholder
|
Number
of Shares of Common Stock Owned Before the
Offering (1)
|
Percent
of
Common
Stock Owned Before
the
Offering
|
Shares
Available for Sale Under This Prospectus
(1)
|
Number
of Shares of Common Stock To Be Owned After Completion
of
the Offering
|
Percent
of Common Stock to be Owned After Completion
of
the Offering
|
|
Iroquois
Master Fund LTD(2)
|
5,052,328
|
7.1
|
|
5,052,328
|
-
|
*
|
Platinum
Partners Long Term Growth III(3)
|
4,330,566
|
6.1
|
4,330,566
|
-
|
*
|
|
Alpha
Capital AG/CO
LH
Financial(4)
|
3,608,806
|
5.2
|
3,608,806
|
-
|
*
|
|
Smithfield
Fiduciary LLC(5)
|
2,165,284
|
3.1
|
2,165,284
|
-
|
*
|
|
Nite
Capital, LP(6)
|
3,337,044
|
4.7
|
2,887,044
|
-
|
*
|
|
Cyrille
F. Buhrman
|
3,608,806
|
5.2
|
3,608,806
|
-
|
*
|
|
Ed
Burke
|
811,982
|
1.1
|
811,982
|
-
|
*
|
|
Little
Gem Life Sciences Fund, LLC(7)
|
721,762
|
1.0
|
721,762
|
-
|
*
|
|
Steven
Mark
|
180,440
|
*
|
180,440
|
-
|
*
|
|
Vasili
Myrianthopoulos
|
144,352
|
*
|
144,352
|
-
|
*
|
|
Kim
Alberstadt
|
72,176
|
*
|
72,176
|
-
|
*
|
|
Evan
Myrianthopoulos
|
180,440
|
*
|
180,440
|
-
|
*
|
|
Mike
Sember
|
360,880
|
*
|
360,880
|
-
|
*
|
|
David
Gentile
|
120,288
|
*
|
120,288
|
-
|
*
|
|
Bernard
Pismeny
|
120,288
|
*
|
120,288
|
-
|
*
|
|
Kyle
Brengel
|
120,288
|
*
|
120,288
|
-
|
*
|
|
Bristol
Investment Fund, Ltd.(8)
|
1,804,402
|
2.6
|
1,804,402
|
-
|
*
|
|
Midsouth
Capital, Inc.(9)
|
1,901,196
|
2.7
|
1,271,488
|
-
|
*
|
|
Nicholas
Stergis
|
1,350,000
|
2.0
|
1,350,000
|
-
|
*
|
|
Baruch
Ruttner
|
1,350,000
|
2.0
|
1,350,000
|
-
|
*
|
|
David
Tanen
|
184,091
|
*
|
184,091
|
-
|
*
|
|
Michael
Ferrari
|
76,705
|
*
|
76,705
|
-
|
*
|
|
Han
Park
|
76,705
|
*
|
76,705
|
-
|
*
|
|
Sarah
Laut
|
30,682
|
*
|
30,682
|
-
|
*
|
*
|
Less
than 1%.
|
**
|
Beneficial
ownership is determined in accordance with the rules of the SEC.
Shares of
common stock subject to options or warrants currently exercisable
or
exercisable within 60 days of May 24, 2006, are deemed outstanding
for
computing the percentage ownership of the stockholder holding
the options
or warrants, but are not deemed outstanding for computing the
percentage
ownership of any other stockholder. Percentage of ownership is
based on
68,463,997 shares of common stock outstanding as of May 24,
2006.
|
(1)
|
The
shares of common stock issuable upon the exercise of warrants as
follows:
Iroquois Master Fund LTD, 2,526,164 shares; Platinum Partners Long
Term
Growth III, 2,165,283 shares; Alpha Capital AG/CO / LH Financial,
1,804,403 shares; Smithfield Fiduciary LLC / Highbridge Capital
Management, LLC, 1,082,642 shares; Nite Capital, LP, 1,893,522
shares;
Cyrille F. Buhrman, 1,804,403 shares; Ed Burke, 451,101 shares;
Little Gem
Life Sciences Fund, LLC 360,881 shares; Steven Mark, 90,220 shares;
Vasili
Myrianthopoulos, 72,176 shares; Kim Alberstadt 36,088 shares; Evan
Myrianthopoulos, 90,220 shares; Mike Sember, 180,440 shares; David
Gentile, 60,144 shares; Bernard Pismeny, 60,144 shares; Kyle Brengel,
60,144 shares; Bristol Capitol Advisors, LLC, 902,201 shares and
Midsouth
Capital Inc., 1,901,196 shares.
|
(2)
|
Joshua
Silverman is the natural person who exercises sole voting or dispositive
power with respect to the shares held of record by Iroquois Master
Fund
LTD. Iroquois Master Fund LTD is not a broker dealer, nor is it
affiliated
with one.
|
(3) |
Mark
Norducht is the natural person who exercises sole voting or dispositive
power with respect to the shares held of record by Platinum Partners
Long
Term Growth III. Platinum Partners Long Term Growth III is not a
broker
dealer, nor is it affiliated with one.
|
(4) |
Konrad
Ackerman is the natural person who exercises sole voting or dispositive
power with respect to the shares held of record by Alpha Capital
AG/CO /
LH Financial. Alpha Capital AG/CO / LH Financial are not broker dealers,
nor they affiliated with one.
|
(5) |
Highbridge
Capital Management, LLC is the trading manager of Smithfield Fiduciary
LLC. Glenn Dubin and Henry Swieca control Highbridge Capital Management,
LLC and as such are the natural persons who exercise shared voting
or
dispositive power with respect to the shares held of record by Smithfield
Fiduciary LLC. Each of Highbridge Capital Management, LLC, Glenn
Dubin and
Henry Swieca disclaim beneficial ownership of the securities held
by
Smithfield Fiduciary LLC. Smithfield Fiduciary LLC and Highbridge
Capital
Management, LLC are not broker dealers, nor are they affiliated with
one.
|
(6) |
Keith
Goodman is the natural person who exercises sole voting or dispositive
power with respect to the shares held of record by Nile Capital,
LP. Mr.
Goodman disclaims beneficial ownership of these securities. Nile
Capital,
LP is not a broker dealer, nor is it affiliated with
one.
|
(7) |
Jeffrey
Benison is the natural person who exercises sole voting or dispositive
power with respect to the shares held of record by Little Gem Life
Sciences Fund, LLC. Little Gem Life Sciences Fund, LLC is not a broker
dealer, nor is it affiliated with one.
|
(8) |
Bristol
Capital Advisors, LLC is the investment advisor to Bristol Investment
Fund, Ltd. Paul Kessler is the manager of Bristol Capital Advisors,
LLC
and as such is the natural person who exercises sole voting or dispositive
power with respect to the shares held of record by Bristol Investment
Fund, Ltd. Mr. Kessler disclaims beneficial ownership of these securities.
Bristol Investment Fund, Ltd. is not a broker dealer, nor is it affiliated
with one.
|
(9) |
MidSouth
Capital, Inc. is a broker-dealer who acted as placement agent for
the
private placement completed on April 10, 2006.
|
· |
ordinary
brokerage transactions and transactions in which the broker-dealer
solicits investors;
|
· |
block
trades in which the broker-dealer will attempt to sell the shares
as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
· |
purchases
by a broker-dealer as principal and resale by the broker-dealer for
its
account;
|
· |
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
· |
privately
negotiated transactions;
|
· |
to
cover short sales and other hedging transactions made after the date
that
the registration statement of which this prospectus is a part is
declared
effective by the Securities and Exchange
Commission;
|
· |
broker-dealers
may agree with the selling stockholders to sell a specified number
of such
shares at a stipulated price per share;
|
· |
a
combination of any such methods of sale;
and
|
· |
any
other method permitted pursuant to applicable
law.
|
Period
|
Price
Range
|
|
High
|
Low
|
|
Fiscal
Year Ended December 31, 2004:
|
|
|
First
Quarter
|
$1.58
|
$0.70
|
Second
Quarter
|
$0.97
|
$0.53
|
Third
Quarter
|
$0.65
|
$0.36
|
Fourth
Quarter
|
$0.81
|
$0.41
|
Fiscal
Year Ended December 31, 2005:
|
|
|
First
Quarter
|
$0.67
|
$0.35
|
Second
Quarter
|
$0.42
|
$0.29
|
Third
Quarter
|
$0.45
|
$0.32
|
Fourth
Quarter
|
$0.36
|
$0.22
|
Fiscal
Year Ended December 31, 2006:
|
|
|
First
Quarter
|
$0.69
|
$0.26
|
|
|||||||
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
|
Assets
Current
assets:
|
|||||||||||||
Cash
and cash equivalents
|
$
821,702
|
||||||||||||
Grants
receivable
|
564,330
|
||||||||||||
Prepaid
expenses
|
138,794
|
||||||||||||
Total
current assets
|
1,524,826
|
||||||||||||
Office
and laboratory equipment, net
|
44,728
|
||||||||||||
Intangible
assets, net
|
1,803,020
|
||||||||||||
Total
assets
|
$
3,372,574
|
||||||||||||
Liabilities
and shareholders’ equity
Current
liabilities:
|
|||||||||||||
Accounts
payable
|
$
1,530,900
|
||||||||||||
Accrued
royalties
|
60,000
|
||||||||||||
Accrued
compensation
|
148,601
|
||||||||||||
Accrued
other expenses
|
105,000
|
||||||||||||
Total
current liabilities
|
1,844,501
|
||||||||||||
Shareholders’
equity:
|
|||||||||||||
Common
stock, $.001 par value. Authorized 150,000,000
|
|||||||||||||
shares;
50,612,504 issued and outstanding
|
50,612
|
||||||||||||
Additional
paid-in capital
|
86,045,192
|
||||||||||||
Accumulated
deficit
|
(
84,567,731
|
)
|
|||||||||||
Total
shareholders’ equity
|
1,528,073
|
||||||||||||
Total
liabilities and shareholders’ equity
|
$
3,372,574
|
2005
|
2004
|
|||||||||||||
Revenues
|
$
3,075,736
|
$
997,4827,
|
||||||||||||
Cost
of revenues
|
(
2,067,034
|
)
|
(
936,6366
|
)
|
||||||||||
Gross
profit
|
1,008,702
|
60,8466
|
||||||||||||
Operating
expenses:
|
||||||||||||||
Research
and development
|
3,681,137
|
3,656,7766
|
||||||||||||
General
and administrative
|
2,162,616
|
2,321,1866
|
||||||||||||
Total
operating expenses
|
5,843,753
|
5,977,9622
|
||||||||||||
Loss
from operations
|
(
4,835,051
|
)
|
(
5,917,1166
|
)
|
||||||||||
Other
income (expense):
|
||||||||||||||
Interest
income
|
78,242
|
66,539
|
||||||||||||
Interest
(expense) reversal
|
36,549
|
(
20,997
|
)
|
|||||||||||
Total
other income (expense)
|
114,791
|
45,542
|
||||||||||||
Net
loss
|
(
4,720,260
|
)
|
(
5,871,574
|
)
|
||||||||||
Preferred
stock dividends
|
-
|
(
503,195
|
)
|
|||||||||||
Net
loss applicable to common shareholders
|
$(
4,720,260
|
)
|
$(
6,374,769
|
)
|
||||||||||
Basic
and diluted net loss per share applicable to common
shareholders
|
$
( 0.09
|
)
|
$
(
0.16
|
)
|
||||||||||
Basic
and diluted weighted average common shares outstanding
|
49,726,249
|
40,626,621
|
||||||||||||
Series
B Preferred Stock
|
Common
Stock
|
Additional
Paid-In capital
|
AccumulatedDeficit
|
Treasury
Stock
|
|||||||||||||||||||||
Shares
|
Stated
Value
|
Shares
|
Par
Value
|
Shares
|
Cost
|
||||||||||||||||||||
Balance,
January
1, 2004
|
126,488
|
$12,648,768
|
34,893,765
|
$
34,894
|
$67,005,276
|
(
|
$73,975,897
|
)
|
172,342
|
(
|
$468,267
|
)
|
|||||||||||||
Issuance
of common stock, from private placement
|
-
|
-
|
4,113,925
|
4,114
|
3,039,870
|
-
|
-
|
-
|
|||||||||||||||||
Conversion
of preferred stock to common stock
|
(
|
128,203
|
)
|
(
|
12,820,303
|
)
|
2,886,438
|
2,886
|
12,817,417
|
-
|
-
|
-
|
|||||||||||||
Exercise
of shares from options or warrants
|
-
|
-
|
377,976
|
378
|
104,269
|
-
|
-
|
-
|
|||||||||||||||||
Preferred
stock dividends
|
1,715
|
171,535
|
-
|
-
|
(
|
171,535
|
)
|
-
|
-
|
-
|
|||||||||||||||
Non-cash
compensation
|
-
|
-
|
-
|
467,183
|
-
|
-
|
|||||||||||||||||||
Purchase
of treasury stock
|
-
|
-
|
-
|
-
|
-
|
2,000
|
(
|
1,316
|
)
|
||||||||||||||||
Treasury
stock retired
|
-
|
-
|
(
|
53,700
|
)
|
(
|
54
|
)
|
(
|
41,832
|
)
|
-
|
(
|
53,700
|
)
|
41,886
|
|||||||||
Net
loss
|
-
|
-
|
-
|
-
|
(
|
5,871,574
|
)
|
-
|
|||||||||||||||||
Balance,
December
31, 2004
|
-
|
$
-
|
42,218,404
|
$
42,218
|
$83,216,533
|
(
|
$79,847,471
|
)
|
120,642
|
(
|
$427,697
|
)
|
|||||||||||||
Issuance
of common stock, from private placement
|
-
|
-
|
8,396,100
|
8,396
|
3,539,897
|
-
|
-
|
-
|
|||||||||||||||||
Treasury
stock retired
|
-
|
-
|
(
|
2,000
|
)
|
(
|
2
|
)
|
(
|
426,383
|
)
|
-
|
(
|
120,642
|
)
|
427,697
|
|||||||||
Reversal
of non-cash compensation
|
-
|
-
|
-
|
-
|
(
|
284,855
|
)
|
-
|
-
|
-
|
|||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
4,720,260
|
-
|
-
|
|||||||||||||||||
Balance,
December
31, 2005
|
-
|
$
-
|
50,612,504
|
$
50,612
|
$86,045,192
|
(
|
$84,567,731
|
)
|
-
|
$
-
|
|||||||||||||||
2005
|
2004
|
||||||||||||||||||
Operating
activities:
|
|||||||||||||||||||
Net
loss
|
$
( 4,720,260
|
)
|
$
(
5,871,574
|
)
|
|||||||||||||||
Adjustments
to reconcile net loss to net cash used by operating
activities:
|
|||||||||||||||||||
Amortization
and depreciation
|
194,284
|
296,234
|
|||||||||||||||||
Impairment
expense for intangibles
|
164,346
|
6,215
|
|||||||||||||||||
Non-cash
stock compensation
|
(
284,855
|
)
|
467,183
|
||||||||||||||||
Change
in operating assets and liabilities:
|
|||||||||||||||||||
Grants
receivable
|
178,657
|
(
722,033
|
)
|
||||||||||||||||
Prepaid
expenses
|
(
79,191
|
)
|
96,240
|
||||||||||||||||
Accounts
payable
|
(
167,039
|
)
|
1,457,371
|
||||||||||||||||
Accrued
royalties
|
(
40,000
|
)
|
(
220,000
|
)
|
|||||||||||||||
Accrued
compensation and other expenses
|
83,356
|
82,588
|
|||||||||||||||||
Total
adjustments
|
49,558
|
1,463,798
|
|||||||||||||||||
Net
cash used by operating activities
|
(
4,670,702
|
)
|
(
4,407,776
|
)
|
|||||||||||||||
Investing
activities:
|
|||||||||||||||||||
Purchases
of office and laboratory equipment
|
(
21,561
|
)
|
(
10,559
|
)
|
|||||||||||||||
Acquisition
of intangible assets
|
(
250,570
|
)
|
(
267,096
|
)
|
|||||||||||||||
Net
cash used by investing activities
|
(
272,131
|
)
|
(
277,655
|
)
|
|||||||||||||||
Financing activities: | |||||||||||||||||||
Repayments of note payable | ( 115,948 | ) | ( 243,119 |
)
|
|||||||||||||||
Net proceeds from issuance of common stock | 3,548,293 | 3,039,870 | |||||||||||||||||
Proceeds from exercise of options | - | 104,647 | |||||||||||||||||
Purchases of common stock for treasury | - | (1,316 |
)
|
||||||||||||||||
Net cash provided by financing activities | 3,432,345 | 2,900,082 | |||||||||||||||||
Net (decrease) in cash and cash equivalents | ( 1,510,488 | ( 1,785,349 | |||||||||||||||||
Cash and cash equivalents at beginning of period | 2,332,190 | 4,117,539 | |||||||||||||||||
Cash and cash equivalents at end of period | $ 821,702 | $ 2,332,190 | |||||||||||||||||
Supplemental
disclosure of cash flow:
|
|||||||||||||||||||
Cash paid for interest
|
$ 41,865 | $ 3,383 | |||||||||||||||||
Non-cash
transactions:
|
|||||||||||||||||||
Non-cash
stock option expense (reversal)
|
$( 284,855 | ) | $ 393,913 | ||||||||||||||||
Issuance of preferred stock dividend in kind
|
- | $ 171,535 | |||||||||||||||||
Issuance of common stock for intangible assets
|
- | $ 32,778 | |||||||||||||||||
Options for increase in subsidiary ownership
|
- | $ 88,740 | |||||||||||||||||
Issuance of common stock to induce preferred stock
conversion
|
- | $ 331,660 | |||||||||||||||||
2005
|
2004
|
||||||||||
Net
loss applicable to common shareholders
|
|||||||||||
As
reported
|
$
( 4,720,260
|
)
|
$
(
6,374,769
|
)
|
|||||||
Add
stock-based employee compensation expense related to stock options
determined under fair value method
|
(
393,226
|
)
|
(
1,023,368
|
)
|
|||||||
Amounts
(credited) charged to income
|
(
284,855
|
)
|
284,855
|
||||||||
Pro
forma net loss according to SFAS 123
|
$
( 5,398,341
|
)
|
$
(
7,113,282
|
)
|
|||||||
Net
loss per share:
|
|||||||||||
As
reported, basic and diluted
|
$
( 0 .09
|
)
|
$
(
0 .16
|
)
|
|||||||
Pro
forma, basic and diluted
|
$
( 0 .11
|
)
|
$
(
0 .18
|
)
|
· |
In
January 2006, the Company entered into a $6,000,000, 15 month equity
financing agreement with an institutional investor to fund operations
through the first quarter of 2007. This agreement provides for the
sale of
$20,000 of common stock per working day (the amount can be increased
if
the stock price is greater than $0.40). The stock price must be greater
than $0.12 in order to use the financing agreement. According to
the
Company’s management, this funding will be sufficient for research and
administration through this period.
|
· |
The
Company plans to continue seeking sources for additional equity
financing.
|
· |
The
Company has taken steps to be traded on the Over the Counter (“OTC”)
bulletin board. Participation in the OTC bulletin board requires
compliance with all SEC filing
requirements.
|
· |
The
Company plans to continue seeking grant funds from governmental
sources.
|
· |
The
Company believes that if there were no other sources of financing
and it
is not able to utilize the funding from the investment banking
organization, reductions or discontinued operations of several of
the
Company’s programs may be required. If this should occur, the Company
believes it could continue to operate over the next four quarters
at a
reduced level and only continue with the existing NIH and FDA grant
projects.
|
· |
The
Company is also exploring outlicensing opportunities for its
BioTherapeutic and BioDefense programs.
|
|
2005
|
2004 | |||||
Office
equipment
|
$
115,108
|
$
95,417
|
|||||
Laboratory
equipment
|
23,212
|
23,212
|
|||||
Total
|
138,320
|
118,629
|
|||||
Accumulated
depreciation
|
(
93,592
|
)
|
(
68,149
|
)
|
|||
$
44,728
|
$
50,480
|
Weighted
Average Amortization period
(years)
|
Cost
|
Accumulated
Amortization
|
Net
Book Value
|
|
December
31, 2005
|
10.2
|
$
2,605,472
|
$
802,452
|
$
1,803,020
|
December
31, 2004
|
10.6
|
$
2,611,195
|
$
728,741
|
$
1,882,454
|
Amortization
Amount
|
|
2006
|
$
170,000
|
2007
|
170,000
|
2008
|
170,000
|
2009
|
170,000
|
2010
|
170,000
|
2005
|
2004
|
|||||
Shares
available for grant at beginning of year
|
(
1,979,339
|
)
|
1,630,587
|
|||
Increase
in shares available
|
10,000,000
|
-
|
||||
Options
granted
|
(
3,500,000
|
)
|
(
4,500,000
|
)
|
||
Options
exercised
|
-
|
240,000
|
||||
Options
forfeited or expired
|
2,479,339
|
650,074
|
||||
Shares
available for grant at end of year
|
7,000,000
|
(
1,979,339
|
)
|
Options
|
Weighted
Average
Options
Exercise Price
|
|||||
Balance
at January 1, 2004
|
7,889,413
|
$
0.72
|
||||
Granted
|
4,500,000
|
0.49
|
||||
Forfeited
|
(
650,074
|
)
|
0.78
|
|||
Exercised
|
240,000
|
0.20
|
||||
Balance
at December 31, 2004
|
11,979,339
|
0.64
|
||||
Granted
|
500,000
|
0.41
|
||||
Forfeited
|
(
2,465,000
|
)
|
0.83
|
|||
Balance
at December 31, 2005
|
10,014,339
|
$
0.59
|
Price
Range
|
Weighted
Average Remaining
Contractual
Life in Years
|
Outstanding
Options
|
Exercisable
Options
|
||||
$0.20-$0.50
|
6.61
|
7,310,000
|
5,767,499
|
||||
$0.51-$1.00
|
5.69
|
2,362,839
|
2,262,839
|
||||
$1.01-$6.00
|
3.89
|
541,500
|
541,500
|
||||
Total
|
6.25
|
10,214,339
|
8,571,838
|
|
Options |
Weighted
Average Warrant
Exercise Price
|
|||||||||||
Balance
at January 1, 2004
|
12,207,523
|
$
|
1.37
|
||||||||||
Granted
|
2,580,429
|
0.80
|
|||||||||||
Balance
at December 31, 2004
|
14,787,952
|
1.24
|
|||||||||||
Granted
|
6,926,783
|
0.52
|
|||||||||||
Expired
|
(
452,383
|
)
|
5.91
|
||||||||||
Balance
at December 31, 2005
|
22,167,118
|
$
|
0.92
|
Price
Range
|
Weighted
Average Remaining
Contractual
Life in Years
|
Outstanding
Warrants
|
Exercisable
Warrants
|
||||
$0.35-$0.75
|
3.97
|
9,579,503
|
9,579,503
|
||||
$0.76-$1.50
|
2.81
|
10,141,733
|
10,141,733
|
||||
$1.51-$8.50
|
2.29
|
2,445,882
|
2,445,882
|
||||
Total
|
3.26
|
22,167,118
|
22,167,118
|
2005
|
2004
|
||||
Deferred
tax assets:
|
|||||
Net
operating loss carryforwards
|
$
23,260,000
|
$ 21,524,000
|
|||
Orphan
drug credit carryforwards
|
1,944,000
|
1,894,000
|
|||
Research
and development credit carryforwards
|
752,000
|
693,000
|
|||
Work
opportunity credit carryforwards
|
260,000
|
260,000
|
|||
Employee
Retention Credit
|
2,000
|
-
|
|||
Total
|
26,218,000
|
24,371,000
|
|||
Valuation
allowance
|
(
26,218,000
|
)
|
(
24,371,000
|
)
|
|
Net
deferred tax assets
|
$
-
|
$ -
|
2006
|
$
222,000
|
2007
|
981,000
|
2008
|
910,000
|
2009
|
1,609,000
|
2010
|
1,420,000
|
2005 | 2004 | ||
Net
Revenues
|
|
||
BioDefense |
$
2,896,878
|
$
997,482
|
|
BioTherapeutics |
178,858
|
-
|
|
Total |
$
3,075,736
|
$
997,482
|
|
Loss
from Operations
|
|||
BioDefense
|
$
( 847,830)
|
$
(
1,379,608)
|
|
BioTherapeutics
|
(
1,665,812)
|
(
2,653,508)
|
|
Corporate
|
(
2,321,409)
|
(
1,884,000)
|
|
Total
|
$
( 4,383,051)
|
$
(
5,917,116)
|
|
Identifiable
Assets
|
|||
BioDefense
|
$
2,189,216
|
$
2,192,097
|
|
BioTherapeutics
|
420,250
|
230,048
|
|
Corporate
|
763,108
|
2,645,570
|
|
Total
|
$
3,372,574
|
$
5,067,715
|
Amortization
and Depreciation Expense
|
|||
BioDefense
|
$
63,212
|
$
117,001
|
|
BioTherapeutics
|
118,351
|
169,264
|
|
Corporate
|
12,721
|
16,184
|
|
Total
|
$
194,284
|
$
302,449
|
2.1
|
Agreement
and Plan of Merger, dated May 10, 2006 by and among the Company,
Corporate
Technology Development, Inc., Enteron Pharmaceuticals, Inc. and
CTD
Acquisition, Inc. **
|
3.1
|
Amended
and Restated Certificate of Incorporation. (10)
|
3.2
|
Certificate
of Amendment to Amended and Restated Certificate of Incorporation.
(14)
|
3.3
|
By-laws.
(11)
|
4.1
|
Form
of Investor Warrant issued to each investor dated as of April
12, 2000.
(1)
|
4.2
|
Finder
Warrant issued to Paramount Capital, Inc. dated as of April 12,
2000. (1)
|
4.3
|
Warrant
issued to Aries Fund dated as of May 19, 1997. (1)
|
4.4
|
Warrant
issued to Aries Domestic Fund, L.P. dated as of May 19, 1997.
(1)
|
4.5
|
Warrant
issued to Paramount Capital, Inc. dated as of October 16, 1997.
(2)
|
4.6
|
Warrant
issued to Paramount Capital, Inc. dated as of October 16, 1997.
(2)
|
4.7
|
Warrant
issued to Élan International Services, Ltd. dated January 21, 1998. (3)
|
4.8
|
Form
of Warrant to be issued to CTD warrant holders. (4)
|
4.9
|
Form
of Warrant issued to each investor in the December 2002 private
placement.
(14)
|
4.10
|
Form
of Warrant issued to each investor in the September 2003 private
placement. (8)
|
4.11
|
Form
of Warrant issued to each investor in the March 2004 private
placement.
(9)
|
4.12
|
Form
of Warrant issued to each investor in the March 2004 private
placement.
(9)
|
4.13
|
Form
of Warrant issued to each investor in the February 2005 private
placement.
(13)
|
4.14
|
Form
of Warrant issued to each investor in the April 2006 private
placement.
(19)
|
5.1
|
Opinion
of Edwards Angell Palmer & Dodge LLP.**
|
10.1
|
Amended
and Restated 1995 Omnibus Incentive Plan. (10)
|
10.2
|
Lease
dated September 1, 2003 between the Company and L.N.R. Jefferson
LLC.
(15)
|
10.4
|
Form
of Affiliate Agreement dated as of August 15, 2001 by and between
the
Company and the affiliates of CTD. (5)
|
10.5
|
Noncompetition
and Nonsolicitation Agreement entered into by and among the Company,
CTD
and Steve H. Kanzer dated as of November 29, 2001. (7)
|
10.6
|
Termination
of the Endorex Newco joint venture between the Company, Élan Corporation,
Élan international services, and Elan Pharmaceutical Investments
dated
December 12, 2002. (7)
|
10.7
|
Option
Agreement with General Alexander M. Haig Jr. (7)
|
10.8
|
Separation
agreement and General Release between the Company and Ralph Ellison
dated
July 9, 2004. (18)
|
10.9
|
License
Agreement between the Company and The University of Texas Southwestern
Medical Center. (18)
|
10.10
|
License
Agreement between the Company and Thomas Jefferson University.
(18)
|
10.11
|
License
Agreement between the Company and The University of Texas Medical
Branch.
(18)
|
10.12
|
Consulting
Agreement between the Company and Lance Simpson of Thomas Jefferson
University. (14)
|
10.13
|
Form
of Subscription Agreement between the Company and each investor
dated July
18, 2003. (8)
|
10.14
|
Form
of Securities Purchase Agreement between the Company and each
investor
dated March 4, 2004. (9)
|
10.15
|
Employment
agreement between the Company and Greg Davenport dated September
1, 2004.
(18)
|
10.16
|
Employment
agreement between the Company and Mike Sember dated December
7, 2004. (18)
|
10.17
|
Employment
agreement between the Company and Evan Myrianthopoulos dated
December 7,
2004. (18)
|
10.18
|
Employment
agreement between the Company and James Clavijo dated February
18, 2005.
(18)
|
10.19
|
Form
of Securities Purchase Agreement between the Company and each
investor
dated February 1, 2005 (13).
|
10.20
|
Amendment
No. 1 dated February 17, 2005 to the Securities Purchase Agreement
between
the Company and each investor dated February 1, 2005. (18)
|
10.21
|
Form
Registration Rights agreement between the Company and each investor
dated
February 1, 2005. (14).
|
10.22
|
2005
Equity Incentive Plan dated December 12, 2005 of the definitive
proxy
statement. (16).
|
10.23
|
Form
S-8 Registration of Stock Options Plan dated December 30, 2005.
(14).
|
10.24
|
Form
of Securities Purchase Agreement between the Company and each
investor
dated January 17, 2006. (17).
|
10.25
|
Form
of Registration Rights agreement between the Company and each
investor
dated January 17, 2006. (17).
|
10.26
|
Securities
Purchase Agreement dated as of April 6, 2006 among the Company
and the
investors named therein. (19)
|
10.27
|
Registration
Rights Agreement dated as of April 6, 2006 among the Company
and the
investors named therein. (19)
|
23.1
|
Consent
of Sweeney, Gates & Co., independent registered public accounting
firm.*
|
23.2
|
Consent
of Edwards Angell Palmer & Dodge LLC (contained in the opinion filed
as Exhibit 5.1 hereto).**
|
*
**
|
Filed
herewith.
Previously
filed.
|
(1)
|
Incorporated
by reference to our Registration Statement on Form S-3 (File
No. 333-
36950), as amended on December 29, 2000.
|
(2)
|
Incorporated
by reference to our Quarterly Report on Form 10-QSB, as amended,
for the
fiscal quarter ended September 30, 1997.
|
(3)
|
Incorporated
by reference to our Annual Report on Form 10-KSB, as amended,
for the
fiscal year ended December 31, 1997.
|
(4)
|
Incorporated
by reference to our Registration Statement on Form S-4 filed
on October 2,
2001.
|
(5)
|
Incorporated
by reference to our current report on Form 8-K filed on December
14, 2001.
|
(6)
|
Incorporated
by reference to our Annual Report on Form 10-KSB as amended for
the fiscal
year ended December 31, 2001.
|
(7)
|
Incorporated
by reference to our Annual Report on Form 10-KSB as amended for
the fiscal
year ended December 31, 2002.
|
(8)
|
Incorporated
by reference to our current report on Form 8-K filed on July
18, 2003.
|
(9)
|
Incorporated
by reference to our current report on Form 8-K filed on March
4, 2004.
|
(10)
|
Incorporated
by reference to our Quarterly Report on Form 10-QSB, as amended,
for the
fiscal quarter ended September 30, 2003.
|
(11)
|
Incorporated
by reference to our Quarterly Report on Form 10-QSB, as amended,
for the
fiscal quarter ended June 30, 2003.
|
(12)
|
Incorporated
by reference to our Annual Report on Form 10-KSB, as amended,
for the
fiscal year ended December 31, 2003.
|
(13)
|
Incorporated
by reference to our current report on Form 8-K filed on February
3, 2005.
|
(14)
|
Incorporated
by reference to our Registration Statement on Form S-8 (File
No.
333-130801).
|
(15)
|
Incorporated
by reference to our current report on Form 8-K filed on January
20,
2006.
|
(16)
|
Incorporated
by reference to Appendix D to our Proxy Statement filed December
12,
2005.
|
(17)
|
Incorporated
by reference to our Registration Statement on Form SB-2/A (File
No.
333-131166).
|
(18)
|
Incorporated
by reference to our Annual Report on Form 10-KSB, as amended,
for the
fiscal year ended December 31, 2004.
|
(19)
|
Incorporated
by reference to our current report on Form 8-K filed on April
7,
2006.
|
Signature
|
|
Title
|
|
Date
|
/s/Michael
T. Sember
Michael
T. Sember
|
|
Director,
President and Chief Executive Officer (Principal Executive Officer)
|
|
May
25, 2006
|
/s/Evan
Myrianthopoulos
Evan
Myrianthopoulos
|
|
Director,
Chief Financial Officer (Principal Financial and Accounting Officer)
|
|
May
25, 2006
|
*
Alexander
P. Haig
|
|
Chairman
of the Board
|
|
May
25, 2006
|
*
Steve
H. Kanzer
|
|
Vice-Chairman
of the Board
|
|
May
25, 2006
|
*
James
S. Kuo
|
|
Director
|
|
May
25, 2006
|
*
T.J.
Madison
|
|
Director
|
|
May
25, 2006
|