Pro Forma Combined Financial Information

Background Information Regarding Pro Forma Combined Financial Statements

On August 11, 2014, Global System Designs, Inc ("GSD"), entered into a share exchange agreement (the "Exchange Agreement") with bBooth, Inc. ("bBooth"), pursuant to which GSD agreed to acquire all of the issued and outstanding shares of bBooth from the bBooth shareholders. In exchange for the bBooth shares, the Exchange Agreement calls for GSD to issue, on a one for one basis, an aggregate of 50,000,000 shares of their common stock, comprised of 36,000,000 shares to be issued in an exchange for outstanding common shares held by bBooth shareholders as at August 11, 2014, plus such additional number of shares of common stock as is equal to the number of shares issued by bBooth pursuant to: (i) a private placement (as further described below), and (ii) the conversion of currently outstanding convertible securities of bBooth, in the amount of $1,612,000 plus accrued interest, into bBooth shares, each of which will occur prior to the closing of the share exchange agreement.
The share exchange agreement contemplates, along with other occurrences not impacting the pro forma schedules, that on or prior to the closing of the acquisition:

 
·
bBooth will have completed a private placement financing pursuant to which it will issue at least 9,000,000 shares of its common stock at a price of $0.50 per share for gross proceeds of not less than $4,500,000;

 
·
GSD will effect a two for one forward split of the shares of its common stock;

 
·
GSD will cause the surrender for cancellation to treasury of such number of shares of common stock as will result in there being no more than 60,000,000 shares of common stock outstanding as of the closing, including any shares to be issued to former security holders of bBooth

Between September 30, 2014 and October 2, 2014, bBooth completed the private placement pursuant to which it issued an aggregate of 9,000,000 shares of common stock at a price of $0.50 per share for gross proceeds of $4,500,000. bBooth also issued an aggregate of 659,600 shares of common stock and paid an aggregate cash fee of $412,250 to certain finders in connection with the private placement. Such finders were also reimbursed an aggregate of $23,072 for expenses incurred in connection with the private placement. All of the shares of bBooth's common stock issued in connection with the private placement, including the shares issue to the finders, were converted into shares of the Company's common stock on a one for one basis in connection with the closing of the Exchange Agreement.
The following unaudited pro forma combined balance sheets and statements of operations reflect the combination of GSD and bBooth. The unaudited pro forma combined financial statements have been derived from historical financial statements of both GSD and bBooth. The unaudited pro forma combined balance sheet as of June 30, 2014 was prepared as if the Transaction had occurred on the balance sheet date. The unaudited pro forma combined statements of operations were prepared as if the Merger had occurred on the first day of each period presented.

In the opinion of management, all adjustments necessary to present fairly the pro forma combined balance sheet and statements of operations have been made based on the terms and structure of the Transaction. The unaudited pro forma combined statements of operations are not necessarily indicative of what actual results would have been had the transaction occurred at the beginning of the period nor do they purport to indicate the results of future operations of GSD and bBooth. The unaudited pro forma combined financial statements should be read in conjunction with the accompanying notes and historical financial statements and notes to the financial statements of GSD and bBooth.
 
 
Pro Forma Combined Balance Sheets (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
  
   
   
Pro Forma Adjustments
    
 
 
  
   
   
Effect of
    
Conversion of
    
Net Proceeds
    
2:1 Stock
    
 
 
  
   
Global System
    
Share
    
Convertible
    
from Private
    
Split, net of
    
Pro Forma
  
 
  
bBooth, Inc.
    
Designs, Inc.
    
Exchange
    
Debentures
    
Placement
    
Cancellation
    
Combined
  
 
  
June 30, 2014
    
May 31, 2014
    
   
   
   
   
 
 
  
   
     
[A]
 
    
[B]
 
    
[C]
 
    
[D]
 
  
 
ASSETS
    
                                   
 
Current assets:
  
   
                                   
 
 Cash
  
$
1,000,265
    
$
17,086
    
$
      
$
      
$
4,014,678
    
$
      
$
5,032,029
  
 Accounts receivable
            
5,460
                                      
5,460
  
 Prepaid expenses and other current assets
    
30,137
      
1,098
                                      
31,235
  
       Total current assets
    
1,030,402
      
23,644
      
-
      
-
      
4,014,678
      
-
      
5,068,724
  
 
                                                        
 
                                                    
-
  
 Deposit on Booth equipment
    
199,428
                                              
199,428
  
 Property and equipment, net
    
65,988
                                              
65,988
  
 Debt issuance costs, net
    
242,343
                                              
242,343
  
       Total assets
  
$
1,538,161
    
$
23,644
    
$
-
    
$
-
    
$
4,014,678
    
$
-
    
$
5,576,483
  
 
                                                        
LIABILITIES AND STOCKHOLDERS' EQUITY
                                                  
 Current liabilities:
                                                        
    Accounts payable
  
$
170,438
    
$
1,888
    
$
      
$
(8,000
)
  
$
      
$
      
$
164,326
  
       Total current liabilities
    
170,438
      
1,888
      
-
      
(8,000
)
    
-
      
-
      
164,326
  
 
                                                        
 
                                                        
 Convertible notes payable
    
1,612,000
      
-
              
(1,612,000
)
                    
-
  
       Total liabilities
    
1,782,438
      
1,888
      
-
      
(1,620,000
)
    
-
      
-
      
164,326
  
 
                                                        
 Commitments and contingencies
                                                        
 
                                                        
 Stockholders' equity:
                                                        
 Common stock
    
36,000
      
583
      
(32,400
)
    
463
      
966
      
388
      
6,000
  
 Additional paid-in capital
    
5,375,353
      
55,117
      
32,400
      
1,619,537
      
4,013,712
      
(388
)
    
11,095,731
  
 Accumulated deficit
    
(5,655,630
)
    
(33,700
)
                                    
(5,689,330
)
 Accumulated other comprehensive income
    
-
      
(244
)
                                    
(244
)
       Total shareholders' (deficit)/equity
    
(244,277
)
    
21,756
      
-
      
1,620,000
      
4,014,678
      
-
      
5,412,157
  
       Total liabilities and stockholders' equity
  
$
1,538,161
    
$
23,644
    
$
-
    
$
-
    
$
4,014,678
    
$
-
    
$
5,576,483
  
 
 
 
 
[A]
The adjustment reflects the impact of the 1 for 1 Share Exchange Agreement  between GSD and the Company at the closing of the Acquisition of bBooth by GSD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[B]
The adjustment reflects the conversion of the Convertible Notes and related accrued interest at a conversion rate of $0.35 upon closing of the acquisition.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[C]
The adjustment reflects the proposed private placement of equity securities, which according to the terms of the LOI is to be not less than $4,500,000, at a share price of $0.50.
 
The proceeds raised are net of $435,322 in "Finders Fees" and reinbursed expenses, and an estimated $50,000 in legal and accounting fees.
 
 
 
 
 
 
Net shares reflect 9,000,000 shares sold, plus 659,650 "Finders Shares"
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
[D]
The adjustment reflects the 2:1 stock split of GSD, net of the shares cancelled to ensure shares outstanding after the Transaction does not exceed 60,000,000.
 
 
 
 
Pro Forma Combined Statements of Operations (Unaudited)
  
   
   
   
 
 
 
Pro Forma
Adjustment
 
  
   
   
   
 
 
  
   
   
Effect of
    
 
 
  
   
Global System
    
Debt issue costs
    
Pro Forma
  
 
  
bBooth, Inc.
    
Designs, Inc.
    
amortization
    
Combined
  
 
  
June 30, 2014
    
May 31, 2014
    
   
 
 
  
   
     
[A]
 
  
 
 
  
   
           
 
Net sales
  
$
-
    
$
7,768
    
$
      
$
7,768
  
Costs of sales
    
-
      
-
              
-
  
      Gross profit
    
-
      
7,768
      
-
      
7,768
  
Research and development expense
    
44,843
      
-
              
44,843
  
General and administrative expense
    
728,479
      
22,274
              
750,753
  
Depreciation and amortization
    
-
      
-
              
-
  
Other operating expenses
    
-
      
-
              
-
  
     Loss from operations
    
(773,322
)
    
(14,506
)
    
-
      
(787,828
)
Interest expense
    
(17,482
)
    
-
      
(252,000
)
    
(269,482
)
      Income before income taxes
    
(790,804
)
    
(14,506
)
    
(252,000
)
    
(1,057,310
)
Income tax expense
    
-
      
-
      
-
      
-
  
Net loss
  
$
(790,804
)
  
$
(14,506
)
  
$
252,000
    
$
(553,310
)
Other comprehensive loss:
                                
Foreign currency translation adjustments
    
-
      
(142
)
            
(142
)
 
                                
      Total Comprehensive Loss
  
$
(790,804
)
  
$
(14,648
)
          
$
(553,452
)
 
                                
Loss per share - Basic
            
0.00
              
(0.01
)
Loss per share - Diluted
            
0.00
              
(0.01
)
 
                                
 
                                
Weighted average shares outstanding - basic
  
NA
      
5,825,000
      
54,168,221
  [B ]   59,993,221
 
Weighted average shares outstanding - diluted
  
NA
      
5,825,000
      
54,168,221
  [B ]   
59,993,221
 
 
 
 
 
[A]
This pro forma adjustment reflects the full amortization for the debt issuance costs of $252,000 as if the Convertible Notes were issued and converted at the beginning of the period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 [B]
This reflects the issuance of new common shares related to the Transaction as if they were outstanding for the entire period, as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   36,000,000
  issued to bBooth, Inc. in a one to one exchange ratio in connection pursuant to the Share Exchange Agreement
 
     4,628,571
  issued upon conversion of the Convertible Notes and related accrued interest, at a conversion rate of $0.35
 
 
 
 
     9,659,650
  issued per the Financing agreement, not to exceed $4,500,000, at a per share price of $0.50, plus Finders Shares
 
 
 
     3,880,000
  2:1 stock split of GSD, net of the shares cancelled to ensure shares outstanding after the Transaction does not exceed 60,000,000
 
   54,168,221
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Pro Forma Combined Statements of Operations (Unaudited)
 
   
Pro Forma
    
 
 
  
   
   
Adjustment
    
 
 
  
   
   
 
Effect of
    
 
 
  
   
Global System
    
Debt issue costs
    
Pro Forma
  
 
  
bBooth, Inc.
    
Designs, Inc.
    
amortization
    
Combined
  
 
  
December 31, 2013
    
November 30, 2013
    
   
 
 
  
   
     
[A]
 
  
 
 
  
   
           
 
Net sales
  
$
-
    
$
6,966
            
$
6,966
  
Costs of sales
    
-
      
-
              
-
  
      Gross profit
    
-
      
6,966
      
-
      
6,966
  
Research and development expense
    
485,429
      
-
              
485,429
  
General and administrative expense
    
4,096,118
      
25,210
              
4,121,328
  
Depreciation and amortization
    
-
      
-
              
-
  
Other operating expenses
    
-
      
-
              
-
  
     Loss from operations
    
(4,581,547
)
    
(18,244
)
    
-
      
(4,599,791
)
Interest expense
    
-
      
-
      
(252,000
)
    
(252,000
)
      Income before income taxes
    
(4,581,547
)
    
(18,244
)
    
(252,000
)
    
(4,851,791
)
Income tax expense
    
-
      
-
      
-
      
-
  
Net loss
  
$
(4,581,547
)
  
$
(18,244
)
  
$
252,000
    
$
(4,347,791
)
Other Comprehensive Loss:
                                
Foreign currency translation adjustments
    
-
      
(102
)
            
(102
)
 
                                
      Total Comprehensive Loss
  
$
      
$
(18,346
)
          
$
(4,347,893
)
 
                                
EPS - Basic
            
0.00
              
(0.07
)
EPS - Diluted
            
0.00
              
(0.07
)
 
                                
 
                                
Weighted average shares outstanding - basic
  
NA
      
4,131,726
      
54,545,936
   [B]    
58,677,662
  
Weighted average shares outstanding - diluted
  
NA
      
4,131,726
      
54,545,936
   [B]     58,677,662   
 
 
 
 
[A]
This pro forma adjustment reflects the amortization for the debt issuance costs of $252,000 as if the Convertible Notes were converted upon the Share Exchange Agreement occuring at the beginning of the period.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 [B]
This reflects the issuance of new common shares related to the Transaction as if they were outstanding for the entire year, as follows:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    36,000,000
  issued to bBooth, Inc. in a one to one exchange ratio in connection with the Share ExchangeAgreement
 
 
 
 
 
 
 
      5,066,286
  issued upon conversion of the Convertible Notes and related accrued interest, at a conversion rate of $0.35
 
 
 
 
 
 
 
      9,659,650
  represents shares issued in the Financing agreement, which is not to exceed $4,500,000, at a per share price of $0.50, plus Finders Shares
 
 
 
 
      3,820,000
  reflects the 2:1 stock split of GSD, net of the shares cancelled to ensure shares outstanding after the Transaction does not exceed 60,000,000
 
 
 
 
    54,545,936