Some background on AXYX-
AXYX is a product of a reverse merger. The passive parent was Ionosphere, Inc
listed on the Bulletin Board. AXYX moved to the Small-Cap in April 2000.
According to the 424B3 filing (May 24, 2000) - This filing was to register
an additional 1,060,000 shares which are eligible to be sold after conversion
of existing warrants.
Common stock outstanding: 14,214,019 shares
There are warrants/options for an additional 2 million shares.
Out of the greater than 14 million o/s, 13,026,017 shares are "restricted"
and subjected to 144 filings.
This implies the float can be as low as 1.2 million shares. The correct number
is probably 2-3 million. By the way it traded today, my guess is most of
the stockholders were not even aware of the big move or were unable to
sell in the after-hours session
Other key points (copied from the SEC filing) -
We currently have six full time employees, five of whom are in
administration/management and one of which is in research and development.
R&D expenditures since the commencement of operations in January 9, 1997
through Dec 31, 1999
- 3.8 MM. This includes equity related charges of around 2.5 MM
Agreement with University of Melbourne (quoted in today's press release as
a partner in a joint agreement to develop the new approach to the early
diagnosis of Alzheimer's Disease.
On October 1, 1999, the Company entered into an agreement with the
University of Melbourne (Australia). Under the Agreement, the Company
committed to fund a research project at the University of Melbourne to
develop a diagnostic test for Alzheimer's disease. In addition to the
costs associated with the filing and prosecution of any patent
applications, the Company has committed approximately $60,000 per year
for each of the next three years to develop a diagnostic test for
Alzheimer's disease. Both parties will own any resulting intellectual
property as tenants in common in equal shares. In addition, the Company
has an option to acquire for $25,000 each, an exclusive worldwide
license for each intellectual property or patent resulting from the
research project, and to an existing patent application.
My comment - Serious money is being spent on this program !!!
From the balance sheet -
ASSETS
Current assets:
Cash and cash equivalents $ 5,409,000
Stock subscriptions receivable (collected in January and February 2000) 298,000
Other assets 22,000
------------
Total current assets 5,729,000
Equipment, net of accumulated depreciation of $3,000 15,000
------------
$ 5,744,000
============
Note the complete absence of tangible/intangible assets (if you exclude cash).
This company is simply a shell sponsoring small research programs in
various universities. They are paying NYU partly through stock !
Regards,
Rajiv |
