Basis of Presentation and Consolidation

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

2. Basis of Presentation and Consolidation

The accompanying condensed consolidated financial statements as of June 30, 2015, and for the three and six months ended June 30, 2015 and 2014, have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and generally accepted accounting principles in the United States of America (“GAAP”) for condensed consolidated financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these condensed consolidated financial statements reflect all adjustments which are necessary for a fair statement of the Company’s financial position and results of its operations, as of and for the periods presented. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on February 27, 2015.

The information presented in the condensed consolidated financial statements and related notes as of June 30, 2015, and for the three and six months ended June 30, 2015 and 2014, is unaudited. The December 31, 2014 condensed consolidated balance sheet included herein was derived from the audited financial statements as of that date, but does not include all disclosures, including notes, required by GAAP for complete financial statements.

Interim results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2015, or any future period.

On September 23, 2014, the Company merged its wholly owned subsidiary, Merrimack Pharmaceuticals (Bermuda) Ltd. (“Merrimack Bermuda”), with and into the Company, with the Company being the surviving corporation (the “Merger”). These condensed consolidated financial statements include the consolidated accounts of Merrimack Bermuda prior to the Merger.

These condensed consolidated financial statements also include the accounts of the Company and its majority owned subsidiary, Silver Creek Pharmaceuticals, Inc. (“Silver Creek”). All intercompany transactions and balances have been eliminated in consolidation.

During the six months ended June 30, 2015, Silver Creek issued and sold a total of 1.0 million shares of Silver Creek Series B preferred stock at a price per share of $1.35 to investors and received net proceeds of $1.2 million, after deducting issuance costs. The Company’s ownership of Silver Creek was 57% and 60% as of June 30, 2015 and December 31, 2014, respectively. The consolidated financial statement activity related to Silver Creek was as follows:


(in thousands)	Non-Controlling Interest
Balance at December 31, 2014	$	69
Net income attributable to Silver Creek		204

Balance at June 30, 2015	$	273

(in thousands)	Non-Controlling Interest
Balance at December 31, 2013	$	337
Net loss attributable to Silver Creek		(350	)

Balance at June 30, 2014	$	(13	)