Delaware | 001-32157 | 84-1318182 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
12390 El Camino Real, Suite 150, San Diego, CA | 92130 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 9.01 | Financial Statements and Exhibits. |
| Audited balance sheets of SynthRx, Inc. (a development stage enterprise) as of December
31, 2010 and 2009 and the related audited statements of operations, stockholders deficit
and cash flows for the years then ended and for the period from inception (January 12,
2004) through December 31, 2010, and the notes related thereto |
| Unaudited pro forma condensed combined balance sheet as of December 31, 2010 and the
related unaudited pro forma condensed combined statement of operations for the year then
ended, and the notes related thereto |
ADVENTRX Pharmaceuticals, Inc. |
||||
Dated: June 3, 2011 | By: | /s/ Patrick L. Keran | ||
Name: | Patrick L. Keran | |||
Title: | President and Chief Operating Officer | |||
Exhibit | ||||
No. | Description | |||
2.1 | *(1) | Agreement and Plan of Merger, dated February 12, 2011, by and among the
registrant, SRX Acquisition Corporation, SynthRx, Inc. and, solely with
respect to Sections 2 and 8, the Stockholders Agent |
||
10.1 | *(1) | Stockholders Voting and Transfer Restriction Agreement, dated February
12, 2011, by and among the registrant, each of the principal
stockholders of SynthRx, Inc. and, solely with respect to Section 3(c),
the Stockholders Agent |
||
10.2 | *(1) | License Agreement, dated June 8, 2004, between SynthRx, Inc. and CytRx
Corporation, as amended by that certain Letter Agreement Re: Amendment
to License Agreement, dated August 3, 2006, and that certain Agreement
and Amendment No. 2 to License Agreement, dated December 1, 2010 |
||
23.1 | Consent of J.H. Cohn LLP |
|||
99.1 | (1) | Press Release issued by ADVENTRX Pharmaceuticals, Inc. on April 11, 2011 |
||
99.2 | Audited balance sheets of SynthRx, Inc. (a development stage
enterprise) as of December 31, 2010 and 2009 and the related audited
statements of operations, stockholders deficit and cash flows for the
years then ended and for the period from inception (January 12, 2004)
through December 31, 2010, and the notes related thereto |
|||
99.3 | Unaudited pro forma condensed combined balance sheet as of December 31,
2010 and the related unaudited pro forma condensed combined statement
of operations for the year then ended, and the notes related thereto |
* | Certain confidential portions of this exhibit were omitted by means of redacting a portion of
the text. Application has been made to the Securities and Exchange Commission seeking
confidential treatment of such confidential portions under Rule 24b-2 under the Securities
Exchange Act of 1934, as amended. This exhibit has been filed separately with the Securities
and Exchange Commission without redactions in connection with registrants confidential
treatment request. |
|
(1) | Filed with the registrants Current Report on Form 8-K on April 11, 2011 (SEC file number
001-32157-11752769) |
Page | ||||
Report of Independent Public Accountants |
2 | |||
Balance Sheets December 31, 2010 and 2009 |
3 | |||
Statements of Operations Years Ended December 31, 2010 and 2009 and the Period from Inception (January 12, 2004) through December 31, 2010 |
4 | |||
Statements of Stockholders Deficit Years Ended December 31, 2010 and 2009 and the Period from Inception (January 12, 2004) through December 31, 2010 |
5 | |||
Statements of Cash Flows Years Ended December 31, 2010 and 2009 and the Period from Inception (January 12, 2004) through December 31, 2010 |
6 | |||
Notes to Financial Statements |
7-12 |
1
2
December 31, | ||||||||
2010 | 2009 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash |
$ | 54,533 | $ | 31,663 | ||||
Certificates of deposit |
12,270 | | ||||||
Total current assets |
66,803 | 31,663 | ||||||
Equipment, net |
19,257 | | ||||||
Long-term investments in certificates of deposit |
| 12,088 | ||||||
Total assets |
$ | 86,060 | $ | 43,751 | ||||
LIABILITIES AND STOCKHOLDERS DEFICIT |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 24,587 | $ | 2,000 | ||||
Accrued expenses |
7,050 | 2,577 | ||||||
Total current liabilities |
31,637 | 4,577 | ||||||
Notes payable stockholder |
275,000 | 75,000 | ||||||
Total liabilities |
306,637 | 79,577 | ||||||
Commitments and contingencies |
||||||||
Stockholders deficit: |
||||||||
Common stock, $0.001 par value; 100,000 shares
authorized; 1,000 shares issued and outstanding |
1 | 1 | ||||||
Additional paid-in capital |
1,045,268 | 1,045,268 | ||||||
Deficit accumulated during the development stage |
(1,265,846 | ) | (1,081,095 | ) | ||||
Total stockholders deficit |
(220,577 | ) | (35,826 | ) | ||||
Total liabilities and stockholders deficit |
$ | 86,060 | $ | 43,751 | ||||
3
Period from | ||||||||||||
Inception | ||||||||||||
Years Ended December 31, | (January 12, 2004) through | |||||||||||
2010 | 2009 | December 31, 2010 | ||||||||||
Net sales |
$ | | $ | | $ | | ||||||
Cost of goods sold |
| | | |||||||||
Gross margin |
| | | |||||||||
Operating expenses: |
||||||||||||
Research and development |
139,570 | 17,100 | 289,655 | |||||||||
General and administrative |
40,890 | 8,460 | 561,927 | |||||||||
In-process research and development |
| | 409,068 | |||||||||
Total operating expenses |
180,460 | 25,560 | 1,260,650 | |||||||||
Loss from operations |
(180,460 | ) | (25,560 | ) | (1,260,650 | ) | ||||||
Interest income |
182 | 324 | 1,854 | |||||||||
Interest expense |
(4,473 | ) | (2,577 | ) | (7,050 | ) | ||||||
Loss before income taxes |
(184,751 | ) | (27,813 | ) | (1,265,846 | ) | ||||||
Provision for income taxes |
| | | |||||||||
Net loss |
$ | (184,751 | ) | $ | (27,813 | ) | $ | (1,265,846 | ) | |||
4
Deficit | ||||||||||||||||||||
Accumulated | ||||||||||||||||||||
Additional | During the | Total | ||||||||||||||||||
Common Stock | Paid-in | Development | Stockholders | |||||||||||||||||
Shares | Amount | Capital | Stage | Deficit | ||||||||||||||||
Balance at January 12, 2004 (date of inception) |
| $ | | $ | | $ | | $ | | |||||||||||
Common stock issued (June 8, 2004) |
1,000 | 1 | 909,068 | | 909,069 | |||||||||||||||
Stock-based compensation |
| | 136,200 | | 136,200 | |||||||||||||||
Net loss January 12, 2004 through December 31, 2008 |
(1,053,282 | ) | (1,053,282 | ) | ||||||||||||||||
Balance, December 31, 2008 |
1,000 | 1 | 1,045,268 | (1,053,282 | ) | (8,013 | ) | |||||||||||||
Net loss |
(27,813 | ) | (27,813 | ) | ||||||||||||||||
Balance, December 31, 2009 |
1,000 | 1 | 1,045,268 | (1,081,095 | ) | (35,826 | ) | |||||||||||||
Net loss |
(184,751 | ) | (184,751 | ) | ||||||||||||||||
Balance, December 31, 2010 |
1,000 | $ | 1 | $ | 1,045,268 | $ | (1,265,846 | ) | $ | (220,577 | ) | |||||||||
5
Period from | ||||||||||||
Inception | ||||||||||||
Years Ended December 31, | (January 12, 2004) through | |||||||||||
2010 | 2009 | December 31, 2010 | ||||||||||
Operating activities: |
||||||||||||
Net loss |
$ | (184,751 | ) | $ | (27,813 | ) | $ | (1,265,846 | ) | |||
Write off of in-process research and development |
| | 409,068 | |||||||||
Stock-based compensation |
| | 136,200 | |||||||||
Adjustments to reconcile net loss to net cash
used in operating activities: |
||||||||||||
Depreciation and amortization |
1,878 | | 1,878 | |||||||||
Increase (decrease) in: |
||||||||||||
Accounts payable |
22,587 | (7,699 | ) | 24,588 | ||||||||
Accrued expenses |
4,473 | 2,577 | 7,050 | |||||||||
Net cash used in operating activities |
(155,813 | ) | (32,935 | ) | (687,062 | ) | ||||||
Investing activities: |
||||||||||||
Investments in certificates of deposit |
(182 | ) | (324 | ) | (12,270 | ) | ||||||
Purchase of equipment |
(21,135 | ) | | (21,135 | ) | |||||||
Net cash used in investing activities |
(21,317 | ) | (324 | ) | (33,405 | ) | ||||||
Financing activities: |
||||||||||||
Capital contribution |
| | 500,000 | |||||||||
Stockholder loans |
200,000 | 50,000 | 275,000 | |||||||||
Net cash provided by financing activities |
200,000 | 50,000 | 775,000 | |||||||||
Net increase in cash |
22,870 | 16,741 | 54,533 | |||||||||
Cash at beginning of period |
31,663 | 14,922 | | |||||||||
Cash at end of period |
$ | 54,533 | $ | 31,663 | $ | 54,533 | ||||||
6
7
8
2010 | 2009 | |||||||
Microscope |
$ | 21,135 | $ | | ||||
Less accumulated depreciation |
(1,878 | ) | | |||||
Totals |
$ | 19,257 | $ | | ||||
2010 | 2009 | |||||||
Loan (A) |
$ | 25,000 | $ | 25,000 | ||||
Loan (B) |
50,000 | 50,000 | ||||||
Loan (C) |
100,000 | | ||||||
Loan (D) |
100,000 | | ||||||
Totals |
275,000 | 75,000 | ||||||
Less current portion |
| | ||||||
Long-term portion |
$ | 275,000 | $ | 75,000 | ||||
9
(A) | On June 30, 2008, the Company borrowed $25,000 from Dr.
Robert Hunter. The note payable is due in full on or before June 30, 2013.
Interest at 3.84% is due annually beginning July 1, 2010. |
(B) | On January 31, 2009, the Company borrowed $50,000 from Dr.
Robert Hunter. The note payable is due in full on or before December 2013.
Interest at 2.48% is due annually beginning January 1, 2011. |
(C) | On March 29, 2010, the Company borrowed $100,000 from Dr.
Robert Hunter. The note payable is due in full on or before December 31, 2014.
Interest at 2.48% is due annually beginning April 1, 2011. |
(D) | On October 29, 2010, the Company borrowed $100,000 from Dr.
Robert Hunter. The note payable is due in full on or before December 31, 2014.
Interest at 2.48% is due annually beginning November 1, 2011. |
Fiscal | ||||
Year | Amount | |||
2011 |
$ | | ||
2012 |
| |||
2013 |
75,000 | |||
2014 |
200,000 | |||
Total |
$ | 275,000 | ||
10
Deferred tax assets: | 2010 | 2009 | ||||||
Net operating loss carryforward |
$ | 245,848 | $ | 179,506 | ||||
Intangible assets |
73,486 | 78,658 | ||||||
Other |
2,522 | 876 | ||||||
Total deferred tax assets |
321,856 | 259,040 | ||||||
Less: valuation allowance |
(321,856 | ) | (259,040 | ) | ||||
Total deferred tax assets, net of valuation allowance |
$ | | $ | | ||||
11
12
1
| the accompanying notes to the
unaudited pro forma condensed combined
financial statements included in this
Exhibit 99.3 to this Current Report on Form
8-K/A (Amendment No. 1); |
| the separate historical audited
financial statements of SynthRx as of
December 31, 2010 and 2009 and for the
years then ended and for the period from inception (January 12,
2004) through December 31, 2010 included as Exhibit 99.2
to this Current Report on Form 8-K/A
(Amendment No. 1); |
||
| the separate historical audited
consolidated financial statements of
ADVENTRX as of December 31, 2010 and 2009
and for the years then ended and for the period from inception (June 12,
1996) through December 31, 2010 included in
ADVENTRXs Annual Report on Form 10-K filed
with the Securities and Exchange Commission
on March 10, 2011; and |
||
| ADVENTRXs Current Report on Form 8-K
related to its acquisition of SynthRx filed
with the Securities and Exchange Commission
on April 11, 2011. |
2
Pro Forma | Pro Forma | |||||||||||||||
ADVENTRX | SynthRx | Adjustments | Combined | |||||||||||||
Assets |
||||||||||||||||
Current assets: |
||||||||||||||||
Cash |
$ | 27,978,823 | $ | 66,803 | $ | | $ | 28,045,626 | ||||||||
Interest and other receivables |
1,980 | | | 1,980 | ||||||||||||
Prepaid expenses |
428,276 | | | 428,276 | ||||||||||||
Total current assets |
28,409,079 | 66,803 | | 28,475,882 | ||||||||||||
Property and equipment, net |
44,254 | 19,257 | | 63,511 | ||||||||||||
Goodwill |
| | 545,247 | (a) | 545,247 | |||||||||||
Intangible assets, net |
| | 6,340,000 | (b) | 6,340,000 | |||||||||||
Other assets |
33,484 | | 300,481 | (c) | 333,965 | |||||||||||
Total assets |
$ | 28,486,817 | $ | 86,060 | $ | 7,185,728 | $ | 35,758,605 | ||||||||
Liabilities and Stockholders Equity |
||||||||||||||||
Current liabilities: |
||||||||||||||||
Accounts payable |
$ | 479,780 | $ | 24,587 | $ | 276,979 | (d,e) | $ | 781,346 | |||||||
Accrued liabilities |
864,857 | 7,050 | (7,050 | )(d) | 864,857 | |||||||||||
Accrued compensation and payroll taxes |
456,839 | | | 456,839 | ||||||||||||
Total current liabilities |
1,801,476 | 31,637 | 269,929 | 2,103,042 | ||||||||||||
Notes payable |
| 275,000 | (275,000 | )(d) | | |||||||||||
Contingent consideration |
| | 2,549,103 | (f)* | 2,549,103 | |||||||||||
Stockholders equity (deficit): |
||||||||||||||||
Common stock |
15,480 | 1 | 2,800 | (g) | 18,281 | |||||||||||
Additional paid-in capital |
182,798,982 | 1,045,268 | 3,373,050 | (g) | 187,217,300 | |||||||||||
Deficit accumulated during the development stage |
(156,129,121 | ) | (1,265,846 | ) | 1,265,846 | (h) | (156,129,121 | ) | ||||||||
Total
stockholders equity (deficit) |
26,685,341 | (220,577 | ) | 4,641,696 | 31,106,460 | |||||||||||
Total liabilities and stockholders equity |
$ | 28,486,817 | $ | 86,060 | $ | 7,185,728 | $ | 35,758,605 | ||||||||
* | The fair value of the contingent consideration for the Second and Third Milestones
(collectively $1,464,204) will be reclassified to equity if stockholder approval for the issuance
of the Milestone Shares for the Milestone Payments is obtained on or prior to December 31, 2011. |
3
Pro Forma | Pro Forma | |||||||||||||||
ADVENTRX | SynthRx | Adjustments | Combined | |||||||||||||
Grant revenue |
$ | 488,959 | $ | | $ | | $ | 488,959 | ||||||||
Cost of goods sold |
| | | | ||||||||||||
Gross margin |
488,959 | | | 488,959 | ||||||||||||
Operating expenses: |
||||||||||||||||
Research and development |
3,688,762 | 137,692 | | 3,826,454 | ||||||||||||
Selling, general and administrative |
5,320,073 | 40,890 | (275,130 | )(i) | 5,085,833 | |||||||||||
Depreciation and amortization |
19,821 | 1,878 | | 21,699 | ||||||||||||
Total operating expenses |
9,028,656 | 180,460 | (275,130 | ) | 8,933,986 | |||||||||||
Loss from operations |
(8,539,697 | ) | (180,460 | ) | 275,130 | (8,445,027 | ) | |||||||||
Interest income |
92,873 | 182 | | 93,055 | ||||||||||||
Interest expense |
(1,629 | ) | (4,473 | ) | 4,473 | (j) | (1,629 | ) | ||||||||
Other expense |
(2,469 | ) | | | (2,469 | ) | ||||||||||
Loss before income taxes |
(8,450,922 | ) | (184,751 | ) | 279,603 | (8,356,070 | ) | |||||||||
Provision for income taxes |
| | | | ||||||||||||
Net loss |
(8,450,922 | ) | (184,751 | ) | 279,603 | (8,356,070 | ) | |||||||||
Deemed dividends on preferred stock |
(5,639,796 | ) | | | (5,639,796 | ) | ||||||||||
Net loss applicable to common stock |
$ | (14,090,718 | ) | $ | (184,751 | ) | $ | 279,603 | $ | (13,995,866 | ) | |||||
Loss per common share basic and diluted |
$ | (1.07 | ) | $ | (0.88 | ) | ||||||||||
Weighted average shares outstanding basic and diluted |
13,180,583 | 15,981,434 | ||||||||||||||
4
5
Probability | ||||||||
Shares Issued / | Weighted | |||||||
Milestone | To Be Issued | Fair Value | ||||||
Initial consideration (fully vested) |
862,078 | $ | 2,017,263 | |||||
Initial consideration that vests upon achievement of First Milestone |
1,938,773 | 2,103,375 | ||||||
First Milestone phase 3 clinical study first dosing |
1,000,000 | 1,084,900 | ||||||
Second Milestone NDA acceptance |
3,839,400 | 733,403 | ||||||
Third Milestone FDA approval |
8,638,650 | 730,801 | ||||||
Total |
16,278,901 | $ | 6,669,742 | |||||
6
Assets acquired |
$ | 18,513 | ||
Liabilities assumed |
(301,566 | ) | ||
Acquired intangibles: |
||||
In-process research and development |
6,340,000 | |||
Goodwill |
612,795 | |||
Total preliminary estimated purchase price |
$ | 6,669,742 | ||
7
8