1. Organization and Description of Business

 

Coronado Biosciences, Inc. (the “Company”), incorporated in Delaware on June 28, 2006 (date of inception), is a biopharmaceutical company involved in the development of novel immunotherapy agents for the treatment of autoimmune diseases and cancer, namely CNDO-201 or Trichuris suis ova (“TSO”) and CNDO-109.

  

The Company is also actively identifying, evaluating and pursuing opportunities to in-license, acquire or invest in pharmaceutical and biotechnology products, technologies and/or companies. The scope of these activities is broad and may from time to time include financing existing or later-acquired products, technologies or companies through partnerships, joint ventures, direct financings, and/or public or private spin-outs. The Company has begun to diversify its product base while continuing to progress and evaluate the CNDO-201 and CNDO-109 clinical programs.

 

As of June 30, 2014, the Company has four wholly owned subsidiaries: Innmune Limited, Coronado SO Co., Inc., Cyprium Inc., and TSO Development Corporation, Inc.

 

Recent 2014 Developments

 

On March 17, 2014, the Company made a $250,000 investment in a third party medical device company developing a laser device to treat migraine headaches. The investment represents a 35% ownership position in this company. The Company elected the fair value method and recorded this investment in long-term investments in its Unaudited Condensed Consolidated Balance Sheets as of June 30, 2014. (See Note 8).

 

Also on March 17, 2014, the Company provided a $50,000 bridge loan to a third party emerging specialty pharmaceutical company developing, marketing and distributing Epilepsy drugs. The bridge loan was due on June 16, 2014, accrues interest at a rate of 8% and is secured by the third party’s assets. As of June 30, 2014, the bridge loan remained outstanding and the Company believes the loan is collectable. The Company recorded this bridge loan in short-term investments in its Unaudited Condensed Consolidated Balance Sheets as of June 30, 2014. 

 

On April 18, 2014, the Company paid $243,000 to acquire an option to purchase (“Option”) the exclusive rights to a pharmaceutical product  from a third party. The Option expires no later than September 30, 2014. The Company elected the fair value method and recorded the Option in short-term investments in its Unaudited Condensed Consolidated Balance Sheets as of June 30, 2014. (See Note 8).