IZEA Worldwide, Inc. - FORM 8-K/A - EX-99.5 - PRO FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 2011 - June 7, 2011

Attached files

file filename
8-K/A - IZEA FORM 8-K/A 05/12/11 - IZEA Worldwide, Inc.izeaform8ka051211.htm
EX-10.9 - REVISED FORM OF INDEMNIFICATION AGREEMENT - IZEA Worldwide, Inc.izeaex109.htm
EX-99.4 - IZEA, INC. UNAUDITED FINANCIAL STATEMENTS AS OF MARCH 31, 2011 AND FOR THE THREE MONTHS ENDED MARCH 31, 2011 AND 2010 - IZEA Worldwide, Inc.izeaex994.htm
Exhibit 99.5
 
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
 
The following unaudited pro forma combined financial statements have been prepared to give effect to the reverse-merger and recapitalization pursuant to the Share Exchange Agreement and the adjustments described in the notes to the unaudited pro forma combined financial statements. IZEA, Inc. is the acquirer for financial reporting purposes and Rapid Holdings, Inc. is the acquired company. The pro forma information is based upon the historical audited financial statements of Rapid Holdings, Inc. for the period from inception (March 22, 2010) through May 31, 2010 and IZEA, Inc for the year ended December 31, 2010 and the historical unaudited financial statements of Rapid Holdings, Inc. for the three months ended February 28, 2011 and IZEA, Inc. for the three months ended March 31, 2011. The adjustments to the unaudited pro forma financial statements have been made solely for purposes of developing such pro forma information.
 



 
1
 
 
RAPID HOLDINGS, INC
UNAUDITED PRO FORMA COMBINED BALANCE SHEET

                               
                               
   
Rapid Holdings, Inc
    
IZEA, Inc.
          
Pro Forma
        
   
February 28, 2011
    
March 31, 2011
    
Notes
    
Adjustments
    
Pro Forma
  
                               
Assets
                              
                               
Current:
                              
Cash and cash equivalents
   $ 8,574     $ 749,254       (6 )   $ 3,102,500     $ 2,670,328  
                      (7 )   $ (1,190,000 )        
Accounts receivable
     -       393,429               -       393,429  
Other receivables
     -       1,000               -       1,000  
Prepaid expenses
     -       75,037       (7 )     1,355,000       1,430,037  
                                         
Total current assets
     8,574       1,218,720               3,267,500       4,494,794  
                                         
                                         
Property and equipment, net
     -       131,071               -       131,071  
                                         
Other assets:
                                        
Loan costs
     -       2,846               -       2,846  
Security deposits
     -       8,340               -       8,340  
                                      -  
    $ 8,574     $ 1,360,977             $ 3,267,500     $ 4,637,051  
                                         
Liabilities and Stockholders’ Equity (Deficit)
                                        
                                         
Current liabilities:
                                        
Accounts payable
   $ -     $ 596,390             $ -     $ 596,390  
Related party payable
     -       9,167               -       9,167  
Accrued expenses
     2,000       122,273               -       124,273  
Unearned revenue
     -       1,080,021               -       1,080,021  
Current portion of notes payable
     -       269,164               -       269,164  
                                      -  
Total current liabilities
     2,000       2,077,015               -       2,079,015  
                                      -  
Notes payable, less current portion
     -       5,416               -       5,416  
Deferred rent
     -       9,220               -       9,220  
                                      -  
Total liabilities
     2,000       2,091,651               -       2,093,651  
                                         
Stockholders’ equity (deficit)
                                        
Preferred Stock
     -       1,380       (3 )     (1,380 )     -  
Common Stock
     282       100       (1 )     4,024       3,847  
                      (2 )     (3056 )        
                      (3 )     (100 )        
                      (4 )     2,250          
                      (6 )     297          
                      (7 )     50          
Additional paid-in capital
     40,743       14,074,956       (1 )     (4,024 )     17,346,963  
                      (2 )     3,056          
                      (3 )     1,480          
                      (4 )     (2,250 )        
                      (5 )     (34,151 )        
                      (6 )     3,102,203          
                      (7 )     164,950          
Accumulated deficit
     (34,451 )     (14,807,110 )     (5 )     34,151       (14,807,410 )
                                      -  
Total stockholders’ equity (deficit)
     6,574       (730,674 )             3,267,500       2,543,400  
                                      -  
    $ 8,574     $ 1,360,977             $ 3,267,500     $ 4,637,051  
                                         
                                         
 
 
2
 
 
RAPID HOLDINGS, INC
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
                                         
   
Rapid Holdings
    
IZEA, Inc.
                          
   
Three Months Ended February 28, 2011
    
Three Months Ended March 31, 2011
    
Notes
    
Pro Forma Adjustments
    
Pro Forma
  
                                         
Revenue
   $ -     $ 922,778             $ -     $ 922,778  
                                         
Cost of sales
     -       441,535               -       441,535  
                                         
    Gross profit
     -       481,243               -       481,243  
                                         
Operating expenses:
                                        
   General and administrative
     1,410       856,649               -       858,059  
   Sales and marketing
     -       197,522               -       197,522  
   Licenses and subscriptions
     -       75,062               -       75,062  
                                         
    Total operating expenses
     1,410       1,129,233               -       1,130,643  
                                         
Loss from operations
     (1,410 )     (647,990 )             -       (649,400 )
                                         
Other income (expense):
                                        
   Interest income
     -       27               -       27  
   Interest expense
     -       (6,955 )             -       (6,955 )
   Other income (expense), net
     -       -               -       -  
                                         
    Total other income (expense)
     -       (6,928 )             -       (6,928 )
                                         
Net loss
   $ (1,410 )   $ (654,918 )           $ -     $ (656,328 )
                                         
 
    Notes to Unaudited Pro Forma Combined Financial Statements  
(1)
  
Issuance of 40,244,337 common shares to Rapid Holdings, Inc. shareholders on May 11, 2011 pursuant to a 15.28117-for-one forward split of outstanding common stock
  
(2)
  
Cancellation of 30,562,337 shares of common stock held by Rapid Holdings, Inc. shareholders on May 12, 2011 pursuant to the Conveyance Agreement and Stock Purchase Agreement
  
(3)
  
Elimination of common and preferred stock of Izea, Inc. pursuant to Share Exchange Agreement
  
(4)
  
Issuance of 22,500,000 shares of common stock to Izea shareholders pursuant to Share Exchange Agreement
  
(5)
  
Elimination of accumulated deficit of Rapid Holdings, Inc. related to reverse merger and recapitalization pursuant to Share Exchange Agreement
  
(6)
  
Sale of 230 shares of Series A preferred stock and 2,969,694 shares of common stock for net proceeds of 3,102,500 on
  
   
May 24 and May 26, 2011 pursuant to subscription agreements, including exchange of $500,000 of Bridge Notes (originally issued on May 11, 2011)
  
(7)
  
Prepayment of $1,190,000 in cash and 500,000 shares of common stock valued at $165,000 pursuant to an Investor Relations Consulting Agreement entered into on May 24, 2011
  

 
 
 3

IZEA Worldwide, Inc. Reports