BOSTON OMAHA Corp - FORM 8-K/A - EX-99.2 - EXHIBIT 99.2 - December 21, 2016

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EX-99.1 - EXHIBIT 99.1 - BOSTON OMAHA Corpex991.htm
8-K/A - 8-K/A - BOSTON OMAHA Corpboston8ka12192016.htm
Exhibit 99.2
 
 

 
BOSTON OMAHA CORPORATION
AND
JAG, INC

UNAUDITED PROFORMA COMBINED BALANCE SHEET
AND
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS

DECEMBER 31, 2015
 
BOSTON OMAHA CORPORATION
AND JAG, INC.
 
 
UNAUDITED PRO FORMA COMBINED BALANCE SHEET        
  
                         
DECEMBER 31, 2015           
  
                         
ASSETS     
  
                         
         
Pro Forma
          
Pro Forma
  
   
Boston Omaha
    
Adjustments
    
Notes
    
Combined
  
                         
Current Assets:
                        
  Cash
  
$
13,189,066
    
$
(6,954,246
)
    
(2
)
  
$
6,234,820
  
  Accounts receivable, net
    
276,750
      
106,340
      
(2
)
    
383,090
  
  Prepaid expense
    
70,484
      
-
              
70,484
  
                                 
   Total Current Assets
    
13,536,300
      
(6,847,906
)
            
6,688,394
  
                                 
Property and Equipment:
                                
  Structures and displays
    
4,548,473
      
3,252,940
      
(2
)
    
7,801,413
  
  Office equipment
    
2,633
      
-
              
2,633
  
  Vehicles and equipment
    
-
      
79,737
      
(2
)
    
79,737
  
  Accumulated depreciation
    
(307,367
)
    
-
              
(307,367
)
                                 
   Total Property and Equipment, net
    
4,243,739
      
3,332,677
              
7,576,416
  
                                 
Other Assets:
                                
  Goodwill
    
4,389,664
      
2,072,038
      
(2
)
    
6,461,702
  
  Intangible assets, net
    
958,265
      
1,443,191
      
(2
)
    
2,401,456
  
  Investment in unconsolidated affiliate
    
657,528
      
-
              
657,528
  
                                 
   Total Other Assets
    
6,005,457
      
3,515,229
              
9,520,686
  
                                 
   Total Assets
  
$
23,785,496
    
$
-
            
$
23,785,496
  
                                 
LIABILITIES AND STOCKHOLDERS' EQUITY            
  
                                 
Current Liabilities:
                                
  Accounts payable and accrued expenses
  
$
152,672
      
-
            
$
152,672
  
  Accounts payable, stockholder
    
2,721
      
-
              
2,721
  
  Notes payable, stockholders
    
100,000
      
-
              
100,000
  
  Accrued interest, stockholders
    
4,384
      
-
              
4,384
  
  Deferred revenue
    
30,204
      
-
              
30,204
  
                                 
   Total Current Liabilities
    
289,981
      
-
              
289,981
  
                                 
Stockholders' Equity:
                                
  Preferred stock, $.001 par value, 1,300,000 shares authorized, 0 shares issued and outstanding
    
-
      
-
              
-
  
  Common stock, $.001 par value, 28,700,000 shares authorized, 1,716,954 shares issued and outstanding
    
1,717
      
-
              
1,717
  
  Class A common stock, $.001 par value, 1,300,000 shares authorized, 1,055,560 issued and outstanding
    
1,056
      
-
              
1,056
  
  Additonal paid-in capital
    
25,062,544
      
-
              
25,062,544
  
  Accumulated deficit
    
(1,569,802
)
    
-
              
(1,569,802
)
                                 
   Total Stockholders' Equity
    
23,495,515
      
-
              
23,495,515
  
                                 
   Total Liabilities and Stockholders' Equity
  
$
23,785,496
    
$
-
            
$
23,785,496
  
 
See accompanying notes to unaudited pro forma combined financial statements.
 
BOSTON OMAHA CORPORATION
AND JAG, INC.
 
 
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS   
  
                         
FOR THE YEAR ENDED DECEMBER 31, 2015         
  
                         
                         
         
Pro Forma
          
Pro Forma
  
   
Boston Omaha
    
Adjustments
    
Notes
    
Combined
  
Revenues:
                        
  Billboard rentals
  
$
713,212
    
$
1,518,693
      
(2
)
  
$
2,231,905
  
  Service income
    
-
      
152,995
      
(2
)
    
152,995
  
  Consulting fees, related party
    
9,700
      
-
              
9,700
  
                                 
   Total Revenues
    
722,912
      
1,671,688
              
2,394,600
  
                                 
Costs and Expenses:
                                
  Cost of revenues (exclusive of depreciation and amortization)
    
229,507
      
617,252
      
(2
)
    
846,759
  
  Professional fees
    
737,451
      
-
              
737,451
  
  Depreciation
    
307,367
      
234,821
      
(2
)
    
542,188
  
  Leased employees
    
241,803
      
-
              
241,803
  
  Salaries, taxes and benefits
    
-
      
731,276
      
(2
)
    
731,276
  
  General and administrative
    
153,715
      
195,575
      
(2
)
    
349,290
  
  Amortization
    
150,436
      
298,759
      
(2
)
    
449,195
  
  Rent, related party
    
-
      
66,000
      
(2
)
    
66,000
  
  Bad debt expense
    
9,511
      
1,588
      
(2
)
    
11,099
  
                                 
   Total Costs and Expenses
    
1,829,790
      
2,145,271
              
3,975,061
  
                                 
Net (Loss) Income from Operations
    
(1,106,878
)
    
(473,583
)
            
(1,580,461
)
                                 
Other Income (Expense):
                                
  Interest income
    
-
      
586
      
(2
)
    
586
  
  Equity in income (loss) of unconsolidated affiliate
    
3,813
      
-
              
3,813
  
  Gain on sale of investment in unconsolidated affiliate
    
78,150
      
-
              
78,150
  
  Interest expense
    
(22,508
)
    
(16,751
)
    
(2
)
    
(39,259
)
                                 
(Loss) Income Before Income Tax
    
(1,047,423
)
    
(489,748
)
            
(1,537,171
)
                                 
Income Tax (Provision) Benefit
    
-
      
205,221
      
(3b
)
    
205,221
  
                                 
Net (Loss) Income
  
$
(1,047,423
)
  
$
(284,527
)
          
$
(1,331,960
)
                                 
Basic and Diluted Net (Loss) Income per share
  
$
(0.71
)
            
(3a
)
  
$
(0.90
)
                                 
Basic and Diluted Weighted Average
                                
Shares Outstanding
    
1,481,310
              
(3a
)
    
1,481,310
  
 
See accompanying notes to unaudited pro forma combined financial statements.
 
BOSTON OMAHA CORPORATION
AND JAG, INC.

NOTES TO UNAUDITED COMBINED PRO FORMA INFORMATION
 
 
NOTE 1.  BASIS OF PRESENTATION

The unaudited pro forma combined balance sheet has been prepared by applying pro forma adjustments to Boston Omaha Corporation's ("Boston Omaha") ("the Company") audited balance sheet as of December 31, 2015.

The unaudited pro forma combined statement of operations for the year ended December 31, 2015 has been prepared from Boston Omaha's audited statement of operations for the year ended December 31, 2015 and from Jag, Inc.'s  ("Jag") audited statement of operations for the year ended December 31, 2015.

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

Boston Omaha's audited financial statements for the years ended December 31, 2015 and 2014 and the notes relating thereto, as found in its Form 10-K which was filed on March 30, 2016.

Jag's audited financial statements for the year ended December 31, 2015 and the notes relating thereto included elsewhere in this Form 8-K/A.

NOTE 2. PURCHASE OF ASSETS

On February 16, 2016, Link Media Wisconsin, LLC ("LMW") a wholly-owned subsidiary of Boston Omaha purchased 422 billboard displays, directional signs, equipment and related assets from a private seller, Jag, for a purchase price of $6,954,246.  The purchase price is subject to certain post-closing adjustments.  The provisional allocation of the purchase price is as follows:
 
Recognized Amount of Identifiable Assets Acquired and Liabilities Assumed
      
       
Property and Equipment:
      
Structures and displays
  
$
3,252,940
  
Vehicles, tools, and equipment
    
79,737
  
         
Total Property and Equipment
    
3,332,677
  
         
Intangible Assets:
        
Customer relationships
    
694,400
  
Permits and lease acquisition costs
    
589,491
  
Noncompetition agreement
    
104,300
  
Easement
    
55,000
  
Goodwill
    
2,072,038
  
         
Total Intangible Assets
    
3,515,229
  
         
Accounts receivable
    
106,340
  
         
Total Identifiable Assets Acquired
    
6,954,246
  
         
Liabilities assumed
    
-
  
         
Total Identifiable Net Assets
  
$
6,954,246
  
         
 
 
BOSTON OMAHA CORPORATION
AND JAG, INC.

NOTES TO UNAUDITED COMBINED PRO FORMA INFORMATION
 
 
NOTE 2. PURCHASE OF ASSETS (Continued)

The allocation of the purchase price is based on internal information and will be revised when the independent appraisal has been completed.

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 fifty 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.


BOSTON OMAHA Corp Reports