EX-99.2 4 ex99x2.htm EXHIBIT 99.2

Exhibit 99.2

 

 

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

The following unaudited pro forma condensed combined financial information was prepared using the acquisition method of accounting under U.S. GAAP.

On April 1, 2020 (the “Closing Date”), OpGen, Inc. (“OpGen” or the “Company”) completed its business combination transaction (the “Transaction”) with Curetis N.V., a public company with limited liability under the laws of the Netherlands (the “Seller”), as contemplated by the Implementation Agreement, dated as of September 4, 2019 (the “Implementation Agreement”), by and among the Company, the Seller, and Crystal GmbH, a private limited liability company organized under the laws of the Federal Republic of Germany and wholly owned subsidiary of the Company (“Purchaser”). Pursuant to the Implementation Agreement, the Purchaser acquired all of the shares of Curetis GmbH, a private limited liability company organized under the laws of the Federal Republic of Germany (“Curetis GmbH”) and certain other assets and liabilities of the Seller (together, the “Curetis Business”), as further described below, and paid, as the sole consideration, 2,028,208 shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), to the Seller, and reserved for future issuance (a) 134,356 shares of Common Stock, in connection with its assumption of the Seller’s 2016 Stock Option Plan, as amended (the “Seller Stock Option Plan”), and the outstanding awards thereunder, and (b) 500,000 shares of Common Stock to be issued upon the conversion, if any, of certain convertible notes issued by the Seller. The 2,028,208 shares of Common Stock issued to the Seller represented approximately 13.8% of the outstanding Common Stock of the Company as the Closing Date.

At the closing, the Company assumed all of the liabilities of the Seller solely and exclusively related to the acquired business, which is providing innovative solutions, through development of proprietary platforms, diagnostic content, applied bioinformatics, lab services, research services and commercial collaborations and agreements, for molecular microbiology, diagnostics designed to address the global challenge of detecting severe infectious diseases and identifying antibiotic resistances in hospitalized patient. Pursuant to the Implementation Agreement, the Company also assumed and adopted the Seller Stock Option Plan as an Amended and Restated Stock Option Plan of the Company. In connection with the foregoing, the Company assumed all awards thereunder that were outstanding as of the Closing Date and converted such awards into options to purchase shares of Common Stock pursuant to the terms of the applicable award. In addition, the Company assumed, at the closing, all of the outstanding convertible notes issued by Seller in favor of YA II PN, LTD (“Yorkville Advisors”), pursuant to the previously disclosed Assignment of the Agreement for the Issuance of and Subscription to Notes Convertible into Shares, dated February 24, 2020 (the “Assignment Agreement”), and entered into pursuant to the Implementation Agreement.

The unaudited pro forma condensed combined balance sheet data assume that the business combination took place on March 31, 2020 and combines the historical balance sheets of OpGen and the Curetis Business as of such date. The unaudited pro forma condensed combined statement of operations data for the year ended December 31, 2019 and the three months ended March 31, 2020, assume that the business combination took place as of January 1, 2019, and combine the historical results of OpGen and the Curetis Business for the year ended December 31, 2019 and the three months ended March 31, 2020, respectively. The unaudited pro forma condensed combined financial information was prepared in accordance with the rules and regulations of Article 11 of SEC Regulation S-X. The historical financial statements of OpGen and the Curetis Business have been adjusted to give pro forma effect to events that are (i) directly attributable to the transaction, (ii) factually supportable, and (iii) with respect to the unaudited pro forma condensed combined statements of operations, expected to have a continuing impact on the Companies combined results.

The interim, unaudited March 31, 2020 financial information of the Curetis Business was derived from the financial records of the Curetis Business. The December 31, 2019 financial information was taken from the Curetis Business Audited Historical Consolidated Financial Statements and Related Notes filed as exhibit 99.1 of the attached 8-K/A. The Curetis Business Audited Historical Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, or IFRS. The consolidated financial statements of OpGen were prepared in accordance with U.S. GAAP. OpGen has performed a preliminary analysis and has not identified significant differences identified between IFRS and U.S. GAAP for the purposes of presenting the unaudited pro forma condensed combined financial statements. In addition, the unaudited condensed combined financial statements reflect reclassifications to conform the Curetis Business historical accounting presentation to OpGen’s accounting presentation.

 

F-1
 
 

 

The consolidated financial statements of OpGen are presented in U.S. dollars, or USD, whereas, the financial statements of the Curetis Business are presented in Euros. Therefore, the unaudited pro forma condensed combined financial information includes adjustments to convert the Curetis Business’ financial information from Euros to USD.

The Curetis Business’ assets and liabilities will be measured and recognized at their fair values as of the transaction date and combined with the assets, liabilities and results of operations of OpGen after the consummation of the business combination. The allocation of the purchase price to acquired assets and assumed liabilities based on their underlying fair values requires the extensive use of significant estimates and management’s judgment. The allocation of the purchase price is preliminary at this time, and will remain as such until management completes valuations and other studies in order to finalize the valuation of the net assets acquired. These provisional estimates will be adjusted upon the availability of further information regarding events or circumstances which exist at the acquisition date and such adjustments may be significant.

The unaudited pro forma condensed combined financial information is based on the assumptions and adjustments that are described in the accompanying notes. Accordingly, the pro forma adjustments are preliminary, subject to further revision as additional information becomes available and additional analyses are performed, including but not limited to the determination of differences between IFRS and U.S. GAAP, and of the application of purchase price adjustments, and have been made solely for the purpose of providing unaudited pro forma condensed combined financial information. Differences between these preliminary estimates and the final accounting could occur and these differences could have a material impact on the accompanying unaudited pro forma condensed combined financial information and the Company’s future results of operations and financial position.

The unaudited pro forma condensed combined financial information does not give effect to the potential impact of current financial conditions, regulatory matters, operating efficiencies or other savings or expenses that may be associated with the integration of the business of OpGen and the Curetis Business. The unaudited pro forma condensed combined financial information is preliminary and has been prepared for illustrative purposes only and is not necessarily indicative of the financial position or results of operations in future periods or the results that actually would have been realized had OpGen and the Curetis Business been a combined company during the specified periods. The actual results reported in periods following the business combination may differ significantly from those reflected in the unaudited pro forma condensed combined financial information presented herein for a number of reasons, including, but not limited to, differences in actual performance compared to the assumptions used to prepare this pro forma financial information.

The unaudited pro forma condensed combined financial information, including the notes thereto, should be read in conjunction with the separate historical financial statements of OpGen and the Curetis Business.

Accounting rules require evaluation of certain assumptions, estimates, or determination of financial statement classifications which are completed during the measurement period as defined in current accounting standards. The accounting policies of the Curetis Business may materially vary from those of OpGen. During preparation of the unaudited pro forma condensed combined financial information, management has performed a preliminary analysis and is not aware of any material differences, and accordingly, this unaudited pro forma condensed combined financial information assumes no material differences, in accounting policies. Management is conducting a final review of the Curetis Business accounting policies in order to determine if differences in accounting policies require adjustment or reclassification of the Curetis Business’ results of operations or reclassification of assets or liabilities to conform to OpGen’s accounting policies and classifications. As a result of this review, management may identify differences that, when conformed, could have a material impact on these unaudited pro forma condensed combined financial statements.

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OpGen, Inc.
Unaudited Pro Forma Condensed Combined Balance Sheet
March 31, 2020
(in thousands)
   OpGen  Curetis Business  Pro Forma Adjustments  Notes  Pro Forma Combined
Assets               
Current assets                         
Cash and cash equivalents  $11,469   $1,161   $—          $12,630 
Accounts receivable, net   166    483    —           649 
Note receivable   4,809    —      (4,809)   G    —   
Inventory, net   437    2,218    464    M    3,119 
Prepaid expenses and other current assets   264    1,045    —           1,309 
Total current assets   17,145    4,907    (4,345)        17,707 
Property and equipment, net   103    3,667    —           3,770 
Finance lease right-of-use assets, net   826    —      —           826 
Operating lease right-of-use assets   886    1,091    —           1,977 
Goodwill   601    —      3,146    F    3,747 
Intangible assets, net   —      7,975    10,406    F    18,381 
Other noncurrent assets   203    405    —           608 
Total assets  $19,764   $18,045   $9,207        $47,016 
Liabilities and Stockholders’ Equity (Deficit)                         
Current liabilities                         
Accounts payable  $1,054   $1,169   $—          $2,223 
Accrued compensation and benefits   988    —      —           988 
Accrued and other current liabilities   1,048    2,456    670    A,B    4,174 
Deferred revenue   10    —      —           10 
Short-term notes payable   348    29,638    (27,873)   F,G,H,I    2,113 
Short-term finance lease liabilities   517    —      —           517 
Short-term operating lease liabilities   948    511    —           1,459 
Total current liabilities   4,913    33,774    (27,203)        11,484 
Notes payable   163    —      16,218     I    16,381 
Long-term finance lease liabilities   213    —      —           213 
Long-term operating lease liabilities   392    597    —           989 
Other noncurrent liabilities   —      49    —           49 
Total liabilities   5,681    34,420    (10,985)        29,116 
Stockholders' equity                         
Common stock   125    6,141    (6,121)   C,D    145 
Additional paid-in capital   192,410    178,061    (173,183)   C,D,E    197,288 
Accumulated deficit   (178,474)   (200,534)   199,453    A,B,C,G    (179,555)
Accumulated other comprehensive loss (income)   22    (43)   43    C    22 
Total stockholders’ equity (deficit)   14,083    (16,375)   20,192         17,900 
Total liabilities and stockholders’ equity (deficit)  $19,764   $18,045   $9,207        $47,016 

 

 

 

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OpGen, Inc.
Unaudited Pro Forma Condensed Combined Statement of Operations
For the three months ended March 31, 2020
(in thousands, except share and per share data)
       
    OpGen    Curetis Business    Pro Forma Adjustments    Notes    Pro Forma Combined 
Revenue  $617   $1,014   $—          $1,631 
Operating expenses:                         
Cost of products sold   277    795    252    J    1,324 
Cost of services   138    —      —           138 
Research and development   1,218    1,401    —           2,619 
General and administrative   1,701    972    (189)   K    2,484 
Sales and marketing   282    844    —           1,126 
Transaction costs   245    —      (245)   K    —   
Impairment of intangible assets   751    —      —           751 
Total operating expenses   4,612    4,012    (182)        8,442 
Operating loss   (3,995)   (2,998)   182         (6,811)
Other (expense) income   87    765    (87)   L     765 
Interest expense   (38)   (724)   87    L     (675)
Foreign currency transaction losses   (4)   —      —           (4)
Provision for income taxes   —      (3)   —           (3)
Net loss  $(3,950)  $(2,960)  $182        $(6,728)
Net loss applicable to common stockholders  $(3,950)  $(2,960)  $182        $(6,728)
Net loss per common share - basic and diluted  $(0.53)                 $(0.71)
Weighted average shares outstanding - basic and diluted   7,393,232         2,028,208     D    9,421,440 

 

 

 

 

F-4
 
 

 

OpGen, Inc.
Unaudited Pro Forma Condensed Combined Statement of Operations
For the year ended December 31, 2019
(in thousands, except share and per share data)
       
    OpGen    Curetis Business    Pro Forma Adjustments    Notes    Pro Forma Combined 
Revenue  $3,499   $2,543   $—          $6,042 
Operating expenses:                         
Cost of products sold   912    5,502    1,009    J    7,423 
Cost of services   720    —      —           720 
Research and development   5,121    8,529    —           13,650 
General and administrative   6,252    5,279    (1,991)   K     9,540 
Sales and marketing   1,465    6,868    —           8,333 
Transaction costs   779    —      (779)   K    —   
Impairment of right-of-use asset   521    —      —           521 
Impairment of financial assets   —      159    —           159 
Total operating expenses   15,770    26,337    (1,761)        40,346 
Operating loss   (12,271)   (23,794)   1,761         (34,304)
Other income   10    901    (21)   L     890 
Interest expense   (188)   (2,613)   21    L     (2,780)
Foreign currency transaction losses   2    —      —           2 
Provision for income taxes   —      (82)   —           (82)
Net loss  $(12,447)  $(25,588)  $1,761        $(36,274)
Net loss applicable to common stockholders  $(12,447)  $(25,588)  $1,761        $(36,274)
Net loss per common share - basic and diluted  $(7.70)                 $(9.95)
Weighted average shares outstanding - basic and diluted   1,616,939         2,028,208     D    3,645,147 

 

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NOTES TO THE UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION 

1.Description of Transaction

On April 1, 2020 (the “Closing Date”), OpGen, Inc. (“OpGen” or the “Company”) completed its business combination transaction (the “Transaction”) with Curetis N.V., a public company with limited liability under the laws of the Netherlands (the “Seller”), as contemplated by the Implementation Agreement, dated as of September 4, 2019 (the “Implementation Agreement”), by and among the Company, the Seller, and Crystal GmbH, a private limited liability company organized under the laws of the Federal Republic of Germany and wholly owned subsidiary of the Company (“Purchaser”). Pursuant to the Implementation Agreement, the Purchaser acquired all of the shares of Curetis GmbH, a private limited liability company organized under the laws of the Federal Republic of Germany (“Curetis GmbH”) and certain other assets and liabilities of the Seller (together, the “Curetis Business”), as further described below, and paid, as the sole consideration, 2,028,208 shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), to the Seller, and reserved for future issuance (a) 134,356 shares of Common Stock, in connection with its assumption of the Seller’s 2016 Stock Option Plan, as amended (the “Seller Stock Option Plan”), and the outstanding awards thereunder, and (b) 500,000 shares of Common Stock to be issued upon the conversion, if any, of certain convertible notes issued by the Seller. The 2,028,208 shares of Common Stock issued to the Seller represented approximately 13.8% of the outstanding Common Stock of the Company as the Closing Date.

Curetis Business

The accompanying unaudited pro forma condensed combined financial statements reflect, what OpGen assumes would be the results and financial position on a U.S. GAAP basis, of the interim combined statement of financial position and interim combined statement of operations of the Curetis Business. OpGen has performed a preliminary analysis and has not identified significant differences identified between IFRS and U.S. GAAP for the purposes of presenting the unaudited pro forma condensed combined financial statements. In addition, the unaudited condensed combined financial statements reflect reclassifications to conform the Curetis Business historical accounting presentation to OpGen’s accounting presentation and translation from Euros to USD based on OpGen’s U.S. GAAP policies as follows.

 

 

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OpGen, Inc.
Unaudited Curetis Business Condensed Combined Statement of Financial Position
March 31, 2020
(in thousands)

 

  

Curetis Busines

(Euros)

 

Curetis Busines

(USD) (1)

Assets      
Current assets          
Cash and cash equivalents  €1,050   $1,161 
Trade receivables   437    483 
Other receivables, related party   396    438 
Inventories   2,006    2,218 
Prepaid expenses and other current assets   549    607 
Total current assets   4,438    4,907 
Intangible assets   7,213    7,975 
Property, plant and equipment   3,316    3,667 
Right of use assets   987    1,091 
Other non-current financial assets   160    177 
Other non-current assets   206    228 
Total assets  €16,320   $18,045 
Liabilities and Stockholders’ Equity (Deficit)          
Current liabilities          
Trade and other payables  €1,057   $1,169 
Other liabilities, related party   432    478 
Provisions current   176    195 
Other current liabilities   1,614    1,783 
Other current financial liabilities   26,805    29,638 
Current lease liabilities   462    511 
Total current liabilities   30,546    33,774 
Provisions non-current   44    49 
Non-current lease liabilities   540    597 
Total liabilities   31,130    34,420 
Equity          
Subscribed capital   5,554    6,141 
Capital reserve   161,039    178,061 
Currency translation differences   (39)   (43)
Accumulated deficit   (181,364)   (200,534)
Total stockholders’ deficit   (14,810)   (16,375)
Total liabilities and stockholders’ deficit  €16,320   $18,045 

 

                   
(1) Convenience translation performed using the following exchange rate in effect as of March 31, 2020:     1.10570            

 

 

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OpGen, Inc.
Unaudited Curetis Business Condensed Combined Statement of Operations
For the three months ended March 31, 2020
(in thousands)

 

       
    Curetis Business (Euros)    

Curetis Business

(USD) (1)

 
Revenue  €917   $1,014 
Cost of sales   (719)   (795)
Gross profit   198    219 
Distribution costs   (763)   (844)
Administrative expenses   (879)   (972)
Research and development expenses   (1,267)   (1,401)
Other income   311    344 
Operating loss   (2,400)   (2,654)
Finance income   381    421 
Finance costs   (655)   (724)
Finance result -- net   (274)   (303)
           
Loss before income taxes   (2,674)   (2,957)
Income tax expense   (3)   (3)
Loss for the period  €(2,677)  $(2,960) 
           
(1) Convenience translation performed using the following exchange rate in effect as of March 31, 2020:   1.10570     

 

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OpGen, Inc.
Unaudited Curetis Business Condensed Combined Statement of Operations
For the year ended December 31, 2019
(in thousands)

 

   Curetis Business (Euros)  Curetis Business
(USD) (1)
Revenue  €2,271   $2,543 
Cost of sales   (4,913)   (5,502)
Gross loss   (2,642)   (2,959)
Distribution costs   (6,133)   (6,868)
Administrative expenses   (4,714)   (5,279)
Research and development expenses   (7,616)   (8,529)
Impairment of financial assets   (142)   (159)
Other income   559    626 
Operating loss   (20,688)   (23,168)
Finance income   246    275 
Finance costs   (2,333)   (2,613)
Finance result -- net   (2,087)   (2,338)
           
Loss before income taxes   (22,775)   (25,506)
Income tax expense   (73)   (82)
Loss for the period  €(22,848)  $(25,588)
           
(1) Convenience translation performed using the following exchange rate in effect as of December 31, 2019:   1.11986     

 

 

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The accompanying unaudited pro forma condensed combined financial statements reflect Curetis Business unaudited combined financial statements prepared in accordance with IFRS mapped to OpGen’s financial statements as follows:

Curetis Business Statement of Operations Descriptions   OpGen Consolidated Statements of Operations and Comprehensive Loss Descriptions  
Revenue   Revenue  
Cost of sales   Cost of products sold  
Distribution costs   Sales and marketing  
Administrative expenses   General and administrative  
Research & development expenses   Research and development  
Transaction costs   Transaction costs  
Other income   Other income  
Operating loss   Operating loss  
Finance income   Other income  
Finance costs   Interest expense  
Income tax expense   Provision for income taxes  
Loss for the period   Net loss  
       
Curetis Business Statement of Financial Position Descriptions   OpGen Balance Sheet Descriptions  
Cash and cash equivalents   Cash and cash equivalents  
Trade receivables   Accounts receivable, net  
Other receivables, related party   Prepaid expenses and other current assets  
Contractual assets   Contractual assets *  
Inventories   Inventory, net  
Prepaid Expenses and other current assets   Prepaid expenses and other current assets  
Total current assets   Total current assets  
Intangible assets   Intangible assets, net  
Property, plant and equipment   Property and equipment, net  
Right of use assets   Operating lease right-of-use assets  
Other non-current assets   Other noncurrent assets  
Other non-current financial assets   Other noncurrent assets  
Deferred tax assets   Deferred tax assets  
Total assets   Total assets  
Liabilities and Stockholders’ Equity   Liabilities and Stockholders’ Equity  
Current liabilities   Current liabilities  
Trade and other payables   Accounts payable  
Other liabilities, related party   Accrued and other current liabilities  
Provisions current   Provisions current  
Tax liabilities   Accrued and other current liabilities  
Other current liabilities   Accrued and other current liabilities  
Other current financial liabilities   Accrued and other current liabilities  
Current lease liabilities   Short-term operating lease liabilities  
Total current liabilities   Total current liabilities  
Provisions non-current   Other noncurrent liabilities*  
Other non-current financial liabilities   Notes payable  
Non-current lease liabilities   Long-term operating lease liabilities  
Total liabilities   Total liabilities  
Equity   Equity  
Subscribed capital   Common stock  
Capital reserve   Additional paid-in capital  
Currency translation differences   Accumulated other comprehensive loss  
Accumulated deficit   Accumulated deficit  
Total stockholders’ equity   Total stockholders’ equity (deficit)  
Total liabilities and stockholders’ equity   Total liabilities and stockholders’ equity  
       
* Denotes Curetis description added to proforma balance sheet      

 

 

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3. Purchase Method of Accounting

The accompanying unaudited pro forma condensed combined financial statements reflect accounting for the business combination in accordance with the purchase method of accounting. Under the purchase method, the purchase consideration is allocated to the assets acquired and the liabilities assumed based on their estimated fair values, with any excess of the purchase consideration over the estimated fair values of the identifiable net assets acquired being recorded as goodwill.

Purchase Consideration

 

The total fair value of the consideration was:

 

Number of shares issued to Curetis N.V (i)   2,028,208 
Multiplied by the market value per share of OpGen's common stock (ii)  $2.39 
Total fair value of common stock issued to Curetis N.V shareholders   4,847,417 
Fair value of replacement stock awards related to precombination service   49,000 
    Fair value of convertible notes   1,766,000 
    Fair value of EIB debt   16,218,000 
    Funds advanced to Curetis GmbH under Interim Facility   4,398,000 
Total purchase consideration  $27,278,417 

 

(i)Under the Implementation Agreement, OpGen issued to Seller, as the sole consideration, 2,028,208 shares of common stock and reserved for future issuance (a) 134,356 shares of common stock in connection with its assumption of the Seller Stock Option Plan, and (b) 500,000 shares of common stock to be issued upon conversion, if any, of certain convertible notes issued by the Seller.
(ii)The price per share of OpGen’s common stock was based on the closing price as reported on the Nasdaq Capital Market on April 1, 2020.

 

Allocation of Purchase Price

The following table demonstrates the allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed on April 1, 2020, based on their preliminary estimated fair values:

 

Purchase Consideration  Estimated Fair Value
Total Consideration  $27,278,417 
      
Tangible asset acquired     
Cash  $1,160,985 
Receivables   483,191 
Inventory   2,682,034 
Property and equipment   3,666,501 
Right of use assets   1,091,326 
Other current assets   1,044,886 
Other non-current assets   404,686 
Total tangible assets acquired   10,533,609 
      
Identifiable intangible assets acquired     
Trade names/trademarks   1,768,000 
Customer/distributor relationships   2,362,000 
A50 - Developed technology   1,682,000 
Ares - Developed technology   6,088,000 
A30 - In-process research & development   6,481,000 
Total identifiable intangible assets acquired   18,381,000 
      
Liabilities assumed     
Accounts payable   1,168,725 
Accrued expenses and other current liabilities   2,456,421 
Lease liabilities   1,107,911 
Other long term liabilities   48,651 
Total liabilities assumed   4,781,708 
      
Goodwill  $3,145,516 

 

 

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Identifiable intangible assets will be amortized on a straight-line basis over their estimated useful lives. The estimated useful lives of the intangibles are:

 

   Estimated Useful Life
Trade names/trademarks  10 years
Customer/distributor relationships  15 years
A50 - Developed technology  7 years
Ares - Developed technology  14 years
A30 - In-process research & development  Indefinite
Goodwill  Indefinite

 

The pro forma condensed combined financial statements reflect management’s best estimate of the fair value of the tangible and intangible assets acquired and liabilities assumed based on a preliminary valuation study performed by an independent third-party valuation firm based on information currently available. As final valuations are performed, increases or decreases in the fair value of assets acquired and liabilities assumed will result in adjustments, which may be material, to the pro forma balance sheet and/or statement of operations.

 

4. Pro Forma Adjustments

The following assumptions and adjustments apply to the unaudited pro forma condensed combined financial statements:

A.To record OpGen’s estimated transaction costs, such as legal, audit, advisory fees and transactional fees that were not incurred as of March 31, 2020.
B.To record the Curetis Business’s estimated transaction costs, such as legal, audit, advisory fees and transactional fees that were not incurred as of March 31, 2020.
C.To eliminate the Curetis Business’ common stock, historical paid-in-capital, accumulated other comprehensive loss, and accumulated deficit balances.
D.To reflect 2,028,208 shares issued to Curetis N.V. at closing of the business combination.
E.To reflect the fair value of assumed Seller Stock Option Plan awards related to pre-combination service.
F.To reflect the pro forma impact of the allocation of the purchase consideration to the fair value of the (i) tangible and identifiable intangible assets acquired, (ii) liabilities assumed, and (iii) goodwill.
G.To reflect the pro forma intercompany elimination of the interim facility between OpGen and the Curetis Business.
H.To eliminate the historical Curetis Business debt acquired by OpGen.
I.To reflect the reclassification of the long term potion of debt acquired by OpGen
J.To reflect the pro forma amortization of the acquired identifiable intangible assets over their estimated useful lives.
K.To reflect the elimination of transaction expenses incurred by OpGen and the Curetis Business during the year ended December 31, 2019 and three months ended March 31, 2020.
L.To eliminate interest expense/income on the interim facility between OpGen and the Curetis Business
M.To reflect the step up basis of acquired inventory.

 

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Adjustments to accrued expenses are as follows (in thousands):  March 31, 2020
OpGen's estimated transaction costs (A)  $555 
Curetis Business estimated transaction costs (B)   115 
Total  $670 

 

Adjustments to short-term notes payable are as follows (in thousands):  March 31, 2020
Eliminate Curetis Business’ historical short-term notes payable (H)  $(29,640)
Fair value of acquired notes payable (F)   22,383 
Eliminate Interim Facility between OpGen and Curetis (G)   (4,398)
To reclassify long term portion of acquired notes payable (I)   (16,218)
Total  $(27,873)

 

Adjustments to common stock are as follows (in thousands):  March 31, 2020
Eliminate Curetis Business' historical common stock balance (C)  $(6,141)
To reflect shares issued to Curetis N.V. under the implementation agreement (D)   20 
Total  $(6,121)

 

Adjustments to additional paid-in capital are as follows (in thousands):  March 31, 2020
Eliminate Curetis Business' historical additional paid-in-capital balance (C)  $(178,061)
To reflect shares issued to Curetis N.V. under the implementation agreement (D)   4,829 
To reflect FV of precombination service of assumed Seller Stock Option Plan (E)   49 
Total  $(173,183)

 

Adjustments to accumulated deficit are as follows (in thousands):  March 31, 2020
Eliminate Curetis Business' historical accumulated deficit balance (C)  $200,534 
OpGen's estimated transaction costs (A)   (555)
Curetis Business estimated transaction costs (B)   (115)
Eliminate Interim Facility between OpGen and Curetis (G)   (411)
Total  $199,453 

 

 

 

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