Attached files
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8-K/A - Cocrystal Pharma, Inc. | q1100164_8ka-biozone.htm |
EX-99.2 - FINANCIAL STATEMENTS OF BUSINESS ACQUIRED - BIOZONE LABORATORIES, INC. - Cocrystal Pharma, Inc. | q1100164_ex99-2.htm |
EX-99.4 - FINANCIAL STATEMENTS OF BUSINESS ACQUIRED - EQUACHEM, LLC - Cocrystal Pharma, Inc. | q1100164_ex99-4.htm |
EX-99.3 - FINANCIAL STATEMENTS OF BUSINESS ACQUIRED - EQUALAN PHARMA, LLC - Cocrystal Pharma, Inc. | q1100164_ex99-3.htm |
Exhibit 99.5 PRO FORMA FINANCIAL INFORMATION
BIOZONE PHARMACEUTICALS, INC.
INTRODUCTION TO PRO FORMA CONDENSED
COMBINED FINANCIAL STATEMENTS
(Unaudited)
The following unaudited pro forma condensed combined financial statements give effect to the merger between BioZone Pharmaceuticals, Inc. (“BioZone Pharma”) and BioZone Laboratories, Inc. (“BioZone Labs”), Equalan Pharma, LLC (“Equalan”), Equachem LLC (“Equachem”) and BetaZone, LLC (“BetaZone”) (all of which collectively are referred to as “the BioZone Group”), and the issuance by BioZone Pharma prior to June 30, 2011 of convertible notes payable.
On June 30, 2011, BioZone Pharma entered into (i) stock purchase agreements with the shareholders of BioZone Labs pursuant to which BioZone Pharma purchased 100% of the outstanding common stock of BioZone Labs; (ii) LLC Membership Interest Purchase Agreements with the members of Equalan and Equachem pursuant to which BioZone Pharma purchased 100% of the outstanding membership interests of Equalan and Equachem; and (iii) LLC Membership Interest Purchase Agreements with certain members of BetaZone pursuant to which BioZone Pharma purchased 45% of the outstanding membership interests of BetaZone. As a result of these transactions, the former owners of the BioZone Group became the controlling stockholders of BioZone Pharma. Accordingly, the merger has been accounted for as a reverse merger. The unaudited pro forma information is presented for illustration purposes only in accordance with the assumptions set forth below and in the notes to the pro forma condensed combined financial statements.
The unaudited pro forma condensed combined balance sheet as of December 31, 2010 combines the balance sheets of BioZone Pharma and the BioZone Group and gives pro forma effect to (i) BioZone Pharma’s issuance of convertible notes as if the notes were issued in connection with the merger and (ii) the reverse merger between BioZone Pharma and the BioZone Group, in which the Biozone Group is deemed to be the acquiring entity for accounting purposes, as if the reverse merger had been completed as of December 31, 2010. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2010 combines the statement of operations of BioZone Pharma and the BioZone Group and gives pro forma effect to these transactions as if they were completed on January 1, 2010.
The amounts shown for BioZone Pharma have been derived from the historical financial statements, which have been retroactively adjusted to give effect to a forward stock split of 10 to 1, and the elimination of historical operations that are not being continued with the combined entity following the merger.
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Biozone Pharmacueticals, Inc
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Proforma Balance Sheet
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December 31, 2010
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ASSETS
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Biozone Pharmaceuticals
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Biozone Laboratories
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Equalan Pharma
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Equachem
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Proforma Adjustments
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Proforma
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Current Assets:
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Cash and cash equivalents
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$ | 22,778 | $ | 117,121 | $ | 53,042 | $ | 58,532 | $ | 2,099,636 | (4) | $ | 2,351,109 | |||||||||||
Accounts receivable
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1,620,493 | 438,804 | 485,626 | (1,199,587 | ) (2) | 1,345,336 | ||||||||||||||||||
Inventories
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2,191,539 | 238,904 | 73,156 | 2,503,599 | ||||||||||||||||||||
Other Current Assets
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41,450 | 1,832 | 43,282 | |||||||||||||||||||||
Total current assets
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22,778 | 3,970,603 | 732,582 | 617,314 | 900,049 | 6,243,326 | ||||||||||||||||||
Property and Equipment, net
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5,260 | 3,256,873 | 3,262,133 | |||||||||||||||||||||
Note receivable - related party
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52,077 | 52,077 | ||||||||||||||||||||||
Deferred financing costs, net
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11,648 | 23,714 | 150,364 | (4) | 185,726 | |||||||||||||||||||
Investment in Real Property
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61,335 | 61,335 | ||||||||||||||||||||||
Total Assets
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$ | 89,373 | $ | 7,291,201 | $ | 756,296 | $ | 617,314 | $ | 1,050,413 | $ | 9,804,597 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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Current Liabilities:
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Note payable - bank
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2,039,055 | 231,904 | 2,270,959 | |||||||||||||||||||||
Accounts payable and accrued liabilities
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$ | 82,443 | $ | 1,436,288 | $ | 469,628 | $ | 405,268 | $ | (1,199,587 | ) (2) | 1,194,040 | ||||||||||||
Deferred income taxes
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$ | 98,751 | 98,751 | |||||||||||||||||||||
Notes payable - shareholder
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$ | 1,102,926 | 1,102,926 | |||||||||||||||||||||
Convertible notes payable
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$ | 2,250,000 | (4) | 2,250,000 | ||||||||||||||||||||
Current portion of long term debt
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277,299 | 277,299 | ||||||||||||||||||||||
Total current liabilities
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82,443 | 4,954,319 | 701,532 | 405,268 | 1,050,413 | 7,193,975 | ||||||||||||||||||
Long term debt
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3,275,977 | 3,275,977 | ||||||||||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT)
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Common stock
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37,700 | 184,000 | (154,671 | ) (1) | 67,029 | |||||||||||||||||||
Additional paid-in capital
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177,100 | (53,199 | ) (1) | 123,901 | ||||||||||||||||||||
Accumulated deficit
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(204,335 | ) | (1,123,095 | ) | 54,764 | 212,046 | 204,335 | (1) | (856,285 | ) | ||||||||||||||
Total stockholders' equity
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10,465 | (939,095 | ) | 54,764 | 212,046 | (3,535 | ) | 2,610,622 | ||||||||||||||||
Non-Controlling interest
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(3,535 | ) | (3,535 | ) | - | |||||||||||||||||||
Stockholders Equity
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6,930 | (939,095 | ) | 54,764 | 212,046 | - | 2,610,622 | |||||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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$ | 89,373 | $ | 7,291,201 | $ | 756,296 | $ | 617,314 | $ | 1,050,413 | $ | 9,804,597 |
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Biozone Pharmacueticals, Inc
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Proforma Statement of Operations
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Year Ended December 31, 2010
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Biozone Pharmaceuticals
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Biozone Laboratories
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Equalan Pharma
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Equachem
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Proforma Adjustments
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Proforma
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Revenue
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$ | - | $ | 13,354,712 | $ | 852,465 | $ | 387,533 | (418,000 | ) (2) | $ | 14,176,710 | ||||||||||||
Operating Expenses
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Cost of Sales
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- | 7,676,217 | 326,348 | 50,067 | (418,000 | ) (2) | 7,634,632 | |||||||||||||||||
Selling geneal and administrative
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5,403,006 | 347,600 | 217,756 | 5,968,362 | ||||||||||||||||||||
Depreciation and amortization expense
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446,960 | 446,960 | ||||||||||||||||||||||
Research and development expenses
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212,042 | 212,042 | ||||||||||||||||||||||
Interest expense
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403,555 | 28,803 | 432,358 | |||||||||||||||||||||
Equity earnings in non-consolidated subsidiary
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55,305 | (3) | 55,305 | |||||||||||||||||||||
Income tax benefit
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(95,945 | ) | (95,945 | ) | ||||||||||||||||||||
- | 14,045,835 | 702,751 | 267,823 | (362,695 | ) | 14,653,714 | ||||||||||||||||||
Loss from Continuing Operations
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- | (691,123 | ) | 149,714 | 119,710 | (55,305 | ) | (477,004 | ) | |||||||||||||||
Loss from discontinued operations
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(49,410 | ) | 49,410 | (5) | - | |||||||||||||||||||
Net Loss
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(49,410 | ) | (691,123 | ) | 149,714 | 119,710 | (5,895 | ) | (477,004 | ) | ||||||||||||||
Add: Net loss attributable to noncontrolling interest
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932 | (932 | ) (5) | - | ||||||||||||||||||||
Net loss attributable to the Company
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(48,478 | ) | (691,123 | ) | 149,714 | 119,710 | (6,827 | ) | (477,004 | ) | ||||||||||||||
Net loss per common share - basic and diluted
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(0.00 | ) | (0.01 | ) | ||||||||||||||||||||
Weighted average of common shares - basic and diluted
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37,698,000 | 67,029,396 |
3
BioZone Pharmaceuticals, Inc.
Notes to Unaudited Pro-Forma Balance Sheet and Statement of Operations as of and for the year ending December 31, 2010
(1)
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Represents the effect of the reverse merger on Stockholders’ Equity (Deficit).
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(2)
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Represents the elimination of intercompany balances and transactions.
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(3)
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Represents the 45% earnings of BetaZone, recorded under the equity method of accounting.
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(4)
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Represents the issuance on March 29, 2011 of 10% secured convertible promissory notes in the amount of $2,250,000 which mature on the earlier of September 29, 2011 or the closing date of a proposed financing transaction.
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(5)
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Represents the elimination of operations of BioZone Pharma which have been characterized as discontinued operations because they are not being continued in the combined entity following the merger.
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