Attached files
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8-K/A - AMENDMENT TO FORM 8-K/A - SITO MOBILE, LTD. | f8k072414a1_sitomobile.htm |
EX-99.1 - AUDITED FINANCIAL STATEMENTS - SITO MOBILE, LTD. | f8k072414a1ex99i_sitomobile.htm |
Exhibit 99.2
SITO MOBILE, LTD. | |||||
PRO FORMA UNAUDITED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2014 |
SITO Mobile | DoubleVision | Adjustments | Combined | |||||||||||||
Current Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,976,201 | $ | 178,955 | $ | (400,000 | ) | [A] | $ | 1,755,156 | ||||||
Accounts receivable, net – current portion | 1,603,209 | 56,315 | (26,647 | ) | [B] | 1,632,877 | ||||||||||
Prepaid consulting | 354,158 | - | - | 354,158 | ||||||||||||
Other prepaid expenses | 229,581 | 6,150 | - | 235,731 | ||||||||||||
Note receivable – discontinued operations | - | 15,000 | - | 15,000 | ||||||||||||
Total current assets | 4,163,149 | 256,420 | (426,647 | ) | 3,992,922 | |||||||||||
Other assets: | ||||||||||||||||
Property and equipment, net | 231,426 | 22,185 | - | 253,611 | ||||||||||||
Accounts receivable, net | 450,000 | - | - | 450,000 | ||||||||||||
Capitalized software development costs, net | 350,486 | 236,663 | - | 587,149 | ||||||||||||
Patents | 367,172 | - | - | 367,172 | ||||||||||||
Patent application costs | 1,028,096 | - | - | 1,028,096 | ||||||||||||
Software license | 831,000 | - | - | 831,000 | ||||||||||||
Other assets including security deposits | 116,412 | - | - | 116,412 | ||||||||||||
Goodwill | - | - | 3,482,884 | [C] | 3,482,884 | |||||||||||
Total assets | $ | 7,537,741 | $ | 515,268 | $ | 3,056,237 | $ | 11,109,246 |
Notes
[A] | To record the $400,000 SITO Mobile cash payment to holder of the DoubleVision Networks, Inc. convertible debenture having $331,194 in principal and interest outstanding and a $68,806 conversion premium payment required under the terms of debenture that is charged to interest expense for the nine month ended June 30, 2014. |
[B] | To eliminate $52,413 of media placement services that SITO Mobile, Ltd. purchased from DoubleVision Networks, Inc. during the nine months ended June 30, 2014, and the $26,647 balance for the services that SITO Mobile, Ltd. owed to DoubleVision Networks, Inc. as of June 30, 2014. |
[C] | SITO Mobile acquired all of the outstanding capital stock of DoubleVision Networks, Inc. for a contractual price of $3,680,000 million that was paid by issuing 8,000,000 shares of SITO Mobile, Ltd. common stock to shareholders of DoubleVision Networks, Inc. at an agreed-upon valuation of $.41 per share, plus a cash payment of $400,000 to the holder of the DoubleVision Networks, Inc. convertible debenture. The $3,482,884 excess of the fair value of the total consideration over the estimated fair value of the net assets was recorded as goodwill, which was primarily attributable to the synergies expected from combining the technologies, including complementary products that will enhance the Company’s overall product portfolio, and the value of the workforce that became Company employees following the closing of the acquisition. The shareholder’s equity of DoubleVision Networks, Inc., which becomes a wholly owned subsidiary of SITO Mobile, Ltd. upon acquisition, is eliminated in consolidation. |
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SITO MOBILE, LTD. |
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PRO FORMA UNAUDITED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2014 |
SITO Mobile | DoubleVision | Adjustments | Combined | |||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 1,498,296 | $ | 261,205 | $ | (26,647 | ) | [B] | $ | 1,732,854 | ||||||
Accrued expenses | 726,186 | - | - | 726,186 | ||||||||||||
Deferred licensing revenue | 303,082 | - | - | 303,082 | ||||||||||||
Accrued compensation – related party | 265,719 | 756,666 | - | 1,022,385 | ||||||||||||
Convertible debenture – related party | 629,755 | 331,194 | (331,194 | ) | [A] | 629,755 | ||||||||||
Loans from Co-founders | - | 20,284 | - | 20,284 | ||||||||||||
Convertible debentures – unrelated parties | 3,480,949 | - | - | 3,480,949 | ||||||||||||
Current portion of capital lease obligation | 16,578 | - | - | 16,578 | ||||||||||||
Total current liabilities | 6,920,565 | 1,369,349 | (357,841 | ) | 7,932,073 | |||||||||||
Long-term portion of capital lease obligation | 16,914 | - | - | 16,914 | ||||||||||||
Total liabilities | 6,937,479 | 1,369,349 | (357,841 | ) | 7,948,987 | |||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock | - | 38 | (38 | ) | [C] | - | ||||||||||
Common stock | 142,729 | 748 | 8,000 | [C] | 150,729 | |||||||||||
(748 | ) | [C] | ||||||||||||||
Treasury stock | - | (30,000 | ) | 30,000 | [C] | - | ||||||||||
Additional paid-in capital | 133,269,919 | 409,126 | 3,272,000 | [C] | 136,541,919 | |||||||||||
(409,126 | ) | [C] | ||||||||||||||
Accumulated deficit | (132,812,386 | ) | (1,233,993 | ) | 68,806 | [A] | (133,532,389 | ) | ||||||||
445,184 | [C] | |||||||||||||||
Total stockholders’ equity | 600,262 | (854,081 | ) | 3,414,078 | 3,160,259 | |||||||||||
Total liabilities and stockholders’ equity | $ | 7,537,741 | $ | 515,268 | $ | 3,056,237 | $ | 11,109,246 |
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SITO MOBILE, LTD. |
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PRO FORMA UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED JUNE 30, 2014 |
SITO Mobile | DoubleVision | Adjustments | Combined | |||||||||||||
Revenue | ||||||||||||||||
Wireless applications | $ | 5,844,468 | $ | - | $ | - | $ | 5,844,468 | ||||||||
Licensing and royalties | 821,918 | - | - | 821,918 | ||||||||||||
Media placement | 201,500 | 862,595 | (52,413 | ) | [B] | 1,011,682 | ||||||||||
6,867,886 | 862,595 | (52,413 | ) | 7,678,068 | ||||||||||||
Cost of Sales | 2,453,343 | 358,772 | (52,413 | ) | 2,759,702 | |||||||||||
Gross Profit | 4,414,543 | 503,823 | - | 4,918,366 | ||||||||||||
Operating Expenses | ||||||||||||||||
General and administrative (including stock based compensation) | 3,369,460 | 118,773 | - | 3,488,233 | ||||||||||||
Compensation expense (including stock based compensation)* | 2,887,094 | 572,539 | - | 3,459,633 | ||||||||||||
Depreciation and amortization | 453,935 | 37,678 | - | 491,613 | ||||||||||||
Research and development | 48,326 | - | - | 48,326 | ||||||||||||
Total operating expenses | 6,758,815 | 728,990 | - | 7,487,805 | ||||||||||||
Loss from operations | (2,344,272 | ) | (225,167 | ) | - | (2,569,439 | ) | |||||||||
Other Income (Expenses) | ||||||||||||||||
Interest expense | (569,097 | ) | (11,219 | ) | (68,806 | ) | [A] | (649,122 | ) | |||||||
Forgiveness of interest on note payable – related party | - | 81,914 | - | 81,914 | ||||||||||||
Loss on impairment of software | - | (31,950 | ) | - | (31,950 | ) | ||||||||||
Total other income (expense) | (569,097 | ) | 38,745 | (68,806 | ) | (599,158 | ) | |||||||||
Net loss before income taxes | (2,913,369 | ) | (186,422 | ) | (68,806 | ) | (3,168,597 | ) | ||||||||
Provision for income taxes | - | - | - | - | ||||||||||||
Net loss | $ | (2,913,369 | ) | $ | (186,422 | ) | $ | (68,806 | ) | $ | (3,168,597 | ) | ||||
Basic and diluted loss per share | $ | (0.02 | ) | - | - | $ | (0.02 | ) | ||||||||
Weighted average shares outstanding | 142,101,080 | - | - | 142,101,080 | ||||||||||||
Details of stock based compensation included within: | ||||||||||||||||
Compensation Expense | $ | 388,520 | $ | 11,699 | $ | - | $ | 400,219 | ||||||||
General Administrative | 1,060,242 | - | - | 1,060,242 | ||||||||||||
Total | $ | 1,448,762 | $ | 11,699 | $ | - | $ | 1,460,461 |
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