Citius Pharmaceuticals, Inc. - FORM 8-K/A - EX-99.2 - UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS - June 13, 2016

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EX-99.1 - FINANCIAL STATEMENTS OF LMB - Citius Pharmaceuticals, Inc.ctxr_ex991.htm
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EXHIBIT 99.2

 

UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS

 

An unaudited condensed pro forma balance sheet as of March 31, 2016 is not required as the acquisition of Leonard-Meron Biosciences, Inc. was completed on March 30, 2016. The balance sheet of Leonard-Meron Biosciences, Inc. is included in the unaudited consolidated balance sheet of Citius Pharmaceuticals, Inc. filed in its quarterly report on Form 10-Q for the six months ended March 31, 2016. The unaudited condensed pro forma statements of operations for the year ended September 30, 2015 and the six months ended March 31, 2016 were prepared as if the acquisition was effective on October 1, 2014.

 

The unaudited condensed pro forma financial statements should be read in conjunction with the consolidated financial statements of Leonard-Meron Biosciences, Inc. included herein and the consolidated financial statements of Citius Pharmaceuticals, Inc. included in its annual report on Form 10-K for the year ended September 30, 2015 and its unaudited consolidated financial statements included in its quarterly report on Form 10-Q for the six months ended March 31, 2016.

 

The pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the future financial position or future results of operation of the combined business after the acquisition of Leonard-Meron Biosciences, Inc. by Citius Pharmaceuticals, Inc., or of the financial position or results of operations of the combined business that would have actually occurred had the acquisition been effected as of the dates described above.

 

 
1
 

 

CITIUS PHARMACEUTICALS, INC.
CONDENSED PRO FORMA STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 2015

(Unaudited)

 

 

 

Citius Pharmaceuticals, Inc.

 

 

Leonard-Meron Biosciences, Inc.

 

 

Pro Forma Adjustments

 

 

Notes

 

Pro Forma Statement of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$-

 

 

$-

 

 

$-

 

 

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

1,797,045

 

 

 

1,110,993

 

 

 

-

 

 

 

 

 

2,908,038

 

General and administrative

 

 

946,613

 

 

 

1,594,740

 

 

 

-

 

 

 

 

 

2,541,353

 

Stock-based compensation - general and administrative

 

 

486,271

 

 

 

286,378

 

 

 

-

 

 

 

 

 

772,649

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

3,229,929

 

 

 

2,992,111

 

 

 

-

 

 

 

 

 

6,222,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

(3,229,929)

 

 

(2,992,111)

 

 

-

 

 

 

 

 

(6,222,040)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

3,066

 

 

 

-

 

 

 

-

 

 

 

 

 

3,066

 

Interest expense

 

 

(7,500)

 

 

(704,934)

 

 

701,044

 

 

(A)

 

 

(11,390)

Gain (loss) on revaluation of derivative warrant liability

 

 

332,095

 

 

 

(37,054)

 

 

37,054

 

 

(B)

 

 

332,095

 

Change in fair value of embedded derivatives

 

 

-

 

 

 

(29,233)

 

 

29,233

 

 

(C)

 

 

-

 

Gain on foreign exchange

 

 

-

 

 

 

24,999

 

 

 

(24,999)

 

(D)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Income (Expenses), Net

 

 

327,661

 

 

 

(746,222)

 

 

742,332

 

 

 

 

 

323,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before Income Taxes

 

 

(2,902,268)

 

 

(3,738,333)

 

 

742,332

 

 

 

 

 

(5,898,269)

Income tax benefit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

Net Loss

 

$(2,902,268)

 

$(3,738,333)

 

$742,332

 

 

 

 

$(5,898,269)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Share - Basic and Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$(0.10)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citius Pharmaceuticals, Inc. - Historical

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31,835,440

 

Shares issued to stockholders of Leonard-Meron Biosciences, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,136,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60,972,261

 

 

 

2

 

 

CITIUS PHARMACEUTICALS, INC.

CONDENSED PRO FORMA STATEMENT OF OPERATIONS FOR SIX MONTHS ENDED MARCH 31, 2016 (Unaudited)

 

 

 

Citius Pharmaceuticals, Inc.

 

 

Leonard-Meron Biosciences, Inc.

 

 

Pro Forma Adjustments

 

 

Notes

 

Pro Forma Statement of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$-

 

 

$-

 

 

$-

 

 

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

628,856

 

 

 

503,527

 

 

 

-

 

 

 

 

 

1,132,383

 

General and administrative

 

 

1,050,518

 

 

 

777,776

 

 

 

-

 

 

 

 

 

1,828,294

 

Stock-based compensation - general and administrative

 

 

236,913

 

 

 

81,616

 

 

 

-

 

 

 

 

 

318,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

 

1,916,287

 

 

 

1,362,919

 

 

 

-

 

 

 

 

 

3,279,206

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

(1,916,287)

 

 

(1,362,919)

 

 

-

 

 

 

 

 

(3,279,206)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Income (Expense), Net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

18

 

 

 

-

 

 

 

-

 

 

 

 

 

18

 

Interest expense

 

 

-

 

 

 

(1,306,937)

 

 

1,303,906

 

 

(A)

 

 

(3,031)

Gain (loss) on revaluation of derivative warrant liability

 

 

(173,906)

 

 

(142,224)

 

 

142,224

 

 

(B)

 

 

(173,906)

Change in fair value of embedded derivatives

 

 

-

 

 

 

(186,350)

 

 

186,350

 

 

(C)

 

 

-

 

Gain on foreign exchange

 

 

-

 

 

 

14,156

 

 

 

(14,156)

 

(D)

 

 

-

 

Gain on debt extinguishment

 

 

-

 

 

 

2,721

 

 

 

(2,721)

 

(E)

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Other Income (Expenses), Net

 

 

(173,888)

 

 

(1,618,634)

 

 

1,615,603

 

 

 

 

 

(176,919)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before Income Taxes

 

 

(2,090,175)

 

 

(2,981,553)

 

 

1,615,603

 

 

 

 

 

(3,456,125)

Income tax benefit

 

 

-

 

 

 

-

 

 

 

-

 

 

 

 

 

-

 

Net Loss

 

$(2,090,175)

 

$(2,981,553)

 

$1,615,603

 

 

 

 

$(3,456,125)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Loss Per Share - Basic and Diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$(0.05)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Number of Common Shares Outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citius Pharmaceuticals, Inc. - Historical

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35,821,477

 

Shares issued to stockholders of Leonard-Meron Biosciences, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29,136,821

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pro Forma basic and diluted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64,958,298

 

 
 
3
 

 

NOTES TO THE UNAUDITED CONDENSED PRO FORMA FINANCIAL STATEMENTS

  

On March 30, 2016, Citius Pharmaceuticals, Inc. ("Company") acquired all of the outstanding stock of Leonard-Meron Biosciences, Inc. ("LMB") by issuing 29,136,821 shares of its common stock. As of March 30, 2016, the stockholders of LMB received 41% of the issued and outstanding common stock of the Company. In addition, the Company converted the outstanding common stock warrants of LMB into 3,645,297 common stock warrants of the Company and converted the outstanding common stock options of LMB into 1,158,758 common stock options of the Company. All of the outstanding convertible notes payable previously issued by LMB were converted into shares of LMB common stock immediately prior to the closing of the acquisition.

 

(A)

To reverse LMB's interest expense on LMB's outstanding convertible notes payable that were converted into shares of LMB common stock immediately prior to the closing of the acquisition.

(B)

To eliminate LMB's gain (loss) on revaluation of derivative warrant liability as the down-round protections on certain LMB warrants were cancelled in connection with the closing of the acquisition.

(C)

To eliminate LMB's gain (loss) on the change in fair value of embedded derivatives as the down-round protections on all LMB convertible notes payable were eliminated in connection with their conversion to LMB common stock immediately prior to the closing of the acquisition.

(D)

To eliminate LMB's gain on foreign exchange on LMB's outstanding convertible notes payable that were converted into shares of LMB common stock immediately prior to the closing of the acquisition.

(E)

To eliminate LMB's gain on debt extinguishment on LMB's outstanding convertible notes payable that were converted into shares of LMB common stock immediately prior to the closing of the acquisition.

 

 

4

Citius Pharmaceuticals, Inc. Reports