-----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, Bv/gwV6E23j4mbErIOyEHjHlVunFBWfgIr+I8KDPd9gYXBgDtDdwsgttTxW8Ebf4 Yth7fA8kpX+Bi106X5ZVpA== 0000950135-97-004582.txt : 19971117 0000950135-97-004582.hdr.sgml : 19971117 ACCESSION NUMBER: 0000950135-97-004582 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: VIRUS RESEARCH INSTITUTE INC CENTRAL INDEX KEY: 0000902010 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] IRS NUMBER: 223098869 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-20711 FILM NUMBER: 97718414 BUSINESS ADDRESS: STREET 1: 61 MOULTON ST CITY: CAMBRIDGE STATE: MA ZIP: 02139 BUSINESS PHONE: 6178646232 MAIL ADDRESS: STREET 1: 61 MOULTON ST CITY: CAMBRIDGE STATE: MA ZIP: 02138 10-Q 1 VIRUS RESEARCH INSTITIUTE, INC. 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 1997 --------------------------------------------------------------------------- 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 0-20711 - -------------------------------------------------------------------------------- VIRUS RESEARCH INSTITUTE, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 22-3098869 - -------------------------------------------------------------------------------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 61 Moulton Street, Cambridge, MA 02138 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) (617) 864-6232 - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable - -------------------------------------------------------------------------------- (Former name, address and fiscal year, if changed since last report) 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. (X) Yes ( ) No As of October 31, 1997, there were 8,928,089 shares of Common Stock outstanding. 2 VIRUS RESEARCH INSTITUTE, INC. INDEX PART I - FINANCIAL INFORMATION Page Item 1. Financial Statements: Balance Sheets as of September 30, 1997 and December 31, 1996..............................................3 Statements of Operations for the Three Months Ended September 30, 1997 and 1996, for the Nine Months Ended September 30, 1997 and 1996, and for the Period from Inception through September 30, 1997...........4 Statements of Cash Flows for the Nine Months Ended September 30, 1997 and 1996, and for the period from Inception through September 30, 1997...........5 Notes to Financial Statements ..................................6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations..............................7 PART II - OTHER INFORMATION Item 1. Legal Proceedings..............................................13 Item 2. Changes in Securities..........................................13 Item 3. Defaults upon Senior Securities................................13 Item 4. Submission of Matters to a Vote of Security Holders............13 Item 5. Other Information..............................................13 Item 6. Exhibits and Reports on Form 8-K...............................13 SIGNATURES .................................................................14 (2) 3 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS VIRUS RESEARCH INSTITUTE, INC. (A DEVELOPMENT STAGE COMPANY) BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31, 1997 1996 ------------- ------------ Current assets: Cash and cash equivalents $ 1,962,727 $ 15,209,180 Marketable securities 18,427,148 10,339,985 Interest receivable 322,709 218,285 Prepaid expenses 333,117 220,534 Other current assets 343,493 659 ------------ ------------ Total current assets 21,389,194 25,988,643 Noncurrent assets: Marketable securities 0 499,891 Leasehold improvements and equipment (net of accumulated depreciation and amortization of $2,327,560 at September 30, 1997 and $2,015,483 at December 31, 1996) 779,767 881,363 Other assets 44,803 67,634 ------------ ------------ Total noncurrent assets 824,570 1,448,888 ------------ ------------ Total assets $ 22,213,764 $ 27,437,531 ============ ============ Current liabilities: Accounts payable $ 94,765 $ 43,809 Accrued consulting and research fees 666,238 810,677 Other accrued expenses 676,440 412,759 Deferred revenue 79,445 0 Current portion of lease obligation payable 103,151 155,079 ------------ ------------ Total current liabilities 1,620,039 1,422,324 Lease obligation payable, less current portion 7,493 64,351 Stockholders' equity: Preferred stock -- $.001 par value; 5,000,000 shares authorized, none issued Common stock -- $.001 par value; 30,000,000 shares authorized; 8,914,327 shares issued at September 30, 1997 and 8,845,027 shares issued at December 31, 1996 8,914 8,845 Additional paid-in capital 51,929,819 51,907,179 Deficit accumulated during the development stage (31,352,501) (25,965,168) ------------ ------------ Total stockholders' equity 20,586,232 25,950,856 ------------ ------------ Total liabilities and stockholders' equity $ 22,213,764 $ 27,437,531 ============ ============
SEE NOTES TO FINANCIAL STATEMENTS (3) 4 VIRUS RESEARCH INSTITUTE, INC. (A DEVELOPMENT STAGE COMPANY) STATEMENT OF OPERATIONS
THREE MONTHS ENDED NINE MONTHS ENDED CUMULATIVE SEPTEMBER 30, SEPTEMBER 30, SINCE INCEPTION 1997 1996 1997 1996 (1991) - -------------------------------------------------------------------------------------------------------------------- REVENUE: Licensing and option revenue $ 2,222 $2,000,000 $ 252,222 $4,520,000 $ 6,242,222 Research and development revenue 150,000 312,500 924,982 1,150,000 3,490,180 Interest income 334,484 373,548 1,007,080 485,440 2,231,612 ----------- ---------- ----------- ---------- ------------ TOTAL REVENUE 486,706 2,686,048 2,184,284 6,155,440 11,964,014 EXPENSES: Research and development 1,947,510 1,322,673 5,320,071 3,956,307 29,329,551 General and administrative 541,617 781,530 1,888,468 1,698,006 10,852,827 Depreciation 83,330 174,390 312,077 518,052 2,429,908 Interest expense 16,006 16,271 51,001 139,389 704,229 ----------- ---------- ----------- ---------- ------------ TOTAL EXPENSES 2,588,463 2,294,864 7,571,617 6,311,754 43,316,515 ----------- ---------- ----------- ---------- ------------ NET INCOME (LOSS) $(2,101,757) $ 391,184 $(5,387,333) $ (156,314) $(31,352,501) =========== ========== =========== ========== ============ Net income (loss) per share $ (0.24) $ 0.04 $ (0.61) $ (0.02) =========== ========== =========== ========== Weighted average common shares outstanding 8,908,229 9,539,457 8,887,840 7,237,833
SEE NOTES TO FINANCIAL STATEMENTS (4) 5 VIRUS RESEARCH INSTITUTE, INC. (A DEVELOPMENT STAGE COMPANY) STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED CUMULATIVE SEPTEMBER 30, SINCE INCEPTION 1997 1996 (1991) ------------------------------------------------- Cash flows from operating activities: Net loss $ (5,387,333) $ (156,314) $(31,352,501) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 318,070 542,803 2,478,435 Conversion of accrued interest to preferred stock 0 46,026 58,373 Changes in operating assets and liabilities: Increase in prepaid expenses and other assets (537,009) (210,084) (920,994) Increase in accounts payable and accrued expenses 170,199 127,566 1,437,443 Increase in deferred revenue 79,445 312,500 79,445 ------------ ------------ ------------ Net cash provided by (used in) operating activities (5,356,628) 662,497 (28,219,799) Cash flows from investing activities: Purchases of marketable securities, net (7,587,272) (10,733,808) (18,427,148) Capital expenditures (210,481) (326,346) (3,124,773) Other 0 0 (46,182) ------------ ------------ ------------ Net cash used in investing activities (7,797,753) (11,060,154) (21,598,103) Cash flows from financing activities: Proceeds from notes payable 0 0 7,973,668 Sale and leaseback related to capital acquisitions 0 0 751,311 Principal payments on lease obligations (114,780) (138,171) (798,975) Sale of common stock 22,708 27,618,385 27,712,567 Sale of preferred stock 0 1,500,140 19,258,613 Offering costs 0 (2,869,533) (3,112,941) Founders' shares reacquired 0 0 (846) Purchase of treasury stock 0 0 (2,768) ------------ ------------ ------------ Net cash provided by (used in) financing activities (92,072) 26,110,821 51,780,629 Net increase (decrease) in cash and cash equivalents (13,246,453) 15,713,164 1,962,727 Cash and cash equivalents, beginning of period 15,209,180 1,180,176 0 Cash and cash equivalents, end of period $ 1,962,727 $ 16,893,340 $ 1,962,727 ============ ============ ============ Supplemental disclosure of cash flow information: Interest paid during the period $ 22,170 $ 42,007 $ 252,833
SEE NOTES TO FINANCIAL STATEMENTS (5) 6 VIRUS RESEARCH INSTITUTE, INC. NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1997 (1) FINANCIAL STATEMENT PRESENTATION The unaudited financial statements of Virus Research Institute, Inc. (the "Company") herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (SEC) and, in the opinion of management, reflect all adjustments (consisting of normal recurring accruals) necessary to present fairly the results of operations for the interim periods presented. Certain information and footnote disclosure normally included in financial statements prepared in accordance with generally accepted accounting principals have been condensed or omitted pursuant to such rules and regulations; however, management believes that the disclosures are adequate to make the information presented not misleading. These financial statements and the notes thereto should be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 1996. The results for the interim period presented are not necessarily indicative of the results for the full fiscal year. (2) NET INCOME (LOSS) PER COMMON SHARE The net income (loss) per common share and shares used in computing net income (loss) per common share for the nine months ended September 30, 1996 are presented on a pro forma basis and are based on the weighted average number of common shares outstanding during the period presented and reflect the automatic conversion of all preferred stock then outstanding into common stock. (6) 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion of the financial condition and results of operations of the Company for the three and nine months ended September 30, 1997 and 1996 should be read in conjunction with the accompanying unaudited financial statements and the related notes thereto. This report may contain certain forward looking statements which involve risks and uncertainties. Such statements are made in reliance upon safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to certain factors which may cause the Company's plans and results to differ significantly from the plans and results discussed in forward looking statements. Factors that may cause such differences include, but are not limited to; the ability of the Company's contractors to enroll infants in the Phase II rotavirus clinical trial to meet current schedules; (ii) the scope and results of preclinical and clinical testing, including the further review of the Phase I and Phase II Adjumer(TM)-formulated influenza vaccine results and further clinical or preclinical testing after evaluation of the results; (iii) progress of the Company's research and development programs, including further development of the Adjumer(TM) delivery system; (iv) changes in existing and potential relationships with corporate collaborators; (v) the Company's ability to compete successfully with larger companies; (vi) risks of failure inherent in product development based on new technologies and novel delivery systems; (vii) the Company's ability to attract and retain qualified personnel; (viii) the time and costs of obtaining regulatory approvals, patents, proprietary rights and licenses; (ix) the costs of manufacturing; and (x) the Company's ability to obtain additional funds. OVERVIEW Virus Research Institute, Inc. (the "Company") is engaged in the discovery and development of vaccine delivery systems and improved and novel vaccines for adults and children. The Company is developing a portfolio of proprietary vaccine delivery systems designed to improve the efficacy, lower the cost of administration and improve patient compliance for a variety of vaccine products. The Company and its collaborators currently are applying the Company's vaccine delivery systems to develop vaccines for the prevention of influenza, Lyme disease, and H. pylori infections. The Company has entered into long-term collaboration agreements with Pasteur Merieux Connaught (PMC), Pasteur Merieux-OraVax (PM-O) and CSL, Ltd. pursuant to which they may utilize the Company's vaccine delivery systems in developing a number of vaccines. The Company is also developing its own proprietary vaccines utilizing antigens licensed exclusively by the Company. These vaccines include an oral vaccine for rotavirus disease, which is a gastrointestinal disease of infants, and a vaccine for the virus causing genital herpes, HSV2. (7) 8 The Company is in the development stage and has devoted substantially all of its resources to the research and development of its vaccine delivery systems and vaccine candidates and general and administrative expenses. Through September 30, 1997, the Company has not generated any revenue from product sales, but has received an aggregate of $11,964,000 in revenues from licensing and option agreements, research and development agreements and grants, and interest income. There can be no assurance that the Company will receive such revenue in the future. The Company has realized losses in every year since inception, principally as a result of expenditures incurred in its research and development programs. The Company expects to continue to incur significant operating losses over the next several years due primarily to expanded research and development efforts, preclinical and clinical testing of its product candidates, investment in new technologies, investment in production capabilities for certain product candidates and expenditures for commercialization activities. The Company's results of operations may vary significantly from quarter to quarter and year to year due to the timing of license and milestone payments, development expenditures and other factors. NEW DEVELOPMENTS Preliminary results from the Company's Phase I/II clinical trial of its rotavirus vaccine candidate became available during the first quarter of 1997. The clinical trial was a double-blinded, placebo controlled study designed to define the optimal vaccine dose and optimal age for immunization. The results demonstrated that the vaccine was generally well tolerated in younger infants and elicited broad immune responses in all infants. Based on these findings and the results of an earlier Phase I study, the Company initiated a Phase II efficacy study during the second quarter of 1997. This trial is designed to examine the vaccine's ability to prevent rotavirus disease and to further study the safety of the vaccine. Approximately 240 infants will be enrolled in the trial which is being conducted at four U.S. medical centers. Results from the study are expected to be available during 1998. The Company cautions investors that the presence of statistically significant results in one clinical trial does not ensure that these results will be repeated in any subsequent trials. (8) 9 Based on the results of a Phase I clinical trial, the Company's collaborator, PMC, initiated a Phase II safety and immunogenicity clinical trial of an Adjumer(TM)-formulated influenza vaccine earlier in 1997. Preliminary results of the Phase II clinical trial, which was conducted in Peru by PMC, show that the Adjumer(TM)-formulated influenza vaccine was well tolerated. However, results of the Phase II study appear to be inconsistent in certain respects with Phase I results. The degree of improvement in immune responses elicited by the Adjumer(TM) influenza vaccine was less in comparison to the control group than was elicited in the Phase I study. At the same time, certain control group results also appear to be significantly higher in Phase II than in Phase I. A total of 430 elderly adults participating in the initial Phase II study conducted in Peru were given single injections of either the vaccine formulated with Adjumer(TM) or the same vaccine without Adjumer(TM). A total of 48 young and 41 elderly adults participated in the earlier Phase I study conducted in France. The Company and PMC are currently analyzing and assessing the results to determine the appropriate next steps to take with the clinical development of the product. The Adjumer(TM) research and development program with PMC, which encompasses a number of additional vaccine products, continues. RESULTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996 Total revenue declined by $2,199,000 to $487,000 for the three months ended September 30, 1997 from $2,686,000 for the same period in 1996. Licensing and option revenue in 1996 consisted of $2,000,000 for the achievement of milestones pursuant to an agreement with PMC. During the three months ended September 30, 1997, the Company's licensing and option revenue totaled $2,000. Research and development revenue declined $162,000 to $150,000 for the quarter ended September 30, 1997 from $312,000 for the same period in 1996. The decrease is attributable to the completion, at the end of the second quarter of 1997, of a support agreement with PMC. This decline was partially offset by revenue earned in the quarter ended September 30, 1997 from agreements with CSL and Chiron. Interest income declined by $39,000 to $335,000 for the three months ended September 30, 1997 from $374,000 for the 1996 quarter. The Company's cash, cash equivalents and marketable securities balance has declined during subsequent quarters, resulting in a reduction in interest income for the quarter ended September 30, 1997. Total expenses increased $294,000 to $2,589,000 for the three months ended September 30, 1997 from $2,295,000 for the same period in 1996. The increase is attributable to a $625,000 increase in research and development expenditures from $1,323,000 for the three months ended September 30, 1996 to $1,948,000 for the 1997 period principally due to an increase in (9) 10 costs associated with the polyphosphazene manufacturing process and an increase in rotavirus clinical trial costs. General and administrative costs declined by $240,000 from $782,000 in 1996 to $542,000 in 1997 primarily due to a reduction in foreign withholding taxes associated with milestone payments from PMC and reduced patent expenses. Depreciation expense declined $91,000 to $83,000 for the second quarter of 1997 from $174,000 in 1996 due to various leasehold improvements being fully depreciated. Interest expense remained constant at $16,000 for the quarters ended September 30, 1996 and 1997. NINE MONTHS ENDED SEPTEMBER 30, 1997 AND SEPTEMBER 30, 1996 The Company's total revenue decreased $3,971,000 from $6,155,000 for the nine months ended September 30, 1996 to $2,184,000 for the 1997 year to date period. Licensing and option revenue declined by $4,268,000 from $4,520,000 in 1996 to $252,000 in 1997. This decrease is the result of a reduction in milestone payments pursuant to an agreement with PMC. Research and development revenue declined by $225,000, from $1,150,000 for the nine months ended September 30, 1996 to $925,000 for the 1997 period. The decrease is primarily attributable to the completion, in 1997, of a support agreement with PMC, partially offset by revenue earned from an agreement with Chiron. Interest income increased by $522,000 to $1,007,000 for the nine months ended September 30, 1997 from $485,000 for the 1996 period due to interest earned from the proceeds of the Company's initial public offering in June 1996. Total expenses for the nine months ended September 30, 1997 increased by $1,260,000 to $7,571,000 in 1997 from $6,311,000 in 1996. Research and development expenses increased $1,364,000 to $5,320,000 for the nine months ended September 30, 1997 from $3,956,000 in the prior year due primarily to an increase in costs associated with the polyphosphazene manufacturing process and the rotavirus clinical trial studies. General and administrative expenses increased by $190,000 to $1,888,000 for the 1997 period from $1,698,000 in 1996. The increase is principally attributable to higher corporate investor relations and company wide benefits costs, partially offset by a reduction in foreign withholding taxes associated with milestone payments from PMC. (10) 11 Depreciation expense declined $206,000 to $312,000 for the nine months ended September 30, 1997 from $518,000 for the prior year period due principally to the full depreciation of various leasehold improvements. Interest expense declined by $88,000 to $51,000 in 1997 from $139,000 in 1996 due to reduced interest costs associated with certain short term loans entered into in 1995 and 1996. These short term loans were converted into common stock upon the completion of the Company's initial public offering. LIQUIDITY AND CAPITAL RESOURCES From inception (February 11, 1991) through September 30, 1997, the Company's cash expenditures have exceeded revenues. The Company's operations have been funded principally through the sale of equity, loans from stockholders, equipment lease financing and payments under licensing, option and research and development agreements. Net cash used by the Company's operations since inception through September 30, 1997 was $28,220,000, primarily to fund research and development activities and general and administrative expenses. Since inception the Company has incurred $3,125,000 in capital expenditures, primarily for leasehold improvements and equipment for the Company's laboratories. During the nine months ended September 30, 1997 the Company has incurred $210,000 in capital expenditures principally for equipment necessary for the scale up of polyphosphazene manufacturing. The Company currently anticipates incurring approximately $300,000 in capital expenditures during 1997, primarily on equipment related to polyphosphazene manufacturing. From inception through September 30, 1997, the Company raised net proceeds of approximately $51,828,000 through the sale of equity securities. Included in this amount are net proceeds of $24,743,000 from the Company's initial public offering in 1996 and the conversion to common stock of an aggregate of $7,974,000 in notes payable to certain stockholders. (11) 12 The Company expects to incur substantial additional costs, including those related to research and development activities, preclinical studies, clinical trials, obtaining regulatory approvals, process scale up and manufacture, and investment in its facilities. The Company anticipates that its existing funds, which include the proceeds from its initial public offering and interest earned thereon, should be sufficient to fund its operating and capital requirements as currently planned through the end of 1998. However, the Company's cash requirements may vary materially from those now planned, due to many factors, including, but not limited to, the progress of the Company's research and development programs, the scope and results of preclinical and clinical testing, changes in existing and potential relationships with corporate collaborators, the time and cost in obtaining regulatory approvals, the costs involved in obtaining and enforcing patents, proprietary rights and any necessary licenses, the ability of the Company to establish development and commercialization capacities or relationships, the costs of manufacturing and other factors. In the future, the Company may need to raise substantial additional funds through additional financing, including public or private equity offerings and collaborations with corporate partners. There can be no assurance that funds will be available on terms acceptable to the Company, if at all. If adequate funds are not available, the Company may be required to delay, scale back, or eliminate certain of its product development programs or to license to others the right to commercialize products or technologies the Company would otherwise seek to develop and commercialize itself, any of which could have a material adverse effect on the Company. (12) 13 PART II - OTHER INFORMATION Item 1. Legal Proceedings None Item 2. Changes in Securities Not applicable Item 3. Defaults Upon Senior Securities Not applicable Item 4. Submission of Matters to a Vote of Security Holders Not applicable Item 5. Other Information Not applicable Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: 11.1 Statement regarding computation of earnings per share 27.1 Financial Data Schedule (b) No reports on Form 8-K were filed by the Company during the quarter ended September 30, 1997. (13) 14 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. Dated: November 14, 1997 VIRUS RESEARCH INSTITUTE, INC. a Delaware Corporation (Registrant) By: /S/ J. Barrie Ward - ---------------------------------------------------------------------- J. Barrie Ward Chief Executive Officer By: /S/ William A. Packer - ---------------------------------------------------------------------- William A. Packer President, Chief Financial Officer (14) EX-11.1 2 COMPUTATION OF EARNINGS PER SHARE 1 ITEM 6 EXHIBIT 11.1 STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE VIRUS RESEARCH INSTITUTE, INC. (A DEVELOPMENT STAGE COMPANY) COMPUTATION OF NET INCOME (LOSS) PER COMMON SHARE
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 1997 1996 1997 1996 ------------------------------------------------------------- Net income (loss) $(2,101,757) $ 391,184 $(5,387,333) $ (156,314) Shares used in computing net income (loss) per common share: Weighted average common stock outstanding during the period (1) 8,908,229 8,810,526 8,887,840 7,237,833 Common stock equivalents (2) N/A 728,931 N/A N/A ----------- ---------- ----------- ---------- Weighted average common shares outstanding 8,908,229 9,539,457 8,887,840 7,237,833 Net income (loss) per common share $ (0.24) $ 0.04 $ (0.61) $ (0.02) =========== ========== =========== ==========
(1) Effective with the closing of the Company's initial public offering of common stock, redeemable convertible preferred stock converted into shares of common stock. Accordingly, the equivalent number of weighted average common shares that would have been outstanding during the nine months ended September 30, 1996 have been included as outstanding. (2) No common stock equivalents have been included in the three and nine months ended September 30, 1997 and the nine months ended September 30, 1996 as their effect would be antidilutive. EX-27.1 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM VIRUS RESEARCH INSTITUTE 1997 THIRD QUARTER 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERNCE TO SUCH ANNUAL REPORT ON FORM 10-K 12/31/96 U.S. DOLLARS 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 1 1,962,727 18,427,148 0 0 0 21,389,194 3,107,327 (2,327,560) 22,213,764 1,620,039 0 0 0 8,914 20,577,318 22,213,764 0 2,184,284 0 0 7,571,617 0 0 (5,387,333) 0 (5,387,333) 0 0 0 (5,387,333) (0.61) (0.61)
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