EXHIBIT 99
CYTRX CORPORATION
PRO FORMA FINANCIAL INFORMATION
On December 7, 2001, CytRx Corporation entered into a license agreement
(the "License Agreement") with Vical, Incorporated ("Vical") granting Vical
exclusive, worldwide rights to use or sublicense CytRx's TranzFect poloxamer
technology to enhance viral or non-viral delivery of polynucleotides (such as
DNA and RNA) in all preventive and therapeutic human and animal health
applications, except for (1) four infectious disease vaccine targets previously
licensed by CytRx to Merck & Co., Inc. and (2) DNA vaccines or therapeutics
based on prostate-specific membrane antigen (PSMA).
Under the License Agreement, CytRx received a signature payment of
$3,750,000 and has the potential to receive milestone and royalty payments in
the future based on criteria described in the License Agreement.
The accompanying unaudited Pro Forma Condensed Balance Sheet as of November
30, 2001 gives effect to the License Agreement, assuming the transaction had
occurred as of November 30, 2001. The Pro Forma Condensed Balance Sheet has been
prepared by management of CytRx and should be read in conjunction with its
historical financial statements. The historical balances have been prepared in
accordance with generally accepted accounting principles and include all
adjustments, consisting of normal recurring entries, which the Company's
management believes to be necessary for a fair presentation of the period
presented.
CytRx Corporation
Pro Forma Condensed Balance Sheet
November 30, 2001
(unaudited)
Pro Forma
Historical Adjustments Ref Pro Forma
------------ ----------------- ------------
ASSETS
Current assets:
Cash and cash equivalents $ 1,551,053 $ 3,975,000 (1) $ 5,526,053
Receivables 31,265 31,265
Other current assets 31,976 31,976
------------ ------------ ------------
Total current assets 1,614,294 3,975,000 5,589,294
Property and equipment, net 1,794,582 1,794,582
Note receivable 497,382 497,382
Other assets 60,978 60,978
------------ ------------ ------------
Total assets $ 3,967,236 $ 3,975,000 $ 7,942,236
============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 121,033 $ 121,033
Accrued liabilities 435,807 435,807
------------ ------------ ------------
Total current liabilities 556,840 - 556,840
Stockholder's equity:
Preferred stock - -
Common stock 11,459 11,459
Additional paid-in capital 74,504,266 74,504,266
Treasury Stock (2,279,238) (2,279,238)
Accumulated deficit (68,826,091) 3,975,000 (1) (64,851,091)
------------ ------------ ------------
Total stockholder's equity 3,410,396 3,975,000 7,385,396
------------ ------------ ------------
Total liabilities and stockholder's equity $ 3,967,236 $ 3,975,000 $ 7,942,236
============ ============ ============
(1) To reflect the payment of the signature license fee by Vical, Inc. to
CytRx.