Form: 8-K/A

Current report filing

October 27, 2008

Documents


Exhibit 99.2
OPKO Health, Inc.
Condensed Consolidated Pro Forma Balance Sheet
As of September 30, 2007
 
   
OPKO
  
OTI
  
Pro forma adjustments
  
Pro forma consolidated
  
(in thousands)
                  
ASSETS
                  
Current assets
                  
Cash and cash equivalents
  
$
4,670
  
$
3,939
  
$
-
  
$
8,609
  
Accounts receivable, net
    
-
    
1,861
    
-
    
1,861
  
Inventory, net
    
-
    
1,047
    
-
    
1,047
  
Prepaid expenses and other current assets
    
1,018
    
692
    
-
    
1,710
  
Total current assets
    
5,688
    
7,539
    
-
    
13,227
  
Property and equipment, net
    
275
    
14
    
(14
)
  
275
  
Investment in OTI, net
    
4,874
    
-
    
(4,874
)
  
-
  
Intangible assets
    
-
    
71
    
(71
)
  
-
  
 
     -     -    
11,387
    
11,387
  
Other assets
    
22
    
-
          
22
  
Total assets
  
$
10,859
  
$
7,624
  
$
6,428
  
$
24,911
  
LIABILITIES AND SHAREHOLDERS’ EQUITY
                          
Current liabilities
                          
Current portion of long-term notes, net
 
$
3,319
  
$
287
    
-
  
$
3,606
  
Accounts payable
    
1,349
    
1,798
    
-
    
3,147
  
Accrued expenses
    
1,741
    
82
    
-
    
1,823
  
Total current liabilities
    
6,409
    
2,167
    
-
    
8,576
  
Line of credit with related party
    
7,629
    
1,275
    
-
    
8,904
  
Long-term capital lease obligations
    
9
    
-
    
-
    
9
  
Total liabilities
    
14,047
    
3,442
    
-
    
17,489
  
Commitments and contingencies
                          
Shareholders’ equity
                          
Series A preferred stock - $0.01 par value, 4,000,000 shares authorized; 869,366 and 0 shares issued and outstanding (liquidation value of $2,336 and $0) at September 30, 2007)
   
9
    
-
    
-
    
9
  
Series C preferred stock $0.01 par value, 500,000 shares authorized; 0 shares issued and outstanding on pro forma basis
   
-
    
-
    
-
    
-
  
Common stock - $0.01 par value, 500,000,000 shares authorized; 165,954,608 shares issued and outstanding on pro forma basis
   
1,632
    
7,488
    
(7,488
)
  
1,659
  
                 
27
        
Additional paid-in capital
    
255,639
    
1,937
    
(1,937
)
  
266,222
  
                 
10,583
        
Accumulated deficit
    
(260,468
)
  
(5,243
)
  
5,243
    
(260,468
)
Total shareholders’ equity
    
(3,188
)
  
4,182
    
6,428
    
7,422
  
Total liabilities and shareholders’ equity
  
$
10,859
  
$
7,624
  
$
6,428
  
$
24,911
  
 
 
OPKO Health, Inc.
Condensed Consolidated Pro Forma Statement of Operations
For the Period from inception (June 23, 2006) to December 31, 2006
(umaudited)
 
   
OPKO
  
OTI
  
Pro forma adjustments
  
Pro forma consolidated
  
(in thousands)
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
  
Revenue
  
$
-
  
$
4,403
  
$
-
  
$
4,403
  
Cost of goods sold
    
-
    
3,828
    
-
    
3,828
  
Gross margin
    
-
    
575
    
-
    
575
  
Operating expenses:
                  
Selling, general and administrative
   
4,190
    
586
    
-
    
4,776
  
Research and development
    
8,535
    
568
    
-
    
9,103
  
Total operating expenses
    
12,725
    
1,154
    
-
    
13,879
  
Operating loss
    
(12,725
)
  
(579
)
  
-
    
(13,304
)
Other (expense) income, net
   
108
    
42
    
(267
)
  
(117
)
Loss before income taxes and loss from OTI
    
(12,617
)
  
(537
)
  
(267
)
  
(13,421
)
Income taxes
    
-
    
279
    
-
    
279
  
Net loss before loss from OTI
    
(12,617
)
  
(258
)
  
(267
)
  
(13,142
)
Loss from OTI
    
-
    
-
    
-
    
-
  
Net loss
    
(12,617
)
  
(258
)
  
(267
)
  
(13,142
)
Preferred stock dividend
    
(943
)
  
-
    
-
    
(943
)
Net loss attributable to common shareholders
  
$
(13,560
)
$
(258
)
$
(267
)
$
(14,085
)
Loss per share, basic and diluted
  
$
(0.12
)
        
$
(0.12
)
Weighted average number of shares outstanding - basic and diluted
    
113,042,000
        
2,762,000
    
115,804,000
  
 
 
OPKO Health, Inc.
Condensed Consolidated Pro Forma Statement of Operations
For the Nine Months Ended September 30, 2007
(unaudited)

   
OPKO
 
OTI
 
Pro forma adjustments
 
Pro forma consolidated
  
(in thousands)
                  
                   
Revenue
  
$
-
  
$
9,874
  
$
-
  
$
9,874
  
Cost of goods sold
    
-
    
7,977
    
-
    
7,977
  
Gross margin
    
-
    
1,897
    
-
    
1,897
  
Operating expenses:
                        
Selling, general and
administrative
    
8,151
    
2,490
    
-
    
10,641
  
Research and development
    
7,010
    
1,060
    
-
    
8,070
  
Write-off of acquired in-
process research and
development
    
243,761
    
-
    
-
    
243,761
  
Total operating expenses
    
258,922
    
3,550
    
-
    
262,472
  
Operating loss
    
(258,922
)
  
(1,653
)
  
-
    
(260,575
)
Other (expense) income, net
   
(379
)
  
171
    
-
    
(208
 )
Loss before income taxes and loss from OTI
    
(259,301
)
  
(1,482
)
  
-
    
(260,783
)
Income taxes
    
-
    
114
    
-
    
114
  
Net loss before loss from OTI
    
(259,301
)
  
(1,368
)
  
-
    
(260,669
)
Loss from OTI
    
(126
)
  
-
    
126
    
-
  
Net loss
    
(259,427
)
  
(1,368
)
  
126
    
(260,669
)
Preferred stock dividend
    
(164
)
  
-
    
-
    
(164
)
Net loss attributable to common shareholders
  
$
(259,591
)
$
(1,368
)
$
126
  
$
(260,833
)
Loss per share, basic and diluted
  
$
(2.24
)
            
$
(2.20
)
Weighted average number of
                          
shares outstanding - basic and diluted
    
116,034,500
          
2,762,000
    
118,796,500
  
 
 
OPKO Health, Inc.
Notes to Condensed Consolidated Pro Forma Financial Statements
 
Note 1. Basis of Presentation.
 
The pro forma balance sheet reflects the balance sheets of Froptix Corporation, as adjusted for the reverse merger between Froptix Corporation and eXegenics, Inc. and the acquisition of Acuity Pharmaceuticals, Inc. which are now known as OPKO Health, Inc. The pro forma statements of operations reflect the historical financial results of OPKO Health, Inc. and the pro forma financial information for Ophthalmic Technologies, Inc., or OTI, was derived from the audited financial statements of OTI for the periods ended April 30, 2006 and April 30, 2007. As a result of OTI’s fiscal financial year differing more than 93 days than that of OPKO, an adjustment was made to OTI’s fiscal year-end to December 31, 2006.
 
The following adjustments were made to reflect the reverse merger between Froptix and eXegenics and the subsequent acquisition of Acuity.

i.
 
The issuance of 61,775,000 shares of common stock for 100% of the outstanding shares of Froptix.
 
   
ii.
 
Eliminate eXegenics retained deficit and treasury stock.
 
   
iv.
 
Eliminate Froptix common stock and Acuity common and preferred stock.
 
   
v.
 
Eliminate Acuity retained deficit.
 
   
vi.
 
Represents write off of in process research and development of Acuity (approximately $213.0 million. Amount was valued at consummation of the acquisition but then subsequently written off in accordance with FASB Interpretation No. 4, Applicability of FASB Statement No. 2 to Business Combinations Accounted for by the Purchase Method.
 
   
vii.
 
Represents dividends which would have been paid to Acuity preferred stock holders had the merger occurred January 1, 2007. Amount calculated as 457,589 Series C Preferred Stock shares multiplied by a fair value of $77/share multiplied by 2% dividend rate (457,589*$77*2%=$704,687).
 
The pro forma Statement of Operations for the 2006 period reflect OPKO and OTI’s results from OPKO’s inception ( June 23, 2006) through December 31, 2006. The pro forma Statement of Operations for the 2007 period reflect OPKO and OTI’s results from January 1, 2007 through September 30, 2007.
 
The pro forma interest expense assumes borrowing funds at a 10% annual interest rate, which is the annual interest rate of OPKO’s current line of credit. The interest expense assumes the funds were borrowed on January 1, 2007.
 
In addition, OTI is a Toronto-Canada based company and as a result, its functional currency and financial statements reflect Canadian Dollars. We have translated their financial statements to U.S. dollars using an exchange rate of $1.01 as of September 30, 2007 and using the weighted average exchange rate of approximately $0.91 for the period ended September 30, 2007.

The following table represents the initial purchase price allocation of the intangible assets:

Intangible assets, net:    
       
Technology    
 
$
4,597
 
Customer relationships    
   
2,978
 
Covenants not to compete    
   
317
 
Tradename    
   
195
 
Goodwill    
   
3,300
  
     
 
$
11,387
 
 
The purchase price allocation of the OTI assets are preliminary and may change significantly.