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CRXM Gene Biotherapeutics

Filed: 24 Aug 09, 8:00pm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K/A

Amendment No. 1

 

 

CURRENT REPORT

pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

DATE OF REPORT (Date of earliest event reported): July 24, 2009

001-33635

(Commission file number)

 

 

CARDIUM THERAPEUTICS, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware 27-0075787
(State of incorporation) 

(IRS Employer

Identification No.)

 

12255 El Camino Real, Suite 250

San Diego, California 92130

 (858) 436-1000
(Address of principal executive offices) (Registrant’s telephone number)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


EXPLANATORY NOTE

On July 29, 2009, Cardium Therapeutics, Inc., a Delaware corporation (“Cardium”), filed a Form 8-K to report it completed the asset sale of Cardium’s InnerCool Therapies business to Royal Philips Electronics (“Philips”). In response to part (b)(1) of Item 901 of such Form 8-K, Cardium stated that it would file the required financial information by amendment, as permitted by Item 9.01(b)(1) of Form 8-K. Cardium hereby amends its Form 8-K filed on July 29, 2009 to provide the required financial information.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(b)(1) Pro Forma Financial Information

The following unaudited pro forma condensed consolidated balance sheets as of June 30, 2009 give effect to the sale of Cardium’s Innercool subsidiary as if the sales had been consummated on June 30, 2009. The following unaudited pro forma condensed consolidated statements of operations for the fiscal year ended December 31, 2008 and the six months ended June 30, 2009 give effect to the sale of Cardium’s Innercool subsidiary as if the sale had been consummated at the beginning of those periods. The unaudited pro forma condensed consolidated financial statements are not necessarily indicative of the results that actually would have occurred if the sales had taken place during such period or that may be attained in the future.

The unaudited pro forma condensed consolidated financial statements should be read in conjunction with Cardium’s consolidated financial statements and notes thereto. We have prepared the unaudited pro forma condensed consolidated financial information based upon estimates and assumptions we have deemed appropriate based upon currently available information, and such estimates and assumptions are discussed in the accompanying notes. We believe that our estimates and assumptions are reasonable, and the significant effects of this sale have been properly reflected in our unaudited pro forma condensed consolidated financial statements. However, actual results will differ from the estimates and assumptions used. The unaudited condensed consolidated financial information is presented for illustrative purposes and is not designed to represent, and does not represent, what the financial position or operating results would have been had the sale of substantially all of the assets of Cardium’s InnerCool business been completed as of the dates assumed, nor is it intended to project Cardium’s future financial position or results of operations.


CARDIUM THERAPEUTICS, INC.

(A Development Stage Company)

PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited)

June 30, 2009

 

   As
Reported
  Proforma
Adjustments
  Use of
Proceeds
  Notes  Pro Forma
Total
 
ASSETS       

CURRENT ASSETS

       

Cash and cash equivalents

  $773,084   $—     $2,571,594   1  $3,344,678  

Accounts receivable

   42,240    —      —        42,240  

Current assets held for sale

   6,390,795    (6,390,795  —     2   —    

Deferred financing costs, net

   179,352    —      —        179,352  

Prepaid expenses and other current assets

   77,051    —      —        77,051  
                   

Total current assets

   7,462,522    (6,390,795  2,571,594      3,643,321�� 

Restricted cash

   400,000    —      1,125,000   1   1,525,000  

Property equipment, net

   583,489    —      —        583,489  

Long term assets held for sale

   40,103    (40,103  —     2   —    

Deposits

   179,938    —      —        179,938  
                   

TOTAL ASSETS

  $8,666,052   $(6,430,898 $3,696,594     $5,931,748  
                   
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY       

CURRENT LIABILITIES

       

Accounts payable

  $3,867,139   $—     $—       $3,867,139  

Current liabilities of business held for sale

   2,231,230    (2,143,632  (87,598 1 & 2   —    

Accrued liabilities

   2,182,238    —      (423,058 1   1,759,180  

Short term debt

   9,357,392    —      (6,741,000 1   2,616,392  
                   

Subtotal

   17,637,999    (2,143,632  (7,251,656    8,242,711  

Derivative liabilities - fair value of warrants

   20,382,056    —      —        20,382,056  
                   

Total current liabilities

   38,020,055    (2,143,632  (7,251,656    28,624,767  

Deferred rent

   195,231    —      —        195,231  
                   

TOTAL LIABILITIES

   38,215,286    (2,143,632  (7,251,656    28,819,998  
                   

STOCKHOLDERS’ DEFICIENCY

       

Common stock, $0.0001 par value; 100,000,000 shares authorized; 46,930,439 shares issued and outstanding

   4,699    —      —        4,699  

Additional paid-in capital

   60,870,800    —      —        60,870,800  

Deficit accumulated during development stage

   (90,424,733  (4,287,266  10,948,250   1 & 2   (83,763,749
                   

TOTAL STOCKHOLDERS’ DEFICIENCY

   (29,549,234  (4,287,266  10,948,250      (22,888,250
                   

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY

  $8,666,052   $(6,430,898 $3,696,594     $5,931,748  
                   

see notes to the pro forma condensed combined financial statements


CARDIUM THERAPEUTICS, INC.

(A Development Stage Company)

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2008

 

   As
Reported
  Pro Forma
Adjustments
  Pro Forma
Total
 
      (3)    

REVENUES

  $2,417,385   $(2,000,473 $416,912  

COST OF GOODS SOLD

   1,431,574    (1,431,574  —    
             
    

GROSS MARGIN

   985,811    (568,899  416,912  
             

OPERATING EXPENSES

   —      —      —    

Research and development

   12,315,652    (1,273,722  11,041,930  

General and administrative

   11,600,115    (5,070,771  6,529,344  

Amortization of Intangibles

   789,656    (789,656  —    
             

Total operating expenses

   24,705,423    (7,134,149  17,571,274  

Interest income

   102,201    —      102,201  

Interest (expense)

   (980,647  430820    (549,827
             
  $(24,598,058 $6,996,070   $(17,601,988
             

EARNINGS PER SHARE

    

Net loss per share - basic and diluted

  $(0.55  —     $(0.39
          

Weighted average shares outstanding - Basic and diluted

   44,978,169    —      44,978,169  

see notes to the pro forma condensed combined financial statement


CARDIUM THERAPEUTICS, INC.

(A Development Stage Company)

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2009

 

   As
Reported
  Pro Forma
Adjustments
  Pro Forma
Total
 
      (3)    

GRANT REVENUES

  $25,632   $—    $25,632  

OPERATING EXPENSES

     

Research and development

   2,351,307    —     2,351,307  

General and administrative

   2,510,141    —     2,510,141  
             

Total operating expenses

   4,861,448    —     4,861,448  

Change in fair market value of derivatives

   (14,474,181  —     (14,474,181

Interest income

   6,773    —     6,773  

Interest (expense)

   (4,550,115  —     (4,550,115
             

Net loss from continuing operations

   (23,853,339  —     (23,853,339

Net loss from discontinued operations

   (2,026,212  2,026,212   —    
          

Net loss

  $(25,879,551 $2,026,212  $(23,853,339
             

Basic and diluted per common shares

     

Net loss from continuing operations

  $(0.51  —    $(0.51
           

Net loss from discontinued operations

  $(0.04  —    $0.00  
           

Net loss

  $(0.55  —    $(0.51
           

Weighted average shares outstanding - Basic and diluted

   46,930,788    —     46,930,788  
           

See notes to the pro forma condensed consolidated financial statements.


Cardium Therapeutics, Inc.

NOTES TO PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE FISCAL QUARTER ENDING June 30, 2009

(unaudited)

 

A.The pro forma condensed consolidated balance sheets are computed assuming the transactions were consummated on June 30, 2009, and include adjustments that give effect to events that are directly attributed to the Innercool transaction and are factually supportable regardless of whether they have a continuing impact or are nonrecurring.

 

B.Cash reflects the net proceeds is summarized as follows:

 

Sale Proceeds

  $11,250,000  

Innercool Liabilities Not Assumed

  $(87,598

Commission

  $(141,750

Legal and Insurance Fees

  $(160,000

Short term debt repayments

  $(6,741,000

Interest payments

  $(423,058
     

Subtotal

  $3,696,594  

Escrowed Amount

  $(1,125,000
     

Net Proceeds

  $2,571,594  

Does not include assumed liabilities of approximately $1.5 million.

Balance Sheet pro forma note:

 

Note 1To reflect receipt of cash and payments made with proceeds

 

Increase  Cash  2,571,594  
Increase  Restricted cash  1,125,000  
Decrease  

Accrued Liabilities for liabilities paid and

not assumed by Philips

  (87,598
Decrease  Accrued interest expense paid to note holders  (423,058
Decrease  Short-term debt for payment to note holders  (6,741,000
Increase  Stockholders equity from proceeds  10,948,250  

 

Note 2Eliminates the effect of Innercool Therapies, Inc. on the consolidated balance sheet as if the sale had taken place at June 30, 2009

Income Statement pro forma note:

 

Note 3Eliminates the effect of Innercool Therapies, Inc. on the consolidated statement of income as if the sale had taken place at the beginning of the period presented.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    CARDIUM THERAPEUTICS, INC.
Date: August 25, 2009  By: 

/s/    Dennis M. Mulroy

   Dennis M. Mulroy
   Chief Financial Officer