EX-99.3 4 exhibit993.htm EXHIBIT 99.3
Exhibit 99.3
 
 
BOSTON OMAHA CORPORATION

AND I-85 ADVERTISING, LLC

UNAUDITED PRO FORMA COMBINED BALANCE SHEET
AND
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS


JUNE 30, 2015
 
 

BOSTON OMAHA CORPORATION
AND I-85 ADVERTISING, LLC
 
 UNAUDITED PRO FORMA COMBINED BALANCE SHEET  
 JUNE 30, 2015  
   
ASSETS
 
                         
         
Pro Forma
         
Pro Forma
 
   
Boston Omaha
   
Adjustments
   
Notes
   
Combined
 
                         
Current Assets:
                       
  Cash
 
$
3,684,317
   
$
(1,294,900
)
   
(2
)
 
$
2,389,417
 
  Prepaid expense
   
6,600
                     
6,600
 
                                 
     Total Current Assets
   
3,690,917
     
(1,294,900
)
           
2,396,017
 
                                 
Property and Equipment:
                               
  Structures and displays
   
3,192,692
     
587,500
     
(2
)
   
3,780,192
 
  Accumulated depreciation
   
(6,415
)
                   
(6,415
)
                                 
     Total Property and Equipment, net
   
3,186,277
     
587,500
             
3,773,777
 
                                 
Other Assets:
                               
  Intangible assets
   
3,476,354
     
707,400
     
(2
)
   
4,183,754
 
  Investment in unconsolidated affiliate
   
55,678
                     
55,678
 
                                 
     Total Other Assets
   
3,532,032
     
707,400
             
4,239,432
 
                                 
     Total Assets
 
$
10,409,226
   
$
-
           
$
10,409,226
 
                                 
LIABILITIES AND STOCKHOLDERS' EQUITY     
 
                                 
Current Liabilities:
                               
  Accounts payable and accrued expenses
 
$
370,246
   
$
-
           
$
370,246
 
  Accounts payable, stockholder
   
2,721
     
-
             
2,721
 
  Notes payable, stockholders
   
100,000
     
-
             
100,000
 
  Note payable, related party
   
135,494
     
-
             
135,494
 
  Accrued interest, stockholders
   
1,876
     
-
             
1,876
 
  Accrued interest, related party
   
2,739
     
-
             
2,739
 
                                 
     Total Current Liabilities
   
613,076
     
-
             
613,076
 
                                 
Stockholders' Equity:
                               
Preferred stock, $.001 par value, 3,000,000 shares authorized, 0 shares issued and outstanding
   
-
     
-
             
-
 
 
                               
Common stock, $.001 par value, 18,000,000 shares authorized, 268,000 shares issued and outstanding
   
268
     
-
             
268
 
 
                               
Class A common stock, $.001 par value, 12,000,000 shares authorized, 1,055,560 and 0 shares issued and outstanding, respectively
   
1,056
     
-
             
1,056
 
Additonal paid-in capital
   
10,563,993
     
-
             
10,563,993
 
Accumulated deficit
   
(769,167
)
   
-
             
(769,167
)
                                 
Total Stockholders' Equity
   
9,796,150
     
-
             
9,796,150
 
                                 
Total Liabilities and Stockholders' Equity
 
$
10,409,226
   
$
-
           
$
10,409,226
 
 
See accompanying notes to unaudited pro forma combined financial statements.
2

BOSTON OMAHA CORPORATION
AND I-85 ADVERTISING, LLC
 
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2015
                         
         
Pro Forma
         
Pro Forma
 
   
Boston Omaha
   
Adjustments
   
Notes
   
Combined
 
Revenues:
                       
  Consulting fees
 
$
9,700
     
-
         
$
9,700
 
  Billboard rentals
   
-
     
26,140
     
(2
)
   
26,140
 
                                 
     Total Revenues
   
9,700
     
26,140
             
35,840
 
                                 
Costs and Expenses:
                               
  Professional fees
   
212,545
     
274
     
(2
)
   
212,819
 
  Depreciation and amortization
   
21,973
     
22,194
     
(2
)
   
44,167
 
  Leased employees
   
6,662
     
-
             
6,662
 
  Contract services
   
4,400
     
-
             
4,400
 
  Ground rents
   
-
     
3,921
     
(2
)
   
3,921
 
  Repairs and maintenance
   
-
     
2,538
     
(2
)
   
2,538
 
  Travel and entertainment
   
1,877
     
-
             
1,877
 
  General and administrative
   
1,142
     
-
             
1,142
 
                                 
     Total Costs and Expenses
   
248,599
     
28,927
             
277,526
 
                                 
(Loss) Income from Operations
   
(238,899
)
   
(2,787
)
           
(241,686
)
                                 
Other Income (Expense):
                               
  Equity in income (loss) of unconsolidated affiliate
   
8,414
     
-
             
8,414
 
  Interest expense
   
(16,303
)
   
-
             
(16,303
)
                                 
(Loss) Income Before Income Tax
   
(246,788
)
   
(2,787
)
           
(249,575
)
                                 
Income Tax (Provision) Benefit
   
-
     
1,129
     
(3b
)
   
1,129
 
                                 
Net (Loss) Income
 
$
(246,788
)
 
$
(1,658
)
         
$
(248,446
)
                                 
Basic and Diluted Net (Loss) Income per share
   
(0.73
)
           
(3a
)
   
(0.74
)
                                 
Basic and Diluted Weighted Average Shares Outstanding
   
337,982
             
(3a
)
   
337,982
 

 
 
See accompanying notes to unaudited pro forma combined financial statements.
3

BOSTON OMAHA CORPORATION
AND I-85 ADVERTISING, LLC
 
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2014
         
Pro Forma
         
Pro Forma
 
   
Boston Omaha
   
Adjustments
   
Notes
   
Combined
 
Revenues:
                       
  Consulting fees
 
$
43,874
   
$
3,400
         
$
47,274
 
  Billboard rentals
   
-
     
-
     
(2
)
   
-
 
                                 
     Total Revenues
   
43,874
     
3,400
             
47,274
 
                                 
Costs and Expenses:
                               
  Professional fees
   
66,715
     
-
             
66,715
 
  Advertising
   
-
     
1,937
     
(2
)
   
1,937
 
  Depreciation and amortization
   
-
     
44,389
     
(2
)
   
44,389
 
  Ground rents
   
-
     
1,530
     
(2
)
   
1,530
 
  Repairs and maintenance
   
-
     
524
     
(2
)
   
524
 
                                 
     Total Costs and Expenses
   
66,715
     
48,380
             
115,095
 
                                 
(Loss) Income from Operations
   
(22,841
)
   
(44,980
)
           
(67,821
)
                                 
Other Income (Expense):
                               
  Equity in income (loss) of unconsolidated affiliate
   
(15,805
)
   
-
             
(15,805
)
  Interest expense
   
(28,132
)
   
-
             
(28,132
)
                                 
(Loss) Income Before Income Tax
   
(66,778
)
   
(44,980
)
           
(111,758
)
                                 
Income Tax (Provision) Benefit
   
-
     
18,217
     
(3b
)
   
18,217
 
                                 
Net (Loss) Income
 
$
(66,778
)
 
$
(26,763
)
         
$
(93,541
)
                                 
Basic and Diluted Net (Loss) Income  per share
 
$
(0.25
)
           
(3a
)
 
$
(0.35
)
                                 
Basic and Diluted Weighted Average Shares Outstanding
   
268,000
             
(3a
)
   
268,000
 
 
See accompanying notes to unaudited pro forma combined financial statements.
4

BOSTON OMAHA CORPORATION
AND I-85 ADVERTISING, LLC

NOTES TO UNAUDITED COMBINED PRO FORMA INFORMATION
NOTE 1.  BASIS OF PRESENTATION

The unaudited pro forma combined balance has been prepared by applying pro forma adjustments to Boston Omaha Corporation's ("Boston Omaha") ("the Company") unaudited balance sheet as of June 30, 2015.

The unaudited pro forma combined statement of operations for the six months ended June 30, 2015 has been prepared from Boston Omaha's unaudited interim statement of operations for the six months ended June 30, 2015 and from I-85 Advertising, LLC's ("I-85") unaudited interim statement of operations for the six months ended June 30, 2015.

Boston Omaha's audited financial statements and I-85's audited financial statements have been used in the preparation of the unaudited pro forma combined statement of operations for the year ended December 31, 2014.

The unaudited pro forma financial statements should be read in conjunction with the historical financial statements of Boston Omaha and I-85 as follows:

Boston Omaha's (formerly known as REO Plus, Inc.) audited financial statements for the year ended December 31, 2014 and the notes relating thereto, as found in its Form 10-K which was filed on February 5, 2015.

Boston Omaha's unaudited financial statements for the six months ended June 30, 2015 and the notes relating thereto, as found in its Form 10-Q which was filed on August 14, 2015; and

I-85's audited financial statements for the year ended December 31, 2014 and the notes relating thereto included elsewhere in this Form 8-K/A and

I-85's unaudited financial statements for the six months ended June 30, 2015 and the notes relating thereto included elsewhere in this Form 8-K/A.


On June 17, 2015, the Company effected a 7:1 reverse stock split.  The accompanying pro forma combined financial statements have been retroactively adjusted to reflect the stock split.


NOTE 2.  PURCHASE OF ASSETS

On August 31, 2015, Link Media Alabama, LLC ("LMA") a wholly-owned subsidiary of Boston Omaha purchased ten static displays and related personal property, and intangible assets from a private seller, I-85 for a purchase price of $1,294,900.

Net earnings of $5,100 for the period from August 31, through November 30, 2015 were credited to the gross purchase price of $1,300,000 as an adjustment to the purchase price.
5

BOSTON OMAHA CORPORATION
AND I-85 ADVERTISING, LLC

NOTES TO UNAUDITED COMBINED PRO FORMA INFORMATION

NOTE 2.  PURCHASE OF ASSETS (Continued)

Recognized Amount of Identifiable Assets Acquired and Liabilities Assumed

Property and Equipment:
     
  Structures and displays
 
$
587,500
 
         
Intangible Assets:
       
  Easements
   
11,000
 
  Permits
   
52,200
 
  Goodwill
   
644,200
 
         
  Total Intangible Assets
   
707,400
 
         
Identifiable Assets Acquired
   
1,294,900
 
         
Liabilities assumed
   
-
 
         
Total Identifiable Net Assets
 
$
1,294,000
 
 
Depreciation has been provided for structures and displays on a straight-line basis for their estimated useful lives, expected to range from ten to fifteen years.  Amortization has been provided for the intangible assets having finite lives, expected to be ten years.


NOTE 3.  PRO FORMA ADJUSTMENTS

a) Earnings per share

The basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding.

b) Income Tax (Provision) Benefit

Federal and state income taxes have been provided at statutory rates.
6