XML 17 R8.htm IDEA: XBRL DOCUMENT

IMAGION BIOSYSTEMS SPIN-OUT	6 Months Ended
Jun. 30, 2017
Notes to Financial Statements
Note 3. IMAGION BIOSYSTEMS SPIN-OUT	On November 17, 2016, Senior Scientific, a then wholly owned subsidiary of the Company, merged with and into Imagion Biosystems, Inc., a Nevada company (“Imagion”). Following the merger, Imagion held all of the liabilities, obligations and assets of Senior Scientific and the Company continued as the sole equity holder of Imagion. On November 22, 2016, Imagion issued a Promissory Note in the principal amount of $6,900,000 to the Company (the “Intercompany Note”) payable on the one year anniversary. The Intercompany Note does not accrue interest, provided, however, in the event of a default, interest shall accrue at 10% per annum. During the three months ended June 30, 2017, the Company forgave a portion of the Note, which resulted in a loss on forgiveness of debt in the amount of approximately $6,739,000. As of June 30, 2017, the Company converted the remaining balance of the Note into shares of Imagion’s common stock. As of June 30, 2017, the Company owns 64,099,476 shares of Imagion, resulting in a noncontrolling interest of approximately 29% of Imagion’s issued and outstanding common stock. Based upon Imagion’s latest offering price of $0.15 per share, the fair value of the Imagion shares is $9,615,000.

IMAGION BIOSYSTEMS SPIN-OUT

6 Months Ended

Jun. 30, 2017

On November 17, 2016, Senior Scientific, a then wholly owned subsidiary of the Company, merged with and into Imagion Biosystems, Inc., a Nevada company (“Imagion”). Following the merger, Imagion held all of the liabilities, obligations and assets of Senior Scientific and the Company continued as the sole equity holder of Imagion.

On November 22, 2016, Imagion issued a Promissory Note in the principal amount of $6,900,000 to the Company (the “Intercompany Note”) payable on the one year anniversary. The Intercompany Note does not accrue interest, provided, however, in the event of a default, interest shall accrue at 10% per annum. During the three months ended June 30, 2017, the Company forgave a portion of the Note, which resulted in a loss on forgiveness of debt in the amount of approximately $6,739,000. As of June 30, 2017, the Company converted the remaining balance of the Note into shares of Imagion’s common stock.

As of June 30, 2017, the Company owns 64,099,476 shares of Imagion, resulting in a noncontrolling interest of approximately 29% of Imagion’s issued and outstanding common stock. Based upon Imagion’s latest offering price of $0.15 per share, the fair value of the Imagion shares is $9,615,000.