TPTX » Topics » See accompanying notes.

This excerpt taken from the TPTX 10-K filed Mar 27, 2009.

See accompanying notes.

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Table of Contents


TorreyPines Therapeutics, Inc.

STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center">Notes to Consolidated Financial Statements

SIZE="2">December 31, 2008

 





1.Organization and Summary of Significant Accounting Policies

SIZE="2">Organization and Business

TorreyPines Therapeutics, Inc. is a biopharmaceutical company committed to providing
patients with better alternatives to existing therapies through the development and commercialization of small molecule compounds. Our goal is to develop versatile product candidates each capable of treating a number of acute and chronic diseases
and disorders such as migraine, acute and chronic pain, and xerostomia. TorreyPines is a Delaware corporation and operates in one business segment.

SIZE="2">Prior to October 3, 2006 the name of the Company was Axonyx Inc. (“Axonyx”). On October 3, 2006, Axonyx completed a merger with TorreyPines Therapeutics, Inc. pursuant to which a wholly-owned subsidiary of
Axonyx merged with and into TorreyPines Therapeutics, Inc. (the “Merger”). TorreyPines Therapeutics, Inc. was the surviving entity in the Merger, and became a wholly owned subsidiary of Axonyx. TorreyPines Therapeutics, Inc.
changed its name to TPTX, Inc., and Axonyx changed its name to TorreyPines Therapeutics, Inc. (“TorreyPines”). The Merger was accounted for as a reverse acquisition. These financial statements reflect the historical results of
TPTX, Inc. prior to the Merger and that of the combined company following the Merger, and do not include the historical results of Axonyx prior to the completion of the Merger. All share and per share disclosures have been retroactively
adjusted to reflect the exchange of shares in the Merger, and the 8-for-1 reverse split of our common stock on October 3, 2006. All references to “TorreyPines,” “we,” “us” or “our” mean TorreyPines
Therapeutics, Inc. and its subsidiaries, except where it is made clear that the term means only the parent company.

We have incurred
net losses of $22.8 million, $23.4 million and $25.4 million for the years ended December 31, 2008, 2007 and 2006, respectively. Since inception, and through December 31, 2008, we have an accumulated deficit of $119.2 million. Based
on our operating plan, our existing working capital is not sufficient to meet our cash requirements to fund our planned operating expenses and working capital requirements through December 31, 2009 without additional sources of cash.

These conditions raise substantial doubt about our ability to continue as a going concern. The accompanying financial statements have been
prepared assuming that we will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Our management plans to address the expected shortfall of working capital by securing additional funding through project financing, equity financing, a
development partner or the sale of assets. If we are unsuccessful in securing funding from any of these sources, we will defer, reduce or eliminate certain planned expenditures. There can be no assurance that we will be able to obtain any sources of
funding.

If we cannot obtain sufficient funding in the short-term, we may be forced to significantly curtail our operations, file for
bankruptcy, cease operations or liquidate and dissolve the Company. Additionally, if we do not obtain sufficient funding in the short-term, we project that we will violate the minimum cash balance covenant of our debt agreement which would cause a
default under the agreement. At the time cash drops below the minimum requirement, we project we will have sufficient cash to repay the outstanding balance of the debt agreement should the lender declare the debt immediately due and payable. The
consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should we be forced to take any such actions.

 


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Table of Contents


These excerpts taken from the TPTX 10-K filed Mar 31, 2008.

See accompanying notes.

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TorreyPines Therapeutics, Inc.

Notes to Consolidated Financial Statements

December 31, 2007

See accompanying notes.



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TorreyPines Therapeutics, Inc.

Notes to Consolidated Financial Statements

December 31, 2007



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