Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - Trovagene, Inc.Financial_Report.xls
EX-31.1 - EX-31.1 - Trovagene, Inc.a12-9778_1ex31d1.htm
EX-32.2 - EX-32.2 - Trovagene, Inc.a12-9778_1ex32d2.htm
EX-32.1 - EX-32.1 - Trovagene, Inc.a12-9778_1ex32d1.htm
EX-31.2 - EX-31.2 - Trovagene, Inc.a12-9778_1ex31d2.htm

Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

x

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended March 31, 2012

 

OR

 

o

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from               to              

 

COMMISSION FILE NUMBER 000-54556

 

TROVAGENE, INC.

(Exact Name of small business issuer as specified in its charter)

 

Delaware

 

27-2004382

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

11055 Flintkote Avenue, Suite B, San Diego, California 92121

(Address of principal executive offices) (Zip Code)

 

Issuer’s telephone Number: (858) 217-4838

 

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x  No o

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o   No o

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer o

 

Accelerated filer  o

 

 

 

Non-accelerated filer o

 

Smaller reporting company x

(Do not check if a smaller

 

 

reporting company)

 

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o   No x

 

As of May 14, 2012 the issuer had 69,180,357 shares of Common Stock issued and outstanding.

 

 

 




Table of Contents

 

PART I

 

ITEM 1. FINANCIAL STATEMENTS.

 

INDEX TO FINANCIAL STATEMENTS

 

 

Page

 

 

Condensed Consolidated Balance Sheets as of March 31, 2012 (unaudited) and December 31, 2011

4

 

 

Condensed Consolidated Statements of Operations and Comprehensive Net Loss for the Three Months Ended March 31, 2012 and 2011 (unaudited) and the period August 4, 1999 (Inception) to March 31, 2012 (unaudited)

5

 

 

Condensed Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the period August 4, 1999 (Inception) to March 31, 2012 (unaudited)

6

 

 

Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2012 and 2011 (unaudited) and the period August 4, 1999 (Inception) to March 31, 2012 (unaudited)

13

 

 

Notes to Condensed Consolidated Financial Statements (unaudited)

15

 

3



Table of Contents

 

Trovagene, Inc. and Subsidiaries

 

(A development stage company)

 

CONSOLIDATED BALANCE SHEETS

 

 

 

March  31,

 

December 31,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

586,777

 

$

700,374

 

Accounts receivable

 

76,533

 

99,140

 

Prepaid expenses

 

42,441

 

42,658

 

Total current assets

 

705,751

 

842,172

 

Property and equipment, net

 

114,323

 

22,504

 

Other assets

 

362,081

 

174,581

 

Total assets

 

$

1,182,155

 

$

1,039,257

 

 

 

 

 

 

 

Liabilities and Stockholders’ Deficiency

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

946,952

 

$

928,364

 

Accrued expenses

 

585,775

 

501,517

 

Total current liabilities

 

1,532,727

 

1,429,881

 

Derivative financial instruments

 

3,983,430

 

3,840,644

 

Total liabilities

 

5,516,157

 

5,270,525

 

 

 

 

 

 

 

Commitments and contingencies (Note 8)

 

 

 

 

 

Stockholders’ deficiency

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 20,000,000 shares authorized, 95,600 shares outstanding at March 31, 2012 and December 31, 2011, designated as Series A Convertible Preferred Stock with liquidation preference of $956,000 at March 31, 2012 and December 31, 2011

 

96

 

96

 

 

 

 

 

 

 

Common stock, $0.0001 par value, 100,000,000 shares authorized, 67,146,857 and 64,422,157 issued and outstanding at March 31, 2012 and December 31, 2011, respectively

 

6,714

 

6,442

 

 

 

 

 

 

 

Additional paid-in capital

 

40,429,821

 

39,360,625

 

Deficit accumulated during development stage

 

(44,770,633

)

(43,598,431

)

Total stockholders’ deficiency

 

(4,334,002

)

(4,231,268

)

 

 

 

 

 

 

 

 

$

1,182,155

 

$

1,039,257

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements

 

4



Table of Contents

 

Trovagene, Inc. and Subsidiaries
(A Development Stage Company)

Consolidated Statements of Operations and Comprehensive Loss

 

 

 

Three
months ended March 31,

 

For the period August 4, 1999
(Inception) to

 

 

 

2012

 

2011

 

March 31, 2012

 

Royalty income

 

$

34,153

 

$

89,082

 

$

679,223

 

License fees

 

 

 

1,363,175

 

Total revenues

 

34,153

 

89,082

 

2,042,398

 

Operating expenses:

 

 

 

 

 

 

 

Research and development

 

337,407

 

258,016

 

15,866,560

 

Purchased in-process research and development expense-related party

 

 

 

2,666,869

 

General and administrative

 

826,964

 

551,044

 

23,367,818

 

Total operating expenses

 

1,164,371

 

809,060

 

41,901,247

 

Operating loss

 

(1,130,218

)

(719,978

)

(39,858,849

)

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

 

171

 

266,883

 

Interest expense

 

 

(28,511

)

(1,325,372

)

Amortization of deferred debt costs and original issue discount

 

 

 

(2,346,330

)

Change in fair value of derivative instruments

 

(32,424

)

196,331

 

1,193,582

 

Gain on extinguishment of debt

 

 

 

623,383

 

Liquidated damages and other forbearance agreement settlement costs

 

 

 

(1,758,111

)

Net loss and Comprehensive loss

 

(1,162,642

)

(551,987

)

(43,204,814

)

 

 

 

 

 

 

 

 

Preferred stock dividend

 

(9,560

)

(9,560

)

(317,478

)

Cumulative effect of early adoption of ASC 815-40 on November 1, 2006

 

 

 

(455,385

)

Series A convertible preferred stock beneficial conversion feature accreted as a dividend

 

 

 

(792,956

)

Net loss and Comprehensive loss attributable to common stockholders

 

$

(1,172,202

)

$

(561,547

)

$

(44,770,633

)

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

Basic and diluted

 

66,010,076

 

54,137,893

 

 

 

Net loss per common share:

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.02

)

$

(0.01

)

 

 

 

The accompanying notes are an integral part of these consolidated financial statements

 

5



Table of Contents

 

Trovagene, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Stockholders’ Equity (Deficiency)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

Accumulated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Additional

 

Stock

 

During

 

Stockholders’

 

 

 

Common Stock

 

Treasury Shares

 

Paid-In

 

Based

 

Development

 

Equity

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Compensation

 

Stage

 

(Deficiency)

 

Balance, August 4, 1999 (Inception)

 

0

 

$

0

 

0

 

$

0

 

$

0

 

$

0

 

$

0

 

$

0

 

Issuance of common stock to founders for cash at $0.0002 per share

 

222,000,000

 

22,200

 

 

 

 

 

19,800

 

 

 

 

 

42,000

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,760

)

(14,760

)

Balance, January 31, 2000

 

222,000,000

 

22,200

 

0

 

0

 

19,800

 

0

 

(14,760

)

27,240

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(267,599

)

(267,599

)

Balance, January 31, 2001

 

222,000,000

 

22,200

 

0

 

0

 

19,800

 

0

 

(282,359

)

(240,359

)

Capital contribution of cash

 

 

 

 

 

 

 

 

 

45,188

 

 

 

 

 

45,188

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(524,224

)

(524,224

)

Balance, January 31, 2002

 

222,000,000

 

22,200

 

0

 

0

 

64,988

 

0

 

(806,583

)

(719,395

)

Issuance of common stock for cash at $0.0005 per share

 

7,548,000

 

755

 

 

 

 

 

2,645

 

 

 

 

 

3,400

 

Capital contribution of cash

 

*

 

 

 

 

 

 

 

2,500

 

 

 

 

 

2,500

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(481,609

)

(481,609

)

Balance, January 31, 2003

 

229,548,000

 

22,955

 

0

 

0

 

70,133

 

0

 

(1,288,192

)

(1,195,104

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(383,021

)

(383,021

)

Balance, January 31, 2004

 

229,548,000

 

22,955

 

0

 

0

 

70,133

 

0

 

(1,671,213

)

(1,578,125

)

Waiver of founders’ deferred compensation

 

 

 

 

 

 

 

 

 

1,655,031

 

 

 

 

 

1,655,031

 

Private placement of common stock

 

2,645,210

 

265

 

 

 

 

 

2,512,685

 

 

 

 

 

2,512,950

 

Redemption of shares held by Panetta Partners, Inc.

 

(218,862,474

)

(21,886

)

 

 

 

 

(478,114

)

 

 

 

 

(500,000

)

Costs associated with recapitalization

 

 

 

 

 

 

 

 

 

(301,499

)

 

 

 

 

(301,499

)

Share exchange with founders

 

2,258,001

 

226

 

 

 

 

 

(226

)

 

 

 

 

0

 

Issuance of treasury shares

 

 

 

 

 

350,000

 

35

 

(35

)

 

 

 

 

0

 

Issuance of treasury shares to escrow

 

350,000

 

35

 

(350,000

)

(35

)

0

 

 

 

 

 

0

 

Issuance of common stock and warrants for cash at $1.95 per share

 

1,368,154

 

136

 

 

 

 

 

2,667,764

 

 

 

 

 

2,667,900

 

Issuance of 123,659 warrants to selling agents

 

 

 

 

 

 

 

 

 

403,038

 

 

 

 

 

403,038

 

Finders warrants charged to cost of capital

 

 

 

 

 

 

 

 

 

(403,038

)

 

 

 

 

(403,038

)

Deferred stock-based compensation

 

 

 

 

 

 

 

 

 

1,937,500

 

(1,937,500

)

 

 

0

 

Amortization of deferred stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

245,697

 

 

 

245,697

 

Options issued to consultants

 

 

 

 

 

 

 

 

 

1,229,568

 

 

 

 

 

1,229,568

 

Warrants issued to consultants

 

 

 

 

 

 

 

 

 

2,630,440

 

 

 

 

 

2,630,440

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,371,027

)

(5,371,027

)

Balance, January 31, 2005

 

17,306,891

 

$

1,731

 

0

 

$

0

 

$

11,923,247

 

$

(1,691,803

)

$

(7,042,240

)

$

3,190,935

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

6



Table of Contents

 

Trovagene, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Stockholders’ Equity (Deficiency) (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

Accumulated

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

Stock

 

During

 

Stockholders’

 

 

 

Preferred Stock

 

Common Stock

 

Treasury Shares

 

Paid-In

 

Based

 

Development

 

Equity

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Compensation

 

Stage

 

(Deficiency)

 

Balance, January 31, 2005

 

0

 

$

0

 

17,306,891

 

$

1,731

 

0

 

$

0

 

$

11,923,247

 

$

(1,691,803

)

$

(7,042,240

)

$

3,190,935

 

Private placement of common stock

 

 

 

 

 

102,564

 

10

 

 

 

 

 

199,990

 

 

 

 

 

200,000

 

Payment of selling agents fees and expenses in cash

 

 

 

 

 

 

 

 

 

 

 

 

 

(179,600

)

 

 

 

 

(179,600

)

Common stock issued to selling agents

 

 

 

 

 

24,461

 

2

 

 

 

 

 

(2

)

 

 

 

 

0

 

Private placement of common stock

 

 

 

 

 

1,515,384

 

152

 

 

 

 

 

2,954,847

 

 

 

 

 

2,954,999

 

Payment of selling agents fees and expenses in cash

 

 

 

 

 

 

 

 

 

 

 

 

 

(298,000

)

 

 

 

 

(298,000

)

Issuance of 121,231 warrants issued to selling agents

 

 

 

 

 

 

 

 

 

 

 

 

 

222,188

 

 

 

 

 

222,188

 

Selling agents warrants charged to cost of capital

 

 

 

 

 

 

 

 

 

 

 

 

 

(222,188

)

 

 

 

 

(222,188

)

Private placement of preferred stock and warrants for cash at $10.00 per share (restated)

 

277,100

 

277

 

 

 

 

 

 

 

 

 

2,770,723

 

 

 

 

 

2,771,000

 

Accretion of preferred stock dividends (restated)

 

 

 

 

 

 

 

 

 

 

 

 

 

792,956

 

 

 

(792,956

)

0

 

Value of warrants reclassified to derivative financial instrument liability

 

 

 

 

 

 

 

 

 

 

 

 

 

(567,085

)

 

 

 

 

(567,085

)

Payment of selling agents fees and expenses in cash

 

 

 

 

 

 

 

 

 

 

 

 

 

(277,102

)

 

 

 

 

(277,102

)

Issuance of 105,432 warrants issued to selling agents

 

 

 

 

 

 

 

 

 

 

 

 

 

167,397

 

 

 

 

 

167,397

 

Selling agents warrants charged to cost of capital

 

 

 

 

 

 

 

 

 

 

 

 

 

(167,397

)

 

 

 

 

(167,397

)

Return of treasury shares from escrow

 

 

 

 

 

(350,000

)

(35

)

350,000

 

35

 

 

 

 

 

 

 

0

 

Retirement of treasury shares

 

 

 

 

 

 

 

 

 

(350,000

)

(35

)

35

 

 

 

 

 

0

 

Common stock issued for services

 

 

 

 

 

5,000

 

0

 

 

 

 

 

16,500

 

 

 

 

 

16,500

 

Stock-based compensation expense for non-employees

 

 

 

 

 

 

 

 

 

 

 

 

 

2,928,298

 

 

 

 

 

2,928,298

 

Amortization of deferred stock-based compensation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

645,832

 

 

 

645,832

 

Preferred stock dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(60,741

)

(60,741

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,844,326

)

(7,844,326

)

Balance, January 31, 2006

 

277,100

 

$

277

 

18,604,300

 

$

1,860

 

0

 

$

0

 

$

20,264,807

 

$

(1,045,971

)

$

(15,740,263

)

$

3,480,710

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

7



Table of Contents

 

Trovagene, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Stockholders’ Equity (Deficiency) (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred

 

Accumulated

 

Total

 

Temporary Equity—

 

 

 

 

 

 

 

 

 

 

 

Additional

 

Stock

 

During

 

Stockholders’

 

Unregistered

 

 

 

Preferred Stock

 

Common Stock

 

Paid-In

 

Based

 

Development

 

Equity

 

Common Stock

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Compensation

 

Stage

 

(Deficiency)

 

Shares

 

Amount

 

Balance, January 31, 2006

 

277,100

 

$

277

 

18,604,300

 

$

1,860

 

$

20,264,807

 

$

(1,045,971

)

$

(15,740,263

)

$

3,480,710

 

 

$

 

Conversion of Series  A preferred stock and issuance of common stock

 

(174,000

)

(174

)

826,431

 

83

 

91

 

 

 

 

 

 

 

 

Implementation of ASC 718

 

 

 

 

 

 

 

 

 

(1,045,971

)

1,045,971

 

 

 

0

 

 

 

 

 

Private placement of common stock

 

 

 

 

 

754,721

 

75

 

943,326

 

 

 

 

 

943,401

 

 

 

 

 

Payment of selling agents fees and expenses in cash

 

 

 

 

 

 

 

 

 

(118,341

)

 

 

 

 

(118,341

)

 

 

 

 

Issuance of 94,672 warrants to selling agents

 

 

 

 

 

 

 

 

 

55,568

 

 

 

 

 

55,568

 

 

 

 

 

Selling agents warrants charged to cost of apital

 

 

 

 

 

 

 

 

 

(55,568

)

 

 

 

 

(55,568

)

 

 

 

 

Issuance of common stock and warrants for cash at $1.00 per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,000,000

 

1,000,000

 

Payment of finders fees and expenses in cash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(80,000

)

Value of warrants classified as derivative financial instrument liability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,000

)

Issuance of 164,550 units to finder

 

 

 

 

 

 

 

 

 

167,856

 

 

 

 

 

167,856

 

 

 

 

 

Common Stock issued for services

 

 

 

 

 

8,696

 

1

 

9,565

 

 

 

 

 

9,566

 

 

 

 

 

Value attributed to warrants issued with 6% convertible debentures

 

 

 

 

 

 

 

 

 

1,991,822

 

 

 

 

 

1,991,822

 

 

 

 

 

Reclassification of derivative financial instruments to stockholders’ equity upon adoption of ASC 815-40

 

 

 

 

 

 

 

 

 

567,085

 

 

 

(455,385

)

111,700

 

 

 

 

 

Warrants issued for services

 

 

 

 

 

 

 

 

 

101,131

 

 

 

 

 

101,131

 

 

 

 

 

Donated services

 

 

 

 

 

 

 

 

 

62,500

 

 

 

 

 

62,500

 

 

 

 

 

Stock based compensation

 

 

 

 

 

 

 

 

 

1,572,545

 

 

 

 

 

1,572,545

 

 

 

 

 

Preferred stock dividend

 

 

 

 

 

 

 

 

 

 

 

 

 

(59,164

)

(59,164

)

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(7,134,067

)

(7,134,067

)

 

 

 

 

Balance, January 31, 2007

 

103,100

 

$

103

 

20,194,148

 

$

2,019

 

$

24,516,416

 

$

0

 

$

(23,388,879

)

$

1,129,659

 

1,000,000

 

$

905,000

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

8



Table of Contents

 

Trovagene, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Stockholders’ Equity (Deficiency) (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

Total

 

Temporary Equity—

 

 

 

 

 

 

 

 

 

 

 

Additional

 

During

 

Stockholders’

 

Unregistered

 

 

 

Preferred Stock

 

Common Stock

 

Paid-In

 

Development

 

Equity

 

Common Stock

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Stage

 

(Deficiency)

 

Shares

 

Amount

 

Balance, January 31, 2007

 

103,100

 

$

103

 

20,194,148

 

$

2,019

 

$

24,516,416

 

$

(23,388,879

)

1,129,659

 

1,000,000

 

$

905,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of preferred stock to common stock

 

(7,500

)

(7

)

46,875

 

5

 

2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private placement of common stock

 

 

 

 

 

1,700,000

 

170

 

849,830

 

 

 

850,000

 

 

 

 

 

Payment of selling agent fees and expenses

 

 

 

 

 

 

 

 

 

(51,733

)

 

 

(51,733

)

 

 

 

 

Issuance of warrants to selling agents

 

 

 

 

 

 

 

 

 

45,403

 

 

 

45,403

 

 

 

 

 

Selling agent warrants charged to cost of capital

 

 

 

 

 

 

 

 

 

(45,403

)

 

 

(45,403

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liability — warrants at issuance

 

 

 

 

 

 

 

 

 

(45,371

)

 

 

(45,371

)

 

 

 

 

Donated services

 

 

 

 

 

 

 

 

 

275,000

 

 

 

275,000

 

 

 

 

 

Stock-based compensation expense

 

 

 

 

 

 

 

 

 

914,847

 

 

 

914,847

 

 

 

 

 

Preferred stock dividend

 

 

 

 

 

 

 

 

 

 

 

(35,054

)

(35,054

)

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(4,683,141

)

(4,683,141

)

 

 

 

 

Balance, December 31, 2007

 

95,600

 

$

96

 

21,941,023

 

$

2,194

 

$

26,458,991

 

$

(28,107,074

)

(1,645,793

)

1,000,000

 

$

905,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of common stock initially recorded as temporary equity

 

 

 

 

 

1,000,000

 

100

 

904,900

 

 

 

905,000

 

(1,000,000

)

(905,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Private placement of common stock

 

 

 

 

 

1,984,091

 

198

 

1,144,802

 

 

 

1,145,000

 

 

 

 

 

Payment of selling agents fees and expenses

 

 

 

 

 

 

 

 

 

(74,500

)

 

 

(74,500

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of debenture to common stock

 

 

 

 

 

187,282

 

19

 

93,622

 

 

 

93,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liability — warrants at issuance

 

 

 

 

 

 

 

 

 

(201,122

)

 

 

(201,122

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Donated services

 

 

 

 

 

 

 

 

 

390,750

 

 

 

390,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

 

 

 

 

 

 

 

543,697

 

 

 

543,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividend

 

 

 

 

 

 

 

 

 

 

 

(38,240

)

(38,240

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(5,166,240

)

(5,166,240

)

 

 

 

 

Balance, December 31, 2008

 

95,600

 

$

96

 

25,112,396

 

$

2,511

 

$

29,261,140

 

$

(33,311,554

)

$

(4,047,807

)

0

 

$

0

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

9



Table of Contents

 

Trovagene, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Stockholders’ Equity (Deficiency) (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

Total

 

 

 

 

 

 

 

 

 

 

 

Additional

 

During

 

Stockholders’

 

 

 

Preferred Stock

 

Common Stock

 

Paid-In

 

Development

 

Equity

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Stage

 

(Deficiency)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December, 31, 2008

 

95,600

 

$

96

 

25,112,396

 

$

2,511

 

$

29,261,140

 

$

(33,311,554

)

$

(4,047,807

)

Issuance of shares of common stock in connection with convertible debenture forbearance agreement

 

 

 

 

 

5,437,472

 

544

 

1,739,415

 

 

 

1,739,959

 

Issuance of shares of common stock in payment of convertible debenture interest

 

 

 

 

 

360,881

 

36

 

112,255

 

 

 

112,291

 

Private placements of common stock

 

 

 

 

 

2,930,000

 

293

 

1,464,707

 

 

 

1,465,000

 

Issuance of common stock pursuant to a non-exclusive selling agent’s agreement ‘

 

 

 

 

 

413,379

 

41

 

306,696

 

 

 

306,737

 

Issuance of shares of common stock re settlement for consulting services rendered

 

 

 

 

 

957,780

 

96

 

478,794

 

 

 

478,890

 

Stock based compensation expense

 

 

 

 

 

 

 

 

 

177,836

 

 

 

177,836

 

Preferred stock dividend

 

 

 

 

 

 

 

 

 

 

 

(38,240

)

(38,240

)

Derivative liability — warrants and price protected units upon issuance

 

 

 

 

 

 

 

 

 

(1,497,568

)

 

 

(1,497,568

)

Net loss

 

 

 

 

 

 

 

 

 

 

 

(2,483,807

)

(2,483,807

)

Balance, December 31, 2009

 

95,600

 

$

96

 

35,211,908

 

$

3,521

 

$

32,043,275

 

$

(35,833,601

)

$

(3,786,709

)

 

The accompanying notes are an integral part of these consolidated financial statements.

 

10



Table of Contents

 

Trovagene, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Stockholders’ Equity (Deficiency) (Continued)

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Preferred Stock

 

Common Stock

 

Additional
Paid-In

 

Deficit
During

 
Development

 

Total
Stockholders’
Equity

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Stage

 

(Deficiency)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2009

 

95,600

 

$

96

 

35,211,908

 

$

3,521

 

32,043,275

 

(35,833,601

)

$

(3,786,709

)

Issuance of shares of common stock in payment of convertible debenture interest

 

 

 

 

 

513,712

 

51

 

115,920

 

 

 

115,971

 

Issuance of common stock to selling agents

 

 

 

 

 

476,000

 

48

 

(48

)

 

 

 

Private placement of units

 

 

 

 

 

3,469,400

 

347

 

1,734,353

 

 

 

1,734,700

 

Derivative liability — price protected units upon issuance

 

 

 

 

 

 

 

 

 

(1,010,114

)

 

 

(1,010,114

)

Consulting services settled via issuance of stock

 

 

 

 

 

425,000

 

43

 

212,457

 

 

 

212,500

 

Shares issued in settlement of legal fees

 

 

 

 

 

175,439

 

17

 

99,983

 

 

 

100,000

 

Stock issued in payment of deferred salary to former CEO

 

 

 

 

 

76,472

 

8

 

28,338

 

 

 

28,346

 

Shares issued in connection with Agreement & Plan of Merger with Etherogen, Inc,

 

 

 

 

 

12,262,782

 

1,226

 

2,770,163

 

 

 

2,771,389

 

Stock Based Compensation expense

 

 

 

 

 

 

 

 

 

325,930

 

 

 

325,930

 

Preferred stock dividend

 

 

 

 

 

 

 

 

 

 

 

(38,240

)

(38,240

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(5,449,138

)

(5,449,138

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2010

 

95,600

 

$

96

 

52,610,713

 

$

5,261

 

36,320,257

 

$

(41,320,979

)

$

(4,995,365

)

 

The accompanying notes are an integral part of these consolidated financial statements.

 

11



Table of Contents

 

Trovagene, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Stockholders’ Equity (Deficiency)

 

 

 

 

 

 

 

 

 

 

 

 

 

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

Preferred

 

Preferred

 

Common

 

Common

 

Additional

 

During

 

Total

 

 

 

Stock

 

Stock

 

Stock

 

Stock

 

Paid-In

 

Development

 

Stockholders’

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Stage

 

Deficiency

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2010

 

95,600

 

$

96

 

52,610,713

 

$

5,261

 

$

36,320,257

 

$

(41,320,979

)

$

(4,995,365

)

Issuance of shares of common stock in payment of convertible debenture interest in accordance with Forbearance Agreement

 

 

 

 

 

385,284

 

38

 

85,237

 

 

 

85,275

 

Private placement of units

 

 

 

 

 

5,147,000

 

515

 

2,572,985

 

 

 

2,573,500

 

Derivative liability-fair value of warrants and price protected units issued

 

 

 

 

 

 

 

 

 

(1,298,618

)

 

 

(1,298,618

)

Shares issued in connection with Board Compensation

 

 

 

 

 

250,500

 

25

 

125,225

 

 

 

125,250

 

Issuance of common stock to shareholder as finder’s fees

 

 

 

 

 

541,550

 

54

 

(54

)

 

 

 

Issuance of common stock in connection with consulting services

 

 

 

 

 

350,000

 

35

 

174,965

 

 

 

175,000

 

Stock issued in connection with conversion of convertible debentures

 

 

 

 

 

5,137,110

 

514

 

1,129,650

 

 

 

1,130,164

 

Stock based compensation

 

 

 

 

 

 

 

 

 

250,978