SPINDLE, INC. - FORM 8-K/A - EX-99 - UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS - October 10, 2013

Attached files

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8-K/A - AMENDED CURRENT REPORT - SPINDLE, INC.spdl_8k.htm
EX-99.1 - AUDITED FINANCIAL STATEMENTS - SPINDLE, INC.spdl_ex991.htm
EX-23.1 - AUDITOR CONSENT - SPINDLE, INC.spdl_ex231.htm

Exhibit 99.2


Unaudited Pro Forma Condensed Financial Statements of the Company, after giving effect to the acquisition of MeNetwork for the fiscal year ended December 31, 2012.

 

Spindle, Inc.

Pro-Forma Consolidated Statement of Operations

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Spindle, Inc.

 

MeNetwork, Inc.

 

 

 

 

 

 

(Nevada Corp)

 

(Delaware Corp)

 

 

 

 

 

 

For the year ended

 

For the year ended

 

 Pro-Forma

 

Pro-Forma

 

 

December 31, 2012

 

December 31, 2012

 

 Adjustments

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

83,412

 

$

76,690

 

$

-

 

$

160,102

Cost of sales

 

 

19,701

 

 

40,111

 

 

 

 

 

59,812

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

63,711

 

 

36,579

 

 

-

 

 

100,290

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

51,567

 

 

60,603

 

 

-

 

 

112,170

Promotional and marketing

 

 

84,641

 

 

41,928

 

 

-

 

 

126,569

Consulting

 

 

492,410

 

 

54,537

 

 

-

 

 

546,947

Software and internet costs

 

 

38,686

 

 

-

 

 

-

 

 

38,686

Salaries, wages and benefits

 

 

964,742

 

 

229,456

 

 

-

 

 

1,194,198

Professional fees

 

 

588,910

 

 

65,314

 

 

-

 

 

654,224

Travel

 

 

73,674

 

 

71,046

 

 

-

 

 

144,720

Rent Expense

 

 

32,942

 

 

1,200

 

 

-

 

 

34,142

General and administrative expenses

 

 

45,041

 

 

20,958

 

 

-

 

 

65,999

Total expenses

 

 

2,372,613

 

 

545,042

 

 

-

 

 

2,917,655

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating (loss)

 

 

(2,308,902)

 

 

(508,463)

 

 

-

 

 

(2,817,365)

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

7,481

 

 

-

 

 

-

 

 

7,481

Financing costs

 

 

-

 

 

(19,140)

 

 

-

 

 

(19,140)

Interest expense

 

 

(18,940)

 

 

(496)

 

 

-

 

 

(19,436)

Total other expense

 

 

(11,459)

 

 

(19,636)

 

 

-

 

 

(31,095)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) before provision for income tax

 

 

(2,320,361)

 

 

(528,099)

 

 

-

 

 

(2,848,460)

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)

 

$

(2,320,361)

 

$

(528,099)

 

$

-

 

$

(2,848,460)





1




Spindle, Inc.

Pro-Forma Consolidated Statement of Operations

(unaudited)

 

 

 

 

 

 

 

 

 

Spindle, Inc.

 

MeNetwork, Inc.

 

 

 

 

 

(Nevada Corp)

 

(Delaware Corp)

 

 

 

 

 

The Six Months Ended

 

 Pro-Forma

 

Pro-Forma

 

June 30, 2013

 

 Adjustments

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

705,446

 

$

-

 

$

-

 

$

705,446

Cost of sales

 

232,535

 

 

-

 

 

 

 

 

232,535

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

472,911

 

 

-

 

 

-

 

 

472,911

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

46,922

 

 

-

 

 

-

 

 

46,922

Promotional and marketing

 

28,550

 

 

-

 

 

-

 

 

28,550

Consulting fees

 

358,161

 

 

-

 

 

-

 

 

358,161

Salaries, wages and benefits

 

814,751

 

 

-

 

 

-

 

 

814,751

Professional fees

 

413,467

 

 

-

 

 

-

 

 

413,467

General and administrative expenses

 

338,889

 

 

-

 

 

-

 

 

338,889

Total expenses

 

2,000,740

 

 

-

 

 

-

 

 

2,000,740

 

 

 

 

 

 

 

 

 

 

 

 

Net operating (loss)

 

(1,527,829)

 

 

-

 

 

-

 

 

(1,527,829)

 

 

 

 

 

 

 

 

 

 

 

 

Other expense:

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

1,934

 

 

-

 

 

-

 

 

1,934

Financing costs

 

(3,004)

 

 

-

 

 

-

 

 

(3,004)

Interest expense

 

(8,059)

 

 

-

 

 

-

 

 

(8,059)

Total other expense

 

(9,129)

 

 

-

 

 

-

 

 

(9,129)

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) before provision for income tax

 

(1,536,958)

 

 

-

 

 

-

 

 

(1,536,958)

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

-

 

 

-

 

 

-

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss)

$

(1,536,958)

 

$

-

 

$

-

 

$

(1,536,958)





2




SPINDLE, INC. (NEVADA CORPORATION) AND MENETWORK, INC. (DELWARE CORPORATION)

NOTES TO PRO-FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



1.  BASIS OF PRESENTATION FOR PRO-FORMA FINANCIAL STATEMENTS


On March 20, 2013, Spindle, Inc., a Nevada Corporation, (“SPDL”) acquired substantially all of the business assets of MeNetwork, Inc., a Delaware Corporation, (“MeNet”) in exchange for a total of 3,500,000 restricted shares of SPDL’s common stock.  The Company issued 2,750,000 shares upon closing of acquisition and the remaining 750,000 shares will be issued upon the earlier of a change in control or 180 days after closing.


Upon the closing of the share exchange with SPDL and MeNet, there will be no change in control and no change in the business of SPDL.  The acquisition will be treated as purchase and recorded at fair value.


The unaudited pro-forma condensed consolidated financial statements have been developed from the audited records of SPDL as of December 31, 2012 and the year then ended and the audited records of MeNet as of December 31, 2012 and the year then ended.


The unaudited pro-forma condensed consolidated balance sheet is based upon the historical financial statements of SPDL and MeNet.  The unaudited pro-forma condensed consolidated balance sheet is presented as if the acquisition had occurred at the beginning of the period.


The unaudited pro-forma condensed consolidated statement of operations is based upon the historical financial statements of SPDL and MeNet, after giving effect to the acquisition.  The unaudited pro-forma condensed consolidated statement of operations is presented as if the acquisition had occurred at the beginning of the period.



 








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SPINDLE, INC. Reports