Attached files
| file | filename |
|---|---|
| EX-99.3 - OMNIQ Corp. | ex99-3.htm |
| EX-99.2 - OMNIQ Corp. | ex99-2.htm |
| 8-K/A - OMNIQ Corp. | form8-ka.htm |
QUEST SOLUTION, INC. AND HTS IMAGE PROCESSING, INC
UNAUDITED PROFORMA CONDENSED COMBINED STATEMENTS OF INCOME AND
COMPREHENSIVE LOSS
FOR THE YEAR ENDED DECEMBER 31, 2017
| Historical | Pro Forma | |||||||||||||||
| Quest | HTS | Adjustments | Combined | |||||||||||||
| (In thousands except per share data) | ||||||||||||||||
| Revenue | $ | 54,459 | $ | 4,851 | $ | - | $ | 59,310 | ||||||||
| Cost of revenue | 43,089 | 3,820 | - | 46,909 | ||||||||||||
| Gross profit (loss) | 11,370 | 1,031 | - | 12,401 | ||||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 1,859 | 408 | - | 2,267 | ||||||||||||
| Salary and employee benefits | 7,952 | 193 | - | 8,145 | ||||||||||||
| Professional fees | 674 | 40 | 714 | |||||||||||||
| Depreciation and amortization | 1,763 | - | - | 1,763 | ||||||||||||
| Total operating expenses | 12,248 | 641 | - | 12,889 | ||||||||||||
| Income (loss) from operations | (878 | ) | 390 | - | (488 | ) | ||||||||||
| Other income (expenses) | (1,553 | ) | (389 | ) | - | (1,942 | ) | |||||||||
| Loss before income taxes | (2,431 | ) | 1 | - | (2,430 | ) | ||||||||||
| Income tax benefit (provision) | - | (182 | ) | - | (182 | ) | ||||||||||
| Net income (loss) | (2,431 | ) | (181 | ) | - | (2,612 | ) | |||||||||
| Less: Preferred stock - Series C dividend | (290 | ) | - | - | (290 | ) | ||||||||||
| Net income (loss) available to common stockholders | $ | (2,141 | ) | $ | (181 | ) | $ | - | $ | (2,322 | ) | |||||
| Basic and diluted net loss per common share | $ | (0.06 | ) | $ | (1.81 | ) | $ | - | $ | (0.06 | ) | |||||
| Basic and diluted weighted average common shares outstanding | 35,814,751 | 100,000 | 35,814,751 | |||||||||||||
| 1 |
QUEST SOLUTION, INC. AND HTS IMAGE PROCESSING, INC
UNAUDITED PROFORMA CONDENSED COMBINED STATEMENTS OF INCOME AND
COMPREHENSIVE LOSS
FOR THE 9-MONTH PERIOD ENDED SEPTEMBER 30, 2018
| Historical | Pro Forma | |||||||||||||||
| Quest | HTS | Adjustments | Combined | |||||||||||||
| (In thousands except per share data) | ||||||||||||||||
| Revenue | $ | 42,368 | $ | 6,419 | $ (2,913 | )(a1) | $ | 45,874 | ||||||||
| Cost of revenue | 33,687 | 3,581 | (2,635 | )(a1) | 34,633 | |||||||||||
| Gross profit (loss) | 8,681 | 2,838 | (278 | ) | 11,241 | |||||||||||
| Operating expenses | ||||||||||||||||
| General and administrative | 1,724 | 117 | - | 1,841 | ||||||||||||
| Salary and employee benefits | 6,426 | 1,668 | - | 8,094 | ||||||||||||
| Research and development | 43 | 43 | ||||||||||||||
| Professional fees | 1,168 | 440 | (278 | )(a1) | 1,330 | |||||||||||
| Depreciation and amortization | 1,312 | 50 | - | 1,362 | ||||||||||||
| Total operating expenses | 10,630 | 2,318 | (278 | ) | 12,670 | |||||||||||
| Income (loss) from operations | (1,949 | ) | 520 | - | (1,429 | ) | ||||||||||
| Other income (expenses) | (2,344 | ) | (336 | ) | - | (2,680 | ) | |||||||||
| Loss before income taxes | (4,293 | ) | 184 | - | (4,109 | ) | ||||||||||
| Income tax benefit (provision) | (44 | ) | (127 | ) | - | (171 | ) | |||||||||
| Net income (loss) | (4,337 | ) | 58 | - | (4,280 | ) | ||||||||||
| Less: Preferred stock - Series C dividend | (142 | ) | - | - | (142 | ) | ||||||||||
| Net income (loss) available to common stockholders | $ | (4,479 | ) | $ | 58 | $ | - | $ | (4,422 | ) | ||||||
| Basic and diluted net loss per common share | $ | (0.11 | ) | $ | 0.29 | $ | - | $ | (0.07 | ) | ||||||
| Basic and diluted weighted average common shares outstanding | 42,592,783 | 200,000 | 22,352,954 | 65,045,737 | ||||||||||||
| (a1) | The Pro Forma Income Statement has been adjusted to eliminate certain intercompany items. |
| 2 |
QUEST SOLUTION, INC. AND HTS IMAGE PROCESSING, INC
UNAUDITED PROFORMA CONDENSED COMBINED BALANCE SHEET
AS OF SEPTEMBER 30, 2018
| Historical | Pro Forma | |||||||||||||||
| (In thousands) | Quest | HTS | Adjustments | Combined | ||||||||||||
| ASSETS | ||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||
| Cash and cash equivalents | $ | 56 | $ | 770 | $ | $ | 826 | |||||||||
| Restricted cash | 532 | - | 532 | |||||||||||||
| Accounts receivable, net | 10,669 | 4,030 | (1,909 | )(a4) | 12,790 | |||||||||||
| Inventories, net | 1,058 | 1,421 | 2,479 | |||||||||||||
| Prepaid expenses and other current assets | 413 | 171 | 584 | |||||||||||||
| TOTAL CURRENT ASSETS | 12,728 | 6,392 | (1,909 | ) | 17,211 | |||||||||||
| Fixed assets, net | 64 | 179 | 243 | |||||||||||||
| Goodwill | 10,114 | 2,684 | 6,397 | (a) | 19,195 | |||||||||||
| Trade name, net | 1,927 | - | 1,927 | |||||||||||||
| Customer relationships, net | 4,467 | - | 4,467 | |||||||||||||
| Other assets | 33 | - | 33 | |||||||||||||
| TOTAL ASSETS | $ | 29,333 | $ | 9,255 | $ | 4,488 | $ | 43,076 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||
| Accounts payable and accrued expenses | $ | 11,409 | $ | 2,466 | $ | (578 | )(a4) | $ | 13,297 | |||||||
| Line of credit | 4,637 | - | 4,637 | |||||||||||||
| Accrued payroll and sales tax | 2,381 | 137 | 2,518 | |||||||||||||
| Deferred revenue, net | 9 | - | 9 | |||||||||||||
| Current portion of note payable | 8,752 | - | 8,752 | |||||||||||||
| Notes payable, related party | 426 | 127 | 553 | |||||||||||||
| Other current liabilities | 119 | 3,970 | (1,331 | )(a4) | 2,758 | |||||||||||
| TOTAL CURRENT LIABILITIES | 27,733 | 6,600 | (1,909 | ) | 32,524 | |||||||||||
| LONG TERM LIABILITIES | ||||||||||||||||
| Note payable, related party | 1,704 | - | 1,000 (a2) | 2,704 | ||||||||||||
| Accrued interest, related party | 5 | - | 5 | |||||||||||||
| Long term portion of note payable | 130 | - | 130 | |||||||||||||
| Other long term liabilities | 431 | 2,652 | 3,083 | |||||||||||||
| TOTAL LIABILITIES | $ | 30,003 | $ | 9,352 | $ | (909 | ) | $ | 38,446 | |||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
| STOCKHOLDERS’ EARNINGS (DEFICIT) | ||||||||||||||||
| Series C Preferred stock | $ | 5 | $ | - | $ | $ | 5 | |||||||||
| Common stock | 49 | 0 | 20 | (a1), (a3) | 69 | |||||||||||
| Common stock to be repurchased by the Company | (231 | ) | - | (231 | ) | |||||||||||
| Additional paid-in capital | 38,328 | 1 | 5,279 | (a3) | 43,608 | |||||||||||
| Accumulated earnings (deficit) | (38,821 | ) | (98 | ) | 98 | (a1) | (38,821 | ) | ||||||||
| TOTAL STOCKHOLDERS’ EARNINGS (DEFICIT) | (670 | ) | (97 | ) | 5,397 | 4,630 | ||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 29,333 | $ | 9,255 | $ | 4,488 | $ | 43,076 | ||||||||
| 3 |
Notes:
| (a) | This entry reflects the preliminary allocation of the purchase price to identifiable net assets acquired and the excess purchase price to Goodwill as follows: |
| Book value of net assets acquired | ||||
| HTS’s equity | (97 | ) | ||
| Preliminary fair value adjustment of HTS | ||||
| Preliminary estimate of fair value of identifiable net assets (liabilities) acquired | (97 | ) | ||
| Goodwill | 6,397 |
| (a1) | The Pro Forma Balance Sheet has been adjusted to eliminate the historical shareholders’ equity accounts of HTS. |
| (a2) | The Pro Forma Balance Sheet has been adjusted by the amount of cash investment required pursuant to the terms of the Asset Purchase Agreement. |
| (a3) | The Pro Forma Balance Sheet has been adjusted by the amount of common stock issued to the sellers pursuant to the terms of the Asset Purchase Agreement. |
| (a4) | The Pro Forma Balance Sheet has been adjusted by the amount of related party balances. |
| 4 |