| 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:
|
|
January 16, 2019
|
|
|
|
Total adjusted purchase price
|
$
|
4,969,200
|
|
|
|
Recognized preliminary amounts of identifiable assets acquired and (liabilities assumed), at fair value:
|
|
|
|
|
|
Cash
|
|
51,300
|
|
|
|
Prepaid and other current assets
|
|
5,200
|
|
|
|
Profit on purchased policies
|
|
14,600
|
|
|
|
Property, plant and equipment
|
|
17,100
|
|
|
|
Accounts payable
|
|
(5,100
|
)
|
|
|
Accrued expenses and other liabilities
|
|
(62,686
|
)
|
|
|
Income taxes
|
|
(28,500
|
)
|
|
|
Deferred revenue
|
|
(9,300
|
)
|
|
|
Debt
|
|
(703,000
|
)
|
|
|
Preliminary estimate of the fair value of assets and liabilities assumed
|
|
(720,386
|
)
|
|
|
|
|
|
|
|
|
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 nine- months ended September 30, 2019 and September 30, 2018, assuming the acquisition occurred on January 1, 2018:
|
|
|
For the Three Months
Ended September 30,
|
|
|
For the Nine Months
Ended September 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
Revenues:
|
|
|
773,748
|
|
|
|
960,319
|
|
|
|
2,391,036
|
|
|
|
3,142,392
|
|
|
Net commission revenue
|
|
|
773,748
|
|
|
|
960,319
|
|
|
|
2,391,036
|
|
|
|
3,142,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses:
|
|
|
1,020,211
|
|
|
|
1,089,936
|
|
|
|
3,473,097
|
|
|
|
3,071,010
|
|
|
Operating income (loss)
|
|
|
(246,463
|
)
|
|
|
(129,617
|
)
|
|
|
(1,082,061
|
)
|
|
|
71,382
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of assets
|
|
|
(6,421
|
)
|
|
|
-
|
|
|
|
(6,421
|
)
|
|
|
-
|
|
|
Gain on litigation
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(405,000
|
)
|
|
Investment income
|
|
|
-
|
|
|
|
(1,019
|
)
|
|
|
-
|
|
|
|
(33,687
|
)
|
|
Interest expense
|
|
|
39,605
|
|
|
|
388,982
|
|
|
|
110,078
|
|
|
|
483,558
|
|
|
Income (loss) before income taxes
|
|
|
(279,647
|
)
|
|
|
(517,580
|
)
|
|
|
(1,185,718
|
)
|
|
|
26,511
|
|
|
Income tax benefit
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,226
|
)
|
|
|
-
|
|
|
Net income (loss)
|
|
$
|
(279,647
|
)
|
|
$
|
(517,580
|
)
|
|
$
|
(1,171,492
|
)
|
|
$
|
26,511
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.09
|
)
|
|
$
|
(0.83
|
)
|
|
$
|
(0.37
|
)
|
|
$
|
0.04
|
|
|
Diluted
|
|
|
(0.09
|
)
|
|
|
(0.83
|
)
|
|
|
(0.37
|
)
|
|
|
0.04
|
|
|
Weighted average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
3,134,160
|
|
|
|
625,318
|
|
|
|
3,133,495
|
|
|
|
625,318
|
|
|
Diluted
|
|
|
3,134,160
|
|
|
|
625,318
|
|
|
|
3,133,495
|
|
|
|
625,318
|
|
|