OTC Bulletin Board

S & P Company Insight for VYTERIS INC

Business Summary: Vyteris, Inc. develops systems to transdermally deliver peptide and small molecule drugs. Its Smart Patch transdermal technology is used to deliver a peptide molecule in humans without the use of needles.
  13-01 Pollitt Drive
  Fair Lawn , NJ 07410
  Phone: 201-703-2299
  Fax: 201-703-2295
  Website: http://www.vyteris.com
  Amper, Politziner & Mattia, P.C.
Transfer Agent
  American Stock Transfer & Trust Co.
Employees:  61
ShareHolders:  946
Founded:  1954
Domicile:  Nevada

Vyteris, Inc. develops systems to transdermally deliver peptide and small molecule drugs. Its Smart Patch transdermal technology is used to deliver a peptide molecule in humans without the use of needles. The company offers LidoSite, a topical delivery system, indicated for use on normal intact skin to provide local anesthesia prior to needle stick procedures, such as venipunctures, injections, and intravenous therapies for arthritis and oncology patients, as well as superficial dermatological procedures. Its LidoSite is also used in physician office, hospitals, and commercial diagnostic laboratories. The company is also developing products using its Smart Patch transdermal technology for female infertility treatment, migraine treatment, pain management, and topical anesthetic applications. Vyteris has a license and development agreement with Ferring Pharmaceuticals, Inc. to develop a product for female infertility treatment. The company, formerly known as Vyteris Holdings (Nevada), Inc., was founded in 2000 and is headquartered in Fair Lawn, New Jersey.
History:  INCORPORATED in Nevada Mar. 13, 1997; and on Apr. 1, 1997, merged a Utah corporation of the same name (Treasure - Utah). Treasure - Utah was incorporated in Utah July 2, 1954, as Treasure Mountain Mining Company; name changed to Treasure Mountain Holdings, Inc. Feb. 11, 1997; to Vyteris Holdings (Nevada), Inc. May 2, 2005; and to Vyteris, Inc. May 2, 2007. September 29, 2004, acquired Vyteris, Inc. (Vyteris) through merger of a wholly owned subsidiary of the company into Vyteris. In the merger, outstanding Common shares of Vyteris were converted into the right to receive approximately 189,526,467 Common shares of the company; and outstanding Series C Convertible Redeemable Preferred shares of Vyteris were converted into the right to receive 7,500,000 Series B Convertible Redeemable Preferred shares of the company. Vyteris, Inc. (the acquired company) was incorporated in Delaware July 19, 2000, as Drug Delivery Technologies, Inc.; name changed to Vyteris, Inc. Feb. 13, 2001. Vyteris had no operating activity prior to Nov. 10, 2000.
Vyteris, Inc.
Capital Expenditures, thousand. US Dollars
  Year  Amount
  2006  96
  2005  1,324
  2004  487
Research and Development Expenditures, thousand. US Dollars
  Year  Amount
  2006  8,080
  2005  8,923
  2004  11,455


 Donald F. FarleyChairman & Chief Executive Officer
 Haro  HartounianPresident
 Joseph  HimyChief Financial Officer & Chief Accounting Officer
 Ashutosh  SharmaExec VP
 David T. DiGiacintoSecretary

 John E. Burrows, Jr.
 Arthur  Courbanou
 David T. DiGiacinto
 Donald F. Farley
 Susan P. Guerin
 Harold  Paz
 Russell Owen Potts
 Annual Report

Annual Report
Income Statement
Product sales$24,868$70,159$315,497
Product development revenue2,634,5402,243,3681,407,883
Other revenue124,679150,583485,626
Total revenues2,784,0872,464,1102,209,006
Costs and expenses:
Cost of sales1,490,847240,7143,407,702
Research and development8,956,9628,080,2288,922,600
General and administrative15,369,2436,648,8135,720,237
Sales and marketing6,251,3621,121,261-----------
Impairment of fixed assets82,637192,8502,134,308
Non-cash warrant expense - financial consultants17,115,000----------------------
Registration rights penalty260,184260,1841,620,764
Total costs and expenses49,526,23516,544,05021,805,611
Loss from operations(46,742,148)(14,079,940)(19,596,605)
Interest (income) expense:
Interest income(210,359)(93,435)(74,549)
Interest expense to related parties2,208,5571,767,8852,221,707
Interest expense1,790,1973,742,6123,808,828
Interest expense, net3,788,3955,417,0625,955,986
Other expenses:
Non-cash debt extinguishment6,724,523382,781-----------
Non-cash modification of redeemable preferred stock terms3,680,000----------------------
Revaluation of warrant liability10,341,408837,764-----------
Total other expenses,20,745,9311,220,545-----------
Loss before benefit from state income taxes(71,276,474)(20,717,547)(25,552,591)
Benefit from state income taxes463,786466,887291,722
Net loss $(70,812,688)$(20,250,660)$(25,260,869)
Net loss per common share:
Basic and diluted $(0.89)$(0.79)$(1.31)
Weighted average number of common shares:
Basic and diluted80,007,51425,770,29219,293,858
Operating Income As Calculated
Depr. and Amort.
Fixed Charges Coverage:
Available for Fixed Charges
Gross Fixed Charges
Fixed Charges Times Earnings
Fixed Charges Coverages and Preferred Dividends Times Earnings
Capital Expenditures
Research & Development Expenditures
Balance Sheet
Current assets:
Cash and cash equivalents$1,716,671$2,171,706
Accounts receivable, net7,25788,731
Inventories, net------------3,374
Prepaid expenses and other current assets246,519311,684
Restricted cash50,42890,994
Total current assets2,020,8752,666,489
Restricted cash, less current portion240,000300,000
Property and equipment, net688,800936,103
Debt issuance costs------------82,676
Other assets276,026273,376
TOTAL ASSETS$3,225,701$4,258,644
Current liabilities:
Working Capital Facility to a related party $------------$2,500,000
Senior secured convertible promissory note, net of discount243,597------------
Senior secured convertible debentures, net of discount------------210,048
Subordinated convertible notes due to related party5,366,550------------
Warrant liability------------8,993,368
Accounts payable1,897,3592,838,959
Accrued registration rights penalty2,141,1321,880,948
Interest payable and accrued expenses due to related party1,821,519933,277
Accrued expenses, deferred revenue and current portion of capital lease obligations2,262,2952,817,258
Total current liabilities13,732,45220,173,858
Working Capital Facility to a related party2,850,000------------
Senior secured convertible debentures, net of discount------------12,050
Subordinated convertible notes due to a related party, net of discount------------5,325,631
Deferred revenue, less current portion318,284442,962
Capital lease obligations, less current portion------------22,422
Preferred stock, 50,000,000 shares authorized, on December 31, 2007 and December 31, 2006:
Series B convertible, mandatorily redeemable preferred stock; 7,500,000 shares
issued and outstanding on December 31, 2007 and December 31, 2006;
liquidation preference $9,450,000 and $8,850,000 at December 31, 2007 and
December 31, 2006, respectively9,450,0008,850,000
Total liabilities26,350,73634,826,923
Commitments and contingencies
Stockholders' equity (deficit):
Common stock, par value $.001 per share; 500,000,000 shares authorized,
88,880,897 and 63,284,956 shares issued and outstanding at December 31, 2007
and December 31, 2006, respectively88,88163,285
Additional paid-in capital149,152,70270,922,366
Accumulated deficit(172,366,618)(101,553,930)
Total stockholders' equity (deficit)(23,125,035)(30,568,279)
The accompanying notes are an integral part of these consolidated financial statements.
Net Working Capital
Equity per Share
Depr. and Amort. Reserve
Preferred Shares Issued
Common Shares Issued
Treasury Shares - Preferred
Treasury Shares - Common
 Interim Report

Interim Report   
Data Not Available
 Pro Forma Report

Pro Forma Report   
Data Not Available
 Quarterly Report

Quarterly Report Information   
Quarterly Revenue, US$
  2008   1720,000
  2008   2950,000
  2007   1950,000
  2007   2820,000
  2007   3790,000
  2007   4230,000
  2007   Full Year 2,780,000
  2006   1510,000
  2006   2600,000
  2006   3610,000
  2006   Full Year 2,460,000
  2005   1520,000
  2005   2470,000
  2005   3570,000
  2005   4650,000
  2005   Full Year 2,210,000
  2004   Full Year 240,000
Quarterly Net Income, US$
  2008   1(1,760,000)
  2008   2(1,630,000)
  2007   1(9,790,000)
  2007   2(12,230,000)
  2007   3(39,600,000)
  2007   4(9,200,000)
  2007   Full Year (70,810,000)
  2006   1(4,140,000)
  2006   2(3,790,000)
  2006   3(4,240,000)
  2006   Full Year (20,250,700)
  2005   1(4,260,000)
  2005   2(5,170,000)
  2005   3(8,990,000)
  2005   4(6,850,000)
  2005   Full Year (25,261,000)
  2004   Full Year (22,570,000)
  2003   Full Year (12,530,000)
Quarterly EPS, US$
  2008   1(.27)
  2008   2(.23)
  2007   1(2.25)
  2007   2(2.25)
  2007   3(6.90)
  2007   4(1.95)
  2007   Full Year (13.28)
  2006   1(3.15)
  2006   2(3.00)
  2006   3(3.30)
  2006   Full Year (11.84)
  2005   1(3.30)
  2005   2(4.05)
  2005   3(7.05)
  2005   4(5.25)
  2005   Full Year (19.64)
  2004   Full Year (133.43)
 Stock Data

Capitalization as of 03/31/2008:
 Authorized SharesOutstanding Shares
Common $0.001 par200,000,000107,959,312
Common $0.001 par
Stockholders:  04/07/2008, 946.
PRINCIPAL STOCKHOLDERS: March 31, 2007, Kevin Kimberlin owned or controlled 35.3% of the Common and Qubit Holdings, LLC 11.2%.
Transfer Agent:  American Stock Transfer & Trust Co.   New York , NY
OTC Bulletin Board( Primary): VYTR
OTC Bulletin Board20073.12000.4600
OTC Bulletin Board20061.45000.1050
OTC Bulletin Board20056.00000.3000
DIVIDENDS: Common $0.001 par: No cash. Common reverse split 1-for-10, May 16, 2005.
  so1Consists of Ser. B Conv. Mandatorily Redeemable Preferred. Liquidation preference, $9,600,000.