Attached files
| file | filename |
|---|---|
| EX-99.2 - OMNIQ Corp. | ex99-2.htm |
| EX-99.1 - OMNIQ Corp. | ex99-1.htm |
| 8-K/A - OMNIQ Corp. | form8-ka.htm |
Exhibit 99.3
OMNIQ CORP AND DANGOT COMPUTERS LTD
UNAUDITED PROFORMA CONDENSED COMBINED STATEMENTS OF INCOME AND
COMPREHENSIVE LOSS
FOR THE YEAR ENDED DECEMBER 31, 2020
| Historical | Pro Forma | |||||||||||
| OmniQ | Dangot | Combined | ||||||||||
| (In thousands except per share data) | ||||||||||||
| Revenue | $ | 55,209 | $ | 37,284 | $ | 92,493 | ||||||
| Cost of revenue | 44,293 | 28,847 | 73,140 | |||||||||
| Gross profit (loss) | 10,916 | 8,437 | 19,353 | |||||||||
| Operating expenses | ||||||||||||
| Research and development | 1,805 | 1,805 | ||||||||||
| Selling, general and administrative | 15,802 | 6,125 | 21,927 | |||||||||
| Depreciation | 178 | 356 | 534 | |||||||||
| Amortization | 2,114 | 2,114 | ||||||||||
| Total operating expenses | 19,899 | 6,481 | 26,380 | |||||||||
| Income (loss) from operations | (8,983 | ) | 1,956 | (7,027 | ) | |||||||
| Other income (expenses) | (2,516 | ) | 310 | (2,206 | ) | |||||||
| Loss before income taxes | (11,499 | ) | 2,266 | (9,233 | ) | |||||||
| Income tax benefit (provision) | (5 | ) | (446 | ) | (451 | ) | ||||||
| Net income (loss) | (11,504 | ) | 1,820 | (9,684 | ) | |||||||
| Net (loss), attributable to non-controlling interest | (3 | ) | ||||||||||
| Less: Preferred stock - Series C dividend | (191 | ) | (191 | ) | ||||||||
| Net income (loss) available to common stockholders | $ | (11,313 | ) | $ | 1,823 | $ | (9,490 | ) | ||||
| Foreign Currency Translation adjustment | (167 | ) | (167 | ) | ||||||||
| Net loss per share - Basic | $ | (2.46 | ) | |||||||||
| Net loss per share - Diluted | $ | (2.66 | ) | $ | $ | |||||||
| Basic and diluted weighted average common shares outstanding | 4,322,303 | 4,322,303 | ||||||||||
OMNIQ CORP AND DANGOT COMPUTERS LTD
UNAUDITED PROFORMA CONDENSED COMBINED STATEMENTS OF INCOME AND
COMPREHENSIVE LOSS
FOR THE 6-MONTH PERIOD ENDED JUNE 30, 2021
| Historical | Pro Forma | |||||||||||
| OmniQ | Dangot | Combined | ||||||||||
| (In thousands except per share data) | ||||||||||||
| Revenue | $ | 32,870 | $ | 19,556 | $ | 52,426 | ||||||
| Cost of revenue | 26,936 | 14,831 | 41,767 | |||||||||
| Gross profit (loss) | 5,934 | 4,725 | 10,659 | |||||||||
| Operating expenses | ||||||||||||
| Research and development | 962 | 962 | ||||||||||
| Selling, general and administrative | 8,547 | 3,120 | 11,667 | |||||||||
| Depreciation | 85 | 90 | 175 | |||||||||
| Amortization | 1,047 | 1,047 | ||||||||||
| Total operating expenses | 10,641 | 3,210 | 13,851 | |||||||||
| 0 | ||||||||||||
| Income (loss) from operations | -4,707 | 1,515 | -3192 | |||||||||
| 0 | ||||||||||||
| Interest Expense | -1,304 | -158 | ||||||||||
| Other (expenses) income | 160 | 17 | 177 | |||||||||
| Loss before income taxes | -5,851 | 1,374 | -4,477 | |||||||||
| Income tax benefit (provision) | -3 | -313 | -316 | |||||||||
| Net income (loss) | -5,854 | 1,061 | -4,793 | |||||||||
OMNIQ CORP AND DANGOT COMPUTERS LTD
UNAUDITED PROFORMA CONDENSED COMBINED BALANCE SHEET
AS OF JUNE 30, 2021
| Historical | Pro Forma | |||||||||||||||||||
| (In thousands) | OmniQ | Dangot | Private Placement | Adjustments | Combined | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||||
| Cash and cash equivalents | $ | 5,437 | $ | 666 | $ | 13,675 | b | $ (5,257 | )a2 | $ | 14,521 | |||||||||
| Accounts receivable, net | 6,256 | 13,470 | 19,726 | |||||||||||||||||
| Inventory | 2,276 | 4,616 | 6,892 | |||||||||||||||||
| Prepaid expenses | 476 | 1,154 | 1,630 | |||||||||||||||||
| Other current assets | 10 | 0 | 10 | |||||||||||||||||
| TOTAL CURRENT ASSETS | 14,455 | 19,906 | 13,675 | (5,257 | ) | 42,779 | ||||||||||||||
| Property and equipment, net of accumulated depreciation | 210 | 638 | 848 | |||||||||||||||||
| Goodwill | 14,695 | 72 | 6,859 | a | 21,626 | |||||||||||||||
| Trade name, net of accumulated amortization | 825 | 0 | 1,759 | a | 2,584 | |||||||||||||||
| Customer relationships, net of accumulated amortization | 3,758 | 0 | 3,010 | a | 6,768 | |||||||||||||||
| Other intangibles, net of accumulated amortization | 963 | 0 | 963 | |||||||||||||||||
| Right of use lease asset | 61 | 2,450 | 2,511 | |||||||||||||||||
| Investment in Subsidiaries | 0 | 241 | (241 | )a | 0 | |||||||||||||||
| Income receivable, long term | 1,134 | 1,134 | ||||||||||||||||||
| Deffered tax asset | 213 | 213 | ||||||||||||||||||
| Other assets | 893 | 130 | 1,023 | |||||||||||||||||
| TOTAL ASSETS | $ | 35,860 | $ | 24,784 | $ | 13,675 | $ | 6,130 | $ | 80,449 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||||
| Accounts payable and accrued liabilities | $ | 32,918 | $ | 9,017 | $ | $ | $ | 41,935 | ||||||||||||
| Line of credit | 1,846 | 1,937 | 3,783 | |||||||||||||||||
| Accrued payroll and sales tax | 1,136 | 1,186 | 2,322 | |||||||||||||||||
| Notes payable, related parties – current portion | 390 | 390 | ||||||||||||||||||
| Notes payable – current portion | 5,447 | 226 | 5,673 | |||||||||||||||||
| Lease liability – current portion | 32 | 981 | 1,013 | |||||||||||||||||
| Deferred revenue | 762 | 762 | ||||||||||||||||||
| Deferred tax liability | 0 | |||||||||||||||||||
| Other current liabilities | 1,160 | 1,946 | 1,760 | |||||||||||||||||
| TOTAL CURRENT LIABILITIES | 42,929 | 16,055 | 0 | 0 | 57,638 | |||||||||||||||
| LONG TERM LIABILITIES | ||||||||||||||||||||
| Notes payable, related party, less current portion | 488 | 488 | ||||||||||||||||||
| Accrued interest and accrued liabilities, related party | 60 | 60 | ||||||||||||||||||
| Lease liability | 32 | 1,507 | 1,539 | |||||||||||||||||
| Note payable long term | 659 | 659 | ||||||||||||||||||
| Other long term liabilities | 988 | 5,310 | 6,298 | |||||||||||||||||
| TOTAL LIABILITIES | $ | 44,497 | $ | 18,221 | $ | 0 | $ | 5,310 | $ | 66,682 | ||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||
| STOCKHOLDERS’ EARNINGS (DEFICIT) | ||||||||||||||||||||
| Series C Preferred stock | $ | 1 | $ | $ | $ | $ | 1 | |||||||||||||
| Common stock | 5 | 3 | 14 | (3 | ) | 19 | ||||||||||||||
| Additional paid-in capital | 54,117 | 16 | 13,661 | b | 1,985 | a3 | 69,779 | |||||||||||||
| Accumulated earnings (deficit) | (62,628 | ) | 6,544 | (6,544 | )a1 | (62,628 | ) | |||||||||||||
| Accumulated other comprehensive loss | (132 | ) | (132 | ) | ||||||||||||||||
| Total stockholders’ equity attributable to common and preferred stockholders | (8,637 | ) | 6,563 | 13,675 | (4,562 | ) | 7,039 | |||||||||||||
| Non controlling Interest | 5,382 | 5,382 | ||||||||||||||||||
| TOTAL STOCKHOLDERS’ EQUITY | (8,637 | ) | 6,563 | 13,675 | 820 | 12,421 | ||||||||||||||
| 0 | ||||||||||||||||||||
| TOTAL LIABILITIES AND EQUITY | $ | 35,860 | $ | 24,784 | $ | 13,675 | $ | 6,130 | $ | 80,449 | ||||||||||
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 | ||||
| Fair value of net tangible assets acquired | 6,321 | |||
| Intagible assets | 4,769 | |||
| Goodwill | 6,859 | |||
| Purchase consideration | 17,949 | |||
| (a1) The Pro Forma Balance Sheet has been adjusted to eliminate the historical shareholders’ equity accounts of Dangot Computers |
| (a2) The Pro Forma Balance Sheet has been adjusted by the amount of cash required pursuant to the terms of the Share 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 Share Purchase Agreement. |
| (b) The Pro Forma Balance Sheet has been adjusted by the net cash proceeds and corresponding shares of common stock pursuant to the private placement subscription agreement |