| SUPPLEMENTAL PRO FORMA INFORMATION |
|
13.
|
SUPPLEMENTAL PRO FORMA INFORMATION
|
The
table below summarizes net loss for the periods shown as though the
Acquisition occurred as of January 1, 2010:
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
|
2011
|
|
|
2010
|
|
|
2011
|
|
|
2010
|
|
|
Net
loss
|
|
$ |
(1,909,039 |
) |
|
$ |
(1,514,809 |
) |
|
$ |
(5,290,519 |
) |
|
$ |
(783,007 |
) |
The
pro forma net loss has been adjusted for the
following:
|
|
1)
|
Elimination
of $0 and $96,000 of interest expense for the three months ended
September 30, 2011 and 2010, respectively, and $165,000 and
$266,000 of interest expense for the nine months ended September
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).
|
|
|
2)
|
Recognition
of a additional BCF of $463,000 in the nine months ended September
30, 2010 and the elimination of BCF of $258,000 in nine months
ended September 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).
|
|
|
3)
|
Elimination
of Acquisition costs incurred during the nine months ended
September 30, 2011, 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 nine months ended September 30, 2011 for the
purpose of presentation in the pro forma statements of
operations.
|
|
|
4)
|
Elimination
of dividends and deemed dividends on Novelos’ preferred
convertible stock, which is assumed to have been exchanged for
common stock at January 1, 2010 in order to reflect the
post-acquisition capital structure for the purpose of pro forma
presentation.
|
|
|
5)
|
Elimination
of Novelos historical revenue related to the amortization of
deferred revenue that was determined to have no fair value in
purchase accounting.
|
|
|
6)
|
Elimination
of liquidated damages accrued in 2010 related to Novelos’
convertible preferred stock. The liquidated damages are
assumed not to have accrued as the preferred stock is assumed to
have been exchanged for common stock at January 1, 2010 in order to
reflect the post-acquisition capital structure for the purpose of
pro forma presentation.
|
|