Full Press Release Details
UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the Securities and Exchange Commission,
or SEC, on March 30, 2015, we are currently exploring the divestiture of our contract research and development services business (the service business ). A third-party firm has been engaged and is actively assisting us in evaluating
several divestiture options including a third-party sale, spin-off, management buy-out transaction, or shut-down process. We believe the divestiture of the service business is probable of occurring.
The unaudited pro forma financial information provides the financial condition and results of our operations after giving effect to a
divestiture of the service business. We expect to report the service business in discontinued operations when the relevant criteria have been met, pursuant to FASB Topic 205-20, Presentation of Financial Statements Discontinued
Operations, and FASB Topic 360, Property, Plant, and Equipment. The historical financial information has been adjusted to give effect to events that are directly attributable to the divestiture of the service business based on assumptions
that management believes are reasonable. The unaudited pro forma financial information excludes any costs that are associated with any restructuring events or a divestiture transaction, and no transaction gain or loss has been assumed because we
cannot reasonably determine which divestiture option will be pursued. The unaudited pro forma financial information represents management s best estimate of our financial position and results of operations that would have been obtained had a
divestiture been completed as of the date or for the periods presented, but may not necessarily be indicative of or comparable to the financial position or results of operations that may be obtained in the future.
The unaudited pro forma condensed balance sheet has been prepared as of December 31, 2014, and gives effect to a divestiture of the
service business as if it had occurred on that date. The unaudited pro forma condensed statements of operations have been prepared for the years ended December 31, 2014 and 2013, and give effect to a divestiture of the service business as if it
had occurred as of January 1, 2013.
Historically, we have viewed and managed our operations as a single, shared group of assets and
resources that we have utilized to provide contract research and development services to customers and to advance our internal research and development efforts for the discovery and development of proprietary and novel compounds. All of our
activities have been conducted within a single facility, which we lease from a third-party landlord, and the majority of our property, plant, and equipment consist of leasehold improvements related to our leased facility. We manage and allocate
resources to support both our contract research and development service activities, from which we have derived substantially all of our revenue, and our internal research and development activities. Our general and administrative expenses support
all of our operating activities. In preparing the pro forma financial information herein, we adjusted our historical financial information to exclude all service revenue, and to exclude all expenses, assets and liabilities associated with the
The unaudited pro forma financial information herein has been derived from and should be read in conjunction with our
historical financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 30, 2015.
UNAUDITED CONDENSED PRO FORMA BALANCE SHEET
AS OF DECEMBER 31, 2014
(in thousands, except share amounts)
| SCYNEXIS, Inc. | Pro Forma | SCYNEXIS, Inc. | ||||||||||
| Historical | Adjustments (a) | Pro Forma | ||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | $ | 32,243 | $ | 32,243 | ||||||||
| Accounts receivable, net of allowance for bad debts | 1,118 | (1,118 | ) | |||||||||
| Unbilled services | 383 | (383 | ) | |||||||||
| Prepaid expenses and other current assets | 992 | (245 | ) | 747 | ||||||||
| Total current assets | 34,736 | (1,746 | ) | 32,990 | ||||||||
| Property and equipment, net of accumulated depreciation | 4,835 | (3,457 | ) (b) | 1,378 | ||||||||
| Other assets | 101 | (66 | ) | 35 | ||||||||
| Total assets | $ | 39,672 | $ | (5,269 | ) | $ | 34,403 | |||||
| Liabilities and stockholders equity (deficit) | ||||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | 855 | $ | (475 | ) | $ | 380 | |||||
| Accrued expenses | 2,497 | (1,362 | ) | 1,135 | ||||||||
| Deferred revenue, current portion | 449 | (192 | ) | 257 | ||||||||
| Total current liabilities | 3,801 | (2,029 | ) | 1,772 | ||||||||
| Deferred revenue, net of current portion | 1,146 | (253 | ) | 893 | ||||||||
| Deferred rent | 1,294 | (842 | ) (b) | 452 | ||||||||
| Total liabilities | 6,241 | (3,124 | ) | 3,117 | ||||||||
| Stockholders equity (deficit): | ||||||||||||
| Common stock, $0.001 par value, authorized 125,000,000 shares; 8,512,103 shares issued and outstanding as of December 31, 2014 | 8 | 8 | ||||||||||
| Additional paid-in capital | 150,934 | 150,934 | ||||||||||
| Accumulated deficit | (117,511 | ) | (2,145 | ) | (119,656 | ) | ||||||
| Total stockholders equity (deficit) | 33,431 | (2,145 | ) | 31,286 | ||||||||
| Total liabilities and stockholders equity (deficit) | $ | 39,672 | $ | (5,269 | ) | $ | 34,403 |
UNAUDITED CONDENSED PRO FORMA STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2014
(in thousands, except share and per share amounts)
| SCYNEXIS, Inc. | Pro Forma | SCYNEXIS, Inc. | ||||||||||
| Historical | Adjustments | Pro Forma | ||||||||||
| Revenue related party | $ | 7,288 | $ | (7,288 | ) | $ | ||||||
| Revenue | 11,736 | (10,480 | ) | 1,256 | ||||||||
| Total revenue | 19,024 | (17,768 | ) (c) | 1,256 | ||||||||
| Cost of revenue | 15,446 | (15,446 | ) (d) | |||||||||
| Gross profit (loss) | 3,578 | (2,322 | ) | 1,256 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 8,287 | (e) | 8,287 | |||||||||
| Selling, general and administrative | 7,568 | (1,473 | ) (f) | 6,095 | ||||||||
| Gain on insurance recovery | (165 | ) | 165 | (g) | ||||||||
| Total operating expenses | 15,690 | (1,308 | ) | 14,382 | ||||||||
| Loss from operations | (12,112 | ) | (1,014 | ) | (13,126 | ) | ||||||
| Other (income) expense: | ||||||||||||
| Amortization of deferred financing costs and debt discount | 755 | 755 | ||||||||||
| Loss on extinguishment of debt | 1,389 | 1,389 | ||||||||||
| Interest expense on beneficial conversion feature | ||||||||||||
| Interest expense related party | ||||||||||||
| Interest expense, net | 48 | 48 | ||||||||||
| Derivative fair value adjustment | (10,080 | ) | (10,080 | ) | ||||||||
| Other expense | 10 | 10 | ||||||||||
| Total other income | (7,878 | ) | (7,878 | ) | ||||||||
| Loss from continuing operations | $ | (4,234 | ) | $ | (1,014 | ) | $ | (5,248 | ) | |||
| Deemed dividend for beneficial conversion feature on Series D-2 preferred stock | (909 | ) | (909 | ) | ||||||||
| Deemed dividend for antidilution adjustments to convertible preferred stock | (214 | ) | (214 | ) | ||||||||
| Accretion of convertible preferred stock | (510 | ) | (510 | ) | ||||||||
| Net loss from continuing operations attributable to common stockholders basic | (5,867 | ) | (1,014 | ) | (6,881 | ) | ||||||
| Derivative fair value adjustment | (10,080 | ) | (10,080 | ) | ||||||||
| Net loss from continuing operations attributable to common stockholders diluted | $ | (15,947 | ) | $ | (1,014 | ) | $ | (16,961 | ) | |||
| Per share information: | ||||||||||||
| Net loss per common share from continuing operations, basic | $ | (1.04 | ) | $ | (1.22 | ) | ||||||
| Net loss per common share from continuing operations, diluted | $ | (2.69 | ) | $ | (2.86 | ) | ||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 5,663,311 | 5,663,311 | ||||||||||
| Diluted | 5,937,087 | 5,937,087 |
UNAUDITED CONDENSED PRO FORMA STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 2013
(in thousands, except share and per share amounts)
| SCYNEXIS, Inc. Historical | Pro Forma Adjustments | SCYNEXIS, Inc. Pro forma | ||||||||||
| Revenue related party | $ | 7,288 | $ | (7,288 | ) | $ | ||||||
| Revenue | 9,569 | (9,412 | ) | 157 | ||||||||
| Total revenue | 16,857 | (16,700 | ) (c) | 157 | ||||||||
| Cost of revenue | 16,305 | (16,305 | ) (d) | |||||||||
| Gross profit (loss) | 552 | (395 | ) | 157 | ||||||||
| Operating expenses: | ||||||||||||
| Research and development | 4,363 | (e) | 4,363 | |||||||||
| Selling, general and administrative | 4,381 | (1,801 | ) (f) | 2,580 | ||||||||
| Gain on sale of asset | (988 | ) | 988 | (g) | ||||||||
| Total operating expenses | 7,756 | (813 | ) | 6,943 | ||||||||
| Loss from operations | (7,204 | ) | 418 | (6,786 | ) | |||||||
| Other expense: | ||||||||||||
| Amortization of deferred financing costs and debt discount | 3,485 | 3,485 | ||||||||||
| Interest expense on beneficial conversion feature | 10,802 | 10,802 | ||||||||||
| Interest expense related party | 892 | 892 | ||||||||||
| Interest expense, net | 192 | 192 | ||||||||||
| Derivative fair value adjustment | 7,886 | 7,886 | ||||||||||
| Total other expense | 23,257 | 23,257 | ||||||||||
| Loss from continuing operations | $ | (30,461 | ) | $ | 418 | $ | (30,043 | ) | ||||
| Deemed dividend for beneficial conversion feature on Series D-2 preferred stock | (4,232 | ) | (4,232 | ) | ||||||||
| Deemed dividend for antidilution adjustments to convertible preferred stock | (6,402 | ) | (6,402 | ) | ||||||||
| Accretion of convertible preferred stock | (5,714 | ) | (5,714 | ) | ||||||||
| Net loss from continuing operations attributable to common stockholders basic and diluted | $ | (46,809 | ) | $ | 418 | $ | (46,391 | ) | ||||
| Per share information: | ||||||||||||
| Net loss per common share from continuing operations, basic and diluted | $ | (139.47 | ) | $ | (138.23 | ) | ||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic and diluted | 335,612 | 335,612 |