BIOSPECIFICS TECHNOLOGIES CORP.
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Delaware
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11-3054851
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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35 Wilbur Street, Lynbrook, NY
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11563
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Name of each exchange on which registered |
Common Stock | The Nasdaq Global Market |
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Large accelerated filer
¨
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Accelerated filer þ |
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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Smaller reporting company ¨ |
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Page
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PART I
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3
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Item 1.
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3
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Item 1A.
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19
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Item IB.
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30
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Item 2.
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30
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Item 3.
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30
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Item 4.
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30
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PART II
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31
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Item 5.
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31
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Item 6.
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34
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Item 7.
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34
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Item 7A.
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52
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Item 8.
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52
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Item 9.
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52
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Item 9A.
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52
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Item 9B.
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53
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PART III
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53
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||
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Item 10
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53
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Item 11.
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53
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Item 12.
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53
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Item 13.
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53
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Item 14.
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54
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PART IV
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54
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Item 15.
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54
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•
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Auxilium’s ability to manufacture and commercialize XIAFLEX for which we would receive milestone, mark-up on cost of goods sold and royalty payments;
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•
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Sobi’s ability to commercialize XIAPEX in its territory and Actelion’s ability to commercialize XIAFLEX in Canada or Australia;
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•
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the amount actually owed to Auxilium for certain patent costs;
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•
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the scope, rate of progress, cost and results of our clinical trials on additional indications, including human lipoma, for which Auxilium could exercise its option to acquire rights to them, and whether Auxilium exercises the option for canine lipoma;
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•
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the terms and timing of any future collaborative, licensing, co-promotion and other arrangements that we may establish;
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•
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the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights or defending against any other litigation;
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•
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the extent to which Auxilium’s acquisition of Actient and in-licensing of STENDRA™ results in Auxilium’s reallocation of priority away from XIAFLEX; and
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•
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the extent to which Auxilium focuses on men’s health and away from orthopedic or dermatology (Dupuytren’s contracture, frozen shoulder, cellulite).
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· | changes to the regulatory approval process for product candidates; |
· | obtaining regulatory approval to commence a clinical trial; |
· | timing of responses required from regulatory authorities; |
· | negotiating acceptable clinical trial agreement terms with prospective investigators or trial sites; |
· | obtaining institutional review board, or equivalent, approval to conduct a clinical trial at a prospective site; |
· | recruiting subjects to participate in a clinical trial; |
· | competition in recruiting clinical investigators; |
· | shortage or lack of availability of clinical trial supplies from external and internal sources; |
· | the need to repeat clinical trials as a result of inconclusive results or poorly executed testing; |
· | failure to validate a patient-reported outcome questionnaire; |
· | the placement of a clinical hold on a study; |
· | the failure of third parties conducting and overseeing the operations of our clinical trials to perform their contractual or regulatory obligations in a timely fashion; and |
· | exposure of clinical trial subjects to unexpected and unacceptable health risks or noncompliance with regulatory requirements, which may result in suspension of the trial. |
•
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clinical trials may show product candidates to be ineffective or not as effective as anticipated or to have harmful side effects or any unforeseen result;
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•
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product candidates may fail to receive regulatory approvals required to bring the products to market;
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•
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manufacturing costs, the inability to scale up to produce supplies for clinical trials or other factors may make our product candidates uneconomical; and
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•
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the proprietary rights of others and their competing products and technologies may prevent product candidates
from being effectively commercialized or from obtaining exclusivity.
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· | the nature, timing and estimated costs of the efforts necessary to complete the development of our drug candidate projects; |
· | the anticipated completion dates for our drug candidate projects; |
· | the scope, rate of progress and cost of our clinical trials that we are currently running or may commence in the future with respect to our drug candidate projects; |
· | the scope, rate of progress of our preclinical studies and other research and development activities related to our drug candidate projects; |
· | clinical trial results for our drug candidate projects; |
· | the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights relating to our drug candidate projects; |
· | the terms and timing of any strategic alliance, licensing and other arrangements that we have or may establish in the future relating to our drug candidate projects; |
· | the cost and timing of regulatory approvals with respect to our drug candidate projects; and |
· | the cost of establishing clinical supplies for our drug candidate projects. |
•
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restrictions on our products or manufacturing processes;
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•
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warning letters;
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•
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withdrawal of a product from the market;
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•
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voluntary or mandatory recall of a product;
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•
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fines;
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•
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suspension or withdrawal of regulatory approvals for a product;
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•
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refusal to permit the import or export of our products;
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•
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refusal to approve pending applications or supplements to approved applications that we submit;
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•
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denial of permission to file an application or supplement in a jurisdiction;
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•
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product seizure; and
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•
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injunctions or the imposition of civil or criminal penalties against us.
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•
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results of our clinical trials;
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•
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failure of any product candidates we have licensed to Auxilium to achieve commercial success;
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•
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failure of Auxilium to exercise any opt in rights to new indications including canine lipoma;
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•
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regulatory developments in the U.S. and foreign countries;
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•
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developments or disputes concerning patents or other proprietary rights;
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•
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litigation involving us or our general industry, or both;
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•
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future sales of our common stock by the estate of our former Chairman and CEO, directors,officers, or others;
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•
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changes in the structure of healthcare payment systems, including developments in price control legislation;
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•
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departure of key personnel;
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•
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termination of agreements with our licensees or their sublicensees;
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•
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announcements of material events by those companies that are our competitors or perceived to be similar to us;
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•
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changes in estimates of our financial results;
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•
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investors’ general perception of us;
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•
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general economic, industry and market conditions; and
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•
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the reallocation by Auxilium of its priorities away from XIAFLEX or orthopedic or dermatological indications.
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•
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provide for a classified board of directors;
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•
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give our Board the ability to designate the terms of and issue new series of preferred stock without stockholder approval, commonly referred to as “blank check” preferred stock, with rights senior to those of our common stock;
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•
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limit the ability of the stockholders to call special meetings; and
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•
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impose advance notice requirements on stockholders concerning the election of directors and other proposals to be presented at stockholder meetings.
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Item 5.
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2013
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HIGH
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LOW
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||||||
Fourth Quarter
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$
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22.94
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$
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18.42
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||||
Third Quarter
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$
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19.47
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$
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15.98
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||||
Second Quarter
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$
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17.29
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$
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15.17
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||||
First Quarter
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$
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17.20
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$
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14.64
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||||
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||||||||
2012
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HIGH
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LOW
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||||||
Fourth Quarter
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$
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19.43
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$
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12.75
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||||
Third Quarter
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$
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20.27
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$
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17.53
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||||
Second Quarter
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$
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19.06
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$
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13.70
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||||
First Quarter
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$
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21.10
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$
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15.76
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Plan Category
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Number of securities to be issued upon exercise of outstanding options, warrants and rights
(a)
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Weighted-average
exercise price of outstanding options, warrants and rights
(b)
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Number of securities remaining available
for future issuance
under equity
compensation plans (excluding securities reflected in column (a))
(c)
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|||||||||
Equity compensation plans approved by security holders
(1)
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1,167,000
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$
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9.03
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239,098
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||||||||
Equity compensation plans not approved by security holders
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-
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-
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-
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|||||||||
Total
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1,167,000
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$
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9.03
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239,098
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Month
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Total Number of
Shares Purchased
(2)
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Average
Price Paid
Per Share
(3)
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Total Cumulative
Number of Shares
Purchased as Part
of Publicly
Announced Plan
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Maximum Dollar
Value of Shares
that may yet be
Purchased
under the Plan
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||||||||||||
October 1, 2013 to October 31, 2013
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3,539
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$
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18.88
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169,472
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$
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997,271
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||||||||||
November 1, 2013 – November 30, 2013 |
-
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-
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-
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-
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||||||||||||
December 1, 2013 to December 31, 2013
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-
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-
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-
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$
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2,000,000
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(5)
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||||||||||
Total
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3,539
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(1)
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On June 4, 2010, we announced that our board of directors authorized a stock repurchase program under Rule 10b-18 of the Exchange Act of up to $2.0 million of our outstanding common stock over a period of 12 months.
On June 20, 2011, we announced that our Board of Directors had reauthorized this stock repurchase program. On November 15, 2012, we announced that our Board of Directors had reauthorized this stock repurchase program.
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(2)
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The purchases were made in open-market transactions.
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(3)
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Includes commissions paid, if any, related to the stock repurchase transactions.
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(4)
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On November 15, 2012, we announced that our Board of Directors had reauthorized
the repurchase of up to
$2.0 million
of our common stock under the
stock repurchase program.
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(5)
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On December 10, 2013, we announced that our Board of Directors had reauthorized
the repurchase of up to
$2.0 million
of our common stock under the
stock repurchase program.
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12/31/2008
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12/31/2009
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12/31/2010
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12/31/2011
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12/31/2012
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12/31/2013
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||||||||||||||||||
Biospecifics Technologies Corp
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$
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100.00
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$
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137.15
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$
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119.63
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$
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77.66
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$
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69.86
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$
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101.26
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||||||||||||
Nasdaq Biotechnology Index
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$
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100.00
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$
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115.60
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$
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132.98
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$
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148.69
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$
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196.12
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$
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324.80
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||||||||||||
Nasdaq Composite Index
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$
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100.00
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$
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143.89
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$
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168.22
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$
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165.19
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$
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191.47
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$
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264.84
|
|
Years Ended December 31,
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|||||||||||||||||||
Consolidated Statement of Operations Data
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2013
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2012
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2011
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2010
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2009
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|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Net revenues
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$
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14,467,240
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$
|
11,145,078
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$
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11,395,726
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$
|
5,661,348
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$
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3,155,757
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||||||||||
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||||||||||||||||||||
Operating expenses:
|
||||||||||||||||||||
Research and development
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1,484,416
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1,249,755
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972,078
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1,223,931
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488,646
|
|||||||||||||||
General and administrative
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5,038,363
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4,774,828
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5,231,881
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6,470,449
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4,832,019
|
|||||||||||||||
Total operating expenses
|
6,522,779
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6,024,583
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6,203,959
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7,694,380
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5,320,665
|
|||||||||||||||
Operating income (loss)
|
7,944,461
|
5,120,495
|
5,191,767
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(2,033,032
|
)
|
(2,164,908
|
)
|
|||||||||||||
|
||||||||||||||||||||
Other income (expense):
|
||||||||||||||||||||
Interest income
|
26,202
|
34,634
|
55,780
|
86,310
|
55,693
|
|||||||||||||||
Interest expense
|
-
|
-
|
-
|
-
|
(39
|
)
|
||||||||||||||
Other
|
-
|
-
|
15,823
|
13,130
|
(8,863
|
)
|
||||||||||||||
Qualifying Therapeutic Credit
|
-
|
-
|
-
|
426,403
|
-
|
|||||||||||||||
|
26,202
|
34,634
|
71,603
|
525,843
|
46,791
|
|||||||||||||||
|
||||||||||||||||||||
Income (loss) before income tax
|
7,970,663
|
5,155,129
|
5,263,370
|
(1,507,189
|
)
|
(2,118,117
|
)
|
|||||||||||||
Income tax benefit (expense)
|
(2,684,816
|
)
|
(2,174,054
|
)
|
1,338,256
|
(1,351
|
)
|
161,574
|
||||||||||||
Net income (loss)
|
$
|
5,285,847
|
$
|
2,981,075
|
$
|
6,601,626
|
$
|
(1,508,540
|
)
|
$
|
(1,956,543
|
)
|
||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
Basic net income (loss) per share
|
$
|
0.83
|
$
|
0.47
|
$
|
1.04
|
$
|
(0.24
|
)
|
$
|
(0.32
|
)
|
||||||||
|
||||||||||||||||||||
Diluted net income (loss) per share
|
$
|
0.76
|
$
|
0.43
|
$
|
0.95
|
$
|
(0.24
|
)
|
$
|
(0.32
|
)
|
||||||||
|
||||||||||||||||||||
Shares used in computation of basic net income (loss) per share
|
6,345,615
|
6,351,245
|
6,340,648
|
6,261,214
|
6,065,939
|
|||||||||||||||
Shares used in computation of diluted net income (loss) per share
|
6,922,274
|
6,981,527
|
6,952,386
|
6,261,214
|
6,065,939
|
|||||||||||||||
|
Years Ended December 31,
|
|||||||||||||||||||
Consolidated Balance Sheet Data:
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
Cash and cash equivalents
|
$
|
5,624,860
|
$
|
3,383,737
|
$
|
3,196,831
|
$
|
2,470,852
|
$
|
3,950,389
|
||||||||||
Short-term investments
|
6,966,964
|
5,120,000
|
5,000,000
|
5,360,970
|
4,548,541
|
|||||||||||||||
Total assets
|
23,252,244
|
18,390,264
|
16,265,073
|
11,518,701
|
11,748,478
|
|||||||||||||||
Total stockholders’ equity
|
22,322,439
|
17,458,346
|
14,872,314
|
6,700,723
|
6,092,107
|
Item 7.
|
|
Year Ended December 31
|
|
|
|||||||||||||
|
2013
|
2012
|
Change
|
% Change
|
||||||||||||
|
|
|
|
|
||||||||||||
Net sales
|
$
|
37,458
|
$
|
18,219
|
19,239
|
106
|
%
|
|||||||||
Royalties
|
11,767,758
|
9,155,654
|
2,612,104
|
29
|
%
|
|||||||||||
Licensing revenue
|
2,662,024
|
1,971,205
|
690,819
|
35
|
%
|
|||||||||||
Total net revenues
|
$
|
14,467,240
|
$
|
11,145,078
|
3,322,162
|
30
|
%
|
|
Year Ended
December 31, 2013
|
Year Ended
December 31, 2012
|
Accumulated Expenses
Since January 1, 2010
|
|||||||||
Program
|
|
|
|
|||||||||
Canine Lipoma
|
$
|
463,208
|
$
|
442,741
|
$
|
1,436,196
|
||||||
Human Lipoma
|
333,230
|
168,879
|
738,099
|
|||||||||
Uterine Fibroids
|
157,630
|
-
|
157,630
|
· | the nature, timing and estimated costs of the efforts necessary to complete the development of our drug candidate projects; |
· | the anticipated completion dates for our drug candidate projects; |
· | the scope, rate of progress and cost of our clinical trials that we are currently running or may commence in the future with respect to our drug candidate projects; |
· | the scope, rate of progress of our preclinical studies and other research and development activities related to our drug candidate projects; |
· | clinical trial results for our drug candidate projects; |
· | the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights relating to our drug candidate projects; |
· | the terms and timing of any strategic alliance, licensing and other arrangements that we have or may establish in the future relating to our drug candidate projects; |
· | the cost and timing of regulatory approvals with respect to our drug candidate projects; and |
· | the cost of establishing clinical supplies for our drug candidate projects. |
|
Year Ended December 31
|
|
|
|||||||||||||
|
2012
|
2011
|
Change
|
% Change
|
||||||||||||
|
|
|
|
|
||||||||||||
Net sales
|
$
|
18,219
|
$
|
21,998
|
(3,779
|
)
|
(17
|
)%
|
||||||||
Royalties
|
9,155,654
|
6,314,959
|
2,840,695
|
45
|
%
|
|||||||||||
Licensing revenue
|
1,971,205
|
5,012,102
|
(3,040,897
|
)
|
(61
|
)%
|
||||||||||
Consulting fees
|
-
|
46,667
|
(46,667
|
)
|
(100
|
)%
|
||||||||||
Total net revenues
|
$
|
11,145,078
|
$
|
11,395,726
|
$
|
(250,648
|
)
|
(2
|
)%
|
|
Year Ended
December 31, 2012
|
Year Ended
December 31, 2011
|
Accumulated Expenses
Since January 1, 2010
|
|||||||||
Program
|
|
|
|
|||||||||
Canine Lipoma
|
$
|
442,741
|
$
|
332,217
|
$
|
972,988
|
||||||
Human Lipoma
|
168,879
|
110,800
|
404,869
|
· | the nature, timing and estimated costs of the efforts necessary to complete the development of our drug candidate projects; |
· | the anticipated completion dates for our drug candidate projects; |
· | the scope, rate of progress and cost of our clinical trials that we are currently running or may commence in the future with respect to our drug candidate projects; |
· | the scope, rate of progress of our preclinical studies and other research and development activities related to our drug candidate projects; |
· | clinical trial results for our drug candidate projects; |
· | the cost of filing, prosecuting, defending and enforcing any patent claims and other intellectual property rights relating to our drug candidate projects; |
· | the terms and timing of any strategic alliance, licensing and other arrangements that we have or may establish in the future relating to our drug candidate projects; |
· | the cost and timing of regulatory approvals with respect to our drug candidate projects; and |
· | the cost of establishing clinical supplies for our drug candidate projects. |
2014
|
$
|
137,000
|
||
2015 |
$
|
4,000
|
||
2016 |
$
|
4,000
|
||
2017
|
$
|
2,000
|
Item 9A.
|
CONTROLS AND PROCEDURES.
|
Item 12.
|
(a)
|
The following documents are filed as part of this Report:
|
(1)
|
Consolidated Financial Statements (See Index to Consolidated Financial Statements on page F-1)
|
(2)
|
Financial Statement Schedules
|
(3)
|
Exhibits
|
(b)
|
Exhibits
|
|
Page
|
Reports of Independent Registered Public Accounting Firm
|
F-2
|
|
|
Consolidated Balance Sheets
|
F-4
|
|
|
Consolidated Statements of Operations
|
F-5
|
|
|
Consolidated Statements of Cash Flows
|
F-6
|
|
|
Consolidated Statements of Stockholders’ Deficit
|
F-7
|
|
|
Notes to Consolidated Financial Statements
|
F-8
|
/s/ Tabriztchi & Co., CPA, P.C.
|
|
|
Garden City, NY |
|
March 6, 2014
|
/s/ Tabriztchi & Co., CPA, P.C.
|
|
|
Garden City, NY |
|
March 6, 2014
|
|
December 31,
|
|||||||
|
2013
|
2012
|
||||||
Assets
|
|
|
||||||
Current assets:
|
|
|
||||||
Cash and cash equivalents
|
$
|
5,624,860
|
$
|
3,383,737
|
||||
Short term investments
|
6,966,964
|
5,120,000
|
||||||
Accounts receivable, net
|
5,004,418
|
5,082,360
|
||||||
Income tax receivable
|
255,708
|
51,070
|
||||||
Deferred tax asset
|
94,992
|
88,910
|
||||||
Prepaid expenses and other current assets
|
326,519
|
149,724
|
||||||
Total current assets
|
18,273,461
|
13,875,801
|
||||||
|
||||||||
Deferred royalty buy-down
|
3,350,000
|
2,750,000
|
||||||
Deferred tax assets –long term
|
1,412,784
|
1,484,141
|
||||||
Patent costs, net
|
215,999
|
280,322
|
||||||
|
||||||||
Total assets
|
23,252,244
|
18,390,264
|
||||||
|
||||||||
Liabilities and Stockholders' Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued expenses
|
634,277
|
512,866
|
||||||
Deferred revenue
|
69,130
|
133,524
|
||||||
Accrued liabilities of discontinued operations
|
78,138
|
78,138
|
||||||
Total current liabilities
|
781,545
|
724,528
|
||||||
|
||||||||
Deferred revenue - license fees
|
138,260
|
207,390
|
||||||
|
||||||||
Stockholders' equity:
|
||||||||
Series A Preferred stock, $.50 par value, 700,000 shares authorized; none outstanding
|
-
|
-
|
||||||
Common stock, $.001 par value; 10,000,000 shares authorized; 6,655,168 and 6,625,168 shares issued at December 31, 2013 and 2012, respectively
|
6,655
|
6,625
|
||||||
Additional paid-in capital
|
20,951,796
|
20,688,706
|
||||||
Retained earnings (accumulated deficit)
|
4,975,018
|
(310,829
|
)
|
|||||
Treasury stock, 300,739 and 260,632 shares at cost as of December 31, 2013 and 2012
|
(3,601,030
|
)
|
(2,926,156
|
)
|
||||
Total stockholders' equity
|
22,332,439
|
17,458,346
|
||||||
|
||||||||
Total liabilities and stockholders’ equity
|
$
|
23,252,244
|
$
|
18,390,264
|
|
Years Ended December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Revenues:
|
|
|
|
|||||||||
Net sales
|
$
|
37,458
|
$
|
18,219
|
$
|
21,998
|
||||||
Royalties
|
11,767,758
|
9,155,654
|
6,314,959
|
|||||||||
Licensing revenue
|
2,662,024
|
1,971,205
|
5,012,102
|
|||||||||
Consulting fees
|
-
|
-
|
46,667
|
|||||||||
Total revenues
|
14,467,240
|
11,145,078
|
11,395,726
|
|||||||||
|
||||||||||||
Costs and expenses:
|
||||||||||||
Research and development
|
1,484,416
|
1,249,755
|
972,078
|
|||||||||
General and administrative
|
5,038,363
|
4,774,828
|
5,231,881
|
|||||||||
Total costs and expenses
|
6,522,779
|
6,024,583
|
6,203,959
|
|||||||||
Operating income
|
7,944,461
|
5,120,495
|
5,191,767
|
|||||||||
|
||||||||||||
Other income (expense):
|
||||||||||||
Interest income
|
26,202
|
34,634
|
55,780
|
|||||||||
Other
|
-
|
-
|
15,823
|
|||||||||
|
26,202
|
34,634
|
71,603
|
|||||||||
|
||||||||||||
Income before benefit (expense) for income tax
|
7,970,663
|
5,155,129
|
5,263,370
|
|||||||||
Income tax benefit (expense)
|
(2,684,816
|
)
|
(2,174,054
|
)
|
1,338,256
|
|||||||
Net income
|
$
|
5,285,847
|
$
|
2,981,075
|
$
|
6,601,626
|
||||||
|
||||||||||||
Basic net income per share
|
$
|
0.83
|
$
|
0.47
|
$
|
1.04
|
||||||
|
||||||||||||
Diluted net income per share
|
$
|
0.76
|
$
|
0.43
|
$
|
0.95
|
||||||
|
||||||||||||
Shares used in computation of basic net income per share
|
6,345,615
|
6,351,245
|
6,340,648
|
|||||||||
Shares used in computation of diluted net income per share
|
6,922,274
|
6,981,527
|
6,952,386
|
Years Ended December 31,
|
||||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Net income
|
$
|
5,285,847
|
$
|
2,981,075
|
$
|
6,601,626
|
||||||
Other comprehensive income
|
-
|
-
|
-
|
|||||||||
Comprehensive income
|
$
|
5,285,847
|
$
|
2,981,075
|
$
|
6,601,626
|
|
Years Ended December 31,
|
|||||||||||
Cash flows from operating activities:
|
2013
|
2012
|
2011
|
|||||||||
Net income
|
$
|
5,285,847
|
$
|
2,981,075
|
$
|
6,601,626
|
||||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||||||
Depreciation and amortization
|
64,323
|
64,190
|
50,685
|
|||||||||
Stock-based compensation expense
|
111,636
|
228,485
|
517,367
|
|||||||||
Deferred income tax
|
(10,653
|
)
|
1,474,904
|
(3,047,955
|
)
|
|||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accounts receivable
|
77,942
|
(1,845,443
|
)
|
(1,250,792
|
)
|
|||||||
Prepaid expenses and other current assets
|
(381,433
|
)
|
142,160
|
(65,642
|
)
|
|||||||
Accounts payable and accrued expenses
|
121,411
|
(242,233
|
)
|
(3,009,109
|
)
|
|||||||
Deferred revenue
|
(133,524
|
)
|
(372,705
|
)
|
(483,769
|
)
|
||||||
Net cash provided by (used in) operating activities from operations
|
5,135,549
|
2,430,433
|
(687,589
|
)
|
||||||||
|
||||||||||||
Cash flows from investing activities:
|
||||||||||||
Maturities of marketable securities
|
9,710,000
|
5,070,000
|
5,360,970
|
|||||||||
Purchases of marketable securities
|
(11,556,964
|
)
|
(5,190,000
|
)
|
(5,000,000
|
)
|
||||||
Payment for royalty buy down
|
(600,000
|
)
|
(1,500,000
|
)
|
-
|
|||||||
Net cash provided by (used in) investing activities from operations
|
(2,446,964
|
)
|
(1,620,000
|
)
|
360,970
|
|||||||
|
||||||||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds from stock option exercises
|
30,000
|
148,425
|
82,450
|
|||||||||
Repurchases of common stock
|
(674,874
|
)
|
(1,034,647
|
)
|
(739,551
|
)
|
||||||
Excess tax benefits from share-based payment arrangements
|
197,412
|
262,695
|
1,709,699
|
|||||||||
Net cash provided by (used in) financing activities from operations
|
(447,462
|
)
|
(623,527
|
)
|
1,052,598
|
|||||||
|
||||||||||||
Increase in cash and cash equivalents
|
2,241,123
|
186,906
|
725,979
|
|||||||||
Cash and cash equivalents at beginning of year
|
3,383,737
|
3,196,831
|
2,470,852
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
5,624,860
|
$
|
3,383,737
|
$
|
3,196,831
|
||||||
|
||||||||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Taxes
|
$
|
2,713,500
|
$
|
232,000
|
$
|
190,000
|
|
Shares
|
Amount
|
Additional Paid
in Capital
|
Retained
Earnings
(Accumulated
Deficit)
|
||||||||||||
Balances - December 31, 20010
|
6,445,743
|
$
|
6,446
|
$
|
17,739,765
|
$
|
(9,893,530
|
)
|
||||||||
Issuance of common stock under stock option plans
|
85,000
|
85
|
82,365
|
-
|
||||||||||||
Stock compensation expense
|
-
|
-
|
517,367
|
-
|
||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
||||||||||||
Excess tax benefits from share-based payment arrangements
|
-
|
-
|
1,709,699
|
-
|
||||||||||||
Net profit
|
-
|
-
|
-
|
6,601,626
|
||||||||||||
Balances - December 31, 2011
|
6,530,743
|
$
|
6,531
|
$
|
20,049,196
|
$
|
(3,291,904
|
)
|
||||||||
Issuance of common stock under stock option plans
|
94,425
|
94
|
148,330
|
-
|
||||||||||||
Stock compensation expense
|
-
|
-
|
228,485
|
-
|
||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
||||||||||||
Excess tax benefits from share-based payment arrangements
|
-
|
-
|
262,695
|
-
|
||||||||||||
Net profit
|
-
|
-
|
-
|
2,981,075
|
||||||||||||
Balances - December 31, 2012
|
6,625,168
|
$
|
6,625
|
$
|
20,688,706
|
$
|
(310,829
|
)
|
||||||||
Issuance of common stock under stock option plans
|
30,000
|
30
|
29,970
|
-
|
||||||||||||
Effect of expiration of stock options
|
-
|
-
|
(75,928
|
)
|
-
|
|||||||||||
Stock compensation expense
|
-
|
-
|
111,636
|
-
|
||||||||||||
Repurchases of common stock
|
-
|
-
|
-
|
-
|
||||||||||||
Excess tax benefits from share-based payment arrangements
|
-
|
-
|
197,412
|
-
|
||||||||||||
Net profit
|
-
|
-
|
-
|
5,285,847
|
||||||||||||
Balances - December 31, 2013
|
6,655,168
|
6,655
|
$
|
20,951,796
|
$
|
4,975,018
|
|
Treasury
Stock
|
Shareholder
Equity
Total
|
||||||
Balances - December 31, 2010
|
$
|
(1,151,958
|
)
|
$
|
6,700,723
|
|||
Issuance of common stock under stock option plans
|
-
|
82,450
|
||||||
Stock compensation expense
|
-
|
517,367
|
||||||
Repurchases of common stock
|
(739,551
|
)
|
(739,551
|
)
|
||||
Excess tax benefits from share-based payment arrangements
|
-
|
1,709,699
|
||||||
Net profit
|
-
|
6,601,626
|
||||||
Balances - December 31, 2011
|
$
|
(1,891,509
|
)
|
$
|
14,872,314
|
|||
Issuance of common stock under stock option plans
|
-
|
148,424
|
||||||
Stock compensation expense
|
-
|
228,485
|
||||||
Repurchases of common stock
|
(1,034,647
|
)
|
(1,034,647
|
)
|
||||
Excess tax benefits from share-based payment arrangements
|
-
|
262,695
|
||||||
Net profit
|
-
|
2,981,075
|
||||||
Balances - December 31, 2012
|
$
|
(2,926,156
|
)
|
$
|
17,458,346
|
|||
Issuance of common stock under stock option plans
|
-
|
30,000
|
||||||
Effect of expiration of stock options
|
-
|
(75,928
|
)
|
|||||
Stock compensation expense
|
-
|
111,636
|
||||||
Repurchases of common stock
|
(674,874
|
)
|
(674,874
|
)
|
||||
Excess tax benefits from share-based payment arrangements
|
-
|
197,412
|
||||||
Net profit
|
-
|
5,285,847
|
||||||
Balances - December 31, 2013
|
$
|
(3,601,030
|
)
|
$
|
22,332,439
|
|
December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Research and development
|
$
|
92,249
|
$
|
171,217
|
$
|
96,849
|
||||||
General and administrative
|
19,387
|
57,268
|
420,518
|
|||||||||
Total stock-based compensation expense
|
$
|
111,636
|
$
|
228,485
|
$
|
517,367
|
|
2013
|
2012
|
2011
|
|||||||||
Patents, net
|
$
|
215,999
|
$
|
280,322
|
$
|
190,416
|
||||||
|
2014
|
$
|
53,000
|
||
2015
|
25,000
|
|||
2016
|
20,000
|
|||
2017
|
20,000
|
|||
2018
|
20,000
|
3.
|
FAIR VALUE MEASUREMENTS
|
December 31, 2013
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Cash and cash equivalents
|
$
|
5,624,860
|
$
|
5,624,860
|
-
|
-
|
||||||||||
Certificates of Deposit
|
6,966,964
|
6,966,964
|
-
|
-
|
||||||||||||
|
|
|||||||||||||||
December 31, 2012
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Cash and cash equivalents
|
$
|
3,383,737
|
$
|
3,383,737
|
-
|
-
|
||||||||||
Certificates of Deposit
|
5,120,000
|
5,120,000
|
-
|
-
|
||||||||||||
|
|
|||||||||||||||
December 31, 2011
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Cash and cash equivalents
|
$
|
3,196,831
|
$
|
3,196,831
|
-
|
-
|
||||||||||
Certificates of Deposit
|
5,000,000
|
5,000,000
|
-
|
-
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Net income for diluted computation
|
$
|
5,285,847
|
$
|
2,981,075
|
$
|
6,601,626
|
||||||
|
||||||||||||
Weighted average shares:
|
||||||||||||
Basic
|
6,345,615
|
6,351,245
|
6,340,648
|
|||||||||
Effect of dilutive securities:
|
||||||||||||
Stock options
|
576,659
|
630,282
|
611,738
|
|||||||||
|
||||||||||||
Diluted
|
6,922,274
|
6,981,527
|
6,952,386
|
|||||||||
|
||||||||||||
Net income per share:
|
||||||||||||
Basic
|
$
|
0.83
|
$
|
0.47
|
$
|
1.04
|
||||||
Diluted
|
$
|
0.76
|
$
|
0.43
|
$
|
0.95
|
|
December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Machinery and equipment
|
$
|
562,610
|
$
|
562,610
|
$
|
562,610
|
||||||
Furniture and fixtures
|
91,928
|
91,928
|
91,928
|
|||||||||
Leasehold improvements
|
1,185,059
|
1,185,059
|
1,185,059
|
|||||||||
|
1,839,597
|
1,839,597
|
1,839,597
|
|||||||||
Less accumulated depreciation and amortization
|
(1,839,597
|
)
|
(1,839,597
|
)
|
(1,839,597
|
)
|
||||||
|
$
|
-
|
$
|
-
|
$
|
-
|
|
December 31,
|
|
||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Trade accounts payable and accrued expenses
|
$
|
409,617
|
$
|
304,635
|
$
|
407,954
|
||||||
Accrued legal and other professional fees
|
61,538
|
61,147
|
50,000
|
|||||||||
Accrued payroll and related costs
|
163,122
|
147,084
|
143,048
|
|||||||||
|
$
|
634,277
|
$
|
512,866
|
$
|
601,002
|
|
2013
|
2012
|
2011
|
|||||||||
Current taxes:
|
|
|
|
|||||||||
Federal
|
$
|
2,724,597
|
$
|
686,968
|
$
|
-
|
||||||
State
|
25,491
|
12,182
|
3,525
|
|||||||||
Total current taxes
|
2,750,088
|
699,150
|
3,525
|
|||||||||
Deferred taxes:
|
||||||||||||
Federal
|
(68,298
|
)
|
1,134,532
|
(1,219,190
|
)
|
|||||||
State
|
3,023
|
340,372
|
(122,593
|
)
|
||||||||
Total deferred taxes
|
(65,274
|
)
|
1,474,904
|
(1,341,783
|
)
|
|||||||
Total provision for income taxes
|
$
|
2,684,814
|
$
|
2,174,054
|
$
|
(1,338,258
|
)
|
|
2013
|
2012
|
2011
|
|||||||||
Statutory rate
|
34.00
|
%
|
34.00
|
%
|
34.0
|
%
|
||||||
State income taxes, net of federal income tax benefit
|
0.21
|
%
|
0.16
|
%
|
7.1
|
%
|
||||||
Stock-based compensation
|
0.11
|
%
|
1.51
|
%
|
4.0
|
%
|
||||||
Change in effective state tax rate
|
0.02
|
%
|
6.59
|
%
|
-
|
|||||||
Other, net
|
(0.66
|
)%
|
(0.08
|
)%
|
(5.9
|
)%
|
||||||
Increase (decrease) in valuation allowance
|
-
|
-
|
(64.6
|
)%
|
||||||||
Effective tax rate (benefit)
|
33.68
|
%
|
42.18
|
%
|
(25.4
|
%)
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Tax credit carry forward
|
$
|
-
|
$
|
-
|
$
|
1,027,633
|
||||||
Deferred revenues
|
71,062
|
132,514
|
293,297
|
|||||||||
Other
|
71,304
|
27,322
|
17,253
|
|||||||||
Options
|
1,365,409
|
1,413,214
|
1,687,780
|
|||||||||
Net operating loss carry forward
|
-
|
-
|
21,992
|
|||||||||
Net deferred tax assets before valuation allowance
|
1,507,776
|
1,573,050
|
3,047,955
|
|||||||||
Valuation allowance
|
-
|
-
|
-
|
|||||||||
Net deferred tax asset
|
$
|
1,507,776
|
$
|
1,573,050
|
$
|
3,047,955
|
|
September
2013
|
April
2013
|
May
2012
|
|||||||||
Risk-free interest rate
|
1.73
|
%
|
0.68
|
%
|
0.69
|
%
|
||||||
Expected volatility
|
33
|
%
|
37
|
%
|
54
|
%
|
||||||
Expected life (in years)
|
5
|
5
|
5
|
|||||||||
Dividend yield
|
-
|
-
|
-
|
|||||||||
Weighted-average estimated fair value of options granted during the year
|
$
|
85,000
|
$
|
79,000
|
$
|
110,000
|
|
Shares
|
Weighted
Average
Exercise
Price
|
||||||
Outstanding at December 31, 2012
|
1,182,000
|
$
|
8.90
|
|||||
December 31, 2013
|
||||||||
Options granted
|
30,000
|
$
|
16.88
|
|||||
Options exercised
|
(30,000
|
)
|
1.00
|
|||||
Options canceled or expired
|
15,000
|
30.79
|
||||||
Outstanding at end of year
|
1,167,000
|
9.03
|
||||||
Options exercisable at year end
|
1,132,000
|
8.55
|
||||||
Shares available for future grant
|
239,098
|
--
|
|
Outstanding Shares
|
Exercisable Shares
|
||||||||||||||||||||
Option
Exercise
Price
|
Number of
Shares
|
Weighted
Average Life
(years)
|
Weighted
Average
Exercise
Price
|
Number of
Shares
|
Weighted
Average
Option
Price
|
|||||||||||||||||
$
|
0.83 - 2.00
|
467,500
|
2.10
|
$
|
1.01
|
467,500
|
$
|
1.01
|
||||||||||||||
4.00 - 6.00
|
242,000
|
3.41
|
4.69
|
242,000
|
4.69
|
|||||||||||||||||
13.00 - 16.00
|
155,000
|
5.24
|
13.96
|
155,000
|
13.96
|
|||||||||||||||||
17.00 - 19
.00
|
85,000
|
5.77
|
17.73
|
70,000
|
17.69
|
|||||||||||||||||
20.00 - 21.00
|
112,500
|
4.75
|
20.57
|
112,500
|
20.57
|
|||||||||||||||||
26.00 - 30
.00
|
105,000
|
5.82
|
28.02
|
85,000
|
27.74
|
|||||||||||||||||
1,167,000
|
3.72
|
$
|
9.03
|
1,132,000
|
$
|
8.55
|
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||
Year ended December 31, 2013
|
|
|
|
|
||||||||||||
Net revenues
|
$
|
3,980,024
|
$
|
3,269,983
|
$
|
3,145,123
|
$
|
4,072,110
|
||||||||
Operating profit
|
2,066,668
|
1,563,685
|
1,738,501
|
2,575,607
|
||||||||||||
Net income
|
1,353,084
|
1,028,186
|
1,178,775
|
1,725,802
|
||||||||||||
Basic earnings per share
|
$
|
0.21
|
$
|
0.16
|
$
|
0.19
|
$
|
0.27
|
||||||||
Diluted earnings per share
|
$
|
0.19
|
$
|
0.15
|
$
|
0.17
|
$
|
0.25
|
||||||||
|
||||||||||||||||
|
First
|
Second
|
Third
|
Fourth
|
||||||||||||
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
||||||||||||
Year ended December 31, 2012
|
||||||||||||||||
Net revenues
|
$
|
2,586,748
|
$
|
2,601,834
|
$
|
2,448,225
|
$
|
3,508,271
|
||||||||
Operating profit
|
1,248,474
|
1,047,562
|
779,527
|
2,044,932
|
||||||||||||
Net income
|
742,390
|
666,682
|
471,047
|
1,100,956
|
||||||||||||
Basic earnings per share
|
$
|
0.12
|
$
|
0.11
|
$
|
0.07
|
$
|
0.17
|
||||||||
Diluted earnings per share
|
$
|
0.11
|
$
|
0.10
|
$
|
0.07
|
$
|
0.16
|
10.12
|
Change of Control Agreement, dated June 18, 2007 between the Company and Michael Schamroth (incorporated by reference to Exhibit 10.22 of the Registrant’s Form 10-KSB filed with the Commission on September 26, 2007)
|
10.13
|
Change of Control Agreement, dated June 18, 2007 between the Company and Dr. Paul Gitman (incorporated by reference to Exhibit 10.23 of the Registrant’s Form 10-KSB filed with the Commission on September 26, 2007)
|
10.14
|
Amendment and Restated Agreement between the Company and Dr. Marty Gelbard dated March 31, 2012 between the Company and Marty Gelbard (incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-KA filed with the Commission on August 8, 2012)
|
10.15
|
Amended and Restated Development and License Agreement dated December 11, 2008 and effective December 17, 2008 between the Company and Auxilium Pharmaceuticals, Inc. (incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-K filed with the Commission on December 19, 2008)
|
10.16
|
Executive Employment Agreement, dated August 5, 2008 between the Company and Thomas L. Wegman (incorporated by reference to Exhibit 10.1 of the Registrant’s Form 8-K filed with the Commission on August 8, 2008)
|
10.17
|
Change of Control Agreement, dated October 1, 2008 between the Company and Dr. Matthew Geller (incorporated by reference to Exhibit 10.23 of the Registrant’s Form 10-K filed with the Commission on March 31, 2009)
|
Change of Control Agreement, dated as of September 17, 2013, between the Company and George Gould*
|
|
10.19
|
Second Amended and Restated Development and License Agreement, dated as of August 31, 2011, by and between BioSpecifics Technologies Corp. and Auxilium Pharmaceuticals, Inc. (incorporated by reference to Exhibit 10.1 of the Registrant's Form 8-K filed with the SEC on September 1, 2011)
|
10.20
|
Settlement Agreement, dated as of August 31, 2011, by and between BioSpecifics Technologies Corp. and Auxilium Pharmaceuticals, Inc. (incorporated by reference to Exhibit 10.2 of the Registrant's Form 8-K filed with the SEC on September 1, 2011)
|
14
|
Amended and Restated Code of Business Conduct and Ethics (incorporated by reference to Exhibit 14.1 of the Registrant’s Form 10-KSB filed with the Commission on March 2, 2007)
|
21
|
Subsidiaries of the Registrant (incorporated by reference to Exhibit 21.1 of the Registrant’s Form 10-KSB filed with the Commission on March 2, 2007)
|
Consent of Tabriztchi & Co. CPA, P.C.*
|
|
Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
|
|
Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
|
*
|
filed herewith
|
Date: March 7, 2014
|
|
|
|
|
|
|
|
|
BIOSPECIFICS TECHNOLOGIES CORP.
|
||
|
|
|
|
|
By:
|
/s/ Thomas L. Wegman
|
|
|
Name:
|
Thomas L. Wegman
|
|
|
Title:
|
President
|
SIGNATURE
|
TITLE
|
|
|
|
|
/s/ Thomas L. Wegman
|
President, Director, and Principal Executive, Financial
|
|
Name: Thomas L. Wegman
|
and Accounting Officer
|
|
Date: March 7, 2014
|
|
|
|
|
|
/s/ Paul Gitman
|
Director
|
|
Name: Dr. Paul Gitman
|
|
|
Date: March 7, 2014
|
|
|
|
|
|
/s/ George Gould
|
Director
|
|
Name: George Gould
|
|
|
Date: March 7, 2014
|
|
|
/s/ Henry G. Morgan
|
Director
|
|
Name: Henry G. Morgan
|
|
|
Date: March 7, 2014
|
|
|
|
|
|
/s/ Michael Schamroth
|
Director
|
|
Name: Michael Schamroth
|
|
|
Date: March 7, 2014
|
|
|
|
|
|
/s/ Dr. Mark Wegman
|
Director
|
|
Name: Dr. Mark Wegman
|
|
|
Date March 7, 2014
|
|
|
|
|
|
/s/ Toby Wegman
|
Director
|
|
Name: Toby Wegman
|
|
|
Date: March 7, 2014
|
|
Article I. The Stockholders
|
4
|
||
|
|
|
|
|
Section 1.1.
|
Annual Meeting.
|
4
|
|
Section 1.2.
|
Special Meetings.
|
4
|
|
Section 1.3.
|
Notice of Meetings.
|
4
|
|
Section 1.4.
|
Inspectors.
|
5
|
|
Section 1.5.
|
Quorum.
|
5
|
|
Section 1.6.
|
Voting Requirements and Proxies.
|
6
|
|
Section 1.7.
|
Organization.
|
6
|
|
Section 1.8.
|
Procedures.
|
6
|
|
Section 1.9.
|
Voting by Ballot.
|
7
|
|
Section 1.10.
|
Voting Lists.
|
7
|
|
Section 1.11.
|
Proposals for Voting.
|
7
|
|
Section 1.12.
|
Place of Meeting.
|
9
|
|
Section 1.13.
|
Voting of Shares of Certain Holders.
|
9
|
|
Section 1.14.
|
Consent of Stockholders in Lieu of Meeting.
|
10
|
|
Section 1.15.
|
Unanimous Written Consent.
|
10
|
|
|
|
|
Article II. Board of Directors
|
10
|
||
|
|
|
|
|
Section 2.1.
|
General Powers.
|
10
|
|
Section 2.2.
|
Number and Term of Office.
|
10
|
|
Section 2.3.
|
Vacancies.
|
11
|
|
Section 2.4.
|
Place of Meetings, etc.
|
11
|
|
Section 2.5.
|
Annual Meeting.
|
11
|
|
Section 2.6.
|
Other Regular Meetings.
|
11
|
|
Section 2.7.
|
Special Meetings.
|
11
|
|
Section 2.8.
|
Notice of Special Meetings.
|
11
|
|
Section 2.9.
|
Quorum.
|
12
|
|
Section 2.10.
|
Order of Business.
|
12
|
|
Section 2.11.
|
Action Without a Meeting.
|
12
|
|
Section 2.12.
|
Compensation of Directors.
|
12
|
|
Section 2.13.
|
Election of Officers and Committees.
|
12
|
|
Section 2.14.
|
Removal.
|
12
|
|
Section 2.15.
|
Nominations.
|
13
|
|
|
|
|
Article III. Executive Committee and Other Committees
|
15
|
||
|
|
|
|
|
Section 3.1.
|
Number and Term of Office.
|
15
|
|
Section 3.2.
|
Powers.
|
15
|
|
Section 3.3.
|
Meetings.
|
15
|
|
Section 3.4.
|
Meetings by Conference Communications Equipment.
|
15
|
|
Section 3.5.
|
Presiding Officer.
|
16
|
|
Section 3.6.
|
Action by Consent.
|
16
|
Section 3.7.
|
Vacancies.
|
16
|
|
Section 3.8.
|
Rules of Procedure; Quorum.
|
16
|
|
Section 3.9.
|
Other Committees.
|
16
|
|
|
|
|
Article IV. The officers
|
16
|
||
|
|
|
|
|
Section 4.1.
|
Titles; Number and Term of Office.
|
16
|
|
Section 4.2.
|
Resignation and Removal.
|
17
|
|
Section 4.3.
|
Chairman of the Board.
|
17
|
|
Section 4.4.
|
Chief Executive Officer.
|
17
|
|
Section 4.5.
|
President.
|
17
|
|
Section 4.6.
|
Vice-Presidents.
|
18
|
|
Section 4.7.
|
Chief Financial Officer.
|
18
|
|
Section 4.8.
|
Chief Accounting Officer.
|
18
|
|
Section 4.9.
|
Treasurer.
|
18
|
|
Section 4.10.
|
Secretary.
|
19
|
|
Section 4.11.
|
Assistant Treasurers and Assistant Secretaries.
|
19
|
|
Section 4.12.
|
Salaries.
|
19
|
|
Section 4.13.
|
Voting upon Stocks.
|
19
|
|
|
|
|
Article V. Contracts and Loans
|
19
|
||
|
|
|
|
|
Section 5.1.
|
Contracts.
|
19
|
|
Section 5.2.
|
Loans.
|
20
|
|
|
|
|
Article VI. Certificates for Shares and Their Transfer
|
20
|
||
|
|
|
|
|
Section 6.1.
|
Certificates for Shares.
|
20
|
|
Section 6.2.
|
Transfers of Shares.
|
21
|
|
Section 6.3.
|
Lost Certificates.
|
21
|
|
|
|
|
Article VII. General Provisions
|
21
|
||
|
|
|
|
|
Section 7.1.
|
Fiscal Year.
|
21
|
|
Section 7.2.
|
Seal.
|
21
|
|
Section 7.3.
|
Waiver of Notice.
|
21
|
|
Section 7.4.
|
Amendments.
|
22
|
|
Section 7.5.
|
Evidence of Authority.
|
22
|
|
Section 7.6.
|
Certificate of Incorporation.
|
22
|
|
Section 7.7.
|
Severability.
|
22
|
|
Section 7.8.
|
Pronouns.
|
22
|
|
Section 7.9.
|
Offices.
|
22
|
|
Section 7.10.
|
Off-Shore Offerings.
|
22
|
|
Section 7.11
|
Forum for Adjudication of Disputes
|
22
|
|
|
|
|
Article VIII. Indemnification
|
22
|
||
|
|
|
|
|
Section 8.1.
|
Indemnification.
|
22
|
|
Section 8.2.
|
Indemnification Terms.
|
22
|
|
|
|
|
Article IX. Record Date
|
27
|
||
|
|
|
|
|
Section 9.1.
|
Fixing Date of Record.
|
27
|
|
BIOSPECIFICS TECHNOLOGIES CORP.
|
||
|
|
|
|
|
By:
|
/s/ Thomas L. Wegman
|
|
|
Name:
|
Thomas L. Wegman
|
|
|
Title:
|
President
|
|
|
|
|
|
|
WORLDWIDE STOCK TRANSFER, LLC
|
||
|
By:
|
/s/ Authorized Signatory
|
|
|
PREMISES:
|
35 Wilbur Street |
|
|
Lynbrook, New York 11563
|
Article
|
Caption
|
Page
|
|
|
|
1
|
DEMISED PREMISES
|
1
|
2
|
TERM, RENTS
|
1
|
3
|
USE
|
2
|
4
|
EARLY TERMINATION OF LEASE
|
2
|
5
|
INTENTIONALLY OMITTED
|
2
|
6
|
SUBORDINATION, NOTICE TO LESSORS AND MORTGAGEES
|
3
|
7
|
QUIET ENJOYMENT
|
3
|
8
|
ASSIGNMENT AND SUBLETTING
|
3
|
9
|
COMPLIANCE WITH LAWS AND REQUIREMENTS OF PUBLIC AUTHORITIES
|
3
|
10
|
INSURANCE
|
4
|
11
|
INTENTIONALLY OMITTED
|
5
|
12
|
LANDLORD'S WORK OR CONDITION OF DEMISED PREMISES
|
5
|
13
|
TENANT'S CHANGES
|
5
|
14
|
TENANT'S PROPERTY
|
5
|
15
|
REPAIRS AND MAINTENANCE
|
6
|
16
|
ELECTRICITY
|
7
|
17
|
INTENTIONALLY OMITTED
|
7
|
18
|
ACCESS. CHANGES IN BUILDING FACILITIES. NAME
|
7
|
19
|
NON-LIABILITY AND INDEMNIFICATION
|
7
|
20
|
DESTRUCTION OR DEMOLITION
|
8
|
21
|
EMINENT DOMAIN
|
9
|
22
|
SURRENDER
|
10
|
23
|
CONDITIONS OF LIMITATION
|
10
|
24
|
RE-ENTRY BY LANDLORD
|
11
|
25
|
DAMAGES
|
12
|
26
|
WAIVERS
|
13
|
27
|
NO OTHER WAIVERS OR MODIFICATIONS
|
13
|
28
|
CURING TENANT'S DEFAULTS, ADDITIONAL RENT
|
14
|
29
|
BROKER
|
14
|
30
|
NOTICES
|
14
|
31
|
ESTOPPEL CERTIFICATE, MEMORANDUM
|
15
|
32
|
NO OTHER REPRESENTATIONS. CONSTRUCTION, GOVERNING LAW. CONSENTS
|
15
|
33
|
PARTIES BOUND
|
15
|
34
|
ADJACENT EXCAVATION AND CONSTRUCTION - SHORING
|
16
|
35
|
MISCELLANEOUS
|
16
|
36
|
SECURITY DEPOSIT
|
17
|
37
|
INTENTIONALLY OMITTED
|
17
|
38
|
INTENTIONALLY OMITTED
|
17
|
39
|
INTENTIONALLY OMITTED
|
17
|
40
|
LANDLORD'S WORK
|
18
|
41
|
ENVIRONMENTAL
|
18
|
|
|
|
EXHIBIT A
|
RENTAL SPACE
|
19
|
|
LANDLORD:
|
|||
|
|
|||
|
35 WILBUR STREET ASSOCIATES, LLC
|
|||
By: | /s/ Authorized Signatory | |||
WITNESS: | TENANT : | |||
BIOSPECIFICS TECHNOLOGIES, CORP.
|
||||
/s/ | By: | /s/ Thomas Wegman | ||
Name: Thomas Wegman | ||||
Title: President | ||||
Federal Employer I.D. No. _________________________________ | ||||
TENANT:
|
||||
ADVANCED BIOFACTURES CORP.
|
||||
By:
|
/s/ Thomas Wegman | |||
Name: Thomas Wegman | ||||
Title: President | ||||
Federal Employer I.D. No. _____________________________
|
|
LANDLORD
:
|
||
|
WILBUR STREET CORP.
a New York corporation
|
||
|
By:
|
/s/ Thomas L Wegman
|
|
|
|
Name: Thomas L Wegman
|
|
|
|
Title: President
|
|
|
|
|
|
|
|
|
|
|
TENANT
:
|
||
|
ADVANCE BIOFACTURES CORP.
a New York corporation
|
||
|
By:
|
/s/ Thomas L Wegman
|
|
|
|
Name: Thomas L. Wegman
|
|
|
|
Title: President
|
|
|
|
|
|
|
BIOSPECIFICS TECHNOLOGIES CORP.
a Delaware corporation
|
||
|
By:
|
/s/ Thomas L Wegman
|
|
|
|
Name: Thomas L. Wegman
|
|
|
|
Title: President
|
|
|
DIRECTOR
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/s/ George Gould
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Name:
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George Gould
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BIOSPECIFICS TECHNOLOGIES CORP.
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By:
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/s/ Thomas L. Wegman
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Name: Thomas L. Wegman
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Title: President
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/s/ Tabriztchi & Co., CPA, P.C.
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Garden City, NY
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March 6, 2014
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1. | I have reviewed this annual report on Form 10-K for the fiscal year ended December 31, 2013 of BioSpecifics Technologies Corp.; |
2. | Based on my knowledge, the report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and to the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting. |
Date: March 7, 2014
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/s/ Thomas L. Wegman
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Thomas L. Wegman
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President, Principal Executive and Financial Officer
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1. | The Company’s annual report on Form 10-K for the fiscal year ended December 31, 2013 (the “Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company for the period covered by the Report. |
/s/ Thomas L. Wegman
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Thomas L. Wegman
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President, Principal Executive and Financial Officer
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