Delaware | 001-36201 | 56-2358443 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Am Klopferspitz 19 82152 Martinsried |
Germany |
(Address of principal executive offices) |
Vital Therapies, Inc. |
15222-B Avenue of Science San Diego, CA 92128 |
[ ] | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
[ ] | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
[ ] | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
[ ] | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit | Description |
99.1 | |
99.2 | |
99.3 | |
99.4 |
VITAL THERAPIES, INC. | ||
By: /s/ Daniel Vitt | ||
Daniel Vitt Chief Executive Officer |
• | Although all ongoing phase 2 trials with IMU-838 remain blinded, the observed safety results from these trials are consistent with the previously defined reference safety information and no new safety signals have been observed to date. |
• | Patient recruitment for the company’s phase 2, international, multicenter, double-blind, placebo-controlled, randomized, parallel-group trial of IMU-838, in development for the treatment of relapsing-remitting multiple sclerosis (EMPhASIS), is progressing faster than anticipated and is expected to be completed in the first half of 2020. Top-line data is anticipated to be available during the third quarter of 2020. |
• | Patient recruitment for the phase 2, multicenter, randomized, double-blind, placebo-controlled, dose-finding study of IMU-838 in patients with moderate-to-severe ulcerative colitis (CALDOSE-1) was updated based on current recruitment rates and the anticipated impact of supportive measures. Study enrollment is projected to conclude during the second half of 2020. Top-line data is expected to be available in the first quarter of 2021. |
• | Initiation of the phase 2, multicenter, randomized, double-blind, placebo-controlled, dose-finding trial of IMU-838 for the treatment of active Crohn’s disease (CALDOSE-2) is expected to occur during the second half of 2019, as per previous guidance. All preparations are in the advanced stage in anticipation of the interim dosing analysis of CALDOSE-1 in the third quarter of 2019, which will inform the dose selection for CALDOSE-2. |
• | The investigator-sponsored trial of IMU-838 in patients with primary sclerosing cholangitis, which will be conducted at the Mayo Clinic, is expected to start enrollment soon. |
• | Immunic’s earlier stage programs are on track. The company expects to begin its phase 1 double-blind, placebo-controlled, single and multiple ascending dose trials of IMU-935 during September 2019. |
• | Immunic has started preclinical regulatory safety studies of IMU-856, a drug candidate targeting the intestinal barrier function. Initiation of phase 1 clinical trials is expected in the first half of 2020. |
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December 31, | |||||||
2018 | 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 13,072 | $ | 4,504 | |||
Other current assets and prepaid expenses | 259 | 492 | |||||
Total current assets | 13,331 | 4,996 | |||||
Property and equipment, net | 40 | 25 | |||||
Total assets | $ | 13,371 | $ | 5,021 | |||
Liabilities, Preferred Stock and Stockholders’ Deficit | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 1,400 | $ | 254 | |||
Accrued expenses | 416 | 61 | |||||
Other current liabilities | 104 | 107 | |||||
Total current liabilities | 1,920 | 422 | |||||
Commitments and contingencies (note 5) | — | — | |||||
Series A-2 Convertible preferred stock, €1.00 par value, 299,456 shares authorized, issued and outstanding at December 31, 2018 and 2017, Liquidation Preference €46,809 ($53,539) at December 31, 2018 | 34,313 | 15,057 | |||||
Series A-1 Convertible preferred stock, €1.00 par value, 13,541 shares authorized, issued and outstanding at December 31, 2018 and 2017, Liquidation Preference €4,380 ($5,010) at December 31, 2018 | 2,879 | 2,879 | |||||
Stockholders’ deficit: | |||||||
Common stock, €1.00 par value; 50,000 shares authorized, issued and outstanding at December 31, 2018 and 2017 | 56 | 56 | |||||
Accumulated other comprehensive income (loss) | (819 | ) | 43 | ||||
Accumulated deficit | (24,978 | ) | (13,436 | ) | |||
Total stockholders’ deficit | (25,741 | ) | (13,337 | ) | |||
Total liabilities, preferred stock and stockholders’ deficit | $ | 13,371 | $ | 5,021 |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
Operating expenses: | |||||||
Research and development | $ | 9,595 | $ | 8,753 | |||
General and administrative | 2,402 | 1,252 | |||||
Total operating expenses | 11,997 | 10,005 | |||||
Loss from operations | (11,997 | ) | (10,005 | ) | |||
Other income: | |||||||
Interest expense | (1 | ) | (4 | ) | |||
Other income, net | 456 | 47 | |||||
Total other income | 455 | 43 | |||||
Net loss | $ | (11,542 | ) | $ | (9,962 | ) | |
Net loss per share, basic and diluted | $ | (230.84 | ) | $ | (199.24 | ) | |
Weighted-average common shares outstanding, basic and diluted | 50,000 | 50,000 |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
Net loss | $ | (11,542 | ) | $ | $ | (9,962 | ) |
Other comprehensive income (loss): | |||||||
Foreign currency translation | (862 | ) | 477 | ||||
Total comprehensive loss | $ | (12,404 | ) | $ | $ | (9,485 | ) |
Series A-2 Preferred Stock | Series A-1 Preferred Stock | Common Stock | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Deficit | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Balance at January 1, 2017 | 170,834 | $ | 6,967 | 13,541 | $ | 2,879 | 50,000 | $ | 56 | $ | (434 | ) | $ | (3,474 | ) | $ | (3,852 | ) | ||||||||||||||
Net loss | — | — | — | — | — | — | — | (9,962 | ) | (9,962 | ) | |||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 477 | — | 477 | |||||||||||||||||||||||
Issuance of preferred stock | 128,622 | 8,090 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at December 31, 2017 | 299,456 | 15,057 | 13,541 | 2,879 | 50,000 | 56 | 43 | (13,436 | ) | (13,337 | ) | |||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (11,542 | ) | (11,542 | ) | |||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (862 | ) | — | (862 | ) | |||||||||||||||||||||
Issuance of preferred stock | — | 19,256 | — | — | — | — | — | — | — | |||||||||||||||||||||||
Balance at December 31, 2018 | 299,456 | $ | 34,313 | 13,541 | $ | 2,879 | 50,000 | $ | 56 | $ | (819 | ) | $ | (24,978 | ) | $ | (25,741 | ) |
For the Years Ended December 31, | |||||||
2018 | 2017 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (11,542 | ) | $ | (9,962 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation | 15 | 11 | |||||
Loss on disposal of property and equipment | 1 | — | |||||
Changes in operating assets and liabilities: | |||||||
Other current assets and prepaid expenses | 218 | 165 | |||||
Accounts payable | 1,200 | 5 | |||||
Accrued expenses | 369 | 39 | |||||
Other current liabilities | 1 | 78 | |||||
Net cash used in operating activities | (9,738 | ) | (9,664 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (32 | ) | (29 | ) | |||
Net cash used in investing activities | (32 | ) | (29 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of preferred stock | 19,256 | 8,090 | |||||
Net cash provided by financing activities | 19,256 | 8,090 | |||||
Effect of exchange rate changes on cash and cash equivalents | (918 | ) | 450 | ||||
Net change in cash and cash equivalents | 8,568 | (1,153 | ) | ||||
Cash and cash equivalents, beginning of year | 4,504 | 5,657 | |||||
Cash and cash equivalents, end of year | $ | 13,072 | $ | 4,504 | |||
Supplemental disclosure for cash flow information: | |||||||
Cash paid for interest | $ | 1 | $ | 4 |
December 31, | |||||||
2018 | 2017 | ||||||
Office and operating equipment | $ | 50 | $ | 31 | |||
Computer software | 11 | 2 | |||||
61 | 33 | ||||||
Less: accumulated depreciation | (21 | ) | (8 | ) | |||
Property and equipment, net | $ | 40 | $ | 25 |
December 31, | |||||||
2018 | 2017 | ||||||
Accrued clinical and related costs | $ | 197 | $ | 24 | |||
Accrued professional services costs | 173 | 35 | |||||
Accrued other | 46 | 2 | |||||
Total | $ | 416 | $ | 61 |
Total | 2019 | 2020 | 2021 | ||||||||||||
Operating lease obligations | $ | 89 | $ | 31 | $ | 29 | $ | 29 |
• | Voting rights: Holders of the Preferred Shares are entitled to one vote for each Preferred Share held by them. All shares rank equally as to voting and other matters. For shareholders’ meeting resolutions “special majority” (60% or more of shares) is required. |
• | Liquidation preference: In the event of any sale of 50% or more of the Company’s shares, disposal of its tangible and intangible assets or swap, contribution or merger of its shares, as applicable, after payment or provision for payment of the debts and liabilities of the Company, holders of the Preferred Shares will be entitled to a preference payment of 1.5 times their amount invested on any of preferred shares included in the transaction increased by 6% per annum on each such share (so-called liquidation dividend). In case the proceeds are not sufficient to satisfy all amounts, the entire proceeds shall be divided between the holders of the Preferred Shares in proportion of the maximum amounts they are entitled to as per the aforementioned clause. Any proceeds in excess of the preference payments, up to the amount of €3,000,000, will then be distributed to the holders of Common Stock. Any exceeding amount will be divided between all shareholders pro rata to the number of shares included in the transaction. |
• | Conversion into common shares: Each holder of the Preferred Shares is entitled to demand any time and from time to time the conversion of his Preferred Shares into Common Shares in whole or part on a one-for-one basis. |
• | Dividends: The Preferred Shares do not have dividend rights. |
2018 | 2017 | ||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||
Outstanding as of January 1 | 260 | $ | 0.00 | — | |||||||||
Granted during the period | 144 | $ | 0.00 | 260 | $ | 0.00 | |||||||
Forfeited during the period | — | — | |||||||||||
Exercised during the period | — | — | |||||||||||
Expired during the period | — | — | |||||||||||
Outstanding at December 31 | 404 | $ | 0.00 | 260 | $ | 0.00 | |||||||
Exercisable at December 31 | — | — |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
Numerator: | |||||||
Net loss | $ | (11,542 | ) | $ | (9,962 | ) | |
Net loss attributable to common shareholders | $ | (11,542 | ) | $ | (9,962 | ) | |
Denominator: | |||||||
Weighted-average common share outstanding, basic and diluted | 50,000 | 50,000 | |||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (230.84 | ) | $ | (199.24 | ) |
Years Ended December 31, | |||||
2018 | 2017 | ||||
Convertible preferred shares | 312,997 | 312,997 | |||
Stock awards – Executive Bonus | 27,176 | — |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
United States | $ | — | $ | — | |||
Germany | (11,445) | (9,962) | |||||
Foreign (Australia) | (97) | — | |||||
$ | (11,542 | ) | $ | (9,962 | ) |
Years Ended December 31, | |||||
2018 | 2017 | ||||
German corporate income tax (Körperschaftsteuer) | 15.0 | % | 15.0 | % | |
German solidarity tax (Solidaritätszuschlag) | 0.8 | % | 0.8 | % | |
German business tax (Gewerbesteuer) | 11.7 | % | 11.5 | % | |
Australian corporate tax (Australische Körperschaftsteuer) | 0.0 | % | 0.0 | % | |
Change in valuation allowance | (27.5 | )% | (27.3 | )% | |
Effective tax rate | 0.0 | % | 0.0 | % |
Years Ended December 31, | |||||||
2018 | 2017 | ||||||
(in thousands) | |||||||
Deferred tax assets: | |||||||
Net operating loss carry forwards (German companies) | $ | 6,010 | $ | 3,010 | |||
Foreign net operating loss carryforwards (Australian company) | 10 | — | |||||
Total deferred tax assets | 6,020 | 3,010 | |||||
Loss valuation allowance | (6,020 | ) | (3,010 | ) | |||
$ | 0 | $ | 0 |
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March 31, 2019 | December 31, 2018 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 7,593 | $ | 13,072 | |||
Restricted cash | 20,426 | — | |||||
Other current assets and prepaid expenses | 502 | 259 | |||||
Total current assets | 28,521 | 13,331 | |||||
Property and equipment, net | 41 | 40 | |||||
Operating lease right-of-use assets | 74 | — | |||||
Total assets | $ | 28,636 | $ | 13,371 | |||
Liabilities, Preferred Stock and Stockholders’ Deficit | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 511 | $ | 1,400 | |||
Accrued expenses | 562 | 416 | |||||
Other current liabilities | 93 | 104 | |||||
Total current liabilities | 1,166 | 1,920 | |||||
Long term liabilities | 48 | — | |||||
Total liabilities | 1,214 | 1,920 | |||||
Commitments and contingencies (note 3) | — | — | |||||
Series A-2 Convertible preferred stock, €1.00 par value, 299,456 shares authorized, issued and outstanding at March 31, 2019 and December 31, 2018, Liquidation Preference €47,465 ($53,237) at March 31, 2019 | 34,313 | 34,313 | |||||
Series A-1 Convertible preferred stock, €1.00 par value,13,541 authorized, issued and outstanding at March 31, 2019 and December 31, 2018, Liquidation Preference €4,438 ($4,978) at March 31, 2019 | 2,879 | 2,879 | |||||
Stockholders’ deficit: | |||||||
Common stock, €1.00 par value; 50,000 shares authorized, issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 56 | 56 | |||||
Stock subscription not yet issued | 20,531 | — | |||||
Accumulated other comprehensive loss | (1,066 | ) | (819 | ) | |||
Accumulated deficit | (29,291 | ) | (24,978 | ) | |||
Total stockholders’ deficit | (9,770 | ) | (25,741 | ) | |||
Total liabilities, preferred stock and stockholders’ deficit | $ | 28,636 | $ | 13,371 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Operating expenses: | |||||||
Research and development | $ | 3,355 | $ | 1,783 | |||
General and administrative | 1,307 | 505 | |||||
Total operating expenses | 4,662 | 2,288 | |||||
Loss from operations | (4,662 | ) | (2,288 | ) | |||
Other income: | |||||||
Interest expense | — | (1 | ) | ||||
Other income, net | 349 | 26 | |||||
Total other income | 349 | 25 | |||||
Net loss | $ | (4,313 | ) | $ | (2,263 | ) | |
Net loss per share, basic and diluted | $ | (86.26 | ) | $ | (45.26 | ) | |
Weighted-average common shares outstanding, basic and diluted | 50,000 | 50,000 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net loss | $ | (4,313 | ) | $ | (2,263 | ) | |
Other comprehensive income (loss): | |||||||
Foreign currency translation | (247 | ) | 28 | ||||
Total comprehensive loss | $ | (4,560 | ) | $ | (2,235 | ) |
Series A-2 Preferred Stock | Series A-1 Preferred Stock | Common Stock | Stock subscription not yet issued | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Deficit | ||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||
Balance at January 1, 2019 | 299,456 | $ | 34,313 | 13,541 | $ | 2,879 | 50,000 | $ | 56 | $ | — | $ | (819 | ) | $ | $ | (24,978 | ) | $ | (25,741 | ) | |||||||||||||||
Net loss | — | — | — | — | — | — | — | — | (4,313 | ) | (4,313 | ) | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | (247 | ) | — | (247 | ) | ||||||||||||||||||||||||
Stock subscription not yet issued | — | — | — | — | — | — | 20,531 | — | — | 20,531 | ||||||||||||||||||||||||||
Balance at March 31, 2019 | 299,456 | $ | 34,313 | 13,541 | $ | 2,879 | 50,000 | $ | 56 | $ | 20,531 | $ | (1,066 | ) | $ | (29,291 | ) | $ | (9,770 | ) |
Balance at January 1, 2018 | 299,456 | $ | 15,057 | 13,541 | $ | 2,879 | 50,000 | $ | 56 | $ | — | $ | 43 | $ | (13,436 | ) | $ | (13,337 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | (2,263 | ) | (2,263 | ) | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | 28 | — | 28 | ||||||||||||||||||||||||||
Issuance of preferred stock | — | 12,564 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Balance at March 31, 2018 | 299,456 | $ | 27,621 | 13,541 | $ | 2,879 | 50,000 | $ | 56 | $ | — | $ | 71 | $ | (15,699 | ) | $ | (15,572 | ) |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (4,313 | ) | $ | (2,263 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation | 5 | 3 | |||||
Changes in operating assets and liabilities: | |||||||
Other current assets and prepaid expenses | (252 | ) | 240 | ||||
Accounts payable | (880 | ) | 347 | ||||
Accrued expenses | 158 | (48 | ) | ||||
Other current liabilities | (35 | ) | (74 | ) | |||
Net cash used in operating activities | (5,317 | ) | (1,795 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (7 | ) | (1 | ) | |||
Net cash used in investing activities | (7 | ) | (1 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from stock subscription not yet issued | 20,531 | — | |||||
Proceeds from issuance of preferred stock | — | 12,564 | |||||
Net cash provided by financing activities | 20,531 | 12,564 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (260 | ) | 29 | ||||
Net change in cash, cash equivalents and restricted cash | 14,947 | 10,797 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 13,072 | 4,504 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 28,019 | $ | 15,301 | |||
Supplemental disclosures for cash flow information: | |||||||
Cash paid for interest | $ | — | $ | 1 | |||
Reconciliation of cash, cash equivalents and restricted cash: | |||||||
Cash and cash equivalents | $ | 7,593 | $ | 15,301 | |||
Restricted cash | 20,426 | — | |||||
Total cash, cash equivalents and restricted cash | $ | 28,019 | $ | 15,301 |
2019 | $ | 22 | ||
2020 | 29 | |||
2021 | 29 | |||
Total lease payments | 80 | |||
Less: interest portion | 6 | |||
Present value of lease obligation | $ | 74 |
• | Voting rights: Holders of the Preferred Shares are entitled to one vote for each Preferred Share held by them. All shares rank equally as to voting and other matters. For shareholders’ meeting resolutions “special majority” (60% or more of shares) is required. |
• | Liquidation preference: In the event of any sale of 50% or more of the Company’s shares, disposal of its tangible and intangible assets or swap, contribution or merger of its shares, as applicable, after payment or provision for payment of the debts and liabilities of the Company, holders of the Preferred Shares will be entitled to a preference payment of 1.5 times their amount invested on any of the preferred shares included in the transaction increased by 6% per annum on each such share (so-called liquidation dividend). In case the proceeds are not sufficient to satisfy all amounts, the entire proceeds shall be divided between the holders of the Preferred Shares in proportion of the maximum amounts they are entitled to as per the aforementioned clause. Any proceeds in excess of the preference payments, up to the amount of €3,000,000, will then be distributed to the holders of Common Stock. Any exceeding amount will be divided between all shareholders pro rata to the number of shares included in the transaction. |
• | Conversion into common shares: Each holder of the Preferred Shares is entitled to demand any time and from time to time the conversion of his Preferred Shares into Common Shares in whole or part on a one-for-one basis. |
• | Dividends: The Preferred Shares do not have dividend rights. |
March 31, 2019 | March 31, 2018 | ||||||||||||
Options | Exercise Price | Options | Exercise Price | ||||||||||
Outstanding as of January 1 | 404 | $ | 0.00 | 260 | |||||||||
Granted during the period | 355 | $ | 0.00 | — | $ | 0.00 | |||||||
Forfeited during the period | — | — | |||||||||||
Exercised during the period | — | — | |||||||||||
Expired during the period | — | — | |||||||||||
Outstanding at March 31 | 759 | $ | 0.00 | 260 | $ | 0.00 | |||||||
Exercisable at March 31 | — | — |
Vital Therapies | Immunic U.S. GAAP Adjusted | Pro Forma Adjustments | Note | Pro Forma Combined | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash and cash equivalents | $ | 9,595 | $ | 7,593 | $ | 30,026 | A | $ | 47,214 | ||||||||
Restricted cash | — | 20,426 | (20,426 | ) | A | — | |||||||||||
Prepaid expenses and other current assets | 393 | 502 | 1,000 | B | 1,895 | ||||||||||||
Total current assets | 9,988 | 28,521 | 10,600 | 49,109 | |||||||||||||
Property and equipment, net | 482 | 41 | — | 523 | |||||||||||||
Other assets | 12 | 74 | (12 | ) | H | 74 | |||||||||||
Intangible assets, net | — | — | — | — | |||||||||||||
In process research and development | — | — | 702 | C | 702 | ||||||||||||
Goodwill | — | — | 34,568 | D | 34,568 | ||||||||||||
Total assets | $ | 10,482 | $ | 28,636 | $ | 45,858 | $ | 84,976 | |||||||||
Liabilities, Preferred Stock and Stockholders’ Equity/(Deficit) | |||||||||||||||||
Current liabilities: | |||||||||||||||||
Accounts payable | $ | 184 | $ | 511 | $ | — | $ | 695 | |||||||||
Accrued expenses and other current liabilities | 1,249 | 655 | 7,447 | E | 9,351 | ||||||||||||
Total current liabilities | 1,433 | 1,166 | 7,447 | 10,046 | |||||||||||||
Long term liabilities | — | 48 | — | 48 | |||||||||||||
Series A-2 Convertible preferred stock, €1.00 par value, 299,456 shares authorized, issued and outstanding at March 31, 2019 and December 31, 2018, Liquidation Preference €47,465 ($53,237) at March 31, 2019 | — | 34,313 | (34,313 | ) | A | — | |||||||||||
Series A-1 Convertible preferred stock, €1.00 par value,13,541 authorized, issued and outstanding at March 31, 2019 and December 31, 2018, Liquidation Preference €4,438 ($4,978) at March 31, 2019 | — | 2,879 | (2,879 | ) | A | — | |||||||||||
Stockholders’ equity/(deficit): | |||||||||||||||||
Common Stock | 4 | 56 | (56 | ) | G | — | |||||||||||
(4 | ) | G | — | ||||||||||||||
Additional paid-in capital | 355,874 | — | 30,026 | A | 115,527 | ||||||||||||
34,313 | A | ||||||||||||||||
2,879 | A | ||||||||||||||||
8,853 | F | ||||||||||||||||
(316,418 | ) | G | |||||||||||||||
Stock subscription not yet issued | — | 20,531 | (20,531 | ) | A | — | |||||||||||
Accumulated other comprehensive income | 80 | (1,066 | ) | (80 | ) | G | (961 | ) | |||||||||
105 | A | ||||||||||||||||
Accumulated deficit | (346,909 | ) | (29,291 | ) | (1,540 | ) | E | (39,684 | ) | ||||||||
(8,853 | ) | F | |||||||||||||||
346,909 | G | ||||||||||||||||
Total stockholders’ equity/(deficit) | 9,049 | (9,770 | ) | 75,603 | 74,882 | ||||||||||||
Total liabilities, preferred stock and stockholders’ equity/(deficit) | $ | 10,482 | $ | 28,636 | $ | 45,858 | $ | 84,976 |
Vital Therapies | Immunic U.S. GAAP Adjusted | Pro Forma Adjustments | Note | Pro Forma Combined | Note | ||||||||||||||
Operating Expenses: | |||||||||||||||||||
Research and development | $ | 494 | $ | 3,355 | $ | — | $ | 3,849 | |||||||||||
General and administrative | 2,690 | 1,307 | — | 3,997 | |||||||||||||||
Severance costs | 6,369 | — | — | 6,369 | |||||||||||||||
Total operating expenses | 9,553 | 4,662 | — | 14,215 | |||||||||||||||
Loss from operations | (9,553 | ) | (4,662 | ) | — | (14,215 | ) | ||||||||||||
Other income (expense): | |||||||||||||||||||
Interest income (expense), net | 62 | — | — | 62 | |||||||||||||||
Other income (expense), net | (2 | ) | 349 | — | 347 | ||||||||||||||
Total other income (expense) | 60 | 349 | — | 409 | |||||||||||||||
Net loss | $ | (9,493 | ) | $ | (4,313 | ) | $ | — | $ | (13,806 | ) | ||||||||
Net loss per share, basic and diluted | $ | (0.22 | ) | $ | (86.26 | ) | $ | — | $ | (1.38 | ) | ||||||||
Weighted-average common shares outstanding, basic and diluted | 43,714,626 | 50,000 | (390,772,012 | ) | 10,019,795 | I |
Vital Therapies | Immunic U.S. GAAP Adjusted | Pro Forma Adjustments | Note | Pro Forma Combined | Note | ||||||||||||||
Operating Expenses: | |||||||||||||||||||
Research and development | $ | 24,825 | $ | 9,595 | $ | (1,000 | ) | B | $ | 33,420 | |||||||||
General and administrative | 13,585 | 2,402 | — | 15,987 | |||||||||||||||
Severance costs | 2,395 | — | — | 2,395 | |||||||||||||||
Impairment loss | 1,219 | — | — | 1,219 | |||||||||||||||
Total operating expenses | 42,024 | 11,997 | (1,000 | ) | 53,021 | ||||||||||||||
Loss from operations | (42,024 | ) | (11,997 | ) | 1,000 | (53,021 | ) | ||||||||||||
Other income (expense): | |||||||||||||||||||
Interest income (expense), net | 521 | (1 | ) | — | 520 | ||||||||||||||
Other income (expense), net | 28 | 456 | — | 484 | |||||||||||||||
Total other income (expense) | 549 | 455 | — | 1,004 | |||||||||||||||
Net loss | $ | (41,475 | ) | $ | (11,542 | ) | $ | 1,000 | $ | (52,017 | ) | ||||||||
Net loss per share, basic and diluted | $ | (0.98 | ) | $ | (230.84 | ) | $ | — | $ | (5.21 | ) | ||||||||
Weighted-average common shares outstanding, basic and diluted | 42,369,245 | 50,000 | (389,460,265 | ) | 9,986,161 | I |
Estimated number of shares to be owned by Vital Therapies stockholders | 47,469,694 | |||
Multiplied by the fair value per share of Vital Therapies commons stock | $ | 0.83 | ||
Estimated purchase price | $ | 39,400 |
Cash and cash equivalents | $ | 9,595 | ||
Prepaid expenses and other assets | 1,393 | |||
Property and equipment | 482 | |||
In-process research and development | 702 | |||
Accounts payable, accrued expenses and other liabilities | (7,340 | ) | ||
Net assets acquired | 4,832 | |||
Less: preliminary purchase price | 39,400 | |||
Goodwill | $ | 34,568 |
A. | Adjustments to reflect an estimated $30.0 million in net proceeds from the sale of equity capital to be raised by Immunic as part of the Pre-Closing Financing prior to consummation of the Transaction, the issuance of Immunic shares in conjunction with such financing and the simultaneous conversion of Series A-2 and A-1 preferred shares into common shares. |
B. | Reflects the estimated fair value of inventory and supplies on hand at April 12, 2019 that had been expensed by Vital Therapies in accordance with U.S. GAAP. |
C. | To reflect the estimated fair value of indefinite-lived intangible assets associated with Vital Therapies’ ELAD System. These intangible assets would only be amortized over their respective estimated useful lives after approval, if any, by the FDA or other regulatory agencies. |
D. | Represents an adjustment to record goodwill resulting from the Transaction. Goodwill represents the excess of the preliminary estimated purchase price over the estimated fair value of Vital Therapies identified net assets. |
E. | To reflect the accrued liabilities that are transaction costs to be incurred by Immunic of $1.0 million for investment banking services and $0.5 million in legal and other expenses as well as by Vital Therapies of $2.2 million in severance, benefits and taxes, $1.3 million in investment banking services, $1.3 million in director and officer liability insurance and $1.1 million in legal and other expenses. These pro forma transaction costs are not reflected in the unaudited pro forma condensed combined statements of operations as these amounts are not expected to have a continuing effect on the operating results of the combined company. |
F. | Adjustment to reflect the acceleration of restricted stock units held by Vital Therapies officers on termination, the issuance of shares to Immunic officers as a transaction bonus and issuance of shares to 4SC AG in connection with agreement executed in April 2019 upon closing of Transaction. |
G. | To reflect (1) the elimination of Vital Therapies’ historical stockholders’ equity and (2) the issuance of Vital Therapies common shares in exchange for Immunic’s common and preferred shares to finance the acquisition. |
H. | Adjustment to reflect the fair value of other assets relating to Vital Therapies right-of-use asset in regard to its existing lease. |
I. | Reflects the pro forma weighted average shares outstanding, including the issuance of common shares to finance the Transaction after giving effect to the reverse stock split. See Note 5 below. |
For the Three Months Ended March 31, 2019 | For the Year Ended December 31, 2018 | ||||||
Basic and Diluted | |||||||
Net loss, as originally reported | $ | (9,493 | ) | $ | (41,475 | ) | |
Pro forma net loss | (13,806 | ) | (52,017 | ) | |||
Weighted average outstanding shares for the year, as originally reported | 43,714,626 | 42,369,245 | |||||
Pro forma adjustment - common shares issued to finance the transaction | 357,077,181 | 357,077,181 | |||||
Effect of 1 to 40 reverse stock split | (390,772,012 | ) | (389,460,265 | ) | |||
Pro forma weighted average outstanding shares for the year | 10,019,795 | 9,986,161 | |||||
Basic and diluted loss per share, as originally reported | $ | (0.22 | ) | $ | (0.98 | ) | |
Pro forma basic and diluted loss per share | $ | (1.38 | ) | $ | (5.21 | ) |
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