U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
( X ) Quarterly report under Section 13 of 15(d) of the Securities Exchange Act
of 1934.
For the quarterly period ended MAY 31, 2002 or
------------
( ) Transition report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the transition period from _______________ to _______________.
Commission file number 0-19866
----------------------------
PROTIDE PHARMACEUTICALS, INC.
(Exact name of small business issuer
as specified in its charter)
MINNESOTA 36-3384240
- ---------------------------------------- ----------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
1311 HELMO AVENUE, SAINT PAUL, MINNESOTA 55128
- ---------------------------------------- ----------------------
(Address of principal executive offices) (Zip Code)
Issuers telephone number, including area code: (651) 730-1500
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Act of 1934 during the past 12 months (or
for such shorter periods that the issuer was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.
Yes __X__ No _____
State the number of shares outstanding of each the issuer's classes of common
equity, as of the latest practicable date.
THE NUMBER OF SHARES OF COMMON STOCK, PAR VALUE $.01 PER SHARE, OUTSTANDING ON
JUNE 30, 2002 WAS 4,029,134.
Transitional small business format disclosure:
Yes _____ No __X__
1
Table of Contents
PROTIDE PHARMACEUTICALS, INC.
-----------------------------
Report on Form 10-QSB
for fiscal quarter ended
May 31, 2002
PART I -- FINANCIAL INFORMATION Page
----
ITEM 1. Financial Statements
Balance Sheet as of August 31, 2001
and May 31, 2002 3
Statement of Operations -- Three months ended May 31,
2002 and May 31, 2001, and nine months ended May 31,
2002 and May 31, 2001 5
Statement of Changes in Shareholders' Equity
for the year ended August 31, 2001 and the
nine months ended May 31, 2002 6
Statement of Cash Flows -- Nine months ended
May 31, 2002 and May 31, 2001 7
Notes to Financial Statements 8
ITEM 2. Management's Discussion and Analysis of Financial
Conditions and Results of Operations 9
PART II -- OTHER INFORMATION 14
2
PART I -- FINANCIAL INFORMATION
ITEM 1 -- FINANCIAL STATEMENTS
PROTIDE PHARMACEUTICALS, INC.
BALANCE SHEET
May 31, August 31,
ASSETS 2002 2001
-------------------- --------------------
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $98,343 $197,200
Certificates of deposit 175,000 215,000
Trade receivables 46,741 26,448
Accrued interest receivable 7,794 6,074
Inventories 56,851 52,711
Other 2,552 1,593
-------------------- --------------------
Total current assets 387,281 499,026
-------------------- --------------------
EQUIPMENT AND LEASEHOLD IMPROVEMENTS
Laboratory and production equipment 226,937 226,937
Office furniture and equipment 94,822 94,822
Leasehold improvements 138,426 138,426
-------------------- --------------------
460,185 460,185
Less accumulated depreciation (404,915) (383,622)
-------------------- --------------------
55,270 76,563
OTHER ASSETS
Patents, net 45,707 48,340
-------------------- --------------------
TOTAL ASSETS $488,258 $623,929
==================== ====================
See Notes to Financial Statements.
3
PROTIDE PHARMACEUTICALS, INC.
BALANCE SHEET
May 31, August 31,
LIABILITIES AND SHAREHOLDERS' EQUITY 2002 2001
-------------------- --------------------
(Unaudited)
CURRENT LIABILITIES
Accounts payable $7,489 $12,174
Accrued liabilities 30,658 53,563
Bank note payable - current 71,508 72,157
-------------------- --------------------
Total current liabilities 109,655 137,894
-------------------- --------------------
SHAREHOLDERS' EQUITY
Common stock issued and outstanding 40,291 37,332
Common stock subscribed 0 1,577
Additional paid-in capital 5,832,291 5,768,669
-------------------- --------------------
5,872,582 5,807,578
Accumulated deficit (5,493,979) (5,321,543)
-------------------- --------------------
Total shareholders' equity 378,603 486,035
-------------------- --------------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $488,258 $623,929
==================== ====================
See Notes to Financial Statements.
4
PROTIDE PHARMACEUTICALS, INC.
STATEMENT OF OPERATIONS
(Unaudited)
Three months ended Nine months ended
May 31, May 31,
2002 2001 2002 2001
- -------------------------------------------- --------------------------------------- ---------------------------------------
REVENUES
Net sales $123,503 $47,648 $285,443 $146,828
Cost of products sold 36,484 18,896 109,570 59,291
- -------------------------------------------- --------------- ---------------------- ----------------- ---------------------
GROSS MARGIN 87,019 28,752 175,873 87,537
- -------------------------------------------- --------------- ---------------------- ----------------- ---------------------
OPERATING EXPENSES
Research and development 37,185 37,365 111,292 116,239
Marketing and sales 27,702 32,811 83,818 82,006
Administration 49,481 51,396 159,705 171,945
- -------------------------------------------- --------------- ---------------------- ----------------- ---------------------
Total operating expenses 114,368 121,572 354,815 370,190
OPERATING LOSS (27,349) (92,820) (178,942) (282,653)
OTHER INCOME (EXPENSE)
Interest and investment income 1,693 4,271 5,554 18,449
Other income 0 0 3,645 20,538
Interest expense (818) (1,361) (2,693) (3,082)
- -------------------------------------------- --------------- ---------------------- ----------------- ---------------------
Total other income, net 875 2,910 6,506 35,905
NET LOSS ($26,474) ($89,910) ($172,436) ($246,748)
============================================ =============== ====================== ================= =====================
BASIC AND DILUTED LOSS PER
COMMON SHARE ($0.01) ($0.02) ($0.05) ($0.07)
- -------------------------------------------- --------------- ---------------------- ----------------- ---------------------
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 3,736,386 3,733,169 3,734,253 3,710,825
============================================ =============== ====================== ================= =====================
See Notes to Financial Statements.
5
PROTIDE PHARMACEUTICALS, INC.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
Balance at Shares Net loss for Balance at
August 31, 2001 Issued the period May 31, 2002
- ---------------------------------------------------------------------------------------------------------
Common Stock
Shares 3,733,169 295,965 4,029,134
Amount $37,332 $2,959 $40,291
Common Stock Subscribed
Shares 157,659 (157,659) 0
Amount $1,577 ($1,577) 0
Additional Paid-in Capital $5,768,669 $63,622 $5,832,291
Accumulated Deficit ($5,321,543) ($172,436) ($5,493,979)
- ---------------------------------------------------------------------------------------------------------
Total $486,035 $65,004 ($172,436) $378,603
See Notes to Financial Statements.
6
PROTIDE PHARMACEUTICALS, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
Nine months ended
May 31,
------------------------------------------
2002 2001
- --------------------------------------------------------------------------- ------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss for the period ($172,436) ($246,748)
Adjustments to reconcile net loss to
Net cash used in operating activities:
Depreciation and amortization 23,926 24,458
Changes in assets and liabilities:
(Increase) decrease in:
Accounts receivable (20,293) 10,965
Accrued interest receivable (1,720) 3,209
Inventories (4,140) (5,694)
Other (959) 3,974
Increase (decrease) in:
Accounts payable (4,685) 579
Accrued liabilities (22,905) 316
- --------------------------------------------------------------------------- ------------------- ----------------
Net cash used in operating activities (203,212) (208,941)
- --------------------------------------------------------------------------- ------------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturity of bank certificates of deposit, net 40,000 245,867
Capital expenditures 0 0
- --------------------------------------------------------------------------- ------------------- ----------------
Net cash from investing activities 40,000 245,867
- --------------------------------------------------------------------------- ------------------- ----------------
CASH FLOWS FROM FINANCING:
Proceeds from issuing common stock 65,004 5,000
Principal payments on bank note payable (649) (1,265)
- --------------------------------------------------------------------------- ------------------- ----------------
Net cash provided by financing activities 64,355 3,735
Net increase (decrease) in cash
and cash equivalents (98,857) 40,661
CASH AND CASH EQUIVALENTS:
Beginning of period 197,200 63,935
- --------------------------------------------------------------------------- ------------------- ----------------
End of period $98,343 $104,596
=========================================================================== =================== ================
See Notes to Financial Statements.
7
PROTIDE PHARMACEUTICALS, INC.
NOTES TO FINANCIAL STATEMENTS -- MAY 31, 2002
NOTE A - BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Item 310 of Regulation S-B.
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 only of normal
recurring adjustments) considered necessary for a fair presentation have been
included.
The organization and business of the Company, accounting policies followed
by the Company and other information is contained in the notes to the Company's
financial statements filed as part of the Company's August 31, 2001 Form 10-KSB.
This quarterly report should be read in connection with such annual report.
NOTE B - CASH AND CASH EQUIVALENTS
For purposes of reporting the statements of cash flows, the Company
considers all highly liquid debt instruments purchased with a maturity of three
months or less to be cash equivalents.
NOTE C - SHORT-TERM INVESTMENTS
As of May 31, 2002, the Company had investments of $175,000 in certificates
of deposit. Certificates of deposit are made only with the highest rated banks.
The Company also utilizes a money market fund, which is restricted by its
charter to Tier 1 instruments, for a portion of its investments. At times
throughout the year, the Company's cash, cash equivalents and certificates of
deposit in financial institutions may exceed FDIC insurance limits. The Company
has not experienced any losses in such accounts.
NOTE D - NOTES PAYABLE BANK
During April 1997 the Company borrowed $100,000 from a local bank with the
proceeds used for financing a portion of the tenants' improvements in the
Company's new facility. In February 2001 the loan was renegotiated with a
different Bank. The new loan is secured by a certificate of deposit at this
bank. The interest rate for this loan, currently 4%, is tied to the certificate
of deposit rate.
NOTE E - LOSS PER COMMON SHARE
Basic loss per share is computed based upon the weighted average number of
common shares outstanding during the period. Stock options for 307,000 shares
were not included in the computation of diluted loss per share as the results
were antidilutive.
8
ITEM 2--MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
INTRODUCTION
a. BACKGROUND AND PRODUCTS
In January 2001 Celox Laboratories, Inc. and Protide Pharmaceuticals,
Inc., merged with the surviving corporation named Protide Pharmaceuticals, Inc.
Protide Pharmaceuticals, Inc. ("Protide" or the "Company") is a
biotechnology company devoted to the discovery, development and
commercialization of technologies and processes in clinical cell therapy and
transfusion medicine, specifically in the areas of cancer, genetic disorders,
cell engineering and transplantation. The focus of Protide is in the area of
gene therapy, cell therapy and contract manufacturing for companies and
educational institutions that are working in these areas.
Celox Laboratories, Inc. will continue to market products that are sold for
research purposes. Celox was formed in 1985 as a Company that researches,
develops, manufactures, and markets cell biology products that are used in the
propagation of cells derived from mammals, including humans, and other species.
These specialized cell growth products are used primarily in academic,
pharmaceutical and other commercial laboratories to improve the growth,
productivity and quality of cell-derived medical and other biological products
such as vaccines, monoclonal antibodies, interferons, and human growth factor.
Since its inception, the Company has pursued a strategy of developing non-serum
based products for the growth of human and other mammalian cells.
The Company markets more than 20 different research products under the
Celox Laboratories brand name. The Company's proprietary products consist of six
different serum-free supplements and two cell freezing solutions. The Company
also manufactures five basal media formulations, a series of buffered saline
solutions, other cell biology reagents, and a variety of custom formulations.
During the first quarter of fiscal 2001 the Company introduced the new
product STEMSOL(TM). STEMSOL(TM) is a sterile filtered, USP Grade Dimethyl
Sulfoxide (DMSO) used in a cryopreservation solution for, among other things,
bone marrow, peripheral-blood stem cells and cord blood preservations. In
addition, DMSO/Dextran was introduced in the first quarter of fiscal 2001 and is
also used as a cryopreservative for these critical cells. These products are
labeled for research use only, not for human use.
The Company has received a Drug Master File classification from the Food
and Drug Administration (FDA) for TCM(TM). This classification could expedite
the FDA approval process for customers who want to use the Company's TCM(TM)
product for manufacturing purposes.
During the third quarter of fiscal 2000, the Company entered into an
agreement to manufacture specialized solutions for the processing of pancreatic
islet cells for transplants. These cells may be used instead of whole organ
transplants. During the first quarter of fiscal 2002 an order was received from
a second transplant center for these specialized solutions. The revenue from
this order was reflected in the second quarter of fiscal 2002.
9
b. VIASTEM(TM)
In March 1995, the Company filed a patent application for ViaStem(TM) in
the U.S. Patent and Trademark Office. The Company received the U.S. Patent in
early December 1996. This patent provides protection of the Company's
ViaStem(TM) technology through March of 2015. A second U.S. Patent was received
in August 1998. This second patent broadened the patented uses of ViaStem(TM) in
bone marrow transplantation and related therapies. The Company has also filed
the documents needed for an International Patent Application as required by the
Patent Cooperation Treaty. In October 1998 the Company received notice from the
New Zealand and Australian Patent Office that a patent on ViaStem(TM) had been
granted by each of the respective countries. In March 2000 notice was received
from the Patent Office in Canada that a patent had been issued for ViaStem(TM).
The Company received notice from the Russian Patent Office in May 2000 of the
official issue date for the patent for ViaStem(TM) in Russia. In March 2002 a
patent for ViaStem(TM) was received from the Mexican Patent Office. Protide
received notice from the Japan Patent Office that a patent on ViaStem(TM) had
been granted in Japan. Initial reports from other countries that have reviewed
the international patent application have been positive. Due to the unique
nature of ViaStem(TM), the Company pursued the patent process for this product.
On March 31, 2000, Protide Pharmaceuticals, Inc. (the then wholly owned
subsidiary of Celox) entered into an agreement with Fairview-University Medical
Center (FUMC), Minneapolis, MN. FUMC will provide collecting, processing and
assaying of human peripheral blood stem cells as part of Protide's clinical
investigation of ViaStem(TM). In the second quarter of fiscal 2002, the FUMC
named a new Principal Investigator (PI) at the University of Minnesota to
complete the additional information requested by the FDA after the departure of
the original PI from the University.
During May 2000 the Company submitted an application to the Food and Drug
Administration (FDA) to initiate human clinical trials for ViaStem(TM). This was
the first submission ever made by the Company to the FDA for testing in human
subjects. In August 2000 the Company announced that it had received notice from
the FDA that the clinical trial on had been placed on clinical hold pending
further information. The Company intends to submit the additional requested
information to the FDA in the near future.
c. DISTRIBUTION/MARKETING
The Company continues to sell its products on a direct basis to customers
around the world. In addition the Company has formed the following distribution
avenues:
The Company has a nonexclusive worldwide distribution agreement with ICN
Pharmaceuticals, Inc. (NYSE:ICN), Costa Mesa, CA. Under the agreement, ICN is
marketing Celox' TCM(TM), TCH(TM), TM-235(TM) serum replacement products as well
as Cellvation(TM). The Company has also entered into an agreement with ICN to
custom manufacture certain of the Company's basal media and balanced salt
solutions to ICN for worldwide distribution. ICN manufactures and markets a
broad range of prescription and over-the-counter pharmaceuticals, medical
diagnostic products and biotechnology research products in North and Latin
America, Eastern and Western Europe and the Pacific Rim countries.
In 1997, the Company began providing its proprietary products to Sigma
Chemical Company (NASDAQ:SIAL), St. Louis, MO. under a private label
distribution agreement for worldwide distribution.
In 1997, the Company entered into a nonexclusive distribution agreement
with TaKaRa Shuzo Co., Ltd., Biomedical Group, Kyoto, Japan. Under the
agreement, TaKaRa will initially market Celox' proprietary product
Cellvation(TM). TaKaRa's Biomedical Group leads the industry in several areas
owing to the international scope of its research operations which span from the
People's Republic of China to North America and Europe. TaKaRa will market
Cellvation(TM) in Japan, Taiwan, Korea and People's Republic of China.
10
The Company also has distribution of its products in Japan through
Funakoshi Co., LTD, a well-established Japanese distributor.
RESULTS OF OPERATIONS
During the quarter ended May 31, 2002, the Company had net sales of
$123,503 which was an increase of $75,855 or 159% from $47,648 reported in the
same quarter for the prior year. For the nine month period ended May 31, 2002
net sales totaled $285,443 resulting in an increase of $138,615 (94%) from
$146,828 reported in the comparable period in the previous fiscal period. The
increase between years for both of the reporting periods results primarily from
the amount and timing of custom orders, orders received from distributors and
increased sales of the new products.
The Company had a net loss of $26,474 for the quarter ended May 31, 2002
compared to a net loss of $89,910 for the same period in the previous year. For
the nine months ended May 31, 2002 the Company had a net loss of $172,436
compared to $246,748 for the comparable period in the previous year. The
decreased loss for both of the reporting periods results from substantially
increased sales coupled with reduced operating expenses offset by a decrease in
other income of $16,893 for the nine month reporting period. The nine month
period in the previous year included the receipt of a check in the amount of
$20,538 from the KPMG Litigation Settlement Fund in fiscal 2001. This check was
the result of a settlement with the Piper Jaffray Institutional Government
Fund's auditors, KPMG. The check was recognized as other income in the first
quarter of fiscal 2001. On a per share basis, the loss for the quarter ended May
31, 2002 equaled .007 which was rounded up to 1 cent versus a 2 cent loss in the
comparable period in fiscal 2001. For the nine months ended May 31, 2002 the
Company had a 5 cent loss per share compared to a 7 cent loss per share in the
comparable period in the previous year.
The cost of products sold was $36,484 or 30% of net sales for the three
months ended May 31, 2002, as compared to $18,896 or 40% of net sales for the
three months ended May 31, 2001. The cost of products sold for the nine months
ended May 31, 2002 was $109,570 or 38% of net sales compared to $59,291 or 40%
of net sales for the nine months ended May 31, 2001. The decreased percentage
for the current quarter and the nine month reporting period results from
substantially higher sales as well as the mix of products sold.
An operating loss of $27,349 was generated for the quarter ended May 31,
2002 compared to an operating loss of $92,820 for the same period in the
previous year. For the nine months ended May 31, 2002 an operating loss of
$178,942 was incurred compared to an operating loss of $282,653 for the nine
months ended May 31, 2001. The decrease between years for the three month and
nine reporting periods resulted from substantial sales increases along with
decreases in administrative and research and development expenses offset by
increased marketing and sales expenses associated with the introduction of new
products for the nine month reporting period.
The Company received interest and investment income of $1,693 during the
quarter ended May 31, 2002 as compared to $4,721 in the prior year. For the nine
month period ended May 31, 2002 the Company received $5,554 in interest and
investment income compared to $18,449 received in the comparable period in the
previous year. Investment income is derived primarily from the investment of the
proceeds of the Company's March 1992 initial public offering as well as from
subsequent private placements. The decrease in investment income during the
quarter and the nine month reporting period as compared to the previous year
results from significantly lower interest rates available for investment
balances.
11
Operating expenses decreased $7,204 (6%) to $114,368 from $121,572 for the
quarter ended May 31, 2002 as compared to the prior year. For the nine months
ended May 31, 2002 operating expenses decreased by $15,375 to $354,815 from
$370,190 in the previous year. The decrease for the three month reporting period
as well as the nine month period as compared to the prior fiscal year results
from lower administrative expenses and lower research and development expenses
offset by an increase in marketing and sales costs for the nine month reporting
period, which fluctuate based on timing of promotional activities.
Research and development costs decreased by $180 to $37,185 from $37,365 in
the current quarter as compared to the previous fiscal year. For the nine month
period, research and development costs decreased by $4,947 to $111,292 from
$116,239 in the previous year. The small decrease for the current quarter and
the larger decrease for the nine month period reflects lower expenditures in the
areas of salaries and professional fees as compared to the prior year. The
Company expects the costs of research and development to fluctuate based on the
status of preclinical and clinical trials for ViaStem(TM).
Marketing expenses decreased by $5,109 (16%) to $27,702 from $32,811 for
the quarter ended May 31, 2002 as compared to the previous year. For the nine
months ended May 31, 2002, marketing expenses increased by $1,812 to $83,818
from $82,006 in fiscal 2001. The decrease for the current quarter as compared to
the prior fiscal year results from reduced promotional expenditures. For the
nine month reporting period as compared to the previous year the increase
results primarily from promotional activities connected with the marketing of
STEMSOL(TM) and DMSO/Dextran, a companion product, during the period. The
Company expects that marketing and sales expenses will fluctuate based on
introduction of new products, new studies, and as new advertising materials are
developed.
Administrative expenses decreased by $1,915 (4%) for the quarter ended May
31, 2002 compared to the previous fiscal year to $49,481 from $51,396
Administrative expenses decreased by $12,240 (7%) to $159,705 from $171,945 in
the current nine month reporting period as compared to the previous year. The
decrease for both the three month reporting period and the nine month reporting
period is due to the amount and timing of legal and professional fees expended
in connection with the introduction of new products, agreements and matters
related to the advancement of ViaStem(TM).
LIQUIDITY AND CAPITAL RESOURCES
Capital resources on hand at May 31, 2002 include cash and short-term
investments of $273,343 and net working capital of $277,626. This represents a
decrease of $138,857 (34%) in cash and short-term investments and a decrease of
$83,506 (23%) in net working capital as compared to August 31, 2001.
The Company is leasing approximately 9,500 square feet of office,
laboratory and warehouse space in St. Paul, MN under a seven year lease. The
Company moved into the new facility during March 1997. As partial payment for
tenant improvements in the new facility, the Company borrowed $100,000 from a
local bank. In February 2000 the loan was renegotiated with a different bank.
The new loan is secured by a certificate of deposit at this bank. The interest
rate for this loan, currently 4%, is tied to the certificate of deposit rate.
The loan is for a one year term with a maturity in February 2003. The balance of
the tenant improvements over this amount was paid with Company funds.
During the second quarter of fiscal 2000 the Company raised $175,150 in
additional capital by selling 145,000 units at $1.15 per unit to five investors
through a private placement. Each unit consisted of one share of common stock
and a warrant to purchase an additional two shares of common stock at an
exercise price of $0.10 per share.
12
During the third quarter of fiscal 2000 additional funds in the amount of
$211,750 were raised by selling units at $1.15 per unit and common stock at
$1.40 per share to other investors in a private placement. The additional funds
raised will be primarily used for advancing ViaStem(TM) through the necessary
testing before FDA approval can be obtained.
During the second quarter of fiscal 2001, an additional 50,000 shares were
issued as a result of a private placement participant exercising warrants.
During the fourth quarter of fiscal 2001, the Company sold subscriptions
for 157,659 units of common stock and a warrant at $0.47 per unit in a private
offering.
The Company sold additional subscriptions for 53,200 units of common stock
and a warrant for $0.47 in the first quarter of fiscal 2002 and additional
subscriptions for 85,106 units of common stock and a warrant for $0.47 in the
second quarter of fiscal 2002.
The Company intends to pursue additional financing, subject to prevailing
market conditions. There is no guarantee however, that the Company will be able
to successfully raise an adequate amount of additional funds with terms that are
favorable to the Company. In addition, there can be no assurance that the
Company will be able to obtain the necessary FDA approvals for ViaStem(TM).
The Company anticipates spending approximately $90,000 during fiscal 2002
on capital expenditures. Through May 2002 the Company has made no capital
expenditures. The majority of the planned expenditures will be used for research
and development in connection with the development of ViaStem(TM). The Company
believes that its capital resources on hand at May 31, 2002 together with
revenues from product sales, will be sufficient to meet its cash requirements
for the fiscal year.
FORWARD LOOKING INFORMATION
Information contained in this Form 10-QSB contains "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995, which can be identified by the use of forward-looking terminology such
as "may", "will", "expect", "plan", "anticipate", "estimate" or "continue" or
the negative thereof or other variations thereon or comparable terminology.
There are certain important factors that could cause results to differ
materially from those anticipated by some of these forward-looking statements.
Investors are cautioned that all forward-looking statements involve risks and
uncertainty. The factors, among others, that could cause actual results to
differ materially include the Company's ability to obtain FDA approval for its
clinical products, the ability of the Company to raise additional capital and
the ability to execute its business plan.
13
PART II -- OTHER INFORMATION
ITEM 1. -- LEGAL PROCEEDINGS
The Company is not presently involved in any material legal proceedings.
ITEM 2. -- CHANGES IN SECURITIES
None
ITEM 3. -- DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. -- SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. -- OTHER INFORMATION
None
ITEM 6. -- (A) EXHIBITS
None
(B) REPORTS ON FORM 8-K
None
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
PROTIDE PHARMACEUTICALS, INC.
Dated: July 10, 2002 By: /S/ Milo R. Polovina
---------------------------------------------
Milo R. Polovina, President & CEO
(Principal Financial Officer)
14