Attached files
| file | filename |
|---|---|
| 8-K/A - AMENDMENT NO.1 TO CURRENT REPORT - SITO MOBILE, LTD. | f8k070815a1_sitomobile.htm |
| EX-99.1 - AUDITED STATEMENTS OF FINANCIAL POSITION - SITO MOBILE, LTD. | f8k070815a1ex99i_sito.htm |
| EX-23.1 - CONSENT OF PMB HELIN DONOVAN, LLP - SITO MOBILE, LTD. | f8k070815a1ex23i_sito.htm |
| EX-99.2 - UNAUDITED STATEMENTS OF FINANCIAL POSITION - SITO MOBILE, LTD. | f8k070815a1ex99ii_sito.htm |
Exhibit 99.3
| SITO MOBILE, LTD. | |||||
|
PRO FORMA UNAUDITED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2015 | |||||
| SITO Mobile | Hipcricket | Adjustments | Combined | |||||||||||||
| Current Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 2,787,249 | $ | - | $ | (1,300,000 | ) | [A] | $ | 1,487,249 | ||||||
| Accounts receivable, net – current portion | 4,206,799 | 1,600,739 | 5,807,538 | |||||||||||||
| Prepaid expenses | 383,599 | 75,266 | 458,865 | |||||||||||||
| Total current assets | 7,377,647 | 1,676,005 | (1,300,000 | ) | 7,753,652 | |||||||||||
| Other assets: | ||||||||||||||||
| Property and equipment, net | 516,357 | 72,815 | (52,815 | ) | [A] | 536,357 | ||||||||||
| Accounts receivable, net | 225,000 | - | - | 225,000 | ||||||||||||
| Capitalized software development costs, net | 1,152,909 | - | 970,000 | [A] | 2,122,909 | |||||||||||
| Patents | 403,589 | - | 403,589 | |||||||||||||
| Patent application costs | 845,569 | - | 845,569 | |||||||||||||
| Trade name | - | 2,222,667 | (2,222,667 | ) | [A] | - | ||||||||||
| Customer relationships | - | - | 980,000 | [A] | 980,000 | |||||||||||
| Software license | 831,000 | - | - | 831,000 | ||||||||||||
| Other assets including security deposits | 83,576 | - | - | 83,576 | ||||||||||||
| Deferred loan costs, net | 107,320 | - | - | 107,320 | ||||||||||||
| Goodwill | 4,549,928 | - | 1,874,297 | [A] | 6,424,225 | |||||||||||
| Total assets | $ | 16,092,895 | $ | 3,971,487 | $ | 248,815 | $ | 20,313,197 | ||||||||
Notes
| [A] | To record the acquisition of the Hipcricket Inc. mobile advertising business on July 8, 2015 with a pro forma effective date of October 1, 2013. The Company paid $1,300,000 in cash and issued to Hipcricket 620,560 shares of the Company’s common stock (the “Shares”) for the all rights in, to contracts with Hipcricket’s mobile advertising customers, customer lists and records as well as certain intellectual assets and properties used in Hipcricket’s mobile advertising business. The Company did not acquire the Hipcricket trade name nor assume any Hipcricket liabilities. The Shares are valued at $2,544,297, based on the $4.10 per share closing price of the Company’s common stock on July 8, 2015. Total purchase consideration, consisting of the cash paid and the Shares, was $3,844,297. |
| SITO MOBILE, LTD. | |||||
|
PRO FORMA UNAUDITED CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2015 | |||||
| SITO Mobile | Hipcricket | Adjustments | Combined | |||||||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable | $ | 1,853,610 | $ | 6,780,537 | $ | (6,780,537 | ) | [A] | $ | 1,853,610 | ||||||
| Accrued expenses | 656,340 | 346,200 | (346,200 | ) | [A] | 656,340 | ||||||||||
| Deferred licensing revenue | 875,883 | 209,203 | (209,203 | ) | [A] | 875,883 | ||||||||||
| Accrued compensation – related party | 320,571 | - | - | 320,571 | ||||||||||||
| Note payable, net - current portion | 2,631,564 | - | - | 2,631,564 | ||||||||||||
| Current portion of capital lease obligation | 19,997 | - | - | 19,997 | ||||||||||||
| Total current liabilities | 6,357,965 | 7,335,940 | (7,335,940 | ) | 6,357,965 | |||||||||||
| Long-term liabilities | ||||||||||||||||
| Long-term portion of capital lease obligation | 7,830 | - | - | 7,830 | ||||||||||||
| Note payable, net | 6,380,787 | - | - | 6,380,787 | ||||||||||||
| Total long-term liabilities | 6,388,617 | - | 6,388,617 | |||||||||||||
| Total liabilities | 12,746,582 | 7,335,940 | (7,335,940 | ) | 12,746,582 | |||||||||||
| Stockholders’ equity: | ||||||||||||||||
| Preferred stock | - | - | - | - | ||||||||||||
| Common stock | 15,721 | - | 621 | [A] | 16,342 | |||||||||||
| Additional paid-in capital | 139,652,245 | - | 4,219,681 | [A] | 143,871,926 | |||||||||||
| Accumulated deficit | (136,321,653 | ) | (3,364,453 | ) | 3,364,453 | [A] | (136,321,653 | ) | ||||||||
| Total stockholders’ equity | 3,346,313 | (3,364,453 | ) | 7,584,755 | 7,566,615 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 16,092,895 | $ | 3,971,487 | $ | 248,815 | $ | 20,313,197 | ||||||||
| 2 |
| SITO MOBILE, LTD. | |||||
|
PRO FORMA UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE NINE MONTHS ENDED JUNE 30, 2015 | |||||
| SITO Mobile | Hipcricket | Adjustments | Combined | |||||||||||||
| Revenue | ||||||||||||||||
| Wireless applications | $ | 5,816,395 | $ | - | $ | - | $ | 5,816,395 | ||||||||
| Licensing and royalties | 408,120 | - | - | 408,120 | ||||||||||||
| Media placement | 5,070,619 | 5,563,704 | - | 10,634,323 | ||||||||||||
| 11,295,134 | 5,563,704 | - | 16,858,838 | |||||||||||||
| Cost of Sales | 4,844,832 | 3,025,315 | - | 7,870,147 | ||||||||||||
| Gross Profit | 6,450,302 | 2,538,389 | - | 8,988,691 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| General and administrative (including stock based compensation) | 3,984,537 | 1,370,272 | - | 5,354,809 | ||||||||||||
| Compensation expense (including stock based compensation)* | 2,880,210 | 6,574,850 | - | 9,455,060 | ||||||||||||
| Depreciation and amortization | 210,639 | 45,772 | - | 256,411 | ||||||||||||
| Research and development | 35,225 | - | - | 35,225 | ||||||||||||
| Total operating expenses | 7,110,611 | 7,990,894 | - | 15,101,505 | ||||||||||||
| Loss from operations | (660,309 | ) | (5,452,505 | ) | - | (6,112,814 | ) | |||||||||
| Other Income (Expenses) | ||||||||||||||||
| Interest expense | (1,306,136 | ) | (152,511 | ) | - | (1,458,647 | ) | |||||||||
| Interest income | 54,323 | - | - | 54,323 | ||||||||||||
| Other expense | (38,922 | ) | - | (38,922 | ) | |||||||||||
| Total other income (expense) | (1,251,813 | ) | (191,433 | ) | - | (1,443,246 | ) | |||||||||
| Net loss before income taxes | (1,912,122 | ) | (5,643,938 | ) | - | (7,556,060 | ) | |||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss | $ | (1,912,122 | ) | $ | (5,643,938 | ) | $ | - | $ | (7,556,060 | ) | |||||
| Basic and diluted loss per share | $ | (0.12 | ) | - | - | $ | (0.47 | ) | ||||||||
| Weighted average shares outstanding | 15,365,638 | - | 620,560 | [A] | 15,986,198 | |||||||||||
| 3 |
| SITO MOBILE, LTD. | |||||
|
PRO FORMA UNAUDITED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 2014 | |||||
| SITO Mobile | Hipcricket | Adjustments | Combined | |||||||||||||
| Current Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 620,185 | $ | - | $ | (1,300,000 | ) [A] | $ | (679,815 | ) | ||||||
| Accounts receivable, net – current portion | 2,443,308 | 3,846,906 | - | 6,290,214 | ||||||||||||
| Prepaid expenses | 233,541 | 160,177 | - | 393,718 | ||||||||||||
| Total current assets | 7,377,647 | 4,007,083 | (1,300,000 | ) | 6,004,117 | |||||||||||
| Other assets: | ||||||||||||||||
| Property and equipment, net | 236,706 | 150,829 | (130,829 | ) [A] | 256,706 | |||||||||||
| Accounts receivable, net | 450,000 | - | - | 450,000 | ||||||||||||
| Capitalized software development costs, net | 639,416 | - | 970,000 | [A] | 1,609,416 | |||||||||||
| Patents | 447,427 | - | - | 447,427 | ||||||||||||
| Patent application costs | 845,569 | - | - | 845,569 | ||||||||||||
| Trade name | - | 2,222,667 | (2,222,667 | ) [A] | - | |||||||||||
| Customer relationships | - | - | 980,000 | [A] | 980,000 | |||||||||||
| Software license | 831,000 | - | - | 831,000 | ||||||||||||
| Other assets including security deposits | 113,291 | - | - | 113,291 | ||||||||||||
| Goodwill | 3,482,884 | - | 1,874,297 | [A] | 5,357,181 | |||||||||||
| Total assets | $ | 10,106,768 | $ | 6,380,579 | $ | 170,801 | $ | 16,658,148 | ||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable | $ | 1,651,805 | 5,328,738 | $ | (5,328,738 | ) [A] | $ | 1,651,805 | ||||||||
| Accrued expenses | 501,122 | 1,258,579 | (1,258,579 | ) [A] | 501,122 | |||||||||||
| Deferred revenue | 378,257 | 754,568 | (754,568 | ) [A] | 378,257 | |||||||||||
| Accrued compensation – related party | 598,592 | - | - | 598,592 | ||||||||||||
| Convertible debentures – related party | 643,973 | - | - | 643,973 | ||||||||||||
| Convertible debentures – unrelated parties | 3,646,926 | - | - | 3,646,926 | ||||||||||||
| Current portion of capital lease obligation | 16,661 | - | - | 16,661 | ||||||||||||
| Total current liabilities | 7,437,336 | 7,341,885 | (7,341,885 | ) | 7,437,336 | |||||||||||
| Long-term portion of capital lease obligation | 12,718 | - | - | 12,718 | ||||||||||||
| Total liabilities | 7,450,054 | 7,341,885 | (7,341,885 | ) | 7,450,054 | |||||||||||
| Stockholders’ equity: | ||||||||||||||||
| Preferred stock | - | - | - | - | ||||||||||||
| Common stock | 15,073 | - | 621 | [A] | 15,694 | |||||||||||
| Additional paid-in capital | 137,051,172 | - | 6,550,759 | [A] | 143,601,931 | |||||||||||
| Accumulated deficit | (134,409,531 | ) | (961,306 | ) | 961,306 | [A] | (134,409,531 | ) | ||||||||
| Total stockholders’ equity (deficit) | 2,656,714 | (961,306 | ) | 7,512,686 | 9,208,094 | |||||||||||
| Total liabilities and stockholders’ equity | $ | 10,106,768 | 6,380,579 | $ | 170,801 | $ | 16,658,148 | |||||||||
| 4 |
| SITO MOBILE, LTD. | |||||
|
PRO FORMA UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED SEPTEMBER 30, 2014 | |||||
| SITO Mobile | Hipcricket | Adjustments | Combined | |||||||||||||
| Revenue | ||||||||||||||||
| Wireless applications | $ | 8,196,761 | $ | - | $ | - | $ | 8,196,761 | ||||||||
| Licensing and royalties | 916,438 | - | - | 916,438 | ||||||||||||
| Media placement | 758,359 | 15,348,930 | - | 16,107,289 | ||||||||||||
| 9,871,558 | 15,348,930 | - | 25,220,488 | |||||||||||||
| Cost of Sales | 3,589,879 | 9,238,136 | - | 12,828,015 | ||||||||||||
| Gross Profit | 6,281,679 | 6,110,794 | - | 12,392,473 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| General and administrative (including stock based compensation) | 5,041,519 | 2,563,660 | - | 7,605,179 | ||||||||||||
| Compensation expense (including stock based compensation) | 4,212,932 | 9,466,639 | - | 13,679,571 | ||||||||||||
| Depreciation and amortization | 729,455 | 73,743 | - | 803,198 | ||||||||||||
| Research and development | 58,829 | - | - | 58,829 | ||||||||||||
| Total operating expenses | 10,042,735 | 12,104,042 | - | 22,146,777 | ||||||||||||
| Loss from operations | (3,761,056 | ) | (5,993,248 | ) | - | (9,754,304 | ) | |||||||||
| Other Income (Expenses) | ||||||||||||||||
| Interest expense | (749,458 | ) | (136,954 | ) | - | (886,412 | ) | |||||||||
| Restructuring costs | - | (461,563 | ) | - | (461,563 | ) | ||||||||||
| Impairment of goodwill and trade name | - | (18,168,176 | ) | - | (18,168,176 | |||||||||||
| Other expense | - | (14,598 | ) | - | (14,598 | ) | ||||||||||
| Total other income (expense) | (749,458 | ) | (18,781,291 | ) | - | (19,530,749 | ) | |||||||||
| Net loss before income taxes | (4,510,514 | ) | (24,774,539 | ) | - | (29,285,053 | ) | |||||||||
| Provision for income taxes | - | - | - | - | ||||||||||||
| Net loss | $ | (4,510,514 | ) | $ | (24,774,539 | ) | $ | - | $ | (29,774,539 | ) | |||||
| Basic and diluted loss per share | $ | (0.31 | ) | - | - | $ | (1.99 | ) | ||||||||
| Weighted average shares outstanding | 14,374,967 | - | 620,560 | [A] | 14,995,527 | |||||||||||
5