| SUPPLEMENTAL PRO FORMA INFORMATION |
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13.
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SUPPLEMENTAL PRO FORMA INFORMATION
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The
table below summarizes revenue and net income (loss) for the
periods shown as though the Acquisition occurred as of January 1,
2010:
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|
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Three Months Ended June 30,
|
|
|
Six Months Ended June 30,
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
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Net
(loss)
|
|
$ |
(2,006,662 |
) |
|
$ |
(3,419,931 |
) |
|
$ |
(3,381,503 |
) |
|
$ |
(1,238,208 |
) |
The
pro forma supplemental information has been adjusted for the
following:
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|
1)
|
Elimination
of $14,000 and $96,000 of interest expense for the three months
ended June 30, 2011 and 2010, respectively, and $165,000 and
$169,000 of interest expense for the six months ended June 30, 2011
and 2010, respectively; such amounts relate to interest accrued on
the Convertible Notes which were converted immediately prior to the
Acquisition (see Note 4) and the Bank Note which was paid in full
settlement of the note immediately prior to the Acquisition (see
Note 5).
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|
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2)
|
Recognition
of a additional BCF of $463,000 in the three and six months ended
June 30, 2010 and the elimination of BCF of $258,000 in the three
and six months ended June 30, 2011 in connection with the
conversion of the Convertible Notes, which is assumed to have
occurred on January 1, 2010 for the purpose of pro forma
presentation (see Note 4).
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|
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3)
|
Elimination
of Acquisition costs incurred during the three and six months ended
June 30, 2011, respectively, which are assumed to have been
incurred prior to January 1, 2010 and the elimination of $450,000
of investment banking fees incurred upon the consummation of the
Acquisition on April 8, 2011 from the three and six months ended
June 30, 2011 for the purpose of presentation in the pro forma
statements of operations.
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|
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4)
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Elimination
of dividends and adjustment of deemed dividends on Novelos’
preferred convertible stock, which is assumed to have been
exchanged for common stock on January 1, 2010 for the purpose of
pro forma presentation. The deemed dividend recorded
when the preferred stock was exchanged in November 2010 was
recalculated based on fair value assumptions on January 1, 2010,
giving effect to the Acquisition.
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|