Quarterly report pursuant to Section 13 or 15(d)

Acquisitions

v3.5.0.2
Acquisitions
6 Months Ended
Jun. 30, 2016
Acquisitions [Abstract]  
Acquisitions

3.  Acquisitions



LiveLenz Acquisition



On January 15, 2016, we acquired all of the outstanding capital stock of LiveLenz Inc., a Nova Scotia corporation (“LiveLenz”), pursuant to an agreement dated January 15, 2016 among the Company and the stockholders of LiveLenz. Pursuant to the agreement, we acquired all of the capital stock of LiveLenz in consideration of our issuance of 1,000,000 shares (“Consideration Shares”) of our common stock to the LiveLenz stockholders, our issuance of an additional 15,000 share of our common stock in satisfaction of certain liabilities of LiveLenz, and the assumption of their existing liabilities. The agreement included customary representations, warranties, and covenants by us and the LiveLenz stockholders, including the LiveLenz stockholders’ agreement to indemnify us against certain claims or losses resulting from certain breaches of representations, warranties or covenants by the LiveLenz stockholders in the agreement. Pursuant to the agreement, the LiveLenz stockholders have agreed to adjust the number of Consideration Shares downward based on LiveLenz’ working capital as of the closing and in the event of any claims for indemnification by us. The LiveLenz stockholders have agreed that 100% of the Consideration Shares will be escrowed for a period of 18 months and subject to forfeiture based on indemnification claims by us or the final determination of LiveLenz’ working capital as of the closing date.



The allocation of the purchase price to assets and liabilities based upon fair value determinations was as follows:







 

 

 



 

 

 

Cash

   

$

10,730 

Accounts receivable, net

 

 

2,843 

Inventory

 

 

4,457 

Other assets

   

   

2,617 

Fixed assets

 

 

4,407 

Intangible assets

   

   

20,300 

Goodwill

   

   

1,123,269 

Total assets acquired

   

   

1,168,623 

Liabilities assumed

   

   

(458,123)

Net assets acquired

   

$

710,500 



The purchase price consists of the following:







 

 

 



 

 

 

Common stock

   

$

710,500 

Total purchase price

   

$

710,500 



The following information presents unaudited pro forma consolidated results of operations for the six months ended June 30, 2015 as if the Livelenz acquisition described above had occurred on January 1, 2015. The pro forma financial information is not necessarily indicative of the operating results that would have occurred if the acquisition been consummated as of the date indicated, nor are they necessarily indicative of future operating results.







 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

Mobivity Holdings Corp.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

Six Months Ended June 30, 2015



 

 

 

 

 

 

 

 

 

 

 

 

 



 

Mobivity

 

Livelenz

 

Pro forma
adjustments

 

 

Pro forma
combined

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

2,031,417 

 

$

133,597 

 

$

 -

 

 

$

2,165,014 

Cost of revenues

 

 

533,952 

 

 

43,701 

 

 

 -

 

 

 

577,653 

Gross margin

 

 

1,497,465 

 

 

89,896 

 

 

 -

 

 

 

1,587,361 



 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

2,208,226 

 

 

47,427 

 

 

 -

 

 

 

2,255,653 

Sales and marketing

 

 

1,890,228 

 

 

144,466 

 

 

 -

 

 

 

2,034,694 

Engineering, research, and development

 

 

315,706 

 

 

 -

 

 

 -

 

 

 

315,706 

Depreciation and amortization

 

 

138,486 

 

 

2,045 

 

 

 -

 

 

 

140,531 

Total operating expenses

 

 

4,552,646 

 

 

193,938 

 

 

 -

 

 

 

4,746,584 



 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(3,055,181)

 

 

(104,042)

 

 

 -

 

 

 

(3,159,223)



 

 

 

 

 

 

 

 

 

 

 

 

 

Other income/(expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

547 

 

 

 -

 

 

 -

 

 

 

547 

Interest expense

 

 

 -

 

 

(20,580)

 

 

 -

 

 

 

(20,580)

Change in fair value of derivative liabilities

 

 

(6,815)

 

 

 -

 

 

 -

 

 

 

(6,815)

Gain on adjustment in contingent consideration

 

 

2,000 

 

 

 

 

 

 

 

 

 

2,000 

     Foreign Currency Gain/(Loss)

 

 

 -

 

 

21,045 

 

 

 -

 

 

 

21,045 

Total other income/(expense)

 

 

(4,268)

 

 

465 

 

 

 -

 

 

 

(3,803)



 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(3,059,449)

 

 

(103,577)

 

 

 -

 

 

 

(3,163,026)



 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 -

 

 

 -

 

 

 -

 

 

 

 -



 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(3,059,449)

 

$

(103,577)

 

$

 -

 

 

$

(3,163,026)



 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share - basic and diluted

 

$

(0.12)

 

 

 

 

 

 

 

 

$

(0.13)



 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares
during the period - basic and diluted

 

 

24,713,302 

 

 

 

 

 

 

 

 

 

24,713,302