Attached files
| file | filename |
|---|---|
| 8-K/A - AMENDMENT NO. 2 - Digital Turbine, Inc. | d560492d8ka.htm |
| EX-99.1 - EX 99.1 - Digital Turbine, Inc. | d560492dex991.htm |
Exhibit 99.2
Mandalay Digital Group, Inc.
and Mirror Image International Holdings Pty Ltd.
Pro Forma Combined Financial Statements
(unaudited)
Contents
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| Pro Forma Combined Financial Statements (Unaudited): |
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| Pro Forma Combined Balance Sheet as of March 31, 2013 (unaudited) |
2 | |||
| Pro Forma Combined Statement of Operations for the Year ended March 31, 2013 (unaudited) |
3 | |||
| Notes to Pro Forma Combined Financial Statements (unaudited) |
4 | |||
1
Mandalay Digital Group, Inc.
and Mirror Image International Holdings Pty Ltd.
Pro Forma Combined Balance Sheet
March 31, 2013
(unaudited)
| Mandalay Digital Group, Inc. (1) |
Mirror Image International Holdings Pty Ltd (2) |
Pro Forma Adjustments |
Pro Forma Combined |
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| ASSETS | ||||||||||||||||||
| CURRENT ASSETS |
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| Cash & cash equivalents |
$ | 1,149,000 | $ | 628,000 | $ | (1,287,000 | ) | a | $ | 490,000 | ||||||||
| Accounts receivable |
1,995,000 | 2,854,000 | — | 4,849,000 | ||||||||||||||
| Prepaid expenses and other current assets |
848,000 | 934,000 | — | 1,782,000 | ||||||||||||||
| Due from related parties |
— | 25,000 | — | 25,000 | ||||||||||||||
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| TOTAL CURRENT ASSETS |
3,992,000 | 4,441,000 | (1,287,000 | ) | 7,146,000 | |||||||||||||
| Property and equipment, net |
148,000 | 608,000 | (53,000 | ) | b | 703,000 | ||||||||||||
| Intangible assets, net |
4,757,000 | — | 6,874,000 | c | 11,631,000 | |||||||||||||
| Goodwill |
3,588,000 | — | 1,319,000 | d | 4,907,000 | |||||||||||||
| Other assets |
— | — | — | — | ||||||||||||||
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| TOTAL ASSETS |
$ | 12,485,000 | $ | 5,049,000 | $ | 6,853,000 | $ | 24,387,000 | ||||||||||
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| LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||||||||||||
| CURRENT LIABILITIES |
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| Accounts payable |
$ | 3,783,000 | $ | 1,575,000 | $ | — | $ | 5,358,000 | ||||||||||
| Accrueed expenses |
1,361,000 | 2,957,000 | — | 4,318,000 | ||||||||||||||
| Current maturities and short term loans |
3,777,000 | — | — | 3,777,000 | ||||||||||||||
| Other current liabilities |
734,000 | 216,000 | — | 950,000 | ||||||||||||||
| Due to related parties |
— | — | — | — | ||||||||||||||
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| TOTAL CURRENT LIABILITIES |
9,655,000 | 4,748,000 | — | 14,403,000 | ||||||||||||||
| Long term debt and convertible debt |
1,252,000 | — | 2,404,000 | e | 3,656,000 | |||||||||||||
| Provision for uncertain tax provisions |
— | — | — | — | ||||||||||||||
| Other long term liabilities |
841,000 | — | — | 841,000 | ||||||||||||||
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| TOTAL LIABILITIES |
11,748,000 | 4,748,000 | 2,404,000 | 18,900,000 | ||||||||||||||
| SHAREHOLDERS’ EQUITY |
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| Preferred stock |
100,000 | — | 100,000 | |||||||||||||||
| Common stock |
7,000 | — | 1,000 | f | 8,000 | |||||||||||||
| Treasury stock |
(71,000 | ) | — | (71,000 | ) | |||||||||||||
| Additional paid in capital |
142,571,000 | — | 147,320,000 | |||||||||||||||
| 17,000 | g | |||||||||||||||||
| 284,000 | h | |||||||||||||||||
| 4,448,000 | f | |||||||||||||||||
| Accumulated other comprehensive income (loss) |
(266,000 | ) | 17,000 | (17,000 | ) | g | (266,000 | ) | ||||||||||
| (Accumulated deficit) retained earnings |
(141,604,000 | ) | 284,000 | (284,000 | ) | h | (141,604,000 | ) | ||||||||||
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| TOTAL SHAREHOLDERS’ EQUITY |
737,000 | 301,000 | 4,449,000 | 5,487,000 | ||||||||||||||
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| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ | 12,485,000 | $ | 5,049,000 | $ | 6,853,000 | $ | 24,387,000 | ||||||||||
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| (1) | Source: unaudited financial statements of Mandalay Digital Group, Inc. |
| (2) | Source: audited financial statements of Mirror Image International Holdings Pty LTd. as of March 31, 2013 included elsewhere in this 8-K |
See accompanying notes to unaudited pro forma combined financial statements
2
Mandalay Digital Group, Inc.
and Mirror Image International Holdings Pty Ltd.
Pro Forma Combined Statement of Operations
For the Year Ended March 31, 2013
(unaudited)
| Mandalay Digital Group, Inc. (1) |
Mirror
Image International Holdings Pty Ltd (2) |
Pro
Forma Adjustments |
Pro Forma Combined |
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| Net revenue |
$ | 6,025,000 | $ | 13,358,000 | $ | — | $ | 19,383,000 | ||||||||||
| Cost of revenue |
2,611,000 | 7,562,000 | — | 10,173,000 | ||||||||||||||
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| Gross profit |
3,414,000 | 5,796,000 | — | 9,210,000 | ||||||||||||||
| Product development |
1,712,000 | — | — | 1,712,000 | ||||||||||||||
| Selling, general and administrative |
12,963,000 | 6,338,000 | 1,320,000 | (i) | 20,621,000 | |||||||||||||
| Impairment of goodwill |
1,119,000 | — | — | 1,119,000 | ||||||||||||||
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| Loss from operations |
(12,380,000 | ) | (542,000 | ) | (1,320,000 | ) | (14,242,000 | ) | ||||||||||
| Non-operating expense |
(1,691,000 | ) | (58,000 | ) | 36,000 | (j) | (1,713,000 | ) | ||||||||||
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| Loss before provision for income taxes |
(14,071,000 | ) | (600,000 | ) | (1,284,000 | ) | (15,955,000 | ) | ||||||||||
| Provision for income taxes |
90,000 | 92,000 | — | 182,000 | ||||||||||||||
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| Net loss |
$ | (14,161,000 | ) | $ | (692,000 | ) | $ | (1,284,000 | ) | $ | (16,137,000 | ) | ||||||
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| Weighted average shares outstanding : |
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| Basic |
17,631,000 | 22,686,822 | ||||||||||||||||
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| Diluted |
17,631,000 | 22,686,822 | ||||||||||||||||
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| Basic and diluted earnings per share |
$ | (0.80 | ) | $ | (0.71 | ) | ||||||||||||
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| (1) | Source: unaudited financial statements of Mandalay Digital Group, Inc. |
| (2) | Source: audited financial statements of Mirror Image International Holdings Pty LTd. for the year ended March 31, 2013 included elsewhere in this 8-K |
See accompanying notes to unaudited pro forma combined financial statements
3
Mandalay Digital Group, Inc.
and Mirror Image International Holdings Pty Ltd.
Notes to Unaudited Pro forma Combined Financial Statements
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited pro forma combined balance sheet presents the accounts of Mandalay Digital Group, Inc. (“Mandalay”) and Mirror Image International Holdings Pty Ltd and its wholly owned subsidiary Mirror Image Access (Australia) Pty Ltd, as well as MIA Technology Pty Ltd (together, “Mirror Image International Holdings Pty Ltd”) as if the acquisition of Mirror Image International Holdings Pty Ltd occurred on March 31, 2013. The accompanying unaudited pro forma combined statement of operations presents the accounts of Mandalay and the Mirror Image International Holdings Pty Ltd for the year ended March 31, 2013 as if the acquisition occurred on April 1, 2012. For accounting purposes, the transaction is being accounted for as an acquisition of a business.
The following adjustments would be required if the acquisition occurred as indicated above:
| a. | To record the $1,287,000 cash paid to the sellers. |
| b. | To record the $53,000 decrease in the fair value of the property and equipment. |
| c. | To record the $6,874,000 fair value of purchased intangible assets. |
| d. | To record the $1,574,000 fair value of goodwill. |
| e. | To record the $2,404,000 note payable issued to the sellers. |
| f. | To record the $4,449,000 fair value of the 5,055,822 shares issued to the sellers. |
| g. | To eliminate Mirror Image International Holdings Pty Ltd’s pre-acquisition other comprehensive income of $17,000. |
| h. | To eliminate Mirror Image International Holdings Pty Ltd pre-acquisition retained earnings of $284,000. |
| i. | To record amortization expense of $1,320,000 related to the purchased intangibles. |
| j. | To record additional interest expense of $36,000 related to the 6% note payable due in 90 days that was issued to the sellers. |
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