1. Organization and Description of Business

 

Coronado Biosciences, Inc. (the “Company”), incorporated in Delaware on June 28, 2006 (date of inception), is a biopharmaceuticals 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 plans to identify, evaluate and potentially in-license, acquire or invest in pharmaceutical and biotechnology products, technologies and/or companies.   The Company may from time to time consider financing existing or later-acquired products, technologies or companies through partnerships, joint ventures, direct financings, and/or public or private spin-outs.   The Company believes these activities will diversify its product development and, over time, may enhance shareholder value through potential royalty, milestone and equity payments, fees as well as potential product revenues.

 

As of March 31, 2014, the Company has three wholly owned subsidiaries: Innmune Limited, Coronado SO Co., Inc. and TSO Development Corporation, Inc.

 

Recent 2014 Developments

 

On March 17, 2014, the Company made a $250,000 investment in Argus Neurooptics LLC (“Argus”), a medical device company developing a laser device to treat migraine headaches. The investment represents a  35% ownership position in Argus. The Company elected the fair value option to record this investment. (See Note 8).

 

Also on March 17, 2014, the Company provided a $50,000 bridge loan to Nuro Pharma, Inc. (“Nuro”). Nuro is an emerging specialty pharmaceutical company developing, marketing and distributing Epilepsy drugs. The bridge loan is payable in 90 days, accrues interest at a rate of 8% and is secured by Nuro’s assets. The Company recorded this bridge loan in prepaid and other current assets in its Unaudited Condensed Consolidated Balance Sheets as of March 31, 2014.