Incara Pharmaceuticals reported a loss of $12.2 million for fiscal 2002 and said the company would run out of money in February if it can’t raise additional cash.

For the quarter ended Sept. 30, Incara reported a net loss of $3.37 million, or 20 cents per share. Revenue was just $46,000 for the quarter and $86,000 for the year.

The company reports that it has $209,000 in cash and cash equivalents as of Sept. 30, down from $5.45 million a year earlier. Incara lists total assets of $2.2 million, down from $8.61 million.

Because Incara has suffered recurring losses from operations and has a net capital deficiency, the company’s independent accountants have issued a going concern qualification in its audit opinion for fiscal 2002.

Incara is seeking to raise additional funds in 2003 by establishing a collaborative relationship for its catalytic antioxidant program and by selling stock. It is also exploring other strategic and financial alternatives.

During the fourth quarter for Incara, the company’s stock was delisted from Nasdaq on for failing to meet the $1 minimum bid requirement. Shares are now traded on the Over-the-Counter Bulletin Board for less than 10 cents per share.

In September, Incara’s wholly owned subsidiary, Incara Cell Technologies Inc., sold all of its liver cell and liver stem cell program to Vesta Therapeutics Inc. for $2.8 million, plus $400,000 in debt reduction. The transaction closed in first quarter of fiscal 2003, providing much needed operating capital for a company that, by its own accounts, ran out of money at the end of September.

Incara also ceased development of deligoparin in September, following results of a phase II-III trial.