Annual report pursuant to Section 13 and 15(d)

13. Business Combinations (Tables)

v3.4.0.3
13. Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2015
Schedule of goodwill
   

December 31,

2015

    

December 31,

2014

  
Medical Billing Choices, Inc.   $ –     $ 1,202,112  
PB Laboratories, LLC     –       107,124  
Biohealth Medical Laboratory, Inc.     –       116,763  
Clinlab, Inc.     –       857,532  
Medical Mime, Inc.     –       274,811  
Epinex Diagnostics Laboratories, Inc.     –       581,600  
    $ –     $ 3,139,942  
Proforma information

    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       –       68,739,012  
                                 
Income (Loss) from operations     (45,464,974 )     (4,456,000 )     –       (49,920,974 )
                                 
Other income (expense)     474,215       (43,000 )     –       431,215  
                                 
Income (Loss) before income taxes     (44,990,759 )     (4,499,000 )     –       (49,489,759 )
                                 
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 )     –       (40,192,506 )
                                 
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     $ (40,192,506 )
                                 
Net income (loss) per common share:                                
Basic   $ (3.02 )                   $ (2.96 )
Diluted   $ (3.02 )                   $ (2.96 )
                                 
Weighted average number of common shares outstanding during the period:  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 		  
 
Basic     12,465,486                       13,556,303  
Diluted     12,465,486                       13,556,303  

 

                                     
    For the Year Ended December 31, 2014  
      Rennova Health, Inc. Historical       Epinex Diagnostics Laboratories, Inc.       Clinlab, Inc.       CollabRx, Inc.       Pro-Forma Adjustments       Combined  
                                                 
Net Revenues   $ 57,927,820     $ 44,299     $ 98,446     $ 498,000     $ –     $ 58,568,565  
                                                 
Operating Expenses     42,272,826       329,258       94,414       5,936,000       –       48,632,498  
                                                 
Income (Loss) from operations     15,654,994       (284,959 )     4,032       (5,438,000 )     –       9,936,067  
                                                 
Other income (expense)     (273,362 )     12,753       1       (27,000 )     –       (287,608 )
                                                 
Income (Loss) before income taxes     15,381,632       (272,206 )     4,033       (5,465,000 )     –       9,648,459  
                                                 
Provision for income taxes     7,561,300       –       –       (301,000 )     (2,532,555 )(b)     4,727,745  
                                                 
Net income (loss) attributable to Rennova Health     7,820,332       (272,206 )     4,033       (5,164,000 )     –       4,920,714  
                                                 
Preferred stock dividends     5,010,300       –       –       –       (5,010,300 )(c)     –  
                                                 
Net income (loss) attributable to Rennova Health common shareholders   $ 2,810,032     $ (272,206 )   $ 4,033     $ (5,164,000 )   $ 5,010,300     $ 4,920,714  
                                                 
Net income (loss) per common share:                                                
Basic   $ 0.23                                     $ 0.36  
Diluted   $ 0.22                                     $ 0.35  
                                                 
Weighted average number of common shares outstanding during the period:                                                
Basic     12,247,978                                       13,553,382  
Diluted     12,667,858                                       13,973,262  

_______________

(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.

 
CollabRx [Member]  
Consideration allocation for acquisitions
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     1,818,738  
         
Goodwill     12,237,380  
         
Total consideration   $ 13,510,777  
Epinex Diagnostics Laboratories, Inc. [Member]  
Consideration allocation for acquisitions
Consideration Given:        
         
Cash at closing   $ 100,000  
Acquisition Notes     385,545  
Series E Convertible Preferred Stock (100,000 shares)     800,000  
Contingent consideration adjustment     (43,800 )
         
    $ 1,241,745  
Fair value of identifiable assets acquired and liabilities assumed:          
         
Cash   $ 36,677  
Property and equipment, net     26,983  
Deposits     285  
Accounts payable     (227,855 )
Accrued expenses     (75,945 )
Identifiable intangible assets     900,000  
Total identifiable net assets     660,145  
         
Goodwill     581,600  
         
Total consideration   $ 1,241,745  
GlobalOne Information Technologies, LLC [Member]  
Consideration allocation for acquisitions
Consideration Given:        
         
Cash at closing   $ 500,000  
Common stock (10,000 shares)     25,000  
Contingent acquisition liability     150,000  
         
Total Consideration   $ 675,000  
         
Fair value of identifiable assets acquired and liabilities assumed:        
         
Accounts receivable   $ 93,270  
Property and equipment, net     7,005  
Software     182,000  
Accounts payable     (95,086 )
Identifiable intangible assets     213,000  
Total identifiable net assets     400,189  
         
Goodwill     274,811  
         
Total consideration   $ 675,000  
Clinlab, Inc. [Member]  
Consideration allocation for acquisitions
Consideration Given:        
         
Cash at closing   $ 1,000,000  
Series D Convertible Preferred Stock (200,000 shares)     1,250,000  
Contingent acquisition liability     54,017  
         
Total Consideration   $ 2,304,017  
         
Fair value of identifiable assets acquired and liabilities assumed:        
         
Cash   $ 31,671  
Accounts receivable     54,017  
Other current assets     241  
Software     1,252,000  
Deposits     700  
Accounts payable     (4,942 )
Accrued expenses     (39,202 )
Identifiable intangible assets     152,000  
Total identifiable net assets     1,446,485  
         
Goodwill     857,532  
         
Total consideration   $ 2,304,017