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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended SEPTEMBER 30, 1997
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File No. 0-18734
LIDAK PHARMACEUTICALS
(Exact name of registrant as specified in its charter)
CALIFORNIA 33-0314804
(State or other jurisdiction of (IRS Employer Identification No).
incorporation or organization)
11077 N. TORREY PINES ROAD
LA JOLLA, CALIFORNIA 92037
(Address of principal executive office) (Zip Code)
(619) 558-0364
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section (g) of the Act:
Class A Common Stock, no par value
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities and Exchange Act of 1934
during the preceding 12 months (or for such shorter periods that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES [X] NO
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this form 10-K or any amendment to this
form 10-K. [X]
The aggregate market value of the Registrant's voting stock, held by
non-affiliates, computed by reference to the average of the closing bid and
asked prices of the Class A Common Stock as reported by NASDAQ on December 29,
1997: $90,771,229.
The number of shares of Common Stock of the Registrant issued and outstanding as
of December 29, 1997:
Class A common stock, no par value 38,742,511
Class B common stock, no par value 283,000
DOCUMENTS INCORPORATED BY REFERENCE
Registrant's definitive Proxy Statement which will be filed with the Securities
and Exchange Commission on or before January 28, 1998 in connection with
Registrant's annual meeting of stockholders to be held on March 14, 1998 is
incorporated by reference into Part III of this Report.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: January 8, 1998
LIDAK PHARMACEUTICALS
By: /s/David H. Katz
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David H. Katz, M.D.
President and Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the date indicated.
Signature Title Date
- --------- ----- ----
/s/David H. Katz President and Chief January 8, 1998
- ------------------------------------ Executive Officer
David H. Katz, M.D. (Principal Executive Officer)
/s/Jeffery B. Weinress Vice President and Chief January 8, 1998
- ------------------------------------ Financial Officer
Jeffery B. Weinress (Principal Financial and Accounting Officer)
/s/Daniel J. Paracka Chairman of the Board January 8, 1998
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Daniel J. Paracka
/s/Helmer P.K. Agersborg, Jr. Director January 8, 1998
- ------------------------------------
Helmer P.K. Agersborg, Jr., Ph.D.
/s/William N. Jenkins Director January 8, 1998
- ------------------------------------
William N. Jenkins
/s/Kenneth E. Olson Director January 8, 1998
- ------------------------------------
Kenneth E. Olson
/s/Stuart A. Samuels Director January 8, 1998
- ------------------------------------
Stuart A. Samuels
/s/Sidney N. Towle, Jr. Director January 8, 1998
- ------------------------------------
Sidney N. Towle, Jr.
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LIDAK PHARMACEUTICALS
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 1995, 1996 AND 1997, AND THE PERIOD
AUGUST 31, 1988 (INCEPTION) TO SEPTEMBER 30, 1997
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AUGUST 31, 1988
YEARS ENDED SEPTEMBER 30, (INCEPTION) TO
---------------------------------------------------- SEPTEMBER 30,
1995 1996 1997 1997
OPERATING ACTIVITIES:
Net Loss $(10,173,001) $ (6,130,241) $(11,109,242) $(45,405,440)
Adjustments to reconcile net loss to
net cash used for operating activities:
Depreciation and amortization 84,867 292,943 136,820 733,703
Non-cash interest expense 2,771,030 1,470,434 4,241,464
Technology license fee 3,545,713
Compensation paid with common stock
and stock options 129,792 86,167 661,792
Compensation forgiven by stockholder 66,923
Imputed interest on technology
license fee 82,613
Changes in assets and liabilities:
Interest receivable (16,913) (283,652) 228,875 (109,528)
Prepaid and other (77,111) (908,513) 823,923 (267,786)
Patent costs (113,535) (163,822) (54,445) (675,869)
Organizational costs (20,242)
Accounts payable 812,040 (190,813) (563,501) 765,917
Accrued compensation and payroll taxes 44,436 37,560 19,048 225,493
Due to MBI 1,064 5,483 4,888 26,698
Deferred revenue 500,000 (500,000)
---------- ---------- ---------- ------------
Net cash used for operating
activities: (9,308,361) (4,070,025) (9,457,033) (36,128,549)
---------- ---------- ---------- ------------
INVESTING ACTIVITIES:
Short-term investments 7,115,856 (1,235,350) 7,026,502
Capital expenditures (92,871) (122,425) (50,059) (592,699)
Note receivable - employee 138,649
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Net cash provided by (used for)
investing activities 7,161,634 (1,357,775) 6,976,443 (592,699)
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FINANCING ACTIVITIES:
Proceeds from issuance of common
and preferred stock 1,922,157 1,885,579 531,192 39,209,463
Proceeds from issuance of convertible
notes payable 13,500,000 6,000,000 19,500,000
See notes to financial statements. (Continued)-1
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LIDAK PHARMACEUTICALS
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED SEPTEMBER 30, 1995, 1996 AND 1997, AND THE PERIOD
AUGUST 31, 1988 (INCEPTION) TO SEPTEMBER 30, 1997
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AUGUST 31, 1988
YEARS ENDED SEPTEMBER 30, (INCEPTION) TO
-------------------------------------------------- SEPTEMBER 30,
1995 1996 1997 1997
FINANCING ACTIVITIES (Continued):
Debt issue costs (771,351) (296,059) (1,067,410)
Repayment of convertible notes payable (2,673,217) (2,673,217)
Stock issue costs (26,743) (83,495) (2,913,703)
Advances for purchase of common stock 125,000
Collection of notes receivable for
common stock 14,525
Proceeds from stockholder loans 322,788
Repayment of stockholder loans (322,788)
Proceeds from issuance of
subordinated notes payable -
net of issue costs 538,750
Repayment of subordinated notes payable (625,000)
Payment on technology license fee (958,326)
------------ ------------ ------------ -------------
Net cash provided by financing
activities 1,895,414 14,530,733 3,561,916 51,150,082
------------ ------------ ------------ -------------
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIVALENTS (251,313) 9,102,933 1,081,326 14,428,834
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 4,495,888 4,244,575 13,347,508
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CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 4,244,575 $ 13,347,508 $ 14,428,834 $ 14,428,834
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SUPPLEMENTAL DISCLOSURES
OF CASH FLOW INFORMATION:
Interest paid $ 77,433 $ 784,224 $ 993,763
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See notes to financial statements. (Concluded) -2
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