Well gang, here is the most important stuff filed in latest 10QSB apparently on May 15, 1997. Some upsetting info here but it doesn't seem to spurred a lot of selling. See what you make of it. Just for the record I have maintained my holdings including purchaces I made in both stock and warrants in the recent dip. Larry
Liquidity and Capital Resources
At March 31, 1997, the Company had cash and cash equivalents of
$2,077,000 as compared to $4,171,000 at September 30, 1996.
The Company expects to incur additional research and development and
product engineering expenses, including personnel costs and costs
related to preclinical testing and clinical trials.
In April 1997, the Company was advised by the Food and Drug Administration
that the dietary supplement marketing of AndroVir(trademark) for HIV positive
individuals and of AndroCar(trademark) to persons with cancer would constitute
claims that the products are intended to treat persons with serious
diseases and thus intended for drug use and not dietary supplement
use. As a result of this advice, the Company is modifying its proposed
marketing plan to ensure that any products introduced as dietary supplements
meet regulatory requirements for this product category.
If the Company ultimately determines to proceed with a product launch prior
to the end of fiscal 1997, the Company believes that the initial
funding required for such launch could be provided out of the Company's
existing cash.
The Company intends to seek additional funding sources of capital and
liquidity through collaborative agreements. In addition, the Company is
continually evaluating various financing alternatives including public
and private sources of debt and equity. There can be no assurance
that such additional financing will be available on acceptable terms or
at all. If additional financing is not available, the Company
anticipates that its available cash and existing sources of funding
will be adequate to satisfy its operating cash and capital requirements
only until September 1997. The Company's future capital requirements
will depend on many factors, including continued scientific progress in
its research and development programs, the magnitude of such programs
and its acquisition plans.
PART II. OTHER INFORMATION
Item 1 Legal Proceedings
On April 25, 1997 the Company filed a complaint in the U.S. District
Court for the Northern District of New York against John G. Babish, a
former officer and director of the Company. The complaint alleges that
Mr. Babish engaged in a pattern of wrongful conduct by which he sought
to unjustly enrich himself and to seize control of the Company at the
expense of the Company and its shareholders. That conduct included in
part the manipulation of the Company's stock price, trading in the
Company's stock on inside information, breach of fiduciary and
contractual duties, theft of Company property, and usurpation of
corporate opportunities.
The Company seeks compensatory and exemplary damages, injunctive relief
and recovery of litigation costs and fees.
The complaint has been served and filed. However, defendant's answer
is not yet due.
The Company has obtained a temporary restraining order prohibiting the
defendant alone or in cooperation with others from transferring any of
the stock or assets of or other interests in the Company, from issuing
a press release, or contacting stock brokers or major shareholders with
the intent to affect the price of plaintiff's stock or from
disseminating any trade secrets or other confidential information of
the plaintiffs. A hearing on the Company's application for a
preliminary injunction against defendant is scheduled for May 19, 1997. |
