EXHIBIT 99.2
Unaudited Pro Forma Consolidated Balance Sheet of Nephros, Inc. as of March 31, 2019
On May 15, 2019, Nephros, Inc. (the “Company”) entered into a Stock Purchase Agreement (the “Purchase Agreement”) with certain purchasers identified therein (the “Purchasers”) pursuant to which the Company agreed to sell, and the Purchasers agreed to purchase, 4,444,443 shares (the “Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at a cash purchase price equal to $0.45 per share. The aggregate purchase price payable to the Company for all of the Shares sold under the Purchase Agreement was approximately $2,000,000 before deducting transaction-related expenses. The closing of the sale of the Shares was completed on May 15, 2019.
The unaudited pro forma financial information included herein gives effect to the closing of the sale of the Shares, as if such sale had occurred as of March 31, 2019.
The Proforma Consolidated Balance Sheet as of March 31, 2019 has been prepared based on available information, using assumptions that our management believes are reasonable. The Proforma Consolidated Balance Sheet is not necessarily indicative of the results that may be achieved in the future. The adjustment made in preparing the Proforma Consolidated Balance Sheet is described in the Note.
NEPHROS, INC. AND SUBSIDIARIES
UNAUDITED HISTORICAL AND PROFORMA CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2019
(In thousands, except share amounts)
Pro forma | ||||||||||||||||
Historical | Adjustment | Notes | Pro Forma | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 3,608 | 2,000 | A | $ | 5,608 | ||||||||||
Accounts receivable, net | 1,249 | 1,249 | ||||||||||||||
Inventory, net | 2,040 | 2,040 | ||||||||||||||
Prepaid expenses and other current assets | 275 | 275 | ||||||||||||||
Total current assets | 7,172 | 9,172 | ||||||||||||||
Property and equipment, net | 97 | 97 | ||||||||||||||
Operating lease right-of-use assets | 587 | 587 | ||||||||||||||
Intangible assets, net | 580 | 580 | ||||||||||||||
Goodwill | 759 | 759 | ||||||||||||||
License and supply agreement, net | 904 | 904 | ||||||||||||||
Other assets | 39 | 39 | ||||||||||||||
TOTAL ASSETS | $ | 10,138 | $ | 12,138 | ||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Secured revolving credit facility | $ | 906 | $ | 906 | ||||||||||||
Current portion of secured note payable | 199 | 199 | ||||||||||||||
Accounts payable | 1,030 | 1,030 | ||||||||||||||
Accrued expenses | 512 | 512 | ||||||||||||||
Current portion of contingent consideration | 272 | 272 | ||||||||||||||
Current portion of operating lease liabilities | 191 | 191 | ||||||||||||||
Total current liabilities | 3,110 | 3,110 | ||||||||||||||
Secured note payable, net of current portion | 787 | 787 | ||||||||||||||
Contingent consideration, net of current portion | 231 | 231 | ||||||||||||||
Operating lease liabilities, net of current portion | 406 | 406 | ||||||||||||||
TOTAL LIABILITIES | 4,534 | 4,534 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock, $.001 par value; 5,000,000 shares authorized at March 31, 2019; no shares issued and outstanding at March 31, 2019 | - | - | ||||||||||||||
Common stock, $.001 par value; 90,000,000 shares authorized at March 31, 2019; 69,055,743 shares issued and outstanding at March 31, 2019 | 64 | 4 | A | 68 | ||||||||||||
Additional paid-in capital | 127,974 | 1,996 | A | 129,970 | ||||||||||||
Accumulated other comprehensive income | 68 | 68 | ||||||||||||||
Accumulated deficit | (125,502 | ) | (125,502 | ) | ||||||||||||
Subtotal | 2,604 | 4,604 | ||||||||||||||
Noncontrolling interest | 3,000 | 3,000 | ||||||||||||||
TOTAL STOCKHOLDERS’ EQUITY | 5,604 | 7,604 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 10,138 | $ | 12,138 |
A. | Issuance of 4,444,443 shares of common stock. |