EXHIBIT 99(2)
THEROX PHARMACEUTICALS, INC.
(A Development Stage Enterprise)
Balance Sheet (Unaudited)
March 31, 1995
ASSETS
Current assets
Cash $343,806
Prepaid expenses --
--------
Total current assets 343,806
Property and equipment
Equipment used in research 21,473
Less allowance for depreciation (4,063)
--------
17,410
Other assets, net of accumulated amortization of $2,625 12,375
--------
Total assets $373,591
========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 166,985
Accrued payroll and payroll taxes 3,940
---------
Total current liabilities 170,925
Shareholders' equity
Series A, Preferred stock, $.001 par value:
Authorized shares - 1,000,000 shares
Issues and outstanding - 1,000,000 shares 1,000
Additional paid-in-capital 979,000
Common stock, $.001 par value:
Authorized shares - 2,000,000 shares
Issued and outstanding - 283,000 shares 283
Deficit accumulated during development stage (777,617)
---------
202,666
---------
Total liabilities and shareholders' equity $ 373,591
=========
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THEROX PHARMACEUTICALS, INC.
(A Development Stage Enterprise)
Statement of Operations (Unaudited)
Period Ended March 31, 1995 and for the Period from
July 1, 1993 (date of inception) to March 31, 1995
Cumulative
March 31, from
1995 July 1, 1993
--------- ------------
Research and development expenses $176,722 $768,807
General and administrative expense 5,468 30,351
-------- --------
Total expenses 182,190 799,158
Other income (expense)
Interest income 2,584 21,541
-------- --------
Net loss $179,606 $777,617
======== ========
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THEROX PHARMACEUTICALS, INC.
(A Development Stage Enterprise)
Statement of Shareholders' Equity (Unaudited)
Deficit
Accumulated
Series A During Additional
Preferred Common Development Paid-In
Stock Stock Stage Capital Total
--------- ------ ----------- ---------- -----
Balance July 1, 1993 $ -- $ -- $ -- $ -- $ --
Issuance of 1,000,000 shares
Series A Preferred Stock,
net of expense 1,000 -- 979,000 980,000
Issuance of 283,000 shares 283 283
Net loss (77,064) (77,064)
------ ---- --------- -------- ---------
Balance December 31, 1993 1,000 283 (77,064) 979,000 903,219
Net loss (520,947) (520,947)
------ ---- --------- -------- ---------
Balance December 31, 1994 1,000 283 (598,011) 979,000 382,272
Net loss (179,606) (179,606)
------ ---- --------- -------- ---------
Balance March 31, 1995 $1,000 $283 $(777,617) $979,000 $ 202,666
====== ==== ========= ======== =========
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THEROX PHARMACEUTICALS, INC.
(A Development Stage Enterprise)
Statement of Cash Flows (Unaudited)
Period Ended March 31, 1995 and for the Period from
July 1, 1993 (date of inception) to March 31, 1995
Cumulative
March 31, from
1995 July 1, 1993
---------- -------------
Operating activities
Net loss $(179,606) $(777,617)
Adjustments to reconcile net loss to
net cash used by operating activities:
Depreciation 1,074 4,063
Amortization 375 2,625
(Increase) decrease in prepaid expenses 5,000 --
Increase (decrease) in:
Accounts payable 44,067 166,985
Accrued payroll and taxes 2,156 3,940
--------- ---------
Net cash used by operating activities (126,934) (600,004)
Investing activities
Purchase of equipment used in research -- (21,473)
Purchase of intangibles -- (15,000)
--------- ---------
Net cash (used) by investing activities -- (36,473)
Financing activities
Proceeds from issuance of stock,
net of expense -- 980,283
--------- ---------
Net cash provided by financing activities -- 980,283
--------- ---------
Net increase (decrease) in cash (126,934) 343,806
Cash at beginning of period 470,740 --
--------- ---------
Cash at March 31, 1995 $ 343,806 $ 343,806
========= =========
Cash paid for interest -- --
========= =========
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CONDENSED NOTE TO FINANCIAL STATEMENTS
The unaudited financial statements do not include all of the information and
notes required by generally accepted accounting principles for complete
financial statements. All adjustments considered necessary by management for a
fair presentation have been included. Operating results for interim periods are
not necessarily indicative of the results that may be expected for the full
year.
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