Acquisitions (Tables)
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3 Months Ended |
Mar. 31, 2018 |
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| Business Combinations [Abstract] |
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| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed |
The following table summarizes the provisional amounts recognized for assets acquired and liabilities assumed as of the acquisition date. There were no measurement adjustments recorded through March 31, 2018. The purchase price of $30.0 million was allocated as follows:
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Amounts Recognized |
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|
as of Acquisition Date |
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|
(as previously reported) |
Fair value of assets acquired: |
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|
Cash and cash equivalents |
|
$ |
11,068 |
|
Accounts receivable, net |
|
2,872,545 |
|
Inventory |
|
495,777 |
|
Prepaid expenses and other current assets |
|
134,281 |
|
Identifiable Intangible Assets: |
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|
|
Acquired product marketing rights - Metafolin |
|
10,465,000 |
|
PAI sales and marketing agreement |
|
2,334,000 |
|
Acquired product marketing rights - Millipred |
|
4,714,000 |
|
Acquired product marketing rights - Ulesfia |
|
555,000 |
|
Total assets acquired |
|
$ |
21,581,671 |
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|
|
|
Fair value of liabilities assumed: |
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|
Accounts payable |
|
$ |
192,706 |
|
Accrued expenses and other current liabilities |
|
4,850,422 |
|
Deferred tax liability |
|
839,773 |
|
Total liabilities assumed |
|
5,882,901 |
|
Total identifiable net assets |
|
15,698,770 |
|
Fair value of consideration transferred |
|
29,991,052 |
|
Goodwill |
|
$ |
14,292,282 |
|
The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition:
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At |
|
|
February 16, |
|
|
2018 (preliminary) |
|
|
|
Inventory |
|
$ |
2,549,000 |
|
Intangible assets |
|
16,453,000 |
|
Fair value of debt assumed |
|
(15,272,303 |
) |
Fair value of contingent consideration and deferred payments |
|
(7,875,165 |
) |
Total net liabilities assumed |
|
(4,145,468 |
) |
Consideration exchanged |
|
240,745 |
|
Goodwill |
|
$ |
4,386,213 |
|
|
| Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination |
The preliminary fair value of intangible assets includes the following:
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At |
|
|
|
February 16, |
Useful |
|
|
2018 (preliminary) |
Life |
|
|
|
|
Acquired Product Marketing Rights - Karbinal |
|
$ |
6,221,000 |
|
16 years |
Acquired Product Marketing Rights - AcipHex |
|
2,520,000 |
|
10 years |
Acquired Product Marketing Rights - Cefaclor |
|
6,291,000 |
|
7 years |
Acquired Developed Technology - Flexichamber |
|
1,131,000 |
|
10 years |
Acquired IPR&D - LiquiTime formulations |
|
290,000 |
|
Indefinite |
Total |
|
$ |
16,453,000 |
|
|
|
| Schedule of Fair Value of Consideration Transferred |
The November 17, 2017 acquisition-date fair value of the consideration transferred is as follows:
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|
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Cash |
|
$ |
18,900,000 |
|
Common stock (including contingently issuable shares) |
|
8,514,419 |
|
Contingent payments |
|
2,576,633 |
|
Total consideration transferred |
|
$ |
29,991,052 |
|
|
| Business Acquisition, Pro Forma Information |
The following supplemental unaudited pro forma information presents Cerecor’s financial results as if the acquisitions of the Avadel pediatric products business, which was completed on February 16, 2018, and of TRx, which was completed on November 17, 2017, had each occurred on January 1, 2017:
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Three Months Ended March 31, |
|
2018 |
2017 |
|
Pro forma |
Pro forma |
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|
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Total revenues, net |
$ |
6,187,775 |
|
$ |
5,052,790 |
|
Net loss |
$ |
(4,928,446 |
) |
$ |
(3,732,319 |
) |
Diluted net loss per share |
$ |
(0.16 |
) |
$ |
(0.36 |
) |
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