Exhibit 99.2
Jerrick Media Holdings, Inc.
Pro Forma Consolidated Balance Sheet
As of December 31, 2015
Jerrick Media Holdings, Inc. | ||||||||||||||||||||||||
(Great Plains Holdings, Inc.) As of | Jerrick Ventures, Inc. As of | Consolidated As of | Consolidated As of | |||||||||||||||||||||
December | December | December | Proforma AJEs | December | ||||||||||||||||||||
31, 2015 | 31, 2015 | 31, 2015 | DR (CR) | # | 31, 2015 | |||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 573,572 | $ | 438,629 | $ | 1,012,201 | (570,946 | ) | 1,3 | $ | 441,255 | |||||||||||||
Accounts receivable | 125 | - | 125 | (125 | ) | 1 | - | |||||||||||||||||
Assets held for discontinued operations | 214 | - | 214 | (214 | ) | 1 | - | |||||||||||||||||
Total Current Assets | 573,911 | 438,629 | 1,012,540 | (571,285 | ) | 441,255 | ||||||||||||||||||
Non-current Assets: | ||||||||||||||||||||||||
Restricted cash | - | - | - | - | ||||||||||||||||||||
Property, plant and equipment, at cost, net | 391,712 | 70,506 | 462,218 | (391,712 | ) | 1 | 70,506 | |||||||||||||||||
Goodwill | 72,105 | - | 72,105 | (72,105 | ) | 1 | - | |||||||||||||||||
Land | - | 17,000 | 17,000 | 17,000 | ||||||||||||||||||||
Minority investment in business | - | 83,333 | 83,333 | 83,333 | ||||||||||||||||||||
Total Other Assets | 463,817 | 170,839 | 634,656 | (463,817 | ) | 170,839 | ||||||||||||||||||
Total Assets | $ | 1,037,728 | $ | 609,468 | $ | 1,647,196 | $ | (1,035,102 | ) | $ | 612,094 | |||||||||||||
Liabilities and Equity | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 1,330 | $ | 678,955 | $ | 680,285 | (1,330 | ) | 1 | 678,955 | ||||||||||||||
Accrued dividends | - | 81,936 | 81,936 | 81,936 | ||||||||||||||||||||
Capital lease payable | - | 6,619 | 6,619 | - | 6,619 | |||||||||||||||||||
Refundable liabilities | 1,350 | 1,350 | (1,350 | ) | 1 | - | ||||||||||||||||||
Line of credit | - | 202,422 | 202,422 | 202,422 | ||||||||||||||||||||
Liabilities held for discontinued operations | 2 | - | 2 | (2 | ) | 1 | - | |||||||||||||||||
Total liabilities | 2,682 | 969,932 | 972,614 | (2,682 | ) | 969,932 | ||||||||||||||||||
Total Liabilities | 2,682 | 969,932 | 972,614 | (2,682 | ) | 969,932 | ||||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||
Equity: | ||||||||||||||||||||||||
Series A Preferred Stock | 10 | 33 | 43 | (10 | ) | 2 | 33 | |||||||||||||||||
Series B Preferred Stock | 10 | 7 | 17 | (10 | ) | 2 | 7 | |||||||||||||||||
Series D preferred stock | - | - | - | 2,013 | 2 | 2,013 | ||||||||||||||||||
Common stock | 1,514 | 2,850 | 4,364 | 1,400 | 1,3 | 5,764 | ||||||||||||||||||
Additional paid-in capital | 2,068,390 | 5,345,485 | 7,413,875 | (2,070,691 | ) | 2 | 5,343,184 | |||||||||||||||||
Accumulated other comprehensive loss | - | - | - | - | - | |||||||||||||||||||
Accumulated deficit | (1,034,878 | ) | (5,708,839 | ) | (6,743,717 | ) | 1,034,878 | 1,2 | (5,708,839 | ) | ||||||||||||||
Total Equity | 1,035,046 | (360,464 | ) | 674,582 | (1,032,420 | ) | (357,838 | ) | ||||||||||||||||
Total Liabilities and Equity | $ | 1,037,728 | $ | 609,468 | $ | 1,647,196 | $ | (1,035,102 | ) | $ | 612,094 |
1
Jerrick Media Holdings, Inc.
Pro Form Consolidated Statement of Operations
For the Year Ended December 31, 2015
Jerrick Media Holdings, Inc. | ||||||||||||||||||||||||
(Great Plains Holdings, Inc.) | Jerrick Ventures, Inc. | Year Ended | ||||||||||||||||||||||
For the Year Ended | 12 Months Ended | 31-Dec-15 Proforma | Proforma AJEs | Proforma | ||||||||||||||||||||
31-Dec-15 | 31-Dec-15 | Consolidation | DR (CR) | # | Consolidation | |||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||
REVENUES | ||||||||||||||||||||||||
Revenue | $ | 58,253 | $ | 767,527 | $ | 825,780 | - | 825,780 | ||||||||||||||||
Cost of revenue | - | (183,528 | ) | (183,528 | ) | - | (183,528 | ) | ||||||||||||||||
Total Revenues | 58,253 | 583,999 | 642,252 | 642,252 | ||||||||||||||||||||
OPERATING EXPENSES: | ||||||||||||||||||||||||
Selling, general and administrative expenses | 321,504 | 3,435,042 | 3,756,546 | - | 3,756,546 | |||||||||||||||||||
Impairment loss on investment | 17,788 | - | 17,788 | - | 17,788 | |||||||||||||||||||
Total Operating Expenses | 339,292 | 3,435,042 | 3,774,334 | - | 3,774,334 | |||||||||||||||||||
Operating Loss | (281,039 | ) | (2,851,043 | ) | (3,132,082 | ) | - | (3,132,082 | ) | |||||||||||||||
Other Non-operating expenses | ||||||||||||||||||||||||
Interest and other income | 1,393 | - | 1,393 | |||||||||||||||||||||
Interest expense | (76,913 | ) | (488,725 | ) | (565,638 | ) | (565,638 | ) | ||||||||||||||||
(75,520 | ) | (488,725 | ) | (564,245 | ) | - | (564,245 | ) | ||||||||||||||||
Income Tax Provision | - | - | - | - | ||||||||||||||||||||
Net loss from continuing operations | (356,559 | ) | (3,339,768 | ) | (3,696,327 | ) | - | (3,696,327 | ) | |||||||||||||||
Income from discontinued operations | 13,620 | - | 13,620 | 13,620 | ||||||||||||||||||||
Net loss | (342,939 | ) | (3,339,768 | ) | (3,682,707 | ) | - | (3,682,707 | ) | |||||||||||||||
Loss per share | $ | (0.23 | ) | $ | (0.12 | ) | $ | - | $ | (0.12 | ) | |||||||||||||
Weighted average shares - Basic & diluted | 1,505,926 | 28,500,000 | 1,400,085 | 31,406,011 |
2
JERRICK MEDIA HOLDINGS, INC. |
Notes to Unaudited Pro Forma Consolidated Statements of Operations |
1. | Basis of Presentation |
The following unaudited pro forma consolidated financial statements of Jerrick Media Holdings, Inc., (formerly known as Great Plains Holdings, Inc. - the “Company”) and Jerrick Ventures, Inc. (“Jerrick”) are provided to assist you in your analysis of the financial aspects of the consolidated entity on a non-generally accepted accounting principle basis.
The unaudited pro forma consolidated statements of operations for the year ended December 31, 2015 combined the historical statements of operations of the Company for the year ended December 31, 2015 with the fiscal year end historical statements of operations of Jerrick for the year ended December 31, 2106. The unaudited pro forma condensed combined balance sheet combines the historical balance sheets of the Company and Jerrick as of December 31, 2015.
The pro forma is presented as if the below transaction was accounted for as a reverse acquisition. Jerrick is deemed the accounting acquirer while the Company remains the legal acquirer.
2. | The Transaction |
On February 5, 2016, the Company, GPH Merger Sub, Inc., a Nevada corporation and wholly-owned subsidiary of GTPH (“Merger Sub”), and Jerrick, a privately-held Nevada corporation headquartered in New Jersey, entered into an Agreement and Plan of Merger (the “Agreement”) pursuant to which the Merger Sub was merged with and into Jerrick, with Jerrick surviving as a wholly-owned subsidiary of GTPH (the “Merger”). The transaction (the “Closing”) took place on February 5, 2016 (the “Closing Date”). The Company acquired, through a reverse triangular merger, all of the outstanding capital stock of Jerrick in exchange for issuing Jerrick’s shareholders (the “Jerrick Shareholders”), pro-rata, a total of 28,500,000 shares of the Company’s common stock. GTPH shall assume 33,414.89 shares of Jerrick’s Series A Convertible Preferred Stock (the “Series A Preferred”) and 8,063.33 shares of Series B Convertible Preferred Stock (the “Series B Preferred”) and file the appropriate certificates of designation to reflect the rights, preferences and privileges of the Jerrick’s Series A Preferred and Series B Preferred. Jerrick shareholders that hold either Series A Preferred or Series B Preferred will be able to exchange such shares for the equivalent in GTPH on a one for one basis. Additionally, GTPH shall assume 12,391,667 outstanding common stock purchase warrants of Jerrick such that each Jerrick shareholder that holds a warrant to purchase shares of Jerrick common stock will by virtue of the Merger, be able to purchase the equivalent number of shares of GTPH Common Stock under the same terms and conditions.
In connection with the Merger, on February 5, 2016, the Company and Kent Campbell entered into a Spin-Off Agreement (the “Spin-Off Agreement”), pursuant to which Mr. Campbell purchased from the Company (i) all of the Company’s interest in Ashland Holdings, LLC, a Florida limited liability company, and (ii) all of the Company’s interest in Lil Marc, Inc., a Utah corporation, in exchange for the cancellation of 781,818 shares of the Parent Company’s Common Stock held by Mr. Campbell. In addition, Mr. Campbell assumed all debts, obligations and liabilities of the Company existing prior to the Merger, pursuant to the terms and conditions of the Spin-Off Agreement.
3
On February 5, 2016 and in conjunction with the Merger, the Company entered into a Share Exchange Agreement with Kent Campbell, Denis Espinoza and Sarah Campbell (the “Exchange Agreement”). Pursuant to the Exchange Agreement, (i) Kent Campbell cancelled 363,636 shares of the Company’s common stock, 6,000 shares of the Company’s Series A Preferred Stock and 10,000 shares of the Company’s Series B Preferred Stock in exchange for 1,648,881 shares of the Company’s Series D Preferred Stock, (ii) Denis Espinoza cancelled 58,951 shares of the Company’s common stock and 4,000 shares of the Company’s Series A Preferred Stock in exchange for 265,676 shares of the Company’s Series D Preferred Stock, and (iii) Sarah Campbell cancelled 21,818 shares of the Company’s common stock in exchange for 98,933 shares of the Company’s Series D Preferred Stock.
In addition, on February 6, 2016, the Company entered into Stock Purchase Agreements (the “Purchase Agreements”) with three investors providing for the issuance and sale of an aggregate of 2,626,308 shares of the Company’s common stock, par value $0.001 per share, for an aggregate purchase price of $2,626.30.
3. | Pro-forma Adjustments |
The pro-forma financial statements give effect to the following transactions as if they had occurred on the first day of the periods presented:
1. | Spin off and cancellation of common shares of the Company operations in accordance with the Spin-off Agreement. |
2. | Conversion of common stock, Preferred A and Preferred B shares into shares of Preferred D shares in connection with the Share Exchange Agreement described above. |
3. | Sale and issuance of 2,626,308 shares of the Company’s common stock for proceeds of $2,626.30. |