EX-99.1 3 dex991.txt UNAUDITED PRO FORMA BALANCE SHEET Exhibit 99.1 GLYCOGENESYS, INC. UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
Eleven Months Ended Year Ended November 30, 2002 December 31, 2001 ------------------------------------------- ------------------------------------------- Pro Forma Pro Forma Pro Forma Pro Forma Actual Adjustments As Adjusted Actual Adjustments As Adjusted ----------- ----------- ------------ ------------ ------------ ------------ Operating expenses: Research and development $ 1,971,486 {a} $ 4,674,862 $ 6,646,348 $ 4,291,064 {a} $ 17,713,446 $ 22,004,510 General and administrative 3,523,441 - 3,523,441 4,045,088 - 4,045,088 Restructuring charge (credit) - - - (177,283) - (177,283) ----------- ----------- ----------- ------------ ------------ ------------ Total operating expenses 5,494,927 4,674,862 10,169,789 8,158,869 17,713,446 25,872,315 ----------- ----------- ----------- ------------ ------------ ------------ Operating loss (5,494,927) (4,674,862) (10,169,789) (8,158,869) (17,713,446) (25,872,315) ----------- ----------- ----------- ------------ ------------ ------------ Other income (expense): Equity in loss of SafeScience Newco, Ltd. (3,945,166){b} 3,945,166 - (14,188,470){b} 14,188,470 - Other income (expense) (5,339) - (5,339) (33,345) - (33,345) Interest income 104,583 - 104,583 187,721 - 187,721 ----------- ----------- ----------- ------------ ------------ ------------ (3,845,922) 3,945,166 99,244 (14,034,094) 14,188,470 154,376 ----------- ----------- ----------- ------------ ------------ ------------ Loss from continuing operations (9,340,849) (729,696) (10,070,545) (22,192,963) (3,524,976) (25,717,939) Loss from discontinued operations - - - (533,200) - (533,200) ----------- ----------- ----------- ------------ ------------ ------------ Net loss before preferred stock dividend (9,340,849) (729,696) (10,070,545) (22,726,163) (3,524,976) (26,251,139) Accretion of dividends on preferred stock (163,454){c} (137,000) (300,454) (404,273){d} (2,533,767) (3,078,040) {c} (140,000) ----------- ----------- ----------- ------------ ------------ ------------ Net loss applicable to common stock $(9,504,303) $ (866,696) $(10,370,999) $(23,130,436) $ (6,198,743) $(29,329,179) =========== =========== =========== ============ ============ ============ Basic and diluted net loss per common stock from continuing operations $ (0.26) $ (0.02) $ (0.28) $ (0.82) $ (0.22) $ (1.04) =========== =========== =========== ============ ============ ============ Basic and diluted net loss per common stock from discontinued operations $ - $ - $ - $ (0.02) $ - $ (0.02) =========== =========== =========== ============ ============ ============ Basic and diluted net loss per common stock $ (0.26) $ (0.02) $ (0.28) $ (0.84) $ (0.22) $ (1.06) =========== =========== =========== ============ ============ ============ Weighted average number of common shares outstanding 37,133,591 37,133,591 37,133,591 27,612,020 27,612,020 27,612,020 =========== =========== =========== ============ ============ ============
See accompanying notes to Unaudited Pro Forma Consolidated Financial Statements GLYCOGENESYS, INC. UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET ASSETS November 30, 2002
Pro Forma Pro Forma Actual Adjustments As Adjusted ---------- ------------ ----------- Current assets: Cash and cash equivalents $4,998,660 {e} $ 1,923,478 $ 6,922,138 Prepaid expenses and other current assets 303,248 - 303,248 ---------- ------------ ----------- Total current assets 5,301,908 1,923,478 7,225,386 ---------- ------------ ----------- Property and equipment, at cost Computer, office and laboratory equipment 639,764 - 639,764 Furniture and fixtures 289,958 - 289,958 Motor vehicles 25,026 - 25,026 ---------- ------------ ----------- 954,748 - 954,748 Less-accumulated depreciation and amortization (566,106) - (566,106) ---------- ------------ ----------- 388,642 - 388,642 ---------- ------------ ----------- Other assets: Restricted cash 108,128 - 108,128 Other 81,704 - 81,704 ---------- ------------ ----------- Total other assets 189,832 - 189,832 ---------- ------------ ----------- Total assets $5,880,382 $ 1,923,478 $ 7,803,860 ========== ============ ===========
See accompanying notes to Unaudited Pro Forma Consolidated Financial Statements GLYCOGENESYS, INC. UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET (CONTINUED) LIABILITIES AND STOCKHOLDERS' EQUITY November 30, 2002
Pro Forma Pro Forma Actual Adjustments As Adjusted ----------- ------------- ------------- Current liabilities: Accounts payable $ 383,834 $ - $ 383,834 Due to SafeScience Newco, Ltd. 76,522 {e} (76,522) - Accrued liabilities 297,177 - 297,177 Net liabilities of discontinued operations 245,275 - 245,275 ----------- ----------- ----------- Total current liabilities 1,002,808 (76,522) 926,286 ----------- ----------- ----------- Series A redeemable convertible preferred stock 13,208,623 {f} (13,208,623) - Commitments and contingencies - - - Stockholders' equity (deficit) Series A convertible preferred stock, $.01 par value {f} 50 62 {d} 12 Series B convertible preferred stock, $.01 par value 23 {e} 12 35 Series C convertible preferred stock, $.01 par value 11 - 11 Common stock, $.01 par value 372,515 - 372,515 Additional paid-in capital 70,790,183 {e} 1,999,988 85,998,732 {f} 13,208,573 {d} (12) Note receivable from former officer -Issuance of common stock (2,675,000) - (2,675,000) Accumulated deficit (76,818,781) - (76,818,781) ----------- ----------- ----------- Total stockholders' equity (deficit) (8,331,049) 15,208,623 6,877,574 ----------- ----------- ----------- Total liabilities and stockholders' equity (deficit) $ 5,880,382 $ 1,923,478 $ 7,803,860 =========== =========== ===========
See accompanying notes to Unaudited Pro Forma Consolidated Financial Statements NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS Description of the Transaction On July 10, 2001, GlycoGenesys, Inc. ("GlycoGenesys") and Elan International Services, Ltd. ("EIS"), and Elan Corporation plc. (together with EIS, "Elan") entered into a joint venture agreement resulting in the formation of SafeScience Newco, Ltd. ("SafeScience Newco"). Under the joint venture agreement GlycoGenesys and Elan owned 80.1% and 19.9% of the capital stock of SafeScience Newco, respectively. On December 18, 2002, GlycoGenesys entered into a termination agreement with Elan and SafeScience Newco for the termination of Elan's and GlycoGenesys' joint venture agreement. Pursuant to the termination agreement: GlycoGenesys acquired all of Elan's interest in SafeScience Newco in exchange for a royalty interest on certain future revenues related to GCS-100; GlycoGenesys received approximately $1.9 million from Elan in exchange for 1,176.47059 shares of GlycoGenesys' Series B convertible preferred stock; and GlycoGenesys accelerated, to December 18, 2002, the payment of in-kind dividends that were scheduled to be paid by GlycoGenesys to Elan through September 2004 resulting in the issuance of 1,209.07035 shares of Series A preferred stock to Elan. In addition, the exchange feature of GlycoGenesys' Series A preferred stock, which allowed Elan to convert its GlycoGenesys Series A preferred stock into an additional 30% interest in SafeScience Newco and the mandatory redemption feature of the Series A preferred stock were cancelled. As a result of this transaction, GlycoGenesys owns 100% of SafeScience Newco and owns all intellectual property, development and marketing rights to GCS-100. Basis of Presentation The Unaudited Pro Forma Consolidated Statements of Operations for the year ended December 31, 2001 and for the eleven months ended November 30, 2002 have been prepared giving effect to the transaction as if it had occurred on January 1, 2001. The Unaudited Pro Forma Consolidated Balance Sheet has been prepared giving effect to the transaction as if it had occurred on November 30, 2002. The historical financial statements of GlycoGenesys have been adjusted to give effect to pro forma events that are (1) directly attributable to the transaction, (2) factually supportable, and (3) with respect to the statements of operations, expected to have a continuing impact on the consolidated results. The Unaudited Pro Forma Consolidated Balance Sheet and Statements of Operations are provided for informational purposes only, are based on preliminary assumptions and are not necessarily indicative of what the actual financial position or results of operations would have been had the transaction described above been completed as of the dates indicated, and are not indicative of future financial position or results of operations. Pro Forma Adjustments Adjustments included in the column under the heading "Pro Forma Adjustments" primarily relate to the following: (a) To record the operations of SafeScience Newco on a consolidated basis (SafeScience Newco had no recorded assets or liabilities at the date of the transaction except for the intercompany receivable considered in (e) below); (b) To eliminate GlycoGenesys' equity in the loss of SafeScience Newco; (c) To record the accretion of dividends on the Series B preferred stock issued in connection with the transaction; (d) To record the accretion of dividends and the issuance of 1,209.07035 shares of Series A preferred stock issued in connection with the transaction; (e) To record the issuance of 1,176.47059 shares of GlycoGenesys' Series B convertible preferred stock, in exchange for $1,923,478 in cash and the settlement of the amount due from GlycoGenesys to SafeScience Newco in the amount of $76,522; (f) To reclassify GlycoGenesys' Series A convertible preferred stock into shareholders' equity to reflect the cancellation of the exchange feature.