Attached files
| file | filename |
|---|---|
| 8-K/A - FORM 8-K/A - DETERMINE, INC. | sltc20151014_8ka.htm |
| EX-99.1 - EXHIBIT 99.1 - DETERMINE, INC. | ex99-1.htm |
| EX-23.1 - EXHIBIT 23.1 - DETERMINE, INC. | ex23-1.htm |
| EX-99.2 - EXHIBIT 99.2 - DETERMINE, INC. | ex99-2.htm |
Exhibit 99.3
Selectica, Inc.
Unaudited Pro Forma Condensed Combined Consolidated Statements of Operations
(in thousands, except per share data)
|
|
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Historical Statement of Operations Information |
Pro Forma |
||||||||||||||||
|
Selectica, Inc. |
b-pack, SAS |
Adjustments |
Notes |
Combined |
|||||||||||||
|
Twelve Months Ended |
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Revenues: |
March 31, 2015 |
December 31, 2014 |
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|
Recurring revenues |
$ | 16,207 | $ | 2,876 | (201 | ) |
(2 |
) | $ | 18,882 | |||||||
|
Non-recurring revenues |
4,670 | 3,180 | (41 | ) | 7,809 | ||||||||||||
|
Total revenues |
20,877 | 6,056 | (242 | ) | 26,751 | ||||||||||||
|
Cost of revenues: |
|||||||||||||||||
|
Cost of recurring revenues |
5,026 | 558 | 352 |
(1 |
) | 5,936 | |||||||||||
|
Cost of non-recurring revenues |
7,277 | 1,350 | 8,627 | ||||||||||||||
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Total cost of revenues |
12,303 | 1,908 | 352 | 14,563 | |||||||||||||
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Gross profit: |
|||||||||||||||||
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Recurring gross profit |
11,181 | 2,318 | 12,946 | ||||||||||||||
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Non-recurring gross profit / (loss) |
(2,607 | ) | 1,830 | (818 | ) | ||||||||||||
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Total gross profit |
8,574 | 4,148 | 12,128 | ||||||||||||||
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Operating expenses: |
|||||||||||||||||
|
Research and development |
3,713 | 1,793 | 5,506 | ||||||||||||||
|
Sales and marketing |
12,697 | 611 | 388 |
(1 |
) | 13,696 | |||||||||||
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General and administrative |
8,788 | 1,400 | - | 10,188 | |||||||||||||
|
Total operating expenses |
25,198 | 3,804 | 388 | 29,390 | |||||||||||||
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Income / (loss) from operations |
(16,624 | ) | 345 | (982 | ) | (17,261 | ) | ||||||||||
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Other income (expense), net |
(72 | ) | 43 | (29 | ) | ||||||||||||
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Income / (loss) before provision for income taxes |
(16,696 | ) | 388 | (982 | ) | (17,290 | ) | ||||||||||
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Benefit / (provision) for income taxes |
2,950 | (123 | ) | 2,827 | |||||||||||||
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Net income/(loss) |
$ | (13,746 | ) | $ | 265 | $ | (982 | ) | $ | (14,463 | ) | ||||||
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Net income attributed to non-controlling interest |
- | 50 | |||||||||||||||
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Net income / (loss) attributed to Selectica, Inc |
$ | (13,746 | ) | $ | 215 | $ | (982 | ) | $ | (14,463 | ) | ||||||
|
Redeemable preferred stock accretion |
3,691 | - | 3,513 | ||||||||||||||
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Net income / (loss) attributable to common stockholders |
$ | (17,437 | ) | $ | 215 | $ | (982 | ) | $ | (17,976 | ) | ||||||
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Basic and diluted net loss per common share attributable to common stockholders |
$ | (1.89 | ) | $ | - | $ | (1.99 | ) | |||||||||
|
Weighted-average shares of common stock used in computing basic and diluted net loss per share attributable to common stockholders |
7,277 | - | 7,277 | ||||||||||||||
(1) To recognize amortization expense related to identified intangible assets recognized as part of the purchase price allocation.
(2) To reduce revenue that is equivalent to the monthly amortization of deferred revenue adjustment.
Selectica, Inc.
Unaudited Pro Forma Condensed Combined Consolidated Statements of Operations
|
|
||||||||||||||||||||
| (in thousands, except per share data) |
Historical Statement of Operations Information |
Pro Forma |
||||||||||||||||||
|
Selectica, Inc. |
b-pack, SAS |
Adjustments |
Notes |
Combined |
||||||||||||||||
|
Three Months Ended |
||||||||||||||||||||
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Revenues: |
June 30, 2015 |
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Recurring revenues |
$ | 5,095 | $ | 1,249 | (2 | ) | $ | 6,344 | ||||||||||||
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Non-recurring revenues |
1,120 | 926 | 2,046 | |||||||||||||||||
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Total revenues |
6,215 | 2,175 | 8,390 | |||||||||||||||||
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Cost of revenues: |
||||||||||||||||||||
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Cost of recurring revenues |
1,430 | 379 | 88 | (1 | ) | 1,897 | ||||||||||||||
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Cost of non-recurring revenues |
1,477 | 540 | 2,017 | |||||||||||||||||
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Total cost of revenues |
2,907 | 919 | 88 | 3,913 | ||||||||||||||||
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Gross profit: |
||||||||||||||||||||
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Recurring gross profit |
3,665 | 870 | 4,447 | |||||||||||||||||
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Non-recurring gross profit / (loss) |
(357 | ) | 386 | 29 | ||||||||||||||||
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Total gross profit |
3,308 | 1,256 | 4,477 | |||||||||||||||||
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Operating expenses: |
||||||||||||||||||||
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Research and development |
588 | 998 | 1,586 | |||||||||||||||||
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Sales and marketing |
3,442 | 632 | 97 | (1 | ) | 4,171 | ||||||||||||||
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General and administrative |
2,072 | 335 | (237 | ) | 2,170 | |||||||||||||||
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Total operating expenses |
6,102 | 1,965 | (140 | ) | 7,927 | |||||||||||||||
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Loss from operations |
(2,794 | ) | (709 | ) | 52 | (3,451 | ) | |||||||||||||
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Other income (expense), net |
(148 | ) | 7 | (141 | ) | |||||||||||||||
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Loss before provision for income taxes |
(2,942 | ) | (702 | ) | 52 | (3,592 | ) | |||||||||||||
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Provision for income taxes |
- | (179 | ) | (179 | ) | |||||||||||||||
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Net loss |
$ | (2,942 | ) | $ | (881 | ) | $ | 52 | $ | (3,771 | ) | |||||||||
|
Net income attributed to non-controlling interest |
- | 82 | ||||||||||||||||||
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Net loss attributed to Selectica, Inc |
$ | (2,942 | ) | $ | (799 | ) | $ | 52 | $ | (3,771 | ) | |||||||||
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Redeemable preferred stock accretion |
1,000 | - | 3,513 | |||||||||||||||||
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Net loss attributable to common stockholders |
$ | (3,942 | ) | $ | (799 | ) | $ | 52 | $ | (7,284 | ) | |||||||||
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Basic and diluted net loss per common share attributable to common stockholders |
$ | (0.32 | ) | $ | - | $ | (0.41 | ) | ||||||||||||
|
Weighted-average shares of common stock used in computing basic and diluted net loss per share attributable to common stockholders |
9,182 | - | 9,182 | |||||||||||||||||
(1) To recognize amortization expense related to identified intangible assets recognized as part of the purchase price allocation.
(2) To reduce revenue that is equivalent to the monthly amortization of deferred revenue adjustment.
Selectica, Inc. Unaudited Pro Forma Financial Information
Unaudited Pro Forma Condensed Combined Consolidated Balance Sheets
June 30, 2015
|
Historical Statement of |
||||||||||||||||||||
|
(in thousands) |
Operations Information |
Pro Forma |
||||||||||||||||||
|
Selectica, Inc. |
b-pack, SAS |
Adjustments |
Notes |
Combined |
||||||||||||||||
|
ASSETS |
||||||||||||||||||||
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Current assets |
||||||||||||||||||||
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Cash and cash equivalents |
$ | 11,262 | $ | 748 | $ | (1,056 | ) | (1 | ) | $ | 10,954 | |||||||||
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Accounts receivable, net of allowance for doubtful accounts |
4,861 | 1,549 | - | 6,410 | ||||||||||||||||
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Restricted cash |
34 | - | - | 34 | ||||||||||||||||
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Prepaid expenses and other current assets |
1,561 | 117 | - | 1,678 | ||||||||||||||||
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Total current assets |
17,718 | 2,414 | (1,056 | ) | 19,076 | |||||||||||||||
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Property and equipment, net |
224 | 54 | - | 278 | ||||||||||||||||
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Capitalized software |
2,493 | - | - | 2,493 | ||||||||||||||||
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Other assets |
495 | 267 | - | 762 | ||||||||||||||||
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Goodwill |
7,702 | - | 7,629 | (2 | ) | 15,331 | ||||||||||||||
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Intangibles, net |
6,104 | - | 3,310 | (3 | ) | 9,414 | ||||||||||||||
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Deferred income tax assets |
- | 246 | - | 246 | ||||||||||||||||
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Total assets |
$ | 34,736 | $ | 2,981 | $ | 9,883 | $ | 47,600 | ||||||||||||
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LIABILITIES AND EQUITY |
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Current liabilities |
||||||||||||||||||||
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Credit facility |
$ | 6,857 | $ | 25 | $ | 6,882 | ||||||||||||||
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Accounts payable |
1,593 | 260 | 1,853 | |||||||||||||||||
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Accrued payroll and related liabilities |
1,320 | 868 | 2,188 | |||||||||||||||||
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Other accrued liabilities |
1,708 | 255 | - | (4 | ) | 1,963 | ||||||||||||||
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COFACE liability, current |
- | 433 | 433 | |||||||||||||||||
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Deferred tax libility |
- | - | 1,155 | 1,155 | ||||||||||||||||
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Deferred revenue |
8,233 | 1,110 | (241 | ) | (5 | ) | 9,102 | |||||||||||||
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Total current liabilities |
19,711 | 2,951 | 914 | 23,576 | ||||||||||||||||
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Long-term deferred revenue |
15 | - | 15 | |||||||||||||||||
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Convertible note, net of debt discount |
2,905 | - | 2,905 | |||||||||||||||||
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Other long-term liabilities |
162 | 45 | 207 | |||||||||||||||||
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Total liabilities |
22,793 | 2,996 | 914 | 26,703 | ||||||||||||||||
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Equity (deficit): |
||||||||||||||||||||
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Common stock |
5 | 696 | (696 | ) | (6 | ) | 5 | |||||||||||||
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Additional paid-in capital |
303,626 | 67 | 7,888 | (6 | ) | 311,581 | ||||||||||||||
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Accumulated other comprehensive loss |
- | (267 | ) | (267 | ) | |||||||||||||||
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Treasury stock at cost |
(472 | ) | - | - | (472 | ) | ||||||||||||||
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Accumulated deficit |
(291,216 | ) | (958 | ) | 2,105 | (5 | ),(6) | (290,069 | ) | |||||||||||
|
Total stockholders’ equity |
11,943 | (462 | ) | 9,298 | 20,778 | |||||||||||||||
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Non-controlling interest |
- | 447 | (328 | ) | (4 | ) | 119 | |||||||||||||
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Total equity |
11,943 | (15 | ) | 8,969 | 20,897 | |||||||||||||||
|
Total liabilities and equity |
$ | 34,736 | $ | 2,981 | $ | 9,883 | $ | 47,600 | ||||||||||||
(1) To reflect the use of the Company’s cash on hand to fund a portion of the acquisition and to eliminate cash at b-pack excluded from the acquisition.
(2) To record preliminary goodwill resulting from the b-pack acquisition.
(3) To record identifiable intangible assets related to the b-pack acquisition. The identifiable intangible assets attributable to the acquisition are comprised of the following:
|
Estimated Fair Value |
Estimated Useful life (Years) |
Estimated amortization expense |
||||||||||
|
Customer Relationship |
$ | 1,550 | 4 | $ | 388 | |||||||
|
Developed Technology |
1,760 | 5 | $ | 352 | ||||||||
| $ | 3,310 | $ | 740 | |||||||||
(4) To recognize non-controlling interest for the portion of equity ownership in a subsidiary not attributable to Selectica, Inc.
(5) Deferred Revenue adjustment at the acquisition date.
(6) To eliminate b-pack’s historical equity balances as of July 30, 2015 and to record Issuance of common stock to b-pack Founders at July 31, 2015 - 1,841,244 Common Stock, par value $0.0001 at $4.32
(10) The purchase price is calculated as follows (dollars in thousands, except number of shares and per share amount):
|
Cash paid |
$ | 1,056 | ||
|
Common stock issued |
1,841,244 | |||
|
SLTC common stock strike price |
$ | 4.32 | ||
|
Total stock value |
$ | 7,954 | ||
|
Total purchase price |
9,010 |
b-pack, Inc.
Unaudited preliminary Balance Sheet as of July 30, 2015
|
ASSETS |
July 31, 2015 |
|||
|
Current assets |
||||
|
Cash and cash equivalents |
$ | 653,017 | ||
|
Accounts receivable |
2,076,916 | |||
|
Prepaid expenses and other current assets |
104,625 | |||
|
Deferred income tax |
258,958 | |||
|
Total current assets |
3,093,516 | |||
|
Goodwill |
7,629,168 | |||
|
Intangibles |
3,310,000 | |||
|
Other assets |
261,065 | |||
|
Total assets |
$ | 14,293,749 | ||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
|
Current liabilities |
||||
|
Accounts payable |
$ | (288,659 | ) | |
|
Accrued payroll and related benefits |
(1,028,419 | ) | ||
|
COFACE loan |
(427,447 | ) | ||
|
Deferred revenue |
(868,000 | ) | ||
|
Accrued expenses |
(208,969 | ) | ||
|
VAT payable |
(270,571 | ) | ||
|
Deferred tax liability |
(1,155,041 | ) | ||
|
Total current liabilities |
$ | (4,247,106 | ) | |
|
Non controlling interest |
119,000 | |||
|
Net Assets Acquired |
$ | 10,046,643 | ||
|
Purchase Price Consideration |
||||
|
Cash paid |
$ | 1,056,017 | ||
|
Common stock issued |
$ | 7,954,174 | ||
|
Total purchase price |
$ | 9,010,191 | ||
|
Acquired |
99 | % | ||