Full Press Release Details
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL
On November 8, 2023, Elutia Inc. (the "Company") completed
the previously announced sale of its Orthobiologics segment (the "Orthobiologics Business") to Berkeley Biologics, LLC ("Berkeley").
The sale was structured as an asset purchase, which occurred by divestiture of all the Orthobiologics Business assets and liabilities.
After the divestiture, the Company will no longer consolidate the Orthobiologics Business into its financial results (the entire transaction
is being referred to as the "Sale").
The unaudited pro forma consolidated financial information
is based on historical financial statements of the Company as adjusted for the unaudited pro forma effects of the Sale. The unaudited
pro forma consolidated financial information should be read in conjunction with:
The following unaudited Pro Forma Condensed Consolidated Statement
of Operations for the nine months ended September 30, 2023 and for the years ended December 31, 2022 and 2021 reflect the Company's
results as if the Sale had occurred as of January 1, 2021 in that they reflect the reclassification of the Orthobiologics Business as
discontinued operations for all periods presented. The adjustments in the "Transaction Accounting Adjustments" column in the
unaudited Pro Forma Condensed Consolidated Statement of Operations for the year ended December 31, 2022 give effect to the Sale and related
transactions as if they had occurred on January 1, 2022. The following unaudited Pro Forma Condensed Balance Sheet as of September 30,
2023 presents the financial position of the Company as if the Sale had occurred on September 30, 2023.
The unaudited pro forma adjustments and related assumptions
are described in the accompanying notes to the unaudited pro forma consolidated financial information. The unaudited pro forma consolidated
financial information has been prepared based upon currently available information and assumptions that are deemed appropriate by the
Company's management. The unaudited pro forma consolidated financial information is for informational and illustrative purposes
only and is not intended to be indicative of what actual results would have been had the Sale occurred on the dates assumed, nor does
such data purport to represent the consolidated financial results of the Company for future periods. The pro forma adjustments are based
on currently available information, estimates and assumptions that the Company believes are reasonable in order to reflect, on a pro forma
basis, the impact of this disposition on our historical financial information. The actual financial position and results of operations
may differ significantly from the unaudited pro forma amounts reflected herein due to a variety of factors.
PRO FORMA CONDENSED CONSOLIDATED
As of September 30, 2023
(In Thousands, Except
for Share and Per Share Data)
| Historical | Transaction Accounting Adjustments | Pro Forma | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash | $ | 14,517 | $ | 11,826 | (b) | $ | 26,343 | |||||
| Accounts receivable | 2,883 | - | 2,883 | |||||||||
| Inventory | 6,503 | - | 6,503 | |||||||||
| Receivables of FiberCel litigation costs | 7,452 | - | 7,452 | |||||||||
| Prepaid expenses and other current assets | 452 | - | 452 | |||||||||
| Current assets of discontinued operations | 7,320 | (7,320 | )(a) | - | ||||||||
| Total current assets | 39,127 | 4,506 | 43,633 | |||||||||
| Property and equipment, net | 175 | - | 175 | |||||||||
| Intangible assets, net | 12,520 | - | 12,520 | |||||||||
| Operating lease right-of-use assets and other | 155 | - | 155 | |||||||||
| Noncurrent assets of discontinued operations | 2,603 | (2,603 | )(a) | - | ||||||||
| Total assets | $ | 54,580 | $ | 1,903 | $ | 56,483 | ||||||
| Liabilities and Stockholders' Deficit | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 2,962 | $ | - | $ | 2,962 | ||||||
| Accrued expenses | 10,723 | 900 | (c) | 11,623 | ||||||||
| Payables to tissue suppliers | 707 | - | 707 | |||||||||
| Current portion of revenue interest obligation | 11,053 | - | 11,053 | |||||||||
| Contingent liability for FiberCel litigation | 15,702 | - | 15,702 | |||||||||
| Current operating lease liabilities | 399 | - | 399 | |||||||||
| Current liabilities of discontinued operations | 3,190 | (3,190 | )(a) | - | ||||||||
| Current portion of long-term debt | - | 1,977 | (d) | 1,977 | ||||||||
| Total current liabilities | 44,736 | (313 | ) | 44,423 | ||||||||
| Long-term debt | 25,278 | (3,955 | )(d) | 21,323 | ||||||||
| Long-term revenue interest obligation | 5,471 | - | 5,471 | |||||||||
| Warrant liability | 7,550 | - | 7,550 | |||||||||
| Other long-term liabilities | 433 | - | 433 | |||||||||
| Noncurrent liabilities from discontinued operations | 585 | (585 | )(a) | - | ||||||||
| Total liabilities | 84,053 | (4,853 | ) | 79,200 | ||||||||
| Stockholders' equity (deficit): | ||||||||||||
| Class A Common stock | 19 | - | 19 | |||||||||
| Class B Common stock | 4 | - | 4 | |||||||||
| Additional paid-in capital | 136,834 | - | 136,834 | |||||||||
| Accumulated deficit | (166,330 | ) | 6,756 | (e) | (159,574 | ) | ||||||
| Total stockholders' deficit | (29,473 | ) | 6,756 | (22,717 | ) | |||||||
| Total liabilities and stockholders' deficit | $ | 54,580 | $ | 1,903 | $ | 56,483 |
The accompanying notes are an integral part of
these unaudited pro forma condensed consolidated financial statements.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
For the Nine Months Ended
(In Thousands, Except
Share and Per Share Data)
| Historical | Transaction Accounting Adjustments | Pro Forma | ||||||||||
| Net sales | $ | 18,870 | $ | - | $ | 18,870 | ||||||
| Cost of goods sold | 9,943 | - | 9,943 | |||||||||
| Gross profit | 8,927 | - | 8,927 | |||||||||
| Sales and marketing | 10,514 | 10,514 | ||||||||||
| General and administrative | 10,137 | - | 10,137 | |||||||||
| Research and development | 3,016 | - | 3,016 | |||||||||
| FiberCel litigation costs, net | 7,278 | - | 7,278 | |||||||||
| Total operating expenses | 30,945 | - | 30,945 | |||||||||
| Loss from operations | (22,018 | ) | (22,018 | ) | ||||||||
| Interest expense | 4,285 | - | 4,285 | |||||||||
| Other income, net | (312 | ) | - | (312 | ) | |||||||
| Loss before provision for income taxes | (25,991 | ) | - | (25,991 | ) | |||||||
| Income tax expense | 36 | - | 36 | |||||||||
| Net loss from continuing operations | $ | (26,027 | ) | $ | - | $ | (26,027 | ) | ||||
| Net loss from continuing operations per share - basic and diluted | $ | (1.58 | ) | $ | (1.58 | ) | ||||||
| Weighted average common shares outstanding - basic and diluted | 16,464,262 | 16,464,262 |
The accompanying notes are an integral part of
these unaudited pro forma condensed consolidated financial statements.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
For the Twelve Months
Ended December 31, 2022
(In Thousands, Except
Share and Per Share Data)
| Historical | Orthobiologics Discontinued Operations (Note a) | Adjusted for Discontinued Operations | Transaction Accounting Adjustments | Pro Forma | ||||||||||||||||
| Net sales | $ | 49,187 | $ | (25,338 | ) | $ | 23,849 | $ | - | $ | 23,849 | |||||||||
| Cost of goods sold | 29,965 | (17,755 | ) | 12,210 | - | 12,210 | ||||||||||||||
| Gross profit | 19,222 | (7,583 | ) | 11,639 | - | 11,639 | ||||||||||||||
| Sales and marketing | 20,195 | (2,345 | ) | 17,850 | 17,850 | |||||||||||||||
| General and administrative | 16,627 | (576 | ) | 16,051 | 900 | (c) | 16,951 | |||||||||||||
| Research and development | 8,940 | (1,213 | ) | 7,727 | - | 7,727 | ||||||||||||||
| FiberCel litigation costs, net | 5,200 | - | 5,200 | - | 5,200 | |||||||||||||||
| Total operating expenses | 50,962 | (4,134 | ) | 46,828 | 900 | 47,728 | ||||||||||||||
| Loss from operations | (31,740 | ) | (3,449 | ) | (35,189 | ) | (900 | ) | (36,089 | ) | ||||||||||
| Interest expense | 5,282 | (164 | ) | 5,118 | - | 5,118 | ||||||||||||||
| Other income, net | (4,159 | ) | - | (4,159 | ) | - | (4,159 | ) | ||||||||||||
| Loss before provision for income taxes | (32,863 | ) | (3,285 | ) | (36,148 | ) | (900 | ) | (37,048 | ) | ||||||||||
| Income tax expense | 34 | - | 34 | - | 34 | |||||||||||||||
| Net from continuing operations loss | $ | (32,897 | ) | $ | (3,285 | ) | $ | (36,182 | ) | $ | (900 | ) | $ | (37,082 | ) | |||||
| Net loss from continuing operations per share - basic and diluted | $ | (2.38 | ) | $ | (2.68 | ) | ||||||||||||||
| Weighted average common shares outstanding - basic and diluted | 13,832,887 | 13,832,887 |
The accompanying notes are an integral part of
these unaudited pro forma condensed consolidated financial statements.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF
For the Twelve Months
Ended December 31, 2021
(In Thousands, Except
Share and Per Share Data)
| Historical | Orthobiologics Discontinued Operations (Note a) | Adjusted for Discontinued Operations | Transaction Accounting Adjustments | Pro Forma | ||||||||||||||||
| Net sales | $ | 47,390 | $ | (26,934 | ) | $ | 20,456 | $ | - | $ | 20,456 | |||||||||
| Cost of goods sold | 28,368 | (17,192 | ) | 11,176 | - | 11,176 | ||||||||||||||
| Gross profit | 19,022 | (9,742 | ) | 9,280 | - | 9,280 | ||||||||||||||
| Sales and marketing | 18,825 | (2,170 | ) | 16,655 | - | 16,655 | ||||||||||||||
| General and administrative | 13,687 | (563 | ) | 13,124 | - | 13,124 | ||||||||||||||
| Research and development | 9,266 | (1,512 | ) | 7,754 | - | 7,754 | ||||||||||||||
| FiberCel litigation costs, net | 276 | - | 276 | - | 276 | |||||||||||||||
| Total operating expenses | 42,054 | (4,245 | ) | 37,809 | 37,809 | |||||||||||||||
| Loss from operations | (23,032 | ) | (5,497 | ) | (28,529 | ) | - | (28,529 | ) | |||||||||||
| Interest expense | 5,324 | - | 5,324 | - | 5,324 | |||||||||||||||
| Other income, net | (3,579 | ) | - | (3,579 | ) | - | (3,579 | ) | ||||||||||||
| Loss before provision for income taxes | (24,777 | ) | (5,497 | ) | (30,274 | ) | - | (30,274 | ) | |||||||||||
| Income tax expense | 55 | - | 55 | - | 55 | |||||||||||||||
| Net loss from continuing operations | $ | (24,832 | ) | $ | (5,497 | ) | $ | (30,329 | ) | $ | - | $ | (30,329 | ) | ||||||
| Net loss from continuing operations per share - basic and diluted | $ | (2.38 | ) | $ | (2.90 | ) | ||||||||||||||
| Weighted average common shares outstanding - basic and diluted | 10,444,767 | 10,444,767 |
The accompanying notes are an integral part of
these unaudited pro forma condensed consolidated financial statements.
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
Orthobiologics Business Discontinued Operations:
Transaction Accounting Adjustments:
| Cash received from sale of Orthobiologics Business at closing | $ | 14,554 | ||
| Cash paid in repayment of SWK loan at closing | (1,977 | ) | ||
| Cash paid for transaction fees at closing | (750 | ) | ||
| Total Pro Forma Adjustment to Cash | $ | 11,826 |