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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended
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March 31, 2015
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Commission File Number:
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001-35076
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NAVIDEA BIOPHARMACEUTICALS, INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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31-1080091
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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5600 Blazer Parkway, Suite 200, Dublin, Ohio
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43017-7550
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(Address of principal executive offices)
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(Zip Code)
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(614) 793-7500
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(Registrant’s telephone number, including area code)
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(Former name, former address and former fiscal year, if changed since last report)
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Large accelerated filer
¨
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Accelerated filer
x
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Non-accelerated filer
¨
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Smaller reporting company
¨
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PART I – Financial Information
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Item 1.
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Financial Statements
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Consolidated Balance Sheets as of March 31, 2015 (unaudited) and December 31, 2014
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Consolidated Statements of Operations for the Three-Month Periods Ended March 31, 2015 and March 31, 2014 (unaudited)
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Consolidated Statement of Stockholders’ Deficit for the Three-Month Period Ended March 31, 2015 (unaudited)
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Consolidated Statements of Cash Flows for the Three-Month Periods Ended March 31, 2015 and March 31, 2014 (unaudited)
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Notes to the Consolidated Financial Statements (unaudited)
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Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
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Forward-Looking Statements
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The Company
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Product Line Overview
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Outlook
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Results of Operations
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Liquidity and Capital Resources
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Recent Accounting Pronouncements
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Critical Accounting Policies
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Item 3.
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Quantitative and Qualitative Disclosures About Market Risk
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Item 4.
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Controls and Procedures
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PART II – Other Information
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|
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Item 1A.
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Risk Factors
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|
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Item 6.
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Exhibits
|
ASSETS
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March 31, 2015
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|
December 31, 2014
|
||||
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(unaudited)
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash
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$
|
4,884,189
|
|
|
$
|
5,479,006
|
|
Accounts receivable
|
1,211,015
|
|
|
816,544
|
|
||
Inventory, net
|
571,605
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|
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932,385
|
|
||
Prepaid expenses and other
|
1,350,969
|
|
|
1,371,210
|
|
||
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|
|
|
||||
Total current assets
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8,017,778
|
|
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8,599,145
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||
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|
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|
||||
Property and equipment
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3,980,470
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|
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4,124,028
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|
||
Less accumulated depreciation and amortization
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1,631,190
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|
|
1,614,320
|
|
||
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|
|
|
||||
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2,349,280
|
|
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2,509,708
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|
||
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|
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|
||||
Patents and trademarks
|
212,147
|
|
|
219,558
|
|
||
Less accumulated amortization
|
41,091
|
|
|
38,725
|
|
||
|
|
|
|
||||
|
171,056
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|
|
180,833
|
|
||
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|
|
|
||||
Investment in R-NAV, LLC
|
—
|
|
|
241,575
|
|
||
Other assets
|
379,795
|
|
|
388,919
|
|
||
|
|
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|
||||
Total assets
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$
|
10,917,909
|
|
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$
|
11,920,180
|
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LIABILITIES AND STOCKHOLDERS’ DEFICIT
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March 31, 2015
|
|
December 31, 2014
|
||||
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(unaudited)
|
|
|
||||
Current liabilities:
|
|
|
|
|
|
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Accounts payable
|
$
|
1,905,957
|
|
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$
|
1,477,499
|
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Accrued liabilities and other
|
3,898,019
|
|
|
3,234,120
|
|
||
Deferred revenue, current
|
1,000,000
|
|
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—
|
|
||
Notes payable, current, net of discounts of $816,539 and $829,019, respectively
|
6,092,442
|
|
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4,383,472
|
|
||
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|
||||
Total current liabilities
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12,896,418
|
|
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9,095,091
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|
||
|
|
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|
||||
Deferred revenue
|
916,667
|
|
|
—
|
|
||
Notes payable, net of discounts of $1,339,596 and $1,530,804, respectively
|
29,306,751
|
|
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29,539,135
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|
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Other liabilities
|
3,161,885
|
|
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3,089,420
|
|
||
|
|
|
|
||||
Total liabilities
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46,281,721
|
|
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41,723,646
|
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|
||||
Commitments and contingencies
|
|
|
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|
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||
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|
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|
||||
Stockholders’ deficit:
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|
|
|
|
|
||
Preferred stock; $.001 par value; 5,000,000 shares authorized; 4,519 Series B shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively
|
4
|
|
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4
|
|
||
Common stock; $.001 par value; 200,000,000 shares authorized; 150,610,860 and 150,200,259 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively
|
150,611
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150,200
|
|
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Additional paid-in capital
|
324,277,768
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323,030,301
|
|
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Accumulated deficit
|
(360,275,096
|
)
|
|
(352,983,971
|
)
|
||
Total Navidea stockholders' deficit
|
(35,846,713
|
)
|
|
(29,803,466
|
)
|
||
Noncontrolling interest
|
482,901
|
|
|
—
|
|
||
|
|
|
|
||||
Total stockholders’ deficit
|
(35,363,812
|
)
|
|
(29,803,466
|
)
|
||
|
|
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|
||||
Total liabilities and stockholders’ deficit
|
$
|
10,917,909
|
|
|
$
|
11,920,180
|
|
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Three Months Ended
March 31,
|
||||||
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2015
|
|
2014
|
||||
Revenue:
|
|
|
|
|
|
||
Lymphoseek sales revenue
|
$
|
1,835,422
|
|
|
$
|
626,631
|
|
Lymphoseek license revenue
|
83,333
|
|
|
—
|
|
||
Grant and other revenue
|
189,701
|
|
|
125,173
|
|
||
Total revenue
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2,108,456
|
|
|
751,804
|
|
||
|
|
|
|
||||
Cost of goods sold
|
449,057
|
|
|
193,220
|
|
||
|
|
|
|
||||
Gross profit
|
1,659,399
|
|
|
558,584
|
|
||
|
|
|
|
||||
Operating expenses:
|
|
|
|
|
|
||
Research and development
|
3,981,288
|
|
|
5,226,794
|
|
||
Selling, general and administrative
|
5,494,168
|
|
|
3,910,833
|
|
||
Total operating expenses
|
9,475,456
|
|
|
9,137,627
|
|
||
|
|
|
|
||||
Loss from operations
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(7,816,057
|
)
|
|
(8,579,043
|
)
|
||
|
|
|
|
||||
Other income (expense):
|
|
|
|
|
|
||
Interest expense, net
|
(966,576
|
)
|
|
(937,045
|
)
|
||
Equity in loss of R-NAV, LLC
|
(262,227
|
)
|
|
—
|
|
||
Change in fair value of financial instruments
|
1,727,103
|
|
|
392,483
|
|
||
Loss on extinguishment of debt
|
—
|
|
|
(2,610,196
|
)
|
||
Other, net
|
26,532
|
|
|
(6,752
|
)
|
||
Total other income (expense), net
|
524,832
|
|
|
(3,161,510
|
)
|
||
|
|
|
|
||||
Net loss
|
(7,291,225
|
)
|
|
(11,740,553
|
)
|
||
Net loss attributable to noncontrolling interest
|
(100
|
)
|
|
—
|
|
||
Deemed dividend on beneficial conversion feature of MT Preferred Stock
|
(46,000
|
)
|
|
—
|
|
||
|
|
|
|
||||
Net loss attributable to common stockholders
|
$
|
(7,337,125
|
)
|
|
$
|
(11,740,553
|
)
|
|
|
|
|
||||
Loss per common share (basic and diluted)
|
$
|
(0.05
|
)
|
|
$
|
(0.08
|
)
|
|
|
|
|
||||
Weighted average shares outstanding (basic and diluted)
|
149,794,331
|
|
|
144,783,351
|
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional
Paid-In
|
|
Accumulated
|
|
Non-controlling
|
|
Total Stockholders'
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Deficit
|
|
Interest
|
|
Deficit
|
||||||||||||||
Balance, December 31, 2014
|
4,519
|
|
|
$
|
4
|
|
|
150,200,259
|
|
|
$
|
150,200
|
|
|
$
|
323,030,301
|
|
|
$
|
(352,983,971
|
)
|
|
$
|
—
|
|
|
$
|
(29,803,466
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Issued restricted stock
|
—
|
|
|
—
|
|
|
332,000
|
|
|
332
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
332
|
|
||||||
Canceled forfeited restricted stock
|
—
|
|
|
—
|
|
|
(18,750
|
)
|
|
(19
|
)
|
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Canceled stock to pay employee tax obligations
|
—
|
|
|
—
|
|
|
(7,645
|
)
|
|
(7
|
)
|
|
7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Issued stock in payment of Board retainers
|
—
|
|
|
—
|
|
|
36,839
|
|
|
37
|
|
|
69,586
|
|
|
—
|
|
|
—
|
|
|
69,623
|
|
||||||
Issued stock to 401(k) plan
|
—
|
|
|
—
|
|
|
68,157
|
|
|
68
|
|
|
117,031
|
|
|
—
|
|
|
—
|
|
|
117,099
|
|
||||||
Stock compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,106,824
|
|
|
—
|
|
|
|
|
1,106,824
|
|
|||||||
Net loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,291,125
|
)
|
|
(100
|
)
|
|
(7,291,225
|
)
|
||||||
Issuance of MT Preferred Stock, net of deemed dividend on beneficial conversion feature
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(46,000
|
)
|
|
—
|
|
|
483,001
|
|
|
437,001
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Balance, March 31, 2015
|
4,519
|
|
|
$
|
4
|
|
|
150,610,860
|
|
|
$
|
150,611
|
|
|
$
|
324,277,768
|
|
|
$
|
(360,275,096
|
)
|
|
$
|
482,901
|
|
|
$
|
(35,363,812
|
)
|
|
Three Months Ended March 31,
|
||||||
|
2015
|
|
2014
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net loss
|
$
|
(7,291,225
|
)
|
|
$
|
(11,740,553
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||
Depreciation and amortization
|
149,822
|
|
|
111,270
|
|
||
Loss on disposal and abandonment of assets
|
5,726
|
|
|
10,866
|
|
||
Change in inventory reserve
|
120,302
|
|
|
—
|
|
||
Amortization of debt discount and issuance costs
|
212,813
|
|
|
241,827
|
|
||
Stock compensation expense
|
1,106,824
|
|
|
693,203
|
|
||
Equity in loss of R-NAV, LLC
|
262,227
|
|
|
—
|
|
||
Change in fair value of financial instruments
|
(1,727,103
|
)
|
|
(392,483
|
)
|
||
Loss on extinguishment of debt
|
—
|
|
|
2,610,196
|
|
||
Issued stock to 401(k) plan for employer matching contributions
|
117,099
|
|
|
—
|
|
||
Other
|
48,971
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(394,471
|
)
|
|
563,888
|
|
||
Inventory
|
240,478
|
|
|
118,521
|
|
||
Prepaid expenses and other assets
|
20,241
|
|
|
78,533
|
|
||
Accounts payable
|
428,458
|
|
|
3,901
|
|
||
Accrued and other liabilities
|
673,969
|
|
|
(1,471,562
|
)
|
||
Deferred revenue
|
1,916,667
|
|
|
—
|
|
||
Net cash used in operating activities
|
(4,109,202
|
)
|
|
(9,172,393
|
)
|
||
|
|
|
|
||||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of equipment
|
—
|
|
|
(985,578
|
)
|
||
Proceeds from sales of equipment
|
20,300
|
|
|
—
|
|
||
Patent and trademark costs
|
(5,643
|
)
|
|
(7,055
|
)
|
||
Net cash provided by (used in) investing activities
|
14,657
|
|
|
(992,633
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities:
|
|
|
|
|
|
||
Proceeds from issuance of MT Preferred Stock and warrants
|
500,000
|
|
|
—
|
|
||
Proceeds from issuance of common stock and short swing profits
|
332
|
|
|
54,674
|
|
||
Payment of tax withholdings related to stock-based compensation
|
—
|
|
|
(70,914
|
)
|
||
Proceeds from notes payable
|
3,000,000
|
|
|
30,000,000
|
|
||
Payment of debt-related costs
|
—
|
|
|
(1,750,770
|
)
|
||
Principal payments on notes payable
|
—
|
|
|
(25,000,000
|
)
|
||
Payments under capital leases
|
(604
|
)
|
|
(527
|
)
|
||
Net cash provided by financing activities
|
3,499,728
|
|
|
3,232,463
|
|
||
|
|
|
|
||||
Net decrease in cash
|
(594,817
|
)
|
|
(6,932,563
|
)
|
||
Cash, beginning of period
|
5,479,006
|
|
|
32,939,026
|
|
||
Cash, end of period
|
$
|
4,884,189
|
|
|
$
|
26,006,463
|
|
a.
|
Basis of Presentation:
The information presented as of
March 31, 2015
and for the three-month
periods ended
March 31, 2015
and
2014
is unaudited, but includes all adjustments (which consist only of normal recurring adjustments) that the management of Navidea Biopharmaceuticals, Inc. (Navidea, the Company, or we) believes to be necessary for the fair presentation of results for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. The balances as of
March 31, 2015
and the results for the interim periods are not necessarily indicative of results to be expected for the year. The consolidated financial statements should be read in conjunction with Navidea’s audited consolidated financial statements for the year ended
December 31, 2014
, which were included as part of our Annual Report on Form 10-K.
|
b.
|
Financial Instruments and Fair Value:
In accordance with current accounting standards, the fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
|
(1)
|
Cash, accounts receivable, accounts payable, and accrued liabilities: The carrying amounts approximate fair value because of the short maturity of these instruments.
|
(2)
|
Notes payable: The carrying value of our debt at
March 31, 2015
and
December 31, 2014
primarily consists of the face amount of the notes less unamortized discounts. See Note 8. At
March 31, 2015
and
December 31, 2014
, certain notes payable were also required to be recorded at fair value. The estimated fair value of our debt was calculated using a discounted cash flow analysis as well as a probability-weighted Monte Carlo simulation. These valuation methods include Level 3 inputs such as the estimated current market interest rate for similar instruments with similar creditworthiness. For the debt recorded at fair value, unrealized gains and losses on the fair value of the debt are classified in other expenses as a change in the fair value of financial instruments in the consolidated statements of operations. At
March 31, 2015
, the fair value of our notes payable is approximately
$39.3 million
.
|
(3)
|
Derivative liabilities: Derivative liabilities are related to certain outstanding warrants which are recorded at fair value. Derivative liabilities totaling
$63,000
as of
March 31, 2015
were included in other liabilities on the consolidated balance sheets. No derivative liabilities were outstanding as of December 31, 2014. The assumptions used to calculate fair value as of
March 31, 2015
included volatility, a risk-free rate and expected
|
c.
|
Revenue Recognition:
We currently generate revenue primarily from sales of Lymphoseek. Our standard shipping terms are FOB shipping point, and title and risk of loss passes to the customer upon delivery to a carrier for shipment from Cardinal Health’s national distribution center to another point of destination. We generally recognize sales revenue related to sales of our products when the products are shipped. Our customers have no right to return products purchased in the ordinary course of business.
|
d.
|
Recent Accounting Pronouncements:
In February 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-02,
Amendments to the Consolidation Analysis
. ASU 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments: (i) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (VIEs) or voting interest entities, (ii) eliminate the presumption that a general partner should consolidate a limited partnership, and (iii) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The amendments may be applied using a modified retrospective approach or a full retrospective approach. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the impact of our adoption of ASU 2015-02, however we do not expect the adoption of ASU 2015-02 to have a material effect on our consolidated financial statements upon adoption.
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Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2014
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||||||||||||||||
Description
|
|
Quoted Prices in Active Markets for Identical Liabilities (Level 1)
|
|
Significant Other Observable Inputs (Level 2)
|
|
Significant Unobservable Inputs
(Level 3) |
|
Total
|
||||||||
Platinum notes payable
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,615,764
|
|
|
$
|
5,615,764
|
|
a.
|
Valuation Processes-Level 3 Measurements:
Depending on the instrument, the Company utilizes discounted cash flows, option pricing models, or third-party valuation services to estimate the value of their financial assets and liabilities. Valuations using discounted cash flow methods and certain option pricing models such as Black-Scholes are generally conducted by the Company or by third-party valuation experts. Valuations using complex models such as a Monte Carlo simulation are generally provided to the Company by third-party valuation experts. Each reporting period, the Company provides significant unobservable inputs to the third-party valuation experts based on current internal estimates and forecasts.
|
b.
|
Sensitivity Analysis-Level 3 Measurements:
Changes in the Company’s current internal estimates and forecasts are likely to cause material changes in the fair value of certain liabilities. The significant unobservable inputs used in the fair value measurement of the liabilities include the amount and timing of future draws expected to be taken under the Platinum Loan Agreement based on current internal forecasts, management’s estimate of the likelihood of actually making those draws as opposed to obtaining other sources of financing, and management’s estimate of the likelihood of those draws ultimately resulting in Platinum exercising their conversion option under the Platinum Loan Agreement. Significant increases (decreases) in any of the significant unobservable inputs would result in a higher (lower) fair value measurement. A change in one of the inputs would not necessarily result in a directionally similar change in the others.
|
|
Three Months Ended March 31, 2015
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|||||||||||
|
Number of
Options
|
|
Weighted
Average
Exercise
Price
|
|
Weighted
Average
Remaining
Contractual
Life
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding at beginning of period
|
5,345,764
|
|
|
$
|
2.16
|
|
|
|
|
|
||
Granted
|
1,169,100
|
|
|
1.69
|
|
|
|
|
|
|||
Outstanding at end of period
|
6,514,864
|
|
|
$
|
2.07
|
|
|
7.7 years
|
|
$
|
877,344
|
|
|
|
|
|
|
|
|
|
|||||
Exercisable at end of period
|
2,880,199
|
|
|
$
|
2.31
|
|
|
5.9 years
|
|
$
|
534,643
|
|
|
Three Months Ended March 31, 2015
|
|||||
|
Number of
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
|||
Unvested at beginning of period
|
498,250
|
|
|
$
|
1.91
|
|
Granted
|
332,000
|
|
|
1.73
|
|
|
Vested
|
(140,000
|
)
|
|
2.28
|
|
|
Forfeited
|
(18,750
|
)
|
|
1.26
|
|
|
Unvested at end of period
|
671,500
|
|
|
$
|
1.76
|
|
|
March 31, 2015
|
|
December 31,
2014
|
||||
|
(unaudited)
|
|
|
||||
Work-in-process
|
$
|
360,442
|
|
|
$
|
495,449
|
|
Finished goods
|
211,163
|
|
|
436,936
|
|
||
Total
|
$
|
571,605
|
|
|
$
|
932,385
|
|
Accrued separation costs, beginning of period
|
$
|
449,351
|
|
Payments related to May 2014 reduction in force
|
(405,187
|
)
|
|
Charges incurred with March 2015 reduction in force
|
1,039,598
|
|
|
Payments related to March 2015 reduction in force
|
(28,630
|
)
|
|
Accrued separation costs, end of period
|
$
|
1,055,132
|
|
|
As of
March 31, 2015
|
||
Separation payments, including payroll taxes
|
$
|
964,013
|
|
Estimated cost of continuing healthcare coverage
|
91,119
|
|
|
|
$
|
1,055,132
|
|
a.
|
Debt Refinancing:
In May 2015, we executed a Loan Agreement (the CRG Loan Agreement) with Capital Royalty Group (CRG) providing for an initial funding of
$50 million
and bearing interest at
14.0%
(the CRG Note). The initial funding is expected to be received by the end of May 2015. We will make quarterly payments of interest only beginning three months after initial funding. Commencing four years after initial funding, the Company will make
24
consecutive equal monthly payments of principal and interest. All unpaid principal, and accrued and unpaid interest, along with an end-of-term final payment fee of
$2.5 million
, will be due and payable in full six years after the closing date. The CRG Note will be collateralized by a security interest in substantially all of the Company’s assets. The CRG Loan Agreement requires that the Company adhere to certain affirmative and negative covenants, including, without limitation, financial reporting requirements and a prohibition against the incurrence of indebtedness, or creation of additional liens, other than as specifically permitted by the terms of the CRG Loan Agreement. The majority of the proceeds from the CRG Note will be used to repay all amounts outstanding under the Oxford Loan Agreement of approximately
$31.6 million
, including payments of
$300,000
as a pre-payment fee and
$2.4 million
as an end-of-term final payment fee. The remaining proceeds will be used to support the growth of the Company's Manocept technology and for general operating purposes.
|
b.
|
Platinum Credit Facility:
The Company drew a total of
$1.5 million
under the Platinum credit facility in April 2015. In May 2015, in connection with the execution of the CRG Loan Agreement, the Company also amended the existing Platinum credit facility to allow this facility to remain in place in a subordinated role to the CRG Loan. The amendment will become effective upon initial funding of the CRG Loan Agreement and will allow Platinum to convert the entire
$7.7 million
currently outstanding under the credit facility during a time period in which the Company's stock price exceeds
$2.53
per share for
10
consecutive trading days.
|
c.
|
Sublicense Termination Agreement:
In April 2015, the Company entered into an agreement with Alseres Pharmaceuticals, Inc. (Alseres) to terminate the sub-license agreement dated July 31, 2012 for research, development and commercialization of NAV5001. Under the terms of this agreement, Navidea will transfer all regulatory, clinical and manufacturing-related data related to NAV5001 to Alseres. Alseres will reimburse Navidea for any incurred maintenance costs of the contract manufacturer retroactive to March 1, 2015. In addition, as requested by Alseres, Navidea will supply clinical support services for NAV5001 on a cost-plus reimbursement basis. In consideration for the rights granted to Alseres, Navidea will also receive a milestone payment upon clearance to market NAV5001 by the U.S. FDA and a royalty on subsequent net sales of NAV5001.
|
•
|
general economic and business conditions, both nationally and in our markets;
|
•
|
our history of losses, negative net worth and uncertainty of future profitability;
|
•
|
our ability to successfully complete research and further development of our drug candidates;
|
•
|
the timing, cost and uncertainty of obtaining regulatory approvals of our drug candidates;
|
•
|
our ability to successfully commercialize our drug candidates;
|
•
|
our expectations and estimates concerning future financial performance, financing plans and the impact of competition;
|
•
|
our ability to raise capital sufficient to fund our development and commercialization programs;
|
•
|
our ability to implement our growth strategy;
|
•
|
anticipated trends in our business;
|
•
|
advances in technologies; and
|
•
|
other risk factors set forth in this report and detailed in our most recent Annual Report on Form 10-K and other SEC filings.
|
•
|
NAV4694 is a fluorine-18 (F-18) radiolabeled PET imaging agent being developed as an aid in the diagnosis of patients with signs or symptoms of Alzheimer’s disease (AD) and mild cognitive impairment (MCI). NAV4694 is in Phase 3 clinical development. The Company is currently engaged in evaluating term sheets related to NAV4694.
|
•
|
NAV5001 is an iodine-123 (I-123) radiolabeled SPECT imaging agent being developed as an aid in the diagnosis of Parkinson’s disease (PD) and other movement disorders, with potential use as a diagnostic aid in dementia. NAV5001 is in Phase 3 clinical development. In April 2015, the Company entered into an agreement with Alseres Pharmaceuticals, Inc. (Alseres) to terminate the sub-license agreement dated July 31, 2012 for research, development and commercialization of NAV5001. Under the terms of this agreement, Navidea will transfer all regulatory, clinical
|
|
|
Three Months Ended
March 31,
|
||||||
Development Program
|
|
2015
|
|
2014
|
||||
Lymphoseek
|
|
$
|
639,796
|
|
|
$
|
625,583
|
|
Manocept Platform
|
|
164,671
|
|
|
167,013
|
|
||
Macrophage Therapeutics
|
|
28,027
|
|
|
—
|
|
||
NAV4694
|
|
1,206,333
|
|
|
1,618,128
|
|
||
NAV5001
|
|
139,677
|
|
|
519,158
|
|
||
NAV1800
|
|
—
|
|
|
27,865
|
|
•
|
Stock-Based Compensation
. Stock-based payments to employees and directors, including grants of stock options and restricted stock, are recognized in the statements of operations based on their estimated fair values on the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes option pricing model to value share-based payments and the portion that is ultimately expected to vest is recognized as compensation expense over either (1) the requisite service period or (2) the estimated performance period. The determination of fair value using the Black-Scholes option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables, including expected stock price volatility, risk-free interest rate, expected dividends and projected employee stock option behaviors. We estimate the expected term based on the contractual term of the awards and employees' exercise and expected post-vesting termination behavior. The restricted stock awards are valued based on the closing stock price on the date of grant and amortized ratably over the estimated life of the award.
|
•
|
Inventory Valuation.
We record our inventory at the lower of cost (first-in, first-out method) or market. Our valuation reflects our estimates of excess and obsolete inventory as well as inventory with a carrying value in excess of its net realizable value. Write-offs are recorded when product is removed from saleable inventory. We review inventory on hand at least quarterly and record provisions for excess and obsolete inventory based on several factors, including current assessment of future product demand, anticipated release of new products into the market and product expiration. Our industry is characterized by rapid product development and frequent new product introductions. Regulations regarding use and shelf life, product recalls and variation in product utilization all impact the estimates related to excess and obsolete inventory.
|
•
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Fair Value of Derivative Instruments.
Derivative instruments embedded in contracts, to the extent not already a free-standing contract, are bifurcated and accounted for separately. All derivatives are recorded on the consolidated balance sheets at fair value in accordance with current accounting guidelines for such complex financial instruments. Unrealized gains and losses on the derivatives are classified in other expenses as a change in derivative liabilities in the consolidated statements of operations. We do not use derivative instruments for hedging of market risks or for trading or speculative purposes.
|
•
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pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
•
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorization of management and directors of the Company; and
|
•
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on the financial statements.
|
10.1
|
Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan (as amended March 3, 2015).*
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10.2
|
Securities Exchange Agreement dated as of March 11, 2015 among Macrophage Therapeutics, Inc., Platinum-Montaur Life Sciences, LLC and Michael Goldberg, M.D.*
|
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
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|
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31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
|
|
32.1
|
Certification of Chief Executive Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.**
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|
|
32.2
|
Certification of Chief Financial Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.**
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101.INS
|
XBRL Instance Document*
|
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101.SCH
|
XBRL Taxonomy Extension Schema Document*
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101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document*
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101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document*
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101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document*
|
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101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document*
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*
|
Filed herewith.
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**
|
Furnished herewith.
|
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NAVIDEA BIOPHARMACEUTICALS, INC.
|
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(the Company)
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|
May 11, 2015
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By:
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/s/ Ricardo J. Gonzalez
|
|
|
|
|
Ricardo J. Gonzalez
|
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President and Chief Executive Officer
|
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(duly authorized officer; principal executive officer)
|
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|
|
By:
|
/s/ Brent L. Larson
|
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|
|
|
Brent L. Larson
|
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Executive Vice President and Chief Financial Officer
|
|
|
(principal financial and accounting officer)
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10.1
|
Navidea Biopharmaceuticals, Inc. 2014 Stock Incentive Plan (as amended March 3, 2015).*
|
|
|
10.2
|
Securities Exchange Agreement dated as of March 11, 2015 among Macrophage Therapeutics, Inc., Platinum-Montaur Life Sciences, LLC and Michael Goldberg, M.D.*
|
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
|
|
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
|
|
|
32.1
|
Certification of Chief Executive Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.**
|
|
|
32.2
|
Certification of Chief Financial Officer of Periodic Financial Reports pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350.**
|
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101.INS
|
XBRL Instance Document*
|
|
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101.SCH
|
XBRL Taxonomy Extension Schema Document*
|
|
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101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document*
|
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|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document*
|
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101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document*
|
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101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document*
|
*
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Filed herewith.
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**
|
Furnished herewith.
|
(a)
|
to determine the persons to whom, and the time or times at which, Awards shall be granted and the number of Shares to be subject to each Award;
|
(b)
|
to determine the type of Award granted;
|
(c)
|
to determine the Fair Market Value of Shares or other property where applicable;
|
(d)
|
to determine the terms, conditions and restrictions applicable to each Award (which need not be identical) and any Shares acquired pursuant thereto (other than the Options granted to Nonemployee Directors, as described under the Plan), including, without limitation, (i) the exercise or purchase price of Shares pursuant to any Award, (ii) the method of payment for Shares purchased pursuant to any Award, (iii) the method for satisfaction of any tax withholding obligation arising in connection with Award, including by the withholding or delivery of Shares, (iv) the timing, terms and conditions of the exercisability or vesting of any Award or any Shares acquired pursuant thereto, (v) the time of the expiration of any Award, (vi) the effect of the Participants termination of Service on any of the foregoing, (vii) adopt procedures and subplans as are necessary or appropriate to permit participation in the Plan by Employees, Consultants, and Nonemployee Directors who are foreign nationals or employed outside of the United States, and (viii) all other terms, conditions and restrictions applicable to any Award or Shares acquired pursuant thereto not inconsistent with the terms of the Plan;
|
(e)
|
to determine how an Award will be settled, as provided under an Award Agreement;
|
(f)
|
to approve one or more forms of Award Agreement;
|
(g)
|
to amend, modify, extend, cancel or renew any Award or to waive any restrictions or conditions applicable to any Award or any Shares acquired upon the exercise thereof;
|
(h)
|
to accelerate, continue, extend or defer the exercisability of any Award or the vesting of any Shares acquired upon the exercise thereof, including with respect to the period following a Participants termination of Service;
|
(i)
|
to prescribe, amend or rescind rules, guidelines and policies relating to the Plan, or to adopt sub-plans or supplements to, or alternative versions of, the Plan, including, without limitation, as the Committee deems necessary or desirable to comply with the laws or regulations of or to accommodate the tax policy, accounting principles or custom of, foreign jurisdictions whose citizens may be granted Awards; and
|
(j)
|
to correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award Agreement and to make all other determinations and take such other actions with respect to the Plan or any Award as the Committee may deem advisable to the extent not inconsistent with the provisions of the Plan or applicable law.
|
(a)
|
Appropriate adjustments in the aggregate number of Shares issuable pursuant to the Plan, the number of Shares subject to each outstanding award granted under the Plan, the Option price with respect to Options and Tandem SARs, the specified price of SARs not connected to Options, and the value for Performance Units, shall be made to give effect to any increase or decrease in the number of issued Shares resulting from a subdivision or consolidation of Shares, whether through recapitalization, stock split, reverse stock split, spin‑off, spin‑out or other distribution of assets to shareholders, stock distributions or combinations of Shares, payment of stock dividends, other increase or decrease in the number of such Shares outstanding effected without receipt of consideration by the Company, or any other occurrence for which the Committee determines an adjustment is appropriate.
|
(b)
|
In the event of any merger, consolidation or reorganization of the Company with any other corporation or corporations, or an acquisition by the Company of the stock or assets of any other corporation or corporations, there shall be substituted on an equitable basis, as determined by the Committee in its sole discretion, for each Share then subject to the Plan, and for each Share then subject to an Award granted under the Plan, the number and kind of Shares of stock, other securities, cash or other property to which the holders of Shares of the Company are entitled pursuant to such transaction.
|
(c)
|
Without limiting the generality of the foregoing provisions of this paragraph, any such adjustment shall be deemed to have prevented any dilution or enlargement of a Participant’s rights, if such Participant receives in any such adjustment, rights that are substantially similar (after taking into account the fact that the Participant has not paid the applicable option price) to the rights the Participant would have received had he exercised his outstanding Award and become a shareholder of the Company immediately prior to the event giving rise to such adjustment. Adjustments under this paragraph shall be made by the Committee, whose decision as to the amount and timing of any such adjustment shall be conclusive and binding on all persons.
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(a)
|
Employees
. Incentive Stock Options may be granted only to Employees of the Company or a Subsidiary and not to Employees of any Affiliate unless such entity is classified as a “disregarded entity” of the Company or the applicable Subsidiary under the Code. Incentive Stock Options may not be granted to Nonemployee Directors.
|
(b)
|
Exercise Limitations
. The Committee, in its sole discretion, may provide in each Award Agreement the period or periods of time within which the Option may be exercised by the optionee, in whole or in part, provided that the Option period shall not end later than ten years after the date of the grant of the Option. The aggregate Fair Market Value (determined with respect to each Incentive Stock Option at the time of grant) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by an individual during any calendar year (under all incentive stock option plans of the Company and its Subsidiaries) shall not exceed $100,000. If the aggregate Fair Market Value (determined at the time of grant) of the Shares subject to an Option, which first becomes exercisable in any calendar year, exceeds this limitation, so much of the Option that does not exceed the applicable dollar limit shall be an Incentive Stock Option and the remainder shall be a Nonqualified Stock Option; but in all other respects, the original Award Agreement shall remain in full force and effect. Notwithstanding anything herein to the contrary, if an Incentive Stock Option is granted to an individual who owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or of its parent or subsidiary corporations, within the meaning of Code Section 422(b)(6), (i) the purchase price of each Share subject to the Incentive Stock Option shall be not less than one hundred ten percent (110%) of the Fair Market Value of the Share on the date the Incentive Stock Option is granted, and (ii) the Incentive Stock Option shall expire, and all rights to purchase Shares thereunder shall cease, no later than the fifth anniversary of the date the Incentive Stock Option was granted.
|
(c)
|
Rights Upon Termination of Service
. The rules under Section 6.6 of this Plan generally shall apply when an optionee holding an ISO terminates Service. Notwithstanding the foregoing, in accordance with Code Section 422, if an Incentive Stock Option is exercised more than ninety days after termination of Service, that portion of the Option exercised after such date shall automatically be a Nonqualified Stock Option, but, in all other respects, the original Award Agreement shall remain in full force and effect.
|
(a)
|
Granting of Options
. Subject to the terms and provisions of the Plan, the Board may grant Nonqualified Stock Options to purchase shares to Nonemployee Directors.
|
(b)
|
Terms of Options
. The Board, in its sole discretion, shall determine the number of shares subject to each Option granted to a Nonemployee Director.
|
(c)
|
Option Agreement
. Each Award granted pursuant to this subsection 9 shall be evidenced by a written Award Agreement which shall be executed by the Participant and the Company.
|
(d)
|
Exercise Price
. The Grant Price for the Shares subject to each Option granted pursuant to this subsection shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the day of grant.
|
(e)
|
Exercisability
. Each Option granted pursuant to this Section 6.8 shall become exercisable in full one year after the date the Option is granted. If a Nonemployee Director incurs a termination of Service for a reason other than Retirement, death or Disability, his or her Options which are not exercisable on the date of such termination of service shall never become exercisable. If the termination of Service is on account of Retirement, death or Disability, the Option shall become exercisable in full on the date of the termination of Service.
|
(f)
|
Expiration of Options
. Each Option shall terminate upon the first to occur of the following events:
|
(1)
|
The expiration of ten (10) years from the date of grant; or
|
(2)
|
The expiration of three (3) months from the date of the Participant’s termination of Service for a reason other than death, Disability or Retirement; or
|
(3)
|
The expiration of one (1) year from the date of the Participant’s Termination of Service by reason of Disability or Retirement.
|
(g)
|
Death of Director
. Notwithstanding subsection (e), if a Nonemployee Director dies prior to the expiration of his or her options in accordance with subsection (e), his or her Options shall terminate one (1) year after the date of his or her death.
|
(h)
|
Special Rule for Retirement
. Notwithstanding the provisions of subsection (e), if the exercisability of an Option is accelerated under subsection (d) on account of the Participant’s Retirement, such Option shall terminate upon the first to occur of: (a) the expiration of ten (10) years from the date the Option was granted; or (b) the expiration of one year from the date of the Participant’s death.
|
(i)
|
Not Incentive Stock Options
. Options granted pursuant to this Section 9 shall not be designated as Incentive Stock Options.
|
(j)
|
Other Terms
. All provisions of the Plan not inconsistent with this Section 6.8, shall apply to Options granted to Nonemployee Directors.
|
(k)
|
Elections by Nonemployee Directors
. Pursuant to such procedures as the Board (in its discretion) may adopt from time to time, each Nonemployee Director may elect to forego receipt of all or a portion of fees for service as a Director otherwise due to the Nonemployee Director in exchange for Shares. The number of Shares received by any Nonemployee Director shall equal the amount of foregone compensation divided by the Fair Market Value of a Share on the date that the compensation otherwise would have been paid to the Nonemployee Director, rounded up to the nearest whole number of Shares. The procedures adopted by the Board for elections under this subsection shall be designed to ensure that any such election by a Nonemployee Director will not disqualify him or her as a “nonemployee director” under Rule 16b‑3.
|
(a)
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General
. The Committee may grant Awards that are designed to qualify as 162(m) Awards and Awards that are not 162(m) Awards. In the case of Awards granted to Covered Officers that are intended to be 162(m) Awards, the Committee shall make in writing all determinations necessary to establish the terms of such 162(m) Awards within 90 days of the beginning of the applicable performance period (or such other time period required under Code Section 162(m)), including, without limitation, the designation of the Covered Officers to whom such 162(m) Awards are made, the Performance Measures applicable to the Awards and the Performance Targets that relate to such Performance Measures, and the dollar amounts or number of Shares payable upon achieving the applicable Performance Targets. To the extent required by Code Section 162(m), the provisions of such 162(m) Awards must state, in terms of an objective formula or standard, the method of computing the amount of compensation payable to the Covered Officer. The specific Performance Targets established by the Committee shall be made while the achievement of such Performance Targets remains substantially uncertain in accordance with Code Section 162(m). Subject to the terms of this Plan, after each applicable performance period has ended, the Committee shall determine the extent to which the Performance Targets have been attained or a degree of achievement between minimum and maximum levels with respect to 162(m) Awards in order to establish the level of payment to be made, if any, with respect to such 162(m) Awards, and shall certify the results in writing prior to payment of such 162(m) Awards.
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(b)
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Performance Targets and Performance Measures
. With respect to 162(m) Awards, at the time of grant of a 162(m) Award, the Committee shall establish in writing maximum and minimum Performance Targets to be achieved with respect to each Award during the performance period. The Participant shall be entitled to payment of the entire amount awarded if the maximum Performance Target is achieved during the performance period, but shall be entitled to payment with respect to a portion of the Award according to the level of achievement of Performance Targets, as specified by the Committee, for performance during the performance period that meets or exceeds the minimum Performance Target but fails to meet the maximum Performance Target. With respect to Cash-Based Awards, the Committee may assign payout percentages based upon various potential Performance Targets to be applied if the Performance Targets are met. The Committee has full discretion and authority to determine the Performance Target payouts for Cash-Based Award’s performance period.
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(c)
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Calculation and Adjustments
. The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occur during a performance period: (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) mergers, acquisitions or divestitures, (f) foreign exchange gains and losses, and (g) extraordinary, unusual, or other nonrecurring items as described in U.S. Generally Accepted Accounting Principles or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s consolidated report to the investment community or investor letters. To the extent such inclusions or exclusions affect Awards to Covered Officers, they shall be prescribed in a form that meets the requirements of Code Section 162(m) for deductibility except as otherwise determined by the Committee in its sole discretion. Awards that are intended to qualify as 162(m) Awards may not be adjusted upward from the amount otherwise payable to a Covered Officer under the pre-established Performance Target. The Committee shall retain the discretion to adjust such Awards downward, either on a formulaic or discretionary basis or a combination of the two, as the Committee determines. If applicable tax and securities laws change to permit Committee discretion to alter the governing Performance Measures or Performance Targets without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval.
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(a)
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Excess Parachute Payment
. In the event that any acceleration of vesting pursuant to an Award and any other payment or benefit received or to be received by a Participant would subject the Participant to any excise tax pursuant to Code Section 4999 due to the characterization of such acceleration of vesting, payment or benefit as an excess parachute payment under Code Section 280G, the Participant may elect, in his or her sole discretion, to reduce the amount of any acceleration of vesting called for under the Award in order to avoid such characterization. Such an election, however, may not change the time and form of any payment in a manner that would cause the Participant to incur additional taxes or penalties under Code Section 409A.
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(b)
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Determination by Independent Accountants
. To aid the Participant in making any election called for under part (a) above, no later than the date of the occurrence of any event that might reasonably be anticipated to result in an excess parachute payment to the Participant as described in part (a) above, the Company shall request a determination in writing by independent public accountants selected by the Company (the “Accountants”). As soon as practicable thereafter, the Accountants shall determine and report to the Company and the Participant the amount of such acceleration of vesting, payments and benefits which would produce the greatest after-tax benefit to the Participant. For the purposes of such determination, the Accountants may rely on reasonable, good faith interpretations concerning the application of Code Sections 280G and 4999. The Company and the Participant shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make their required determination. The Company shall bear all fees and expenses the Accountants may reasonably charge in connection with their services contemplated by this subpart (b).
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(a)
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Any Nonqualified Stock Option having an exercise price per share less than the Fair Market Value determined as of the date of grant of such Option or that permits the deferral of compensation other than the deferral of recognition of income until the exercise or transfer of the Option or the time the shares acquired pursuant to the exercise of the option first become substantially vested.
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(b)
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Any Award that either provides by its terms, or under which the Participant makes an election, for settlement of all or any portion of the Award either (i) on one or more dates following the end of the Short-Term Deferral Period (as defined below) or (ii) upon or after the occurrence of any event that will or may occur later than the end of the Short-Term Deferral Period.
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(a)
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General
. Except as otherwise provided below, Awards may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in the Code or Title 1 of the Employee Retirement Income Security Act or the rules thereunder. Except as otherwise provided in the Plan, all rights with respect to an Award granted to a Participant shall be available during his or her lifetime only to such Participant.
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(b)
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Nonqualified Stock Options and Stock Appreciation Rights
. No NQSO or SAR granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent and distribution or pursuant to a qualified domestic relations order as defined in the Code or Title 1 of the Employee Retirement Income Security Act or the rules thereunder. Notwithstanding the foregoing or anything in part (a) above, a Participant, at any time prior to his death, may assign all or any portion of the NQSO or SAR to (i) his spouse or lineal descendant, (ii) the trustee of a trust for the primary benefit of his spouse or lineal descendant, or (iii) a tax‑exempt organization as described in Code Section 501(c)(3). In such event the spouse, lineal descendant, trustee or tax‑exempt organization shall be entitled to all of the rights of the Participant with respect to the assigned portion of such NQSO or SAR, and such portion of the NQSO or SAR shall continue to be subject to all of the terms, conditions and restrictions applicable to the NQSO or SAR as set forth herein, and in the related Award Agreement, immediately prior to the effective date of the assignment. Any such assignment shall be permitted only if (i) the Participant does not receive any consideration therefore, and (ii) the assignment is expressly approved by the Committee or its delegate. Any such assignment shall be evidenced by an appropriate written document executed by the Participant, and a copy thereof shall be delivered to the Committee or its delegate on or prior to the effective date of the assignment.
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(c)
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Incentive Stock Options
. Notwithstanding anything in part (a) and (b) above, no ISO may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or the laws of descent or distribution.
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(d)
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Nonemployee Directors
. Notwithstanding anything in parts (a), (b), or (c) to the contrary, a Nonemployee Director at any time prior to his or her death, may assign all or any portion of an Award granted to him or her under the Plan to (i) his or her spouse or lineal descendant, (ii) the trustee of a trust for the primary benefit of his or her spouse or lineal descendant or (iii) a tax‑exempt organization as described in Code Section 501(c)(3). In such event, the spouse, lineal descendant, trustee, or tax‑exempt organization shall be entitled to all of the rights of the Participant with respect to the assigned portion of such Award, and such portion of the Award shall continue to be subject to all of the terms, conditions and restrictions applicable to the Award as set forth herein, and in the related Award Agreement, immediately prior to the effective date of the assignment. Any such assignment shall be permitted only if (i) the Participant does not receive any consideration therefore, and (ii) the assignment is expressly approved by the Committee or its delegate. Any such assignment shall be evidenced by an appropriate written document executed by the Participant, and a copy thereof shall be delivered to the Committee or its delegate on or prior to the effective date of the assignment.
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If to the Company:
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Navidea Biopharmaceuticals, Inc..
425 Metro Place North, Suite 300
Dublin, Ohio 43017-1367
Facsimile No.: (614) 793-7520
Attention: Ricardo J. Gonzalez
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with copies (which copies
shall not constitute notice
to the Company) to:
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Dickinson Wright PLLC
150 E. Gay Street
Suite 2400
Columbus OH 43215
Attention: William J. Kelly
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If to the Purchasers:
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c/o Platinum-Montaur Life Sciences, LLC
250 West 55th Street
14th Floor, New York
New York 10019
Attention: David Steinberg
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with copies (which copies
shall not constitute notice
to the Purchasers) to:
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Burak Anderson & Melloni, PLC
30 Main Street, PO Box 787
Burlington, Vermont 05402-0787
Facsimile No.: (802) 862-8176
Attention: Shane W. McCormack
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NAVIDEA BIOPHARMACEUTICALS, INC.
By:
/s/ Brent L. Larson
Name: Brent L. Larson
Title: Executive Vice-President and CFO
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PURCHASERS:
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PLATINUM-MONTAUR LIFE SCIENCES, LLC
By:
/s/ D. Steinberg
Name: David Steinberg
Title: Authorized Signatory
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May 11, 2015
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/s/ Ricardo J. Gonzalez
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Ricardo J. Gonzalez
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Chief Executive Officer
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May 11, 2015
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/s/ Brent L. Larson
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Brent L. Larson
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Executive Vice President and Chief Financial Officer
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May 11, 2015
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/s/ Ricardo J. Gonzalez
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Ricardo J. Gonzalez
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Chief Executive Officer
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May 11, 2015
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/s/ Brent L. Larson
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Brent L. Larson
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Executive Vice President and Chief Financial Officer
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