Exhibit 99.1

UNAUDITED CONDENSED PRO FORMA FINANCIAL STATEMENTS

As disclosed within the Current Report on Form 8-K accompanying this exhibit, we have completed the sale of our contract research and development services business (the “Service Business”).

The unaudited pro forma financial information herein provides the financial condition and results of operations of SCYNEXIS, Inc. after giving effect to a sale of our service business. The Company expects to report the service business in discontinued operations within the Quarterly Report on Form 10-Q for the quarter ended June 30, 2015, pursuant to FASB Topic 205-20, Presentation of Financial Statements—Discontinued Operations, and FASB Topic 360, Property, Plant, and Equipment. The historical financial information has been adjusted to give effect to events that are directly attributable to a divestiture based on assumptions that management believes are reasonable. The unaudited pro forma financial information represents management’s best estimate of the Company’s financial position and results of operations that would have been obtained had a divestiture been completed as of the date or for the periods presented, but may not necessarily be indicative of or comparable to the financial position or results of operations that may be obtained in the future. The unaudited pro forma financial information excludes any transaction costs, transaction gains or losses, and any indirect costs related to employee severance, incentive compensation, and other restructuring events. Further, the unaudited pro forma financial information excludes any obligations arising from or costs associated with the Commitment to Services Agreement, the material terms of which are described in Item 1.01 of the Current Report on Form 8-K accompanying this exhibit. The purpose of this Services Agreement is to replace services that were previously provided internally by employees of the Company prior to the sale of the Services Business, which are included in research and development expenses within our historical statements of operations. The employees performing these services became employees of the Buyer in connection with this sale transaction. While profit margin is included in the amount of the minimum purchase obligation above, such amount cannot be reasonably estimated; accordingly, any profit margin associated with the Services Agreement has not been included in accompanying unaudited condensed pro forma financial information.

The unaudited condensed pro forma balance sheet has been prepared as of March 31, 2015 and gives effect to the sale of the service business as if it had occurred on that date. The unaudited condensed pro forma statements of operations have been prepared for the three months ended March 31, 2015 and for the years ended December 31, 2014, and 2013, and give effect to the sale of the service business as if it had occurred as of January 1, 2013.

Historically, we have viewed and managed our operations as a single, shared group of assets and resources that we have utilized to provide contract research and development services to customers and to advance our internal research and development efforts for the discovery and development of proprietary and novel compounds. All of our activities have been conducted within a single facility, which we lease from a third-party landlord, and the majority of our property, plant, and equipment consist of leasehold improvements related to our leased facility. We manage and allocate resources to support both our contract research and development service activities, from which we have derived substantially all of our revenues, and our internal research and development activities. Our general and administrative expenses support all of our operating activities. In preparing the pro forma financial information herein, we adjusted our historical financial information to exclude all service revenues, and to exclude all expenses, assets, and liabilities directly associated with the service business.

The unaudited pro forma financial information herein has been derived from and should be read in conjunction with the historical financial statements of SCYNEXIS contained in our Quarterly Report on Form 10-Q for the period ended March 31, 2015, filed with the SEC on May 15, 2015, and in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 30, 2015.


UNAUDITED CONDENSED PRO FORMA BALANCE SHEET

AS OF MARCH 31, 2015

(in thousands, except share amounts)

 

     SCYNEXIS, Inc.
Historical
    Pro Forma
Adjustments (a)
    SCYNEXIS, Inc.
Pro Forma
 

Assets

      

Current assets:

      

Cash and cash equivalents

   $ 27,620        2,551  (b)    $ 30,171   

Accounts receivable, net of allowance for bad debts

     681        (681     —     

Unbilled services

     372        (372     —     

Prepaid expenses and other current assets

     1,157        (434     723   

Escrow receivable

     —          500  (b)      500   
  

 

 

   

 

 

   

 

 

 

Total current assets

  29,830      1,564      31,394   
  

 

 

   

 

 

   

 

 

 

Property and equipment, net of accumulated depreciation

  4,674      (3,753 ) (c)    921   

Other assets

  96      (64   32   

Deferred offering costs

  257      —        257   
  

 

 

   

 

 

   

 

 

 

Total assets

$ 34,857    $ (2,253 $ 32,604   
  

 

 

   

 

 

   

 

 

 

Liabilities and stockholders’ equity

Current liabilities:

Accounts payable

$ 1,372    $ (562 $ 810   

Accrued expenses

  3,280      (1,493   1,787   

Deferred revenue, current portion

  480      (223   257   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

  5,132      (2,278   2,854   
  

 

 

   

 

 

   

 

 

 

Deferred revenue, net of current portion

  1,050      (222   828   

Deferred rent

  1,237      (951 ) (c)    286   
  

 

 

   

 

 

   

 

 

 

Total liabilities

  7,419      (3,451   3,968   
  

 

 

   

 

 

   

 

 

 

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.001 par value, 125,000,000 shares authorized as of March 31, 2015, and December 31, 2014; 8,527,210 and 8,512,103 shares issued and outstanding as of March 31, 2015, and December 31, 2014, respectively   8      —        8   

Additional paid-in capital

  151,325      —        151,325   

Accumulated deficit

  (123,895   1,198      (122,697
  

 

 

   

 

 

   

 

 

 

Total stockholders’ equity

  27,438      1,198      28,636   
  

 

 

   

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 34,857    $ (2,253 $ 32,604   
  

 

 

   

 

 

   

 

 

 


UNAUDITED CONDENSED PRO FORMA STATEMENTS OF OPERATIONS

THREE MONTHS ENDED MARCH 31, 2015

(in thousands, except per share amounts)

 

     SCYNEXIS, Inc.
Historical
    Pro Forma
Adjustments
    SCYNEXIS, Inc.
Pro Forma
 

Revenue — related party

   $ 987      $ (987   $ —     

Revenue

     2,310        (2,246     64   
  

 

 

   

 

 

   

 

 

 

Total revenue

     3,297        (3,233 ) (d)      64   

Cost of revenue

     3,231        (3,231 ) (e)      —     
  

 

 

   

 

 

   

 

 

 

Gross profit

     66        (2     64   
  

 

 

   

 

 

   

 

 

 

Operating expenses:

      

Research and development

     4,218        (431 ) (f)      3,787   

Selling, general and administrative

     2,233        (413 ) (g)      1,820   
  

 

 

   

 

 

   

 

 

 

Total operating expenses

     6,451        (844     5,607   

Loss from operations

     (6,385     842        (5,543

Other (income) expense:

      

Interest income

     (1     —          (1
  

 

 

   

 

 

   

 

 

 

Total other (income) expense

     (1     —          (1
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations

   $ (6,384   $ 842      $ (5,542

Deemed dividend for beneficial conversion feature on Series D-2 preferred stock

     —          —          —     

Deemed dividend for antidilution adjustments to convertible preferred stock

     —          —          —     

Accretion of convertible preferred stock

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations attributable to common stockholders — basic and diluted

   $ (6,384   $ 842      $ (5,542
  

 

 

   

 

 

   

 

 

 

Per share information:

      

Loss per common share from continuing operations, basic and diluted

   $ (0.75     $ (0.65
  

 

 

     

 

 

 

Weighted average shares outstanding:

      

Basic and diluted

     8,516,467          8,516,467   
  

 

 

     

 

 

 


UNAUDITED CONDENSED PRO FORMA STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 2014

(in thousands, except per share amounts)

 

     SCYNEXIS, Inc.
Historical
    Pro Forma
Adjustments
    SCYNEXIS, Inc.
Pro Forma
 

Revenue — related party

   $ 7,288      $ (7,288   $ —     

Revenue

     11,736        (10,480     1,256   
  

 

 

   

 

 

   

 

 

 

Total revenue

  19,024      (17,768 ) (d)    1,256   

Cost of revenue

  15,446      (15,446 ) (e)    —     
  

 

 

   

 

 

   

 

 

 

Gross profit

  3,578      (2,322   1,256   
  

 

 

   

 

 

   

 

 

 

Operating expenses:

Research and development

  8,287      —    (f)    8,287   

Selling, general and administrative

  7,568      (1,473 ) (g)    6,095   

Gain on insurance recovery

  (165   165  (h)    —     
  

 

 

   

 

 

   

 

 

 

Total operating expenses

  15,690      (1,308   14,382   

Loss from operations

  (12,112   (1,014   (13,126

Other (income) expense:

Amortization of deferred financing costs and debt discount

  755      —        755   

Loss on extinguishment of debt

  1,389      —        1,389   

Interest expense, net

  48      —        48   

Derivative fair value adjustment

  (10,080   —        (10,080

Other expense

  10      —        10   
  

 

 

   

 

 

   

 

 

 

Total other (income) expense

  (7,878   —        (7,878
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations

$ (4,234 $ (1,014 $ (5,248

Deemed dividend for beneficial conversion feature on Series D-2 preferred stock

  (909   —        (909

Deemed dividend for antidilution adjustments to convertible preferred stock

  (214   —        (214

Accretion of convertible preferred stock

  (510   —        (510
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations attributable to common stockholders — basic

$ (5,867 $ (1,014 $ (6,881

Derivative fair value adjustment

  (10,080   —        (10,080
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations attributable to common stockholders — diluted

$ (15,947 $ (1,014 $ (16,961
  

 

 

   

 

 

   

 

 

 

Per share information:

Loss per common share from continuing operations, basic

$ (1.04 $ (1.22
  

 

 

     

 

 

 

Loss per common share from continuing operations, diluted

$ (2.69 $ (2.86
  

 

 

     

 

 

 

Weighted average shares outstanding:

Basic

  5,663,311      5,663,311   
  

 

 

     

 

 

 

Diluted

  5,937,087      5,937,087   
  

 

 

     

 

 

 


UNAUDITED CONDENSED PRO FORMA STATEMENTS OF OPERATIONS

YEAR ENDED DECEMBER 31, 2013

(in thousands, except per share amounts)

 

     SCYNEXIS, Inc.
Historical
    Pro Forma
Adjustments
    SCYNEXIS, Inc.
Pro forma
 

Revenue — related party

   $ 7,288      $ (7,288   $ —     

Revenue

     9,569        (9,412     157   
  

 

 

   

 

 

   

 

 

 

Total revenue

  16,857      (16,700 ) (d)    157   

Cost of revenue

  16,305      (16,305 ) (e)    —     
  

 

 

   

 

 

   

 

 

 

Gross profit

  552      (395   157   
  

 

 

   

 

 

   

 

 

 

Operating expenses:

Research and development

  4,363      —    (f)    4,363   

Selling, general and administrative

  4,381      (1,801 ) (g)    2,580   

Gain on sale of asset

  (988   988  (h)    —     
  

 

 

   

 

 

   

 

 

 

Total operating expenses

  7,756      (813   6,943   
  

 

 

   

 

 

   

 

 

 

Loss from operations

  (7,204   418      (6,786

Other expense:

Amortization of deferred financing costs and debt discount

  3,485      —        3,485   

Interest expense on beneficial conversion feature

  10,802      —        10,802   

Interest expense — related party

  892      —        892   

Interest expense, net

  192      —        192   

Derivative fair value adjustment

  7,886      —        7,886   
  

 

 

   

 

 

   

 

 

 

Total other expense

  23,257      —        23,257   
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations

$ (30,461 $ 418    $ (30,043

Deemed dividend for beneficial conversion feature on Series D-2 preferred stock

  (4,232   —        (4,232

Deemed dividend for antidilution adjustments to convertible preferred stock

  (6,402   —        (6,402

Accretion of convertible preferred stock

  (5,714   —        (5,714
  

 

 

   

 

 

   

 

 

 

Loss from continuing operations attributable to common stockholders — basic and diluted

$ (46,809 $ 418    $ (46,391
  

 

 

   

 

 

   

 

 

 

Per share information:

Loss per common share from continuing operations, basic and diluted

$ (139.47 $ (138.23
  

 

 

     

 

 

 

Weighted average shares outstanding:

Basic and diluted

  335,612      335,612   
  

 

 

     

 

 

 

 

(a) With the exception of adjustment amounts described in footnote (b) below, the adjustment amounts in this column represent all assets and liabilities directly associated with operating activities of the Service Business. Certain assets and liabilities that benefit or are utilized across all of our operating activities were allocated using consistently applied methodologies that include employee headcount and facility square footage. See footnote (c) below for additional discussion of certain allocations.


(b) The adjustment to cash and cash equivalents represents the aggregate purchase price of $3,875,000, net of a $824,064 pre-closing working capital adjustment and net of $500,000 withheld and paid into escrow at close. The $500,000 withheld at closing is subject to an escrow for a period of twelve months from the date of close to satisfy indemnification obligations of the Company in connection with breaches of any representation and warranties and other customary obligations under the terms of the Asset Purchase Agreement. We do not expect to incur any indemnification obligations and, therefore, we have presented the escrow balance as current receivable in the balance sheet herein.
(c) Represents allocated property, plant, and equipment assets and deferred rent associated with the service business. All of our operating activities are conducted within a single facility that we lease from a third-party landlord, and the majority of our property, plant, and equipment consist of leasehold improvements related to our leased facility. We have allocated property, plant, and equipment assets and the deferred rent liability associated with our facility lease based on our best estimate of the relative utilization of the facility by our service business and our internal research and development operations. Relative utilization was estimated using facility square footage and direct service business operating cost information. Laboratory equipment directly associated with service business operating activities is also included in the adjustment amount herein.
(d) Represents all revenue generated from our service business.
(e) Represents all expenses directly associated with the generation of service business revenues.
(f) With the exception of $431,000 of animal health research and development expenditures incurred in the three months ended March 31, 2015, all research and development expenses in the periods presented herein are associated with the research and development operating activities of the continuing SCYNEXIS, Inc. entity and are not part of the operating activities of the service business that was sold.
(g) Represents allocated general and administrative expenses associated with the service business. General and administrative expenses that benefit all of our operating activities were allocated using consistently applied methodologies such as employee headcount and facility square footage.
(h) Represents gain amounts associated with insurance recovery and asset sales attributable to the service business.