Attached files
| file | filename |
|---|---|
| 8-K - 8-K - UBIQUITY, INC. | v355776_8k.htm |
| EX-2.3 - EXHIBIT 2.3 - UBIQUITY, INC. | v355776_ex2-3.htm |
| EX-2.1 - EXHIBIT 2.1 - UBIQUITY, INC. | v355776_ex2-1.htm |
| EX-2.2 - EXHIBIT 2.2 - UBIQUITY, INC. | v355776_ex2-2.htm |
| EX-10.2 - EXHIBIT 10.2 - UBIQUITY, INC. | v355776_ex10-2.htm |
| EX-99.2 - EXHIBIT 99.2 - UBIQUITY, INC. | v355776_ex99-2.htm |
| EX-10.1 - EXHIBIT 10.1 - UBIQUITY, INC. | v355776_ex10-1.htm |
| EX-99.1 - EXHIBIT 99.1 - UBIQUITY, INC. | v355776_ex99-1.htm |
| EX-10.4 - EXHIBIT 10.4 - UBIQUITY, INC. | v355776_ex10-4.htm |
| EX-10.3 - EXHIBIT 10.3 - UBIQUITY, INC. | v355776_ex10-3.htm |
UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
On March 5, 2013, Ubiquity Broadcasting Corp. (formerly Fermo Group, Inc.) a Nevada corporation, (“UBC” or the “Company”), Ubiquity Acquisition Corporation, a Nevada corporation and wholly-owned subsidiary of the Company (“Ubiquity Acquisition”), and Ubiquity Broadcasting Corp., a Delaware corporation (“UBC-DE”) entered into a Merger Agreement (the “Merger Agreement”) pursuant to which Ubiquity Acquisition will merge with and into UBC-DE in a statutory reverse triangular merger, with UBC-DE surviving as a wholly-owned subsidiary of the Company. Prior to the merger, the Company increased the authorized shares of common stock from 75,000,000 to 200,000,000. The merger closed on September 20, 2013.
The following unaudited pro forma combined balance sheets and income statements are based on historical financial statements of Ubiquity Broadcasting Corp. (formerly Fermo Group, Inc.) a Nevada corporation, Ubiquity Acquisition Corporation, a Nevada corporation and wholly-owned subsidiary of the Company, and Ubiquity Broadcasting Corp., a Delaware corporation. The unaudited pro forma combined financial statements are provided for information purposes only. The pro forma financial statements are not necessarily indicative of what the financial position or results of operations actually would have been had the acquisition been completed at the dates indicated below. In addition, the unaudited pro forma combined financial statements do not purport to project the future financial position or operating results of the combined company. The unaudited pro forma combined financial information has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission. For pro forma purposes:
· The unaudited Pro Forma Combined Balance Sheets as of December 31, 2012 of the companies give effect to the Transaction as if it had occurred at the beginning of the 2012.
· The unaudited Pro Forma Combined Statement of Operations for the year ended December 31, 2012 combines the income statements of the companies for the indicated periods, giving effect to the Transaction as if it had occurred at the beginning of 2012.
· The unaudited Pro Forma Combined Balance Sheets as of December 31, 2011 of the companies give effect to the Transaction as if it had occurred at the beginning of 2011.
· The unaudited Pro Forma Combined Statement of Operations for the year ended December 31, 2011 combines the income statements of the companies for the indicated periods, giving effect to the Transaction as if it had occurred at the beginning of 2011.
· The unaudited Pro Forma Combined Balance Sheets as of June 30, 2013 of the companies give effect to the Transaction as if it had occurred at the beginning of 2013.
· The unaudited Pro Forma Combined Statement of Operations for the six months ended June 30, 2013 combines the income statements of the companies for the indicated periods, giving effect to the Transaction as if it had occurred at the beginning of 2013.
UBIQUITY BROADCASTING CORPORATION
UBIQUITY BROADCASTING CORPORATION (FORMERLY FERMO GROUP, INC.)
PRO FORMA COMBINED BALANCE SHEETS (Unaudited)
AS OF DECEMBER 31, 2012
| Ubiquity Broadcasting Corporation | Ubiquity Broadcasting Corporation (formerly Fermo Group Inc.) | Pro Forma Adjustments | Total | |||||||||||||
| ASSETS | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 118,663 | $ | 75 | $ | 118,738 | ||||||||||
| Accounts receivable, net | 29,600 | 0 | 29,600 | |||||||||||||
| Prepaid expenses | 160,994 | 4,000 | 164,994 | |||||||||||||
| Notes receivable, net | 216,439 | 0 | 216,439 | |||||||||||||
| Equipment deposit | 0 | 1,500 | 1,500 | |||||||||||||
| Total Current Assets | 525,696 | 5,575 | 531,271 | |||||||||||||
| Property and equipment, net | 990,676 | 0 | 990,676 | |||||||||||||
| Other Assets | ||||||||||||||||
| Intangible assets, net | 8,527,252 | 0 | 8,527,252 | |||||||||||||
| TOTAL ASSETS | $ | 10,043,624 | $ | 5,575 | $ | 10,049,199 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||
| Liabilities | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts Payable | $ | 831,026 | $ | 0 | $ | 831,026 | ||||||||||
| Accrued expenses | 1,809,015 | 4,600 | 1,813,615 | |||||||||||||
| Credit cards payable | 455,174 | 0 | 455,174 | |||||||||||||
| Loans/leases payable | 12,500 | 6,900 | 19,400 | |||||||||||||
| Total Liabilities | 3,107,715 | 11,500 | 3,119,215 | |||||||||||||
| Stockholders’ Equity (Deficit) | ||||||||||||||||
| Common stock | 48,650 | 3,740 | a7,480 | 59,870 | ||||||||||||
| Preferred stock | 600 | 0 | 600 | |||||||||||||
| Additional paid-in capital | 68,407,133 | 21,460 | a(7,480 | ) | 68,421,113 | |||||||||||
| Accumulated deficit | (61,520,474 | ) | (31,125 | ) | (61,551,599 | ) | ||||||||||
| Total Stockholders’ Equity (Deficit) | 6,935,909 | (5,925 | ) | 6,929,984 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 10,043,624 | $ | 5,575 | $ | 10,049,199 | ||||||||||
See accompanying notes to the Pro Forma financial statements.
| 1 |
UBIQUITY BROADCASTING CORPORATION
UBIQUITY BROADCASTING CORPORATION (FORMERLY FERMO GROUP, INC.)
PRO FORMA COMBINED STATEMENTS OF OPERATIONS (Unaudited)
YEAR ENDED DECEMBER 31, 2012
| Ubiquity Broadcasting Corporation | Ubiquity Broadcasting Corporation (formerly Fermo Group Inc.) | Pro Forma Adjustments | Total | |||||||||||||
| REVENUES | $ | 224,967 | $ | 0 | $ | 224,967 | ||||||||||
| COST OF SALES | 161,150 | 0 | 161,150 | |||||||||||||
| GROSS MARGIN | 63,817 | 0 | 63,817 | |||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Meals and entertainment | 57,709 | 0 | 57,709 | |||||||||||||
| Marketing | 29,517 | 0 | 29,517 | |||||||||||||
| Outside services | 258,660 | 0 | 258,660 | |||||||||||||
| Payroll expense | 1,381,167 | 0 | 1,381,167 | |||||||||||||
| Stock-based compensation | 6,986,061 | 0 | 6,986,061 | |||||||||||||
| Office and computer | 140,820 | 0 | 140,820 | |||||||||||||
| Professional fees | 685,517 | 9,700 | 695,217 | |||||||||||||
| Rent | 466,030 | 0 | 466,030 | |||||||||||||
| Travel | 105,691 | 0 | 105,691 | |||||||||||||
| Taxes | 8,993 | 0 | 8,993 | |||||||||||||
| Charitable contributions | 67,500 | 0 | 67,500 | |||||||||||||
| Bad debt expense | 1,500 | 0 | 1,500 | |||||||||||||
| Depreciation and amortization | 821,579 | 0 | 821,579 | |||||||||||||
| Other operating expenses | 458,949 | 17,350 | 476,299 | |||||||||||||
| TOTAL OPERATING EXPENSES | 11,469,693 | 27,050 | 11,496,743 | |||||||||||||
| LOSS FROM OPERATIONS | (11,405,876 | ) | (27,050 | ) | (11,423,926 | ) | ||||||||||
| OTHER INCOME (EXPENSES) | ||||||||||||||||
| Interest income | 18 | 0 | 18 | |||||||||||||
| Other income | 22,380 | 0 | 22,380 | |||||||||||||
| TOTAL OTHER INCOME (EXPENSES) | 22,398 | 0 | 22,398 | |||||||||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES | (11,383,478 | ) | (27,050 | ) | (11,410,528 | ) | ||||||||||
| PROVISION FOR INCOME TAXES | 0 | 0 | 0 | |||||||||||||
| NET LOSS | $ | (11,383,478 | ) | $ | (27,050 | ) | $ | (11,410,528 | ) | |||||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 44,909,879 | 3,393,877 | 48,303,756 | |||||||||||||
| NET LOSS PER SHARE | $ | (0.25 | ) | $ | (0.01 | ) | $ | (0.26 | ) | |||||||
See accompanying notes to the Pro Forma financial statements.
| 2 |
UBIQUITY BROADCASTING CORPORATION
UBIQUITY BROADCASTING CORPORATION (FORMERLY FERMO GROUP, INC.)
PRO FORMA COMBINED BALANCE SHEETS (Unaudited)
AS OF DECEMBER 31, 2011
| Ubiquity Broadcasting Corporation | Ubiquity Broadcasting Corporation (formerly Fermo Group Inc.) | Pro Forma Adjustments | Total | |||||||||||||
| ASSETS | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 300,671 | $ | 3,000 | $ | 303,671 | ||||||||||
| Accounts receivable, net | 33,350 | 0 | 33,350 | |||||||||||||
| Prepaid expenses | 192,935 | 0 | 192,935 | |||||||||||||
| Notes receivable, net | 647,721 | 0 | 647,721 | |||||||||||||
| Total Current Assets | 1,174,677 | 3,000 | 1,177,677 | |||||||||||||
| Property and equipment, net | 1,169,734 | 0 | 1,169,734 | |||||||||||||
| Other Assets | ||||||||||||||||
| Intangible assets, net | 5,816,272 | 0 | 8,527,252 | |||||||||||||
| TOTAL ASSETS | $ | 8,160,683 | $ | 3,000 | $ | 8,163,683 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||
| Liabilities | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts Payable | $ | 1,000,841 | $ | 0 | $ | 1,000,841 | ||||||||||
| Accrued expenses | 1,673,300 | 4,000 | 1,677,300 | |||||||||||||
| Credit cards payable | 446,107 | 0 | 446,107 | |||||||||||||
| Loans/leases payable | 71,072 | 75 | 71,147 | |||||||||||||
| Total Liabilities | 3,191,320 | 4,075 | 3,195,395 | |||||||||||||
| Stockholders’ Equity (Deficit) | ||||||||||||||||
| Common stock | 41,305 | 3,000 | a6,000 | 50,305 | ||||||||||||
| Preferred stock | 600 | 0 | 600 | |||||||||||||
| Additional paid-in capital | 55,064,454 | 0 | a(6,000 | ) | 55,058,454 | |||||||||||
| Accumulated deficit | (50,136,996 | ) | (4,075 | ) | (50,141,071 | ) | ||||||||||
| Total Stockholders’ Equity (Deficit) | 4,969,363 | (1,075 | ) | 4,968,288 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 8,160,683 | $ | 3,000 | $ | 8,163,683 | ||||||||||
See accompanying notes to the Pro Forma financial statements.
| 3 |
UBIQUITY BROADCASTING CORPORATION
UBIQUITY BROADCASTING CORPORATION (FORMERLY FERMO GROUP, INC.)
PRO FORMA COMBINED STATEMENTS OF OPERATIONS (Unaudited)
YEAR ENDED DECEMBER 31, 2011
| Ubiquity Broadcasting Corporation | Ubiquity Broadcasting Corporation (formerly Fermo Group Inc.) | Pro Forma Adjustments | Total | |||||||||||||
| REVENUES | $ | 692,777 | $ | 0 | $ | 692,777 | ||||||||||
| COST OF SALES | 412,269 | 0 | 412,269 | |||||||||||||
| GROSS MARGIN | 280,508 | 0 | 280,508 | |||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Meals and entertainment | 57,872 | 0 | 57,872 | |||||||||||||
| Marketing | 136,027 | 0 | 136,027 | |||||||||||||
| Outside services | 151,913 | 0 | 151,913 | |||||||||||||
| Payroll expense | 1,299,561 | 0 | 1,299,561 | |||||||||||||
| Stock-based compensation | 7,567,122 | 0 | 7,567,122 | |||||||||||||
| Office and computer | 191,219 | 0 | 191,219 | |||||||||||||
| Professional fees | 611,018 | 4,000 | 615,018 | |||||||||||||
| Rent | 424,552 | 0 | 424,552 | |||||||||||||
| Travel | 193,383 | 0 | 193,383 | |||||||||||||
| Taxes | 420,738 | 0 | 420,738 | |||||||||||||
| Charitable contributions | 29,805 | 0 | 29,805 | |||||||||||||
| Bad debt expense | 105,145 | 0 | 105,145 | |||||||||||||
| Depreciation and amortization | 769,093 | 0 | 769,093 | |||||||||||||
| Other operating expenses | 474,375 | 75 | 474,450 | |||||||||||||
| TOTAL OPERATING EXPENSES | 12,431,823 | 4,075 | 12,435,898 | |||||||||||||
| LOSS FROM OPERATIONS | (12,151,315 | ) | (4,075 | ) | (12,155,390 | ) | ||||||||||
| OTHER INCOME (EXPENSES) | ||||||||||||||||
| Interest income | 419 | 0 | 419 | |||||||||||||
| TOTAL OTHER INCOME (EXPENSES) | 419 | 0 | 419 | |||||||||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES | (12,150,896 | ) | (4,075 | ) | (12,155,390 | ) | ||||||||||
| PROVISION FOR INCOME TAXES | 0 | 0 | 0 | |||||||||||||
| NET LOSS | $ | (12,150,896 | ) | $ | (4,075 | ) | $ | (12,154,971 | ) | |||||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 38,494,873 | 3,000,000 | 41,494,873 | |||||||||||||
| NET LOSS PER SHARE | $ | (0.32 | ) | $ | (0.00 | ) | $ | (0.32 | ) | |||||||
See accompanying notes to the Pro Forma financial statements.
| 4 |
UBIQUITY BROADCASTING CORPORATION
UBIQUITY BROADCASTING CORPORATION (FORMERLY FERMO GROUP, INC.)
PRO FORMA COMBINED BALANCE SHEETS (Unaudited)
AS OF JUNE 30, 2013
| Ubiquity Broadcasting Corporation | Ubiquity Broadcasting Corporation (formerly Fermo Group Inc.) | Pro Forma Adjustments | Total | |||||||||||||
| ASSETS | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 99,144 | $ | 0 | $ | 99,144 | ||||||||||
| Accounts receivable, net | 33,350 | 0 | 33,350 | |||||||||||||
| Prepaid expenses | 187,426 | 0 | 187,426 | |||||||||||||
| Notes receivable, net | 313,485 | 0 | 313,485 | |||||||||||||
| Total Current Assets | 633,405 | 0 | 633,405 | |||||||||||||
| Property and equipment, net | 1,028,983 | 0 | 1,028,983 | |||||||||||||
| Other Assets | ||||||||||||||||
| Intangible assets, net | 8,365,446 | 0 | 8,365,446 | |||||||||||||
| TOTAL ASSETS | $ | 10,027,834 | $ | 0 | $ | 10,027,834 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||||||||||||||
| Liabilities | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts Payable | $ | 534,420 | $ | 0 | $ | 534,420 | ||||||||||
| Accrued expenses | 2,156,926 | 7,531 | 2,164,457 | |||||||||||||
| Credit cards payable | 455,305 | 0 | 455,305 | |||||||||||||
| Loans/leases payable | 273,499 | 2,350 | 275,849 | |||||||||||||
| Total Liabilities | 3,420,150 | 9,881 | 3,430,031 | |||||||||||||
| Stockholders’ Equity (Deficit) | ||||||||||||||||
| Common stock | 54,415 | 3,740 | a7,480 | 65,635 | ||||||||||||
| Additional paid-in capital | 71,927,931 | 29,160 | 71,949,611 | |||||||||||||
| Accumulated deficit | (63,374,662 | ) | (42,781 | ) | a(7,480 | ) | (65,417,443 | ) | ||||||||
| Total Stockholders’ Equity (Deficit) | 6,607,684 | (9,881 | ) | 6,597,803 | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 10,027,834 | $ | 0 | $ | 10,027,834 | ||||||||||
See accompanying notes to the Pro Forma financial statements.
| 5 |
UBIQUITY BROADCASTING CORPORATION
UBIQUITY BROADCASTING CORPORATION (FORMERLY FERMO GROUP, INC.)
PRO FORMA COMBINED STATEMENTS OF OPERATIONS (Unaudited)
SIX MONTHS ENDED JUNE 30, 2013
| Ubiquity Broadcasting Corporation | Ubiquity Broadcasting Corporation (formerly Fermo Group Inc.) | Pro Forma Adjustments | Total | |||||||||||||
| REVENUES | $ | 38,987 | $ | 0 | $ | 38,987 | ||||||||||
| COST OF SALES | 25,382 | 0 | 25,382 | |||||||||||||
| GROSS MARGIN | 13,605 | 0 | 13,605 | |||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Meals and entertainment | 22,308 | 0 | 22,308 | |||||||||||||
| Marketing | 36,026 | 0 | 36,026 | |||||||||||||
| Outside services | 411,302 | 0 | 411,302 | |||||||||||||
| Payroll expense | 1,081,924 | 0 | 1,081,924 | |||||||||||||
| Stock-based compensation | 726,710 | 0 | 726,710 | |||||||||||||
| Office and computer | 81,022 | 0 | 81,022 | |||||||||||||
| Professional fees | 552,132 | 11,594 | 563,726 | |||||||||||||
| Rent | 210,378 | 0 | 210,378 | |||||||||||||
| Travel | 31,550 | 0 | 31,550 | |||||||||||||
| Charitable contributions | 5,000 | 0 | 5,000 | |||||||||||||
| Depreciation and amortization | 547,791 | 0 | 547,791 | |||||||||||||
| Other operating expenses | 161,650 | 62 | 161,712 | |||||||||||||
| TOTAL OPERATING EXPENSES | 3,867,793 | 11,656 | 3,879,449 | |||||||||||||
| LOSS FROM OPERATIONS | (3,854,188 | ) | (11,656 | ) | (3,865,844 | ) | ||||||||||
| LOSS BEFORE PROVISION FOR INCOME TAXES | (3,854,188 | ) | (11,656 | ) | (3,865,844 | ) | ||||||||||
| PROVISION FOR INCOME TAXES | 0 | 0 | 0 | |||||||||||||
| NET LOSS | $ | (3,854,188 | ) | $ | (11,656 | ) | $ | (3,865,844 | ) | |||||||
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 52,230,686 | 11,220,000 | 63,450,686 | |||||||||||||
| NET LOSS PER SHARE | $ | (0.07 | ) | $ | (0.00 | ) | $ | (0.07 | ) | |||||||
See accompanying notes to the Pro Forma financial statements.
| 6 |
UBIQUITY BROADCASTING CORPORATION
UBIQUITY BROADCASTING CORPORATION (FORMERLY FERMO GROUP, INC.)
NOTES TO THE PRO FORMA ADJUSTMENTS
a) 3-to-1 forward stock split of Ubiquity Broadcasting Corp. (formerly Fermo Group, Inc.) common stock
| 7 |