Exhibit 99.1
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PRESENTATION
The unaudited pro forma condensed consolidated balance sheet as of May
31, 2008 and the unaudited pro forma condensed consolidated statements of
operations for the nine months ended May 31, 2008 and the year ended August 31,
2007, are based on the historical financial statements of the Registrant.
The unaudited pro forma condensed consolidated balance sheet as of May
31, 2008 is presented as if the disposition as described in this current Form
8-K occurred in its entirety on May 31, 2008.
The unaudited pro forma condensed consolidated statements of operations
for the nine months ended May 31, 2008 are presented as if the disposition as
described in the current Form 8-K occurred in its entirety on September 1, 2007.
The unaudited pro forma condensed consolidated statements of operations
for the year ended August 31, 2007 are presented as if the disposition as
described in the current Form 8-K occurred in its entirety on September 1, 2006.
The unaudited pro forma condensed consolidated financial statements
should be read in conjunction with the historical financial statements and notes
thereto appearing in the Company's Annual Report on Form 10-KSB for the fiscal
year ended August 31, 2007 and its quarterly report on Form 10-QSB for the
interim period ended May 31, 2008.
Preparation of the pro forma information is provided for informational
purposes only, and is based on assumptions considered appropriate by the
Registrant's management. The pro formal financial information is unaudited and
is not necessarily indicative of the results which would have occurred if the
transactions described above had been consummated as of the dates indicated, nor
does it purport to represent the future financial position and the results of
operations for future periods. In management's opinion, all adjustments
necessary to reflect the effects of the transactions listed above have been
made.
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF MAY 31, 2008
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents ................................................. $ 2,471 $ 50,000 (1) $ 52,471
Prepaid expenses and other current assets ................................. 13,047 -- 13,047
Prepaid commissions ....................................................... 92,685 -- 92,685
Current assets of discontinued operations ................................. 70 (70)(2) --
------------ ------------ ------------
Total current assets ................................................. 108,273 49,930 158,203
Property and equipment (net of accumulated depreciation
of $18,207) ............................................................... 4,999 -- 4,999
Deposits and other assets ...................................................... 17,254 -- 17,254
Investment in IUTM ............................................................. -- 367,275 367,275
Long-term assets of discontinued operations .................................... 163,534 (163,534)(2) --
------------ ------------ ------------
Total assets .................................................... $ 294,060 $ 253,671 $ 547,731
============ ============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Convertible notes payable (net of discount of $246,055) ................... $ 2,098,945 $ -- $ 2,098,945
Convertible notes payable - related parties ............................... 705,450 -- 705,450
Accounts payable and other accrued expenses ............................... 178,574 -- 178,574
Accrued interest payable .................................................. 234,610 -- 234,610
Current liabilities of discontinued operations ............................ 202,484 (202,484)(4) --
------------ ------------ ------------
Total current liabilities ............................................ 3,420,063 (202,484) 3,217,579
Convertible notes payable (net of discount of $346,456) ........................ 743,544 -- 743,544
------------ ------------ ------------
Total liabilities ............................................... 4,163,607 (202,484) 3,961,123
------------ ------------ ------------
Stockholders' Deficit:
Preferred stock, par value $.001 per share; 10,000,000 shares authorized;
342,862 shares issued and outstanding at May 31, 2008 ................ 343 -- 343
Common stock, par value $.001 per share; 200,000,000 shares authorized;
100,130,410 shares issued at May 31, 2008; 71,906,066 shares
outstanding at May 31, 2008 .......................................... 71,906 -- 71,906
Additional paid-in capital ................................................ 48,643,916 -- 48,643,916
Accumulated deficit ....................................................... (52,877,810) 456,155 (52,421,655)
Common stock subscribed, underlying common shares of 5,841,974 ............ 292,098 -- 292,098
------------ ------------ ------------
Total stockholders' deficit ..................................... (3,869,547) 456,155 (3,413,392)
Total liabilities and stockholders' deficit ..................... $ 294,060 $ 253,671 $ 547,731
============ ============ ============
See accompanying notes to unaudited pro forma condensed
consolidated financial information.
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED MAY 31, 2008
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
(unaudited)
Operating expenses:
General and administrative ................ $ 456,845 $ -- $ 456,845
Depreciation and amortization ............. 1,587 -- 1,587
------------ ------------ ------------
Total operating expenses .................. 458,432 -- 458,432
------------ ------------ ------------
Loss from operations ...................... (458,432) -- (458,432)
------------ ------------ ------------
Other income (expense):
Interest income ........................... 331 -- 331
Interest and finance charges .............. (1,364,240) -- (1,364,240)
Loss on disposal of assets ................ (3,194) -- (3,194)
Other income (expense) .................... (1,443) -- (1,443)
------------ ------------ ------------
Total other income (expense) .............. (1,368,546) -- (1,368,546)
------------ ------------ ------------
Net loss from continuing operations ....... (1,826,978) -- (1,826,978)
------------ ------------ ------------
Discontinued operations:
Operating loss from discontinued operations (1,142,275) 1,142,275 --
Gain on disposal of discontinued operations -- 142,350 142,350
------------ ------------ ------------
Net loss from discontinued operations ..... (1,142,275) 1,284,625 --
------------ ------------ ------------
Net loss .................................... $ (2,969,253) $ 1,284,625 $ (1,654,628)
============ ============ ============
Loss per common share, basic and diluted:
Continuing operations ................. $ (0.03) $ (0.03)
Discontinued operations ............... (0.02) (0.00)
------------ ------------
$ (0.05) $ (0.03)
============ ============
Weighted average number of shares
outstanding - basic and diluted ........... 71,481,165 71,481,165
============ ============
See accompanying notes to unaudited pro forma condensed
consolidated financial information.
ONCOLOGIX TECH, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2007
Pro Forma
Historical Adjustments Pro Forma
------------ ------------ ------------
Operating expenses:
General and administrative ....................... $ 1,269,802 $ (484,080)(8) $ 785,722 (8)
Research and development ......................... 4,961,531 (4,961,531)(8) --
Depreciation and amortization .................... 20,914 (18,256)(8) 2,658
------------ ------------ ------------
Total operating expenses ......................... 6,252,247 (5,463,867) 788,380
------------ ------------ ------------
Loss from operations ............................. (6,252,247) 5,463,867 (788,380)
------------ ------------ ------------
Other income (expense):
Interest income .................................. 10,824 (10,078)(8) 746
Interest and finance charges ..................... (1,321,941) 10,864 (1,311,077)
Other income (expense) ........................... 10,409 (46)(8) 10,363
------------ ------------ ------------
Total other income (expense) ..................... (1,300,708) 740 (1,299,968)
------------ ------------ ------------
Net loss from continuing operations .............. (7,552,955) 5,464,607 (2,088,348)
------------ ------------ ------------
Discontinued operations:
Operating loss from discontinued operations ...... (93,178) -- (93,178)
Gain (loss) on disposal of discontinued operations (79) 573,280(7) 573,201
------------ ------------ ------------
Net loss from discontinued operations ............ (93,257) 573,280 480,023
------------ ------------ ------------
Net loss ........................................... $ (7,646,212) $ 6,037,887 $ (1,608,325)
============ ============ ============
Loss per common share, basic and diluted:
Continuing operations ........................ $ (0.12) $ (0.03)
Discontinued operations ...................... (0.00) (0.00)
------------ ------------
$ (0.12) $ (0.03)
============ ============
Weighted average number of shares
outstanding basic and diluted ................... 66,454,700 66,454,700
============ ============
See accompanying notes to unaudited pro forma condensed
consolidated financial information.
NOTES AND MANAGEMENT'S ASSUMPTIONS TO THE UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL INFORMATION
The Company assumes if this transaction closes, the Company will have limited
operations in the marketing of the Oncosphere products produced by IUTM. No
assurance can be given that such a transaction will be consummated, or if
consummated, will be on the terms favorable to the Company.
The following is a description of the unaudited pro forma adjustments to the
Registrant's historical condensed consolidated financial statements.
(1) Reflects the receipt of $50,000 cash in connection with the sale of the
Oncosphere assets if the transaction was consummated on May 31, 2008.
(2) Reflects the disposal of assets, currently classified as assets from
discontinued operations in connection with the transaction of the
Oncosphere assets if the transaction was consummated on May 31, 2008.
(3) Reflects the estimated value of the investment in 20% of IUTM in connection
with the sale of the Oncosphere assets if the transaction was consummated
on May 31, 2008.
(4) Reflects the assumption of liabilities by IUT in connection with the sale
of the Oncosphere assets if the transaction was consummated on May 31,
2008.
(5) Reflects the gain recognized in connection with the sale of the Oncosphere
assets if the transaction was consummated on September 1, 2007 for the
statement of operations and May 31, 2008 for the balance sheet.
(6) Reflects the removal of operating loss from discontinued operations as a
result of the sale if the transaction was consumated on September 1, 2007.
(7) Reflects the gain recognized in connection with the sale of the Oncosphere
assets if the transaction was consummated on September 1, 2006.
(8) Reflects the removal of operations and related operational changes to the
Company as a result of the sale if the transaction was consummated on
September 1, 2006.