Eyegate Pharma, a privately-held biotechnology company that develops drugs for diseases of the eye, had recently secured a second round of preferred stock financing and was in the midst of closing a third. The recent financings had left Eyegate and its minority-owned foreign subsidiary with a complicated ownership structure. Faced with rapid company growth and a complex capital structure, the company needed expert assistance to prepare for its upcoming financial audit.
EyeGate’s management engaged AMS to assist with audit preparation and equity valuation. AMS’s senior consultant determined the fair value of EyeGate’s common stock and quantified the stock-based compensation expense, providing detailed models and analyses to the auditor. The AMS consultant also assisted with consolidating the company’s foreign subsidiary and preparing additional analyses and reconciliations for the external auditor.
EyeGate’s audit was successfully completed and the company was able to issue financial statements. The company’s finance team had additional time to oversee day-to-day financial operations and manage the rapidly expanding business.