-----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, QAPyFucOXv2WQVb9tWyVN9mSnhiy+juM2seaJRmfBW4L4x6QyD9RWzylZTSc/FOi rCMUysdkf1kzpm0UVOH46A== 0000950144-99-012730.txt : 19991115 0000950144-99-012730.hdr.sgml : 19991115 ACCESSION NUMBER: 0000950144-99-012730 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CYTRX CORP CENTRAL INDEX KEY: 0000799698 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 581642740 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-15327 FILM NUMBER: 99746948 BUSINESS ADDRESS: STREET 1: 154 TECHNOLOGY PKWY STREET 2: TECHNOLOGY PARK/ATLANTA CITY: NORCROSS STATE: GA ZIP: 30092 BUSINESS PHONE: 4043689500 MAIL ADDRESS: STREET 1: 154 TECHNOLOGY PARKWAY CITY: NORCROSS STATE: GA ZIP: 30092 10-Q 1 CYTRX CORPORATION 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1999 ------------------ OR [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to --------------- -------------- Commission file number 0-15327 ------- CYTRX CORPORATION - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) Delaware 58-1642740 - -------------------------------------------------------------------------------- (State or other jurisdiction (I.R.S. Employer Identification No.) of incorporation or organization) 154 Technology Parkway, Norcross, Georgia 30092 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (770) 368-9500 - -------------------------------------------------------------------------------- (Registrant's telephone number) Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [X] NO [ ] Number of shares of CytRx Corporation Common Stock, $.001 par value, issued and outstanding as of November 12, 1999: 7,740,037. 2 CYTRX CORPORATION Form 10-Q Table of Contents
Page ---- PART I. FINANCIAL INFORMATION Item 1 Financial Statements: Condensed Consolidated Balance Sheets as of September 30, 1999 (unaudited) and December 31, 1998 3 Condensed Consolidated Statements of Operations (unaudited) for the Three Month and Nine Month Periods Ended September 30, 1999 and 1998 4 Condensed Consolidated Statements of Cash Flows (unaudited) for the Nine Month Periods Ended September 30, 1999 and 1998 5 Notes to Condensed Consolidated Financial Statements 6 Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Item 3 Quantitative and Qualitative Disclosures About Market Risk 11 PART II. OTHER INFORMATION Item 6 Exhibits and Reports on Form 8-K 11 SIGNATURES 12
2 3 Part I - FINANCIAL INFORMATION Item 1. - Financial Statements CYTRX CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, December 31, 1999 1998 ------------- ------------ ASSETS (Unaudited) Current assets: Cash and cash equivalents $ 5,357,375 $ 8,855,375 Short-term investments -- 6,417,066 Accounts receivable 236,439 83,249 Note receivable -- 300,000 Inventories 6,476 10,935 Other current assets 97,021 10,377 ------------- ------------ Total current assets 5,697,311 15,677,002 Property and equipment, net 998,033 195,030 Other assets: Acquired developed technology, net -- 600,000 Other assets 70,978 169,536 ------------- ------------ Total other assets 70,978 769,536 ------------- ------------ Total assets $ 6,766,322 $ 16,641,568 ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 239,953 $ 540,089 Accrued liabilities 1,551,243 1,409,034 ------------- ------------ Total current liabilities 1,791,196 1,949,123 Minority interest in Vaxcel, Inc. -- 3,897 Commitments Stockholders' equity: Preferred Stock, $.01 par value, 1,000 shares authorized, including 1,000 shares of Series A Junior Participating Preferred Stock; no shares issued and outstanding -- -- Common stock, $.001 par value, 18,750,000 shares authorized; 8,269,857 and 8,236,926 shares issued at September 30, 1999 and December 31, 1998, respectively 8,270 8,237 Additional paid-in capital 67,546,098 66,423,577 Treasury stock, at cost (633,816 and 625,816 shares held at September 30, 1999 and December 31, 1998, respectively) (2,279,238) (2,270,238) Accumulated deficit (60,300,004) (49,473,028) ------------- ------------ Total stockholders' equity 4,975,126 14,688,548 ------------- ------------ Total liabilities and stockholders' equity $ 6,766,322 $ 16,641,568 ============= ============
See accompanying notes. 3 4 CYTRX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, ------------------------------ ------------------------------ 1999 1998 1999 1998 ----------- ------------ ------------ ----------- (restated) (restated) Revenues: Net sales $ 173,737 $ 221,337 $ 602,616 $ 694,053 Interest income 95,505 322,259 406,837 745,383 Grant income 150,077 54,826 404,367 406,908 Other 29,958 125,768 118,356 268,584 ----------- ------------ ------------ ----------- 449,277 724,190 1,532,176 2,114,928 Expenses: Cost of sales 68,317 71,509 197,291 183,394 Research and development 4,541,104 1,763,110 9,334,165 4,999,638 Selling, general and administrative 935,536 653,484 2,792,058 1,931,351 ----------- ------------ ------------ ----------- 5,544,957 2,488,103 12,323,514 7,114,383 ----------- ------------ ------------ ----------- Loss from continuing operations before extraordinary item (5,095,680) (1,763,913) (10,791,338) (4,999,455) Income (loss) from discontinued operations 209,867 (246,114) (39,535) 5,872,295 Minority interest -- (31,910) (3,897) (147,846) ----------- ------------ ------------ ----------- Income (loss) before extraordinary item (4,885,813) (1,978,117) (10,826,976) 1,020,686 Extraordinary item: Loss on early extinguishment of debt -- -- -- (325,120) ----------- ------------ ------------ ----------- Net income (loss) $(4,885,813) $ (1,978,117) $(10,826,976) $ 695,566 =========== ============ ============ =========== Basic and diluted income (loss) per common share: Continuing operations $ (0.67) $ (0.23) $ (1.41) $ (0.66) Discontinued operations 0.03 (0.03) (0.01) 0.79 Extraordinary item -- -- -- (0.04) ----------- ------------ ------------ ----------- Net income (loss) $ (0.64) $ (0.26) $ (1.42) $ 0.09 =========== ============ ============ =========== Basic and diluted weighted average shares outstanding 7,635,625 7,669,440 7,627,983 7,617,673
4 5 CYTRX CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Month Periods Ended September 30, ------------------------------- 1999 1998 ------------ ------------ Cash flows from operating activities: Net income (loss) $(10,826,976) $ 695,566 Adjustments to reconcile net loss to net cash used by operating activities: Depreciation and amortization 83,097 401,769 Stock option and warrant expense 1,067,766 -- Gain on sales of subsidiaries (240,196) (7,009,305) Gain on sale of real estate -- (434,454) Extraordinary loss on early extinguishment of debt -- 325,120 Minority interest in net loss of subsidiary (3,897) (147,846) Net change in assets and liabilities 605,256 1,283,758 ------------ ------------ Total adjustments 1,512,026 (5,580,958) ------------ ------------ Net cash used by operating activities (9,314,950) (4,885,392) Cash flows from investing activities: Decrease in short-term investments 6,417,066 -- Decrease in long-term investments -- 5,326,647 Capital expenditures, net (886,100) (29,071) Net proceeds from sale of subsidiaries 240,196 4,358,985 Net proceeds from sale of real estate -- 4,258,747 ------------ ------------ Net cash provided by investing activities 5,771,162 13,915,308 Cash flows from financing activities: Net proceeds from issuance of common stock 54,788 96,917 Purchase of treasury stock (9,000) -- Redemption of convertible debt -- (1,650,000) ------------ ------------ Net cash provided (used) by financing activities 45,788 (1,553,083) ------------ ------------ Net increase (decrease) in cash and cash equivalents (3,498,000) 7,476,833 Cash and cash equivalents at beginning of period 8,855,375 5,895,008 ------------ ------------ Cash and cash equivalents at end of period $ 5,357,375 $ 13,371,841 ============ ============
See accompanying notes. 5 6 CYTRX CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS September 30, 1999 (Unaudited) 1. Description of Company and Basis of Presentation CytRx Corporation ("CytRx" or "the Company") is a biopharmaceutical company focused on the development and commercialization of high-value human therapeutics. The Company's lead product is FLOCOR(TM), now in pivotal Phase III clinical trials for the treatment of acute sickle cell crisis. CytRx also plans to expand development of FLOCOR(TM) for acute respiratory disorders and for other vascular disorders such as shock and stroke. CytRx is also currently engaged in research in the areas of infectious disease, gene and drug delivery, and animal feed additives. The accompanying condensed consolidated financial statements at September 30, 1999 and for the three month and nine month periods ended September 30, 1999 and 1998 include the accounts of CytRx together with those of its subsidiaries and are unaudited, but include all adjustments, consisting of normal recurring entries, which the Company's management believes to be necessary for a fair presentation of the periods presented. Interim results are not necessarily indicative of results for a full year. The financial statements should be read in conjunction with the Company's audited financial statements in its Form 10-K for the year ended December 31, 1998. Certain prior year amounts have been reclassified to conform to the 1999 financial statement presentation. The operations of Proceutics, Inc. ("Proceutics"), CytRx Animal Health, Inc. ("CytRx Animal Health") (formerly VetLife, Inc.), and Vaxcel, Inc. ("Vaxcel") are presented as discontinued operations for all periods presented. 2. Sale of Vaxcel On June 2, 1999, CytRx entered into a Stock Acquisition Agreement with A-Z Professional Consultants, Inc. ("A-Z") for the sale of CytRx's equity interest in Vaxcel. The sale was consummated on September 9, 1999. Pursuant to the agreement, A-Z purchased 9,625,000 shares of common stock of Vaxcel from CytRx for a cash purchase price of $318,626. After consummation of this transaction, CytRx has no further equity interest in Vaxcel. Net income (loss) associated with Vaxcel included in income (loss) from discontinued operations was $210,000 and $(36,000) for the three month and nine month periods ended September 30, 1998, as compared to $(223,000) and $(1,035,000) for 1998. A gain related to the sale of $240,000 is included in income (loss) from discontinued operations for the three month period ended September 30, 1999. A 6 7 summary of the assets and liabilities of Vaxcel which are included in the consolidated balance sheet at December 31, 1998 are as follows (in thousands): Current assets $ 14 Property and equipment, net 6 Other assets 956 ------ Total assets $ 976 Total liabilities $ 618
Termination of Optivax(R) License by CytRx -- In July 1999, CytRx terminated its license of Optivax(R) to Vaxcel due to Vaxcel's cessation of operations within the meaning of the license agreement. Concurrently with the termination of the Optivax(R) license, all of Vaxcel's rights and obligations pursuant to its license of the Optivax(R) technology to Corixa Corporation were assigned to CytRx. Sale of Technology by Vaxcel -- In January 1999, Vaxcel entered into an agreement with Innovax Corporation ("Innovax") giving Innovax the option to purchase the rights to Vaxcel's PLG microencapsulation technology for an aggregate purchase price of $600,000. Innovax paid a nonrefundable option fee of $200,000, with an additional $400,000 due upon the exercise of the option. Innovax also paid a total of $20,000 for extensions of the option period. On April 1, 1999 Innovax exercised its option and the rights to such technology were assigned by Vaxcel to Innovax. The Company recorded this transaction in the second quarter of 1999 as a sale of its Acquired Developed Technology, valued at $600,000, and therefore did not record a gain or loss on the transaction. The $20,000 in option extension fees paid by Innovax is included in the discontinued operations of Vaxcel in the accompanying Statement of Operations. The $400,000 due upon exercise of the option was paid on April 1, 1999. 3. Segment Reporting
Continuing Operations Discontinued Operations ------------------------------------------------ -------------------------------------------------- Total Cattle Total Research Recruiting Product Continuing Marketing Pharmaceutical Vaccine Discontinued (in thousands) Products Services Development Operations Operations Services Development Operations - -------------------------------------------------------------------------------- -------------------------------------------------- Three Months Ended September 30, 1999: Sales to external customers $ 98 $ 76 $ -- $ 174 $ -- $ -- $ -- $ -- Segment profit (loss) 43 7 (5,146) (5,096) -- -- 210 210 Total assets -- -- 6,616 6,616 -- -- -- -- Three Months Ended September 30, 1998: Sales to external customers 129 92 -- 221 -- -- -- -- Segment profit (loss) 55 35 (1,854) (1,764) (15) 24 (223) (214) Total assets -- -- 17,848 17,848 -- -- 4,320 4,320 Nine Months Ended September 30, 1999: Sales to external customers 363 240 -- 603 -- -- -- -- Segment profit (loss) 201 52 (11,044) (10,791) -- -- (36) (36) Total assets -- -- 6,616 6,616 -- -- -- -- Nine Months Ended September 30, 1998: Sales to external customers 373 321 -- 694 4,383 407 -- 4,790 Intersegment sales -- -- -- -- -- 143 -- 143 Segment profit (loss) 190 126 (5,315) (4,999) 5,668 1,387 (1,035) 6,020 Total assets -- -- 17,848 17,848 -- -- 4,320 4,320
7 8 4. Purchase Commitments At September 30, 1999, the Company had outstanding firm purchase commitments of approximately $650,000 related to the design and construction of manufacturing equipment for commercial production of FLOCOR(TM). Item 2. -- Management's Discussion and Analysis of Financial Condition And Results of Operations This Quarterly Report on Form 10-Q includes forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those discussed herein due to a number of factors, including, among other things, the research, development, and market risks which could adversely affect the Company's timeline for clinical trials, regulatory approval, and time to market thereafter. The Company undertakes no obligation to revise any forward-looking statements in order to reflect events or circumstances that may arise after the date of this report. Liquidity and Capital Resources At September 30, 1999 the Company had cash and cash equivalents and short-term investments of $5.4 million and net assets of $5.0 million, compared to $15.3 million and $14.7 million, respectively, at December 31, 1998. Working capital totaled $3.9 million at September 30, 1999, compared to $13.7 million at December 31, 1998. The Company's operations have and will continue to use substantial amounts of cash. The Company's future expenditures and capital requirements depend on numerous factors including the progress and focus of its research and development programs, the progress and results of pre-clinical and clinical testing, the time and costs involved in obtaining regulatory approvals, the costs of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights, competing technological and market developments, the ability of the Company to establish collaborative arrangements, the initiation of commercialization activities, the purchase of capital equipment and the availability of other financing. The Company will require additional funds to finance operations and is currently seeking private or public equity investments and future collaborative arrangements with third parties to meet such needs. The Company's ability to obtain future financings through joint ventures, product licensing arrangements, equity financings or otherwise is subject to market conditions and the Company's ability to identify parties that are willing and able to enter into such arrangements on terms that are satisfactory to the Company. There is no assurance that such funding will be available for the Company to finance its operations on acceptable terms, if at all. Insufficient funding may require the Company to delay, reduce or eliminate some or all of its research and development activities, planned clinical trials and 8 9 administrative programs. The Company believes that cash and cash equivalents on hand, combined with interest income, operating revenues and proceeds from government-supported research activities, will be sufficient to satisfy the Company's projected liquidity and working capital needs into the first quarter of 2000. Results of Operations The Company recorded net losses of $4,886,000 and $1,978,000 for the three month periods ended September 31, 1999 and 1998, respectively. For the nine month periods ended September 30, 1999 and 1998, the Company recorded a net loss of $10,827,000 and net income of $696,000, respectively. Losses from continuing operations before extraordinary item were $5,096,000 and $10,791,000 for the three and nine month periods ended September 30, 1999 as compared to losses of $1,764,000 and $4,999,000 in 1998. Net sales from continuing operations, which consist primarily of sales of TiterMax(R) research adjuvant and service revenues from Spectrum Recruitment Research, were $174,000 and $603,000 during the three and nine month periods ended September 30, 1999, as compared to $221,000 and $694,000 in 1998, respectively. Cost of product sales and service revenues was $68,000 and $197,000 during the three month and nine month periods of 1999, versus $72,000 and $183,000 during 1998. Interest income from continuing operations was $96,000 and $322,000 during the three months ended September 30, 1999 and 1998, respectively, and $407,000 and $745,000 during the nine month periods then ended. The variance between years generally corresponds to fluctuating cash and investment balances. Grant income from continuing operations was $150,000 and $55,000 during the three months ended September 30, 1999 and 1998, respectively, and $404,000 and $407,000 during the nine month periods then ended. During 1998 and 1999, the Company received federal government funding for certain research and development activities via Small Business Innovative Research (SBIR) grants. Additionally, in 1998 the Company received a grant from the U.S. Food and Drug Administration's Division of Orphan Drug Development to support CytRx's Phase III clinical trial of FLOCOR(TM). This grant provided approximately $445,000 over two years to help defray the overall costs of the study, all of which has been received. The Company currently has two active SBIR grants in support of other research activities, with funding commitments totalling $612,000, of which $158,000 has been received as of September 30, 1999. Other income from continuing operations was $30,000 and $126,000 during the three months ended September 30, 1999 and 1998, respectively, and $118,000 and $269,000 during the nine month periods then ended. Other income includes administrative and facilities costs allocated by CytRx to its discontinued subsidiaries. The related costs are included in selling, general and administrative expenses. The decrease from 1998 to 1999 is primarily reflective of the discontinuance of the Proceutics and CytRx Animal Health operations. Research and development expenditures from continuing operations were $4,541,000 and $1,763,000 during the three months ended September 30, 1999 and 1998, and $9,334,000 and $5,000,000 9 10 for the nine month periods then ended. Research and development expenditures have increased primarily as a result of the Company's clinical development activities for FLOCOR(TM). The Company's pivotal Phase III trial of FLOCOR for treatment of acute sickle cell crisis, which was initiated in March 1998, completed patient enrollment in October 1999. During 1999 the Company also continued its Phase I trial of FLOCOR for treatment of Acute Chest Syndrome in sickle cell patients and initiated two additional clinical trials of FLOCOR - a Phase III study investigated repeat use of FLOCOR in patients with acute sickle cell crisis and a Phase I/II study for treatment of Acute Lung Injury. Selling, general and administrative expense from continuing operations were $936,000 and $653,000 during the three months ended September 30, 1999 and 1998, and $2,792,000 and $1,931,000 for the nine month periods then ended. Overall selling, general and administrative expenses have decreased as a result of the Company's divestiture of its subsidiary operations. During 1998, the Company granted options and warrants to certain employees which contain vesting criteria based on stock price performance. The Company has also granted options and warrants to purchase its common stock to certain consultants in exchange for consulting services. During 1999, certain vesting criteria of these options and warrants were achieved, resulting in aggregate non-cash charges to selling, general and administrative expense of $307,000 and $1,068,000 for the three month and nine month periods, respectively. Net income (loss) from discontinued operations, net of minority interest, was $210,000 and $(214,000) during the three months ended September 30, 1999 and 1998, and $(36,000) and $6,020,000 for the nine month periods then ended. The operations of Proceutics and CytRx Animal Health were sold during 1998 and Vaxcel was sold during the quarter ended September 30, 1999 (see Note 2 to Financial Statements), thus the results of their operations have been presented as discontinued operations. The following table presents the breakdown of income (loss) from discontinued operations (in thousands):
Three Months Ended Nine Months Ended September 30, September 30, ------------------- ------------------ 1999 1998 1999 1998 -------- ------- ------- ------- Vaxcel, net of minority interest $ 210 $ (223) $ (36) $(1,035) Proceutics -- 24 -- 1,387 CytRx Animal Health -- (15) -- 5,668 -------- ------- ------- ------- Income (loss) from discontinued operations $ 210 $ (214) $ (36) $ 6,020 ======== ======= ======= =======
Year 2000 Issue The term "Year 2000 issue" is a general term used to describe the various problems that may result from the improper processing of dates and date-sensitive calculations by computers and other machinery as the year 2000 is approached and reached. These problems generally arise from the fact that most of the world's computer hardware and software have historically used only two digits to identify the year in a date, often meaning that the computer will fail to distinguish dates in the "2000's" from dates in the "1900's." These problems may also arise from other sources as well, such as the use of special codes and conventions in software that make use of the date field. 10 11 During 1999, the Company completed the remediation phase of its Year 2000 Plan with respect to its mission critical internal computer systems. Total costs incurred to date are less than $10,000. There have been no other significant changes in the Company's state of readiness or contingency plans from that disclosed in its Annual Report on Form 10-K for the year ended December 31, 1998. Item 3. -- Quantitative and Qualitative Disclosures About Market Risk There have been no changes in the Company's assessment of its market risk from that disclosed in its Form 10-K for the year ended December 31, 1998. PART II -- OTHER INFORMATION Item 6. -- Exhibits and Reports on Form 8-K (a) Exhibits
Exhibit Number Description ------ ----------- 27.1 Financial Data Schedule (for SEC use only) 27.2 Financial Data Schedule (Restated 1998) (for SEC use only)
(b) Reports on Form 8-K None. 11 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. CYTRX CORPORATION (Registrant) Date: November 12, 1999 By: /s/ Mark W. Reynolds -------------------------------- -------------------------------- Mark W. Reynolds Chief Financial Officer (Chief Accounting Officer and a duly authorized officer) 12 EX-27.1 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM 10-Q OF CYTRX CORPORATION FOR THE PERIOD ENDED SEPTEMBER 30, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1999 JAN-01-1999 SEP-30-1999 5,357,375 0 236,439 0 6,476 5,697,311 1,540,275 542,242 6,766,322 1,791,196 0 0 0 8,270 4,966,856 6,766,322 602,616 1,532,176 197,291 197,291 12,126,223 0 0 (10,791,338) 0 (10,791,338) (35,638) 0 0 (10,826,976) (1.42) (1.42)
EX-27.2 3 RESTATED FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FORM 10-Q OF CYTRX CORPORATION FOR THE PERIOD ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS DEC-31-1998 JAN-01-1998 SEP-30-1998 13,371,841 0 4,469,589 0 8,973 17,877,912 905,304 664,761 22,168,404 1,152,433 0 0 0 8,226 20,537,109 22,168,404 694,053 2,114,928 183,394 183,394 6,930,989 0 0 (4,999,455) 0 (4,999,455) 6,020,141 (325,120) 0 695,566 .09 .09
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