EX-99.2 14 izeaex992.htm PRO FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2010 izeaex992.htm


Exhibit 99.2
 
 
 
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
 
The following unaudited pro forma combined financial statements have been prepared to give effect to the reverse-merger and recapitalization pursuant to the Share Exchange Agreement and the adjustments described in the notes to the unaudited pro forma combined financial statements. IZEA, Inc. is the acquirer for financial reporting purposes and Rapid Holdings, Inc. is the acquired company. The pro forma information is based upon the historical audited financial statements of Rapid Holdings, Inc. for the period from inception (March 22, 2010) through May 31, 2010 and IZEA, Inc for the year ended December 31, 2010  and the adjustments have been made solely for purposes of developing such pro forma information.
 
 
 

 
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RAPID HOLDINGS, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
 
 
   
Rapid Holdings, Inc
   
IZEA Holdings, Inc.
         
Pro Forma
       
   
May 31, 2010
   
December 31, 2010
   
Notes
   
Adjustments
   
Pro Forma
 
                               
Assets
                             
                               
Current:
                             
Cash and cash equivalents
  $ 40,890     $ 1,503,105           $ -     $ 1,543,995  
Accounts receivable
    -       391,114             -       391,114  
Other receivables
    -       39,105             -       39,105  
Prepaid expenses
    -       24,568             -       24,568  
                                       
Total current assets
    40,890       1,957,892             -       1,998,782  
                                       
                                       
Property and equipment, net
    -       140,918             -       140,918  
                                       
Other assets:
                                     
Loan costs
    -       3,795             -       3,795  
Security deposits
    -       8,340             -       8,340  
                                    -  
    $ 40,890     $ 2,110,945           $ -     $ 2,151,835  
                                       
Liabilities and Stockholders’ Equity (Deficit)
                                     
                                       
Current liabilities:
                                     
Accounts payable
  $ -     $ 633,506           $ -     $ 633,506  
Related party payable
    -       3,358             -       3,358  
Accrued expenses
    1,275       81,014             -       82,289  
Unearned revenue
    -       1,097,466             -       1,097,466  
Current portion of notes payable
    -       351,568             -       351,568  
                                    -  
Total current liabilities
    1,275       2,166,912             -       2,168,187  
                                    -  
Notes payable, less current portion
    -       10,569             -       10,569  
Deferred rent
    -       9,220             -       9,220  
                                    -  
Total liabilities
    1,275       2,186,701             -       2,187,976  
                                       
Stockholders’ equity (deficit)
                                     
Preferred Stock
    -       1,380       (3 )     (1,380 )     -  
Common Stock
    282       100       (1 )     4,024       3,500  
                      (2 )     (3056 )        
                      (3 )     (100 )        
                      (4 )     2,250          
Additional paid-in capital
    40,743       14,074,956       (1 )     (4,024 )     14,112,551  
                      (2 )     3,056          
                      (3 )     1,480          
                      (4 )     (2,250 )        
                      (5 )     (1,410 )        
Accumulated deficit
    (1,410 )     (14,152,192 )     (5 )     1,410       (14,152,192 )
                                      -  
Total stockholders’ equity (deficit)
    39,615       (75,756 )             -       (36,141 )
                                      -  
    $ 40,890     $ 2,110,945             $ -     $ 2,151,835  

 
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RAPID HOLDINGS INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
 
 
   
Rapid Holdings
   
IZEA Holdings, Inc.
               
   
Period from inception (March 22, 2010) through May 31, 2010
   
Year Ended December 31, 2010
 
Notes
 
Pro Forma Adjustments
   
Pro Forma
 
                           
Revenue
  $ -     $ 3,821,538       $ -     $ 3,821,538  
                                   
Cost of sales
    -       1,819,031         -       1,819,031  
                                   
Gross profit
    -       2,002,507         -       2,002,507  
                                   
Operating expenses:
                                 
General and administrative
    1,410       3,048,221         -       3,049,631  
Sales and marketing
    -       766,946         -       766,946  
Licenses and subscriptions
    -       270,480         -       270,480  
                                   
Total operating expenses
    1,410       4,085,647         -       4,087,057  
                                   
Loss from operations
    (1,410 )     (2,083,140 )       -       (2,084,550 )
                                   
Other income (expense):
                                 
Interest income
    -       133         -       133  
Interest expense
    -       (74,644 )       -       (74,644 )
Other income (expense), net
    -       (108 )       -       (108 )
                                   
Total other income (expense)
    -       (74,619 )       -       (74,619 )
                                   
Net loss
  $ (1,410 )   $ (2,157,759 )     $ -     $ (2,159,169 )

 
 Notes to Pro Forma Combined Financial Statements
(1)
 Issuance of  40,244,337 common shares to Rapid Holdings, Inc. shareholders on May 11, 2011 pursuant to a 15.28117-for-one forward split of outstanding common stock
(2)
Cancellation of 30,562,337 shares of common stock held by Rapid Holdings, Inc. shareholders on May 12, 2011 pursuant to the Conveyance Agreement and Stock Purchase Agreement
(3)
 Elimination of common and preferred stock of Izea Holdings, Inc. pursuant to Share Exchange Agreement
(4)
 Issuance of 22,500,000 shares of common stock to Izea Holdings, Inc. shareholders pursuant to Share Exchange Agreement
(5)
 Elimination of accumulated deficit of Rapid Holdings, Inc.  related to reverse merger and recapitalization pursuant to Share Exchange Agreement
 
 
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