Delaware
|
|
2835
|
|
94-1620407
|
(State
or Jurisdiction of
|
|
(Primary
Standard Industrial
|
|
(I.R.S.
Employer Identification No.)
|
Incorporation
or Organization)
|
|
Classification
Code Number)
|
|
|
Title
Of Each Class Of Securities To
Be Registered
|
Amount
To Be
Registered
(1)
|
Proposed
Maximum
Offering
Price
Per Unit (2)
|
Proposed
Maximum
Aggregate
Offering
Price
|
Amount
Of
Registration
Fee*
|
|||||||||
Common
Stock, par value $.001 per share, underlying our Convertible
Debentures
|
4,840,714
|
$
|
0.18
|
$
|
871,329
|
$
|
93.23
|
||||||
Common
Stock, par value $.001 per share, issuable upon exercise of our Series
A,
Series C, and Series D Warrants (3)
|
9,681,429
|
$
|
0.35
|
$
|
3,388,500
|
$
|
362.57
|
||||||
Common
Stock, par value $.001 per share, issuable upon exercise of our Series
B
and Series E Warrants
|
4,840,714
|
$
|
0.385
|
$
|
1,863,675
|
$
|
199.41
|
||||||
Total:
|
19,362,857
|
$
|
6,123,504
|
$
|
655.21
|
(1) |
All
19,362,857 shares registered pursuant to this registration statement
are
to be offered by the selling security holders. Pursuant to Rule 416
under
the Securities Act, this registration statement also covers such
number of
additional shares of common stock to prevent dilution resulting from
stock
splits, stock dividends and similar transactions pursuant to the
terms of
the warrants referenced below.
|
(2) |
Estimated
solely for purposes of calculating the registration fee in accordance
with
Rule 457(c) and Rule 457(g) under the Securities Act, using the average
of
the high and low price as reported on the Over the Counter Bulletin
Board
on December 5, 2006.
|
(3) |
Represents
a total of 9,681,429 shares of common stock issuable upon the exercise
of
Series A, Series C, and Series D Warrants held by the selling security
holders.
|
(4) |
Represents
a total of 4,840,714 shares of common stock issuable upon the exercise
of
Series B and Series E Warrants held by the selling security
holders.
|
|
|
Page
|
Cautionary
Notice About Forward-Looking Statements
|
2
|
|
Prospectus
Summary
|
|
3 |
Use of Proceeds | 5 | |
Selling
Security Holders
|
6 | |
Plan
of Distribution
|
8 | |
Risk
Factors
|
|
10 |
Market
for Common Equity and Related Stockholder Matters
|
|
25 |
Dividend
Policy
|
|
25 |
Business
|
|
26 |
Management’s
Discussion and Analysis and Plan of Operation
|
|
41 |
Directors,
Executive Officers, Promoters and Control Persons
|
|
62 |
Certain
Relationships and Related Transactions
|
|
72 |
Security
Ownership of Certain Beneficial Owners and Management
|
|
76 |
Description
of Securities
|
|
80 |
Indemnification
for Securities Act Liabilities
|
|
84 |
Legal
Matters
|
|
85 |
Experts
|
|
85 |
Available
Information
|
|
85 |
Index
to Consolidated Financial Statements
|
|
F-1
|
· |
4,840,714
shares of common stock underlying the debentures issued in our private
placement on October 25, 2006;
|
· |
9,681,429
shares of common stock underlying Series A, Series C and Series D
common
stock warrants issued in our private placement on October 25, 2006;
and
|
· |
4,840,714
shares of common stock underlying Series B and Series E common stock
warrants issued in our private placement on October 25, 2006.
|
Name of beneficial owner |
Number
of Shares Owned Before Offering
|
Number
of Shares Being Offered (1)
|
Number
of Shares Owned After Offering (2)
|
||||||||
Bristol
Investment Fund, Ltd.
|
13,472,994
|
(3)
|
5,737,144
|
7,735,850
|
|||||||
Alpha
Capital Anstalt
|
5,737,144
|
(4)
|
5,737,144
|
0
|
|||||||
Whalehaven
Capital Fund Limited
|
4,302,856
|
(5)
|
4,302,856
|
0
|
|||||||
Cranshire
Capital, L.P.
|
4,717,791
|
(6)
|
3,585,714
|
1,132,076
|
|||||||
TOTAL:
|
19,362,857
|
*
|
Denotes
broker-dealer.
|
**
|
Denotes
affiliate of broker-dealer.
|
(1)
|
As
required by SEC rules, the number of shares in the table includes
shares
which can be purchased within 60 days, or, shares with respect to
which a
person may obtain voting power or investment power within 60 days.
|
(2)
|
Assumes
for purposes of this table that all selling security holders will
have
converted the debentures and exercised the warrants to purchase our
common
stock in this offering, and will have later sold in the offering
all
shares of our common stock underlying the debentures and warrants.
|
(3)
|
Holdings
of Bristol Investment Fund, Ltd. include 3,867,925 shares of common
stock,
1,434,286 shares issuable upon the voluntary conversion by Bristol
Investment Fund of a secured convertible debenture at the current
conversion price of $0.35 per share, warrants to purchase 1,933,963
shares
of common stock at a price of $0.66 per share, warrants to purchase
1,933,962 shares of common stock at a purchase price of $1.00 per
share,
warrants to purchase 2,868,572 shares of common stock at a purchase
price
of $0.35 per share, and warrants to purchase 1,434,286 shares of
common
stock at a purchase price of $0.385 per share. Paul Kessler, manager
of
Bristol Capital Advisors, LLC, the investment advisor to Bristol
Investment Fund, Ltd., has voting and investment control over the
securities held by Bristol Investment Fund, Ltd. Mr. Kessler disclaims
beneficial ownership of these securities.
|
(4)
|
Holdings
of Alpha Capital Anstalt include 1,434,286 shares issuable upon the
voluntary conversion by Alpha Capital Anstalt of a secured convertible
debenture at the current conversion price of $0.35 per share, warrants
to
purchase 2,868,572 shares of common stock at a purchase price of
$0.35 per
share, and warrants to purchase 1,434,286 shares of common stock
at a
purchase price of $0.385 per share.
|
(5)
|
Holdings
of Whalehaven Capital Fund Limited include 1,075,714 shares issuable
upon
the voluntary conversion by Whalehaven Capital Fund of a secured
convertible debenture at the current conversion price of $0.35 per
share,
warrants to purchase 2,151,428 shares of common stock at a purchase
price
of $0.35 per share, and warrants to purchase 1,075,714 shares of
common
stock at a purchase price of $0.385 per share.
|
(6)
|
Holdings
of Cranshire Capital, LP. include 896,429 shares issuable upon the
voluntary conversion by Cranshire Capital of a secured convertible
debenture at the current conversion price of $0.35 per share, warrants
to
purchase 283,019 shares of common stock at a price of $0.66 per share,
warrants to purchase 283,019 shares of common stock at a purchase
price of
$1.00 per share, warrants to purchase 1,792,857 shares of common
stock at
a purchase price of $0.35 per share, and warrants to purchase 896,428
shares of common stock at a purchase price of $0.385 per share. Mitchell
P. Kopin, the President of Downsview Capital, Inc., the General Partner
of
Cranshire Capital, L.P., has sole investment power and voting control
over
the securities held by Cranshire Capital,
L.P.
|
|
·
|
|
ordinary
brokerage transactions and transactions in which the broker-dealer
solicits purchasers;
|
|
·
|
|
block
trades in which the broker-dealer will attempt to sell the shares
as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
|
·
|
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for
its
account;
|
|
·
|
|
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
|
·
|
|
privately
negotiated transactions;
|
|
·
|
|
settlement
of short sales entered into after the date of the initial final prospectus
covering the resale of common stock by the selling security holders;
|
|
·
|
|
broker-dealers
may agree with the selling security holders to sell a specified number
of
such shares at a stipulated price per share;
|
|
·
|
|
a
combination of any such methods of sale;
|
|
·
|
|
through
the writing or settlement of options or other hedging transactions,
whether through an options exchange or otherwise; or
|
|
·
|
|
any
other method permitted pursuant to applicable law.
|
·
|
continued
scientific progress in our research and development programs and
the
commercialization of additional products;
|
·
|
the
cost of our research and development and commercialization activities
and
arrangements, including sales and
marketing;
|
·
|
the
costs associated with the scale-up of manufacturing;
|
·
|
the
success of pre-clinical and clinical trials;
|
·
|
the
establishment of and changes in collaborative relationships;
|
·
|
the
time and costs involved in filing, prosecuting, enforcing and defending
patent claims;
|
·
|
the
time and costs required for regulatory approvals;
|
·
|
the
acquisition of additional technologies or businesses;
|
·
|
technological
competition and market developments;
and
|
·
|
the
cost of complying with the requirements of the Autorité des Marchés
Financiers, or AMF, the French regulatory agency overseeing the Nouveau
Marché in France.
|
·
|
difficulties
in assimilating the operations, technologies, products and personnel
of an
acquired company;
|
·
|
risks
of entering markets in which we have either no or limited prior
experience;
|
·
|
diversion
of management’s attention from other business concerns; and
|
·
|
potential
loss of key employees of an acquired company.
|
·
|
our
therapeutic and clinical diagnostic candidates may be ineffective,
toxic
or may not receive regulatory
clearances,
|
·
|
our
therapeutic and clinical diagnostic candidates may be too expensive
to
manufacture or market or may not achieve broad market
acceptance,
|
·
|
third
parties may hold proprietary rights that may preclude us from developing
or marketing our therapeutic and clinical diagnostic candidates,
or
|
·
|
third
parties may market equivalent or superior
products.
|
·
|
our
partners may develop products or technologies competitive with our
products and technologies;
|
·
|
our
partners may not devote sufficient resources to the development and
sale
of our products and technologies;
|
·
|
our
collaborations may be unsuccessful; or
|
·
|
we
may not be able to negotiate future alliances on acceptable terms.
|
·
|
an
inability to produce products in sufficient quantities and with
appropriate quality;
|
·
|
an
inability to obtain sufficient raw
materials;
|
·
|
the
loss of or reduction in orders from key customers;
|
·
|
variable
or decreased demand from our customers;
|
·
|
the
receipt of relatively large orders with short lead times;
|
·
|
our
customers’ expectations as to how long it takes us to fill future orders;
|
·
|
customers’
budgetary constraints and internal acceptance review procedures;
|
·
|
there
may be only a limited number of customers that are willing to purchase
our
research assays and fine chemicals;
|
·
|
a
long sales cycle that involves substantial human and capital resources;
and
|
·
|
potential
downturns in general or in industry specific economic
conditions.
|
·
|
enforce
patents that we own or license;
|
·
|
protect
trade secrets or know-how that we own or license; or
|
·
|
determine
the enforceability, scope and validity of the proprietary rights
of
others.
|
·
|
our
financial results;
|
·
|
fluctuations
in our operating results;
|
·
|
announcements
of technological innovations or new commercial health care products
or
therapeutic products by us or our competitors;
|
·
|
government
regulation;
|
·
|
developments
in patents or other intellectual property rights;
|
·
|
developments
in our relationships with customers and potential customers; and
|
·
|
general
market conditions.
|
YEAR
|
PERIOD
|
HIGH
|
LOW
|
|||||||
Fiscal
Year 2004
|
First
Quarter
|
$
|
0.90
|
$
|
0.52
|
|||||
|
Second
Quarter
|
$
|
0.84
|
$
|
0.45
|
|||||
|
Third
Quarter
|
$
|
0.69
|
$
|
0.32
|
|||||
|
Fourth
Quarter
|
$
|
0.65
|
$
|
0.41
|
|||||
Fiscal
Year 2005
|
First
Quarter
|
$
|
0.57
|
$
|
0.28
|
|||||
|
Second
Quarter
|
$
|
0.43
|
$
|
0.27
|
|||||
|
Third
Quarter
|
$
|
0.48
|
$
|
0.28
|
|||||
|
Fourth
Quarter
|
$
|
0.39
|
$
|
0.24
|
|||||
Fiscal
Year 2006
|
First
Quarter
|
$
|
0.38
|
$
|
0.26
|
|||||
|
Second
Quarter
|
$
|
0.44
|
$
|
0.32
|
|||||
|
Third
Quarter
|
$
|
0.36
|
$
|
0.21
|
|||||
Fourth
Quarter
|
$
|
0.28
|
$
|
0.18
|
2005
|
2004
|
||||||
Japan
|
$
|
163,000
|
$
|
221,000
|
|||
France
|
94,000
|
145,000
|
|||||
Korea
|
76,000
|
43,000
|
|||||
Poland
|
54,000
|
28,000
|
|||||
Canada
|
47,000
|
31,000
|
|||||
United
Kingdom
|
47,000
|
55,000
|
|||||
Other
foreign countries
|
275,000
|
282,000
|
· |
U.S.
Patent 5,726,063 issued March 10, 1998 for “Method of Colorimetric
Analysis of Malonic Dialdehyde and 4-Hydroxy-2-Enaldehydes as Indexes
of
Lipid Peroxidation, Kits for Carrying Out Said Method, Substituted
Indoles
for Use in Said Method and their Preparation” will expire on May 6,
2014.
|
· |
U.S.
Patent 5,543,298 issued August 6, 1996 for “Method for Assaying the SOD
Activity by Using a Self-Oxidizable Compound Necessary for its
Implementation, Self-Oxidizable Compounds and Preparation Thereof” will
expire on August 6, 2013.
|
· |
U.S.
Patent 6,235,495 issued May 1, 2001 for “Methods for the Quantiation of In
Vivo Levels of Oxidized Glutathione” will expire on November 12,
2019.
|
· |
U.S.
Patent 5,861,262 issued January 19, 1999 for “Method of the Specific
Immunoassay of Human Plasma Glutathione Peroxidase, Kit for its
Implementation, Oligopeptides and Antibodies Specific for the Method” will
expire on January 19, 2016.
|
· |
U.S.
Patent 5,817, 520 issued October 6, 1998 for “Spectrophotometric Methods
for Assaying Total Mercaptans, Reduced Glutathione (GSH) and Mercaptans
other than GSH in an Aqueous Medium, Reagents and Kits for Implementing
Same” will expire on December 15,
2012.
|
· |
U.S.
Patent 5,438,151 issued August 1, 1995 entitled “Process for the
Preparation of Ergothioneine” will expire on February 8,
2014.
|
· |
U.S.
Patent 6,103,746 issued August 8, 2000 entitled “Methods and Compositions
for the Protection of Mitochondria” will expire on February 19,
2018.
|
· |
Patent
Application Serial No. 60/367,845 filed March 26, 2002 entitled
“Neuroprotectant Methods, Compositions and Screening Methods
Thereof”.
|
· |
U.S.
Patent 5,968,920 issued October 19, 1999 entitled “Novel Compounds having
a Benzoisoelen-Azoline and -Azine Structure, Method for Preparing
Same and
Therapeutic Uses Thereof” will expire on April 7,
2015.
|
· |
U.S.
Patent 6,093,532 issued July 25, 2000 entitled “Method for Storing a
Biological Organ Transplant Graft Using a Benzisoelen-Azoline or
-Azine
Compound” will expire on April 7,
2015.
|
· |
U.S.
Patent 5,973,009 issued October 26, 1999 entitled “Aromatic Diselenides
and Selenosulfides, their Preparation and their Uses, more Particularly
their Therapeutic Use” will expire on December 23,
2017.
|
· |
U.S.
Patent 6,525,040 issued February 25, 2003 entitled “Cyclic Organoselenium
Compounds, their Preparation and their Uses” will expire on December 23,
2017.
|
Increase
(Decrease) from 2004
|
|||||||||||||
2005
|
2004
|
Amount
|
%
|
||||||||||
Product
revenues
|
$
|
2,397,000
|
$
|
1,914,000
|
483,000
|
25
|
%
|
||||||
License
revenues
|
100,000
|
450,000
|
(350,000
|
)
|
(78
|
%)
|
|||||||
Total
revenues
|
$
|
2,497,000
|
$
|
2,364,000
|
$
|
133,000
|
6
|
%
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
2006
|
2005
|
Increase
from 2005
|
2006
|
2005
|
Increase
from 2005
|
||||||||||||||||||||
Revenues
|
$
|
1,512,000
|
$
|
532,000
|
$
|
980,000
|
184
|
%
|
$
|
4,381,000
|
$
|
1,718,000
|
$
|
2,663,000
|
155
|
%
|
Increase
from 2004
|
|||||||||||||
2005
|
2004
|
Amount
|
%
|
||||||||||
Cost
of product revenues
|
$
|
1,345,000
|
$
|
1,216,000
|
$
|
129,000
|
11
|
%
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
2006
|
2005
|
Increase
from 2005
|
2006
|
2005
|
Increase
from 2005
|
||||||||||||||||||||
Cost
of product revenues
|
$
|
725,000
|
$
|
333,000
|
$
|
392,000
|
118
|
%
|
$
|
2,374,000
|
$
|
906,000
|
$
|
1,468,000
|
162
|
%
|
Increase
from 2004
|
|||||||||||||
2005
|
2004
|
Amount
|
%
|
||||||||||
Research
and development expenses
|
$
|
499,000
|
$
|
278,000
|
$
|
221,000
|
79
|
%
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
2006
|
2005
|
Increase
from 2005
|
2006
|
2005
|
Increase
from 2005
|
||||||||||||||||||||
Research
and development expenses
|
$
|
207,000
|
$
|
69,000
|
$
|
138,000
|
200
|
%
|
$
|
598,000
|
$
|
191,000
|
$
|
407,000
|
213
|
%
|
Increase
from 2004
|
|||||||||||||
2005
|
2004
|
Amount
|
%
|
||||||||||
Selling,
general and administrative expenses
|
$
|
2,342,000
|
$
|
1,843,000
|
$
|
499,000
|
27
|
%
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
2006
|
2005
|
Increase
from 2005
|
2006
|
2005
|
Increase
from 2005
|
||||||||||||||||||||
Selling,
general and administrative expenses
|
$
|
953,000
|
$
|
470,000
|
$
|
483,000
|
103
|
%
|
$
|
2,854,000
|
$
|
1,551,000
|
$
|
1,303,000
|
84
|
%
|
Year
Ended December 31,
|
|||||||
2005
|
2004
|
||||||
Cash
paid to employees including benefits
|
$
|
(1,153,000
|
)
|
$
|
(1,067,000
|
)
|
|
Cash
paid to suppliers
|
(3,514,000
|
)
|
(2,353,000
|
)
|
|||
Total
cash paid to employees and suppliers
|
(4,667,000
|
)
|
(3,420,000
|
)
|
|||
Cash
received from customers
|
2,471,000
|
2,386,000
|
|||||
Interest
received
|
114,000
|
20,000
|
|||||
Interest
paid
|
(11,000
|
)
|
(28,000
|
)
|
|||
Net
cash used in operating activities
|
$
|
(2,093,000
|
)
|
$
|
(1,042,000
|
)
|
Nine
Months Ended
September 30, |
|||||||
2006
|
2005
|
||||||
Cash
paid to employees including benefits
|
$
|
(1,608,000
|
)
|
$
|
(675,000
|
)
|
|
Cash
paid to suppliers
|
(3,209,000
|
)
|
(2,630,000
|
)
|
|||
Total
cash paid to employees and suppliers
|
(4,817,000
|
)
|
(3,305,000
|
)
|
|||
Cash
received from customers
|
4,352,000
|
1,650,000
|
|||||
Interest
and other income received
|
47,000
|
74,000
|
|||||
Interest
paid
|
(88,000
|
)
|
(11,000
|
)
|
|||
Net
cash used in operating activities
|
$
|
(506,000
|
)
|
$
|
(1,592,000
|
)
|
Foster
City,
California
|
Portland,
Oregon
|
Total
|
||||||||
Furniture
and equipment
|
$
|
141,000
|
$
|
63,000
|
$
|
204,000
|
||||
Leasehold
improvements
|
39,000
|
—
|
39,000
|
|||||||
Patents
|
15,000
|
816,000
|
831,000
|
|||||||
Goodwill
and other assets
|
1,291,000
|
—
|
1,291,000
|
|||||||
$
|
1,486,000
|
$
|
879,000
|
$
|
2,365,000
|
Name
|
Age
|
Principal
Occupation
|
Served
as
Director
Since
|
|||
Marvin
S. Hausman, M.D. (2)
|
65
|
President,
Chief Executive Officer and Chairman of the Board
|
2004
|
|||
Steven
T. Guillen (4)
|
55
|
Director
|
2005
|
|||
S.
Colin Neill (1) (3)
|
60
|
Secretary,
Director
|
2004
|
|||
John
E. Repine, M.D. (1)
|
61
|
Director
|
2005
|
|||
Gary
M. Post (1)
|
58
|
Director
|
2006
|
(1) |
Member
of the Audit Committee.
|
(2) |
Appointed
President and Chief Executive Officer on September 15, 2006. Member
of the
Compensation Committee. In
addition, on November 15, 2006, following the resignation of Michael
Centron as our Vice President and Chief Financial Officer, Dr. Hausman
has
assumed the role of chief financial and accounting officer on an
interim
basis.
|
(3) |
Member
of the Nominating Committee.
|
(4) |
Terminated
as President and Chief Executive Officer on September 15,
2006.
|
|
|
|
|
Annual
Compensation
|
|
Long-Term
Compensation -
Awards
Securities Underlying
|
|
All
Other
|
|
|||||||
Name
and Principal Position
|
|
Year
|
|
Salary
|
|
Other
|
|
Options
|
|
Compensation
|
|
|||||
Steven
T. Guillen (1)
|
|
|
2006
|
|
$
|
192,000
|
|
$
|
4,250
|
(2)
|
¾
|
$
|
25,167
|
(3)
|
||
President,
Chief Executive
|
|
|
2005
|
|
$
|
209,000
|
|
$
|
5,000
|
(2)
|
|
1,100,000
|
|
$
|
2,000
|
(4)
|
Officer
and Director
|
|
|
2004
|
|
|
¾
|
|
|
¾
|
|
|
¾
|
|
|
¾
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dr.
Marvin S. Hausman (5)
|
2006
|
$
|
52,083
|
(6)
|
67,477
|
(7)
|
2,505,000
|
(9)
|
¾
|
|||||||
Chairman
of the Board,
|
|
|
2005
|
|
|
¾
|
(6)
|
|
15,000
|
(8)
|
|
613,000
|
(10)
|
|
¾
|
|
former
Acting Chief Financial Officer, former
|
|
|
2004
|
|
|
¾
|
(6)
|
|
¾
|
|
|
50,000
|
(10)
|
|
¾
|
|
Acting
Chief Executive Officer
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Mr.
Guillen served as President, Chief Executive Officer and Director
from
February 28, 2005 to September 15,
2006.
|
(2)
|
Car
allowance.
|
(3)
|
Includes
$2,000 for matching contribution under our 401(k) plan, $21,792
in
penalties and interest paid by the Company in connection with
back salary,
and $1,375 paid by the Company into a medical spending account.
|
(4)
|
Includes
$2,000 for matching contribution under our 401(k)
plan.
|
(5)
|
Dr.
Hausman served as Acting Chief Executive Officer from December
8, 2004 to
February 28, 2005 and as Acting Chief Financial Officer from
December 8,
2004 until January 6, 2006. On
September 15, 2006, Dr.
Hausman was
appointed
as
Chairman of the board of directors and our
President
and Chief Executive Officer.
|
(6)
|
Dr.
Hausman did not receive a cash salary for his services as
Chairman and
Acting President, Chief Executive Officer and Chief Financial
Officer in
2004 or 2005. See Director Compensation below for Dr. Hausman’s
compensation as a director. In 2006, under the terms of Dr.
Hausman’s
employment agreement with us, Dr. Hausman may elect to receive
his salary
in the form of common stock at a price equal to 85% of the
market price
(the average closing price for the five trading days preceding
the measurement date), or in the form of a ten year warrant
to purchase
1.5 times the number of shares he would have received in
the foregoing, at
an exercise price equal to such market price.
|
(7)
|
Dr.
Hausman was issued 330,769 shares of common stock on October
12, 2006, as
payment for compensation and expenses owed by us to NW
Medical Research
Partners, Inc., of which Dr. Hausman is the sole member
and manager. The
amount owed was $67,477, and the shares were valued at
approximately
$0.204 per share, and are not subject to repurchase.
|
(8)
|
Dr.
Hausman earned $15,000 pursuant to a consulting agreement with
NW Medical
Research Partners, Inc. Dr. Hausman is the sole member and
manager of NW
Medical Research Partners.
|
(9)
|
Includes
a ten year warrant for the purchase of up to 1,505,000 shares
of common
stock in connection with his employment as President and
CEO. Also
includes stock option grants to Dr. Hausman as an employee
and a director.
Includes
500,000 shares of common stock issued as a signing bonus
in connection
with Dr. Hausman’s employment as President and Chief Executive
Officer.
|
(10)
|
Includes
stock option grants as a director and
consultant.
|
|
|
Number
of
Common Shares
Underlying
Options
|
|
Percent
of Total
Options
Granted
to
Employees
in
|
|
Exercise
|
|
|
|
Potential
Realizable Value at Assumed Annual Rates of Stock Price
Appreciation
for
Option Term ($)
|
||||||||
Name
|
|
Granted
|
|
2006
(1)
|
|
Price
(2)
|
|
Expiration
Date
|
|
5%
(6)
|
|
10%
(6)
|
||||||
Steven
T. Guillen
|
|
|
--
|
|
--
|
|
|
|
--
|
--
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marvin
S. Hausman, M.D.
|
|
|
5,000
495,000
1,505,000
|
(3)
(4)
(5)
|
|
0.1
11.3
34.3
|
%
%
%
|
$
$
$
|
0.27
0.20
0.20
|
|
|
July
31, 2016
November
5, 2016
November
5, 2016
|
|
$
$
$
|
744
54,581
165,950
|
|
$
$
$
|
1,833
134,437
408,742
|
(1)
|
Based
upon a total of 4,388,478 stock options and warrants granted
to all
employees, consultants and directors in
2006.
|
(2)
|
Exercise
prices of granted stock options are equal to the closing
price of our
common stock on the date prior to the date of
grant.
|
(3)
|
Options
for all 5,000 shares become exercisable on August 1, 2007.
|
(4)
|
Options
for 247,500 shares vest and become exercisable quarterly
beginning on
January 15, 2007; the remaining 247,500 shares vest in
eight quarterly
installments beginning on January 15,
2008.
|
(5)
|
Warrant
for the purchase of 1,505,000 shares of common stock vests
and becomes
exercisable in six equal monthly installments, beginning
on the first
vesting date of December 15, 2006, over a 180 day period.
|
(6)
|
There
is no assurance provided to any executive officer or any
other holder of
our securities that the actual stock price appreciation
over the option
term will be at the 5% or 10% assumed annual rates of compounded
stock
price appreciation or at any other defined level. Unless
the market price
of the common stock appreciates over the option term, no
value will be
realized from the option grants made to the named executive
officers.
|
|
|
Shares
of Common Stock Acquired
|
|
Value
|
|
Number
of Securities Underlying Unexercised Options at
December
31, 2006
|
|
Value
of Unexercised
In-the-Money
Options at
December
31, 2006 (3)
|
||||||||||
Name
|
|
on
Exercise
|
|
Realized
|
|
Exercisable
|
|
Unexercisable
|
|
Exercisable
|
|
Unexercisable
|
||||||
Steven
T. Guillen
|
|
|
—
|
|
|
—
|
|
|
575,000
|
|
|
525,000
|
(1)
|
|
—
|
|
|
—
|
Marvin
S. Hausman, M.D.
|
|
|
—
|
|
|
—
|
|
|
711,361
|
|
|
2,003,334
|
(2)
|
$
|
2,508
|
|
|
7,492
|
(1)
|
Options
for 150,000 shares of common stock became exercisable on
February 28,
2006,
with an additional 150,000 shares to become exercisable
annually for two years after this date,
so long as Mr. Guillen continues to serve in the capacity
of either an
employee, outside director or consultant. Options for 200,000
shares of
common stock became exercisable upon grant of a non-qualified
stock option
on December 28, 2005. Options for an additional
75,000 shares of common stock became
exercisable on December 28, 2006,
and shall continue to become exercisable
annually for three years after this date
so
long as Mr. Guillen continues to serve in the capacity of
either an
employee, outside director or consultant.
|
(2)
|
Options
for 12,500 shares of common stock became exercisable on October
12, 2006.
Options for 5,000 shares of common stock became exercisable
on June 22,
2006. Options for 9,000 shares of common stock became exercisable
on
January 5, 2006 and monthly for 8 months after this date. Options
for
300,000 shares of common stock become exercisable on February
27, 2007.
Options for 100,000 shares of common stock become exercisable
on December
28, 2007 and December 28, 2008. Options for 5,000 shares become
exercisable on August 1, 2007. Options for 247,500 shares become
exercisable in quarterly installments starting on February
6, 2007 for a
one year period; options for an additional 247,500 shares become
exercisable in eight quarterly installments over the following
two years.
A warrant for the purchase of an aggregate of 1,505,000 shares
of common
stock becomes exercisable in six consecutive monthly installments
beginning on November 14, 2006.
|
(3)
|
In-the-money
options represents unexercised options having a per share exercise
price
below $0.205, the closing price of our common stock at December
29, 2006.
The value of unexercised in-the-money options equals the number
of
in-the-money options multiplied by the excess of $0.205 over
the per-share
exercise prices of the options. The value of unexercised in-the-money
options at December 31, 2006, may never be realized by the
option
holders.
|
Name
|
Automatic
Options
Issued for
Service on Board
|
Discretionary
Options
|
Total
Options
Granted
|
|||||||
S.
Colin Neill
|
5,000(1
|
)
|
187,500(3
|
)
|
192,500
|
|||||
John
E. Repine, M.D.
|
5,000(1
|
)
|
409,787(4
|
)
|
414,787
|
|||||
Gary
Post
|
35,000(2
|
)
|
1,321,191(5
|
)
|
1,356,191
|
(1)
|
Dr.
Hausman and Dr. Repine were granted options for the purchase
of 5,000
shares on August 1, 2006 as director compensation for 2006.
The exercise
price is based on the closing price of $0.27 on July 31, 2006.
|
(2)
|
Mr.
Post was granted options for the purchase of 30,000 shares
on March 15,
2006 upon becoming a director. The exercise price is based
on the closing
price of $0.31 on March 15, 2006. Mr. Post was also granted
an option for
the purchase of 5,000 shares on August 1, 2006 as director
compensation
for 2006. The exercise price is based on the closing price
of $0.27 on
July 31, 2006.
|
Mr.
Neill was granted a ten-year warrant for the purchase of 187,500
shares on a discretionary basis as compensation for his service
as
chairman of the Audit Committee.
|
(4)
|
Dr.
Repine was granted options for the purchase of 9,787 shares
on October 12,
2006 in lieu of cash compensation under a consulting agreement
with an
exercise price of $0.24 per share, and was granted options
for the
purchase of up to an additional 400,000 shares of common stock
with an
exercise price of $0.20 per share, on a discretionary basis
in
consideration for consulting services under a consulting agreement
dated
November 6, 2006. The exercise prices for the options granted
to Mr.
Repine are based on the closing prices of $0.24 and $0.20 on
October 11,
2006 and November 5, 2006, respectively.
|
(5)
|
On
May 12, 2006, Mr.
Post was granted a ten-year warrant to
purchase 108,000 shares of common stock, vesting in 12 equal
monthly
installments, as compensation for his services as a consultant.
In October
2006, Mr. Post was granted an option for the purchase of
up to 156,250
shares of common stock at an exercise price of $0.24 per
share, which
warrant was immediately vested, in lieu of $25,000 in compensation
owed to
him for his services as a consultant. In November 2006, Mr.
Post was
granted a ten-year warrant to purchase up to 550,000 shares
of common
stock at an exercise price of $0.20 per share, in connection
with an
advisory agreement between us and Ambient Advisors LLC, of
which he is a
principal. In addition, in November 2006, Mr. Post was granted
a
non-qualified option to purchase up to 333,333 shares of
common stock at
$0.20 per share, vesting in six monthly installments over
a 180 day
period, as a sign-on bonus in connection with his retention
as an advisor
to us. Finally, Mr. Post elected to receive a warrant for the purchase of
173,608
shares of common stock at an exercise price of $0.20 per
share,
which
warrant was fully vested, in lieu of cash compensation under
the
advisory agreement between us and Ambient Advisors
|
· |
Mr.
Guillen would serve as our President and Chief Executive Officer;
|
· |
Mr.
Guillen’s initial annual base salary was fixed at $250,000, subject to
annual salary and performance reviews and potential salary increases
at
the sole discretion of the Board;
|
· |
Mr.
Guillen was eligible for a performance-based bonus determined at
the
discretion of the Board, the range of which was expected to be between
25%
and 50% of Mr. Guillen’s annual base salary, depending upon the attainment
of certain goals to be mutually agreed upon between Mr. Guillen and
the
Board;
|
· |
Mr.
Guillen received irrevocable stock option grants in the aggregate
amount
of 600,000 shares of our common stock under our 2003 Stock Incentive
Plan,
and pursuant to a standalone grant outside of the plan;
|
· |
Mr.
Guillen’s options would have an exercise price of $0.40 per share;
|
· |
Mr.
Guillen would be entitled to full vesting of the then-unvested shares
subject to the irrevocable stock option grants upon a “Change of Control”
to include, in general, a merger, consolidation, or reorganization
of the
company, a sale of substantially all of our assets, a corporate
transaction resulting in a change of control of our company, a change
control of our board of directors, or upon Mr. Guillen’s termination of
his employment with our company for “Good Reason” (as the above terms are
defined in the Letter Agreement) (referred to as the “Acceleration
Events”);
|
· |
Mr.
Guillen would purchase 600,000 fully-vested shares of our common
stock, at
the then-current market price of $0.40 per share from the pool of
shares
reserved in our 2003 Stock Incentive Plan;
|
· |
Mr.
Guillen would become a member of our board of directors; and
|
· |
As
further described and qualified in the Letter Agreement, Mr. Guillen
was
entitled to receive certain severance benefits, including payments
equal
to one month of his base salary for a period of 12 months, in the
event
that: (i) we terminated his employment without “cause” (as defined in the
Letter Agreement), (ii) within twelve months after a Change of Control,
Mr. Guillen terminated his employment with “good reason” (as defined in
the Letter Agreement) or (iii) Mr. Guillen’s employment terminated as a
result of his death or disability (each a “Severance Termination”).
|
· |
Mr.
Centron was entitled to a base salary of $150,000 per year with
eligibility for a twenty percent performance based annual
bonus;
|
· |
Mr.
Centron was granted a ten year incentive stock option to purchase
150,000
shares of our common stock at an exercise price of $0.30 per share,
to be
vested as follows: 25% vest immediately, 25% vest on January 6, 2007,
25%
vest on January 6, 2008 and 25% vest on January 6, 2009.
|
· |
Mr.
Centron was entitled to receive certain severance payments and benefits
in
the event that we terminated his employment without “cause”, as defined in
the Letter Agreement, if Mr. Centron terminated his employment with
“good
reason”, as defined in the Letter Agreement, within twelve months after
a
change of control (as defined in our 2003 Incentive Stock Plan),
or in the
event that Mr. Centron’s employment terminated as a result of his death or
disability (any of the above referred to as a “Severance Termination”).
|
· |
In
the event of a Severance Termination, Mr. Centron would have received
a
payment equal to three months of his then effective base salary.
In
addition, the exercise period for any options vested as of the termination
date would have been extended until the later of January 6, 2011
or the
third anniversary of the termination date, provided however that
no
exercise of options would have been allowed after the expiration
of their
term.
|
· |
Dr.
Hausman will serve as our President and Chief Executive Officer for
a
three year term from the commencement date of his employment, and
after
this period, on a year-to-year
basis;
|
· |
Dr.
Hausman will receive annual compensation in the amount of $250,000,
payable quarterly in advance in cash, common stock based on a price
equal
to 85% of average of the five closing prices for the five trading
days
prior to the date that the issuance is authorized by the board of
directors, or in ten year warrants equal to that number of warrants
equal
to 1.5 times the number of shares that would otherwise be
received;
|
· |
For
the initial quarterly payment, Dr. Hausman was issued 347,222 restricted
shares of common stock;
|
· |
During
the three year term of the agreement, Dr. Hausman will receive an
annual
bonus based upon the attainment of agreed upon goals and milestones
as
determined by the board of directors and its compensation committee;
|
· |
During
the remainder of calendar year 2006, Dr. Hausman’s bonus will be pro rated
on an annual bonus rate in the range of 25% to 50% of his base salary,
and
the bonus for subsequent years of the term of the agreement will
be in a
similar target range;
|
· |
The
bonuses payable will be paid in cash, although at Dr. Hausman’s sole
option, they may be paid in stock (or in the form of ten year warrants
with cashless exercise provisions, with 1.5 times the number of warrant
shares to be issued in lieu of the number of shares of common stock),
based upon the average of the closing bid and asked prices for the
5
trading days immediately prior to the awarding to Dr. Hausman of
the bonus
for a particular year;
|
· |
Once
we have raised at least $2.5 million in one or more financings (equity,
debt or convertible debt, in addition to the financing closed on
October
25, 2006) or in a strategic transaction, Dr. Hausman may elect, at
any
time, in lieu of receiving a quarterly issuance of stock (or warrants
in
lieu thereof), to receive his base salary in cash, payable monthly
on our
regular pay cycle for professional employees;
|
· |
As
part of his compensation, we granted Dr. Hausman a ten year a
non-qualified option to purchase 495,000 shares of our common stock
at an
exercise price of $0.20 per share, vesting as follows: (i) 247,500
option
shares vesting in four equal quarterly installments commencing on
January
15, 2007 and every three months thereafter and (ii) and the remaining
247,500 option shares vesting in eight quarterly installments over
two
years;
|
· |
Additionally,
we granted Dr. Hausman, as a sign on bonus, 500,000 restricted shares
of
common stock and a ten year common stock purchase warrant to purchase
1,505,000 shares at an exercise price of $0.20 per share, with vesting
in
six equal installments, commencing on November 14, 2006, through
the
180th
day after the Commencement Date;
|
· |
We
are providing Dr. Hausman with an annual office expense allowance
of
$50,000, for the costs of maintaining an office in the Stevenson,
Washington area, payable quarterly in advance in the form of common
stock,
at a price equal to 85% of the market price;
|
· |
For
the first installment, representing $12,500 of the above office expense
allowance, Dr. Hausman was issued 69,444 restricted shares of common
stock;
|
· |
Once
we have completed a qualifying financing, the above office expense
allowance will be paid in cash in advance, commencing for the quarter
next
following the quarter in which the Qualifying Financing occurred.
|
· |
Additionally,
Dr. Hausman will receive family health and dental insurance benefits
and
short-term and long-term disability policies;
|
· |
Upon
termination for cause, all compensation due to Dr. Hausman under
the
agreement will cease, other than a right to participate in continued
group
health insurance for a certain period of time (this applies to all
terminations, except if Dr, Hausman terminates without good reason)
and
any unexercised portions of his stock options shall expire upon such
termination;
|
· |
In
the event that we terminate Dr. Hausman’s employment within one year of a
change of control, Dr. Hausman shall receive an amount equal to twelve
months of his base salary for the then current term of the agreement
(which is in addition to the base salary paid to Dr. Hausman after
our
delivery of notice of termination and the actual date of termination)
plus
an amount equal to his bonus in the prior year (and if occurring
before
the determination of the 2007 bonus, an amount equal to 50% of the
then
current base salary), and the full vesting of Dr. Hausman’s stock options,
and extended exercisability of the options until their respective
expiration dates.
|
· |
In
the event that we terminate our relationship with Dr. Hausman, including
a
non-renewal of the agreement by us, but other than upon a change
of
control, death, disability or cause, Dr. Hausman shall receive the
following: (i) if employment was terminated during the calendar year
2006,
an amount equal to six months of the then current base salary; if
employment was terminated commencing in the calendar year 2007 or
if we
elect not to renew the agreement, an amount equal to twelve months
of base
salary for the then current term of the agreement plus an amount
equal to
the prior year’s bonus (and if occurring before the bonus for 2007 has
been determined, an amount equal to 50% of the then current base
salary);
(ii) if employment was terminated during the calendar year 2006,
50% of
the previously unvested portion of the Initial Option Grant shall
vest and
such vested options shall be exercisable until their respective expiration
dates; if employment was terminated commencing in the calendar year
2007
and thereafter or if we elect not to renew the agreement following
the
initial three year term or any additional term, all stock options
granted
to Dr. Hausman (including without limitation the Initial Option Grant)
shall immediately vest and shall remain exercisable until their respective
expiration dates.
|
· |
In
the event Dr. Hausman terminates his relationship with us for good
reason
within one (1) year of the occurrence of the event which established
good
reason, or for good reason within one year of a change of control,
Dr.
Hausman shall receive the following: (i) if the termination occurred
during the calendar year 2006 for good reason, an amount equal to
six
months of base salary; if the termination occurred during the calendar
year 2006 due to a change of control, an amount equal to twelve months
of
base salary; if termination for good reason occurred during the calendar
year 2007 or thereafter, an amount equal to twelve months of the
then
current base salary plus an amount equal to the prior year’s bonus (and if
occurring before the bonus for 2007 has been determined, an amount
equal
to 50% of the then current base salary); (ii) if termination occurred
during the calendar year 2006, 50% of the previously unvested portion
of
the Initial Option Grant shall vest and such vested options shall
be
exercisable until their respective expiration dates, except that
if
termination is by Dr. Hausman for good reason subsequent to a change
of
control, then 100% of any option grants to Dr. Hausman (including,
without
limitation, the Initial Option Grant) shall vest and shall remain
exercisable until its respective expiration dates; if employment
was
terminated commencing in the calendar year 2007 and thereafter, all
stock
options granted to Dr. Hausman (including, without limitation, the
Initial
Option Grant) shall immediately vest and shall remain exercisable
until
their respective expiration dates.
|
Name
and Address of Beneficial Owner
|
Number
of Shares of Common Stock Beneficially
Owned
|
Percent of
Shares
of Outstanding Common
Stock
|
|||||
TorreyPines
Therapeutics, Inc. (1)
11085
N. Torrey Pines Road
La
Jolla, CA 92037
|
16,386,647
|
36.80
|
%
|
||||
Bristol
Investment Fund, Ltd. (2)
Bristol
Capital Advisors, LLC
10990
Wilshire Boulevard, Suite 1410
Los
Angeles, CA 90024
|
13,472,994
|
25.57
|
%
|
||||
Alpha
Capital Anstalt (3)
c/o
LH Financial
150
Central Park South, 2nd
Floor
New
York, NY 10019
|
5,737,143
|
12.01
|
%
|
||||
Whalehaven
Capital Fund Limited (4)
3rd
Floor, 14 Par-La-Ville Rd.
P.
O. Box HM1027
Hamilton
HMDX Bermuda
|
4,302,857
|
9.01
|
%
|
||||
Cranshire
Capital, LP (5)
3100
Dundee Rd., Suite 703
Northbrook,
IL 60062
|
4,717,791
|
9.99
|
%
|
||||
Marvin
S. Hausman, M.D. (6)
|
17,410,717
|
38.22
|
%
|
||||
S.
Colin Neill (7)
|
181,875
|
*
|
|||||
Steven
T. Guillen (8)
|
1,175,000
|
2.61
|
%
|
||||
John
E. Repine, M.D. (9)
|
233,387
|
0.52
|
%
|
||||
Gary
M. Post (10)
|
688,275
|
1.52
|
%
|
||||
Executive
officers and directors as a group — 5 persons (11)
|
19,689,254
|
41.73
|
%
|
*
|
Less
than one percent.
|
(1)
|
Based
in part on a Schedule 13D/A filed with the SEC on March 5, 2004,
filed on
behalf of Axonyx Inc., which was acquired by TorreyPines Therapeutics
in
October 2006, and Dr. Hausman. Pursuant to the Schedule 13D/A Axonyx
has
sole voting power as to 13,982,567 and (with a correction to the
number of
shares reported in such Schedule 13D/A as being held by Dr. Hausman)
shared voting power as to 16,386,647 shares. In addition, Axonyx
has sole
dispositive power as to 13,982,567 shares and (with a correction
to the
number of shares reported in such Schedule 13D/A as being held by
Dr.
Hausman) shared dispositive power as to 16,386,647 shares. Axonyx
in the
Schedule 13D/A disclaims beneficial ownership of Dr. Hausman’s
shares.
|
|
(2)
|
The
holdings of Bristol Investment Fund, Ltd. include 3,867,925 shares
of
common stock, 1,434,286 shares issuable upon the voluntary conversion
by
Bristol Investment Fund of a secured convertible debenture at the
current
conversion price of $0.35 per share, warrants to purchase 1,933,963
shares
of common stock at a price of $0.66 per share, warrants to purchase
1,933,962 shares of common stock at a purchase price of $1.00 per
share,
warrants to purchase 2,868,572 shares of common stock at a purchase
price
of $0.35 per share, and warrants to purchase 1,434,286 shares of
common
stock at a purchase price of $0.385 per share. Paul Kessler, manager
of
Bristol Capital Advisors, LLC, the investment advisor to Bristol
Investment Fund, Ltd., has voting and investment control over the
securities held by Bristol Investment Fund, Ltd. Mr. Kessler disclaims
beneficial ownership of these
securities.
|
(3)
|
The
holdings of Alpha Capital Anstalt include 1,434,286 shares issuable
upon
the voluntary conversion by Alpha Capital Anstalt of a secured convertible
debenture at the current conversion price of $0.35 per share, warrants
to
purchase 2,868,572 shares of common stock at a purchase price of
$0.35 per
share, and warrants to purchase 1,434,286 shares of common stock
at a
purchase price of $0.385 per share.
|
|
(4)
|
The
holdings of Whalehaven Capital Fund Limited include 1,075,714 shares
issuable upon the voluntary conversion by Whalehaven Capital Fund
of a
secured convertible debenture at the current conversion price of
$0.35 per
share, warrants to purchase 2,151,428 shares of common stock at a
purchase
price of $0.35 per share, and warrants to purchase 1,075,714 shares
of
common stock at a purchase price of $0.385 per share.
|
|
(5)
|
The
holdings of Cranshire Capital, LP. include 896,429 shares issuable
upon
the voluntary conversion by Cranshire Capital of a secured convertible
debenture at the current conversion price of $0.35 per share, warrants
to
purchase 283,019 shares of common stock at a price of $0.66 per share,
warrants to purchase 283,019 shares of common stock at a purchase
price of
$1.00 per share, warrants to purchase 1,792,857 shares of common
stock at
a purchase price of $0.35 per share, and warrants to purchase 896,428
shares of common stock at a purchase price of $0.385 per
share. Mitchell P. Kopin, the President of Downsview Capital, Inc.,
the General Partner of Cranshire Capital, L.P., has sole investment
power
and voting control over the securities held by Cranshire Capital,
L.P.
|
|
(6)
|
The
holdings of Marvin S. Hausman, M.D. include 2,404,080 shares of common
stock, 271,570 shares issuable upon exercise of options that are
exercisable currently or within 60 days of December 1, 2006, 752,500
warrant shares exercisable currently or within 60 days of December
1,
2006, and 13,982,567 shares held by TorreyPine Therapeutics, which
acquired Axonyx Inc. in October 2006. Dr. Hausman has sole dispositive
power as to 2,404,080 shares and shared dispositive power as to 16,386,647
shares, including 13,982,567 shares held by TorreyPine Therapeutics.
Dr.
Hausman is a director of TorreyPine Therapeutics. Dr. Hausman in
the
Schedule 13D/A disclaims beneficial ownership of TorreyPine’s shares.
|
|
(7)
|
The
holdings of S. Colin Neill include 135,000 shares issuable upon exercise
of options that are exercisable currently or within 60 days of December
1,
2006, and 46,875 warrant shares exercisable currently or within 60
days of
December 1, 2006.
|
|
(8)
|
The
holdings of Steven T. Guillen include 600,000 shares of common stock
and
575,000 shares issuable upon exercise of options that are exercisable
currently or within 60 days of December 1,
2006.
|
(9)
|
The
holdings of director John E. Repine include 50,000 shares of common
stock
and 183,387 shares issuable upon exercise of options that are exercisable
currently or within 60 days of December 1, 2006.
|
|
(10)
|
The
holdings of director Gary M. Post include 337,917 shares issuable
upon
exercise of options that are exercisable currently or within 60 days
of
December 1, 2006 and 350,358 warrant shares exercisable currently
or
within 60 days of December 1, 2006.
|
|
(11)
|
The
holdings of the executive officers and directors as a group include
an
aggregate 17,036,647 shares of common stock, 1,502,874 shares issuable
upon exercise of options that are exercisable currently or within
60 days
of December 1, 2006 and 1,149,733 warrant shares exercisable currently
or
within 60 days of December 1, 2006.
|
Name
and address
|
Number
of Shares of Series C Preferred Stock Beneficially
Owned
|
Percent of
class
(1)
|
|||||
American
Health Care Fund, L.P.
|
77,000
|
80
|
%
|
||||
2748
Adeline, Suite A
|
|||||||
Berkeley,
CA 94703 (1)
|
|||||||
Megapolis
BV
|
19,230
|
20
|
%
|
||||
Javastraaat
10
|
|||||||
2585
The Hague, Netherlands (1)
|
(1)
|
As
required by SEC rules, the number of shares in the table includes
shares
which can be purchased within 60 days, or, shares with respect to
which a
person may obtain voting power or investment power within 60 days.
Also
required by such regulations, each percentage reported in the table
for
these individuals is calculated as though shares which can be purchased
within 60 days have been purchased by the respective person or group
and
are outstanding.
|
Plan
Category
|
Number
of Securities to
be
Issued Upon Exercise of Outstanding 0ptions,
Warrants
and Rights (a)
|
Weighted-Average
Exercise Price of Outstanding Options, Warrants and
Rights
(b)
|
Number
of Securities Remaining Available for Future Issuance Under Equity
Compensation Plans (Excluding Securities Reflected in Column (a))
(c)
|
|||||||
Equity
compensation plans approved by security holders (1)
|
4,874,352
|
$
|
0.70
|
493,270
|
||||||
Equity
compensation plans not approved by security holders (2)
|
1,503,438
|
$
|
0.26
|
—
|
||||||
Total
|
6,377,790
|
493,270
|
|
·
|
|
acquisition
of us by means of a tender offer;
|
|
·
|
|
acquisition
of us by means of a proxy contest or otherwise; or
|
|
·
|
|
removal
of our incumbent officers and directors.
|
|
·
|
|
Undesignated
Preferred Stock. The
ability to authorize undesignated preferred stock makes it possible
for
our board of directors to issue one or more series of preferred stock
with
voting or other rights or preferences that could impede the success
of any
attempt to change control of us. These and other provisions may have
the
effect of deterring hostile takeovers or delaying changes in control
or
management of our company.
|
|
·
|
|
Stockholder
Meetings. Our
charter documents provide that a special meeting of stockholders
may be
called only by the chairman of the board, by our president, or by
a
resolution adopted by a majority of our board of directors.
|
|
·
|
|
Requirements
for Advance Notification of Stockholder Nominations and
Proposals. Our
bylaws establish advance notice procedures with respect to stockholder
proposals and the nomination of candidates for election as directors,
other than nominations made by or at the direction of the board of
directors or a committee of the board of directors.
|
|
·
|
|
No
Stockholder Action by Written Consent. Under
our certificate of incorporation, our stockholders may not act by
written
consent without a meeting.
|
|
·
|
|
Board
of Directors. Our
certificate of incorporation and bylaws provide that, subject to
any
rights of holders of preferred stock to elect additional directors
under
specified circumstances, the number of directors will be fixed from
time
to time exclusively by resolution by the board of directors. In addition,
subject to any rights of holders of preferred stock, newly created
directorships resulting from any increase in the number of directors
and
any vacancies on the board of directors resulting from death, resignation,
disqualification, removal or other cause will be filled by the affirmative
vote of a majority of the remaining directors then in office, even
if less
than a quorum, and not by the stockholders. No decrease in the number
of
directors constituting the board of directors will shorten the term
of any
incumbent director. Subject to the rights of holders of preferred
stock,
generally any director may be removed from office by the affirmative
vote
of the holders of at least a majority of our outstanding common stock.
|
|
·
|
|
Supermajority
Approval of Certain Corporate Actions. Under
our certificate of incorporation, the affirmative vote of two-thirds
of
our outstanding stock is required for us to take the following actions:
(a) to approve the lease, sale, exchange or transfer or other disposition
of all or substantially all of our assets or business to a related
company
or its affiliate; to consolidate or merge with a related company
or its
affiliate; or to acquire substantially all of the assets of a corporation,
or the securities representing such assets, in which we are the acquiring
corporation and our voting shares are issued or transferred to a
related
company or its affiliate, or to stockholders of a related company,
its
affiliate or an associated person; (b) to approve any agreement providing
for any action in (a), or (c) to amend our certificate of incorporation
to
change the provisions of the section that requires supermajority
approval
of such actions. For purposes of this section, “related company” is
defined as any person or entity which together with affiliates or
associated persons, owns 10% of our outstanding shares. In addition,
with
respect to any such transaction, our stockholders will be entitled
to
dissenting stockholder rights under Section 262 of the Delaware General
Corporation Law or as provided for in our certificate of
incorporation.
|
|
·
|
|
No
Cumulative Voting.
Our certificate of incorporation and bylaws do not provide for cumulative
voting in the election of directors. Cumulative voting provides for
a
minority stockholder to vote a portion or all of its shares for one
or
more candidates for seats on the board of directors. Without cumulative
voting, a minority stockholder will not be able to gain as many seats
on
our board of directors based on the number of shares of our stock
that
such stockholder holds than if cumulative voting were permitted and
makes
it more difficult for a minority stockholder to gain a seat on our
board
of directors to influence the board of directors’ decision regarding a
takeover.
|
|
·
|
|
prior
to the date of the transaction, the board of directors of the corporation
approved either the business combination or the transaction which
resulted
in the stockholder becoming an interested stockholder;
|
|
·
|
|
upon
consummation of the transaction which resulted in the stockholder
becoming
an interested stockholder, the interested stockholder owned at least
85%
of the voting stock of the corporation outstanding at the time the
transaction commenced, excluding for purposes of determining the
number of
shares outstanding those shares owned by persons who are directors
and
also officers and by employee stock plans in which employee participants
do not have the right to determine confidentially whether shares
held
subject to the plan will be tendered in a tender or exchange offer;
or
|
|
·
|
|
on
or subsequent to the date of the transaction, the business combination
is
approved by the board of directors and authorized at an annual or
special
meeting of stockholders, and not by written consent, by the affirmative
vote of at least two-thirds of the outstanding voting stock which
is not
owned by the interested stockholder.
|
|
·
|
|
any
merger or consolidation involving the corporation and the interested
stockholder;
|
|
·
|
|
any
sale, transfer, pledge or other disposition of 10% or more of our
assets
involving the interested stockholder;
|
|
·
|
|
in
general, any transaction that results in the issuance or transfer
by us of
any of our stock to the interested stockholder;
|
|
·
|
|
in
general, any transaction that has the effect of increasing the
proportionate share of our stock of any class or series to be owned
by the
interested stockholder; or
|
|
·
|
|
the
receipt by the interested stockholder of the benefit of any loans,
advances, guarantees, pledges or other financial benefits provided
by or
through the corporation.
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
F-2
|
Consolidated
Balance Sheets for the years ended December 31, 2005 and
2004
|
F-3
|
Consolidated
Statements of Operations for the years ended December 31, 2005 and
2004
|
F-4
|
Consolidated
Statement of Stockholders’ Equity for the years ended December 31, 2005
and 2004
|
F-5
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2005 and
2004
|
F-6
|
Notes
to Consolidated Financial Statements for the years ended December
31, 2005
and 2004
|
F-7
|
Consolidated
Balance Sheets as of September 30, 2006 (Unaudited) and December
31,
2005
|
F-31
|
Consolidated
Statements of Operations for the periods ended September 30, 2006
and 2005
(Unaudited)
|
F-32
|
Consolidated
Statements of Cash Flows for the periods ended September 30, 2006
and 2005
(Unaudited)
|
F-33
|
Condensed
Notes to Consolidated Financial Statements for the period ending
September
30, 2006
|
F-34
|
December
31,
|
|||||||
2005
|
2004
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
614
|
$
|
4,687
|
|||
Accounts
receivable, net of allowance of $2 and $7, respectively
|
865
|
229
|
|||||
Private
placement proceeds receivable
|
—
|
2,250
|
|||||
Inventories
|
650
|
246
|
|||||
Prepaid
expenses and other current assets
|
238
|
128
|
|||||
Deferred
tax assets
|
14
|
—
|
|||||
Restricted
cash
|
3,060
|
—
|
|||||
Total
current assets
|
5,441
|
7,540
|
|||||
Property,
plant and equipment, net
|
243
|
61
|
|||||
Patents,
net
|
831
|
875
|
|||||
Goodwill
and other assets, net
|
1,291
|
—
|
|||||
$
|
7,806
|
$
|
8,476
|
||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
505
|
$
|
491
|
|||
Accrued
expenses
|
468
|
829
|
|||||
Accounts
payable to related party
|
194
|
—
|
|||||
Note
payable
|
3,060
|
—
|
|||||
Notes
payable to stockholders
|
—
|
1,360
|
|||||
Total
current liabilities
|
4,227
|
2,680
|
|||||
Long-term
deferred taxes
|
41
|
—
|
|||||
Total
liabilities
|
4,268
|
2,680
|
|||||
Minority
interest
|
604
|
—
|
|||||
Commitments
and contingencies
|
—
|
—
|
|||||
Stockholders’
equity:
|
|||||||
Convertible
preferred stock - $0.01 par value; 15,000,000 shares
authorized:
|
|||||||
Series
B - None and 428,389 shares issued and outstanding at December 31,
2005
and 2004, respectively (aggregate liquidation preference of
$1,000)
|
—
|
4
|
|||||
Series
C - 96,230 shares issued and outstanding
|
1
|
1
|
|||||
Common
stock - $0.001 par value; 95,000,000 shares authorized; 42,538,397
shares
issued and outstanding at December 31, 2005 and 28,807,040 shares
issued
and outstanding and 12,264,158 issuable at December 31,
2004
|
43
|
41
|
|||||
Additional
paid-in capital
|
68,686
|
68,437
|
|||||
Accumulated
deficit
|
(65,379
|
)
|
(62,270
|
)
|
|||
Accumulated
other comprehensive loss
|
(417
|
)
|
(417
|
)
|
|||
Total
stockholders’ equity
|
2,934
|
5,796
|
|||||
$
|
7,806
|
$
|
8,476
|
Years
Ended December 31,
|
|||||||
2005
|
2004
|
||||||
Product
revenues
|
$
|
2,397
|
$
|
1,914
|
|||
License
revenues
|
100
|
450
|
|||||
Total
revenue
|
2,497
|
2,364
|
|||||
Cost
of product revenues
|
1,345
|
1,216
|
|||||
Gross
profit
|
1,152
|
1,148
|
|||||
Operating
expenses:
|
|||||||
Research
and development
|
499
|
278
|
|||||
Selling,
general and administrative
|
2,342
|
1,843
|
|||||
Purchased
in-process research and development
|
1,500
|
—
|
|||||
Foreign
legal proceedings
|
—
|
183
|
|||||
Restructuring
charges
|
—
|
605
|
|||||
Total
operating expenses
|
4,341
|
2,909
|
|||||
Loss
from operations
|
(3,189
|
)
|
(1,761
|
)
|
|||
Other
income (expenses):
|
|||||||
Interest
income
|
110
|
1
|
|||||
Other
income
|
4
|
19
|
|||||
Financing
fees
|
—
|
(856
|
)
|
||||
Interest
expense
|
(26
|
)
|
(101
|
)
|
|||
Total
other income and expenses
|
88
|
(937
|
)
|
||||
Minority
interest in subsidiary
|
(6
|
)
|
—
|
||||
Loss
before provision for income taxes
|
(3,107
|
)
|
(2,698
|
)
|
|||
Provision
for income taxes
|
(2
|
)
|
—
|
||||
Net
loss
|
(3,109
|
)
|
(2,698
|
)
|
|||
Other
comprehensive loss
-
foreign
currency translation adjustment
|
—
|
(26
|
)
|
||||
Comprehensive
loss
|
$
|
(3,109
|
)
|
$
|
(2,724
|
)
|
|
Net
loss per share - basic and diluted
|
$
|
(0.07
|
)
|
$
|
(0.10
|
)
|
|
Weighted
average shares outstanding
-
basic and diluted
|
42,213,275
|
26,828,289
|
Accumulated
|
|||||||||||||||||||||||||
Additional
|
Other
|
Total
|
|||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-in
|
Accumulated
|
Comprehensive
|
Stockholders’
|
||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Loss
|
Equity
|
||||||||||||||||||
Balance,
December 31, 2003
|
524,619
|
$
|
5
|
26,427,910
|
$
|
26
|
$
|
60,724
|
$
|
(59,572
|
)
|
$
|
(391
|
)
|
$
|
792
|
|||||||||
Exercise
of stock options
|
791,532
|
1
|
136
|
137
|
|||||||||||||||||||||
Issuance
of common stock for services
|
66,666
|
46
|
46
|
||||||||||||||||||||||
Stock
compensation expense for
|
|||||||||||||||||||||||||
options
issued to non-employees
|
44
|
44
|
|||||||||||||||||||||||
Conversion
of note payable into
|
|||||||||||||||||||||||||
common
stock and issuance
|
|||||||||||||||||||||||||
of
related warrants
|
1,520,932
|
2
|
1,379
|
1,381
|
|||||||||||||||||||||
Issuable
common stock and warrants
|
|||||||||||||||||||||||||
in
private placement
|
12,264,158
|
12
|
6,108
|
6,120
|
|||||||||||||||||||||
Net
loss
|
(2,698
|
)
|
(2,698
|
)
|
|||||||||||||||||||||
Other
comprehensive loss
|
(26
|
)
|
(26
|
)
|
|||||||||||||||||||||
Balance,
December 31, 2004
|
524,619
|
5
|
41,071,198
|
41
|
68,437
|
(62,270
|
)
|
(417
|
)
|
5,796
|
|||||||||||||||
Cost
of registration statement related
|
|||||||||||||||||||||||||
to
private placement
|
(302
|
)
|
(302
|
)
|
|||||||||||||||||||||
Exercise
of stock options
|
322,166
|
45
|
45
|
||||||||||||||||||||||
Issuance
of common stock
|
600,000
|
1
|
239
|
240
|
|||||||||||||||||||||
Stock
compensation expense for
|
|||||||||||||||||||||||||
options
issued to non-employees
|
20
|
20
|
|||||||||||||||||||||||
Conversion
of stockholder note payable
|
|||||||||||||||||||||||||
into
common stock
|
459,355
|
1
|
243
|
244
|
|||||||||||||||||||||
Conversion
of Series B preferred stock
|
|||||||||||||||||||||||||
into
common stock
|
(428,389
|
)
|
(4
|
)
|
85,678
|
4
|
—
|
||||||||||||||||||
Net
loss
|
(3,109
|
)
|
(3,109
|
)
|
|||||||||||||||||||||
Balance,
December 31, 2005
|
96,230
|
$
|
1
|
42,538,397
|
$
|
43
|
$
|
68,686
|
$
|
(65,379
|
)
|
$
|
(417
|
)
|
$
|
2,934
|
Years
Ended December 31,
|
|||||||
2005
|
2004
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
loss
|
$
|
(3,109
|
)
|
$
|
(2,698
|
)
|
|
Adjustments
to reconcile net loss to net cash used
in operating activities:
|
|||||||
Depreciation
of property, plant and equipment
|
28
|
21
|
|||||
Amortization
of intangible assets
|
126
|
152
|
|||||
Purchased
in-process research and development expense
|
1,500
|
—
|
|||||
Write-off
of capitalized patent costs
|
105
|
—
|
|||||
Stock
compensation expense
|
20
|
90
|
|||||
Common
stock issued for accrued interest
|
—
|
38
|
|||||
Amortization
of deferred financing costs
|
—
|
654
|
|||||
Common
stock warrants issued for financing fees
|
—
|
202
|
|||||
Minority
interest in subsidiary
|
6
|
—
|
|||||
Changes
in assets and liabilities:
|
|||||||
Accounts
receivable
|
(26
|
)
|
22
|
||||
Inventories
|
(108
|
)
|
49
|
||||
Prepaid
expenses and other current assets
|
(62
|
)
|
11
|
||||
Other
assets
|
—
|
30
|
|||||
Accounts
payable
|
(152
|
)
|
(118
|
)
|
|||
Accrued
expenses
|
(431
|
)
|
505
|
||||
Accounts
payable to related party
|
10
|
—
|
|||||
Net
cash used by operating activities
|
(2,093
|
)
|
(1,042
|
)
|
|||
Cash
flows from investing activities:
|
|||||||
Acquisition
of common shares of subsidiary
|
(3,215
|
)
|
—
|
||||
Investment
in restricted certificate of deposit
|
(3,060
|
)
|
—
|
||||
Cash
acquired in business combination
|
407
|
—
|
|||||
Capital
expenditures
|
(33
|
)
|
(47
|
)
|
|||
Increase
in patents
|
(172
|
)
|
(262
|
)
|
|||
Net
cash used by investing activities
|
(6,073
|
)
|
(309
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Collection
of private placement proceeds receivable,
net
of registration statement costs
|
1,948
|
—
|
|||||
Proceeds
from issuance of stock and related warrants,
net
of financing charges
|
—
|
3,870
|
|||||
Proceeds
from short-term borrowings and issuance of
related
warrant, net of financing charges
|
—
|
486
|
|||||
Proceeds
from issuance of common stock
|
240
|
—
|
|||||
Proceeds
from exercise of stock options
|
45
|
136
|
|||||
Proceeds
from short-term borrowing
|
3,060
|
1,200
|
|||||
Repayment
of short-term borrowings
|
(1,200
|
)
|
—
|
||||
Net
cash provided by financing activities
|
4,093
|
5,692
|
|||||
Other
comprehensive gain (loss) - foreign currency translation
|
—
|
(26
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
(4,073
|
)
|
4,315
|
||||
Cash
and cash equivalents at beginning of year
|
4,687
|
372
|
|||||
Cash
and cash equivalents at end of year
|
$
|
614
|
$
|
4,687
|
Balance
at Beginning of Period
|
Additions
|
Deductions
|
Balance
at End of Period
|
||||||||||
Year
ended December 31, 2004
|
$
|
4,000
|
$
|
3,000
|
$
|
—
|
$
|
7,000
|
|||||
Year
ended December 31, 2005
|
7,000
|
—
|
(5,000
|
)
|
2,000
|
Year
Ended December 31,
|
|||||||
2005
|
2004
|
||||||
Net
loss as reported
|
$
|
(3,109,000
|
)
|
$
|
(2,698,000
|
)
|
|
Stock-based
employee compensation expense determined using the fair value method
for
all awards
|
(195,000
|
)
|
(324,000
|
)
|
|||
Pro
forma net loss
|
$
|
(3,304,000
|
)
|
$
|
(3,022,000
|
)
|
|
Net
loss per share:
|
|||||||
Basic
and diluted - as reported
|
$
|
(0.07
|
)
|
$
|
(0.10
|
)
|
|
Basic
and diluted - pro forma
|
$
|
(0.08
|
)
|
$
|
(0.11
|
)
|
Cash
|
$
|
407,000
|
||
Accounts
receivable
|
610,000
|
|||
Inventory
|
296,000
|
|||
Other
current assets
|
62,000
|
|||
Property,
plant and equipment
|
177,000
|
|||
In-process
research and development (expensed)
|
1,500,000
|
|||
Patents
and other assets
|
107,000
|
|||
Goodwill
|
1,199,000
|
|||
Minority
interest
|
(598,000
|
)
|
||
Assumed
liabilities
|
(423,000
|
)
|
||
Total
acquisition costs
|
$
|
3,337,000
|
2005
|
|
2004
|
|||||
Revenues
|
$
|
6,299,000
|
$
|
6,441,000
|
|||
Net
loss
|
$
|
(1,492,000
|
)
|
$
|
(4,052,000
|
)
|
|
Net
loss per share - basic and diluted
|
$
|
(0.04
|
)
|
$
|
(0.15
|
)
|
December
31,
|
|||||||
2005
|
2004
|
||||||
Raw
materials
|
$
|
304,000
|
$
|
121,000
|
|||
Work
in process
|
185,000
|
23,000
|
|||||
Finished
goods
|
161,000
|
102,000
|
|||||
$
|
650,000
|
$
|
246,000
|
December
31,
|
|||||||
2005
|
2004
|
||||||
Laboratory
and manufacturing equipment
|
$
|
1,165,000
|
$
|
655,000
|
|||
Furniture
and office equipment
|
408,000
|
295,000
|
|||||
Leasehold
improvements
|
105,000
|
63,000
|
|||||
1,678,000
|
1,013,000
|
||||||
Accumulated
depreciation
|
(1,435,000
|
)
|
(952,000
|
)
|
|||
$
|
243,000
|
$
|
61,000
|
December
31,
|
|||||||
2005
|
|
2004
|
|||||
Capitalized
patent costs
|
$
|
1,114,000
|
$
|
1,039,000
|
|||
Accumulated
amortization
|
(283,000
|
)
|
(164,000
|
)
|
|||
$
|
831,000
|
$
|
875,000
|
2006
|
$
|
126,000
|
||
2007
|
125,000
|
|||
2008
|
114,000
|
|||
2009
|
97,000
|
|||
2010
|
94,000
|
|||
Thereafter
|
275,000
|
|||
Total
amortization
|
$
|
831,000
|
December
31,
|
|||||||
2005
|
2004
|
||||||
Goodwill
|
$
|
1,199,000
|
$
|
—
|
|||
Strategic
investments
|
75,000
|
—
|
|||||
Lease
deposits
|
17,000
|
—
|
|||||
$
|
1,291,000
|
$
|
—
|
December
31,
|
|||||||
2005
|
2004
|
||||||
Note
payable to KeyBank, N.A.
|
$
|
3,060,000
|
$
|
—
|
|||
Note
payable to Axonyx, Inc., stockholder
|
—
|
1,200,000
|
|||||
Note
payable to stockholder
|
—
|
160,000
|
|||||
Total
debt
|
$
|
3,060,000
|
$
|
1,360,000
|
Operating
Leases
|
||||||||||
Minimum
Rental
|
Sublease
Rental
|
Net
Rental Payments
|
||||||||
2006
|
$
|
265,000
|
$
|
(38,000
|
)
|
$
|
227,000
|
|||
2007
|
239,000
|
(38,000
|
)
|
201,000
|
||||||
2008
|
246,000
|
(38,000
|
)
|
208,000
|
||||||
$
|
750,000
|
$
|
(114,000
|
)
|
$
|
636,000
|
Number
of Options
|
Weighted
Average Exercise
Price
|
||||||
Outstanding,
December 31, 2003
|
4,486,079
|
$
|
0.78
|
||||
Granted
|
1,139,720
|
0.54
|
|||||
Exercised
|
(791,532
|
)
|
(0.17
|
)
|
|||
Forfeited
|
(161,404
|
)
|
(2.96
|
)
|
|||
Outstanding,
December 31, 2004
|
4,672,863
|
0.75
|
|||||
Granted
|
2,671,000
|
0.33
|
|||||
Exercised
|
(322,166
|
)
|
(0.14
|
)
|
|||
Forfeited
|
(643,907
|
)
|
(0.76
|
)
|
|||
Outstanding,
December 31, 2005
|
6,377,790
|
$
|
0.60
|
||||
Exercisable
options:
|
|||||||
December 31,
2004
|
4,137,419
|
$
|
0.78
|
||||
December 31,
2005
|
4,040,290
|
$
|
0.75
|
Options
Approved by
Stockholders
|
Options
Not Approved by
Stockholders
|
Total
Outstanding Options
|
||||||||
Outstanding
options:
|
||||||||||
December 31,
2004
|
4,269,425
|
403,438
|
4,672,863
|
|||||||
December 31,
2005
|
4,874,352
|
1,503,438
|
6,377,790
|
Outstanding
Options
|
Exercisable
Options
|
|||||||||||||||
Range
of
Exercise
Prices
|
Number
of
Options
|
Weighted-Average
Remaining Contractual
Life
|
Weighted-Average
Exercise
Price
|
Number
of
Options
|
Weighted-Average
Exercise
Price
|
|||||||||||
$0.08
to $0.15
|
1,007,588
|
6.99
|
$
|
0.13
|
1,007,588
|
$
|
0.13
|
|||||||||
$0.22
to $0.53
|
4,128,952
|
8.70
|
0.33
|
1,872,702
|
0.35
|
|||||||||||
$0.56
to $1.38
|
777,700
|
8.09
|
0.61
|
696,450
|
0.61
|
|||||||||||
$1.59
to $3.44
|
326,750
|
3.52
|
2.28
|
326,750
|
2.28
|
|||||||||||
$4.53
to $11.41
|
136,800
|
0.67
|
7.97
|
136,800
|
7.97
|
|||||||||||
6,377,790
|
7.92
|
$
|
0.60
|
4,040,290
|
$
|
0.75
|
2004
|
||||
Legal
fees
|
$
|
196,000
|
||
Management
consulting
|
34,000
|
|||
Travel
|
8,000
|
|||
Executive
search
|
22,000
|
|||
Severance
expenses
|
345,000
|
|||
$
|
605,000
|
December
31,
|
|||||||
2005
|
2004
|
||||||
Deferred
tax assets:
|
|||||||
Federal
net operating loss carryforward
|
$
|
5,731,000
|
$
|
5,009,000
|
|||
Temporary
deferred tax asset caused by capitalized research and development
expenses
|
5,883,000
|
5,898,000
|
|||||
Federal
R&D tax credit carryforward
|
412,000
|
457,000
|
|||||
State
net operating loss carryforward and capitalized research and development
expenses
|
1,393,000
|
1,246,000
|
|||||
Other
|
55,000
|
80,000
|
|||||
Deferred
tax liabilities - book basis in excess and of noncurrent assets acquired
in purchase transactions
|
(142,000
|
)
|
(142,000
|
)
|
|||
Deferred
tax assets before valuation
|
13,332,000
|
12,548,000
|
|||||
Valuation
allowance
|
(13,332,000
|
)
|
(12,548,000
|
)
|
|||
Net
deferred income tax assets
|
$
|
—
|
$
|
—
|
Year
of Expiration
|
United
States Net Operating Loss Carryforward
|
R&D
Tax Credit Carryforward
|
|||||
2006
|
$
|
44,000
|
$
|
176,000
|
|||
2007
|
4,000
|
18,000
|
|||||
2008
|
675,000
|
6,000
|
|||||
2009
|
29,000
|
30,000
|
|||||
2010-2015
|
16,103,000
|
181,000
|
|||||
$
|
16,855,000
|
$
|
411,000
|
Year
Ended December 31,
|
|||||||
2005
|
2004
|
||||||
North
America
|
$
|
1,553,000
|
$
|
1,142,000
|
|||
EMEA
|
493,000
|
427,000
|
|||||
Latin
America
|
7,000
|
10,000
|
|||||
Asia
Pacific
|
344,000
|
335,000
|
|||||
Total
|
$
|
2,397,000
|
$
|
1,914,000
|
September
30, 2006
(Unaudited)
|
December
31, 2005
|
||||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
677,000
|
$
|
614,000
|
|||
Accounts
receivable, net
|
894,000
|
865,000
|
|||||
Inventories,
net
|
554,000
|
650,000
|
|||||
Prepaid
expenses and other current assets
|
83,000
|
238,000
|
|||||
Deferred
tax assets
|
13,000
|
14,000
|
|||||
Restricted
cash
|
3,060,000
|
3,060,000
|
|||||
Total
current assets
|
5,281,000
|
5,441,000
|
|||||
Property,
plant and equipment, net
|
252,000
|
243,000
|
|||||
Patents,
net
|
796,000
|
831,000
|
|||||
Goodwill
and other assets
|
1,299,000
|
1,291,000
|
|||||
$
|
7,628,000
|
$
|
7,806,000
|
||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable
|
$
|
819,000
|
$
|
505,000
|
|||
Accrued
expenses
|
682,000
|
468,000
|
|||||
Accounts
payable to related party
|
129,000
|
194,000
|
|||||
Notes
payable to related party
|
200,000
|
—
|
|||||
Taxes
payable
|
115,000
|
—
|
|||||
Notes
payable
|
3,345,000
|
3,060,000
|
|||||
Total
current liabilities
|
5,290,000
|
4,227,000
|
|||||
Long-term
deferred taxes
|
41,000
|
41,000
|
|||||
Total
liabilities
|
5,331,000
|
4,268,000
|
|||||
Minority
interest in subsidiary
|
778,000
|
604,000
|
|||||
Stockholders’
equity:
|
|||||||
Convertible
preferred stock - $0.01 par value; 15,000,000 shares authorized;
Series C
- 96,230 shares issued and outstanding
|
1,000
|
1,000
|
|||||
Common
stock- $0.001 par value; 150,000,000 shares authorized; 43,124,485
and
42,538,397 shares issued and outstanding at September 30, 2006 and
December 31, 2005, respectively
|
43,000
|
43,000
|
|||||
Additional
paid-in capital
|
69,193,000
|
68,686,000
|
|||||
Accumulated
deficit
|
(67,301,000
|
)
|
(65,379,000
|
)
|
|||
Accumulated
other comprehensive loss
|
(417,000
|
)
|
(417,000
|
)
|
|||
Total
stockholders’ equity
|
1,519,000
|
2,934,000
|
|||||
$
|
7,628,000
|
$
|
7,806,000
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Product
revenues
|
$
|
1,462,000
|
$
|
532,000
|
$
|
4,331,000
|
$
|
1,718,000
|
|||||
License
revenues
|
50,000
|
—
|
50,000
|
—
|
|||||||||
Total
revenues
|
1,512,000
|
532,000
|
4,381,000
|
1,718,000
|
|||||||||
Cost
of product revenues
|
725,000
|
333,000
|
2,374,000
|
906,000
|
|||||||||
Gross
profit
|
787,000
|
199,000
|
2,007,000
|
812,000
|
|||||||||
Operating
expenses:
|
|||||||||||||
Research
and development
|
207,000
|
69,000
|
598,000
|
191,000
|
|||||||||
Selling,
general and administrative
|
953,000
|
470,000
|
2,854,000
|
1,551,000
|
|||||||||
Total
operating expenses
|
1,160,000
|
539,000
|
3,452,000
|
1,742,000
|
|||||||||
Loss
from operations
|
(373,000
|
)
|
(340,000
|
)
|
(1,445,000
|
)
|
(930,000
|
)
|
|||||
Other
income (expenses):
|
|||||||||||||
Interest
income
|
14,000
|
22,000
|
45,000
|
74,000
|
|||||||||
Other
income
|
—
|
—
|
2,000
|
—
|
|||||||||
Interest
expense
|
(91,000
|
)
|
—
|
(146,000
|
)
|
(11,000
|
)
|
||||||
Total
other income (expenses)
|
(77,000
|
)
|
22,000
|
(99,000
|
)
|
63,000
|
|||||||
Allocation
to minority interest in subsidiary
|
(88,000
|
)
|
—
|
(174,000
|
)
|
—
|
|||||||
Loss
before provision for income taxes
|
(538,000
|
)
|
(318,000
|
)
|
(1,718,000
|
)
|
(867,000
|
)
|
|||||
Provision
for income taxes
|
115,000
|
—
|
204,000
|
—
|
|||||||||
Net
loss
|
$
|
(653,000
|
)
|
$
|
(318,000
|
)
|
$
|
(1,922,000
|
)
|
$
|
(867,000
|
)
|
|
Net
loss per share - basic and diluted
|
($0.02
|
)
|
($0.01
|
)
|
($0.04
|
)
|
($0.02
|
)
|
|||||
Weighted
average shares outstanding - basic
and
diluted
|
43,090,280
|
42,438,261
|
42,752,223
|
42,104,110
|
Nine
Months Ended
September
30,
|
|||||||
2006
|
2005
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
loss
|
$
|
(1,922,000
|
)
|
$
|
(867,000
|
)
|
|
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
|||||||
Depreciation
of property, plant and equipment
|
55,000
|
21,000
|
|||||
Amortization
of intangible assets
|
101,000
|
37,000
|
|||||
Accretion
of interest on discounted note payable
|
45,000
|
—
|
|||||
Common
stock issued to vendor for accounts payable
|
23,000
|
—
|
|||||
Share-based
compensation expense
|
249,000
|
8,000
|
|||||
Minority
interest in subsidiary
|
174,000
|
—
|
|||||
Changes
in assets and liabilities:
|
|||||||
Accounts
receivable
|
(29,000
|
)
|
(68,000
|
)
|
|||
Inventories
|
96,000
|
(43,000
|
)
|
||||
Prepaid
expenses and other current assets
|
155,000
|
9,000
|
|||||
Deferred
tax asset
|
1,000
|
—
|
|||||
Other
assets
|
(8,000
|
)
|
—
|
||||
Accounts
payable
|
290,000
|
(157,000
|
)
|
||||
Accrued
expenses
|
214,000
|
(532,000
|
)
|
||||
Taxes
payable
|
115,000
|
—
|
|||||
Accounts
payable to related party
|
(65,000
|
)
|
—
|
||||
Net
cash used in operating activities
|
(506,000
|
)
|
(1,592,000
|
)
|
|||
Cash
flows from investing activities:
|
|||||||
Acquisition
of common shares of subsidiary
|
—
|
(88,000
|
)
|
||||
Investment
in restricted certificate of deposit
|
(3,060,000
|
)
|
—
|
||||
Purchases
of property, plant and equipment
|
(64,000
|
)
|
(22,000
|
)
|
|||
Increase
in patents
|
(42,000
|
)
|
(171,000
|
)
|
|||
Proceeds
from restricted certificate of deposit
|
3,060,000
|
—
|
|||||
Net
cash used in investing activities
|
(106,000
|
)
|
(281,000
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Collection
of private placement proceeds receivable, net of registration statement
costs
|
—
|
1,948,000
|
|||||
Issuance
of common stock
|
—
|
239,000
|
|||||
Proceeds
from exercise of stock options
|
69,000
|
44,000
|
|||||
Proceeds
from short-term borrowing
|
3,666,000
|
—
|
|||||
Repayment
of short-term borrowings
|
(3,060,000
|
)
|
(1,200,000
|
)
|
|||
Net
cash provided by financing activities
|
675,000
|
1,031,000
|
|||||
Net
increase (decrease) in cash and cash equivalents
|
63,000
|
(842,000
|
)
|
||||
Cash
and cash equivalents - beginning of period
|
614,000
|
4,687,000
|
|||||
Cash
and cash equivalents - end of period
|
$
|
677,000
|
$
|
3,845,000
|
Loss
from Operations
|
Loss
Before Provision
for Income
Taxes
|
Net
Loss
|
||||||||
Results
as reported
|
$
|
(1,445,000
|
)
|
$
|
(1,718,000
|
)
|
$
|
(1,922,000
|
)
|
|
Additional
compensation expense - effect of adoption of SFAS 123R
|
191,000
|
191,000
|
191,000
|
|||||||
Proforma
results applying the original provisions of SFAS 123 using the intrinsic
value method of APB 25
|
$
|
(1,254,000
|
)
|
$
|
(1,527,000
|
)
|
$
|
(1,731,000
|
)
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Net
loss as reported
|
$
|
(653,000
|
)
|
$
|
(318,000
|
)
|
$
|
(1,922,000
|
)
|
$
|
(867,000
|
)
|
|
Share-based
employee compensation expense included in reported net loss
|
60,000
|
—
|
191,000
|
—
|
|||||||||
Share-based
employee compensation expense that would have been included in net
income
if the fair value method had been applied to all awards
|
(60,000
|
)
|
(34,000
|
)
|
(191,000
|
)
|
(124,000
|
)
|
|||||
Pro
forma net loss
|
$
|
(653,000
|
)
|
$
|
(352,000
|
)
|
$
|
(1,922,000
|
)
|
$
|
(991,000
|
)
|
|
Net
loss per share:
|
|||||||||||||
Basic
and diluted - as reported
|
$
|
(0.02
|
)
|
$
|
(0.01
|
)
|
$
|
(0.04
|
)
|
$
|
(0.02
|
)
|
|
Basic
and diluted - pro forma
|
$
|
(0.02
|
)
|
$
|
(0.01
|
)
|
$
|
(0.04
|
)
|
$
|
(0.02
|
)
|
September
30, 2006
|
December
31, 2005
|
|||||||||
Maturity
Value
|
Discounted
Value
|
|||||||||
Note
payable to KeyBank, N.A.
|
$
|
—
|
$
|
—
|
$
|
3,060,000
|
||||
Note
payable to Bridge Bank, N.A.
|
3,060,000
|
3,060,000
|
—
|
|||||||
Note
payable to the Company’s former President & CEO
|
200,000
|
200,000
|
—
|
|||||||
Note
payable to Fagan Capital, Inc.
|
406,000
|
285,000
|
—
|
|||||||
Total
notes payable
|
$
|
3,666,000
|
$
|
3,545,000
|
$
|
3,060,000
|
Nature of Expense |
Amount
|
|||
SEC
registration fee
|
$
|
655.21
|
|
|
Accounting
fees and expenses*
|
$
|
10,000.00
|
||
Legal
fees and expenses*
|
$
|
30,000.00
|
|
|
Printing
and related expenses*
|
$
|
5,000.00
|
|
|
TOTAL
|
$
|
45,655.21
|
|
*
|
Estimated.
|
Incorporated
by Reference
|
|||||||||||
Exhibit
Number
|
Exhibit
Description
|
Form
|
Date
|
Number
|
Filed
Herewith
|
||||||
3.1
|
Restated
Certificate of Incorporation as filed in Delaware September 10,
1996 and
as thereafter amended through March 1, 2002
|
10-KSB
|
04/01/02
|
3.(A)
|
|||||||
3.2
|
Bylaws
of the Company as restated effective September 7, 1994 and as amended
through April 29, 2003
|
10-QSB
|
08/13/03
|
3
|
5.1
|
Opinion
Regarding Legality
|
SB-2
|
12/08/06
|
5.1
|
|
10.1
|
Series
C Preferred Stock Subscription and Purchase Agreement (form); dated
April
1996 (1,774,080 shares in total)
|
10-KSB
|
04/01/02
|
10.(B)
|
|||||||
10.2
|
Subscription
Agreement, Warrant to Purchase Common Stock and Form of Subscription
dated
July 2003 - August 2003
|
10-KSB
|
03/26/04
|
10.(D)
|
|||||||
10.3
|
Note
and Warrant Purchase Agreement dated January 9, 2004
|
10-KSB
|
03/26/04
|
10.I
|
|||||||
10.4
|
Form
of Convertible Promissory Note dated January 9, 2004
|
10-KSB
|
03/26/04
|
10.J
|
|||||||
10.5
|
Form
of Warrant to Purchase Common Stock dated January 9, 2004
|
10-KSB
|
03/26/04
|
10.K
|
|||||||
10.6
|
Form
of Loan Agreement between OXIS International, Inc. and Axonyx,
Inc. dated
June 2004
|
8-K
|
06/10/04
|
99.2
|
|||||||
10.7
|
Form
of Promissory Note between OXIS International, Inc. and Axonyx,
Inc. dated
June 2004
|
8-K
|
06/10/04
|
99.3
|
|||||||
10.8
|
Form
of Security Agreement between OXIS International, Inc. and Axonyx,
Inc.
dated June 2004
|
8-K
|
06/10/04
|
99.4
|
|||||||
10.9
|
Form
of License Agreement between OXIS International, Inc. and Haptoguard,
dated September 28, 2004
|
10-QSB
|
11/12/04
|
10.N
|
|||||||
10.10
|
Securities
Purchase Agreement, dated December 30, 2004
|
8-K/A
|
02/10/05
|
99.1
|
|||||||
10.11
|
Registration
Rights Agreement, dated December 30, 2004
|
8-K/A
|
02/10/05
|
99.2
|
Incorporated
by Reference
|
|||||||||||
Exhibit
Number
|
Exhibit
Description
|
Form
|
Date
|
Number
|
Filed
Herewith
|
10.12
|
Form
of Common Stock Purchase Warrant, dated December 30, 2004
|
8-K/A
|
02/10/05
|
99.3
|
|||||||
10.13
|
Consulting
Agreement between OXIS International, Inc. and Marvin D, Hausman,
M.D.,
dated October 14, 2004
|
SB-2
|
02/25/05
|
10.(O)
|
|||||||
10.14
|
Form
of Indemnification Agreement between OXIS International, Inc. and
its
Officers and Directors
|
SB-2
|
02/25/05
|
10.(P)
|
|||||||
10.15
|
Letter
Agreement between OXIS International, Inc. and Steven T. Guillen,
dated
February 28, 2005
|
8-K
|
03/04/05
|
10.1
|
|||||||
10.16
|
Restricted
Stock Purchase Agreement between OXIS International, Inc. and Steven
T.
Guillen, dated February 28, 2005
|
8-K
|
03/04/05
|
10.2
|
|||||||
10.17
|
Notice
of Stock Option Award and related Stock Option Agreement between
OXIS
International Inc. and Steven T. Guillen, dated February 28,
2005
|
SB-2/A
|
04/29/05
|
10.(T)
|
|||||||
10.18
|
Nonqualified
Stock Option Agreement between OXIS International, Inc. and Steven
T.
Guillen, dated February 28, 2005
|
SB-2/A
|
04/29/05
|
10.(U)
|
|||||||
10.19
|
Conversion
Agreement between OXIS International, Inc. and Equitis Entreprise,
dated
May 23, 2005
|
8-K
|
05/25/05
|
99.1
|
|||||||
10.20
|
Agreement
between OXIS International, Inc. and Timothy C. Rodell date July
31,
2005
|
8-K
|
08/04/05
|
99.1
|
|||||||
10.21
|
Stock
Purchase Agreement between OXIS International, Inc. and BioCheck
Inc.
dated September 19, 2005
|
8-K
|
09/23/05
|
99.1
|
|||||||
10.22
|
Tenth
Amendment to Lease between OXIS International, Inc. and Rosan, Inc.
dated
October 28, 2005
|
8-K
|
11/02/05
|
10.1
|
|||||||
10.23
|
Consulting
Agreement between OXIS International, Inc. and NW Medical Research
Partners dated November 17, 2005
|
8-K
|
11/23/05
|
10.1
|
Incorporated
by Reference
|
|||||||||||
Exhibit
Number
|
Exhibit
Description
|
Form
|
Date
|
Number
|
Filed
Herewith
|
10.24
|
Executive
Employment Agreement between OXIS International, Inc., BioCheck,
Inc. and
John Chen dated December 6, 2005
|
10-KSB
|
03/31/06
|
10.24
|
|||||||
|
|||||||||||
10.25
|
Option
and Reimbursement Agreement between Evernew Biotech, Inc., OXIS
International, Inc. and the
shareholders of Evernew, dated December 6, 2005
|
10-KSB
|
03/31/06
|
10.25
|
|||||||
|
|||||||||||
10.26
|
Letter
Agreement between OXIS International, Inc. and Michael D. Centron
dated
January 6, 2006
|
8-K
|
01/10/06
|
10.1
|
|||||||
|
|||||||||||
10.27
|
Lease
Agreement between OXIS International, Inc. and Westcore Peninsula
Vintage
LLC dated February 8, 2006
|
8-K
|
02/13/06
|
10.1
|
|||||||
|
|||||||||||
10.28
|
Promissory
Note issued by OXIS International, Inc. to Steven T. Guillen dated
March
10, 2006
|
8-K
|
03/14/06
|
10.1
|
|||||||
|
|||||||||||
10.29
|
Promissory
Note issued by OXIS International, Inc. to Fagan Capital, Inc. dated
March
31, 2006
|
8-K
|
04/04//06
|
10.1
|
|||||||
|
|||||||||||
10.30
|
Engagement
Letter with Ambient Advisors
|
8-K
|
5/31/06
|
10.1
|
|||||||
|
|||||||||||
10.31
|
Mutual
Services Agreement between OXIS International, Inc. and BioCheck,
Inc.
dated June 23, 2006
|
8-K
|
6/29/06
|
10.1
|
|||||||
|
|||||||||||
10.32
|
Renewal and Modification Promissory Note dated June 2, 2006. |
8-K
|
7/26/06
|
10.1
|
|||||||
|
|||||||||||
10.33
|
Common Stock Purchase Warrant dated June 2, 2006. |
8-K
|
7/26/06
|
10.2
|
|||||||
|
|||||||||||
10.34
|
Amendment #2 to Exclusive License and Supply Agreement dated July 19, 2006. |
8-K |
7/26/06 |
10.3
|
|||||||
|
|
||||||||||
10.35
|
Form
of Securities Purchase Agreement dated October 25, 2006.
|
8-K
|
10/26/06
|
10.1
|
|||||||
|
|
||||||||||
10.36
|
Form
of Secured Convertible Debenture dated October 25, 2006.
|
8-K
|
10/26/06
|
10.2
|
|||||||
|
|
||||||||||
10.37
|
Form
of Series A, B, C, D, E Common Stock Purchase Warrant dated October
25,
2006.
|
8-K
|
10/26/06
|
10.3
|
|||||||
|
|
||||||||||
10.38
|
Form
of Registration Rights Agreement dated October 25, 2006.
|
8-K
|
10/26/06
|
10.4
|
|||||||
|
|
||||||||||
10.39
|
Form
of Security Agreement dated October 25, 2006.
|
8-K
|
10/26/06
|
10.5
|
Incorporated
by Reference
|
|||||||||||
Exhibit
Number
|
Exhibit
Description
|
Form
|
Date
|
Number
|
Filed
Herewith
|
10.40
|
Employment
Agreement between OXIS International, Inc. and Marvin S. Hausman,
M.D.
dated November 6, 2006.
|
8-K
|
11/13/06
|
10.1
|
|||||||
10.41
|
Advisory
Agreement between OXIS International, Inc. and Ambient Advisors,
LLC dated
November 6, 2006.
|
8-K
|
11/13/06
|
10.2
|
|||||||
10.42
|
Consulting
Agreement between OXIS International, Inc. and John E. Repine, M.D.
dated
November 6, 2006.
|
8-K
|
11/13/06
|
10.3
|
|||||||
21.1
|
Subsidiaries
of OXIS International, Inc.
|
10-KSB
|
03/31/06
|
21.1
|
23.1
|
Consent
of Independent Registered Public Accounting Firm
|
SB-2
|
12/08/06
|
23.1
|
|
1. |
Include
any prospectus required by Section 10(a)(3) of the Securities
Act;
|
2. |
Reflect
in the prospectus any facts or events which, individually or together,
represent a fundamental change in the information in the registration
statement. Notwithstanding the foregoing, any increase or decrease
in
volume of securities offered (if the total dollar value of the securities
offered would not exceed that which was registered) and any deviation
from
the low or high end of the estimated maximum offering range may be
reflected in the form of prospectus filed with the Commission pursuant
to
Rule 424(b) under the Securities Act if, in the aggregate, the changes
in
volume and price represent no more than a 20% change in the maximum
aggregate offering price set forth in the “Calculation of Registration
Fee” table in the effective registration statement,
and
|
3. |
Include
any additional or changed material information on the plan of
distribution.
|
Date: January 23, 2007 |
OXIS
INTERNATIONAL, INC.
a Delaware corporation
|
|
|
|
|
By: | /s/ MARVIN S. HAUSMAN, M.D. | |
President and Chief Executive Officer |
/s/ MARVIN
S. HAUSMAN, M.D.
|
President,
Chief Executive Officer and
|
January
23, 2007
|
||
Marvin S. Hausman, M.D |
Chairman
of the
Board (principal executive officer and acting principal financial
and
accounting officer)
|
|||
/s/
STEVEN T. GUILLEN *
|
Director |
January
23, 2007
|
||
Steven T. Guillen |
||||
/s/
S. COLIN NEILL*
|
Director |
January
23, 2007
|
||
S. Colin Neill |
||||
/s/
JOHN E. REPINE, M.D.*
|
Director |
January
23, 2007
|
||
John E. Repine, M.D. |
||||
/s/
GARY M. POST *
|
Director |
January
23, 2007
|
||
Gary M. Post |
*By: | /s/ MARVIN S. HAUSMAN, M.D. |
January
23, 2007
|
||
Marvin
S. Hausman, M.D.
As
Attorney-in-Fact
|