BOSTON OMAHA Corp - FORM 8-K/A - EX-99.3 - EXHIBIT 99.3 - August 30, 2016

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EX-99.2 - EXHIBIT 99.2 - BOSTON OMAHA Corpex992.htm
EX-99.1 - EXHIBIT 99.1 - BOSTON OMAHA Corpex991.htm
Exhibit 99.3



BOSTON OMAHA CORPORATION
AND FAIR OUTDOOR, LLC

UNAUDITED PRO FORMA COMBINED BALANCE SHEET
AND
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS

JUNE 30, 2015
BOSTON OMAHA CORPORATION  
  
AND FAIR OUTDOOR, LLC   
  
 
UNAUDITED PRO FORMA COMBINED BALANCE SHEET         
  
                         
June 30, 2015
  
                         
ASSETS
  
                         
         
Pro Forma
          
Pro Forma
  
   
Boston Omaha
    
Adjustments
    
Notes
    
Combined
  
                         
Current Assets:
                        
  Cash
  
$
3,684,317
    
$
(1,945,061
)
    
(2)
 
  
$
1,739,256
  
  Prepaid expense
    
6,600
      
-
              
6,600
  
                                 
     Total Current Assets
    
3,690,917
      
(1,945,061
)
            
1,745,856
  
                                 
Property and Equipment:
                                
  Structures and displays
    
3,192,692
      
370,000
      
(2)
 
    
3,562,692
  
  Accumulated depreciation
    
(6,415
)
    
-
              
(6,415
)
                                 
     Total Property and Equipment, net
    
3,186,277
      
370,000
              
3,556,277
  
                                 
Other Assets:
                                
  Intangible assets
    
3,476,354
      
1,575,061
      
(2)
 
    
5,051,415
  
  Investment in unconsolidated affiliate
    
55,678
      
-
              
55,678
  
                                 
     Total Other Assets
    
3,532,032
      
1,575,061
              
5,107,093
  
                                 
     Total Assets
  
$
10,409,226
    
$
-
            
$
10,409,226
  
 
See accompanying notes to unaudited pro forma combined financial statements
2
BOSTON OMAHA CORPORATION  
  
AND FAIR OUTDOOR, LLC   
  
 
UNAUDITED PRO FORMA COMBINED BALANCE SHEET    
  
                     
June 30, 2015         
  
                     
LIABILITIES AND STOCKHOLDERS' EQUITY       
  
                     
         
Pro Forma
      
Pro Forma
  
   
Boston Omaha
    
Adjustments
  
Notes
  
Combined
  
                     
Current Liabilities:
                    
  Accounts payable and accrued expenses
  
$
370,246
    
$
-
      
$
370,246
  
  Accounts payable, stockholder
    
2,721
      
-
        
2,721
  
  Notes payable, stockholders
    
100,000
      
-
        
100,000
  
  Note payable, related party
    
135,494
      
-
        
135,494
  
  Accrued interest, stockholders
    
1,876
      
-
        
1,876
  
  Accrued interest, related party
    
2,739
      
-
        
2,739
  
                           
     Total Current Liabilities
    
613,076
      
-
        
613,076
  
                           
Stockholders' Equity:
                          
Preferred stock, $.001 par value, 3,000,000 shares authorized, 0 shares issued and outstanding
      -        -          -  
Common stock, $.001 par value, 18,000,000 shares authorized, 268,000 shares issued and outstanding
    
268
      
-
        
268
  
Class A common stock, $.001 par value, 12,000,000 shares authorized, 1,055,560 and 0 shares issued and outstanding, respectively
    
1,056
      
-
        
1,056
  
Additonal paid-in capital
    
10,563,993
      
-
        
10,563,993
  
Accumulated deficit
    
(769,167
)
    
-
        
(769,167
)
                           
Total Stockholders' Equity
    
9,796,150
      
-
        
9,796,150
  
                           
Total Liabilities and Stockholders' Equity
  
$
10,409,226
    
$
-
      
$
10,409,226
  
 
See accompanying notes to unaudited pro forma combined financial statements
3
BOSTON OMAHA CORPORATION  
  
AND FAIR OUTDOOR, LLC   
  
 
UNAUDITED PRO FORMA COMBINED STATEMENT OR OPERATIONS
  
                         
FOR THE SIX MONTHS ENDED JUNE 30, 2015
  
                         
                         
         
Pro Forma
          
Pro Forma
  
   
Boston Omaha
    
Adjustments
    
Notes
    
Combined
  
Revenues:
                        
  Consulting fees
  
$
9,700
    
$
-
          
$
9,700
  
  Billboard rentals
    
-
      
170,284
      
(2)
 
    
170,284
  
                                 
   Total Revenues
    
9,700
      
170,284
              
179,984
  
                                 
Costs and Expenses:
                                
  Professional fees
    
212,545
      
-
      
(2)
 
    
212,545
  
  Ground rents
    
-
      
71,834
      
(2)
 
    
71,834
  
  Depreciation and amortization
    
21,973
      
109,651
      
(2)
 
    
131,624
  
  Leased employees
    
6,662
      
-
              
6,662
  
  Contract services
    
4,400
      
-
              
4,400
  
  Travel and entertainment
    
1,877
      
-
              
1,877
  
  General and administrative
    
1,142
      
2,193
              
3,335
  
                                 
   Total Costs and Expenses
    
248,599
      
183,678
              
432,277
  
                                 
(Loss) Income from Operations
    
(238,899
)
    
(13,394
)
            
(252,293
)
                                 
Other Income (Expense):
                                
                               
  Equity in income (loss) of unconsolidated affiliate
    
8,414
      
-
              
8,414
  
  Interest expense
    
(16,303
)
    
(13,221
)
            
(29,524
)
                                 
(Loss) Income Before Income Tax
    
(246,788
)
    
(26,615
)
            
(273,403
)
                                 
Income Tax (Provision) Benefit
    
-
      
10,513
      
(3b)
 
    
10,513
  
                                 
Net (Loss) Income
  
$
(246,788
)
  
$
(16,102
)
          
$
(262,890
)
                                 
 
                                
Basic and Diluted Net (Loss) Income per share
    
(0.73
)
            
(3a)
 
    
(0.78
)
                                 
 
                                
Basic and Diluted Weighted Average Shares Outstanding
    
337,982
              
(3a)
 
    
337,982
  
 
See accompanying notes to unaudited pro forma combined financial statements


4
BOSTON OMAHA CORPORATION  
  
AND FAIR OUTDOOR, LLC   
  
 
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS   
  
                         
FOR THE YEAR ENDED DECEMBER 31, 2014         
  
                         
                         
         
Pro Forma
          
Pro Forma
  
   
Boston Omaha
    
Adjustments
    
Notes
    
Combined
  
Revenues:
                        
  Consulting fees
  
$
43,874
    
$
-
          
$
43,874
  
  Billboard rentals
    
-
      
117,641
      
(2)
 
    
117,641
  
                                 
     Total Revenues
    
43,874
      
117,641
              
161,515
  
                                 
Costs and Expenses:
                                
  Professional fees
    
66,715
      
-
              
66,715
  
  Ground rents
    
-
      
22,575
      
(2)
 
    
22,575
  
  Depreciation and amortization
    
-
      
219,303
      
(2)
 
    
219,303
  
  Repairs and maintenance
    
-
      
8,401
      
(2)
 
    
8,401
  
  General and administrative
    
-
      
2,768
      
(2)
 
    
2,768
  
                                 
     Total Costs and Expenses
    
66,715
      
253,047
              
319,762
  
                                 
(Loss) Income from Operations
    
(22,841
)
    
(135,406
)
            
(158,247
)
                                 
Other Income (Expense):
                                
  Equity in income (loss) of unconsolidated affiliate
    
(15,805
)
    
-
              
(15,805
)
  Interest expense
    
(28,132
)
    
(11,457
)
            
(39,589
)
                                 
(Loss) Income Before Income Tax
    
(66,778
)
    
(146,863
)
            
(213,641
)
                                 
Income Tax (Provision) Benefit
    
-
      
58,010
      
(3b)
 
    
58,010
  
                                 
Net (Loss) Income
  
$
(66,778
)
  
$
(88,853
)
          
$
(155,631
)
                                 
Basic and Diluted Net (Loss) Income
                                
  per share
    
(0.25
)
            
(3a)
 
    
(0.58
)
                                 
Basic and Diluted Weighted Average
                          
  Shares Outstanding
    
266,954
              
(3a)
 
    
266,954
  
 
See accompanying notes to unaudited pro forma combined financial statements
5
BOSTON OMAHA CORPORATION  
  
AND FAIR OUTDOOR, LLC   
  
NOTES TO UNAUDITED COMBINED PRO FORMA INFORMATION 
  
 
 
NOTE 1. BASIS OF PRESENTATION

The unaudited pro forma combined balance has been prepared by applying pro forma adjustments to Boston Omaha Corporation's ("Boston Omaha") ("the Company") unaudited balance sheet as of June 30, 2015.

The unaudited pro forma combined statement of operations for the six months ended June 30, 2015 has been prepared from Boston Omaha's unaudited interim statement of operations for the six months ended June 30, 2015 and from Fair Outdoor, LLC's ("Fair") unaudited interim statement of operations for the six months ended June 30, 2015.

Boston Omaha's audited financial statements and Fair's audited financial statements have been used in the preparation of the unaudited pro forma combined statement of operations for the year ended December 31, 2014.

The unaudited pro forma financial statements should be read in conjunction with the historical financial statements of Boston Omaha and Fair as follows:

Boston Omaha's (formerly known as REO Plus, Inc.) audited financial statements for the year ended December 31, 2014 and the notes relating thereto, as found in its Form 10-K which was filed on February 5, 2015.

Boston Omaha's unaudited financial statements for the six months ended June 30, 2015 and the notes relating thereto, as found in its Form 10-Q-which was filed on August 14, 2015; and

Fair's audited financial statements for the year ended December 31, 2014 and the notes relating thereto included elsewhere in this Form 8-K/A and

Fair's unaudited financial statements for the six months ended June 30, 2015 and the notes relating thereto included elsewhere in this Form 8-K/A.

On June 17, 2015, the Company effected a 7:1 reverse stock split.  The accompanying pro forma combined financial statements have been retroactively adjusted to reflect the stock split.
 
NOTE 2. PURCHASE OF ASSETS

On July 23, 2015, Link Media Florida, LLC ("LMF") a wholly-owned subsidiary of Boston Omaha purchased two digital displays and related personal property, and intangible assets from a private seller, Fair, for a purchase price of $1,945,061.

Adjustments to the gross purchase price of $2,000,000 were $54,939 and included net earnings of $13,939 for the period from July 23 through August 23, 2015.

6

NOTE 2. PURCHASE OF ASSETS (Continued)

Recognized Amount of Identifiable Assets Acquired and Liabilities Assumed

Property and Equipment:
      
  Structures and displays
  
$
370,000
  
         
Intangible Assets:
        
  Customer relationships
    
536,300
  
  Permits
    
52,200
  
  Goodwill
    
986,561
  
         
  Total Intangible Assets
    
1,575,061
  
         
Identifiable Assets Acquired
    
1,945,061
  
         
Liabilities assumed
    
-
  
         
Total Identifiable Net Assets
  
$
1,945,061
  
 
Depreciation has been provided for structures and displays on a straight-line basis for their estimated useful lives, expected to range from ten to fifteen years.  Amortization has been provided for the intangible assets having finite lives, expected to be three to ten years.
 
NOTE 3. PRO FORMA ADJUSTMENTS

Earnings per share

The basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding.

Income Tax (Provision) Benefit

Federal and state income taxes have been provided at statutory rates.
7

BOSTON OMAHA Corp Reports