EX-99.3 4 f6k0719ex99-3_luokung.htm PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

Exhibit 99.3

 

LUOKUNG TECHNOLOGY CORP.

Pro forma Consolidated Balance Sheets

As of December 31, 2018

(unaudited)

 

    (1)    (2)   Pro forma      Pro forma 
    Luokung    SuperEngine    Adjustments      Consolidated 
ASSETS   (historical)    (historical)             
CURRENT ASSETS                      
Cash and cash equivalents  $572,173   $620,045    -     $1,192,218 
Accounts receivable, net of allowance for doubtful accounts   22,563,608    185,032    (87,046) (C)   22,661,594 
Other receivables and prepayment   2,732,238    320,993    (304,231) (C)   2,749,000 
Amounts due from related parties   4,935,698    -    -      4,935,698 
Total current assets   30,803,717    1,126,070    (391,277)     31,538,510 
NON-CURRENT ASSETS                      
Property and equipment, net   852,158    45,849    -      898,007 
Intangible assets, net   652    494,725    52,268,621  (B)   52,763,998 
Goodwill   7,239,936    -    4,488,664  (B)   11,728,600 
Other receivable,net(Long term)   72,852    77,434    -      150,286 
Total non-current assets   8,165,598    618,008    56,757,285      65,540,891 
Total assets  $38,969,315   $1,744,078    56,366,008     $97,079,401 
                       
LIABILITIES AND SHAREHOLDERS’ EQUITY(DEFICIENCY)                      
CURRENT LIABILITIES                      
Accounts payable  $758,386   $-    -     $758,386 
Accrued liabilities and other payables   29,518,348    272,477    (264,713) (C)   29,526,112 
Tax payable   -    71,358    -      71,358 
Amounts due to related parties   3,378,031    116,564    (116,564) (C)   3,378,031 
Total current liabilities   33,654,765    460,399    (381,277)     33,733,887 
NON-CURRENT LIABILITIES                      
Accrued liabilities and other payables   244,755    -    -      244,755 
Total liabilities   33,899,520    460,399    (381,277)     33,978,642 
OWNERS’ EQUITY(DEFICIENCY)                      
Preferred shares   10000    -    -      10,000 
Common stock   1,870,976    10,000    112,200  (A)   1,993,176 
Additional paid-in capital   42,248,014    4,792,871    55,084,929  (A)(B)   102,125,814 
Accumulated deficit   (39,897,066)   (3,397,866)   1,431,238  (B)   (41,863,694)
Accumulated other comprehensive loss   837,871    (121,326)   118,918      835,463 
Total owners’ equity(deficiency)   5,069,795    1,283,679    56,747,285      63,100,759 
Total liabilities and owners’ equity(deficiency)  $38,969,315   $1,744,078    56,366,008     $97,079,401 

  

(A) Reflection of the acquisition of Superengine, 12,219,959 Ordinary Shares of Luokung were issued as consideration
(B) Reflection of the acquisition of Superengine for an aggregate purchase price of US$60 million
(C) Elimination of the transaction between Luokung and Superengine

 

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LUOKUNG TECHNOLOGY CORP.

Pro forma Consolidated Statements of Comprehensive Loss

For the Year Ended December 31, 2018

(unaudited)

 

           Pro forma     Pro forma 
   Luokung   SuperEngine   Adjustments     Consolidated 
    (historical)    (historical)             
Sales  $20,657,735   $1,010,552    (45,596) (A)  $21,622,691 
                       
Cost of sales   (6,911,561)   (126,787)          (7,038,348)
                       
GROSS PROFIT   13,746,174    883,765    (45,596)     14,584,343 
                       
Operating expenses                      
Selling, General and administrative expenses   (21,056,828)   (1,403,527)          (22,460,355)
Research and development   (1,318,393)   (924,626)   (1,756,770) (A)(B)   (3,999,789)
Total operating expenses   (22,375,221)   (2,328,153)   (1,756,770)     (26,460,144)
                       
Loss from operations   (8,629,047)   (1,444,388)          (11,875,801)
                       
Other income (expenses):                      
Interest income (expense), net   (65,251)   4,949           (60,302)
Foreign exchange gains(losses)   (1,204,001)   -           (1,204,001)
Other income (expense), net   (62,609)   508,347           445,738 
                       
(LOSS) INCOME BEFORE INCOME TAXES   (9,960,908)   (931,092)          (12,694,366)
                       
INCOME TAXES   -    (74,009)          (74,009)
                       
NET LOSS   (9,960,908)   (1,005,101)          (12,768,375)
                       
OTHER COMPREHENSIVE INCOME:                      
Foreign currency translation adjustments   449,653    (5,570)          444,083 
                       
COMPREHENSIVE LOSS  $(9,511,255)  $(1,010,671)         $(12,324,292)
Net loss per share - basic and diluted   (0.14)   (364.86)          (0.17)
Weighted average shares outstanding-basis and diluted   68,667,748    2,770           72,919,624 

 

(A) Elimination of the transaction between Luokung and Superengine
(B) Reflection of the amortization expense of intangible asset amounts to USD 1,802,366

 

 

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