Excerpts from the 8-K:
HYBRIGENE, LLC
BALANCE SHEET
As of December 31, 1998
ASSETS
CURRENT ASSETS
Cash $ 2,076
Grant Receivable (Note 2) 25,245
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TOTAL CURRENT ASSETS 27,321
INVESTMENTS (Note 3) 321,068
PROPERTY AND EQUIPMENT (Note 4)
Laboratory Equipment 69,935
Office Equipment 9,318
Leasehold Improvements 6,804
------------
86,057
Accumulated Depreciation (5,857)
------------
80,200
OTHER ASSETS
Prepaid Expenses 2,071
Option Agreement (Note 5) 41,814
Organizational Costs (Net of Amortization of $200) 1,514
------------
45,399
------------
$ 473,988
============
LIABILITIES
CURRENT LIABILITIES
Accounts Payable $ 12,007
Deposit (Note 6) 258,760
Accrued Liabilities--
Payroll Taxes 6,552
------------
TOTAL CURRENT LIABILITIES 277,319
PARTNERS' CAPITAL
CAPITAL
Partners' Capital (Note 7) 196,669
------------
$ 473,988
============
See Notes to Financial Statements.
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HYBRIGENE, LLC
STATEMENT OF OPERATIONS AND PARTNERS' CAPITAL
For the Year Ended December 31, 1998
REVENUE
SBIR Grant $ 55,000
EXPENSES
Wages & Salaries 70,119
Payroll Taxes 6,084
Insurance 6,696
Travel & Meals 3,497
Rent 9,605
Office Supplies 10,606
Utilities 2,435
Accounting Fees 4,762
Legal & Consulting Fees 45,861
Marketing Fees & Supplies 3,936
Shipping, Postage & Printing 1,037
Miscellaneous 160
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164,798
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OPERATING (LOSS) (109,798)
OTHER INCOME
Interest 2,524
OTHER EXPENSES
Depreciation 5,857
Amortization 200
-----------
6,057
-----------
NET (LOSS) (113,331)
BEGINNING CAPITAL--January 1, 1998 5,000
CAPITAL CONTRIBUTION (Note 7) 305,000
-----------
PARTNERS' CAPITAL--December 31, 1998 $ 196,669
===========
See Notes to Financial Statements.
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HYBRIGENE, LLC
STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
For the Year Ended December 31, 1998
Net (Loss) $(113,331)
Adjustments to Reconcile Net (Loss) to Net Cash
Provided by Operating Activities--
Depreciation 5857
Amortization 200
(Increase) Decrease in Current Assets--
Grant Receivable (25,245)
Prepaid Expenses (2,071)
Option Agreement (41,814)
Increase (Decrease) in Current Liabilities--
Accounts Payable 12,007
Accrued Liabilities 6,552
Deposit 258,760
-----------------
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES 100,915
CASH FLOWS FROM INVESTING ACTIVITIES
(Purchases) of Property and Equipment (86,057)
(Increase) in Organizational Costs (1,714)
Net (Increase) in Investment Securities (321,068)
-----------------
NET CASH PROVIDED (USED)
BY INVESTING ACTIVITIES (408,839)
CASH FLOWS FROM FINANCING ACTIVITIES
Partners' Contributions 305,000
-----------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,924)
CASH AND CASH EQUIVALENTS--Beginning of Period 5,000
-----------------
CASH AND CASH EQUIVALENTS--End of Period $ 2,076
=================
See Notes to Financial Statements.
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HYBRIGENE, LLC
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
NOTE 1: ORGANIZATION
Business Activity and Organization--HybriGene, LLC (the Company) was
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organized under the laws of the state of Indiana in March 1997. The
Company's only activity prior to January 1, 1998, consisted of
organizational costs. The Company is a plant genetic engineering
company that develops hybrid and engineered seeds for a worldwide
market.
NOTE 2: GRANT RECEIVABLE
The Company was awarded a SBIR grant of $55,000 from the United States
Department of Agriculture in 1997. Partial payments have been made in
1998. Final payment is in process.
NOTE 3: INVESTMENTS
In accordance with Statement of Financial Accounting Standards No. 115,
Accounting for Certain Investments in Debt and Equity Securities,
investments are classified as trading securities and are stated at fair
market value at December 31, 1998.
Money Market $ 62,308
Common Stock 258,760
---------
Fair Market Value $ 321,068
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NOTE 4: PROPERTY AND EQUIPMENT
Property and equipment are stated at cost. Depreciation is provided for
in amounts sufficient to relate the cost of depreciated assets to
operations over their estimated service lives using the straight line
method and accelerated depreciation methods, which are followed for all
assets for both financial reporting and tax purposes. Maintenance,
repairs, and minor renewals are charged to operations as incurred.
Improvement and major renewals are capitalized. Upon sale or
disposition, the asset account is relieved of the cost, and the
accumulated depreciation account is charged with depreciation taken
prior to the sale. Any resultant gain or loss is credited or charged to
operations.
-5-
NOTES TO FINANCIAL STATEMENTS
December 31, 1998
NOTE 5: OPTION AGREEMENT
The balance represents payments made by the Company per the option
agreement dated March 31, 1998 with Purdue Foundation (the Foundation),
which grants the Company the option to obtain an exclusive worldwide
royalty bearing license for use of technology owned by the Foundation.
This cost represents approximately 50% of the estimated costs to
complete the agreement with the Foundation.
NOTE 6: DEPOSIT
The balance represents a certain publicly traded stock held by the
Company in their investment account. This stock is being held for a
future transaction which has not been completed at the date of this
financial statement. This liability is equal to the value reported in
the investment account.
NOTE 7: CAPITAL CONTRIBUTION
A new 25% partner was admitted during August, 1998 with an initial
contribution to capital of $300,000. The agreement calls for additional
future contributions by the new partner totaling $5,700,000.
NOTE 8: SUBSEQUENT EVENTS
Subsequent to the balance sheet date, the members have agreed to sell
their interest in the Company. These negotiations are in progress at
the date of this report. |
