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0000897069-06-002389.txt : 20061113
0000897069-06-002389.hdr.sgml : 20061110
20061113132552
ACCESSION NUMBER: 0000897069-06-002389
CONFORMED SUBMISSION TYPE: 6-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20060930
FILED AS OF DATE: 20061113
DATE AS OF CHANGE: 20061113
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: NYMOX PHARMACEUTICAL CORP
CENTRAL INDEX KEY: 0001018735
STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835]
IRS NUMBER: 000000000
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 6-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 001-12033
FILM NUMBER: 061207501
BUSINESS ADDRESS:
STREET 1: 9900 CAVENDISH BLVD., SUITE 306
STREET 2: ST. LAURENT
CITY: QUEBEC CANADA
STATE: A8
ZIP: H4M 2V2
BUSINESS PHONE: 514-332-32
MAIL ADDRESS:
STREET 1: 9900 CAVENDISH BLVD., SUITE 306
STREET 2: ST. LAURENT
CITY: QUEBEC CANADA
STATE: A8
ZIP: H4M 2V2
6-K
1
cmw2406.htm
QUARTERLY REPORT
FORM 6-K
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
Report of Foreign
Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934
For the period ended
September 30, 2006
Commission File Number:
001-12033
Nymox Pharmaceutical
Corporation
9900 Cavendish Blvd.,
St. Laurent, QC, Canada, H4M 2V2
Indicate
by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F:
Form 20-F X
Form 40-F
Indicate
by check mark if the registrant is submitting Form 6-K in paper as permitted by Regulation
S-T Rule 101(b)(l):
Indicate
by check mark if the registrant is submitting Form 6-K in paper as permitted by Regulation
S-T Rule 101(b)(7):
Indicate
by check mark whether by furnishing the information contained in this Form, the registrant
is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b)
under the Securities Exchange Act of 1934.
Yes
No X
If
Yes is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b):
82-______________
CORPORATE PROFILE
Nymox Pharmaceutical Corporation is a
biopharmaceutical company with three unique proprietary products on the market, and a
significant R&D pipeline of drug products in development. Nymox is developing NX-1207,
a novel treatment for benign prostatic hyperplasia. NX-1207 has shown positive results in
three different U.S. Phase 1 and 2 clinical trials. Recently, a 43 site U.S. placebo
controlled trial of NX-1207 showed statistically significant efficacy results, without any
serious adverse events for the drug. Nymox has U.S. and global patent rights for the use
of statin drugs for the treatment and prevention of Alzheimers disease. The Company
is developing new treatments for bacterial infections in humans and for the treatment of
E. coli O157:H7 contamination in food products. Nymox has NXD-2858 and NXD-9062 which are
under development as drug treatments aimed at the causes of Alzheimers disease, and
has several other drug candidates in development. Nymox developed and is currently
offering its AlzheimAlert test, a nationally certified clinical reference laboratory
urinary test that is the worlds only accurate, non-invasive aid in the diagnosis of
Alzheimers disease. The AlzheimAlert test is certified with a CE Mark, making
the device eligible for sale in the European Union. Nymox has signed distribution deals
for AlzheimAlert with several companies in Europe. Nymox also developed and markets
NicAlert and TobacAlert; tests that use urine or saliva to detect use of and
exposure to tobacco products. NicAlert has received clearance from the U.S. Food and
Drug Administration (FDA) and is also certified with a CE Mark in Europe. TobacAlert
is the first test of its kind to accurately measure second hand smoke exposure in
individuals.
MESSAGE TO SHAREHOLDERS
Nymox is pleased to present its
financial statements for the quarter ended September 30, 2006.
On September 19, Nymox announced
positive efficacy and safety results from its recently completed Phase 2 trial of NX-1207
for benign prostatic hyperplasia (BPH). 43 clinical trial sites across the U.S. and 175
subjects participated in the double-blind, placebo controlled trial. Overall, patients
treated with NX-1207 showed a total pooled mean improvement of 9.35 points in the primary
outcome endpoint of AUA Symptom Score values, which reached statistical significance when
compared with the placebo control (p=.017). The mean improvements in AUA Symptom Score for
each of the 3 doses used in the trial ranged from 8.10 to 11.03 points with statistical
significance measures of p=.015 to 0.17. Published studies of currently approved drugs for
BPH show AUA Symptom Score improvement in the 3.5 to 5 point range. The AUA Symptom Score
is a standardized measurement of BPH symptoms and includes data on 1) sensations of
incomplete emptying of the bladder; 2) need to urinate frequently; 3) stopping and
starting during urination; 4) urgent need to urinate; 5) weakness of urinary stream; 6)
need to push or strain during urination; and 7) urination during sleep (nocturia). The
treated subjects also showed an overall significant reduction in mean prostate volume
(secondary outcome) of 11.7% (6.84 grams; p=.02). The results of the trial demonstrated
the excellent safety and side effect profile of NX-1207. Subjects treated with NX-1207 had
no serious side effects. In particular, patients given NX-1207 had no (0%) significant
sexual side effects. Serious adverse events occurred in 5.1% of all placebo patients, and
in 0% of the NX-1207 treated group. The double-blind, placebo-controlled, randomized,
parallel group, 3 dose range study was designed to test safety and efficacy after 3 months
in patients with BPH. Patients were enrolled who had AUA Symptom Score values of = 15
points and prostate volumes of = 40 grams. The study was conducted across 43 centers in
the U.S. 175 subjects were enrolled in the trial. Patients were assessed by medical and
symptom evaluation, prostate volume studies, uroflow measurements, laboratory and safety
parameters at baseline and repeatedly over the course of 3 months. Outcome variables were
based on analysis after 3 months.
1
On July 28, Nymox announced that the
Companys NicAlert product will be used in a large smoking cessation study in
collaboration with g-Nostics Ltd. in the U.K. The program will involve approximately 1,200
patients and 36 pharmacies assessing the clinical and cost effectiveness of g-Nostics
Ltd.s innovative pharmacogenetic smoking intervention, when used in a primary care
setting. NicAlert will be used both for the initial measurement of cotinine levels
in the subjects and to validate smoking status throughout the program.
In July, Nymox announced that results
from clinical studies of the Companys NicAlert Saliva test for tobacco product
use and exposure were presented at the 13th World Conference on Tobacco or Health in
Washington DC. The World Conference included the top experts on nicotine and tobacco from
around the world. The presentation of the NicAlert saliva study results were made by
Dr. Norman J. Montalto, one of the principal investigators in the studies. Dr. Montalto is
a clinical expert in the field of tobacco use and dependency, and is Professor in the
Department of Family Medicine at West Virginia University in Charleston, WV, and Director
of the Freedom from Tobacco Use Program in Charleston. The studies were independently
undertaken in family practice medical clinics under the supervision of principal
investigators, Dr. Montalto and Dr. Wayne O. Wells to assess the accuracy and utility of
the saliva test. Dr. Wells is Principal Investigator and Medical Director of Clinical
Research Centers of Tennessee in Lebanon, TN, with expertise in tobacco dependency.
On August 3, Nymox announced that the
Companys saliva-based NicAlert product successfully provided an on-the-spot
evaluation of smoking status in an independent study of pregnant women in Alaska. Results
from the study were presented at the 13th International Congress on Circumpolar Health. In
the study, NicAlert and a highly sophisticated laboratory test, liquid
chromatography tandem mass spectrometry (LC/MS/MS), were independently used to measure the
levels of cotinine, a metabolite of nicotine, in saliva samples.
On September 11, 2006 independent
clinical trial results from studies of the Companys AlzheimAlert test were
presented at the XXVIIIth International Congress of Clinical Neurophysiology in
Edinburgh, Scotland. The presentation concerned the use of the AlzheimAlert test in
the diagnosis of mild cognitive impairment in the elderly. The authors of the paper
include Ira Goodman of Orlando Regional Healthcare System, Stephen Flitman of
21st Century Neurology, Phoenix AZ, Kevin Xie of Centra Care Clinic, St. Cloud
MN, Alireza Minagar of Louisiana State University Health Sciences Center, Shreveport LA
and Ralph Richter of University of Oklahoma, Tulsa OK.
We wish to thank our over 4,000
shareholders for their valued support. Nymox has continued to meet its major milestones,
and we look forward to important upcoming progress.
/s/ Paul Averback, MD
Paul Averback
MD
President
November 13, 2006
2
MANAGEMENTS
DISCUSSION AND ANALYSIS
(in US dollars)
The following discussion should be read
in conjunction with the consolidated financial statements of the Company.
Overview
The business activities of the
Company since inception have been devoted principally to research and development.
Accordingly, the Company has had limited revenues from sales and has not been profitable
to date. We refer to the Corporate Profile for a discussion of the Companys research
and development projects and its product pipeline. We refer to the Risk Factors section of
our 20F filed on EDGAR for a discussion of the management and investment issues that
affect the Company and our industry.
Critical Accounting
Policies
In December 2001, the Securities and Exchange
Commission (SEC) released Cautionary Advice Regarding Disclosure About
Critical Accounting Policies. According to the SEC release, accounting policies are
among the most critical if they are, in managements view, most important
to the portrayal of the companys financial condition and most demanding on their
calls for judgment.
Our accounting policies are described
in the notes to our annual audited consolidated financial statements. We consider the
following policies to be the most critical in understanding the judgments that are
involved in preparing our financial statements and the matters that could impact our
results of operations, financial condition and cash flows.
Revenue Recognition
The Company has generally derived its
revenue from product sales, research contracts, license fees and interest. Revenue from
product sales is recognized when the product or service has been delivered or obligations
as defined in the agreement are performed. Revenue from research contracts is recognized
at the time research activities are performed under the agreement. Revenue from license
fees, royalties and milestone payments is recognized upon the fulfillment of all
obligations under the terms of the related agreement. These agreements may include upfront
payments to be received by the Company. Upfront payments are recognized as revenue on a
systematic basis over the period that the related services or obligations as defined in
the agreement are performed. Interest is recognized on an accrual basis. Deferred revenue
presented in the balance sheet represents amounts billed to and received from customers in
advance of revenue recognition.
The Company currently markets
AlzheimAlert as a service provided by our CLIA certified reference laboratory in New
Jersey. Physicians send urine samples taken from their patients to our laboratory where
the AlzheimAlert test is performed. The results are then reported back to the
physicians. We recognize the revenues when the test has been performed. The Company
sometimes enters into bulk sales of its diagnostic services to customers under which it
has a future obligation to perform related testing services at its laboratory. Although
the Company receives non-refundable upfront payments under these agreements, revenue is
recognized in the period that the Company fulfils its obligation or over the term of the
arrangement. For research contracts and licensing revenues, the Company usually enters
into an agreement specifying the terms and obligations of the parties. Revenues from these
sources are only recognized when there are no longer any obligations to be performed by
the Company under the terms of the agreement.
3
Valuation of Capital
Assets
The Company reviews the unamortized
balance of property and equipment, intellectual property rights and patents on an annual
basis and recognizes any impairment in carrying value when it is identified. Factors we
consider important, which could trigger an impairment review include:
|
Significant
changes in the manner of our use of the acquired assets or the strategy for our
overall business; and |
|
Significant
negative industry or economic trends. |
Valuation of Future
Income Tax Assets
Management judgement is required in
determining the valuation allowance recorded against net future tax assets. We have
recorded a valuation allowance of $12.1 million as of December 31, 2005, due to
uncertainties related to our ability to utilize some of our future tax assets, primarily
consisting of net operating losses carried forward and other unclaimed deductions, before
they expire. In assessing the realizability of future tax assets, management considers
whether it is more likely than not that some portion or all of the future tax assets will
not be realized. The ultimate realization of future tax assets is dependent upon the
generation of future taxable income and tax planning strategies. The generation of future
taxable income is dependent on the successful commercialization of its products and
technologies.
Results of Operations
|
Nine Months Ended September 30
|
2006
|
2005
|
2004
|
Total Revenues |
|
|
| $358,186 |
|
| $319,755 |
|
| $243,579 |
|
|
Net Loss | | |
| $(3,658,700 |
) |
| $(2,763,440 |
) |
| $(2,801,353 |
) |
|
Loss per share (basic & diluted) | | |
| $(0.13 |
) |
| $(0.11 |
) |
| $(0.11 |
) |
|
Total Assets | | |
| $3,731,216 |
|
| $3,754,040 |
|
| $4,002,818 |
|
|
|
Quarterly Results
|
Q3 - 2006
|
Q2 - 2006
|
Q1 - 2006
|
Q4 - 2005
|
Total Revenues |
|
|
| $141,817 |
|
| $120,360 |
|
| $96,009 |
|
| $106,527 |
|
|
Net Loss | | |
| $(1,238,833 |
) |
| $(1,360,621 |
) |
| $(1,059,246 |
) |
| $(821,088 |
) |
|
Loss per share (basic & diluted) | | |
| $(0.04 |
) |
| $(0.05 |
) |
| $(0.04 |
) |
| $(0.03 |
) |
|
|
Q3 - 2005
|
Q2 - 2005
|
Q1 - 2005
|
Q4 - 2004
|
Total Revenues | | |
| $100,757 |
|
| $117,067 |
|
| $101,931 |
|
| $78,369 |
|
|
Net Loss | | |
| $(958,464 |
) |
| $(847,299 |
) |
| $(957,677 |
) |
| $(944,272 |
) |
|
Loss per share (basic & diluted) | | |
| $(0.04 |
) |
| $(0.03 |
) |
| $(0.04 |
) |
| $(0.04 |
) |
|
4
Results of Operations
Q3 2006 compared to Q3 2005
Net losses were $1,238,833, or $0.04
per share, for the three months and $3,658,700, or $0.13 per share for the nine months
ended September 30, 2006, compared to $958,464, or $0.04 per share, for the three months
and $2,763,440, or $0.11 per share, for the nine months ended September 30, 2005. The
increase in net losses is attributable to stock-based compensation costs and to an
increase in research and development expenditures (see below). The weighted diluted
average number of common shares outstanding for the quarter ended September 30, 2006 was
27,789,196 compared to 25,916,670 for the same period in 2005.
Revenues
Revenues from sales amounted to
$141,013 for the three months and $353,962 for the nine months ended September 30, 2006,
compared with $100,110 for the three months and $318,424 for the nine months ended
September 30, 2005. Higher sales of NicAlert and TobacAlert (increase of 13.4%)
accounted for the increase in the third quarter of 2006 compared to the same period in
2005. The Company expects that revenues will increase if and when product candidates pass
clinical trials and are launched on the market.
Research and Development
Research and development expenditures
were $597,496 for the three months and $1,893,216 for the nine months ended September 30,
2006, compared with $521,816 for the three months and $1,481,115 for the nine months ended
September 30, 2005. Increased expenses relating to moving product candidates through
clinical trials explains the increase. For the first nine months of 2006, research tax
credits amounted to $5,114 compared to $3,300 in 2005. The Company expects that research
and development expenditures will decrease as product candidates finish development and
clinical trials. However, because of the early stage of development of the Companys
R&D projects, it is impossible to outline the nature, timing or estimated costs of the
efforts necessary to complete these projects, nor the anticipated completion dates for
these projects. The facts and circumstances indicating the uncertainties that preclude us
from making a reasonable estimate of the costs and timing necessary to complete projects
include the risks inherent in any field trials, the uncertainty as to the nature and
extent of regulatory requirements both for safety and efficacy, and the ability to
manufacture the products in accordance with current good manufacturing requirements (cGMP)
and in sufficient quantities both for large scale trials and for commercial use. A drug
candidate that shows efficacy can take a long period (7 years or more) to achieve
regulatory approval. There is also uncertainty whether we will be able to successfully
adapt our patented technologies or whether any new products we develop will pass
proof-of-principle testing both in the laboratory and in clinical trials, and whether we
will be able to manufacture such products at a commercially competitive price. In
addition, given the very high costs of development of therapeutic products, we anticipate
having to partner with larger pharmaceutical companies to bring therapeutic products to
market. The terms of such partnership arrangements along with our related financial
obligations cannot be determined at this time and the timing of completion of the approval
of such products will likely not be within our sole control.
Marketing Expenses
Marketing expenditures amounted to
$56,005 for the three months and $169,540 for the nine months ended September 30, 2006,
compared with $76,083 for the three months and $192,607 for the nine months ended
September 30, 2005. Lower expenditures on publicity account for the reduction. The Company
expects that marketing expenditures will increase if and when new products are launched on
the market.
5
Administrative Expenses
General and administrative expenses
amounted to $244,234 for the three months and $761,673 for the nine months ended September
30, 2006, compared with $297,649 for the three months and $908,949 for the nine months
ended September 30, 2005, due to lower expenditures in many areas such as salaries
(decrease of 24.3%), insurance (decrease of 36.3%) and shareholder relations (decrease of
15.9%). The Company expects that general and administrative expenditures will increase as
new product development leads to expanded operations.
Stock-based Compensation
The CICA amended Handbook Section
3870, Stock-based Compensation and Other Stock-based Payments, to require entities
to account for employee stock options using the fair value based method, beginning January
1, 2004. In the second quarter of 2006, 200,000 fully-vested options were granted, in
replacement of an equal number of options which had expired, to option holders still
associated with the Company. Under the fair value based method, the stock-based
compensation cost of this grant, amounting to $338,400, was recorded in the second
quarter. In the third quarter of 2006, 640,500 options were granted to directors and
employees of the Company, of which 194,250 were vested. Under the fair value based method,
the stock-based compensation cost recorded in the third quarter for these options was
$278,008 (see Note 3 of the Consolidated Financial Statements).
Foreign Exchange
The Company incurs expenses in the
local currency of the countries in which it operates, which include the United States and
Canada. Approximately 75% of 2006 expenses (70% in 2005) were in U.S. dollars. Foreign
exchange fluctuations had no meaningful impact on the Companys results in 2006 or
2005.
Inflation
The Company does not believe that
inflation has had a significant impact on its results of operations.
Long-Term Commitments
Nymox has no financial obligations of
significance other than long-term lease commitments for its premises in the United States
and Canada of $20,177 per month.
|
Contractual Obligations
|
Total
|
Current
|
2-4 years
|
5+ years
|
Rent |
|
|
| $939,297 |
|
| $242,118 |
|
| $697,179 |
|
| $0 |
|
|
Operating Leases | | |
| $63,214 |
|
| $22,515 |
|
| $40,699 |
|
| $0 |
|
|
Total Contractual Obligations | | |
| $1,002,511 |
|
| $264,633 |
|
| $737,878 |
|
| $0 |
|
|
Results of Operations
Q3 2005 compared to Q3 2004
Net losses were $958,464, or $0.04
per share, for the three months and $2,763,440, or $0.11 per share for the nine months
ended September 30, 2005, compared to $695,031, or $0.03 per share, for the three months
and $2,801,353, or $0.11 per share, for the nine months ended September 30, 2004. The
weighted diluted average number of common shares outstanding for the quarter ended
September 30, 2005 was 25,916,670 compared to 25,096,385 for the same period in 2004.
6
Revenues
Revenues from sales amounted to
$100,110 for the three months and $318,424 for the nine months ended September 30, 2005,
compared with $102,325 for the three months and $243,579 for the nine months ended
September 30, 2004 due to an increase in the sales of NicAlert/TobacAlert (29%).
Research and Development
Research and development expenditures
remained relatively constant at $1,481,115 for the nine months ended September 30, 2005,
compared with $1,456,002 for the nine months ended September 30, 2004. For the first nine
months of 2005, research tax credits amounted to $3,300 compared to $7,975 in 2004 because
of a decrease in expenditures eligible for tax credits.
Marketing Expenses
Marketing expenditures were $192,607
for the nine months ended September 30, 2005, compared with $164,676 for the nine months
ended September 30, 2004. Increased marketing of our products accounts for the rise in
expenditures.
Administrative Expenses
General and administrative expenses
remained relatively constant at $908,949 for the nine months ended September 30, 2005,
compared with $905,975 for the nine months ended September 30, 2004.
Financial Position
Liquidity and Capital
Resources
As of September 30, 2006, cash
totaled $243,299 and receivables including tax credits totaled $42,578. In October 2005,
the Corporation signed a new common stock private purchase agreement, whereby an investor
is committed to purchase up to $13 million of the Corporations common shares over a
twenty-four month period commencing October 21, 2005. As at September 30, 2006, 19
drawings were made under this purchase agreement, for total proceeds of $3,550,000. On
November 18, 2005, 49,020 common shares were issued at a price of $2.04 per share. On
December 8, 2005, 46,729 common shares were issued at a price of $2.14 per share. On
December 14, 2005, 47,847 common shares were issued at a price of $2.09 per share. On
January 10, 2006, 50,000 common shares were issued at a price of $2.00 per share. On
January 18, 2006, 51,020 common shares were issued at a price of $1.96 per share. On
January 24, 2006, 52,083 common shares were issued at a price of $1.92 per share. On
February 3, 2006, 51,020 common shares were issued at a price of $1.96 per share. On
February 10, 2006, 51,546 common shares were issued at a price of $1.94 per share. On
February 16, 2006, 103,093 common shares were issued at a price of $1.94 per share. On
March 6, 2006, 52,632 common shares were issued at a price of $1.90 per share. On March
16, 2006, 51,813 common shares were issued at a price of $1.93 per share. On March 27,
2006, 246,914 common shares were issued at a price of $4.05 per share. On April 12, 2006,
188,917 common shares were issued at a price of $3.97 per share. On May 2, 2006, 82,645
common shares were issued at a price of $3.63 per share. On July 25, 2006, 37,488 common
shares were issued at a price of $2.67 per share. On August 7, 2006, 37,879 common shares
were issued at a price of $2.64 per share. On August 24, 2006, 39,063 common shares were
issued at a price of $2.56 per share. On September 12, 2006, 40,000 common shares were
issued at a price of $2.50 per share. On September 26, 2006, 73,260 common shares were
issued at a price of $2.73 per share. The Company can draw down a further $9,450,000 over
the remaining 12 months under the agreement. The Company intends to access financing under
this agreement when appropriate to fund its research and development. The Company believes
that funds from operations as well as from existing financing agreements will be
sufficient to meet the Companys cash requirements for the next twelve months.
7
This message contains certain
forward-looking statements as defined in the United States Private Securities
Litigation Reform Act of 1995 that involve a number of risks and uncertainties. There can
be no assurance that such statements will prove to be accurate and the actual results and
future events could differ materially from managements current expectations. Such
factors are detailed from time to time in Nymoxs filings with the Securities and
Exchange Commission and other regulatory authorities.
8
|
Consolidated
Financial Statements of (Unaudited) |
|
NYMOX
PHARMACEUTICAL CORPORATION |
|
Periods
ended September 30, 2006, 2005 and 2004 |
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Financial Statements
(Unaudited)
Periods ended September 30, 2006,
2005 and 2004
Financial Statements |
|
Consolidated Balance Sheets |
1 |
Consolidated Statements of Operations |
2 |
Consolidated Statements of Deficit |
3 |
Consolidated Statements of Cash Flows |
4 |
Notes to Consolidated Financial Statements |
5 |
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Balance Sheets
(Unaudited)
September 30, 2006, with comparative
figures as at December 31, 2005
(in US dollars)
|
|
September 30,
2006
|
|
December 31,
2005
|
|
|
|
(Audited) | |
Assets |
|
|
| |
|
| |
|
Current assets: | | |
Cash | | |
$ | 243,299 |
|
$ | 151,476 |
|
Accounts receivable | | |
| 34,389 |
|
| 62,721 |
|
Research tax credits receivable | | |
| 8,189 |
|
| 3,075 |
|
Inventories | | |
| 31,901 |
|
| 74,182 |
|
|
| | |
| 317,778 |
|
| 291,454 |
|
Long-term security deposit | | |
| 35,993 |
|
| 35,993 |
|
Long-term receivables | | |
| 70,000 |
|
| 70,000 |
|
Property and equipment | | |
| 8,693 |
|
| 11,463 |
|
Patents and intellectual property | | |
| 3,298,752 |
|
| 3,310,129 |
|
|
| | |
$ | 3,731,216 |
|
$ | 3,719,039 |
|
|
Liabilities and Shareholders Equity | | |
Current liabilities: | | |
Accounts payable | | |
$ | 1,444,502 |
|
$ | 1,704,369 |
|
Accrued liabilities | | |
| 103,493 |
|
| 205,424 |
|
Notes payable | | |
| 596,491 |
|
| 500,000 |
|
Deferred lease inducement | | |
| 9,623 |
|
| 9,576 |
|
Deferred revenue | | |
| 15,907 |
|
| 42,202 |
|
|
| | |
| 2,170,016 |
|
| 2,461,571 |
|
Long-term deferred revenue | | |
| 5,000 |
|
| 10,000 |
|
Deferred lease inducement | | |
| 28,067 |
|
| 35,331 |
|
Non-controlling interest | | |
| 800,000 |
|
| 800,000 |
|
Shareholders equity: | | |
Share capital (note 2) | | |
| 43,038,350 |
|
| 39,488,350 |
|
Additional paid-in capital (note 2 (b)) | | |
| 1,255,098 |
|
| 626,525 |
|
Deficit | | |
| (43,565,315 |
) |
| (39,702,738 |
) |
|
| | |
| 728,133 |
|
| 412,137 |
|
Subsequent events (note 6) | | |
|
| | |
$ | 3,731,216 |
|
$ | 3,719,039 |
|
|
See accompanying notes to unaudited
consolidated financial statements.
-1-
NYMOX PHARMACEUTICAL
CORPORATION
Consolidated Statements of Operations
(Unaudited)
Three-month periods ended
September 30, 2006, 2005 and 2004
(in US dollars)
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|
2006
|
|
2005
|
|
2004
|
|
2006
|
|
2005
|
|
2004
|
|
Revenue: |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
Sales | | |
$ | 141,013 |
|
$ | 100,110 |
|
$ | 102,325 |
|
$ | 353,962 |
|
$ | 318,424 |
|
$ | 243,579 |
|
Interest | | |
| 804 |
|
| 647 |
|
| -- |
|
| 4,224 |
|
| 1,331 |
|
| -- |
|
|
| | |
| 141,817 |
|
| 100,757 |
|
| 102,325 |
|
| 358,186 |
|
| 319,755 |
|
| 243,579 |
|
Expenses: | | |
Research and | | |
development | | |
| 597,496 |
|
| 521,816 |
|
| 305,730 |
|
| 1,893,216 |
|
| 1,481,115 |
|
| 1,456,002 |
|
Less investment tax | | |
credits | | |
| -- |
|
| (1,125 |
) |
| (2,987 |
) |
| (5,114 |
) |
| (3,300 |
) |
| (7,975 |
) |
|
| | |
| 597,496 |
|
| 520,691 |
|
| 302,743 |
|
| 1,888,102 |
|
| 1,477,815 |
|
| 1,448,027 |
|
General and | | |
administrative | | |
| 244,234 |
|
| 297,649 |
|
| 239,243 |
|
| 761,673 |
|
| 908,949 |
|
| 905,975 |
|
Depreciation and | | |
amortization | | |
| 113,416 |
|
| 108,577 |
|
| 113,762 |
|
| 336,149 |
|
| 317,107 |
|
| 320,282 |
|
Marketing | | |
| 56,005 |
|
| 76,083 |
|
| 52,431 |
|
| 169,540 |
|
| 192,607 |
|
| 164,676 |
|
Stock-based | | |
compensation | | |
(note 3) | | |
| 282,063 |
|
| 4,055 |
|
| 4,055 |
|
| 628,573 |
|
| 12,165 |
|
| 12,165 |
|
Cost of sales | | |
| 74,198 |
|
| 42,109 |
|
| 75,466 |
|
| 188,905 |
|
| 141,696 |
|
| 163,876 |
|
Interest and bank | | |
charges | | |
| 13,238 |
|
| 10,057 |
|
| 9,656 |
|
| 43,944 |
|
| 32,856 |
|
| 29,931 |
|
|
| | |
| 1,380,650 |
|
| 1,059,221 |
|
| 797,356 |
|
| 4,016,886 |
|
| 3,083,195 |
|
| 3,044,932 |
|
|
Net loss | | |
$ | (1,238,833 |
) |
$ | (958,464 |
) |
$ | (695,031 |
) |
$ | (3,658,700 |
) |
$ | (2,763,440 |
) |
$ | (2,801,353 |
) |
|
Loss per share (basic | | |
and diluted) | | |
$ | (0.04 |
) |
$ | (0.04 |
) |
$ | (0.03 |
) |
$ | (0.13 |
) |
$ | (0.11 |
) |
$ | (0.11 |
) |
|
Weighted average | | |
number of common | | |
shares outstanding | | |
Basic | | |
| 27,789,196 |
|
| 25,909,567 |
|
| 25,048,448 |
|
| 27,482,960 |
|
| 25,905,057 |
|
| 24,789,096 |
|
Plus impact of stock | | |
options and warrants | | |
| -- |
|
| 7,103 |
|
| 47,937 |
|
| 20,204 |
|
| 30,975 |
|
| 224,118 |
|
|
Diluted | | |
| 27,789,196 |
|
| 25,916,670 |
|
| 25,096,385 |
|
| 27,503,164 |
|
| 25,936,032 |
|
| 25,013,214 |
|
|
See accompanying notes to unaudited
consolidated financial statements.
-2-
NYMOX PHARMACEUTICAL
CORPORATION
Consolidated Statements of Deficit
(Unaudited)
Three-month periods ended
September 30, 2006, 2005 and 2004
(in US dollars)
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|
2006
|
|
2005
|
|
2004
|
|
2006
|
|
2005
|
|
2004
|
|
Deficit, beginning of |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
period: | | |
As previously | | |
reported | | |
$ | (42,292,277 |
) |
$ | (37,839,012 |
) |
$ | (34,204,550 |
) |
$ | (39,702,738 |
) |
$ | (35,951,268 |
) |
$ | (31,326,826 |
) |
Adjustment to reflect | | |
change in accounting | | |
for amortization of | | |
patents (note 1 (b) (ii)) | | |
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| (119,714 |
) |
|
Sub-total | | |
| (42,292,277 |
) |
| (37,839,012 |
) |
| (34,204,550 |
) |
| (39,702,738 |
) |
| (35,951,268 |
) |
| (31,446,540 |
) |
Adjustment to reflect | | |
change in accounting | | |
policy for employee | | |
stock options | | |
(note 1 (b) (i)) | | |
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| (548,164 |
) |
|
Deficit restated | | |
| (42,292,277 |
) |
| (37,839,012 |
) |
| (34,204,550 |
) |
| (39,702,738 |
) |
| (35,951,268 |
) |
| (31,994,704 |
) |
Net loss | | |
| (1,238,833 |
) |
| (958,464 |
) |
| (695,031 |
) |
| (3,658,700 |
) |
| (2,763,440 |
) |
| (2,801,353 |
) |
Share issue costs | | |
| (34,205 |
) |
| (37,088 |
) |
| (52,305 |
) |
| (203,877 |
) |
| (119,856 |
) |
| (155,829 |
) |
|
Deficit, end of period | | |
$ | (43,565,315 |
) |
$ | (38,834,564 |
) |
$ | (34,951,886 |
) |
$ | (43,565,315 |
) |
$ | (38,834,564 |
) |
$ | (34,951,886 |
) |
|
See accompanying notes to unaudited
consolidated financial statements.
-3-
NYMOX PHARMACEUTICAL
CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
Three-month periods ended
September 30, 2006, 2005 and 2004
(in US dollars)
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|
2006
|
|
2005
|
|
2004
|
|
2006
|
|
2005
|
|
2004
|
|
Cash flows from operating |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
activities: | | |
Net loss | | |
$ | (1,238,833 |
) |
$ | (958,464 |
) |
$ | (695,031 |
) |
$ | (3,658,700 |
) |
$ | (2,763,440 |
) |
$ | (2,801,353 |
) |
Adjustments for: | | |
Depreciation and | | |
amortization | | |
| 113,416 |
|
| 108,577 |
|
| 113,762 |
|
| 336,149 |
|
| 317,107 |
|
| 320,282 |
|
Stock-based | | |
compensation | | |
| 282,063 |
|
| 4,055 |
|
| 4,055 |
|
| 628,573 |
|
| 12,165 |
|
| 12,165 |
|
Net change in operating | | |
assets and liabilities | | |
| 337,008 |
|
| 111,604 |
|
| (254,108 |
) |
| (383,925 |
) |
| 513,222 |
|
| 121,385 |
|
|
| | |
| (506,346 |
) |
| (734,228 |
) |
| (831,322 |
) |
| (3,077,903 |
) |
| (1,920,946 |
) |
| (2,347,521 |
) |
Cash flows from financing | | |
activities: | | |
Proceeds from issuance | | |
of share capital | | |
| 600,000 |
|
| 895,000 |
|
| 1,020,000 |
|
| 3,550,000 |
|
| 2,385,000 |
|
| 2,824,033 |
|
Share issue costs | | |
| (34,205 |
) |
| (37,088 |
) |
| (52,305 |
) |
| (203,877 |
) |
| (119,856 |
) |
| (155,829 |
) |
Repayment of notes | | |
payable | | |
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| (100,000 |
) |
| -- |
|
Proceeds from issuance | | |
of notes payable | | |
| 96,491 |
|
| -- |
|
| -- |
|
| 96,491 |
|
| -- |
|
| -- |
|
|
| | |
| 662,286 |
|
| 857,912 |
|
| 967,695 |
|
| 3,442,614 |
|
| 2,165,144 |
|
| 2,668,204 |
|
Cash flows from investing | | |
activities: | | |
Additions to property | | |
and equipment and | | |
intangibles | | |
| (35,043 |
) |
| (44,559 |
) |
| (149,432 |
) |
| (272,888 |
) |
| (540,556 |
) |
| (575,438 |
) |
|
Net increase (decrease) | | |
in cash | | |
| 120,897 |
|
| 79,125 |
|
| (13,059 |
) |
| 91,823 |
|
| (296,358 |
) |
| (254,755 |
) |
Cash, beginning of period | | |
| 122,402 |
|
| 154,159 |
|
| 363,907 |
|
| 151,476 |
|
| 529,642 |
|
| 605,603 |
|
|
Cash, end of period | | |
$ | 243,299 |
|
$ | 233,284 |
|
$ | 350,848 |
|
$ | 243,299 |
|
$ | 233,284 |
|
$ | 350,848 |
|
|
Supplemental disclosure to | | |
statements of cash flows: | | |
(a) Interest paid | | |
$ | 11,445 |
|
$ | 7,959 |
|
$ | 9,656 |
|
$ | 38,173 |
|
$ | 23,456 |
|
$ | 29,931 |
|
(b) Non-cash | | |
transactions: | | |
Acquisition of | | |
property | | |
and equipment, | | |
patents and | | |
intellectual | | |
property included | | |
in accounts payable | | |
and accrued | | |
liabilities | | |
| 13,742 |
|
| 53,196 |
|
| -- |
|
| 374,616 |
|
| 217,709 |
|
| -- |
|
Cashless exercise of | | |
warrants | | |
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| -- |
|
| 375,717 |
|
|
See accompanying notes to unaudited
consolidated financial statements.
-4-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
|
Nymox
Pharmaceutical Corporation (the Corporation), incorporated under the Canada
Business Corporations Act, including its subsidiaries, Nymox Corporation, a Delaware
Corporation, and Serex Inc. of New Jersey, is a biopharmaceutical corporation which
specializes in the research and development of drugs and medical products for the aging
population. The Corporation is currently marketing AlzheimAlert, a urinary test that
aids physicians in the diagnosis of Alzheimers disease. The Corporation also markets
NicAlert and TobacAlert, tests that use urine or saliva to detect the use of
tobacco products. The Corporation is also developing therapeutics for the treatment of
Alzheimers disease, new treatments for benign prostate hyperplasia, and new
anti-bacterial agents for the treatment of urinary tract and other bacterial infections in
humans, including a treatment for E-coli 0157:H7 bacterial contamination in meat and other
food and drink products. |
|
Since
1989, the Corporations activities and resources have been primarily focused on
developing certain pharmaceutical technologies. The Corporation is subject to a number of
risks, including the successful development and marketing of its technologies. In order to
achieve its business plan and the realization of its assets and liabilities in the normal
course of operations, the Corporation anticipates the need to raise additional capital
and/or achieve sales and other revenue generating activities. Management believes that
funds from operations as well as existing financing facilities will be sufficient to meet
the Corporations requirements for the next year. |
|
The
Corporation is listed on the NASDAQ Stock Market. |
1. |
Basis
of presentation: |
|
(a) |
Interim
financial statements: |
|
The
consolidated financial statements of the Corporation have been prepared under Canadian
generally accepted accounting principles. The unaudited consolidated balance sheet as at
September 30, 2006 and the unaudited consolidated statements of operations, deficit and
cash flows for the three-month and nine-month periods ended September 30, 2006, 2005 and
2004 reflect all adjustments which are, in the opinion of management, necessary to a fair
statement of the results of the interim periods presented. The results for any quarter are
not necessarily indicative of the results for the full year. The interim consolidated
financial statements follow the same accounting policies and methods of application as
described in note 2 of the annual consolidated financial statements for the year
ended December 31, 2005. The interim consolidated financial statements do not include
all disclosures required for annual financial statements and should be read in conjunction
with the most recent annual consolidated financial statements of the Corporation as at and
for the year ended December 31, 2005. |
-5-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
1. |
Basis
of presentation (continued): |
|
(b) |
Changes
in accounting policies: |
|
(i) |
Stock-based
compensation: |
|
Prior
to January 1, 2004, the Corporation applied the fair value based method of accounting
prescribed by the Canadian Institute of Chartered Accountants (CICA) only to
stock-based payments to non-employees, employee awards that were direct awards of stock,
call for settlement in cash or other assets, and to employee stock appreciation rights;
the Corporation applied the settlement method of accounting to employee stock options.
Under the settlement method, any consideration paid by employees on the exercise of stock
options is credited to share capital and no compensation cost is recognized. |
|
The
CICA has amended Handbook Section 3870, Stock-based Compensation and Other Stock-based
Payments, to require entities to account for employee stock options using the
fair value based method, beginning January 1, 2004. Under the fair value based method,
compensation cost is measured at fair value at the date of grant and is expensed over the
awards vesting period. In accordance with one of the transitional options permitted
under amended Section 3870, the Corporation has retroactively applied the fair value based
method to all employee stock options granted on or after January 1, 2002 without
restatement of prior periods. The cumulative effect of the change in accounting policy of
$548,164 has been recorded as an increase in the opening deficit and additional paid-in
capital at January 1, 2004. |
|
(ii) |
Amortization
of patents: |
|
The
Corporation has amended its method of amortizing patent costs to be consistent with the
treatment followed by the Corporation under United States generally accepted accounting
principles (GAAP). Certain patents were initially amortized by the Corporation
commencing in the year of commercialization of the developed products for Canadian GAAP
purposes. The Corporation now amortizes all patents over the legal life of the patents
from the date the patent is secured. This change has been applied retroactively and has
decreased amounts previously reported for patents and intellectual property on the
consolidated balance sheet at December 31, 2003 by $119,714 and increased the accumulated
deficit at December 31, 2003 by $119,714. The change did not have a material impact on the
statements of operations for the periods presented. |
-6-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
|
(a) |
Share
capital transactions during the period were as follows: |
|
|
Number
|
|
Dollars
|
|
Balance, December 31, 2005 |
|
|
| 26,728,781 |
|
$ | 39,488,350 |
|
Issued for cash pursuant to common | | |
stock private purchase agreement (i) | | |
| 1,209,373 |
|
| 3,550,000 |
|
|
Balance, September 30, 2006 | | |
| 27,938,154 |
|
$ | 43,038,350 |
|
|
|
(i) |
Common
Stock Private Purchase Agreement: |
|
In
October 2005, the Corporation entered into a Common Stock Private Purchase Agreement with
an investment company (the Purchaser) that establishes the terms and
conditions for the purchase of common shares by the Purchaser. In general, the Corporation
can, at its discretion, require the Purchaser to purchase up to $13 million of common
shares over a twenty-four-month period based on notices given by the Corporation. |
|
The
number of shares to be issued in connection with each notice shall be equal to the amount
specified in the notice divided by 97% of the average price of the Corporations
common shares for the five days preceding the giving of the notice. The Corporation may
terminate the agreement before the 24-month term if it has issued at least $8 million
of common shares under the agreement. |
|
In
the three-month period ended September 30, 2006, the Corporation issued
227,690 common shares to the Purchaser for aggregate proceeds of $600,000 under the
agreement. In the nine-month period ended September 30, 2006, the Corporation issued
1,209,373 shares for aggregate proceeds of $3,550,000. At September 30, 2006, the
Corporation can require the Purchaser to purchase up to $9,450,000 of common shares over
the remaining 12 months of the agreement. |
|
(b) |
Additional
paid-in capital: |
|
Changes
in additional paid-in capital were as follows: |
|
Balance, December 31, 2005 |
|
|
$ | 626,525 |
|
Stock-based compensation | | |
| 628,573 |
|
|
Balance, September 30, 2006 | | |
$ | 1,255,098 |
|
|
-7-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
3. |
Stock-based
compensation: |
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|
2006
|
|
2005
|
|
2004
|
|
2006
|
|
2005
|
|
2004
|
|
Stock-based compensation |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
pertaining to general | | |
and administrative | | |
$ | 86,400 |
|
$ | -- |
|
$ | -- |
|
$ | 340,200 |
|
$ | -- |
|
$ | -- |
|
Stock-based compensation | | |
pertaining to marketing | | |
| 7,495 |
|
| 4,055 |
|
| 4,055 |
|
| 100,205 |
|
| 12,165 |
|
| 12,165 |
|
Stock-based compensation | | |
pertaining to research and | | |
development | | |
| 188,168 |
|
| -- |
|
| -- |
|
| 188,168 |
|
| -- |
|
| -- |
|
|
| | |
$ | 282,063 |
|
$ | 4,055 |
|
$ | 4,055 |
|
$ | 628,573 |
|
$ | 12,165 |
|
$ | 12,165 |
|
|
4. |
Canadian/US
reporting differences: |
|
(a) |
Consolidated
statements of operations: |
|
The
reconciliation of earnings reported in accordance with Canadian GAAP with U.S. GAAP is as
follows: |
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|
2006
|
|
2005
|
|
2004
|
|
2006
|
|
2005
|
|
2004
|
|
Net loss, Canadian |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
GAAP | | |
$ | (1,238,833 |
) |
$ | (958,464 |
) |
$ | (695,031 |
) |
$ | (3,658,700 |
) |
$ | (2,763,440 |
) |
$ | (2,801,353 |
) |
Stock-based | | |
compensation - | | |
options granted to | | |
non-employees (i) | | |
| -- |
|
| (10,285 |
) |
| (10,285 |
) |
| -- |
|
| (30,855 |
) |
| (30,855 |
) |
Stock-based | | |
compensation - | | |
options granted to | | |
employees (i) | | |
| -- |
|
| 4,055 |
|
| 4,055 |
|
| -- |
|
| 12,165 |
|
| 12,165 |
|
|
Net loss, | | |
U.S. GAAP | | |
$ | (1,238,833 |
) |
$ | (964,694 |
) |
$ | (701,261 |
) |
$ | (3,658,700 |
) |
$ | (2,782,130 |
) |
$ | (2,820,043 |
) |
|
Loss per share, | | |
U.S. GAAP | | |
$ | (0.04 |
) |
$ | (0.04 |
) |
$ | (0.03 |
) |
$ | (0.13 |
) |
$ | (0.11 |
) |
$ | (0.11 |
) |
|
-8-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
4. |
Canadian/US
reporting differences (continued): |
|
(b) |
Consolidated
shareholders equity: |
|
The
reconciliation of shareholders equity reported in accordance with Canadian GAAP with
U.S. GAAP is as follows: |
|
|
September 30,
2006
|
|
December 31,
2005
|
|
Shareholders equity, Canadian GAAP |
|
|
$ | 728,133 |
|
$ | 412,137 |
|
Adjustments: | | |
Stock-based compensation - options | | |
granted to non-employees (i): | | |
Cumulative compensation | | |
expense | | |
| (1,425,143 |
) |
| (1,425,143 |
) |
Additional paid-in capital | | |
| 1,477,706 |
|
| 1,477,706 |
|
Change in reporting currency (ii) | | |
| (62,672 |
) |
| (62,672 |
) |
|
| | |
| (10,109 |
) |
| (10,109 |
) |
|
Shareholders equity, U.S. GAAP | | |
$ | 718,024 |
|
$ | 402,028 |
|
|
|
(i) |
For
US GAAP purposes, the Corporation adopted Statement of Financial Accounting
Standards (SFAS) No-123R, Share-based Payments, on January 1,
2006, which requires the expensing of all options issued, modified or
settled based on the grant date fair value over the period during
which the employee is required to provide service. The Corporation
adopted SFAS 123R using the modified prospective approach, which
requires application of the standard to all awards granted, modified
or cancelled after January 1, 2006 and to all awards for which
the requisite service has not been rendered as at such date. Previously,
the Corporation elected to follow the intrinsic value method of
accounting under ABP 25, Accounting for Stock Issued to
Employees, in accounting for stock options granted to employees
and directors. Under the intrinsic value method, compensation cost is
recognized for the difference between the quoted market price of the
stock at the grant date and the amount the individual must pay to
acquire the stock. In addition, in accordance with FAS 123, Accounting
for Stock-Based Compensation, compensation related to the stock
options granted to non-employees prior to January 1, 2002 has been
recorded in the accounts based on the fair value of the stock options
at the grant date. For Canadian GAAP purposes, the Corporation uses
the fair value method of accounting for stock options granted to
employees after January 1, 2004. |
-9-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
4. |
Canadian/US
reporting differences (continued): |
|
(b) |
Consolidated
shareholders equity (continued): |
|
The
Corporation has established a stock option plan (the Plan) for its key
employees, its officers and directors, and certain consultants. The Plan is administered
by the Board of Directors of the Corporation. The Board may from time to time designate
individuals to whom options to purchase common shares of the Corporation may be granted,
the number of shares to be optioned to each, and the option price per share. The option
price per share cannot involve a discount to the market price at the time the option is
granted. The total number of shares to be optioned to any one individual cannot exceed 5%
of the total issued and outstanding shares, and the maximum number of shares which may be
optioned under the Plan cannot exceed 2,500,000 common shares without shareholder
approval. Options under the Plan expire ten years after grant and vest either immediately
or over periods up to five years. |
|
The
following table provides the activity of stock option awards during the quarter and for
options outstanding and exercisable at the end of the quarter, the weighted average
exercise price, the weighted average years to expiration and the aggregate intrinsic
value. The aggregate intrinsic value represented the pre-tax intrinsic value based on the
Companys closing stock price at September 30, 2006 of $3.75, which would have been
received by option holders had they exercised their options at that date. |
-10-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
4. |
Canadian/US
reporting differences (continued): |
|
(b) |
Consolidated
shareholders equity (continued): |
|
Stock
option plan (continued): |
|
|
Options outstanding
|
Non-vested options
|
|
Number
|
|
Weighted
average
exercise
price
|
|
Weighted
average
years to
expiration
|
|
Aggregate
intrinsic
value
|
|
Number
|
|
Weighted
average
grant date
fair value
|
|
Outstanding, |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
December 31, 2005 | | |
| 1,811,500 |
|
$ | 3.86 |
|
| |
|
| |
|
| 20,000 |
|
$ | 1.62 |
|
Expired | | |
| (450,000 |
) |
| 4.35 |
|
| |
|
| |
|
| -- |
|
| -- |
|
Granted | | |
| 840,500 |
|
| 2.94 |
|
| |
|
| |
|
| 600,500 |
|
| 1.38 |
|
Vested | | |
| -- |
|
| -- |
|
| |
|
| |
|
| (164,250 |
) |
| 1.38 |
|
|
Outstanding, | | |
September 30, 2006 | | |
| 2,202,000 |
|
$ | 3.41 |
|
| 6.2 |
|
$ | 1,258,825 |
|
| 456,250 |
|
$ | 1.37 |
|
|
Options exercisable | | |
| 1,745,750 |
|
$ | 3.41 |
|
| 7.9 |
|
$ | 930,887 |
|
| N/A |
|
| N/A |
|
|
|
At
September 30, 2006, the unrecognized compensation cost related to non-vested awards was
$634,315 and the remaining weighted average recognition period is 9.2 months. |
|
The
fair value of the options granted during the period was determined using the Black-Scholes
pricing model using the following weighted average assumptions: |
|
|
2006
|
|
2005
|
|
Risk-free interest rate |
|
4.14 |
% |
-- |
|
Expected volatility | |
66.04 |
% |
-- |
|
Expected life in years | |
5 |
|
-- |
|
Expected dividend yield | |
nil |
|
-- |
|
|
|
Dividend
yield was excluded from the calculation since it is the present policy of the Corporation
to retain all earnings to finance operations. |
-11-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
4. |
Canadian/US
reporting differences (continued): |
|
(b) |
Consolidated
shareholders equity (continued): |
|
Stock
option plan (continued): |
|
The
weighted average per share grant date fair values of the 640,500 and 840,500 options
granted during the three and nine-month periods ended September 30, 2006 were $1.38 and
$1.46, respectively. |
|
The
Company has also contingently granted 2,965,000 options to senior executives at an
exercise price of $3 per share. These options are subject to approval by the shareholders
of the Company. These options will begin to vest quarterly over a period of 5 years after
approval is obtained. Compensation cost will be recognized for these options once approval
is obtained. |
|
(ii) |
The
Corporation adopted the US dollar as its reporting currency effective
January 1, 2000. For Canadian GAAP purposes, the financial
information for prior periods has been translated into US dollars at
the December 31, 1999 exchange rate. For United States GAAP
reporting purposes, assets and liabilities for periods prior to
January 1, 2000 have been translated into US dollars at the ending
exchange rate for the respective period and the statement of operations
at the average exchange rate for the respective period. |
-12-
NYMOX PHARMACEUTICAL
CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended September
30, 2006, 2005 and 2004
(in US dollars)
|
Geographic
segment information is as follows: |
|
|
Canada
|
|
United
States
|
|
Europe
and other
|
|
Revenues: |
|
|
| |
|
| |
|
| |
|
2006 | | |
$ | 19,048 |
|
$ | 279,661 |
|
$ | 59,477 |
|
2005 | | |
| 39,197 |
|
| 280,558 |
|
| -- |
|
2004 | | |
| 2,213 |
|
| 241,366 |
|
| -- |
|
Net loss: | | |
| |
|
| |
|
2006 | | |
| (3,182,918 |
) |
| (475,782 |
) |
| -- |
|
2005 | | |
| (2,354,991 |
) |
| (408,449 |
) |
| -- |
|
2004 | | |
| (2,368,841 |
) |
| (432,512 |
) |
| -- |
|
Property and equipment, patents and | | |
| |
|
| |
|
| |
|
intellectual property | | |
| |
|
| |
|
September 30, 2006 | | |
| 3,055,237 |
|
| 252,208 |
|
| -- |
|
December 31, 2005 | | |
| 3,072,345 |
|
| 249,247 |
|
| -- |
|
|
|
Revenues
are attributed to geographic locations based on location of customers. |
|
(a) |
On
October 3, 2006, the Corporation issued 56,022 common shares pursuant to the
Common Stock Private Purchase Agreement for a cash consideration of
$200,000. |
|
(b) |
On
October 18, 2006, the Corporation issued 33,943 common shares pursuant to the
Common Stock Private Purchase Agreement for a cash consideration of
$130,000. |
|
(c) |
On
October 25, 2006, the Corporation issued 73,529 common shares pursuant to the
Common Stock Private Purchase Agreement for a cash consideration of
$300,000. |
-13-
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.
|
NYMOX PHARMACEUTICAL CORPORATION |
|
(Registrant) |
|
By: /s/ Paul Averback |
|
Paul Averback |
|
President and Chief Executive Officer |
Date: November 13, 2006
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