| Summary of Consideration Paid and Amounts of Identified Assets Acquired and Liabilities Assumed |
The following table summarizes the approximate consideration paid and the amounts of the identified assets acquired and liabilities assumed at the acquisition date:
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|
January 16, 2019
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|
Total adjusted purchase price
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|
$
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4,969,200
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|
|
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|
|
|
|
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|
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value:
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Cash
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51,300
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|
|
|
Prepaid and other current assets
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|
|
5,200
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|
|
|
Profit on purchased policies
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|
|
14,600
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|
|
|
Property, plant and equipment
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|
|
17,100
|
|
|
|
Accounts payable
|
|
|
(5,100
|
)
|
|
|
Accrued expenses and other liabilities
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|
|
(62,686
|
)
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|
|
Income taxes
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|
|
(28,500
|
)
|
|
|
Deferred revenue
|
|
|
(9,300
|
)
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|
|
Debt
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|
|
(703,000
|
)
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|
|
Preliminary estimate of the fair value of assets and liabilities assumed
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|
|
(720,386
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)
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|
|
|
|
|
|
|
|
|
Goodwill
|
|
$
|
5,689,586
|
|
|
|
| Summary of Results of Operations for IIU |
The accompanying unaudited pro forma statements of operations presents the accounts of LM Funding and IIU for the six- months ended June 30, 2019 and June 30, 2018, assuming the acquisition occurred on January 1, 2018:
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For the Three Months Ended June 30,
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|
For the Six Months Ended June 30,
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|
|
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2019
|
|
|
2018
|
|
|
2019
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|
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2018
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|
|
|
|
|
|
|
|
|
|
|
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|
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|
Revenues:
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|
|
840,021
|
|
|
|
1,077,981
|
|
|
|
1,617,288
|
|
|
|
2,182,073
|
|
|
Net commission revenue
|
|
|
840,021
|
|
|
|
1,077,981
|
|
|
|
1,617,288
|
|
|
|
2,182,073
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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|
Operating Expenses:
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|
1,227,838
|
|
|
|
867,977
|
|
|
|
2,452,886
|
|
|
|
1,981,074
|
|
|
Operating income (loss)
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|
(387,817
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)
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|
|
210,004
|
|
|
|
(835,598
|
)
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|
|
200,999
|
|
|
Investment income
|
|
|
-
|
|
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|
(110,335
|
)
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|
|
|
|
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(32,668
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)
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|
Gain on litigation
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|
|
-
|
|
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|
(405,000
|
)
|
|
|
-
|
|
|
|
(405,000
|
)
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|
Interest expense
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|
|
62,686
|
|
|
|
94,576
|
|
|
|
70,473
|
|
|
|
94,576
|
|
|
Income (loss) before income taxes
|
|
|
(450,503
|
)
|
|
|
630,763
|
|
|
|
(906,071
|
)
|
|
|
544,091
|
|
|
Income tax benefit
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,226
|
)
|
|
|
-
|
|
|
Net income (loss)
|
|
$
|
(450,503
|
)
|
|
$
|
630,763
|
|
|
$
|
(891,845
|
)
|
|
$
|
544,091
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Income (loss) per share:
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.14
|
)
|
|
$
|
1.01
|
|
|
$
|
(0.28
|
)
|
|
$
|
0.87
|
|
|
Diluted
|
|
|
(0.14
|
)
|
|
|
1.01
|
|
|
|
(0.28
|
)
|
|
|
0.87
|
|
|
Weighted average number of common shares outstanding:
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Basic
|
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|
3,134,261
|
|
|
|
625,319
|
|
|
|
3,133,106
|
|
|
|
625,319
|
|
|
Diluted
|
|
|
3,134,261
|
|
|
|
625,319
|
|
|
|
3,133,106
|
|
|
|
625,319
|
|
|
|
|
|
|
|
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