OPKO Health, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Acquisitions, Investments, and Licenses (Tables)

Acquisitions, Investments, and Licenses (Tables)

6 Months Ended

Jun. 30, 2014

The following table includes the pro forma results for the three and six months ended June 30, 2014 of the combined companies as though the acquisition of OPKO Biologics and OPKO Renal had been completed as of the beginning of the period presented.



	For the three months ended June 30,		For the six months ended June 30,
(In thousands)	2014	2013	2014	2013
Revenues	23,545	23,821	45,818	55,197
Net loss	(26,077)	(14,238)	(71,163)	(51,809)
Net loss attributable to common shareholders	(25,480)	(13,279)	(70,026)	(50,303)
Basic and diluted loss per share	$(0.06)	$(0.03)	$(0.17)	$(0.13)

Maximum exposure of unconsolidated investments

The following table reflects our maximum exposure, accounting method, ownership interest and underlying equity in net assets of each of our unconsolidated investments as of June 30, 2014:



(Dollars in thousands, except per share prices) Investee name	Year invested	Accounting method	Ownership at June 30, 2014		Investment			Underlying equity in net assets	Closing share price at June 30, 2014 for investments available for sale
Neovasc	2011	Equity method	6	%	3,798			1,454
Senesco	2014	Equity method	4	%	750			366
RXi	2013	Equity method	15	%	15,000			1,918
Pharmsynthez	2013	Equity method	17	%	11,300			6,405
Zebra	2013	VIE, equity method	19	%	2,000			840
Cocrystal	2009	Equity method	16	%	5,476			993
Neovasc options	2011	Investment available for sale	N/A		925					$	6.25
ChromaDex	2012	Investment available for sale	1	%	1,320					$	1.30
ARNO	2013	Investment available for sale	5	%	2,000					$	1.78
Cocrystal 10 yr warrants	2014	Investment available for sale	N/A		500
Senesco warrants	2014	Investment available for sale	N/A		228
Plus unrealized gains on investments, options and warrants, net					8,827
Less accumulated losses in investees					(18,696		)
Total carrying value of equity method investees and investments, available for sale					$	33,428

Cytochroma and PROLOR

Business Acquisition [Line Items]

Estimated fair value of the net assets acquired and liabilities assumed in the acquisition of at the date of acquisition

The following table summarizes the purchase price allocation and the fair value of the net assets acquired and liabilities assumed in the acquisitions of OPKO Renal and OPKO Biologics at the dates of acquisition. The purchase price allocation for OPKO Biologics is subject to change while contingencies that existed on the acquisition date are resolved:



(In thousands)	OPKO Renal			OPKO Biologics
Current assets ⁽¹⁾	$	1,224		$	21,500
Intangible assets:
In-process research and development	191,530			590,200
Patents	210			—
Total intangible assets	191,740			590,200
Goodwill	2,411			139,784
Property, plant and equipment	306			1,057
Other assets	—			371
Accounts payable and accrued expenses	(1,069		)	(9,866		)
Deferred tax liability	—			(156,403		)
Total purchase price	$	194,612		$	586,643

(1)Current assets include cash of $0.4 million and $20.5 million related to the OPKO Renal and OPKO Biologics acquisitions, respectively.

SciVac

Business Acquisition [Line Items]

Summary of consolidated assets and non-recourse liabilities related to SciVac

The following table represents the consolidated assets and non-recourse liabilities related to SciVac as of June 30, 2014 and December 31, 2013. These assets are owned by, and these liabilities are obligations of, SciVac, not us.



(In thousands)	June 30, 2014		December 31, 2013
Assets
Current assets:
Cash and cash equivalents	$	433	$	2
Accounts receivable, net	516		283
Inventories, net	1,700		1,696
Prepaid expenses and other current assets	529		218
Total current assets	3,178		2,199
Property, plant and equipment, net	1,412		1,374
Intangible assets, net	1,055		1,111
Goodwill	1,757		1,821
Other assets	263		261
Total assets	$	7,665	6,766
Liabilities
Current liabilities:
Accounts payable	$	1,007	$	1,136
Accrued expenses	8,298		6,498
Notes payable	3,903		1,537
Total current liabilities	13,208		9,171
Other long-term liabilities	261		1,240
Total liabilities	$	13,469	$	10,411

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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