8-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 8-K/A

__________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):July 30, 2010

Lexicon Pharmaceuticals, Inc.

(Exact name of registrant as specified in its charter)

Delaware	000-30111	76-0474169
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification Number)

8800 Technology Forest Place

The Woodlands, Texas 77381

(Address of principal executive

offices and Zip Code)

(281) 863-3000

(Registrant's telephone number,

including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligations of the registrant under any of the following provisions:

oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Explanatory Note

On August 2, 2010, Lexicon Pharmaceuticals, Inc. (“Lexicon”) filed with the Securities and Exchange Commission a Current Report on Form 8-K (the “Original Form 8-K”) in connection with the exercise of its exclusive purchase option to acquire all the equity of Symphony Icon, Inc. (“Symphony Icon”). This Current Report on Form 8-K/A amends Item 9.01 of the Original Form 8-K to present certain financial statements of Symphony Icon and to present certain combined pro forma financial information in connection with Lexicon's combination with Symphony Icon, which financial statements and pro forma financial information are filed as exhibits hereto.

Item 9.01Financial Statements and Exhibits

(a)     Financial Statements of Businesses Acquired

The unaudited balance sheets of Symphony Icon as of June 30, 2010 and December 31, 2009, the related statements of operations and statements of cash flows for the six months ended June 30, 2010 and 2009 and the period from April 30, 2007 (inception) to June 30, 2010 and the Unaudited Notes to Financial Statements are filed as Exhibit 99.1 to this Current Report on Form 8-K/A and are incorporated by reference herein.

(b)     Pro Forma Financial Information

The unaudited pro forma combined financial information of Lexicon for the year ended December 31, 2009, as of and for the six months ended June 30, 2010 and for the nine months ended September 30, 2010, giving effect to Lexicon's combination with Symphony Icon, are filed as Exhibit 99.2 to this Current Report on Form 8-K/A and are incorporated by reference herein.

(d)Exhibits

Exhibit No.	Description
99.1	—	Unaudited Financial Statements (Unaudited) of Symphony Icon, Inc. as of and for the Six Months Ended June 30, 2010 and 2009 and the Period from April 30, 2007 (Inception) to June 30, 2010.
99.2	—	Unaudited Pro Forma Combined Financial Information for the Year Ended December 31, 2009, as of and for the Six Months Ended June 30, 2010 and for the Nine Months Ended September 30, 2010.

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Lexicon Pharmaceuticals, Inc.
Date: March 15, 2011	By:	/s/ Brian T. Crum
		Brian T. Crum
		VicePresident and General Counsel

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Index to Exhibits

Exhibit No.	Description
99.1	—	Financial Statements (Unaudited) of Symphony Icon, Inc. as of and for the Six Months Ended June 30, 2010 and 2009 and the Period from April 30, 2007 (Inception) to June 30, 2010.
99.2	—	Unaudited Pro Forma Combined Financial Information for the Year Ended December 31, 2009, as of and for the Six Months Ended June 30, 2010 and for the Nine Months Ended September 30, 2010.

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EX-99.1

Exhibit 99.1

Symphony Icon, Inc.

(A Wholly Owned Subsidiary of Symphony Icon Holdings LLC)

(A Development Stage Company)

Financial Statements (Unaudited)

Six Months Ended June 30, 2010 and 2009 and the Period from

April 30, 2007 (Inception) to June 30, 2010

Contents

Unaudited Balance Sheets	2
Unaudited Statements of Operations	3
Unaudited Statements of Cash Flows	4
Unaudited Notes to Financial Statements	5

Symphony Icon, Inc.

(A Wholly Owned Subsidiary of Symphony Icon Holdings LLC)

(A Development Stage Company)

Unaudited Balance Sheets

(in thousands, except share data)

	June 30,			December 31,
	2010			2009
Assets
Current assets:
Cash and cash equivalents	$	5,406		$	5,418
Prepaid expenses	105			45
Prepaid clinical trial expenses from a related party	396			689
Total current assets	5,907			6,152
Total assets	$	5,907		$	6,152
Liabilities and members' equity
Current liabilities:
Payable to related parties	$	779		$	511
Accrued clinical trial expenses to a related party	338			141
Accrued expenses	—			80
Deferred revenue	2,790			3,420
Total current liabilities	3,907			4,152
Stockholder's equity:
Common stock, $0.01 par value; 100,000 shares authorized, 45,000 shares issued and outstanding	—			—
Additional paid-in capital	45,000			45,000
Deficit accumulated during the development stage	(43,000		)	(43,000		)
Total stockholder's equity	2,000			2,000
Total liabilities and stockholder's equity	$	5,907		$	6,152

See accompanying notes.

Symphony Icon, Inc.

(A Wholly Owned Subsidiary of Symphony Icon Holdings LLC)

(A Development Stage Company)

Unaudited Statements of Operations

(in thousands)

	Six Months Ended June 30,			Six Months Ended June 30,			Period from April 30 2007 (Inception) to June 30,
	2010			2009			2010
Operating revenues:	$	5,631		$	—		$	6,461
Operating expenses:
Research and development	5,271			5,897			48,891
General and administrative	362			372			2,448
Total operating expenses	5,633			6,269			51,339
Loss from operations	(2		)	(6,269		)	(44,878		)
Interest income	2			23			1,878
Net loss	$	—		$	(6,246	)	$	(43,000	)

See accompanying notes.

Symphony Icon, Inc.

(A Wholly Owned Subsidiary of Symphony Icon Holdings LLC)

(A Development Stage Company)

Unaudited Statements of Cash Flows

(in thousands)

	Six Months Ended June 30,						Period From April 30, 2007 (Inception) to June 30,
	2010			2009			2010
Operating activities
Net loss	$	—		$	(6,246	)	$	(43,000	)
Adjustment to reconcile net loss to net cash used in operating activities:
Change in operating assets and liabilities:
Prepaid expenses	(60		)	(37		)	(105		)
Prepaid clinical trial expenses - related party	293			(244		)	(396		)
Payable to related parties	225			(811		)	736
Accrued clinical trial expenses - related party	197			(1,498		)	338
Accrued expenses	(37		)	(39		)	43
Deferred revenue	(630		)	—			2,790
Net cash used in operating activities	(12		)	(8,875		)	(39,594		)
Financing activities
Issuance of common stock	—			—			45,000
Net cash provided by financing activities	—			—			45,000
Net (decrease) increase in cash	(12		)	(8,875		)	5,406
Cash and cash equivalents at beginning of period	5,418			16,610			—
Cash and cash equivalents at end of period	$	5,406		$	7,735		$	5,406

See accompanying notes.

Symphony Icon, Inc.

(A Wholly Owned Subsidiary of Symphony Icon Holdings LLC)

(A Development Stage Company)

Unaudited Notes to Financial Statements

June 30, 2010

1. Organization and Significant Accounting Principles

Symphony Icon, Inc. (the Company) was organized as a Delaware corporation on April 30, 2007. The Company was a wholly owned subsidiary of Symphony Icon Holdings LLC (Holdings) prior to July 30, 2010, at which time it became a wholly owned subsidiary of Lexicon Pharmaceuticals, Inc. (Lexicon).

The Company is a biopharmaceutical company formed to collaborate with Lexicon, in the development of two clinical stage programs: LG103, which studies the effects of several related compounds in the treatment of irritable bowel syndrome and other gastrointestinal illnesses, and LG617, which targets the treatment of cognitive and attention-impairment disorders (the Programs).

The Company began operations on June 15, 2007, and is currently in the development stage, consisting primarily of research, development, and clinical activities. The Company does not expect to become profitable over the next several years while it continues to develop its technologies. There can be no assurance that the Company's efforts with regard to these matters will be successful.

Symphony Capital Partners, L.P., and the investors in Symphony Icon Investors LLC (collectively, the Investors) contributed to Holdings initial funds in an aggregate amount of $60 million. From this initial capital contribution, Holdings used $45 million to acquire 100% of the common stock of the Company. The remaining $15 million was used by Holdings to acquire 4,781,639 shares of Lexicon stock. Under certain conditions, Lexicon could be required to contribute some or all of this $15 million to fund the operations of the Company (see Note 3).

Prior to July 30, 2010, RRD International, LLC (RRD) managed the overall operations of the Company, and Lexicon was primarily responsible for the Company's development plan and development budget (see Note 3).

The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.

In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six-month period ended June 30, 2010 are not necessarily indicative of the results that may be expected for the year ended December 31, 2010.

2. Fair Value of Financial Instruments

The Company uses various inputs in determining the fair value of its investments and measures these assets on an annual basis. Financial assets recorded at fair value in the balance sheet are categorized by the level of objectivity associated with the inputs used to measure their fair value. The following levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these financial assets:

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, market corroborated inputs, etc.)

Level 3 - significant unobservable inputs (including the Company's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the credit risk associated with investing in those securities. All of the Company's cash and cash equivalents are considered Level 1 financial assets at June 30, 2010 and December 31, 2009.

3. Related-Party Transactions

The Company has entered into several agreements with related parties in the ordinary course of business to license intellectual property, to procure administrative and clinical development support services, to conduct clinical trials, to grant a purchase option, and to obtain funding.

Technology License Agreement and Novated and Restated Technology License Agreement

On June 15, 2007, Lexicon and Holdings entered into a technology license agreement, which was subsequently superseded by a novated and restated technology license agreement (the Novated TLA) among the Company, Lexicon, and Holdings. The Novated TLA granted the Company the exclusive right to use technology, know-how, patents, and other intellectual property rights related to the design, development, manufacture, and use of the relevant compounds and products that contain these compounds, with an exclusive sublicense back to Lexicon for the limited purposes of developing, making, using, and importing said compounds. This agreement was terminated on July 30, 2010, upon the exercise of purchase option as discussed below.

Research and Development Agreement and Amended and Restated Research and Development Agreement

On June 15, 2007, Lexicon and Holdings entered into a research and development agreement, which was subsequently superseded by an amended and restated research and development agreement among the Company, Lexicon, and Holdings, whereby all the initial rights and obligations of Holdings under the research and development agreement were assigned and transferred to and assumed by the Company. Under the agreement, Lexicon was primarily responsible for implementation of the Company's development plan in accordance with the development budget, subject to oversight of a joint development committee. The Company compensated Lexicon for actual costs incurred, including both Lexicon personnel and third parties, as these costs are reported to the Company. Lexicon also acted as the Company's FDA sponsor for each of the research programs. This agreement was terminated on July 30, 2010, upon the exercise of the purchase option as discussed below.

For the six months ended June 30, 2010 and 2009, the Company recognized $5.3 million and $5.9 million, respectively, in total expenses underthis agreement.

RRD Services Agreement

On June 15, 2007, the Company entered into a services agreement with RRD, a related party (the RRD Agreement). Under this agreement, RRD provided overall management and supervision of the Company, including hiring and discharging vendors, compensating Lexicon for its fees and expenses under the amended and restated research and development agreement, providing employees to serve as officers of the Company, maintaining the Company's financial records, and performing all day-to-day administrative functions of the Company. RRD was also required to provide services to the Company in support of the implementation of its development plan, including but not limited to the appointment of certain RRD executive staff members to serve on the joint development committee.

Under the RRD Agreement, the Company must pay RRD a service fee equivalent to $43,333 per month. The Company must also reimburse RRD for all reasonable out of pocket expenses, including travel. Additionally, RRD arranged for the provision of legal, audit, income tax preparation, and other professional services to the Company by independent contractors, the billings for which the Company pays directly. This agreement was terminated on July 30, 2010, upon the exercise of the purchase option as discussed below.

During each of the six months ended June 30, 2010 and 2009, the Company incurred $307,000 in total fees and out-of-pocket expenses, including travel, under the RRD Agreement.

Purchase Option Agreement

On June 15, 2007, the Company entered into a purchase option agreement with Lexicon and Holdings, pursuant to which, among other things, Holdings granted Lexicon an option to purchase all of the equity securities of the Company on terms specified in the purchase option agreement. This option was exercisable by Lexicon during the period commencing on and including June 15, 2008, and ending on and including the earlier of (a) June 15, 2011, (b) the ninetieth calendar day immediately following the first date on which an internally prepared, unaudited balance sheet of the Company (prepared in accordance with accounting principles generally accepted in the United States of America) is delivered to Lexicon stating that the aggregate amount of working capital held by the Company is less than $2 million, thereby creating a “balance sheet deficiency,” and (c) the ninetieth calendar day following the first day on which the Company notifies Lexicon that all programs have been discontinued. Under certain conditions, the Company's Board of Directors could require Lexicon to contribute up to $15 million to the Company to prevent or delay a balance sheet deficiency. Additionally, with certain limitations, Lexicon could elect to further extend the purchase option exercise period, but not beyond June 15, 2011, by providing additional funding to the Company to prevent a balance sheet deficiency.

The purchase price was up to $90 million, depending on when the purchase option was exercised. At Lexicon's sole discretion, a portion of the option price could be paid in shares of its common stock, but only to the extent that the stock component did not exceed the lower of (a) 40% of the purchase price and (b) 10% of the then outstanding shares of Lexicon common stock.

On July 30, 2010, the Company entered into an Amended and Restated Purchase Option Agreement with Lexicon and Holdings and Lexicon simultaneously exercised the Purchase Option, thereby reacquiring the Programs. Pursuant to the amended terms of the purchase option, Lexicon paid Holdings $10 million and agreed to make up to $80 million in additional base and contingent payments.

Subscription Agreement and Research Cost Sharing, Payment and Extension Agreement

Holdings purchased 45,000 shares of the Company's common stock on June 15, 2007, for $45 million. In addition, the Company entered into a research cost sharing, payment and extension agreement with Holdings and Lexicon, whereby under certain conditions, the Company's Board of Directors could require Lexicon to contribute up to $15 million to the Company, and Lexicon could elect to provide separate additional funding for one or more of the Programs. Any such supplemental funding provided to the Company by Lexicon could not expand the Company's development plan beyond its then-current scope nor extend Lexicon's purchase option exercise period beyond June 15, 2011.

Through June 30, 2010, pursuant to Board of Director resolutions, Lexicon provided funding to the Company in amounts totaling $9.3 million. As of June 30, 2010, $6.5 million of Lexicon's funding has been recognized as revenue, while the remaining $2.8 million is recorded as deferred income that would be recognized as revenue in monthly increments over future periods as expenditures were incurred by the Company.

EX-99.2

Exhibit 99.2

Lexicon Pharmaceuticals, Inc.

Unaudited Pro Forma Combined Financial Statements

On July 30, 2010, Lexicon Pharmaceuticals, Inc. (“Lexicon”) entered into an amended and restated purchase option agreement (the “Amended and Restated Purchase Option Agreement”) with Symphony Icon Holdings LLC (“Holdings”) and Symphony Icon, Inc. (“Symphony Icon”), amending and restating its purchase option agreement with Holdings and Symphony Icon dated June 15, 2007.  

Concurrently with the execution of the Amended and Restated Purchase Option Agreement on July 30, 2010, Lexicon exercised its exclusive purchase option (the “Purchase Option”) thereunder to acquire all of the equity of Symphony Icon, thereby reacquiring all rights to the drug candidates for which Lexicon had previously granted Symphony Icon an exclusive license under its intellectual property rights.  Pursuant to its exercise of the Purchase Option, Lexicon paid Holdings $10 million and agreed to make up to $80 million in additional deferred and contingent payments.

Prior to January 1, 2010, Lexicon's financial statements included the accounts of Symphony Icon, for which Lexicon was the primary beneficiary and therefore had consolidated the financial condition and results of operations of Symphony Icon under variable interest entity accounting. Upon the adoption of a new accounting pronouncement regarding variable interest entities on January 1, 2010, Lexicon determined that it was no longer the primary beneficiary of Symphony Icon, and therefore did not include the financial condition and results of operations of Symphony Icon in its consolidated financial statements from the period from January 1, 2010 through the exercise of the Purchase Option on July 30, 2010.

The accompanying unaudited pro forma financial information reflects the impact of the purchase of Symphony Icon on Lexicon's financial position and operating results. The unaudited pro forma combined statements of operations for the year ended December 31, 2009, for the six months ended June 30, 2010 and for the nine months ended September 30, 2010 are based on the historical statements of operations of Lexicon for such periods after giving effect to the Symphony Icon acquisition as if it had occurred on January 1, 2009. The unaudited pro forma combined balance sheet as of June 30, 2010 is based on the historical balance sheets of Lexicon as of June 30, 2010, adjusted to reflect the impact of the acquisition of Symphony Icon as if it had occurred on June 30, 2010. The unaudited pro forma combined balance sheet as of September 30, 2010 has not been included as Lexicon's reported balance sheet as of September 30, 2010 already gives effect to the acquisition of Symphony Icon. The unaudited pro forma financial information should be read in conjunction with Lexicon's consolidated financial statements and thereto contained in Lexicon's 2009 Annual Report on Form 10-K filed on March 8, 2010, and Lexicon's Quarterly Report on Form 10-Q for the nine months ended September 30, 2010, filed on November 8, 2010.

The unaudited pro forma combined financial statements have been prepared by management. They are provided for illustrative purposes only and are not necessarily indicative of the results of operations that might have occurred had the transaction been completed on the respective dates presented, nor are they necessarily indicative of Lexicon's future operating results.

Lexicon Pharmaceuticals, Inc.

Unaudited Pro Forma Combined Statement of Operations

Year Ended December 31, 2009

(In thousands, except per share amounts)

	Lexicon (a)			Pro Forma Adjustments				Pro Forma Lexicon
Revenues:
Collaborative research	$	9,334		$	—			$	9,334
Subscription and license fees	1,366			—				1,366
Total revenues	10,700			—				10,700
Operating expenses:				—
Research and development	81,238			—				81,238
General and administrative	19,418			—				19,418
Total operating expenses	100,656			—				100,656
Loss from operations	(89,956		)	—				(89,956		)
Gain on investments, net	1,173			—				1,173
Interest income	880			—				880
Interest expense	(2,966		)	—				(2,966		)
Other income (expense), net	(2,550		)	2,141			(b)	(409		)
Consolidated net loss before taxes	(93,419		)	2,141				(91,278		)
Income tax benefit	102			—				102
Consolidated net loss	(93,317		)	2,141				(91,176		)
Less: net loss attributable to Symphony Icon, Inc.	10,537			(10,537		)	(c)	—
Net loss attributable to Lexicon Pharmaceuticals, Inc.	$	(82,780	)	$	(8,396	)		$	(91,176	)
Net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted	$	(0.57	)					$	(0.63	)
Shares used in computing net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted	145,465							145,465

(a)     Lexicon consolidated the results of Symphony Icon through January 1, 2010 in accordance with ASC 810. Therefore, Symphony Icon's results are not separately presented.

(b)     Adjustment to remove the amortization of the Purchase Option asset for Lexicon's right to purchase Symphony Icon of $2.1 million during the year ended December 31, 2009.

(c)     Adjustment to remove the net loss attributable to the equity holders of Symphony Icon.

Lexicon Pharmaceuticals, Inc.

Unaudited Pro Forma Combined Statement of Operations

Six Months Ended June 30, 2010

(In thousands, except per share amounts)

	Lexicon			Icon			Pro Forma Adjustments				Pro Forma Lexicon
Revenues:
Collaborative research	$	2,805		$	5,631		$	(5,631	)	(a)	$	2,805
Subscription and license fees	69			—			—				69
Total revenues	2,874			5,631			(5,631		)		2,874
Operating expenses:
Research and development	41,327			5,271			(5,271		)	(a)	41,327
General and administrative	10,587			362			(362		)	(a)	10,587
Total operating expenses	51,914			5,633			(5,633		)		51,914
Loss from operations	(49,040		)	(2		)	2				(49,040		)
Gain on investments, net	141			—			—				141
Interest income	417			2			(2		)	(a)	417
Interest expense	(1,456		)	—			—				(1,456		)
Other income (expense), net	(1,325		)	—			1,357			(b)	32
Net loss attributable to Lexicon Pharmaceuticals, Inc.	$	(51,263	)	$	—		$	1,357			$	(49,906	)
Net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted	$	(0.19	)								$	(0.19	)
Shares used in computing net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted	267,709										267,709

(a)     Adjustments to remove the operations of Symphony Icon for the six months ended June 30, 2010, as Lexicon funded all operations during this period. As Symphony Icon used the funding provided by Lexicon, Symphony Icon recorded revenue and expense, and Lexicon recorded expense.

(b)     Adjustment to remove Lexicon's amortization of the Purchase Option asset for Lexicon's right to purchase Symphony Icon of $1.4 million during the six months ended June 30, 2010.

Lexicon Pharmaceuticals, Inc.

Unaudited Pro Forma Combined Statement of Operations

Nine Months Ended September 30, 2010

(In thousands, except per share amounts)

	Lexicon			Icon			Pro Forma Adjustments				Pro Forma Lexicon
Revenues:
Collaborative research	$	3,437		$	6,752		$	(6,752	)	(a)	$	3,437
Subscription and license fees	218			—			—				218
Total revenues	3,655			6,752			(6,752		)		3,655
Operating expenses:
Research and development	61,413			6,305			(6,305		)	(a)	61,413
General and administrative	15,535			450			(450		)	(a)	15,535
Total operating expenses	76,948			6,755			(6,755		)		76,948
Loss from operations	(73,293		)	(3		)	3				(73,293		)
Gain on investments, net	141			—			—				141
Interest income	468			3			(3		)	(a)	468
Interest expense	(2,093		)	—			—				(2,093		)
Other expense, net	(4,025		)	—			3,957			(b)	(68		)
Net loss before taxes	(78,802		)	—			3,957				(74,845		)
Income tax benefit	26			—			—				26
Net loss attributable to Lexicon Pharmaceuticals, Inc.	$	(78,776	)	$	—		$	3,957			$	(74,819	)
Net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted	$	(0.27	)								$	(0.26	)
Shares used in computing net loss attributable to Lexicon Pharmaceuticals, Inc. per common share, basic and diluted	291,196										291,196

(a)     Adjustments to remove the operations of Symphony Icon for the period from January 1, 2010 to July 30, 2010, as Lexicon funded all operations during 2010 through the acquisition date of July 30, 2010. As Symphony Icon used the funding provided by Lexicon, Symphony Icon recorded revenue and expense, and Lexicon recorded expense.

(b)     Adjustment to remove Lexicon's amortization of the Purchase Option asset for Lexicon's right to purchase Symphony Icon of $4.0 million during the nine months ended September 30, 2010.

Lexicon Pharmaceuticals, Inc.

Unaudited Pro Forma Combined Balance Sheet

As of June 30, 2010

(In thousands)

	Lexicon			Icon			Pro Forma Adjustments				Pro Forma Lexicon
Assets
Current assets:
Cash and cash equivalents	$	247,698		$	5,406		$	(10,000	)	(a)	$	243,104
Short-term investments	24,083			—			—				24,083
Accounts receivable, net	2,083			—			(736		)	(e)	1,347
Prepaid expenses and other current assets	8,589			501			(5,390		)	(b)	3,700
Total current assets	282,453			5,907			(16,126		)		272,234
Property and equipment, net	56,552			—			—				56,552
Goodwill	25,798			—			18,745			(a)	44,543
Other intangible assets	—			—			53,557			(a)	53,557
Other assets	352			—			—				352
Total assets	$	365,155		$	5,907		$	56,176			$	427,238
Liabilities and Equity
Current liabilities:
Accounts payable	$	3,547		$	779		$	(736	)	(e)	$	3,590
Accrued liabilities	6,285			338			—				6,623
Current portion of deferred revenue	514			2,790			(2,790		)	(c)	514
Current portion of long-term debt	17,100			—			—				17,100
Total current liabilities	27,446			3,907			(3,526		)		27,827
Deferred revenue, net of current portion	14,212			—			—				14,212
Long-term debt	27,922			—			—				27,922
Deferred tax liability	—			—			18,745			(a)	18,745
Other long-term liabilities	540			—			45,557			(a)	46,097
Total liabilities	70,120			3,907			60,776				134,803
Equity:
Common stock	338			—			—				338
Additional paid-in capital	917,828			45,000			(45,000		)	(d)	917,828
Accumulated deficit	(622,894		)	(43,000		)	40,400			(d)	(625,494		)
Treasury stock	(237		)	—			—				(237		)
Total equity	295,035			2,000			(4,600		)		292,435
Total liabilities and equity	$	365,155		$	5,907		$	56,176			$	427,238

(a)     Adjustments to reflect the purchase price paid for the acquisition of Symphony Icon ($10.0 million in cash and $45.6 million in long-term liabilities) and assets and liabilities acquired ($18.7 million in goodwill, $53.6 million in other intangible assets, and $18.7 million in deferred tax liability).

(b)     Adjustments to remove prepaid expenses of $2.8 million that had been recorded by Lexicon related to Lexicon's funding of Symphony Icon's operations and remove the Purchase Option asset as of June 30, 2010 of $2.6 million. Lexicon provided funding to Symphony Icon, and prior to using that funding, Lexicon recorded this as a prepaid expense and Symphony Icon recorded this as deferred revenue.

(c)     Adjustment to remove deferred revenue of $2.8 million that had been recorded by Symphony Icon related to Lexicon's funding of Symphony Icon's operations.

(d)     Adjustments to remove the net equity of Symphony Icon of $2.0 million as of June 30, 2010 and the net balance of the Purchase Option asset as of June 30, 2010 of $2.6 million.

(e)     Adjustments to remove amounts due to Lexicon from Symphony Icon.