-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
AjHw5NNcKeMQotcWkCejMcpN2tcr70loCswKcyQ5t5hVK5UScI6MAe1rzqPzYz4h
7eCPELrK70vNs9DT84fQdQ==
0000897069-07-001654.txt : 20070814
0000897069-07-001654.hdr.sgml : 20070814
20070814112417
ACCESSION NUMBER: 0000897069-07-001654
CONFORMED SUBMISSION TYPE: 6-K
PUBLIC DOCUMENT COUNT: 2
CONFORMED PERIOD OF REPORT: 20070630
FILED AS OF DATE: 20070814
DATE AS OF CHANGE: 20070814
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: 071052349
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
cmw2961.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
June 30, 2007
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 (BPH). NX-1207 has shown positive
results in Phase 1 and 2 clinical trials in the U.S. The Company successfully completed a
43 site randomized prospective placebo controlled U.S. clinical trial of NX-1207, which
showed statistically significant efficacy and a good safety profile. 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 candidates which are under
development as drug treatments aimed at the causes of Alzheimers disease, and has
several other drug candidates in development. Nymox has U.S. and global patent rights for
the use of statin drugs for the treatment and prevention of Alzheimers disease.
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 June 30, 2007.
NX-1207 has successfully completed
three U.S. trials to date. The companys most recently reported trial, a Phase 2
double-blind, placebo controlled, randomized study, showed positive efficacy and safety
results for NX-1207 after 3 months in patients with BPH. Overall, patients treated with
NX-1207 showed after 3 months a mean improvement of 9.35 points in AUA Symptom Score
values, the standard scale used to evaluate BPH drugs and treatments. This improvement
compares favorably to the 3.5 to 5 points reported in published studies of currently
approved drugs for BPH and reached statistical significance when compared to placebo.
Subjects treated with NX-1207 also showed an overall significant reduction in mean
prostate volume. 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.
On May 7, Nymox announced positive
results from a new long-term outcome study of NX-1207 for benign prostatic hyperplasia
(BPH). The study evaluated symptomatic progress of U.S. patients involved in the
Companys two Phase 1-2 studies initiated in 2003. Patients treated with NX-1207 were
followed-up on an unselected and as available basis and assessed for symptomatic
improvement, treatment outcomes, and durability of efficacy 3 ½ years after NX-1207
treatment. Overall, patients treated with NX-1207 showed a mean improvement of 8.6 points
in the primary outcome endpoint of AUA Symptom Score value 42 months after NX-1207
treatment. 50% of these patients reported no additional treatment for the BPH during this
period and had a mean improvement of 10.0 points in AUA Symptom Score. This sustained
improvement in BPH symptom score after NX-1207 treatment compares favorably to the 3.5 to
5 points reported in published studies of currently approved BPH drugs, which, unlike
NX-1207 treatment, require uninterrupted, daily administration to be effective.
1
On May 17, Nymox announced that the
successful results of an important pediatric second-hand smoke study of the Companys
NicAlert product were the subject of a podium presentation by Professor Anne Turner
Henson of the University of Alabama at the International Conference of the American
Thoracic Society in San Francisco. The study involved 100 pre-school children who were
investigated for second-hand smoke exposure, smokers in the family, and other health
issues. The International Conference of the American Thoracic Society is one of the
largest gatherings of Pulmonary and Critical Care clinicians and researchers in the world
and covers a broad range of topics relating to lung disease and health advocacy and
education, including asthma, the environment, chronic obstructive pulmonary disease,
tobacco control, lung cancer, and pediatric lung disease.
On June 21, Nymox announced that
detailed results from the Companys recently completed studies of NX-1207 for benign
prostatic hyperplasia (BPH) will be presented at a series of upcoming U.S. urology
meetings, beginning in September at the South Central American Urological Association
Meeting in Colorado Springs. These independent podium presentations will be given by
leading clinical research urologist principal investigators from the clinical trials.
On July 3, Nymox announced that
further clinical results from the Companys studies of NX-1207 for benign prostatic
hyperplasia (BPH) will be presented at the New England Section of the American Urological
Association Meeting in Boston in September.
We wish to thank our over 4,000 Nymox
shareholders for your strong support. The Nymox team is working diligently to advance our
many projects. We are enthusiastic about the important upcoming year for the Company.
/s/ Paul Averback, MD
Paul Averback MD
President
August 14, 2007
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 $13.5 million as of December 31, 2006, 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.
Stock-based Compensation
The Company accounts for employee and
non-employee stock options using the fair value based method estimated using the Black
Scholes model, which requires the certain use of assumptions, including future stock price
volatility and the time interval until the options are exercised. Any change which
requires the use of assumptions could lead to a variation of the fair value of the
stock-based compensation, which could have a material impact on the Companys
results. Under this method, compensation cost is measured at fair value at the date of
grant and is expensed over the vesting period.
Results of Operations
|
Six Months Ended June 30
|
2007
|
2006
|
2005
|
Total Revenues |
|
|
| $226,078 |
|
| $216,369 |
|
| $218,998 |
|
|
Net Loss | | |
| $(2,597,470 |
) |
| $(2,419,867 |
) |
| $(1,804,976 |
) |
|
Loss per share (basic & diluted) | | |
| $(0.09 |
) |
| $(0.09 |
) |
| $(0.07 |
) |
|
Total Assets | | |
| $4,933,358 |
|
| $3,690,397 |
|
| $3,682,888 |
|
|
|
Quarterly Results
|
Q2 - 2007
|
Q1 - 2007
|
Q4 - 2006
|
Q3 - 2006
|
Total Revenues |
|
|
| $87,412 |
|
| $138,666 |
|
| $84,675 |
|
| $141,817 |
|
|
Net Loss | | |
| $(1,464,950 |
) |
| $(1,132,520 |
) |
| $(1,234,985 |
) |
| $(1,238,833 |
) |
|
Loss per share (basic & diluted) | | |
| $(0.05 |
) |
| $(0.04 |
) |
| $(0.04 |
) |
| $(0.04 |
) |
|
|
|
Q2 - 2006
|
Q1 - 2006
|
Q4 - 2005
|
Q3 - 2005
|
Total Revenues | | |
| $120,360 |
|
| $96,009 |
|
| $106,527 |
|
| $100,757 |
|
|
Net Loss | | |
| $(1,360,621 |
) |
| $(1,059,246 |
) |
| $(821,088 |
) |
| $(958,464 |
) |
|
Loss per share (basic & diluted) | | |
| $(0.05 |
) |
| $(0.04 |
) |
| $(0.03 |
) |
| $(0.04 |
) |
|
4
Results of Operations
Q2 2007 compared to Q2 2006
Net losses were $1,464,950, or $0.05
per share, for the three months and $2,597,470, or $0.09 per share for the six months
ended June 30, 2007, compared to $1,360,621, or $0.05 per share, for the three months and
$2,419,867, or $0.09 per share, for the six months ended June 30, 2006. The increase in
net losses is attributable to an increase in research and development costs. The weighted
average number of common shares outstanding for the six months ended June 30, 2007 was
28,759,024 compared to 27,327,305 for the same period in 2006.
Revenues
Revenues from sales were $79,385 for
the three months and $215,789 for the six months ended June 30, 2007, compared with
$117,690 for the three months and $212,949 for the six months ended June 30, 2006. The
quarterly variance is due to timing differences in the orders received for
TobacAlert in 2007 compared to 2006. 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 $906,104 for the three months and $1,457,494 for the six months ended June 30, 2007,
compared with $592,692 for the three months and $1,295,720 for the six months ended June
30, 2006. An increase in expenses relating research and development of product candidates
destined for clinical trials explains the increase. For the first six months of 2007,
research tax credits amounted to $34,915 compared to $5,114 in 2006 as a result of
additional expenditures claimed for refundable tax credits in 2007 compared to 2006. 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 were $53,329
for the three months and $122,737 for the six months ended June 30, 2007, compared with
$65,500 for the three months and $113,535 for the six months ended June 30, 2006. The
increase to date is due to higher advertising expenditures incurred in the first quarter
of 2007. 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
decreased to $223,830 for the three months and $439,869 for the six months ended June 30,
2007, compared with $312,171 for the three months and $517,439 for the six months ended
June 30, 2006, due to lower expenditures in many areas such as shareholder relations
(decrease 63.5%), insurance (decrease 22.1%) and travel (decrease 30.5%). The Company
expects that general and administrative expenditures will increase as new product
development leads to expanded operations.
Stock-based Compensation
In the first quarter of 2007, 10,000
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 $33,960, was
recorded in the first quarter. In each quarter of 2007, stock-based compensation costs
were recorded of $204,680 (total $409,360 to date in 2007) for options granted in 2006
which vest quarterly over six years.
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 72% of 2007 expenses (75% in 2006) were in U.S. dollars. Foreign
exchange fluctuations had no meaningful impact on the Companys results in 2007 or
2006.
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 $20,526 per month.
|
Contractual Obligations
|
Total
|
Current
|
2-4 years
|
5 years +
|
Rent |
|
|
| $770,995 |
|
| $237,315 |
|
| $533,680 |
|
| $0 |
|
|
Operating Leases | | |
| $47,493 |
|
| $18,848 |
|
| $28,645 |
|
| $0 |
|
|
Total Contractual Obligations | | |
| $818,488 |
|
| $256,163 |
|
| $562,325 |
|
| $0 |
|
|
Results of Operations
Q2 2006 compared to Q2 2005
Net losses were $1,360,621, or $0.05
per share, for the three months and $2,419,867, or $0.09 per share for the six months
ended June 30, 2006, compared to $847,299, or $0.03 per share, for the three months and
$1,804,976, or $0.07 per share, for the six months ended June 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 average number of common
shares outstanding for the six months ended June 30, 2006 was 27,327,305 compared to
25,720,971 for the same period in 2005.
6
Revenues
Revenues from sales remained stable
at $117,690 for the three months and $212,949 for the six months ended June 30, 2006,
compared with $116,820 for the three months and $218,314 for the six months ended June 30,
2005.
Research and Development
Research and development expenditures
were $1,295,720 for the six months ended June 30, 2006, compared with $959,299 for the six
months ended June 30, 2005. Increased expenses relating to moving product candidates
through clinical trials explains the increase. For the first six months of 2006, research
tax credits amounted to $5,114 compared to $2,175 in 2005.
Marketing Expenses
Marketing expenditures remained
stable at $113,535 for the six months ended June 30, 2006, compared with $116,524 for the
six months ended June 30, 2005.
Administrative Expenses
General and administrative expenses
amounted to $517,439 for the six months ended June 30, 2006, compared with $611,300 for
the six months ended June 30, 2005, due to lower expenditures in many areas such as
salaries (decrease 34%), shareholder relations (decrease 25%) and insurance (decrease
23%).
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 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.
Recent Accounting
Pronouncements
Financial instruments:
On January 1, 2007, the Corporation
adopted CICA Handbook Section 1530, Comprehensive Income, CICA Handbook Section
3251, Equity, CICA Handbook Section 3855, Financial Instruments
Recognition and Measurement, CICA Handbook Section 3862, Financial Instruments
Disclosures, and CICA Handbook Section 3865, Hedges. The adoption of the
standards did not have a material effect on its financial statements.
Accounting for
uncertainty in income taxes:
In June 2006, the FASB issued FASB
Interpretation No. 48, Accounting for Uncertainty in Income Taxes an
interpretation of FASB Statement No. 109 (FIN 48), which clarifies the
accounting for uncertainty in income taxes recognized in an entitys financial
statements. The Interpretation prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax position taken
or expected to be taken on a tax return. This FASB interpretation is effective for the
Company beginning January 1, 2007. The adoption of FIN 48 did not have a material effect
on the Companys financial condition or results of operation.
7
Fair value measurements:
In September 2006, the FASB issued
Statement of Financial Accounting Standards (SFAS) No. 157, Fair Value
Measurements. SFAS No. 157 clarifies the principle that fair value should be based on
the assumptions market participants would use when pricing an asset or liability and
establishes a fair value hierarchy that prioritizes the information used to develop those
assumptions. Under the standard, fair value measurements would be separately disclosed by
level within the fair value hierarchy. SFAS No. 157 is effective for financial statements
issued for fiscal years beginning after November 15, 2007 and interim periods within those
fiscal years, with early adoption permitted. The Company does not expect the adoption of
SFAS No. 157 to materially impact its financial statements.
Financial Position
Liquidity and Capital
Resources
As of June 30, 2007, cash totaled
$985,681 and receivables including tax credits totaled $151,121. In November 2006, 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 November 13, 2006. As at June 30, 2007, eight drawings
were made under this purchase agreement, for total proceeds of $4,750,000. On December 6,
2006, 29,499 common shares were issued at a price of $3.39 per share. On December 13,
2006, 56,818 common shares were issued at a price of $3.52 per share. On December 20,
2006, 91,185 common shares were issued at a price of $3.29 per share. On January 24, 2007,
121,294 common shares were issued at a price of $3.71 per share. On February 14, 2007,
181,087 common shares were issued at a price of $4.97 per share. On March 26, 2007, 67,869
common shares were issued at a price of $5.89 per share. On April 26, 2007, 97,276 common
shares were issued at a price of $5.14 per share. On May 9, 2007, 286,145 common shares
were issued at a price of $6.64 per share.
The Company can draw down a further
$8,250,000 over the remaining 16 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.
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
kpmg
|
Consolidated
Financial Statements of (Unaudited) |
|
NYMOX
PHARMACEUTICAL CORPORATION |
|
Periods
ended June 30, 2007, 2006 and 2005 |
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Financial Statements(Unaudited)
Periods ended June 30, 2007, 2006 and
2005
Financial Statements |
|
Consolidated Balance Sheets |
1 |
Consolidated Statements of Operations |
2 |
Consolidated Statements of Shareholders Equity |
3 |
Consolidated Statements of Cash Flows |
4 |
Notes to Consolidated Financial Statements |
5 |
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Balance Sheets
(Unaudited)
June 30, 2007, with comparative
figures as at December 31, 2006
(in US dollars)
|
|
June 30,
2007
|
|
December 31,
2006
|
|
(Audited) | |
Assets |
|
|
| |
|
| |
|
Current assets: | | |
Cash and cash equivalents | | |
$ | 985,681 |
|
$ | 235,124 |
|
Accounts receivable | | |
| 62,588 |
|
| 46,307 |
|
Research tax credits receivable | | |
| 88,533 |
|
| 53,618 |
|
Inventories | | |
| 25,142 |
|
| 44,145 |
|
|
| | |
| 1,161,944 |
|
| 379,194 |
|
Long-term security deposit | | |
| 35,993 |
|
| 35,993 |
|
Long-term receivables | | |
| 70,000 |
|
| 70,000 |
|
Property and equipment | | |
| 20,700 |
|
| 7,839 |
|
Patents and intellectual property | | |
| 3,644,721 |
|
| 3,477,819 |
|
|
| | |
$ | 4,933,358 |
|
$ | 3,970,845 |
|
|
Liabilities and Shareholders Equity | | |
Current liabilities: | | |
Accounts payable | | |
$ | 795,228 |
|
$ | 1,430,987 |
|
Accrued liabilities | | |
| 146,258 |
|
| 158,801 |
|
Deferred lease inducement | | |
| 9,623 |
|
| 9,623 |
|
Notes payable | | |
| -- |
|
| 500,000 |
|
Deferred revenue | | |
| 6,666 |
|
| 15,907 |
|
|
| | |
| 957,775 |
|
| 2,115,318 |
|
Long-term deferred revenue | | |
| -- |
|
| 3,333 |
|
Deferred lease inducement | | |
| 20,850 |
|
| 25,661 |
|
Non-controlling interest | | |
| 800,000 |
|
| 800,000 |
|
Shareholders equity: | | |
Share capital | | |
| 48,955,147 |
|
| 44,443,350 |
|
Additional paid-in capital | | |
| 1,914,151 |
|
| 1,463,833 |
|
Deficit | | |
| (47,714,565 |
) |
| (44,880,650 |
) |
|
| | |
| 3,154,733 |
|
| 1,026,533 |
|
Contingency (note 5) | | |
|
| | |
$ | 4,933,358 |
|
$ | 3,970,845 |
|
|
See accompanying notes to unaudited
consolidated financial statements.
-1-
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Statements of Operations
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|
2007
|
|
2006
|
|
2005
|
|
2007
|
|
2006
|
|
2005
|
|
Revenue: |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
Sales | | |
$ | 79,385 |
|
$ | 117,690 |
|
$ | 116,820 |
|
$ | 215,789 |
|
$ | 212,949 |
|
$ | 218,314 |
|
Interest | | |
| 8,027 |
|
| 2,670 |
|
| 247 |
|
| 10,289 |
|
| 3,420 |
|
| 684 |
|
|
| | |
| 87,412 |
|
| 120,360 |
|
| 117,067 |
|
| 226,078 |
|
| 216,369 |
|
| 218,998 |
|
Expenses: | | |
Research and | | |
development | | |
| 906,104 |
|
| 592,692 |
|
| 459,889 |
|
| 1,457,494 |
|
| 1,295,720 |
|
| 959,299 |
|
Less investment tax | | |
credits | | |
| (20,365 |
) |
| (3,989 |
) |
| (1,125 |
) |
| (34,915 |
) |
| (5,114 |
) |
| (2,175 |
) |
|
| | |
| 885,739 |
|
| 588,703 |
|
| 458,764 |
|
| 1,422,579 |
|
| 1,290,606 |
|
| 957,124 |
|
General and | | |
administrative | | |
| 223,830 |
|
| 312,171 |
|
| 276,217 |
|
| 439,869 |
|
| 517,439 |
|
| 611,300 |
|
Marketing | | |
| 53,329 |
|
| 65,500 |
|
| 54,443 |
|
| 122,737 |
|
| 113,535 |
|
| 116,524 |
|
Stock-based compensation | | |
(note 2) | | |
| 208,735 |
|
| 342,455 |
|
| 4,055 |
|
| 451,430 |
|
| 346,510 |
|
| 8,110 |
|
Cost of sales | | |
| 46,026 |
|
| 37,646 |
|
| 53,688 |
|
| 122,370 |
|
| 114,707 |
|
| 99,587 |
|
Depreciation and | | |
amortization | | |
| 129,983 |
|
| 115,281 |
|
| 106,059 |
|
| 248,572 |
|
| 222,733 |
|
| 208,530 |
|
Interest and bank | | |
charges | | |
| 4,720 |
|
| 19,225 |
|
| 11,140 |
|
| 15,991 |
|
| 30,706 |
|
| 22,799 |
|
|
| | |
| 1,552,362 |
|
| 1,480,981 |
|
| 964,366 |
|
| 2,823,548 |
|
| 2,636,236 |
|
| 2,023,974 |
|
|
Net loss | | |
$ | (1,464,950 |
) |
$ | (1,360,621 |
) |
$ | (847,299 |
) |
$ | (2,597,470 |
) |
$ | (2,419,867 |
) |
$ | (1,804,976 |
) |
|
Loss per share (basic | | |
and diluted) | | |
$ | (0.05 |
) |
$ | (0.05 |
) |
$ | (0.03 |
) |
$ | (0.09 |
) |
$ | (0.09 |
) |
$ | (0.07 |
) |
|
Weighted average | | |
number of common | | |
shares outstanding | | |
| 28,796,866 |
|
| 27,213,683 |
|
| 25,752,053 |
|
| 28,759,024 |
|
| 27,327,305 |
|
| 25,720,971 |
|
|
See accompanying notes to unaudited
consolidated financial statements.
-2-
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Statements of Shareholders Equity
(Unaudited)
Period ended June 30, 2007
(in US
dollars)
|
|
Share capital
|
Additional
paid-in | |
|
Number
|
|
Dollars
|
|
capital
|
|
Deficit
|
|
Total
|
|
Balance, December 31, 2006 |
|
|
| 28,322,253 |
|
$ | 44,443,350 |
|
$ | 1,463,833 |
|
$ | (44,880,650 |
) |
$ | 1,026,533 |
|
Issuance of share capital | | |
| 753,671 |
|
| 4,150,000 |
|
| -- |
|
| -- |
|
| 4,150,000 |
|
Share issue costs | | |
| -- |
|
| -- |
|
| -- |
|
| (236,445 |
) |
| (236,445 |
) |
Exercise of stock options: | | |
Cash | | |
| 91,000 |
|
| 360,685 |
|
| -- |
|
| -- |
|
| 360,685 |
|
Ascribed value | | |
| -- |
|
| 1,112 |
|
| (1,112 |
) |
| -- |
|
| -- |
|
|
| | |
| 91,000 |
|
| 361,797 |
|
| (1,112 |
) |
| -- |
|
| 360,685 |
|
Stock-based compensation | | |
| -- |
|
| -- |
|
| 451,430 |
|
| -- |
|
| 451,430 |
|
Net loss | | |
| -- |
|
| -- |
|
| -- |
|
| (2,597,470 |
) |
| (2,597,470 |
) |
|
Balance, June 30, 2007 | | |
| 29,166,924 |
|
$ | 48,955,147 |
|
$ | 1,914,151 |
|
$ | (47,714,565 |
) |
$ | 3,154,733 |
|
|
See accompanying notes to unaudited
consolidated financial statements.
-3-
NYMOX PHARMACEUTICAL CORPORATION
Consolidated Statements of Cash Flows
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|
2007
|
|
2006
|
|
2005
|
|
2007
|
|
2006
|
|
2005
|
|
Cash flows from operating |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
activities: | | |
Net loss | | |
$ | (1,464,950 |
) |
$ | (1,360,621 |
) |
$ | (847,299 |
) |
$ | (2,597,470 |
) |
$ | (2,419,867 |
) |
$ | (1,804,976 |
) |
Adjustments for: | | |
Depreciation and | | |
amortization | | |
| 129,983 |
|
| 115,281 |
|
| 106,059 |
|
| 248,572 |
|
| 222,733 |
|
| 208,530 |
|
Stock-based | | |
compensation | | |
| 208,735 |
|
| 342,455 |
|
| 4,055 |
|
| 451,430 |
|
| 346,510 |
|
| 8,110 |
|
Net change in operating | | |
assets and liabilities | | |
| (288,870 |
) |
| (811,613 |
) |
| 178,809 |
|
| (376,132 |
) |
| (720,933 |
) |
| 401,618 |
|
|
| | |
| (1,415,102 |
) |
| (1,714,498 |
) |
| (558,376 |
) |
| (2,273,600 |
) |
| (2,571,557 |
) |
| (1,186,718 |
) |
Cash flows from financing | | |
activities: | | |
Proceeds from issuance | | |
of share capital | | |
| 2,661,775 |
|
| 1,050,000 |
|
| 965,000 |
|
| 4,510,685 |
|
| 2,950,000 |
|
| 1,490,000 |
|
Share issue costs | | |
| (136,739 |
) |
| (60,389 |
) |
| (55,500 |
) |
| (236,445 |
) |
| (169,672 |
) |
| (82,768 |
) |
Repayment of notes payable | | |
| (350,000 |
) |
| -- |
|
| -- |
|
| (500,000 |
) |
| -- |
|
| (100,000 |
) |
|
| | |
| 2,175,036 |
|
| 989,611 |
|
| 909,500 |
|
| 3,774,240 |
|
| 2,780,328 |
|
| 1,307,232 |
|
Cash flows from investing | | |
activities: | | |
Additions to property | | |
and equipment, | | |
and patents and | | |
intellectual property | | |
| (358,218 |
) |
| (193,232 |
) |
| (360,533 |
) |
| (750,083 |
) |
| (237,845 |
) |
| (495,997 |
) |
|
Net increase (decrease) in cash | | |
and cash equivalents | | |
| 401,716 |
|
| (918,119 |
) |
| (9,409 |
) |
| 750,557 |
|
| (29,074 |
) |
| (375,483 |
) |
Cash and cash equivalents, | | |
beginning of period | | |
| 583,965 |
|
| 1,040,521 |
|
| 163,568 |
|
| 235,124 |
|
| 151,476 |
|
| 529,642 |
|
|
Cash and cash equivalents, | | |
end of period | | |
$ | 985,681 |
|
$ | 122,402 |
|
$ | 154,159 |
|
$ | 985,681 |
|
$ | 122,402 |
|
$ | 154,159 |
|
|
Supplemental disclosure to | | |
statements of cash flows: | | |
(a) Interest paid | | |
$ | 3,231 |
|
$ | 17,783 |
|
$ | 7,706 |
|
$ | 12,362 |
|
$ | 26,728 |
|
$ | 15,497 |
|
(b) Non-cash | | |
transactions: | | |
Acquisition of property | | |
and equipment, patents | | |
and intellectual property | | |
included in accounts | | |
payable and accrued | | |
liabilities | | |
| 261,107 |
|
| 206,411 |
|
| 53,123 |
|
| 261,107 |
|
| 360,874 |
|
| 164,513 |
|
|
See accompanying notes to unaudited
consolidated financial statements.
-4-
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(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 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
June 30, 2007, the unaudited consolidated statement of shareholders equity for the
six-month period ended June 30, 2007 and the unaudited consolidated statements of
operations and cash flows for the three-month and six-month periods ended June 30, 2007,
2006 and 2005 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, 2006, except as described below. 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, 2006. |
-5-
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
1. |
Basis
of presentation (continued): |
|
(b) |
Changes
in accounting policies: |
|
Effective
with the commencement of its 2007 fiscal year, the Company adopted the Canadian Institute
of Chartered Accountants (CICA) Handbook Section 1530, Comprehensive
Income, CICA Handbook Section 3251, Equity, CICA Handbook Section 3855,
Financial Instruments Recognition and Measurement, CICA Handbook Section
3861, Financial Instruments Disclosure and Presentation, and CICA
Handbook Section 3865, Hedges. These new Handbook Sections provide comprehensive
requirements for the recognition and measurement of financial instruments, as well as
standards on when and how hedge accounting may be applied. Handbook Section 1530 also
establishes standards for reporting and displaying comprehensive income. Comprehensive
income is defined as the change in equity from transactions and other events from
non-owner sources. Other comprehensive income refers to items recognized in comprehensive
income but that are excluded from net income calculated in accordance with generally
accepted accounting principles. |
|
Under
these new standards, all financial instruments are classified into one of the following
five categories: held for trading, held-to-maturity investments, loans and receivables,
available-for-sale financial assets or other financial liabilities. All financial
instruments, including derivatives, are included on the consolidated balance sheet and are
measured at fair market value with the exception of loans and receivables, investments
held-to-maturity and other financial liabilities, which are measured at amortized cost. |
|
The
standards also require derivative instruments to be recorded as either assets or
liabilities measured at their fair value unless exempted from derivative treatment as a
normal purchase and sale. Certain derivatives embedded in other contracts must also be
measured at fair value. All changes in the fair value of derivatives are recognized in
earnings unless specific hedge criteria are met, which requires that a company must
formally document, designate and assess the effectiveness of transactions that receive
hedge accounting. |
|
As
a result of the adoption of these standards, the Company has classified its accounts
receivable as loans and receivables and its accounts payable, accrued
liabilities and notes payable as other financial liabilities. These
classifications had no impact on the Companys financial position or results of
operations. In addition, the adoption of standards of Sections 1530, 3251, 3855 and
3861 had no impact on the financial statements for the period ended June 30, 2007. |
-6-
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
|
(a) |
Common
Stock Private Purchase Agreement: |
|
In
November 2006, 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 maximum amount of
each notice is $500,000 and the minimum amount is $100,000. 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 June 30, 2007, the Corporation issued 753,671 common
shares to the Purchaser for aggregate proceeds of $4,150,000 under the agreement. At
June 30, 2007, the Corporation can require the Purchaser to purchase up to $8,250,000
of common shares over the remaining 16 months of the agreement. |
|
(b) |
Stock-based
compensation: |
|
|
Three months ended June 30,
|
Six months ended June 30,
|
|
2007
|
|
2006
|
|
2005
|
|
2007
|
|
2006
|
|
2005
|
|
Stock-based compensation |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
pertaining to general | | |
and administrative | | |
$ | 20,640 |
|
$ | 253,800 |
|
$ | -- |
|
$ | 41,280 |
|
$ | 253,800 |
|
$ | -- |
|
Stock-based compensation | | |
pertaining to marketing | | |
| 7,495 |
|
| 88,655 |
|
| 4,055 |
|
| 14,990 |
|
| 92,710 |
|
| 8,110 |
|
Stock-based compensation | | |
pertaining to research | | |
and development | | |
| 180,600 |
|
| -- |
|
| -- |
|
| 395,160 |
|
| -- |
|
| -- |
|
|
| | |
$ | 208,735 |
|
$ | 342,455 |
|
$ | 4,055 |
|
$ | 451,430 |
|
$ | 346,510 |
|
$ | 8,110 |
|
|
-7-
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
2. |
Share
capital (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. On June 21, 2007, the shareholders approved a resolution to increase the
maximum number of shares which may be optioned under the stock option plan from 2,500,000
to 5,500,000 and increase the maximum number of shares which may be optioned to any one
individual from 5% to 15% of the total issued and outstanding common shares. In addition,
the grant of 2,965,000 options to senior executives at an exercise price of $3 per share
in August 2006, contingent on the approval of the above resolution, became effective.
Options under the Plan expire ten years after the grant and vest either immediately or
over periods up to five years. |
|
The
following table provides the activity of stock option awards during the period and for
options outstanding and exercisable at the end of the period, 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 June 30, 2007 of $5.26, which would have been
received by option holders had they exercised their options at that date. |
|
|
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, | | |
2006 | | |
| 5,167,000 |
|
$ | 3.17 |
|
| |
|
| |
|
| 3,272,500 |
|
$ | 3.00 |
|
Exercised | | |
| (91,000 |
) |
| 3.96 |
|
| |
|
| |
|
| -- |
|
| -- |
|
Granted | | |
| 10,000 |
|
| 5.51 |
|
| |
|
| |
|
| -- |
|
| -- |
|
Expired | | |
| (302,500 |
) |
| 4.46 |
|
| |
|
| |
|
| -- |
|
| -- |
|
Vested | | |
| -- |
|
| -- |
|
| |
|
| |
|
| (307,500 |
) |
| 3.08 |
|
|
Outstanding, | | |
June 30, 2007 | | |
| 4,783,500 |
|
$ | 3.09 |
|
| 7.5 |
|
$ | 10,491,015 |
|
| 2,965,000 |
|
$ | 3.00 |
|
|
Options exercisable | | |
| 1,818,500 |
|
$ | 3.23 |
|
| 4.9 |
|
$ | 3,790,115 |
|
| N/A |
|
$ | N/A |
|
|
-8-
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
2. |
Share
capital (continued): |
|
(c) |
Stock
option plan (continued): |
|
At
June 30, 2007, the unrecognized compensation cost related to non-vested awards was
$4,079,840 and the remaining weighted average recognition period is approximately 6 years. |
|
The
fair value of the options granted during the period was determined using the Black-Scholes
pricing model using the following weighted average assumptions: |
|
|
2007
|
|
2006
|
|
2005
|
|
Risk-free interest rate |
|
|
| 3.89 |
% |
| 4.26 |
% |
| -- |
|
Expected volatility | | |
| 71.61 |
% |
| 68.21 |
% |
| -- |
|
Expected life in years | | |
| 5 |
|
| 5 |
|
| -- |
|
Dividend yield | | |
| 0 |
% |
| 0 |
% |
| -- |
|
|
|
The
grant-date fair value of options granted during the period ended June 30, 2007 was $3.40
per share (2006 $1.69 per share). |
|
Dividend
yield was excluded from the calculation, since it is the present policy of the Corporation
to retain all earnings to finance operations. |
-9-
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
3. |
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 June 30,
|
Six months ended June 30,
|
|
2007
|
|
2006
|
|
2005
|
|
2007
|
|
2006
|
|
2005
|
|
Net loss, Canadian |
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
GAAP | | |
$ | (1,464,950 |
) |
$ | (1,360,621 |
) |
$ | (847,299 |
) |
$ | (2,957,470 |
) |
$ | (2,419,867 |
) |
$ | (1,804,976 |
) |
Adjustments: | | |
Stock-based | | |
compensation - | | |
options granted | | |
to non-employees | | |
(i) | | |
| -- |
|
| -- |
|
| (10,285 |
) |
| -- |
|
| -- |
|
| (20,570 |
) |
Stock-based | | |
compensation - | | |
employees (i) | | |
| -- |
|
| -- |
|
| 4,055 |
|
| -- |
|
| -- |
|
| 8,110 |
|
|
Net loss, U.S. GAAP | | |
$ | (1,464,950 |
) |
$ | (1,360,621 |
) |
$ | (853,529 |
) |
$ | (2,957,470 |
) |
$ | (2,419,867 |
) |
$ | (1,817,436 |
) |
|
Loss per share, U.S. | | |
GAAP | | |
$ | (0.05 |
) |
$ | (0.05 |
) |
$ | (0.03 |
) |
$ | (0.09 |
) |
$ | (0.09 |
) |
$ | (0.07 |
) |
|
|
(b) |
Consolidated
shareholders equity: |
|
The
reconciliation of shareholders equity reported in accordance with Canadian GAAP
with U.S. GAAP is as follows: |
|
|
June 30,
2007
|
|
December 31,
2006
|
|
Shareholders equity, Canadian GAAP |
|
|
$ | 3,154,733 |
|
$ | 1,026,533 |
|
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 | | |
$ | 3,144,624 |
|
$ | 1,016,424 |
|
|
-10-
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
3. |
Canadian/US
reporting differences (continued): |
|
(b) |
Consolidated
shareholders equity: |
|
(i) |
Stock-based
compensation: |
|
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 services. 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. |
|
(ii) |
Change
in reporting currency: |
|
The
Corporation adopted the US dollar as its reporting currency effective January 1, 2000. For
Canadian GAAP purposes, the financial information for 1999 has been translated into US
dollars at the December 31, 1999 exchange rate. For United States GAAP reporting
purposes, assets and liabilities for all years presented have been translated into US
dollars at the ending exchange rate for the respective year, and the statement of
earnings, at the average exchange rate for the respective year. |
-11-
NYMOX PHARMACEUTICAL CORPORATION
Notes to Consolidated Financial Statements, Continued
(Unaudited)
Periods ended June 30, 2007, 2006
and 2005
(in US dollars)
|
Geographic
segment information is as follows: |
|
|
Canada
|
|
United
States
|
|
Europe
and other
|
|
Revenues: |
|
|
| |
|
| |
|
| |
|
2007 | | |
$ | 21,023 |
|
$ | 173,535 |
|
$ | 31,520 |
|
2006 | | |
| 18,042 |
|
| 163,634 |
|
| 34,693 |
|
2005 | | |
| 11,431 |
|
| 207,567 |
|
| -- |
|
Property and equipment, patents | | |
and intellectual property: | | |
June 30, 2007 | | |
| 3,405,837 |
|
| 259,584 |
|
| -- |
|
December 31, 2006 | | |
| 3,229,093 |
|
| 256,565 |
|
| -- |
|
|
|
In
2005 and 2006, the Corporation received proposed notices of assessments relating to its
2001, 2002 and 2003 taxation years from the Canadian taxation authorities reducing the
Corporations claim for research and development tax credits in those taxation years.
The reductions include refundable tax credits totaling $66,864, which were previously
received by the Corporation, and non-refundable tax credits totaling $122,121, which are
available to reduce future federal income taxes payable over the carryforward period to
2013. The non-refundable credits were not previously recognized for financial statement
purposes. The Corporation has filed a notice of objection to the assessments with the
taxation authorities since it believes it meets the criteria for claiming the tax credits
and that the taxation authorities erred in their assessments. The Corporation has not
recorded a provision for this matter. |
-12-
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: August 14, 2007
GRAPHIC
2
nymox.gif
GRAPHIC
begin 644 nymox.gif
M1TE&.#EAQP`S`/<``````(````"``("`````@(``@`"`@("`@,#`P/\```#_
M`/__````__\`_P#______P``````````````````````````````````````
M````````````````````````````````````````````````````````````
M````,P``9@``F0``S```_P`S```S,P`S9@`SF0`SS``S_P!F``!F,P!F9@!F
MF0!FS`!F_P"9``"9,P"99@"9F0"9S`"9_P#,``#,,P#,9@#,F0#,S`#,_P#_
M``#_,P#_9@#_F0#_S`#__S,``#,`,S,`9C,`F3,`S#,`_S,S`#,S,S,S9C,S
MF3,SS#,S_S-F`#-F,S-F9C-FF3-FS#-F_S.9`#.9,S.99C.9F3.9S#.9_S/,
M`#/,,S/,9C/,F3/,S#/,_S/_`#/_,S/_9C/_F3/_S#/__V8``&8`,V8`9F8`
MF68`S&8`_V8S`&8S,V8S9F8SF68SS&8S_V9F`&9F,V9F9F9FF69FS&9F_V:9
M`&:9,V:99F:9F6:9S&:9_V;,`&;,,V;,9F;,F6;,S&;,_V;_`&;_,V;_9F;_
MF6;_S&;__YD``)D`,YD`9ID`F9D`S)D`_YDS`)DS,YDS9IDSF9DSS)DS_YEF
M`)EF,YEF9IEFF9EFS)EF_YF9`)F9,YF99IF9F9F9S)F9_YG,`)G,,YG,9IG,
MF9G,S)G,_YG_`)G_,YG_9IG_F9G_S)G__\P``,P`,\P`9LP`FC3L7HMZE
M6QMVE7F06MBQ8H$53!OW:<.Z=AW_2TL9*,6AE856CMJP;6;/F`-#A+Q9],*Q
MA`\>1BSVZ\"FFX/V10@Z*@K1>R4_MIN*,=6%>_W\_1UQKVF"QU'/7,TZUS&"
M>V\O]+W4#_3@)>UNW3M[X'"T_[XG_[4.U?A!8\\)#D[8M7GBE;D5BG=:,'I1
MNKPO[IUIGOK2[@?YE]1Q_QR3RSH%K5=86)NX]YY`\PU%GD&0V650;)7A9YM2
M1L&&F80'Z;49>5AAJ!9#;-4VU7'RB)7>0`JJAEB#S1GSVH<;$C@9CFT=9)]E
M#%68E%7F$92BA0()N-1"1Q8I$#YC(4C06*Y1R)Q8-"+FFI!2&10A7@9MZ!1]
M"PF9EE5<3J7;/UD-)9IXU*U9GUM4F;;:BP(IA]"5#N8R4&]MO@4?59C1]B,*
M$_+'EUEW3?AEHE^.AY"2@`T4#V)X_I-+@ZD59%B?6=KD77QPW:7CCAMB".!`
M/`K5EXG2U?^%84$EMHKC;+6FBJ-HK&4:HT%=A>I@69/!ZI*'J9[*YJ%`*9LF
MF'_>]12EKS(K7;3,!G8I8CBI)U:GR/'9IV*L2AMIHF%:*^>@4LU&Z:->JGM=
MM@)=Z6MK8%7B((U9$MNDM8(F!'#`GN:7[L`!`NS8P%M!B:6+!8UUZJ=C"=M<
MMQ`.#*1"L*J(;KF@=8=4QY7IF*N*E?5&\JX%-G=O+A@;).ZF[OVR&,JVJL(0
M;TZR^Q]"D?Z<<*`#*[D5GS'_TQ6QP.;RR].;/EU3>V,5;.W'/K8UE$M$4TCG
M?9-JS2-3"<%YV]=C.D6-?UIIZG*"?;)&+D*L,:V?V&(2K%!^_R[_B9S!!_6M
M7=F-W4VO=M2PUF"5`E$=]]P'B=55TJC:I^S-J1HE(HYKVKIJ>+K:AO6HL66\
M\GVR[NHP:TG'+;="K&>-,]B=+9IDHSX/"1RI"2EYHWT3:K5^Y(3C^X>YDV9[%8ZB`_5O@&"0Y>>>T::5[T#$4H
M?>7G"V0^47_'18W#H;ZL^-L)/>RI/VB$M]C#?GHIJ4+V6I#[RN5T`CR+O:5*7L<*]RWD`@5IE)9K)2!>A7#_26/AC2JG\(8HBJ$J&)V(0L2
MAA@(NM(%+C1?K,U66D1&;S71/1N,W%CPA"PX-F5T(!MAO*RU1?NQ$84/I%T8
M<:@TX\$,;ADT7J8B-A9BW?`NG[,+(N%GGT9*A8Y>3$@J5N5"@1BCCP.1X?C$
M-[?YD2TZR@)<'@]E2C"F,"LJ:>7T8-FX?;'F4"7*+)YTHH7OCSKP4B2*EGM"C[0PJ3*$ZD&8<
MXZI8O>HZCK'5K68UJU[U*L9*>E$N+BM]$*&63S7:.Q5.]90)X:8LXV8S"?:,
MI](*3!LC8J($SM&E#A1J3!$RO+GR[W80#&'&($B>G3X5K0H9:ENERA.S)J09
MCIOK,4S3S[0J-6^(JLA??LBD("*44`K-"AT%XHR9-><7LTD397A2Q699Z62U
M@6L)1AJBD\>LLB[>UHJ-$,8%P)&,=HAMW^]%N4X':*/='(*HU*W>I:][K8
KS:YVM\O=[GKWN^`-KWC'2][RFO>\Z$VO>M?+WO:Z][WPC:]\YRO>@```.S\_
`
end
-----END PRIVACY-ENHANCED MESSAGE-----