x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 20-578559 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
19805 North Creek Parkway | ||
Bothell, Washington | 98011 | |
(Address of Principal Executive Offices) | (Zip Code) |
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | x |
(Do not check if a smaller reporting company) |
Part I - FINANCIAL INFORMATION | |||
Item 1. | F-1 | ||
F-1 | |||
Condensed ConsolidatedStatements of Cash Flows | |||
Item 1.A. Risk Factors | |||
6 | |||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | |||
6 | |||
Item 3. Defaults Upon Senior Securities | |||
6 | |||
Item 4. Mine Safety Disclosures | |||
6 | |||
Item 5. Other | |||
SIGNATURES | |||
7 |
March 31, 2014 | December 31, 2013 | June 30, 2014 | December 31, 2013 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 2,599 | $ | 1,034 | $ | 4,074 | $ | 1,034 | ||||||||
Marketable securities | 7,285 | 5,719 | - | |||||||||||||
Prepaid and other current assets | 153 | 139 | 156 | 139 | ||||||||||||
Mortgage note receivable, current portion | 148 | - | ||||||||||||||
Total current assets | 10,037 | 1,173 | 10,097 | 1,173 | ||||||||||||
Property and equipment, net | 412 | 469 | 361 | 469 | ||||||||||||
Deposits | 32 | 19 | 31 | 19 | ||||||||||||
Mortgage note receivable, long-term portion | 2,478 | - | ||||||||||||||
Total assets | $ | 10,481 | $ | 1,661 | $ | 12,967 | $ | 1,661 | ||||||||
Liabilities and stockholders' equity (deficit) | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | 289 | 224 | 180 | 224 | ||||||||||||
Accrued expenses | 177 | 139 | 281 | 139 | ||||||||||||
Derivative liabilities | 12,089 | 23 | 6,450 | 23 | ||||||||||||
Total current liabilities | 12,555 | 386 | 6,911 | 386 | ||||||||||||
Total liabilities | 12,555 | 386 | 6,911 | 386 | ||||||||||||
Commitments and contingencies | ||||||||||||||||
Series A convertible preferred stock, $.0001 par value, 7,150 shares authorized; 0 and 7,046 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively; liquidation preference of $14,000 as of December 31, 2013 | - | 10,108 | ||||||||||||||
Series A convertible preferred stock, $0.001 par value; 7,150 shares authorized; 0 and 7,046 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively; liquidation preference of $14,000 as of December 31, 2013 | - | 10,108 | ||||||||||||||
Stockholders' equity (deficit): | ||||||||||||||||
Series B convertible preferred stock, $.001 par value: 5,000 shares authorized, 1,000 and 279 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 1 | - | ||||||||||||||
Common stock, $.001 par value: 200,000 and 262,186 shares authorized, 121,580 and 0 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 122 | - | ||||||||||||||
Series B convertible preferred stock, $.001 par value; 5,000 shares authorized; 1,000 and 279 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively | 1 | - | ||||||||||||||
Common stock, $.001 par value; 200,000 and 262,186 shares authorized, 121,885 and 0 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively | 122 | - | ||||||||||||||
Additional paid-in capital | 11,961 | 3,502 | 12,084 | 3,502 | ||||||||||||
Accumulated other comprehensive loss | (1,451 | ) | - | |||||||||||||
Deficit accumulated during the development stage | (12,707 | ) | (12,335 | ) | ||||||||||||
Accumulated other comprehensive income | 1,827 | - | ||||||||||||||
Accumulated deficit | (7,978 | ) | (12,335 | ) | ||||||||||||
Total stockholders' equity (deficit) | (2,074 | ) | (8,833 | ) | 6,056 | (8,833 | ) | |||||||||
Total liabilities and stockholders' equity (deficit) | $ | 10,481 | $ | 1,661 | $ | 12,967 | $ | 1,661 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Operating expenses | ||||||||||||||||
Research and development | $ | 888 | $ | 980 | $ | 1,853 | $ | 1,986 | ||||||||
General and administrative | 499 | 51 | 1,066 | 104 | ||||||||||||
Total operating expenses | 1,387 | 1,031 | 2,919 | 2,090 | ||||||||||||
Loss from operations | (1,387 | ) | (1,031 | ) | (2,919 | ) | (2,090 | ) | ||||||||
Interest income | - | 1 | - | 2 | ||||||||||||
Realized gain on sale of marketable securities | 480 | - | 480 | - | ||||||||||||
Other expense | (2 | ) | - | (2 | ) | - | ||||||||||
Fair value of warrant liabilities in excess of proceeds from financing | - | - | (946 | ) | - | |||||||||||
Change in fair value of derivative liabilities | 5,639 | - | 7,744 | - | ||||||||||||
Total other income, net | 6,117 | 1 | 7,276 | 2 | ||||||||||||
Income (loss) before income taxes | 4,730 | (1,030 | ) | 4,357 | (2,088 | ) | ||||||||||
Income taxes | - | - | - | - | ||||||||||||
Net income (loss) | $ | 4,730 | $ | (1,030 | ) | $ | 4,357 | $ | (2,088 | ) | ||||||
Comprehensive income (loss): | ||||||||||||||||
Net income (loss) | $ | 4,730 | $ | (1,030 | ) | $ | 4,357 | $ | (2,088 | ) | ||||||
Unrealized gain on marketable securities | 3,354 | - | 1,827 | - | ||||||||||||
Total comprehensive income (loss) | $ | 8,084 | $ | (1,030 | ) | $ | 6,184 | $ | (2,088 | ) | ||||||
Net income (loss) per common share: | ||||||||||||||||
Basic income (loss) per share | $ | 0.01 | $ | (0.02 | ) | $ | 0.01 | $ | (0.04 | ) | ||||||
Weighted average common shares outstanding, basic | 326,760 | 57,255 | 326,160 | 57,255 | ||||||||||||
Diluted loss per share | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.04 | ) | ||||
Weighted average common shares outstanding, diluted | 326,760 | 57,255 | 326,160 | 57,255 |
Series A Convertible Preferred Stock | Series B Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated other comprehensive income | Accumulated deficit | Total Stockholders' Equity (Deficit) | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | 7,046 | $ | 10,108 | 279 | $ | - | $ | - | $ | 3,502 | $ | - | $ | (12,335 | ) | $ | (8,833 | ) | ||||||||||||||||||||||
Conversion of series A convertible stock | (7,046 | ) | (10,108 | ) | 721 | 1 | - | - | 10,107 | - | - | 10,108 | ||||||||||||||||||||||||||||
Merger between Biozone Pharmaceuticals, Inc. and Cocrystal Discovery, Inc. | - | - | - | - | 115,907 | 116 | (1,596 | ) | - | - | (1,480 | ) | ||||||||||||||||||||||||||||
Exercise of common stock options | - | - | - | - | 478 | - | 57 | - | - | 57 | ||||||||||||||||||||||||||||||
Stock-based compensation | - | - | - | - | - | - | 20 | - | - | 20 | ||||||||||||||||||||||||||||||
Issuance of common stock and warrants in January 2014 | - | - | - | 5,500 | 6 | (6 | ) | - | - | - | ||||||||||||||||||||||||||||||
Unrealized gain on marketable securities | - | - | - | - | - | - | - | 1,827 | - | 1,827 | ||||||||||||||||||||||||||||||
Net income | - | - | - | - | - | - | - | - | 4,357 | 4,357 | ||||||||||||||||||||||||||||||
Balance as of June 30, 2014 | - | $ | - | 1,000 | $ | 1 | 121,885 | $ | 122 | $ | 12,084 | $ | 1,827 | $ | (7,978 | ) | $ | 6,056 |
Six months ended June, | ||||||||
2014 | 2013 | |||||||
Operating activities: | ||||||||
Net income (loss) | $ | 4,357 | $ | (2,088 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Depreciation | 107 | 119 | ||||||
Stock-based compensation | 20 | 31 | ||||||
Fair value of warrant liabilities in excess of proceeds from financing | 946 | - | ||||||
Change in fair value of derivative liabilities | (7,744 | ) | - | |||||
Realized gain on sale of marketable securities | (480 | ) | - | |||||
Loss on sale of equipment | 2 | - | ||||||
Changes in operating assets and liabilities, net of effects of reverse merger with Biozone Pharmaceuticals, Inc.: | ||||||||
Prepaid expenses and other current assets | (14 | ) | 41 | |||||
Accounts payable and accrued expenses | (312 | ) | (33 | ) | ||||
Net cash used in operating activities | (3,118 | ) | (1,930 | ) | ||||
Investment activities: | ||||||||
Cash acquired in reverse merger with Biozone Pharmaceuticals, Inc. | 589 | - | ||||||
Long term deposits | (12 | ) | - | |||||
Proceeds from sale of marketable securities | 5,400 | - | ||||||
Investment in mortgage note receivable | (2,626 | ) | - | |||||
Net cash provided by investing activities | 3,351 | - | ||||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 57 | 5 | ||||||
Proceeds from issuance of common stock and warrants | 2,750 | - | ||||||
Net cash provided by financing activities | 2,807 | 5 | ||||||
Net increase (decrease) in cash and cash equivalents | 3,040 | (1,925 | ) | |||||
Cash and cash equivalents at beginning of period | 1,034 | 4,717 | ||||||
Cash and cash equivalents at end of period | $ | 4,074 | $ | 2,792 | ||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Unrealized gain on marketable securities | $ | 1,827 | $ | - | ||||
Fair value of assets acquired and liabilities assumed in reverse merger with Biozone Pharmaceuticals, Inc. | ||||||||
Prepaid expenses and other current assets | $ | 3 | $ | - | ||||
Marketable securities | 8,811 | - | ||||||
Accounts payable and accrued expenses | 410 | - | ||||||
Derivative liabilities | 10,475 | - |
Three months ended March 31, | Period from January 7, 2007 (Inception) to March 31, | |||||||||||
2014 | 2013 | 2014 | ||||||||||
Revenues | $ | - | $ | - | $ | 733 | ||||||
Operating expenses | ||||||||||||
Research and Development | 967 | 1,005 | 16,469 | |||||||||
General and Administrative | 565 | 53 | 2,343 | |||||||||
Total operating expenses | (1,532 | ) | 1,058 | 18,812 | ||||||||
Loss from operations | (1,532 | ) | (1,058 | ) | (18,079 | ) | ||||||
Interest income | - | - | 40 | |||||||||
Other income | - | - | 9 | |||||||||
Interest expense | - | - | (2 | ) | ||||||||
Fair value of warrant liabilities in excess of proceeds from financing | (946 | ) | - | (946 | ) | |||||||
Change in fair value of derivative liabilities | 2,106 | - | 6,271 | |||||||||
Total other income, net | 1,160 | - | 5,372 | |||||||||
Net loss | $ | (372 | ) | $ | (1,058 | ) | $ | (12,707 | ) | |||
Comprehensive loss: | ||||||||||||
Net loss | $ | (372 | ) | $ | (1,058 | ) | $ | (12,707 | ) | |||
Unrealized loss on marketable securities | (1,451 | ) | - | - | ||||||||
Total comprehensive loss | $ | (1,823 | ) | $ | (1,058 | ) | $ | (12,707 | ) | |||
Net loss per common share: | ||||||||||||
Basic loss per share | $ | (0.00 | ) | $ | (0.02 | ) | ||||||
Weighted average common shares outstanding, basic | 324,471 | 57,255 | ||||||||||
Diluted loss per share | $ | (0.00 | ) | $ | (0.02 | ) | ||||||
Weighted average common shares outstanding, diluted | 324,471 | 57,255 |
Series A Convertible Preferred Stock | Series B Convertible Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated other comprehensive loss | Deficit Accumulated During the Development Stage | Total Stockholders' Equity (Deficit) | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||
Balance as of December 31, 2013 | 7,046 | $ | 10,108 | 279 | $ | - | $ | - | $ | 3,502 | $ | - | $ | (12,335 | ) | $ | (8,833 | ) | |||||||||||||||
Conversion of Series A Convertible Preferred Stock | (7,046 | ) | (10,108 | ) | 721 | 1 | 10,107 | 10,108 | |||||||||||||||||||||||||
Merger between Biozone Pharmaceuticals, Inc. and Cocrystal Discovery, Inc. | 115,907 | 116 | (1,672 | ) | (1,556 | ) | |||||||||||||||||||||||||||
Exercise of common stock options | 175 | 19 | 19 | ||||||||||||||||||||||||||||||
Stock-based compensation | 11 | 11 | |||||||||||||||||||||||||||||||
Issuance of common stock and warrants in January 2014 | 5,500 | 6 | (6 | ) | - | ||||||||||||||||||||||||||||
Unrealized loss on marketable securities | (1,451 | ) | (1,451 | ) | |||||||||||||||||||||||||||||
Net loss | (372 | ) | (372 | ) | |||||||||||||||||||||||||||||
Balance as of March 31, 2014 | - | $ | - | 1,000 | $ | 1 | 121,582 | $ | 122 | $ | 11,961 | $ | (1,451 | ) | $ | (12,707 | ) | $ | (2,074 | ) |
Three months ended March 31, | Period from January 9, 2007 (inception) to March 31, | |||||||||||
2014 | 2013 | 2014 | ||||||||||
Operating activities: | ||||||||||||
Net loss | $ | (372 | ) | $ | (1,058 | ) | $ | (12,707 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
Depreciation | 57 | 60 | 793 | |||||||||
Stock based compensation | 11 | 18 | 363 | |||||||||
Fair value of warrant liabilities in excess of proceeds from financing | 946 | - | 946 | |||||||||
Change in fair value of derivative liabilities | (2,106 | ) | - | (6,271 | ) | |||||||
Changes in operating assets and liabilities, net of effects of reverse merger with Biozone Pharmaceuticals, Inc.: | ||||||||||||
Prepaid expenses and other current assets | (10 | ) | 27 | (166 | ) | |||||||
Accounts payable and accrued expenses | (306 | ) | 1 | 57 | ||||||||
Net cash used in operating activities | (1,780 | ) | (952 | ) | (16,985 | ) | ||||||
Investing activities: | ||||||||||||
Capital expenditures | - | - | (1,204 | ) | ||||||||
Cash acquired in reverse merger with Biozone Pharmaceuticals, Inc. | 589 | - | 589 | |||||||||
Long term deposits | (13 | ) | - | (13 | ) | |||||||
Net cash provided by (used in) investing activities | 576 | - | (628 | ) | ||||||||
Financing activitities | ||||||||||||
Proceeds from issuance of Series A preferred stock, net of issuance costs | - | - | 10,108 | |||||||||
Proceeds from issuance of common stock and options to Teva, net of issuance costs | - | - | 7,328 | |||||||||
Proceeds from exercise of stock options | 19 | 4 | 26 | |||||||||
Proceeds from issuance of common stock and warrants | 2,750 | - | 2,750 | |||||||||
Net cash provided by financing activities | 2,769 | 4 | 20,212 | |||||||||
Net increase (decrease) in cash and cash equivalents | 1,565 | (948 | ) | 2,599 | ||||||||
Cash and cash equivalents at beginning of period | 1,034 | 4,717 | - | |||||||||
Cash and cash equivalents at end of period | $ | 2,599 | $ | 3,769 | $ | 2,599 | ||||||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||||||||||||
Unrealized loss on marketable securities | $ | (1,451 | ) | $ | (1,451 | ) | ||||||
Assets acquired and liabilities assumed in reverse merger with Biozone Pharmaceuticals, Inc. | ||||||||||||
Prepaid expenses and other current assets | $ | 3 | $ | 3 | ||||||||
Marketable securities | 8,737 | 8,737 | ||||||||||
Accounts payable and accrued expenses | 410 | 410 | ||||||||||
Derivative liabilities | 10,475 | 10,475 |
Quoted Prices in Active Markets | Significant Other Observable Inputs | Unobservable Inputs | ||||||||||||||
Description | June 30, 2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 4,074 | $ | 4,074 | $ | - | $ | - | ||||||||
Marketable securities | 5,719 | - | 5,719 | - | ||||||||||||
Total assets | $ | 9,793 | $ | 4,074 | $ | 5,719 | $ | - | ||||||||
Liabilities: | ||||||||||||||||
Warrants potentially settleable in cash | $ | 6,450 | $ | - | $ | - | $ | 6,450 | ||||||||
Total liabilities | $ | 6,450 | $ | - | $ | - | 6,450 | |||||||||
December 31, 2013 | Quoted Prices in Active Markets | Significant Other Observable Inputs | Unobservable Inputs | |||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,034 | $ | 1,034 | $ | - | $ | - | ||||||||
Total assets | $ | 1,034 | $ | 1,034 | $ | - | - | |||||||||
Liabilities: | ||||||||||||||||
Derivative liability | $ | 23 | $ | - | $ | - | $ | 23 | ||||||||
Total liabilities | $ | 23 | $ | - | $ | - | 23 |
Quoted Prices in Active Markets | Significant Other Observable Inputs | Unobservable Inputs | ||||||||||||||
Description | March 31, 2014 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and Cash Equivalents | $ | 2,599 | $ | 2,599 | $ | - | $ | - | ||||||||
Marketable securities | 7,285 | 4,014 | 3,271 | |||||||||||||
Total assets | $ | 9,884 | $ | 6,613 | $ | 3,271 | $ | - | ||||||||
Liabilities: | ||||||||||||||||
Warrants potentially settleable in cash | $ | 12,089 | $ | - | $ | - | $ | 12,089 | ||||||||
Total liabilities | $ | 12,089 | $ | - | $ | - | 12,089 | |||||||||
Quoted Prices in Active Markets | Significant Other Observable Inputs | Unobservable Inputs | ||||||||||||||
Description | December 31, 2013 | (Level 1) | (Level 2) | (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Cash and Cash Equivalents | $ | 1,034 | $ | 1,034 | $ | - | $ | - | ||||||||
Total assets | $ | 1,034 | $ | 1,034 | $ | - | - | |||||||||
Liabilities: | ||||||||||||||||
Derivative liability | $ | 23 | $ | - | $ | - | $ | 23 | ||||||||
Total liabilities | $ | 23 | $ | - | $ | - | 23 |
Fair Value Measurements Using Significant Unobservable Inputs | Fair Value Measurements Using Significant Unobservable Inputs | |||||||
(Level 3) | (Level 3) | |||||||
Balance, January 1, 2014 | $ | 23 | $ | 23 | ||||
Change in fair value of Teva option | (23 | ) | (23 | ) | ||||
Estimated fair value of warrants assumed in merger on January 2, 2014 | 10,475 | 10,475 | ||||||
Estimated fair value of warrants issued in January sale of common stock | 3,696 | |||||||
Change in fair value of warrants for the period ended March 31, 2014 | (2,082 | ) | ||||||
Balance at March 31, 2014 | $ | 12,089 | ||||||
Estimated fair value of warrants issued in January common stock sale | 3,696 | |||||||
Change in fair value of warrants for the period ended June 30, 2014 | (7,721 | ) | ||||||
Balance at June 30, 2014 | $ | 6,450 |
As of June 30, 2014 | ||||
Warrants outstanding | 26,669 | |||
Stock options outstanding | ||||
Options reserved for future issuance under the Company's 2007 Incentive Plan | ||||
Total reserved for future issuance |
January 2012 warrants | February 2012 warrants | June 2013 warrants | June 2013 warrants | August 2013 warrants | October 2013 warrants | October 2013 warrants | January 2014 warrants | Total | |||||||||||||||||||||||||||
Outstanding, January 1, 2014 | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||
Warrants acquired in merger | 650 | 1,000 | 455 | 1,864 | 10,000 | 200 | 7,000 | 21,169 | |||||||||||||||||||||||||||
Warrants granted in period ended March 31, 2014 | 5,500 | 5,500 | |||||||||||||||||||||||||||||||||
Outstanding, March 31, 2014 | 650 | 1,000 | 455 | 1,864 | 10,000 | 200 | 7,000 | 5,500 | 26,669 |
January 2012 warrants | February 2012 warrants | June 2013 warrants | June 2013 warrants | August 2013 warrants | October 2013 warrants | Series A warrants | January 2014 warrants | Total | ||||||||||||||||||||||||||||
Outstanding, January 1, 2014 | - | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Warrants acquired in merger | 650 | 1,000 | 455 | 1,864 | 10,000 | 200 | 7,000 | - | 21,169 | |||||||||||||||||||||||||||
Warrants issued | - | - | - | - | - | - | - | 5,500 | 5,500 | |||||||||||||||||||||||||||
Outstanding, June 30, 2014 | 650 | 1,000 | 455 | 1,864 | 10,000 | 200 | 7,000 | 5,500 | 26,669 |
February 2012 warrants | August 2013 warrants | October 2013 warrants | October 2013 warrants | January 2014 warrants | ||||||||||||||||||||||||||||||||||||
February 2012 warrants | August 2013 warrants | October 2013 warrants | October 2013 warrants | January 2014 warrants | ||||||||||||||||||||||||||||||||||||
Strike price | $ | 0.60 | $ | 0.40 | $ | 0.50 | $ | 0.50 | $ | 0.50 | $ | 0.60 | $ | 0.40 | $ | 0.50 | $ | 0.50 | $ | 0.50 | ||||||||||||||||||||
Expected term (years) | 1.9 | 9.4 | 4.6 | 9.6 | 9.8 | 1.6 | 9.1 | 4.3 | 9.3 | 9.5 | ||||||||||||||||||||||||||||||
Cumulative volatility % | 73 | % | 105 | % | 84 | % | 105 | % | 105 | % | 67 | % | 105 | % | 82 | % | 105 | % | 105 | % | ||||||||||||||||||||
Risk-free rate % | 0.36 | % | 2.92 | % | 1.32 | % | 2.92 | % | 2.96 | % | 0.35 | % | 2.42 | % | 1.36 | % | 2.44 | % | 2.47 | % |
Total number of shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | ||||||||||
Outstanding options at January 1, 2014 | 4,402,890 | 0.11 | $ | 937,816 | ||||||||
Granted | - | - | - | |||||||||
Exercised | (477,795 | ) | 0.11 | (101,293 | ) | |||||||
Cancelled | (76,702 | ) | 0.11 | (16,107 | ) | |||||||
Outstanding at June 30, 2014 | 3,848,393 | $ | 0.11 | $ | 808,163 | |||||||
Options exercisable at June 30, 2014 | 3,918,139 | $ | 0.10 | $ | 861,991 |
Total number of shares | Weighted Average Exercise Price | Aggregate Intrinsic Value | ||||||||||
Outstanding options at January 1, 2014 | 4,402,890 | $ | 0.11 | $ | 2,038,538 | |||||||
Granted | - | |||||||||||
Exercised | (175,272 | ) | 0.11 | 80,976 | ||||||||
Cancelled | (71,606 | ) | 0.11 | 32,939 | ||||||||
Outstanding at March 31, 2014 | 4,156,012 | $ | 0.11 | $ | 1,911,766 | |||||||
Options exercisable at March 31, 2014 | 3,652,470 | $ | 0.10 | $ | 1,701,827 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Numerator: | ||||||||||||||||
Net income/(loss) | $ | 4,730 | $ | (1,030 | ) | $ | 4,357 | $ | (2,088 | ) | ||||||
Less change in fair value of derivative liability | 5,639 | - | 7,744 | - | ||||||||||||
Net loss attributable to shareholders | (909 | ) | (1,030 | ) | (3,387 | ) | (2,088 | ) | ||||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted-average shares outstanding | 326,760 | 57,255 | 326,160 | 57,255 | ||||||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.01 | $ | (0.02 | ) | $ | 0.01 | $ | (0.04 | ) | ||||||
Diluted | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.04 | ) |
Three and Six months ended June 30, | ||||||||
2014 | 2013 | |||||||
Options to purchase common stock | 3,848 | 4,403 | ||||||
Warrants to purchase common stock | 26,669 | 3,969 | ||||||
Series A convertible preferred stock | - | 9,256 | ||||||
Total | 30,517 | 17,628 |
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
Options to purchase common stock | 4,156 | 4,403 | ||||||
Warrants to purchase common stock | 26,669 | 1,650 | ||||||
Series A convertible preferred stock | - | 9,256 | ||||||
Total | 30,825 | 15,309 |
Hepatitis C. We have selected a lead molecule to advance for IND-enabling studies. Cocrystal’s non-nucleoside lead is highly potent, effective against all HCV genotypes, and shows a favorable pharmacokinetic profile. We expect to file regulatory submissions to initiate clinical trials in early 2015. We are also pursuing inhibitors of the HCV NS3 helicase. Cocrystal’s helicase inhibitor will be a first-in-class drug, and may be combined with an RNA polymerase inhibitor for greater effectiveness and a higher barrier to resistance. |
Influenza. We have developed novel inhibitors of the influenza endonuclease enzyme that is essential for viral genome replication. We expect to file an Investigational New Drug application with the U.S. Food & Drug Administration in December |
Cocrystal Pharma, Inc. | ||
Dated: | By: | /s/ Gary Wilcox Gary Wilcox |
Chief Executive Officer (Principal Executive Officer) | ||
Dated: August 14, 2014 | By: | /s/ Gerald McGuire Gerald McGuire |
Chief Financial Officer (Principal Financial Officer) |
Exhibit | Incorporated by Reference | Filed or Furnished | ||||||||
No. | Exhibit Description | Form | Date | Number | Herewith | |||||
2.1 | Agreement and Plan of Merger – Cocrystal Discovery | 8-K | 1/8/14 | 2.1 | ||||||
2.2 | Certificate of Merger – Cocrystal Discovery | 8-K | 1/8/14 | 2.2 | ||||||
2.3 | Certificate of Merger – Delaware | 10-K | 4/4/14 | 2.4 | ||||||
2.4 | Articles of Merger - Nevada | 10-K | 4/4/14 | 2.5 | ||||||
2.5 | Certificate of Designation – Series B | 8-K | 1/8/14 | 3.1 | ||||||
3.7 | Certificate of Incorporation – Delaware | 10-K | 4/4/14 | 3.7 | ||||||
3.8 | Bylaws – Delaware | 10-K | 4/4/14 | 3.9 | ||||||
10.1 | Form of Securities Purchase Agreement - January 2014 Offering | 8-K | 1/21/14 | 10.1 | ||||||
10.2 | Form of Warrant - January 2014 Offering | 8-K | 1/21/14 | 10.2 | ||||||
10.3 | Employment Agreement – Gary Wilcox* | 8-K | 1/8/14 | 10.1 | ||||||
10.4 | Employment Agreement – Sam Lee* | 8-K | 1/8/14 | 10.2 | ||||||
10.5 | 2007 Equity Incentive Plan - Cocrystal Discovery | S-8 | 1/2/14 | 10.1 | ||||||
10.13 | Form of Indemnification Agreement | 10-K | 4/4/14 | 10.13 | ||||||
10.20 | Share Purchase Agreement | Filed+ | ||||||||
10.21 | Research and Collaboration Agreement Between Teva Pharmaceutical Industries Limited and Cocrystal Discovery, Inc. | Filed+ | ||||||||
10.22 | Exclusive License Agreement Between Teva Pharmaceutical Industries Limited and Cocrystal Discovery, Inc. | Filed+ | ||||||||
31.1 | Certification of Principal Executive Officer (302) | Filed | ||||||||
31.2 | Certification of Principal Financial Officer (302) | Filed | ||||||||
32.1 | Certification of Principal Executive and Principal Financial Officer (906) | Furnished** | ||||||||
101.INS | XBRL Instance Document | Filed | ||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed | ||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed | ||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed | ||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed | ||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed |
Exhibit No. | Exhibit Description | Incorporated by Reference | Filed or Furnished Herewith | |||||||
Form | Date | Number | ||||||||
31.1 | Certification of Principal Executive Officer (302) | Filed | ||||||||
31.2 | Certification of Principal Financial Officer (302) | Filed | ||||||||
32.1 | Certification of Principal Executive and Principal Financial Officer (906) | Furnished** | ||||||||
101.INS | XBRL Instance Document | Filed | ||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | Filed | ||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | Filed | ||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | Filed | ||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | Filed | ||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | Filed |