Nevada
|
90-0031917
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
June
30, 2008
(Unaudited)
|
December
31, 2007
(Audited)
|
||||||||
Assets | |||||||||
Current Assets | |||||||||
Cash
and cash equivalents
|
$ | 5,169 | 352,389 | ||||||
United States Treasury Notes, total face value $2,806,568 and $6,910,157, respectively | 2,805,308 | 6,907,837 | |||||||
Cash in escrow | 2,000,000 | -- | |||||||
Prepaid expenses and other current assets | 46,014 | 99,460 | |||||||
Total Current Assets | 4,856,491 | 7,359,686 | |||||||
Equipment and furnishings, less accumulated depreciation of $386,605 and $381,977, respectively | 38,318 | 42,946 | |||||||
Patents,
net of amortization of $3,769,457 and $3,433,897,
respectively
|
7,945,988 | 8,281,548 | |||||||
Other
assets
|
27,000 | 27,000 | |||||||
$ | 12,867,797 | $ | 15,711,180 | ||||||
Liabilities
and Stockholders' Equity
|
|||||||||
Current
Liabilities
|
|||||||||
Accounts payable – trade
|
$ | 143,730 | $ | 455,192 | |||||
Accrued compensation and payroll taxes
|
109,526 | 274,011 | |||||||
Accrued consulting expense
|
70,000 | 102,037 | |||||||
Other accrued expenses
|
39,500 | 48,430 | |||||||
Total
Current Liabilities
|
362,756 | 879,670 | |||||||
Stockholders'
Equity
|
|||||||||
Preferred stock; par value $.001 per share; 25,000,000 shares
authorized;
no shares issued and outstanding
|
-- | -- | |||||||
Common stock; par value $.001 per share; 100,000,000 shares
authorized; 51,352,855 and 49,399,281 shares issued
and
outstanding,
respectively
|
51,353 | 49,399 | |||||||
Paid in capital
|
62,711,598 | 59,988,147 | |||||||
Deficit accumulated during the development stage
|
(50,257,910 | ) | (45,206,036 | ) | |||||
Total
Stockholders' Equity
|
12,505,041 | 14,831,510 | |||||||
$ | 12,867,797 | $ | 15,711,180 |
Three
Months
Ended
June
30, 2008
|
Three
Months
Ended
June
30, 2007
|
Six
Months
Ended
June
30, 2008
|
Six
Months
Ended
June
30, 2007
|
Cumulative
Amounts from January 17, 2002 (Inception) Through
June
30, 2008
|
||||||||||||||||
Revenues
|
||||||||||||||||||||
OTC
product revenue
|
$ | -- | $ | -- | $ | -- | $ | -- | $ | 25,648 | ||||||||||
Medical
device revenue
|
-- | -- | -- | -- | 14,109 | |||||||||||||||
Total
revenues
|
-- | -- | -- | -- | 39,757 | |||||||||||||||
Cost
of sales
|
-- | -- | -- | -- | 15,216 | |||||||||||||||
Gross
profit
|
-- | -- | -- | -- | 24,541 | |||||||||||||||
Operating
expenses
|
||||||||||||||||||||
Research and
development
|
1,248,668 | 1,063,282 | 2,311,784 | 2,152,585 | 13,844,949 | |||||||||||||||
General and
administrative
|
1,298,446 | 1,160,777 | 2,463,440 | 2,366,008 | 24,429,469 | |||||||||||||||
Amortization
|
167,780 | 167,780 | 335,560 | 335,560 | 3,769,457 | |||||||||||||||
Total
operating loss
|
(2,714,894 | ) | (2,391,839 | ) | (5,110,784 | ) | (4,854,153 | ) | (42,019,334 | ) | ||||||||||
Gain
on sale of fixed assets
|
-- | -- | -- | -- | 55,075 | |||||||||||||||
Loss
on extinguishment of debt
|
-- | -- | -- | -- | (825,867 | ) | ||||||||||||||
Investment
income
|
19,005 | 84,159 | 58,910 | 169,748 | 630,220 | |||||||||||||||
Interest
expense
|
-- | -- | -- | (11,409 | ) | (8,098,004 | ) | |||||||||||||
Net
loss
|
$ | (2,695,889 | ) | $ | (2,307,680 | ) | $ | (5,051,874 | ) | $ | (4,695,814 | ) | $ | (50,257,910 | ) | |||||
Basic
and diluted loss per
common
share
|
$ | (0.05 | ) | $ | (0.05 | ) | $ | (0.10 | ) | $ | (0.10 | ) | ||||||||
Weighted
average number of common shares outstanding – basic and
diluted
|
50,981,758 | 45,597,872 | 50,433,460 | 44,929,819 |
Common
Stock
|
||||||||||||||||||||
Number
of shares
|
Par
value
|
Paid-in
capital
|
Accumulated
deficit
|
Total
|
||||||||||||||||
Balance,
at January 17, 2002
|
-- | $ | -- | $ | -- | $ | -- | $ | -- | |||||||||||
Issuance
to founding shareholders
|
6,000,000 | 6,000 | (6,000 | ) | -- | -- | ||||||||||||||
Sale
of stock
|
50,000 | 50 | 24,950 | -- | 25,000 | |||||||||||||||
Issuance
of stock to employees
|
510,000 | 510 | 931,490 | -- | 932,000 | |||||||||||||||
Issuance
of stock for services
|
120,000 | 120 | 359,880 | -- | 360,000 | |||||||||||||||
Net
loss for the period from January 17, 2002 (inception) to April 23,
2002 (date of reverse merger)
|
-- | -- | -- | (1,316,198 | ) | (1,316,198 | ) | |||||||||||||
Balance,
at April 23, 2002
|
6,680,000 | $ | 6,680 | $ | 1,310,320 | $ | (1,316,198 | ) | $ | 802 | ||||||||||
Shares
issued in reverse merger
|
265,763 | 266 | (3,911 | ) | -- | (3,645 | ) | |||||||||||||
Issuance
of stock for services
|
1,900,000 | 1,900 | 5,142,100 | -- | 5,144,000 | |||||||||||||||
Purchase
and retirement of stock
|
(400,000 | ) | (400 | ) | (47,600 | ) | -- | (48,000 | ) | |||||||||||
Stock
issued for acquisition of Valley Pharmaceuticals
|
500,007 | 500 | 12,225,820 | -- | 12,226,320 | |||||||||||||||
Exercise
of warrants
|
452,919 | 453 | -- | -- | 453 | |||||||||||||||
Warrants
issued in connection with convertible debt
|
-- | -- | 126,587 | -- | 126,587 | |||||||||||||||
Stock
and warrants issued for acquisition of Pure-ific
|
25,000 | 25 | 26,975 | -- | 27,000 | |||||||||||||||
Net
loss for the period from April 23, 2002 (date of reverse merger) to
December 31, 2002
|
-- | -- | -- | (5,749,937 | ) | (5,749,937 | ) | |||||||||||||
Balance,
at December 31, 2002
|
9,423,689 | $ | 9,424 | $ | 18,780,291 | $ | (7,066,135 | ) | $ | 11,723,580 | ||||||||||
Issuance
of stock for services
|
764,000 | 764 | 239,036 | -- | 239,800 | |||||||||||||||
Issuance
of warrants for services
|
-- | -- | 145,479 | -- | 145,479 | |||||||||||||||
Stock
to be issued for services
|
-- | -- | 281,500 | -- | 281,500 | |||||||||||||||
Employee
compensation from stock options
|
-- | -- | 34,659 | -- | 34,659 | |||||||||||||||
Issuance
of stock pursuant to Regulation S
|
679,820 | 680 | 379,667 | -- | 380,347 | |||||||||||||||
Beneficial
conversion related to convertible debt
|
-- | -- | 601,000 | -- | 601,000 | |||||||||||||||
Net
loss for the year ended December 31, 2003
|
-- | -- | -- | (3,155,313 | ) | (3,155,313 | ) | |||||||||||||
Balance,
at December 31, 2003
|
10,867,509 | $ | 10,868 | $ | 20,461,632 | $ | (10,221,448 | ) | $ | 10,251,052 | ||||||||||
Issuance
of stock for services
|
733,872 | 734 | 449,190 | -- | 449,923 | |||||||||||||||
Issuance
of warrants for services
|
-- | -- | 495,480 | -- | 495,480 | |||||||||||||||
Exercise
of warrants
|
132,608 | 133 | 4,867 | -- | 5,000 | |||||||||||||||
Employee
compensation from stock options
|
-- | -- | 15,612 | -- | 15,612 | |||||||||||||||
Issuance
of stock pursuant to Regulation S
|
2,469,723 | 2,469 | 790,668 | -- | 793,137 | |||||||||||||||
Issuance
of stock pursuant to Regulation D
|
1,930,164 | 1,930 | 1,286,930 | -- | 1,288,861 | |||||||||||||||
Beneficial
conversion related to convertible debt
|
-- | -- | 360,256 | -- | 360,256 | |||||||||||||||
Issuance
of convertible debt with warrants
|
-- | -- | 105,250 | -- | 105,250 | |||||||||||||||
Repurchase
of beneficial conversion feature
|
-- | -- | (258,345 | ) | -- | (258,345 | ) | |||||||||||||
Net
loss for the year ended December 31, 2004
|
-- | -- | -- | (4,344,525 | ) | (4,344,525 | ) | |||||||||||||
Balance,
at December 31, 2004
|
16,133,876 | $ | 16,134 | $ | 23,711,540 | $ | (14,565,973 | ) | $ | 9,161,701 | ||||||||||
Issuance
of stock for services
|
226,733 | 227 | 152,058 | -- | 152,285 | |||||||||||||||
Issuance
of stock for interest payable
|
263,721 | 264 | 195,767 | -- | 196,031 | |||||||||||||||
Issuance
of warrants for services
|
-- | -- | 1,534,405 | -- | 1,534,405 | |||||||||||||||
Issuance
of warrants for contractual obligations
|
-- | -- | 985,010 | -- | 985,010 | |||||||||||||||
Exercise
of warrants and stock options
|
1,571,849 | 1,572 | 1,438,223 | -- | 1,439,795 | |||||||||||||||
Employee
compensation from stock options
|
-- | -- | 15,752 | -- | 15,752 | |||||||||||||||
Issuance
of stock pursuant to Regulation D
|
6,221,257 | 6,221 | 6,506,955 | -- | 6,513,176 | |||||||||||||||
Debt
conversion to common stock
|
3,405,541 | 3,405 | 3,045,957 | -- | 3,049,795 | |||||||||||||||
Issuance
of warrants with convertible debt
|
-- | -- | 1,574,900 | -- | 1,574,900 | |||||||||||||||
Beneficial
conversion related to convertible debt
|
-- | -- | 1,633,176 | -- | 1,633,176 | |||||||||||||||
Beneficial
conversion related to interest expense
|
-- | -- | 39,259 | -- | 39,529 | |||||||||||||||
Repurchase
of beneficial conversion feature
|
-- | -- | (144,128 | ) | -- | (144,128 | ) | |||||||||||||
Net
loss for the year ended 2005
|
-- | -- | -- | (11,763,853 | ) | (11,763,853 | ) | |||||||||||||
Balance,
at December 31, 2005
|
27,822,977 | $ | 27,823 | $ | 40,689,144 | $ | (26,329,826 | ) | $ | 14,387,141 | ||||||||||
Issuance
of stock for services
|
719,246 | 719 | 676,024 | -- | 676,743 | |||||||||||||||
Issuance
of stock for interest payable
|
194,327 | 195 | 183,401 | -- | 183,596 | |||||||||||||||
Issuance
of warrants for services
|
-- | -- | 370,023 | -- | 370,023 | |||||||||||||||
Exercise
of warrants and stock options
|
1,245,809 | 1,246 | 1,188,570 | -- | 1,189,816 | |||||||||||||||
Employee
compensation from stock options
|
-- | -- | 1,862,456 | -- | 1,862,456 | |||||||||||||||
Issuance
of stock pursuant to Regulation D
|
10,092,495 | 10,092 | 4,120,329 | -- | 4,130,421 | |||||||||||||||
Debt
conversion to common stock
|
2,377,512 | 2,377 | 1,573,959 | -- | 1,576,336 | |||||||||||||||
Beneficial
conversion related to interest expense
|
-- | -- | 16,447 | -- | 16,447 | |||||||||||||||
Net
loss for the year ended 2006
|
-- | -- | -- | (8,870,579 | ) | (8,870,579 | ) | |||||||||||||
Balance,
at December 31, 2006
|
42,452,366 | $ | 42,452 | $ | 50,680,353 | $ | (35,200,405 | ) | $ | 15,522,400 |
Issuance
of stock for services
|
150,000 | 150 | 298,800 | -- | 298,950 | |||||||||||||||
Issuance
of stock for interest payable
|
1,141 | 1 | 1,257 | -- | 1,258 | |||||||||||||||
Issuance
of warrants for services
|
-- | -- | 472,635 | -- | 472,635 | |||||||||||||||
Exercise
of warrants and stock options
|
3,928,957 | 3,929 | 3,981,712 | -- | 3,985,641 | |||||||||||||||
Employee
compensation from stock options
|
-- | -- | 2,340,619 | -- | 2,340,619 | |||||||||||||||
Issuance
of stock pursuant to Regulation D
|
2,376,817 | 2,377 | 1,845,761 | -- | 1,848,138 | |||||||||||||||
Debt
conversion to common stock
|
490,000 | 490 | 367,010 | -- | 367,500 | |||||||||||||||
Net
loss for the year ended 2007
|
-- | -- | -- | (10,005,631 | ) | (10,005,631 | ) | |||||||||||||
Balance,
at December 31, 2007
|
49,399,281 | $ | 49,399 | $ | 59,988,147 | $ | (45,206,036 | ) | $ | 14,831,510 | ||||||||||
Issuance
of stock for services
|
112,500 | 113 | 135,387 | -- | 135,500 | |||||||||||||||
Issuance
of warrants for services
|
-- | -- | 111,333 | -- | 111,333 | |||||||||||||||
Exercise
of warrants and stock options
|
1,841,074 | 1,841 | 1,321,500 | -- | 1,323,341 | |||||||||||||||
Employee
compensation from stock options
|
-- | -- | 1,155,231 | -- | 1,155,231 | |||||||||||||||
Net
loss for the six months ended June 30, 2008
|
-- | -- | -- | (5,051,874 | ) | (5,051,874 | ) | |||||||||||||
Balance,
at June 30, 2008
|
51,352,855 | $ | 51,353 | $ | 62,711,598 | $ | (50,257,910 | ) | $ | 12,505,041 |
Six
Months Ended
June 30, 2008
|
Six
Months Ended
June 30, 2007
|
Cumulative
Amounts from January 17, 2002 (Inception) through
June 30, 2008
|
||||||||||
Cash
Flows From Operating Activities
|
||||||||||||
Net
loss
|
$ | (5,051,874 | ) | $ | (4,695,814 | ) | $ | (50,257,910 | ) | |||
Adjustments
to reconcile net loss to net cash used in operating
activities
|
||||||||||||
Depreciation
|
4,628 | 4,628 | 409,606 | |||||||||
Amortization
of patents
|
335,560 | 335,560 | 3,769,457 | |||||||||
Amortization
of original issue discount
|
-- | 2,797 | 3,845,721 | |||||||||
Amortization
of commitment fee
|
-- | -- | 310,866 | |||||||||
Amortization
of prepaid consultant expense
|
-- | 84,019 | 1,295,226 | |||||||||
Amortization
of deferred loan costs
|
-- | 3,713 | 2,261,584 | |||||||||
Accretion
of United States Treasury Notes
|
(16,451 | ) | (101,167 | ) | (373,295 | ) | ||||||
Loss
on extinguishment of debt
|
-- | -- | 825,867 | |||||||||
Loss
on exercise of warrants
|
-- | -- | 236,146 | |||||||||
Beneficial
conversion of convertible interest
|
-- | -- | 55,976 | |||||||||
Convertible
interest
|
-- | 1,258 | 389,950 | |||||||||
Compensation
through issuance of stock options
|
1,155,231 | 1,426,190 | 5,424,329 | |||||||||
Compensation
through issuance of stock
|
-- | -- | 932,000 | |||||||||
Issuance
of stock for services
|
135,500 | 110,667 | 6,458,148 | |||||||||
Issuance
of warrants for services
|
111,333 | 174,118 | 1,127,137 | |||||||||
Issuance
of warrants for contractual obligations
|
-- | -- | 985,010 | |||||||||
Gain
on sale of equipment
|
-- | -- | (55,075 | ) | ||||||||
(Increase)
decrease in assets
|
||||||||||||
Prepaid
expenses and other current assets
|
53,446 | 47,870 | (46,014 | ) | ||||||||
Increase
(decrease) in liabilities
|
||||||||||||
Accounts
payable
|
(311,462 | ) | 18,461 | 140,085 | ||||||||
Accrued
expenses
|
(205,452 | ) | 8,717 | 368,656 | ||||||||
Net
cash used in operating activities
|
(3,789,541 | ) | (2,578,983 | ) | (21,896,530 | ) | ||||||
Cash
Flows from Investing activities
|
||||||||||||
Proceeds
from sale of fixed asset
|
-- | -- | 180,075 | |||||||||
Capital
expenditures
|
-- | (22,127 | ) | (62,049 | ) | |||||||
Increase
in Cash in escrow
|
(2,000,000 | ) | -- | (2,000,000 | ) | |||||||
Proceeds
from investments
|
9,230,000 | 10,005,000 | 39,711,644 | |||||||||
Purchase
of investments
|
(5,111,020 | ) | (9,972,814 | ) | (42,143,657 | ) | ||||||
Net
cash provided by (used in) investing activities
|
2,118,980 | 10,059 | (4,313,987 | ) | ||||||||
Cash
Flows from Financing Activities
|
||||||||||||
Net
proceeds from loans from stockholder
|
-- | -- | 174,000 | |||||||||
Proceeds
from convertible debt
|
-- | -- | 6,706,795 | |||||||||
Net
proceeds from sale of common stock
|
-- | 1,830,588 | 14,979,081 | |||||||||
Proceeds
from exercise of warrants and stock options
|
1,323,341 | 332,912 | 7,707,900 | |||||||||
Cash
paid to retire convertible debt
|
-- | -- | (2,385,959 | ) | ||||||||
Cash
paid for deferred loan costs
|
-- | -- | (747,612 | ) | ||||||||
Premium
paid on extinguishments of debt
|
-- | -- | (170,519 | ) | ||||||||
Purchase
and retirement of common stock
|
-- | -- | (48,000 | ) |
Net
cash provided by financing activities
|
1,323,341 | 2,163,500 | 26,215,686 | |||||||||
Net
change in cash and cash equivalents
|
$ | (347,220 | ) | $ | (405,424 | ) | $ | 5,169 | ||||
Cash
and cash equivalents, at beginning of period
|
$ | 352,389 | $ | 638,334 | $ | -- | ||||||
Cash
and cash equivalents, at end of period
|
$ | 5,169 | $ | 232,910 | $ | 5,169 |
Nominee
|
For
|
Against
|
Withheld
Authority
|
H.
Craig Dees
|
26,337,022
|
400
|
38,500
|
Timothy
C. Scott
|
26,337,022
|
400
|
38,500
|
Eric
A. Wachter
|
26,337,022
|
400
|
38,500
|
Stuart
Fuchs
|
26,337,022
|
400
|
38,500
|
Provectus Pharmaceuticals, Inc. | |||
Date:
August 14, 2008
|
By:
|
/s/ H. Craig Dees, Ph.D. | |
H. Craig Dees, Ph.D. | |||
Chief Executive Officer |