SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q/A-1
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________________ to _______________
Commission File Number 1-8366
POLYDEX PHARMACEUTICALS LIMITED
(Exact Name of Registrant as Specified in Its Charter)
Commonwealth of the Bahamas None
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(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
421 Comstock Road, Toronto, Ontario, Canada M1L 2H5
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code (416) 755-2231
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Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
Indicate by check whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Act of 1934 during
the preceding 12 months (or for such shorter period 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 the number of shares outstanding of each of the issuer's
classes of common shares, as of the latest practicable date.
Common Shares, $.016 Par Value 3,016,917 shares
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(Title of Class) (Outstanding at May 6, 1999)
The Registrant hereby amends its Form 10-Q for the quarterly period
ended April 30, 1999 to restate the following line items on its consolidated
balance sheets: "Property, plant and equipment, net" from $4,438,883 to
$4,438,993, and "Due from Novadex Corp." from $858,574 to $658,574.
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PART I
FINANCIAL INFORMATION
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED).
POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Consolidated Balance Sheets
(Expressed in United States dollars)
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(Unaudited)
April 30 April 30
1999 1998
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ASSETS
Current assets:
Cash $ 434,908 $ 655,131
Trade Accounts receivable 1,244,633 984,934
Inventories 2,005,460 1,917,278
Prepaid expenses and other current assets 82,898 69,188
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3,767,899 3,620,531
Property, plant and equipment, net 4,438,993 4,233,144
Patents, net 167,232 166,404
Due from Novadex Corp. 658,574 658,574
Due from shareholder 887,032 903,307
Deferred income taxes 580,715 776,000
Other assets 74,769 92,574
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$10,575,214 $10,456,264
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(Unaudited)
April 30 January 31
1999 1999
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,104,379 $ 1,189,886
Accrued liabilities 461,677 466,556
Income taxes payable 57,601 51,779
Current portion of long-term debt 125,822 107,994
Current portion of mandatorily redeemable capital stock 50,000 100,000
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1,799,479 1,916,215
Long-term debt 531,238 521,170
Due to shareholder 648,300 637,017
Deferred gain 657,550 659,018
Deferred income taxes 85,473 148,083
Mandatorily redeemable capital stock 300,000 300,000
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Total liabilities 4,022,040 4,181,503
Redeemable capital stock (93,899 common shares; 99/01/31 - 93,899) 1,028,733 1,028,733
Shareholders' equity:
Capital stock:
Authorized:
100,000 A preferred shares of $0.10 each 899,400 B preferred
shares of $0.0167 each 4,000,000 common shares of $0.0167 each
Issued and outstanding:
899,400 B preferred shares 15,010 15,010
2,923,018 common shares (99/01/31 - 2,923,018) 48,552 48,552
Contributed surplus 22,464,783 22,464,783
Deficit (16,270,843) (16,498,775)
Accumulated other comprehensive income (733,061) (783,542)
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5,524,441 5,246,028
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$ 10,575,214 $ 10,456,264
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POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
(Expressed in United States dollars)
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Quarter Ended Quarter Ended
April 30 April 30
1999 1998
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Sales $ 3,170,641 $ 2,930,964
Cost of products sold 2,144,107 2,015,282
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1,026,534 915,682
Expenses:
General and administrative 397,808 373,147
Depreciation 123,683 108,456
Research and development 79,504 42,403
Interest expense 34,734 34,906
Selling and promotion 19,720 44,496
Amortization 5,474 9,072
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660,923 612,480
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Income from operations 365,611 303,202
Other income:
Gain on sale of equipment - 6,669
Interest and other 8,618 18,963
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8,618 25,632
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Income before the undernoted 374,229 328,834
Provision for income taxes (146,297) (152,821)
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Income for the period $ 227,932 $ 176,013
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Per share information:
Earnings per common share for the period:
Basic $ 0.08 $ 0.06
Diluted $ 0.08 $ 0.06
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Weighted average number of common shares
outstanding for the period 3,016,917 2,996,907
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POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Consolidated Statements of Shareholders' Equity and Comprehensive Income
(Unaudited)
(Expressed in United States dollars)
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Quarter Ended Quarter Ended
April 30 April 30
1999 1998
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Preferred Shares:
Balance, beginning of period $ 15,010 $ 15,010
Private placement of preferred shares - -
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Balance, end of period $ 15,010 $ 15,010
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Common Shares:
Balance, beginning of period $ 48,552 $ 47,283
Exercise of options - -
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Balance, end of period $ 48,552 $ 47,283
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Contributed Surplus:
Balance, beginning of period $ 22,464,783 $ 21,826,025
Exercise of options - -
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Balance, end of period $ 22,464,783 $ 21,826,025
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Deficit:
Balance, beginning of period $ (16,498,775) $ (17,071,168)
Net income for the period 227,932 176,013
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Balance, end of period $ (16,270,843) $ (16,895,155)
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Accumulated Other Comprehensive Income:
Balance, beginning of period $ (783,542) $ (665,768)
Currency translation adjustment for the period 50,481 19,969
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Balance, end of period $ (733,061) $ (645,799)
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Comprehensive Income for the period:
Net income (loss) for the period $ 227,932 $ 176,013
Currency translation adjustment for the period 50,481 19,969
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$ 278,413 $ 195,982
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POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Consolidated Statements of Cash Flows
(Expressed in United States dollars)
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Year to Date Year to Date
April 30 April 30
1999 1998
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Cash provided by (used in):
Operating activities:
Net income for the period $ 227,932 $ 176,013
Add (deduct) items not affecting cash:
Depreciation and amortization 129,157 117,528
Deferred income taxes 135,304 152,821
Loss (gain) on sale of equipment - (6,669)
Legal expenses charged to deferred gain (1,468) (58)
Change in non-cash operating working capital (416,466) (251,383)
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74,459 188,252
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Investing activities:
Additions to property, plant and equipment and patents (298,617) (171,222)
Proceeds from sale of equipment - 9,500
Repayment of due from shareholder, net 16,005 4,344
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(282,612) (157,378)
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Financing activities:
Repayment of loans payable (8,481) -
Repayment of long-term debt (24,526) (14,164)
Proceeds from long-term debt 52,422 20,000
Payment of mandatorily redeemable capital stock (50,000) -
Repayment of advances from shareholder, net 11,283 11,599
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(19,302) 17,435
Effect of exchange rate changes on cash 7,232 8,553
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Increase (decrease) in cash position (220,223) 56,862
Cash, beginning of period 655,131 288,527
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Cash, end of period $ 434,908 $ 345,389
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POLYDEX PHARMACEUTICALS LIMITED AND
SUBSIDIARIES
Segmented Information (Unaudited)
(Expressed in United States dollars)
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Quarter Ended Quarter Ended
April 30 April 30
1999 1998
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SALES:
Dextran $ 1,115,422 $ 1,034,308
Veterinary products 2,055,219 1,896,656
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Total consolidated sales $ 3,170,641 $ 2,930,964
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INCOME FROM OPERATIONS:
Dextran $ 375,370 $ 334,185
Veterinary products 169,406 139,140
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Total income from operations from segments 544,776 473,325
Less: Unallocated corporate expenses 179,165 170,123
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Total consolidated income from operations $ 365,611 $ 303,202
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ASSETS:
Dextran $ 5,079,095 $ 4,469,019
Veterinary products 4,090,343 3,781,737
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Total assets from segments 9,169,438 8,250,756
Corporate assets 1,405,776 1,640,342
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Total consolidated assets $ 10,575,214 $ 9,891,098
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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: June 16, 1999
POLYDEX PHARMACEUTICALS LIMITED
(Registrant)
By /s/ George G. Usher
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George G. Usher, Chairman, President and Chief
Executive Officer
(Principal Executive Officer)
By /s/ Sharon L. Wardlaw
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Sharon L. Wardlaw, Treasurer, Secretary and
Chief Financial and Accounting Officer
(Principal Financial Officer)
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