THE FOLLOWING ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION OF
MOLECULAR USA FOR THE FIRST QUARTER PERIOD ENDED SEPTEMBER 30, 2013AND SHOULD
BE READ IN CONJUNCTION WITH MOLECULAR USA'S INTERIM CONSOLIDATED FINANCIAL
STATEMENTS, INCLUDING THE NOTES THERETO CONTAINED ELSEWHERE IN THE FORM 10-Q.
Our interim consolidated financial statements are stated in United States
Dollars and are prepared in accordance with United States Generally Accepted
We were incorporated in the state of Nevada on May 1, 2002. Up until the fall of
2005, Molecular USA was in the business of mineral exploration and development
of a mineral property.
On October 13, 2005, Molecular USA entered into a distribution and supply
agreement with Molecular Pharmacology Pty. Ltd. (formerly Molecular Pharmacology
Limited) ("MPLA"). MPLA is incorporated under the laws of Australia and at the
time was a wholly owned subsidiary company of PharmaNet Group Limited
("PharmaNet"), an Australian company listed on the Australian Stock Exchange.
Under the terms of the distribution and supply agreement, Molecular USA received
the exclusive distribution rights to distribute, market, promote, detail,
advertise and sell certain "Licensed Products", as defined in the agreement,
with metallo-polypeptide analgesic as an active ingredient, in the United States
(excluding its territories and possessions).
On May 9, 2006, Molecular USA announced that it has acquired 100% of the issued
and outstanding share capital of MPLA. The transaction was originally announced
by Molecular USA in a press release dated November 29, 2005 and was subsequently
approved by a majority of the stockholders of the Company at a stockholders
meeting held on April 21, 2006. As a result of the transaction, PharmaNet, the
former parent company of MPLA, now controls approximately 79% of Molecular USA's
issued and outstanding share capital. The transaction between the parties closed
in escrow with an effective closing date of May 8, 2006. The business of MPLA
is now the business of Molecular USA.
On July 19, 2013, Molecular USA announced its wholly-owned subsidiary, MPLA,
executed an agreement with a New York-based company, Dermatology Development
Corporation ("DDC") to develop and market a range of therapeutic, cosmetic and
cosmecutical products based on the ThermaLIFEŽ product range and its active
ingredient in the United States.
Under the terms of the agreement, DDC is contracted to drive business
relationships with a number of third party entities to sell products
predominantly in the dermatology and cosmetic fields in the United States in
return for an establishment fee and royalties on the agreements executed as a
result of DDC's services, paid for a fixed period net of MPLA's costs of sales.
The engagement of DDC is limited to the provision of the services in the United
States, and is for an initial one year period which may be extended by mutual
agreement between MPLA and DDC.