Attached files
| file | filename |
|---|---|
| 8-K/A - AMENDMENT NO. 1 TO CURRENT REPORT - LiveXLive Media, Inc. | f8k122917a1_livexlivemedia.htm |
Exhibit 99.4
LiveXLive Media and Slacker
Unaudited Pro Forma Combined Balance Sheet
As of September 30, 2017
| LiveXLive Media | Slacker | Pro Forma Adjustments | Notes | Pro Forma Combined (unaudited) | ||||||||||||||
| Current Assets | ||||||||||||||||||
| Cash and cash equivalents | $ | 175,888 | $ | 1,196,509 | $ | - | $ | (2,927,603 | ) | |||||||||
| (2,500,000 | ) | (1) | ||||||||||||||||
| (1,800,000 | ) | (2) | ||||||||||||||||
| Accounts receivable | 90,787 | 3,585,172 | - | 3,675,959 | ||||||||||||||
| Prepaid expense to related party | 90,000 | - | - | 90,000 | ||||||||||||||
| Prepaid expense | 185,004 | 762,861 | - | 947,865 | ||||||||||||||
| Total Current Assets | 541,679 | 5,544,542 | (4,300,000 | ) | 1,786,221 | |||||||||||||
| Other Assets | ||||||||||||||||||
| Fixed assets, net | 126,164 | 509,993 | - | 636,157 | ||||||||||||||
| Intangible assets | 1,600,100 | 40,000 | (40,000 | ) | (3) | 1,600,100 | ||||||||||||
| Goodwill | 1,321,300 | - | - | 1,321,300 | ||||||||||||||
| Cost in excess of acquired net assets from Slacker acquisition | - | - | 50,037,399 | (10) | 50,037,399 | |||||||||||||
| Other assets | 548,201 | 39,696 | - | 587,897 | ||||||||||||||
| Total Assets | 4,137,444 | 6,134,231 | 45,697,399 | 55,969,074 | ||||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||||
| Current Liabilities | ||||||||||||||||||
| Accounts payable and accrued liabilities | $ | 2,174,830 | $ | 15,341,793 | $ | (244,102 | ) | (4) | $ | 17,272,521 | ||||||||
| Note payable / Bank debt | 285,650 | 5,076,964 | (1,800,000 | ) | (2) | 3,562,614 | ||||||||||||
| Due to producers / Deferred revenue | 105,064 | 2,243,241 | - | 2,348,305 | ||||||||||||||
| Note payable, shareholder | 3,711,173 | - | - | 3,711,173 | ||||||||||||||
| Unsecured convertible notes, net of discount | 1,695,849 | 2,988,146 | (2,988,146 | ) | (5) | 1,695,849 | ||||||||||||
| Notes and Other, Due to Related party | 79,900 | 3,010 | - | 82,910 | ||||||||||||||
| Total Current Liabilities | 8,052,466 | 25,653,154 | (5,032,248 | ) | 28,673,372 | |||||||||||||
| Preferred stock warrants | - | 29,132 | (29,132 | ) | (6) | - | ||||||||||||
| Total Liabilities | 8,052,466 | 25,682,286 | (5,061,380 | ) | (9) | 28,673,372 | ||||||||||||
| Commitments and contingencies | ||||||||||||||||||
| Convertible preferred stock, $0.0001 par value; 49,200,000 shares authorized; 40,928,424 shares issued and outstanding | - | 80,616,291 | (80,616,291 | ) | (7) | - | ||||||||||||
| Stockholders’ Equity: | ||||||||||||||||||
| Preferred stock, $0.001 par value; 1,000,000 shares authorized; no shares issued or outstanding | - | - | - | - | ||||||||||||||
| Common stock, $0.001 par value; 500,000,000 shares authorized; 36,039,547 shares issued and outstanding; 43,842,228 pro-forma shares issued and outstanding | 36,040 | - | 7,803 | (1) | 43,843 | |||||||||||||
| Common stock, $0.0001 par value; 62,000,000 shares authorized; 559,772 shares issued and outstanding. | - | 6,844 | (6,844 | ) | (7) | - | ||||||||||||
| Additional paid in capital | 31,262,014 | 48,869,486 | 31,202,921 | (1) | 62,464,935 | |||||||||||||
| (48,869,486 | ) | (7) | ||||||||||||||||
| Common stock warrants | - | 395,652 | (395,652 | ) | (7) | - | ||||||||||||
| Retained earnings / (Accumulated deficit) | (35,213,076 | ) | (149,436,328 | ) | 149,436,328 | (8) | (35,213,076 | ) | ||||||||||
| Total stockholders’ equity | (3,915,022 | ) | (100,164,346 | ) | 131,375,070 | 27,295,702 | ||||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 4,137,444 | $ | 6,134,231 | $ | 45,697,399 | $ | 55,969,074 | ||||||||||
Notes:
| (1) | $2.5 million in cash and $31.2 million in equity (7,802,681 shares of LiveXLive Media’s common stock) for the acquistion of Slacker (the “Merger”), net of certain liabilities per the Merger Agreement. |
| (2) | Slacker term loan outstanding balance is reduced at the time of the Merger. |
| (3) | Elimination of existing intangible assets held by Slacker at the time of the Merger. |
| (4) | Accrued interest due on notes that are the responsibility of Slacker. |
| (5) | Slacker unsecured convertible notes are paid in full at the time of the Merger. |
| (6) | Removal of Slacker preferred stock warrant liability per the Merger Agreement. |
| (7) | Elimination of equity of Slacker related to purchase of its shares by LiveXLive Media. |
| (8) | Elimination of Retained Earnings of Slacker related to purchase of its shares by LiveXLive Media. |
| (9) | LiveXLive Media is assuming net liabilities of $20.6 million as a result of the Merger Agreement. |
| (10) | Goodwill and intangible assets associated with the purchase of Slacker. |
1
LiveXLive Media, Wantickets and Slacker
Unaudited Pro Forma Combined Statement of Operations
For the Six Months Ended September 30, 2017
| LiveXLive Media for the Six Months Ended September 30, 2017 | Wantickets for the Three Months Ended June 30, 2017 (1) | Slacker for the Six Months Ended June 30, 2017 (7) | Pro Forma Adjustments | Notes | Pro Forma Combined (unaudited) | |||||||||||||||||
| Revenue | $ | 648,385 | $ | 109,777 | $ | 13,373,384 | $ | - | $ | 14,131,546 | ||||||||||||
| Cost of Revenue | 150,549 | 13,022 | 9,782,261 | - | 9,945,832 | |||||||||||||||||
| Gross Profit | 497,836 | 96,755 | 3,591,123 | - | 4,185,714 | |||||||||||||||||
| Operating expenses | ||||||||||||||||||||||
| Selling, general and administrative | 6,041,238 | 283,664 | 3,428,909 | 163,429 | (2) | 10,067,240 | ||||||||||||||||
| 150,000 | (3) | |||||||||||||||||||||
| Research and product development | - | - | 3,358,448 | - | 3,358,448 | |||||||||||||||||
| Related party expenses | 180,000 | - | - | - | 180,000 | |||||||||||||||||
| Total operating expenses | 6,221,238 | 283,664 | 6,787,357 | 313,429 | 13,605,688 | |||||||||||||||||
| Loss from operations | (5,723,402 | ) | (186,909 | ) | (3,196,234 | ) | (313,429 | ) | (9,419,974 | ) | ||||||||||||
| Other Income (Expense) | ||||||||||||||||||||||
| Interest expense | (1,393,784 | ) | - | (565,642 | ) | 565,642 | (4) | (1,393,784 | ) | |||||||||||||
| Total non-operating expenses | (1,393,784 | ) | - | (565,642 | ) | 565,642 | (1,393,784 | ) | ||||||||||||||
| Net loss | (7,117,186 | ) | (186,909 | ) | (3,761,876 | ) | 252,213 | (10,813,758 | ) | |||||||||||||
| Deemed dividend on convertible preferred stock | - | - | (1,961,711 | ) | 1,961,711 | (5) | - | |||||||||||||||
| Net loss attributable to common shareholders | $ | (7,117,186 | ) | $ | (186,909 | ) | $ | (5,723,587 | ) | $ | 2,213,924 | $ | (10,813,758 | ) | ||||||||
| Net loss per common share — basic and diluted | $ | (0.20 | ) | $ | (0.22 | ) | ||||||||||||||||
| Weighted average common shares – basic and diluted | 35,773,359 | (6) | 48,576,040 | |||||||||||||||||||
Notes:
| |
| (1) | Activity from April 1, 2017 to May 5, 2017 prior to the acquisition of certain assists of Wantickets. |
| (2) | Contractual increase to the base salary of certain executives of LiveXLive Media upon the closing of its public offering, consummated on December 27, 2017 (the “Public Offering”), in accordance with their respective employment agreements. |
| (3) | Transaction expenses related to the acquisition of Slacker. |
| (4) | Elimination of interest expenses on bank debt and promissory notes that are retired at the time of the acquistion of Slacker. |
| (5) | Elimination of charges related to Slacker equity. |
| (6) | Includes 5,000,000 shares of common stock sold in the Public Offering. |
| (7) | In preparing the unaudited pro forma combined statement of operations of LiveXLive Media for the six months ended September 30, 2017, the statement of operations for the six months ended September 30, 2017 for LiveXLive Media was combined with Wantickets for the period from April 1, 2017 to May 5, 2017 (the date of the acquisition), and the statement of operations for the six months ended June 30, 2017 for Slacker. |
2
LiveXLive Media, Wantickets and Slacker
Unaudited Pro Forma Combined Statement of Operations
For the Twelve Months Ended March 31, 2017
| LiveXLive Media for the Twelve Months Ended March 31, 2017 | Wantickets for the Twelve Months Ended March 31, 2017 | Slacker for the Twelve Months Ended December 31, 2016 | Pro Forma Adjustments | Notes | Pro Forma Combined (unaudited) | |||||||||||||||||
| Revenue | $ | 225,000 | $ | 3,747,000 | $ | 36,682,207 | $ | - | $ | 40,654,207 | ||||||||||||
| Cost of Revenue | - | 1,147,000 | 26,978,908 | - | 28,125,908 | |||||||||||||||||
| Gross Profit | 225,000 | 2,600,000 | 9,703,299 | - | 12,528,299 | |||||||||||||||||
| Operating expenses | ||||||||||||||||||||||
| Selling, general and administrative | 5,349,801 | 4,130,000 | 6,888,339 | 440,000 | (1) | 16,958,140 | ||||||||||||||||
| 150,000 | (2) | |||||||||||||||||||||
| Research and product development | - | - | 7,894,270 | - | 7,894,270 | |||||||||||||||||
| Related party expenses | 360,000 | - | - | - | 360,000 | |||||||||||||||||
| Total operating expenses | 5,709,801 | 4,130,000 | 14,782,609 | 590,000 | 25,212,410 | |||||||||||||||||
| Loss from operations | (5,484,801 | ) | (1,530,000 | ) | (5,079,310 | ) | (590,000 | ) | (12,684,111 | ) | ||||||||||||
| Other Income (Expense) | ||||||||||||||||||||||
| Interest expense | (512,152 | ) | - | (1,508,498 | ) | 1,508,498 | (3) | (512,152 | ) | |||||||||||||
| Other income, net | (8,252,766 | ) | 15,000 | 1,044 | (8,236,722 | ) | ||||||||||||||||
| Total non-operating expenses | (8,764,918 | ) | 15,000 | (1,507,454 | ) | 1,508,498 | (8,748,874 | ) | ||||||||||||||
| Net loss | (14,249,719 | ) | (1,515,000 | ) | (6,586,764 | ) | 918,498 | (21,432,985 | ) | |||||||||||||
| Deemed dividend on convertible preferred stock | - | - | (3,960,598 | ) | 3,960,598 | (4) | - | |||||||||||||||
| Net loss attributable to common shareholders | $ | (14,249,719 | ) | $ | (1,515,000 | ) | $ | (10,547,362 | ) | $ | 4,879,096 | $ | (21,432,985 | ) | ||||||||
| Net loss per common share — basic and diluted | $ | (0.44 | ) | $ | (0.47 | ) | ||||||||||||||||
| Weighted average common shares – basic and diluted | 32,532,069 | (5) | 45,334,750 | |||||||||||||||||||
Notes:
| |
| (1) | Contractual increase to the base salary of certain executives of LiveXLive Media upon the closing of its public offering, consummated on December 27, 2017 (the “Public Offering”), in accordance with their respective employment agreements. |
| (2) | Transaction expenses related to the acquisition of Slacker. |
| (3) | Elimination of interest expenses on bank debt and promissory notes that are retired at the time of the acquisition of Slacker. |
| (4) | Elimination of charges related to Slacker equity. |
| (5) | Includes 5,000,000 shares of common stock sold in the Public Offering. |
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