EX-99.3 4 ex993.htm
Exhibit 99.3
 
 
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
 
 
On November 20, 2015, Ameri Holdings, Inc. (the ''Company,'' ''we,'' ''our'' or ''us'') completed the acquisition of Bellsoft, Inc. (''Bellsoft''). The accompanying unaudited pro forma condensed consolidated combined balance sheet as of August 31, 2015 presents our historical financial position combined with Bellsoft as if the acquisition and the financing for the acquisition had occurred on August 31, 2015. The accompanying unaudited pro forma condensed consolidated combined statements of operations for the fiscal year ended March 31, 2015 and the five months period ended August 31, 2015 present the combined results of our operations with Bellsoft as if the acquisition and the financing for the acquisition had occurred on August 31, 2015. The historical unaudited pro forma condensed consolidated financial information includes adjustments that are directly attributable to the acquisition, factually supportable and with respect to the statement of operations are expected to have a continuing effect on our combined results. The unaudited pro forma condensed consolidated combined financial information does not reflect the costs of any integration activities or benefits that may result from realization of future cost savings from operating efficiencies, or any revenue, tax, or other synergies that may result from the acquisition. The unaudited pro forma condensed consolidated combined financial information and related notes are being provided for illustrative purposes only and are not necessarily indicative of what our financial position or results of operations actually would have been had we completed the acquisition at the dates indicated nor are they necessarily indicative of the combined company's future financial position or operating results of the combined company.
 
The accompanying unaudited pro forma condensed consolidated combined financial information and related notes should be read in conjunction with our consolidated financial statements for the six months ended September 30, 2015 and our unaudited condensed consolidated financial statements as of and for the three months ended June 30, 2015 and Bellsoft audited financial statements as of and for the years ended December 31, 2013 and 2014 and Bellsoft unaudited consolidated financial statements as of and for the nine months ended September 30, 2015 and 2014.
 
We prepared the unaudited pro forma condensed consolidated combined financial information pursuant to Regulation S-X Article 11. Accordingly, our cost to acquire Bellsoft of approximately $9.3 million has been allocated to the assets acquired and liabilities assumed according to their estimated fair values at the date of acquisition. Any excess of the purchase price over the estimated fair value of the net assets acquired has been recorded as goodwill. The preliminary estimates of fair values are reflected in the accompanying unaudited pro forma condensed consolidated combined financial information. The final determination of these fair values will be completed as soon as possible but no later than one year from the acquisition date. The final valuation will be based on the actual fair values of assets acquired and liabilities assumed at the acquisition date. Although the final determination may result in asset and liability fair values that are different than the preliminary estimates of these amounts included herein, it is not expected that those differences will be material to an understanding of the impact of this transaction to our financial results.
 
 
Exhibit 99.3 -- Page 1


 
 

 
AMERI HOLDINGS, INC.
 
Unaudited Pro Forma Condensed Combined Balance Sheet
 
August 31, 2015
 
                           
          
Ameri Holdings,
Inc.
   
Bellsoft,
Inc.
   
Combined
Historical
   
 
Pro Forma
Adjustments
   
Pro Forma
Combined
 
ASSETS
 
Current assets:
                     
Cash and cash equivalents
 
$
3,639,011
   
$
1,575,358
   
$
5,214,369
         
$
5,214,369
 
Accounts receivable
   
3,861,264
     
4,168,573
     
8,029,837
           
8,029,837
 
Other current assets
   
306,528
     
20,091
     
326,619
           
326,619
 
 
Total current assets
   
7,806,803
     
5,764,022
     
13,570,825
       
-
     
13,570,825
 
                                               
Non-current assets: 
                                             
Investments
   
-
     
-
     
-
     
1
   
9,300,000
     
-
 
                                 
2
   
(9,300,000
)
       
Fixed assets
   
35,023
     
121,011
     
156,034
                   
156,034
 
                                                   
Intangible assets-net
   
1,198,316
     
-
     
1,198,316
     
2
   
1,815,000
     
3,013,316
 
                                                   
Other assets
   
-
     
80,355
     
80,355
                   
80,355
 
                                                   
Goodwill
   
-
     
-
     
-
     
2
   
3,077,028
     
3,077,028
 
                                                   
 
TOTAL ASSETS
 
$
9,040,142
   
$
5,965,388
   
$
15,005,530
         
$
4,892,028
   
$
19,897,558
 
                                                   
LIABILITIES AND STOCKHOLDER'S EQUITY
 
                                                   
Current liabilities:
                                             
Accounts payable
 
$
2,347,763
   
$
1,185,403
   
$
3,533,166
                 
$
3,533,166
 
Line of credit
   
-
     
250,000
     
250,000
                   
250,000
 
Other current liabilities
   
446,217
     
122,013
     
568,230
                   
568,230
 
Taxes payable
   
385,363
     
-
     
385,363
                   
385,363
 
Convertible notes
   
5,000,000
             
5,000,000
                   
5,000,000
 
Consideration payable
   
-
     
-
     
-
     
1
   
8,300,000
     
8,300,000
 
 
Total current liabilities
   
8,179,343
     
1,557,416
     
9,736,759
           
8,300,000
     
18,036,759
 
                                                   
Stockholder's equity:
                                             
Preferred shares
   
-
     
-
     
-
                   
-
 
Common stock
   
116,390
     
102,875
     
219,265
     
1
   
2,353
     
118,743
 
                                 
2
   
(102,875
)
       
Additonal paid-in capital
   
53,131
     
-
     
53,131
     
1
   
997,647
     
1,050,778
 
Retained earnings
   
691,278
     
4,305,097
     
4,996,375
     
2
   
(4,305,097
)
   
691,278
 
 
Total stockholder's equity
   
860,799
     
4,407,972
     
5,268,771
           
(3,407,972
)
   
1,860,799
 
                                                   
 
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
 
$
9,040,142
   
$
5,965,388
   
$
15,005,530
         
$
4,892,028
   
$
19,897,558
 
 
 
           
Pro Forma Adjustments
       
           
   
1  
 
Investment in subsidiary
 
 
9,300,000
     
       
Common stock
           
2,353
 
       
Additonal paid-in capital
           
997,647
 
       
Consideration payable
           
8,300,000
 
To record investment for Bellsoft. Consideration payable of $8,300,000 and issuance of 235,295 shares at $4.25 per share.  
 
 
 
 
2  
 
Investment in subsidiary
       
9,300,000
 
     
Common stock
   
102,875
         
     
Retained earnings
   
4,305,097
         
     
Intangible assets
   
1,815,000
         
     
Goodwill
   
3,077,028
         
To eliminate the investment in Bellsoft and record the intangible assets and goodwill.
 
 
 
 
Exhibit 99.3 -- Page 2

 

 

AMERI HOLDINGS, INC.
 
Unaudited Pro Forma Combined Statement of Operations
 
For the Year Ended March 31, 2015
 
                     
    
Ameri Holdings,
Inc.
   
Bellsoft,
Inc.
   
Combined
Historical
   
Pro Forma
Adjustments
   
Pro Forma
Combined
 
Revenue
 
$
16,804,379
   
$
25,220,206
   
$
42,024,585
       
$
42,024,585
 
Cost of revenue
   
15,114,400
     
-
     
15,114,400
         
15,114,400
 
Gross profit
   
1,689,979
     
25,220,206
     
26,910,185
     
-
     
26,910,185
 
Operating expenses:
                                       
Selling, general and administrative
   
1,042,776
     
24,664,520
     
25,707,296
             
25,707,296
 
                                         
Income before other income / (expenses)
   
647,203
     
555,686
     
1,202,889
     
-
     
1,202,889
 
                                         
Interest expense
   
-
     
(19,862
)
   
(19,862
)
           
(19,862
)
Other income (expense)
   
-
     
10,902
     
10,902
             
10,902
 
Depreciation and amortization
   
(33,372
)
   
(12,490
)
   
(45,862
)
           
(45,862
)
                                         
Net income before income tax
   
613,831
     
534,236
     
1,148,067
     
-
     
1,148,067
 
Provision for income taxes
   
(218,887
)
   
(8,605
)
   
(227,492
)
           
(227,492
)
                                         
Income (loss) from continuing operations
   
394,944
     
525,631
     
920,575
     
-
     
920,575
 
                                         
Unrealized foreign currency translation income
   
-
     
50,455
     
50,455
             
50,455
 
                                         
Net and comprehensive income for the period
 
$
394,944
   
$
576,086
   
$
971,030
   
$
-
   
$
971,030
 
                                         
Net income (loss) per common share from continuing operations:
                                       
                                         
Basic
 
$
0.03
   
$
700.84
   
$
0.07
           
$
0.07
 
Diluted
 
$
0.03
   
$
700.84
   
$
0.07
           
$
0.07
 
                                         
Weight average common share outstanding:
                                       
Basic
   
12,500,070
     
750
     
12,500,820
 
   1
 
234,545
     
12,735,365
 
Diluted
   
12,500,070
     
750
     
12,500,820
     
234,784
     
12,735,604
 
 
 
 
         

 
Pro Forma Adjustments
 
1   To effect shares issued upon acquisition and elimination of Bellsoft common stock.


Exhibit 99.3 -- Page 3

 
 
 
 

AMERI HOLDINGS, INC.
 
Unaudited Pro Forma Combined Statement of Operations
 
For the five month period ended August 31, 2015
 
                     
    
Ameri Holdings,
Inc.
   
Bellsoft,
Inc.
   
Combined
Historical
   
Pro Forma Adjustments
   
Pro Forma
Combined
 
Revenue
 
$
5,277,990
   
$
12,380,196
   
$
17,658,186
       
$
17,658,186
 
Cost of revenue
   
4,018,614
     
-
     
4,018,614
         
4,018,614
 
Gross profit
   
1,259,376
     
12,380,196
     
13,639,572
     
-
     
13,639,572
 
Operating expenses:
                                       
Selling, general and administrative
   
1,362,402
     
11,126,022
     
12,488,424
             
12,488,424
 
                                         
Income before other income / (expenses)
   
(103,026
)
   
1,254,174
     
1,151,148
     
-
     
1,151,148
 
                                         
Interest expense
   
(40,790
)
   
(10,355
)
   
(51,145
)
           
(51,145
)
Depreciation and amortization
   
(2,761
)
   
(4,148
)
   
(6,909
)
           
(6,909
)
                                         
Income (loss) from continuing operations
   
(146,577
)
   
1,239,671
     
1,093,094
     
-
     
1,093,094
 
                                         
Unrealized foreign currency translation income
   
-
     
10,390
     
10,390
             
10,390
 
                                         
Net and comprehensive income for the period
 
$
(146,577
)
 
$
1,250,061
   
$
1,103,484
   
$
-
   
$
1,103,484
 
                                         
Net income (loss) per common share from continuing operations:
                                       
                                         
Basic
 
$
(0.01
)
 
$
1,652.90
   
$
0.10
           
$
0.09
 
Diluted
 
$
(0.01
)
 
$
1,652.90
   
$
0.07
           
$
0.07
 
                                         
Weight average common share outstanding:
                                       
Basic
   
11,493,097
     
750
     
11,493,847
 
   1
 
234,545
     
11,728,392
 
Diluted
   
16,240,410
     
750
     
16,241,160
     
234,784
     
16,475,944
 
                                         
  
                                       
   
 
   
                                 

Pro Forma Adjustments
 
1  To effect shares issued upon acquisition and elimination of Bellsoft common stock.
 
 


Exhibit 99.3 -- Page 4





NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS



Note 1 — Basis of presentation
 
The unaudited pro forma condensed combined financial statements are based on Ameri Holdings, Inc. and Bellsoft historical consolidated financial statements as adjusted to give effect to the acquisition of Bellsoft Resources by Ameri Holdings, Inc. The unaudited pro forma combined statements of operations for the five month period ended August 31, 2015 and the 12 months ended March 31, 2015 give effect to the Bellsoft acquisition as if it had occurred on April 1, 2014. The unaudited pro forma combined balance sheet as of August 31, 2015 gives effect to the Bellsoft acquisition as if it had occurred on August 31, 2015.

 
Note 2 — Preliminary purchase price allocation
 
On November 20, 2015, AMERI Holdings, Inc. acquired Bellsoft, Inc. for total consideration of approximately $9.30 million. The unaudited pro forma condensed combined financial information includes various assumptions, including those related to the preliminary purchase price allocation of the assets acquired and liabilities assumed of Bellsoft, Inc. based on management's best estimates of fair value. The final purchase price allocation may vary based on final appraisals, valuations and analyses of the fair value of the acquired assets and assumed liabilities. Accordingly, the pro forma adjustments are preliminary and have been made solely for illustrative purposes.
 
The following table shows the preliminary allocation of the purchase price for Bellsoft, Inc. to the acquired identifiable assets, liabilities assumed and pro forma goodwill:
 
Total purchase price
 
$
9,300,000
 
 
       
Cash and cash equivalents
   
1,575,358
 
Accounts receivable
   
4,168,573
 
Deposit and prepaid expense
   
100,446
 
Other
   
1,936,011
 
Total identifiable assets
   
7,780,388
 
 
       
Accounts payable and accrued expenses
   
(1,185,403
)
Trade financing
   
(250,000
)
Other payable
   
(122,013
)
Total liabilities assumed
   
(1,557,416
)
 
       
Net assets acquired
   
6,222,972
 
 
       
Total proforma goodwill
 
$
3,077,028
 
 

 

Exhibit 99.3 -- Page 5





NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS



Note 3 — Pro forma adjustments
 
The pro forma adjustments are based on our preliminary estimates and assumptions that are subject to change. The following adjustments have been reflected in the unaudited pro forma condensed combined financial information:
 
Adjustments to the pro forma condensed combined balance sheet:
 
(1) Reflect the investment in a subsidiary and the payment of the purchase price; and
 
(2) Reflect the preliminary estimate of goodwill, which represents the excess of the purchase price over the fair value of Bellsoft, Inc.'s identifiable assets acquired and liabilities assumed as shown in Note 2.
 
 
 
 
 
 
 
 
Exhibit 99.3 -- Page 6