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| | | | | F-1 | | | |
| | | | | F-19 | | | |
| | | | | A-1 | | | |
| | | | | B-1 | | |
| | |
Fiscal Year Ended December 31,
|
| |||||||||||||||||||||
| | |
2018E
|
| |
2019E
|
| |
2020E
|
| |
2021E
|
| ||||||||||||
Total revenue
|
| | | $ | 25.4 | | | | | $ | 35.3 | | | | | $ | 46.4 | | | | | $ | 58.6 | | |
Cost of Goods Sold
|
| | | | 6.3 | | | | | | 8.8 | | | | | | 11.6 | | | | | | 14.6 | | |
Gross profit
|
| | | $ | 19.0 | | | | | $ | 26.5 | | | | | $ | 34.8 | | | | | $ | 43.9 | | |
Selling, General & Administrative
|
| | | | 24.7 | | | | | | 29.6 | | | | | | 34.4 | | | | | | 37.6 | | |
Stock Based Compensation
|
| | | | 2.0 | | | | | | 2.0 | | | | | | 2.0 | | | | | | 2.0 | | |
Royalties
|
| | | | 1.6 | | | | | | 2.4 | | | | | | 3.4 | | | | | | 4.4 | | |
Depreciation & Amortization
|
| | | | 4.7 | | | | | | 4.7 | | | | | | 4.7 | | | | | | 4.7 | | |
EBIT | | | | ($ | 14.0) | | | | | ($ | 12.2) | | | | | ($ | 9.7) | | | | | ($ | 4.7) | | |
( + ) Depreciation and Amortization
|
| | | | 4.7 | | | | | | 4.7 | | | | | | 4.7 | | | | | | 4.7 | | |
( - ) Capital Expenditures
|
| | | | (0.2) | | | | | | (0.2) | | | | | | (0.2) | | | | | | (0.2) | | |
( + ) Change in Working Capital
|
| | | | (1.7) | | | | | | 0.3 | | | | | | (0.4) | | | | | | (0.9) | | |
Unlevered Free Cash Flows
|
| | | ($ | 11.2) | | | | | ($ | 7.4) | | | | | ($ | 5.6) | | | | | ($ | 1.1) | | |
| | |
EVs (In Millions)
|
| |
CY 2017
Revenues (In Millions) |
| |
CY 2018
Revenues (In Millions) |
| |
EV/Revenue
Multiples (CY 2017) |
| |
EV/Revenue
Multiples (CY 2018) |
| |||||||||||||||
Avita Medical Limited
|
| | | $ | 54 | | | | | $ | 8 | | | |
Projected
numbers not publicly available. |
| | | | 6.59x | | | |
Not
Available |
| ||||||
Convatec Group Plc
|
| | | $ | 6,731 | | | | | $ | 1,744 | | | | | $ | 1,836 | | | | | | 3.86x | | | | | | 3.67x | | |
Derma Sciences, Inc.
|
| | | $ | 100 | | | | | $ | 108 | | | | | $ | 120 | | | | | | 0.9x | | | | | | 0.8x | | |
MediWound Ltd.
|
| | | $ | 87 | | | | | $ | 3 | | | | | $ | 8 | | | |
Not
Meaningful(1) |
| | | | 10.94x | | | |||
MiMedx Group, Inc.
|
| | | $ | 1,420 | | | | | $ | 322 | | | | | $ | 386 | | | | | | 4.42x | | | | | | 3.68x | | |
| | |
Average EV/NTM Revenue Multiples
|
| |||||||||
| | |
Alliqua
|
| |
Derma Sciences
|
| ||||||
Three Years
|
| | | | 2.06x | | | | | | 1.30x | | |
Two Years
|
| | | | 1.05x | | | | | | 0.98x | | |
One Year
|
| | | | 1.11x | | | | | | 0.73x | | |
Six Months
|
| | | | 1.05x | | | | | | 0.90x | | |
Three Months
|
| | | | 1.04x | | | | | | 0.90x | | |
Date
|
| |
Target
|
| |
Buyer
|
| |
EV (US
Dollars In Millions) |
| |
Upfront
Payment (US Dollars In Millions) |
| |
Milestone
Payment (US Dollars In Millions) |
| |
LTM
Revenue (US Dollars In Millions) |
| |
EV/LTM
Revenue Multiples(1) |
| |||||||||||||||
01/10/2017
|
| |
Derma Sciences
|
| | Integra | | | | | 222.6 | | | | | | 222.6 | | | | | | 0 | | | | | | 88.5 | | | | | | 2.52x(2) | | |
12/20/2016
|
| | LifeCell | | | Allergen | | | | | 2,900.0 | | | | | | 2,900.0 | | | | | | 0 | | | | | | 450.0 | | | | | | 6.44x | | |
07/28/2016
|
| | BioD | | | Derma Sciences | | | | | 77.8 | | | | | | 21.3 | | | | | | 56.5 | | | | | | 22.0 | | | | | | 3.54x | | |
05/24/2016
|
| | EuroMed | | | Scapa | | | | | 42.0 | | | | | | 35.0 | | | | | | 7.0 | | | | | | 18.0 | | | | | | 2.33x | | |
01/10/2016
|
| | Stability | | | MiMedix | | | | | 36.7 | | | | | | 11.1 | | | | | | 25.6 | | | | | | 17.2 | | | | | | 2.14x | | |
06/28/2015
|
| |
TEI Biosciences
|
| | Integra | | | | | 312.0 | | | | | | 312.0 | | | | | | 0 | | | | | | 63.5 | | | | | | 4.91x | | |
02/02/2015
|
| |
Celleration, Inc.
|
| | Alliqua | | | | | 30.4 | | | | | | 30.4 | | | | | | 0 | | | | | | 8.7 | | | | | | 3.49x | | |
10/23/2014
|
| | Transplant Technologies of Texas |
| | Globus Medical | | | | | 51.1 | | | | | | 36.1 | | | | | | 15.0 | | | | | | 12.0 | | | | | | 4.26x | | |
05/06/2014
|
| | Choice | | | Alliqua | | | | | 9.0 | | | | | | 4.0 | | | | | | 5.0 | | | | | | 1.8 | | | | | | 5.00x | | |
01/17/2014
|
| | Dermagraft | | | Organogenesis | | | | | 300.0 | | | | | | 0 | | | | | | 300.0 | | | | | | 89.8 | | | | | | 3.34x | | |
07/30/2013
|
| | Systagenix | | | Kinetic Concepts | | | | | 478.7 | | | | | | 478.7 | | | | | | 0 | | | | | | 196.0 | | | | | | 2.44x | | |
06/09/2013
|
| |
Pioneer Surgical
|
| | RTI Biologics | | | | | 126.4 | | | | | | 126.4 | | | | | | 0 | | | | | | 88.2 | | | | | | 1.43x | | |
11/28/2012
|
| | Healthpoint Biotherapeutics |
| | Smith & Nephew |
| | | | 782.0 | | | | | | 782.0 | | | | | | 0 | | | | | | 190.0 | | | | | | 4.12x | | |
06/11/2012
|
| | BSN Medical | | | EQT Partners | | | | | 2,258.0 | | | | | | 2,258.0 | | | | | | 0 | | | | | | 878.1 | | | | | | 2.57x | | |
05/03/2012
|
| | Kensey Nash | | |
Koninklijke DSM
|
| | | | 410.5 | | | | | | 410.5 | | | | | | 0 | | | | | | 83.9 | | | | | | 4.89x | | |
03/29/2012
|
| | MedEfficiency | | | Derma Sciences | | | | | 14.5 | | | | | | 14.5 | | | | | | 0 | | | | | | 5.3 | | | | | | 2.74x | | |
02/09/2012
|
| | Aldagen | | | Cytomedix | | | | | 49.1 | | | | | | 20.6 | | | | | | 28.4 | | | | | | 1.5 | | | |
Not
Meaningful |
|
Date
|
| |
Target
|
| |
Buyer
|
| |
EV (US
Dollars In Millions) |
| |
Upfront
Payment (US Dollars In Millions) |
| |
Milestone
Payment (US Dollars In Millions) |
| |
LTM
Revenue (US Dollars In Millions) |
| |
EV/LTM
Revenue Multiples(1) |
| |||||||||||||||
12/13/2011
|
| | Synovis | | | Baxter | | | | | 268.9 | | | | | | 268.9 | | | | | | 0 | | | | | | 82.4 | | | | | | 3.27x | | |
05/17/2011
|
| | Advanced BioHealing, Inc. |
| | Shire plc | | | | | 750.0 | | | | | | 750.0 | | | | | | 0 | | | | | | 161.4 | | | | | | 4.65x | | |
05/16/2011
|
| | Orthovita | | | Stryker | | | | | 315.0 | | | | | | 315.0 | | | | | | 0 | | | | | | 94.4 | | | | | | 3.34x | | |
Minimum | | | | | 9.0 | | | | | | -0 | | | | | | -0 | | | | | | 1.5 | | | | | | 1.43x | | | ||||||
Mean | | | | | 471.7 | | | | | | 449.9 | | | | | | 21.9 | | | | | | 127.6 | | | | | | 3.55x | | | ||||||
Median | | | | | 245.7 | | | | | | 174.5 | | | |
Not
meaningful due to the limited number of data points |
| | | | 83.1 | | | | | | 3.34x | | | |||||||||
Maximum | | | | | 2,900.0 | | | | | | 2,900.0 | | | | | | 300.0 | | | | | | 878.1 | | | | | | 6.44x | | |
Name
|
| |
Number of
Shares of Common Stock (#) |
| |
Price per
Share ($)(1) |
| |
Total Value
of Shares ($) |
| |||||||||
David I. Johnson
|
| | | | 110,000 | | | | | | 1.87 | | | | | | 205,700 | | |
Brian Posner
|
| | | | 20,000 | | | | | | 1.87 | | | | | | 37,400 | | |
Bradford Barton
|
| | | | 20,000 | | | | | | 1.87 | | | | | | 37,400 | | |
Pellegrino Pionati
|
| | | | 23,000 | | | | | | 1.87 | | | | | | 43,010 | | |
Joseph Leone
|
| | | | — | | | | | | | | | | | | | | |
Gary Restani
|
| | | | — | | | | | | | | | | | | | | |
Jeffrey Sklar
|
| | | | — | | | | | | | | | | | | | | |
Mark Wagner
|
| | | | — | | | | | | | | | | | | | | |
Winston Kung
|
| | | | — | | | | | | | | | | | | | | |
Jerome Zeldis
|
| | | | — | | | | | | | | | | | | | | |
TOTAL
|
| | | | 173,000 | | | | | | | | | | | | 323,510 | | |
Name
|
| |
Cash
($)(2)(3) |
| |
Equity
($)(4) |
| |
Perquisites/
Benefits ($)(5) |
| |
Total
($) |
| ||||||||||||
Named Executive Officer Intended to be Retained After Closing and for Which Severance May Not Be Payable | | | | | | | | | | | | | | | | | | | | | | | | | |
David I. Johnson President, Chief Executive Officer and Director |
| | | | 1,400,000 | | | | | | 205,700 | | | | | | 36,078 | | | | | | 1,641,778 | | |
Named Executive Officers Not Intended to be Retained After Closing and for Which Severance May Be Payable |
| | | | | | | | | | | | | | | | | | | | | | | | |
Brian Posner Chief Financial Officer, Treasurer and Secretary |
| | | | 249,600 | | | | | | 37,400 | | | | | | 20,547 | | | | | | 307,547 | | |
Bradford Barton Chief Operating Officer |
| | | | 249,600 | | | | | | 37,400 | | | | | | 15,685 | | | | | | 302,685 | | |
Pellegrino Pionati Chief Strategy and Marketing Officer |
| | | | 249,600 | | | | | | 43,010 | | | | | | 20,432 | | | | | | 313,042 | | |
| |
Alliqua BioMedical, Inc.
As Reported |
| |
Pro Forma
Adjustments |
| |
Alliqua BioMedical, Inc.
As Adjusted |
| ||||||||||
ASSETS: | | | | | |||||||||||||||
Current Assets: | | | | | |||||||||||||||
Cash and cash equivalents
|
| | | $ | 2,181 | | | | | $ | 26,000(a) | | | | | $ | 15,445 | | |
| | | | | | | | | | | (12,736)(b) | | | | |||||
Accounts receivable, net
|
| | | | 3,243 | | | | | | | | | | | | 3,243 | | |
Inventory, net
|
| | | | 1,551 | | | | | | (1,457)(a) | | | | | | 94 | | |
Prepaid expenses and other current assets
|
| | | | 185 | | | | | | (128)(a) | | | | | | 57 | | |
Current assets of discontinued operations
|
| | | | 317 | | | | | | | | | | | | 317 | | |
Total current assets
|
| | | | 7,477 | | | | | | 11,679 | | | | | | 19,156 | | |
Improvements and equipment, net
|
| | | | 1,563 | | | | | | (1,047)(a) | | | | | | 516 | | |
Intangible assets, net
|
| | | | 22,069 | | | | | | (22,069)(a) | | | | | | — | | |
Goodwill, net
|
| | | | 1,659 | | | | | | (1,659)(a) | | | | | | — | | |
Other assets
|
| | | | 173 | | | | | | | | | | | | 173 | | |
Total assets
|
| | | $ | 32,941 | | | | | | | | | | | $ | 19,845 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | |||||||||||||||
Current Liabilities: | | | | | |||||||||||||||
Accounts payable
|
| | | $ | 1,641 | | | | | | | | | | | $ | 1,641 | | |
Accrued expenses and other current liabilities
|
| | | | 4,270 | | | | | | (359)(b) | | | | | | 3,911 | | |
Senior secured term loan, net
|
| | | | 10,929 | | | | | | (10,929)(b) | | | | | | — | | |
Warrant liability
|
| | | | 130 | | | | | | | | | | | | 130 | | |
Total current liabilities
|
| | | | 16,970 | | | | | | | | | | | | 5,682 | | |
Other long-term liabilities
|
| | | | 304 | | | | | | | | | | | | 304 | | |
Total liabilities
|
| | | | 17,274 | | | | | | | | | | | | 5,986 | | |
Commitments and Contingencies | | | | | |||||||||||||||
Stockholders’ Equity | | | | | |||||||||||||||
Preferred Stock, par value $0.001 per share, 1,000,000 shares authorized, no shares issued and outstanding
|
| | | | — | | | | | | | | | | | | — | | |
Common Stock, par value $0.001 per share, 95,000,000 shares authorized; 4,986,034 and 2,966,904 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively
|
| | | | 5 | | | | | | | | | | | | 5 | | |
Additional paid-in capital
|
| | | | 165,672 | | | | | | | | | | | | 165,672 | | |
Accumulated deficit
|
| | | | (150,010) | | | | | | (360)(a) | | | | | | (151,818) | | |
| | | | | | | | | | | (1,448)(b) | | | | | | | | |
Total stockholders’ equity
|
| | | | 15,667 | | | | | | | | | | | | 13,859 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 32,941 | | | | | | | | | | | $ | 19,845 | | |
|
| | |
Year ended December 31, 2017
|
| |
Year ended December 31, 2016
|
| ||||||||||||||||||||||||||||||
| | |
Alliqua
BioMedical, Inc. As Reported |
| |
Pro Forma
Adjustments |
| |
Alliqua
BioMedical, Inc. As Adjusted |
| |
Alliqua
BioMedical, Inc. As Reported |
| |
Pro Forma
Adjustments |
| |
Alliqua
BioMedical, Inc. As Adjusted |
| ||||||||||||||||||
Revenue, net of returns, allowances and discounts
|
| | | $ | 19,565 | | | | | $ | (17,546)(c) | | | | | $ | 2,019 | | | | | $ | 16,294 | | | | | $ | (14,069)(c) | | | | | $ | 2,225 | | |
Cost of revenues
|
| | | | 6,763 | | | | | | (4,538)(c) | | | | | | 2,225 | | | | | | 6,051 | | | | | | (3,524)(c) | | | | | | 2,527 | | |
Gross profit (loss)
|
| | | | 12,802 | | | | | | | | | | | | (206) | | | | | | 10,243 | | | | | | | | | | | | (302) | | |
Operating expenses | | | | | | | | ||||||||||||||||||||||||||||||
Selling, general and administrative
|
| | | | 28,090 | | | | | | (19,868)(c) | | | | | | 8,222 | | | | | | 35,325 | | | | | | (24,215)(c) | | | | | | 11,110 | | |
Royalties
|
| | | | 820 | | | | | | (818)(c) | | | | | | 2 | | | | | | 1,093 | | | | | | (493)(c) | | | | | | 600 | | |
Research and product development
|
| | | | 121 | | | | | | (121)(c) | | | | | | — | | | | | | 859 | | | | | | (859)(c) | | | | | | — | | |
Milestone expense to licensor
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | (1,000)(c) | | | | | | — | | |
Acquisition-related
|
| | | | (365) | | | | | | | | | | | | (365) | | | | | | 2,959 | | | | | | | | | | | | 2,959 | | |
Change in fair value of contingent consideration liability
|
| | | | 35 | | | | | | | | | | | | 35 | | | | | | (10,065) | | | | | | 9,524(c) | | | | | | (541) | | |
Impairment charges
|
| | | | 10,300 | | | | | | (10,300)(c) | | | | | | — | | | | | | 10,895 | | | | | | (10,895)(c) | | | | | | — | | |
Total operating expenses
|
| | | | 39,001 | | | | | | | | | | | | 7,894 | | | | | | 42,066 | | | | | | | | | | | | 14,128 | | |
Loss from operations
|
| | | | (26,199) | | | | | | | | | | | | (8,100) | | | | | | (31,823) | | | | | | | | | | | | (14,430) | | |
Other (expense) income | | | | | | | | ||||||||||||||||||||||||||||||
Interest expense
|
| | | | (2,282) | | | | | | 2,282(d) | | | | | | — | | | | | | (2,541) | | | | | | 2,541(d) | | | | | | — | | |
Change in fair value of warrant
liability |
| | | | 692 | | | | | | | | | | | | 692 | | | | | | 841 | | | | | | | | | | | | 841 | | |
Warrant modification expense
|
| | | | (803) | | | | | | 803(f) | | | | | | — | | | | | | — | | | | | | | | | | | | — | | |
Loss on early extinguishment of debt, net
|
| | | | (214) | | | | | | 214(e) | | | | | | — | | | | | | (373) | | | | | | 373(e) | | | | | | — | | |
Other income
|
| | | | 206 | | | | | | | | | | | | 206 | | | | | | 142 | | | | | | | | | | | | 142 | | |
Total other expense
|
| | | | (2,401) | | | | | | | | | | | | 898 | | | | | | (1,931) | | | | | | | | | | | | 983 | | |
Loss from continuing operations before tax
|
| | | | (28,600) | | | | | | | | | | | | (7,202) | | | | | | (33,754) | | | | | | | | | | | | (13,447) | | |
Income tax benefit
|
| | | | 743 | | | | | | (743)(g) | | | | | | — | | | | | | (715) | | | | | | 715(g) | | | | | | — | | |
Loss from continuing operations
|
| | | | (27,857) | | | | | | | | | | | | (7,202) | | | | | | (34,469) | | | | | | | | | | | | (13,447) | | |
Discontinued operations: | | | | | | | | ||||||||||||||||||||||||||||||
Income from discontinued operations, net of tax of $0 for the years ended December 31, 2017 and 2016
|
| | | | 454 | | | | | | | | | | | | 454 | | | | | | 1,485 | | | | | | | | | | | | 1,485 | | |
Gain on sale of assets, net of tax of $0 for the years ended December 31, 2017 and 2016
|
| | | | 1,696 | | | | | | | | | | | | 1,696 | | | | | | 3,311 | | | | | | | | | | | | 3,311 | | |
Income from discontinued operations, net of tax
|
| | | | 2,150 | | | | | | | | | | | | 2,150 | | | | | | 4,796 | | | | | | | | | | | | 4,796 | | |
Net loss
|
| | | $ | (25,707) | | | | | | | | | | | $ | (12,254) | | | | | $ | (29,673) | | | | | | | | | | | $ | (22,098) | | |
Net loss per basic and diluted common share:
|
| | | | | | | ||||||||||||||||||||||||||||||
Loss from continuing operations
|
| | | $ | (6.49) | | | | | | | | | | | $ | (1.68) | | | | | $ | (12.33) | | | | | | | | | | | $ | (4.81) | | |
Income from discontinued operations
|
| | | | 0.11 | | | | | | | | | | | | 0.11 | | | | | | 0.53 | | | | | | | | | | | | 0.53 | | |
Gain on sale of assets
|
| | | | 0.40 | | | | | | | | | | | | 0.40 | | | | | | 1.18 | | | | | | | | | | | | 1.18 | | |
Total from discontinued operations
|
| | | | 0.51 | | | | | | | | | | | | 0.51 | | | | | | 1.71 | | | | | | | | | | | | 1.71 | | |
Net loss per basic and diluted common share
|
| | | $ | (5.98) | | | | | | | | | | | $ | (1.17) | | | | | $ | (10.62) | | | | | | | | | | | $ | (3.10) | | |
Weighted average shares used in
computing net loss per basic and diluted common share |
| | | | 4,291,600 | | | | | | | | | | | | 4,291,600 | | | | | | 2,796,563 | | | | | | | | | | | | 2,796,563 | | |
|
| | |
Amount in
(in thousands) |
| |||
Gross consideration from the sale of Purchased Assets
|
| | | $ | 29,000 | | |
Estimated closing and transaction costs
|
| | | | (3,000) | | |
Expected net proceeds from sale of assets
|
| | | | 26,000 | | |
Book value of Purchased Assets: | | | |||||
Inventory, net
|
| | | | 1,457 | | |
Prepaid expenses and other current assets
|
| | | | 128 | | |
Improvements and equipment, net
|
| | | | 1,047 | | |
Intangible assets, net
|
| | | | 22,069 | | |
Goodwill,net
|
| | | | 1,659 | | |
Total book value of purchased assets
|
| | | | 26,360 | | |
Expected net loss on sale of assets before tax
|
| | | | (360) | | |
Estimated income tax expense
|
| | | | — | | |
Expected loss on sale of assets after income taxes
|
| | | $ | (360)* | | |
|
| | |
Amount in
(in thousands) |
| |||
Payment of outstanding principal
|
| | | $ | 12,135 | | |
Payment of accrued interest
|
| | | | 116 | | |
Payment of accrued exit fee
|
| | | | 243 | | |
Payment of prepayment fee
|
| | | | 242 | | |
Total cash payments for debt repayment
|
| | | | 12,736 | | |
Write-off of unamortized debt issuance and discount costs
|
| | | | 1,207 | | |
| | | | $ | 13,943 | | |
|
| | |
Years Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Revenue, net of returns, allowances and discounts
|
| | | $ | 17,546 | | | | | $ | 14,069 | | |
Cost of revenues
|
| | | | 4,538 | | | | | | 3,524 | | |
Operating expenses: | | | | ||||||||||
Selling, general and administrative
|
| | | | 19,868 | | | | | | 24,215 | | |
Royalties
|
| | | | 818 | | | | | | 493 | | |
Research and product development
|
| | | | 121 | | | | | | 859 | | |
Milestone expense to licensor
|
| | | | | | | | | | 1,000 | | |
Change in fair value of contingent consideration liability
|
| | | | | | | | | | (9,524) | | |
Impairment charges
|
| | | | 10,300 | | | | | | 10,895 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Interest Expense
|
| | | $ | 2,282 | | | | | $ | 2,541 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Loss on early extinguishment of debt
|
| | | | 214 | | | | | | 373 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Warrant modification expense
|
| | | $ | 803 | | | | | $ | — | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Income tax benefit
|
| | | $ | 743 | | | | | $ | 715 | | |
Name of Beneficial Owner
|
| |
Number of
Shares Beneficially Owned(1) |
| |
Percentage
Beneficially Owned(1) |
| ||||||
5% Owners | | | | | | | | | | | | | |
Celgene Corporation 86 Morris Avenue Summit, New Jersey 07901 |
| | | | 902,519(2) | | | | | | 17.8% | | |
Perceptive Advisors, LLC 51 Astor Place, 10th Floor New York, NY 10003 |
| | | | 643,730(3) | | | | | | 12.4% | | |
Officers and Directors | | | | | | | | | | | | | |
David I. Johnson
|
| | | | 232,814(4) | | | | | | 4.5% | | |
Brian M. Posner
|
| | | | 64,656(5) | | | | | | 1.3% | | |
Bradford C. Barton
|
| | | | 82,798(6) | | | | | | 1.6% | | |
Pellegrino Pionati
|
| | | | 34,327(7) | | | | | | * | | |
Joseph M. Leone
|
| | | | 20,376(8) | | | | | | * | | |
Jeffrey Sklar
|
| | | | 17,987(9) | | | | | | * | | |
Gary Restani
|
| | | | 14,882(10) | | | | | | * | | |
Mark Wagner
|
| | | | 53,612(11) | | | | | | 1.1% | | |
Directors and executive officers as a group (8 persons)
|
| | | | 521,452 | | | | | | 9.9% | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | |
| | |
December 31,
2017 |
| |
December 31,
2016 |
| ||||||
ASSETS: | | | | ||||||||||
Current Assets: | | | | ||||||||||
Accounts receivable, net
|
| | | | 3,127 | | | | | | 2,366 | | |
Inventory, net
|
| | | | 1,457 | | | | | | 1,994 | | |
Prepaid expenses and other current assets
|
| | | | 128 | | | | | | 470 | | |
Total current assets
|
| | | | 4,712 | | | | | | 4,830 | | |
Improvements and equipment, net
|
| | | | 1,047 | | | | | | 1,260 | | |
Intangible assets, net
|
| | | | 22,069 | | | | | | 26,605 | | |
Goodwill, net
|
| | | | 1,659 | | | | | | 11,959 | | |
Total assets
|
| | | $ | 29,487 | | | | | $ | 44,654 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Current Liabilities: | | | | ||||||||||
Accounts payable
|
| | | $ | 872 | | | | | $ | 976 | | |
Accrued expenses and other current liabilities
|
| | | | 3,454 | | | | | | 4,177 | | |
Contingent consideration, current
|
| | | | — | | | | | | 675 | | |
Total current liabilities
|
| | | | 4,326 | | | | | | 5,828 | | |
Contingent consideration, long-term
|
| | | | — | | | | | | 675 | | |
Deferred tax liability
|
| | | | — | | | | | | 708 | | |
Total liabilities
|
| | | | 4,326 | | | | | | 7,211 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Net Parent investment
|
| | | | 25,161 | | | | | | 37,443 | | |
Total liabilities and net parent investment
|
| | | $ | 29,487 | | | | | $ | 44,654 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Revenue, net of returns, allowances and discounts
|
| | | $ | 17,546 | | | | | $ | 14,069 | | |
Cost of revenues
|
| | | | 4,538 | | | | | | 3,524 | | |
Gross profit
|
| | | | 13,008 | | | | | | 10,545 | | |
Operating expenses | | | | ||||||||||
Selling, general and administrative
|
| | | | 19,868 | | | | | | 24,215 | | |
Royalties
|
| | | | 818 | | | | | | 493 | | |
Research and product development
|
| | | | 121 | | | | | | 859 | | |
Milestone expense to licensor
|
| | | | — | | | | | | 1,000 | | |
Change in fair value of contingent consideration liability
|
| | | | — | | | | | | (9,524) | | |
Impairment charges
|
| | | | 10,300 | | | | | | 10,895 | | |
Total operating expenses
|
| | | | 31,107 | | | | | | 27,938 | | |
Loss from operations
|
| | | | (18,099) | | | | | | (17,393) | | |
Other (expense) income | | | | ||||||||||
Interest expense
|
| | | | — | | | | | | (1) | | |
Other income
|
| | | | 1 | | | | | | 3 | | |
Total other expense
|
| | | | 1 | | | | | | 2 | | |
Loss before income tax benefit
|
| | | | (18,098) | | | | | | (17,391) | | |
Income tax benefit
|
| | | | 743 | | | | | | 715 | | |
Net Loss
|
| | | $ | (17,355) | | | | | $ | (16,676) | | |
|
|
Balance at January 1, 2016
|
| | | $ | 34,337 | | |
|
Purchased assets net loss
|
| | | | (16,676) | | |
|
Investment from Parent
|
| | | | 19,782 | | |
|
Balance at December 31, 2016
|
| | | | 37,443 | | |
|
Purchased assets net loss
|
| | | | (17,355) | | |
|
Investment from Parent
|
| | | | 5,073 | | |
|
Balance at December 31, 2017
|
| | | $ | 25,161 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Operating Activities | | | | ||||||||||
Net loss
|
| | | $ | (17,355) | | | | | $ | (16,676) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | ||||||||||
Depreciation and amortization
|
| | | | 4,866 | | | | | | 3,968 | | |
Impairment charges
|
| | | | 10,300 | | | | | | 10,895 | | |
Deferred income tax expense
|
| | | | (743) | | | | | | (715) | | |
Provision for doubtful accounts
|
| | | | 121 | | | | | | 94 | | |
Provision for excess and slow moving inventory
|
| | | | 68 | | | | | | (58) | | |
Fair value adjustment of contingent consideration liability
|
| | | | — | | | | | | (9,524) | | |
Changes in operating assets and liabilities: | | | | ||||||||||
Accounts receivable
|
| | | | 640 | | | | | | 569 | | |
Inventory
|
| | | | (537) | | | | | | 1,064 | | |
Prepaid expenses and other assets
|
| | | | (342) | | | | | | (189) | | |
Accounts payable
|
| | | | (104) | | | | | | (495) | | |
Accrued expenses and other current liabilities
|
| | | | (723) | | | | | | 1,995 | | |
Net Cash Used in Operating Activities
|
| | | | (3,809) | | | | | | (9,072) | | |
Investing Activities | | | | ||||||||||
Purchase of improvements and equipment
|
| | | | (179) | | | | | | (882) | | |
Net Cash Provided by Investing Activities
|
| | | | (179) | | | | | | (882) | | |
Financing Activities | | | | ||||||||||
Contingent purchase price payments
|
| | | | (675) | | | | | | (2,573) | | |
Net parent investment
|
| | | | 4,663 | | | | | | 12,527 | | |
Net Cash Provided by Financing Activities
|
| | | | 3,988 | | | | | | 9,954 | | |
Net Decrease in Cash and Cash Equivalents
|
| | | | — | | | | | | — | | |
Cash and Cash Equivalents – Beginning of year
|
| | | | — | | | | | | — | | |
Cash and Cash Equivalents – End of year
|
| | | $ | — | | | | | $ | — | | |
Supplemental Disclosure of Cash Flows Information | | | | ||||||||||
Common stock issued for contingent purchase price payments
|
| | | | 675 | | | | | | 2,573 | | |
| | |
Goodwill
|
| |||
Balance as of December 31, 2015
|
| | | $ | 21,166 | | |
Impairment loss
|
| | | | (9,207) | | |
Balance as of December 31, 2016
|
| | | $ | 11,959 | | |
Impairment loss
|
| | | | (10,300) | | |
Balance as of December 31, 2017
|
| | | $ | 1,659 | | |
|
| | |
December 31,
2017 |
| |
December 31,
2016 |
| ||||||
Finished goods
|
| | | | 1,525 | | | | | | 1,994 | | |
Less: Inventory reserve for excess and slow moving inventory
|
| | | | (68) | | | | | | — | | |
Total
|
| | | $ | 1,457 | | | | | $ | 1,994 | | |
|
| | |
Useful Life
(Years) |
| |
December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| |||||||||
Machinery and equipment
|
| |
3 – 10
|
| | | $ | 2,018 | | | | | $ | 2,143 | | |
Office furniture and equipment
|
| |
3 – 10
|
| | | | 295 | | | | | | 286 | | |
Leasehold improvements
|
| |
(A)
|
| | | | 367 | | | | | | 367 | | |
| | | | | | | | 2,680 | | | | | | 2,796 | | |
Less: Accumulated depreciation and amortization
|
| | | | | | | (1,633) | | | | | | (1,536) | | |
Improvements and equipment, net
|
| | | | | | $ | 1,047 | | | | | $ | 1,260 | | |
|
| | |
December 31, 2017
|
| |||||||||||||||||||||||||||
| | |
Useful Life
(Years) |
| |
Gross
Amount |
| |
Accumulated
Amortization |
| |
Impairment
|
| |
Net
Carrying Amount |
| |||||||||||||||
Technology
|
| | | | 10 | | | | | $ | 32,539 | | | | | $ | (12,083) | | | | | | | | | | | $ | 20,456 | | |
Customer relationships
|
| | | | 9 – 12 | | | | | | 1,984 | | | | | | (934) | | | | | | | | | | | | 1,050 | | |
Tradename
|
| | | | 3 | | | | | | 111 | | | | | | (111) | | | | | | | | | | | | — | | |
Tradename related to MIST Therapy(1)
|
| | | | 3 | | | | | | 1,913 | | | | | | (1,350) | | | | | | | | | | | | 563 | | |
Non-compete
|
| | | | 1 | | | | | | 208 | | | | | | (208) | | | | | | — | | | | | | — | | |
Total intangible assets
|
| | | | | | | | | | 36,755 | | | | | | (14,686) | | | | | | — | | | | | | 22,069 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||||||||||||||
| | |
Useful Life
(Years) |
| |
Gross
Amount |
| |
Accumulated
Amortization |
| |
Impairment
|
| |
Net
Carrying Amount |
| |||||||||||||||
Technology
|
| | | | 10 | | | | | $ | 32,539 | | | | | $ | (9,069) | | | | | $ | — | | | | | $ | 23,470 | | |
Customer relationships
|
| | | | 9 – 12 | | | | | | 1,984 | | | | | | (762) | | | | | | — | | | | | | 1,222 | | |
Tradename
|
| | | | 3 | | | | | | 111 | | | | | | (111) | | | | | | — | | | | | | — | | |
Tradename related to MIST Therapy(1)
|
| | | | 3 | | | | | | 3,601 | | | | | | — | | | | | | (1,688) | | | | | | 1,913 | | |
Non-compete
|
| | | | 1 | | | | | | 208 | | | | | | (208) | | | | | | — | | | | | | — | | |
Total intangible assets
|
| | | | | | | | | | 38,443 | | | | | | (10,150) | | | | | | (1,688) | | | | | | 26,605 | | |
|
| | |
Expected
Amortization Expense |
| |||
2018
|
| | | $ | 3,748 | | |
2019
|
| | | | 2,910 | | |
2020
|
| | | | 2,885 | | |
2021
|
| | | | 2,839 | | |
2022
|
| | | | 2,835 | | |
Thereafter
|
| | | | 6,852 | | |
Total
|
| | | $ | 22,069 | | |
|
| | |
December 31,
2017 |
| |
December 31,
2016 |
| ||||||
Salaries, benefits and incentive compensation
|
| | | $ | 1,561 | | | | | $ | 1,984 | | |
Milestone payment to licensor
|
| | | | 1,000 | | | | | | 1,000 | | |
Professional fees
|
| | | | 220 | | | | | | 692 | | |
Royalty fees
|
| | | | 227 | | | | | | 197 | | |
Deferred revenue
|
| | | | 365 | | | | | | 181 | | |
Other
|
| | | | 81 | | | | | | 123 | | |
Total accrued expenses and other current liabilities
|
| | | $ | 3,454 | | | | | $ | 4,177 | | |
|
|
2018
|
| | | | 80 | | |
|
2019
|
| | | | 82 | | |
|
2020
|
| | | | 85 | | |
|
2021
|
| | | | 86 | | |
|
2022
|
| | | | 87 | | |
|
Thereafter
|
| | | | 61 | | |
|
Total
|
| | | $ | 481 | | |
|
| | |
For The Years Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Federal: | | | | ||||||||||
Current
|
| | | $ | — | | | | | $ | — | | |
Deferred
|
| | | | (664) | | | | | | (627) | | |
State and local: | | | | ||||||||||
Current
|
| | | | 6 | | | | | | 4 | | |
Deferred
|
| | | | (85) | | | | | | (92) | | |
Income tax provision
|
| | | $ | (743) | | | | | $ | (715) | | |
|
| | |
December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Contingent Consideration | | | | ||||||||||
Beginning balance
|
| | | $ | 1,350 | | | | | $ | 16,020 | | |
Payments of contingent consideration
|
| | | | (1,350) | | | | | | (5,146) | | |
Change in fair value of contingent consideration
|
| | | | — | | | | | | (9,524) | | |
Ending balance
|
| | | $ | — | | | | | $ | 1,350 | | |
|
| | |
December 31, 2017
|
| | | | | | | |||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
Impairments |
| ||||||||||||
Assets:
|
| | | | | ||||||||||||||||||||
Intangible assets
|
| | | $ | — | | | | | $ | — | | | | | $ | 22,069 | | | | | $ | — | | |
Goodwill
|
| | | | — | | | | | | — | | | | | | 1,659 | | | | | | 10,300 | | |
Total assets
|
| | | $ | — | | | | | $ | — | | | | | $ | 23,728 | | | | | $ | 10,300 | | |
|
| | |
December 31, 2016
|
| | | | | | | |||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
Impairments |
| ||||||||||||
Assets: | | | | | | ||||||||||||||||||||
Intangible assets
|
| | | $ | — | | | | | $ | — | | | | | $ | 26,604 | | | | | $ | — | | |
Goodwill
|
| | | | — | | | | | | — | | | | | | 11,959 | | | | | | 10,895 | | |
Total assets
|
| | | $ | — | | | | | $ | — | | | | | $ | 38,563 | | | | | $ | 10,895 | | |
|
| Consolidated Financial Statements | | | | | | | |
| | | | | F-20 | | | |
| | | | | F-21 | | | |
| | | | | F-22 | | | |
| | | | | F-23 | | | |
| | | | | F-24 | | | |
| | | | | F-25 | | |
| | |
December 31,
2017 |
| |
December 31,
2016 |
| ||||||
ASSETS: | | | | ||||||||||
Current Assets: | | | | ||||||||||
Cash and cash equivalents
|
| | | $ | 2,181 | | | | | $ | 5,580 | | |
Accounts receivable, net
|
| | | | 3,243 | | | | | | 2,453 | | |
Inventory, net
|
| | | | 1,551 | | | | | | 2,152 | | |
Prepaid expenses and other current assets
|
| | | | 185 | | | | | | 735 | | |
Current assets of discontinued operations
|
| | | | 317 | | | | | | 857 | | |
Total current assets
|
| | | | 7,477 | | | | | | 11,777 | | |
Improvements and equipment, net
|
| | | | 1,563 | | | | | | 2,092 | | |
Intangible assets, net
|
| | | | 22,069 | | | | | | 26,605 | | |
Goodwill, net
|
| | | | 1,659 | | | | | | 11,959 | | |
Other assets
|
| | | | 173 | | | | | | 173 | | |
Assets of discontinued operations – noncurrent
|
| | | | — | | | | | | 1,893 | | |
Total assets
|
| | | $ | 32,941 | | | | | $ | 54,499 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | ||||||||||
Current Liabilities: | | | | ||||||||||
Accounts payable
|
| | | $ | 1,641 | | | | | $ | 2,614 | | |
Accrued expenses and other current liabilities
|
| | | | 4,270 | | | | | | 5,224 | | |
Contingent consideration, current
|
| | | | — | | | | | | 675 | | |
Senior secured term loan, net
|
| | | | 10,929 | | | | | | 11,541 | | |
Warrant liability
|
| | | | 130 | | | | | | 20 | | |
Current liabilities of discontinued operations
|
| | | | — | | | | | | 60 | | |
Total current liabilities
|
| | | | 16,970 | | | | | | 20,134 | | |
Contingent consideration, long-term
|
| | | | — | | | | | | 1,141 | | |
Deferred tax liability
|
| | | | — | | | | | | 749 | | |
Other long-term liabilities
|
| | | | 304 | | | | | | 385 | | |
Total liabilities
|
| | | | 17,274 | | | | | | 22,409 | | |
Commitments and Contingencies | | | | ||||||||||
Stockholders’ Equity | | | | ||||||||||
Preferred Stock, par value $0.001 per share, 1,000,000 shares authorized, no shares issued and outstanding
|
| | | | — | | | | | | — | | |
Common Stock, par value $0.001 per share, 95,000,000 shares authorized; 4,986,034 and 2,966,904 shares issued and outstanding as of December 31, 2017 and December 31, 2016, respectively
|
| | | | 5 | | | | | | 3 | | |
Additional paid-in capital
|
| | | | 165,672 | | | | | | 156,390 | | |
Accumulated deficit
|
| | | | (150,010) | | | | | | (124,303) | | |
Total stockholders’ equity
|
| | | | 15,667 | | | | | | 32,090 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 32,941 | | | | | $ | 54,499 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Revenue, net of returns, allowances and discounts
|
| | | $ | 19,565 | | | | | $ | 16,294 | | |
Cost of revenues
|
| | | | 6,763 | | | | | | 6,051 | | |
Gross profit
|
| | | | 12,802 | | | | | | 10,243 | | |
Operating expenses | | | | ||||||||||
Selling, general and administrative
|
| | | | 28,090 | | | | | | 35,325 | | |
Royalties
|
| | | | 820 | | | | | | 1,093 | | |
Research and product development
|
| | | | 121 | | | | | | 859 | | |
Milestone expense to licensor
|
| | | | — | | | | | | 1,000 | | |
Acquisition-related
|
| | | | (365) | | | | | | 2,959 | | |
Change in fair value of contingent consideration liability
|
| | | | 35 | | | | | | (10,065) | | |
Impairment charges
|
| | | | 10,300 | | | | | | 10,895 | | |
Total operating expenses
|
| | | | 39,001 | | | | | | 42,066 | | |
Loss from operations
|
| | | | (26,199) | | | | | | (31,823) | | |
Other (expense) income | | | | ||||||||||
Interest expense
|
| | | | (2,282) | | | | | | (2,541) | | |
Change in fair value of warrant liability
|
| | | | 692 | | | | | | 841 | | |
Warrant modification expense
|
| | | | (803) | | | | | | — | | |
Loss on early extinguishment of debt, net
|
| | | | (214) | | | | | | (373) | | |
Other income
|
| | | | 206 | | | | | | 142 | | |
Total other expense
|
| | | | (2,401) | | | | | | (1,931) | | |
Loss from continuing operations before tax
|
| | | | (28,600) | | | | | | (33,754) | | |
Income tax benefit
|
| | | | 743 | | | | | | 715 | | |
Loss from continuing operations
|
| | | | (27,857) | | | | | | (33,039) | | |
Discontinued operations: | | | | ||||||||||
Income from discontinued operations, net of tax of $0 for the years ended December 31, 2017 and 2016
|
| | | | 454 | | | | | | 1,485 | | |
Gain on sale of assets, net of tax of $0 for the years ended December 31, 2017
and 2016 |
| | | | 1,696 | | | | | | 3,311 | | |
Income from discontinued operations, net of tax
|
| | | | 2,150 | | | | | | 4,796 | | |
Net loss
|
| | | $ | (25,707) | | | | | $ | (28,243) | | |
Net loss per basic and diluted common share: | | | | ||||||||||
Loss from continuing operations
|
| | | $ | (6.49) | | | | | $ | (11.81) | | |
Income from discontinued operations
|
| | | | 0.11 | | | | | | 0.53 | | |
Gain on sale of assets
|
| | | | 0.40 | | | | | | 1.18 | | |
Total from discontinued operations
|
| | | | 0.51 | | | | | | 1.71 | | |
Net loss per basic and diluted common share
|
| | | $ | (5.98) | | | | | $ | (10.10) | | |
Weighted average shares used in computing net loss per basic and diluted common share
|
| | | | 4,291,600 | | | | | | 2,796,563 | | |
|
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| ||||||||||||||||||
|
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||
Balance, December 31, 2015
|
| | | | 2,766,891 | | | | | $ | 3 | | | | | $ | 148,484 | | | | | $ | (96,060) | | | | | $ | 52,427 | | |
Stock-based compensation (A)
|
| | | | 101,653 | | | | | | — | | | | | | 5,336 | | | | | | — | | | | | | 5,336 | | |
Issuance of common stock in connection with the contingent consideration of the Celleration, Inc. acquisition (B)
|
| | | | 98,594 | | | | | | — | | | | | | 2,572 | | | | | | — | | | | | | 2,572 | | |
Net settlement on vesting of restricted stock awards
|
| | | | (234) | | | | | | — | | | | | | (2) | | | | | | — | | | | | | (2) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (28,243) | | | | | | (28,243) | | |
Balance, December 31, 2016
|
| | | | 2,966,904 | | | | | $ | 3 | | | | | $ | 156,390 | | | | | $ | (124,303) | | | | | $ | 32,090 | | |
Issuance common stock for cash, net of issuance costs of $695
|
| | | | 1,639,825 | | | | | | 2 | | | | | | 5,847 | | | | | | | | | | | | 5,849 | | |
Stock-based compensation (C)
|
| | | | 181,936 | | | | | | — | | | | | | 2,393 | | | | | | | | | | | | 2,393 | | |
Issuance of common stock in connection with the contingent consideration of the Celleration, Inc. acquisition (D)
|
| | | | 101,243 | | | | | | — | | | | | | 675 | | | | | | | | | | | | 675 | | |
Issuance of common stock in connection with the contingent consideration of the Choice Therapeutics acquisition (E)
|
| | | | 131,579 | | | | | | — | | | | | | 500 | | | | | | | | | | | | 500 | | |
Net settlement on vesting of restricted stock awards
|
| | | | (35,453) | | | | | | — | | | | | | (133) | | | | | | | | | | | | (133) | | |
Net loss
|
| | | | | | | | | | | | | | | | | | | | | | (25,707) | | | | | | (25,707) | | |
Balance, December 31, 2017
|
| | | | 4,986,034 | | | | | $ | 5 | | | | | $ | 165,672 | | | | | $ | (150,010) | | | | | $ | 15,667 | | |
|
| | |
Year Ended December 31,
|
|||||||||
| | |
2017
|
| |
2016
|
||||||
Operating Activities | | | | |||||||||
Net loss
|
| | | $ | (25,707) | | | | | $ | (28,243) | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | |||||||||
Depreciation and amortization
|
| | | | 5,415 | | | | | | 4,162 | |
Amortization of deferred lease incentive
|
| | | | (45) | | | | | | (42) | |
Lease incentive
|
| | | | — | | | | | | 267 | |
Impairment charges
|
| | | | 10,300 | | | | | | 10,895 | |
Deferred income tax expense
|
| | | | (743) | | | | | | (715) | |
Provision for doubtful accounts
|
| | | | 122 | | | | | | 38 | |
Reserve for note receivable
|
| | | | (650) | | | | | | 1,020 | |
Provision for excess and slow moving inventory
|
| | | | 68 | | | | | | (58) | |
Stock-based compensation expense
|
| | | | 2,020 | | | | | | 4,863 | |
Deferred rent
|
| | | | 2 | | | | | | 84 | |
Accrued interest receivable
|
| | | | — | | | | | | (19) | |
Amortization of debt issuance and discount costs
|
| | | | 824 | | | | | | 841 | |
Loss on early extinguishment of debt
|
| | | | 182 | | | | | | 321 | |
Warrant modification expense
|
| | | | 803 | | | | | | — | |
Change in fair value of warrant liability
|
| | | | (692) | | | | | | (841) | |
Fair value adjustment of contingent consideration liability
|
| | | | 35 | | | | | | (10,065) | |
Gain on sale of assets
|
| | | | (1,696) | | | | | | (3,311) | |
Changes in operating assets and liabilities: | | | | |||||||||
Accounts receivable
|
| | | | (621) | | | | | | (281) | |
Inventory
|
| | | | 792 | | | | | | (112) | |
Prepaid expenses and other assets
|
| | | | 550 | | | | | | 207 | |
Accounts payable
|
| | | | (1,004) | | | | | | (26) | |
Accrued expenses and other current liabilities
|
| | | | (627) | | | | | | 2,680 | |
Net Cash Used in Operating Activities
|
| | | | (10,672) | | | | | | (18,335) | |
Investing Activities | | | | |||||||||
Proceeds from sale of assets
|
| | | | 3,411 | | | | | | 4,103 | |
Purchase of improvements and equipment
|
| | | | (179) | | | | | | (893) | |
Issuance of bridge loan
|
| | | | (350) | | | | | | (1,000) | |
Proceeds from bridge loan
|
| | | | 1,000 | | | | | | — | |
Net Cash Provided by Investing Activities
|
| | | | 3,882 | | | | | | 2,210 | |
Financing Activities | | | | |||||||||
Contingent purchase price payments
|
| | | | (675) | | | | | | (2,573) | |
Repayment of long-term debt
|
| | | | (1,618) | | | | | | (1,748) | |
Loss on early extinguishment of debt
|
| | | | (32) | | | | | | (52) | |
Net proceeds from issuance of common stock
|
| | | | 5,849 | | | | | | — | |
Payment of withholding taxes related to stock-based employee compensation
|
| | | | (133) | | | | | | (2) | |
Net Cash Provided by (Used in) Financing Activities
|
| | | | 3,391 | | | | | | (4,375) | |
Net Decrease in Cash and Cash Equivalents
|
| | | | (3,399) | | | | | | (20,500) | |
Cash and Cash Equivalents – Beginning of year
|
| | | | 5,580 | | | | | | 26,080 | |
Cash and Cash Equivalents – End of year
|
| | | $ | 2,181 | | | | | $ | 5,580 | |
Supplemental Disclosure of Cash Flows Information | | | | |||||||||
Cash paid during the period for: | | | | |||||||||
Interest
|
| | | $ | 1,008 | | | | | $ | 1,599 | |
Non-cash investing and financing activities: | | | | |||||||||
2016 Accrued bonus awarded in equity
|
| | | $ | 374 | | | | | $ | — | |
2015 Accrued bonus awarded in equity
|
| | | | — | | | | | | 474 | |
Common stock issued for contingent purchase price payments
|
| | | | 1,175 | | | | | | 2,573 |
| | |
Goodwill
|
| |||
Balance as of December 31, 2015
|
| | | $ | 21,166 | | |
Impairment loss
|
| | | | (9,207) | | |
Balance as of December 31, 2016
|
| | | $ | 11,959 | | |
Impairment loss
|
| | | | (10,300) | | |
Balance as of December 31, 2017
|
| | | $ | 1,659 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Stock options
|
| | | | 809,586 | | | | | | 719,929 | | |
Warrants
|
| | | | 478,330 | | | | | | 336,541 | | |
Non-vested restricted stock
|
| | | | 189,674 | | | | | | 147,023 | | |
Total
|
| | | | 1,477,590 | | | | | | 1,203,493 | | |
|
| | |
Years Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Revenue, net of returns, allowances and discounts
|
| | | $ | 1,242 | | | | | $ | 3,655 | | |
Cost of revenues
|
| | | | 396 | | | | | | 1,140 | | |
Gross profit
|
| | | | 846 | | | | | | 2,515 | | |
Selling, general and administrative
|
| | | | 392 | | | | | | 1,030 | | |
Income from discontinued operations, net of tax
|
| | | $ | 454 | | | | | $ | 1,485 | | |
|
| Proceeds from sale | | | | ||||||||||
|
Consideration for inventory
|
| | | $ | 112 | | | | |||||
|
Consideration for intangible assets
|
| | | | 3,600 | | | | | | | | |
|
Total Consideration
|
| | | | | | | | | | 3,712 | | |
| Less: Net book value of assets sold to Argentum | | | | ||||||||||
|
Inventory, net
|
| | | | (307) | | | | |||||
|
Intangibles, net
|
| | | | (1,709) | | | | | | | | |
|
Total net book value of assets
|
| | | | | | | | | | (2,016) | | |
|
Gain on sale of assets
|
| | | | | | | | | $ | 1,696 | | |
|
| Proceeds from sale | | | | ||||||||||
|
Consideration for inventory
|
| | | $ | 603 | | | | |||||
|
Consideration for intangible assets
|
| | | | 3,500 | | | | | | | | |
|
Total Consideration
|
| | | | | | | | | | 4,103 | | |
| Less: Net book value of assets sold BSN | | | | ||||||||||
|
Inventory, net
|
| | | | (603) | | | | |||||
|
Intangibles, net
|
| | | | (189) | | | | | | | | |
|
Total net book value of assets
|
| | | | | | | | | | (792) | | |
|
Gain on sale of assets
|
| | | | | | | | | $ | 3,311 | | |
|
| | |
December 31
2017 |
| |
December 31,
2016 |
| ||||||
Accounts receivable, net
|
| | | $ | 17 | | | | | $ | 307 | | |
Escrow
|
| | | | 300 | | | | | | — | | |
Inventory, net
|
| | | | — | | | | | | 550 | | |
Total current assets
|
| | | | 317 | | | | | | 857 | | |
Intangible assets, net
|
| | | | — | | | | | | 1,893 | | |
Total assets
|
| | | | 317 | | | | | | 2,750 | | |
Accounts payable
|
| | | | — | | | | | | 19 | | |
Accrued expenses and other current liabilities
|
| | | | — | | | | | | 41 | | |
Total current liabilities
|
| | | $ | — | | | | | $ | 60 | | |
|
| | |
December 31,
2017 |
| |
December 31,
2016 |
| ||||||
Raw materials
|
| | | $ | 98 | | | | | $ | 134 | | |
Work in process
|
| | | | — | | | | | | 20 | | |
Finished goods
|
| | | | 1,521 | | | | | | 1,998 | | |
Less: Inventory reserve for excess and slow moving inventory
|
| | | | (68) | | | | | | — | | |
Total
|
| | | $ | 1,551 | | | | | $ | 2,152 | | |
|
| | |
Useful Life
(Years) |
| |
December 31,
|
| |||||||||
|
2017
|
| |
2016
|
| |||||||||||
Machinery and equipment
|
| |
3 – 10
|
| | | $ | 4,911 | | | | | $ | 5,041 | | |
Office furniture and equipment
|
| |
3 – 10
|
| | | | 344 | | | | | | 337 | | |
Leasehold improvements
|
| |
(A)
|
| | | | 594 | | | | | | 595 | | |
| | | | | | | | 5,849 | | | | | | 5,973 | | |
Less: Accumulated depreciation and amortization
|
| | | | | | | (4,286) | | | | | | (3,881) | | |
Improvements and equipment, net
|
| | | | | | $ | 1,563 | | | | | $ | 2,092 | | |
|
| | | | | |
December 31, 2017
|
| |||||||||||||||||||||
| | |
Useful Life
(Years) |
| |
Gross
Amount |
| |
Accumulated
Amortization |
| |
Impairment
|
| |
Net
Carrying Amount |
| ||||||||||||
Technology
|
| |
10
|
| | | $ | 32,539 | | | | | $ | (12,083) | | | | | | | | | | | $ | 20,456 | | |
Customer relationships
|
| |
9 – 12
|
| | | | 1,984 | | | | | | (934) | | | | | | | | | | | | 1,050 | | |
Tradename
|
| |
3
|
| | | | 111 | | | | | | (111) | | | | | | | | | | | | — | | |
Tradename related to MIST Therapy(1)
|
| |
3
|
| | | | 1,913 | | | | | | (1,350) | | | | | | | | | | | | 563 | | |
Non-compete
|
| |
1
|
| | | | 208 | | | | | | (208) | | | | | | — | | | | | | — | | |
Total intangible assets
|
| | | | | | | 36,755 | | | | | | (14,686) | | | | | | — | | | | | | 22,069 | | |
|
| | | | | |
December 31, 2016
|
| |||||||||||||||||||||
| | |
Useful Life
(Years) |
| |
Gross
Amount |
| |
Accumulated
Amortization |
| |
Impairment
|
| |
Net
Carrying Amount |
| ||||||||||||
Technology
|
| |
10
|
| | | $ | 32,539 | | | | | $ | (9,069) | | | | | $ | — | | | | | $ | 23,470 | | |
Customer relationships
|
| |
9 – 12
|
| | | | 1,984 | | | | | | (762) | | | | | | — | | | | | | 1,222 | | |
Tradename
|
| |
3
|
| | | | 111 | | | | | | (111) | | | | | | — | | | | | | — | | |
Tradename related to MIST Therapy(1)
|
| |
3
|
| | | | 3,601 | | | | | | — | | | | | | (1,688) | | | | | | 1,913 | | |
Non-compete
|
| |
1
|
| | | | 208 | | | | | | (208) | | | | | | — | | | | | | — | | |
Total intangible assets
|
| | | | | | | 38,443 | | | | | | (10,150) | | | | | | (1,688) | | | | | | 26,605 | | |
|
| | |
Expected
Amortization Expense |
| |||
2018
|
| | | $ | 3,748 | | |
2019
|
| | | | 2,910 | | |
2020
|
| | | | 2,885 | | |
2021
|
| | | | 2,839 | | |
2022
|
| | | | 2,835 | | |
Thereafter
|
| | | | 6,852 | | |
Total
|
| | | $ | 22,069 | | |
|
| | |
December 31,
2017 |
| |
December 31,
2016 |
| ||||||
Salaries, benefits and incentive compensation
|
| | | $ | 1,981 | | | | | $ | 3,007 | | |
Milestone payment to licensor
|
| | | | 1,000 | | | | | | 1,000 | | |
Professional fees
|
| | | | 538 | | | | | | 692 | | |
Royalty fees
|
| | | | 227 | | | | | | 197 | | |
Deferred revenue
|
| | | | 365 | | | | | | 181 | | |
Other
|
| | | | 159 | | | | | | 147 | | |
Total accrued expenses and other current liabilities
|
| | | $ | 4,270 | | | | | $ | 5,224 | | |
|
|
2018
|
| | | $ | 506 | | |
|
2019
|
| | | | 512 | | |
|
2020
|
| | | | 519 | | |
|
2021
|
| | | | 525 | | |
|
2022
|
| | | | 530 | | |
|
Thereafter
|
| | | | 780 | | |
|
Total
|
| | | $ | 3,372 | | |
|
| | |
December 31,
2017 |
| |
December 31,
2016 |
| ||||||
Principle balance
|
| | | $ | 12,135 | | | | | $ | 13,752 | | |
Unamortized debt issuance and discount costs
|
| | | | (1,206) | | | | | | (2,211) | | |
Total
|
| | | $ | 10,929 | | | | | $ | 11,541 | | |
|
| | |
Number of
Shares |
| |
Weighted
Average Grant Date Fair Value Per Share |
| |
Total Grant
Date Fair Value |
| |||||||||
Non-vested, December 31, 2015
|
| | | | 69 | | | | | $ | 61.10 | | | | | $ | 4,226 | | |
Granted
|
| | | | 103 | | | | | | 10.50 | | | | | | 1,076 | | |
Vested
|
| | | | (24) | | | | | | 60.00 | | | | | | (1,428) | | |
Forfeited
|
| | | | (1) | | | | | | 14.60 | | | | | | (12) | | |
Non-vested, December 31, 2016
|
| | | | 147 | | | | | $ | 26.26 | | | | | $ | 3,862 | | |
Granted
|
| | | | 182 | | | | | | 3.41 | | | | | | 621 | | |
Vested
|
| | | | (137) | | | | | | 17.35 | | | | | | 2,373 | | |
Forfeited
|
| | | | (2) | | | | | | 3.87 | | | | | | — | | |
Non-vested, December 31, 2017
|
| | | | 190 | | | | | $ | 11.07 | | | | | $ | 6,856 | | |
|
| | |
Number of
Warrants |
| |
Weighted
Average Exercise Price per Warrant |
| |
Weighted
Average Remaining Life in Years |
| |
Intrinsic
Value |
| ||||||||||||
Outstanding, December 31, 2015
|
| | | | 338 | | | | | $ | 57.00 | | | | | ||||||||||
Issued
|
| | | | — | | | | | | — | | | | | ||||||||||
Exercised
|
| | | | — | | | | | | — | | | | | ||||||||||
Cancelled
|
| | | | (1) | | | | | | 87.50 | | | | | | | | | | | | | | |
Outstanding, December 31, 2016
|
| | | | 337 | | | | | $ | 56.90 | | | | | | | | | | | $ | — | | |
Issued
|
| | | | 159 | | | | | | 4.66 | | | | | ||||||||||
Adjustment for price reset
|
| | | | 29 | | | | | | |||||||||||||||
Exercised
|
| | | | — | | | | | | — | | | | | ||||||||||
Cancelled
|
| | | | (47) | | | | | | 9.35 | | | | | | | | | | | | | | |
Outstanding, December 31, 2017
|
| | | | 478 | | | | | $ | 32.79 | | | | | | 2.4 | | | | | $ | — | | |
Exercisable, December 31, 2017
|
| | | | 478 | | | | | $ | 32.79 | | | | | | 2.4 | | | | | $ | — | | |
|
Warrants Outstanding
|
| |
Warrants Exercisable
|
| |||||||||||||||
Exercise Price
|
| |
Outstanding
Number of Warrants |
| |
Weighted
Average Remaining Life in Years |
| |
Exercisable
Number of Warrants |
| |||||||||
$4.0 – $21.80
|
| | | | 233 | | | | | | 4.1 | | | | | | 233 | | |
$40.00 – $49.99
|
| | | | 98 | | | | | | 0.5 | | | | | | 98 | | |
$50.00 – $59.90
|
| | | | 104 | | | | | | 0.9 | | | | | | 104 | | |
$60.00 – $105.00
|
| | | | 43 | | | | | | 1.3 | | | | | | 43 | | |
| | | | | 478 | | | | | | 2.4 | | | | | | 478 | | |
|
| | |
Year Ended December 31,
|
| |||
| | |
2017
|
| |
2016
|
|
Risk free interest rate
|
| |
1.81% – 2.43%
|
| |
1.14% – 2.06%
|
|
Expected term (years)
|
| |
5.04 – 6.50
|
| |
5.04 – 6.50
|
|
Expected volatility
|
| |
81.94% – 87.00%
|
| |
89.53% – 89.95%
|
|
Expected dividends
|
| |
0.00%
|
| |
0.00%
|
|
| | |
Number of
Options |
| |
Weighted
Average Exercise Price per Option |
| |
Weighted
Average Remaining Life in Years |
| |
Intrinsic
Value |
| ||||||||||||
Outstanding, December 31, 2015
|
| | | | 623 | | | | | $ | 62.60 | | | | | | | | | | | | | | |
Granted
|
| | | | 165 | | | | | | 10.50 | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Forfeited
|
| | | | (68) | | | | | | 39.50 | | | | | | | | | | | | | | |
Outstanding, December 31, 2016
|
| | | | 720 | | | | | $ | 52.90 | | | | | | | | | | | | | | |
Granted
|
| | | | 258 | | | | | | 3.53 | | | | | | | | | | | | | | |
Exercised
|
| | | | — | | | | | | — | | | | | | | | | | | | | | |
Forfeited
|
| | | | (168) | | | | | | 40.60 | | | | | | | | | | | | | | |
Outstanding, December 31, 2017
|
| | | | 810 | | | | | $ | 39.67 | | | | | | 6.3 | | | | | $ | — | | |
Exercisable, December 31, 2017
|
| | | | 658 | | | | | $ | 42.71 | | | | | | 5.6 | | | | | $ | — | | |
|
| | |
Options Outstanding
|
| |
Options Exercisable
|
| | |||||||||||||||||||||||
Range of Exercise Price
|
| |
Weighted
Average Exercise Price |
| |
Outstanding
Number of Options |
| |
Weighted
Average Exercise Price |
| |
Weighted
Average Remaining Life in Years |
| |
Exercisable
Number of Options |
| |||||||||||||||
$2.00 – $4.00
|
| | | $ | 3.52 | | | | | | 222 | | | | | | 3.57 | | | | | | 8.9 | | | | | | 68 | | |
$4.10 – $9.90
|
| | | | 8.54 | | | | | | 32 | | | | | | 8.61 | | | | | | 6.8 | | | | | | 143 | | |
$10.00 – $19.90
|
| | | | 10.58 | | | | | | 80 | | | | | | 10.59 | | | | | | 7.6 | | | | | | 28 | | |
$20.00 – $29.90
|
| | | | 23.08 | | | | | | 1 | | | | | | 22.90 | | | | | | 4.1 | | | | | | 1 | | |
$30.00 – $39.90
|
| | | | 33.72 | | | | | | 47 | | | | | | 33.72 | | | | | | 5.6 | | | | | | 45 | | |
$40.00 – $49.90
|
| | | | 46.61 | | | | | | 68 | | | | | | 46.01 | | | | | | 6.0 | | | | | | 66 | | |
$50.00 – $59.90
|
| | | | 52.99 | | | | | | 51 | | | | | | 53.20 | | | | | | 5.5 | | | | | | 39 | | |
$60.00 – $69.90
|
| | | | 66.06 | | | | | | 205 | | | | | | 66.47 | | | | | | 4.4 | | | | | | 185 | | |
$70.00 – $79.90
|
| | | | 77.54 | | | | | | 3 | | | | | | 77.54 | | | | | | 6.3 | | | | | | 3 | | |
$80.00 – $89.90
|
| | | | 87.40 | | | | | | 74 | | | | | | 87.36 | | | | | | 2.0 | | | | | | 53 | | |
$90.00 – $99.90
|
| | | | 90.04 | | | | | | 21 | | | | | | 90.04 | | | | | | 3.5 | | | | | | 21 | | |
$100.00 – $266.90
|
| | | | 110.13 | | | | | | 6 | | | | | | 110.13 | | | | | | 5.2 | | | | | | 6 | | |
| | | | | | | | | | | 810 | | | | | | | | | | | | 5.6 | | | | | | 658 | | |
|
| | |
For The Years Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Federal: | | | | | | | | | | | | | |
Current
|
| | | $ | — | | | | | $ | — | | |
Deferred
|
| | | | (664) | | | | | | (627) | | |
State and local: | | | | | | | | | | | | | |
Current
|
| | | | 6 | | | | | | 4 | | |
Deferred
|
| | | | (85) | | | | | | (92) | | |
Income tax provision
|
| | | $ | (743) | | | | | $ | (715) | | |
|
| | |
For The Years Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
U.S. federal statutory rate
|
| | | | 34.0% | | | | | | 34.0% | | |
State tax rate, net of federal benefit
|
| | | | 3.0% | | | | | | 4.5% | | |
Permanent differences | | | | | | | | | | | | | |
– Change in fair value of warrant liability
|
| | | | (0.1)% | | | | | | 0.9% | | |
– Change in fair value of contingent consideration
|
| | | | 0.0% | | | | | | 10.4% | | |
– Intangible impairment
|
| | | | (12.0)% | | | | | | (9.3)% | | |
– Other
|
| | | | (0.3)% | | | | | | (0.4)% | | |
Adjustments to deferred taxes
|
| | | | (4.6)% | | | | | | (8.2)% | | |
Tax Reform – Federal Rate Change
|
| | | | (50.9)% | | | | | | 0.0% | | |
Tax Reform – Change in valuation allowance
|
| | | | 50.9% | | | | | | 0.0% | | |
Change in valuation allowance
|
| | | | (17.4)% | | | | | | (29.7)% | | |
Income tax provision
|
| | | | 2.6% | | | | | | 2.2% | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Deferred tax assets: | | | | | | | | | | | | | |
Net operating loss carryforwards
|
| | | $ | 29,580 | | | | | $ | 40,117 | | |
Stock-based compensation
|
| | | | 5,598 | | | | | | 8,671 | | |
Goodwill and Tradename
|
| | | | 32 | | | | | | — | | |
Accruals
|
| | | | 694 | | | | | | 541 | | |
Transaction costs
|
| | | | 39 | | | | | | 732 | | |
Other
|
| | | | 364 | | | | | | 861 | | |
Total deferred tax assets
|
| | | | 36,307 | | | | | | 50,922 | | |
Valuation allowance
|
| | | | (30,864) | | | | | | (41,482) | | |
Deferred tax assets, net of valuation allowance
|
| | | $ | 5,443 | | | | | $ | 9,440 | | |
Deferred tax liabilities: | | | | | | | | | | | | | |
Property and equipment
|
| | | | (65) | | | | | | (281) | | |
Intangible assets
|
| | | | (5,378) | | | | | | (9,159) | | |
Goodwill
|
| | | | — | | | | | | (749) | | |
Total deferred tax liabilities
|
| | | | (5,443) | | | | | | (10,189) | | |
Net deferred tax liabilities
|
| | | $ | — | | | | | $ | (749) | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Warrant Liabilities | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 20 | | | | | $ | 861 | | |
Change in fair value of warrant liability
|
| | | | (693) | | | | | | (841) | | |
Warrant modification expense
|
| | | | 803 | | | | | | — | | |
Ending balance
|
| | | $ | 130 | | | | | $ | 20 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Contingent Consideration | | | | | | | | | | | | | |
Beginning balance
|
| | | $ | 1,816 | | | | | $ | 17,028 | | |
Payments of contingent consideration
|
| | | | (1,851) | | | | | | (5,147) | | |
Change in fair value of contingent consideration
|
| | | | 35 | | | | | | (10,065) | | |
Ending balance
|
| | | $ | — | | | | | $ | 1,816 | | |
|
| | |
December 31, 2017
|
| | | | | | | |||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total Impairments
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Intangible assets
|
| | | $ | — | | | | | $ | — | | | | | $ | 22,069 | | | | | $ | — | | |
Goodwill
|
| | | | — | | | | | | — | | | | | | 1,659 | | | | | | 10,300 | | |
Total assets
|
| | | $ | — | | | | | $ | — | | | | | $ | 23,728 | | | | | $ | 10,300 | | |
|
| | |
December 31, 2016
|
| | | | | | | |||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total Impairments
|
| ||||||||||||
Assets: | | | | | | | | | | | | | | | | | | | | | | | | | |
Intangible assets
|
| | | $ | — | | | | | $ | — | | | | | $ | 26,605 | | | | | $ | — | | |
Goodwill
|
| | | | — | | | | | | — | | | | | | 11,959 | | | | | | 10,895 | | |
Total assets
|
| | | $ | — | | | | | $ | — | | | | | $ | 38,564 | | | | | $ | 10,895 | | |
|
| | |
December 31, 2017
|
| |||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | |
Warrant liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 130 | | |
Total liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 130 | | |
|
| | |
December 31, 2016
|
| |||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
Liabilities: | | | | | | | | | | | | | | | | | | | |
Warrant liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 20 | | |
Contingent consideration
|
| | | | — | | | | | | — | | | | | | 1,816 | | |
Total liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 1,836 | | |
|
| | |
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| If to Buyer: | | |||
| Celularity Inc. 33 Technology Drive, Warren, New Jersey 07059 |
| |||
| Email: | | | Tim.smith@celularity.com | |
| Attention: | | | Timothy L. Smith | |
| Jones Day 4655 Executive Drive, Suite 1500 San Diego, California 92121 |
| |||
| Email: | | | kpolin@jonesday.com | |
| Attention: | | | Kenneth D. Polin | |
| If to Seller: | | |||
| Alliqua Biomedical, Inc. 1010 Stony Hill Road, Suite 200 Yardley, PA 19067 |
| |||
| Email: | | | djohnson@alliqua.com | |
| Attention: | | | David Johnson, Chief Executive Officer | |
| with a copy (which will not constitute notice) to: | | |||
| Haynes and Boone, LLP 30 Rockefeller Plaza, 26th Floor New York, New York 10112 Fax: (212) 884-8234 |
| |||
| Email: | | | rick.werner@haynesboone.com greg.kramer@haynesboone.com |
|
| Attention: | | | Rick A. Werner Greg Kramer |
|