WaferGen Bio-systems, Inc.
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(Exact name of registrant as specified in its charter)
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Nevada
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000-53252
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90-0416683
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(IRS Employer
Identification No.)
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7400 Paseo Padre Parkway, Fremont, CA
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94555
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(Address of principal executive offices)
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(Zip Code)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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WaferGen Bio-systems, Inc.
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Date: November 7, 2014
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By:
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/s/ Michael P. Henighan
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Michael P. Henighan
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Chief Financial Officer
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Exhibit No.
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Description
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99.1
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Press release, dated November 7, 2014, issued by WaferGen Bio-systems, Inc., furnished herewith.
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Revenue for the third quarter of 2014 was $1.3 million, up 221% versus the third quarter of 2013. Product sales for the third quarter 2014 increased to $1.1 million, up 325% versus the prior year period
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Net loss for the third quarter of 2014 was $2.8 million, compared to a net loss of $10.8 million in the third quarter of 2013
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Appointment of Keith Warner as Chief Operating Officer and Michael P. Henighan as Chief Financial Officer, adding seasoned executives to senior management team
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WaferGen completed a public offering consisting of common stock and warrants that raised gross proceeds of $20.0 million
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Cash balance at September 30, 2014 of $17.3 million
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Three Months Ended September 30,
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Nine Months Ended September 30,
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2014
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2013
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2014
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2013
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Revenue:
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Product
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$ | 1,125,201 | $ | 264,547 | $ | 4,014,622 | $ | 480,949 | ||||||||
License and royalty
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125,000 | 125,000 | 375,000 | 333,333 | ||||||||||||
Total revenue
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1,250,201 | 389,547 | 4,389,622 | 814,282 | ||||||||||||
Cost of product revenue
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374,776 | 192,814 | 1,739,757 | 335,182 | ||||||||||||
Gross profit
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875,425 | 196,733 | 2,649,865 | 479,100 | ||||||||||||
Operating expenses:
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Sales and marketing
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961,891 | 625,390 | 3,598,880 | 1,577,317 | ||||||||||||
Research and development
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1,909,310 | 1,581,449 | 4,749,193 | 4,246,796 | ||||||||||||
General and administrative
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1,132,418 | 1,217,899 | 3,233,461 | 2,443,317 | ||||||||||||
Total operating expenses
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4,003,619 | 3,424,738 | 11,581,534 | 8,267,430 | ||||||||||||
Operating loss
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(3,128,194 | ) | (3,228,005 | ) | (8,931,669 | ) | (7,788,330 | ) | ||||||||
Other income and (expenses):
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Interest income
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19 | 830 | 46 | 2,917 | ||||||||||||
Interest expense
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(107,464 | ) | (848,464 | ) | (319,946 | ) | (2,821,093 | ) | ||||||||
Gain on revaluation of derivative liabilities, net
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589,336 | 623,613 | 1,963,532 | 145,133 | ||||||||||||
Loss on extinguishment of debt
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(128,546 | ) | (4,970,410 | ) | (128,546 | ) | (4,970,410 | ) | ||||||||
Issuance of warrants due to organic change
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— | (2,553,318 | ) | — | (2,553,318 | ) | ||||||||||
Miscellaneous income (expense)
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(5,686 | ) | 167,952 | (9,879 | ) | 235,295 | ||||||||||
Total other income and (expenses)
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347,659 | (7,579,797 | ) | 1,505,207 | (9,961,476 | ) | ||||||||||
Net loss before provision for income taxes
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(2,780,535 | ) | (10,807,802 | ) | (7,426,462 | ) | (17,749,806 | ) | ||||||||
Provision for income taxes
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— | 530 | 3,100 | 3,191 | ||||||||||||
Net loss
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(2,780,535 | ) | (10,808,332 | ) | (7,429,562 | ) | (17,752,997 | ) | ||||||||
Accretion on Series 1 Convertible Preferred Stock associated with beneficial conversion feature
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— | (898,623 | ) | — | (898,623 | ) | ||||||||||
Accretion on Series A and B convertible preference shares of subsidiary associated with premium
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— | (408,651 | ) | — | (2,898,550 | ) | ||||||||||
Series A-1 preferred dividend
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— | (131,219 | ) | — | (547,171 | ) | ||||||||||
Net loss attributable to common stockholders
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$ | (2,780,535 | ) | $ | (12,246,825 | ) | $ | (7,429,562 | ) | $ | (22,097,341 | ) | ||||
Net loss per share – basic and diluted
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$ | (1.02 | ) | $ | (43.51 | ) | $ | (4.87 | ) | $ | (180.16 | ) | ||||
Shares used to compute net loss per share – basic and diluted
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2,727,810 | 281,466 | 1,526,963 | 122,657 |
September 30, 2014
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December 31, 2013
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Assets
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(Unaudited)
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Current assets:
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Cash and cash equivalents
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$ | 17,328,471 | $ | 10,708,646 | ||||
Accounts receivable
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1,754,437 | 367,266 | ||||||
Inventories
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953,336 | 292,650 | ||||||
Prepaid expenses and other current assets
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528,991 | 350,540 | ||||||
Total current assets
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20,565,235 | 11,719,102 | ||||||
Property and equipment, net
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387,984 | 269,618 | ||||||
Goodwill
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990,000 | — | ||||||
Intangible assets, net
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1,486,600 | — | ||||||
Other assets
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79,898 | 42,209 | ||||||
Total assets
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$ | 23,509,717 | $ | 12,030,929 | ||||
Liabilities and Stockholders’ Equity (Deficit)
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Current liabilities:
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Accounts payable
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$ | 1,897,688 | $ | 980,887 | ||||
Accrued payroll and related costs
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939,112 | 289,053 | ||||||
Other current liabilities
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747,703 | 1,143,335 | ||||||
Total current liabilities
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3,584,503 | 2,413,275 | ||||||
Long-term debt, net of discount
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1,913,256 | 1,683,942 | ||||||
Derivative liabilities
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362,836 | 9,147,507 | ||||||
Other liabilities
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564,379 | — | ||||||
Total liabilities
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6,424,974 | 13,244,724 | ||||||
Stockholders’ equity (deficit):
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Preferred Stock
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— | 13,595,662 | ||||||
Common Stock
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105,352,474 | 66,028,712 | ||||||
Accumulated deficit
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(88,267,731 | ) | (80,838,169 | ) | ||||
Total stockholders’ equity (deficit)
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17,084,743 | (1,213,795 | ) | |||||
Total liabilities and stockholders’ equity (deficit)
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$ | 23,509,717 | $ | 12,030,929 |