| SUPPLEMENTAL PRO FORMA INFORMATION |
17. SUPPLEMENTAL PRO FORMA INFORMATION
The table below summarizes net loss for the periods shown as
though the Acquisition occurred as of January 1, 2010:
| |
|
For the Twelve
Months Ended December 31, |
|
| |
|
2011 |
|
|
2010 |
|
| |
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(7,256,438 |
) |
|
$ |
(1,704,966 |
) |
The pro forma net loss has been adjusted for the
following:
|
1) |
Elimination of $165,000, and
$361,000 of interest expense for the twelve months ended December
31, 2011 and 2010, respectively; such amounts relate to interest
accrued on the Convertible Notes which were converted immediately
prior to the Acquisition (see Note 7) and the Bank Note which was
paid in full settlement of the note immediately prior to the
Acquisition (see Note 8). |
|
2) |
Recognition of an additional
beneficial conversion feature (“BCF”) of $463,000 in
the year ended December 31, 2010 and the elimination of BCF of
$258,000 in the year ended December 31, 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 7). |
|
3) |
Elimination of Acquisition costs
incurred during the year ended December 31, 2011 and 2010, which
are assumed to have been incurred prior to January 1, 2010 for the
purpose of presentation in the pro forma statements of
operations. |
|
4) |
Elimination of $450,000 of
investment banking fees incurred upon the consummation of the
Acquisition on April 8, 2011 from the twelve months ended December
31, 2011. |
|
5) |
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. |
|
6) |
Elimination of Novelos historical
revenue related to the amortization of deferred revenue that was
determined to have no fair value in purchase
accounting. |
|
7) |
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. |
|