-----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, KoM3vf04qPF7ZxXut4KoEsmp5E+4VQMzxLpprd3TN1jWOOeo1bj61vQrWkaZexdO kFwX7jzou9/S5jYw94NByA== 0000950135-98-003191.txt : 19980514 0000950135-98-003191.hdr.sgml : 19980514 ACCESSION NUMBER: 0000950135-98-003191 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980513 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: 98618156 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 INSTITUTE, 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 March 31, 1998 ----------------------------------------- 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 April 30, 1998, there were 8,999,854 shares of Common Stock outstanding. 2 VIRUS RESEARCH INSTITUTE, INC. INDEX PART I - FINANCIAL INFORMATION Page Item 1. Financial Statements: Balance Sheets as of March 31, 1998 and December 31, 1997........................................... 3 Statements of Operations for the Three Months Ended March 31, 1998 and 1997, and for the Period from Inception through March 31, 1998............... 4 Statements of Cash Flows for the Three Months Ended March 31, 1998 and 1997 and for the period from Inception through March 31, 1998............................ 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 VIRUS RESEARCH INSTITUTE, INC. (a development stage company) BALANCE SHEETS
March 31, December 31, 1998 1997 ------------ ------------ Current assets: Cash and cash equivalents $ 1,162,625 $ 2,488,963 Marketable securities 15,349,386 15,968,923 Contract receivable 1,000,000 1,000,000 Interest receivable 283,146 352,186 Prepaid expenses 322,421 273,224 Other current assets 81,163 42,616 ------------ ------------ Total current assets 18,198,741 20,125,912 Noncurrent assets: Leasehold improvements and equipment (net of accumulated depreciation and amortization of $2,508,530 at March 31, 1998 and $2,416,568 at December 31, 1997) 665,226 715,234 Other assets 29,583 37,193 ------------ ------------ Total noncurrent assets 694,809 752,427 ------------ ------------ Total assets $ 18,893,550 $ 20,878,339 ============ ============ Current liabilities: Accounts payable $ 172,337 $ 24,769 Accrued consulting and research fees 784,441 709,295 Accrued employee benefits 96,636 91,636 Accrued legal 195,120 192,453 Other accrued expenses 463,590 377,987 Current portion of lease obligation payable 32,325 72,352 ------------ ------------ Total current liabilities 1,744,449 1,468,492 Stockholders' equity: Preferred stock -- $.001 par value; 5,000,000 shares authorized, none issued -- -- Common stock -- $.001 par value; 30,000,000 shares authorized; 8,979,029 shares issued at March 31, 1998 and 8,928,314 shares issued at December 31, 1997 8,979 8,928 Additional paid-in capital 51,977,245 51,930,441 Deficit accumulated during the development stage (34,837,123) (32,529,522) ------------ ------------ Total stockholders' equity 17,149,101 19,409,847 ------------ ------------ Total liabilities and stockholders' equity $ 18,893,550 $ 20,878,339 ============ ============
See Notes to Financial Statements (3) 4 VIRUS RESEARCH INSTITUTE, INC. (a development stage company) STATEMENT OF OPERATIONS
Three months ended Cumulative March 31, Since 1998 1997 Inception ------------------------------------------------ Revenue: Licensing and option revenue $ 51,111 $ 0 $ 6,946,667 Research and development revenue 0 387,491 4,165,180 Interest income 263,975 332,780 2,787,364 ------------------------------------------------ Total revenue 315,086 720,271 13,899,211 Expenses: Research and development 1,853,839 1,700,476 33,420,374 General and administrative 663,649 712,018 11,972,646 Depreciation 91,963 130,607 2,610,879 Interest and other expense 13,235 17,985 732,434 ------------------------------------------------ Total expenses 2,622,686 2,561,086 48,736,333 ------------------------------------------------ Net Loss $(2,307,600) $(1,840,815) $(34,837,122) ================================================ Basic and diluted net loss per common share $ (0.26) $ (0.21) Shares used in computing basic and diluted net loss per common share 8,942,667 8,861,992
SEE NOTES TO FINANCIAL STATEMENTS (4) 5 VIRUS RESEARCH INSTITUTE, INC. (a development stage company) STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED CUMULATIVE MARCH 31, SINCE 1998 1997 INCEPTION ------------------------------------------------- Cash flows from operating activities: Net Loss $(2,307,600) $ (1,840,815) $(34,837,122) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 93,295 132,606 2,662,737 Conversion of accrued interest to preferred stock 0 0 58,373 Changes in operating assets and liabilities: Contract receivable 0 0 (1,000,000) Increase in prepaid expenses and other assets (11,094) (37,738) (593,187) Increase in accounts payable and accrued expenses 317,094 404,844 1,713,234 Increase in deferred revenue (1,111) 537,491 (1,111) ------------------------------------------------- Net cash (used in) operating activities (1,909,416) (803,612) (31,997,076) Cash flows from investing activities: Purchases of marketable securities, net 619,537 (1,800,291) (15,349,386) Capital expenditures (41,956) (87,303) (3,191,203) Other 0 0 (46,182) ------------------------------------------------- Net cash provided by (used in) investing activities 577,581 (1,887,594) (18,586,771) Cash flows from financing activities: Proceeds from notes payable 0 0 7,973,668 Sale & leaseback related to capital acquisitions 0 0 751,311 Principal payments on lease obligations (41,359) (37,275) (880,624) Sale of common stock 46,856 17,661 27,760,059 Sale of preferred stock 0 0 19,258,613 Offering costs 0 0 (3,112,941) Founder's shares reacquired 0 0 (846) Purchase of treasury stock 0 0 (2,768) ------------------------------------------------- Net cash provided by (used in) financing activities 5,497 (19,614) 51,746,472 Net increase (decrease) in cash (1,326,338) (2,710,820) 1,162,625 Cash and cash equivalents, beginning of period 2,488,963 15,209,180 0 ------------------------------------------------- Cash and cash equivalents, end of period $ 1,162,625 $ 12,498,360 $ 1,162,625 ================================================= Supplemental disclosure of cash flow information: Interest paid during the period $ 4,292 $ 8,375 $ 262,485
SEE NOTES TO FINANCIAL STATEMENTS (5) 6 VIRUS RESEARCH INSTITUTE, INC. NOTES TO FINANCIAL STATEMENTS MARCH 31, 1998 (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, 1997. The results for the interim period presented are not necessarily indicative of the results for the full fiscal year. (2) NET LOSS PER COMMON SHARE During 1997, the Company adopted Statement of Financial Accounting Standard No. 128, "Earnings per Share" requiring certain changes in the calculation of per share results. As the Company has reported net losses from operations in the years presented, the computation for basic and diluted earnings per share is identical. (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 months ended March 31, 1998 and 1997 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: (i) the scope and results of preclinical and clinical testing, including the progress and results of the Phase II rotavirus clinical trial and 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; (ii) the progress of the Company's research and development programs, including further development of Therapore(TM) and the Adjumer(TM) delivery system; (iii) changes in existing and potential relationships with corporate collaborators; (iv) the Company's ability to compete successfully with larger companies; (v) risks of failure inherent in product development based on new technologies and novel delivery systems; (vi) the Company's ability to attract and retain qualified personnel; (vii) the time and costs of obtaining regulatory approvals, patents, proprietary rights and licenses; (viii) the ability of the Company to establish development and commercialization capacities or relationships; (ix) the costs of manufacturing; and (x) the Company's ability to secure future funding. OVERVIEW Virus Research Institute, Inc. (the "Company") is engaged in the discovery and development of systems for the delivery of vaccines and immunotherapeutics, 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, respiratory syncytial virus (RSV), 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. During 1997, the (7) 8 Company entered into a collaboration with SmithKline Beecham (SB) for the development and commercialization of the Company's oral rotavirus vaccine. The Company is also developing its own proprietary vaccine, utilizing antigens licensed exclusively by the Company, for the virus causing genital herpes, HSV2. In addition, the Company has acquired the exclusive license to Therapore(TM), a novel delivery system for the delivery of immunotherapeutics for chronic viral infections and cancers. 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 March 31, 1998 the Company has not generated any revenue from product sales, but has received an aggregate of $13,899,000 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 1997. Rotavirus infections are a major cause of acute diarrhea and dehydration in infants. 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, which is being conducted at four U.S. medical centers, is designed to examine the vaccine's ability to prevent rotavirus disease and to further study the safety of the vaccine. A total of 215 infants were enrolled (8) 9 in the study and have been immunized with the vaccine. Results from the study are expected to be available by mid-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 subsequent trials. During 1997, the Company established a collaboration with SB to develop and commercialize the Company's rotavirus vaccine. The Company will be responsible for the continuation of the Phase II efficacy study as discussed above. Following successful completion of the Phase II trial, SB will assume responsibility for and fund all subsequent clinical and other development activities. The Company will be entitled to receive milestone payments and royalties on vaccine sales under the agreement which grants SB exclusive worldwide marketing rights to the rotavirus vaccine. Based on the results of an earlier Phase I clinical trial, the Company's collaborator, PMC, conducted a Phase II safety and immunogenicity clinical trial of an Adjumer(TM)-formulated influenza vaccine during 1997. In the Phase I study conducted in France, 48 young and 41 elderly adults were given single injections of either the vaccine formulated with Adjumer(TM) or the same vaccine without Adjumer(TM). A total of 430 elderly adults participated in the Phase II study, which was conducted in Peru. Preliminary results of the Phase II clinical trial confirmed that the Adjumer(TM)-formulated 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. The Company and PMC are currently analyzing and assessing the results of the Phase II study 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. During 1997, the Company was granted an exclusive worldwide license by Harvard University to Therapore(TM), a novel immunotherapeutic delivery system. Therapore(TM) will initially be evaluated in therapies to deliver products for the treatment of chronic viral infections and cancers. Under the terms of the agreement, the Company will be obligated to pay license fees, milestone payments and royalties to Harvard. (9) 10 In January 1998, the Company entered into a license agreement with Heska Corporation (Heska) to collaborate on the development and commercialization of a number of Heska's animal health vaccines through the use of Adjumer(TM). Under the terms of the agreement, based on progress in development, the Company will be entitled to receive license fees, milestone payments and royalties. RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 1998 AND MARCH 31, 1997 Total revenue declined by $405,000 to $315,000 for the three months ended March 31, 1998 from $720,000 for the same period in 1997. Licensing and option revenue consisted of $50,000 received in conjunction with the licensing agreement with Heska. There was no licensing and option revenue in the first quarter of 1997. Research and development revenue for the first quarter of 1997 consisted of revenue associated with agreements with PMC and Chiron. No research and development revenue was recorded during the three months ended March 31, 1998. Interest income declined by $69,000 to $264,000 for the first quarter in 1998 from $333,000 in the 1997 quarter due to a reduction in cash, cash equivalents and investments. The Company's total expenses increased by $62,000 to $2,623,000 for the three months ended March 31, 1998 from $2,561,000 in 1997. The increase is attributable to a $154,000 increase in research and development expenses from $1,700,000 in 1997 to $1,854,000 in the first quarter of 1998. The increase was primarily attributable to costs associated with the polyphosphazene manufacturing and scale up process and to increased costs related to the Therapore(TM) research effort. General and administrative expenses declined by $48,000 to $664,000 for the three months ended March 31, 1998 from $712,000 for the 1997 quarter due to reduced compensation, legal and investor relations costs. Depreciation expense declined $39,000 to $92,000 in the first quarter of 1998 from $131,000 in 1997 as a result of the full depreciation of various equipment and leasehold improvements. Interest and other expense declined slightly, by $5,000, to $13,000 in the 1998 quarter from $18,000 in 1997. (10) 11 LIQUIDITY AND CAPITAL RESOURCES From inception (February 11, 1991) through March 31, 1998, 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 was $31,997,000, primarily to fund research and development efforts and general and administrative expenses. Since inception the Company has incurred $3,191,000 in capital expenditures, primarily for leasehold improvements and equipment for the Company's laboratories. During the three months ended March 31, 1998 the Company incurred $42,000 in capital expenditures primarily on expenditures required for the polyphosphazene manufacturing process. The Company anticipates incurring approximately $400,000 in capital expenditures during 1998, primarily on equipment necessary for the polyphosphazene manufacturing process. From inception through March 31, 1998, the Company raised net proceeds of approximately $51,876,000 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. In addition, from inception the Company has funded $751,000 of capital expenditures through sale and leaseback transactions. The Company has undertaken an assessment of the cost and impact on operations of addressing the Year 2000 issue in connection with its computer systems. As a result of such assessment, the Company believes that all of its major software will be Year 2000 compliant and the Company does not believe the Year 2000 issue will have a material impact on its business, operations or financial condition. 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 the expansion of 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 for at least the next twelve months. However, the Company's cash requirements may vary materially (11) 12 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 further 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 and Use of Proceeds Item 2(d) Use of Proceeds from the Company's Initial Public Offering (the "IPO") (1) Effective date of Registration Statement on Form S-1: June 5, 1996; Commission file number: 333-3378. (4) (vii) The Company's use of proceeds from its IPO, as reported in its Annual Report on Form 10-K for the year ended December 31, 1997, is updated as follows: Purchase and installation of machinery and equipment: $455,000 Repayment of indebtedness: $1,000,000 Working Capital: $11,076,000 Temporary investments (money market account and short-term instruments): $12,212,000 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 On May 12, 1998, the Company entered into a definitive merger agreement with T Cell Science, Inc. (T Cell) whereby the Company will be acquired by T Cell. Under the terms of the merger agreement, which is subject to shareholder and regulatory approval, T Cell will issue 1.55 shares of its common stock and 0.2 warrants for each share of the Company's common stock. Each warrant represents the right to purchase one share of T Cell's common stock for $6.00 per share and will expire five years from the closing date. The number of shares of common stock outstanding on May 12, 1998 was 28,531,285 and 9,039,355 for T Cell and the Company, respectively. 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 March 31, 1998. (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: May 14, 1998 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 LOSS PER COMMON SHARE
Three months ended MARCH 31, 1998 1997 ----------------------------- Net loss $(2,307,600) $(1,840,815) Shares used in computing net loss per common share: Weighted average common stock outstanding during the period 8,942,667 8,861,992 Common stock equivalents (1) N/A N/A ----------------------------- Weighted average common shares outstanding 8,942,667 8,861,992 Basic and diluted net loss per common share $ (0.26) $ (0.21) =============================
(1) Common stock equivalents representing potential issuances of 1,117,150 and 1,153,830 at March 31, 1998 and March 31, 1997, respectively, have been excluded as their effect would be anti-dilutive. EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM VIRUS RESEARCH INSTITUTE 1998 FIRST QUARTER 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ANNUAL REPORT ON FORM 10-K 12/31/97 U.S. DOLLARS 3-MOS DEC-31-1998 JAN-01-1998 MAR-31-1998 1 1,162,625 15,349,386 0 0 0 18,198,741 3,173,756 2,508,530 18,893,550 1,744,449 0 0 0 8,979 17,140,122 18,893,550 0 315,086 0 0 2,622,686 0 0 (2,307,600) 0 (2,307,600) 0 0 0 (2,307,600) (0.26) (0.26)
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