2017 Q2 Form 10-Q Financial Statement

#000143774917014570 Filed on August 14, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $188.6K $134.9K
YoY Change 39.85% -95.34%
Cost Of Revenue $277.4K $175.8K
YoY Change 57.76% -92.62%
Gross Profit -$88.77K -$40.96K
YoY Change 116.75% -107.98%
Gross Profit Margin -47.07% -30.37%
Selling, General & Admin $1.433M $840.1K
YoY Change 70.6% -80.7%
% of Gross Profit
Research & Development $309.5K $224.4K
YoY Change 37.94% -62.47%
% of Gross Profit
Depreciation & Amortization $81.00K $209.0K
YoY Change -61.24% 16.11%
% of Gross Profit
Operating Expenses $3.822M $1.065M
YoY Change 259.05% -78.5%
Operating Profit -$3.911M -$1.105M
YoY Change 253.77% -75.09%
Interest Expense -$1.259K -$109.00
YoY Change 1055.05% -99.99%
% of Operating Profit
Other Income/Expense, Net -$1.240K -$189.4K
YoY Change -99.35% -105.3%
Pretax Income -$3.910M -$1.295M
YoY Change 201.97% 49.63%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$3.912M -$1.295M
YoY Change 202.13% 48.79%
Net Earnings / Revenue -2074.26% -960.16%
Basic Earnings Per Share -$0.39 $0.17
Diluted Earnings Per Share -$0.39 -$0.13
COMMON SHARES
Basic Shares Outstanding 9.927M 9.794M
Diluted Shares Outstanding 9.927M 9.794M

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $330.0K $6.070M
YoY Change -94.56% -11.9%
Cash & Equivalents $331.0K $10.36M
Short-Term Investments
Other Short-Term Assets $330.0K $750.0K
YoY Change -56.0% -75.33%
Inventory $89.18K $56.35K
Prepaid Expenses
Receivables $150.0K $1.230M
Other Receivables $0.00 $0.00
Total Short-Term Assets $900.0K $12.35M
YoY Change -92.71% -3.69%
LONG-TERM ASSETS
Property, Plant & Equipment $307.1K $865.7K
YoY Change -64.53% -0.95%
Goodwill $0.00 $2.100M
YoY Change -100.0% 86.08%
Intangibles $7.414M $8.400M
YoY Change -11.73% -70.62%
Long-Term Investments
YoY Change
Other Assets $218.3K $340.0K
YoY Change -35.79% -88.83%
Total Long-Term Assets $7.940M $11.70M
YoY Change -32.13% -65.23%
TOTAL ASSETS
Total Short-Term Assets $900.0K $12.35M
Total Long-Term Assets $7.940M $11.70M
Total Assets $8.840M $24.05M
YoY Change -63.24% -48.24%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $645.0K $2.877M
YoY Change -77.58% 65.53%
Accrued Expenses $1.205M $3.112M
YoY Change -61.28% -45.6%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00
YoY Change
Total Short-Term Liabilities $1.850M $5.989M
YoY Change -69.11% -23.81%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $80.34K $171.6K
YoY Change -53.18% -65.49%
Total Long-Term Liabilities $80.34K $171.6K
YoY Change -53.18% -65.49%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.850M $5.989M
Total Long-Term Liabilities $80.34K $171.6K
Total Liabilities $1.930M $2.789M
YoY Change -30.79% -89.57%
SHAREHOLDERS EQUITY
Retained Earnings -$11.30M $0.00
YoY Change -100.0%
Common Stock $993.00 $993.00
YoY Change 0.0% -92.04%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $6.909M $17.89M
YoY Change
Total Liabilities & Shareholders Equity $8.840M $24.05M
YoY Change -63.24% -48.24%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income -$3.912M -$1.295M
YoY Change 202.13% 48.79%
Depreciation, Depletion And Amortization $81.00K $209.0K
YoY Change -61.24% 16.11%
Cash From Operating Activities -$1.010M -$4.830M
YoY Change -79.09% -2.62%
INVESTING ACTIVITIES
Capital Expenditures $0.00
YoY Change
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities $0.00 $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 0.000 10.20M
YoY Change -100.0%
NET CHANGE
Cash From Operating Activities -1.010M -4.830M
Cash From Investing Activities 0.000 0.000
Cash From Financing Activities 0.000 10.20M
Net Change In Cash -1.010M 5.370M
YoY Change -118.81% -208.92%
FREE CASH FLOW
Cash From Operating Activities -$1.010M -$4.830M
Capital Expenditures $0.00
Free Cash Flow -$4.830M
YoY Change -2.62%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
CY2017Q2 nuot Authorized Shares Common And Preferred
AuthorizedSharesCommonAndPreferred
32500000
CY2016Q2 nuot Debt Free Net Cash Flow Growth Rate
DebtFreeNetCashFlowGrowthRate
0.034
CY2016Q4 nuot Debt Instrument Number Of Periodic Payments
DebtInstrumentNumberOfPeriodicPayments
3
nuot Debt Issuance Costs On Short Term Debtor In Posession Note Payable
DebtIssuanceCostsOnShortTermDebtorInPosessionNotePayable
CY2016Q2 nuot Debt Issuance Costs On Short Term Debtor In Posession Note Payable
DebtIssuanceCostsOnShortTermDebtorInPosessionNotePayable
CY2016Q2 nuot Debtor Reorganization Items Gain Loss On Reorganization Adjustments Net
DebtorReorganizationItemsGainLossOnReorganizationAdjustmentsNet
CY2017Q2 nuot Direct Operating Cost Royalty Expense Recovery
DirectOperatingCostRoyaltyExpenseRecovery
CY2016Q2 nuot Direct Operating Cost Royalty Expense Recovery
DirectOperatingCostRoyaltyExpenseRecovery
nuot Direct Operating Cost Royalty Expense Recovery
DirectOperatingCostRoyaltyExpenseRecovery
CY2016Q2 nuot Fresh Start Accounting Percent Of Voting Share Of Emerging Entity
FreshStartAccountingPercentOfVotingShareOfEmergingEntity
0.5
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FreshStartAdjustmentIncreaseDecreaseCommonAndPreferredStockAtPar
-753
CY2016Q2 nuot Freshstart Adjustment Increase Decrease Common Stock Issuable
FreshstartAdjustmentIncreaseDecreaseCommonStockIssuable
-392950
CY2016Q2 nuot Freshstart Adjustment Increase Decrease Intangible Assets Including Goodwill
FreshstartAdjustmentIncreaseDecreaseIntangibleAssetsIncludingGoodwill
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nuot Noncash Gain Loss On Reorganisation
NoncashGainLossOnReorganisation
CY2016Q2 nuot Noncash Gain Loss On Reorganisation
NoncashGainLossOnReorganisation
CY2016Q2 nuot Payment For Offering Cost
PaymentForOfferingCost
100000
CY2016Q2 nuot Payments For Reorganization Items
PaymentsForReorganizationItems
1054426
CY2017Q2 nuot Percentage Of Revenues Generated Outside Of United States
PercentageOfRevenuesGeneratedOutsideOfUnitedStates
0.22
CY2016Q2 nuot Percentage Of Revenues Generated Outside Of United States
PercentageOfRevenuesGeneratedOutsideOfUnitedStates
0.1
nuot Percentage Of Revenues Generated Outside Of United States
PercentageOfRevenuesGeneratedOutsideOfUnitedStates
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nuot Percentage Of Revenues Generated Outside Of United States
PercentageOfRevenuesGeneratedOutsideOfUnitedStates
0.11
CY2016Q2 nuot Post Confirmation Tangible Assets
PostConfirmationTangibleAssets
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CY2016Q2 nuot Post Confirmation Tangible Assets
PostConfirmationTangibleAssets
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CY2016Q2 nuot Postconfirmation Common Stock Issuable
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CY2016Q2 nuot Postconfirmation Conditionally Redeemable Common Stock
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CY2016Q2 nuot Preconfirmation Common Stock Issuable
PreconfirmationCommonStockIssuable
392950
CY2016Q2 nuot Preconfirmation Conditionally Redeemable Common Stock
PreconfirmationConditionallyRedeemableCommonStock
500000
CY2016Q2 nuot Preconfirmation Deferred Costs And Other Assets Noncurrent
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355741
nuot Preferred Stock Issued
PreferredStockIssued
CY2016Q2 nuot Preferred Stock Issued
PreferredStockIssued
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nuot Proceeds From Issuance Of Commonstock And Preferred Stock Net Of Issuance Costs
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CY2016Q2 nuot Proceeds From Issuance Of Commonstock And Preferred Stock Net Of Issuance Costs
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CY2016Q2 nuot Reorganization Adjustment Increase Decrease Additional Paidin Capital
ReorganizationAdjustmentIncreaseDecreaseAdditionalPaidinCapital
-126011808
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Assets
ReorganizationAdjustmentIncreaseDecreaseAssets
-2422510
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Common Stock
ReorganizationAdjustmentIncreaseDecreaseCommonStock
-12477
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Conditionally Redeemable Common Stock
ReorganizationAdjustmentIncreaseDecreaseConditionallyRedeemableCommonStock
-500000
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Current Assets
ReorganizationAdjustmentIncreaseDecreaseCurrentAssets
-16053
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Deferred Revenue Current Portion
ReorganizationAdjustmentIncreaseDecreaseDeferredRevenueCurrentPortion
-899920
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Elimination Of Various Payables And Accruals
ReorganizationAdjustmentIncreaseDecreaseEliminationOfVariousPayablesAndAccruals
-773756
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Equity Excluding Retained Earnings
ReorganizationAdjustmentIncreaseDecreaseEquityExcludingRetainedEarnings
-126917235
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Intangible Assets Net Excluding Goodwill
ReorganizationAdjustmentIncreaseDecreaseIntangibleAssetsNetExcludingGoodwill
-2406457
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Liabilities
ReorganizationAdjustmentIncreaseDecreaseLiabilities
-45739797
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Liabilities And Stockholders Equity
ReorganizationAdjustmentIncreaseDecreaseLiabilitiesAndStockholdersEquity
-2422510
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Liabilities Subject To Compromise
ReorganizationAdjustmentIncreaseDecreaseLiabilitiesSubjectToCompromise
-39089877
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Prepaid And Other Current Assets
ReorganizationAdjustmentIncreaseDecreasePrepaidAndOtherCurrentAssets
-16053
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Retained Earnings Deficit
ReorganizationAdjustmentIncreaseDecreaseRetainedEarningsDeficit
170234522
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Stockholders Equity
ReorganizationAdjustmentIncreaseDecreaseStockholdersEquity
43817287
CY2016Q2 nuot Reorganization Adjustment Increase Decrease Termination Of Debt Agreements And Accrued Interest
ReorganizationAdjustmentIncreaseDecreaseTerminationOfDebtAgreementsAndAccruedInterest
-44066121
CY2017Q2 nuot Time Deposits Annual Interest Rate
TimeDepositsAnnualInterestRate
0.001
CY2017Q2 nuot Time Deposits Interest Rate Renewal Term
TimeDepositsInterestRateRenewalTerm
P240D
CY2016Q2 nuot Warrant Expiration Date
WarrantExpirationDate
2016-11-05
CY2017Q2 us-gaap Accounts And Other Receivables Net Current
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153507
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409000
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AllowanceForDoubtfulAccountsReceivablePeriodIncreaseDecrease
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
400000
CY2017Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
1228750
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6180000
CY2016Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
6180000
CY2017Q2 us-gaap Assets
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Assets
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AssetsCurrent
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AssetsCurrent
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CY2017Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
331034
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CashAndCashEquivalentsAtCarryingValue
2620023
CY2016Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
10358209
CY2016Q2 us-gaap Cash And Cash Equivalents At Carrying Value
CashAndCashEquivalentsAtCarryingValue
6066991
us-gaap Cash And Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
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-2288989
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CashAndCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-4291218
CY2017Q2 us-gaap Cash Fdic Insured Amount
CashFDICInsuredAmount
250000
CY2017Q2 us-gaap Cash Uninsured Amount
CashUninsuredAmount
81000
CY2016Q2 us-gaap Class Of Warrant Or Righst Date From Which Warrants Or Rights Exercisable
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2021-05-05
CY2017Q2 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
CY2016Q4 us-gaap Commitments And Contingencies
CommitmentsAndContingencies
CY2017Q2 us-gaap Common Stock Par Or Stated Value Per Share
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0.0001
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CY2016Q2 us-gaap Common Stock Par Or Stated Value Per Share
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CY2017Q2 us-gaap Common Stock Shares Issued
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9927112
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CommonStockValue
993
CY2016Q4 us-gaap Common Stock Value
CommonStockValue
993
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt 15pt 0pt 18pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; text-decoration: underline;">Credit Concentration</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">We generate accounts receivable from the sale of our products. In addition, other receivables consist primarily of the receivable due from our contract manufacturer for the cost of raw materials required to manufacture the Angel products that are purchased by the Company and immediately resold, at cost, to the contract manufacturer and a refund due for Delaware franchise taxes. Specific customer<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;or other receivables balances in excess of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of total receivables at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 31, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 31, 2016 </div>were as follows:</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div> <table style="; text-indent: 0px; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-right: 15%; margin-left: 54pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td style="width: 58%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 18pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt 0pt 0pt 18pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 18pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt 0pt 0pt 18pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="width: 58%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 18pt; border-bottom: thin solid rgb(0, 0, 0); padding: 0px;" nowrap="nowrap"> <div style=" margin: 0pt 0pt 0pt 18pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">June 30</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">, 2017</div></div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 18pt; border-bottom: thin solid rgb(0, 0, 0); padding: 0px;" nowrap="nowrap"> <div style=" margin: 0pt 0pt 0pt 18pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">December 31, 2016</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 58%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Other receivable A</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 18pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">72%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 18pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">58%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 58%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer B</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 18pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 18pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">Revenue from significant customers exceeding <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of total revenues for the periods presented was as follows:</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div> <table style="; text-indent: 0px; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 36pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Predecessor</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); padding: 0px;" nowrap="nowrap"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Three months ended</div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">June 30, 2017</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); padding: 0px;" nowrap="nowrap"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Period from May 5, 2016</div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">through June 30, 2016</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); padding: 0px;" nowrap="nowrap"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Period from April 1, 2016</div></div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">through May 4, 2016</div></div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer A</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">-</div></div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">66%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer B</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">-</div></div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer C</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">22%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer D</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">-</div></div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer E</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer F</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">13%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" margin: 0pt;">&nbsp;</div> <div> <table style="; text-indent: 0px; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-right: 10%; margin-left: 36pt;" cellspacing="0" cellpadding="0" border="0"> <tr style="vertical-align: bottom;"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Successor</div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom-color: rgb(0, 0, 0); border-bottom-width: 1px; border-bottom-style: solid;"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Predecessor</div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom;"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); padding: 0px;" nowrap="nowrap"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Six months ended</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">June 30, 2017</div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); padding: 0px;" nowrap="nowrap"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Period from May 5, 2016</div></div></div> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">through June 30, 2016</div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> <td colspan="2" style="width: 1%; text-align: center; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); padding: 0px;" nowrap="nowrap"> <div style=" margin: 0pt; text-align: center; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"><div style="display: inline; font-weight: bold;">Period from January 1, 2016<br /> through May 4, 2016</div></div></div> </td> <td style="width: 1%; padding-bottom: 1px; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer A</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">-</div></div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">78%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer B</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">&nbsp;</div></td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">-</div></div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer C</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="width: 39%; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt;"> <div style=" font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Customer D</div> </td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 16%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16%</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;">&nbsp;</td> <td style="width: 18%; text-align: center; font-family: &quot;Times New Roman&quot;,Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td style="width: 1%; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin-left: 0pt;" nowrap="nowrap">&nbsp;</td> </tr> </table> </div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">Historically, we used single suppliers for several components of the Aurix product line. We outsource the manufacturing of various products to contract manufacturers. While we believe these manufacturers demonstrate competency, reliability and stability, there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance that <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> or more of them will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> experience an interruption or inability to provide us with the products needed to satisfy customer demand. Additionally, while most of the components of Aurix are generally readily available on the open market, a reagent, bovine thrombin, is available exclusively through Pfizer, with whom we have an established vendor relationship.</div></div></div></div></div></div></div></div></div>
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<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" margin: 0pt 15pt 0pt 18pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;">Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&#x2013; Description of Business and Bankruptcy Proceedings</div></div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 51pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; text-decoration: underline;">Description of Business</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">Nuo Therapeutics, Inc. (&#x201c;Nuo Therapeutics,&#x201d; the &#x201c;Company,&#x201d; &#x201c;we,&#x201d; &#x201c;us,&#x201d; or &#x201c;our&#x201d;) is a biomedical company marketing its products primarily within the U.S. We commercialize innovative cell-based technologies that harness the regenerative capacity of the human body to trigger natural healing. The use of autologous (from self) biological therapies for tissue repair and regeneration is part of a transformative clinical strategy designed to improve long term recovery in complex chronic conditions with significant unmet medical needs. Growth opportunities for the Aurix System in the United States in the near to intermediate term include the treatment of chronic wounds with Aurix in: (i) the Medicare population under a National Coverage Determination (&#x201c;NCD&#x201d;), when registry data is collected under the Coverage with Evidence Development (&#x201c;CED&#x201d;)<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;program of the Centers for Medicare &amp; Medicaid Services (&#x201c;CMS&#x201d;); and (ii) the Veterans Affairs (&#x201c;VA&#x201d;) healthcare system and other federal accounts settings. </div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> our commercial offering consists solely of the Aurix point of care technology for the safe and efficient separation of autologous blood to produce a platelet based therapy for the chronic wound care market. Prior to the Effective Date (as defined below), we had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> distinct platelet rich plasma (&#x201c;PRP&#x201d;) devices: the Aurix System for wound care, and the Angel&reg; concentrated Platelet Rich Plasma (&#x201c;cPRP&#x201d;) System for orthopedics markets. Prior to the Effective Date, Arthrex, Inc. (&#x201c;Arthrex&#x201d;) was our exclusive distributor for Angel. Pursuant to the Plan of Reorganization (as defined below), on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 5, 2016, </div>the Company assigned its rights, title and interest in and to its existing license agreement with Arthrex to Deerfield (as defined below), as well as rights to collect royalty payments thereunder.</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; text-decoration: underline;">Bankruptcy Proceedings</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 26, 2016, </div>the Company filed a voluntary petition in the United States Bankruptcy Court for the District of Delaware (the &#x201c;Bankruptcy Court&#x201d;) seeking relief under Chapter <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> of Title <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> of the United States Code (the &#x201c;Bankruptcy Code&#x201d;), which is administered under the caption &#x201c;In re: Nuo Therapeutics, Inc.&#x201d;, Case <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">16</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10192</div> (MFW) (the &#x201c;Chapter <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> Case&#x201d;).</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> April 25, 2016</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;(the &#x201c;Confirmation Date&#x201d;), the Bankruptcy Court entered an Order Granting Final Approval of Disclosure Statement and Confirming Debtor&#x2019;s Plan of Reorganization (the &#x201c;Confirmation Order&#x201d;), which confirmed the Modified First Amended Plan of Reorganization of the Debtor under Chapter <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> of the Bankruptcy Code (as confirmed, the &#x201c;Plan,&#x201d; or &#x201c;Plan of Reorganization&#x201d;).</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">Scenario A<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;contemplated by the Plan of Reorganization&nbsp;became effective on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 5, 2016 (</div>the &#x201c;Effective Date&#x201d;). Pursuant to the Plan, as of the Effective Date: (i) all equity interests of the Company, including but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> limited to all shares of the Company&#x2019;s common stock, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.0001</div> par value per share (including its redeemable common stock) (the &#x201c;Old Common Stock&#x201d;), warrants, and options that were issuable or issued and outstanding immediately prior to the Effective Date, were cancelled; (ii) the Company&#x2019;s certificate of incorporation that was in effect immediately prior to the Effective Date was amended and restated in its entirety; (iii) the Company&#x2019;s by-laws that were in effect immediately prior to the Effective Date were amended and restated in their entirety; and (iv) the Company issued New Common Stock, Warrants and Series A Preferred Stock (all as defined below).</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">Upon emergence from bankruptcy on the Effective Date, the Company applied fresh start accounting, resulting in the Company becoming a new entity for financial reporting purposes (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&#x2013; <div style="display: inline; font-style: italic;">Fresh Start Accounting</div>). As a result of the application of fresh start accounting, the Company reflected the disposition of its pre-petition debt and changes in its equity structure effected under the Confirmation Order in its balance sheet as of the Effective Date. Accordingly, all financial statements prior to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 5, 2016 </div>are referred to as those of the &quot;Predecessor Company&quot;, as they reflect the periods prior to application of fresh start accounting. The financial statements for periods subsequent to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 4, 2016, </div>are referred to as those of the &quot;Successor Company.&quot; Under fresh start accounting, the Company's assets and liabilities were adjusted to their fair values, and a reorganization value for the entity was determined by the Company based upon the estimated fair value of the enterprise before considering values allocated to debt to be settled in the reorganization. The fresh start adjustments are material and affect the Company&#x2019;s results of operations from and after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 5, 2016. </div>As a result of the application of fresh start accounting and the effects of the implementation of the Plan of Reorganization, the financial statements on or after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 5, 2016 </div>are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> comparable to the financial statements prior to that date.</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; text-decoration: underline;">Common Stock</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Recapitalization</div></div> <div style=" margin: 0pt 7.5pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">In accordance with the Plan of Reorganization, as of the Effective Date, the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,500,000</div> shares (the &#x201c;Recapitalization Shares&#x201d;) of new common stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.0001</div> per share (the &#x201c;New Common Stock&#x201d;), to certain accredited investors (the &#x201c;Recapitalization Investors&#x201d;) for gross cash proceeds of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,300,000</div> and net cash to the Company of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$7,052,500</div> (the &#x201c;Recapitalization Financing&#x201d;).<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp; <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">200,000</div> of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,500,000</div> shares of New Common Stock were issued in partial payment of an advisory fee.&nbsp; The net cash amount excludes the effect of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$100,000</div> in offering expenses paid from the proceeds of the DIP Financing (as defined below in Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div> - <div style="display: inline; font-style: italic;">Debt</div>), which was converted into Series A Preferred Stock as of the Effective Date, as described below under <div style="display: inline; font-style: italic;">&#x201c;Series A Preferred Stock</div>.&#x201d; As part of the Recapitalization Financing, the Company also issued warrants to purchase <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6,180,000</div> shares of New Common Stock to certain of the Recapitalization Investors (the &#x201c;Warrants&#x201d;). The Warrants terminate on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">May 5, 2021</div>, </div>and are exercisable at any time on or after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">November 5, 2016</div> </div>at exercise prices ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.50</div> per share to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.00</div> per share. &nbsp;The number of shares of New Common Stock underlying a Warrant and its exercise price are subject to customary adjustments upon subdivisions, combinations, payment of stock dividends, reclassifications, reorganizations and consolidations.&nbsp;A significant majority of the Recapitalization Investors executed backstop commitments to purchase up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,800,000</div> additional shares of New Common Stock for an aggregate purchase price of up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3,000,000</div> (collectively, the &#x201c;Backstop Commitment&#x201d;). The Company could <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> call the Backstop Commitment prior to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">June 30, 2017</div> (</div>see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> - <div style="display: inline; font-style: italic;">Subsequent Event</div><div style="display: inline; font-style: italic;">s</div> for additional details).</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">With respect to each Recapitalization Investor who executed a Backstop Commitment, the commitment would have terminated&nbsp;on the earlier of: (i) the date on which the Company received&nbsp;net proceeds (after deducting all costs, expenses and commissions) from the sale of New Common Stock in the aggregate amount of the Backstop Commitment; (ii) the date that all shares of Series A Preferred Stock (as defined below) had&nbsp;been redeemed by the Company; or (iii) the date that all shares of Series A Preferred Stock were&nbsp;<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> longer owned by entities affiliated with Deerfield Mgmt, L.P., Deerfield Management Company, L.P., Deerfield Special Situations Fund, L.P., and Deerfield Private Design Fund II, L.P.<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp; (&#x201c;Deerfield&#x201d;). We refer to this date as the &#x201c;Termination Date.&#x201d; Under the terms of the Backstop Commitment, the Company would have been&nbsp;obligated to pay to the committed Recapitalization Investors a commitment fee of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000</div> in the aggregate&nbsp;upon the Termination Date.</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">As of the Effective Date, the Company entered into a registration rights agreement (the &#x201c;Registration Rights Agreement&#x201d;) with the Recapitalization Investors.<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp; The Registration Rights Agreement provides certain resale registration rights to the Recapitalization Investors with respect to securities received in the Recapitalization Financing.&nbsp; Pursuant to the Registration Rights Agreement, the Company filed, and has to update periodically, a registration statement covering the resale of all shares of New Common Stock issued to the Recapitalization Investors on the Effective Date until such time as such shares have been sold or <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be sold without registration or restriction pursuant to Rule <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">144</div> under the Securities Act. </div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Issuance of New Common Stock to Holders of Old Common Stock</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">As of the Effective Date, the Company committed to the issuance of up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,000,000</div> shares of New Common Stock and subsequently issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,264,612</div> shares of New Common Stock (the &#x201c;Exchange Shares&#x201d;) to record holders of the Old Common Stock as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 28, 2016, </div>who executed and timely delivered the required release documents <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> later than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 5, 2016, </div>in accordance with the Confirmation Order and the Plan.<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp; The holders of Old Common Stock who executed and timely delivered the required release documents are referred to as the &#x201c;Releasing Holders.&#x201d;</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,264,612</div> Exchange Shares were issued as of the Effective Date to Releasing Holders who asserted ownership of a number of shares of Old Common Stock that matched the Company<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&#x2019;s records or could otherwise be confirmed at a rate of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> share of New Common Stock for every <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">41.8934</div> shares of Old Common Stock held by such holders as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 28, 2016.&nbsp; </div>In accordance with the Plan, if the calculation would otherwise have resulted in the issuance to any Releasing Holder of a number of shares of New Common Stock that is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> a whole number, then the number of shares actually issued to such Releasing Holder was determined by rounding down to the nearest number.</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">Issuance of Shares in Exchange for Administrative Claims</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 20, 2016, </div>the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">162,500</div> shares of New Common Stock (the &#x201c;Administrative Claim Shares&#x201d;) pursuant to the Order Granting Application of the Ad Hoc Equity Committee Pursuant to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11</div> U.S.C. &sect;&sect; <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">503</div>(b)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>)(D) and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">503</div>(b)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) for Allowance of Fees and Expenses Incurred in Making a Substantial Contribution, entered by the Bankruptcy Court on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 20, 2016.</div><div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;&nbsp; The Administrative Claim Shares were issued to holders of administrative claims under sections <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">503</div>(b)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>)(D) and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">503</div>(b)(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) of the Bankruptcy Code. Of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">162,500</div> shares, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100,000</div> shares were issued to outside counsel to the Ad Hoc Equity Committee of the Company&#x2019;s equity holders as compensation of all remaining allowed fees for legal services provided by such counsel.&nbsp; The remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">62,500</div> were issued to designees of the Ad Hoc Equity Committee who had granted loans in an aggregate amount of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$62,500</div> to the Ad Hoc Equity Committee in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 2015 </div>as repayment of such loans.</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;">&nbsp;</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; text-decoration: underline;">Series A Preferred Stock</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">On the Effective Date, the Company filed a Certificate of Designations of Series A Preferred Stock (the &#x201c;Certificate of Designations&#x201d;) with the Delaware Secretary of State, designating <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,038</div> shares of the Company<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&#x2019;s undesignated preferred stock, par value <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.0001</div> per share, as Series A Preferred Stock (the &#x201c;Series A Preferred Stock&#x201d;). On the Effective Date, the Company issued <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">29,038</div> shares of Series A Preferred Stock to Deerfield in accordance with the Plan pursuant to the exemption from the registration requirements of the Securities Act provided by Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1145</div> of the Bankruptcy Code. Deerfield did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div> receive any shares of New Common Stock or other equity interests in the Company.</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;&nbsp;&nbsp;</div></div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" margin: 0pt 7.5pt 0pt 18pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: justify;">The Series A Preferred Stock has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> stated maturity date, is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> convertible or redeemable, and carries a liquidation preference of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$29,038,000,</div> which is required to be paid to holders of such Series A Preferred Stock before any payments are made with respect to shares of New Common Stock (and other capital stock that is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> issued on parity or senior to the Series A Preferred Stock) upon a liquidation or change in control transaction.<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp; For so long as Series A Preferred Stock is outstanding, the holders of Series A Preferred Stock have the right to nominate and elect <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> member of the board of directors of the Company (the &#x201c;Board of Directors&#x201d;) and to have such director serve on a standing committee of the Board of Directors established to exercise powers of the Board of Directors in respect of decisions or actions relating to the Backstop Commitment.&nbsp;&nbsp; The holders of the Series A Preferred Stock nominated and elected <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> member of the Board of Directors to serve as the designee of the holders of Series A Preferred Stock. The Series A Preferred Stock has voting rights, voting with the New Common Stock as a single class, with each share of Series A Preferred Stock having the right to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div></div> votes, which currently represents approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> percent (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div>) of the voting rights of the capital stock of the Company.&nbsp; The holders of Series A Preferred Stock have the right to approve certain transactions and incurrences of debt. The Certificate of Designations limits the Company&#x2019;s ability to pay dividends on or purchase shares of its capital stock.</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; text-decoration: underline;">Assignment and Assumption Agreement; Transition Services Agreement</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">Pursuant to the Plan, on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 5, 2016, </div>the Company entered into an Assignment and Assumption Agreement with Deerfield SS, LLC (the &#x201c;Assignee&#x201d;), the designee of Deerfield, to assign to the Assignee the Company<div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;">&#x2019;s rights, title and interest in and to its existing license agreement with Arthrex, and to transfer and assign to the Assignee associated intellectual property owned by the Company and licensed thereunder, as well as rights to collect royalty payments thereunder. The assignment and transfer was effected in exchange for a reduction of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$15,000,000</div> in the amount of the allowed claim of Deerfield pursuant to the Plan. As a result of the assignment and transfer, the Aurix System currently represents the Company&#x2019;s only commercial product offering.</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">&nbsp;</div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; text-decoration: underline;">Termination of Deerfield Facility Agreement and DIP Credit Agreement</div></div> <div style=" margin: 0pt 15pt 0pt 18pt; text-align: justify; font-family: Times New Roman, Times, serif; font-size: 10pt;">On the Effective Date, the obligations of the Company under the Deerfield Facility Agreement, and under the DIP Credit Agreement (as defined below in Note <div style="display: inline; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div> - <div style="display: inline; font-style: italic;">Debt</div>), were cancelled in accordance with the Plan of Reorganization, and the Company ceased to have any obligations thereunder.</div></div></div>
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