imm8k-031208.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date
of Report (Date of earliest event reported): March 12,
2008
IMMTECH
PHARMACEUTICALS, INC.
(Exact
name of registrant as specified in its charter)
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(State
or Other Jurisdiction of Incorporation)
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(Commission
File Number)
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(IRS
Employer Identification No.)
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One
North End Avenue
New
York, New York 10282
(Address
of Principal Executive Offices, including Zip Code)
(212)
791-2911
(Registrant’s
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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| ITEM
5.02 |
Departure of Directors or
Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain
Officers. |
On March 12, 2008,
the Board of Directors (the "Board") of Immtech Pharmaceuticals, Inc. (the
"Company") approved the voluntary reduction in annual salary of two executive
officers. The
salary of Eric L. Sorkin, Chairman, Chief Executive Officer and President of the
Company will be reduced from $375,000 to $250,000 for the fiscal year beginning
April 1, 2008. The salary of Cecilia Chan, Vice Chairman of the
Company, will be reduced from $200,000 to$150,000 for the fiscal year beginning
April 1, 2008.
On February 22, 2008,
the Company disclosed that its existing pafuramidine development
program will be discontinued. Under the Company’s revenue recognition
policy, revenue from licensing arrangements is recorded when earned based on the
performance requirements of the contract. Nonrefundable upfront
license fees, for product candidates where the Company is providing continuing
services related to product development, are deferred and recognized as revenue
over the development period or as the Company provides services required under
the agreement. The timing and amount of revenue the Company
recognizes from licenses, either from upfront fees or milestones where the
Company is providing continuing services related to product development, is
dependent upon the Company’s estimates of filing dates. As product
candidates move through the development process, it is necessary to revise these
estimates to consider changes to the product development cycle, such as changes
in the clinical development plan, regulatory requirements, or various other
factors, many of which may be outside of the Company’s control. The
impact on revenue changes in the Company’s estimates and the timing thereof, is
recognized prospectively over the remaining estimated product development
period.
As a result of the
discontinuation and the Company’s revenue recognition policy, the
Company recognized deferred revenue relating to its licensing agreements of
approximately $2.1 million less licensing expenses. Of the
approximately $4.2 million of deferred revenue less licensing expenses relating
to its licensing agreements included in the Company’s Form 10-Q for the quarter
ended December 31, 2007, approximately $1.4 million is reserved to cover the non
foundation related direct vendor costs of discontinuing the pafuramidine
development program and approximately $2.1 million is recognized as
income. The Company also recognized deferred revenue of approximately
$.7 million relating to direct vendor pafuramidine costs in January and February
prior to the discontinuance of the pafuramidine development
program. As a result of the recognition of this deferred revenue, the
Company’s stockholders’ equity currently exceeds $6.0 million and the Company
expects that it will continue to exceed that amount as of March 31,
2008.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Date:
March 12, 2008
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IMMTECH
PHARMACEUTICALS, INC.
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Eric
L. Sorkin
Chairman,
Chief Executive Officer and
President
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