Restatement of Previously Reported Unaudited Interim Consolidated Financial Statements (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2022

Restatement Of Previously Reported Unaudited Interim Consolidated Financial Statements (Unaudited)

Schedule of restatement of the previously reported consolidated financial statements

The effects of the restatement and immaterial out of period adjustments of the previously reported Consolidated Balance Sheets are presented below:

	As of June 30, 2022
	As Previously		Restatement		Other Immaterial
(amounts in thousands, except per share data)	Reported		Adjustments		Adjustments		As Restated
Assets
Current Assets
Cash and cash equivalents	$	52,266	$	—	$	—	$	52,266
Prepaid expenses and other current assets		2,622		—		—		2,622
Total Current Assets		54,888		—		—		54,888
Non-Current Assets
Property and equipment, net		285		—		—		285
Restricted cash		96		—		—		96
Right of use asset		1,292		—		—		1,292
In-process research and development		20,562		—		(2,722)		17,840
Goodwill		5,185		—		1,033		6,218
Deposits and other assets		23		—		—		23
Total Assets	$	82,331	$	—	$	(1,689)	$	80,642
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	1,003	$	—	$	—	$	1,003
Accrued expenses		1,987		—		—		1,987
Accrued employee benefits		788		—		—		788
Contingent consideration, current portion		9,302		—		(845)		8,457
Loans Payable-current		56		—		—		56
Operating lease liability		128		—		—		128
Total Current Liabilities		13,264		—		(845)		12,419
Non-current Liabilities
Non-current contingent consideration		2,374		—		(179)		2,195
Loan Payable - Long term		216		—		—		216
Deferred tax liabilities, net		3,505		(532)		(680)		2,293
Lease liability - Long term		1,298		—		—		1,298
Total Liabilities		20,657		(532)		(1,704)		18,421
Commitments and Contingencies
Stockholders’ Equity (Deficit):
Common stock, $0.001 par value; 20,000,000 shares authorized, 15,844,294 issued and 15,844,061 outstanding at June 30, 2022 and 13,204,487 issued and 13,204,254 outstanding at December 31, 2021		16		—		—		16
Additional paid-in capital		343,500		—		—		343,500
Accumulated other comprehensive loss		(1,317)		—		56		(1,261)
Accumulated deficit		(280,525)		532		(41)		(280,034)
Total Stockholders’ Equity		61,674		532		15		62,221
Total Liabilities and Stockholders’ Equity	$	82,331	$	—	$	(1,689)	$	80,642

	As of September 30, 2022
	As Previously		Restatement		Other Immaterial
(amounts in thousands, except per share data)	Reported		Adjustments		Adjustments		As Restated
Assets
Current Assets
Cash and cash equivalents	$	50,490	$	—	$	—	$	50,490
Prepaid expenses and other current assets		2,241		—		—		2,241
Total Current Assets		52,731		—		—		52,731
Non-Current Assets
Property and equipment, net		262		—		—		262
Restricted cash		90		—		—		90
Right of use asset		1,246		—		—		1,246
In-process research and development		20,089		—		(2,552)		17,537
Goodwill		4,254		—		969		5,223
Deposits and other assets		23		—		—		23
Total Assets	$	78,695	$	—	$	(1,583)	$	77,112
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable	$	770	$	—	$	—	$	770
Accrued expenses		1,411		—		—		1,411
Accrued employee benefits		1,319		—		—		1,319
Contingent consideration, current portion		9,483		—		(869)		8,614
Loans Payable-current		52		—		—		52
Operating lease liability		157		—		—		157
Total Current Liabilities		13,192		—		(869)		12,323
Non-current Liabilities
Non-current contingent consideration		2,419		—		(182)		2,237
Loan Payable - Long term		202		—		—		202
Deferred tax liabilities, net		3,489		(867)		(638)		1,984
Lease liability - Long term		1,244		—		—		1,244
Total Liabilities		20,546		(867)		(1,689)		17,990
Commitments and Contingencies
Series C convertible preferred stock, $0.001 par value; 10,000,000;275,000 issued and outstanding		2,006		—		—		2,006
Series D convertible preferred stock, $0.001 par value; 10,000,000;100,000 issued and outstanding		728		—		—		728
Stockholders’ Equity (Deficit):
Common stock, $0.001 par value; 20,000,000 shares authorized, 15,844,294 issued and 15,844,061 outstanding at September 30, 2022 and 13,204,487 issued and 13,204,254 outstanding at December 31, 2021		16		—		—		16
Additional paid-in capital		343,621		—		—		343,621
Accumulated other comprehensive loss		(2,844)		—		119		(2,725)
Accumulated deficit		(285,378)		867		(13)		(284,524)
Total Stockholders’ Equity		55,415		867		106		56,388
Total Liabilities and Stockholders’ Equity	$	78,695	$	—	$	(1,583)	$	77,112

The effect of the restatement and immaterial out of period adjustments of the previously reported Consolidated Statements of Income (Loss) is presented below:

	Three-months ended June 30, 2022
	As Previously		Restatement		Other Immaterial
(amounts in thousands, except per share data)	Reported		Adjustments		Adjustments		As Restated
Operating Costs and Expenses:
General and administrative	$	1,500	$	—	$	41	$	1,541
Research and development		3,485		—		—		3,485
Total Operating Costs and Expenses		4,985		—		41		5,026
Loss from Operations		(4,985)		—		(41)		(5,026)
Other Expense:
Exchange loss		(9)		—		—		(9)
Interest income		26		—		—		26
Total Other Income(Expense)		17		—		—		17
Net Loss before income taxes		(4,968)				(41)		(5,009)
Income tax benefit		—		532		—		532
Net Loss		(4,968)		532		(41)		(4,477)
Net Loss Attributable to Non-controlling Interest		—		—		—		—
Net Loss Attributable to Synthetic Biologics, Inc. and Subsidiaries	$	(4,968)	$	532	$	(41)	$	(4,477)
Series A Preferred Stock Dividends		—		—		—		—
Effect of Series A Preferred Stock price adjustment		—		—		—		—
Series B Preferred Stock Dividends		—		—		—		—
Net Loss Attributable to Common Stockholders	$	(4,968)	$	532		(41)	$	(4,477)
Net Loss Per Share - Basic and Dilutive	$	(0.31)	$	0.03		—	$	(0.28)
Weighted average number of shares outstanding during the period - Basic and Dilutive		15,844,061		—		—		15,844,061
Net Loss		(4,968)		532		(41)		(4,477)
Loss on foreign currency translation		(1,497)		—		—		(1,497)
Total comprehensive loss		(6,465)		532		(41)		(5,974)
Comprehensive loss attributable to non-controlling interest		—		—		—		—
Comprehensive loss attributable to Synthetic Biologics, Inc. and Subsidiaries		(6,465)		532		(41)		(5,974)

	Six-months ended June 30, 2022
	As Previously		Restatement		Other Immaterial
(amounts in thousands, except per share data)	Reported		Adjustments		Adjustments		As Restated
Operating Costs and Expenses:
General and administrative	$	3,155	$	—	$	41	$	3,196
Research and development		6,082		—		—		6,082
Total Operating Costs and Expenses		9,237		—		41		9,278
Loss from Operations		(9,237)		—		(41)		(9,278)
Other Expense:
Exchange loss		(31)		—		—		(31)
Interest income		27		—		—		27
Total Other Income(Expense)		(4)		—		—		(4)
Net Loss before income taxes		(9,241)				(41)		(9,282)
Income tax benefit				532		—		532
Net Loss		(9,241)		532		(41)		(8,750)
Net Loss Attributable to Non-controlling Interest		—		—		—		—
Net Loss Attributable to Synthetic Biologics, Inc. and Subsidiaries	$	(9,241)	$	532	$	(41)	$	(8,750)
Series A Preferred Stock Dividends		—		—		—		—
Effect of Series A Preferred Stock price adjustment		—		—				—
Series B Preferred Stock Dividends		—		—		—		—
Net Loss Attributable to Common Stockholders	$	(9,241)	$	532	$	(41)	$	(8,750)
Net Loss Per Share - Basic and Dilutive	$	(0.62)	$	0.03		—	$	(0.59)
Weighted average number of shares outstanding during the period - Basic and Dilutive		14,837,832		—		—		14,837,832
Net Loss		(9,241)		532		(41)		(8,750)
Loss on foreign currency translation		(1,317)		—		—		(1,317)
Total comprehensive loss		(10,558)		532		(41)		(10,067)
Comprehensive loss attributable to non-controlling interest		—		—		—		—
Comprehensive loss attributable to Synthetic Biologics, Inc. and Subsidiaries		(10,558)		532		(41)		(10,067)

	Three-months ended September 30, 2022
			Restatement		Other Immaterial
(amounts in thousands, except per share data)	As Previously Reported		Adjustments		Adjustments		As Restated
Operating Costs and Expenses:
General and administrative	$	2,444	$	—	$	(28)	$	2,416
Research and development		2,570		—		—		2,570
Total Operating Costs and Expenses		5,014		—		(28)		4,986
Loss from Operations		(5,014)		—		28		(4,986)
Other Expense:
Exchange loss		(9)		—		—		(9)
Interest income		170		—		—		170
Total Other Income(Expense)		161		—		—		161
Net Loss before income taxes		(4,853)		—		28		(4,825)
Income tax benefit				335		—		335
Net Loss		(4,853)		335		28		(4,490)
Net Loss Attributable to Non-controlling Interest		—		—		—		—
Net Loss Attributable to Synthetic Biologics, Inc. and Subsidiaries	$	(4,853)	$	335	$	28	$	(4,490)
Effect of Warrant exercise price adjustment		(340)		—		—		(340)
Effect of Series A Preferred Stock price adjustment		—		—		—		—
Series B Preferred Stock Dividends		—		—		—		—
Net Loss Attributable to Common Stockholders	$	(5,193)	$	335	$	28	$	(4,830)
Net Loss Per Share - Basic and Dilutive	$	(0.33)	$	0.03	$	—	$	(0.30)
Weighted average number of shares outstanding during the period - Basic and Dilutive		15,844,061		—		—		15,844,061
Net Loss		(4,853)		335		28		(4,490)
Loss on foreign currency translation		(1,527)		—		—		(1,527)
Total comprehensive loss		(6,380)		335		28		(6,017)
Comprehensive loss attributable to non-controlling interest		—		—		—		—
Comprehensive loss attributable to Synthetic Biologics, Inc. and Subsidiaries		(6,380)		335		28		(6,017)

	Nine-months ended September 30, 2022
	As Previously		Restatement		Other Immaterial
(amounts in thousands, except per share data)	Reported		Adjustments		Adjustments		As Restated
Operating Costs and Expenses:
General and administrative	$	5,599	$	—	$	13	$	5,612
Research and development		8,652		—		—		8,652
Total Operating Costs and Expenses		14,251		—		13		14,264
Loss from Operations		(14,251)		—		(13)		(14,264)
Other Expense:
Exchange loss		(40)		—		—		(40)
Interest income		197		—		—		197
Total Other Income(Expense)		157		—		—		157
Net Loss before income taxes		(14,094)				(13)		(14,107)
Income tax benefit		—		867		—		867
Net Loss		(14,094)		867		(13)		(13,240)
Net Loss Attributable to Non-controlling Interest		—		—		—		—
Net Loss Attributable to Synthetic Biologics, Inc. and Subsidiaries	$	(14,094)	$	867	$	(13)	$	(13,240)
Effect of Warrant exercise price adjustment		(340)		—		—		(340)
Effect of Series A Preferred Stock price adjustment		—		—		—		—
Series B Preferred Stock Dividends		—		—		—		—
Net Loss Attributable to Common Stockholders	$	(14,434)	$	867	$	(13)	$	(13,580)
Net Loss Per Share - Basic and Dilutive	$	(0.95)	$	0.08	$	—	$	(0.87)
						.
Weighted average number of shares outstanding during the period - Basic and Dilutive		15,176,927		—		—		15,176,927
Net Loss		(14,094)		867		(13)		(13,240)
Loss on foreign currency translation		(2,844)		—		—		(2,844)
Total comprehensive loss		(16,938)		867		(13)		(16,084)
Comprehensive loss attributable to non-controlling interest		—		—		—		—
Comprehensive loss attributable to Synthetic Biologics, Inc. and Subsidiaries		(16,938)		867		(13)		(16,084)

The effect of the restatement and immaterial out of period adjustments of the previously reported Consolidated Statements of Changes in Shareholders’ Equity is presented in the tables below:

	As Previously Reported
	Common Stock $0.001 Par Value			Series B Preferred							Accumulated
											Other		Total
									Accumulated		Comprehensive		Stockholders’
(amounts in thousands, except per share data)	Shares	Amount		Shares	Amount		APIC		Deficit		income		Equity
Balance at December 31, 2021	13,204,531	$	13	—	$	—	$	336,679	$	(271,284)	$	—	$	65,408
Stock-based compensation	—		—	—		—		112		—		—		112
Issuance of Common Stock for VCN Acquisition	2,639,530		3	—		—		6,596		—		—		6,599
Translation gains (losses)	—		—	—		—		—		—		181		181
Net loss	—		—	—		—		—		(4,273)		—		(4,273)
Balance at March 31, 2022	15,844,061	$	16	—	$	—	$	343,387	$	(275,557)	$	181	$	68,027
Stock-based compensation	—		—	—		—		113		—		—		113
Translation gains (losses)	—		—	—		—		—		—		(1,498)		(1,498)
Net loss	—		—	—		—		—		(4,968)		—		(4,968)
Balance at June 30, 2022	15,844,061	$	16	—	$	—	$	343,500	$	(280,525)	$	(1,317)	$	61,674
Stock-based compensation	—		—	—		—		121		—		—		121
Translation gains (losses)	—		—	—		—		—		—		(1,527)		(1,527)
Net loss	—		—	—		—		—		(4,853)		—		(4,853)
Balance at September 30, 2022	15,844,061	$	16	—	$	—	$	343,621	$	(285,378)	$	(2,844)	$	55,415

	Restatement Adjustments
	Common Stock $0.001 Par Value			Series B Preferred							Accumulated
											Other		Total
									Accumulated		Comprehensive		Stockholders’
(amounts in thousands, except per share data)	Shares	Amount		Shares	Amount		APIC		Deficit		income		Equity
Balance at December 31, 2021	—	$	—	—	$	—	$	—	$	—	$	—	$	—
Stock-based compensation	—		—	—		—		—		—		—		—
Issuance of Common Stock for VCN Acquisition	—		—	—		—		—		—		—		—
Translation gains (losses)	—		—	—		—		—		—		—		—
Net loss	—		—	—		—		—		—		—		—
Balance at March 31, 2022	—	$	—	—	$	—	$	—	$	—	$	—	$	—
Stock-based compensation	—		—	—		—		—		—		—		—
Translation gains (losses)	—		—	—		—		—		—		56		56
Net loss-other immaterial adjustments	—		—	—		—		—		(41)		—		(41)
Net loss	—		—	—		—		—		532		—		532
Balance at June 30, 2022	—	$	—	—	$	—	$	—	$	491	$	56	$	547
Stock-based compensation	—		—	—		—		—		—		—		—
Translation gains (losses)	—		—	—		—		—		—		63		63
Net loss-other immaterial adjustments	—		—	—		—		—		28		—		28
Net loss	—		—	—		—		—		335		—		335
Balance at September 30, 2022	—	$	—	—	$	—	$	—	$	854	$	119	$	973

	As Restated
	Common Stock $0.001 Par Value			Series B Preferred							Accumulated
											Other		Total
									Accumulated		Comprehensive		Stockholders’
(amounts in thousands, except per share data)	Shares	Amount		Shares	Amount		APIC		Deficit		income		Equity
Balance at December 31, 2021	13,204,531	$	13	—	$	—	$	336,679	$	(271,284)	$	—	$	65,408
Stock-based compensation	—		—	—		—		112		—		—		112
Issuance of Common Stock for VCN Acquisition	2,639,530		3	—		—		6,596		—		—		6,599
Translation gains (losses)	—		—	—		—		—		—		181		181
Net loss	—		—	—		—		—		(4,273)		—		(4,273)
Balance at March 31, 2022	15,844,061	$	16	—	$	—	$	343,387	$	(275,557)	$	181	$	68,027
Stock-based compensation	—		—	—		—		113		—		—		113
Translation gains (losses)	—		—	—		—		—		—		(1,442)		(1,442)
Net loss	—		—	—		—		—		(4,477)		—		(4,477)
Balance at June 30, 2022	15,844,061	$	16	—	$	—	$	343,500	$	(280,034)	$	(1,261)	$	62,221
Stock-based compensation	—		—	—		—		121		—		—		121
Translation gains (losses)	—		—	—		—		—		—		(1,464)		(1,464)
Net loss	—		—	—		—		—		(4,490)		—		(4,490)
Balance at September 30, 2022	15,844,061	$	16	—	$	—	$	343,621	$	(284,524)	$	(2,725)	$	56,388

The effect of the restatement of the previously reported Consolidated Statements of Cash Flows is presented below:

	Six-months ended June 30, 2022
			Restatement		Other Immaterial
(amounts in thousands, except per share data)	As Previously Reported		Adjustments		Adjustments		As Restated
Cash Flows From Operating Activities:
Net loss	$	(9,241)	$	532	$	(41)	$	(8,750)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		225		—		—		225
Income tax benefit		—		(532)		—		(532)
Change in fair value of contingent consideration		(483)		—		41		(442)
Depreciation		36		—		—		36
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		518		—		—		518
Right of use asset		90		—		—		90
Accounts payable		(295)		—		—		(295)
Accrued expenses		265		—		—		265
Accrued employee benefits		(272)		—		—		(272)
Lease liability		(101)		—		—		(101)
Net Cash Used In Operating Activities		(9,258)		—		—		(9,258)
Cash Flows from Investing Activities
Purchase of property and equipment		(14)		—		—		(14)
Cash paid for business combination, net of cash acquired		(3,863)		—		—		(3,863)
Pre-acquisition loan to VCN		(417)		—		—		(417)
Net Cash Used in Investing Activities		(4,294)		—		—		(4,294)
Cash Flows from Financing Activities
Payment of VCN's CDTI loan		(1,376)		—		—		(1,376)
Proceeds from "at the market" stock issuance		—		—		—		—
Proceeds from issuance of common stock for warrant exercises		—		—		—		—
Net Cash Provided (used in) by Financing Activities		(1,376)		—		—		(1,376)
Effects of FX on cash		(35)		—		—		(35)
Net increase (decrease) in cash and cash equivalents and restricted cash		(14,963)		—		—		(14,963)
Cash and cash equivalents and restricted at the beginning of this period		67,325		—		—		67,325
Cash and cash equivalents and restricted cash at the end of this period	$	52,362	$	—	$	—	$	52,362
Reconciliation of cash, cash equivalents, and restricted cash reported in the statement of financial position
Cash and cash equivalents	$	52,266	$	—	$	—	$	52,266
Restricted cash included in other long-term assets		96		—		—		96
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	52,362	$	—	$	—	$	52,362
Supplemental non-cash investing and financing activities:
Fair value of contingent consideration issued in a business combination	$	12,158	$	—	$	—	$	12,158
Fair value of equity issued as consideration in a business combination	$	6,599	$	—	$	—	$	6,599
Effective settlement of pre-closing VCN financing	$	417	$	—	$	—	$	417
Goodwill measurement period adjustment	$	277	$	—	$	—	$	277

	Nine-months ended September 30, 2022
			Restatement		Other Immaterial
(amounts in thousands, except per share data)	As Previously Reported		Adjustments		Adjustments		As Restated
Cash Flows From Operating Activities:
Net loss	$	(14,094)	$	867	$	(13)	$	(13,240)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation		346		—		—		346
Income tax benefit		—		(867)		—		(867)
Change in fair value of contingent consideration		(257)		—		13		(244)
Depreciation		60		—		—		60
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		780		—		—		780
Right of use asset		137		—		—		137
Accounts payable		(504)		—		—		(504)
Accrued expenses		(326)		—		—		(326)
Accrued employee benefits		271		—		—		271
Lease liability		(127)		—		—		(127)
Net Cash Used In Operating Activities		(13,714)		—		—		(13,714)
Cash Flows from Investing Activities
Purchase of property and equipment		(25)		—		—		(25)
Cash paid for business combination, net of cash acquired		(3,863)		—		—		(3,863)
Pre-acquisition loan to VCN		(417)		—		—		(417)
Net Cash Used in Investing Activities		(4,305)		—		—		(4,305)
Cash Flows from Financing Activities
Payment of VCN's CDTI loan		(1,376)		—		—		(1,376)
Proceeds from sale of Series C Preferred Stock, net of issuance cost		2,006						2,006
Proceeds from sale of Series D Preferred Stock, net of issuance cost		728						728
Proceeds from "at the market" stock issuance		—		—		—		—
Proceeds from issuance of common stock for warrant exercises		—		—		—		—
Net Cash Provided (used in) by Financing Activities		1,358		—		—		1,358
Effects of FX on cash		(84)		—		—		(84)
Net increase (decrease) in cash and cash equivalents and restricted cash		(16,661)		—		—		(16,661)
Cash and cash equivalents and restricted at the beginning of this period		67,325		—		—		67,325
Cash and cash equivalents and restricted cash at the end of this period	$	50,580	$	—	$	—	$	50,580
Reconciliation of cash, cash equivalents, and restricted cash reported in the statement of financial position
Cash and cash equivalents	$	50,490	$	—	$	—	$	50,490
Restricted cash included in other long-term assets		90		—		—		90
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	50,580	$	—	$	—	$	50,580
Supplemental non-cash investing and financing activities:
Fair value of contingent consideration issued in a business combination	$	12,158	$	—	$	—	$	12,158
Fair value of equity issued as consideration in a business combination	$	6,599	$	—	$	—	$	6,599
Effective settlement of pre-closing VCN financing	$	417	$	—	$	—	$	417
Goodwill measurement period adjustment	$	(884)	$	—	$	—	$	(884)
In-process R&D measurement period adjustment	$	810	$	—	$	—	$	810
Deferred tax liability measurement period adjustment	$	202	$	—	$	—	$	202
Effect of Warrant exercise price adjustment	$	340	$	—	$	—	$	340