EX-99.3 5 ex_286800.htm EXHIBIT 99.3 ex_286800.htm

 

Exhibit 99.3

 

GREENBOX POS, INC.

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

 

On July 13, 2021, Greenbox POS, Inc. (“Company” or “Greenbox”) entered into a Membership Purchase Agreement, by and between Greenbox and Charge Savvy, LLC, a private limited liability company organized in the State of Illinois (“Charge Savvy”), and Charge Savvy’s three members (collectively, the “Sellers”). On July 13, 2021 (the “Closing Date”), the Company completed the acquisition of all outstanding membership interests in Charge Savvy, resulting in Charge Savvy becoming a wholly-owned subsidiary of the Company (the “Acquisition”). quid biopsy platform company.

 

The following unaudited pro forma consolidated financial information, including the notes hereto, is derived from and should be read in conjunction with Greenbox’s historical financial statements, related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, as filed with the United States Securities and Exchange Commission (the “SEC”) on March 30, 2021, as well as the historical financial statements and related notes of Charge Savvy for the year ended December 31, 2020, included in Exhibit 99.1 of this Current Report on Form 8-K/A. Both Greenbox’s and Charge Savvy’s fiscal years end on December 31.

 

The unaudited pro forma consolidated statements of operations for the three months ended March 31, 2021 and for the year ended December 31, 2020 combine the historical unaudited consolidated statements of operations of Charge Savvy for the period from January 1, 2021 through March 31, 2021 and for the year ended December 31, 2020 and the historical unaudited consolidated statements of operations of Greenbox for the three months ended March 31, 2021 and the year ended December 31, 2020, giving effect to the Acquisition as if it had occurred on January 1, 2020. The assumptions, estimates and adjustments herein have been made solely for purposes of developing this pro forma consolidated financial information. The Charge Savvy statements of operations have been adjusted to conform to accounting principles generally accepted in the United States (“US GAAP”).

 

The unaudited pro forma consolidated financial information set out below has been prepared in accordance with Article 11 of Regulation S-X, as amended by the SEC Final Rule Release No. 33 10786, Amendments to Financial Disclosures About Acquired and Disposed Businesses using accounting policies in accordance with US GAAP. The unaudited pro forma consolidated financial information does not include the realization of any future cost savings, restructuring or integration changes that may result from the Acquisition. The unaudited pro forma consolidated statements of operations should be read in conjunction with the accompanying notes to the unaudited pro forma consolidated financial information.

 

The unaudited pro forma consolidated financial information is presented for illustrative and informative purposes only and is not intended to represent what our results of operations would have been had the Acquisition actually occurred on the dates indicated. The pro forma results presented below are not necessarily indicative of what the Company’s consolidated results of operations may be in the future.

 

 

 

 
 

 

GREENBOX POS, INC.

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

AS OF MARCH 31, 2021

 

   

As of March 31, 2021

    

Transaction Accounting Adjustments

          
                           

Reclassification

    

Pro Forma

      

Total

    

Pro Forma

  
   

GreenBox POS

    

Charge Savvy

    

Combining

    

Adjustments

    

Adjustments

      

Adjustments

    

Combined

  
                                                           

ASSETS

                                                          
                                                           

Current Assets:

                                                          

Cash and cash equivalents

   $ 35,696,589     $ 39,903     $ 35,736,492     $ -     $ -       $ -     $ 35,736,492  

Accounts receivable, net

     10,000       9,275,766       9,285,766       -       -         -       9,285,766  

Accounts receivables from fines and fees from merchant, net

     2,789,230       -       2,789,230       -       -         -       2,789,230  

Inventory

     -       108,315       108,315       -       -         -       108,315  

Cash due from gateways, net

     11,848,709       -       11,848,709       -       -         -       11,848,709  

Prepaid and other current assets 

     2,452,753       77,908       2,530,661       -       -         -       2,530,661  

Loans to shareholders

     -       1,110,000       1,110,000       -       -         -       1,110,000  

Due from related party

     -       760,266       760,266       -       -         -       760,266  

Total current assets

     52,797,281       11,372,158       64,169,439       -       -         -       64,169,439  
                                                           

Non-current Assets:

                                                          

Property and equipment, net

     62,362       147,585       209,947       -       1,327,051  

(a) 

     1,327,051       1,536,998  
      -       -       -               (8,237 )

(b) 

     (8,237 )     (8,237 )

Operating lease right-of-use assets, net

     87,837       -       87,837       -       -         -       87,837  

Intangible assets

     -       -       -       -       6,523,760  

(c) 

     6,116,025       6,116,025  
      -       -       -               (407,735 )

(d) 

                

Goodwill

     -       -       -       -       3,653,409  

(e) 

     3,653,409       3,653,409  

Deposit - gateway reserve

     -       750,977       750,977       -       -         -       750,977  

Other assets

     81,636       -       81,636       -       -         -       81,636  

Total non-current assets

     231,835       898,562       1,130,397       -       11,088,248         11,088,248       12,218,645  
                                                           

Total assets

   $ 53,029,116     $ 12,270,720     $ 65,299,836     $ -     $ 11,088,248       $ 11,088,248     $ 76,388,084  
                                                           
                                                           

LIABILITIES AND STOCKHOLDERS' EQUITY

                                                    
                                                           

Current Liabilities:

                                                          

Accounts payable

   $ 178,038     $ 4,592,831     $ 4,770,869     $ -     $ -       $ -     $ 4,770,869  

Other current liabilities 

     98,995       -       98,995       -       -         -       98,995  

Payment processing liabilities, net

     5,355,115       1,200,000       6,555,115       -       -         -       6,555,115  

Current - Notes payable

     -       4,741       4,741       -       -         -       4,741  

Loan payable to shareholders

     -       135,479       135,479       -       -         -       135,479  

Note payable, payroll protection plan loan

     272,713       127,998       400,711       -       -         -       400,711  

Current portion of operating lease liabilities

     89,017       -       89,017       -       -         -       89,017  
                                                           

Total current liabilities

     5,993,878       6,061,049       12,054,927       -       -         -       12,054,927  

Long-term debt

     149,900       145,259       295,159       -       -         -       295,159  
                                                           

Total liabilities

     6,143,778       6,206,308       12,350,086       -       -         -       12,350,086  
                                                           

Commitments and contingencies

                                                          
                                                           

Stockholders' Equity (Deficit):

                                                          

Common stock

     40,918       -       40,918       -       1,000  

(f) 

     1,000       41,918  

Additional paid-in capital

     71,898,401       -       71,898,401       -       12,139,000  

(f) 

     12,139,000       84,037,401  
                                      (711,926 )

(h) 

     (711,926 )     (711,926 )

Accumulated deficit

     (25,053,981 )     -       (25,053,981 )     -       -         -       (25,053,981 )

Members' equity

     -       6,064,412       6,064,412       -       1,740,035  

(g) 

     (339,826 )     5,724,586  
                                      (415,972 )

(b) (c) 

                
                                      (1,663,889 )

(j) 

                

Total stockholders' equity (deficit)

     46,885,338       6,064,412       52,949,750       -       11,088,248         11,088,248       64,037,998  
                                                           

Total liabilities and stockholder's equity

   $ 53,029,116     $ 12,270,720     $ 65,299,836     $ -     $ 11,088,248       $ 11,088,248     $ 76,388,084  

 

See accompanying notes to the unaudited pro forma condensed consolidated financial information

 

 
 

 

GREENBOX POS, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2021

 

   

Three Months Ended March 31, 2021

    

Transaction Accounting Adjustments

          
                           

Reclassification

    

Pro Forma

      

Total

    

Pro Forma

  
   

GreenBox POS

    

Charge Savvy

    

Combining

    

 Adjustments

    

 Adjustments

      

 Adjustments

    

 Combined

  
                                                           

Net revenue

   $ 4,749,441     $ 458,413     $ 5,207,854     $ -     $ -       $ -     $ 5,207,854  

Cost of revenue

     1,593,771       192,069       1,785,840       -       -         -       1,785,840  
                                                           

Gross profit

     3,155,670       266,344       3,422,014       -       -         -       3,422,014  
                                                           

Operating expenses:

                                                          

Advertising and marketing

     24,725       252,545       277,270       -       -         -       277,270  

Research and development

     653,381       140,080       793,461       -       -         -       793,461  

Payroll and payroll taxes

     559,201       278,079       837,280       -       -         -       837,280  

Professional fees

     457,752       42,940       500,692       -       -         -       500,692  

Stock compensation for employees

     797,613       -       797,613       -       -         -       797,613  

Stock compensation for services

     9,453,825       -       9,453,825       -       -         -       9,453,825  

General and administrative

     566,195       139,195       705,390       -       -         -       705,390  

Depreciation and amortization

     6,009       5,420       11,429       -       415,972  

 (b) (c)

    415,972       427,401  

Total operating expenses

     12,518,701       858,259       13,376,960       -       415,972         415,972       13,792,932  
                                                           

Income (Loss) from operations

     (9,363,031 )     (591,915 )     (9,954,946 )     -       (415,972 )       (415,972 )     (10,370,918 )
                                                           

Other income (expense):

                                                          

Interest expense - debt discount

     (2,993,408 )     -       (2,993,408 )     -       -         -       (2,993,408 )

Interest income or (expense)

     (594,258 )     14,834       (579,424 )     -       -         -       (579,424 )

Derivative expense

     -       -       -       -       -         -       -  

Changes in fair value of derivative liability

     -       -       -       -       -         -       -  

Merchant fines and penalty income

     -       -       -       -       -         -       -  

Merchant liability settlement

     (364,124 )     -       (364,124 )     -       -         -       (364,124 )

Other income or expense

     (14,611 )     -       (14,611 )     -       -         -       (14,611 )

Total other expense, net

     (3,966,401 )     14,834       (3,951,567 )     -       -         -       (3,951,567 )
                                                           

Loss before provision for income taxes

     (13,329,432 )     (577,081 )     (13,906,513 )     -       (415,972 )       (415,972 )     (14,322,485 )
                                                           

Provision for income taxes

     -               -       -       -         -       -  
                                                           

Net income (loss)

   $ (13,329,432 )   $ (577,081 )   $ (13,906,513 )   $ -     $ (415,972 )     $ (415,972 )   $ (14,322,485 )

 

See accompanying notes to the unaudited pro forma condensed consolidated financial information

 

 
 

 

GREENBOX POS, INC.

UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET

AS OF DECEMBER 31, 2020

 

   

As of December 31, 2021

    

Transaction Accounting Adjustments

          
                           

Reclassification

    

Pro Forma

      

Total

    

Pro Forma

  
   

GreenBox POS

    

Charge Savvy

    

Combining

    

 Adjustments

    

 Adjustments

      

 Adjustments

    

 Combined

  
                                                           

ASSETS

                                                          
                                                           

Current Assets:

                                                          

Cash and cash equivalents

   $ -     $ 50,256     $ 50,256     $ -     $ -       $ -     $ 50,256  

Restricted cash

     1,832,735       -       1,832,735       -       -         -       1,832,735  

Accounts receivable, net

     10,000       9,298,202       9,308,202       -       -         -       9,308,202  

Accounts receivables from fines and fees from merchant, net

     2,789,230       -       2,789,230       -       -         -       2,789,230  

Inventory

     -       131,412       131,412       -       -         -       131,412  

Cash due from gateways, net

     7,303,949       -       7,303,949       -       -         -       7,303,949  

Prepaid and other current assets 

     70,130       63,572       133,702       -       -         -       133,702  

Loans to shareholders

     -       1,110,000       1,110,000       -       -         -       1,110,000  

Due from related party

     -       763,393       763,393       -       (763,393 )       (763,393 )     -  

Total current assets

     12,006,044       11,416,835       23,422,879       -       (763,393 )       (763,393 )     22,659,486  
                                                           

Non-current Assets:

                                                          

Property and equipment, net

     57,264       153,006       210,270       -       1,360,000  

 (a)

  $ 1,327,051       1,537,321  
      -       -       -               (32,949 )

 (b)

               

Operating lease right-of-use assets, net

     117,795       -       117,795       -       -         -       117,795  

Intangible assets

     -       -       -       -       8,154,700  

 (c)

    8,154,700       8,154,700  
                                      (1,630,940 )

 (d)

    (1,630,940 )     (1,630,940 )

Goodwill

     -       -       -               3,653,409  

 (e)

    3,653,409       3,653,409  

Deposit - gateway reserve

     -       750,977       750,977       -       -         -       750,977  

Other assets

     81,636       -       81,636       -       -         -       81,636  

Total non-current assets

     256,695       903,983       1,160,678       -       11,504,220         11,504,220       12,664,898  
                                                           

Total assets

   $ 12,262,739     $ 12,320,818     $ 24,583,557     $ -     $ 10,740,827       $ 10,740,827     $ 35,324,384  
                                                           
                                                           

LIABILITIES AND STOCKHOLDERS' EQUITY

                                                    
                                                           

Current Liabilities:

                                                          

Accounts payable

   $ 210,094     $ 4,200,827     $ 4,410,921     $ -     $ -       $ -     $ 4,410,921  

Other current liabilities 

     68,138       -       68,138       -       -         -       68,138  

Payment processing liabilities, net

     10,199,956       1,200,000       11,399,956       -       -         -       11,399,956  

Current - Notes payable

     -       110,113       110,113       -       -         -       110,113  

Note payable, payroll protection plan loan

     272,713       -       272,713       -       -         -       272,713  

Convertible debt, net of debt discount

     856,592       -       856,592       -       -         -       856,592  

Derivative liability

     -       -       -       -       -         -       -  

Current portion of operating lease liabilities

     120,110       -       120,110       -       -         -       120,110  
                                                           

Total current liabilities

     11,727,603       5,510,940       17,238,543       -       -         -       17,238,543  

Operating lease liabilities, less current portion

     -       -       -       -       -         -       -  

Long-term debt

     149,900       167,885       317,785       -       -         -       317,785  
                                                           

Total liabilities

     11,877,503       5,678,825       17,556,328       -       -         -       17,556,328  
                                                           

Stockholders' Equity (Deficit):

                                                          

Common stock

     30,711       -       30,711       -       1,000  

 (f)

    1,000       31,711  

Additional paid-in capital

     12,079,074       -       12,079,074       -       12,139,000  

 (f)

    12,139,000       24,218,074  
      -       -       -       -       (1,475,319 )

 (i)

    (1,475,319 )     (1,475,319 )

Accumulated deficit

     (11,724,549 )     -       (11,724,549 )     -       -         -       (11,724,549 )

Members' equity

     -       6,641,993       6,641,993       -       1,740,035  

 (g)

    76,146       6,718,139  
                                      (1,663,889 )

 (b) (d)

               

Total stockholders' equity (deficit)

     385,236       6,641,993       7,027,229       -       10,740,827         10,740,827       17,768,056  
                                                           

Total liabilities and stockholder's equity

   $ 12,262,739     $ 12,320,818     $ 24,583,557     $ -     $ 10,740,827       $ 10,740,827     $ 35,324,384  

 

See accompanying notes to the unaudited pro forma condensed consolidated financial information

 

 
 

 

GREENBOX POS, INC.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2020

(in thousands, except per share data and in United States dollars, except where noted)

 

   

Year Ended December 31, 2020

    

Transaction Accounting Adjustments

          
                           

Reclassification

    

Pro Forma

      

Total

    

Pro Forma

  
   

GreenBox POS

    

Charge Savvy

    

Combining

    

 Adjustments

    

 Adjustments

      

 Adjustments

    

 Combined

  
                                                           

Net revenue

   $ 8,525,015     $ 43,485,295     $ 52,010,310     $ -     $ (303,974 )

 (h)

  $ (303,974 )   $ 51,706,336  

Cost of revenue

     4,825,587       27,403,121       32,228,708       -       (303,974 )

 (h)

    (303,974 )     31,924,734  
                                                           

Gross profit

     3,699,428       16,082,174       19,781,602       -       -         -       19,781,602  
                                                           

Operating expenses:

                                                          

Advertising and marketing

     93,868       20,856       114,724       -       -         -       114,724  

Research and development

     1,363,757       422,849       1,786,606       -       -         -       1,786,606  

Payroll and payroll taxes

     1,796,160       980,418       2,776,578       -       -         -       2,776,578  

Professional fees

     1,691,107       209,865       1,900,972       -       -         -       1,900,972  

General and administrative

     3,836,120       5,918,232       9,754,352       -       -         -       9,754,352  

Depreciation and amortization

     22,742       21,333       44,075       -       1,663,889  

 (b) (c)

    1,663,889       1,707,964  

Total operating expenses

     8,803,754       7,573,553       16,377,307       -       1,663,889         1,663,889       18,041,196  
                                                           

Income (Loss) from operations

     (5,104,326 )     8,508,621       3,404,295       -       (1,663,889 )       (1,663,889 )     1,740,406  
                                                           

Other income (expense):

                                                          

Interest expense - debt discount

     (359,493 )     -       (359,493 )     -       -         -       (359,493 )

Interest income or (expense)

     (1,149,677 )     (162,259 )     (1,311,936 )     -       -         -       (1,311,936 )

Derivative expense

     (641,366 )     -       (641,366 )     -       -         -       (641,366 )

Changes in fair value of derivative liability

     (383,769 )     -       (383,769 )     -       -         -       (383,769 )

Merchant fines and penalty income

     2,630,796       -       2,630,796       -       -         -       2,630,796  

Other income or expense

     455       35,666       36,121       -       -         -       36,121  

Total other expense, net

     96,946       (126,593 )     (29,647 )     -       -         -       (29,647 )
                                                           

Income (Loss) before provision for income taxes

     (5,007,380 )     8,382,028       3,374,648       -       (1,663,889 )       (1,663,889 )     1,710,759  
                                                           

Provision for income taxes

     -       -       -       -       -         -       -  
                                                           

Net income (loss)

   $ (5,007,380 )   $ 8,382,028     $ 3,374,648     $ -     $ (1,663,889 )     $ (1,663,889 )   $ 1,710,759  

 

See accompanying notes to the unaudited pro forma condensed consolidated financial information

 

 
 

 

Greenbox POS, Inc.

Notes to the Unaudited Pro Forma Consolidated Financial Information

(in thousands of United States Dollars, unless otherwise stated)

 

Note 1. Description of the Transaction

 

On July 13, 2021 (the “Closing Date”), GreenBox POS (the “Company”) entered into and closed on a Membership Interest Purchase Agreement (the “Purchase Agreement”) with Charge Savvy LLC, an Illinois limited liability company (“Charge Savvy”), and Charge Savvy’s three members (collectively, the “Sellers”). As a result of the Purchase Agreement, the Company purchased all of Charge Savvy’s issued and outstanding membership interests from the Sellers and Charge Savvy became a wholly owned subsidiary of the Company. Although the Purchase Agreement is dated July 9th, it was entered into and closed on July 13th.The purchase price under the Purchase Agreement for the all-stock transaction consisted of 1,000,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) being issued and delivered to Sellers in proportion to the Sellers’ share of their membership interests in Charge Savvy.  The share price at issuance was $12.14.Charge Savvy is a global Fintech company that specializes on developing software and providing payment processing and point of sale services to the merchant services industry. Charge Savvy also owns an approximately 61,000 square foot office building located in Chicago, Illinois where it is headquartered.

 

Note 2. Basis of Pro Forma Presentation

 

The Acquisition was accounted for under the acquisition method of accounting. The Company accounts for acquisitions of entities that include inputs and processes and have the ability to create outputs as business combinations. The tangible and identifiable intangible assets acquired and liabilities assumed in a business combination are recorded based on their estimated fair values as of the business combination date, including identifiable intangible assets which either arise from a contractual or legal right or are separable from goodwill. The Company bases the estimated fair value of identifiable intangible assets acquired in a business combination on independent third-party valuations that use information and assumptions provided by its management, which consider estimates of inputs and assumptions that a market participant would use. Any excess purchase price over the estimated fair value assigned to the net tangible and identifiable intangible assets acquired and liabilities assumed is recorded to goodwill. The use of alternative valuation assumptions, including estimated revenue projections, growth rates, estimated cost savings, cash flows, discount rates, estimated useful lives and probabilities surrounding the achievement of contingent milestones could result in different purchase price allocations and amortization expense in current and future periods. Transaction costs associated with acquisitions are expensed as incurred in general and administrative expenses. Results of operations and cash flows of acquired companies are included in the Company’s operating results from the date of acquisition.

 

The pro forma adjustments and allocations of the preliminary business combination fair value have been presented in Note 4. Business Combination Fair Value and Allocation and are based in part on estimates of the fair value of assets acquired and liabilities assumed. Any change to the preliminary business combination fair value and allocation could materially affect the allocation of the purchase price to the assets and liabilities presented in the unaudited pro forma consolidated financial information.

 

The unaudited pro forma consolidated financial information included herein has been prepared by the Company pursuant to the rules and regulations of the SEC for the purposes of inclusion in Greenbox’s amended Current Report on Form 8-K/A prepared in connection with the acquisition of Charge Savvy. Certain information and disclosures normally included in financial statements prepared in accordance with US GAAP have been or omitted pursuant to such rules and regulations. The significant accounting policies used in preparing the unaudited pro forma consolidated financial information are set out in the Company’s consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2020, as filed with the SEC on March 30, 2021.

 

 
 

 

Note 3. Pro Forma Adjustments

 

The unaudited pro forma consolidated balance sheet and statement of operations for the year ended December 31, 2020 have been adjusted to give effect to the Acquisition as if it had occurred on January 1, 2020 and include pro forma adjustments to:

 

(a)          Record land and building under purchase accounting under ASC 805. The land and building were valued at $75,000 and $1,285,000, respectively.

 

(b)          Recording of depreciation of building that was recorded under ASC 805 for the current year.         

 

(c)          Record intangible assets under purchase accounting under ASC 805.                                    

 

(d)          Recording of amortization of intangible assets recorded under ASC 805 for the current year.         

                                                                                 

(e)          Recording of goodwill under purchase accounting under ASC 805.       

                                                        

(f)          Issuances of 1,000,000 shares of Greenbox POS common stock to ChargeSavvy Members for the purchases of all members' interest of ChargeSavvy LLC.

 

(g)          Reflects the elimination of ChargeSavvy's historical members' equity balance.                           

 

(h)          Reflects the intercompany elimination of the impact of revenue and cost transactions between GreenBox and ChargeSavvy.                  

 

(i)          Reflects pro forma adjustments related to differences in net assets and liabilities between closing date of the acquisition and historical balance sheet date.

 

The unaudited pro forma consolidated balance sheet and statement of operations for the period ended March 31, 2021 have been adjusted to give effect to the Acquisition as if it had occurred on January 1, 2020 and include pro forma adjustments to:

 

(a)          Record land and building under purchase accounting under ASC 805. The land and building were valued at $75,000 and $1,285,000, respectively.                                                                                 

 

(b)          Recording of depreciation of building that was recorded under ASC 805 for the current period.

 

(c)          Record intangible assets under purchase accounting under ASC 805.                                             

 

(d)          Recording of amortization of intangible assets recorded under ASC 805 for the current period.         

 

(e)          Recording of goodwill under purchase accounting under ASC 805.                                    

 

(f)          Issuances of 1,000,000 shares of Greenbox POS common stock valued at $12.14 per share at the date of acquisition to ChargeSavvy Members for the purchases of all members' interest of ChargeSavvy LLC.                  

 

(g)          Reflects the elimination of ChargeSavvy's historical members' equity balance.                           

 

(h)          Reflects pro forma adjustments related to differences in net assets and liabilities between closing date of the acquisition and historical balance sheet date.                                                                        

 

(i)          Reflects the accrual of the transaction costs related to the Acquisition to record transaction costs related to the Acquisition of $51 million from other current liabilities as of March 31, 2021.                                    

 

(j)          Reflects prior period pro forma adjustments related to depreciation and amortization expense.         

 

 
 

 

Note 4. Preliminary Acquisition Accounting

 

The following table presents the purchase price consideration:

 

Common stock issued to Members(1)

   $ 12,140,000  

Purchase price consideration

   $ 12,140,000  

 

(1) The common stock component of the purchase price consideration is determined based on the following:

 

   

Shares

    

Per Share

    

Total

  

(1)Greenbox POS shares issued to Members

     1,000,000     $ 12.14     $ 12,140,000  

 

The following table presents the preliminary purchase price allocation of the assets acquired and the liabilities assumed in the Acquisition as of March 31, 2021, using currently available information:

 

Assets acquired

        

Cash and cash equivalents

   $ 1,485,006  

Accounts receivable

     24,655  

Inventory

     116,874  

Property and equipment

     141,717  

Land and building

     755,032  

Other Assets

     881,260  

Total assets acquired

     3,404,544  
         

Liabilities assumed

        

Accounts payable and accrued expenses

     229,352  

Merchant payables

     3,302,243  

Loan payable - EIDL

     146,026  

Total liabilities assumed

     3,677,621  
         

Net Assets Acquired

     (273,077 )
         

Total purchase price

   $ 12,140,000  
         

Total purchase price to be allocated

   $ 12,413,077  
         

Purchase price allocation:

        

Goodwill

   $ 3,653,409  

Business intellectual properties

     2,611,088  

Customer relationship

     5,543,612  

Land and building

     604,968  

Total purchase price allocated

   $ 12,413,077  

 

Preliminary identifiable intangible assets in the unaudited pro forma combined financial information consist of the following:

 

    Fair Value    

Estimated Weighted Average Amortization Period

  
   

 

         

Customer relationships

     5,543,612       5  

Technology

     2,611,088       5  

Total estimated acquired intangible assets

     8,154,700