-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LEKAgGuMtrrGnBHgl2fyprAsjvM+m48LNl9z7zcVkWyP+9DFMJ9VILrEuXLirAId 0XdbW4TzmrImRgFEz+KI8g== 0000940180-97-001042.txt : 19971117 0000940180-97-001042.hdr.sgml : 19971117 ACCESSION NUMBER: 0000940180-97-001042 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEXMED INC CENTRAL INDEX KEY: 0001017491 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 870449967 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-22245 FILM NUMBER: 97719081 BUSINESS ADDRESS: STREET 1: 6087 TRIANGLE DR CITY: COMMERCE STATE: CA ZIP: 90040 BUSINESS PHONE: 2138900881 MAIL ADDRESS: STREET 1: 6087 TRIANGLE DRIVE CITY: COMMERCE STATE: CA ZIP: 90040 10QSB 1 FORM 10QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-QSB [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 1997 [_] Transaction report under Section 13 or 15(d) of the Exchange Act For the transition period from to ---------- --------- Commission file number 0-22245 NEXMED, INC. - -------------------------------------------------------------------------------- (Exact Name of Small Business Issuer as Specified in Its Charter) Nevada 87-0449967 - ------------------------------------------ ------------------------------- (State or Other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification No.) 6087 Triangle Drive, Commerce, CA 90040 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (213) 890-0881 - -------------------------------------------------------------------------------- (Issuer's Telephone Number, Including Area Code) N/A - -------------------------------------------------------------------------------- (Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report) Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [_] APPLICABLE ONLY TO CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: At November 13, 1997, 6,180,098 shares of common stock were outstanding. Transitional Small Business Disclosure Format (check one): Yes [_] No [X] PART I FINANCIAL INFORMATION Item 1. Financial Statements NexMed, Inc. (A development stage company) Condensed Consolidated Statement of Operations (Unaudited)
For the three months For the nine months January 1, 1994 ended September 30, ended September 30, (inception of ----------------------------- ----------------------------- development stage) 1997 1996 1997 1996 to September 30, 1997 ----- ----- ----- ----- --------------------- Revenue $ - $ - $ 50,000 $ - $ 50,000 Operating expenses Selling, general and administrative 412,515 360,828 1,360,274 1,219,864 3,583,183 Research and development 367,811 154,217 1,155,185 885,944 3,027,948 ------------ --------------- ------------- -------------- ------------------ Total operating expenses 780,326 515,045 2,515,459 2,105,808 6,611,131 ------------ --------------- ------------- -------------- ------------------ Loss from operations (780,326) (515,045) (2,465,459) (2,105,808) (6,561,131) Interest income (expense), net 118 2,195 16,055 (9,050) 9,564 ------------ --------------- ------------- -------------- ------------------ Net loss $ (780,208) $ (512,850) $ (2,449,404) $ (2,114,858) $ (6,551,567) ============ =============== ============= ============== ================== Loss per common share $ (0.13) $ (0.11) $ (0.41) $ (0.49) ------------ --------------- ------------- -------------- Weighted average common shares outstanding 6,179,881 4,673,848 6,020,837 4,307,607 ------------ --------------- ------------- --------------
See notes to unaudited condensed consolidated financial statements NexMed, Inc. (A development stage company) Condensed Consolidated Balance Sheets
September 30, 1997 December 31, (unaudited) 1996 ----------- ---- Assets - ------ Current assets: Cash and cash equivalents $ 165,257 $ 194,577 Prepaid expenses and other assets 43,449 30,000 ------------ ------------ Total current assets 208,706 224,577 Furniture and equipment, net 150,113 84,902 Advance to Joint Venture - 300,000 ------------ ------------ Total assets $ 358,819 $ 609,479 ============ ============ Liabilities and stockholders' equity - ------------------------------------ Current liabilities: Notes payable $ 100,000 $ 50,000 Accounts payable and accrued expenses 24,381 91,406 ------------ ------------ Total current liabilities 124,381 141,406 ------------ ------------ Commitments and contingencies Stockholders' equity: Preferred stock, $.001 par value, 10,000,000 shares authorized, none issued and outstanding - - Common stock, $.001 par value, 40,000,000 shares authorized, 6,180,098 and 5,071,348 issued and outstanding, respectively 6,180 5,071 Additional paid-in capital 7,071,243 4,847,032 Accumulated deficit (6,773,372) (4,323,968) ------------ ------------ 304,051 528,135 Less: deferred compensation (69,613) (60,062) ------------ ------------ Total stockholders' equity 234,438 468,073 ------------ ------------ Total liabilities and stockholders' equity $ 358,819 $ 609,479 ============ ============
The balance sheet at December 31, 1996 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. See notes to unaudited condensed consolidated financial statements NexMed, Inc. (A development stage company) Condensed Consolidated Statement of Changes in Stockholders' Equity (Unaudited)
Common Common Additional Total Stock Stock Paid-in Accumulated Deferred Stockholders' (Shares) (Amount) Capital Deficit Compensation Equity -------- -------- ------- ------- ------------ ------ Balance at inception 296,465 $ 296 $ 224,865 $ (221,805) $ - $ 3,356 Issuance of common stock 498,508 499 697,410 697,909 Net loss - - - (719,382) - (719,382) ------------ ----------- ------------- ------------- ------------- ------------- Balance at December 31, 1994 794,973 795 922,275 (941,187) - (18,117) Issuance of common stock 1,691,375 1,691 273,296 274,987 Net loss - - - (264,388) - (264,388) ------------ ----------- ------------- ------------- ------------- ------------- Balance at December 31, 1995 2,486,348 2,486 1,195,571 (1,205,575) - (7,518) Issuance of common stock 2,585,000 2,585 2,559,761 - - 2,562,346 Issuance of compensatory options and warrants - - 426,700 - (108,200) 318,500 Compensation expense - - - - 48,138 48,138 Vesting of performance based options - - 665,000 - - 665,000 Net loss - - - (3,118,393) - (3,118,393) ------------ ----------- ------------- ------------- ------------- ------------- Balance at December 31, 1996 5,071,348 5,071 4,847,032 (4,323,968) (60,062) 468,073 Issuance of common stock 1,083,750 1,084 2,136,386 - - 2,137,470 Exercise of options 25,000 25 6,225 - - 6,250 Issuance of compensatory options - - 81,600 - (81,600) - Compensation expense - - - - 72,049 72,049 Net loss - - - (2,449,404) (2,449,404) ------------ ----------- ------------- ------------- ------------- ------------- Balance at September 30, 1997 6,180,098 $ 6,180 $ 7,071,243 $ (6,773,372) $ (69,613) $ 234,438 ============ =========== ============= ============= ============= =============
See notes to unaudited condensed consolidated financial statements NexMed, Inc. (A development stage company) Condensed Consolidated Statement of Cash Flows (Unaudited)
For the nine months January 1, 1994 ended September 30, (inception of ------------------------------------ development stage) 1997 1996 to September 30, 1997 ---- ---- --------------------- Cash flows from operating activities Net loss $ (2,449,404) $ (2,114,858) $ (6,551,567) Adjustments to reconcile net loss to net cash from operating activities Depreciation 21,605 2,179 25,863 Stock issued for patents and other rights - - 532,775 Non-cash compensation expense 72,049 1,803,852 2,099,236 Decrease in prepaid expenses and other assets (13,449) - (41,624) Increase (decrease) in account payable and accrued expenses (49,525) 14,142 41,880 ---------------- ---------------- ---------------- Net cash used in operating activities (2,418,724) (294,685) (3,893,437) ---------------- ---------------- ---------------- Cash flow from investing activities Capital expenditures (86,816) (43,904) (175,976) Advances to Joint Venture - - (300,000) Return of advances to Joint Venture 300,000 - - ---------------- ---------------- ---------------- Net cash used in investing activities 213,184 (43,904) (475,976) ---------------- ---------------- ---------------- Cash flow from financing activities Issuance of common stock, net of offering costs 2,094,970 985,521 4,101,888 Proceeds from the exercise of options 6,250 - 6,250 Issuance of notes payable 100,000 100,000 265,000 Repayment of notes payable (25,000) (75,000) (140,000) ---------------- ---------------- ---------------- Net cash from financing activities 2,176,220 1,010,521 4,233,138 ---------------- ---------------- ---------------- Net increase (decrease) in cash (29,320) 671,932 (136,275) Cash, beginning of period 194,577 13,359 1,532 ---------------- ---------------- ---------------- Cash, end of period $ 165,257 $ 685,291 $ (134,743) ================ ================ ================
Non cash activity: In February 1997, a holder of a $25,000 note payable elected to convert the principal and interest due into 13,750 shares of common stock. See notes to unaudited condensed consolidated financial statements NexMed, Inc. Notes to Unaudited Condensed Consolidated Financial Statements 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Article 10-01 of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months and nine months ended September 30, 1997 are not necessarily indicative of the results that may be expected for the year ended December 31, 1997. For further information, refer to the financial statements and notes thereto dated February 25, 1997 included in the NexMed, Inc. Form 10-SB. 2. Issuance of Common Stock In February 1997, NexMed, Inc. (the "Company") issued 1,062,500 shares of common stock at $2 per share in a private placement. The Company received net proceeds of $2,094,970 from the issuance. 3. Termination of Joint Venture Agreement with Guandong Pharmaceutical and Health Products Import-Export Company and Zhongshan Shiqi Pharmaceutical Factory In July 1997, the Company, Guandong Pharmaceutical and Health Products Import-Export Company and Zhongshan Shiqi Pharmaceutical Factory terminated their agreement to form a Chinese joint venture company. The Company received the $300,000 advanced to its joint venture partner in the third quarter of 1997. 4. Joint Venture Agreement with Zhongshan (Xiao Lan) Pharmaceutical Factory. The Company is in the process of effectuating another joint venture agreement in China with Zhongshan (Xiao Lan) Pharmaceutical Factory (the "Factory"). As of September 26, 1997, NexMed Pharmaceuticals (Zhongshan) Ltd. (the "China Joint Venture"), a joint-venture company formed pursuant to an agreement between NexMed (Asia) Limited ("NexMed Asia"), a wholly-owned subsidiary of the Company, and the Factory, received all necessary Chinese governmental approvals and obtained a commercial license. It is anticipated that the Company's initial investment in the China Joint Venture of $2.17 million will be paid in installments during the fourth quarter of 1997 with funds received in an ongoing private placement (see Note 5 below), with an additional $1.33 million due in two installments during the 13th to 36th months. As of November 13, 1997, NexMed Asia has contributed $1,000,000 to the China Joint Venture. 5. Subsequent Event - Private Placement In order to finance its day-to-day operations and meet NexMed Asia's initial investment commitment and acquisition of its 70% interest in the China Joint Venture (see Note 4 above), the Company is completing a private placement of subordinated debt and warrants. The offering has not been registered with the Securities and Exchange Commission under the U.S. Securities Act of 1933, as amended, pursuant to an exemption from registration under Regulation S. Item 2. Plan of Operation. NexMed, Inc. ("NexMed"), which has been in existence since 1987 and is in the development stage, has, since 1994, positioned itself as a medical and pharmaceutical technology company with a focus on developing and commercializing therapeutic products based on proprietary delivery systems. NexMed (together with its subsidiaries, the "Company") currently intends to focus its efforts on: (i) topical treatment products based on a penetration enhancement technology known as NexACT(TM), which may enable the active drug to be better absorbed through the skin. The NexACT(TM) technology is designed to enhance absorption through the skin, overcoming the skin's natural barrier properties and enabling the rapid penetration of high concentrations of the active drug directly to the site of the skin or extremity at which the active drug's effect is desired, thereby resulting in improved therapeutic outcomes and reduced gastrointestinal or other systemic side effects that often accompany oral medications. The Company currently intends to direct its topical delivery system development efforts on drugs previously approved by the Food and Drug Administration ("FDA") with proven efficacy and safety profiles, with patents expiring or expired and with proven market records and potential. Currently, the primary topical treatment product under research and development by the Company is an alprostadil cream for the treatment of male erectile dysfunction (impotence). The Company has recently filed a trademark application for the alprostadil cream incorporating the NexACT(TM) enhancers under the name Alprox-TD(TM). Also under research and development are ibuprofen and ketoprofen cream formulations for sports medicine and arthritis treatment and an acyclovir anti-viral cream for the treatment of herpes simplex; (ii) the Viratrol(TM) device, a therapeutic medical device for the treatment of herpes simplex diseases which does not require the use of any drugs. The Company believes that the electrical current, which is topically delivered by the device to an infected site, blocks lesions from forming or shortens healing time once lesions develop; and (iii) through the formation of a joint venture in China, research and development, production and distribution in China and other international markets of medical and pharmaceutical products, including generic pharmaceuticals currently approved and sold in China and products incorporating new and advanced technologies. As of September 26, 1997, NexMed Pharmaceuticals (Zhongshan) Ltd. (the "China Joint Venture"), a joint-venture company formed pursuant to an agreement between NexMed (Asia) Limited ("NexMed Asia"), a wholly-owned subsidiary of the Company based in Hong Kong, and Zhongshan Xiao Lan Pharmaceutical Factory, located in Zhongshan City, Guangdong Province, China, received all necessary Chinese governmental approvals and obtained a commercial license. Toward meeting NexMed Asia's initial investment commitment and acquisition of its 70% interest in the China Joint Venture, the Company is completing a private placement of subordinated debt and warrants. During the next 12 months, depending on the amount of funding available, the Company intends to expand its research, development and marketing activity and capability, both domestically and internationally, with regard to its proprietary pharmaceutical products, and intends to execute a business strategy with the goal of achieving a level of development and commercialization sufficient to enable the Company to attract potential strategic partners with resources sufficient to further develop and market its products. The Company also intends to undertake the commercialization of new and off-patent products in particular international markets through strategic partners, licensees, importers and brokers. With respect to the United States, the Company intends to commence the FDA application and approval process for the Alprox-TD(TM) cream and the Viratrol(TM) herpes treatment device. The first step in the Company's plan for the next 12 months with regard to the research, development and commercialization of the Alprox-TD(TM) cream and the Viratrol(TM) device is the completion of the clinical studies currently in progress on each of the two proposed products in China. It is expected that the studies on the Viratrol(TM) device and the Alprox-TD(TM) cream will be concluded during the first half of 1998. Both studies are subject to local government review at various stages, which could affect the delivery time of the final results. Pending satisfactory results, the Company expects that the clinical data generated should permit the Company to submit an application for manufacturing and marketing approval of the Alprox-TD(TM) cream in China and other developing-world countries, and a notification of sale for the Viratrol(TM) device in Canada. With respect to the approval of its products in the United States, the Company plans during the fourth quarter of 1997 to generate the data necessary to file with the FDA an Investigational New Drug ("IND") application for the Alprox-TD(TM) cream and complete the 60-patient (30 male and 30 female) Phase I study on the Alprox-TD(TM) cream which was commenced in the United States in September 1997, pending FDA approval. Following completion of the Phase I studies, the Company expects to initiate Phase II studies in the United States. Phase I studies assess the most common acute adverse effects of a drug and examine the size of doses that patients can take safely without a high incidence of side effects. Generally, 20 to 100 healthy volunteers or patients are studied for a period of several months. The focus of Phase I is safety. If no major problems, such as toxicity, are discovered in Phase I, the next step is a Phase II study in which the drug's efficacy is determined by means of its administration to subjects who have the condition the drug is intended to treat. Researchers then assess whether the drug has a favorable effect on the condition and also 3 begin to identify the correct dosage level (dose ranging). Phase II involves the study of up to several hundred subjects for approximately 12 months. The focus of Phase II is effectiveness with short-term safety. As part of the Company's strategy for developing, protecting and marketing its technology, the Company intends during the next 12 months to file additional patent applications with respect to its products and hopes to secure U.S. and international strategic partners for its leading products under development. Furthermore, the China Joint Venture has received all necessary Chinese governmental approvals and a commercial license and consequently has the rights to manufacture and market certain generic drugs and Chinese herbal products approved for sale in China. The Company also intends to utilize the China Joint Venture's manufacturing infrastructure and marketing network to introduce the Company's products under development into China and other regional markets. The Company is planning to expand its international representation through the establishment of its own sales offices in North and South America, and partnering with local distribution companies in selective developing markets. In August 1997, the Company established NexMed (Americas) Limited ("NexMed Americas"), a wholly-owned subsidiary based in Mississauga, Ontario, responsible for the Company's North and South American manufacturing and distribution activities. Previously, the Company had explored the possibility of expanding its domestic laboratory research capability by the funding and operation of new biosciences laboratories in Fort Worth, Texas, in collaboration with the University of North Texas Health Science Center, at which Robert W. Gracy, Ph.D., one of the Company's Directors and a member of the Company's Scientific Advisory Committee, and S. Dan Dimitrijevich, Ph.D., also a Scientific Advisory Committee member, are faculty members. However, while the Company did expand operations at its topical formulation development laboratories in Lawrence, Kansas and is continuing with its existing biosciences operations in Fort Worth, it has decided to postpone the commitment of resources necessary for expansion of the Fort Worth laboratories until additional financing, including government research grants, is available. As a result of the ongoing private placement, management believes that the Company has sufficient cash to sustain its current day-to-day operations through the end of December, including operations at the headquarters office in Los Angeles, its topical formulation development laboratories in Lawrence, Kansas and international sales offices in Hong Kong and Canada. The Company has plans for additional private placements in 1998 to sustain its day-to-day operations. The Company expects to enter into licensing agreements and receive certain licensing payments from licensing partners during the upcoming 12 months. In January 1997, the Company, through NexMed International Limited, another of its international subsidiaries, signed a license agreement with Lotus Medical Supply, Inc., a Taiwanese company. In addition, on October 2, 1997, the Company entered into a Supply and Distribution Agreement with Finadiet S.A.C.I.F., ("Finadiet"), an Argentinian 4 manufacturer and distributor of urological pharmaceutical products, for the distribution of the Alprox-TD(TM) cream in Argentina and Uruguay. Under the agreement, the Company would manufacture and supply the Alprox-TD(TM) cream under a new trademark and packaging proposed for Latin America. Finadiet is obligated to pay the expenses and obtain regulatory approval to market the product, in exchange for a five-year exclusive sales and distribution right for the two countries. Pending regulatory approval, Finadiet also agreed to purchase a minimum quantity of $23.7 million of products during such five-year period. In addition, the Company has received inquiries from pharmaceutical companies worldwide regarding the work of the topical formulation development laboratories in Lawrence, Kansas, including requests regarding the utilization of the Company's patented NexACT(TM) penetration enhancement technology and the co-development of proprietary new drugs that have absorption or penetration difficulties. The Company believes that such inquiries could lead to the receipt of licensing or contract development fees within the next twelve months. The Company has incurred cumulative net operating losses of $6,551,567 since its inception as a medical and pharmaceutical technology company in 1994, and expects to incur substantial additional losses in completing the research, development and commercialization of its technologies. Accordingly, the Company will require additional funding to reach certain goals. In order to continue or initiate the clinical studies on the Alprox- TD(TM) cream and the Viratrol(TM) device in the U.S., the Company will need to raise $2 million. Furthermore, it is anticipated that the Company's initial investment in the China Joint Venture of $2.17 million will be paid in installments during the fourth quarter of 1997 with funds received in the ongoing private placement, with the balance due in two installments during the 13th to 36th months. As of November 13, 1997, NexMed Asia has contributed $1,000,000 to the China Joint Venture. In addition, the Company expects to allocate $800,000 for international operations. The Company does not expect to acquire any significant or expensive large-scale equipment or instruments within the coming 12 months. The Company believes that its planned $3.5 million investment in the China Joint Venture will include adequate funding for the proposed renovation work in order to upgrade certain of its operations to Good Manufacturing Practices ("GMP") standards. During the third quarter of 1997, the Company hired two senior-level employees, James A. DiTanna and Anton H. Amann. Mr. DiTanna was named Vice- President and Chief Financial Officer of NexMed and Dr. Amann has been named Vice-President of NexMed and will also serve as a Director and General Manager of NexMed Americas. Currently, the Company has 19 employees and expects in the fourth quarter of 1997 to hire an additional employee with expertise in clinical management. The cost that the Company expects to incur during the next 12 months with regard to salary and benefits for such employees will be approximately $1.2 million. 5 In order to meet the aforementioned immediate funding requirements, the Company will need to raise $6 million, a portion of which it is currently seeking to raise through an ongoing private placement. Additional placements are contemplated during the next 12 months. The Company's operations are subject to numerous risks associated with the establishment and development of products based upon innovative or novel technologies. As a result, the Company must be evaluated in light of the problems, delays, uncertainties and complications encountered in connection with newly founded businesses. Some of these unanticipated problems may include development, regulatory, manufacturing, distribution and marketing difficulties that may be beyond the Company's financial or technical abilities to resolve satisfactorily. This report contains forward-looking information, including statements regarding the Company's plans, objectives, expectations and intentions. All forward-looking statements are subject to risks and uncertainties that could cause the Company's actual results and experience to differ materially from such projections. Reference should be made to the Company's filing on Form 10-SB/A with the Securities and Exchange Commission and, in particular, the sections entitled "Description of Business" and "Plan of Operation." 6 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits (in accordance with Item 601 of Regulation S-B) * 3.1 Amended and Restated Articles of Incorporation of the Company ** 3.2 By-laws of the Company *** 3.3 Amendment to By-laws of the Company **** 4.1 Specimen Common Stock Certificate # 9.1 Form of Irrevocable Proxy ***** 10.1 Technology Acquisition Agreement between the Company and Odontex, Inc. + 10.2 Research Agreement between the Company and the University of Kansas, effective June 15, 1996 and modified November 22, 1996 - ------------------------------ * Incorporated by reference to Exhibit 2.1 filed with the Registrant's Form 10-SB filed with the Commission on March 14, 1997. ** Incorporated by reference to Exhibit 2.2 filed with the Registrant's Form 10-SB filed with the Commission on March 14, 1997. *** Incorporated by reference to Exhibit 2.3 filed with the Registrant's Form 10-SB filed with the Commission on March 14, 1997. **** Incorporated by reference to Exhibit 3.1 filed with the Registrant's Form 10-SB filed with the Commission on March 14, 1997. # Incorporated by reference to Exhibit 5.1 filed with the Registrant's Form 10-SB/A filed with the Commission on May 13, 1997. ***** Incorporated by reference to Exhibit 6.1 filed with the Registrant's Form 10-SB filed with the Commission on March 14, 1997. + Incorporated by reference to Exhibit 6.2 filed with the Registrant's Form 10-SB/A filed with the Commission on June 5, 1997. 7 ++ 10.3 Research Agreement between the Company and the University of Kansas, executed November 1996 +++ 10.4 The NexMed, Inc. Stock Option and Long-Term Incentive Compensation Plan ++++ 10.5 The NexMed, Inc. Recognition and Retention Stock Incentive Plan +++++ 10.6 The NexMed, Inc. Non-Qualified Stock Option Plan @ 10.7 License Agreement between the Company and Lotus Medical Supply, Inc. @@ 10.8 Agreement between the Company and Innapharma, Inc. regarding alprostadil clinical studies @@@ 10.9 Agreement between the Company and Innapharma, Inc. regarding clinical studies on the Viratrol(TM) device, including two amendments 11.1 Statement re: Computation of Per Share Earnings ## 15.1 Letter on Change in Certifying Accountant - -------------------------------- ++ Incorporated by reference to Exhibit 6.3 filed with the Registrant's Form 10-SB/A filed with the Commission on June 5, 1997. +++ Incorporated by reference to Exhibit 6.4 filed with the Registrant's Form 10-SB/A filed with the Commission on June 5, 1997. ++++ Incorporated by reference to Exhibit 6.5 filed with the Registrant's Form 10-SB/A filed with the Commission on June 5, 1997. +++++ Incorporated by reference to Exhibit 6.6 filed with the Registrant's Form 10-SB/A filed with the Commission on June 5, 1997. @ Incorporated by reference to Exhibit 6.7 filed with the Registrant's Form 10-SB/A filed with the Commission on July 2, 1997. @@ Incorporated by reference to Exhibit 6.8 filed with the Registrant's Form 10-SB/A filed with the Commission on July 2, 1997. @@@ Incorporated by reference to Exhibit 6.9 filed with the Registrant's Form 10-SB/A filed with the Commission on July 2, 1997. ## Incorporated by reference to Exhibit 12.2 filed with the Registrant's Form 10-SB/A filed with the Commission on May 13, 1997. 8 ### 21.1 Subsidiaries of the Company 27 Financial Data Schedule - -------------------------------------------------------------------------------- ### Incorporated by reference to Exhibit 12.3 filed with the Registrant's Form 10-SB/A filed with the Commission on May 13, 1997. 9 SIGNATURES In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NEXMED, INC. Date: November 14, 1997 /s/ Y. Joseph Mo ----------------- ------------------------------------ Y. Joseph Mo Chairman of the Board of Directors, President and Chief Executive Officer Date: November 14, 1997 /s/ Vivian H. Liu ----------------- ------------------------------------ Vivian H. Liu, Vice President and Secretary EX-11.1 2 STATE RE:COMPUTATION OF PER SHARE EARNINGS STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS NexMed, Inc. Computation of Per Share Earnings FOR THE PERIODS ENDED SEPTEMBER 30, 1996 ----------------------------------------
Weighted average Days Outstanding shares outstanding ---------------- ------------------ Shares Quarter Year-to-date Quarter Year-to-date ------ ------- ------------ ------- ------------ Opening balance - January 1, 1996 2,486,348 92 274 2,486,348 2,486,348 Shares issued with notes payable 12,500 92 250 12,500 11,405 Shares issued for services 1,600,000 92 228 1,600,000 1,331,387 Shares issued for cash 575,000 92 228 575,000 478,467 ------------- ------------- Weighted average shares outstanding 4,673,848 4,307,607 Net loss for the period $ (512,850) $ (2,114,858) ------------- ------------- Net loss per common share $ (0.11) $ (0.49) ============= ============= FOR THE PERIODS ENDED SEPTEMBER 30, 1997 ---------------------------------------- Opening balance - January 1, 1997 5,071,348 92 273 5,071,348 5,052,839 Shares issued with notes payable 7,500 92 273 7,500 7,473 Shares issued for cash 1,062,500 92 243 1,062,500 942,290 Shares issued upon conversion of notes payable 13,750 92 147 13,750 7,377 Shares issued upon exercise of stock options 5,000 92 231 5,000 4,215 Shares issued upon exercise of stock options 20,000 91 91 19,783 6,642 ------------- ------------- Weighted average shares outstanding 6,179,881 6,020,837 Net loss for the period $ (780,208) $ (2,449,404) ------------- ------------- Net loss per common share $ (0.13) $ (0.41) ============= =============
EX-27 3 FINANCIAL DATA SCHEDULE
5 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 165,257 0 0 0 0 208,706 150,113 (25,863) 358,819 124,381 0 0 0 6,180 228,258 358,819 0 50,000 0 0 2,515,459 0 (16,055) (2,449,404) 0 (2,449,404) 0 0 0 (2,449,404) (0.41) (0.41)
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