LadRx Corp - Quarter Report: 2002 March (Form 10-Q)

Delaware		58-1642740
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
154 Technology Parkway
Suite 200
Norcross, Georgia		30092
(Address of principal executive offices)		(Zip Code)

		Page
PART I.   FINANCIAL INFORMATION
Item 1  Financial Statements:
Condensed Balance Sheets as of March 31, 2002 (unaudited) and December 31, 2001		3
Condensed Statements of Operations (unaudited) for the Three Month Periods Ended     March 31, 2002 and 2001		4
Condensed Statements of Cash Flows (unaudited) for the Three Month Periods Ended     March 31, 2002 and 2001		5
Notes to Condensed Financial Statements		6
Item 2   Management’s Discussion and Analysis of Financial Condition and Results of Operations		8
Item 3   Quantitative and Qualitative Disclosures About Market Risk		11
PART II.  OTHER INFORMATION
Item 6   Exhibits and Reports on Form 8-K		11
SIGNATURES		12

			March 31, 2002				December 31, 2001
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	4,988,697			$	5,272,914
Accounts receivable, net			18,610				28,000
Current portion of note receivable			125,555				122,467
Other current assets			128,914				23,238
Total current assets			5,261,776				5,446,619
Property and equipment, net			1,599,508				1,745,728
Other assets:
Note receivable			332,678				365,249
Deferred transaction costs			357,466				—
Other assets			53,000				53,000
Total other assets			743,144				418,249
Total assets		$	7,604,428			$	7,610,596
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	29,142			$	178,777
Accrued liabilities			717,658				849,068
Total current liabilities			746,800				1,027,845
Commitments
Stockholders’ equity:
Preferred Stock, $.01 par value, 1,000 shares authorized, including 1,000 shares of Series A Junior Participating Preferred Stock; no shares issued and outstanding			—				—
Common stock, $.001 par value, 50,000,000 shares authorized; 12,198,595 and 11,459,012 shares issued at March 31, 2002 and December 31, 2001, respectively			12,199				11,459
Additional paid-in capital			75,085,674				74,632,292
Treasury stock, at cost (633,816 shares held at March 31, 2002 and December 31, 2001)			(2,279,238	)			(2,279,238	)
Accumulated deficit			(65,961,007	)			(65,781,762	)
Total stockholders’ equity			6,857,628				6,582,751
Total liabilities and stockholders’ equity		$	7,604,428			$	7,610,596

		Three Month Period Ended March 31,
		2002				2001
Revenues:
Service revenues		$	22,453			$	26,014
License fees			1,000,000				—
Interest income			32,117				60,824
Grant income			31,313				45,752
Other			55,137				50,204
			1,141,020				182,794
Expenses:
Cost of service revenues			11,287				12,608
Research and development			318,801				448,673
Selling, general and administrative			990,177				878,745
			1,320,265				1,340,026
Net loss		$	(179,245	)		$	(1,157,232	)
Basic and diluted loss per common share		$	(0.02	)		$	(0.11	)
Basic and diluted weighted average shares outstanding			11,091,535				10,136,446

		Three Month Period Ended March 31,
		2002				2001
Cash flows from operating activities:
Net loss		$	(179,245	)		$	(1,157,232	)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization			146,220				146,562
Stock option and warrant expense			89,000				479,416
Net change in assets and liabilities			(705,314	)			(433,266	)
Total adjustments			(470,094	)			192,712
Net cash used in operating activities			(649,339	)			(964,520	)
Cash flows from financing activities:
Net proceeds from issuance of common stock			365,122				30,469
Net cash provided by financing activities			365,122				30,469
Net decrease in cash and cash equivalents			(284,217	)			(934,051	)
Cash and cash equivalents at beginning of period			5,272,914				3,779,376
Cash and cash equivalents at end of period		$	4,988,697			$	2,845,325

(in thousands)		Product Development				Recruiting Services *			Total
Three Months Ended March 31, 2002
Sales to external customers		$	—			$	22		$	22
Intersegment sales			—				—			—
License fee income			1,000				—			1,000
Interest income			32				—			32
Grant & other income			86				—			86
Interest expense			—				—			—
Depreciation and amortization			146				—			146
Stock option and warrant expense			89				—			89
Segment profit (loss)			(185	)			5			(180	)
Total assets			7,604							7,604
Capital expenditures			—				—			—
Three Months Ended March 31, 2001
Sales to external customers			—				26			26
Intersegment sales			—				—			—
License fee income			—				—			—
Interest income			61				—			61
Grant & other income			96				—			96
Interest expense			—				—			—
Depreciation and amortization			147				—			147
Stock option and warrant expense			479				—			479
Segment profit (loss)			(1,164	)			7			(1,157	)
Total assets			5,785				—			5,785
Capital expenditures			—				—			—

CYTRX CORPORATION (Registrant)
By:		/s/    MARK W. REYNOLDS
		Mark W. Reynolds Vice President, Finance (Chief Accounting Officer and a duly authorized officer)