RiceBran Technologies - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - December 4, 2017

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Exhibit 99.1

Unaudited Pro Forma Financial Statements

On November 28, 2017, Rice Bran Technologies (the Company) completed the divestiture of its subsidiary, Nutra SA, LLC (Nutra SA), pursuant to the transaction previously reported in the Company’s current report on Form 8-K filed with the SEC on December 4, 2017.

The unaudited pro forma financial statements have been developed by applying pro forma adjustments to the Company’s historical consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America and give effect to the divestiture of Nutra SA.  The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2017 and 2016, and for the years ended December 31, 2016 and 2015, assume that the divestiture of Nutra SA occurred January 1, 2015.  The unaudited pro forma condensed consolidated balance sheet as of September 30, 2017, assumes that the divestiture occurred on that date.  The unaudited pro forma condensed consolidated financial statements are presented based on currently available information and are intended for informational purposes only.

These unaudited pro forma condensed consolidated financial statements are not necessarily indicative of what the Company’s results of operations or financial condition would have been had the divestiture been completed on the dates assumed.  In addition, they are not necessarily indicative of the Company’s future results of operations or financial condition.  Beginning in the second quarter of 2017, the historical financial results of Nutra SA for periods prior to the divestiture were reflected in the Company’s consolidated financial statements as discontinued operations.

The unaudited pro forma condensed consolidated financial statements should be read in conjunction with (i) the accompanying notes to the unaudited pro forma condensed consolidated financial statements, (ii) the audited consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Form 10-K for the year ended December 31, 2016, filed with the SEC on March 23, 2017, and (iii) the unaudited condensed consolidated financial statements and accompanying notes and “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” included in the Company’s Form 10-Q for the three and nine months ended September 30, 2017, filed with the SEC on November 9, 2017.
 
RiceBran Technologies
Pro Forma Condensed Consolidated Statements of Operations
Unaudited Nine Months Ended September 30, 2017
 (in thousands, except share and per share amounts)
 
   
Historical
    
Nutra SA
Divestiture
Pro Forma
Adjustments
  
Notes
  
Pro Forma
  
                     
Revenues
  
$
10,206
             
$
10,206
  
Cost of goods sold
    
7,081
              
7,081
  
Selling general and administrative expenses
    
7,428
              
7,428
  
Other expense
    
9,117
              
9,117
  
Loss before income taxes
    
(13,420
)
            
(13,420
)
Income tax benefit
    
5,033
              
5,033
  
Loss from continuing operations
    
(8,387
)
            
(8,387
)
Loss from discontinued operations, net of tax
    
6,823
    
$
3,863
  
(a)
    
10,686
  
Net income (loss)
    
(1,564
)
              
2,299
  
Less - Net loss attributable to noncontrolling interest in discontinued operations
    
(1,359
)
    
1,359
  
(a)
    
-
  
Net income (loss) attributable to RiceBran Technologies shareholders
    
(205
)
              
2,299
  
Less - Dividends on preferred stock, beneficial conversion feature
    
778
                
778
  
Net income (loss) attributable to RiceBran Technologies common shareholders
  
$
(983
)
             
$
1,521
  
                           
Basic earnings (loss) per common share:
                          
Continuing operations
  
$
(0.86
)
             
$
(0.86
)
Discontinued operations
    
0.77
                
1.00
  
Basic earnings (loss) per common share - RiceBran Technologies
  
$
(0.09
)
             
$
0.14
  
                           
Diluted earnings (loss) per common share:
                          
Continuing operations
  
$
(0.86
)
             
$
(0.86
)
Discontinued operations
    
0.77
                
1.00
  
Diluted earning (loss) per common share - RiceBran Technologies
  
$
(0.09
)
             
$
0.14
  
                           
Weighted average number of shares outstanding:
                          
Basic
    
10,644,372
                
10,644,372
  
Diluted
    
10,644,372
                
10,644,372
  
 
See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements
 
RiceBran Technologies
Pro Forma Condensed Consolidated Statements of Operations
Unaudited Nine Months Ended September 30, 2016
(in thousands, except share and per share amounts)
 
   
Historical
    
Nutra SA
Divestiture
Pro Forma
Adjustments
  
Notes
  
Pro Forma
  
                     
Revenues
  
$
9,748
             
$
9,748
  
Cost of goods sold
    
7,199
              
7,199
  
Selling general and administrative expenses
    
9,428
              
9,428
  
Other income
    
(560
)
            
(560
)
Loss before income taxes
    
(6,319
)
            
(6,319
)
Income tax benefit
    
1,344
              
1,344
  
Loss from continuing operations
    
(4,975
)
            
(4,975
)
Income (loss) from discontinued operations, net of tax
    
(4,829
)
  
$
7,438
  
(a)
    
2,609
  
Net loss
    
(9,804
)
              
(2,366
)
Less - Net loss attributable to noncontrolling interest in discontinued operations
    
(2,416
)
    
2,416
  
(a)
    
-
  
Net loss attributable to RiceBran Technologies shareholders
    
(7,388
)
              
(2,366
)
Less - Dividends on preferred stock, beneficial conversion feature
    
551
                
551
  
Net loss attributable to RiceBran Technologies common shareholders
  
$
(7,939
)
             
$
(2,917
)
                           
Basic earnings (loss) per common share:
                          
Continuing operations
  
$
(0.60
)
             
$
(0.60
)
Discontinued operations
    
(0.26
)
              
0.29
  
Basic loss per common share - RiceBran Technologies
  
$
(0.86
)
             
$
(0.31
)
                           
Diluted earnings (loss) per common share:
                          
Continuing operations
  
$
(0.60
)
             
$
(0.60
)
Discontinued operations
    
(0.26
)
              
0.29
  
Diluted loss per common share - RiceBran Technologies
  
$
(0.86
)
             
$
(0.31
)
                           
Weighted average number of shares outstanding:
                          
Basic
    
9,281,942
                
9,281,942
  
Diluted
    
9,281,942
                
9,281,942
  

See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements
 
RiceBran Technologies
Pro Forma Condensed Consolidated Statements of Operations
Unaudited Year Ended December 31, 2016
(in thousands, except share and per share amounts)
 
   
Historical
    
Nutra SA
Divestiture
Pro Forma
Adjustments
  
Notes
  
Pro Forma
  
                     
Revenues
  
$
39,405
    
$
(6,745
)
(b)
  
$
32,660
  
Cost of goods sold
    
31,436
      
(8,423
)
(b)
    
23,013
  
Selling general and administrative expenses
    
19,100
      
(5,279
)
(b)
    
13,821
  
Other expense (income), net
    
78
      
(1,378
)
(b)
    
(1,300
)
Loss before income taxes
    
(11,209
)
              
(2,874
)
Income taxes
    
(41
)
              
(41
)
Net loss
    
(11,250
)
              
(2,915
)
Net loss attributable to noncontrolling interest
    
2,720
      
(2,720
)
(b)
    
-
  
Net loss attributable to RiceBran Technologies shareholders
    
(8,530
)
              
(2,915
)
Less - Dividends on preferred stock, beneficial conversion feature
    
551
                
551
  
Net loss attributable to RiceBran Technologies common shareholders
  
$
(9,081
)
             
$
(3,466
)
                           
Loss per share attributable to common shareholders
                          
Basic
  
$
(0.97
)
             
$
(0.37
)
Diluted
  
$
(0.97
)
             
$
(0.37
)
                           
Weighted average number of shares outstanding
                          
Basic
    
9,338,370
                
9,338,370
  
Diluted
    
9,338,370
                
9,338,370
  
 
See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements
 
RiceBran Technologies
Pro Forma Condensed Consolidated Statements of Operations
Unaudited Year Ended December 31, 2015
(in thousands, except share and per share amounts)
 
   
Historical
    
Nutr SA
Divestiture
Pro Forma
Adjustments
  
Notes
  
Pro Forma
  
                     
Revenues
  
$
39,896
    
$
(16,601
)
(b)
  
$
23,295
  
Cost of goods sold
    
31,826
      
(15,949
)
(b)
    
15,877
  
Selling general and administrative expenses
    
14,346
      
(3,518
)
(b)
    
10,828
  
Other expense, net
    
4,476
      
(2,323
)
(b)
    
2,153
  
Loss before income taxes
    
(10,752
)
              
(5,563
)
Income taxes
    
176
                
176
  
Net loss
    
(10,576
)
              
(5,387
)
Net loss attributable to noncontrolling interest
    
2,308
      
(2,308
)
(b)
    
-
  
Net loss attributable to RiceBran Technologies shareholders
    
(8,268
)
              
(5,387
)
Less  Dividends on preferred stock, beneficial conversion feature
    
-
                
-
  
Net loss attributable to RiceBran Technologies common shareholders
  
$
(8,268
)
             
$
(5,387
)
                           
Loss per share attributable to common shareholders
                          
Basic
  
$
(0.90
)
             
$
(0.59
)
Diluted
  
$
(0.90
)
             
$
(0.59
)
                           
Weighted average number of shares outstanding
                          
Basic
    
9,187,983
                
9,187,983
  
Diluted
    
9,187,983
                
9,187,983
  
 
See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements
 
RiceBran Technologies
Pro Forma Condensed Consolidated Balance Sheets
Unaudited September 30, 2017
(in thousands)
 
   
Historical
    
Nutra SA
Divestiture
Pro Forma
Adjustments
  
Notes
  
Pro Forma
  
ASSETS
                    
Cash and cash equivalents
  
$
8,187
    
$
(615
)
 (c)
  
$
7,572
  
Restricted cash
    
775
                
775
  
Accounts receivable, net
    
1,384
                
1,384
  
Inventories
    
758
                
758
  
Deposits and other current assets
    
359
                
359
  
Property and equipment, net
    
7,123
      
50
  
 (c)
    
7,173
  
Intangible assets, net
    
135
                
135
  
Assets held for sale
    
14,183
      
(14,183
)
 (d)
    
-
  
Total assets
  
$
32,904
               
$
18,156
  
                           
LIABILITIES
                          
Accounts payable and accruals
  
$
1,443
               
$
1,443
  
Long-term debt
    
32
                
32
  
Derivative warrant liabilities
    
769
                
769
  
Deferred tax liability
    
29
                
29
  
Liabilities held for sale
    
18,239
      
(18,239
)
 (d)
    
-
  
Total liabilities
    
20,512
                
2,273
  
                           
EQUITY
                          
Preferred stock
    
738
                
738
  
Common stock
    
278,079
                
278,079
  
Accumulated deficit
    
(260,802
)
    
(2,132
)
 (e)
    
(262,934
)
Accumulated deficit attributable to noncontrolling interest
    
(1,370
)
    
1,370
  
 (f)
    
-
  
Accumulated other comprehensive loss
    
(4,253
)
    
4,253
  
 (g)
    
-
  
Total equity
    
12,392
                
15,883
  
Total liabilities and equity
  
$
32,904
               
$
18,156
  
 
See Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements
 
RiceBran Technologies
Notes to Pro Forma Unaudited Condensed Consolidated Financial Statements

The unaudited pro condensed consolidated forma financial statements give effect to the divestiture of Nutra SA, LLC (Nutra SA).  The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 30, 2017 and 2016, and for the years ended December 31, 2016 and 2015, are presented as if the sale occurred as of the beginning of those periods.  The unaudited pro forma condensed consolidated balance sheet as of September 30, 2017, is presented as if the divestiture occurred on that date.

(a)
These adjustments reflect the elimination of the results of operations of Nutra SA, which have been classified as discontinued operations in the historical financial statements since the second quarter of 2017.
(b)
These adjustments reflect the elimination of the results of operations of Nutra SA.
(c)
This adjustment reflects the $540 thousand cash paid at closing and $75 thousand of legal and other costs of the transaction, as well as the $50 thousand of Nutra SA property retained.
(d)
This adjustment reflects the elimination of the assets and liabilities of Nutra SA, which have been classified as held for sale in the historical financial statements since the second quarter of 2017.
(e)
This adjustment reflects the estimated loss arising from the transaction.  The estimated loss has not been reflected in the accompanying statements of operations as it is considered to be nonrecurring in nature.  No adjustment has been made to the to give effect to any potential post-closing adjustments under the terms of the agreement.
(f)
This adjustment reflects the elimination of the redeemable noncontrolling interest in Nutra SA, which was included in the determination of the loss on the divestiture.
(g)
This adjustment reflects the elimination of the cumulative foreign currency translation adjustment interest related to Nutra SA accounts, which was included in the determination of the loss on the divestiture.
 
 

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