Exhibit 99.2

 

LiveDeal, Inc.,

and Modern Everyday, Inc.

Pro Forma Consolidated Financial Statements

(unaudited)

 

 

 

Contents

 

 

   
  Page
   
   
Pro Forma Consolidated Financial Statements:  
   
Pro Forma Consolidated Balance Sheet  
    as of June 30, 2014 (unaudited) F-2
   
Pro Forma Consolidated Statements of Operations  
    for the nine months ended June 30, 2014 (unaudited)  F-3
   
Pro Forma Consolidated Statements of Operations  
    for the year ended September 30, 2013 (unaudited)  F-4
   
Notes to Pro Forma Consolidated Financial Statements (unaudited) F-5

 

 

 

F-1
 

 

Live Deal, Inc.,

and Modern Everyday, Inc.

Pro Forma Consolidated Balance Sheet

June 30, 2014

(unaudited)

 

   LiveDeal, Inc.   Modern Everyday, Inc.   Pro forma
Adjustments
   Pro forma
Consolidated
 
   (historical)   (historical)         
                 
Assets                    
Cash and cash equivalents  $10,343,408   $204,557   $(1,100,000)a $9,447,965 
Accounts receivable, net   1,612,533    208,666         1,821,199 
Inventory   676,636    1,127,392         1,804,028 
Prepaid expenses and other current assets   654,017    259,962         913,979 
Total current assets   13,286,594    1,800,577    (1,100,000)   13,987,171 
Accounts receivable, long term portion, net   44,638             44,638 
Property and equipment, net   144,368    8,350         152,718 
Deposits and other assets   53,863    19,392         73,255 
Intangible assets, net   2,830,362    111,376    1,439,553    4,381,291 
Total assets  $16,359,825   $1,939,695   $339,553   $18,639,073 
                     
Liabilities and Stockholders' Equity                    
Liabilities:                    
Accounts payable  $702,797   $302,471   $   $1,005,268 
Accrued liabilities   887,410    313,787    198,000 a  1,399,197 
Loan Payable       70,000         70,000 
Derivative liability   198,037             198,037 
Deferred Revenue       243         243 
Notes Payable   473,236    418,620    530,363 a  1,422,219 
Total current liabilities   2,261,480    1,105,121    728,363    4,094,964 
                     
Loan payable - long term       243,764         243,764 
Total liabilities   2,261,480    1,348,885    728,363    4,338,728 
                     
                     
Stockholders' equity:                    
Series E convertible preferred stock   10,866              10,866 
Common stock   14,375         50 a  14,425 
Paid in capital   44,334,102    230,000    (28,050)a  44,536,052 
Accumulated deficit   (30,260,998)   360,810    (360,810)a  (30,260,998)
Total stockholders' equity   14,098,345    590,810    (388,810)   14,300,345 
                     
Total liabilities and stockholders' equity  $16,359,825   $1,939,695   $339,553   $18,639,073 

 

See accompanying notes to pro forma consolidated financial statements

 

 

F-2
 

 

LiveDeal, Inc.,

and Modern Everyday, Inc.

Pro Forma Consolidated Statement of Operations

For the Nine Months ended June 30, 2014

(unaudited)

 

   LiveDeal, Inc.   Modern Everyday, Inc.   Pro forma
Adjustments
   Pro forma
Consolidated
 
    (Historical)    (Historical)           
                     
                     
Net revenues  $3,945,897   $7,902,758   $   $11,848,655 
Cost of services   2,746,465    4,490,504         7,236,969 
Gross profit   1,199,432    3,412,254        4,611,686 
                     
Operating expenses:                    
General and administrative expenses   3,658,497    716,926    215,933 b  4,591,356 
Sales and marketing expenses   409,061    2,777,604         3,186,665 
Total operating expenses   4,067,558    3,494,530    215,933    7,778,021 
Operating loss   (2,868,126)   (82,276)   (215,933)   (3,166,335)
Other expense:                    
Interest expense, net   (284,082)   (70,947)   (39,777)c  (394,806)
Other income   284,480    52,102         336,582 
Gain (loss) on derivative liability   (58,185)             (58,185)
Total other expense, net   (57,787)   (18,845)   (39,777)   (116,409)
                     
Net loss  $(2,925,913)  $(101,121)  $(255,710)  $(3,282,744)
                     
Earnings per share - basic and diluted:  $(0.23)            $(0.26)
Weighted average common shares outstanding:                    
Basic and diluted   12,751,344              12,801,344 

 

See accompanying notes to pro forma consolidated financial statements

 

 

F-3
 

 

LiveDeal, Inc.,

and Modern Everyday, Inc.

Pro Forma Consolidated Statement of Operations

For the Year Ended September 30, 2013

 

 

   LiveDeal, Inc.   Modern Everyday, Inc.   Pro forma
Adjustments
   Pro forma
Consolidated
 
    (Historical)    (Historical)           
                     
                     
Net revenues  $2,351,868   $7,159,343   $   $9,511,211 
Cost of services   916,331    3,728,343         4,644,674 
Gross profit   1,435,537    3,431,000        4,866,537 
                     
Operating expenses:                    
General and administrative expenses   4,114,843    829,166    287,911 b  5,231,920 
Sales and marketing expenses   58,788    2,483,647         2,542,435 
Total operating expenses   4,173,631    3,312,813    287,911    7,774,355 
Operating income (loss)   (2,738,094)   118,187    (287,911)   (2,907,818)
Other expense:                    
Interest expense, net   (3,291,031)   (104,462)   (53,036)c  (3,448,529)
Other income   279,403    209,222         488,625 
Total other expense, net   (3,011,628)   104,760    (53,036)   (2,959,904)
                     
Income (loss) from continuing operations   (5,749,722)   222,947    (340,947)   (5,867,722)
                     
Discontinued operations                    
Income from discontinued component, including disposal costs   2,708    656,314         659,022 
Income from discontinued operations   2,708    656,314        659,022 
                     
Net income (loss)  $(5,747,014)  $879,261   $(340,947)  $(5,208,700)
                     
Earnings per share - basic and diluted:                    
Loss from continuing operations  $(1.84)            $(1.84)
Discontinued operations  $0.00             $0.21 
Net loss  $(1.84)            $(1.64)
Weighted average common shares outstanding:                    
Basic and diluted   3,131,420              3,181,420 

 

See accompanying notes to pro forma consolidated financial statements

 

F-4
 

 

LiveDeal, Inc.,

and Modern Everyday, Inc.

Notes to Pro Forma Consolidated Financial Statements

 

 

NOTE 1 - BASIS OF PRESENTATION

 

On August 24, 2014, LiveDeal, Inc. (“LiveDeal”) and Modern Everyday Inc., a Delaware corporation (“MEI”), entered into a Stock Purchase Agreement whereby LiveDeal acquired 100% of the issued and outstanding shares of common stock (the “Shares”) of MEI.

 

The accompanying pro forma consolidated balance sheet presents the accounts of LiveDeal and MEI as if the acquisition occurred June 30, 2014. The accompanying pro forma consolidated statement of operations presents the accounts of LiveDeal and MEI for the nine months ended June 30, 2014 and the year ended September 30, 2014, as if the acquisition occurred on October 1, 2012.

 

The following adjustments would be required if the acquisition occurred as indicated above:

 

a.To allocate the purchase price of $2,030,363 consisting of $1,100,000 in cash, a non-interest bearing note payable of $600,000 (imputed interest at 10% per annum resulting in present value of $530,363) and 50,000 shares of the Company’s common stock with a guaranteed value of $400,000;

 

b.To record amortization of the purchased intangible assets assuming an estimated useful life of 60 months; and

 

c.To record interest expense on the $600,000 acquisition note payable.

 

The unaudited consolidated pro forma financial information is presented for informational purposes only and is subject to a number of uncertainties and assumptions and do not purport to represent what the company’s actual performance or financial position would have been had the transaction occurred on the dates indicated and does not purport to indicate the financial position or results of operations as of any future date or for any future period.

 

 

F-5