EX-99.4 4 dex994.htm SELECTED PRO FORMA FINANCIAL DATA Selected Pro Forma Financial Data
 
EXHIBIT 99.4
 
UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
 
The following Unaudited Pro Forma Combined Financial Information is based on the historical financial statements of the Company and Dendron, and has been prepared to illustrate the effect of the acquisition of Dendron.
 
In this Unaudited Pro Forma Combined Financial Information certain Euro amounts have been translated into United States dollars at the rate of €1.0123 to the dollar. Such translations should not be construed as representations that the Euro amounts represent, or have been or could be converted into, United State dollars at that or any other rate.
 
The Unaudited Pro Forma Combined Balance Sheets at December 31, 2001 and September 20, 2002 give effect to the acquisition of Dendron as if it had occurred on those respective dates, and were prepared based upon the balance sheets of the Company and Dendron as of such respective dates.
 
The Unaudited Pro Forma Combined Statements of Operations for the year ended December 31, 2001 and the nine months ended September 30, 2002 give effect to the acquisition of Dendron as if it had occurred on January 1, 2001 and 2002, respectively. The Unaudited Pro Forma Combined Statements of Operations for the year ended December 31, 2001 and for the nine months ended September 30, 2002 were prepared based upon the statements of operations of the Company and Dendron for such respective periods.
 
The Unaudited Pro Forma Combined Financial Information is based on certain assumptions and adjustments described in the notes to the Unaudited Pro Forma Combined Financial Information included in this proxy statement and should be read in conjunction with the historical financial statements and accompanying disclosures contained in the December 31, 2001 consolidated financial statements and notes thereto of the Company, as they appear in the Company’s December 31, 2001 Form 10-KSB and September 30, 2002 Form 10-QSB, and Dendron’s December 31, 2001 and September 30, 2002 financial statements which appear elsewhere in this proxy statement.
 
The Unaudited Pro Forma Combined Financial Information presented below does not reflect future events that may occur. The Company believes that operating expense synergies between the Company and Dendron may be realized in the future. However, for purposes of the Unaudited Pro Forma Combined Financial Information presented below, these synergies have not been reflected because there can be no assurances that such synergies, if any, will be achieved.
 
As a result of these assumptions, estimates and uncertainties, the accompanying Unaudited Pro Forma Combined Financial Information does not purport to describe the actual financial condition or results of operations that would have been achieved had the acquisition in fact occurred on the dates indicated, nor does it purport to predict the Company’s future financial condition or results of operations.

PF-1

 
MICRO THERAPEUTICS, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
As of December 31, 2001
In U.S. Dollars
 
      
Micro Therapeutics Historical
     
Dendron Historical
     
Combined
     
Adjustments
     
Pro Forma
  
ASSETS
                                               
Current Assets
                                               
Cash
     
 $
36,974,206
 
   
$
31
 
   
$
36,974,237
 
   
$
(28,098,790
)(a)
   
$
8,875,447
 
Accounts receivable
     
 
1,087,181
 
   
 
211,461
 
   
 
1,298,642
 
            
 
1,298,642
 
Inventories
     
 
2,550,065
 
   
 
500,136
 
   
 
3,050,201
 
            
 
3,050,201
 
Prepaid expenses and other current assets
     
 
411,142
 
   
 
297,100
 
   
 
708,242
 
            
 
708,242
 
      
  
  
  
  
Total current assets
     
 
41,022,594
 
   
 
1,008,728
 
   
 
42,031,322
 
   
 
(28,098,790
)
   
 
13,932,532
 
      
  
  
  
  
Non-Current Assets
                                               
Property and equipment
     
 
1,589,181
 
   
 
134,470
 
   
 
1,723,651
 
            
 
1,723,651
 
Patents, licenses and technology
     
 
1,817,253
 
            
 
1,817,253
 
   
 
10,100,000
(a)
   
 
11,917,253
 
Goodwill
     
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
13,328,112
(a)
   
 
13,328,112
 
Other assets
     
 
42,110
 
   
 
—  
 
   
 
42,110
 
            
 
42,110
 
      
  
  
  
  
Total non-current assets
     
 
3,448,544
 
   
 
134,470
 
   
 
3,583,014
 
   
 
23,428,112
 
   
 
27,011,126
 
      
  
  
  
  
TOTAL ASSETS
     
$
44,471,138
 
   
$
1,143,198
 
   
$
45,614,336
 
   
$
(4,670,678
)
   
$
40,943,658
 
      
  
  
  
  
LIABILITIES AND SHAREHOLDERS’
EQUITY (DEFICIENCY)
                                               
Current Liabilities
                                               
Accounts payable
     
$
938,201
 
   
$
165,979
 
   
$
1,104,180
 
            
$
1,104,180
 
Overdraft facilities
     
 
—  
 
   
 
361,402
 
   
 
361,402
 
   
$
(361,402
)(a)
   
 
—  
 
Current portion of long-term debt
     
 
—  
 
   
 
601,662
 
   
 
601,662
 
   
 
(601,662
)(a)
   
 
—  
 
Accrued salaries and benefits
     
 
1,107,293
 
   
 
63,625
 
   
 
1,170,918
 
            
 
1,170,918
 
Accrued liabilities
     
 
5,584,564
 
   
 
524,502
 
   
 
6,109,066
 
            
 
6,109,066
 
Deferred revenue and other liabilities
     
 
100,005
 
   
 
18,414
 
   
 
118,419
 
            
 
118,419
 
      
  
  
  
  
Total current liabilities
     
 
7,730,063
 
   
 
1,735,584
 
   
 
9,465,647
 
   
 
(963,064
)
   
 
8,502,583
 
      
  
  
  
  
Non-current liabilities
                                               
Long-term debt
     
 
—  
 
   
 
1,262,482
 
   
 
1,262,482
 
   
 
(1,262,482
)(a)
   
 
—  
 
Deferred revenue and other liabilities
     
 
575,002
 
   
 
59,274
 
   
 
634,276
 
   
 
(59,274
)(a)
   
 
575,002
 
      
  
  
  
  
Total non-current liabilities
     
 
575,002
 
   
 
1,321,756
 
   
 
1,896,758
 
   
 
(1,321,756
)
   
 
575,002
 
      
  
  
  
  
TOTAL LIABILITIES
     
 
8,305,065
 
   
 
3,057,340
 
   
 
11,362,405
 
   
 
(2,284,820
)
   
 
9,077,585
 
      
  
  
  
  
SHAREHOLDERS’ EQUITY
(DEFICIENCY)
                                               
Capital stock
     
 
20,194
 
   
 
677,698
 
   
 
697,892
 
   
 
(677,698
)(a)
   
 
20,194
 
Additional paid in capital
     
 
109,763,742
 
   
 
2,754,442
 
   
 
112,518,184
 
   
 
(2,754,442
)(a)
   
 
109,763,742
 
Receivables from shareholders
     
 
(384,575
)
   
 
(158,876
)
   
 
(543,451
)
   
 
158,876
 (a)
   
 
(384,575
)
Accumulated deficit
     
 
(73,233,288
)
   
 
(5,187,407
)
   
 
(78,420,695
)
   
 
887,407
 (a)
   
 
(77,533,288
)
      
  
  
  
  
Total shareholders’ equity (deficiency)
     
 
36,166,073
 
   
 
(1,914,143
)
   
 
34,251,930
 
   
 
(2,385,857
)(a)
   
 
31,866,073
 
      
  
  
  
  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIENCY)
     
$
44,471,138
 
   
$
1,143,197
 
   
$
45,614,335
 
   
$
(4,670,677
)
   
$
40,943,658
 
      
  
  
  
  
 
See notes to unaudited pro forma combined financial statements.

PF-2

 
MICRO THERAPEUTICS, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
As of September 30, 2002
In U.S. Dollars
 
    
Micro Therapeutics Historical
     
Dendron Historical
     
Combined
     
Adjustments
     
Pro Forma
  
ASSETS
                                             
Current Assets
                                             
Cash
   
$
28,228,943
 
   
$
2,159
 
   
$
28,231,102
 
   
$
(28,098,790
)(a)
   
$
132,312
 
Accounts receivable
   
 
2,912,786
 
   
 
541,594
 
   
 
3,454,380
 
            
 
3,454,380
 
Inventories
   
 
3,224,271
 
   
 
537,056
 
   
 
3,761,327
 
            
 
3,761,327
 
Prepaid expenses and other current assets
   
 
2,973,070
 
   
 
173,022
 
   
 
3,146,092
 
   
 
(28,844
)(a)
   
 
3,117,248
 
    
  
  
  
  
Total current assets
   
 
37,339,070
 
   
 
1,253,831
 
   
 
38,592,901
 
   
 
(28,127,634
)
   
 
10,465,267
 
    
  
  
  
  
Non-Current Assets
                                             
Property and equipment
   
 
1,458,709
 
   
 
610,452
 
   
 
2,069,161
 
            
 
2,069,161
 
Patents, licenses and technology
   
 
2,006,777
 
   
 
—  
 
   
 
2,006,777
 
   
 
10,100,000 
(a)
   
 
12,106,777
 
Goodwill
   
 
—  
 
   
 
—  
 
   
 
—  
 
   
 
12,959,965 
(a)
   
 
12,959,965
 
Other assets
   
 
683,642
 
   
 
20,421
 
   
 
704,063
 
            
 
704,063
 
    
  
  
  
  
Total non-current assets
   
 
4,149,128
 
   
 
630,873
 
   
 
4,780,001
 
   
 
23,059,965
 
   
 
27,839,966
 
    
  
  
  
  
TOTAL ASSETS
   
$
41,488,198
 
   
$
1,884,704
 
   
$
43,372,902
 
   
$
(5,067,669
)
   
$
38,305,233
 
    
  
  
  
  
LIABILITIES AND SHAREHOLDERS’
EQUITY (DEFICIENCY)
                                             
Current Liabilities
                                             
Accounts payable
   
$
1,030,230
 
   
$
640,209
 
   
$
1,670,439
 
   
$
(223,491
)(a)
   
$
1,446,948
 
Overdraft facilities
   
 
—  
 
   
 
711,937
 
   
 
711,937
 
   
 
(711,937
)(a)
   
 
—  
 
Partnership obligation
   
 
—  
 
   
 
1,481,847
 
   
 
1,481,847
 
   
 
(1,481,847
)(a)
   
 
—  
 
Current portion of long-term debt
   
 
—  
 
   
 
516,583
 
   
 
516,583
 
   
 
(516,583
)(a)
   
 
—  
 
Accrued salaries and benefits
   
 
1,557,603
 
   
 
37,943
 
   
 
1,595,546
 
            
 
1,595,546
 
Accrued liabilities
   
 
2,259,192
 
   
 
1,037,095
 
   
 
3,296,287
 
   
 
(395,159
)(a)
   
 
2,901,128
 
Deferred revenue and other liabilities
   
 
100,005
 
   
 
20,438
 
   
 
120,443
 
            
 
120,443
 
    
  
  
  
  
Total current liabilities
   
 
4,947,030
 
   
 
4,446,052
 
   
 
9,393,082
 
   
 
(3,329,017
)
   
 
6,064,065
 
    
  
  
  
  
Non-current liabilities
                                             
Long-term debt
   
 
—  
 
   
 
909,187
 
   
 
909,187
 
   
 
(909,187
)(a)
   
 
—  
 
Deferred revenue and other liabilities
   
 
500,002
 
   
 
59,274
 
   
 
559,276
 
   
 
(59,274
)(a)
   
 
500,002
 
    
  
  
  
  
Total non-current liabilities
   
 
500,002
 
   
 
968,461
 
   
 
1,468,463
 
   
 
(968,461
)
   
 
500,002
 
    
  
  
  
  
TOTAL LIABILITIES
   
 
5,447,032
 
   
 
5,414,513
 
   
 
10,861,545
 
   
 
(4,297,478
)
   
 
6,564,067
 
    
  
  
  
  
SHAREHOLDERS’ EQUITY (DEFICIENCY)
                                             
Capital stock
   
 
24,440
 
   
 
677,698
 
   
 
702,138
 
   
 
(677,698
)(a)
   
 
24,440
 
Additional paid in capital
   
 
119,025,929
 
   
 
2,754,442
 
   
 
121,780,371
 
   
 
(2,754,442
)(a)
   
 
119,025,929
 
Receivables from shareholders
   
 
(384,575
)
   
 
—  
 
   
 
(384,575
)
            
 
(384,575
)
Accumulated deficit
   
 
(82,624,628
)
   
 
(6,961,949
)
   
 
(89,586,577
)
   
 
2,661,949 
(a)
   
 
(86,924,628
)
    
  
  
  
  
Total shareholders’ equity (deficiency)
   
 
36,041,166
 
   
 
(3,529,809
)
   
 
32,511,357
 
   
 
(770,191
)
   
 
31,741,166
 
    
  
  
  
  
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY (DEFICIENCY)
   
$
41,488,198
 
   
$
1,884,704
 
   
$
43,372,902
 
   
$
(5,067,669
)
   
$
38,305,233
 
    
  
  
  
  
 
 
See notes to unaudited pro forma combined financial information.

PF-3

 
MICRO THERAPEUTICS, INC.
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
Year Ended December 31, 2001
In U.S. Dollars
 
    
Micro Therapeutics
Historical
     
Dendron
Historical
     
Combined
     
Adjustments
     
Pro Forma
  
Net sales
   
$
8,763,509
 
   
$
2,040,309
 
   
$
10,803,818
 
            
$
10,803,818
 
Cost of sales
   
 
4,371,171
 
   
 
1,196,168
 
   
 
5,567,339
 
            
 
5,567,339
 
    
  
  
  
  
Gross margin
   
 
4,392,338
 
   
 
844,141
 
   
 
5,236,479
 
            
 
5,236,479
 
    
  
  
  
  
Costs and expenses
                                             
Research and development, clinical and regulatory
   
 
10,061,307
 
   
 
664,618
 
   
 
10,725,925
 
   
$
1,010,000
 (b)
   
 
11,735,925
 
Selling, general and administrative
   
 
8,977,469
 
   
 
1,851,193
 
   
 
10,828,662
 
   
 
(59,274
)(d)
   
 
10,769,388
 
Distribution amendment and termination
   
 
5,206,000
 
   
 
—  
 
   
 
5,206,000
 
            
 
5,206,000
 
Other operating (income) expense
            
 
(3,579
)
   
 
(3,579
)
            
 
(3,579
)
    
  
  
  
  
Total costs and expenses
   
 
24,244,776
 
   
 
2,512,232
 
   
 
26,757,008
 
   
 
950,726
 
   
 
27,707,734
 
    
  
  
  
  
Loss from operations
   
 
(19,852,438
)
   
 
(1,668,091
)
   
 
(21,520,529
)
   
 
(950,726
)
   
 
(22,471,255
)
Other income (expense)
                                             
Interest income
   
 
736,872
 
            
 
736,872
 
            
 
736,872
 
Interest expense
   
 
(798,935
)
   
 
(207,676
)
   
 
(1,006,611
)
   
 
207,676 
(c)  
   
 
(798,935
)
Other income, net
   
 
826
 
            
 
826
 
            
 
826
 
    
  
  
  
  
Total other income (expense)
   
 
(61,237
)
   
 
(207,676
)
   
 
(268,913
)
   
 
207,676
 
   
 
(61,237
)
    
  
  
  
  
Loss before provision for income taxes and extraordinary item
   
 
(19,913,675
)
   
 
(1,875,767
)
   
 
(21,789,442
)
   
 
(743,050
)
   
 
(22,532,492
)
Provision for income taxes
   
 
800
 
   
 
—  
 
   
 
800
 
            
 
800
 
    
  
  
  
  
Loss before extraordinary item
   
 
(19,914,475
)
   
 
(1,875,767
)
   
 
(21,790,242
)
   
 
(743,050
)
   
 
(22,533,292
)
Extraordinary loss on early extinguishment of debt
   
 
(716,380
)
   
 
—  
 
   
 
(716,380
)
            
 
(716,380
)
    
  
  
  
  
Net loss
   
$
(20,630,855
)
   
$
(1,875,767
)
   
$
(22,506,622
)
   
$
(743,050
)(e)
   
$
(23,249,672
)
    
  
  
  
  
 
See notes to unaudited pro forma combined financial information.

PF-4

 
MICRO THERAPEUTICS, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
Nine-Month Period Ended September 30, 2002
In U.S. Dollars
 
    
Micro Therapeutics Historical
     
Dendron Historical
     
Combined
     
Adjustments
     
Pro Forma
  
Net sales
   
$
8,922,636
 
   
$
1,877,486
 
   
$
10,800,122
 
            
$
10,800,122
 
Cost of sales
   
 
3,927,201
 
   
 
919,449
 
   
 
4,846,650
 
            
 
4,846,650
 
    
  
  
  
  
Gross margin
   
 
4,995,435
 
   
 
958,037
 
   
 
5,953,472
 
            
 
5,953,472
 
    
  
  
  
  
Costs and expenses
                                             
Research and development, clinical and regulatory
   
 
9,139,041
 
   
 
677,285
 
   
 
9,816,326
 
   
$
757,500
  (b)
   
 
10,573,826
 
Selling, general and administrative
   
 
13,151,947
 
   
 
1,517,229
 
   
 
14,669,176
 
   
 
(53,406
)(d)
   
 
14,615,770
 
Other operating (income) expense
            
 
33,682
 
   
 
33,682
 
            
 
33,682
 
    
  
  
  
  
Total costs and expenses
   
 
22,290,988
 
   
 
2,228,196
 
   
 
24,519,184
 
   
 
704,094
 
   
 
25,223,278
 
    
  
  
  
  
Loss from operations
   
 
(17,295,553
)
   
 
(1,270,159
)
   
 
(18,565,712
)
   
 
(704,094
)
   
 
(19,269,806
)
Other income (expense)
                                             
Interest income
   
 
384,091
 
            
 
384,091
 
            
 
384,091
 
Interest expense
   
 
(4,530
)
   
 
(504,383
)
   
 
(508,913
)
   
 
504,383
  (c)
   
 
(4,530
)
Gain on sale of investment
   
 
7,385,812
 
            
 
7,385,812
 
            
 
7,385,812
 
Foreign currency transaction gain
   
 
141,303
 
            
 
141,303
 
            
 
141,303
 
    
  
  
  
  
Total other income (expense)
   
 
7,906,676
 
   
 
(504,383
)
   
 
7,402,293
 
   
 
504,383
 
   
 
7,906,676
 
    
  
  
  
  
Loss before provision for income taxes
   
 
(9,388,877
)
   
 
(1,774,542
)
   
 
(11,163,419
)
   
 
(199,711
)
   
 
(11,363,130
)
Provision for income taxes
   
 
2,463
 
   
 
—
 
   
 
2,463
 
            
 
2,463
 
    
  
  
  
  
Net loss
   
$
(9,391,340
)
   
$
(1,774,542
)
   
$
(11,165,882
)
   
$
(199,711
)(e)
   
$
(11,365,593
)
    
  
  
  
  
 
See notes to unaudited pro forma financial information.

PF-5

 
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
 
The adjustments to arrive at the unaudited pro forma combined financial information are as follows:
 
(a)
 
To reflect the acquisition of Dendron for cash, the concurrent repayment of certain of Dendron’s obligations, which repayments were conditions for closing of the acquisition, and estimated purchase price allocations.
 
(b)
 
To record the amortization of acquired technology.
 
(c)
 
To eliminate interest expense related to Dendron obligations that were repaid concurrent with the acquisition.
 
(d)
 
To eliminate an expense related to services that were terminated concurrent with the acquisition.
 
(e)
 
Excludes a charge of approximately $4.3 million related to in-process research and development.

PF-6