þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934.
|
¨
|
TRANSACTION
REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
New
York
|
11-0853640
|
(State
or other Jurisdiction of
|
(I.R.S.
Employer Identification No.)
|
incorporation
or organization)
|
|
616
N. North Court, Suite 120
|
|
60067
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Page
No.
|
||||
Item
1.
|
Financial
Statements (Unaudited)
|
|
||
Consolidated
Balance Sheets
June
30, 2007 and December 31, 2006
|
2
|
|||
Consolidated
Statements of Operations
Three
months and six months ended June 30, 2007 and June 30,
2006
|
3 | |||
Consolidated
Statement of Stockholders’ Deficit
Six
months ended June 30, 2007
|
4 | |||
|
|
|||
Consolidated
Statements of Cash Flows
Six
months ended June 30, 2007 and June 30, 2006
|
5 | |||
Notes
to Consolidated Financial Statements
|
7
|
|||
Item
2.
|
Management's
Discussion and Analysis of Financial Condition and Results of Operations
|
14
|
||
Item
4.
|
Controls
and Procedures
|
30
|
||
PART
II. OTHER INFORMATION
|
||||
Item
1A.
|
Risk
Factors Relating to the Company
|
30
|
||
Item
2.
|
Unregistered
Sale of Equity Securities and Use of Proceeds
|
30
|
||
Item
6.
|
Exhibits
|
31
|
||
Signatures
|
31
|
June
30,
|
December
31,
|
||||||
|
2007
|
2006
|
|||||
ASSETS
|
|||||||
CURRENT
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
83
|
$
|
228
|
|||
Prepaid
insurance
|
115
|
179
|
|||||
Prepaid
expenses and other current assets
|
64
|
60
|
|||||
Total
current assets
|
262
|
467
|
|||||
PROPERTY,
PLANT & EQUIPMENT, NET
|
1,116
|
1,145
|
|||||
DEPOSITS
|
7
|
7
|
|||||
TOTAL
ASSETS
|
$
|
1,385
|
$
|
1,619
|
|||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Senior
secured convertible bridge term notes, net
|
$
|
9,402
|
$
|
7,005
|
|||
Conversion
features on bridge term notes
|
-
|
16,750
|
|||||
Secured
term note
|
5,000
|
5,000
|
|||||
Current
maturities of capital lease obligations
|
20
|
25
|
|||||
Accounts
payable
|
63
|
-
|
|||||
Accrued
expenses
|
516
|
328
|
|||||
Total
current liabilities
|
15,001
|
29,108
|
|||||
COMMON
STOCK WARRANTS
|
-
|
10,784
|
|||||
CAPITAL
LEASE OBLIGATIONS, less current maturities
|
-
|
7
|
|||||
TOTAL
LIABILITIES
|
15,001
|
39,899
|
|||||
COMMITMENTS
AND CONTINGENCIES
|
|||||||
STOCKHOLDERS'
DEFICIT
|
|||||||
Common
stock - $.01 par value; 650,000 shares authorized; 332,149 and 330,998
shares issued and outstanding at June 30, 2007 and December 31, 2006,
respectively
|
3,321
|
3,310
|
|||||
Convertible
preferred stock - $.01 par value; 72,027 shares authorized and available
for issuance
|
-
|
-
|
|||||
Additional
paid-in capital
|
311,967
|
275,953
|
|||||
Accumulated
deficit
|
(328,904
|
)
|
(317,543
|
)
|
|||
STOCKHOLDERS’
DEFICIT
|
(13,616
|
)
|
(38,280
|
)
|
|||
TOTAL
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$
|
1,385
|
$
|
1,619
|
For
the six months
ended
June 30,
|
For
the three months
ended
June 30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
Research
and development
|
$
|
1,948
|
$
|
2,544
|
$
|
752
|
$
|
1,038
|
|||||
Marketing,
general and administrative
|
1,366
|
3,724
|
588
|
1,303
|
|||||||||
LOSS
FROM OPERATIONS
|
(3,314
|
)
|
(6,268
|
)
|
(1,340
|
)
|
(2,341
|
)
|
|||||
OTHER
INCOME (EXPENSE)
|
|||||||||||||
Interest
expense
|
(819
|
)
|
(495
|
)
|
(452
|
)
|
(270
|
)
|
|||||
Interest
income
|
10
|
10
|
5
|
6
|
|||||||||
Amortization
of debt discount
|
(2,102
|
)
|
-
|
(410
|
)
|
-
|
|||||||
Loss
on fair value change of conversion features
|
(3,483
|
)
|
-
|
-
|
-
|
||||||||
Loss
on fair value change of common stock warrants
|
(1,668
|
)
|
-
|
-
|
-
|
||||||||
Gain
(loss) on asset disposals
|
20
|
(17
|
)
|
-
|
(10
|
)
|
|||||||
Other
|
(2
|
)
|
-
|
(2
|
)
|
-
|
|||||||
TOTAL
OTHER EXPENSE
|
(8,044
|
)
|
(502
|
)
|
(859
|
)
|
(274
|
)
|
|||||
NET
LOSS
|
$
|
(11,358
|
)
|
$
|
(6,770
|
)
|
$
|
(2,199
|
)
|
$
|
(2,615
|
)
|
|
Basic
and diluted loss per share allocable
to common stockholders (Note 7)
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
|
Weighted
average shares used in computing basic and diluted loss per share
allocable to common stockholders (Note 7)
|
354,036
|
342,039
|
355,404
|
343,507
|
Common
Stock
$0.01
Par Value Shares
|
Common
Stock
$0.01
Par Value Amount
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Total
|
||||||||||||
Balance
at December 31, 2006
|
330,998
|
$
|
3,310
|
$
|
275,953
|
$
|
(317,543
|
)
|
$
|
(38,280
|
)
|
|||||
Net
loss for six months ended June 30, 2007
|
-
|
-
|
-
|
(11,358
|
)
|
(11,358
|
)
|
|||||||||
Deemed
dividend related to debt modification
|
-
|
-
|
-
|
(3
|
)
|
(3
|
)
|
|||||||||
Reclassification
of conversion feature value
|
-
|
-
|
21,086
|
-
|
21,086
|
|||||||||||
Reclassification
of common stock warrant value
|
-
|
-
|
12,453
|
-
|
12,453
|
|||||||||||
Conversion
feature value of issued debt
|
-
|
-
|
952
|
-
|
952
|
|||||||||||
Stock
based compensation
|
-
|
-
|
722
|
-
|
722
|
|||||||||||
Issuance
of common stock for interest
|
837
|
8
|
804
|
-
|
812
|
|||||||||||
Issuance
of common stock for cashless exercise of common stock
warrants
|
314
|
3
|
(3
|
)
|
-
|
-
|
||||||||||
Balance
at June 30, 2007
|
332,149
|
$
|
3,321
|
$
|
311,967
|
$
|
(328,904
|
)
|
$
|
(13,616
|
)
|
|
2007
|
2006
|
|||||
Cash
flows from Operating Activities:
|
|||||||
Net
loss
|
$
|
(11,358
|
)
|
$
|
(6,770
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities
|
|||||||
Depreciation
and amortization
|
61
|
60
|
|||||
Amortization
of debt discount
|
2,102
|
-
|
|||||
Loss
on fair value change of conversion features
|
3,483
|
-
|
|||||
Loss
on fair value change of common stock warrants
|
1,668
|
-
|
|||||
Common
stock issued for interest
|
812
|
303
|
|||||
Non-cash
stock compensation expense
|
722
|
4,077
|
|||||
(Gain)
loss on asset disposals
|
(20
|
)
|
17
|
||||
Changes
in assets and liabilities
|
|||||||
Prepaid
expenses and other current assets
|
60
|
(224
|
)
|
||||
Accounts
payable
|
63
|
-
|
|||||
Accrued
expenses
|
188
|
52
|
|||||
Total
adjustments
|
9,139
|
4,285
|
|||||
Net
cash used in operating activities
|
(2,219
|
)
|
(2,485
|
)
|
|||
Cash
flows from Investing Activities:
|
|||||||
Capital
expenditures
|
(29
|
)
|
(8
|
)
|
|||
Proceeds
from asset disposals
|
20
|
62
|
|||||
Net
cash (used in) provide by investing activities
|
(9
|
)
|
54
|
||||
Cash
flows from Financing Activities:
|
|||||||
Proceeds
from issuance of senior secured term notes payable
|
2,096
|
2,635
|
|||||
Proceeds
from the exercise of stock options
|
-
|
43
|
|||||
Payments
on capital lease obligations
|
(13
|
)
|
(15
|
)
|
|||
Net
cash provided by financing activities
|
2,083
|
2,663
|
|||||
(Decrease)
increase in cash and cash equivalents
|
(145
|
)
|
232
|
||||
Cash
and cash equivalents at beginning of period
|
228
|
260
|
|||||
Cash
and cash equivalents at end of period
|
$
|
83
|
$
|
492
|
|||
Cash
paid for interest
|
$
|
6
|
$
|
192
|
1.
|
The
Company issued 475,522 shares of common stock valued at $460,000
as
payment of Senior Secured Convertible Bridge Term Notes Payable accrued
interest.
|
2.
|
The
Company issued 361,505 shares of common stock valued at $352,000
as
payment of Secured Term Note Payable accrued
interest.
|
3.
|
Warrants
to purchase an aggregate 580,092 shares of common stock were exercised
at
exercise prices between $0.12 and $0.66 per share in a series of
cashless
exercise transactions resulting in the issuance of aggregate 313,616
shares of common stock.
|
4.
|
The
issuance of $1,296,000 Senior Secured Convertible Bridge Term Notes
included conversion features measured at $1,188,000, which resulted
in an
equal amount of debt discount. The change in all separated conversion
feature’s fair value through March 30, 2007 resulted in a loss of
$3,483,000. Due to a debt agreement modification on March 30, 2007,
the
then current conversion feature fair value of $21,086,000 was reclassified
from liabilities to equity.
|
5.
|
The
change in the common stock warrants’ fair value through the earlier of
their exercise date or March 30, 2007 resulted in a loss of 1,668,000.
Due
to a debt agreement modification on March 30, 2007, the then current
fair
value of all 15,921,000 outstanding common stock warrants of $12,307,000
was reclassified from liabilities to equity, as was $146,000 of such
value
related to warrants exercised during the
period.
|
1.
|
The
Company issued 452,175 shares of common stock as payment of $303,000
of
Secured Term Note Payable accrued
interest.
|
2.
|
Warrants
to purchase aggregate 196,632 shares of common stock were exercised
at
exercise prices of $0.48 and $0.47 per share in a series of cashless
exercise transactions resulting in the issuance of aggregate 23,794
shares
of common stock.
|
Six
months ended
June
30,
|
Three
months ended
June
30,
|
||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||
(in
thousands, except per share data)
|
|||||||||||||
Numerator:
|
|||||||||||||
Net
loss
|
$
|
(11,358
|
)
|
$
|
(6,770
|
)
|
$
|
(2,199
|
)
|
$
|
(2,615
|
)
|
|
Deemed
dividend from modification of debt
|
(3
|
)
|
-
|
-
|
-
|
||||||||
Net
loss allocable to common stockholders
|
$
|
(11,361
|
)
|
$
|
(
6,770
|
)
|
$
|
(2,199
|
)
|
$
|
(2,615
|
)
|
|
Denominator:
|
|||||||||||||
Common
shares (weighted)
|
331,386
|
329,443
|
331,641
|
329,577
|
|||||||||
Vested
restricted stock units (weighted)
|
22,650
|
12,596
|
23,763
|
13,930
|
|||||||||
Weighted
average shares used in computing basic and diluted loss per share
allocable to common
stockholders
|
354,036
|
342,039
|
355,404
|
343,507
|
|||||||||
Basic
and diluted loss per share allocable
to common stockholders
|
$
|
(0.03
|
)
|
$
|
(0.02
|
)
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
|
Potentially
dilutive securities as of period end:
|
|||||||||||||
Common
stock issuable (see #1 below):
|
|||||||||||||
Vested
and nonvested employee and
director stock options
|
18,995
|
19,634
|
18,995
|
19,634
|
|||||||||
Nonvested
restricted stock units
|
4,917
|
14,750
|
4,917
|
14,750
|
|||||||||
Common
stock warrants
|
15,751
|
16,045
|
15,751
|
16,045
|
|||||||||
Convertible
bridge term notes
|
37,702
|
-
|
37,702
|
-
|
|||||||||
Total
excluded dilutive common stock equivalents
|
77,365
|
50,430
|
77,365
|
50,430
|
(1)
Number of common shares issuable is based on maximum number of common
shares issuable on exercise or conversion of the related securities
as of
period end. Such amounts have not been adjusted for the treasury
stock
method or weighted average outstanding calculations required if the
securities were dilutive.
|
Jun
30,
|
Dec
31,
|
||||||
2007
|
2006
|
||||||
Payroll,
payroll taxes and benefits
|
$
|
85
|
$
|
62
|
|||
Legal
fees
|
35
|
19
|
|||||
Audit
examination and tax preparation fees
|
45
|
70
|
|||||
Franchise
taxes
|
23
|
15
|
|||||
Property
taxes
|
66
|
52
|
|||||
Clinical,
regulatory and patent consulting fees
|
50
|
60
|
|||||
Clinical
trials
|
162
|
-
|
|||||
Other
fees and services
|
50
|
50
|
|||||
$
|
516
|
$
|
328
|
|
Jun
30,
|
Dec
31,
|
|||||
2007
|
2006
|
||||||
Senior
secured convertible bridge term notes (a):
|
|||||||
Face
value
|
$
|
9,944
|
$
|
7,848
|
|||
Debt
discount
|
(542
|
)
|
(843
|
)
|
|||
|
9,402
|
7,005
|
|||||
Conversion
feature value
|
-
|
16,750
|
|||||
$
|
9,402
|
$
|
23,755
|
||||
Secured
term note (b)
|
$
|
5,000
|
$
|
5,000
|
|||
Capital
lease obligations
|
$
|
20
|
$
|
32
|
|
March
30,
2007
|
December
31,
2006
|
|||||
Company
stock price
|
|
$
0.85
|
|
$
0.74
|
|||
Exercise
price
|
(see
note below)
|
|
(see
note below)
|
|
|||
Expected
dividend
|
0.0
|
%
|
0.0
|
%
|
|||
Risk
-free interest rate
|
5.07
|
%
|
5.0
|
%
|
|||
Expected
volatility
|
none
|
88.8
|
%
|
||||
Contracted
term
|
1
day
|
3
months
|
March
30,
2007
|
December
31,
2006
|
||||||
Company
stock price
|
|
$
0.85
|
|
$
0.74
|
|||
Exercise
price
|
|
$
0.12 - $ 0.34
|
|
$
0.12 - $ 0.66
|
|||
Expected
dividend
|
0.0
|
%
|
0.0
|
%
|
|||
Risk-free
interest rate
|
4.54%
- 4.70
|
%
|
4.7%
- 5.0
|
%
|
|||
Expected
volatility
|
114.3%
- 135.8
|
%
|
48.4%
- 143.5
|
%
|
|||
Weighted
-average volatility
|
127.7
|
%
|
127.7
|
%
|
|||
Contractual
term
|
1.4
years - 6.8
years
|
38
days - 6.8
years
|
Technical
and Pre-Clinical Development
|
Status
|
|
Formulation
development
|
Complete
|
|
Pilot
bioequivalence study
|
Complete
|
|
Pivotal
oxycodone extraction study
|
Complete
(results summarized below)
|
|
Viscosity
and syringability of dissolved tablets in various solvents
|
Study
results pending and intended to support product
labeling
|
|
Tablet
stability for NDA submission
|
Testing
in process. 18 month real time data demonstrates stability acceptable
for
NDA submission
|
|
Toxicology
studies
|
Not
required per FDA written guidance to the
Company
|
Regulatory
Affairs
|
Status
|
|
Investigational
New Drug Application (IND)
|
Active
|
|
End
of Phase II meeting with FDA
|
Completed
Q1-06
|
|
Factorial
design clinical studies
|
Not
required per FDA written guidance to Company
|
|
Product
labeling
|
Strategy
and concepts discussed with FDA. Written guidance provided by FDA
to the
Company
|
|
Regulatory
submission for commercial distribution in the U.S.
|
OxyADF
Tablets are eligible for submission as a 505(b)(2) NDA per FDA written
guidance to Company
|
|
Phase
III pivotal clinical trial
|
A
single phase III efficacy and safety trial is required per FDA written
guidance to Company
|
Product
Tested,
Oxycodone
HCl Strength
and
Product Supplier
|
Approximate
laboratory
time
required to produce a
form
suitable for
intravenous
injection
|
Extraction
Scheme
and
Yield
|
Difficulty
Rating
1
=
Easy
to
10
= Difficult
|
|||
OxyContin®
Tablets
1x
40mg tablet
Purdue
Pharma
|
3
minutes
|
3
steps
~92%
Yield
|
1
|
|||
Oxycodone
HCl Tablets
8
x
5mg tablets,
Mallinckrodt
|
6
minutes
|
3
Steps
~71%
Yield
|
2
|
|||
Percocet®
Tablets
8
x
5/325mg tablets
Endo
Labs
|
<10
minutes
with
vacuum assisted filtration
|
3
Steps
~75%
Yield
|
3-4
|
|||
OxyADF
Tablets
8
x
5/30mg tablets
Acura
Pharmaceuticals
|
355
minutes
with
no success
|
23
Steps
~0%
Yield
|
10
|
Clinical
Study Number
|
Clinical
Study Description
|
Status
|
||
Phase
I
|
||||
AP-ADF-101
|
Niacin
dose-response in normal subjects
|
Final
study report complete
|
||
AP-ADF-104
|
Phase
I:
Bioequivalence to non
Aversion® Technology Reference Listed Drug
|
Final
study report complete. OxyADF tablets are bioequivalent to reference
listed drug
|
||
AP-ADF-106
|
Evaluate
effects of nasal snorting
|
Received
FDA written guidance for protocol design
|
||
AP-ADF-108
|
Single
dose pharmacokinetics
(dose
linearity
and food effect)
|
Received
FDA written guidance for protocol design
|
||
AP-ADF-109
|
Multi-dose
pharmacokinetics (dose linearity)
|
Received
FDA written guidance for protocol design
|
||
AP-ADF-110
|
Single
dose pharmacokinetics and bioavailability. Required if there is not
dose
linearity
|
Received
initial FDA written guidance for protocol design
|
||
Phase
II
|
||||
AP-ADF-102
|
Relative
dislike of oxycodone HCl/niacin versus oxycodone alone in subjects
with a
history of opioid abuse
|
Final
study report complete
|
||
AP-ADF-103
|
Repeat
dose safety and tolerability in normal subjects
|
Final
study report complete
|
||
AP-ADF-107
|
Niacin
dose-response in normal subjects
|
Final
study report complete
|
||
Phase
III
|
||||
AP-ADF-105
|
Pivotal
efficacy and safety
|
Special
Protocol Assessment (SPA) agreed by
FDA
|
(1)
|
In
the fasting state, all three doses of niacin (240mg, 480mg and 600mg)
in
combination with oxycodone 40mg produced significant (p <
.05) disliking scores compared to oxycodone 40mg alone. The linear
regression across niacin dose was not significant. No other subjective
measure was significantly affected by the niacin addition to
oxycodone.
|
(2)
|
The
high fat meal eliminated the niacin effect on oxycodone 40 mg. The
high
fat meal also delayed the time to oxycodone peak blood
levels.
|
(3)
|
The
addition of niacin to oxycodone alters the subjective response to
oxycodone as indicated by the significant responses on the disliking
scale. This observation in conjunction with the results from the
Treatment
Enjoyment Questionnaire indicates that the addition of niacin reduces
the
attractiveness of oxycodone to opiate
abusers.
|
(4)
|
There
were no serious adverse events. Niacin produced a dose related attenuation
of pupillary constriction, diastolic blood pressure increase and
probably
systolic blood pressure increase produced by oxycodone. The alterations
by
niacin on the vital sign responses to oxycodone 40 mg were minimal,
were
seen primarily with the 600 mg niacin dose and were not clinically
significant.
|
6
MONTHS ENDED 6/30/07
R&D
EXPENSES
|
6
MONTHS ENDED 6/30/06
R&D
EXPENSES
|
6
MONTHS ENDED
6/30/07
and 6/30/06
R&D
EXPENSES
CHANGE
($)
|
6
MONTHS ENDED
6/30/07
and 6/30/06
R&D
EXPENSES
CHANGE
(%)
|
|||||||
$1,948
|
|
$2,544
|
($596)
|
|
(23%)
|
|
6
MONTHS ENDED 6/30/07
MARKETING,
G&A EXPENSES
|
6
MONTHS ENDED 6/30/06
MARKETING,
G&A EXPENSES
|
6
MONTHS ENDED
6/30/07
and 6/30/06
MARKETING,
G&A EXPENSES
CHANGE
($)
|
6
MONTHS ENDED
6/30/07
and 6/30/06
MARKETING,
G&A EXPENSES
CHANGE
(%)
|
|||||||
$1,366
|
|
$3,724
|
($2,358)
|
|
(63%)
|
|
6
MONTHS ENDED 6/30/07
INTEREST
EXPENSE, NET OF INTEREST INCOME
|
6
MONTHS ENDED 6/30/06
INTEREST
EXPENSE, NET OF INTEREST INCOME
|
6
MONTHS ENDED
6/30/07
and 6/30/06
INTEREST
EXPENSE,
NET
OF INTEREST
INCOME
CHANGE
($)
|
6
MONTHS ENDED
6/30/07
and 6/30/06
INTEREST
EXPENSE, NET OF INTEREST INCOME
CHANGE
(%)
|
|||||||
$809
|
|
$485
|
|
$324
|
67%
|
|
6
MONTHS ENDED 6/30/07
NET
LOSS
|
6
MONTHS ENDED 6/30/06
NET
LOSS
|
6
MONTHS ENDED
6/30/07
and 6/30/06
NET
LOSS
CHANGE
($)
|
6
MONTHS ENDED
6/30/07
and 6/30/06
NET
LOSS
CHANGE
(%)
|
|||||||
$11,358
|
|
$6,770
|
|
$4,588
|
68%
|
|
3
MONTHS ENDED 6/30/07
R&D
EXPENSES
|
3
MONTHS ENDED 6/30/06
R&D
EXPENSES
|
3
MONTHS ENDED
6/30/07
and 6/30/06
R&D
EXPENSES
CHANGE
($)
|
3
MONTHS ENDED
6/30/07
and 6/30/06
R&D
EXPENSES
CHANGE
(%)
|
|||||||
$752
|
|
$1,038
|
($286)
|
|
(28%)
|
|
3
MONTHS ENDED 6/30/07
MARKETING,
G&A EXPENSES
|
3
MONTHS ENDED 6/30/06
MARKETING,
G&A EXPENSES
|
3
MONTHS ENDED
6/30/07
and 6/30/06
MARKETING,
G&A EXPENSES
CHANGE
($)
|
3
MONTHS ENDED
6/30/07
and 6/30/06
MARKETING,
G&A EXPENSES
CHANGE
(%)
|
|||||||
$588
|
|
$1,303
|
($715)
|
|
(55%)
|
|
3
MONTHS ENDED 6/30/07
INTEREST
EXPENSE, NET OF INTEREST INCOME
|
3
MONTHS ENDED 6/30/06
INTEREST
EXPENSE, NET OF INTEREST INCOME
|
3
MONTHS ENDED
6/30/07
and 6/30/06
INTEREST
EXPENSE,
NET
OF INTEREST
INCOME
CHANGE
($)
|
3
MONTHS ENDED
6/30/07
and 6/30/06
INTEREST
EXPENSE, NET OF INTEREST INCOME
CHANGE
(%)
|
|||||||
$447
|
|
$264
|
|
$183
|
69%
|
|
3
MONTHS ENDED 6/30/07
NET
LOSS
|
3
MONTHS ENDED 6/30/06
NET
LOSS
|
3
MONTHS ENDED
6/30/07
and 6/30/06
NET
LOSS
CHANGE
($)
|
3
MONTHS ENDED
6/30/07
and 6/30/06
NET
LOSS
CHANGE
(%)
|
|||||||
$2,199
|
|
$2,615
|
($416)
|
|
(16%)
|
|
Expected
cash payments on contractual
obligations outstanding at
June 30, 2007
|
Total
|
|
Due
in 2007
|
|
Due
in 2008
|
|
Due
Thereafter
|
||||||
Convertible
bridge term notes, gross (2)
|
$
|
9,944
|
$
|
9,944
|
$
|
-
|
$
|
-
|
|||||
Interest
on fixed rate debt (1)
|
254
|
254
|
-
|
-
|
|||||||||
Term
note (2)
|
5,000
|
5,000
|
-
|
-
|
|||||||||
Capital
leases
|
20
|
13
|
7
|
-
|
|||||||||
Operating
leases
|
5
|
5
|
-
|
-
|
|||||||||
Clinical
trials
|
160
|
160
|
-
|
-
|
|||||||||
Employment
agreements
|
370
|
370
|
-
|
-
|
|||||||||
Total
contractual cash obligations
|
$
|
15,753
|
$
|
15,746
|
$
|
7
|
$
|
-
|
Expected
cash payments on contractual
obligations entered into subsequent to June 30,
2007
|
Total
|
|
|
Due
in 2007
|
|
|
Due
in 2008
|
|
|
Due
Thereafter
|
|||
Convertible
bridge term notes, gross (2)
|
$
|
600
|
$
|
600
|
$
|
-
|
$
|
-
|
|||||
Interest
on fixed rate debt (1)
|
14
|
14
|
-
|
-
|
|||||||||
Operating
leases
|
15
|
10
|
5
|
-
|
|||||||||
Total
contractual cash obligations
|
$
|
629
|
$
|
624
|
$
|
5
|
$
|
-
|
(1)
|
At
the Company’s option, the $268 of interest on the Company’s fixed rate
Senior Secured Convertible Bridge Term Notes is payable in either
cash or
Company common stock. Interest on the Company’s variable rate debt is
payable in Company common stock (Note 9) and is not reflected in
this
schedule.
|
(2)
|
To
the extent cash is not available to the Company to pay this near-term
debt
obligation upon maturity, the Company expects to negotiate with its
lenders to arrange for alternative means to settle the obligation,
including, without limitation, the possible extension of maturity
or
conversion into equity.
|
31.1
|
Certification
of Periodic Report by Chief Executive Officer pursuant to Rule 13a-14
and
15d-14 of the Securities Exchange Act of
1934.
|
31.2
|
Certification
of Periodic Report by Chief Financial Officer pursuant to Rule 13a-14
and
15d-14 of the Securities Exchange Act of
1934.
|
32.1
|
Certification
of Periodic Report by the Chief Executive Officer and Chief Financial
Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section
906 of the Sarbanes-Oxley Act of
2002.
|
August 9, 2007 | ACURA PHARMACEUTICALS, INC. | |
|
|
|
/s/
Andrew D. Reddick
|
||
Andrew
D. Reddick
President
& Chief Executive Officer
|
/s/
Peter A. Clemens
|
||
Peter
A. Clemens
Senior
VP & Chief Financial
Officer
|