Attached files
| file | filename |
|---|---|
| 8-K/A - FORM 8K-AMENDED - UnifiedOnline, Inc. | f8kadraftctcauditedfinancial.htm |
| EX-99.1 - EXHIBIT 99.1 - UnifiedOnline, Inc. | Ex99.1ctcaudfin.htm |
Exhibit 99.2
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
The following Unaudited Pro Forma Combined Financial Statements of IceWeb, Inc. (“IceWEB”) and Computers and Tele-Comm, Inc. and Subsidiary (“CTCI”) gives effect to the acquisition of CTCI., under the purchase method of accounting prescribed by ASC 805 Business Combinations. These pro forma statements are presented for illustrative purposes only. The pro forma adjustments are based upon available information and assumptions that management believes are reasonable. The Unaudited Pro Forma Combined Financial Statements do not purport to represent what the results of operations or financial position of IceWeb, Inc. would actually have been if the acquisition had in fact occurred on October 1, 2011 nor do they purport to project the results of operations or financial position of IceWeb for any future period or as of any date, respectively.
These Unaudited Pro Forma Combined Financial Statements do not give effect to any restructuring costs or to any potential cost savings or other operating efficiencies that could result from the merger between IceWeb, Inc. and Computers and Tele-Comm, Inc.
You should read the financial information in this section along with IceWeb’s historical financial statements and accompanying notes in prior Securities and Exchange Commission filings and in this amended Current Report on Form 8-K.
1
IceWEB, Inc. | |||||
Unaudited Pro Forma Combined Balance Sheet | |||||
September 30, 2012 | |||||
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| Pro Forma Adjustments |
| |
CURRENT ASSETS: | CTCI | IceWEB | Debit | Credit | Pro Forma |
Cash | $ 14,726 | $ 269,594 | $ - | $ - | $ 284,320 |
Accounts receivable, net | 127,890 | 563,320 | - | - | 691,210 |
Marketable securities | - | 72,000 |
|
| 72,000 |
Inventory, Net | - | 282,231 | - | - | 282,231 |
Prepaid expenses | 19,060 | 19,702 | - | - | 38,762 |
Other current assets | - | 6,875 | - | - | 6,875 |
| 161,676 | 1,213,722 | - | - | 1,375,398 |
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OTHER ASSETS: |
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Property and equipment, net | 1,049,460 | 499,785 | - | - | 1,549,245 |
Deposits | 174,930 | 13,320 | - | - | 188,250 |
Other assets | - | 1,545 |
|
| 1,545 |
Marketable Securities | - | 237,600 |
|
| 237,600 |
Deferred financing costs, net | - | 114,395 |
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| 114,395 |
Intangible assets, net of accumulated amortization of $203,753) | - | - | 611,259 | 203,753 | 407,506 |
Total Assets | $ 1,386,066 | $ 2,080,367 | $ 611,259 | $ 203,753 | $ 3,873,939 |
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CURRENT LIABILITIES: |
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Accounts payable and accrued liabilities | $ 198,149 | $ 824,128 | $ - | $ - | $ 1,022,277 |
Notes payable | 534,412 | 2,059,582 | - | - | 2,593,994 |
Convertible notes payable, net of discount | - | 105,176 |
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| 105,176 |
Derivative liability | - | 1,104,499 |
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| 1,104,499 |
Notes payable - related party | 4,588 | - | - | - | 4,588 |
Deferred revenue | - | 24,896 | - | - | 24,896 |
Total current liabilities | 737,149 | 4,118,281 | - | - | 4,855,430 |
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Long-Term Liabilities |
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Notes Payable | 732,120 | - | - | - | 732,120 |
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Total Liabilities | $ 1,469,269 | $ 4,118,281 | $ - | $ - | $ 5,587,550 |
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Stockholders’ Deficit |
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Preferred Stock ($.001 par value; 10,000,000 shares authorized) |
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Series B convertible preferred stock ($.001 par value; 626,667 shares issued and outstanding) | $ - | $ 626 | $ - | $ - | $ 626 |
Common stock ($.001 par value; 1,000,000,000 shares authorized; 216,443,809 shares issued and 215,943,809 shares outstanding, respectively and 157,959,066 shares issued and 134,443,725 shares outstanding, respectively | 570,542 | 215,945 |
| 611,259 | 1,397,746 |
Additional paid in capital | - | 38,343,043 |
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| 38,343,043 |
Accumulated deficit | (653,745) | (40,813,128) | 203,753 |
| (41,670,626) |
Accumulated other comprehensive income |
| 228,600 |
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| 228,600 |
Treasury stock, at cost, (162,500 shares) | - | (13,000) | - | - | (13,000) |
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Total Stockholders’ Deficit | $ (83,202) | $ (2,037,914) | $ 203,753 | 611,259 | (1,713,611) |
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Total Liabilities and Stockholders’ Deficit | $ 1,386,066 | $ 2,080,367 | $ 203,753 | $ 611,259 | $ 3,873,939 |
2
IceWEB, Inc. | |||||
Unaudited Pro Forma Combined Statement of Operations | |||||
For the twelve months ended September 30, 2012 | |||||
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| Pro Forma Adjustments |
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| CTCI | IceWEB | Debit | Credit | Pro Forma |
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Sales | $ 1,358,233 | $ 2,640,520 | $ - | $ - | $ 3,998,753 |
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Cost of sales | 187,238 | 1,780,246 | - | - | 1,967,484 |
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Gross profit | 1,170,995 | 860,274 | - | - | 2,031,269 |
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Operating expenses: |
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Sales, general and administrative expense | 524,727 | 3,838,388 | - | - | 4,363,115 |
Research and development expense | - | 1,046,026 |
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| 1,046,026 |
Depreciation and amortization | 454,352 | 202,130 | 203,753 |
| 860,235 |
Total Operating Expenses | 979,079 | 5,086,544 | 203,753 | - | 6,269,376 |
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Income (Loss) From Operations | 191,916 | (4,226,270) | (203,753) | - | (4,238,107) |
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Other income (expenses): |
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Gain/(loss) on change in derivative liability | - | 645,501 | - | - | 645,501 |
Interest income | 3 | 22 |
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| 25 |
Interest expense | (190,249) | (2,904,300) | - | - | (3,094,549) |
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Total other income (expenses): | (190,246) | (2,258,777) | - | - | (2,449,023) |
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Net income (loss) | $ 1,670 | $ (6,485,047) | $ (203,753) | $ - | $ (6,687,130) |
3
IceWEB, Inc. | |||||
Unaudited Pro Forma Combined Balance Sheet | |||||
June 30, 2013 | |||||
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| Pro Forma Adjustments |
| |
| CTCI | IceWEB | Debit | Credit | Pro Forma |
CURRENT ASSETS: |
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Cash | $ 15,376 | $ 78,543 | - | - | $ 93,920 |
Other receivables | - | 1,780 |
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| 1,780 |
Accounts receivable, net | 50,729 | 54,040 | - | - | 104,769 |
Marketable securities | - | 3,690 |
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| 3,690 |
Inventory, Net | - | 280,482 | - | - | 280,482 |
Prepaid expenses | 27,114 | 75,393 | - | - | 102,507 |
Other current assets | - | 120,380 | - | - | 120,380 |
| 93,219 | 614,308 | - | - | 707,527 |
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| - |
OTHER ASSETS: |
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| - |
Property and equipment, net | 963,838 | 378,850 | - | - | 1,342,688 |
Deposits | 188,874 | 13,320 | - | - | 202,194 |
Other assets | - | 1,545 |
|
| 1,545 |
Intangible assets, net of accumulated amortization of $356,568) | - | - | 611,259 | 356,568 | 254,691 |
Total Assets | 1,245,931 | 1,008,023 | 611,259 | 356,568 | 2,508,645 |
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CURRENT LIABILITIES: |
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Accounts payable and accrued liabilities | $ 504,609 | $ 700,890 | $ - | $ - | $ 1,205,499 |
Notes payable, current | 907,607 | - | - | - | 907,607 |
Convertible notes payable, net of discount | - | 172,262 |
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| 172,262 |
Derivative liability | - | 116,875 |
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| 116,875 |
Notes payable - related party | - | 111,000 | - | - | 111,000 |
Deferred revenue | - | 2,995 | - | - | 2,995 |
Total current liabilities | 1,412,216 | 1,104,022 | - | - | 2,542,966 |
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Long-Term Liabilities |
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Notes Payable | 902,356 | 1,640,610 | - | - | 2,542,966 |
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Total Liabilities | $ 2,314,572 | $ 2,744,632 | $ - | $ - | $ 5,059,204 |
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Stockholders’ Deficit |
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Preferred Stock ($.001 par value; 10,000,000 shares authorized) |
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Series B convertible preferred stock ($.001 par value; 626,667 shares issued and outstanding) | - | 626 | - | - | 626 |
Common stock ($.001 par value; 1,000,000,000 shares authorized; 330,619,860 shares issued and 330,457,360 shares outstanding at June 30, 2013 | 589,826 | 330,602 | - | 611,259 | 1,531,687 |
Additional paid in capital | - | 43,347,232 | - | - | 43,347,232 |
Accumulated deficit | (1,658,467) | (45,324,759) | 356,568 | - | (47,339,794) |
Accumulated other comprehensive income | - | (77,310) | - | - | (77,310) |
Treasury stock, at cost, (162,500 shares) | - | (13,000) | - | - | (13,000) |
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Total Stockholders’ Deficit | (1,068,641) | (1,736,608) | 356,568 | 611,259 | (2,550,559) |
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Total Liabilities and Stockholders’ Deficit | $ 1,245,932 | $ 1,008,023 | $ 356,568 | $ 611,259 | 2,508,645 |
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4
IceWEB, Inc. | |||||
Unaudited Pro Forma Combined Statement of Operations | |||||
For the nine months ended June 30, 2013 | |||||
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| Pro Forma Adjustments |
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| CTCI | IceWEB | Debit | Credit | Pro Forma |
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Sales | $ 840,787 | $ 873,446 | $ - | $ - | $ 1,714,233 |
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Cost of sales | 162,674 | 491,480 | - | - | 654,154 |
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Gross profit | 678,113 | 381,966 | - | - | 1,060,079 |
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Operating expenses: |
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Sales, general and administrative expense | 478,318 | 4,712,364 | - | - | 5,190,682 |
Research and development expense |
| 656,491 | - | - | 656,491 |
Depreciation and amortization | 326,326 | 120,936 | 152,815 | - | 600,077 |
Total Operating Expenses | 806,644 | 5,489,791 | 152,815 | - | 6,447,250 |
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Income (loss) From Operations | (126,531) | (5,107,825) | 152,815 | - | (5,387,171) |
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Other income (expenses): |
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Gain (loss) on change in derivative liability |
| 987,624 | - | - | 987,624 |
Interest income | 3 | - | - | - | 3 |
Interest expense | (145,960) | (391,430) | - | - | (537,391) |
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Total other income (expenses): | (145,957) | 596,194 | - | - | 450,237 |
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Net income (loss) | $ (272,488) | $ (4,511,631) | $ 152,815 | $ - | $ (4,936,934) |
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5
IceWEB, Inc. | ||||
Unaudited Pro forma Adjustments to Combined Financial Statements | ||||
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(a) To record the impact of the acquisition of Computers & Telecom, Inc. and Subsidiary by IceWEB | ||||
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| Debit |
| Credit |
Intangible assets |
| $ 611,259 |
| $ - |
Common stock |
| - |
| 611,259 |
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| $ 611,259 |
| $ 611,259 |
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(b) To record one year’s amortization expense of intangible assets acquired | ||||
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| Debit |
| Credit |
Amortization expense |
| $ 203,753 |
| $ - |
Accumulated amortization expense |
| - |
| 203,753 |
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| $ 203,753 |
| $ 203,753 |
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(c) To record nine month’s amortization expense of intangible assets acquired | ||||
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| Debit |
| Credit |
Amortization expense |
| $ 152,815 |
| $ - |
Accumulated amortization expense |
| - |
| 152,815 |
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| $ 152,815 |
| $ 152,815 |
6