EX-99.3 4 ex993.htm EXHIBIT 99.3
Exhibit 99.3



BOSTON OMAHA CORPORATION
AND FAIR OUTDOOR, LLC

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

JUNE 30, 2015

BOSTON OMAHA CORPORATION  
 
AND FAIR OUTDOOR, 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
   
$
(1,945,061
)
   
(2)
 
 
$
1,739,256
 
  Prepaid expense
   
6,600
     
-
             
6,600
 
                                 
     Total Current Assets
   
3,690,917
     
(1,945,061
)
           
1,745,856
 
                                 
Property and Equipment:
                               
  Structures and displays
   
3,192,692
     
370,000
     
(2)
 
   
3,562,692
 
  Accumulated depreciation
   
(6,415
)
   
-
             
(6,415
)
                                 
     Total Property and Equipment, net
   
3,186,277
     
370,000
             
3,556,277
 
                                 
Other Assets:
                               
  Intangible assets
   
3,476,354
     
1,575,061
     
(2)
 
   
5,051,415
 
  Investment in unconsolidated affiliate
   
55,678
     
-
             
55,678
 
                                 
     Total Other Assets
   
3,532,032
     
1,575,061
             
5,107,093
 
                                 
     Total Assets
 
$
10,409,226
   
$
-
           
$
10,409,226
 
 
See accompanying notes to unaudited pro forma combined financial statements
2

BOSTON OMAHA CORPORATION  
 
AND FAIR OUTDOOR, LLC   
 
 
UNAUDITED PRO FORMA COMBINED BALANCE SHEET    
 
                     
June 30, 2015         
 
                     
LIABILITIES AND STOCKHOLDERS' EQUITY       
 
                     
         
Pro Forma
     
Pro Forma
 
   
Boston Omaha
   
Adjustments
 
Notes
 
Combined
 
                     
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
3

BOSTON OMAHA CORPORATION  
 
AND FAIR OUTDOOR, LLC   
 
 
UNAUDITED PRO FORMA COMBINED STATEMENT OR 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
   
-
     
170,284
     
(2)
 
   
170,284
 
                                 
   Total Revenues
   
9,700
     
170,284
             
179,984
 
                                 
Costs and Expenses:
                               
  Professional fees
   
212,545
     
-
     
(2)
 
   
212,545
 
  Ground rents
   
-
     
71,834
     
(2)
 
   
71,834
 
  Depreciation and amortization
   
21,973
     
109,651
     
(2)
 
   
131,624
 
  Leased employees
   
6,662
     
-
             
6,662
 
  Contract services
   
4,400
     
-
             
4,400
 
  Travel and entertainment
   
1,877
     
-
             
1,877
 
  General and administrative
   
1,142
     
2,193
             
3,335
 
                                 
   Total Costs and Expenses
   
248,599
     
183,678
             
432,277
 
                                 
(Loss) Income from Operations
   
(238,899
)
   
(13,394
)
           
(252,293
)
                                 
Other Income (Expense):
                               
                               
  Equity in income (loss) of unconsolidated affiliate
   
8,414
     
-
             
8,414
 
  Interest expense
   
(16,303
)
   
(13,221
)
           
(29,524
)
                                 
(Loss) Income Before Income Tax
   
(246,788
)
   
(26,615
)
           
(273,403
)
                                 
Income Tax (Provision) Benefit
   
-
     
10,513
     
(3b)
 
   
10,513
 
                                 
Net (Loss) Income
 
$
(246,788
)
 
$
(16,102
)
         
$
(262,890
)
                                 
 
                               
Basic and Diluted Net (Loss) Income per share
   
(0.73
)
           
(3a)
 
   
(0.78
)
                                 
 
                               
Basic and Diluted Weighted Average Shares Outstanding
   
337,982
             
(3a)
 
   
337,982
 
 
See accompanying notes to unaudited pro forma combined financial statements


4

BOSTON OMAHA CORPORATION  
 
AND FAIR OUTDOOR, LLC   
 
 
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS   
 
                         
FOR THE YEAR ENDED DECEMBER 31, 2014         
 
                         
                         
         
Pro Forma
         
Pro Forma
 
   
Boston Omaha
   
Adjustments
   
Notes
   
Combined
 
Revenues:
                       
  Consulting fees
 
$
43,874
   
$
-
         
$
43,874
 
  Billboard rentals
   
-
     
117,641
     
(2)
 
   
117,641
 
                                 
     Total Revenues
   
43,874
     
117,641
             
161,515
 
                                 
Costs and Expenses:
                               
  Professional fees
   
66,715
     
-
             
66,715
 
  Ground rents
   
-
     
22,575
     
(2)
 
   
22,575
 
  Depreciation and amortization
   
-
     
219,303
     
(2)
 
   
219,303
 
  Repairs and maintenance
   
-
     
8,401
     
(2)
 
   
8,401
 
  General and administrative
   
-
     
2,768
     
(2)
 
   
2,768
 
                                 
     Total Costs and Expenses
   
66,715
     
253,047
             
319,762
 
                                 
(Loss) Income from Operations
   
(22,841
)
   
(135,406
)
           
(158,247
)
                                 
Other Income (Expense):
                               
  Equity in income (loss) of unconsolidated affiliate
   
(15,805
)
   
-
             
(15,805
)
  Interest expense
   
(28,132
)
   
(11,457
)
           
(39,589
)
                                 
(Loss) Income Before Income Tax
   
(66,778
)
   
(146,863
)
           
(213,641
)
                                 
Income Tax (Provision) Benefit
   
-
     
58,010
     
(3b)
 
   
58,010
 
                                 
Net (Loss) Income
 
$
(66,778
)
 
$
(88,853
)
         
$
(155,631
)
                                 
Basic and Diluted Net (Loss) Income
                               
  per share
   
(0.25
)
           
(3a)
 
   
(0.58
)
                                 
Basic and Diluted Weighted Average
                         
  Shares Outstanding
   
266,954
             
(3a)
 
   
266,954
 
 
See accompanying notes to unaudited pro forma combined financial statements
5

BOSTON OMAHA CORPORATION  
 
AND FAIR OUTDOOR, 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 Fair Outdoor, LLC's ("Fair") unaudited interim statement of operations for the six months ended June 30, 2015.

Boston Omaha's audited financial statements and Fair'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 Fair 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

Fair'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

Fair'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 July 23, 2015, Link Media Florida, LLC ("LMF") a wholly-owned subsidiary of Boston Omaha purchased two digital displays and related personal property, and intangible assets from a private seller, Fair, for a purchase price of $1,945,061.

Adjustments to the gross purchase price of $2,000,000 were $54,939 and included net earnings of $13,939 for the period from July 23 through August 23, 2015.

6


NOTE 2. PURCHASE OF ASSETS (Continued)

Recognized Amount of Identifiable Assets Acquired and Liabilities Assumed

Property and Equipment:
     
  Structures and displays
 
$
370,000
 
         
Intangible Assets:
       
  Customer relationships
   
536,300
 
  Permits
   
52,200
 
  Goodwill
   
986,561
 
         
  Total Intangible Assets
   
1,575,061
 
         
Identifiable Assets Acquired
   
1,945,061
 
         
Liabilities assumed
   
-
 
         
Total Identifiable Net Assets
 
$
1,945,061
 
 
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 three to ten years.
 
NOTE 3. PRO FORMA ADJUSTMENTS

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.

Income Tax (Provision) Benefit

Federal and state income taxes have been provided at statutory rates.
7