Annual report pursuant to Section 13 and 15(d)

15. Investment in Genomas, Inc.

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15. Investment in Genomas, Inc.
12 Months Ended
Dec. 31, 2016
Investments, All Other Investments [Abstract]  
Investment in Genomas, Inc.

Completion of Merger

 

On November 2, 2015, the Company completed the Merger, which was accounted for as a reverse acquisition. As such, the prior period equity amounts have been retroactively restated to reflect the equity instruments of the legal acquirer. The consideration given for CollabRx totals $12,289,297, consisting of the fair value of common stock and warrants exchanged in the merger transaction.

 

The following table summarizes the fair values of assets acquired and liabilities assumed at the acquisition date of CollabRx.

 

Cash   $ 4,737,773  
Accounts receivable     54,675  
Other current assets     105,700  
Property and equipment     92,636  
Accounts payable and accrued expenses     (1,620,000 )
Deferred revenue     (123,000 )
Other liabilities     (520,070 )
Derivative liabilities     (1,578,976 )
Identifiable intangible assets     170,000  
Total identifiable net assets     1,318,738  
Goodwill     12,192,039  
Total consideration   $ 13,510,777  

 

At December 31, 2015, the Company determined that all of its goodwill and intangibles were impaired. As a result, it recorded an impairment charge of $20,143,320 for the year ended December 31, 2015.

  

Pro-Forma Financial Information

 

The following unaudited pro forma data summarizes the results of operations for the years ended December 31, 2015 as if the acquisitions of CollabRx, Clinlab and Epinex had been completed January 1, 2014. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place on January 1, 2014.

 

    For the Year Ended December 31, 2015  
      Rennova Health, Inc. Historical       CollabRx, Inc. (a)       Pro-Forma Adjustments       Combined  
                                 
Net Revenues   $ 18,393,038     $ 425,000     $     $ 18,818,038  
                                 
Operating Expenses     63,858,012       4,881,000             67,507,045  
                                 
Income (Loss) from operations     (45,464,974 )     (4,456,000 )           (48,689,007 )
                                 
Other income (expense)     474,215       (43,000 )           431,215  
                                 
Income (Loss) before income taxes     (44,990,759 )     (4,499,000 )           (48,257,792 )
                                 
Provision for income taxes     (9,028,253 )     (269,000 )     (b)     (9,297,253 )
                                 
Net income (loss) attributable to Rennova Health     (35,962,506 )     (4,230,000 )           (38,960,539 )
                                 
Preferred stock dividends     1,627,188             (1,627,188 )(c)      
                                 
Net income (loss) attributable to Rennova Health common shareholders   $ (37,589,694 )   $ (4,230,000 )   $ 1,627,188     $ (38,960,539 )
                                 
Net income (loss) per common share:                                
Basic   $ (90.46 )                   $ (87.88 )
Diluted   $ (90.46 )                   $ (87.88 )
                                 
Weighted average number of common shares outstanding during the period:                                
Basic     415,517                       443,322  
Diluted     415,517                       443,322  

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  (a) Reflects 2015 and 2014 results of operations prior to the acquisition dates. Clinlab was acquired on March 18, 2014, Epinex was acquired on August 26, 2014 and CollabRx was acquired on November 2, 2015. For the year ended December 31, 2014, CollabRx is included using its fiscal year ended March 31, 2015 financial statements.
  (b) Reflects changes in taxes, if any, resulting from including the aggregate net losses of acquired operations in the corporate tax return.
  (c) Reflects elimination of preferred stock dividend accruals resulting from the reverse merger with CollabRx.