I have some questions about the 10-Q of 10-15-00 involving the following statements contained in the document. Here are the statements and after I'll ask the questions that hopefully someone on the thread can answer for me. Thanks in advance:
At September 30, 1999, the Company had an accumulated deficit of approximately $50.8
million
[Balance Sheet] Accumulated deficit ( 52,397,238)
. Following the JAFCO investment, the Company began recognizing 50% of the net
losses generated by Axiom which is the extent to which the Company is deemed to be
funding such losses
For the three months ended March 31, 2000, the Chief Executive Officer's compensation
was $580,000, which includes $497,500 in severance pay.
The Company retained ownership of all its other assets including its core yeast
technology for developing drug discovery assays, its collection of over 25,000 proprietary
yeast strains, human and mammalian cell lines, and genetic engineering tools, its joint
ownership of the human orphan G protein-coupled receptors identified pursuant to its
collaboration with Genome Therapeutics Corporation, its proprietary software, its
genomics databases related to G protein-coupled receptors, all assays and technologies
reverting to it from its collaboration with Bristol -Myers Squibb Company, a 30% equity
position in Axiom Biotechnologies, Inc., the Company's cash and cash equivalents, and
the funds that were being held in escrow pending appeal of the verdict in favor of SIBIA.
OSI paid to the Company a license fee of $100,000 and an access fee of $600,000, which
has been recorded as license fee revenue in the quarter ended March 31, 2000. OSI is
also obligated to pay an annual maintenance fee of $100,000 until 2010 and a
supplemental license fee of $250,000 if the injunction obtained by SIBIA is lifted or
dissolved
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1. Does the above mean that in addition to the $1.90 or so per share cash that they have liabilities of over $50 mil?
2. I thought the interest in Axiom was liability-free stock interest-- but it sounds instead like they may be liable for Axiom's debts. ????
3. When Richard Harmon says he's KDUS not for the cash but for the royalties, is he talking about the $100k per year licensing and other possible licensing fees or possible royalties from its core yeast technology or what?
4. Wonder how much Glass is getting paid now for running the shell and not returning phone calls? ;-) |
