2. Pro-Forma Financial Information

9 Months Ended

Sep. 30, 2014

Text Block [Abstract]

Pro-Forma Financial Information

As described in Note 1, the Company completed the Merger on June 3, 2013. The following unaudited pro-forma information presents the combined results of operations for the nine months ended September 30, 2013 as if the Merger with Converted Organics, Inc. had been completed on January 1, 2013. The pro-forma financial information includes adjustments to reflect one-time charges and amortization of fair value adjustments in the appropriate pro-forma periods as though the companies were combined as of the beginning of 2013. These adjustments include:

·   An increase in depreciation and amortization expense of $224,000 for the nine months ended September 30, 2013.

·   The exclusion of transaction-related expenses of $790,000 for the nine months ended September 30, 2013.

·   The inclusion of stock-based compensation of $29,000 for the nine months ended September 30, 2013, primarily related to restricted stock issued to one of the directors upon closing of the Merger for services as a member of the Board of Directors of the Company.

The unaudited pro forma results do not reflect operating efficiencies or potential cost savings which may have been implemented after the Merger (in thousands, except per share data):

	Nine Months Ended
	September 30,
	2013
Revenue	$	2,459
Net loss	$	(4,410	)
Net loss per common share, basic and diluted	$	(0.20	)