þ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
o | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware (State or other jurisdiction of incorporation) |
001-31564 (Commission File Number) |
87-0458888 (I.R.S. Employer Identification No.) |
||
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company þ | |||
(Do not check if a smaller reporting company) |
ITEM 1. | Financial statements. |
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 2,606,381 | $ | 867,738 | ||||
Accounts receivable, net |
238,546 | 229,891 | ||||||
Inventory, net |
266,692 | 258,939 | ||||||
Prepaid expenses and other current assets |
357,575 | 559,082 | ||||||
Total current assets |
3,469,194 | 1,915,650 | ||||||
Property and equipment, net of accumulated depreciation of
$20,675 and $8,085, respectively |
709,512 | 21,589 | ||||||
Other assets |
250 | 250 | ||||||
Intangible assets |
6,340,656 | 6,340,656 | ||||||
Total assets |
$ | 10,519,612 | $ | 8,278,145 | ||||
Liabilities, Redeemable Preferred Stock, Shareholders Deficit and
Noncontrolling Interest |
||||||||
Current liabilities: |
||||||||
Current debt |
$ | 7,856,206 | $ | 56,911 | ||||
Accounts payable |
770,211 | 1,096,125 | ||||||
Accrued expenses |
622,738 | 789,482 | ||||||
Derivative liability-current |
1,134,042 | | ||||||
Total current liabilities |
10,383,197 | 1,942,518 | ||||||
Long-term debt |
| 7,290,881 | ||||||
Deferred tax liability |
2,500,000 | 2,500,000 | ||||||
Warrant liability |
18,631,283 | 8,171,518 | ||||||
Derivative liability |
5,468,898 | 2,120,360 | ||||||
Other long-term liabilities |
198,804 | 255,606 | ||||||
Total liabilities |
37,182,182 | 22,280,883 | ||||||
Commitments and contingencies |
||||||||
Preferred stock series A, $0.001 par value; 9,000 shares
authorized; 3,250 shares issued and 950 and 2,886 shares
outstanding, respectively |
390,015 | 1,280,150 | ||||||
Preferred stock series B, $0.001 par value; 9,000 shares
authorized; 4,640 shares issued and 487 and 4,640 shares
outstanding, respectively |
| | ||||||
Preferred stock series B, $0.001 par value; subscription receivable |
| (210,000 | ) | |||||
Preferred stock series D, $0.001 par value; 8,000 shares
authorized; 1,645 and 7,779 shares issued, respectively, and 6,144
and 1,645 shares outstanding, respectively |
| | ||||||
Fibrocell Science, Inc. shareholders deficit: |
||||||||
Common stock, $0.001 par value; 250,000,000 shares authorized;
45,498,230 and 20,375,500 shares issued and outstanding,
respectively |
45,498 | 20,376 | ||||||
Additional paid-in capital |
17,596,984 | 2,437,893 | ||||||
Accumulated deficit during development stage |
(45,191,992 | ) | (17,981,530 | ) | ||||
Total Fibrocell Science, Inc. shareholders deficit |
(27,549,510 | ) | (15,523,261 | ) | ||||
Noncontrolling interest |
496,925 | 450,373 | ||||||
Total deficit and noncontrolling interest |
(27,052,585 | ) | (15,072,888 | ) | ||||
Total liabilities, preferred stock, shareholders deficit and
noncontrolling interest |
$ | 10,519,612 | $ | 8,278,145 | ||||
1
Successor | Successor | |||||||
For the three | For the three | |||||||
months ended | months ended | |||||||
June 30, 2011 | June 30, 2010 | |||||||
Revenue |
||||||||
Product sales |
$ | 253,274 | $ | 264,062 | ||||
Total revenue |
253,274 | 264,062 | ||||||
Cost of sales |
125,753 | 175,916 | ||||||
Gross profit |
127,521 | 88,146 | ||||||
Selling, general and administrative expenses |
3,265,344 | 1,821,330 | ||||||
Research and development expenses |
1,601,665 | 1,473,741 | ||||||
Operating loss |
(4,739,488 | ) | (3,206,925 | ) | ||||
Other income (expense) |
||||||||
Warrant (expense) income |
(3,510,552 | ) | 1,712,430 | |||||
Derivative revaluation expense |
(1,561,412 | ) | | |||||
Interest expense |
(283,661 | ) | (203,268 | ) | ||||
Loss from continuing operations |
(10,095,113 | ) | (1,697,763 | ) | ||||
Loss from discontinued operations |
(6,083 | ) | (12,502 | ) | ||||
Net loss |
(10,101,196 | ) | (1,710,265 | ) | ||||
Net loss attributable to noncontrolling interest |
(26,896 | ) | (1,250 | ) | ||||
Net loss attributable to Fibrocell Science, Inc. common shareholders |
$ | (10,128,092 | ) | $ | (1,711,515 | ) | ||
Per share information: |
||||||||
Loss from continuing operations-basic and diluted |
$ | (0.32 | ) | $ | (0.09 | ) | ||
Net loss attributable to common shareholders per common sharebasic and diluted |
$ | (0.32 | ) | $ | (0.09 | ) | ||
Weighted average number of basic and diluted common shares outstanding |
31,825,735 | 19,468,831 | ||||||
2
Successor | Successor | Successor | Predecessor | ||||||||||||||
Cumulative period | Cumulative period | ||||||||||||||||
from September 1, | from December 28, | ||||||||||||||||
2009 (date of | 1995 (date of | ||||||||||||||||
For the six months | For the six months | inception) to June | inception) to | ||||||||||||||
ended June 30, 2011 | ended June 30, 2010 | 30, 2011 | August 31, 2009 | ||||||||||||||
Revenue |
|||||||||||||||||
Product sales |
$ | 461,910 | $ | 473,132 | $ | 1,728,220 | $ | 4,818,994 | |||||||||
License fees |
| | | 260,000 | |||||||||||||
Total revenue |
461,910 | 473,132 | 1,728,220 | 5,078,994 | |||||||||||||
Cost of sales |
223,611 | 276,435 | 908,307 | 2,279,335 | |||||||||||||
Gross profit |
238,299 | 196,697 | 819,913 | 2,799,659 | |||||||||||||
Selling, general and administrative expenses |
5,619,727 | 3,841,243 | 14,843,664 | 84,805,520 | |||||||||||||
Research and development expenses |
3,218,194 | 2,666,351 | 10,527,709 | 56,269,869 | |||||||||||||
Operating loss |
(8,599,622 | ) | (6,310,897 | ) | (24,551,460 | ) | (138,275,730 | ) | |||||||||
Other income (expense) |
|||||||||||||||||
Interest income |
| | 1 | 6,989,539 | |||||||||||||
Reorganization items, net |
| 3,303 | (69,174 | ) | 73,538,984 | ||||||||||||
Other income |
| | 244,479 | 316,338 | |||||||||||||
Warrant (expense) income |
(9,806,882 | ) | 295,186 | (10,591,198 | ) | | |||||||||||
Derivative revaluation expense |
(8,182,138 | ) | | (8,182,138 | ) | | |||||||||||
Interest expense |
(557,069 | ) | (400,998 | ) | (1,849,442 | ) | (18,790,218 | ) | |||||||||
Loss from continuing operations before income
taxes |
(27,145,711 | ) | (6,413,406 | ) | (44,998,932 | ) | (76,221,087 | ) | |||||||||
Income tax benefit |
| | | 190,754 | |||||||||||||
Loss from continuing operations |
(27,145,711 | ) | (6,413,406 | ) | (44,998,932 | ) | (76,030,333 | ) | |||||||||
Loss from discontinued operations |
(18,199 | ) | (29,546 | ) | (79,117 | ) | (41,091,311 | ) | |||||||||
Net loss |
(27,163,910 | ) | (6,442,952 | ) | (45,078,049 | ) | (117,121,644 | ) | |||||||||
Deemed dividend associated with beneficial
conversion |
| | | (11,423,824 | ) | ||||||||||||
Preferred stock dividends |
| | | (1,589,861 | ) | ||||||||||||
Net (income)/loss attributable to
noncontrolling interest |
(46,552 | ) | (16,388 | ) | (113,943 | ) | 1,799,523 | ||||||||||
Net loss attributable to Fibrocell Science,
Inc. common shareholders |
$ | (27,210,462 | ) | $ | (6,459,340 | ) | $ | (45,191,992 | ) | $ | (128,335,806 | ) | |||||
Per share information: |
|||||||||||||||||
Loss from continuing operations-basic and
diluted |
$ | (1.02 | ) | $ | (0.37 | ) | $ | (2.24 | ) | $ | (4.30 | ) | |||||
Loss from discontinued operations-basic and
diluted |
| | | (2.32 | ) | ||||||||||||
Income (loss) attributable to noncontrolling
interest |
| | (0.01 | ) | 0.10 | ||||||||||||
Deemed dividend associated with beneficial
conversion of preferred stock |
| | | (0.65 | ) | ||||||||||||
Preferred stock dividends |
| | | (0.09 | ) | ||||||||||||
Net loss attributable to common shareholders
per common sharebasic and diluted |
$ | (1.02 | ) | $ | (0.37 | ) | $ | (2.25 | ) | $ | (7.26 | ) | |||||
Weighted average number of basic and diluted
common shares outstanding |
26,557,261 | 17,648,025 | 20,097,309 | 17,678,219 | |||||||||||||
3
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income | Stage | (Deficit) | |||||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash on 12/28/95 |
| $ | | | $ | | 2,285,291 | $ | 2,285 | $ | (1,465 | ) | | $ | | $ | | $ | | $ | 820 | |||||||||||||||||||||||||||
Issuance of common stock for cash
on 11/7/96 |
| | | | 11,149 | 11 | 49,989 | | | | | 50,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for cash
on 11/29/96 |
| | | | 2,230 | 2 | 9,998 | | | | | 10,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for cash
on 12/19/96 |
| | | | 6,690 | 7 | 29,993 | | | | | 30,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for cash
on 12/26/96 |
| | | | 11,148 | 11 | 49,989 | | | | | 50,000 | ||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (270,468 | ) | (270,468 | ) | ||||||||||||||||||||||||||||||||||
Balance, 12/31/96 (Predecessor) |
| $ | | | $ | | 2,316,508 | $ | 2,316 | $ | 138,504 | | $ | | $ | | $ | (270,468 | ) | $ | (129,648 | ) | ||||||||||||||||||||||||||
Issuance of common stock for cash
on 12/27/97 |
| | | | 21,182 | 21 | 94,979 | | | | | 95,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for
services on 9/1/97 |
| | | | 11,148 | 11 | 36,249 | | | | | 36,260 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for
services on 12/28/97 |
| | | | 287,193 | 287 | 9,968 | | | | | 10,255 | ||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (52,550 | ) | (52,550 | ) | ||||||||||||||||||||||||||||||||||
Balance, 12/31/97(Predecessor) |
| $ | | | $ | | 2,636,031 | $ | 2,635 | $ | 279,700 | | $ | | $ | | $ | (323,018 | ) | $ | (40,683 | ) |
4
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income | Stage | (Deficit) | |||||||||||||||||||||||||||||||||||||
Issuance of
common stock for
cash on 8/23/98 |
| $ | | | $ | | 4,459 | $ | 4 | $ | 20,063 | | $ | | $ | | $ | | $ | 20,067 | ||||||||||||||||||||||||||||
Repurchase of
common stock on
9/29/98 |
| | | | | | | 2,400 | (50,280 | ) | | | (50,280 | ) | ||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (195,675 | ) | (195,675 | ) | ||||||||||||||||||||||||||||||||||
Balance, 12/31/98
(Predecessor) |
| $ | | | $ | | 2,640,490 | $ | 2,639 | $ | 299,763 | 2,400 | $ | (50,280 | ) | $ | | $ | (518,693 | ) | $ | (266,571 | ) | |||||||||||||||||||||||||
Issuance of
common stock for
cash on 9/10/99 |
| | | | 52,506 | 53 | 149,947 | | | | | 150,000 | ||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (1,306,778 | ) | (1,306,778 | ) | ||||||||||||||||||||||||||||||||||
Balance, 12/31/99
(Predecessor) |
| $ | | | $ | | 2,692,996 | $ | 2,692 | $ | 449,710 | 2,400 | $ | (50,280 | ) | $ | | $ | (1,825,471 | ) | $ | (1,423,349 | ) | |||||||||||||||||||||||||
Issuance of
common stock for
cash on 1/18/00 |
| | | | 53,583 | 54 | 1,869 | | | | | 1,923 | ||||||||||||||||||||||||||||||||||||
Issuance of
common stock for
services on
3/1/00 |
| | | | 68,698 | 69 | (44 | ) | | | | | 25 | |||||||||||||||||||||||||||||||||||
Issuance of
common stock for
services on
4/4/00 |
| | | | 27,768 | 28 | (18 | ) | | | | | 10 | |||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (807,076 | ) | (807,076 | ) | ||||||||||||||||||||||||||||||||||
Balance, 12/31/00
(Predecessor) |
| $ | | | $ | | 2,843,045 | $ | 2,843 | $ | 451,517 | 2,400 | $ | (50,280 | ) | $ | | $ | (2,632,547 | ) | $ | (2,228,467 | ) |
5
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income | Stage | (Deficit) | |||||||||||||||||||||||||||||||||||||
Issuance of
common stock for
services on 7/1/01 |
| $ | | | $ | | 156,960 | $ | 157 | $ | (101 | ) | | $ | | $ | | $ | | $ | 56 | |||||||||||||||||||||||||||
Issuance of common
stock for services
on 7/1/01 |
| | | | 125,000 | 125 | (80 | ) | | | | | 45 | |||||||||||||||||||||||||||||||||||
Issuance of common
stock for
capitalization of
accrued salaries on
8/10/01 |
| | | | 70,000 | 70 | 328,055 | | | | | 328,125 | ||||||||||||||||||||||||||||||||||||
Issuance of common
stock for
conversion of
convertible debt on
8/10/01 |
| | | | 1,750,000 | 1,750 | 1,609,596 | | | | | 1,611,346 | ||||||||||||||||||||||||||||||||||||
Issuance of common
stock for
conversion of
convertible
shareholder notes
payable on 8/10/01 |
| | | | 208,972 | 209 | 135,458 | | | | | 135,667 | ||||||||||||||||||||||||||||||||||||
Issuance of common
stock for bridge
financing on
8/10/01 |
| | | | 300,000 | 300 | (192 | ) | | | | | 108 | |||||||||||||||||||||||||||||||||||
Retirement of
treasury stock on
8/10/01 |
| | | | | | (50,280 | ) | (2,400 | ) | 50,280 | | | | ||||||||||||||||||||||||||||||||||
Issuance of common
stock for net
assets of Gemini on
8/10/01 |
| | | | 3,942,400 | 3,942 | (3,942 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Issuance of common
stock for net
assets of AFH on
8/10/01 |
| | | | 3,899,547 | 3,900 | (3,900 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Issuance of common
stock for cash on
8/10/01 |
| | | | 1,346,669 | 1,347 | 2,018,653 | | | | | 2,020,000 | ||||||||||||||||||||||||||||||||||||
Transaction and
fund raising
expenses on 8/10/01 |
| | | | | | (48,547 | ) | | | | | (48,547 | ) | ||||||||||||||||||||||||||||||||||
Issuance of common
stock for services
on 8/10/01 |
| | | | 60,000 | 60 | | | | | | 60 | ||||||||||||||||||||||||||||||||||||
Issuance of common
stock for cash on
8/28/01 |
| | | | 26,667 | 27 | 39,973 | | | | | 40,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common
stock for services
on 9/30/01 |
| | | | 314,370 | 314 | 471,241 | | | | | 471,555 |
6
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income | Stage | (Deficit) | |||||||||||||||||||||||||||||||||||||
Uncompensated contribution of
services3rd quarter |
| $ | | | $ | | | $ | | $ | 55,556 | | $ | | $ | | $ | | $ | 55,556 | ||||||||||||||||||||||||||||
Issuance of common stock for
services on 11/1/01 |
| | | | 145,933 | 146 | 218,754 | | | | | 218,900 | ||||||||||||||||||||||||||||||||||||
Uncompensated contribution of
services4th quarter |
| | | | | | 100,000 | | | | | 100,000 | ||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (1,652,004 | ) | (1,652,004 | ) | ||||||||||||||||||||||||||||||||||
Balance, 12/31/01 (Predecessor) |
| $ | | | $ | | 15,189,563 | $ | 15,190 | $ | 5,321,761 | | $ | | $ | | $ | (4,284,551 | ) | $ | 1,052,400 | |||||||||||||||||||||||||||
Uncompensated contribution of
services1st quarter |
| | | | | | 100,000 | | | | | 100,000 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock for
cash on 4/26/02 |
905,000 | 905 | | | | | 2,817,331 | | | | | 2,818,236 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock for
cash on 5/16/02 |
890,250 | 890 | | | | | 2,772,239 | | | | | 2,773,129 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock for
cash on 5/31/02 |
795,000 | 795 | | | | | 2,473,380 | | | | | 2,474,175 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock for
cash on 6/28/02 |
229,642 | 230 | | | | | 712,991 | | | | | 713,221 | ||||||||||||||||||||||||||||||||||||
Uncompensated contribution of
services2nd quarter |
| | | | | | 100,000 | | | | | 100,000 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock for
cash on 7/15/02 |
75,108 | 75 | | | | | 233,886 | | | | | 233,961 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for cash
on 8/1/02 |
| | | | 38,400 | 38 | 57,562 | | | | | 57,600 | ||||||||||||||||||||||||||||||||||||
Issuance of warrants for services
on 9/06/02 |
| | | | | | 103,388 | | | | | 103,388 | ||||||||||||||||||||||||||||||||||||
Uncompensated contribution of
services3rd quarter |
| | | | | | 100,000 | | | | | 100,000 | ||||||||||||||||||||||||||||||||||||
Uncompensated contribution of
services4th quarter |
| | | | | | 100,000 | | | | | 100,000 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock for
dividends |
143,507 | 144 | | | | | 502,517 | | | | (502,661 | ) | | |||||||||||||||||||||||||||||||||||
Deemed dividend associated with
beneficial conversion of preferred
stock |
| | | | | | 10,178,944 | | | | (10,178,944 | ) | | |||||||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (5,433,055 | ) | (5,433,055 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive income,
foreign currency translation
adjustment |
| | | | | | | | | 13,875 | | 13,875 | ||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | (5,419,180 | ) | |||||||||||||||||||||||||||||||||||
Balance, 12/31/02 (Predecessor) |
3,038,507 | $ | 3,039 | | $ | | 15,227,963 | $ | 15,228 | $ | 25,573,999 | | $ | | $ | 13,875 | $ | (20,399,211 | ) | $ | 5,206,930 |
7
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income | Stage | (Deficit) | |||||||||||||||||||||||||||||||||||||
Issuance of common stock for cash
on 1/7/03 |
| $ | | | $ | | 61,600 | $ | 62 | $ | 92,338 | | $ | | $ | | $ | | $ | 92,400 | ||||||||||||||||||||||||||||
Issuance of common stock for
patent pending acquisition on
3/31/03 |
| | | | 100,000 | 100 | 539,900 | | | | | 540,000 | ||||||||||||||||||||||||||||||||||||
Cancellation of common stock on
3/31/03 |
| | | | (79,382 | ) | (79 | ) | (119,380 | ) | | | | | (119,459 | ) | ||||||||||||||||||||||||||||||||
Uncompensated contribution of
services1st quarter |
| | | | | | 100,000 | | | | | 100,000 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock for
cash on 5/9/03 |
| | 110,250 | 110 | | | 2,773,218 | | | | | 2,773,328 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock for
cash on 5/16/03 |
| | 45,500 | 46 | | | 1,145,704 | | | | | 1,145,750 | ||||||||||||||||||||||||||||||||||||
Conversion of preferred stock into
common stock2nd qtr |
(70,954 | ) | (72 | ) | | | 147,062 | 147 | 40,626 | | | | | 40,701 | ||||||||||||||||||||||||||||||||||
Conversion of warrants into common
stock2nd qtr |
| | | | 114,598 | 114 | (114 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Uncompensated contribution of
services2nd quarter |
| | | | | | 100,000 | | | | | 100,000 | ||||||||||||||||||||||||||||||||||||
Issuance of preferred stock
dividends |
| | | | | | | | | | (1,087,200 | ) | (1,087,200 | ) | ||||||||||||||||||||||||||||||||||
Deemed dividend associated with
beneficial conversion of preferred
stock |
| | | | | | 1,244,880 | | | | (1,244,880 | ) | | |||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash3rd qtr |
| | | | 202,500 | 202 | 309,798 | | | | | 310,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for cash
on 8/27/03 |
| | | | 3,359,331 | 3,359 | 18,452,202 | | | | | 18,455,561 | ||||||||||||||||||||||||||||||||||||
Conversion of preferred stock into
common stock3rd qtr |
(2,967,553 | ) | (2,967 | ) | (155,750 | ) | (156 | ) | 7,188,793 | 7,189 | (82,875 | ) | | | | | (78,809 | ) | ||||||||||||||||||||||||||||||
Conversion of warrants into common
stock3rd qtr |
| | | | 212,834 | 213 | (213 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Compensation expense on warrants
issued to non-employees |
| | | | | | 412,812 | | | | | 412,812 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash4th qtr |
| | | | 136,500 | 137 | 279,363 | | | | | 279,500 | ||||||||||||||||||||||||||||||||||||
Conversion of warrants into common
stock4th qtr |
| | | | 393 | | | | | | | | ||||||||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (11,268,294 | ) | (11,268,294 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive income,
foreign currency translation
adjustment |
| | | | | | | | | 360,505 | | 360,505 | ||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | (10,907,789 | ) | |||||||||||||||||||||||||||||||||||
Balance, 12/31/03 (Predecessor) |
| $ | | | $ | | 26,672,192 | $ | 26,672 | $ | 50,862,258 | | $ | | $ | 374,380 | $ | (33,999,585 | ) | $ | 17,263,725 |
8
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||
Number | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Equity | |||||||||||||||||||||||||||||||||||||||||
of Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income | Stage | (Deficit) | |||||||||||||||||||||||||||||||||||||
Conversion of warrants into common
stock1st qtr |
| $ | | | $ | | 78,526 | $ | 79 | $ | (79 | ) | | $ | | $ | | $ | | $ | | |||||||||||||||||||||||||||
Issuance of common stock for cash in
connection with exercise of stock
options1st qtr |
| | | | 15,000 | 15 | 94,985 | | | | | 95,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for cash in
connection with exercise of
warrants1st qtr |
| | | | 4,000 | 4 | 7,716 | | | | | 7,720 | ||||||||||||||||||||||||||||||||||||
Compensation expense on options and warrants
issued to non-employees and
directors1st qtr |
| | | | | | 1,410,498 | | | | | 1,410,498 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with
exercise of warrants2nd qtr |
| | | | 51,828 | 52 | (52 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash2nd qtr |
| | | | 7,200,000 | 7,200 | 56,810,234 | | | | | 56,817,434 | ||||||||||||||||||||||||||||||||||||
Compensation expense on options and warrants
issued to non-employees and
directors2nd qtr |
| | | | | | 143,462 | | | | | 143,462 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with
exercise of warrants3rd qtr |
| | | | 7,431 | 7 | (7 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Issuance of common stock for cash in
connection with exercise of stock
options3rd qtr |
| | | | 110,000 | 110 | 189,890 | | | | | 190,000 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock for cash in
connection with exercise of
warrants3rd qtr |
| | | | 28,270 | 28 | 59,667 | | | | | 59,695 | ||||||||||||||||||||||||||||||||||||
Compensation expense on options and warrants
issued to non-employees and
directors3rd qtr |
| | | | | | 229,133 | | | | | 229,133 | ||||||||||||||||||||||||||||||||||||
Issuance of common stock in connection with
exercise of warrants4th qtr |
| | | | 27,652 | 28 | (28 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Compensation expense on options and warrants
issued to non-employees, employees, and
directors4th qtr |
| | | | | | 127,497 | | | | | 127,497 | ||||||||||||||||||||||||||||||||||||
Purchase of treasury stock4th qtr |
| | | | | | | 4,000,000 | (25,974,000 | ) | | | (25,974,000 | ) | ||||||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (21,474,469 | ) | (21,474,469 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive income, foreign currency
translation adjustment |
| | | | | | | | | 79,725 | | 79,725 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net unrealized
gain on available-for-sale investments |
| | | | | | | | | 10,005 | | 10,005 | ||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | (21,384,739 | ) | |||||||||||||||||||||||||||||||||||
Balance, 12/31/04 (Predecessor) |
| $ | | | $ | | 34,194,899 | $ | 34,195 | $ | 109,935,174 | 4,000,000 | $ | (25,974,000 | ) | $ | 464,110 | $ | (55,474,054 | ) | $ | 28,985,425 |
9
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Equity | |||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income (Loss) | Stage | (Deficit) | |||||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash in connection with
exercise of stock
options1st qtr |
| $ | | | $ | | 25,000 | $ | 25 | $ | 74,975 | | $ | | $ | | $ | | $ | 75,000 | ||||||||||||||||||||||||||||
Compensation expense on
options and warrants issued to
non-employees1st
qtr |
| | | | | | 33,565 | | | | | 33,565 | ||||||||||||||||||||||||||||||||||||
Conversion of warrants into
common stock2nd
qtr |
| | | | 27,785 | 28 | (28 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Compensation expense on
options and warrants issued to
non-employees2nd
qtr |
| | | | | | (61,762 | ) | | | | | (61,762 | ) | ||||||||||||||||||||||||||||||||||
Compensation expense on
options and warrants issued to
non-employees3rd
qtr |
| | | | | | (137,187 | ) | | | | | (137,187 | ) | ||||||||||||||||||||||||||||||||||
Conversion of warrants into
common stock3rd
qtr |
| | | | 12,605 | 12 | (12 | ) | | | | | | |||||||||||||||||||||||||||||||||||
Compensation expense on
options and warrants issued to
non-employees4th
qtr |
| | | | | | 18,844 | | | | | 18,844 | ||||||||||||||||||||||||||||||||||||
Compensation expense on
acceleration of
options4th qtr |
| | | | | | 14,950 | | | | | 14,950 | ||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock award issued
to employee4th
qtr |
| | | | | | 606 | | | | | 606 | ||||||||||||||||||||||||||||||||||||
Conversion of predecessor
company shares |
| | | | 94 | | | | | | | | ||||||||||||||||||||||||||||||||||||
Comprehensive loss: |
||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (35,777,584 | ) | (35,777,584 | ) | ||||||||||||||||||||||||||||||||||
Other comprehensive loss,
foreign currency translation
adjustment |
| | | | | | | | | (1,372,600 | ) | | (1,372,600 | ) | ||||||||||||||||||||||||||||||||||
Foreign exchange gain on
substantial liquidation of
foreign entity |
| | | | | | | | | 133,851 | | 133,851 | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net
unrealized gain on available-for-sale investments |
| | | | | | | | | (10,005 | ) | | (10,005 | ) | ||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | (37,026,338 | ) | |||||||||||||||||||||||||||||||||||
Balance, 12/31/05 (Predecessor) |
| $ | | | $ | | 34,260,383 | $ | 34,260 | $ | 109,879,125 | 4,000,000 | $ | (25,974,000 | ) | $ | (784,644 | ) | $ | (91,251,638 | ) | $ | (8,096,897 | ) |
10
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Noncontrolling | Equity | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income | Stage | Interest | (Deficit) | ||||||||||||||||||||||||||||||||||||||||
Compensation expense on options
and warrants issued to
non-employees1st
qtr |
| $ | | | $ | | | $ | | $ | 42,810 | | $ | | $ | | $ | | $ | | $ | 42,810 | ||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to employees and
directors1st qtr |
| | | | | | 46,336 | | | | | | 46,336 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock issued to
employees1st qtr |
| | | | 128,750 | 129 | 23,368 | | | | | | 23,497 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on options
and warrants issued to
non-employees2nd
qtr |
| | | | | | 96,177 | | | | | | 96,177 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to employees and
directors2nd qtr |
| | | | | | 407,012 | | | | | | 407,012 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock to
employees2nd qtr |
| | | | | | 4,210 | | | | | | 4,210 | |||||||||||||||||||||||||||||||||||||||
Cancellation of unvested
restricted stock
2nd qtr |
| | | | (97,400 | ) | (97 | ) | 97 | | | | | | | |||||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash in connection with
exercise of stock
options2nd qtr |
| | | | 10,000 | 10 | 16,490 | | | | | | 16,500 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on options
and warrants issued to
non-employees3rd
qtr |
| | | | | | 25,627 | | | | | | 25,627 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to employees and
directors3rd qtr |
| | | | | | 389,458 | | | | | | 389,458 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock to
employees3rd qtr |
| | | | | | 3,605 | | | | | | 3,605 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash in connection with
exercise of stock
options3rd qtr |
| | | | 76,000 | 76 | 156,824 | | | | | | 156,900 | |||||||||||||||||||||||||||||||||||||||
Acquisition of Agera |
| | | | | | | | | | | 2,182,505 | 2,182,505 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on options
and warrants issued to
non-employees4th
qtr |
| | | | | | 34,772 | | | | | | 34,772 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to employees and
directors4th qtr |
| | | | | | 390,547 | | | | | | 390,547 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock to
employees4th qtr |
| | | | | | 88 | | | | | | 88 | |||||||||||||||||||||||||||||||||||||||
Cancellation of unvested
restricted stock
award4th qtr |
| | | | (15,002 | ) | (15 | ) | 15 | | | | | | | |||||||||||||||||||||||||||||||||||||
Comprehensive loss: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (35,821,406 | ) | (78,132 | ) | (35,899,538 | ) | ||||||||||||||||||||||||||||||||||||
Other comprehensive gain,
foreign currency translation
adjustment |
| | | | | | | | | 657,182 | | | 657,182 | |||||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | | (35,242,356 | ) | ||||||||||||||||||||||||||||||||||||||
Balance 12/31/06 (Predecessor) |
| $ | | | $ | | 34,362,731 | $ | 34,363 | $ | 111,516,561 | 4,000,000 | $ | (25,974,000 | ) | $ | (127,462 | ) | $ | (127,073,044 | ) | $ | 2,104,373 | $ | (39,519,209 | ) |
11
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Noncontrolling | Equity | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income (Loss) | Stage | Interest | (Deficit) | ||||||||||||||||||||||||||||||||||||||||
Compensation expense on options
and warrants issued to
non-employees1st
qtr |
| $ | | | $ | | | $ | | $ | 39,742 | | $ | | $ | | $ | | $ | | $ | 39,742 | ||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to employees and
directors1st qtr |
| | | | | | 448,067 | | | | | | 448,067 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock issued to
employees1st qtr |
| | | | | | 88 | | | | | | 88 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash in connection with
exercise of stock
options1st qtr |
| | | | 15,000 | 15 | 23,085 | | | | | | 23,100 | |||||||||||||||||||||||||||||||||||||||
Expense in connection with
modification of employee stock
options 1st qtr |
| | | | | | 1,178,483 | | | | | | 1,178,483 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on options
and warrants issued to
non-employees2nd
qtr |
| | | | | | 39,981 | | | | | | 39,981 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to employees and
directors2nd qtr |
| | | | | | 462,363 | | | | | | 462,363 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock issued to
employees2nd qtr |
| | | | | | 88 | | | | | | 88 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to employees and
directors3rd qtr |
| | | | | | 478,795 | | | | | | 478,795 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock issued to
employees3rd qtr |
| | | | | | 88 | | | | | | 88 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock upon
exercise of
warrants3rd qtr |
| | | | 492,613 | 493 | 893,811 | | | | | | 894,304 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash, net of offering
costs3rd qtr |
| | | | 6,767,647 | 6,767 | 13,745,400 | | | | | | 13,752,167 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock for
cash in connection with
exercise of stock
options3rd qtr |
| | | | 1,666 | 2 | 3,164 | | | | | | 3,166 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to employees and
directors4thqtr |
| | | | | | 378,827 | | | | | | 378,827 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on
restricted stock issued to
employees4thqtr |
| | | | | | 88 | | | | | | 88 | |||||||||||||||||||||||||||||||||||||||
Comprehensive loss: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (35,573,114 | ) | (246,347 | ) | (35,819,461 | ) | ||||||||||||||||||||||||||||||||||||
Other comprehensive gain,
foreign currency translation
adjustment |
| | | | | | | | | 846,388 | | | 846,388 | |||||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | | (34,973,073 | ) | ||||||||||||||||||||||||||||||||||||||
Balance 12/31/07 (Predecessor) |
| $ | | | $ | | 41,639,657 | $ | 41,640 | $ | 129,208,631 | 4,000,000 | $ | (25,974,000 | ) | $ | 718,926 | $ | (162,646,158 | ) | $ | 1,858,026 | $ | (56,792,935 | ) |
12
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Shareholders | |||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Noncontrolling | Equity | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income (Loss) | Stage | Interest | (Deficit) | ||||||||||||||||||||||||||||||||||||||||
Compensation expense on vested options related to
non-employees1st qtr |
| $ | | | $ | | | $ | | $ | 44,849 | | $ | | $ | | $ | | $ | | $ | 44,849 | ||||||||||||||||||||||||||||||
Compensation expense on option awards issued to
employees and directors1st qtr |
| | | | | | 151,305 | | | | | | 151,305 | |||||||||||||||||||||||||||||||||||||||
Expense in connection with modification of employee
stock options 1st qtr |
| | | | | | 1,262,815 | | | | | | 1,262,815 | |||||||||||||||||||||||||||||||||||||||
Retirement of restricted stock |
| | | | (165 | ) | (1 | ) | | | | | | | (1 | ) | ||||||||||||||||||||||||||||||||||||
Compensation expense on vested options related to
non-employees2nd qtr |
| | | | | | 62,697 | | | | | | 62,697 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to employees and directors2nd qtr |
| | | | | | 193,754 | | | | | | 193,754 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on vested options
related to non-employees3rd qtr |
| | | | | | 166,687 | | | | | | 166,687 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to employees and directors3rd qtr |
| | | | | | 171,012 | | | | | | 171,012 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on vested options
related to non-employees4th qtr |
| | | | | | (86,719 | ) | | | | | | (86,719 | ) | |||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to employees and directors4th qtr |
| | | | | | 166,196 | | | | | | 166,196 | |||||||||||||||||||||||||||||||||||||||
Comprehensive loss: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (31,411,179 | ) | (1,680,676 | ) | (33,091,855 | ) | ||||||||||||||||||||||||||||||||||||
Reclassification of foreign exchange gain on
substantial liquidation of foreign entities |
| | | | | | | | | (2,152,569 | ) | | | (2,152,569 | ) | |||||||||||||||||||||||||||||||||||||
Other comprehensive gain, foreign currency translation
adjustment |
| | | | | | | | | 1,433,643 | | | 1,433,643 | |||||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | | (33,810,781 | ) | ||||||||||||||||||||||||||||||||||||||
Balance 12/31/08 (Predecessor) |
| $ | | | $ | | 41,639,492 | $ | 41,639 | $ | 131,341,227 | 4,000,000 | $ | (25,974,000 | ) | $ | | $ | (194,057,337 | ) | $ | 177,350 | $ | (88,471,121 | ) |
13
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Total | |||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Noncontrolling | Equity | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income (Loss) | Stage | Interest | (Deficit) | ||||||||||||||||||||||||||||||||||||||||
Compensation expense on vested options
related to non-employees1st
qtr |
| $ | | | $ | | | $ | | $ | 1,746 | | $ | | $ | | $ | | $ | | $ | 1,746 | ||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to employees and
directors1st qtr |
| | | | | | 138,798 | | | | | | 138,798 | |||||||||||||||||||||||||||||||||||||||
Conversion of debt into common stock
1st qtr 2009 |
| | | | 37,564 | 38 | 343,962 | | | | | | 344,000 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to employees and directors2nd
qtr |
| | | | | | 112,616 | | | | | | 112,616 | |||||||||||||||||||||||||||||||||||||||
Conversion of debt into common stock
2nd qtr 2009 |
| | | | 1,143,324 | 1,143 | 10,468,857 | | | | | | 10,470,000 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to employees and directors2
months ended 8/31/09 |
| | | | | | 35,382 | | | | | | 35,382 | |||||||||||||||||||||||||||||||||||||||
Balance of expense due to cancellation
of options issued to employees and
directors in bankruptcy2 months ended
8/31/09 |
| | | | | | 294,912 | | | | | | 294,912 | |||||||||||||||||||||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income |
| | | | | | | | | | 65,721,531 | 205,632 | 65,927,163 | |||||||||||||||||||||||||||||||||||||||
Comprehensive income |
| | | | | | | | | | | | 65,927,163 | |||||||||||||||||||||||||||||||||||||||
Balance 8/31/09 (Predecessor) |
| | | | 42,820,380 | $ | 42,820 | $ | 142,737,500 | 4,000,000 | $ | (25,974,000 | ) | $ | | $ | (128,335,806 | ) | $ | 382,982 | $ | (11,146,504 | ) | |||||||||||||||||||||||||||||
Cancellation of Predecessor common stock
and fresh start adjustments |
| | | | (42,820,380 | ) | (42,820 | ) | (150,426,331 | ) | (4,000,000 | ) | 25,974,000 | | | | (124,495,151 | ) | ||||||||||||||||||||||||||||||||||
Elimination of Predecessor accumulated
deficit and accumulated other
comprehensive loss |
| | | | | | | | | | 128,335,806 | | 128,335,806 | |||||||||||||||||||||||||||||||||||||||
Balance 9/1/09 (Predecessor) |
| | | | | | (7,688,831 | ) | | | | | 382,982 | (7,305,849 | ) | |||||||||||||||||||||||||||||||||||||
Issuance of 11.4 million shares of
common stock in connection with
emergence from Chapter 11 |
| | | | 11,400,000 | 11,400 | 5,460,600 | | | | | | 5,472,000 | |||||||||||||||||||||||||||||||||||||||
Balance 9/1/09 (Successor) |
| | | | 11,400,000 | 11,400 | (2,228,231 | ) | | | | | 382,982 | (1,833,849 | ) | |||||||||||||||||||||||||||||||||||||
Issuance of 2.7 million shares of common
stock in connection with the exit
financing |
| | | | 2,666,666 | 2,667 | 1,797,333 | | | | | | 1,800,000 | |||||||||||||||||||||||||||||||||||||||
Issuance of common stock on Oct. 28, 2009 |
| | | | 25,501 | 25 | 58,627 | | | | | | 58,652 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on shares issued to
management |
| | | | 600,000 | 600 | 167,400 | | | | | | 168,000 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to directors |
| | | | | | 326,838 | | | | | | 326,838 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to non-employees |
| | | | | | 386,380 | | | | | | 386,380 | |||||||||||||||||||||||||||||||||||||||
Comprehensive loss: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (5,049,999 | ) | 15,493 | (5,034,506 | ) | |||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | | (5,034,506 | ) | ||||||||||||||||||||||||||||||||||||||
Balance 12/31/09 (Successor) |
| $ | | | $ | | 14,692,167 | $ | 14,692 | $ | 508,347 | | $ | | $ | | $ | (5,049,999 | ) | $ | 398,475 | $ | (4,128,485 | ) |
14
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Total | |||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Noncontrolling | Equity | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income (Loss) | Stage | Interest | (Deficit) | ||||||||||||||||||||||||||||||||||||||||
Issuance of 5.1 million shares of
common stock in March 2010, net of
issuance costs of $338,100 |
| $ | | | $ | | 5,076,664 | $ | 5,077 | $ | 3,464,323 | | $ | | $ | | $ | | $ | | $ | 3,469,400 | ||||||||||||||||||||||||||||||
Warrant fair value associated with
common shares issued in March 2010 |
| | | | | | (2,890,711 | ) | | | | | | (2,890,711 | ) | |||||||||||||||||||||||||||||||||||||
Compensation expense on shares
issued to management 1Q10 |
| | | | | | 18,000 | | | | | | 18,000 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to
directors/employees-1Q10 |
| | | | | | 324,377 | | | | | | 324,377 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to
non-employees-1Q10 |
| | | | | | 18,391 | | | | | | 18,391 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on shares
issued to management 2Q10 |
| | | | | | 18,000 | | | | | | 18,000 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to
directors/employees-2Q10 |
| | | | | | 222,011 | | | | | | 222,011 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to
non-employees-2Q10 |
| | | | | | 33,206 | | | | | | 33,206 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on shares
issued to management 3Q10 |
| | | | | | 18,000 | | | | | | 18,000 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to
directors/employees-3Q10 |
| | | | | | 183,231 | | | | | | 183,231 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to
non-employees-3Q10 |
| | | | | | 7,724 | | | | | | 7,724 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on shares
issued to management 4Q10 |
| | | | | | 18,000 | | | | | | 18,000 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to
directors/employees-4Q10 |
| | | | | | 104,094 | | | | | | 104,094 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option
awards issued to
non-employees-4Q10 |
| | | | | | 27,507 | | | | | | 27,507 | |||||||||||||||||||||||||||||||||||||||
Preferred Stock Series A conversion |
| | | | 606,667 | 607 | 363,393 | | | | | | 364,000 | |||||||||||||||||||||||||||||||||||||||
Comprehensive loss: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (12,931,531 | ) | 51,898 | (12,879,633 | ) | |||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | | (12,879,633 | ) | ||||||||||||||||||||||||||||||||||||||
Balance 12/31/10 (Successor) |
| $ | | | $ | | 20,375,498 | $ | 20,376 | $ | 2,437,893 | | $ | | $ | | $ | (17,981,530 | ) | $ | 450,373 | $ | (15,072,888 | ) |
15
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Series A | Series B | Accumulated | Deficit | |||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Preferred Stock | Common Stock | Additional | Treasury Stock | Other | During | Total | |||||||||||||||||||||||||||||||||||||||||||||
Number of | Number of | Number of | Paid-In | Number of | Comprehensive | Development | Noncontrolling | Equity | ||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Capital | Shares | Amount | Income (Loss) | Stage | Interest | (Deficit) | ||||||||||||||||||||||||||||||||||||||||
Compensation expense on shares issued to
management 1Q11 |
| $ | | | $ | | | $ | | $ | 18,000 | | $ | | $ | | $ | | $ | | $ | 18,000 | ||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to directors/employees-1Q11 |
| | | | | | 995,551 | | | | | | 995,551 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to non-employees-1Q11 |
| | | | | | 38,203 | | | | | | 38,203 | |||||||||||||||||||||||||||||||||||||||
Preferred Stock warrants exercised 1Q11 |
| | | | 289,599 | 289 | 241,542 | | | | | | 241,831 | |||||||||||||||||||||||||||||||||||||||
Preferred Stock Series A and B converted
1Q11 |
| | | | 3,894,000 | 3,894 | 323,919 | | | | | | 327,813 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on shares issued to
management 2Q11 |
| | | | | | 18,000 | | | | | | 18,000 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to directors/employees-2Q11 |
| | | | | | 1,082,503 | | | | | | 1,082,503 | |||||||||||||||||||||||||||||||||||||||
Compensation expense on option awards
issued to non-employees-1Q11 |
| | | | | | 250,473 | | | | | | 250,473 | |||||||||||||||||||||||||||||||||||||||
Preferred Stock warrants exercised
2Q11 |
| | | | 7,230,103 | 7,230 | 6,065,727 | | | | | | 6,072,957 | |||||||||||||||||||||||||||||||||||||||
Preferred Stock Series A, B and D
converted 2Q11 |
| | | | 11,554,000 | 11,554 | 4,546,768 | | | | | | 4,558,322 | |||||||||||||||||||||||||||||||||||||||
Issuance of 1.9 million shares of common
stock in June 2011, net of issuance costs
of $137,440 |
| | | | 1,908,889 | 1,909 | 1,578,651 | | | | | | 1,580,560 | |||||||||||||||||||||||||||||||||||||||
Stock option exercise |
| | | | 246,141 | 246 | (246 | ) | | | | | | | ||||||||||||||||||||||||||||||||||||||
Comprehensive loss: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss |
| | | | | | | | | | (27,210,462 | ) | 46,552 | (27,163,910 | ) | |||||||||||||||||||||||||||||||||||||
Comprehensive loss |
| | | | | | | | | | | | (27,163,910 | ) | ||||||||||||||||||||||||||||||||||||||
Balance 6/30/11 (Successor) |
| $ | | | $ | | 45,498,230 | $ | 45,498 | $ | 17,596,984 | | $ | | $ | | $ | (45,191,992 | ) | $ | 496,925 | $ | (27,052,585 | ) | ||||||||||||||||||||||||||||
16
Successor | Successor | Successor | Predecessor | ||||||||||||||
Cumulative | Cumulative | ||||||||||||||||
period from | period from | ||||||||||||||||
September 1, | December 31, | ||||||||||||||||
For the six | For the six | 2009 (date of | 1995 (date of | ||||||||||||||
months ended | months ended | inception) to | inception) to | ||||||||||||||
June 30, 2011 | June 30, 2010 | June 30, 2011 | August 31, 2009 | ||||||||||||||
Cash flows from operating activities: |
|||||||||||||||||
Net loss |
$ | (27,210,462 | ) | $ | (6,459,340 | ) | $ | (45,191,992 | ) | $ | (115,322,121 | ) | |||||
Adjustments to reconcile net loss to net cash used in
operating activities: |
|||||||||||||||||
Reorganization items, net |
| | 72,477 | (74,648,976 | ) | ||||||||||||
Expense related to equity awards and issuance of stock |
2,402,730 | 633,985 | 4,276,489 | 10,608,999 | |||||||||||||
Warrant expense (income) |
9,806,882 | (295,186 | ) | 10,591,198 | | ||||||||||||
Derivative revaluation expense |
8,182,138 | | 8,182,138 | | |||||||||||||
Uncompensated contribution of services |
| | | 755,556 | |||||||||||||
Depreciation and amortization |
12,590 | 3,140 | 20,675 | 9,091,990 | |||||||||||||
Provision for doubtful accounts |
(12,280 | ) | (15,791 | ) | (66,717 | ) | 337,810 | ||||||||||
Provision for excessive and/or obsolete inventory |
5,178 | (13,857 | ) | (43,524 | ) | 259,427 | |||||||||||
Amortization of debt issue costs |
| | | 4,107,067 | |||||||||||||
Amortization of debt discounts on investments |
| | | (508,983 | ) | ||||||||||||
Loss on disposal or impairment of property and equipment |
| | | 17,668,477 | |||||||||||||
Foreign exchange loss (gain) on substantial liquidation of
foreign entity |
(4,988 | ) | 4,333 | (12,674 | ) | (2,256,408 | ) | ||||||||||
Net (loss) income attributable to noncontrolling interest |
46,552 | 16,388 | 113,943 | (1,799,523 | ) | ||||||||||||
Change in operating assets and liabilities, excluding
effects of acquisition: |
|||||||||||||||||
Decrease (increase) in accounts receivable |
3,626 | 6,512 | 74,856 | (91,496 | ) | ||||||||||||
Decrease (increase) in other receivables |
485 | (96 | ) | 1,192 | 218,978 | ||||||||||||
Decrease (increase) in inventory |
(12,931 | ) | 6,111 | 45,451 | (455,282 | ) | |||||||||||
Decrease in prepaid expenses |
201,058 | 198,762 | (1,048 | ) | 34,341 | ||||||||||||
Decrease in other assets |
| | 4,120 | 71,000 | |||||||||||||
Increase (decrease) in accounts payable |
(325,914 | ) | 535,134 | 632,810 | 57,648 | ||||||||||||
Increase in accrued expenses, liabilities subject to
compromise and other liabilities |
301,757 | 1,004,250 | 1,132,103 | 3,311,552 | |||||||||||||
Decrease in deferred revenue |
| | | (50,096 | ) | ||||||||||||
Net cash used in operating activities |
(6,603,579 | ) | (4,375,655 | ) | (20,168,503 | ) | (148,610,040 | ) | |||||||||
Cash flows from investing activities: |
|||||||||||||||||
Acquisition of Agera, net of cash acquired |
| | | (2,016,520 | ) | ||||||||||||
Purchase of property and equipment |
(700,513 | ) | (29,675 | ) | (730,187 | ) | (25,515,170 | ) | |||||||||
Proceeds from the sale of property and equipment, net of
selling costs |
| | | 6,542,434 | |||||||||||||
Purchase of investments |
| | | (152,998,313 | ) | ||||||||||||
Proceeds from sales and maturities of investments |
| | | 153,507,000 | |||||||||||||
Net cash used in investing activities |
(700,513 | ) | (29,675 | ) | (730,187 | ) | (20,480,569 | ) | |||||||||
Cash flows from financing activities: |
|||||||||||||||||
Proceeds from convertible debt |
| | | 91,450,000 | |||||||||||||
Offering costs associated with the issuance of convertible debt |
| | | (3,746,193 | ) | ||||||||||||
Proceeds from notes payable to shareholders, net |
| | | 135,667 | |||||||||||||
Proceeds from the issuance of redeemable preferred stock
series A, net |
| | 2,870,000 | 12,931,800 | |||||||||||||
Proceeds from the issuance of redeemable preferred stock
series B, net |
193,200 | | 4,212,770 | | |||||||||||||
Proceeds from the issuance of redeemable preferred stock
series D, net |
5,642,780 | | 7,152,180 | | |||||||||||||
Proceeds from the exercise of warrants |
1,973,364 | | 1,973,364 | | |||||||||||||
Proceeds from the issuance of common stock, net |
1,580,560 | 3,469,400 | 6,849,960 | 93,753,857 | |||||||||||||
Costs associated with secured loan and debtor-in-possession
loan |
| | | (360,872 | ) | ||||||||||||
Proceeds from secured loan |
| | | 500,471 | |||||||||||||
Proceeds from debtor-in-possession loan |
| | | 2,750,000 | |||||||||||||
Payments on insurance loan |
(48,655 | ) | (40,861 | ) | (134,229 | ) | (79,319 | ) | |||||||||
Cash dividends paid on preferred stock |
(304,384 | ) | (91,000 | ) | (444,134 | ) | (1,087,200 | ) | |||||||||
Cash paid for fractional shares of preferred stock |
| | | (38,108 | ) | ||||||||||||
Merger and acquisition expenses |
| | | (48,547 | ) | ||||||||||||
Repurchase of common stock |
| | | (26,024,280 | ) | ||||||||||||
Net cash provided by financing activities |
9,036,865 | 3,337,539 | 22,479,911 | 170,137,276 | |||||||||||||
Effect of exchange rate changes on cash balances |
5,870 | (4,662 | ) | 14,884 | (36,391 | ) | |||||||||||
Net increase (decrease) in cash and cash equivalents |
1,738,643 | (1,072,453 | ) | 1,596,105 | 1,010,276 | ||||||||||||
Cash and cash equivalents, beginning of period |
867,738 | 1,362,488 | 1,010,276 | | |||||||||||||
Cash and cash equivalents, end of period |
$ | 2,606,381 | $ | 290,035 | $ | 2,606,381 | $ | 1,010,276 | |||||||||
17
Successor | Successor | Successor | Predecessor | ||||||||||||||
Cumulative | Cumulative | ||||||||||||||||
period from | period from | ||||||||||||||||
September 1, | December 31, | ||||||||||||||||
For the six | For the six | 2009 (date of | 1995 (date of | ||||||||||||||
months ended | months ended | inception) to | inception) to | ||||||||||||||
June 30, 2011 | June 30, 2010 | June 30, 2011 | August 31, 2009 | ||||||||||||||
Supplemental disclosures of cash flow information: |
|||||||||||||||||
Predecessor cash paid for interest |
$ | | $ | | $ | | $ | 12,715,283 | |||||||||
Successor cash paid for dividends |
304,384 | 91,000 | 444,134 | | |||||||||||||
Non-cash investing and financing activities: |
|||||||||||||||||
Predecessor deemed dividend associated with beneficial
conversion of preferred stock |
$ | | $ | | $ | | $ | 11,423,824 | |||||||||
Predecessor preferred stock dividend |
| | | 1,589,861 | |||||||||||||
Successor accrued preferred stock dividend |
366,135 | 97,011 | 366,135 | | |||||||||||||
Predecessor uncompensated contribution of services |
| | | 755,556 | |||||||||||||
Predecessor common stock issued for intangible assets |
| | | 540,000 | |||||||||||||
Predecessor common stock issued in connection with conversion
of debt |
| | | 10,814,000 | |||||||||||||
Predecessor equipment acquired through capital lease |
| | | 167,154 | |||||||||||||
Successor/Predecessor financing of insurance premiums |
| | 178,582 | 87,623 | |||||||||||||
Successor issuance of notes payable |
| | | 6,000,060 | |||||||||||||
Successor common stock issued in connection with reorganization |
| | | 5,472,000 | |||||||||||||
Successor intangible assets |
| | | 6,340,656 | |||||||||||||
Successor deferred tax liability in connection with fresh-start |
| | | 2,500,000 | |||||||||||||
Elimination of Predecessor common stock and fresh-start
adjustment |
| | | 14,780,320 | |||||||||||||
Successor accrued warrant liability |
4,994,307 | 2,890,711 | 12,381,509 | | |||||||||||||
Successor conversion of preferred stock Series A balance into
common stock |
814,082 | | 814,082 | | |||||||||||||
Successor conversion of preferred stock derivative balance
into common stock |
4,072,053 | | 4,436,053 | | |||||||||||||
Successor exercise of warrants-cashless |
4,341,424 | | 4,341,424 | | |||||||||||||
Successor accrued derivative liability |
372,495 | | 2,492,855 | | |||||||||||||
18
19
| Level 1: Unadjusted quoted prices in active markets that are accessible at the
measurement date for identical, unrestricted assets or liabilities; |
| Level 2: Quoted prices in markets that are not active or inputs which are observable,
either directly or indirectly, for substantially the full term of the asset or liability. |
| Level 3: Prices or valuation techniques that require inputs that are both significant
to the fair value measurement and unobservable (i.e., supported by little or no market
activity). |
20
Fair value measurement using | ||||||||||||||||
Significant | Significant | |||||||||||||||
Quoted prices in | other | unobservable | ||||||||||||||
active markets | observable | inputs | ||||||||||||||
(Level 1) | inputs (Level 2) | (Level 3) | Total | |||||||||||||
Balance at June 30, 2011 |
||||||||||||||||
Cash and cash equivalents |
$ | 2,606,381 | $ | | $ | | $ | 2,606,381 | ||||||||
Liabilities |
||||||||||||||||
Warrant liability |
$ | | $ | | $ | 18,631,283 | $ | 18,631,283 | ||||||||
Derivative liability |
| | 6,602,940 | 6,602,940 | ||||||||||||
Total |
$ | | $ | | $ | 25,234,223 | $ | 25,234,223 | ||||||||
Fair value measurement using | ||||||||||||||||
Significant | Significant | |||||||||||||||
Quoted prices in | other | unobservable | ||||||||||||||
active markets | observable | inputs | ||||||||||||||
(Level 1) | inputs (Level 2) | (Level 3) | Total | |||||||||||||
Balance at December 31, 2010 |
||||||||||||||||
Cash and cash equivalents |
$ | 867,738 | $ | | $ | | $ | 867,738 | ||||||||
Liabilities |
||||||||||||||||
Warrant liability |
$ | | $ | | $ | 8,171,518 | $ | 8,171,518 | ||||||||
Derivative liability |
| | 2,120,360 | 2,120,360 | ||||||||||||
Total |
$ | | $ | | $ | 10,291,878 | $ | 10,291,878 | ||||||||
Warrant | ||||
Liability | ||||
Balance at December 31, 2010 |
$ | 8,171,518 | ||
Issuance of additional warrants |
4,994,307 | |||
Exercise of warrants |
(4,341,424 | ) | ||
Change in fair value of warrant liability |
9,806,882 | |||
Balance at June 30, 2011 |
$ | 18,631,283 | ||
Derivative | ||||
Liability | ||||
Balance at December 31, 2010 |
$ | 2,120,360 | ||
Issuance of additional preferred stock and other |
372,495 | |||
Conversion of preferred stock |
(4,072,053 | ) | ||
Change in fair value of derivative liability |
8,182,138 | |||
Balance at June 30, 2011 |
$ | 6,602,940 | ||
21
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
Accrued professional fees |
$ | 257,778 | $ | 413,384 | ||||
Accrued compensation |
5,575 | 7,076 | ||||||
Dividend on preferred stock payable |
253,169 | 191,417 | ||||||
Accrued other |
106,216 | 177,605 | ||||||
Accrued expenses |
$ | 622,738 | $ | 789,482 | ||||
Preferred Stock Series A |
950 | |||
Preferred Stock Series B |
487 | |||
Preferred Stock Series D |
6,144 | |||
Total |
7,581 | |||
22
Number of shares of | Number of warrants | |||||||
Date of Financing | Series D Preferred(1) | issued(2) | ||||||
January 21, 2011 |
1,234 | 2,665,440 | ||||||
January 28, 2011 |
1,414 | 3,054,240 | ||||||
February 9, 2011 |
3,436 | 7,421,760 | ||||||
March 1, 2011 |
50 | 108,000 | ||||||
6,134 | 13,249,440 | |||||||
(1) | Series D Preferred at a stated par value of $1,000. |
|
(2) | Warrants to purchase shares of Common Stock at an exercise price of $0.50 per share
issued to certain accredited investors and placement agents. |
June 30, 2011 | December 31, 2010 | |||||||
Expected life (years) |
1.5 years | 1.6 years | ||||||
Interest rate |
0.4 | % | 1.3 | % | ||||
Dividend yield |
| | ||||||
Volatility |
62 | % | 63 | % |
23
June 30, 2011 | December 31, 2010 | |||||||
Expected life (years) |
4.2 years | 4.7 years | ||||||
Interest rate |
1.4 | % | 1.8 | % | ||||
Dividend yield |
| | ||||||
Volatility |
62 | % | 63 | % |
Warrant liability | ||||||||||||
Number of | Balance as of June | |||||||||||
Warrants | Expiration Dates | 30, 2011 | ||||||||||
Warrants and
placement warrants
issued in Series A
Preferred Stock
offering |
3,256,492 | Oct. 2014 | $ | 1,665,711 | ||||||||
Warrants and
placement warrants
issued in March
2010 offering |
4,917,602 | Mar. 2015 | 2,599,340 | |||||||||
Warrants and
placement warrants
issued in Series B
Preferred Stock
offering |
9,650,650 | Jul.-Nov. 2015 | 5,239,641 | |||||||||
Warrants and
placement warrants
issued in Series D
Preferred Stock
offering |
16,302,640 | Dec. 2015-Mar. 2016 | 9,126,591 | |||||||||
Total |
34,127,384 | $ | 18,631,283 | |||||||||
Three months ended | ||||||||
June 30, 2011 | June 30, 2010 | |||||||
Stock option compensation expense for employees
and directors |
$ | 1,082,503 | $ | 222,011 | ||||
Restricted stock expense |
18,000 | 18,000 | ||||||
Equity awards for nonemployees issued for services |
250,473 | 33,206 | ||||||
Total stock-based compensation expense |
$ | 1,350,976 | $ | 273,217 | ||||
Six months ended | ||||||||
June 30, 2011 | June 30, 2010 | |||||||
Stock option compensation expense for employees
and directors |
$ | 2,078,054 | $ | 546,388 | ||||
Restricted stock expense |
36,000 | 36,000 | ||||||
Equity awards for nonemployees issued for services |
288,676 | 51,597 | ||||||
Total stock-based compensation expense |
$ | 2,402,730 | $ | 633,985 | ||||
24
Weighted- | ||||||||||||||||
average | ||||||||||||||||
Weighted- | remaining | |||||||||||||||
average | contractual | Aggregate | ||||||||||||||
Number of | exercise | term (in | intrinsic | |||||||||||||
shares | price | years) | value | |||||||||||||
Outstanding at December 31, 2010 |
5,677,000 | $ | 0.86 | 7.46 | $ | | ||||||||||
Granted |
9,058,000 | $ | 0.72 | |||||||||||||
Exercised |
(600,000 | ) | $ | 0.75 | ||||||||||||
Forfeited |
| $ | | |||||||||||||
Outstanding at June 30, 2011 |
14,135,000 | $ | 0.78 | 8.59 | $ | 1,926,940 | ||||||||||
Exercisable at June 30, 2011 |
8,146,553 | $ | 0.79 | 8.08 | $ | 1,048,873 | ||||||||||
June 30, 2011 | June 30, 2010 | |||||||
Expected life (years) |
5.3 years | 3.7 years | ||||||
Interest rate |
2.3 | % | 1.6 | % | ||||
Dividend yield |
| | ||||||
Volatility |
62 | % | 64 | % |
25
Segment | ||||||||||||
Fibrocell Therapy | Agera | Consolidated | ||||||||||
Three Months Ended June 30, 2011 |
||||||||||||
Total operating revenue |
$ | | $ | 253,274 | $ | 253,274 | ||||||
Depreciation and amortization expense |
10,117 | | 10,117 | |||||||||
Segment income (loss) from continuing operations |
$ | (10,133,362 | ) | $ | 38,249 | $ | (10,095,113 | ) | ||||
Segment | ||||||||||||
Fibrocell Therapy | Agera | Consolidated | ||||||||||
Six Months Ended June 30, 2011 |
||||||||||||
Total operating revenue |
$ | | $ | 461,910 | $ | 461,910 | ||||||
Depreciation and amortization expense |
12,590 | | 12,590 | |||||||||
Segment income (loss) from continuing operations |
$ | (27,205,372 | ) | $ | 59,661 | $ | (27,145,711 | ) | ||||
Supplemental information as of June 30, 2011 |
||||||||||||
Total assets |
$ | 9,830,330 | $ | 689,282 | $ | 10,519,612 | ||||||
Property and equipment, net |
709,512 | | 709,512 | |||||||||
Intangible assets |
6,340,656 | | 6,340,656 |
Segment | ||||||||||||
Fibrocell Therapy | Agera | Consolidated | ||||||||||
Three Months Ended June 30, 2010 |
||||||||||||
Total operating revenue |
$ | | $ | 264,062 | $ | 264,062 | ||||||
Depreciation and amortization expense |
2,288 | | 2,288 | |||||||||
Segment income (loss) from
continuing operations |
$ | (1,676,370 | ) | $ | (21,393 | ) | $ | (1,697,763 | ) | |||
Segment | ||||||||||||
Fibrocell Therapy | Agera | Consolidated | ||||||||||
Six Months Ended June 30, 2010 |
||||||||||||
Total operating revenue |
$ | | $ | 473,132 | $ | 473,132 | ||||||
Depreciation and amortization expense |
3,140 | | 3,140 | |||||||||
Segment income (loss) from
continuing operations |
$ | (6,402,918 | ) | $ | (10,488 | ) | $ | (6,413,406 | ) | |||
Supplemental information as of June
30, 2010 |
||||||||||||
Total assets |
6,858,898 | 641,244 | 7,500,142 | |||||||||
Property and equipment, net |
26,535 | | 26,535 | |||||||||
Intangible assets |
6,340,656 | | 6,340,656 |
26
Revenue | ||||||||
Three months ended | Three months ended | |||||||
June 30, 2011 | June 30, 2010 | |||||||
United States |
$ | 47,350 | $ | 61,654 | ||||
United Kingdom |
117,408 | 149,123 | ||||||
Other |
88,516 | 53,285 | ||||||
Total |
$ | 253,274 | $ | 264,062 | ||||
Revenue | ||||||||
Six months ended | Six months ended | |||||||
June 30, 2011 | June 30, 2010 | |||||||
United States |
$ | 95,473 | $ | 121,848 | ||||
United Kingdom |
265,572 | 290,790 | ||||||
Other |
100,865 | 60,494 | ||||||
Total |
$ | 461,910 | $ | 473,132 | ||||
Property, Plant & Equipment | ||||||||
June 30, 2011 | June 30, 2010 | |||||||
United States |
$ | 709,512 | $ | 21,589 | ||||
Total |
$ | 709,512 | $ | 21,589 | ||||
27
28
Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations |
| our ability to finance our business and continue in operations; |
| our ability to decrease our manufacturing costs for laViv® and other product
candidates through the improvement of our manufacturing process, and our ability to validate
any such improvements with the relevant regulatory agencies; |
| our ability to commercialized and sell our recently approved FDA product, laViv®; |
| our ability to scale up our manufacturing facility over time; |
| our ability to meet requisite regulations or receive regulatory approvals in the
United States, Europe, Asia and the Americas, and our ability to retain any regulatory
approvals that we may obtain; and the absence of adverse regulatory developments in the
United States, Europe, Asia and the Americas or any other country where we plan to conduct
commercial operations; |
| whether our clinical human trials relating to the use of autologous cellular therapy
applications, and such other indications as we may identify and pursue can be conducted
within the timeframe that we expect, whether such trials will yield positive results, or
whether additional applications for the commercialization of autologous cellular therapy can
be identified by us and advanced into human clinical trials; |
| our ability to develop autologous cellular therapies that have specific applications
in cosmetic dermatology, and our ability to explore (and possibly develop) applications for
periodontal disease, reconstructive dentistry, treatment of restrictive scars and burns and
other health-related markets; |
| our ability to reduce our need for fetal bovine calf serum by improved use of less
expensive media combinations and different media alternatives; |
| continued availability of supplies at satisfactory prices; |
| new entrance of competitive products or further penetration of existing products in
our markets; |
| the effect on us from adverse publicity related to our products or the company
itself; |
| any adverse claims relating to our intellectual property; |
| the adoption of new, or changes in, accounting principles; |
| our issuance of certain rights to our shareholders that may have anti-takeover
effects; |
29
| our dependence on physicians to correctly follow our established protocols for the
safe administration of our Fibrocell Therapy; and |
| other risks referenced from time to time elsewhere in our filings with the SEC. |
Three months ended | Increase | |||||||||||||||
June 30, | (Decrease) | |||||||||||||||
2011 | 2010 | $ | % | |||||||||||||
(in thousands) | ||||||||||||||||
Total revenue |
$ | 253 | $ | 264 | $ | (11 | ) | (4 | %) | |||||||
Cost of sales |
126 | 176 | (50 | ) | (28 | %) | ||||||||||
Gross profit |
$ | 127 | $ | 88 | $ | 39 | 44 | % | ||||||||
30
Three months ended | Increase | |||||||||||||||
June 30, | (Decrease) | |||||||||||||||
2011 | 2010 | $000s | % | |||||||||||||
(in thousands) | ||||||||||||||||
Compensation and related expense |
$ | 1,729 | $ | 771 | $ | 958 | 124 | % | ||||||||
External services consulting |
160 | 215 | (55 | ) | (26 | %) | ||||||||||
Facilities and related expense and other |
1,376 | 835 | 541 | 65 | % | |||||||||||
Total selling, general and administrative expense |
$ | 3,265 | $ | 1,821 | $ | 1,444 | 79 | % | ||||||||
Three months ended | Increase | |||||||||||||||
June 30, | (Decrease) | |||||||||||||||
2011 | 2010 | $000s | % | |||||||||||||
(in thousands) | ||||||||||||||||
Compensation and related expense |
$ | 471 | $ | 407 | $ | 64 | 16 | % | ||||||||
External services consulting |
421 | 616 | (195 | ) | (32 | %) | ||||||||||
Lab costs and related expense |
479 | 227 | 252 | 111 | % | |||||||||||
Facilities and related expense |
231 | 224 | 7 | 3 | % | |||||||||||
Total research and development expense |
$ | 1,602 | $ | 1,474 | $ | 128 | 9 | % | ||||||||
31
Six months ended | Increase | |||||||||||||||
June 30, | (Decrease) | |||||||||||||||
2011 | 2010 | $000s | % | |||||||||||||
(in thousands) | ||||||||||||||||
Total revenue |
$ | 462 | $ | 473 | $ | (11 | ) | (2 | %) | |||||||
Cost of sales |
224 | 276 | (52 | ) | (19 | %) | ||||||||||
Gross profit |
$ | 238 | $ | 197 | $ | 41 | 21 | % | ||||||||
Six months ended | Increase | |||||||||||||||
June 30, | (Decrease) | |||||||||||||||
2011 | 2010 | $000s | % | |||||||||||||
(in thousands) | ||||||||||||||||
Compensation and related expense |
$ | 2,993 | $ | 1,722 | $ | 1,271 | 74 | % | ||||||||
External services consulting |
396 | 452 | (56 | ) | (12 | %) | ||||||||||
Facilities and related expense and other |
2,231 | 1,667 | 564 | 34 | % | |||||||||||
Total selling, general and administrative expense |
$ | 5,620 | $ | 3,841 | $ | 1,779 | 46 | % | ||||||||
32
Six months ended | Increase | |||||||||||||||
June 30, | (Decrease) | |||||||||||||||
2011 | 2010 | $000s | % | |||||||||||||
(in thousands) | ||||||||||||||||
Compensation and related expense |
$ | 995 | $ | 770 | $ | 225 | 29 | % | ||||||||
External services consulting |
1,042 | 1,013 | 29 | 3 | % | |||||||||||
Lab costs and related expense |
756 | 451 | 305 | 68 | % | |||||||||||
Facilities and related expense |
425 | 432 | (7 | ) | (2 | %) | ||||||||||
Total research and development expense |
$ | 3,218 | $ | 2,666 | $ | 552 | 21 | % | ||||||||
33
Six Months Ended June 30, | ||||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Statement of Cash Flows Data: |
||||||||
Total cash provided by (used in): |
||||||||
Operating activities |
$ | (6,604 | ) | $ | (4,376 | ) | ||
Investing activities |
(701 | ) | (30 | ) | ||||
Financing activities |
9,037 | 3,338 |
34
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. | Controls and Procedures. |
35
Item 1. | Legal Proceedings. |
Item 1A. | Risk Factors. |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults Upon Senior Securities. |
Item 4. | (Removed and Reserved) |
Item 5. | Other Information. |
(a) | Exhibits |
EXHIBIT NO. | IDENTIFICATION OF EXHIBIT | |||
31.1 | Certification pursuant to Rule 13a-14(a) and 15d-14(a),
required under Section 302 of the Sarbanes-Oxley Act of
2002 |
|||
31.2 | Certification pursuant to Rule 13a-14(a) and 15d-14(a),
required under Section 302 of the Sarbanes-Oxley Act of
2002 |
|||
32.1 | Certification pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 |
|||
32.2 | Certification pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 |
|||
101.INS | XBRL Instance Document. |
|||
101.SCH | XBRL Taxonomy Extension Schema Document. |
|||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
|||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
|||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
|||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
36