Attached files
| file | filename |
|---|---|
| EX-99.2 - EXHIBIT 99.2 - Adynxx, Inc. | v384234_ex99-2.htm |
| 8-K/A - FORM 8-K/A - Adynxx, Inc. | v384234_8ka.htm |
| EX-99.1 - EXHIBIT 99.1 - Adynxx, Inc. | v384234_ex99-1.htm |
ALLIQUA BIOMEDICAL, INC. AND SUBSIDIARIES
Pro Forma Condensed Consolidated Balance Sheets
(Unaudited)
As of March 31, 2014
| Alliqua (a) | Choice (b) | Pro forma adjustments (c) | Pro forma adjustments (d) | Pro Forma Total | ||||||||||||||||
| ASSETS: | ||||||||||||||||||||
| Current Assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 9,646,810 | $ | 26,030 | $ | - | $ | (2,000,000 | ) | $ | 7,672,840 | |||||||||
| Accounts receivable | 164,050 | 231,373 | (231,373 | ) | - | 164,050 | ||||||||||||||
| Inventory | 501,071 | 328,071 | - | - | 829,142 | |||||||||||||||
| Prepaid expenses and other current assets | 138,622 | - | - | - | 138,622 | |||||||||||||||
| Total current assets | 10,450,553 | 585,474 | (231,373 | ) | (2,000,000 | ) | 8,804,654 | |||||||||||||
| Improvements and equipment, net | 1,673,179 | - | - | - | 1,673,179 | |||||||||||||||
| Intangible assets, net | 2,151,929 | - | - | 2,683,000 | 4,834,929 | |||||||||||||||
| Goodwill | 425,969 | - | - | 3,662,899 | 4,088,868 | |||||||||||||||
| Other assets | 174,640 | - | - | - | 174,640 | |||||||||||||||
| Debt issuance costs, net of accumulated amortization of $2,377 | - | 43,591 | (43,591 | ) | - | - | ||||||||||||||
| Total assets | $ | 14,876,270 | $ | 629,065 | $ | (274,964 | ) | $ | 4,345,899 | 19,576,270 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||
| Current Liabilities: | ||||||||||||||||||||
| Accounts payable | $ | 757,767 | $ | 850,732 | $ | (850,732 | ) | $ | - | $ | 757,767 | |||||||||
| Accrued expenses | 1,775,495 | 1,676 | (1,676 | ) | - | 1,775,495 | ||||||||||||||
| Payable for distribution rights | 233,333 | - | - | - | 233,333 | |||||||||||||||
| Deferred revenue | 78,000 | - | - | - | 78,000 | |||||||||||||||
| Derivative liability | 544,100 | - | - | - | 544,100 | |||||||||||||||
| Deferred lease incentive liability - current | 8,337 | - | - | - | 8,337 | |||||||||||||||
| Asset based credit facility | - | 86,488 | (86,488 | ) | - | - | ||||||||||||||
| Notes Payable | - | 275,000 | (275,000 | ) | - | - | ||||||||||||||
| Other current liabilities | 83,553 | - | - | 2,700,000 | 2,783,553 | |||||||||||||||
| Total current liabilities | 3,480,585 | 1,213,896 | (1,213,896 | ) | 2,700,000 | 6,180,585 | ||||||||||||||
| Related party convertible notes, net of discount | - | 400,955 | (400,955 | ) | - | - | ||||||||||||||
| Deferred lease incentive liability | 90,324 | - | - | - | 90,324 | |||||||||||||||
| Deferred tax obligation | 56,500 | - | - | - | 56,500 | |||||||||||||||
| Total liabilities | 3,627,409 | 1,614,851 | (1,614,851 | ) | 2,700,000 | 6,327,409 | ||||||||||||||
| Commitments and Contingencies | ||||||||||||||||||||
| Redeemable Preferred Stock | ||||||||||||||||||||
| Series A Convertible Preferred Stock, par value $0.0001 per share, 2,315,000 shares authorized; 1,610,500 and 1,723,000 shares issued and outstanding as of December 31, 2013 and December 31, 2012, respectively | 3,221,000 | (3,221,000 | ) | - | - | |||||||||||||||
| Series B Convertible Preferred Stock, par value $0.0001 per share, 2,000,000 shares authorized; 1,127,296 shares issued and outstanding as of December 31, 2013 and December 31, 2012 | 2,254,592 | (2,254,592 | ) | - | - | |||||||||||||||
| Series C Convertible Preferred Stock, par value $0.0001 per share, 3,000,000 shares authorized; 2,201,237 and 2,101,237 shares issued and outstanding as of December 31, 2013 and December 31, 2012, respectively | 2,147,185 | (2,147,185 | ) | - | - | |||||||||||||||
| Stockholders' Equity | ||||||||||||||||||||
| Preferred Stock, par value $0.001 per share, 1,000,000 shares authorized, no shares issued and outstanding | - | - | - | - | - | |||||||||||||||
| Common Stock, par value $0.001 per share, 45,714,286 shares authorized; 12,533,366 and 11,484,191 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 12,533 | 172 | (172 | ) | 12,533 | |||||||||||||||
| Additional paid-in capital | 64,869,769 | 630,939 | (630,939 | ) | 2,000,000 | 66,869,769 | ||||||||||||||
| Subscription receivable | - | (91,000 | ) | 91,000 | - | - | ||||||||||||||
| Accumulated deficit | (53,633,441 | ) | (9,148,674 | ) | 9,502,775 | (354,101 | ) | (53,633,441 | ) | |||||||||||
| Total stockholders' equity | 11,248,861 | (985,786 | ) | 1,339,887 | 1,645,899 | 13,248,861 | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 14,876,270 | $ | 629,065 | $ | (274,964 | ) | $ | 4,345,899 | $ | 19,576,270 | |||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ALLIQUA BIOMEDICAL, INC. AND SUBSIDIARIES
Pro Forma Condensed Consolidated Statements of Operations
(Unaudited)
For the Year Ended December 31, 2013
| Alliqua (a) | Choice (b) | Pro forma adjustments (c) | Pro Forma Total | |||||||||||||
| Revenue, net of returns, allowances and discounts | $ | 1,797,745 | $ | 1,796,188 | $ | - | $ | 3,593,933 | ||||||||
| Cost of revenues | 2,097,033 | 612,605 | - | 2,709,638 | ||||||||||||
| Gross (loss) profit | (299,288 | ) | 1,183,583 | - | 884,295 | |||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative | 11,669,998 | 1,946,880 | 268,300 | 13,885,178 | ||||||||||||
| Research and product development | 63,204 | - | - | 63,204 | ||||||||||||
| Impairment of in-process research and development | 8,100,000 | - | - | 8,100,000 | ||||||||||||
| Total operating expenses | 19,833,202 | 1,946,880 | 268,300 | 22,048,382 | ||||||||||||
| Loss from operations | (20,132,490 | ) | (763,297 | ) | (268,300 | ) | (21,164,087 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest expense | (4,807 | ) | (56,767 | ) | - | (61,574 | ) | |||||||||
| Interest income | 2,913 | - | - | 2,913 | ||||||||||||
| Change in value of warrant liability | (1,833,498 | ) | - | - | (1,833,498 | ) | ||||||||||
| Total other (expense) income | (1,835,392 | ) | (56,767 | ) | - | (1,892,159 | ) | |||||||||
| Income tax provision | 9,000 | - | - | 9,000 | ||||||||||||
| Net loss | (21,976,882 | ) | (820,064 | ) | (268,300 | ) | (23,065,246 | ) | ||||||||
| Deemed dividend to preferred stockholders | (462,006 | ) | - | - | (462,006 | ) | ||||||||||
| Net loss attributable to common stockholders | $ | (22,438,888 | ) | $ | (820,064 | ) | $ | (268,300 | ) | $ | (23,527,252 | ) | ||||
| Basic and diluted net loss per common share | $ | (3.14 | ) | - | - | $ | (3.17 | ) | ||||||||
| Weighted average shares used in computing basic and diluted net loss per common share | 7,140,613 | - | 274,771 | 7,415,384 | ||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ALLIQUA BIOMEDICAL, INC. AND SUBSIDIARIES
Pro Forma Condensed Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended March 31, 2014
| Alliqua (a) | Choice (b) | Pro forma adjustments (c) | Pro Forma Total | |||||||||||||
| Revenue, net of returns, allowances and discounts | $ | 590,575 | $ | 460,634 | $ | - | $ | 1,051,209 | ||||||||
| Cost of revenues | 631,699 | 139,246 | - | 770,945 | ||||||||||||
| Gross (loss) profit | (41,124 | ) | 321,388 | - | 280,264 | |||||||||||
| Operating expenses | ||||||||||||||||
| Selling, general and administrative | 8,712,526 | 682,489 | 67,075 | 9,462,090 | ||||||||||||
| Total operating expenses | 8,712,526 | 682,489 | 67,075 | 9,462,090 | ||||||||||||
| Loss from operations | (8,753,650 | ) | (361,101 | ) | (67,075 | ) | (9,181,826 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Interest expense | (292 | ) | (23,728 | ) | - | (24,020 | ) | |||||||||
| Interest income | 4,547 | - | - | 4,547 | ||||||||||||
| Change in value of warrant liability | (283,267 | ) | - | - | (283,267 | ) | ||||||||||
| Total other (expense) income | (279,012 | ) | (23,728 | ) | - | (302,740 | ) | |||||||||
| Income tax provision | 3,500 | - | - | 3,500 | ||||||||||||
| Net loss | $ | (9,036,162 | ) | (384,829 | ) | (67,075 | ) | $ | (9,488,066 | ) | ||||||
| Basic and diluted net loss per common share | $ | (0.73 | ) | - | - | $ | (0.75 | ) | ||||||||
| Weighted average shares used in computing basic and diluted net loss per common share | 12,356,096 | - | 274,771 | 12,630,867 | ||||||||||||
See accompanying notes to unaudited pro forma condensed consolidated financial statements.
ALLIQUA BIOMEDICAL, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 – ACQUISITION
On May 5, 2014, Alliqua Biomedical Inc. (“Alliqua”) acquired all outstanding equity interests of Choice Therapeutics, Inc. (“Choice”). The acquisition was accounted for using the purchase method in accordance with ASC 805, “Business Combinations”.
NOTE 2 - PRO FORMA ADJUSTMENTS
The pro forma adjustments to the condensed combined balance sheet give effect to the acquisition of Choice as if the transaction had occurred on March 31, 2014. The pro forma adjustments to the condensed consolidated statements of operations for the three months ended March 31, 2014 and year ended December 31, 2013 give effect to the acquisition of Choice as if the transactions had had been completed as the beginning of the periods indicated.
Balance Sheet – March 31, 2014
| a. | Derived from the unaudited balance sheet of Alliqua as of March 31, 2014 contained in the Form 10-Q filed with the SEC on May 12, 2014. | |
| b. | Derived from the unaudited balance sheet of Choice as of March 31, 2014 contained within this filing. | |
| c. | Represents certain assets and liabilities of Choice which were excluded from the acquisition. | |
| d. | Reflects the acquisition of Choice based on the preliminary allocation of consideration paid. |
The following table summarizes the estimated fair values of the assets acquired.
| Consideration paid: | $ | 6,700,000 | ||
| Assets acquired: | ||||
| Cash | 26,030 | |||
| Inventory | 328,071 | |||
| Intangibles | 2,683,000 | |||
| Goodwill | 3,662,899 | |||
| Net assets acquired | $ | 6,700,000 |
The cost of the transaction was allocated to the tangible and intangible assets and liabilities assumed based on estimates of their respective fair values at the date of acquisition with the remaining unallocated purchase price recorded as goodwill. The consideration paid consists of an aggregate cash payment of $2,000,000, 274,771 total shares of Alliqua’s common stock, par value $0.001 per share, at a per share purchase price equal to $7.29, or approximately $2,000,000, and contingent consideration of $2,700,000.
Management is responsible for the valuation of net assets and considered a number of factors when estimating the fair values and estimated useful lives of acquired assets and liabilities.
Statement of Operations - For the Year Ended December 31, 2013
| a) | Derived from the audited statement of operations of Alliqua for the year ended December 31, 2013 contained in the Form 10-K filed with the SEC on March 24, 2014. |
| b) | Derived from the audited statement of operations of Choice for the year ended December 31, 2013 contained within this filing. |
| c) | Amortization of intangibles acquired. |
Statement of Operations - For the Three Months Ended March 31, 2014
| a) | Derived from the unaudited statement of operations of Alliqua for the three months ended March 31, 2014 contained in the Form 10-Q filed with the SEC on May 12, 2014. |
| b) | Derived from the unaudited statement of operations of Choice for the three months ended March 31, 2014 contained within this filing. |
| c) | Amortization of intangibles acquired. |