NVUS 2018 Annual Report
Pro Forma Results in Connection with Reverse Merger The operating activity for Tokai, the acquiree for accounting purposes, was immediately integrated with Otic post-merger, therefore it is not practical to segregate results of operations related specifically to Tokai since the date of acquisition. The unaudited financial information in the following table summarizes the combined results of operations of the Company and Tokai, on a pro forma basis, as if the Reverse Merger had occurred at the beginning of the periods presented (in thousands):
Year Ended December 31, 2017
Operating expenses Research and development General and administrative
$
2,481 9,356 11,837
Total operating expenses
Loss from operations Other income, net
(11,837)
45
Net loss and other comprehensive loss Net loss per share, basic and diluted Weighted-average shares outstanding, basic and diluted
$ $
(11,792)
(2.52)
4,677,610
The above unaudited pro forma information was determined based on historical GAAP results of Otic and Tokai. The XQDXGLWHG SUR IRUPD FRPELQHG UHVXOWV DUH QRW QHFHVVDULO\ LQGLFDWLYH RI ZKDW WKH &RPSDQ\¶V FRPELQHG UHVXOWV RI RSHUDWLRQV would have been if the acquisition was completed at the beginning of the periods presented. The unaudited pro forma combined net loss includes pro forma adjustments primarily relating to the following non-recurring items directly attributable to the business combination: x Elimination of transaction costs of $7.2 million incurred during the year ended December 31, 2017. The amount has been eliminated on a pro forma basis as they are not expected to have a continuing effect on the operating results of the combined company. x An increase in the weighted-average shares outstanding for the period after giving effect to the issuance of Tokai common stock in connection with the Reverse Merger and Private Placement.
Note 4. Prepaid Expenses, Other Assets, Accrued Expenses and Other Liabilities Prepaid expenses and other current assets consisted of the following as of December 31, 2018 and December 31, 2017 (in thousands):
Year Ended December 31,
2018
2017
Prepaid insurance
$
413 $
1,518
Prepaid other
261 630
161
Other current assets
18
Total prepaid expenses and other current assets
$
1,304 $
1,697
F-16
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