Attached files
| file | filename |
|---|---|
| 8-K/A - RESTORGENEX CORPORATION - Diffusion Pharmaceuticals Inc. | restorgenex_8ka.htm |
| EX-99.1 - AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF PALOMA - Diffusion Pharmaceuticals Inc. | restor_ex9901.htm |
Exhibit 99.2
The following pro forma financial information has been prepared as if the Merger between RestorGenex and the Company occurred on January 1, 2014 for the Pro Forma Statement of Income for the Three Months Ended March 31, 2014. These pro forma financial statements are subject to change.
The information in these pro forma financials for the Company has been derived from the unaudited financial statements for the three months ended March 31, 2014. The information in these pro forma financials for RestorGenex has been derived from the unaudited financial statements for the three months ended March 31, 2014.
RestorGenex Corporation and Paloma Pharmaceuticals, Inc.
Pro Forma Income Statements
For the Three Months Ended March 31, 2014
| Three Months Ended March 31, 2014 (a) | ||||||||||||||||
| Pro Forma | Pro Forma | |||||||||||||||
| RestorGenex | Paloma | Adjustments | Combined | |||||||||||||
| Revenues | $ | – | $ | – | $ | – | $ | – | ||||||||
| Operating expenses | ||||||||||||||||
| General, administrative, research and development | 611,845 | 86,000 | 81,250 | (b) | 779,095 | |||||||||||
| Warrants, options and stock | 149,885 | 52,340 | – | 202,225 | ||||||||||||
| Legal and professional services | 131,686 | 77,495 | – | 209,181 | ||||||||||||
| Research and development | – | 3,600 | – | 3,600 | ||||||||||||
| Depreciation and amortization | 478,104 | 15,487 | 30,874 | (c) | 524,465 | |||||||||||
| Total operating expenses | 1,371,520 | 234,922 | 112,124 | 1,718,566 | ||||||||||||
| Loss from operations | (1,371,520 | ) | (234,922 | ) | (112,124 | ) | (1,718,566 | ) | ||||||||
| Other (income)/expenses | ||||||||||||||||
| Gain on adjustments to fair value of derivative liability | – | (146,807 | ) | – | (146,807 | ) | ||||||||||
| Gain on extinguishment of derivative liability | – | (1,040,095 | ) | – | (1,040,095 | ) | ||||||||||
| Gain from investment in marketable securities | – | (18,243 | ) | – | (18,243 | ) | ||||||||||
| Other income | (49,639 | ) | (7,129 | ) | – | (56,768 | ) | |||||||||
| Interest expense | 58,294 | 29,925 | – | 88,219 | ||||||||||||
| Total other (income)/expenses | 8,655 | (1,182,349 | ) | – | (1,173,694 | ) | ||||||||||
| Net income/(loss) | $ | (1,380,175 | ) | $ | 947,427 | $ | (112,124 | ) | $ | (544,872 | ) | |||||
| Other comprehensive income/( loss) | ||||||||||||||||
| Net unrealized income on marketable securities | $ | – | $ | 16,546 | $ | – | $ | 16,546 | ||||||||
| Comprehensive income/(loss) | $ | (1,380,175 | ) | $ | 963,973 | $ | (112,124 | ) | $ | (528,326 | ) | |||||
| Basic and diluted earnings per share | $ | (0.23 | ) | $ | – | $ | – | $ | (0.06 | ) | ||||||
| Basic and fully-diluted weighted average shares outstanding | 5,934,474 | – | 2,720,000 | (d) | 8,654,474 | |||||||||||
| (a) | Assumes the mergers among RestorGenex, Paloma and VasculoMedics occurred on January 1, 2014. | |
| (b) | Impact of employment agreement from January 1, 2014 to March 31, 2014. | |
| (c) | Amortization of intangible assets for Paloma assuming a 20-year amortization period. | |
| (d) | Impact on weighted average shares outstanding for the acquisition shares being outstanding for the entire quarter. |
| 1 |
The following pro forma financial information has been prepared as if the Merger between RestorGenex and the Company occurred on January 1, 2013 for the Pro Forma Statement of Income for 2013. The information in these pro forma financials for the Company and RestorGenex has been derived from the audited financial statements for 2013. These pro forma financials are subject to change.
RestorGenex Corporation and Paloma Pharmaceuticals, Inc.
Pro Form Income Statements
For the Year Ended December 31, 2013
| Year Ended December 31, 2013 (a) | ||||||||||||||||
| Pro Forma | Pro Forma | |||||||||||||||
| RestorGenex | Paloma | Adjustments | Combined | |||||||||||||
| Revenues | $ | 71,667 | $ | – | $ | – | $ | 71,667 | ||||||||
| Cost of revenues | – | – | – | – | ||||||||||||
| Gross profit | 71,667 | – | – | 71,667 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 2,008,118 | 370,264 | 330,000 | (b) | 2,708,382 | |||||||||||
| Impairment of intangible assets | 1,935,621 | – | – | 1,935,621 | ||||||||||||
| Warrants, options and stock | 4,228,317 | 142,461 | – | 4,370,778 | ||||||||||||
| Fair value of common stock exchanged for warrants | 3,069,792 | – | – | 3,069,792 | ||||||||||||
| Legal and professional services | 1,071,392 | 100,727 | – | 1,172,119 | ||||||||||||
| Depreciation and amortization | 675,757 | 55,411 | 115,918 | (c) | 847,086 | |||||||||||
| Total operating expenses | 12,988,997 | 668,863 | 445,918 | 14,103,778 | ||||||||||||
| Loss from operations | (12,917,330 | ) | (668,863 | ) | (445,918 | ) | (14,032,111 | ) | ||||||||
| Other (income)/expenses | ||||||||||||||||
| Gain on adjustments to fair value of derivative liability | (8,980,077 | ) | (419,921 | ) | – | (9,399,998 | ) | |||||||||
| Gain on extinguishment of derivative liability | (1,635,967 | ) | (742,567 | ) | – | (2,378,534 | ) | |||||||||
| Loss on investment in marketable securities | – | 184,127 | – | 184,127 | ||||||||||||
| Other income | (71,631 | ) | (65,616 | ) | – | (137,247 | ) | |||||||||
| Interest expense | 228,294 | 119,699 | – | 347,993 | ||||||||||||
| Total other (income)/expenses | (10,459,381 | ) | (924,278 | ) | – | (11,383,659 | ) | |||||||||
| Net loss | (2,457,949 | ) | 255,145 | (445,918 | ) | (2,648,452 | ) | |||||||||
| Net loss attributed to non-controlling interests | (6,401 | ) | – | – | (6,401 | ) | ||||||||||
| Net loss attributed to RestorGenex Corporation | (2,464,350 | ) | 255,415 | (445,918 | ) | (2,654,853 | ) | |||||||||
| Preferred dividends | 171,625 | – | – | 171,625 | ||||||||||||
| Net income/(loss) attributable to RestorGenex Corporation common shareholders | $ | (2,635,975 | ) | $ | 255,415 | $ | (445,918 | ) | $ | (2,826,478 | ) | |||||
| Other comprehensive income/( loss) | ||||||||||||||||
| Net unrealized income on marketable securities | $ | – | $ | 247,087 | $ | – | $ | 247,087 | ||||||||
| Comprehensive income/(loss) | $ | (2,635,975 | ) | $ | 502,502 | $ | (445,918 | ) | $ | (2,579,391 | ) | |||||
| Basic and diluted loss per share | $ | (1.00 | ) | $ | – | $ | – | $ | (0.53 | ) | ||||||
| Basic and fully-diluted weighted average shares outstanding | 2,646,603 | – | 2,720,000 | (d) | 5,366,603 | |||||||||||
| (a) | Assumes the merger between RestorGenex and Paloma occurred on January 1, 2013. |
| (b) | Adds the $330,000 of expenses associated with employment agreements for a Paloma executive that would be incurred from January 1, 2013. |
| (c) | Adds $115,918 of additional amortization for intangible assets at Paloma that would be incurred if amortization began on January 1, 2013. |
| (d) | Impact on weighted average shares if the 2,500,000 shares issued for the Paloma merger and the 220,000 shares issued for the VasculoMedics merger were outstanding for the full year. |
| 2 |
The following pro forma financial information has been prepared as if the Merger between RestorGenex and the Company occurred on January 1, 2013 for the Pro Forma Statement of Income for 2012. The information in these pro forma financials for the Company and RestorGenex has been derived from the audited financial statements for 2012. These pro forma financials are subject to change.
RestorGenex Corporation and Paloma Pharmaceuticals, Inc.
Pro Form Income Statements
For the Year Ended December 31, 2012
| Year Ended December 31, 2012 (a) | ||||||||||||||||
| Pro Forma | Pro Forma | |||||||||||||||
| RestorGenex | Paloma | Adjustments | Combined | |||||||||||||
| Revenues | $ | 374,542 | $ | – | $ | – | $ | 374,542 | ||||||||
| Cost of revenues | 235,803 | – | – | 235,803 | ||||||||||||
| Gross profit | 138,739 | – | – | 138,739 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 4,570,161 | 349,674 | 330,000 | (b) | 5,249,835 | |||||||||||
| Research and development | – | 20,963 | – | 20,963 | ||||||||||||
| Impairment of intangible assets | 1,423,844 | – | – | 1,423,844 | ||||||||||||
| Warrants, options and stock | 3,643,662 | 1,081,388 | – | 4,725,050 | ||||||||||||
| Legal and professional services | 2,128,898 | 49,999 | – | 2,178,897 | ||||||||||||
| Depreciation and amortization | 164,043 | 44,657 | 105,533 | (c) | 314,233 | |||||||||||
| Total operating expenses | 11,930,608 | 1,546,681 | 435,533 | 13,912,822 | ||||||||||||
| Loss from operations | (11,791,869 | ) | (1,546,681 | ) | (435,533 | ) | (13,774,083 | ) | ||||||||
| Other (income)/expenses | ||||||||||||||||
| Loss on fair value of derivative liabilities in excess of proceeds | 408,501 | – | – | 408,501 | ||||||||||||
| Gain on adjustments to fair value of derivative liability | (6,907,748 | ) | (578,479 | ) | – | (7,486,227 | ) | |||||||||
| Loss from investment in marketable securities | – | 76,373 | – | 76,373 | ||||||||||||
| Other (income)/expenses | 379,188 | (38,083 | ) | – | 341,105 | |||||||||||
| Increase in present value of remaining lease payments for facilities no longer occupied | 1,010,111 | – | – | 1,010,111 | ||||||||||||
| Interest expense | 167,894 | 118,693 | – | 286,587 | ||||||||||||
| Total other (income)/expenses | (4,942,054 | ) | (421,496 | ) | – | (5,363,550 | ) | |||||||||
| Net loss | (6,849,815 | ) | (1,125,185 | ) | (435,533 | ) | (8,410,533 | ) | ||||||||
| Net loss attributed to non-controlling interests | (19,079 | ) | – | – | (19,079 | ) | ||||||||||
| Net loss attributed to RestorGenex Corporation | (6,868,894 | ) | (1,125,185 | ) | (435,533 | ) | (8,429,612 | ) | ||||||||
| Preferred dividends | 497,167 | – | – | 497,167 | ||||||||||||
| Net loss attributable to RestorGenex Corporation common shareholders | $ | (7,366,061 | ) | $ | (1,125,185 | ) | $ | (435,533 | ) | $ | (8,926,779 | ) | ||||
| Other comprehensive income/( loss) | ||||||||||||||||
| Net unrealized income on marketable securities | $ | – | $ | 107,190 | $ | – | $ | 107,190 | ||||||||
| Comprehensive loss | $ | (7,366,061 | ) | $ | (1,017,995 | ) | $ | (435,533 | ) | $ | (8,819,589 | ) | ||||
| Basic and diluted loss per share | $ | (8.16 | ) | $ | – | $ | – | $ | (2.46 | ) | ||||||
| Basic weighted average shares outstanding | 903,139 | – | 2,720,000 | (d) | 3,623,139 | |||||||||||
| Fully-diluted weighted average shares outstanding | 1,121,987 | – | 2,720,000 | (d) | 3,841,987 | |||||||||||
| (a) | Assumes the merger between RestorGenex and Paloma occurred on January 1, 2012. |
| (b) | Adds the $330,000 of expenses associated with employment agreements for a Paloma executive that would be incurred from January 1, 2012. |
| (c) | Adds $105,533 of additional amortization for intangible assets at Paloma that would be incurred if amortization began on January 1, 2012. |
| (d) | Impact on weighted average shares if the 2,500,000 shares issued for the Paloma merger and the 220,000 shares issued for the VasculoMedics merger were outstanding for the full year. |
| 3 |