BOSTON OMAHA Corp - FORM 8-K/A - EX-99.2 - EXHIBIT 99.2

Attached files

file	filename
8-K/A - 8-K/A - BOSTON OMAHA Corp	boston8ka08262016.htm
EX-99.3 - EXHIBIT 99.3 - BOSTON OMAHA Corp	ex993.htm
EX-99.1 - EXHIBIT 99.1 - BOSTON OMAHA Corp	ex991.htm

Exhibit 99.2

FAIR OUTDOOR, LLC

(a Florida Limited Liability Company)

Unaudited Financial Statements

For the Six Months Ended June 30, 2015

FAIR OUTDOOR, LLC
(a Florida Limited Liability Company)

Balance Sheets
Unaudited

ASSETS

	June 30,			December 31,
	2015			2014

Current Assets:
Cash	$	49,410		$	12,495
Restricted cash		25,000			10,000
Accounts receivable		23,198			29,321
Accounts receivable, related party		-			21,000
Prepaid expense		-			645

Total Current Assets		97,608			73,461

Property and Equipment:
Stuctures and displays		413,224			413,224
Accumulated depreciation		(29,844	)		(16,070	)

Total Property and Equipment, net		383,380			397,154

Total Assets	$	480,988		$	470,615


LIABILITIES AND MEMBERS' EQUITY

Current Liabilities:
Accounts payable	$	9,875		$	4,603
Deferred revenue		23,478			11,114
Current portion of note payable, member		55,700			53,923

Total Current Liabilities		89,053			69,640

Long-term debt, member		316,303			344,605

Total Liabilities		405,356			414,245

Members' Equity		75,632			56,370

Total Liabilities and Members' Equity	$	480,988		$	470,615

See accompanying notes to the unaudited financial statements

FAIR OUTDOOR, LLC
(a Florida Limited Liability Company)


Statements of Income and Members' Equity
Unaudited


	For the Three Months Ended					For the Six Months Ended
	June 30,					June 30,
	2015			2014		2015			2014

Revenues:
Billboard rentals	$	78,139		$	25,654	$	170,284		$	25,654

Costs and Expenses:
Ground rents		27,759			-		71,834			-
Depreciation		6,887			2,296		13,774			2,296
Repairs and maintenance		-			-		-			4,896
General and administrative		1,414			469		2,193			608

Total Costs and Expenses		36,060			2,765		87,801			7,800

Net Income from Operations		42,079			22,889		82,483			17,854

Other Income (Expense):
Interest expense		(6,816	)		-		(13,221	)		-

Net Income		35,263			22,889		69,262			17,854

Members' Equity,
Beginning of Period		90,369			-		56,370			-
Distributions to members		(50,000	)		-		(50,000	)		-

Members' Equity, End of Period	$	75,632		$	22,889	$	75,632		$	17,854

See accompanying notes to the unaudited financial statements

FAIR OUTDOOR, LLC
(a Florida Limited Liability Company)

Statement of Cash Flows
Unaudited

	For the Six Months Ended
	June 30,
	2015			2014

Cash Flows from Operating Activities:
Net Income	$	69,262		$	17,854
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation		13,774			2,296
Changes in operating assets and liabilities:
Accounts receivable		27,123			(40,000	)
Prepaid expense		645			(1,257	)
Accounts payable		5,272			-
Deferred revenue		12,364			14,346

Net Cash Provided (Used) in Operating Activities		128,440			(6,761	)

Cash Flows from Investing Activities:
Transfers to restricted cash		(15,000	)		-

Net Cash Used in Investing Activities		(15,000	)		-


Cash Flows from Financing Activities:
Advances from member		-			6,761
Repayments on note payable, member		(26,525	)		-
Distributions to members		(50,000	)		-

Net Cash (Used) Provided in Financing Activities		(76,525	)		6,761

Net Increase in Cash		36,915			-

Cash, Beginning of Period		12,495			-

Cash, End of Period	$	49,410		$	-

Interest Paid in Cash	$	13,221		$	-

Income Taxes Paid in Cash	$	-		$	-

See accompanying notes to the unaudited financial statements

FAIR OUTDOOR, LLC
(a Florida Limited Liability Company)


Statement of Cash Flows (Continued)

Schedules of Non-cash Financing Activities
Unaudited

	For the Six Months Ended
	June 30,
	2015		2014

Loan from member for purchase of structures and displays	$	-	$	413,224

See accompanying notes to the unaudited financial statements

FAIR OUTDOOR, LLC
(a Florida Limited Liability Company)

Notes to Unaudited Financial Statements

For the Six Months Ended June 30, 2015

NOTE 1. ORGANIZATION AND BACKGROUND

The accompanying unaudited interim financial statements have been prepared in connection with Fair Outdoor LLC's sale of outdoor advertising assets to Link Media Florida, LLC ("LMF"), a wholly-owned subsidiary of Boston Omaha Corporation, and to comply with the rules and regulations of the Securities and Exchange Commission ("SEC") for inclusion by Boston Omaha Corporation in its current report on Form 8-K/A.

Fair Outdoor, LLC, ("the Company") was organized on September 12, 2013 and began operations on February 10. 2014. The Company's operations include the ownership and leasing of billboards located on the Florida State Fairgrounds.

For the six months ended June 30, 2015, 66% of the Company's gross revenue was generated from three advertisers. Revenue from an advertiser related to one of the Company's members was $1,714 and represented 1% of revenues.

The accompanying unaudited interim financial statements of Fair Outdoor, LLC have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended December 31, 2014 included elsewhere in this Form 8-K/A. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the interim financial statements which would substantially duplicate the disclosures contained in the audited financial statements for the year ended December 31, 2014 included elsewhere in this Form 8-K/A have been omitted.

NOTE 2. LONG-TERM DEBT

As of June 30, 2015, long-term debt consists of an installment note payable to a member, bearing interest at 6.5% per annum. The note is payable in monthly installments of $6,520, is unsecured and due March, 2021.

As of June 30, 2015 long-term debt is as follows:


	June 30,			December 31,
	2015			2014

Note payable	$	372,003		$	398,528
Less current portion		(55,700	)		(53,923	)

Long-term debt	$	316,303		$	344,605

NOTE 2. LONG-TERM DEBT (Continued)

Maturities of long-term debt are as follows:


June 30, 2016	$	55,700
June 30, 2017		59,430
June 30, 2018		63,410
June 30, 2019		67,657
June 30, 2020		72,188
Thereafter		53,618

	$	372,003

NOTE 3. FUTURE MINIMUM LEASE PAYMENTS

The Company's lease for its billboard location has a fifteen year term expiring on September 1, 2028. Monthly lease payments are based upon 50% of net revenue from the billboards. Net revenue is defined in the lease operating agreement as the excess of revenue after the deduction of certain expenses and a replacement reserve contribution from gross revenue. Deductions from gross revenue consist of advertising agency commissions, limited to 15% of monthly gross revenue, maintenance, insurance, and a $5,000 contribution to the LED replacement reserve. Costs in excess of monthly revenue may be deducted from revenue of later months.

Commencing on October 1, 2014, a minimum lease payment of $2,500 per month is due to the lessor, regardless of whether the sign's net revenues support such payment. Contingent rents for the three months and six months ended June 30, 2015 were $56,834 and $20,259, respectively.

Future minimum lease payments are as follows:

2016	$	30,000
2017		30,000
2018		30,000
2019		30,000
2020		30,000
Thereafter		245,000

	$	395,000

NOTE 4. RELATED PARTIES

As of June 30, 2015, the Company had generated $1,714 in revenues and $2,786 in deferred revenues from an advertising agency related to one of the Company's members. At June 30, 2015, the balance of accounts receivable from the related party was zero.

During May 2015, the Company made distributions to its members in the amount of $50,000.

NOTE 5. SUBSEQUENT EVENTS

On July 1, 2015, the Company executed an operating lease agreement with the FSFA for a second billboard location. The agreement expires on July 2, 2030 and is essentially the same as the agreement entered into during September, 2013. The minimum monthly payment provision commences on February 1, 2016 in the amount of $1,200 per month.

On July 23, 2015, the Company sold its two digital billboard displays and related personal property to Link Media Florida, LLC for a gross sales price of $2,000,000. Adjustments to the gross sales price were $54,939, resulting in a cash sales price of $1,945,061.

During July 2015, the Company made distributions to its members in the amount of $36,426.

BOSTON OMAHA Corp - FORM 8-K/A - EX-99.2 - EXHIBIT 99.2 - August 30, 2016

Attached files

BOSTON OMAHA Corp Reports